10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                         to ____________

Commission File Number: 0-19065

SANDY SPRING BANCORP, INC.

(Exact name of registrant as specified in its charter)

Maryland	52-1532952
(State of incorporation)	(I.R.S. Employer Identification Number)

17801 Georgia Avenue, Olney, Maryland	20832
(Address of principal executive office)	(Zip Code)

301-774-6400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	SASR	The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company ☐ Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)

Yes ☐ No ☒

The number of outstanding shares of common stock as of August 3, 2022

Common stock, $1.00 par value – 44,644,269 shares

SANDY SPRING BANCORP, INC.

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Statements of Condition - Unaudited as of June 30, 2022 and December 31, 2021	3
Condensed Consolidated Statements of Income - Unaudited for the Three and Six Months Ended June 30, 2022 and 2021	4
Condensed Consolidated Statements of Comprehensive Income – Unaudited for the Three and Six Months Ended June 30, 2022 and 2021	5
Condensed Consolidated Statements of Changes in Stockholders’ Equity – Unaudited for the Three and Six Months Ended June 30, 2022 and 2021	6
Condensed Consolidated Statements of Cash Flows – Unaudited for the Six Months Ended June 30, 2022 and 2021	8
Notes to the Condensed Consolidated Financial Statements	9
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	39
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	70
Item 4. CONTROLS AND PROCEDURES	70
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS	71
Item 1A. RISK FACTORS	71
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	71
Item 3. DEFAULTS UPON SENIOR SECURITIES	71
Item 4. MINE SAFETY DISCLOSURES	71
Item 5. OTHER INFORMATION	71
Item 6. EXHIBITS	71
SIGNATURES	72

2

Part I

Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CONDITION – UNAUDITED

	June 30,		December 31,
(Dollars in thousands)	2022		2021
Assets:
Cash and due from banks	$	84,215	$	65,630
Federal funds sold	291		312
Interest-bearing deposits with banks	136,773		354,078
Cash and cash equivalents	221,279		420,020
Residential mortgage loans held for sale (at fair value)	23,610		39,409
Investments held-to-maturity, at cost (fair value of $250,915)	274,337		—
Investments available-for-sale (at fair value)	1,268,823		1,465,896
Other investments, at cost	52,264		41,166
Total loans	10,786,290		9,967,091
Less: allowance for credit losses	(113,670)		(109,145)
Net loans	10,672,620		9,857,946
Premises and equipment, net	63,243		59,685
Other real estate owned	739		1,034
Accrued interest receivable	33,459		34,349
Goodwill	363,436		370,223
Other intangible assets, net	22,694		25,920
Other assets	306,505		275,078
Total assets	$	13,303,009	$	12,590,726
Liabilities:
Noninterest-bearing deposits	$	4,129,440	$	3,779,630
Interest-bearing deposits	6,840,021		6,845,101
Total deposits	10,969,461		10,624,731
Securities sold under retail repurchase agreements and federal funds purchased	185,744		141,086
Advances from FHLB	175,000		—
Subordinated debt	369,906		172,712
Total borrowings	730,650		313,798
Accrued interest payable and other liabilities	125,729		132,518
Total liabilities	11,825,840		11,071,047
Stockholders' equity:
Common stock -- par value $1.00; shares authorized 100,000,000; shares issued and outstanding
44,629,697 and 45,118,930 at June 30, 2022 and December 31, 2021, respectively	44,630		45,119
Additional paid in capital	730,285		751,072
Retained earnings	799,707		732,027
Accumulated other comprehensive loss	(97,453)		(8,539)
Total stockholders' equity	1,477,169		1,519,679
Total liabilities and stockholders' equity	$	13,303,009	$	12,590,726

The accompanying notes are an integral part of these statements

3

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(Dollars in thousands, except per share data)	2022		2021		2022		2021
Interest income:
Interest and fees on loans	$	106,221	$	107,751	$	205,715	$	215,179
Interest on loans held for sale	145		549		343		1,086
Interest on deposits with banks	358		47		471		93
Interest and dividends on investment securities:
Taxable	4,630		4,373		8,737		8,272
Tax-advantaged	2,554		2,103		4,678		4,454
Interest on federal funds sold	1		—		1		—
Total interest income	113,909		114,823		219,945		229,084
Interest expense:
Interest on deposits	3,795		3,851		6,088		8,681
Interest on retail repurchase agreements and federal funds purchased	201		43		255		96
Interest on advances from FHLB	17		373		17		2,649
Interest on subordinated debt	3,946		2,510		6,184		5,012
Total interest expense	7,959		6,777		12,544		16,438
Net interest income	105,950		108,046		207,401		212,646
Provision/ (credit) for credit losses	3,046		(4,204)		4,681		(38,912)
Net interest income after provision/ (credit) for credit losses	102,904		112,250		202,720		251,558
Non-interest income:
Investment securities gains	38		71		46		129
Gain on disposal of assets	16,699		—		16,699		—
Service charges on deposit accounts	2,467		1,976		4,793		3,828
Mortgage banking activities	1,483		5,776		3,781		15,945
Wealth management income	9,098		9,121		18,435		17,851
Insurance agency commissions	812		1,247		2,927		3,400
Income from bank owned life insurance	703		705		1,498		1,385
Bank card fees	1,810		1,785		3,478		3,303
Other income	2,135		5,578		4,183		9,284
Total non-interest income	35,245		26,259		55,840		55,125
Non-interest expense:
Salaries and employee benefits	39,550		38,990		78,923		75,642
Occupancy expense of premises	4,734		5,497		9,768		10,984
Equipment expense	3,559		3,020		7,095		6,242
Marketing	1,280		1,052		2,473		2,264
Outside data services	2,564		2,260		4,983		4,543
FDIC insurance	1,078		1,450		2,062		2,942
Amortization of intangible assets	1,466		1,659		2,974		3,356
Merger, acquisition and disposal expense	1,067		—		1,067		45
Professional fees and services	2,372		3,165		4,389		4,896
Other expenses	7,321		5,882		13,404		20,234
Total non-interest expense	64,991		62,975		127,138		131,148
Income before income tax expense	73,158		75,534		131,422		175,535
Income tax expense	18,358		18,271		32,687		42,808
Net income	$	54,800	$	57,263	$	98,735	$	132,727
Per share information:
Basic net income per common share	$	1.21	$	1.20	$	2.18	$	2.79
Diluted net income per common share	$	1.21	$	1.19	$	2.17	$	2.77
Dividends declared per share	$	0.34	$	0.32	$	0.68	$	0.64

The accompanying notes are an integral part of these statements

4

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME – UNAUDITED

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2022		2021		2022		2021
Net income	$	54,800	$	57,263	$	98,735	$	132,727
Other comprehensive income/ (loss):
Investments available-for-sale:
Net change in unrealized gains/ (losses) on investments available-for-sale	(38,857)		9,889		(104,780)		(18,966)
Related income tax expense/ (benefit)	9,961		(2,519)		26,858		4,858
Net investment gains reclassified into earnings	(38)		(71)		(46)		(129)
Related income tax expense	10		18		12		33
Net effect on other comprehensive income/ (loss)	(28,924)		7,317		(77,956)		(14,204)
Investments held-to-maturity:
Net change in unrealized loss	802		—		(15,127)		—
Related income tax expense/ (benefit)	(205)		—		3,878		—
Net effect on other comprehensive income/ (loss)	597		—		(11,249)		—
Defined benefit pension plan:
Net change of unrealized loss	195		227		391		454
Related income tax benefit	(50)		(58)		(100)		(121)
Net effect on other comprehensive income/ (loss)	145		169		291		333
Total other comprehensive income/ (loss)	(28,182)		7,486		(88,914)		(13,871)
Comprehensive income	$	26,618	$	64,749	$	9,821	$	118,856

The accompanying notes are an integral part of these statements

5

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY – UNAUDITED

(Dollars in thousands, except per share data)	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income/ (Loss)		Total Stockholders' Equity
Balances at April 1, 2022	$	45,163	$	752,671	$	760,347	$	(69,271)	$	1,488,910
Net income	—		—		54,800		—		54,800
Other comprehensive loss, net of tax	—		—		—		(28,182)		(28,182)
Total other comprehensive income									26,618
Common stock dividends - $0.34 per share	—		—		(15,440)		—		(15,440)
Stock compensation expense	—		3,178		—		—		3,178
Common stock issued pursuant to:
Stock option plan - 1,464 shares	1		44		—		—		45
Employee stock purchase plan - 12,624 shares	12		482		—		—		494
Restricted stock vesting, net of tax withholding - 78,411 shares	79		(1,728)		—		—		(1,649)
Repurchase of common stock - 625,710 shares	(625)		(24,362)		—		—		(24,987)
Balances at June 30, 2022	$	44,630	$	730,285	$	799,707	$	(97,453)	$	1,477,169
Balances at April 1, 2021	$	47,187	$	849,606	$	617,553	$	(2,652)	$	1,511,694
Net income	—		—		57,263		—		57,263
Other comprehensive income, net of tax	—		—		—		7,486		7,486
Total other comprehensive income									64,749
Common stock dividends - $0.32 per share	—		—		(15,238)		—		(15,238)
Stock compensation expense	—		1,362		—		—		1,362
Common stock issued pursuant to:
Stock option plan - 38,158 shares	38		447		—		—		485
Employee stock purchase plan - 17,258 shares	18		543		—		—		561
Restricted stock vesting, net of tax withholding- 70,177 shares	70		(1,403)		—		—		(1,333)
Balances at June 30, 2021	$	47,313	$	850,555	$	659,578	$	4,834	$	1,562,280

The accompanying notes are an integral part of these statements

6

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY – UNAUDITED

(Dollars in thousands, except per share data)	Common Stock		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income/ (Loss)		Total Stockholders' Equity
Balances at January 1, 2022	$	45,119	$	751,072	$	732,027	$	(8,539)	$	1,519,679
Net income	—		—		98,735		—		98,735
Other comprehensive loss, net of tax	—		—		—		(88,914)		(88,914)
Total comprehensive income									9,821
Common stock dividends - $0.68 per share	—		—		(31,055)		—		(31,055)
Stock compensation expense	—		4,650		—		—		4,650
Common stock issued pursuant to:
Stock option plan - 10,361 shares	10		230		—		—		240
Employee stock purchase plan - 22,205 shares	22		908		—		—		930
Restricted stock vesting, net of tax withholding - 103,911 shares	104		(2,213)		—		—		(2,109)
Repurchase of common stock - 625,710 shares	(625)		(24,362)		—		—		(24,987)
Balances at June 30, 2022	$	44,630	$	730,285	$	799,707	$	(97,453)	$	1,477,169
Balances at January 1, 2021	$	47,057	$	846,922	$	557,271	$	18,705	$	1,469,955
Net income	—		—		132,727		—		132,727
Other comprehensive loss, net of tax	—		—		—		(13,871)		(13,871)
Total comprehensive income									118,856
Common stock dividends - $0.64 per share	—		—		(30,420)		—		(30,420)
Stock compensation expense	—		2,309		—		—		2,309
Common stock issued pursuant to:
Stock option plan - 140,523 shares	140		1,876		—		—		2,016
Employee stock purchase plan - 37,675 shares	38		1,064		—		—		1,102
Restricted stock vesting, net of tax withholding - 78,007 shares	78		(1,616)		—		—		(1,538)
Balances at June 30, 2021	$	47,313	$	850,555	$	659,578	$	4,834	$	1,562,280

The accompanying notes are an integral part of these statements

7

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED

	Six Months Ended June 30,
(Dollars in thousands)	2022		2021
Operating activities:
Net income	$	98,735	$	132,727
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,007		6,918
Provision/ (credit) for credit losses	4,681		(38,912)
Share based compensation expense	4,650		2,309
Gain on disposal of assets	(16,699)		—
Deferred income tax expense	972		10,879
Origination of loans held for sale	(200,986)		(940,041)
Proceeds from sales of loans held for sale	221,492		968,008
Gains on sales of loans held for sale	(4,707)		(20,755)
Losses on sale of other real estate owned	24		149
Investment securities gains	(46)		(129)
Tax benefit associated with share based compensation	(592)		1,009
Net decrease in accrued interest receivable	890		5,801
Net increase in other assets	(989)		(29,675)
Net decrease in accrued expenses and other liabilities	(9,425)		(23,663)
Other, net	(2,487)		910
Net cash provided by operating activities	101,520		75,535
Investing activities:
Sales/ (purchases) of other investments	(11,098)		24,663
Purchases of investments available-for-sale	(356,033)		(403,677)
Proceeds from sales of investment available-for-sale	1,261		100,822
Proceeds from maturities, calls and principal payments of investments available-for-sale	138,473		187,341
Proceeds from maturities, calls and principal payments of investments held-to-maturity	15,961		—
Net (increase)/ decrease in loans	(814,098)		324,726
Proceeds from the sales of other real estate owned	271		499
Proceeds from sale of business activity, net	23,936		—
Expenditures for premises and equipment	(7,612)		(2,088)
Net cash provided by/ (used in) investing activities	(1,008,939)		232,286
Financing activities:
Net increase in deposits	345,832		836,034
Net increase/ (decrease) in in retail repurchase agreements and federal funds purchased	44,658		(402,449)
Proceeds from FHLB advances	346,625		—
Repayment of FHLB advances	(171,625)		(379,075)
Proceeds from issuance of subordinated debt	200,000		—
Proceeds from issuance of common stock	1,339		3,118
Stock tendered for payment of withholding taxes	(2,278)		(1,538)
Repurchase of common stock	(24,987)		—
Cash dividends paid	(30,886)		(30,420)
Net cash provided by financing activities	708,678		25,670
Net increase/ (decrease) in cash and cash equivalents	(198,741)		333,491
Cash and cash equivalents at beginning of period	420,020		297,003
Cash and cash equivalents at end of period	$	221,279	$	630,494
Supplemental disclosures:
Interest payments	$	13,859	$	22,239
Income tax payments, net of refunds of $966 and $1,834 in 2022 and 2021, respectively	25,059		38,226

The accompanying notes are an integral part of these statements

8

SANDY SPRING BANCORP, INC. AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Sandy Spring Bancorp, Inc. ("Bancorp" or, together with its subsidiaries, the "Company"), a Maryland corporation, is the bank holding company for Sandy Spring Bank (the “Bank”). Independent and community-oriented, the Bank offers a broad range of commercial banking, retail banking, mortgage services and trust services throughout central Maryland, Northern Virginia, and the greater Washington, D.C. market. The Bank also offers a comprehensive menu of wealth management services through its subsidiaries, West Financial Services, Inc. (“West Financial”) and Rembert Pendleton Jackson (“RPJ”).

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”), prevailing practices within the financial services industry for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, the interim financial statements do not include all of the information and notes required for complete financial statements. The following summary of significant accounting policies of the Company is presented to assist the reader in understanding the financial and other data presented in this report. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for any future periods or for the year ending December 31, 2022. In the opinion of management, all adjustments necessary for a fair presentation of the results of the interim periods have been included. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2021 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 18, 2022. There have been no significant changes to any of the Company’s accounting policies as disclosed in the 2021 Annual Report on Form 10-K.

Principles of Consolidation

The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary, Sandy Spring Bank, and its subsidiaries, West Financial and RPJ and former results of Sandy Spring Insurance Corporation. Consolidation has resulted in the elimination of all intercompany accounts and transactions. See Note 17 for more information on the Company’s segments and consolidation.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, in addition to affecting the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for credit losses and the related allowance, potential impairment of goodwill or other intangible assets, valuation of investment securities and the determination of whether available-for-sale debt securities with fair values less than amortized costs are impaired and require an allowance for credit losses, valuation of other real estate owned, valuation of share based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, the calculation of current and deferred income taxes, and the actuarial projections related to pension expense and the related liability.

Cash Flows

For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold and interest-bearing deposits with banks (items with stated original maturity of three months or less).

Revenue from Contracts with Customers

The Company’s revenue includes net interest income on financial instruments and non-interest income. Specific categories of revenue are presented in the Condensed Consolidated Statements of Income. Most of the Company’s revenue is not within the scope of Accounting Standard Codification (“ASC”) 606 – Revenue from Contracts with Customers. For revenue within the scope of ASC 606, the Company provides services to customers and has related performance obligations. The revenue from such services is recognized upon satisfaction of all contractual performance obligations. The following discusses key revenue streams within the scope of this revenue recognition guidance.

9

Wealth Management Income

West Financial and RPJ provide comprehensive investment management and financial planning services. Wealth management income is comprised of income for providing trust, estate and investment management services. Trust services include acting as a trustee for corporate or personal trusts. Investment management services include investment management, record-keeping and reporting of security portfolios. Fees for these services are recognized based on a contractually-agreed fixed percentage applied to net assets under management at the end of each reporting period. The Company does not charge/recognize any performance-based fees.

Insurance Agency Commissions

Prior to the sale of its assets in June 2022, Sandy Spring Insurance Corporation performed the function of an insurance intermediary by introducing the policyholder and insurer and was compensated by a commission fee for placement of an insurance policy. Sandy Spring Insurance did not provide any captive management services or any claim handling services. Commission fees were set as a percentage of the premium for the insurance policy for which Sandy Spring Insurance was a producer. Sandy Spring Insurance recognized revenue when the insurance policy was contractually agreed to by the insurer and policyholder (at transaction date).

Service Charges on Deposit Accounts

Service charges on deposit accounts are earned on depository accounts for consumer and commercial account holders and include fees for account and overdraft services. Account services include fees for event-driven services and periodic account maintenance activities. An obligation for event-driven services is satisfied at the time of the event when service is delivered and revenue recognized as earned. Obligation for maintenance activities is satisfied over the course of each month and revenue is recognized at month end. The overdraft services obligation is satisfied at the time of the overdraft and revenue is recognized as earned.

Loan Financing Receivables

The Company’s financing receivables consist primarily of loans that are stated at their principal balance outstanding, net of any unearned income, acquisition fair value marks and deferred loan origination fees and costs. Interest income on loans is accrued at the contractual rate based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

Loans are considered past due or delinquent when the principal or interest due in accordance with the contractual terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Immaterial shortfalls in payment amounts do not necessarily result in a loan being considered delinquent or past due. If any payments are past due and subsequent payments are resumed without payment of the delinquent amount, the loan shall continue to be considered past due. Whenever any loan is reported delinquent on a principal or interest payment or portion thereof, the amount reported as delinquent is the outstanding principal balance of the loan.

Loans, except for consumer installment loans, are placed into non-accrual status when any portion of the loan principal or interest becomes 90 days past due. Management may determine that certain circumstances warrant earlier discontinuance of interest accruals on specific loans if an evaluation of other relevant factors (such as bankruptcy, interruption of cash flows, etc.) indicates collection of amounts contractually due is unlikely. These loans are considered, collectively, to be non-performing loans. Consumer installment loans that are not secured by real estate are not placed on non-accrual, but are charged down to their net realizable value when they are four months past due. Loans designated as non-accrual have all previously accrued but unpaid interest reversed. Interest income is not recognized on non-accrual loans. All payments received on non-accrual loans are applied using a cost-recovery method to reduce the outstanding principal balance until the loan returns to accrual status. Loans may be returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans considered to be TDRs are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured collateral-dependent loans are individually assessed for allowance for credit losses and may either be in accruing or non-accruing status. Non-accruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category if the borrower is no longer experiencing financial difficulty, a re-underwriting event took place, and the revised loan terms of the subsequent restructuring agreement are considered to be consistent with terms that can be obtained in the market for loans with comparable credit risk.

10

Allowance for Credit Losses

The allowance for credit losses (“allowance” or “ACL”) represents an amount which, in management's judgment, reflects the lifetime expected losses that may be sustained on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The allowance is measured and recorded upon the initial recognition of a financial asset. The allowance is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision or credit for credit losses, which is recorded as a current period expense.

Determination of the appropriateness of the allowance is inherently complex and requires the use of significant and highly subjective estimates. The reasonableness of the allowance is reviewed periodically by the Risk Committee of the Board of Directors and formally approved quarterly by that same committee of the Board.

The Company’s methodology for estimating the allowance includes: (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions throughout a reasonable and supportable period and the Company’s prepayment and curtailment rates; (2) collective qualitative factors that consider the expected impact of certain factors not fully captured in the collective quantified reserve, including concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, early delinquencies, and factors related to credit administration, including, among others, loan-to-value ratios, borrowers’ risk rating and credit score migrations; and (3) individual allowances on collateral-dependent loans where borrowers are experiencing financial difficulty or when the Company determines that the foreclosure is probable. The Company excludes accrued interest from the measurement of the allowance as the Company has a non-accrual policy to reverse any accrued, uncollected interest income as loans are moved to non-accrual status.

Loans are pooled into segments based on the similar risk characteristics of the underlying borrowers, in addition to consideration of collateral type, industry and business purpose of the loans. Portfolio segments used to estimate the allowance are the same as portfolio segments used for general credit risk management purposes. Refer to Note 5 for more details on the Company’s portfolio segments.

The Company applies two calculation methodologies to estimate the collective quantified component of the allowance: discounted cash flows method and weighted average remaining life method. Allowance estimates on commercial acquisition, development and construction (“AD&C”) and residential construction segments are based on the weighted average remaining life method. Allowance estimates on all other portfolio segments are based on the discounted cash flows method. Segments utilizing the discounted cash flows method are further sub-segmented into risk level pools, determined either by risk rating for commercial loans or Beacon Scores ranges for residential and consumer loans. To better manage risk and reasonably determine the sufficiency of reserves, this segregation allows the Company to monitor the allowance component applicable to higher risk loans separate from the remainder of the portfolio. Collective calculation methodologies utilize the Company’s historical default and loss experience adjusted for future economic forecasts. The reasonable and supportable forecast period represents a two-year economic outlook for the applicable economic variables. Following the end of the reasonable and supportable forecast period expected losses revert back to the historical mean over the next two years on a straight-line basis. Economic variables that have the most significant impact on the allowance include: unemployment rate, house price index and business bankruptcies. Contractual loan level cash flows within the discounted cash flows methodology are adjusted for the Company’s historical prepayment and curtailment rate experience.

The individual reserve assessment is applied to collateral dependent loans where borrowers are experiencing financial difficulty or when the Company determines that a foreclosure is probable. The determination of the fair value of the collateral depends on whether a repayment of the loan is expected to be from the sale or the operation of the collateral. When a repayment is expected from the operation of the collateral, the Company uses the present value of expected cash flows from the operation of the collateral as the fair value. When the repayment of the loan is expected from the sale of the collateral the fair value of the collateral is based on an observable market price or the collateral’s appraised value, less estimated costs to sell. Third party appraisals used in the individual reserve assessment are conducted at least annually with underlying assumptions that are reviewed by management. Third party appraisals may be obtained on a more frequent basis if deemed necessary. Internal evaluations of collateral value are conducted quarterly to ensure any further deterioration of the collateral value is recognized on a timely basis. During the individual reserve assessment, management also considers the potential future changes in the value of the collateral over the remainder of the loan’s remaining life. The Company may receive updated appraisals which contradict the preliminary determination of fair value used to establish an individual allowance on a loan. In these instances the individual allowance is adjusted to reflect the Company’s evaluation of the updated appraised fair value. In the event a loss was previously confirmed and the loan was charged down to the estimated fair value based on a previous appraisal, the balance of partially charged-off loans are not subsequently increased, but could be further decreased depending on the direction of the change in fair value. Payments on fully or partially charged-off loans are accounted for under the cost-recovery method. Under

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this method, all payments received are applied on a cash basis to reduce the entire outstanding principal balance, then to recognize a recovery of all previously charged-off amounts before any interest income may be recognized. Based on the individual reserve assessment, if the Company determines that the fair value of the collateral is less than the amortized cost basis of the loan, an individual allowance will be established measured as the difference between the fair value of the collateral (less costs to sell) and the amortized cost basis of the loan. Once a loss has been confirmed, the loan is charged-down to its estimated fair value.

Large groups of smaller non-accrual homogeneous loans are not individually evaluated for allowance and include residential permanent and construction mortgages and consumer installment loans. These portfolios are reserved for on a collective basis using historical loss rates of similar loans over the weighted average life of each pool.

The Company reviews its unfunded commitments to determine if they are unconditionally cancellable by the Company. If the unfunded commitment is determined to not be unconditionally cancellable by the Company, a reserve for unfunded commitments is established. The reserve for unfunded commitments considers both the likelihood that the funding will occur and an estimate of expected credit losses over the life of the commitment.

Management believes it uses relevant information available to make determinations about the allowance and that it has established the existing allowance in accordance with GAAP. However, the determination of the allowance requires significant judgment, and estimates of expected lifetime losses in the loan portfolio can vary significantly from the amounts actually observed. While management uses available information to recognize expected losses, future additions to the allowance may be necessary based on changes in the loans comprising the portfolio, changes in the current and forecasted economic conditions, changes to the interest rate environment which may directly impact prepayment and curtailment rate assumptions, and changes in the financial condition of borrowers.

Held-to-maturity debt securities

Debt securities that are purchased with the positive intent and ability to be held until their maturity are classified as held-to-maturity (“HTM”). HTM debt securities are recorded at cost adjusted for amortization of premiums and accretion of discounts. Transfers of debt securities from available-for-sale ("AFS") category to HTM category are made at fair value as of the transfer date. The unrealized gain or loss at the date of transfer continues to be reported in accumulated other comprehensive income and in the carrying amount of the HTM securities. Both amounts are amortized over the remaining life of the security as a yield adjustment in interest income and effectively offset each other.

Leases

The Company determines if an arrangement is a lease at inception. All of the Company’s leases are currently classified as operating leases and are included in other assets and other liabilities on the Company’s Condensed Consolidated Statements of Condition. Periodic operating lease costs are recorded in occupancy expenses of premises on the Company's Condensed Consolidated Statements of Income.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the expected future lease payments over the remaining lease term. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating ROU assets are adjusted for any lease payments made at or before the lease commencement date, initial direct costs, any lease incentives received and, for acquired leases, any favorable or unfavorable fair value adjustments. The present value of the lease liability may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options provided in the lease terms. Lease expense is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately.

Pending Accounting Pronouncements

In March 2020, the FASB released Accounting Standards Update (“ASU”) 2020-04 - Reference Rate Reform (Topic 848), which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of LIBOR likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022, and can be adopted at any time during this period. The Company has not yet fully adopted this standard. A cross-functional working group has been established to guide the Company’s transition from LIBOR to alternative reference rates. The Company has identified its products that are either directly or indirectly influenced by LIBOR and has implemented enhanced fallback language to

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facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The Company stopped originating any new loans referencing LIBOR during 2021. Currently, the Company does not expect that the adoption of this standard will have a material impact on its Consolidated Financial Statements.

In March 2022, the FASB issued ASU 2022-02, which eliminates the accounting guidance on troubled debt restructurings (“TDR”) and amends the guidance on “vintage disclosures” to require disclosure of current period gross charge-offs by year of origination. The ASU also adds enhanced disclosures for creditors with respect to loan refinancing and restructurings for borrowers experiencing financial difficulty. The objective of the disclosures is to provide information about the type and magnitude of modifications and the degree of their success in mitigating potential credit losses. For entities that have adopted the guidance in ASC 326, the amendments are effective for fiscal years beginning after December 15, 2022, and interim periods therein. Early adoption of the amendments is permitted for entities that have adopted ASC 326, including adoption in an interim period. An entity may elect to early adopt the amendments related to TDRs separately from the amendments related to vintage disclosures. The Company is in process of reviewing the enhanced modification disclosure requirements.

NOTE 2 – INVESTMENTS

Investments available-for-sale and held-to-maturity

During the first quarter ended March 31, 2022, the Company transferred certain debt securities from available-for-sale to held-to-maturity. The total amortized cost of debt securities transferred was $305.6 million with the associated fair value of $289.4 million and unrealized losses of $16.2 million at the date of transfer. All of these investments are either issued by a direct governmental entity or a government-sponsored entity and have no historical evidence supporting expected credit losses. Therefore, the Company has estimated these losses at zero and will monitor this assumption in the future for any economic or governmental policies that could affect this assumption.

The amortized cost and estimated fair values of investments available-for-sale and held-to-maturity at the dates indicated are presented in the following table:

	June 30, 2022								December 31, 2021
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
U.S. treasuries and government agencies	$	106,551	$	—	$	(5,141)	$	101,410	$	68,487	$	202	$	(150)	$	68,539
State and municipal	346,087		75		(46,940)		299,222		323,286		6,561		(3,445)		326,402
Mortgage-backed and asset-backed	921,465		229		(53,503)		868,191		1,074,577		8,203		(11,825)		1,070,955
Total available-for-sale debt securities	$	1,374,103	$	304	$	(105,584)	$	1,268,823	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896
Held-to-maturity debt securities:
Mortgage-backed and asset-backed	274,337		—		(23,422)		250,915		—		—		—		—
Total held-to-maturity debt securities	$	274,337	$	—	$	(23,422)	$	250,915	$	—	$	—	$	—	$	—
Total debt securities	$	1,648,440	$	304	$	(129,006)	$	1,519,738	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896

Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed available-for-sale debt securities at June 30, 2022 are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required at June 30, 2022. Unrealized losses on available-for-sale debt securities are expected to recover over time as these securities approach maturity. The Company does not intend to sell, nor is it more likely than not it will be required to sell, these securities and has sufficient liquidity to hold these securities for an adequate period of time, which may be maturity, to allow for any anticipated recovery in fair value.

The available-for-sale and held-to-maturity mortgage-backed securities portfolio at June 30, 2022 is composed entirely of either the most senior tranches of GNMA, FNMA or FHLMC collateralized mortgage obligations ($453.4 million), GNMA, FNMA or FHLMC mortgage-backed securities ($695.4 million) or SBA asset-backed securities ($47.0 million).

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Gross unrealized losses and fair value by length of time that the individual available-for-sale debt securities have been in an unrealized loss position at the dates indicated are presented in the following tables:

	June 30, 2022
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	11	$	101,410	$	5,141	$	—	$	—	$	101,410	$	5,141
State and municipal	141	242,938		35,197		33,236		11,743		276,174		46,940
Mortgage-backed and asset-backed	292	813,563		50,790		23,203		2,713		836,766		53,503
Total	444	$	1,157,911	$	91,128	$	56,439	$	14,456	$	1,214,350	$	105,584

	December 31, 2021
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	5	$	49,695	$	150	$	—	$	—	$	49,695	$	150
State and municipal	32	63,206		2,288		21,740		1,157		84,946		3,445
Mortgage-backed and asset-backed	104	665,813		10,145		37,857		1,680		703,670		11,825
Total	141	$	778,714	$	12,583	$	59,597	$	2,837	$	838,311	$	15,420

The Company has allocated mortgage-backed securities into the four maturity groupings reflected in the following tables using the expected average life of the individual securities based on statistics provided by independent third party industry sources. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties.

The estimated fair values and amortized costs of available-for-sale and held-to-maturity debt securities by contractual maturity are provided in the following tables.

	June 30, 2022				December 31, 2021
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
Available-for-sale debt securities
U.S. treasuries and government agencies:
One year or less	$	5,990	$	5,999	$	12,029	$	11,995
One to five years	95,420		100,552		56,510		56,492
Five to ten years	—		—		—		—
After ten years	—		—		—		—
State and municipal:
One year or less	7,109		7,102		12,821		12,709
One to five years	66,673		67,846		27,408		26,637
Five to ten years	33,927		37,297		42,960		42,661
After ten years	191,513		233,842		243,213		241,279
Mortgage-backed and asset-backed:
One year or less	7,940		7,990		9,272		9,239
One to five years	19,923		20,319		14,752		14,575
Five to ten years	336,022		354,871		388,918		390,569
After ten years	504,306		538,285		658,013		660,194
Total available-for-sale debt securities	$	1,268,823	$	1,374,103	$	1,465,896	$	1,466,350

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	June 30, 2022				December 31, 2021
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
Held-to-maturity debt securities
Mortgage-backed and asset-backed:
One year or less	$	—	$	—	$	—	$	—
One to five years	—		—		—		—
Five to ten years	39,805		41,750		—		—
After ten years	211,110		232,587		—		—
Total held-to-maturity debt securities	$	250,915	$	274,337	$	—	$	—

At June 30, 2022 and December 31, 2021, available-for-sale and held-to-maturity debt securities with a book value of $539.6 million and $531.6 million, respectively, were pledged as collateral for certain government deposits and for other purposes as required or permitted by law. The outstanding balance of no single issuer, except for U.S. Agencies securities, exceeded ten percent of stockholders' equity at June 30, 2022 and December 31, 2021.

Other investments

Other investments are presented in the following table:

(In thousands)	June 30, 2022		December 31, 2021
Federal Reserve Bank stock, at cost	$	38,731	$	34,097
Federal Home Loan Bank of Atlanta stock, at cost	12,856		6,392
Other	677		677
Other investments	$	52,264	$	41,166

NOTE 3 – LOANS

Outstanding loan balances at June 30, 2022 and December 31, 2021, are net of unearned income, including net deferred loan fees of $10.7 million and $14.3 million, respectively. Net deferred loan fees at June 30, 2022 and December 31, 2021, includes $0.6 million and $4.6 million, respectively, related to the loans originated under the Paycheck Protection Program (“PPP”).

The loan portfolio segment balances at the dates indicated are presented in the following table:

(In thousands)	June 30, 2022		December 31, 2021
Commercial real estate:
Commercial investor real estate	$	4,761,658	$	4,141,346
Commercial owner-occupied real estate	1,767,326		1,690,881
Commercial AD&C	1,094,528		1,088,094
Commercial business	1,353,380		1,481,834
Total commercial loans	8,976,892		8,402,155
Residential real estate:
Residential mortgage	1,147,577		937,570
Residential construction	235,486		197,652
Consumer	426,335		429,714
Total residential and consumer loans	1,809,398		1,564,936
Total loans	$	10,786,290	$	9,967,091

Portfolio Segments

The Company currently manages its credit products and the respective exposure to credit losses (credit risk) by the following specific portfolio segments (classes) which are levels at which the Company develops and documents its systematic methodology to determine the allowance for credit losses attributable to each respective portfolio segment. These segments are:

•Commercial investor real estate loans - Commercial investor real estate loans consist of loans secured by nonowner-occupied properties where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. This commercial investor real estate

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category contains mortgage loans to the developers and owners of commercial real estate where the borrower intends to operate or sell the property at a profit and use the income stream or proceeds from the sale(s) to repay the loan.

•Commercial owner-occupied real estate loans - Commercial owner-occupied real estate loans consist of commercial mortgage loans secured by owner occupied properties where an established banking relationship exists and involves a variety of property types to conduct the borrower’s operations. The decision to extend a loan is based upon the borrower’s financial health and the ability of the borrower and the business to repay. The primary source of repayment for this type of loan is the cash flow from the operations of the business.

•Commercial acquisition, development and construction loans - Commercial acquisition, development and construction loans are intended to finance the construction of commercial properties and include loans for the acquisition and development of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of additional factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve that allows the lender to periodically advance loan funds to pay interest charges on the outstanding balance of the loan.

•Commercial business loans - Commercial loans are made to provide funds for equipment and general corporate needs. Repayment of a loan primarily comes from the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. Loans issued under the PPP are also included in this category, a substantial portion of which are expected to be forgiven by the Small Business Administration pursuant to the CARES Act.

•Residential mortgage loans - The residential mortgage loans category contains permanent mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios, and collateral values. Loans may be either conforming or non-conforming.

•Residential construction loans - The Company makes residential construction loans generally to provide interim financing on residential property during the construction period. Borrowers are typically individuals who will ultimately occupy the single-family dwelling. Loan funds are disbursed periodically as pre-specified stages of completion are attained based upon site inspections.

•Consumer loans - This category of loans includes primarily home equity loans and lines, installment loans, personal lines of credit, and other loans. The home equity category consists mainly of revolving lines of credit to consumers which are secured by residential real estate. These loans are typically secured with second mortgages on the homes. Other consumer loans include installment loans used by customers to purchase automobiles, boats and recreational vehicles.

NOTE 4 – CREDIT QUALITY ASSESSMENT

Allowance for Credit Losses

Summary information on the allowance for credit loss activity for the period indicated is provided in the following table:

	Six Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	109,145	$	165,367
Provision/ (credit) for credit losses	4,681		(38,912)
Loan charge-offs	(762)		(3,485)
Loan recoveries	606		991
Net charge-offs	(156)		(2,494)
Balance at period end	$	113,670	$	123,961

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The following table provides summary information regarding collateral dependent loans individually evaluated for credit loss at the dates indicated:

(In thousands)	June 30, 2022		December 31, 2021
Collateral dependent loans individually evaluated for credit loss with an allowance	$	8,797	$	9,510
Collateral dependent loans individually evaluated for credit loss without an allowance	21,676		24,024
Total individually evaluated collateral dependent loans	$	30,473	$	33,534
Allowance for credit losses related to loans evaluated individually	$	6,170	$	6,593
Allowance for credit losses related to loans evaluated collectively	107,500		102,552
Total allowance for credit losses	$	113,670	$	109,145

The following tables provide information on the activity in the allowance for credit losses by the respective loan portfolio segment for the period indicated:

 

	For the Six Months Ended June 30, 2022
	Commercial Real Estate												Residential Real Estate
(Dollars in thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance at beginning of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Provision/ (credit) for credit losses	11,186			(915)			(6,939)			(490)			1,981			88			(230)			4,681
Charge-offs	—			—			—			(507)			(131)			—			(124)			(762)
Recoveries	319			12			—			65			20			5			185			606
Net recoveries (charge-offs)	319			12			—			(442)			(111)			5			61			(156)
Balance at end of period	$	56,794		$	10,784		$	13,383		$	22,238		$	7,254		$	1,141		$	2,076		$	113,670
Total loans	$	4,761,658		$	1,767,326		$	1,094,528		$	1,353,380		$	1,147,577		$	235,486		$	426,335		$	10,786,290
Allowance for credit losses to total loans ratio	1.19		%	0.61		%	1.22		%	1.64		%	0.63		%	0.48		%	0.49		%	1.05		%
Average loans	$	4,367,400		$	1,705,562		$	1,099,498		$	1,353,446		$	1,017,741		$	209,264		$	422,929		$	10,175,840
Annualized net charge-offs/ (recoveries) to average loans	(0.01)		%	—		%	—		%	0.07		%	0.02		%	—		%	(0.03)		%	—		%
Balance of loans individually evaluated for credit loss	$	11,245		$	7,869		$	1,353		$	8,141		$	1,520		$	—		$	345		$	30,473
Allowance related to loans evaluated individually	$	134		$	76		$	504		$	5,456		$	—		$	—		$	—		$	6,170
Individual allowance to loans evaluated individually ratio	1.19		%	0.97		%	37.25		%	67.02		%	—		%	—		%	—		%	20.25		%
Balance of loans collectively evaluated for credit loss	$	4,750,413		$	1,759,457		$	1,093,175		$	1,345,239		$	1,146,057		$	235,486		$	425,990		$	10,755,817
Allowance related to loans evaluated collectively	$	56,660		$	10,708		$	12,879		$	16,782		$	7,254		$	1,141		$	2,076		$	107,500
Collective allowance to loans evaluated collectively ratio	1.19		%	0.61		%	1.18		%	1.25		%	0.63		%	0.48		%	0.49		%	1.00		%

	For the Year Ended December 31, 2021
	Commercial Real Estate												Residential Real Estate
(Dollars in thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance at beginning of period	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Provision for credit losses	(6,598)			(8,238)			172			(20,132)			(6,321)			(459)			(3,980)			(45,556)
Charge-offs	(5,802)			(136)			(2,007)			(4,069)			—			—			(299)			(12,313)
Recoveries	285			—			—			565			410			5			382			1,647
Net recoveries (charge-offs)	(5,517)			(136)			(2,007)			(3,504)			410			5			83			(10,666)
Balance at end of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Total loans	$	4,141,346		$	1,690,881		$	1,088,094		$	1,481,834		$	937,570		$	197,652		$	429,714		$	9,967,091
Allowance for credit losses to total loans ratio	1.09		%	0.69		%	1.87		%	1.56		%	0.57		%	0.53		%	0.52		%	1.10		%
Average loans	$	3,689,769		$	1,661,015		$	1,110,420		$	1,952,537		$	979,754		$	178,171		$	463,200		$	10,034,866
Net charge-offs/ (recoveries) to average loans	0.15		%	0.01		%	0.18		%	0.18		%	(0.04)		%	—		%	(0.02)		%	0.11		%
Balance of loans individually evaluated for credit loss	$	12,489		$	9,306		$	650		$	9,033		$	1,704		$	—		$	352		$	33,534
Allowance related to loans evaluated individually	$	213		$	79		$	504		$	5,797		$	—		$	—		$	—		$	6,593
Individual allowance to loans evaluated individually ratio	1.71		%	0.85		%	77.54		%	64.18		%	—		%	—		%	—		%	19.66		%
Balance of loans collectively evaluated for credit loss	$	4,128,857		$	1,681,575		$	1,087,444		$	1,472,801		$	935,866		$	197,652		$	429,362		$	9,933,557
Allowance related to loans evaluated collectively	$	45,076		$	11,608		$	19,818		$	17,373		$	5,384		$	1,048		$	2,245		$	102,552
Collective allowance to loans evaluated collectively ratio	1.09		%	0.69		%	1.82		%	1.18		%	0.58		%	0.53		%	0.52		%	1.03		%

17

The following tables present collateral dependent loans individually evaluated for credit loss with the associated allowances for credit losses by the applicable portfolio segment and for the periods indicated:

	June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Loans individually evaluated for credit loss with an allowance:
Non-accruing	$	554	$	76	$	1,353	$	4,071	$	—	$	—	$	—	$	6,054
Restructured accruing	—		—		—		599		—		—		—		599
Restructured non-accruing	—		—		—		2,144		—		—		—		2,144
Balance	$	554	$	76	$	1,353	$	6,814	$	—	$	—	$	—	$	8,797
Allowance	$	134	$	76	$	504	$	5,456	$	—	$	—	$	—	$	6,170
Loans individually evaluated for credit loss without an allowance:
Non-accruing	$	3,156	$	3,680	$	—	$	392	$	—	$	—	$	—	$	7,228
Restructured accruing	—		—		—		—		1,520		—		—		1,520
Restructured non-accruing	7,535		4,113		—		935		—		—		345		12,928
Balance	$	10,691	$	7,793	$	—	$	1,327	$	1,520	$	—	$	345	$	21,676
Total individually evaluated loans:
Non-accruing	$	3,710	$	3,756	$	1,353	$	4,463	$	—	$	—	$	—	$	13,282
Restructured accruing	—		—		—		599		1,520		—		—		2,119
Restructured non-accruing	7,535		4,113		—		3,079		—		—		345		15,072
Balance	$	11,245	$	7,869	$	1,353	$	8,141	$	1,520	$	—	$	345	$	30,473
Total unpaid contractual principal balance	$	11,938	$	9,255	$	1,398	$	9,698	$	1,963	$	—	$	364	$	34,616

18

	December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Loans individually evaluated for credit loss with an allowance:
Non-accruing	$	808	$	79	$	650	$	4,849	$	—	$	—	$	—	$	6,386
Restructured accruing	—		—		—		613		—		—		—		613
Restructured non-accruing	336		—		—		2,175		—		—		—		2,511
Balance	$	1,144	$	79	$	650	$	7,637	$	—	$	—	$	—	$	9,510
Allowance	$	213	$	79	$	504	$	5,797	$	—	$	—	$	—	$	6,593
Loans individually evaluated for credit loss without an allowance:
Non-accruing	$	3,498	$	4,775	$	—	$	434	$	—	$	—	$	—	$	8,707
Restructured accruing	—		—		—		—		1,554		—		—		1,554
Restructured non-accruing	7,847		4,452		—		962		150		—		352		13,763
Balance	$	11,345	$	9,227	$	—	$	1,396	$	1,704	$	—	$	352	$	24,024
Total individually evaluated loans:
Non-accruing	$	4,306	$	4,854	$	650	$	5,283	$	—	$	—	$	—	$	15,093
Restructured accruing	—		—		—		613		1,554		—		—		2,167
Restructured non-accruing	8,183		4,452		—		3,137		150		—		352		16,274
Balance	$	12,489	$	9,306	$	650	$	9,033	$	1,704	$	—	$	352	$	33,534
Total unpaid contractual principal balance	$	12,857	$	11,132	$	695	$	10,573	$	2,778	$	—	$	364	$	38,399

The following tables present average principal balance of total non-accrual loans and contractual interest due on non-accrual loans for the periods indicated below:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Average non-accrual loans for the period	$	11,826	$	8,419	$	1,028	$	8,106	$	7,965	$	36	$	6,274	$	43,654
Contractual interest income due on non- accrual loans during the period	$	358	$	271	$	27	$	287	$	193	$	1	$	182	$	1,319

	For the Year Ended December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Average non-accrual loans for the period	$	31,590	$	9,444	$	9,236	$	12,678	$	9,439	$	36	$	7,369	$	79,792
Contractual interest income due on non- accrual loans during the period	$	2,169	$	555	$	597	$	1,096	$	271	$	2	$	402	$	5,092

There was no interest income recognized on non-accrual loans during the six months ended June 30, 2022. See Note 1 for additional information on the Company's policies for non-accrual loans. Loans designated as non-accrual have all previously accrued but unpaid interest reversed from interest income. During the six months ended June 30, 2022 new loans placed on non-accrual status totaled $2.5 million and the related amount of reversed uncollected accrued interest was insignificant.

19

Credit Quality

The following section provides information on the credit quality of the loan portfolio for the periods indicated below:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086
Loans placed on non-accrual	—		453		—		1,011		861		—		126		2,451
Non-accrual balances transferred to OREO	—		—		—		—		—		—		—		—
Non-accrual balances charged-off	—		—		—		(480)		(132)		—		(29)		(641)
Net payments or draws	(1,244)		(1,890)		703		(1,409)		(1,251)		(54)		(876)		(6,021)
Non-accrual loans brought current	—		—		—		—		(614)		—		(254)		(868)
Balance at end of period	$	11,245	$	7,869	$	1,353	$	7,542	$	7,305	$	1	$	5,692	$	41,007

	For the Year Ended December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361
Loans placed on non-accrual	699		3,676		49		1,339		695		62		1,626		8,146
Non-accrual balances transferred to OREO	—		(257)		—		—		—		—		—		(257)
Non-accrual balances charged-off	(5,803)		(136)		(2,007)		(3,547)		—		—		(100)		(11,593)
Net payments or draws	(26,813)		(5,538)		(12,436)		(12,305)		(2,406)		(7)		(1,725)		(61,230)
Non-accrual loans brought current	(821)		—		—		—		(60)		—		(460)		(1,341)
Balance at end of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086

	June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,738,506	$	1,758,618	$	1,092,808	$	1,342,025	$	1,121,614	$	233,535	$	418,675	$	10,705,781
30-59 days	10,385		—		367		1,650		14,340		1,950		1,697		30,389
60-89 days	1,522		839		—		1,564		2,445		—		271		6,641
Total performing loans	4,750,413		1,759,457		1,093,175		1,345,239		1,138,399		235,485		420,643		10,742,811
Non-performing loans:
Non-accrual loans	11,245		7,869		1,353		7,542		7,305		1		5,692		41,007
Loans greater than 90 days past due	—		—		—		—		353		—		—		353
Restructured loans	—		—		—		599		1,520		—		—		2,119
Total non-performing loans	11,245		7,869		1,353		8,141		9,178		1		5,692		43,479
Total loans	$	4,761,658	$	1,767,326	$	1,094,528	$	1,353,380	$	1,147,577	$	235,486	$	426,335	$	10,786,290

20

	December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,127,009	$	1,680,635	$	1,085,642	$	1,471,669	$	919,199	$	197,597	$	419,558	$	9,901,309
30-59 days	1,656		86		1,802		753		5,157		—		3,021		12,475
60-89 days	192		854		—		379		2,662		—		410		4,497
Total performing loans	4,128,857		1,681,575		1,087,444		1,472,801		927,018		197,597		422,989		9,918,281
Non-performing loans:
Non-accrual loans	12,489		9,306		650		8,420		8,441		55		6,725		46,086
Loans greater than 90 days past due	—		—		—		—		557		—		—		557
Restructured loans	—		—		—		613		1,554		—		—		2,167
Total non-performing loans	12,489		9,306		650		9,033		10,552		55		6,725		48,810
Total loans	$	4,141,346	$	1,690,881	$	1,088,094	$	1,481,834	$	937,570	$	197,652	$	429,714	$	9,967,091

The credit quality indicators for commercial loans are developed through review of individual borrowers on an ongoing basis. Each borrower is evaluated at least annually with more frequent evaluation of more severely criticized loans. The indicators represent the rating for loans as of the date presented is based on the most recent credit review performed. These credit quality indicators are defined as follows:

Pass - A pass rated credit is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention – A special mention credit has potential weaknesses that deserve management’s close attention. If uncorrected, such weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard – A substandard loan is inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful – A loan that is classified as doubtful has all the weaknesses inherent in a loan classified as substandard with added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.

Loss – Loans classified as a loss are considered uncollectible and of such little value that their continuing to be carried as a loan is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.

21

The following table provides information about credit quality indicators by the year of origination as of June 30, 2022:

	June 30, 2022
	Term Loans by Origination Year												Revolving
(In thousands)	2022		2021		2020		2019		2018		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	995,886	$	1,297,680	$	689,736	$	553,310	$	336,603	$	824,334	$	14,181	$	4,711,730
Special Mention	—		17,343		501		95		582		6,182		—		24,703
Substandard	10,097		692		—		2,256		8,248		3,932		—		25,225
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,005,983	$	1,315,715	$	690,237	$	555,661	$	345,433	$	834,448	$	14,181	$	4,761,658
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Owner-Occupied R/E:
Pass	$	246,043	$	342,740	$	241,314	$	298,137	$	151,076	$	455,558	$	904	$	1,735,772
Special Mention	5,013		—		924		460		2,115		5,007		—		13,519
Substandard	1,399		1,981		790		7,999		2,532		3,334		—		18,035
Doubtful	—		—		—		—		—		—		—		—
Total	$	252,455	$	344,721	$	243,028	$	306,596	$	155,723	$	463,899	$	904	$	1,767,326
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial AD&C:
Pass	$	158,080	$	450,044	$	172,240	$	86,968	$	57,897	$	—	$	165,884	$	1,091,113
Special Mention	—		1,073		—		—		—		—		989		2,062
Substandard	—		1,051		—		302		—		—		—		1,353
Doubtful	—		—		—		—		—		—		—		—
Total	$	158,080	$	452,168	$	172,240	$	87,270	$	57,897	$	—	$	166,873	$	1,094,528
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Business:
Pass	$	150,068	$	251,432	$	113,947	$	121,205	$	87,484	$	87,535	$	513,389	$	1,325,060
Special Mention	278		380		1,729		6,272		1,111		668		6,334		16,772
Substandard	600		3,190		1,480		2,273		73		2,060		1,872		11,548
Doubtful	—		—		—		—		—		—		—		—
Total	$	150,946	$	255,002	$	117,156	$	129,750	$	88,668	$	90,263	$	521,595	$	1,353,380
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	138	$	369	$	—	$	507
Residential Mortgage:
Beacon score:
660-850	$	243,623	$	264,572	$	164,442	$	45,352	$	57,946	$	287,215	$	—	$	1,063,150
600-659	3,254		4,263		3,538		3,501		6,329		25,672		—		46,557
540-599	241		1,858		1,111		1,585		2,965		7,587		—		15,347
less than 540	1,719		3,492		3,443		1,297		1,481		11,091		—		22,523
Total	$	248,837	$	274,185	$	172,534	$	51,735	$	68,721	$	331,565	$	—	$	1,147,577
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	131	$	—	$	131
Residential Construction:
Beacon score:
660-850	$	65,572	$	137,210	$	26,196	$	1,877	$	1,432	$	1,161	$	—	$	233,448
600-659	75		1,746		—		—		—		—		—		1,821
540-599	—		—		—		—		—		—		—		—
less than 540	217		—		—		—		—		—		—		217
Total	$	65,864	$	138,956	$	26,196	$	1,877	$	1,432	$	1,161	$	—	$	235,486
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	1,869	$	3,457	$	929	$	1,971	$	2,468	$	25,460	$	351,555	$	387,709
600-659	300		450		105		371		289		5,441		14,716		21,672
540-599	54		36		2		49		487		2,650		3,485		6,763
less than 540	278		77		42		482		291		3,409		5,612		10,191
Total	$	2,501	$	4,020	$	1,078	$	2,873	$	3,535	$	36,960	$	375,368	$	426,335
Current period gross charge-offs	$	—	$	5	$	5	$	—	$	10	$	14	$	90	$	124
Total loans	$	1,884,666	$	2,784,767	$	1,422,469	$	1,135,762	$	721,409	$	1,758,296	$	1,078,921	$	10,786,290

22

 The following table provides information about credit quality indicators by the year of origination as of December 31, 2021:

	December 31, 2021
	Term Loans by Origination Year												Revolving
(In thousands)	2021		2020		2019		2018		2017		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	1,391,969	$	748,236	$	616,761	$	357,640	$	328,327	$	633,913	$	19,239	$	4,096,085
Special Mention	2,210		510		4,646		596		2,204		10,438		—		20,604
Substandard	807		336		4,308		8,568		10,064		574		—		24,657
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,394,986	$	749,082	$	625,715	$	366,804	$	340,595	$	644,925	$	19,239	$	4,141,346
Current period gross charge-offs	$	—	$	—	$	—	$	903	$	3,975	$	924	$	—	$	5,802
Commercial Owner-Occupied R/E:
Pass	$	360,169	$	254,350	$	319,348	$	178,416	$	172,354	$	363,685	$	1,149	$	1,649,471
Special Mention	156		1,476		4,388		9,035		4,456		9,106		—		28,617
Substandard	1,968		1,800		4,028		2,265		354		2,378		—		12,793
Doubtful	—		—		—		—		—		—		—		—
Total	$	362,293	$	257,626	$	327,764	$	189,716	$	177,164	$	375,169	$	1,149	$	1,690,881
Current period gross charge-offs	$	—	$	—	$	—	$	136	$	—	$	—	$	—	$	136
Commercial AD&C:
Pass	$	454,207	$	226,332	$	148,260	$	87,934	$	13,938	$	—	$	152,896	$	1,083,567
Special Mention	2,888		—		—		—		—		—		989		3,877
Substandard	349		—		301		—		—		—		—		650
Doubtful	—		—		—		—		—		—		—		—
Total	$	457,444	$	226,332	$	148,561	$	87,934	$	13,938	$	—	$	153,885	$	1,088,094
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	2,007	$	—	$	—	$	2,007
Commercial Business:
Pass	$	403,871	$	165,194	$	137,069	$	96,800	$	55,100	$	53,764	$	533,893	$	1,445,691
Special Mention	220		1,998		7,030		1,701		548		577		9,212		21,286
Substandard	3,777		3,262		2,609		797		811		2,065		1,536		14,857
Doubtful	—		—		—		—		—		—		—		—
Total	$	407,868	$	170,454	$	146,708	$	99,298	$	56,459	$	56,406	$	544,641	$	1,481,834
Current period gross charge-offs	$	—	$	—	$	88	$	1,674	$	46	$	2,236	$	25	$	4,069
Residential Mortgage:
Beacon score:
660-850	$	246,612	$	165,623	$	46,925	$	65,865	$	102,628	$	223,420	$	—	$	851,073
600-659	11,102		3,285		3,583		4,255		4,645		20,052		—		46,922
540-599	1,472		1,864		2,162		4,522		1,599		8,201		—		19,820
less than 540	452		4,293		1,575		1,829		2,079		9,527		—		19,755
Total	$	259,638	$	175,065	$	54,245	$	76,471	$	110,951	$	261,200	$	—	$	937,570
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Construction:
Beacon score:
660-850	$	134,335	$	45,890	$	8,063	$	2,078	$	1,347	$	1,160	$	—	$	192,873
600-659	1,922		—		650		—		—		—		—		2,572
540-599	—		—		—		—		—		462		—		462
less than 540	1,745		—		—		—		—		—		—		1,745
Total	$	138,002	$	45,890	$	8,713	$	2,078	$	1,347	$	1,622	$	—	$	197,652
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	3,179	$	1,393	$	3,130	$	3,060	$	1,648	$	26,156	$	350,466	$	389,032
600-659	352		123		324		716		430		4,906		14,119		20,970
540-599	58		8		311		160		89		2,809		4,926		8,361
less than 540	88		58		536		544		98		3,101		6,926		11,351
Total	$	3,677	$	1,582	$	4,301	$	4,480	$	2,265	$	36,972	$	376,437	$	429,714
Current period gross charge-offs	$	—	$	—	$	7	$	2	$	—	$	106	$	184	$	299
Total loans	$	3,023,908	$	1,626,031	$	1,316,007	$	826,781	$	702,719	$	1,376,294	$	1,095,351	$	9,967,091

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The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	32	$	—	$	32
Restructured non-accruing	—		—		—		173		—		173
Balance	$	—	$	—	$	—	$	205	$	—	$	205
Individual allowance	$	—	$	—	$	—	$	73	$	—	$	73
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

	For the Year Ended December 31, 2021
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	—	$	—	$	—
Restructured non-accruing	9,594		3,157		—		1,824		—		14,575
Balance	$	9,594	$	3,157	$	—	$	1,824	$	—	$	14,575
Individual allowance	$	—	$	—	$	—	$	461	$	—	$	461
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

During the six months ended June 30, 2022, the Company restructured $205 thousand in loans that were designated as TDRs. TDR loans are subject to periodic credit reviews to determine the necessity and appropriateness of an individual credit loss allowance based on the collectability of the recorded investment in the TDR loan. Loans restructured as TDRs during the six months ended June 30, 2022 had individual reserves of $73 thousand at June 30, 2022. For the year ended December 31, 2021, the Company restructured $14.6 million in loans. Loans restructured as TDRs during 2021 had individual reserves of $0.5 million at December 31, 2021. During both the six months ended June 30, 2022 and the year ended December 31, 2021 TDR modifications consisted principally of interest rate concessions, term extensions and did not result in the reduction of the recorded investment in the associated loan balances. The commitments to lend additional funds on loans that have been restructured at June 30, 2022 and December 31, 2021 were not significant.

Other Real Estate Owned

Other real estate owned ("OREO") totaled $0.7 million and $1.0 million at June 30, 2022 and December 31, 2021, respectively. There was one consumer mortgage loan secured by residential real estate property for which formal foreclosure proceedings were in process as of June 30, 2022 with the total amount of $0.6 million.

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NOTE 5 – GOODWILL AND OTHER INTANGIBLE ASSETS

The amount of goodwill by reportable segment is presented in the following table:

(In thousands)	Community Banking		Insurance		Investment Management		Total
Balances at December 31, 2021	$	331,689	$	6,788	$	31,747	$	370,223
Disposal of subsidiary's assets	—		(6,788)		—		(6,788)
Balances at June 30, 2022	$	331,689	$	—	$	31,747	$	363,436

The gross carrying amounts and accumulated amortization of intangible assets and goodwill are presented at the dates indicated in the following table:

	June 30, 2022						Weighted Average Remaining Life	December 31, 2021						Weighted Average Remaining Life
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount			Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Core deposit intangibles	$	29,038	$	(14,708)	$	14,330	6.9 years	$	29,038	$	(12,624)	$	16,414	7.4 years
Other identifiable intangibles	13,906		(5,542)		8,364		9.2 years	13,906		(4,400)		9,506		9.7 years
Total amortizing intangible assets	$	42,944	$	(20,250)	$	22,694		$	42,944	$	(17,024)	$	25,920
Goodwill	$	363,436			$	363,436		$	370,223			$	370,223

The following table presents the estimated future amortization expense for amortizing intangible assets within the years ending December 31:

(In thousands)	Amount
Remaining 2022	$	2,840
2023	5,040
2024	4,290
2025	3,530
2026	2,702
Thereafter	4,292
Total amortizing intangible assets	$	22,694

NOTE 6 – DEPOSITS

The following table presents the composition of deposits at the dates indicated:

(In thousands)	June 30, 2022		December 31, 2021
Noninterest-bearing deposits	$	4,129,440	$	3,779,630
Interest-bearing deposits:
Demand	1,590,484		1,604,714
Money market savings	3,185,150		3,415,663
Regular savings	560,324		533,862
Time deposits of less than $250,000	1,168,317		910,464
Time deposits of $250,000 or more	335,746		380,398
Total interest-bearing deposits	6,840,021		6,845,101
Total deposits	$	10,969,461	$	10,624,731

NOTE 7 – BORROWINGS

Subordinated Debt

On March 15, 2022, the Company completed an offering of $200.0 million aggregate principal amount Fixed to Floating Rate Subordinated Notes due in 2032. The notes bear a fixed interest rate of 3.875% per year through March 29, 2027. Commencing on March 30, 2027, the notes will bear interest at a floating rate per annum equal to the benchmark rate (which is expected to be the three-month SOFR rate) plus a spread of 196.5 basis points, payable quarterly in arrears. The total amount of debt issuance

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costs incurred was $3.1 million, which are being amortized through the contractual life of the debt. The entire amount of the subordinated debt is considered Tier 2 capital under current regulatory guidelines.

On November 5, 2019, the Company completed an offering of $175.0 million aggregate principal amount Fixed to Floating Rate Subordinated Notes due in 2029. The notes bear a fixed interest rate of 4.25% per year through November 14, 2024. Beginning November 15, 2024, the interest rate will become a floating rate equal to three month LIBOR, or an alternative benchmark rate as determined pursuant to the terms of the indenture for the notes in the event LIBOR has been discontinued by November 15, 2024, plus 262 basis points through the remaining maturity or early redemption date of the notes. The interest will be paid in arrears semi-annually during the fixed rate period and quarterly during the floating rate period. The Company incurred $2.9 million of debt issuance costs which are being amortized through the contractual life of the debt. The entire amount of the subordinated debt is considered Tier 2 capital under current regulatory guidelines.

In conjunction with the acquisition of WashingtonFirst Bankshares, Inc. ("WashingtonFirst") in 2018, the Company assumed $25.0 million in subordinated debt with an associated purchase premium at acquisition of $2.2 million. The premium was amortized over the contractual life of the obligation. The subordinated debt had a maturity of 10 years, maturing on October 15, 2025, and was non-callable through October 15, 2020. The subordinated debt held a fixed interest rate of 6.00% per annum through October 5, 2020 at which point the rate became variable at the three-month LIBOR plus 457 basis points payable quarterly. On July 15, 2021, the Company redeemed the entire outstanding principal balance of the WashingtonFirst subordinated debt.

In conjunction with the acquisition of Revere Bank ("Revere") in 2020, the Company assumed $31.0 million in subordinated debt with an associated purchase premium at acquisition of $0.2 million, which was amortized through the call date. The subordinated debt had a 10-year term, maturing on September 30, 2026, and was non-callable until September 30, 2021. The subordinated debt had a fixed interest rate of 5.625% per annum, payable semi-annually, through December 31, 2021 at which point the interest rate reset quarterly to an amount equal to three month LIBOR plus 441 basis points. On September 30, 2021, the Company redeemed the entire outstanding principal balance of the Revere subordinated debt.

The following table provides information on subordinated debt as of the date indicated:

(In thousands)	June 30, 2022		December 31, 2021
Fixed to floating rate subordinated debt, 3.875%	$	200,000	$	—
Fixed to floating rate subordinated debt, 4.25%	175,000		175,000
Total subordinated debt	375,000		175,000
Less: Debt issuance costs	(5,094)		(2,288)
Long-term borrowings	$	369,906	$	172,712

Other Borrowings

At June 30, 2022 and December 31, 2021, the Company had $110.7 million and $141.1 million, respectively, of outstanding retail repurchase agreements. The Company had $75.0 million of outstanding federal funds purchased at June 30, 2022 and did not have any at outstanding at December 31, 2021.

At June 30, 2022, the Company had the ability to pledge collateral at prevailing market rates under a line of credit with the FHLB of $3.9 billion. FHLB availability based on pledged collateral at June 30, 2022, amounted to $3.1 billion, with $175.0 million outstanding against it. At December 31, 2021, the Company possessed the ability to extend its lines of credit with the FHLB totaling $3.9 billion based on collateral that was available to be pledged. The availability of FHLB borrowings based on the collateral pledged at December 31, 2021 was $2.7 billion with no outstanding borrowings.

Under a blanket lien, the Company has pledged qualifying residential mortgage loans amounting to $1.0 billion, commercial real estate loans amounting to $3.5 billion, home equity lines of credit (“HELOC”) amounting to $218.5 million, and multifamily loans amounting to $458.6 million at June 30, 2022, as collateral under the borrowing agreement with the FHLB. At December 31, 2021, the Company had pledged collateral of qualifying mortgage loans of $829.1 million, commercial real estate loans of $3.1 billion, HELOC loans of $224.4 million, and multifamily loans of $333.4 million under the FHLB borrowing agreement.

The Company also had secured lines of credit available from the Federal Reserve Bank and correspondent banks of $684.9 million and $509.4 million at June 30, 2022 and December 31, 2021, respectively, collateralized by loans, with no borrowings outstanding at the end of either period. In addition, the Company had unsecured lines of credit available with

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correspondent banks of $1.3 billion at both June 30, 2022 and December 31, 2021, with $75.0 million outstanding at June 30, 2022 and no borrowings outstanding at December 31, 2021.

NOTE 8 – STOCKHOLDERS' EQUITY

On March 30, 2022, the Company's board of directors authorized a stock repurchase plan that permits the repurchase of up to $50.0 million of the Company's common stock. During the six months ended June 30, 2022, the Company repurchased and retired 625,710 common shares at an average price of $39.93 per share for the total cost of $25.0 million.

During 2021, the Company completed its previously authorized stock repurchase plan with the repurchase of all 2,350,000 shares of common stock at an average price of $45.65 per share for a total cost of $107.3 million.

NOTE 9 – SHARE BASED COMPENSATION

At June 30, 2022, the Company had two share based compensation plans in existence, the 2005 Omnibus Stock Plan (“Omnibus Stock Plan”) and the 2015 Omnibus Incentive Plan (“Omnibus Incentive Plan”). The Omnibus Stock Plan expired during the second quarter of 2015 but has outstanding options that may still be exercised. The Omnibus Incentive Plan is described in the following paragraph.

The Company’s Omnibus Incentive Plan was approved on May 6, 2015 and provides for the granting of incentive stock options, non-qualifying stock options, stock appreciation rights, restricted stock grants, restricted stock units and performance share units to selected directors and employees on a periodic basis at the discretion of the Company’s Board of Directors. The Omnibus Incentive Plan authorizes the issuance of up to 1,500,000 shares of common stock, of which 632,533 are available for issuance at June 30, 2022, has a term of 10 years, and is administered by a committee of at least three directors appointed by the Board of Directors. Grants of restricted stock units made in 2022 allow continued vesting upon retirement. Options granted under the plan have an exercise price which may not be less than 100% of the fair market value of the common stock on the date of the grant and must be exercised within seven or 10 years from the date of grant depending on the terms of the grant agreement. The exercise price of stock options must be paid for in full in cash or shares of common stock, or a combination of both. The board committee has the discretion when making a grant of stock options to impose restrictions on the shares to be purchased upon the exercise of such options. The Company generally issues authorized but previously unissued shares to satisfy option exercises.

The dividend yield is based on estimated future dividend yields. The risk-free rate for periods within the contractual term of the share option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatilities are generally based on historical volatilities. The expected term of share options granted is generally derived from historical experience.

Compensation expense is recognized on a straight-line basis over the vesting period of the respective stock option, restricted stock, restricted stock unit grant or performance share units. The Company recognized compensation expense of $3.2 million and $1.4 million for the three months ended June 30, 2022 and 2021, respectively, and of $4.7 million and $2.3 million, for the six months ended June 30, 2022 and 2021, respectively, related to the awards of restricted stock award grants, restricted stock unit grants and performance share unit grants. There was no unrecognized compensation cost related to stock options as of June 30, 2022. The total of unrecognized compensation cost related to restricted stock awards, restricted stock unit grants, and performance share unit grants was approximately $10.4 million as of June 30, 2022. That cost is expected to be recognized over a weighted average period of approximately 2.11 years.

During the six months ended June 30, 2022, the Company granted 167,411 restricted stock units and performance share units, of which 45,567 units are subject to achievement of certain performance conditions measured over a three-year performance period and 121,844 restricted stock units are subject to a three year vesting schedule. The Company did not grant any stock options under the Omnibus Incentive Plan during the six months ended June 30, 2022.

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A summary of the activity for the Company’s restricted stock, restricted stock units and performance share units for the period indicated is presented in the following table:

	Number of Common Shares/Units	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2022	390,520	$	32.67
Granted	167,411	$	45.02
Vested	(151,691)	$	32.64
Forfeited/ cancelled	(9,688)	$	36.86
Non-vested at June 30, 2022	396,552	$	37.38

A summary of share option activity for the period indicated is reflected in the following table:

	Number of Common Shares	Weighted Average Exercise Share Price		Weighted Average Contractual Remaining Life (Years)	Aggregate Intrinsic Value (in thousands)
Balance at January 1, 2022	159,741	$	17.18	2.4 years	$	5,264
Granted	—	$	—
Exercised	(10,361)	$	23.18		$	238
Forfeited	—	$	—
Expired	—	$	—
Balance at June 30, 2022	149,380	$	16.76	2.0 years	$	3,256
Exercisable at June 30, 2022	149,380	$	16.76	2.0 years	$	3,256

NOTE 10 – PENSION PLAN

Defined Benefit Pension Plan

The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”). Benefits after January 1, 2005, are based on the benefit earned as of December 31, 2004, plus benefits earned in future years of service based on the employee’s compensation during each such year. All benefit accruals for employees were frozen as of December 31, 2007 based on past service and thus salary increases and additional years of service after such date no longer affect the defined benefit provided by the Plan, although additional vesting may continue to occur.

The Company's funding policy is to contribute amounts to the Plan sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended. In addition, the Company contributes additional amounts as it deems appropriate based on benefits attributed to service prior to the date of the Plan freeze. The Plan invests primarily in a diversified portfolio of managed fixed income and equity funds.

On March 30, 2022, the Board of Directors approved the termination of the Plan to be effective as of June 30, 2022. The Company has executed plan amendments regarding the Plan termination and filed an Application for Determination for Terminating Plan with the Internal Revenue Service (“IRS”) for a determination as to the tax-qualified status of the Plan at the time of termination. Over the next several months, the Company intends to prepare and file appropriate notices and documents related to the Plan’s termination and wind-down with the Pension Benefit Guaranty Corporation (“PBGC”).

After receiving approval from the IRS and the PBGC, which is expected to be in 2023, the Company will make an additional cash contribution, if necessary, in order to fully fund the Plan on a plan termination basis, followed by the purchase of annuity contracts to transfer its remaining liabilities under the Plan. The actual amount of this cash contribution, if any, will depend upon the nature and timing of participant settlements, as well as prevailing market conditions. In addition, the Company expects to recognize a non-cash pension settlement charge upon settlement of the obligations of the Plan.

All participants who are not already receiving annuities will be given the opportunity to elect a lump sum payout. Benefit obligations of participants who do not elect a lump sum or who are being paid in an annuity form will be transferred under an annuity contract from a highly-rated insurance company that will pay and administer future benefit payments. There will be no

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change in the benefit earned by Plan participants as a result of these actions. The Plan termination is subject to regulatory approvals and the Company has the right to change the effective date of the Plan termination or to revoke its decision to terminate the Plan, but it has no intent to do so.

The components of net periodic benefit cost for the periods indicated are presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Interest cost on projected benefit obligation	$	326	$	318	$	651	$	636
Expected return on plan assets	(352)		(312)		(705)		(624)
Recognized net actuarial loss	195		227		391		454
Net periodic benefit cost	$	169	$	233	$	337	$	466

The decision as to whether or not to make a plan contribution and the amount of any such contribution is dependent on a number of factors. Such factors include the investment performance of Plan assets in the current economy and, since the Plan is currently frozen, the remaining investment horizon of the Plan. The Company did not make any contribution to the Plan during the six months ended June 30, 2022. Management continues to monitor the funding level of the Plan and may make additional contributions as necessary during 2022.

NOTE 11 – NET INCOME PER COMMON SHARE

The calculation of net income per common share for the periods indicated is presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars and amounts in thousands, except per share data)	2022		2021		2022		2021
Net income	$	54,800	$	57,263	$	98,735	$	132,727
Distributed and undistributed earnings allocated to         participating securities	(194)		(481)		(476)		(1,121)
Net income attributable to common shareholders	$	54,606	$	56,782	$	98,259	$	131,606
Total weighted average outstanding shares	45,184		47,689		45,303		47,610
Less: Weighted average participating securities	(160)		(401)		(221)		(406)
Basic weighted average common shares	45,024		47,288		45,082		47,204
Dilutive weighted average common stock equivalents	87		235		140		266
Diluted weighted average common shares	45,111		47,523		45,222		47,470
Basic net income per common share	$	1.21	$	1.20	$	2.18	$	2.79
Diluted net income per common share	$	1.21	$	1.19	$	2.17	$	2.77
Anti-dilutive shares	—		—		—		—

NOTE 12 – ACCUMULATED OTHER COMPREHENSIVE LOSS

Comprehensive income/ (loss) is defined as net income/ (loss) plus transactions and other occurrences that are the result of non-owner changes in equity. For Condensed Consolidated Financial Statements presented for the Company, non-owner changes in equity are comprised of unrealized gains or losses on investments available-for-sale and held-to-maturity, and any minimum pension liability adjustments.

During the quarter ended March 31, 2022, the Company transferred certain debt securities from available-for-sale to held-to-maturity. The total amortized cost of debt securities transferred was $305.6 million with the associated after tax unrealized loss $12.1 million at the date of transfer. This after tax unrealized loss continues to be reported in accumulated other comprehensive income and is amortized over the remaining lives of debt securities as a yield adjustment.

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The following table presents the activity in net accumulated other comprehensive income/ (loss) and the components of the activity for the periods indicated:

(In thousands)	Unrealized Gains/(Losses) on Debt Securities Available-for-Sale		Defined Benefit Pension Plan		Unrealized Losses on Debt Securities Transferred from Available-for-Sale to Held-to-Maturity		Total
Balance at January 1, 2022	$	(336)	$	(8,203)	$	—	$	(8,539)
Other comprehensive loss before reclassification from accumulated other comprehensive loss, net of tax	(77,922)		—		(12,083)		(90,005)
Reclassifications from accumulated other comprehensive loss to earnings, net of tax	(34)		291		834		1,091
Current period change in other comprehensive loss, net of tax	(77,956)		291		(11,249)		(88,914)
Balance at June 30, 2022	$	(78,292)	$	(7,912)	$	(11,249)	$	(97,453)

(In thousands)	Unrealized Gains/ (Losses) on Debt Securities Available-for-Sale		Defined Benefit Pension Plan		Total
Balance at January 1, 2021	$	28,175	$	(9,470)	$	18,705
Other comprehensive income before reclassification, net of tax	(14,108)		—		(14,108)
Reclassifications from accumulated other comprehensive income, net of tax	(96)		333		237
Current period change in other comprehensive income, net of tax	(14,204)		333		(13,871)
Balance at June 30, 2021	$	13,971	$	(9,137)	$	4,834

The following table provides the information on the reclassification adjustments out of accumulated other comprehensive income/ (loss) for the periods indicated:

	Six Months Ended June 30,
(In thousands)	2022		2021
Unrealized gains on available-for-sale debt securities:
Affected line item in the Statements of Income:
Investment securities gains	$	46	$	129
Income before taxes	46		129
Tax expense	(12)		(33)
Net income	$	34	$	96
Amortization of unrealized losses on debt securities transferred from available-for-sale to held-to-maturity:
Affected line item in the Statements of Income:
Interest and dividends on investment securities (1)	$	(1,122)	$	—
Income before taxes	(1,122)		—
Tax benefit	288		—
Net loss	$	(834)	$	—
Amortization of defined benefit pension plan items:
Affected line item in the Statements of Income:
Recognized actuarial loss (2)	$	(391)	$	(454)
Loss before taxes	(391)		(454)
Tax benefit	100		121
Net loss	$	(291)	$	(333)

(1)Amortization of unrealized losses on held-to-maturity debt securities is fully offset by accretion of a discount on held-to-maturity debt securities with no overall impact on net income and yield.

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(2)This amount is included in the computation of net periodic benefit cost. See Note 10 for additional information on the pension plan.

NOTE 13 – LEASES

The Company leases real estate properties for its network of bank branches, financial centers and corporate offices. All of the Company’s leases are currently classified as operating. Most lease agreements include one or more options to renew, with renewal terms that can extend the original lease term from one to twenty years or more. The Company does not sublease any of its leased real estate properties.

The following table provides information regarding the Company's leases as of the dates indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Components of lease expense:
Operating lease cost (resulting from lease payments)	$	2,738	$	3,134	$	5,504	$	6,286
Supplemental cash flow information related to leases:
Operating cash flows from operating leases	$	2,893	$	3,274	$	5,832	$	6,554
ROU assets obtained in the exchange for lease liabilities due to:
New leases	$	—	$	—	$	—	$	803
Acquisitions	$	—	$	—	$	—	$	—
					June 30, 2022		December 31, 2021
Supplemental balance sheet information related to leases:
Operating lease ROU assets					$	53,796	$	57,872
Operating lease liabilities					$	62,615	$	67,138
Other information related to leases:
Weighted average remaining lease term of operating leases					8.7 years		9.0 years
Weighted average discount rate of operating leases					2.95%		2.92%

 

At June 30, 2022, the maturities of the Company’s operating lease liabilities were as follows:

 

(In thousands)	Amount
Maturity:
Remaining 2022	$	5,734
2023	11,535
2024	9,643
2025	7,818
2026	7,048
Thereafter	30,615
Total undiscounted lease payments	72,393
Less: Present value discount	(9,778)
Lease liability	$	62,615

At June 30, 2022, the Company had no operating leases that have not yet commenced operations. The Company does not have any lease arrangements with any of its related parties as of June 30, 2022.

NOTE 14 – DERIVATIVES

The Company has entered into interest rate swaps (“swaps”) to facilitate customer transactions and meet their financing needs. These swaps qualify as derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or customer owes the Company and results in credit risk to the

31

Company. When the fair value of a derivative instrument contract is negative, the Company owes the customer or counterparty and, therefore, has no credit risk. The notional value of the swaps outstanding was $336.7 million as of June 30, 2022 compared to $396.3 million as of December 31, 2021. The fair values of swap positions net to zero to minimize the potential impact on the Company’s Condensed Consolidated Financial Statements. Fair values of the swaps are carried as both gross assets and gross liabilities in other assets and other liabilities, respectively, in the Condensed Consolidated Statements of Condition. The associated net gains and losses on the swaps are recorded in Other income in the Condensed Consolidated Statements of Income.

NOTE 15 – LITIGATION

In the ordinary course of business, the Company and its subsidiaries are subject to various pending or threatened legal proceedings in which claims for monetary damages are asserted. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of these legal matters will have a material adverse effect on the Company's financial condition, operating results or liquidity.

NOTE 16 – FAIR VALUE

GAAP provides entities the option to measure eligible financial assets, financial liabilities and commitments at fair value (i.e. the fair value option), on an instrument-by-instrument basis, that are otherwise not permitted to be accounted for at fair value under other accounting standards. The election to use the fair value option is available when an entity first recognizes a financial asset or financial liability or upon entering into a commitment. Subsequent changes in fair value must be recorded in earnings. The Company applies the fair value option on residential mortgage loans held for sale. The fair value option on residential mortgage loans held for sale allows the recognition of gains on the sale of mortgage loans to more accurately reflect the timing and economics of the transaction.

The standard for fair value measurement establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below.

Basis of Fair Value Measurement:

Level 1- Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2- Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3- Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Changes to interest rates may result in changes in the cash flows due to prepayments or extinguishments. Accordingly, changes to interest rates could result in higher or lower measurements of the fair values.

Assets and Liabilities

Residential mortgage loans held for sale

Residential mortgage loans held for sale are valued based on quotations from the secondary market for similar instruments and are classified as Level 2 in the fair value hierarchy.

Investment securities available-for-sale

U.S. treasuries and government agencies securities and mortgage-backed and asset-backed securities

Valuations are based on active market data and use of evaluated broker pricing models that vary based by asset class and includes available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, descriptive terms, and databases coupled with extensive quality control programs. Quality control evaluation processes use available market, credit and deal level information to support the evaluation of the security. Additionally, proprietary models and pricing systems, mathematical tools, actual transacted prices, integration of market developments and experienced evaluators are used to determine the value of a security based on a hierarchy of market information regarding a security or securities with similar characteristics. The Company does not adjust the quoted price for such securities. Such instruments are classified within Level 2 in the fair value hierarchy.

State and municipal securities

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The Company primarily uses prices obtained from third-party pricing services to determine the fair value of securities. The Company independently evaluates and corroborates the fair value received from pricing services through various methods and techniques, including references to dealer or other market quotes, by reviewing valuations of comparable instruments, and by comparing the prices realized on the sale of similar securities. Such securities are classified within Level 2 in the fair value hierarchy.

Interest rate swap agreements

Interest rate swap agreements are measured by alternative pricing sources using a discounted cash flow method that incorporates current market interest rates. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These characteristics classify interest rate swap agreements as Level 2 in the fair value hierarchy.

Assets Measured at Fair Value on a Recurring Basis

The following tables set forth the Company’s financial assets and liabilities at the dates indicated that were accounted for or disclosed at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	June 30, 2022
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Residential mortgage loans held for sale (1)	$	—	$	23,610	$	—	$	23,610
Available-for-sale debt securities:
U.S. treasuries and government agencies	—		101,410		—		101,410
State and municipal	—		299,222		—		299,222
Mortgage-backed and asset-backed	—		868,191		—		868,191
Total available-for-sale debt securities	—		1,268,823		—		1,268,823
Interest rate swap agreements	—		12,950		—		12,950
Total assets	$	—	$	1,305,383	$	—	$	1,305,383
Liabilities:
Interest rate swap agreements	$	—	$	(12,950)	$	—	$	(12,950)
Total liabilities	$	—	$	(12,950)	$	—	$	(12,950)

 (1) The outstanding principal balance for residential loans held for sale as of June 30, 2022 was $23.6 million.

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	December 31, 2021
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Residential mortgage loans held for sale (1)	$	—	$	39,409	$	—	$	39,409
Investments available-for-sale:
U.S. treasuries and government agencies	—		68,539		—		68,539
State and municipal	—		326,402		—		326,402
Mortgage-backed and asset-backed	—		1,070,955		—		1,070,955
Total investments available-for-sale	—		1,465,896		—		1,465,896
Interest rate swap agreements	—		5,880		—		5,880
Total assets	$	—	$	1,511,185	$	—	$	1,511,185
Liabilities:
Interest rate swap agreements	$	—	$	(5,880)	$	—	$	(5,880)
Total liabilities	$	—	$	(5,880)	$	—	$	(5,880)

 (1) The outstanding principal balance for residential loans held for sale as of December 31, 2021 was $38.2 million.

Assets Measured at Fair Value on a Nonrecurring Basis

The following tables set forth the Company’s financial assets subject to fair value adjustments on a nonrecurring basis at the date indicated that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	June 30, 2022
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	204	$	204	$	(893)
Other real estate owned	—		—		739		739		(81)
Total	$	—	$	—	$	943	$	943	$	(974)

(1) Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

	December 31, 2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	404	$	404	$	(1,353)
Other real estate owned	—		—		1,034		1,034		(81)
Total	$	—	$	—	$	1,438	$	1,438	$	(1,434)

(1) Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

At June 30, 2022, loans totaling $30.5 million were written down to fair value of $24.3 million as a result of individual credit loss allowances of $6.2 million associated with the collateral dependent loans. Loans totaling $33.5 million were written down to fair value of $26.9 million at December 31, 2021 as a result of individual credit loss allowances of $6.6 million associated with the collateral dependent loans.

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Fair value of the collateral dependent loans is measured based on the loan’s observable market price or the fair value of the collateral (less estimated selling costs). Collateral may be real estate and/or business assets such as equipment, inventory and/or accounts receivable. The value of business equipment, inventory and accounts receivable collateral is based on net book value on the business’ financial statements and, if necessary, discounted based on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical experience, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional individual reserve and adjusted accordingly, based on the factors identified above.

OREO is adjusted to fair value upon acquisition of the real estate collateral. Subsequently, OREO is carried at the lower of carrying value or fair value. The estimated fair value for OREO included in Level 3 is determined by independent market based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to initial recognition, the Company records the OREO as a nonrecurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods.

Fair Value of Financial Instruments

The Company discloses fair value information, based on the exit price notion, of financial instruments that are not measured at fair value in the financial statements. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists.

Quoted market prices, where available, are shown as estimates of fair market values. Because no quoted market prices are available for a significant portion of the Company's financial instruments, the fair value of such instruments has been derived based on the amount and timing of future cash flows and estimated discount rates based on observable inputs (“Level 2”) or unobservable inputs (“Level 3”).

Present value techniques used in estimating the fair value of many of the Company's financial instruments are significantly affected by the assumptions used. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate cash settlement of the instrument. Additionally, the accompanying estimates of fair values are only representative of the fair values of the individual financial assets and liabilities, and should not be considered an indication of the fair value of the Company. Management utilizes internal models used in asset liability management to determine the fair values disclosed below. Other investments include FRB and FHLB stock, whose carrying amounts approximate fair values based on the redemption provisions of each entity.

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The carrying amounts and fair values of the Company’s financial instruments at the dates indicated are presented in the following tables:

					Fair Value Measurements
	June 30, 2022				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	221,279	$	221,279	$	221,279	$	—	$	—
Residential mortgage loans held for sale	23,610		23,610		—		23,610		—
Available-for-sale debt securities	1,268,823		1,268,823		—		1,268,823		—
Held-to-maturity debt securities	274,337		250,915		—		250,915		—
Other investments	52,264		52,264		—		52,264		—
Loans, net of allowance	10,672,620		10,676,985		—		—		10,676,985
Interest rate swap agreements	12,950		12,950		—		12,950		—
Accrued interest receivable	33,459		33,459		33,459		—		—
Bank owned life insurance	151,371		151,371		—		151,371		—
Financial liabilities:
Time deposits	$	1,504,063	$	1,480,577	$	—	$	1,480,577	$	—
Other deposits	9,465,398		9,465,398		9,465,398		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	185,744		185,744		—		185,744		—
Advances from FHLB	175,000		174,966		—		174,966		—
Subordinated debt	369,906		336,830		—		—		336,830
Interest rate swap agreements	12,950		12,950		—		12,950		—
Accrued interest payable	4,266		4,266		4,266		—		—

					Fair Value Measurements
	December 31, 2021				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	420,020	$	420,020	$	420,020	$	—	$	—
Residential mortgage loans held for sale	39,409		39,409		—		39,409		—
Investments available-for-sale	1,465,896		1,465,896		—		1,465,896		—
Other investments	41,166		41,166		—		41,166		—
Loans, net of allowance	9,857,946		9,964,924		—		—		9,964,924
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest receivable	34,349		34,349		34,349		—		—
Bank owned life insurance	147,528		147,528		—		147,528		—
Financial liabilities:
Time deposits	$	1,290,862	$	1,292,598	$	—	$	1,292,598	$	—
Other deposits	9,333,869		9,333,869		9,333,869		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	141,086		141,086		—		141,086		—
Subordinated debt	172,712		175,780		—		—		175,780
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest payable	1,516		1,516		1,516		—		—

NOTE 17 - SEGMENT REPORTING

Currently, the Company conducts business in two operating segments - Community Banking and Investment Management. Each of the operating segments is a strategic business unit that offers different products and services. The Investment Management segment was a business acquired in a separate transaction where management of the acquired business was retained. The accounting policies of the segments are the same as those of the Company. However, the segment data reflects inter-segment transactions and balances.

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The Community Banking segment is conducted through the Bank and involves delivering a broad range of financial products and services, including various loan and deposit products, to both individuals and businesses. Parent company income and assets are included in the Community Banking segment, as the majority of parent company functions are related to this segment. Major revenue sources include net interest income, gains on sales of mortgage loans, trust income fees, and service charges on deposit accounts. Expenses include personnel, occupancy, marketing, equipment, and other expenses. Non-cash charges associated with amortization of intangibles were $1.0 million and $1.2 million for the three months ended June 30, 2022 and 2021, respectively, and were $2.1 million and $2.4 million for the six months ended June 30, 2022 and 2021, respectively.

Prior to June 2022, the Company operated the Insurance segment through Sandy Spring Insurance Corporation, a subsidiary of the Bank. Effective June 1, 2022, the Company sold substantially all of the assets of the Sandy Spring Insurance Corporation to a leading global insurance brokerage and financial services firm. Results of operations of the Insurance segment for the three and six months ended June 30, 2022 are presented in the table below.

The Investment Management segment is conducted through West Financial and RPJ, subsidiaries of the Bank. These asset management and financial planning firms, located in McLean, Virginia and Falls Church, Virginia, respectively, provide comprehensive investment management and financial planning to individuals, families, small businesses and associations, including cash flow analysis, investment review, tax planning, retirement planning, insurance analysis and estate planning. West Financial and RPJ had approximately $3.4 billion in combined assets under management as of June 30, 2022. Major revenue sources include non-interest income earned on the above services. Expenses include personnel, occupancy, support charges, and other expenses. Non-cash charges associated with amortization of intangibles were $0.4 million and $0.5 million for the three months ended June 30, 2022 and 2021, respectively, and were $0.9 million and $0.9 million for the six months ended June 30, 2022 and 2021, respectively.

Information for the operating segments and reconciliation of the information to the Condensed Consolidated Financial Statements for the periods indicated are presented in the following tables:

	Three Months Ended June 30, 2022
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	113,908	$	1	$	3	$	(3)	$	113,909
Interest expense	7,962		—		—		(3)		7,959
Provision for credit losses	3,046		—		—		—		3,046
Non-interest income	24,658		17,513		5,556		(12,482)		35,245
Non-interest expense	59,123		2,387		3,685		(204)		64,991
Income before income taxes	68,435		15,127		1,874		(12,278)		73,158
Income tax expense	13,635		4,217		506		—		18,358
Net income	$	54,800	$	10,910	$	1,368	$	(12,278)	$	54,800
Assets	$	13,323,298	$	17,804	$	51,375	$	(89,468)	$	13,303,009

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	Three Months Ended June 30, 2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	114,823	$	1	$	2	$	(3)	$	114,823
Interest expense	6,780		—		—		(3)		6,777
Provision/ (credit) for credit losses	(4,204)		—		—		—		(4,204)
Non-interest income	23,714		1,246		5,516		(4,217)		26,259
Non-interest expense	58,049		1,324		3,819		(217)		62,975
Income/ (loss) before income taxes	77,912		(77)		1,699		(4,000)		75,534
Income tax expense/ (benefit)	17,728		(21)		564		—		18,271
Net income/ (loss)	$	60,184	$	(56)	$	1,135	$	(4,000)	$	57,263
Assets	$	12,925,577	$	8,758	$	55,648	$	(64,406)	$	12,925,577

	Six Months Ended June 30, 2022
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	219,945	$	1	$	5	$	(6)	$	219,945
Interest expense	12,550		—		—		(6)		12,544
Provision for credit losses	4,681		—		—		—		4,681
Non-interest income	39,713		19,633		11,284		(14,790)		55,840
Non-interest expense	116,502		3,863		7,213		(440)		127,138
Income before income taxes	125,925		15,771		4,076		(14,350)		131,422
Income tax expense	27,190		4,397		1,100		—		32,687
Net income	$	98,735	$	11,374	$	2,976	$	(14,350)	$	98,735
Assets	$	13,323,298	$	17,804	$	51,375	$	(89,468)	$	13,303,009

	Six Months Ended June 30, 2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	229,084	$	2	$	4	$	(6)	$	229,084
Interest expense	16,444		—		—		(6)		16,438
Provision/ (credit) for credit losses	(38,912)		—		—		—		(38,912)
Non-interest income	45,439		3,397		10,723		(4,434)		55,125
Non-interest expense	121,744		2,811		7,027		(434)		131,148
Income before income taxes	175,247		588		3,700		(4,000)		175,535
Income tax expense	41,566		162		1,080		—		42,808
Net income	$	133,681	$	426	$	2,620	$	(4,000)	$	132,727
Assets	$	12,925,577	$	8,758	$	55,648	$	(64,406)	$	12,925,577

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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This report, as well as other periodic reports filed with the Securities and Exchange Commission, and written or oral communications made from time to time by or on behalf of Sandy Spring Bancorp, Inc. and its subsidiaries (the “Company”), may contain statements relating to future events or future results of the Company that are considered “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “intend” and “potential,” or words of similar meaning, or future or conditional verbs such as “should,” “could,” or “may.” Forward-looking statements include statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits.

Forward-looking statements reflect our expectation or prediction of future conditions, events or results based on information currently available. These forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These principal risks and uncertainties include, but are not limited to, the risks identified in Item 1A of the Company’s 2021 Annual Report on Form 10-K, Item 1A of Part II of this report and the following:

•risks, uncertainties and other factors relating to the COVID-19 pandemic, including the length of time that the pandemic continues, the effectiveness and acceptance of vaccination programs, the imposition of restrictions on business operations and/or travel; the effect of the pandemic on the general economy and on the businesses of our borrowers and their ability to make payments on their obligations; the remedial actions and stimulus measures adopted by federal, state and local governments, and the inability of employees to work due to illness, quarantine, or government mandates;

•the impacts related to or resulting from Russia's military action in Ukraine, including the broader impacts to financial markets and the global macroeconomic and geopolitical environments;

•general business and economic conditions, including higher inflation and its impacts, nationally or in the markets that the Company serves could adversely affect, among other things, real estate prices, unemployment levels, the ability of businesses to remain viable and consumer and business confidence, which could lead to decreases in the demand for loans, deposits and other financial services that we provide and increases in loan delinquencies and defaults;

•changes or volatility in the capital markets and interest rates may adversely impact the value of securities, loans, deposits and other financial instruments and the interest rate sensitivity of our balance sheet as well as our liquidity;

•our liquidity requirements could be adversely affected by changes in our assets and liabilities;

•our investment securities portfolio is subject to credit risk, market risk, and liquidity risk, as well as changes in the estimates we use to value certain of the securities in our portfolio;

•the effect of legislative or regulatory developments including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial services industry;

•acquisition risks, including potential deposit attrition, higher than expected costs, customer loss, business disruption and the inability to realize benefits and costs savings from, and limit any unexpected liabilities associated with, any business combinations;

•competitive factors among financial services companies, including product and pricing pressures and our ability to attract, develop and retain qualified banking professionals;

•the effect of changes in accounting policies and practices, as may be adopted by the Financial Accounting Standards Board, the Securities and Exchange Commission, the Public Company Accounting Oversight Board and other regulatory agencies; and

•the effect of fiscal and governmental policies of the United States federal government.

Forward-looking statements speak only as of the date of this report. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date of this report or to reflect the occurrence of unanticipated events except as required by federal securities laws.

The Company

Sandy Spring Bancorp, Inc. is the bank holding company for Sandy Spring Bank (the “Bank”). The Company is a community banking organization that focuses its lending and other services on businesses and consumers in the local market area. At June 30, 2022, the Company had $13.3 billion in total assets, compared to $12.6 billion at December 31, 2021. Bancorp is registered as a bank holding company pursuant to the Bank Holding Company Act of 1956, as amended and is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”).

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The Bank is an independent and community-oriented bank that offers a broad range of commercial banking, retail banking, mortgage and trust services throughout central Maryland, Virginia, and the greater Washington, D.C. market. Through its subsidiaries, West Financial Services, Inc. ("West") and SSB Wealth Management, Inc. (d/b/a Rembert Pendleton and Jackson, "RPJ”), the Bank also offers wealth management services. Prior to June 2022, the Company operated Sandy Spring Insurance Corporation, a subsidiary of the Bank. Effective June 1, 2022, the Company sold substantially all of the assets of the Sandy Spring Insurance Corporation. The Bank is a state chartered bank subject to supervision and regulation by the Federal Reserve and the State of Maryland. Deposit accounts of the Bank are insured by the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation (the “FDIC”) to the maximum amount permitted by law. The Bank is a member of the Federal Reserve System and is an Equal Housing Lender. The Company, the Bank, and its other subsidiaries are Affirmative Action/Equal Opportunity Employers.  

Current Quarter Financial Overview

The Company recorded net income of $54.8 million ($1.21 per diluted common share) in the current quarter compared to net income of $57.3 million ($1.19 per diluted common share) for the second quarter of 2021 and net income of $43.9 million ($0.96 per diluted common share) for the first quarter of 2022. The decline in earnings was the result of lower net interest income, the current quarter's provision for credit losses compared to the prior year's credit to the allowance and an increase in non-interest expense, partially offset by the increase in non-interest income. The decline in net interest income was the product of lower PPP fees and interest, partially offset by interest income from loan growth, and an increase in interest expense.

Current quarter core earnings were $44.2 million ($0.98 per diluted common share), compared to $58.4 million ($1.23 per diluted common share) for the quarter ended June 30, 2021 and $45.1 million ($0.99 per diluted common share) for the quarter ended March 31, 2022. Core earnings are determined by excluding the after-tax impact of merger, acquisition and disposal expense, the loss on FHLB redemptions, amortization of intangibles, gain on disposal of assets and investment securities gains. Core earnings for the current period when compared to the prior year quarter were reduced primarily as a result of the activity associated with provisioning for credit losses, a decline in mortgage banking income, lower other non-interest income from isolated events that occurred in 2021 and a decline in net interest income. The provision for credit losses for the current quarter was a charge of $3.0 million compared to a credit of $4.2 million for the second quarter of 2021 and a charge of $1.6 million for the first quarter of 2022.

The current quarter reflects the following:

•At June 30, 2022, total assets were $13.3 billion, a 3% increase compared to $12.9 billion at June 30, 2021. During the previous twelve months, liquidity resulting from PPP loan forgiveness was utilized to fund the growth in the loan and investment securities portfolios. Excluding PPP loan balances, total assets grew 10% year-over-year.

•For the second quarter of 2022, the net interest margin was 3.49%, compared to 3.63% for the second quarter of 2021, and 3.49% for the first quarter of 2022. Excluding the amortization of the fair value marks derived from the previous acquisitions and interest and fees from PPP loans, the current quarter’s net interest margin was 3.45%, compared to 3.49% for second quarter of 2021, and 3.41% for the first quarter of 2022.

•The provision for credit losses was a charge of $3.0 million for the current quarter compared to the prior year quarter’s credit to the provision of $4.2 million. The provision for the current quarter is a reflection of the growth in the loan portfolio, coupled with the management's consideration of the potential impact of recessionary pressures, which exceeded the benefit to the provision derived from continuing improvement in forecasted macroeconomic indicators.

•Non-interest income for the current quarter increased by 34% or $9.0 million compared to the prior year quarter as a result of the $16.7 million gain from the disposition of assets of the Company's insurance subsidiary. Excluding the disposition gain, non-interest income declined 29% compared to the prior year quarter as a result of the $4.3 million decline in income from mortgage banking activities and the $3.4 million decline in other non-interest income compared to the second quarter of 2021.

•Non-interest expense for the current quarter increased $2.0 million or 3% compared to the prior year quarter with a major component of the increase the result of $1.1 million in merger, acquisition and disposal expense. Other non-interest expense also increased $1.4 million driven by the combination of various operating expenses.

•Return on average assets (“ROA”) for the quarter ended June 30, 2022 was 1.69% and return on average tangible common equity (“ROTCE”) was 20.42% compared to 1.79% and 20.44%, respectively, for the second quarter of 2021. On a non-GAAP basis, the current quarter's core ROA was 1.37% and core ROTCE was 16.49% compared to core ROA of 1.83% and core ROTCE of 20.87% for the second quarter of 2021.

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•For the second quarter of 2022, the GAAP efficiency ratio was 46.03% compared to 46.89% for the second quarter of 2021, and 50.92% for the first quarter of 2022. The non-GAAP efficiency ratio for the second quarter of 2022 was 49.79% compared to 45.36% for the prior year quarter, and 49.34% for the first quarter of 2022.

•During the quarter, the Company repurchased 625,710 shares of its common stock for $25.0 million at an average price of $39.93 per share. The repurchase plan that was authorized on March 30, 2022 permits the repurchase of up to $50.0 million in shares of common stock.

Summary of Second Quarter Results

Balance Sheet and Credit Quality

Total assets grew 3% to $13.3 billion at June 30, 2022, as compared to $12.9 billion at June 30, 2021. During this period, total loans grew by 7% to $10.8 billion at June 30, 2022, compared to $10.1 billion at June 30, 2021. At June 30, 2022, excluding PPP loans, total assets grew 10% and total loans grew 17% compared to June 30, 2021. Total commercial loans, excluding the impact of PPP loan forgiveness, grew by $1.3 billion or 17% during the past twelve months. During this period, the Company generated gross commercial loan production of $4.4 billion, of which $3.0 billion was funded, offsetting $1.6 billion in commercial loan run-off. During the second quarter of 2022, funded commercial loan production was $804.6 million, an increase of 60% compared to $502.5 million for the same quarter of the prior year. The growth in the commercial portfolio, excluding PPP loans, occurred in all commercial portfolios led by the $1.0 billion or 28% growth in the investor owned commercial portfolio. Year-over-year, the total mortgage loan portfolio grew 22%, as a greater number of conventional 1-4 family mortgages were retained to grow the portfolio.

During the past twelve months, deposits increased 1%, driven by 3% growth in noninterest-bearing deposits reflecting the growth in transaction relationships, while interest-bearing deposits remained at $6.8 billion. During the period, time deposits decreased 9% and money market accounts decreased 4%, while savings and interest bearing demand categories experienced year-over-year growth of 15% and 12%, respectively.

The tangible common equity ratio decreased to 8.45% of tangible assets at June 30, 2022, compared to 9.28% at June 30, 2021 as a result of the $132.3 million repurchase of common shares during the previous twelve months, in combination with the $88.9 million increase in the accumulated other comprehensive loss due to the impact of the rising rate environment on values of the securities in the investment portfolio coupled with the increase in tangible assets during the past year. At June 30, 2022, the Company had a total risk-based capital ratio of 16.07%, a common equity tier 1 risk-based capital ratio of 11.58%, a tier 1 risk-based capital ratio of 11.58%, and a tier 1 leverage ratio of 9.53%.

Non-performing loans include non-accrual loans, accruing loans 90 days or more past due and restructured loans. At June 30, 2022, the level of non-performing loans to total loans was 0.40% compared to 0.93% at June 30, 2021, and 0.46% at March 31, 2022. At June 30, 2022, non-performing loans totaled $43.5 million, compared to $94.3 million at June 30, 2021, and $46.3 million at March 31, 2022. Loans placed on non-accrual during the current quarter amounted to $0.9 million compared to $1.5 million for the prior year quarter and $1.5 million for the first quarter of 2022.

The Company realized an insignificant amount of net recoveries for the second quarter of 2022, as compared to net charge-offs of $2.2 million for the second quarter of 2021 and net charge-offs of $0.2 million for the first quarter of 2022.

At June 30, 2022, the allowance for credit losses was $113.7 million or 1.05% of outstanding loans and 261% of non-performing loans, compared to $110.6 million or 1.09% of outstanding loans and 239% of non-performing loans at the end of the previous quarter. The increase in the allowance during the current quarter compared to the previous quarter resulted from the growth in the loan portfolio and the effect of management's consideration of the potential impact of recessionary pressures. The impact from these metrics applied in the determination of the allowance continue to be partially mitigated by forecasted improvement in certain economic metrics, notably the projected improvement in unemployment rate in future periods.

Quarterly Results of Operations

Net income for the three months ended June 30, 2022 was $54.8 million compared to net income of $57.3 million for the prior year quarter. The decline in earnings was the result of lower net interest income, the current quarter's provision for credit losses compared to the prior year's credit to the allowance and an increase in non-interest expense, partially offset by the increase in non-interest income.

For the second quarter of 2022, net interest income decreased $2.1 million or 2% compared to the second quarter of 2021, as interest income declined $0.9 million and interest expense increased $1.2 million. The provision for credit losses was a charge

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of $3.0 million for the second quarter of 2022 compared to a credit of $4.2 million for the second quarter of 2021. The provision for credit losses for the first quarter of 2022 was a charge of $1.6 million. Non-interest income for the current quarter increased by 34% or $9.0 million compared to the prior year quarter driven by the $16.7 million gain on the sale of the Company's insurance business. Income from mortgage banking activities declined 74% and other non-interest income decreased 62% compared to the second quarter of 2021, which included isolated sources of income. Compared to the prior year quarter, wealth management income and bank card fees remained stable while service charges on deposit accounts grew 25%. Non-interest expense increased $2.0 million or 3% for the second quarter of 2022, compared to the prior year quarter. The majority of the increase was the result of $1.1 million of transaction costs associated with the sale of the insurance subsidiary's assets during the quarter. Other expenses increased $1.4 million as a result of the combination of the provision for lines of credit, franchise taxes and other operating costs. The remaining categories of non-interest expense experienced modest increases or decreases with professional fees declining $0.8 million during the current quarter compared to the prior year quarter as a result of lower consulting fees.

Results of Operations

For the Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021

The Company recorded net income of $98.7 million for the six months ended June 30, 2022 compared to net income of $132.7 million for the same period of the prior year. The decline in year-to-date earnings for the current year primarily reflects the impact of the decline in PPP fees and interest, partially offset by the impact on interest income from the growth in the commercial loan portfolio, and the activity in the provision for loan losses, which shifted from the significant credit in the prior year to the charge for the current year. Core earnings were $89.3 million ($1.97 per diluted common share) for the six months ended June 30, 2022 compared to $142.0 million ($2.99 per diluted common share) for the prior year. Core earnings for the current period compared to the prior year period were reduced primarily as a result of the activity associated with the provision for credit losses, a decline in mortgage banking income and lower other non-interest income from isolated events that occurred in 2021. Core earnings for the current period excludes the gain from the disposal of the Company's insurance business and the associated transaction costs. Pre-tax, pre-provision net income, was $136.1 million for the six months ended June 30, 2022 compared to $136.6 million for the prior year period. Net interest income for the current period included $4.4 million in PPP interest and fees compared to $24.1 million for the same period of 2021.

Year-to-date, the provision for credit losses was a charge of $4.7 million as compared to a credit of $38.9 million for the same period of 2021. For the six months ended June 30, 2022, the provision for credit losses is a reflection of the growth in the loan portfolio, coupled with the management's consideration of the potential impact of recessionary pressures, which exceeded the benefit to the provision derived from continuing improvement in forecasted macroeconomic indicators. The prior year's credit to the provision for credit losses was a reflection of the net impact of forecasted economic metrics and other factors applied in the determination of the allowance.

Net Interest Income

Net interest income for the six months ended June 30, 2022 decreased 2% or $5.2 million to $207.4 million compared to $212.6 million for the six months ended June 30, 2021. On a tax-equivalent basis, net interest income for the six months ended June 30, 2022 was $209.3 million compared to $214.6 million for the six months ended June 30, 2021. A major component driving the decrease in net interest income for the current period was the $19.7 million reduction in PPP interest and fees from the prior year period to the current year period. Excluding the impact of this reduction, interest income grew $10.5 million or 5% compared to the prior year period, due to the significant growth in the commercial loan portfolio. Interest expense declined 24% or $3.9 million period-over-period due to lower deposit and borrowings costs, a result of higher rate time deposit run-off, lower money market rates and the redemption of FHLB advances in 2021. On a tax-equivalent basis, year-over-year net interest income decreased 2% compared to the same period in the prior year as a result of the $9.2 million decline in interest income, partially mitigated by the $3.9 million decrease in interest expense. The amortization of fair value marks for the current period resulted in the reductions of interest income of $0.5 million and interest expense of $1.1 million compared to additional interest income of $0.9 million and a reduction of interest expense of $2.9 million for the prior year period.

The following tables provide an analysis of net interest income performance that reflects a net interest margin that has declined to 3.49% for the six months ended June 30, 2022 compared to 3.60% for the six months ended June 30, 2021. For the comparative period, the average yield on earning assets declined 17 basis points while the average rate paid on interest-bearing liabilities declined nine basis points, resulting in the decreased margin. Excluding the impact of the amortization of the fair value marks derived from acquisitions and PPP interest and fees, the net interest margin for the current year would have been 3.43% compared to 3.46% for the prior year.

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Consolidated Average Balances, Yields and Rates

	Six Months Ended June 30,
	2022						2021
(Dollars in thousands and tax-equivalent)	Average Balances		Interest (1)		Annualized Average Yield/Rate		Average Balances		Interest (1)		Annualized Average Yield/Rate
Assets:
Commercial investor real estate loans	$	4,367,400	$	86,782	4.01	%	$	3,654,760	$	76,765	4.24	%
Commercial owner-occupied real estate loans	1,705,562		37,842		4.47		1,651,282		38,040		4.65
Commercial AD&C loans	1,099,498		22,320		4.09		1,069,552		21,215		4.00
Commercial business loans	1,353,446		32,174		4.79		2,258,311		50,042		4.47
Total commercial loans	8,525,906		179,118		4.24		8,633,905		186,062		4.35
Residential mortgage loans	1,017,741		16,652		3.27		1,030,608		18,178		3.53
Residential construction loans	209,264		3,267		3.15		178,020		3,168		3.59
Consumer loans	422,929		7,581		3.61		482,555		8,728		3.65
Total residential and consumer loans	1,649,934		27,500		3.34		1,691,183		30,074		3.57
Total loans (2)	10,175,840		206,618		4.09		10,325,088		216,136		4.22
Loans held for sale	15,155		343		4.53		74,568		1,086		2.91
Taxable securities	1,180,168		8,737		1.48		984,305		8,272		1.68
Tax-advantaged securities	471,919		5,633		2.39		461,084		5,407		2.35
Total investment securities (3)	1,652,087		14,370		1.74		1,445,389		13,679		1.89
Interest-bearing deposits with banks	229,257		471		0.41		187,954		93		0.10
Federal funds sold	650		1		0.43		588		—		0.09
Total interest-earning assets	12,072,989		221,803		3.70		12,033,587		230,994		3.87
Less: allowance for credit losses	(111,302)						(146,892)
Cash and due from banks	75,750						102,013
Premises and equipment, net	61,733						56,042
Other assets	685,870						752,318
Total assets	$	12,785,040					$	12,797,068
Liabilities and Stockholders' Equity:
Interest-bearing demand deposits	$	1,494,809	$	572	0.08	%	$	1,383,253	$	462	0.07	%
Regular savings deposits	553,435		41		0.01		460,738		122		0.05
Money market savings deposits	3,401,641		2,122		0.13		3,387,341		2,717		0.16
Time deposits	1,355,615		3,353		0.50		1,693,179		5,380		0.64
Total interest-bearing deposits	6,805,500		6,088		0.18		6,924,511		8,681		0.25
Federal funds purchased	49,271		181		0.74		30,519		13		0.09
Repurchase agreements	127,083		74		0.12		142,208		83		0.12
Advances from FHLB	1,915		17		1.74		224,467		2,649		2.38
Subordinated debentures	287,164		6,184		4.31		227,050		5,012		4.41
Total borrowings	465,433		6,456		2.80		624,244		7,757		2.51
Total interest-bearing liabilities	7,270,933		12,544		0.35		7,548,755		16,438		0.44
Noninterest-bearing demand deposits	3,880,919						3,579,642
Other liabilities	146,018						168,029
Stockholders' equity	1,487,170						1,500,642
Total liabilities and stockholders' equity	$	12,785,040					$	12,797,068
Tax-equivalent net interest income and spread			$	209,259	3.35	%			$	214,556	3.43	%
Less: tax-equivalent adjustment			1,858						1,910
Net interest income			$	207,401					$	212,646
Interest income/earning assets					3.70	%					3.87	%
Interest expense/earning assets					0.21						0.27
Net interest margin					3.49	%					3.60	%

(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.64% and 25.50% for 2022 and 2021, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.9 million and $1.9 million in 2022 and 2021, respectively.

(2)Non-accrual loans are included in the average balances.

(3)Investments available-for-sale are presented at amortized cost.

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Effect of Volume and Rate Changes on Tax-Equivalent Net Interest Income

The following table analyzes the reasons for the changes from year-to-year in the principal elements that comprise tax-equivalent net interest income:

	2022 vs. 2021						2021 vs. 2020
	Increase Or (Decrease)		Due to Change In Average:*				Increase Or (Decrease)		Due to Change In Average:*
(Dollars in thousands and tax equivalent)			Volume		Rate				Volume		Rate
Interest income from earning assets:
Commercial investor real estate loans	$	10,017	$	14,359	$	(4,342)	$	13,074	$	17,405	$	(4,331)
Commercial owner-occupied real estate loans	(198)		1,263		(1,461)		3,040		3,737		(697)
Commercial AD&C loans	1,105		613		492		2,000		5,324		(3,324)
Commercial business loans	(17,868)		(21,240)		3,372		20,439		19,823		616
Residential mortgage loans	(1,526)		(221)		(1,305)		(3,822)		(2,583)		(1,239)
Residential construction loans	99		516		(417)		(84)		457		(541)
Consumer loans	(1,147)		(1,054)		(93)		(1,769)		(742)		(1,027)
Loans held for sale	(743)		(1,143)		400		390		446		(56)
Taxable securities	465		1,513		(1,048)		(5,095)		(987)		(4,108)
Tax-exempt securities	226		131		95		1,846		3,017		(1,171)
Interest-bearing deposits with banks	378		25		353		(242)		(94)		(148)
Federal funds sold	1		—		1		(1)		—		(1)
Total tax-equivalent interest income	(9,191)		(5,238)		(3,953)		29,776		45,803		(16,027)
Interest expense on funding of earning assets:
Interest-bearing demand deposits	110		40		70		(692)		356		(1,048)
Regular savings deposits	(81)		20		(101)		(24)		37		(61)
Money market savings deposits	(595)		9		(604)		(5,329)		2,479		(7,808)
Time deposits	(2,027)		(967)		(1,060)		(11,076)		(1,926)		(9,150)
Federal funds purchased	168		12		156		(858)		(444)		(414)
Repurchase agreements	(9)		(9)		—		(226)		5		(231)
Advances from FHLB	(2,632)		(2,057)		(575)		1,627		(1,117)		2,744
Subordinated debentures	1,172		1,287		(115)		79		196		(117)
Total interest expense	(3,894)		(1,665)		(2,229)		(16,499)		(460)		(16,039)
Tax-equivalent net interest income	$	(5,297)	$	(3,573)	$	(1,724)	$	46,275	$	46,263	$	12

*Variances that are the combined effect of volume and rate, but cannot be separately identified, are allocated to the volume and rate variances based on their respective relative amounts.

Interest Income

The Company's total tax-equivalent interest income decreased 4% for the first six months of 2022 compared to the prior year period. The previous table reflects that the majority of the decrease in interest income was the result of the decline in interest income on commercial loans, specifically commercial business loans. This decline occurred as interest and fees associated with PPP loans decreased year over year by $19.7 million. Interest income on residential mortgage loans and consumer loans also declined a combined $2.6 million during the comparative period. Excluding PPP interest and fee income, interest income increased $10.5 million or 5% during the current period compared to the prior year period.

During the first six months of 2022 average loans outstanding decreased 1% compared to the first six months of 2021. Excluding the impact of the reduction of PPP loans from the forgiveness program, average loans grew 10% period over period, almost entirely in commercial real estate. During the comparative period, total average commercial real estate loans grew 12% and commercial business loans grew 14%. Average consumer loans, predominantly home equity loans, decreased 12% and the residential mortgage portfolio declined 1% during the same time period, both the direct result of the increased refinancing activity spurred by the low rate environment. Compared to the prior year, the yield on average loans decreased 13 basis points. The average yield on total investment securities decreased 15 basis points while the average balance of the investment portfolio increased 14% for the first six months of 2022 compared to the first six months of 2021. The larger average balance resulted in a 5% increase in interest income from investment securities during the period despite lower portfolio yields. Composition of the average investment portfolio shifted to 71% in taxable securities in the current period, as compared to 68% for the prior year period. During the same period, the average yield for investment securities decreased 15 basis points as cash flows and maturities in the portfolio were reinvested at lower rates in the current interest rate environment.

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Interest Expense

For the first six months of 2022 interest expense decreased $3.9 million or 24% compared to the first six months of 2021. The year over year decrease was comprised of a $2.6 million or 30% decline in deposit interest expense and a $1.3 million or 17% decrease in borrowing cost. The majority of the decline in deposit interest expense occurred on money market and time deposit accounts due to the rate decline on the money market accounts and the run-off of higher rate time deposits. Borrowing expense declined as average borrowings declined coupled with the associated interest expense shifting away from FHLB borrowings to subordinated debt. The fair value premium amortization on time deposits for the first six months of 2022 was responsible for a $1.1 million reduction in interest expense compared to $2.6 million for the same period in 2021. During the comparative period, the rate paid on interest-bearing liabilities decreased nine basis points driven by the decline in the average rate paid on deposits. The drivers in the decline in the total average rate paid on interest-bearing deposits during this time period were the 14 basis point decline the average rate paid on time deposits and the three basis point decline in average money market rates. The cost of interest-bearing deposits, including the fair value amortization on time deposits, declined seven basis points for the first six months of 2022 compared to the first six months of 2021. The time deposit amortization adjustment benefited the net interest margin by two basis points for the first six months of 2022 compared to five basis points for the same period in 2021.

Non-interest Income

Non-interest income amounts and trends are presented in the following table for the periods indicated:

	Six Months Ended June 30,				2022/2021		2022/2021
(Dollars in thousands)	2022		2021		$ Change		% Change
Securities gains	$	46	$	129	$	(83)	(64.3)	%
Gain on disposal of assets	16,699		—		16,699		N/M
Service charges on deposit accounts	4,793		3,828		965		25.2
Mortgage banking activities	3,781		15,945		(12,164)		(76.3)
Wealth management income	18,435		17,851		584		3.3
Insurance agency commissions	2,927		3,400		(473)		(13.9)
Income from bank owned life insurance	1,498		1,385		113		8.2
Bank card fees	3,478		3,303		175		5.3
Other income	4,183		9,284		(5,101)		(54.9)
Total non-interest income	$	55,840	$	55,125	$	715	1.3

For the six months ended June 30, 2022, non-interest income included a $16.7 million gain on the disposal of assets associated with the sale of insurance business and resulted in an increase of 1% to $55.8 million compared to $55.1 million for 2021. Excluding the gain, non-interest income decreased 29% driven by a 76% decline in income from mortgage banking activities and a 55% decline in other income. The decline in income from mortgage banking activities is the result of the rising interest rate environment, which has dampened new mortgage and refinancing activity. Other income declined from the prior year, which included the full payoff of a purchased credit deteriorated loan and activity-based vendor incentives. These declines exceeded the 3% growth in wealth management income, 25% growth in service charges on deposit accounts and 5% growth in bank card fees. Wealth management income grew, despite the erosion of assets under management due to marketplace volatility, as a result of increased asset management fees. Service charge and bank card income growth occurred as a result of increased commercial account service charges and customer activity. Further detail by type of non-interest income follows:

•Service charges on deposit accounts increased 25% in the first six months of 2022, compared to the first six months of 2021. The growth in service charge income reflects the impact of an increase in the current year's service charges on commercial demand deposit accounts and return check transaction volume.

•Income from mortgage banking activities decreased 76% in the first six months of 2022, compared to the first six months of 2021, as a result of reduced demand for new home mortgages and refinancing.

•Wealth management income, comprised of income from trust and estate services and investment management fees earned by the Company’s investment management subsidiaries, increased 3% for the first six months of 2022 compared to the same period of the prior year. The increase in wealth management income was comprised of a 5% increase in investment management fees and a 1% increase in trust services fees for the first six months of 2022 compared to the prior year period. Overall, total assets under management decreased to $5.2 billion at June 30, 2022 compared to $5.7 billion at June 30, 2021, as a result of the volatility in the marketplace.

•Insurance agency commissions decreased 14% for the first six months of 2022 as compared to the first six months of 2021, due the sale of the Company's insurance business in June 2022.

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•Bank-owned life insurance income increased 8% for the first six months of 2022 as compared to the first six months of 2021 as a result of improved policy returns.

•Bank card fee income grew 5% during the first six months of 2022, compared to the first six months of 2021, as a result of increased transaction volume during the period.

•Other income decreased by 55% or $5.1 million during the first six months of 2022, compared to the first six months of 2021. The decrease for the current year was the result of the prior year's inclusion of the payoff of a purchased credit deteriorated loan, activity-based contractual vendor incentives and credit related fees.

Non-interest Expense

Non-interest expense amounts and trends are presented in the following table for the periods indicated:

	Six Months Ended June 30,				2022/2021		2022/2021
(Dollars in thousands)	2022		2021		$ Change		% Change
Salaries and employee benefits	$	78,923	$	75,642	$	3,281	4.3	%
Occupancy expense of premises	9,768		10,984		(1,216)		(11.1)
Equipment expense	7,095		6,242		853		13.7
Marketing	2,473		2,264		209		9.2
Outside data services	4,983		4,543		440		9.7
FDIC insurance	2,062		2,942		(880)		(29.9)
Amortization of intangible assets	2,974		3,356		(382)		(11.4)
Merger, acquisition and disposal expense	1,067		45		1,022		N/M
Professional fees and services	4,389		4,896		(507)		(10.4)
Other expenses	13,404		20,234		(6,830)		(33.8)
Total non-interest expense	$	127,138	$	131,148	$	(4,010)	(3.1)

Non-interest expense decreased 3% to $127.1 million for the six months ended June 30, 2022, compared to $131.1 million for 2021. Excluding merger, acquisition and disposal expense from the current and prior year periods and the $9.1 million in prepayment penalties on FHLB borrowings that occurred in the prior year, non-interest expense increased 3% year-over-year. The drivers of the increase in adjusted non-interest expense were a 4% increase in salaries and benefits and a 20% increase in other expense, excluding the FHLB prepayment penalties. The year-over-year increase in salaries and benefits was the result of staffing increases, salary adjustments and increased benefit costs. The principal component of the increase in other expense was the $1.2 million increase in the provision for credit losses provided on lines of credit compared to the prior year period. Marketing and outside data services costs increased 9% and 10%, respectively, while FDIC insurance premiums and professional fee and service costs decreased 30% and 10%, respectively, for the period. Further detail by category of non-interest expense follows:

•Salaries and employee benefits, the largest component of non-interest expense, increased 4% or $3.3 million in the first six months of 2022. Regular salaries represented $1.4 million of this increase, which was the result of staffing increases and adjustments. The remainder of the increase was driven by changes to the stock compensation plan which only affect the current period expense.

•Combined occupancy and equipment expenses decreased 2% compared to the prior year as a result of decreased rental costs associated with the reduction in branches and business offices partially offset by increased software costs.

•Marketing expense increased 9% for the first six months of 2022 compared to the same period of the prior year, due to focused advertising initiatives.

•Outside data services expense increased 10% from the prior year period due to the increase in volume-based components of contractual-based services.

•FDIC insurance decreased 30% for 2022 as a result of the reduction in risk factors applied by the regulatory agency in the determination of the Company's premium.

•Amortization of intangible assets decreased as a result of the decline in the core deposit intangible amortization of the asset recognized in the Revere acquisition and, to a lesser degree, the amortization of intangibles acquired from the RPJ acquisition.

•Professional fees and services declined 10% from the prior year due to costs associated with various consulting projects and initiatives.

•Other non-interest expenses decreased $6.8 million due primarily to the prepayment penalties of $9.1 million incurred in the prior year from the liquidation of FHLB advances. This decrease has been partially offset in the current year by the increase in the provision for lines of credit, franchise taxes and other operating costs as compared to the prior year.

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Income Taxes

The Company had income tax expense of $32.7 million in the first six months of 2022, compared to income tax expense of $42.8 million in the first six months of 2021, as a result of the decrease in current year-to-date pre-tax earnings compared to the prior year's pre-tax earnings. The effective tax rate for the six months ended June 30, 2022 was 24.87%, compared to a tax rate of 24.39% for the same period in 2021. The increase in the current year's effective tax rate is the result of pre-tax income containing a greater proportion of taxable income compared to the prior year period.

Operating Expense Performance

Management views the GAAP efficiency ratio as an important financial measure of expense performance and cost management. The ratio expresses the level of non-interest expense as a percentage of total revenue (net interest income plus total non-interest income). Lower ratios indicate improved productivity.

Non-GAAP Financial Measures

The Company also uses a traditional efficiency ratio that is a non-GAAP financial measure of operating expense control and efficiency of operations. Management believes that its traditional efficiency ratio better focuses attention on the operating performance of the Company over time than does a GAAP efficiency ratio, and is highly useful in comparing period-to-period operating performance of the Company’s core business operations. It is used by management as part of its assessment of its performance in managing non-interest expense. However, this measure is supplemental, and is not a substitute for an analysis of performance based on GAAP measures. The reader is cautioned that the non-GAAP efficiency ratio used by the Company may not be comparable to GAAP or non-GAAP efficiency ratios reported by other financial institutions.

In general, the efficiency ratio is non-interest expense as a percentage of net interest income plus non-interest income. Non-interest expense used in the calculation of the non-GAAP efficiency ratio excludes merger, acquisition and disposal expense, the amortization of intangibles, and other non-core expenses, such as early prepayment penalties on FHLB advances. Income for the non-GAAP efficiency ratio includes the favorable effect of tax-exempt income, and excludes gain on disposal of assets and securities gains and losses, which vary widely from period to period without appreciably affecting operating expenses, and other non-recurring gains (if any). The measure is different from the GAAP efficiency ratio, which also is presented in this report. The GAAP measure is calculated using non-interest expense and income amounts as shown on the face of the Condensed Consolidated Statements of Income. For the six months ended June 30, 2022, the GAAP efficiency ratio was 48.30% compared to 48.98% for the same period in 2021. The current period's improvement in the GAAP efficiency ratio compared to the prior year period is directly related to the prior year's inclusion of the loss on the FHLB redemption in non-interest expense. The non-GAAP efficiency ratio the current year was 49.57% compared to 44.01% for to prior year. The current year’s non-GAAP efficiency ratio compared to the prior year, indicates a decline in efficiency, the result of the 8% decrease in non-GAAP revenue combined with the 4% growth in non-GAAP non-interest expense.

In addition, the Company uses pre-tax, pre-provision net income, as a measure of the level of certain recurring income before taxes. Management believes this provides financial statement users with a useful metric of the run-rate of revenues and expenses that is readily comparable to other financial institutions. This measure is calculated by adding/(subtracting) the provision (credit) for credit losses and the provision for income taxes back to/from net income. This metric remained level the first six months of 2022 compared to the same period for 2021, due to the impact of the activity in the provision for credit losses for each period and the impact it had on each period's net income.

The Company has presented core earnings, core earnings per share, core return on average assets and core return on average tangible common equity in order to present metrics that are more comparable to prior periods to provide an indication of the core performance of the Company year over year. Core earnings reflect net income exclusive of merger, acquisition and disposal expense, amortization of intangible assets, loss on FHLB redemptions, gain on disposal of assets and investment securities gains, in each case net of tax. Core earnings were $89.3 million ($1.97 per diluted common share) for the six months ended June 30, 2022, compared to $142.0 million ($2.99 per diluted common share) for the six months ended June 30, 2021. Average tangible assets and average tangible common equity represents average assets and average stockholders’ equity, respectively, adjusted for average goodwill and average intangible assets. The ROA for the first six months of 2022 was 1.56% compared to 2.09% for the same period of the prior year. For the six months ended June 30, 2022, the non-GAAP core ROA was 1.41% compared to 2.24% for the same period in the prior year. ROTCE was 18.21% for the first six months of 2022 compared to 24.35% for the first six months of 2021. The non-GAAP core ROTCE was 16.47% for the first six months of 2022 compared to 26.04% for the first six months of 2021.

47

GAAP and Non-GAAP Efficiency Ratios and Measures

	Six Months Ended June 30,
(Dollars in thousands)	2022			2021
Pre-tax pre-provision net income:
Net income	$	98,735		$	132,727
Plus/ (less) non-GAAP adjustments:
Income tax expense	32,687			42,808
Provision/ (credit) for credit losses	4,681			(38,912)
Pre-tax pre-provision net income	$	136,103		$	136,623
Efficiency ratio (GAAP):
Non-interest expense	$	127,138		$	131,148
Net interest income plus non-interest income	$	263,241		$	267,771
Efficiency ratio (GAAP)	48.30		%	48.98		%
Efficiency ratio (non-GAAP):
Non-interest expense	$	127,138		$	131,148
Less non-GAAP adjustments:
Amortization of intangible assets	2,974			3,356
Loss on FHLB redemption	—			9,117
Merger, acquisition and disposal expense	1,067			45
Non-interest expense - as adjusted	$	123,097		$	118,630
Net interest income plus non-interest income	$	263,241		$	267,771
Plus non-GAAP adjustment:
Tax-equivalent income	1,858			1,910
Less non-GAAP adjustment:
Securities gains	46			129
Gain on disposal of assets	16,699			—
Net interest income plus non-interest income - as adjusted	$	248,354		$	269,552
Efficiency ratio (non-GAAP)	49.57		%	44.01		%

48

GAAP and Non-GAAP Performance Ratios

	Six Months Ended June 30,
(Dollars in thousands)	2022			2021
Core earnings (non-GAAP):
Net income	$	98,735		$	132,727
Plus/ (less) non-GAAP adjustments (net of tax):
Merger, acquisition and disposal expense	793			34
Amortization of intangible assets	2,211			2,500
Loss on FHLB redemption	—			6,792
Gain on disposal of assets	(12,417)			—
Investment securities gains	(34)			(96)
Core earnings (non-GAAP)	$	89,288		$	141,957
Core earnings per common share (non-GAAP):
Weighted-average common shares outstanding - diluted (GAAP)	45,223,086			47,469,470
Earnings per diluted common share (GAAP)	$	2.17		$	2.77
Core earnings per diluted common share (non-GAAP)	$	1.97		$	2.99
Core return on average assets (non-GAAP):
Average assets (GAAP)	$	12,785,040		$	12,797,068
Return on average assets (GAAP)	1.56		%	2.09		%
Core return on average assets (non-GAAP)	1.41		%	2.24		%
Core return on average tangible common equity (non-GAAP):
Average total stockholders' equity (GAAP)	$	1,487,170		$	1,500,642
Average goodwill	(369,098)			(370,223)
Average other intangible assets, net	(24,580)			(31,056)
Average tangible common equity (non-GAAP)	$	1,093,492		$	1,099,363
Return on average tangible common equity (non-GAAP)	18.21		%	24.35		%
Core return on average tangible common equity (non-GAAP)	16.47		%	26.04		%

Results of Operations

For the Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021

Net income for the three months ended June 30, 2022 was $54.8 million compared to net income of $57.3 million for the prior year quarter. The decline in earnings was the result of lower net interest income, the current quarter's provision for credit losses compared to the prior year's credit to the allowance, and an increase in non-interest expense, which were partially offset by the increase in non-interest income. The decline in net interest income was the product of lower PPP fees and interest partially offset by higher interest income from loan growth, and an increase in interest expense. Non-interest income increased as a result of the sale of the Company's insurance business, offsetting lower mortgage banking income. Non-interest expense increased primarily as a result of the transaction costs associated with the asset sale and increases in various categories of operational costs in the current quarter compared to the prior year quarter. Current quarter core earnings were $44.2 million ($0.98 per diluted common share), compared to $58.4 million ($1.23 per diluted common share) for the quarter ended June 30, 2021 and $45.1 million ($0.99 per diluted common share) for the quarter ended March 31, 2022. Pre-tax, pre-provision net income was $76.2 million for the three months ended June 30, 2022 compared to $71.3 million for the prior year quarter and $59.9 million for the first quarter of 2022.

Net Interest Income

Net interest income for the second quarter of 2022 decreased $2.1 million or 2% compared to the second quarter of 2021, due to the combined impact of the $0.9 million reduction in interest income and the increase of $1.2 million in interest expense. The decline in interest income was driven by a $12.0 million decline in interest and fees on PPP loans, which was substantially offset by higher interest income from the remaining categories of commercial loans and, to a lesser degree, an increase in investment securities income. The increase in interest expense was primarily the result of the interest expense associated with

49

issuance of subordinated debt late in the first quarter of the current year. The net interest margin for the second quarter of 2022 was 3.49% as compared to 3.63% for the same quarter of the prior year, as the yield on interest-earning assets declined 11 basis points and the rate paid on interest-bearing liabilities increased six basis points. Excluding the effects of amortization of the fair value marks derived from acquisitions and interest and fees from PPP loans, the net interest margin was 3.45% for the current quarter compared to 3.49% for second quarter of 2021.

Average interest-earning assets increased by 2% and average interest-bearing liabilities remained flat in the second quarter of 2022 compared to the second quarter of 2021. The composition of total average interest-bearing deposits shifted to savings and demand deposits accounts that provides the customers with greater liquidity in anticipation of rising rates. As a result, average time deposits declined 15% while average savings deposits and average demand deposits increased 17% and 6%, respectively. The percentage of average noninterest-bearing deposits to total average deposits increased to 37% in the current quarter compared to 35% in the second quarter of 2021. The primary cause of the increase in average noninterest-bearing deposits was due to the growth in core deposit relationships. At June 30, 2022 and 2021, average total loans comprised 85% and 86% of average interest-earning assets with an average yield of 4.12% and 4.22%, respectively. In addition, the average yield on investment securities decreased to 1.83% for the current quarter compared to 1.87% for the prior year quarter. These portfolio yield movements resulted in the decline in the overall average yield on interest-earning assets to 3.75% at June 30, 2022 from 3.86% at June 30, 2021. The average rate paid on average interest-bearing liabilities grew by six basis points, as the average rate paid increased from 0.37% for the second quarter of 2021 to 0.43% for the second quarter of 2022 driven by the increase in the average rate paid on borrowings, which increased 47 basis points compared to the average rate paid on interest-bearing deposits, which remained flat at 22 basis points for the comparative quarters.

50

Consolidated Average Balances, Yields and Rates
	Three Months Ended June 30,
	2022						2021
(Dollars in thousands and tax-equivalent)	Average Balances		Interest (1)		Annualized Average Yield/Rate		Average Balances		Interest (1)		Annualized Average Yield/Rate
Assets:
Commercial investor real estate loans	$	4,512,937	$	45,148	4.01	%	$	3,675,119	$	38,411	4.19	%
Commercial owner-occupied real estate loans	1,727,325		19,410		4.51		1,663,543		19,360		4.67
Commercial AD&C loans	1,096,369		11,727		4.29		1,089,287		10,819		3.98
Commercial business loans	1,334,350		15,820		4.76		2,225,885		25,248		4.55
Total commercial loans	8,670,981		92,105		4.26		8,653,834		93,838		4.35
Residential mortgage loans	1,070,836		8,878		3.32		994,899		8,634		3.47
Residential construction loans	221,031		1,710		3.10		176,135		1,562		3.56
Consumer loans	421,022		3,992		3.80		468,686		4,183		3.58
Total residential and consumer loans	1,712,889		14,580		3.41		1,639,720		14,379		3.51
Total loans (2)	10,383,870		106,685		4.12		10,293,554		108,217		4.22
Loans held for sale	12,744		145		4.56		66,958		549		3.28
Taxable securities	1,195,129		4,630		1.55		1,052,229		4,373		1.66
Tax-advantaged securities	491,052		3,082		2.51		430,676		2,567		2.38
Total investment securities (3)	1,686,181		7,712		1.83		1,482,905		6,940		1.87
Interest-bearing deposits with banks	200,560		358		0.72		193,749		47		0.10
Federal funds sold	479		1		0.81		535		—		0.10
Total interest-earning assets	12,283,834		114,901		3.75		12,037,701		115,753		3.86
Less: allowance for credit losses	(112,656)						(130,734)
Cash and due from banks	84,931						97,813
Premises and equipment, net	62,422						55,718
Other assets	673,161						737,857
Total assets	$	12,991,692					$	12,798,355
Liabilities and Stockholders' Equity:
Interest-bearing demand deposits	$	1,488,034	$	414	0.11	%	$	1,400,661	$	226	0.06	%
Regular savings deposits	559,906		22		0.02		476,999		66		0.06
Money market savings deposits	3,376,742		1,497		0.18		3,364,348		1,254		0.15
Time deposits	1,402,777		1,862		0.53		1,658,203		2,305		0.56
Total interest-bearing deposits	6,827,459		3,795		0.22		6,900,211		3,851		0.22
Federal funds purchased	53,055		166		1.26		19,506		3		0.06
Repurchase agreements	122,728		35		0.11		136,286		40		0.12
Advances from FHLB	3,809		17		1.74		73,626		373		2.03
Subordinated debentures	369,994		3,946		4.27		227,027		2,510		4.42
Total borrowings	549,586		4,164		3.04		456,445		2,926		2.57
Total interest-bearing liabilities	7,377,045		7,959		0.43		7,356,656		6,777		0.37
Noninterest-bearing demand deposits	4,001,762						3,763,135
Other liabilities	144,849						154,689
Stockholders' equity	1,468,036						1,523,875
Total liabilities and stockholders' equity	$	12,991,692					$	12,798,355
Tax-equivalent net interest income and spread			$	106,942	3.32	%			$	108,976	3.49	%
Less: tax-equivalent adjustment			992						930
Net interest income			$	105,950					$	108,046
Interest income/earning assets					3.75	%					3.86	%
Interest expense/earning assets					0.26						0.23
Net interest margin					3.49	%					3.63	%

(1)Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.64% and 25.50% for 2022 and 2021, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.0 million and $0.9 million in 2022 and 2021, respectively.

(2)Non-accrual loans are included in the average balances.

(3)Investments available-for-sale are presented at amortized cost.

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Interest Income

Excluding interest and fees associated with the PPP loan program, the Company's total tax-equivalent interest income increased 11% for the second quarter of 2022 compared to the prior year quarter. Interest and fees from the PPP loan program amounted to $1.3 million in the current quarter compared to $13.2 million in the prior year quarter. Average interest-earning assets rose 2% over the prior year quarter as average total loans grew 1% and average investment securities grew 14%. Excluding average PPP loan balances, average total loans grew 13% over the previous twelve months. Average total mortgage loans increased 10% as a result of the growth of the conventional 1-4 family mortgage loan portfolio in addition to the residential construction portfolio over the past twelve months. Average consumer loans, principally home equity loans and lines, declined 10% as a result of refinancing activity during the year.

The average yield on interest-earning assets declined to 3.75% for the current quarter compared to 3.86% for the same period of the prior year. Average yields on loans and investment securities for the current quarter decreased by 10 and four basis points, respectively, compared to the prior year quarter, a reflection of the general market interest rates during the majority of the previous twelve months. The decrease in the yield on investments was driven primarily by the decrease in yields on taxable investments during the period. Excluding PPP interest and fees and the amortization of fair value marks, the yield on interest-earning assets would have been 3.73% as compared to 3.78% in the prior year quarter.

Interest Expense

Interest expense increased 17% in the second quarter of 2022 compared to the second quarter of 2021. The increase from period to period was driven by the increase in borrowing costs as a result of the issuance of $200 million of subordinated debt late in the first quarter of 2022. The impact of this resulted in the average rate on interest-bearing liabilities for the current quarter rising to 0.43% from 0.37% as compared to the prior year quarter. The offsetting impact of increasing market rates and the favorable amortization of fair value marks on time deposits resulted in the average rate paid on interest-bearing deposits for the current quarter compared to the same period of the prior year remaining at 0.22%. During this period, the composition of total average interest-bearing deposits shifted from time deposits to savings and demand deposits accounts as consumers seek greater liquidity in anticipation of rising rates. For the comparative period, average time deposits declined 15% while average savings deposits and average demand deposits increased 17% and 6%, respectively. Amortization of fair value marks on time deposits resulted in a reduction of the average rate paid on total average deposits of three basis points for the current quarter and seven basis points for last year's second quarter. Excluding the amortization of those fair value marks, the average rate paid on interest-bearing liabilities would have been 0.46% for the current quarter compared to 0.43% for the prior year quarter. The average rate paid was positively impacted by the growth in average noninterest-bearing deposits that increased to 37% of average deposits in the current quarter compared to 35% in the prior year’s second quarter. The primary cause of the increase in average noninterest-bearing deposits was due to the growth in core deposit relationships.

Non-interest Income

Non-interest income amounts and trends are presented in the following table for the periods indicated:

	Three Months Ended June 30,				2022/2021		2022/2021
(Dollars in thousands)	2022		2021		$ Change		% Change
Securities gains	$	38	$	71	$	(33)	(46.5)	%
Gain on disposal of assets	16,699		—		16,699		N/M
Service charges on deposit accounts	2,467		1,976		491		24.8
Mortgage banking activities	1,483		5,776		(4,293)		(74.3)
Wealth management income	9,098		9,121		(23)		(0.3)
Insurance agency commissions	812		1,247		(435)		(34.9)
Income from bank owned life insurance	703		705		(2)		(0.3)
Bank card fees	1,810		1,785		25		1.4
Other income	2,135		5,578		(3,443)		(61.7)
Total non-interest income	$	35,245	$	26,259	$	8,986	34.2

Total non-interest income increased $9.0 million or 34% for the second quarter of 2022, compared to the prior year quarter as a direct result of the gain on the sale of the Company's insurance business. Excluding the disposal gain, non-interest income declined 29% compared to the prior year quarter. The gain was partially offset by a decline in income from mortgage banking activities and the decline in other non-interest income compared to the same quarter of the prior year. Wealth management income remained stable and service charges on deposit accounts grew. Other non-interest income declined from the prior year quarter, which included the full payoff of a purchased credit deteriorated loan and activity-based vendor incentives.

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Further detail by type of non-interest income follows:

•Service charges on deposit accounts increased 25% in the second quarter of 2022, compared to the second quarter of 2021, reflecting the impact of an increase in the current year's service charges on commercial demand deposit accounts and returned check transaction volume.

•Income from mortgage banking activities decreased by $4.3 million or 74% in the second quarter of 2022 as compared to the second quarter of 2021, reflecting the impact of reduced origination volume, the result of increasing mortgage lending rates during the comparative period.

•Wealth management income remained stable for the second quarter of 2022, as compared to the second quarter of 2021, due to the due to market volatility during the current quarter compared to the prior year quarter. Overall total assets under management decreased to $5.2 billion at June 30, 2022 compared to $5.7 billion at June 30, 2021.

•Income from bank owned life insurance was unchanged for the second quarter of 2022, compared to the second quarter of 2021.

•Bank card income increased 1% in the second quarter of 2022, compared to the second quarter of 2021, due to a rise in transaction income.

•Other income decreased $3.4 million or 62% in the second quarter of 2022, compared to the second quarter of 2021 which included the full payoff of a purchased credit deteriorated loan and activity-based vendor incentives.

Non-interest Expense

Non-interest expense amounts and trends are presented in the following table for the periods indicated:

	Three Months Ended June 30,				2022/2021		2022/2021
(Dollars in thousands)	2022		2021		$ Change		% Change
Salaries and employee benefits	$	39,550	$	38,990	$	560	1.4	%
Occupancy expense of premises	4,734		5,497		(763)		(13.9)
Equipment expense	3,559		3,020		539		17.8
Marketing	1,280		1,052		228		21.7
Outside data services	2,564		2,260		304		13.5
FDIC insurance	1,078		1,450		(372)		(25.7)
Amortization of intangible assets	1,466		1,659		(193)		(11.6)
Merger, acquisition and disposal expense	1,067		—		1,067		N/M
Professional fees and services	2,372		3,165		(793)		(25.1)
Other expenses	7,321		5,882		1,439		24.5
Total non-interest expense	$	64,991	$	62,975	$	2,016	3.2

Total non-interest expense increased $2.0 million or 3% for the second quarter of 2022, compared to the prior year quarter. The majority of the increase was the result of merger, acquisition and disposal expense associated with the sale of the Company's insurance business during the quarter. Other expenses increased as a result of the combination of the provision for lines of credit, franchise taxes and other operating costs. The remaining categories of non-interest expense experienced modest increases or decreases with professional fees declining during the current quarter 25% compared to the prior year quarter as a result of lower consulting fees. Further detail of significant changes in the levels of non-interest expense by category follows:

•Salaries and employee benefits, the largest component of non-interest expenses, increased 1% in the second quarter of 2022 compared to the same period of the prior year. While the compensation component increased 1%, benefit cost, driven by stock compensation costs from plan changes, increased 2%.

•Occupancy and equipment expenses for the quarter decreased a combined 3% compared to the prior year quarter as a result of lower rental expense.

•Marketing expense increased 22% compared to the prior year as a result of increased advertising initiatives.

•FDIC insurance expense declined 26% as a result of the reduction in risk factors applied by the regulatory agency in the determination of the Company's premium.

•Professional fees and services decreased 25% from the prior year quarter due primarily to consulting fees associated with specific projects and initiatives.

•Amortization of intangible assets decreased primarily as a result of the decline in the amortization expense for the core deposit intangible asset recognized from previous acquisitions.

•Other non-interest expense increased 24% as a result of the combination of the provision for lines of credit, franchise taxes and other operating costs.

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Income Taxes

The Company had income tax expense of $18.4 million in the second quarter of 2022, compared to income tax expense of $18.3 million in the second quarter of 2021. The resulting effective tax rate was 25.1% for the second quarter of 2022 compared to an effective tax rate of 24.2% for the second quarter of 2021. The increase in the current year's effective tax rate is the result of pre-tax income containing a greater proportion of taxable income compared to the prior year period.

Non-GAAP Financial Measures

The GAAP efficiency ratio in the second quarter of 2022 decreased to 46.03% compared to 46.89% for the second quarter of 2021. The GAAP and non-GAAP efficiency ratios are reconciled and provided in the following table. The non-GAAP efficiency ratio was 49.79% in the second quarter of 2022 compared to 45.36% in the second quarter of 2021. The change in the current year’s non-GAAP efficiency ratio compared to the prior year was the result of the 7% decline in non-GAAP revenue coupled with the 2% growth in non-GAAP non-interest expense.

Pre-tax pre-provision net income increased 7% for the current quarter compared to the prior year quarter as a result of the impact of the $16.7 million gain from the sale of the Company's insurance business that more than offset the decline in net interest income and the increase in non-interest expense.

For the quarter ended June 30, 2022, core earnings were $44.2 million ($0.98 per diluted common share), compared to $58.4 million ($1.23 per diluted common share) for the quarter ended June 30, 2021. ROA was 1.69% for the three months ended June 30, 2022 compared to 1.79% for the prior year quarter. For the three months ended June 30, 2022, the non-GAAP core ROA was 1.37% compared to 1.83% for the prior year quarter. ROTCE was 20.42% for the quarter ended June 30, 2022 compared to 20.44% for the second quarter of 2021. The non-GAAP core ROTCE was 16.49% for the quarter ended June 30, 2022 compared to 20.87% for the prior year quarter.

54

GAAP and Non-GAAP Efficiency Ratios and Measures

	Three Months Ended June 30,
(Dollars in thousands)	2022			2021
Pre-tax pre-provision net income:
Net income	$	54,800		$	57,263
Plus/ (less) non-GAAP adjustments:
Income tax expense	18,358			18,271
Provision/ (credit) for credit losses	3,046			(4,204)
Pre-tax pre-provision net income	$	76,204		$	71,330
Efficiency ratio (GAAP):
Non-interest expense	$	64,991		$	62,975
Net interest income plus non-interest income	$	141,195		$	134,305
Efficiency ratio (GAAP)	46.03		%	46.89		%
Efficiency ratio (non-GAAP):
Non-interest expense	$	64,991		$	62,975
Less/ (plus) non-GAAP adjustments:
Amortization of intangible assets	1,466			1,659
Merger, acquisition and disposal expense	1,067			—
Non-interest expense - as adjusted	$	62,458		$	61,316
Net interest income plus non-interest income	$	141,195		$	134,305
Plus non-GAAP adjustment:
Tax-equivalent income	992			930
Less non-GAAP adjustment:
Securities gains	38			71
Gain on disposal of assets	16,699			—
Net interest income plus non-interest income - as adjusted	$	125,450		$	135,164
Efficiency ratio (non-GAAP)	49.79		%	45.36		%

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GAAP and Non-GAAP Performance Ratios

	Three Months Ended June 30,
(Dollars in thousands)	2022			2021
Core earnings (non-GAAP):
Net income (GAAP)	$	54,800		$	57,263
Plus/ (less) non-GAAP adjustments (net of tax):
Merger, acquisition and disposal expense	793			—
Amortization of intangible assets	1,090			1,236
Gain on disposal of assets	(12,417)			—
Investment securities gains	(28)			(53)
Core earnings (non-GAAP)	$	44,238		$	58,446
Core earnings per common share (non-GAAP):
Weighted-average common shares outstanding - diluted (GAAP)	45,111,693			47,523,198
Earnings per diluted common share (GAAP)	$	1.21		$	1.19
Core earnings per diluted common share (non-GAAP)	$	0.98		$	1.23
Core return on average assets (non-GAAP):
Average assets (GAAP)	$	12,991,692		$	12,798,355
Return on average assets (GAAP)	1.69		%	1.79		%
Core return on average assets (non-GAAP)	1.37		%	1.83		%
Core return on average tangible common equity (non-GAAP):
Average total stockholders' equity (GAAP)	$	1,468,036		$	1,523,875
Average goodwill	(367,986)			(370,223)
Average other intangible assets, net	(23,801)			(30,224)
Average tangible common equity (non-GAAP)	$	1,076,249		$	1,123,428
Return on average tangible common equity (non-GAAP)	20.42		%	20.44		%
Core return on average tangible common equity (non-GAAP)	16.49		%	20.87		%

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FINANCIAL CONDITION

Total assets grew 6% to $13.3 billion at June 30, 2022, as compared to $12.6 billion at December 31, 2021. During this period, total loans increased by 8% to $10.8 billion at June 30, 2022, compared to $10.0 billion at December 31, 2021. Excluding PPP loans, total loans at June 30, 2022 increased $979.8 million or 10%, as compared to $9.8 billion at December 31, 2021. Deposit growth was 3% during 2022, as noninterest-bearing deposits experienced growth of 9% and interest-bearing deposits remained stable. The growth in loans resulted in the loan to deposit ratio increasing to 98.3% at June 30, 2022 from 93.8% at December 31, 2021.

Analysis of Loans

A comparison of the loan portfolio at the dates indicated is presented in the following table:

	June 30, 2022				December 31, 2021				Period-to-Period Change
(Dollars in thousands)	Amount		%		Amount		%		Amount		%
Commercial real estate:
Commercial investor real estate	$	4,761,658	44.2	%	$	4,141,346	41.5	%	$	620,312	15.0	%
Commercial owner-occupied real estate	1,767,326		16.4		1,690,881		17.0		76,445		4.5
Commercial AD&C	1,094,528		10.1		1,088,094		10.9		6,434		0.6
Commercial business	1,353,380		12.5		1,481,834		14.9		(128,454)		(8.7)
Total commercial loans	8,976,892		83.2		8,402,155		84.3		574,737		6.8
Residential real estate:
Residential mortgage	1,147,577		10.6		937,570		9.4		210,007		22.4
Residential construction	235,486		2.2		197,652		2.0		37,834		19.1
Consumer	426,335		4.0		429,714		4.3		(3,379)		(0.8)
Total residential and consumer loans	1,809,398		16.8		1,564,936		15.7		244,462		15.6
Total loans	$	10,786,290	100.0	%	$	9,967,091	100.0	%	$	819,199	8.2

Total commercial loans, excluding PPP loans, grew by $735 million or 9% since December 31, 2021. During this period, the Company generated commercial gross loan production of $2.0 billion, of which $1.4 billion was funded, offsetting $614 million in commercial loan run-off. During the first six months of 2022, the funded commercial loan production increased 71% compared to $790.2 million for the same period of the prior year. The growth in the commercial portfolio, excluding PPP loans, occurred in all commercial portfolios led by the $620 million or 15% growth in the investor owned commercial portfolio. Excluding PPP loans, commercial business loans increased 2%. The residential mortgage loan portfolio grew 22% as a greater number of conventional 1-4 family mortgages were retained to offset the run-off that occurred in the prior year. Consumer loans remained relatively unchanged from year-end 2021.

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Analysis of Investment Securities

The composition of investment securities at the periods indicated is presented in the following table:

	June 30, 2022				December 31, 2021				Period-to-Period Change
(Dollars in thousands)	Amount		%		Amount		%		Amount		%
Available-for-sale debt securities:
U.S. treasuries and government agencies	$	101,410	6.4	%	$	68,539	4.5	%	$	32,871	48.0	%
State and municipal	299,222		18.8		326,402		21.7		(27,180)		(8.3)
Mortgage-backed and asset-backed	868,191		54.4		1,070,955		71.1		(202,764)		(18.9)
Total available-for-sale debt securities	1,268,823		79.6		1,465,896		97.3		(197,073)		(13.4)
Held-to-maturity debt securities:
Mortgage-backed and asset-backed	274,337		17.2		—		—		274,337		N/M
Total held-to-maturity debt securities	274,337		17.2		—		—		274,337		N/M
Other investments:
Federal Reserve Bank stock	38,731		2.4		34,097		2.3		4,634		13.6
Federal Home Loan Bank of Atlanta stock	12,856		0.8		6,392		0.4		6,464		101.1
Other	677		—		677		—		—		—
Total other investments	52,264		3.2		41,166		2.7		11,098		27.0
Total securities	$	1,595,424	100.0	%	$	1,507,062	100.0	%	$	88,362	5.9

The investment portfolio consists primarily of U.S. Treasuries, U.S. Agency securities, U.S. Agency mortgage-backed securities, U.S. Agency collateralized mortgage obligations, asset-backed securities and state and municipal securities. The portfolio is monitored on a continuing basis with consideration given to interest rate trends and the structure of the yield curve and with a frequent assessment of economic projections and analysis. The overall distribution of the portfolio between investment types has remained relatively stable during the first six months of 2022. During the quarter ended March 31, 2022, the Company transferred certain debt securities from available-for-sale to held-to-maturity. The total amortized cost of debt securities transferred was $305.6 million with the associated fair value of $289.4 million and unrealized losses of $16.2 million at the date of transfer. The transfer occurred to lessen the impact on the Company's tangible common equity in contemplation of anticipated future increases in general market interest rates. At June 30, 2022, 99% of the investment portfolio was invested in Aaa/AAA or Aa/AA-rated securities. The duration of the portfolio is monitored to ensure the adequacy and ability to meet liquidity demands. The duration of the portfolio increased to 5.2 years at June 30, 2022 compared to 4.3 years at December 31, 2021 as a result of the recent increase in market interest rates. The portfolio possesses low credit risk and provides a source of liquidity necessary to meet loan and operational demands.

Other Earning Assets

Residential mortgage loans held for sale decreased to $23.6 million at June 30, 2022, compared to $39.4 million at December 31, 2021, as a result of a decrease in origination volume during the period. The Company continues to sell a portion of its mortgage loan production in the secondary market. The aggregate of interest-bearing deposits with banks and federal funds sold decreased by $217.3 million at June 30, 2022 compared to December 31, 2021, as a result of providing a source of funding for loan growth during the period.

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Deposits

The composition of deposits for the periods indicated is presented in the following table:

	June 30, 2022				December 31, 2021				Period-to-Period Change
(Dollars in thousands)	Amount		%		Amount		%		Amount		%
Noninterest-bearing deposits	$	4,129,440	37.6	%	$	3,779,630	35.6	%	$	349,810	9.3	%
Interest-bearing deposits:
Demand	1,590,484		14.5		1,604,714		15.1		(14,230)		(0.9)
Money market savings	3,185,150		29.0		3,415,663		32.1		(230,513)		(6.7)
Regular savings	560,324		5.1		533,862		5.0		26,462		5.0
Time deposits of less than $250,000	1,168,317		10.7		910,464		8.6		257,853		28.3
Time deposits of $250,000 or more	335,746		3.1		380,398		3.6		(44,652)		(11.7)
Total interest-bearing deposits	6,840,021		62.4		6,845,101		64.4		(5,080)		(0.1)
Total deposits	$	10,969,461	100.0	%	$	10,624,731	100.0	%	$	344,730	3.2

Deposits and Borrowings

Total deposits increased by 3% to $11.0 billion at June 30, 2022 from $10.6 billion at December 31, 2021. This growth was essentially the result of non-interest-bearing deposits which grew 9% while interest-bearing deposits remained stable. At June 30, 2022, interest-bearing deposits represented 62% of deposits with the remaining 38% in noninterest-bearing balances, compared to 64% and 36%, respectively, at December 31, 2021. The mix in interest-bearing deposits shifted during the period as the decline in money market deposits was effectively offset by growth in the remaining interest-bearing deposit categories. Growth of time deposits from December 31, 2021 through June 30, 2022 was driven by a $369.8 million increase in brokered time deposits while core time deposits declined $156.6 million, a result of rate sensitive attrition precipitated by customers seeking liquidity in anticipation rising interest rates on deposit accounts.

Capital Management

Management monitors historical and projected earnings, dividends, and asset growth, as well as risks associated with the various types of on and off-balance sheet assets and liabilities, in order to determine appropriate capital levels. Total stockholders' equity remained at $1.5 billion at June 30, 2022 compared to at December 31, 2021. During this period, the growth in retained earnings from net income was more than offset by the combination of the quarterly dividend distribution, the $88.9 million increase in the accumulated other comprehensive loss during the period resultant of the impact of increased market interest rates on the available-for-sale securities portfolio at June 30, 2022, and the $25.0 million in repurchased common stock. The ratio of average equity to average assets was 11.63% for the six months ended June 30, 2022, as compared to 11.73% for the six months ended June 30, 2021.

Risk-Based Capital Ratios

Bank holding companies and banks are required to maintain capital ratios in accordance with guidelines adopted by the federal bank regulators. These guidelines are commonly known as risk-based capital guidelines. The actual regulatory ratios and required ratios for capital adequacy are summarized for the Company in the following table.

	Ratios at		Minimum Regulatory Requirements
	June 30, 2022	December 31, 2021
Tier 1 leverage	9.53%	9.26%	4.00%
Common equity tier 1 capital to risk-weighted assets	11.58%	11.91%	4.50%
Tier 1 capital to risk-weighted assets	11.58%	11.91%	6.00%
Total capital to risk-weighted assets	16.07%	14.59%	8.00%

As of June 30, 2022, the most recent notification from the Bank’s primary regulator categorized the Bank as a "well-capitalized" institution under the prompt corrective action rules of the Federal Deposit Insurance Act. Designation as a well-capitalized institution under these regulations is not a recommendation or endorsement of the Company or the Bank by federal bank regulators.

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The minimum capital level requirements applicable to the Company and the Bank are: (1) a common equity Tier 1 capital ratio of 4.5%; (2) a Tier 1 capital ratio of 6%; (3) a total capital ratio of 8%; and (4) a Tier 1 leverage ratio of 4%. The rules also establish a “capital conservation buffer” of 2.5% above the regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital. An institution would be subject to limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses to executive officers if its capital level falls below the buffer amount. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.

The increase in the Company's total capital ratio at June 30, 2022 from December 31, 2021 was driven primarily by the issuance of $200 million in Tier 2 qualifying subordinated notes during March 2022. This debt issuance provided increased capacity for greater real estate lending and participation in the Company's stock repurchase program. The decline in the Tier 1 ratios reflects the impact of the stock repurchase program that was initiated in the second quarter of the current year. The increase in the leverage ratio was the result of Tier 1 capital growing at a faster rate than the average assets applied in the calculation. During 2020, the Company elected to apply the provisions of the CECL deferral transition in the determination of its risk-based capital ratios. At June 30, 2022, the impact of the application of this deferral transition provided an additional $9.8 million in Tier 1 capital and resulted in raising the common equity Tier 1 ratio by 10 basis points.

Tangible Common Equity

Tangible common equity, tangible assets, and tangible book value per share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity and tangible assets exclude the balances of goodwill and other intangible assets. Management believes that this non-GAAP financial measure provides information to investors that may be useful in understanding our financial condition. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies.

Tangible common equity remained at $1.1 billion for June 30, 2022 as compared to December 31, 2021. At June 30, 2022, the ratio of tangible common equity to tangible assets has decreased to 8.45% compared to 9.21% at December 31, 2021. The decrease in the tangible common equity ratio was caused by a combination of the 3% decline in tangible common equity during the first six months of 2022, the result of the $88.9 million increase in the accumulated other comprehensive loss and the 6% growth in tangible assets.

A reconciliation of total stockholders’ equity to tangible common equity and total assets to tangible assets along with tangible book value per share, book value per share and related non-GAAP tangible common equity ratio are provided in the following table:

Tangible Common Equity Ratio – Non-GAAP

(Dollars in thousands, except per share data)	June 30, 2022			December 31, 2021
Tangible common equity ratio:
Total stockholders' equity	$	1,477,169		$	1,519,679
Goodwill	(363,436)			(370,223)
Other intangible assets, net	(22,694)			(25,920)
Tangible common equity	$	1,091,039		$	1,123,536
Total assets	$	13,303,009		$	12,590,726
Goodwill	(363,436)			(370,223)
Other intangible assets, net	(22,694)			(25,920)
Tangible assets	$	12,916,879		$	12,194,583
Outstanding common shares	44,629,697			45,118,930
Tangible common equity ratio	8.45		%	9.21		%
Tangible book value per common share	$	24.45		$	24.90
Book value per common share	$	33.10		$	33.68

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Credit Risk

The fundamental lending business of the Company is based on understanding, measuring and controlling the credit risk inherent in the loan portfolio. The Company’s loan portfolio is subject to varying degrees of credit risk. Credit risk entails both general risks, which are inherent in the process of lending, and risk specific to individual borrowers. The Company’s credit risk is mitigated through portfolio diversification, which limits exposure to any single customer, industry or collateral type. Typically, each consumer and residential lending product has a generally predictable level of credit losses based on historical loss experience. Residential mortgage and home equity loans and lines generally have the lowest credit loss experience. Loans secured by personal property, such as auto loans, generally experience medium credit losses. Unsecured loan products, such as personal revolving credit, have the highest credit loss experience and, for that reason, the Company has chosen not to engage in a significant amount of this type of lending. Credit risk in commercial lending can vary significantly, as losses as a percentage of outstanding loans can shift widely during economic cycles and are particularly sensitive to changing economic conditions. Generally, improving economic conditions result in improved operating results on the part of commercial customers, enhancing their ability to meet their particular debt service requirements. Improvements, if any, in operating cash flows can be offset by the impact of rising interest rates that may occur during improved economic times. Inconsistent economic conditions may have an adverse effect on the operating results of commercial customers, reducing their ability to meet debt service obligations.

To control and manage credit risk, management has a credit process in place to reasonably ensure that credit standards are maintained along with an in-house loan administration, accompanied by various oversight and review procedures. The primary purpose of loan underwriting is the evaluation of specific lending risks and involves the analysis of the borrower’s ability to service the debt as well as the assessment of the value of the underlying collateral. Oversight and review procedures include monitoring the credit quality of the portfolio, providing early identification of potential problem credits and proactive management of problem credits.

The Company recognizes a lending relationship as non-performing when either the loan becomes 90 days delinquent or as a result of factors, such as bankruptcy, interruption of cash flows, etc., considered at the monthly credit committee meeting. Classification as a non-accrual loan is based on a determination that the Company may not collect all principal and/or interest payments according to contractual terms. When a loan is placed on non-accrual status all accrued but unpaid interest is reversed from interest income. Payments received on non-accrual loans are first applied to the remaining principal balance of the loans. Additional recoveries are credited to the allowance up to the amount of all previous charge-offs.

The level of non-performing loans to total loans decreased to 0.40% at June 30, 2022 compared to 0.49% at December 31, 2021. Non-performing loans were $43.5 million at June 30, 2022 compared to $48.8 million at December 31, 2021. Loans placed on non-accrual during the current quarter amounted to $0.9 million compared to $1.5 million for the prior year quarter and $1.5 million for the first quarter of 2022. Loans greater than 90 days or more were $0.4 million compared to $0.6 million at December 31, 2021.

While the diversification of the lending portfolio among different commercial, residential and consumer product lines along with different market conditions of the D.C. suburbs, Northern Virginia and Baltimore metropolitan area has mitigated some of the risks in the portfolio, local economic conditions and levels of non-performing loans may continue to be influenced by the conditions being experienced in various business sectors of the economy on both a regional and national level.

The Company’s methodology for evaluating whether a loan shall be placed on non-accrual status begins with risk-rating credits on an individual basis and includes consideration of the borrower’s overall financial condition, payment record and available cash resources that may include the sufficiency of collateral value and, in a select few cases, verifiable support from financial guarantors. In measuring a specific allowance, the Company looks primarily to the value of the collateral (adjusted for estimated costs to sell) or projected cash flows generated by the operation of the collateral as the primary sources of repayment of the loan. The Company may consider the existence of guarantees and the financial strength and wherewithal of the guarantors involved in any loan relationship. Guarantees may be considered as a source of repayment based on the guarantor’s financial condition and payment capacity. Accordingly, absent a verifiable payment capacity, a guarantee alone would not be sufficient to avoid classifying the loan as non-accrual.

Management has established a credit process that dictates that structured procedures be performed to monitor these loans between the receipt of an original appraisal and the updated appraisal. These procedures include the following:

•An internal evaluation is updated periodically to include borrower financial statements and/or cash flow projections.

•The borrower may be contacted for a meeting to discuss an updated or revised action plan which may include a request for additional collateral.

•Re-verification of the documentation supporting the Company’s position with respect to the collateral securing the loan.

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•At the monthly credit committee meeting the loan may be downgraded and a specific allowance may be decided upon in advance of the receipt of the appraisal.

•Upon receipt of the updated appraisal (or based on an updated internal financial evaluation) the loan balance is compared to the appraisal and a specific allowance is decided upon for the particular loan, typically for the amount of the difference between the appraised value (adjusted for estimated costs to sell) and the loan balance.

•Evaluation of whether adverse changes in the value of the collateral are expected over the remainder of the loan’s expected life.

•The Company will individually assess the allowance for credit losses based on the fair value of the collateral for any collateral dependent loans where the borrower is experiencing financial difficulty or when the Company determines that the foreclosure is probable. The Company will charge-off the excess of the loan amount over the fair value of the collateral adjusted for the estimated selling costs.

Loans considered to be troubled debt restructurings (“TDRs”) are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured collateral-dependent loans are individually assessed for allowance for credit losses and may either be in accruing or non-accruing status. Non-accruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category if the borrower is no longer experiencing financial difficulty, a re-underwriting event took place and the revised loan terms of the subsequent restructuring agreement are considered to be consistent with terms that can be obtained in the credit market for loans with comparable risk.

The Company may extend the maturity of a performing or current loan that may have some inherent weakness associated with the loan. However, the Company generally follows a policy of not extending maturities on non-performing loans under existing terms. Maturity date extensions only occur under revised terms that clearly place the Company in a position to increase the likelihood of or assure full collection of the loan under the contractual terms and/or terms at the time of the extension that may eliminate or mitigate the inherent weakness in the loan. These terms may incorporate, but are not limited to additional assignment of collateral, significant balance curtailments/liquidations and assignments of additional project cash flows. Guarantees may be a consideration in the extension of loan maturities. As a general matter, the Company does not view the extension of a loan to be a satisfactory approach to resolving non-performing credits. On an exception basis, certain performing loans that have displayed some inherent weakness in the underlying collateral values, an inability to comply with certain loan covenants which are not affecting the performance of the credit or other identified weakness may be extended.

The Company typically sells the majority of its fixed-rate residential mortgage originations in the secondary mortgage market. Concurrent with such sales, the Company is required to make customary representations and warranties to the purchasers about the mortgage loans and the manner in which they were originated. The related sale agreements grant the purchasers recourse back to the Company, which could require the Company to repurchase loans or to share in any losses incurred by the purchasers. This recourse exposure typically extends for a period of six to twelve months after the sale of the loan although the time frame for repurchase requests can extend for an indefinite period. Such transactions could be due to a number of causes including borrower fraud or early payment default. The Company has seen a very limited number of repurchase and indemnity demands from purchasers for such events and routinely monitors its exposure in this regard. The Company maintains a liability of $0.5 million for probable losses due to repurchases.

The Company periodically engages in whole loan sale transactions of its residential mortgage loans as a part its interest rate risk management strategy. There were no whole loan sales of mortgage loans from the portfolio during the current year.

Mortgage loan servicing rights are accounted for at amortized cost and are monitored for impairment on an ongoing basis. The amortized cost of the Company's mortgage loan servicing rights remained at $0.4 million at June 30, 2022 compared to December 31, 2021.

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Analysis of Credit Risk

The following table presents information with respect to non-performing assets and 90-day delinquencies as of the periods indicated:

(Dollars in thousands)	June 30, 2022			December 31, 2021
Non-accrual loans:
Commercial real estate:
Commercial investor real estate	$	11,245		$	12,489
Commercial owner-occupied real estate	7,869			9,306
Commercial AD&C	1,353			650
Commercial business	7,542			8,420
Residential real estate:
Residential mortgage	7,305			8,441
Residential construction	1			55
Consumer	5,692			6,725
Total non-accrual loans	41,007			46,086
Loans 90 days past due:
Commercial real estate:
Commercial investor real estate	—			—
Commercial owner-occupied real estate	—			—
Commercial AD&C	—			—
Commercial business	—			—
Residential real estate:
Residential mortgage	353			557
Residential construction	—			—
Consumer	—			—
Total 90 days past due loans	353			557
Restructured loans (accruing)	2,119			2,167
Total non-performing loans	43,479			48,810
Other real estate owned, net	739			1,034
Total non-performing assets	$	44,218		$	49,844
Non-accrual loans to total loans	0.38		%	0.46		%
Non-performing loans to total loans	0.40		%	0.49		%
Non-performing assets to total assets	0.33		%	0.40		%
Allowance for credit losses to non-accrual loans	277.20		%	236.83		%
Allowance for credit losses to non-performing loans	261.44		%	223.61		%

Allowance for Credit Losses

The allowance for credit losses represents management’s estimate of the portion of the Company’s loans’ amortized cost basis not expected to be collected over the loans’ contractual life. As a part of the credit oversight and review process, the Company maintains an allowance for credit losses (the “allowance”). The following allowance section should be read in conjunction with “Allowance for Credit Losses” section in Note 1 – Significant Accounting Policies in the Notes to the Condensed Consolidated Financial Statements. The Company excludes accrued interest from the measurement of the allowance as the Company has a non-accrual policy to reverse any accrued, uncollected interest income when loans are placed on non-accrual status.

The appropriateness of the allowance is determined through ongoing evaluation of the credit portfolio, and involves consideration of a number of factors. Determination of the allowance is inherently subjective and requires significant estimates, including consideration of current conditions and future economic forecasts, which may be susceptible to significant volatility. The forecasted economic metrics with the greatest impact were the expected future unemployment rate, the expected level of business bankruptcies and, to a lesser degree, the house price index. In addition to these metrics, management has included the potential impact of recent recessionary pressures among the qualitative factors applied in the determination of the allowance. Expected losses can vary significantly from the amounts actually observed. Loans deemed uncollectible are charged off against

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the allowance, while recoveries are credited to the allowance when received. Management adjusts the level of the allowance through the provision for credit losses in the Condensed Consolidated Statement of Income.

The provision for credit losses for the six months ended June 30, 2022 was $4.7 million as compared to a credit of $38.9 million for the same period in 2021. For the six months ended June 30, 2022, the provision for credit losses, compared to the prior year's credit to the provision, reflects the impact of the growth of the loan portfolio and the consideration of a potential recession, both of which exceeded the benefit to the provision derived from continued improvement in forecasted macroeconomic metrics. The credit to the provision for credit losses for the same period in 2021 predominantly reflected the results of the impact of the improved economic forecasts during the period.

At June 30, 2022, the allowance for credit losses was $113.7 million as compared to $109.1 million at December 31, 2021. The allowance for credit losses as a percent of total loans was 1.05% and 1.10% at June 30, 2022 and December 31, 2021, respectively. The allowance for credit losses represented 261% of non-performing loans at June 30, 2022 as compared to 224% at December 31, 2021. The allowance attributable to the commercial portfolio represented 1.15% of total commercial loans while the portion attributable to total combined consumer and mortgage loans was 0.58%. With respect to the total commercial portion of the allowance, 22% of this portion is allocated to the commercial business loan portfolio, resulting in the ratio of the allowance for commercial business loans to total commercial business loans of 1.64%. The ratio of the allowance attributable to AD&C loans was 1.22% at the end of the current quarter, compared to 1.87% at December 31, 2021. This decline in the allowance ratio was predominantly the result of shorter weighted average remaining life of loans in this portfolio.

The current methodology for assessing the appropriate allowance includes: (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions over a reasonable and supportable forecast period and the Company’s prepayment and curtailment rates, (2) collective qualitative factors that consider concentrations of the loan portfolio, expected changes to the economic forecasts, large lending relationships, early delinquencies, and factors related to credit administration, including, among others, loan-to-value ratios, borrowers’ risk rating and credit score migrations, and (3) individual allowances on collateral-dependent loans where borrowers are experiencing financial difficulty or where the Company determined that foreclosure is probable. Under the current methodology, the impact of the utilization of the historical default and loss experience results in 46% of the total allowance being attributable to the historical performance of the portfolio while 54% of the allowance is attributable to the collective qualitative factors applied to determine the allowance.

The quantified collective portion of the allowance is determined by pooling loans into segments based on the similar risk characteristics of the underlying borrowers, in addition to consideration of collateral type, industry and business purpose of the loans. The Company selected two collective methodologies, the discounted cash flows and weighted average remaining life methodologies. Segments utilizing the discounted cash flow method are further sub-segmented based on the risk level (determined either by risk ratings or Beacon Scores). Collective calculation methodologies use the Company’s historical default and loss experience adjusted for future economic forecasts. The reasonable and supportable forecast period represents a two year economic outlook for the applicable economic variables. Following the end of the reasonable and supportable forecast period expected losses revert back to the historical mean over the next two years on a straight-line basis.

Economic variables which have the most significant impact on the allowance include:

•unemployment rate;

•number of business bankruptcies; and

•house price index.

The collective quantified component of the allowance is supplemented by a qualitative component to address various risk characteristics of the Company’s loan portfolio including:

•trends in early delinquencies;

•changes in the risk profile related to large loans in the portfolio;

•concentrations of loans to specific industry segments;

•expected changes in economic conditions;

•changes in the Company’s credit administration and loan portfolio management processes; and

•the quality of the Company’s credit risk identification processes.

The individual reserve assessment is applied to collateral dependent loans where borrowers are experiencing financial difficulty or when the Company determined that foreclosure is probable. The determination of the fair value of the collateral depends on whether a repayment of the loan is expected to be from the sale or the operation of the collateral. When repayment is expected from the operation of the collateral, the Company uses the present value of expected cash flows from the operation of the

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collateral as the fair value. When repayment of the loan is expected from the sale of the collateral the fair value of the collateral is based on an observable market price or the appraised value less estimated cost to sell. During the individual reserve assessment, management also considers the potential future changes in the value of the collateral over the remainder of the loan’s life. The balance of collateral-dependent loans individually assessed for the allowance was $30.5 million, with individual allowances of $6.2 million against those loans at June 30, 2022.

If an updated appraisal is received subsequent to the preliminary determination of an individual allowance or partial charge-off, and it is less than the initial appraisal used in the initial assessment, an additional individual allowance or charge-off is taken on the related credit. Partially charged-off loans are not written back up based on updated appraisals and always remain on non-accrual with any and all subsequent payments first applied to the remaining balance of the loan as principal reductions. No interest income is recognized on loans that have been partially charged-off.

A current appraisal on large loans is usually obtained if the appraisal on file is more than 12 months old and there has been a material change in market conditions, zoning, physical use or the adequacy of the collateral based on an internal evaluation. The Company’s policy is to strictly adhere to regulatory appraisal standards. If an appraisal is ordered, no more than a 30 day turnaround is requested from the appraiser, who is selected by Credit Administration from an approved appraiser list. After receipt of the updated appraisal, the assigned credit officer will recommend to the Chief Credit Officer whether an individual allowance or a charge-off should be taken. The Chief Credit Officer has the authority to approve an individual allowance or charge-off between monthly credit committee meetings to ensure that there are no significant time lapses during this process. The Company's borrowers are concentrated in nine counties in Maryland, three counties in Virginia and in Washington D.C. Excluding the PPP loans, commercial and residential mortgages, including home equity loans and lines, represented 87% of total loans at both June 30, 2022 and at December 31, 2021, respectively. Certain loan terms may create concentrations of credit risk and increase the Company’s exposure to loss. These include terms that permit the deferral of principal payments or payments that are smaller than normal interest accruals (negative amortization); loans with high loan-to-value ratios; loans, such as option adjustable-rate mortgages, that may expose the borrower to future increases in repayments that are in excess of increases that would result solely from increases in market interest rates; and interest-only loans. The Company does not make loans that provide for negative amortization or option adjustable-rate mortgages.

The following table presents an allocation of the allowance for credit losses by portfolio as of each period end. The allowance is allocated in the following table to various loan categories based on the methodology used to estimate credit losses; however, the allocation does not restrict the usage of the allowance for any specific loan category.

(In thousands)	June 30, 2022				December 31, 2021
Commercial real estate:	Amount		% of loans to total loans		Amount		% of loans to total loans
Commercial investor real estate	$	56,794	44.2	%	$	45,289	41.5	%
Commercial owner-occupied real estate	10,784		16.4		11,687		17.0
Commercial AD&C	13,383		10.1		20,322		10.9
Commercial business	22,238		12.5		23,170		14.9
Total commercial	103,199		83.2		100,468		84.3
Residential real estate:
Residential mortgage	7,254		10.6		5,384		9.4
Residential construction	1,141		2.2		1,048		2.0
Consumer	2,076		4.0		2,245		4.3
Total residential and consumer	10,471		16.8		8,677		15.7
Total allowance	$	113,670	100.0	%	$	109,145	100.0	%

65

Summary of Loan Credit Loss Experience

The following table presents the activity in the allowance for credit losses for the periods indicated:

	Six Months Ended			Year Ended
(Dollars in thousands)	June 30, 2022			December 31, 2021
Balance, January 1	$	109,145		$	165,367
Provision/ (credit) for credit losses	4,681			(45,556)
Loan charge-offs:
Commercial real estate:
Commercial investor real estate	—			(5,802)
Commercial owner-occupied real estate	—			(136)
Commercial AD&C	—			(2,007)
Commercial business	(507)			(4,069)
Residential real estate:
Residential mortgage	(131)			—
Residential construction	—			—
Consumer	(124)			(299)
Total charge-offs	(762)			(12,313)
Loan recoveries:
Commercial real estate:
Commercial investor real estate	319			285
Commercial owner-occupied real estate	12			—
Commercial AD&C	—			—
Commercial business	65			565
Residential real estate:
Residential mortgage	20			410
Residential construction	5			5
Consumer	185			382
Total recoveries	606			1,647
Net charge-offs	(156)			(10,666)
Balance, period end	$	113,670		$	109,145
Annualized net charge-offs to average loans	0.00		%	0.11		%
Allowance for credit losses to loans	1.05		%	1.10		%

 

Market Risk Management

The Company's net income is largely dependent on its net interest income. Net interest income is susceptible to interest rate risk to the extent that interest-bearing liabilities mature or re-price on a different basis than interest-earning assets. When interest-bearing liabilities mature or re-price more quickly than interest-earning assets in a given period, a significant increase in market rates of interest could adversely affect net interest income. Similarly, when interest-earning assets mature or re-price more quickly than interest-bearing liabilities, falling interest rates could result in a decrease in net interest income. Net interest income is also affected by changes in the portion of interest-earning assets that are funded by interest-bearing liabilities rather than by other sources of funds, such as noninterest-bearing deposits and stockholders' equity.

The Company’s interest rate risk management goals are (1) to increase net interest income at a growth rate consistent with the growth rate of total assets, and (2) to minimize fluctuations in net interest income as a percentage of interest-earning assets. Management attempts to achieve these goals by balancing, within policy limits, the volume of floating-rate liabilities with a similar volume of floating-rate assets; by keeping the average maturity of fixed-rate asset and liability contracts reasonably matched; by maintaining a pool of administered core deposits; and by adjusting pricing rates to market conditions on a continuing basis.

The Company’s board of directors has established a comprehensive interest rate risk management policy, which is administered by management’s Asset Liability Management Committee (“ALCO”). The policy establishes limits on risk, which are quantitative measures of the percentage change in net interest income (a measure of net interest income or “NII” at risk) and the fair value of equity capital (a measure of economic value of equity or “EVE” at risk) resulting from a hypothetical change in U.S. Treasury interest rates for maturities from one day to thirty years. The Company measures the potential adverse impacts

66

that changing interest rates may have on its short-term earnings, long-term value, and liquidity by employing simulation analysis through the use of computer modeling. The simulation model captures optionality factors such as call features and interest rate caps and floors embedded in investment and loan portfolio contracts. As with any method of gauging interest rate risk, there are certain shortcomings inherent in the interest rate modeling methodology used by the Company. When interest rates change, actual movements in different categories of interest-earning assets and interest-bearing liabilities, loan prepayments, and withdrawals of time and other deposits, may deviate significantly from assumptions used in the model. As an example, certain types of money market deposit accounts are assumed to reprice at 40 to 100% of the interest rate change in each of the up rate shock scenarios even though this is not a contractual requirement. As a practical matter, management would likely lag the impact of any upward movement in market rates on these accounts as a mechanism to manage the Company's net interest margin. Finally, the methodology does not measure or reflect the impact that higher rates may have on adjustable-rate loan customers’ ability to service their debts, or the impact of rate changes on demand for loan and deposit products.

The Company prepares a current base case and multiple alternative simulations at least once per quarter and reports the analysis to the board of directors. In addition, more frequent forecasts are produced when interest rates are particularly uncertain or when other business conditions so dictate.

The statement of condition is subject to quarterly testing for eight alternative interest rate shock possibilities to indicate the inherent interest rate risk. Average interest rates are shocked by +/- 100, 200, 300, and 400 basis points (“bp”), although the Company may elect not to use particular scenarios that it determines are impractical in a current rate environment. It is management’s goal to structure the statement of condition so that net interest income at risk over a twelve-month period and the economic value of equity at risk do not exceed policy guidelines at the various interest rate shock levels.

The Company augments its quarterly interest rate shock analysis with alternative external interest rate scenarios on a monthly basis. These alternative interest rate scenarios may include non-parallel rate ramps and non-parallel yield curve twists. If a measure of risk produced by the alternative simulations of the entire statement of condition violates policy guidelines, ALCO is required to develop a plan to restore the measure of risk to a level that complies with policy limits within two quarters.

Measures of net interest income at risk produced by simulation analysis are indicators of an institution’s short-term performance in alternative rate environments. These measures are typically based upon a relatively brief period, usually one year. They do not necessarily indicate the long-term prospects or economic value of the institution.

Estimated Changes in Net Interest Income
Change in Interest Rates:	+ 400 bp	+ 300 bp	+ 200 bp	+ 100 bp	- 100 bp	- 200 bp	-300 bp	-400 bp
Policy Limit	23.50%	17.50%	15.00%	10.00%	10.00%	15.00%	17.50%	23.50%
June 30, 2022	2.91%	2.48%	1.98%	1.22%	-3.91%	N/A	N/A	N/A
December 31, 2021	8.61%	6.53%	4.80%	2.16%	N/A	N/A	N/A	N/A

As reflected in the table above, the measures of net interest income at risk at June 30, 2022 declined in every rising interest rate change scenario compared to December 31, 2021. As the table indicates, in each rising interest rate environment, net interest income sensitivity decreased compared to December 31, 2021. The change in the net interest income at risk is the result of a decrease in asset sensitivity due to the decrease in interest-bearing deposits with banks, recent loan growth at market rates and the increase in non-interest bearing deposits. The impact of those changes was further affected by the increase in short-term borrowings during the period. At June 30, 2022, all measures remained well within prescribed policy limits. The table also indicates that should the interest rate environment decline, net interest income would be reduced. This potential reduction in net interest income could occur because of the current low level of deposit rates and those rates being unable to reprice lower as current asset yields decline.

The measures of equity value at risk indicate the ongoing economic value of the Company by considering the effects of changes in interest rates on all of the Company’s cash flows, and by discounting the cash flows to estimate the present value of assets and liabilities. The difference between these discounted values of the assets and liabilities is the economic value of equity, which, in theory, approximates the fair value of the Company’s net assets.

Estimated Changes in Economic Value of Equity
Change in Interest Rates:	+ 400 bp	+ 300 bp	+ 200 bp	+ 100 bp	- 100 bp	- 200 bp	-300 bp	-400 bp
Policy Limit	35.00%	25.00%	20.00%	10.00%	10.00%	20.00%	25.00%	35.00%
June 30, 2022	(15.43%)	(11.65%)	(7.66%)	(3.70%)	2.58%	N/A	N/A	N/A
December 31, 2021	(10.29%)	(6.18%)	(2.16%)	0.05%	N/A	N/A	N/A	N/A

67

Overall, the measure of the economic value of equity ("EVE") at risk increased in all of the rising rate scenarios from December 31, 2021 to June 30, 2022. The increase in the risk associated with EVE during the period was primarily the result of reduced asset market values of loans and investments driven by the increase in the interest rate environment during period.

Liquidity Management

Liquidity is measured by a financial institution's ability to raise funds through loan repayments, maturing investments, deposit growth, borrowed funds, capital and the sale of highly marketable assets such as investment securities and residential mortgage loans. In assessing liquidity, management considers operating requirements, the seasonality of deposit flows, investment, loan and deposit maturities and calls, expected funding of loans and deposit withdrawals, and the market values of available-for-sale investments, so that sufficient funds are available on short notice to meet obligations as they arise and to ensure that the Company is able to pursue new business opportunities. The Company's liquidity position, considering both internal and external sources available, exceeded anticipated short-term and long-term needs at June 30, 2022.

Liquidity is measured using an approach designed to take into account core deposits, in addition to factors already discussed above. Management considers core deposits, defined to include all deposits other than brokered and outsourced deposits, to be a relatively stable funding source. Core deposits equaled 81% of total interest-earning assets at June 30, 2022. The Company’s growth and mortgage banking activities are also additional considerations when evaluating liquidity requirements. Also considered are changes in the liquidity of the investment portfolio due to fluctuations in interest rates. Under this approach, implemented by the Funding and Liquidity Subcommittee of ALCO under formal policy guidelines, the Company’s liquidity position is measured weekly, looking forward at thirty day intervals from thirty (30) to three hundred sixty (360) days. The measurement is based upon the projection of funds sold or purchased position, along with ratios and trends developed to measure dependence on purchased funds and core growth. At June 30, 2022, the Company’s liquidity and funds availability provides it with flexibility in funding loan demand and other liquidity demands.

The Company also has external sources of funds available that can be drawn upon when required. The main sources of external liquidity are available lines of credit with the FHLB and the Federal Reserve Bank. At June 30, 2022, the Company had the ability to pledge collateral at prevailing market rates under a line of credit with the FHLB of $3.9 billion. FHLB availability based on pledged collateral at June 30, 2022, amounted to $3.1 billion, with $175.0 million outstanding against it. The secured lines of credit at the Federal Reserve Bank and correspondent banks totaled $684.9 million, all of which was available for borrowing based on pledged collateral, with no borrowings against it as of June 30, 2022. In addition, the Company had unsecured lines of credit with correspondent banks of $1.3 billion with $75.0 million outstanding at June 30, 2022. Based upon its liquidity analysis, including external sources of liquidity available, management believes the liquidity position was appropriate at June 30, 2022.

The parent company (“Bancorp”) is a separate legal entity from the Bank and must provide for its own liquidity. In addition to its operating expenses, Bancorp is responsible for paying any dividends declared to its common shareholders and interest and principal on outstanding debt. Bancorp’s primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to Bancorp in any calendar year, without the receipt of prior approval from the Federal Reserve Bank, cannot exceed net income for that year to date period plus retained net income (as defined) for the preceding two calendar years. Based on this requirement, as of June 30, 2022, the Bank could have declared a dividend of up to $108.5 million to Bancorp. At June 30, 2022, Bancorp had liquid assets of $100.0 million.

Arrangements to fund credit products or guarantee financing take the form of loan commitments (including lines of credit on revolving credit structures) and letters of credit. Approvals for these arrangements are obtained in the same manner as loans. Generally, cash flows, collateral value and risk assessment are considered when determining the amount and structure of credit arrangements.

Commitments to extend credit in the form of consumer, commercial real estate and business at the dates indicated were as follows:

(In thousands)	June 30, 2022		December 31, 2021
Commercial real estate development and construction	$	690,429	$	621,725
Residential real estate-development and construction	821,951		885,806
Real estate-residential mortgage	36,783		54,072
Lines of credit, principally home equity and business lines	2,261,447		2,096,874
Standby letters of credit	77,094		70,642
Total commitments to extend credit and available credit lines	$	3,887,704	$	3,729,119

68

Commitments to extend credit are agreements to provide financing to a customer with the provision that there are no violations of any condition established in the agreement. Commitments generally have interest rates determined by current market rates, expiration dates or other termination clauses and may require payment of a fee. Lines of credit typically represent unused portions of lines of credit that were provided and remain available as long as customers comply with the requisite contractual conditions. Commitments to extend credit are evaluated, processed and/or renewed regularly on a case by case basis, as part of the credit management process. The total commitment amount or line of credit amounts do not necessarily represent future cash requirements, as it is highly unlikely that all customers would draw on their lines of credit in full at one time.

As of June 30, 2022, the total reserve for unfunded commitments was $0.3 million and is accounted for in other liabilities in the Condensed Consolidated Statements of Financial Condition. See Note 1 – Significant Accounting Policies in the Notes to the Condensed Consolidated Financial Statements for more information on the accounting policy for the allowance for unfunded commitments.

69

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

See “Financial Condition - Market Risk Management” in Management’s Discussion and Analysis of Financial Condition and Results of Operations, above, which is incorporated herein by reference.

Item 4. CONTROLS AND PROCEDURES

The Company’s management, under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated as of the last day of the period covered by this report, the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as defined in Rule 13a-15 under the Securities Exchange Act of 1934. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective. There were no changes in the Company’s internal controls over financial reporting (as defined in Rule 13a-15 under the Securities Act of 1934) during the three months ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

70

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

In the normal course of business, the Company becomes involved in litigation arising from the banking, financial and other activities it conducts. Management, after consultation with legal counsel, does not anticipate that the ultimate liability, if any, arising from these matters will have a material effect on the Company’s financial condition, operating results or liquidity.

Item 1A. Risk Factors

There have been no material changes in the risk factors as discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On March 30, 2022, the Company's board of directors authorized a stock repurchase plan that permits the repurchase of up to $50.0 million of the Company's common stock. The Company repurchased 625,710 shares of its common stock at an average price of $39.93 during the quarter ended June 30, 2022. Under the current authorization common stock with a total value of up to $25.0 million remains available to be repurchased.

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as a part of publicly announced plans or programs	Maximum value that may yet be purchased under the plans or programs
April 1, 2022 through April 30, 2022	—	—		—	$	50,000,000
May 1, 2022 through May 31, 2022	333,409	$	39.58	333,409	$	36,796,816
June 1, 2022 through June 30, 2022	292,301	$	40.34	292,301	$	25,000,028

Item 3. Defaults Upon Senior Securities – None

Item 4. Mine Safety Disclosures – Not applicable

Item 5. Other Information - None

Item 6. Exhibits

 

Exhibit 31(a)	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)
Exhibit 31(b)	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
Exhibit 32(a)	Certification of Chief Executive Officer pursuant to 18 U.S. Section 1350
Exhibit 32(b)	Certification of Chief Financial Officer pursuant to 18 U.S. Section 1350
Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

71

Signatures

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Registrant has duly caused this quarterly report to be signed on its behalf by the undersigned, thereunto duly authorized.

SANDY SPRING BANCORP, INC.

(Registrant)

By: /s/ Daniel J. Schrider

Daniel J. Schrider

President and Chief Executive Officer

Date: August 5, 2022

By: /s/ Philip J. Mantua

Philip J. Mantua

Executive Vice President and Chief Financial Officer

Date: August 5, 2022

72

EX-31.A

Exhibit 31 (a)

CERTIFICATION

Rule 13a-14(a) / 15d-14(a) Certifications

I, Daniel J. Schrider, Chief Executive Officer of Sandy Spring Bancorp, Inc. (“Bancorp”), certify that:

1.I have reviewed this quarterly report on Form 10-Q of Sandy Spring Bancorp, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a    material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d--15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such  disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based upon such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 5, 2022	/s/ Daniel J. Schrider
	Daniel J. Schrider
	President and
	Chief Executive Officer

EX-31.B

Exhibit 31 (b)

CERTIFICATION

I, Philip J. Mantua, Executive Vice President and Chief Financial Officer of Sandy Spring Bancorp, Inc. (“Bancorp”), certify that:

1.I have reviewed this quarterly report on Form 10-Q of Sandy Spring Bancorp, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a    material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d--15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such  disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based upon such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 5, 2022	/s/ Philip J. Mantua
	Philip J. Mantua
	Executive Vice President and
	Chief Financial Officer

EX-32.A

Exhibit 32 (a)

18 U.S.C. Section 1350 Certification

I hereby certify pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that the accompanying Form 10-Q of Sandy Spring Bancorp, Inc. (“Bancorp”) for the quarterly period ended June 30, 2022, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and that the information contained in this Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Bancorp.

By:	/s/ Daniel J. Schrider
	Daniel J. Schrider
	President and Chief Executive Officer
	Date: August 5, 2022

EX-32.B

Exhibit 32 (b)

18 U.S.C. Section 1350 Certification

I hereby certify pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that the accompanying Form 10-Q of Sandy Spring Bancorp, Inc. (“Bancorp”) for the quarterly period ended June 30, 2022, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and that the information contained in this Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Bancorp.

By:	/s/ Philip J. Mantua
	Philip J. Mantua
	Executive Vice President and Chief Financial Officer
	Date: August 5, 2022

XML

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	0-19065
Entity Registrant Name	SANDY SPRING BANCORP, INC.
Entity Incorporation State Country Code	MD
Entity Tax Identification Number	52-1532952
Entity Address Address Line1	17801 Georgia Avenue
Entity Address City Or Town	Olney
Entity Address State Or Province	MD
Entity Address Postal Zip Code	20832
City Area Code	301
Local Phone Number	774-6400
Security 12b Title	Common Stock, par value $1.00 per share
Trading Symbol	SASR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock Shares Outstanding (in shares)		44,644,269
Amendment Flag	false
Document Fiscal Year Focus	2022
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Current Fiscal Year End Date	--12-31

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CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Assets:
Cash and due from banks	$ 84,215	$ 65,630
Federal funds sold	291	312
Interest-bearing deposits with banks	136,773	354,078
Cash and cash equivalents	221,279	420,020
Residential mortgage loans held for sale (at fair value)	23,610	39,409
Investments held-to-maturity, at cost (fair value of $250,915)	274,337	0
Investments available-for-sale (at fair value)	1,268,823	1,465,896
Other investments, at cost	52,264	41,166
Total loans	10,786,290	9,967,091
Less: allowance for credit losses	(113,670)	(109,145)
Net loans	10,672,620	9,857,946
Premises and equipment, net	63,243	59,685
Other real estate owned	739	1,034
Accrued interest receivable	33,459	34,349
Goodwill	363,436	370,223
Other intangible assets, net	22,694	25,920
Other assets	306,505	275,078
Total assets	13,303,009	12,590,726
Liabilities:
Noninterest-bearing deposits	4,129,440	3,779,630
Interest-bearing deposits	6,840,021	6,845,101
Total deposits	10,969,461	10,624,731
Securities sold under retail repurchase agreements and federal funds purchased	185,744	141,086
Advances from FHLB	175,000	0
Subordinated debt	369,906	172,712
Total borrowings	730,650	313,798
Accrued interest payable and other liabilities	125,729	132,518
Total liabilities	11,825,840	11,071,047
Stockholders' equity:
Common stock	44,630	45,119
Additional paid in capital	730,285	751,072
Retained earnings	799,707	732,027
Accumulated other comprehensive loss	(97,453)	(8,539)
Total stockholders' equity	1,477,169	1,519,679
Total liabilities and stockholders' equity	$ 13,303,009	$ 12,590,726

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CONDENSED CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED - (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Held-to-maturity debt securities	$ 250,915	$ 0
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	44,629,697	45,118,930
Common stock, shares outstanding (in shares)	44,629,697	45,118,930

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Interest income:
Interest and fees on loans	$ 106,221	$ 107,751	$ 205,715	$ 215,179
Interest on loans held for sale	145	549	343	1,086
Interest on deposits with banks	358	47	471	93
Interest and dividends on investment securities:
Taxable	4,630	4,373	8,737	8,272
Tax-advantaged	2,554	2,103	4,678	4,454
Interest on federal funds sold	1	0	1	0
Total interest income	113,909	114,823	219,945	229,084
Interest expense:
Interest on deposits	3,795	3,851	6,088	8,681
Interest on retail repurchase agreements and federal funds purchased	201	43	255	96
Interest on advances from FHLB	17	373	17	2,649
Interest on subordinated debt	3,946	2,510	6,184	5,012
Total interest expense	7,959	6,777	12,544	16,438
Net interest income	105,950	108,046	207,401	212,646
Provision/ (credit) for credit losses	3,046	(4,204)	4,681	(38,912)
Net interest income after provision/ (credit) for credit losses	102,904	112,250	202,720	251,558
Non-interest income:
Investment securities gains	38	71	46	129
Gain on disposal of assets	16,699	0	16,699	0
Insurance agency commissions	812	1,247	2,927	3,400
Income from bank owned life insurance	703	705	1,498	1,385
Other income	2,135	5,578	4,183	9,284
Total non-interest income	35,245	26,259	55,840	55,125
Non-interest expense:
Salaries and employee benefits	39,550	38,990	78,923	75,642
Occupancy expense of premises	4,734	5,497	9,768	10,984
Equipment expense	3,559	3,020	7,095	6,242
Marketing	1,280	1,052	2,473	2,264
Outside data services	2,564	2,260	4,983	4,543
FDIC insurance	1,078	1,450	2,062	2,942
Amortization of intangible assets	1,466	1,659	2,974	3,356
Merger, acquisition and disposal expense	1,067	0	1,067	45
Professional fees and services	2,372	3,165	4,389	4,896
Other expenses	7,321	5,882	13,404	20,234
Total non-interest expense	64,991	62,975	127,138	131,148
Income before income tax expense	73,158	75,534	131,422	175,535
Income tax expense	18,358	18,271	32,687	42,808
Net income	$ 54,800	$ 57,263	$ 98,735	$ 132,727
Per share information:
Basic net income per common share (in dollars per share)	$ 1.21	$ 1.20	$ 2.18	$ 2.79
Diluted net income per share (in dollars per share)	1.21	1.19	2.17	2.77
Dividends declared per share (in dollars per share)	$ 0.34	$ 0.32	$ 0.68	$ 0.64
Service charges on deposit accounts
Non-interest income:
Fees and commissions, mortgage banking and servicing	$ 2,467	$ 1,976	$ 4,793	$ 3,828
Mortgage banking activities
Non-interest income:
Fees and commissions, mortgage banking and servicing	1,483	5,776	3,781	15,945
Wealth management income
Non-interest income:
Fees and commissions, mortgage banking and servicing	9,098	9,121	18,435	17,851
Bank card fees
Non-interest income:
Fees and commissions, mortgage banking and servicing	$ 1,810	$ 1,785	$ 3,478	$ 3,303

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/ (LOSS) - UNAUDITED - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 54,800	$ 57,263	$ 98,735	$ 132,727
Investments available-for-sale:
Net change in unrealized gains/ (losses) on investments available-for-sale	(38,857)	9,889	(104,780)	(18,966)
Related income tax expense/ (benefit)	9,961	(2,519)	26,858	4,858
Net investment gains reclassified into earnings	(38)	(71)	(46)	(129)
Related income tax expense	10	18	12	33
Net effect on other comprehensive income/ (loss)	(28,924)	7,317	(77,956)	(14,204)
Investments held-to-maturity:
Net change in unrealized loss	802	0	(15,127)	0
Related income tax expense/ (benefit)	(205)	0	3,878	0
Net effect on other comprehensive income/ (loss)	597	0	(11,249)	0
Defined benefit pension plan:
Net change of unrealized loss	195	227	391	454
Related income tax benefit	(50)	(58)	(100)	(121)
Net effect on other comprehensive income/ (loss)	145	169	291	333
Total other comprehensive income/ (loss)	(28,182)	7,486	(88,914)	(13,871)
Comprehensive income	$ 26,618	$ 64,749	$ 9,821	$ 118,856

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income/ (Loss)
Balance at beginning of period at Dec. 31, 2020	$ 1,469,955	$ 47,057	$ 846,922	$ 557,271	$ 18,705
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	132,727			132,727
Other comprehensive income (loss), net of tax	(13,871)				(13,871)
Total other comprehensive income	118,856
Common stock dividends	(30,420)			(30,420)
Stock compensation expense	2,309		2,309
Stock option plan	2,016	140	1,876
Employee stock purchase plan	1,102	38	1,064
Restricted stock vesting, net of tax withholding	(1,538)	78	(1,616)
Balance at end of period at Jun. 30, 2021	1,562,280	47,313	850,555	659,578	4,834
Balance at beginning of period at Mar. 31, 2021	1,511,694	47,187	849,606	617,553	(2,652)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	57,263			57,263
Other comprehensive income (loss), net of tax	7,486				7,486
Total other comprehensive income	64,749
Common stock dividends	(15,238)			(15,238)
Stock compensation expense	1,362		1,362
Stock option plan	485	38	447
Employee stock purchase plan	561	18	543
Restricted stock vesting, net of tax withholding	(1,333)	70	(1,403)
Balance at end of period at Jun. 30, 2021	1,562,280	47,313	850,555	659,578	4,834
Balance at beginning of period at Dec. 31, 2021	1,519,679	45,119	751,072	732,027	(8,539)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	98,735			98,735
Other comprehensive income (loss), net of tax	(88,914)				(88,914)
Total other comprehensive income	9,821
Common stock dividends	(31,055)			(31,055)
Stock compensation expense	4,650		4,650
Stock option plan	240	10	230
Employee stock purchase plan	930	22	908
Restricted stock vesting, net of tax withholding	(2,109)	104	(2,213)
Repurchase of common stock	(24,987)	(625)	(24,362)
Balance at end of period at Jun. 30, 2022	1,477,169	44,630	730,285	799,707	(97,453)
Balance at beginning of period at Mar. 31, 2022	1,488,910	45,163	752,671	760,347	(69,271)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	54,800			54,800
Other comprehensive income (loss), net of tax	(28,182)				(28,182)
Total other comprehensive income	26,618
Common stock dividends	(15,440)			(15,440)
Stock compensation expense	3,178		3,178
Stock option plan	45	1	44
Employee stock purchase plan	494	12	482
Restricted stock vesting, net of tax withholding	(1,649)	79	(1,728)
Repurchase of common stock	(24,987)	(625)	(24,362)
Balance at end of period at Jun. 30, 2022	$ 1,477,169	$ 44,630	$ 730,285	$ 799,707	$ (97,453)

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Stockholders' Equity [Abstract]
Common stock dividends (in dollars per share)	$ 0.34	$ 0.32	$ 0.68	$ 0.64
Stock option plan (in shares)	1,464	38,158	10,361	140,523
Employee stock purchase plan (in shares)	12,624	17,258	22,205	37,675
Restricted stock (in shares)	78,411	70,177	103,911	78,007
Repurchase of common stock (in shares)	(625,710)		(625,710)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net income	$ 98,735	$ 132,727
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,007	6,918
Provision/ (credit) for credit losses	4,681	(38,912)
Share based compensation expense	4,650	2,309
Gain on disposal of assets	(16,699)	0
Deferred income tax expense	972	10,879
Origination of loans held for sale	(200,986)	(940,041)
Proceeds from sales of loans held for sale	221,492	968,008
Gains on sales of loans held for sale	(4,707)	(20,755)
Losses on sale of other real estate owned	24	149
Investment securities gains	(46)	(129)
Tax benefit associated with share based compensation	(592)	1,009
Net decrease in accrued interest receivable	890	5,801
Net increase in other assets	(989)	(29,675)
Net decrease in accrued expenses and other liabilities	(9,425)	(23,663)
Other, net	(2,487)	910
Net cash provided by operating activities	101,520	75,535
Investing activities:
Sales/ (purchases) of other investments	(11,098)
Sales/ (purchases) of other investments		24,663
Purchases of investments available-for-sale	(356,033)	(403,677)
Proceeds from sales of investment available-for-sale	1,261	100,822
Proceeds from maturities, calls and principal payments of investments available-for-sale	138,473	187,341
Proceeds from maturities, calls and principal payments of investments held-to-maturity	15,961	0
Net (increase)/ decrease in loans	(814,098)	324,726
Proceeds from the sales of other real estate owned	271	499
Proceeds from sale of business activity, net	23,936	0
Expenditures for premises and equipment	(7,612)	(2,088)
Net cash provided by/ (used in) investing activities	(1,008,939)	232,286
Financing activities:
Net increase in deposits	345,832	836,034
Net increase/ (decrease) in in retail repurchase agreements and federal funds purchased	44,658	(402,449)
Proceeds from FHLB advances	346,625	0
Repayment of FHLB advances	(171,625)	(379,075)
Proceeds from issuance of subordinated debt	200,000	0
Proceeds from issuance of common stock	1,339	3,118
Stock tendered for payment of withholding taxes	(2,278)	(1,538)
Repurchase of common stock	(24,987)	0
Cash dividends paid	(30,886)	(30,420)
Net cash provided by financing activities	708,678	25,670
Net increase/ (decrease) in cash and cash equivalents	(198,741)	333,491
Cash and cash equivalents at beginning of period	420,020	297,003
Cash and cash equivalents at end of period	221,279	630,494
Supplemental disclosures:
Interest payments	13,859	22,239
Income tax payments, net of refunds of $966 and $1,834 in 2022 and 2021, respectively	$ 25,059	$ 38,226

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Statement of Cash Flows [Abstract]
Income tax refunds	$ 966	$ 1,834

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Sandy Spring Bancorp, Inc. ("Bancorp" or, together with its subsidiaries, the "Company"), a Maryland corporation, is the bank holding company for Sandy Spring Bank (the “Bank”). Independent and community-oriented, the Bank offers a broad range of commercial banking, retail banking, mortgage services and trust services throughout central Maryland, Northern Virginia, and the greater Washington, D.C. market. The Bank also offers a comprehensive menu of wealth management services through its subsidiaries, West Financial Services, Inc. (“West Financial”) and Rembert Pendleton Jackson (“RPJ”).

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”), prevailing practices within the financial services industry for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, the interim financial statements do not include all of the information and notes required for complete financial statements. The following summary of significant accounting policies of the Company is presented to assist the reader in understanding the financial and other data presented in this report. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for any future periods or for the year ending December 31, 2022. In the opinion of management, all adjustments necessary for a fair presentation of the results of the interim periods have been included. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2021 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 18, 2022. There have been no significant changes to any of the Company’s accounting policies as disclosed in the 2021 Annual Report on Form 10-K.

Principles of Consolidation

The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary, Sandy Spring Bank, and its subsidiaries, West Financial and RPJ and former results of Sandy Spring Insurance Corporation. Consolidation has resulted in the elimination of all intercompany accounts and transactions. See Note 17 for more information on the Company’s segments and consolidation.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, in addition to affecting the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for credit losses and the related allowance, potential impairment of goodwill or other intangible assets, valuation of investment securities and the determination of whether available-for-sale debt securities with fair values less than amortized costs are impaired and require an allowance for credit losses, valuation of other real estate owned, valuation of share based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, the calculation of current and deferred income taxes, and the actuarial projections related to pension expense and the related liability.

Cash Flows

For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold and interest-bearing deposits with banks (items with stated original maturity of three months or less).

Revenue from Contracts with Customers

The Company’s revenue includes net interest income on financial instruments and non-interest income. Specific categories of revenue are presented in the Condensed Consolidated Statements of Income. Most of the Company’s revenue is not within the scope of Accounting Standard Codification (“ASC”) 606 – Revenue from Contracts with Customers. For revenue within the scope of ASC 606, the Company provides services to customers and has related performance obligations. The revenue from such services is recognized upon satisfaction of all contractual performance obligations. The following discusses key revenue streams within the scope of this revenue recognition guidance.

Wealth Management Income

West Financial and RPJ provide comprehensive investment management and financial planning services. Wealth management income is comprised of income for providing trust, estate and investment management services. Trust services include acting as a trustee for corporate or personal trusts. Investment management services include investment management, record-keeping and reporting of security portfolios. Fees for these services are recognized based on a contractually-agreed fixed percentage applied to net assets under management at the end of each reporting period. The Company does not charge/recognize any performance-based fees.

Insurance Agency Commissions

Prior to the sale of its assets in June 2022, Sandy Spring Insurance Corporation performed the function of an insurance intermediary by introducing the policyholder and insurer and was compensated by a commission fee for placement of an insurance policy. Sandy Spring Insurance did not provide any captive management services or any claim handling services. Commission fees were set as a percentage of the premium for the insurance policy for which Sandy Spring Insurance was a producer. Sandy Spring Insurance recognized revenue when the insurance policy was contractually agreed to by the insurer and policyholder (at transaction date).

Service Charges on Deposit Accounts

Service charges on deposit accounts are earned on depository accounts for consumer and commercial account holders and include fees for account and overdraft services. Account services include fees for event-driven services and periodic account maintenance activities. An obligation for event-driven services is satisfied at the time of the event when service is delivered and revenue recognized as earned. Obligation for maintenance activities is satisfied over the course of each month and revenue is recognized at month end. The overdraft services obligation is satisfied at the time of the overdraft and revenue is recognized as earned.

Loan Financing Receivables

The Company’s financing receivables consist primarily of loans that are stated at their principal balance outstanding, net of any unearned income, acquisition fair value marks and deferred loan origination fees and costs. Interest income on loans is accrued at the contractual rate based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

Loans are considered past due or delinquent when the principal or interest due in accordance with the contractual terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Immaterial shortfalls in payment amounts do not necessarily result in a loan being considered delinquent or past due. If any payments are past due and subsequent payments are resumed without payment of the delinquent amount, the loan shall continue to be considered past due. Whenever any loan is reported delinquent on a principal or interest payment or portion thereof, the amount reported as delinquent is the outstanding principal balance of the loan.

Loans, except for consumer installment loans, are placed into non-accrual status when any portion of the loan principal or interest becomes 90 days past due. Management may determine that certain circumstances warrant earlier discontinuance of interest accruals on specific loans if an evaluation of other relevant factors (such as bankruptcy, interruption of cash flows, etc.) indicates collection of amounts contractually due is unlikely. These loans are considered, collectively, to be non-performing loans. Consumer installment loans that are not secured by real estate are not placed on non-accrual, but are charged down to their net realizable value when they are four months past due. Loans designated as non-accrual have all previously accrued but unpaid interest reversed. Interest income is not recognized on non-accrual loans. All payments received on non-accrual loans are applied using a cost-recovery method to reduce the outstanding principal balance until the loan returns to accrual status. Loans may be returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans considered to be TDRs are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured collateral-dependent loans are individually assessed for allowance for credit losses and may either be in accruing or non-accruing status. Non-accruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category if the borrower is no longer experiencing financial difficulty, a re-underwriting event took place, and the revised loan terms of the subsequent restructuring agreement are considered to be consistent with terms that can be obtained in the market for loans with comparable credit risk.

Allowance for Credit Losses

The allowance for credit losses (“allowance” or “ACL”) represents an amount which, in management's judgment, reflects the lifetime expected losses that may be sustained on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The allowance is measured and recorded upon the initial recognition of a financial asset. The allowance is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision or credit for credit losses, which is recorded as a current period expense.

Determination of the appropriateness of the allowance is inherently complex and requires the use of significant and highly subjective estimates. The reasonableness of the allowance is reviewed periodically by the Risk Committee of the Board of Directors and formally approved quarterly by that same committee of the Board.

The Company’s methodology for estimating the allowance includes: (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions throughout a reasonable and supportable period and the Company’s prepayment and curtailment rates; (2) collective qualitative factors that consider the expected impact of certain factors not fully captured in the collective quantified reserve, including concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, early delinquencies, and factors related to credit administration, including, among others, loan-to-value ratios, borrowers’ risk rating and credit score migrations; and (3) individual allowances on collateral-dependent loans where borrowers are experiencing financial difficulty or when the Company determines that the foreclosure is probable. The Company excludes accrued interest from the measurement of the allowance as the Company has a non-accrual policy to reverse any accrued, uncollected interest income as loans are moved to non-accrual status.

Loans are pooled into segments based on the similar risk characteristics of the underlying borrowers, in addition to consideration of collateral type, industry and business purpose of the loans. Portfolio segments used to estimate the allowance are the same as portfolio segments used for general credit risk management purposes. Refer to Note 5 for more details on the Company’s portfolio segments.

The Company applies two calculation methodologies to estimate the collective quantified component of the allowance: discounted cash flows method and weighted average remaining life method. Allowance estimates on commercial acquisition, development and construction (“AD&C”) and residential construction segments are based on the weighted average remaining life method. Allowance estimates on all other portfolio segments are based on the discounted cash flows method. Segments utilizing the discounted cash flows method are further sub-segmented into risk level pools, determined either by risk rating for commercial loans or Beacon Scores ranges for residential and consumer loans. To better manage risk and reasonably determine the sufficiency of reserves, this segregation allows the Company to monitor the allowance component applicable to higher risk loans separate from the remainder of the portfolio. Collective calculation methodologies utilize the Company’s historical default and loss experience adjusted for future economic forecasts. The reasonable and supportable forecast period represents a two-year economic outlook for the applicable economic variables. Following the end of the reasonable and supportable forecast period expected losses revert back to the historical mean over the next two years on a straight-line basis. Economic variables that have the most significant impact on the allowance include: unemployment rate, house price index and business bankruptcies. Contractual loan level cash flows within the discounted cash flows methodology are adjusted for the Company’s historical prepayment and curtailment rate experience.

The individual reserve assessment is applied to collateral dependent loans where borrowers are experiencing financial difficulty or when the Company determines that a foreclosure is probable. The determination of the fair value of the collateral depends on whether a repayment of the loan is expected to be from the sale or the operation of the collateral. When a repayment is expected from the operation of the collateral, the Company uses the present value of expected cash flows from the operation of the collateral as the fair value. When the repayment of the loan is expected from the sale of the collateral the fair value of the collateral is based on an observable market price or the collateral’s appraised value, less estimated costs to sell. Third party appraisals used in the individual reserve assessment are conducted at least annually with underlying assumptions that are reviewed by management. Third party appraisals may be obtained on a more frequent basis if deemed necessary. Internal evaluations of collateral value are conducted quarterly to ensure any further deterioration of the collateral value is recognized on a timely basis. During the individual reserve assessment, management also considers the potential future changes in the value of the collateral over the remainder of the loan’s remaining life. The Company may receive updated appraisals which contradict the preliminary determination of fair value used to establish an individual allowance on a loan. In these instances the individual allowance is adjusted to reflect the Company’s evaluation of the updated appraised fair value. In the event a loss was previously confirmed and the loan was charged down to the estimated fair value based on a previous appraisal, the balance of partially charged-off loans are not subsequently increased, but could be further decreased depending on the direction of the change in fair value. Payments on fully or partially charged-off loans are accounted for under the cost-recovery method. Under

this method, all payments received are applied on a cash basis to reduce the entire outstanding principal balance, then to recognize a recovery of all previously charged-off amounts before any interest income may be recognized. Based on the individual reserve assessment, if the Company determines that the fair value of the collateral is less than the amortized cost basis of the loan, an individual allowance will be established measured as the difference between the fair value of the collateral (less costs to sell) and the amortized cost basis of the loan. Once a loss has been confirmed, the loan is charged-down to its estimated fair value.

Large groups of smaller non-accrual homogeneous loans are not individually evaluated for allowance and include residential permanent and construction mortgages and consumer installment loans. These portfolios are reserved for on a collective basis using historical loss rates of similar loans over the weighted average life of each pool.

The Company reviews its unfunded commitments to determine if they are unconditionally cancellable by the Company. If the unfunded commitment is determined to not be unconditionally cancellable by the Company, a reserve for unfunded commitments is established. The reserve for unfunded commitments considers both the likelihood that the funding will occur and an estimate of expected credit losses over the life of the commitment.

Management believes it uses relevant information available to make determinations about the allowance and that it has established the existing allowance in accordance with GAAP. However, the determination of the allowance requires significant judgment, and estimates of expected lifetime losses in the loan portfolio can vary significantly from the amounts actually observed. While management uses available information to recognize expected losses, future additions to the allowance may be necessary based on changes in the loans comprising the portfolio, changes in the current and forecasted economic conditions, changes to the interest rate environment which may directly impact prepayment and curtailment rate assumptions, and changes in the financial condition of borrowers.

Held-to-maturity debt securities

Debt securities that are purchased with the positive intent and ability to be held until their maturity are classified as held-to-maturity (“HTM”). HTM debt securities are recorded at cost adjusted for amortization of premiums and accretion of discounts. Transfers of debt securities from available-for-sale ("AFS") category to HTM category are made at fair value as of the transfer date. The unrealized gain or loss at the date of transfer continues to be reported in accumulated other comprehensive income and in the carrying amount of the HTM securities. Both amounts are amortized over the remaining life of the security as a yield adjustment in interest income and effectively offset each other.

Leases

The Company determines if an arrangement is a lease at inception. All of the Company’s leases are currently classified as operating leases and are included in other assets and other liabilities on the Company’s Condensed Consolidated Statements of Condition. Periodic operating lease costs are recorded in occupancy expenses of premises on the Company's Condensed Consolidated Statements of Income.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the expected future lease payments over the remaining lease term. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating ROU assets are adjusted for any lease payments made at or before the lease commencement date, initial direct costs, any lease incentives received and, for acquired leases, any favorable or unfavorable fair value adjustments. The present value of the lease liability may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options provided in the lease terms. Lease expense is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately.

Pending Accounting Pronouncements

In March 2020, the FASB released Accounting Standards Update (“ASU”) 2020-04 - Reference Rate Reform (Topic 848), which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of LIBOR likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022, and can be adopted at any time during this period. The Company has not yet fully adopted this standard. A cross-functional working group has been established to guide the Company’s transition from LIBOR to alternative reference rates. The Company has identified its products that are either directly or indirectly influenced by LIBOR and has implemented enhanced fallback language to

facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The Company stopped originating any new loans referencing LIBOR during 2021. Currently, the Company does not expect that the adoption of this standard will have a material impact on its Consolidated Financial Statements.

In March 2022, the FASB issued ASU 2022-02, which eliminates the accounting guidance on troubled debt restructurings (“TDR”) and amends the guidance on “vintage disclosures” to require disclosure of current period gross charge-offs by year of origination. The ASU also adds enhanced disclosures for creditors with respect to loan refinancing and restructurings for borrowers experiencing financial difficulty. The objective of the disclosures is to provide information about the type and magnitude of modifications and the degree of their success in mitigating potential credit losses. For entities that have adopted the guidance in ASC 326, the amendments are effective for fiscal years beginning after December 15, 2022, and interim periods therein. Early adoption of the amendments is permitted for entities that have adopted ASC 326, including adoption in an interim period. An entity may elect to early adopt the amendments related to TDRs separately from the amendments related to vintage disclosures. The Company is in process of reviewing the enhanced modification disclosure requirements.

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INVESTMENTS

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

Investments available-for-sale and held-to-maturity

During the first quarter ended March 31, 2022, the Company transferred certain debt securities from available-for-sale to held-to-maturity. The total amortized cost of debt securities transferred was $305.6 million with the associated fair value of $289.4 million and unrealized losses of $16.2 million at the date of transfer. All of these investments are either issued by a direct governmental entity or a government-sponsored entity and have no historical evidence supporting expected credit losses. Therefore, the Company has estimated these losses at zero and will monitor this assumption in the future for any economic or governmental policies that could affect this assumption.

The amortized cost and estimated fair values of investments available-for-sale and held-to-maturity at the dates indicated are presented in the following table:

	June 30, 2022								December 31, 2021
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
U.S. treasuries and government agencies	$	106,551	$	—	$	(5,141)	$	101,410	$	68,487	$	202	$	(150)	$	68,539
State and municipal	346,087		75		(46,940)		299,222		323,286		6,561		(3,445)		326,402
Mortgage-backed and asset-backed	921,465		229		(53,503)		868,191		1,074,577		8,203		(11,825)		1,070,955
Total available-for-sale debt securities	$	1,374,103	$	304	$	(105,584)	$	1,268,823	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896
Held-to-maturity debt securities:
Mortgage-backed and asset-backed	274,337		—		(23,422)		250,915		—		—		—		—
Total held-to-maturity debt securities	$	274,337	$	—	$	(23,422)	$	250,915	$	—	$	—	$	—	$	—
Total debt securities	$	1,648,440	$	304	$	(129,006)	$	1,519,738	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896

Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed available-for-sale debt securities at June 30, 2022 are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required at June 30, 2022. Unrealized losses on available-for-sale debt securities are expected to recover over time as these securities approach maturity. The Company does not intend to sell, nor is it more likely than not it will be required to sell, these securities and has sufficient liquidity to hold these securities for an adequate period of time, which may be maturity, to allow for any anticipated recovery in fair value.

The available-for-sale and held-to-maturity mortgage-backed securities portfolio at June 30, 2022 is composed entirely of either the most senior tranches of GNMA, FNMA or FHLMC collateralized mortgage obligations ($453.4 million), GNMA, FNMA or FHLMC mortgage-backed securities ($695.4 million) or SBA asset-backed securities ($47.0 million).

Gross unrealized losses and fair value by length of time that the individual available-for-sale debt securities have been in an unrealized loss position at the dates indicated are presented in the following tables:

	June 30, 2022
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	11	$	101,410	$	5,141	$	—	$	—	$	101,410	$	5,141
State and municipal	141	242,938		35,197		33,236		11,743		276,174		46,940
Mortgage-backed and asset-backed	292	813,563		50,790		23,203		2,713		836,766		53,503
Total	444	$	1,157,911	$	91,128	$	56,439	$	14,456	$	1,214,350	$	105,584

	December 31, 2021
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	5	$	49,695	$	150	$	—	$	—	$	49,695	$	150
State and municipal	32	63,206		2,288		21,740		1,157		84,946		3,445
Mortgage-backed and asset-backed	104	665,813		10,145		37,857		1,680		703,670		11,825
Total	141	$	778,714	$	12,583	$	59,597	$	2,837	$	838,311	$	15,420

The Company has allocated mortgage-backed securities into the four maturity groupings reflected in the following tables using the expected average life of the individual securities based on statistics provided by independent third party industry sources. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties.

The estimated fair values and amortized costs of available-for-sale and held-to-maturity debt securities by contractual maturity are provided in the following tables.

	June 30, 2022				December 31, 2021
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
Available-for-sale debt securities
U.S. treasuries and government agencies:
One year or less	$	5,990	$	5,999	$	12,029	$	11,995
One to five years	95,420		100,552		56,510		56,492
Five to ten years	—		—		—		—
After ten years	—		—		—		—
State and municipal:
One year or less	7,109		7,102		12,821		12,709
One to five years	66,673		67,846		27,408		26,637
Five to ten years	33,927		37,297		42,960		42,661
After ten years	191,513		233,842		243,213		241,279
Mortgage-backed and asset-backed:
One year or less	7,940		7,990		9,272		9,239
One to five years	19,923		20,319		14,752		14,575
Five to ten years	336,022		354,871		388,918		390,569
After ten years	504,306		538,285		658,013		660,194
Total available-for-sale debt securities	$	1,268,823	$	1,374,103	$	1,465,896	$	1,466,350

	June 30, 2022				December 31, 2021
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
Held-to-maturity debt securities
Mortgage-backed and asset-backed:
One year or less	$	—	$	—	$	—	$	—
One to five years	—		—		—		—
Five to ten years	39,805		41,750		—		—
After ten years	211,110		232,587		—		—
Total held-to-maturity debt securities	$	250,915	$	274,337	$	—	$	—

At June 30, 2022 and December 31, 2021, available-for-sale and held-to-maturity debt securities with a book value of $539.6 million and $531.6 million, respectively, were pledged as collateral for certain government deposits and for other purposes as required or permitted by law. The outstanding balance of no single issuer, except for U.S. Agencies securities, exceeded ten percent of stockholders' equity at June 30, 2022 and December 31, 2021.

Other investments

Other investments are presented in the following table:

(In thousands)	June 30, 2022		December 31, 2021
Federal Reserve Bank stock, at cost	$	38,731	$	34,097
Federal Home Loan Bank of Atlanta stock, at cost	12,856		6,392
Other	677		677
Other investments	$	52,264	$	41,166

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LOANS

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

LOANS

LOANS

Outstanding loan balances at June 30, 2022 and December 31, 2021, are net of unearned income, including net deferred loan fees of $10.7 million and $14.3 million, respectively. Net deferred loan fees at June 30, 2022 and December 31, 2021, includes $0.6 million and $4.6 million, respectively, related to the loans originated under the Paycheck Protection Program (“PPP”).

The loan portfolio segment balances at the dates indicated are presented in the following table:

(In thousands)	June 30, 2022		December 31, 2021
Commercial real estate:
Commercial investor real estate	$	4,761,658	$	4,141,346
Commercial owner-occupied real estate	1,767,326		1,690,881
Commercial AD&C	1,094,528		1,088,094
Commercial business	1,353,380		1,481,834
Total commercial loans	8,976,892		8,402,155
Residential real estate:
Residential mortgage	1,147,577		937,570
Residential construction	235,486		197,652
Consumer	426,335		429,714
Total residential and consumer loans	1,809,398		1,564,936
Total loans	$	10,786,290	$	9,967,091

Portfolio Segments

The Company currently manages its credit products and the respective exposure to credit losses (credit risk) by the following specific portfolio segments (classes) which are levels at which the Company develops and documents its systematic methodology to determine the allowance for credit losses attributable to each respective portfolio segment. These segments are:

•Commercial investor real estate loans - Commercial investor real estate loans consist of loans secured by nonowner-occupied properties where an established banking relationship exists and involves investment properties for warehouse, retail, and office space with a history of occupancy and cash flow. This commercial investor real estate

category contains mortgage loans to the developers and owners of commercial real estate where the borrower intends to operate or sell the property at a profit and use the income stream or proceeds from the sale(s) to repay the loan.

•Commercial owner-occupied real estate loans - Commercial owner-occupied real estate loans consist of commercial mortgage loans secured by owner occupied properties where an established banking relationship exists and involves a variety of property types to conduct the borrower’s operations. The decision to extend a loan is based upon the borrower’s financial health and the ability of the borrower and the business to repay. The primary source of repayment for this type of loan is the cash flow from the operations of the business.

•Commercial acquisition, development and construction loans - Commercial acquisition, development and construction loans are intended to finance the construction of commercial properties and include loans for the acquisition and development of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of additional factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve that allows the lender to periodically advance loan funds to pay interest charges on the outstanding balance of the loan.

•Commercial business loans - Commercial loans are made to provide funds for equipment and general corporate needs. Repayment of a loan primarily comes from the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. Loans issued under the PPP are also included in this category, a substantial portion of which are expected to be forgiven by the Small Business Administration pursuant to the CARES Act.

•Residential mortgage loans - The residential mortgage loans category contains permanent mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios, and collateral values. Loans may be either conforming or non-conforming.

•Residential construction loans - The Company makes residential construction loans generally to provide interim financing on residential property during the construction period. Borrowers are typically individuals who will ultimately occupy the single-family dwelling. Loan funds are disbursed periodically as pre-specified stages of completion are attained based upon site inspections.

•Consumer loans - This category of loans includes primarily home equity loans and lines, installment loans, personal lines of credit, and other loans. The home equity category consists mainly of revolving lines of credit to consumers which are secured by residential real estate. These loans are typically secured with second mortgages on the homes. Other consumer loans include installment loans used by customers to purchase automobiles, boats and recreational vehicles.

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CREDIT QUALITY ASSESSMENT

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

CREDIT QUALITY ASSESSMENT

CREDIT QUALITY ASSESSMENT

Allowance for Credit Losses

Summary information on the allowance for credit loss activity for the period indicated is provided in the following table:

	Six Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	109,145	$	165,367
Provision/ (credit) for credit losses	4,681		(38,912)
Loan charge-offs	(762)		(3,485)
Loan recoveries	606		991
Net charge-offs	(156)		(2,494)
Balance at period end	$	113,670	$	123,961

The following table provides summary information regarding collateral dependent loans individually evaluated for credit loss at the dates indicated:

(In thousands)	June 30, 2022		December 31, 2021
Collateral dependent loans individually evaluated for credit loss with an allowance	$	8,797	$	9,510
Collateral dependent loans individually evaluated for credit loss without an allowance	21,676		24,024
Total individually evaluated collateral dependent loans	$	30,473	$	33,534
Allowance for credit losses related to loans evaluated individually	$	6,170	$	6,593
Allowance for credit losses related to loans evaluated collectively	107,500		102,552
Total allowance for credit losses	$	113,670	$	109,145

The following tables provide information on the activity in the allowance for credit losses by the respective loan portfolio segment for the period indicated:

 

	For the Six Months Ended June 30, 2022
	Commercial Real Estate												Residential Real Estate
(Dollars in thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance at beginning of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Provision/ (credit) for credit losses	11,186			(915)			(6,939)			(490)			1,981			88			(230)			4,681
Charge-offs	—			—			—			(507)			(131)			—			(124)			(762)
Recoveries	319			12			—			65			20			5			185			606
Net recoveries (charge-offs)	319			12			—			(442)			(111)			5			61			(156)
Balance at end of period	$	56,794		$	10,784		$	13,383		$	22,238		$	7,254		$	1,141		$	2,076		$	113,670
Total loans	$	4,761,658		$	1,767,326		$	1,094,528		$	1,353,380		$	1,147,577		$	235,486		$	426,335		$	10,786,290
Allowance for credit losses to total loans ratio	1.19		%	0.61		%	1.22		%	1.64		%	0.63		%	0.48		%	0.49		%	1.05		%
Average loans	$	4,367,400		$	1,705,562		$	1,099,498		$	1,353,446		$	1,017,741		$	209,264		$	422,929		$	10,175,840
Annualized net charge-offs/ (recoveries) to average loans	(0.01)		%	—		%	—		%	0.07		%	0.02		%	—		%	(0.03)		%	—		%
Balance of loans individually evaluated for credit loss	$	11,245		$	7,869		$	1,353		$	8,141		$	1,520		$	—		$	345		$	30,473
Allowance related to loans evaluated individually	$	134		$	76		$	504		$	5,456		$	—		$	—		$	—		$	6,170
Individual allowance to loans evaluated individually ratio	1.19		%	0.97		%	37.25		%	67.02		%	—		%	—		%	—		%	20.25		%
Balance of loans collectively evaluated for credit loss	$	4,750,413		$	1,759,457		$	1,093,175		$	1,345,239		$	1,146,057		$	235,486		$	425,990		$	10,755,817
Allowance related to loans evaluated collectively	$	56,660		$	10,708		$	12,879		$	16,782		$	7,254		$	1,141		$	2,076		$	107,500
Collective allowance to loans evaluated collectively ratio	1.19		%	0.61		%	1.18		%	1.25		%	0.63		%	0.48		%	0.49		%	1.00		%

	For the Year Ended December 31, 2021
	Commercial Real Estate												Residential Real Estate
(Dollars in thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance at beginning of period	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Provision for credit losses	(6,598)			(8,238)			172			(20,132)			(6,321)			(459)			(3,980)			(45,556)
Charge-offs	(5,802)			(136)			(2,007)			(4,069)			—			—			(299)			(12,313)
Recoveries	285			—			—			565			410			5			382			1,647
Net recoveries (charge-offs)	(5,517)			(136)			(2,007)			(3,504)			410			5			83			(10,666)
Balance at end of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Total loans	$	4,141,346		$	1,690,881		$	1,088,094		$	1,481,834		$	937,570		$	197,652		$	429,714		$	9,967,091
Allowance for credit losses to total loans ratio	1.09		%	0.69		%	1.87		%	1.56		%	0.57		%	0.53		%	0.52		%	1.10		%
Average loans	$	3,689,769		$	1,661,015		$	1,110,420		$	1,952,537		$	979,754		$	178,171		$	463,200		$	10,034,866
Net charge-offs/ (recoveries) to average loans	0.15		%	0.01		%	0.18		%	0.18		%	(0.04)		%	—		%	(0.02)		%	0.11		%
Balance of loans individually evaluated for credit loss	$	12,489		$	9,306		$	650		$	9,033		$	1,704		$	—		$	352		$	33,534
Allowance related to loans evaluated individually	$	213		$	79		$	504		$	5,797		$	—		$	—		$	—		$	6,593
Individual allowance to loans evaluated individually ratio	1.71		%	0.85		%	77.54		%	64.18		%	—		%	—		%	—		%	19.66		%
Balance of loans collectively evaluated for credit loss	$	4,128,857		$	1,681,575		$	1,087,444		$	1,472,801		$	935,866		$	197,652		$	429,362		$	9,933,557
Allowance related to loans evaluated collectively	$	45,076		$	11,608		$	19,818		$	17,373		$	5,384		$	1,048		$	2,245		$	102,552
Collective allowance to loans evaluated collectively ratio	1.09		%	0.69		%	1.82		%	1.18		%	0.58		%	0.53		%	0.52		%	1.03		%

The following tables present collateral dependent loans individually evaluated for credit loss with the associated allowances for credit losses by the applicable portfolio segment and for the periods indicated:

	June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Loans individually evaluated for credit loss with an allowance:
Non-accruing	$	554	$	76	$	1,353	$	4,071	$	—	$	—	$	—	$	6,054
Restructured accruing	—		—		—		599		—		—		—		599
Restructured non-accruing	—		—		—		2,144		—		—		—		2,144
Balance	$	554	$	76	$	1,353	$	6,814	$	—	$	—	$	—	$	8,797
Allowance	$	134	$	76	$	504	$	5,456	$	—	$	—	$	—	$	6,170
Loans individually evaluated for credit loss without an allowance:
Non-accruing	$	3,156	$	3,680	$	—	$	392	$	—	$	—	$	—	$	7,228
Restructured accruing	—		—		—		—		1,520		—		—		1,520
Restructured non-accruing	7,535		4,113		—		935		—		—		345		12,928
Balance	$	10,691	$	7,793	$	—	$	1,327	$	1,520	$	—	$	345	$	21,676
Total individually evaluated loans:
Non-accruing	$	3,710	$	3,756	$	1,353	$	4,463	$	—	$	—	$	—	$	13,282
Restructured accruing	—		—		—		599		1,520		—		—		2,119
Restructured non-accruing	7,535		4,113		—		3,079		—		—		345		15,072
Balance	$	11,245	$	7,869	$	1,353	$	8,141	$	1,520	$	—	$	345	$	30,473
Total unpaid contractual principal balance	$	11,938	$	9,255	$	1,398	$	9,698	$	1,963	$	—	$	364	$	34,616

	December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Loans individually evaluated for credit loss with an allowance:
Non-accruing	$	808	$	79	$	650	$	4,849	$	—	$	—	$	—	$	6,386
Restructured accruing	—		—		—		613		—		—		—		613
Restructured non-accruing	336		—		—		2,175		—		—		—		2,511
Balance	$	1,144	$	79	$	650	$	7,637	$	—	$	—	$	—	$	9,510
Allowance	$	213	$	79	$	504	$	5,797	$	—	$	—	$	—	$	6,593
Loans individually evaluated for credit loss without an allowance:
Non-accruing	$	3,498	$	4,775	$	—	$	434	$	—	$	—	$	—	$	8,707
Restructured accruing	—		—		—		—		1,554		—		—		1,554
Restructured non-accruing	7,847		4,452		—		962		150		—		352		13,763
Balance	$	11,345	$	9,227	$	—	$	1,396	$	1,704	$	—	$	352	$	24,024
Total individually evaluated loans:
Non-accruing	$	4,306	$	4,854	$	650	$	5,283	$	—	$	—	$	—	$	15,093
Restructured accruing	—		—		—		613		1,554		—		—		2,167
Restructured non-accruing	8,183		4,452		—		3,137		150		—		352		16,274
Balance	$	12,489	$	9,306	$	650	$	9,033	$	1,704	$	—	$	352	$	33,534
Total unpaid contractual principal balance	$	12,857	$	11,132	$	695	$	10,573	$	2,778	$	—	$	364	$	38,399

The following tables present average principal balance of total non-accrual loans and contractual interest due on non-accrual loans for the periods indicated below:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Average non-accrual loans for the period	$	11,826	$	8,419	$	1,028	$	8,106	$	7,965	$	36	$	6,274	$	43,654
Contractual interest income due on non- accrual loans during the period	$	358	$	271	$	27	$	287	$	193	$	1	$	182	$	1,319

	For the Year Ended December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Average non-accrual loans for the period	$	31,590	$	9,444	$	9,236	$	12,678	$	9,439	$	36	$	7,369	$	79,792
Contractual interest income due on non- accrual loans during the period	$	2,169	$	555	$	597	$	1,096	$	271	$	2	$	402	$	5,092

There was no interest income recognized on non-accrual loans during the six months ended June 30, 2022. See Note 1 for additional information on the Company's policies for non-accrual loans. Loans designated as non-accrual have all previously accrued but unpaid interest reversed from interest income. During the six months ended June 30, 2022 new loans placed on non-accrual status totaled $2.5 million and the related amount of reversed uncollected accrued interest was insignificant.

Credit Quality

The following section provides information on the credit quality of the loan portfolio for the periods indicated below:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086
Loans placed on non-accrual	—		453		—		1,011		861		—		126		2,451
Non-accrual balances transferred to OREO	—		—		—		—		—		—		—		—
Non-accrual balances charged-off	—		—		—		(480)		(132)		—		(29)		(641)
Net payments or draws	(1,244)		(1,890)		703		(1,409)		(1,251)		(54)		(876)		(6,021)
Non-accrual loans brought current	—		—		—		—		(614)		—		(254)		(868)
Balance at end of period	$	11,245	$	7,869	$	1,353	$	7,542	$	7,305	$	1	$	5,692	$	41,007

	For the Year Ended December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361
Loans placed on non-accrual	699		3,676		49		1,339		695		62		1,626		8,146
Non-accrual balances transferred to OREO	—		(257)		—		—		—		—		—		(257)
Non-accrual balances charged-off	(5,803)		(136)		(2,007)		(3,547)		—		—		(100)		(11,593)
Net payments or draws	(26,813)		(5,538)		(12,436)		(12,305)		(2,406)		(7)		(1,725)		(61,230)
Non-accrual loans brought current	(821)		—		—		—		(60)		—		(460)		(1,341)
Balance at end of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086

	June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,738,506	$	1,758,618	$	1,092,808	$	1,342,025	$	1,121,614	$	233,535	$	418,675	$	10,705,781
30-59 days	10,385		—		367		1,650		14,340		1,950		1,697		30,389
60-89 days	1,522		839		—		1,564		2,445		—		271		6,641
Total performing loans	4,750,413		1,759,457		1,093,175		1,345,239		1,138,399		235,485		420,643		10,742,811
Non-performing loans:
Non-accrual loans	11,245		7,869		1,353		7,542		7,305		1		5,692		41,007
Loans greater than 90 days past due	—		—		—		—		353		—		—		353
Restructured loans	—		—		—		599		1,520		—		—		2,119
Total non-performing loans	11,245		7,869		1,353		8,141		9,178		1		5,692		43,479
Total loans	$	4,761,658	$	1,767,326	$	1,094,528	$	1,353,380	$	1,147,577	$	235,486	$	426,335	$	10,786,290

	December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,127,009	$	1,680,635	$	1,085,642	$	1,471,669	$	919,199	$	197,597	$	419,558	$	9,901,309
30-59 days	1,656		86		1,802		753		5,157		—		3,021		12,475
60-89 days	192		854		—		379		2,662		—		410		4,497
Total performing loans	4,128,857		1,681,575		1,087,444		1,472,801		927,018		197,597		422,989		9,918,281
Non-performing loans:
Non-accrual loans	12,489		9,306		650		8,420		8,441		55		6,725		46,086
Loans greater than 90 days past due	—		—		—		—		557		—		—		557
Restructured loans	—		—		—		613		1,554		—		—		2,167
Total non-performing loans	12,489		9,306		650		9,033		10,552		55		6,725		48,810
Total loans	$	4,141,346	$	1,690,881	$	1,088,094	$	1,481,834	$	937,570	$	197,652	$	429,714	$	9,967,091

The credit quality indicators for commercial loans are developed through review of individual borrowers on an ongoing basis. Each borrower is evaluated at least annually with more frequent evaluation of more severely criticized loans. The indicators represent the rating for loans as of the date presented is based on the most recent credit review performed. These credit quality indicators are defined as follows:

Pass - A pass rated credit is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention – A special mention credit has potential weaknesses that deserve management’s close attention. If uncorrected, such weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard – A substandard loan is inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful – A loan that is classified as doubtful has all the weaknesses inherent in a loan classified as substandard with added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable, on the basis of currently existing facts, conditions and values.

Loss – Loans classified as a loss are considered uncollectible and of such little value that their continuing to be carried as a loan is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected in the future.

The following table provides information about credit quality indicators by the year of origination as of June 30, 2022:

	June 30, 2022
	Term Loans by Origination Year												Revolving
(In thousands)	2022		2021		2020		2019		2018		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	995,886	$	1,297,680	$	689,736	$	553,310	$	336,603	$	824,334	$	14,181	$	4,711,730
Special Mention	—		17,343		501		95		582		6,182		—		24,703
Substandard	10,097		692		—		2,256		8,248		3,932		—		25,225
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,005,983	$	1,315,715	$	690,237	$	555,661	$	345,433	$	834,448	$	14,181	$	4,761,658
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Owner-Occupied R/E:
Pass	$	246,043	$	342,740	$	241,314	$	298,137	$	151,076	$	455,558	$	904	$	1,735,772
Special Mention	5,013		—		924		460		2,115		5,007		—		13,519
Substandard	1,399		1,981		790		7,999		2,532		3,334		—		18,035
Doubtful	—		—		—		—		—		—		—		—
Total	$	252,455	$	344,721	$	243,028	$	306,596	$	155,723	$	463,899	$	904	$	1,767,326
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial AD&C:
Pass	$	158,080	$	450,044	$	172,240	$	86,968	$	57,897	$	—	$	165,884	$	1,091,113
Special Mention	—		1,073		—		—		—		—		989		2,062
Substandard	—		1,051		—		302		—		—		—		1,353
Doubtful	—		—		—		—		—		—		—		—
Total	$	158,080	$	452,168	$	172,240	$	87,270	$	57,897	$	—	$	166,873	$	1,094,528
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Business:
Pass	$	150,068	$	251,432	$	113,947	$	121,205	$	87,484	$	87,535	$	513,389	$	1,325,060
Special Mention	278		380		1,729		6,272		1,111		668		6,334		16,772
Substandard	600		3,190		1,480		2,273		73		2,060		1,872		11,548
Doubtful	—		—		—		—		—		—		—		—
Total	$	150,946	$	255,002	$	117,156	$	129,750	$	88,668	$	90,263	$	521,595	$	1,353,380
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	138	$	369	$	—	$	507
Residential Mortgage:
Beacon score:
660-850	$	243,623	$	264,572	$	164,442	$	45,352	$	57,946	$	287,215	$	—	$	1,063,150
600-659	3,254		4,263		3,538		3,501		6,329		25,672		—		46,557
540-599	241		1,858		1,111		1,585		2,965		7,587		—		15,347
less than 540	1,719		3,492		3,443		1,297		1,481		11,091		—		22,523
Total	$	248,837	$	274,185	$	172,534	$	51,735	$	68,721	$	331,565	$	—	$	1,147,577
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	131	$	—	$	131
Residential Construction:
Beacon score:
660-850	$	65,572	$	137,210	$	26,196	$	1,877	$	1,432	$	1,161	$	—	$	233,448
600-659	75		1,746		—		—		—		—		—		1,821
540-599	—		—		—		—		—		—		—		—
less than 540	217		—		—		—		—		—		—		217
Total	$	65,864	$	138,956	$	26,196	$	1,877	$	1,432	$	1,161	$	—	$	235,486
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	1,869	$	3,457	$	929	$	1,971	$	2,468	$	25,460	$	351,555	$	387,709
600-659	300		450		105		371		289		5,441		14,716		21,672
540-599	54		36		2		49		487		2,650		3,485		6,763
less than 540	278		77		42		482		291		3,409		5,612		10,191
Total	$	2,501	$	4,020	$	1,078	$	2,873	$	3,535	$	36,960	$	375,368	$	426,335
Current period gross charge-offs	$	—	$	5	$	5	$	—	$	10	$	14	$	90	$	124
Total loans	$	1,884,666	$	2,784,767	$	1,422,469	$	1,135,762	$	721,409	$	1,758,296	$	1,078,921	$	10,786,290

 The following table provides information about credit quality indicators by the year of origination as of December 31, 2021:

	December 31, 2021
	Term Loans by Origination Year												Revolving
(In thousands)	2021		2020		2019		2018		2017		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	1,391,969	$	748,236	$	616,761	$	357,640	$	328,327	$	633,913	$	19,239	$	4,096,085
Special Mention	2,210		510		4,646		596		2,204		10,438		—		20,604
Substandard	807		336		4,308		8,568		10,064		574		—		24,657
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,394,986	$	749,082	$	625,715	$	366,804	$	340,595	$	644,925	$	19,239	$	4,141,346
Current period gross charge-offs	$	—	$	—	$	—	$	903	$	3,975	$	924	$	—	$	5,802
Commercial Owner-Occupied R/E:
Pass	$	360,169	$	254,350	$	319,348	$	178,416	$	172,354	$	363,685	$	1,149	$	1,649,471
Special Mention	156		1,476		4,388		9,035		4,456		9,106		—		28,617
Substandard	1,968		1,800		4,028		2,265		354		2,378		—		12,793
Doubtful	—		—		—		—		—		—		—		—
Total	$	362,293	$	257,626	$	327,764	$	189,716	$	177,164	$	375,169	$	1,149	$	1,690,881
Current period gross charge-offs	$	—	$	—	$	—	$	136	$	—	$	—	$	—	$	136
Commercial AD&C:
Pass	$	454,207	$	226,332	$	148,260	$	87,934	$	13,938	$	—	$	152,896	$	1,083,567
Special Mention	2,888		—		—		—		—		—		989		3,877
Substandard	349		—		301		—		—		—		—		650
Doubtful	—		—		—		—		—		—		—		—
Total	$	457,444	$	226,332	$	148,561	$	87,934	$	13,938	$	—	$	153,885	$	1,088,094
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	2,007	$	—	$	—	$	2,007
Commercial Business:
Pass	$	403,871	$	165,194	$	137,069	$	96,800	$	55,100	$	53,764	$	533,893	$	1,445,691
Special Mention	220		1,998		7,030		1,701		548		577		9,212		21,286
Substandard	3,777		3,262		2,609		797		811		2,065		1,536		14,857
Doubtful	—		—		—		—		—		—		—		—
Total	$	407,868	$	170,454	$	146,708	$	99,298	$	56,459	$	56,406	$	544,641	$	1,481,834
Current period gross charge-offs	$	—	$	—	$	88	$	1,674	$	46	$	2,236	$	25	$	4,069
Residential Mortgage:
Beacon score:
660-850	$	246,612	$	165,623	$	46,925	$	65,865	$	102,628	$	223,420	$	—	$	851,073
600-659	11,102		3,285		3,583		4,255		4,645		20,052		—		46,922
540-599	1,472		1,864		2,162		4,522		1,599		8,201		—		19,820
less than 540	452		4,293		1,575		1,829		2,079		9,527		—		19,755
Total	$	259,638	$	175,065	$	54,245	$	76,471	$	110,951	$	261,200	$	—	$	937,570
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Construction:
Beacon score:
660-850	$	134,335	$	45,890	$	8,063	$	2,078	$	1,347	$	1,160	$	—	$	192,873
600-659	1,922		—		650		—		—		—		—		2,572
540-599	—		—		—		—		—		462		—		462
less than 540	1,745		—		—		—		—		—		—		1,745
Total	$	138,002	$	45,890	$	8,713	$	2,078	$	1,347	$	1,622	$	—	$	197,652
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	3,179	$	1,393	$	3,130	$	3,060	$	1,648	$	26,156	$	350,466	$	389,032
600-659	352		123		324		716		430		4,906		14,119		20,970
540-599	58		8		311		160		89		2,809		4,926		8,361
less than 540	88		58		536		544		98		3,101		6,926		11,351
Total	$	3,677	$	1,582	$	4,301	$	4,480	$	2,265	$	36,972	$	376,437	$	429,714
Current period gross charge-offs	$	—	$	—	$	7	$	2	$	—	$	106	$	184	$	299
Total loans	$	3,023,908	$	1,626,031	$	1,316,007	$	826,781	$	702,719	$	1,376,294	$	1,095,351	$	9,967,091

The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	32	$	—	$	32
Restructured non-accruing	—		—		—		173		—		173
Balance	$	—	$	—	$	—	$	205	$	—	$	205
Individual allowance	$	—	$	—	$	—	$	73	$	—	$	73
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

	For the Year Ended December 31, 2021
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	—	$	—	$	—
Restructured non-accruing	9,594		3,157		—		1,824		—		14,575
Balance	$	9,594	$	3,157	$	—	$	1,824	$	—	$	14,575
Individual allowance	$	—	$	—	$	—	$	461	$	—	$	461
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

During the six months ended June 30, 2022, the Company restructured $205 thousand in loans that were designated as TDRs. TDR loans are subject to periodic credit reviews to determine the necessity and appropriateness of an individual credit loss allowance based on the collectability of the recorded investment in the TDR loan. Loans restructured as TDRs during the six months ended June 30, 2022 had individual reserves of $73 thousand at June 30, 2022. For the year ended December 31, 2021, the Company restructured $14.6 million in loans. Loans restructured as TDRs during 2021 had individual reserves of $0.5 million at December 31, 2021. During both the six months ended June 30, 2022 and the year ended December 31, 2021 TDR modifications consisted principally of interest rate concessions, term extensions and did not result in the reduction of the recorded investment in the associated loan balances. The commitments to lend additional funds on loans that have been restructured at June 30, 2022 and December 31, 2021 were not significant.

Other Real Estate Owned

Other real estate owned ("OREO") totaled $0.7 million and $1.0 million at June 30, 2022 and December 31, 2021, respectively. There was one consumer mortgage loan secured by residential real estate property for which formal foreclosure proceedings were in process as of June 30, 2022 with the total amount of $0.6 million.

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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

The amount of goodwill by reportable segment is presented in the following table:

(In thousands)	Community Banking		Insurance		Investment Management		Total
Balances at December 31, 2021	$	331,689	$	6,788	$	31,747	$	370,223
Disposal of subsidiary's assets	—		(6,788)		—		(6,788)
Balances at June 30, 2022	$	331,689	$	—	$	31,747	$	363,436

The gross carrying amounts and accumulated amortization of intangible assets and goodwill are presented at the dates indicated in the following table:

	June 30, 2022						Weighted Average Remaining Life	December 31, 2021						Weighted Average Remaining Life
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount			Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Core deposit intangibles	$	29,038	$	(14,708)	$	14,330	6.9 years	$	29,038	$	(12,624)	$	16,414	7.4 years
Other identifiable intangibles	13,906		(5,542)		8,364		9.2 years	13,906		(4,400)		9,506		9.7 years
Total amortizing intangible assets	$	42,944	$	(20,250)	$	22,694		$	42,944	$	(17,024)	$	25,920
Goodwill	$	363,436			$	363,436		$	370,223			$	370,223

The following table presents the estimated future amortization expense for amortizing intangible assets within the years ending December 31:

(In thousands)	Amount
Remaining 2022	$	2,840
2023	5,040
2024	4,290
2025	3,530
2026	2,702
Thereafter	4,292
Total amortizing intangible assets	$	22,694

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DEPOSITS

6 Months Ended

Jun. 30, 2022

Deposits [Abstract]

DEPOSITS

DEPOSITS

The following table presents the composition of deposits at the dates indicated:

(In thousands)	June 30, 2022		December 31, 2021
Noninterest-bearing deposits	$	4,129,440	$	3,779,630
Interest-bearing deposits:
Demand	1,590,484		1,604,714
Money market savings	3,185,150		3,415,663
Regular savings	560,324		533,862
Time deposits of less than $250,000	1,168,317		910,464
Time deposits of $250,000 or more	335,746		380,398
Total interest-bearing deposits	6,840,021		6,845,101
Total deposits	$	10,969,461	$	10,624,731

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BORROWINGS

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Subordinated Debt

On March 15, 2022, the Company completed an offering of $200.0 million aggregate principal amount Fixed to Floating Rate Subordinated Notes due in 2032. The notes bear a fixed interest rate of 3.875% per year through March 29, 2027. Commencing on March 30, 2027, the notes will bear interest at a floating rate per annum equal to the benchmark rate (which is expected to be the three-month SOFR rate) plus a spread of 196.5 basis points, payable quarterly in arrears. The total amount of debt issuance

costs incurred was $3.1 million, which are being amortized through the contractual life of the debt. The entire amount of the subordinated debt is considered Tier 2 capital under current regulatory guidelines.

On November 5, 2019, the Company completed an offering of $175.0 million aggregate principal amount Fixed to Floating Rate Subordinated Notes due in 2029. The notes bear a fixed interest rate of 4.25% per year through November 14, 2024. Beginning November 15, 2024, the interest rate will become a floating rate equal to three month LIBOR, or an alternative benchmark rate as determined pursuant to the terms of the indenture for the notes in the event LIBOR has been discontinued by November 15, 2024, plus 262 basis points through the remaining maturity or early redemption date of the notes. The interest will be paid in arrears semi-annually during the fixed rate period and quarterly during the floating rate period. The Company incurred $2.9 million of debt issuance costs which are being amortized through the contractual life of the debt. The entire amount of the subordinated debt is considered Tier 2 capital under current regulatory guidelines.

In conjunction with the acquisition of WashingtonFirst Bankshares, Inc. ("WashingtonFirst") in 2018, the Company assumed $25.0 million in subordinated debt with an associated purchase premium at acquisition of $2.2 million. The premium was amortized over the contractual life of the obligation. The subordinated debt had a maturity of 10 years, maturing on October 15, 2025, and was non-callable through October 15, 2020. The subordinated debt held a fixed interest rate of 6.00% per annum through October 5, 2020 at which point the rate became variable at the three-month LIBOR plus 457 basis points payable quarterly. On July 15, 2021, the Company redeemed the entire outstanding principal balance of the WashingtonFirst subordinated debt.

In conjunction with the acquisition of Revere Bank ("Revere") in 2020, the Company assumed $31.0 million in subordinated debt with an associated purchase premium at acquisition of $0.2 million, which was amortized through the call date. The subordinated debt had a 10-year term, maturing on September 30, 2026, and was non-callable until September 30, 2021. The subordinated debt had a fixed interest rate of 5.625% per annum, payable semi-annually, through December 31, 2021 at which point the interest rate reset quarterly to an amount equal to three month LIBOR plus 441 basis points. On September 30, 2021, the Company redeemed the entire outstanding principal balance of the Revere subordinated debt.

The following table provides information on subordinated debt as of the date indicated:

(In thousands)	June 30, 2022		December 31, 2021
Fixed to floating rate subordinated debt, 3.875%	$	200,000	$	—
Fixed to floating rate subordinated debt, 4.25%	175,000		175,000
Total subordinated debt	375,000		175,000
Less: Debt issuance costs	(5,094)		(2,288)
Long-term borrowings	$	369,906	$	172,712

Other Borrowings

At June 30, 2022 and December 31, 2021, the Company had $110.7 million and $141.1 million, respectively, of outstanding retail repurchase agreements. The Company had $75.0 million of outstanding federal funds purchased at June 30, 2022 and did not have any at outstanding at December 31, 2021.

At June 30, 2022, the Company had the ability to pledge collateral at prevailing market rates under a line of credit with the FHLB of $3.9 billion. FHLB availability based on pledged collateral at June 30, 2022, amounted to $3.1 billion, with $175.0 million outstanding against it. At December 31, 2021, the Company possessed the ability to extend its lines of credit with the FHLB totaling $3.9 billion based on collateral that was available to be pledged. The availability of FHLB borrowings based on the collateral pledged at December 31, 2021 was $2.7 billion with no outstanding borrowings.

Under a blanket lien, the Company has pledged qualifying residential mortgage loans amounting to $1.0 billion, commercial real estate loans amounting to $3.5 billion, home equity lines of credit (“HELOC”) amounting to $218.5 million, and multifamily loans amounting to $458.6 million at June 30, 2022, as collateral under the borrowing agreement with the FHLB. At December 31, 2021, the Company had pledged collateral of qualifying mortgage loans of $829.1 million, commercial real estate loans of $3.1 billion, HELOC loans of $224.4 million, and multifamily loans of $333.4 million under the FHLB borrowing agreement.

The Company also had secured lines of credit available from the Federal Reserve Bank and correspondent banks of $684.9 million and $509.4 million at June 30, 2022 and December 31, 2021, respectively, collateralized by loans, with no borrowings outstanding at the end of either period. In addition, the Company had unsecured lines of credit available with

correspondent banks of $1.3 billion at both June 30, 2022 and December 31, 2021, with $75.0 million outstanding at June 30, 2022 and no borrowings outstanding at December 31, 2021.

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STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2022

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

On March 30, 2022, the Company's board of directors authorized a stock repurchase plan that permits the repurchase of up to $50.0 million of the Company's common stock. During the six months ended June 30, 2022, the Company repurchased and retired 625,710 common shares at an average price of $39.93 per share for the total cost of $25.0 million.

During 2021, the Company completed its previously authorized stock repurchase plan with the repurchase of all 2,350,000 shares of common stock at an average price of $45.65 per share for a total cost of $107.3 million.

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SHARE BASED COMPENSATION

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

SHARE BASED COMPENSATION

SHARE BASED COMPENSATION

At June 30, 2022, the Company had two share based compensation plans in existence, the 2005 Omnibus Stock Plan (“Omnibus Stock Plan”) and the 2015 Omnibus Incentive Plan (“Omnibus Incentive Plan”). The Omnibus Stock Plan expired during the second quarter of 2015 but has outstanding options that may still be exercised. The Omnibus Incentive Plan is described in the following paragraph.

The Company’s Omnibus Incentive Plan was approved on May 6, 2015 and provides for the granting of incentive stock options, non-qualifying stock options, stock appreciation rights, restricted stock grants, restricted stock units and performance share units to selected directors and employees on a periodic basis at the discretion of the Company’s Board of Directors. The Omnibus Incentive Plan authorizes the issuance of up to 1,500,000 shares of common stock, of which 632,533 are available for issuance at June 30, 2022, has a term of 10 years, and is administered by a committee of at least three directors appointed by the Board of Directors. Grants of restricted stock units made in 2022 allow continued vesting upon retirement. Options granted under the plan have an exercise price which may not be less than 100% of the fair market value of the common stock on the date of the grant and must be exercised within seven or 10 years from the date of grant depending on the terms of the grant agreement. The exercise price of stock options must be paid for in full in cash or shares of common stock, or a combination of both. The board committee has the discretion when making a grant of stock options to impose restrictions on the shares to be purchased upon the exercise of such options. The Company generally issues authorized but previously unissued shares to satisfy option exercises.

The dividend yield is based on estimated future dividend yields. The risk-free rate for periods within the contractual term of the share option is based on the U.S. Treasury yield curve in effect at the time of the grant. Expected volatilities are generally based on historical volatilities. The expected term of share options granted is generally derived from historical experience.

Compensation expense is recognized on a straight-line basis over the vesting period of the respective stock option, restricted stock, restricted stock unit grant or performance share units. The Company recognized compensation expense of $3.2 million and $1.4 million for the three months ended June 30, 2022 and 2021, respectively, and of $4.7 million and $2.3 million, for the six months ended June 30, 2022 and 2021, respectively, related to the awards of restricted stock award grants, restricted stock unit grants and performance share unit grants. There was no unrecognized compensation cost related to stock options as of June 30, 2022. The total of unrecognized compensation cost related to restricted stock awards, restricted stock unit grants, and performance share unit grants was approximately $10.4 million as of June 30, 2022. That cost is expected to be recognized over a weighted average period of approximately 2.11 years.

During the six months ended June 30, 2022, the Company granted 167,411 restricted stock units and performance share units, of which 45,567 units are subject to achievement of certain performance conditions measured over a three-year performance period and 121,844 restricted stock units are subject to a three year vesting schedule. The Company did not grant any stock options under the Omnibus Incentive Plan during the six months ended June 30, 2022.

A summary of the activity for the Company’s restricted stock, restricted stock units and performance share units for the period indicated is presented in the following table:

	Number of Common Shares/Units	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2022	390,520	$	32.67
Granted	167,411	$	45.02
Vested	(151,691)	$	32.64
Forfeited/ cancelled	(9,688)	$	36.86
Non-vested at June 30, 2022	396,552	$	37.38

A summary of share option activity for the period indicated is reflected in the following table:

	Number of Common Shares	Weighted Average Exercise Share Price		Weighted Average Contractual Remaining Life (Years)	Aggregate Intrinsic Value (in thousands)
Balance at January 1, 2022	159,741	$	17.18	2.4 years	$	5,264
Granted	—	$	—
Exercised	(10,361)	$	23.18		$	238
Forfeited	—	$	—
Expired	—	$	—
Balance at June 30, 2022	149,380	$	16.76	2.0 years	$	3,256
Exercisable at June 30, 2022	149,380	$	16.76	2.0 years	$	3,256

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PENSION PLAN

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

PENSION PLAN

PENSION PLAN

Defined Benefit Pension Plan

The Company has a qualified, noncontributory, defined benefit pension plan (the “Plan”). Benefits after January 1, 2005, are based on the benefit earned as of December 31, 2004, plus benefits earned in future years of service based on the employee’s compensation during each such year. All benefit accruals for employees were frozen as of December 31, 2007 based on past service and thus salary increases and additional years of service after such date no longer affect the defined benefit provided by the Plan, although additional vesting may continue to occur.

The Company's funding policy is to contribute amounts to the Plan sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended. In addition, the Company contributes additional amounts as it deems appropriate based on benefits attributed to service prior to the date of the Plan freeze. The Plan invests primarily in a diversified portfolio of managed fixed income and equity funds.

On March 30, 2022, the Board of Directors approved the termination of the Plan to be effective as of June 30, 2022. The Company has executed plan amendments regarding the Plan termination and filed an Application for Determination for Terminating Plan with the Internal Revenue Service (“IRS”) for a determination as to the tax-qualified status of the Plan at the time of termination. Over the next several months, the Company intends to prepare and file appropriate notices and documents related to the Plan’s termination and wind-down with the Pension Benefit Guaranty Corporation (“PBGC”).

After receiving approval from the IRS and the PBGC, which is expected to be in 2023, the Company will make an additional cash contribution, if necessary, in order to fully fund the Plan on a plan termination basis, followed by the purchase of annuity contracts to transfer its remaining liabilities under the Plan. The actual amount of this cash contribution, if any, will depend upon the nature and timing of participant settlements, as well as prevailing market conditions. In addition, the Company expects to recognize a non-cash pension settlement charge upon settlement of the obligations of the Plan.

All participants who are not already receiving annuities will be given the opportunity to elect a lump sum payout. Benefit obligations of participants who do not elect a lump sum or who are being paid in an annuity form will be transferred under an annuity contract from a highly-rated insurance company that will pay and administer future benefit payments. There will be no

change in the benefit earned by Plan participants as a result of these actions. The Plan termination is subject to regulatory approvals and the Company has the right to change the effective date of the Plan termination or to revoke its decision to terminate the Plan, but it has no intent to do so.

The components of net periodic benefit cost for the periods indicated are presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Interest cost on projected benefit obligation	$	326	$	318	$	651	$	636
Expected return on plan assets	(352)		(312)		(705)		(624)
Recognized net actuarial loss	195		227		391		454
Net periodic benefit cost	$	169	$	233	$	337	$	466

The decision as to whether or not to make a plan contribution and the amount of any such contribution is dependent on a number of factors. Such factors include the investment performance of Plan assets in the current economy and, since the Plan is currently frozen, the remaining investment horizon of the Plan. The Company did not make any contribution to the Plan during the six months ended June 30, 2022. Management continues to monitor the funding level of the Plan and may make additional contributions as necessary during 2022.

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NET INCOME PER COMMON SHARE

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE

The calculation of net income per common share for the periods indicated is presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars and amounts in thousands, except per share data)	2022		2021		2022		2021
Net income	$	54,800	$	57,263	$	98,735	$	132,727
Distributed and undistributed earnings allocated to         participating securities	(194)		(481)		(476)		(1,121)
Net income attributable to common shareholders	$	54,606	$	56,782	$	98,259	$	131,606
Total weighted average outstanding shares	45,184		47,689		45,303		47,610
Less: Weighted average participating securities	(160)		(401)		(221)		(406)
Basic weighted average common shares	45,024		47,288		45,082		47,204
Dilutive weighted average common stock equivalents	87		235		140		266
Diluted weighted average common shares	45,111		47,523		45,222		47,470
Basic net income per common share	$	1.21	$	1.20	$	2.18	$	2.79
Diluted net income per common share	$	1.21	$	1.19	$	2.17	$	2.77
Anti-dilutive shares	—		—		—		—

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ACCUMULATED OTHER COMPREHENSIVE LOSS

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

Comprehensive income/ (loss) is defined as net income/ (loss) plus transactions and other occurrences that are the result of non-owner changes in equity. For Condensed Consolidated Financial Statements presented for the Company, non-owner changes in equity are comprised of unrealized gains or losses on investments available-for-sale and held-to-maturity, and any minimum pension liability adjustments.

During the quarter ended March 31, 2022, the Company transferred certain debt securities from available-for-sale to held-to-maturity. The total amortized cost of debt securities transferred was $305.6 million with the associated after tax unrealized loss $12.1 million at the date of transfer. This after tax unrealized loss continues to be reported in accumulated other comprehensive income and is amortized over the remaining lives of debt securities as a yield adjustment.

The following table presents the activity in net accumulated other comprehensive income/ (loss) and the components of the activity for the periods indicated:

(In thousands)	Unrealized Gains/(Losses) on Debt Securities Available-for-Sale		Defined Benefit Pension Plan		Unrealized Losses on Debt Securities Transferred from Available-for-Sale to Held-to-Maturity		Total
Balance at January 1, 2022	$	(336)	$	(8,203)	$	—	$	(8,539)
Other comprehensive loss before reclassification from accumulated other comprehensive loss, net of tax	(77,922)		—		(12,083)		(90,005)
Reclassifications from accumulated other comprehensive loss to earnings, net of tax	(34)		291		834		1,091
Current period change in other comprehensive loss, net of tax	(77,956)		291		(11,249)		(88,914)
Balance at June 30, 2022	$	(78,292)	$	(7,912)	$	(11,249)	$	(97,453)

(In thousands)	Unrealized Gains/ (Losses) on Debt Securities Available-for-Sale		Defined Benefit Pension Plan		Total
Balance at January 1, 2021	$	28,175	$	(9,470)	$	18,705
Other comprehensive income before reclassification, net of tax	(14,108)		—		(14,108)
Reclassifications from accumulated other comprehensive income, net of tax	(96)		333		237
Current period change in other comprehensive income, net of tax	(14,204)		333		(13,871)
Balance at June 30, 2021	$	13,971	$	(9,137)	$	4,834

The following table provides the information on the reclassification adjustments out of accumulated other comprehensive income/ (loss) for the periods indicated:

	Six Months Ended June 30,
(In thousands)	2022		2021
Unrealized gains on available-for-sale debt securities:
Affected line item in the Statements of Income:
Investment securities gains	$	46	$	129
Income before taxes	46		129
Tax expense	(12)		(33)
Net income	$	34	$	96
Amortization of unrealized losses on debt securities transferred from available-for-sale to held-to-maturity:
Affected line item in the Statements of Income:
Interest and dividends on investment securities (1)	$	(1,122)	$	—
Income before taxes	(1,122)		—
Tax benefit	288		—
Net loss	$	(834)	$	—
Amortization of defined benefit pension plan items:
Affected line item in the Statements of Income:
Recognized actuarial loss (2)	$	(391)	$	(454)
Loss before taxes	(391)		(454)
Tax benefit	100		121
Net loss	$	(291)	$	(333)

(1)Amortization of unrealized losses on held-to-maturity debt securities is fully offset by accretion of a discount on held-to-maturity debt securities with no overall impact on net income and yield.

(2)This amount is included in the computation of net periodic benefit cost. See Note 10 for additional information on the pension plan.

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LEASES

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

LEASES

LEASES

The Company leases real estate properties for its network of bank branches, financial centers and corporate offices. All of the Company’s leases are currently classified as operating. Most lease agreements include one or more options to renew, with renewal terms that can extend the original lease term from one to twenty years or more. The Company does not sublease any of its leased real estate properties.

The following table provides information regarding the Company's leases as of the dates indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Components of lease expense:
Operating lease cost (resulting from lease payments)	$	2,738	$	3,134	$	5,504	$	6,286
Supplemental cash flow information related to leases:
Operating cash flows from operating leases	$	2,893	$	3,274	$	5,832	$	6,554
ROU assets obtained in the exchange for lease liabilities due to:
New leases	$	—	$	—	$	—	$	803
Acquisitions	$	—	$	—	$	—	$	—
					June 30, 2022		December 31, 2021
Supplemental balance sheet information related to leases:
Operating lease ROU assets					$	53,796	$	57,872
Operating lease liabilities					$	62,615	$	67,138
Other information related to leases:
Weighted average remaining lease term of operating leases					8.7 years		9.0 years
Weighted average discount rate of operating leases					2.95%		2.92%

 

At June 30, 2022, the maturities of the Company’s operating lease liabilities were as follows:

 

(In thousands)	Amount
Maturity:
Remaining 2022	$	5,734
2023	11,535
2024	9,643
2025	7,818
2026	7,048
Thereafter	30,615
Total undiscounted lease payments	72,393
Less: Present value discount	(9,778)
Lease liability	$	62,615

At June 30, 2022, the Company had no operating leases that have not yet commenced operations. The Company does not have any lease arrangements with any of its related parties as of June 30, 2022.

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DERIVATIVES	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES	DERIVATIVESThe Company has entered into interest rate swaps (“swaps”) to facilitate customer transactions and meet their financing needs. These swaps qualify as derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or customer owes the Company and results in credit risk to the Company. When the fair value of a derivative instrument contract is negative, the Company owes the customer or counterparty and, therefore, has no credit risk. The notional value of the swaps outstanding was $336.7 million as of June 30, 2022 compared to $396.3 million as of December 31, 2021. The fair values of swap positions net to zero to minimize the potential impact on the Company’s Condensed Consolidated Financial Statements. Fair values of the swaps are carried as both gross assets and gross liabilities in other assets and other liabilities, respectively, in the Condensed Consolidated Statements of Condition. The associated net gains and losses on the swaps are recorded in Other income in the Condensed Consolidated Statements of Income.

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LITIGATION	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
LITIGATION	LITIGATIONIn the ordinary course of business, the Company and its subsidiaries are subject to various pending or threatened legal proceedings in which claims for monetary damages are asserted. After consultation with legal counsel, management does not anticipate that the ultimate liability, if any, arising out of these legal matters will have a material adverse effect on the Company's financial condition, operating results or liquidity.

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FAIR VALUE

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

GAAP provides entities the option to measure eligible financial assets, financial liabilities and commitments at fair value (i.e. the fair value option), on an instrument-by-instrument basis, that are otherwise not permitted to be accounted for at fair value under other accounting standards. The election to use the fair value option is available when an entity first recognizes a financial asset or financial liability or upon entering into a commitment. Subsequent changes in fair value must be recorded in earnings. The Company applies the fair value option on residential mortgage loans held for sale. The fair value option on residential mortgage loans held for sale allows the recognition of gains on the sale of mortgage loans to more accurately reflect the timing and economics of the transaction.

The standard for fair value measurement establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below.

Basis of Fair Value Measurement:

Level 1- Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2- Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

Level 3- Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Changes to interest rates may result in changes in the cash flows due to prepayments or extinguishments. Accordingly, changes to interest rates could result in higher or lower measurements of the fair values.

Assets and Liabilities

Residential mortgage loans held for sale

Residential mortgage loans held for sale are valued based on quotations from the secondary market for similar instruments and are classified as Level 2 in the fair value hierarchy.

Investment securities available-for-sale

U.S. treasuries and government agencies securities and mortgage-backed and asset-backed securities

Valuations are based on active market data and use of evaluated broker pricing models that vary based by asset class and includes available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, descriptive terms, and databases coupled with extensive quality control programs. Quality control evaluation processes use available market, credit and deal level information to support the evaluation of the security. Additionally, proprietary models and pricing systems, mathematical tools, actual transacted prices, integration of market developments and experienced evaluators are used to determine the value of a security based on a hierarchy of market information regarding a security or securities with similar characteristics. The Company does not adjust the quoted price for such securities. Such instruments are classified within Level 2 in the fair value hierarchy.

State and municipal securities

The Company primarily uses prices obtained from third-party pricing services to determine the fair value of securities. The Company independently evaluates and corroborates the fair value received from pricing services through various methods and techniques, including references to dealer or other market quotes, by reviewing valuations of comparable instruments, and by comparing the prices realized on the sale of similar securities. Such securities are classified within Level 2 in the fair value hierarchy.

Interest rate swap agreements

Interest rate swap agreements are measured by alternative pricing sources using a discounted cash flow method that incorporates current market interest rates. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These characteristics classify interest rate swap agreements as Level 2 in the fair value hierarchy.

Assets Measured at Fair Value on a Recurring Basis

The following tables set forth the Company’s financial assets and liabilities at the dates indicated that were accounted for or disclosed at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	June 30, 2022
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Residential mortgage loans held for sale (1)	$	—	$	23,610	$	—	$	23,610
Available-for-sale debt securities:
U.S. treasuries and government agencies	—		101,410		—		101,410
State and municipal	—		299,222		—		299,222
Mortgage-backed and asset-backed	—		868,191		—		868,191
Total available-for-sale debt securities	—		1,268,823		—		1,268,823
Interest rate swap agreements	—		12,950		—		12,950
Total assets	$	—	$	1,305,383	$	—	$	1,305,383
Liabilities:
Interest rate swap agreements	$	—	$	(12,950)	$	—	$	(12,950)
Total liabilities	$	—	$	(12,950)	$	—	$	(12,950)

 (1) The outstanding principal balance for residential loans held for sale as of June 30, 2022 was $23.6 million.

	December 31, 2021
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Residential mortgage loans held for sale (1)	$	—	$	39,409	$	—	$	39,409
Investments available-for-sale:
U.S. treasuries and government agencies	—		68,539		—		68,539
State and municipal	—		326,402		—		326,402
Mortgage-backed and asset-backed	—		1,070,955		—		1,070,955
Total investments available-for-sale	—		1,465,896		—		1,465,896
Interest rate swap agreements	—		5,880		—		5,880
Total assets	$	—	$	1,511,185	$	—	$	1,511,185
Liabilities:
Interest rate swap agreements	$	—	$	(5,880)	$	—	$	(5,880)
Total liabilities	$	—	$	(5,880)	$	—	$	(5,880)

 (1) The outstanding principal balance for residential loans held for sale as of December 31, 2021 was $38.2 million.

Assets Measured at Fair Value on a Nonrecurring Basis

The following tables set forth the Company’s financial assets subject to fair value adjustments on a nonrecurring basis at the date indicated that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	June 30, 2022
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	204	$	204	$	(893)
Other real estate owned	—		—		739		739		(81)
Total	$	—	$	—	$	943	$	943	$	(974)

(1) Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

	December 31, 2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	404	$	404	$	(1,353)
Other real estate owned	—		—		1,034		1,034		(81)
Total	$	—	$	—	$	1,438	$	1,438	$	(1,434)

(1) Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

At June 30, 2022, loans totaling $30.5 million were written down to fair value of $24.3 million as a result of individual credit loss allowances of $6.2 million associated with the collateral dependent loans. Loans totaling $33.5 million were written down to fair value of $26.9 million at December 31, 2021 as a result of individual credit loss allowances of $6.6 million associated with the collateral dependent loans.

Fair value of the collateral dependent loans is measured based on the loan’s observable market price or the fair value of the collateral (less estimated selling costs). Collateral may be real estate and/or business assets such as equipment, inventory and/or accounts receivable. The value of business equipment, inventory and accounts receivable collateral is based on net book value on the business’ financial statements and, if necessary, discounted based on management’s review and analysis. Appraised and reported values may be discounted based on management’s historical experience, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional individual reserve and adjusted accordingly, based on the factors identified above.

OREO is adjusted to fair value upon acquisition of the real estate collateral. Subsequently, OREO is carried at the lower of carrying value or fair value. The estimated fair value for OREO included in Level 3 is determined by independent market based appraisals and other available market information, less costs to sell, that may be reduced further based on market expectations or an executed sales agreement. If the fair value of the collateral deteriorates subsequent to initial recognition, the Company records the OREO as a nonrecurring Level 3 adjustment. Valuation techniques are consistent with those techniques applied in prior periods.

Fair Value of Financial Instruments

The Company discloses fair value information, based on the exit price notion, of financial instruments that are not measured at fair value in the financial statements. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists.

Quoted market prices, where available, are shown as estimates of fair market values. Because no quoted market prices are available for a significant portion of the Company's financial instruments, the fair value of such instruments has been derived based on the amount and timing of future cash flows and estimated discount rates based on observable inputs (“Level 2”) or unobservable inputs (“Level 3”).

Present value techniques used in estimating the fair value of many of the Company's financial instruments are significantly affected by the assumptions used. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate cash settlement of the instrument. Additionally, the accompanying estimates of fair values are only representative of the fair values of the individual financial assets and liabilities, and should not be considered an indication of the fair value of the Company. Management utilizes internal models used in asset liability management to determine the fair values disclosed below. Other investments include FRB and FHLB stock, whose carrying amounts approximate fair values based on the redemption provisions of each entity.

The carrying amounts and fair values of the Company’s financial instruments at the dates indicated are presented in the following tables:

					Fair Value Measurements
	June 30, 2022				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	221,279	$	221,279	$	221,279	$	—	$	—
Residential mortgage loans held for sale	23,610		23,610		—		23,610		—
Available-for-sale debt securities	1,268,823		1,268,823		—		1,268,823		—
Held-to-maturity debt securities	274,337		250,915		—		250,915		—
Other investments	52,264		52,264		—		52,264		—
Loans, net of allowance	10,672,620		10,676,985		—		—		10,676,985
Interest rate swap agreements	12,950		12,950		—		12,950		—
Accrued interest receivable	33,459		33,459		33,459		—		—
Bank owned life insurance	151,371		151,371		—		151,371		—
Financial liabilities:
Time deposits	$	1,504,063	$	1,480,577	$	—	$	1,480,577	$	—
Other deposits	9,465,398		9,465,398		9,465,398		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	185,744		185,744		—		185,744		—
Advances from FHLB	175,000		174,966		—		174,966		—
Subordinated debt	369,906		336,830		—		—		336,830
Interest rate swap agreements	12,950		12,950		—		12,950		—
Accrued interest payable	4,266		4,266		4,266		—		—

					Fair Value Measurements
	December 31, 2021				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	420,020	$	420,020	$	420,020	$	—	$	—
Residential mortgage loans held for sale	39,409		39,409		—		39,409		—
Investments available-for-sale	1,465,896		1,465,896		—		1,465,896		—
Other investments	41,166		41,166		—		41,166		—
Loans, net of allowance	9,857,946		9,964,924		—		—		9,964,924
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest receivable	34,349		34,349		34,349		—		—
Bank owned life insurance	147,528		147,528		—		147,528		—
Financial liabilities:
Time deposits	$	1,290,862	$	1,292,598	$	—	$	1,292,598	$	—
Other deposits	9,333,869		9,333,869		9,333,869		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	141,086		141,086		—		141,086		—
Subordinated debt	172,712		175,780		—		—		175,780
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest payable	1,516		1,516		1,516		—		—

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SEGMENT REPORTING

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTINGCurrently, the Company conducts business in two operating segments - Community Banking and Investment Management. Each of the operating segments is a strategic business unit that offers different products and services. The Investment Management segment was a business acquired in a separate transaction where management of the acquired business was retained. The accounting policies of the segments are the same as those of the Company. However, the segment data reflects inter-segment transactions and balances.

The Community Banking segment is conducted through the Bank and involves delivering a broad range of financial products and services, including various loan and deposit products, to both individuals and businesses. Parent company income and assets are included in the Community Banking segment, as the majority of parent company functions are related to this segment. Major revenue sources include net interest income, gains on sales of mortgage loans, trust income fees, and service charges on deposit accounts. Expenses include personnel, occupancy, marketing, equipment, and other expenses. Non-cash charges associated with amortization of intangibles were $1.0 million and $1.2 million for the three months ended June 30, 2022 and 2021, respectively, and were $2.1 million and $2.4 million for the six months ended June 30, 2022 and 2021, respectively.

Prior to June 2022, the Company operated the Insurance segment through Sandy Spring Insurance Corporation, a subsidiary of the Bank. Effective June 1, 2022, the Company sold substantially all of the assets of the Sandy Spring Insurance Corporation to a leading global insurance brokerage and financial services firm. Results of operations of the Insurance segment for the three and six months ended June 30, 2022 are presented in the table below.

The Investment Management segment is conducted through West Financial and RPJ, subsidiaries of the Bank. These asset management and financial planning firms, located in McLean, Virginia and Falls Church, Virginia, respectively, provide comprehensive investment management and financial planning to individuals, families, small businesses and associations, including cash flow analysis, investment review, tax planning, retirement planning, insurance analysis and estate planning. West Financial and RPJ had approximately $3.4 billion in combined assets under management as of June 30, 2022. Major revenue sources include non-interest income earned on the above services. Expenses include personnel, occupancy, support charges, and other expenses. Non-cash charges associated with amortization of intangibles were $0.4 million and $0.5 million for the three months ended June 30, 2022 and 2021, respectively, and were $0.9 million and $0.9 million for the six months ended June 30, 2022 and 2021, respectively.

Information for the operating segments and reconciliation of the information to the Condensed Consolidated Financial Statements for the periods indicated are presented in the following tables:

	Three Months Ended June 30, 2022
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	113,908	$	1	$	3	$	(3)	$	113,909
Interest expense	7,962		—		—		(3)		7,959
Provision for credit losses	3,046		—		—		—		3,046
Non-interest income	24,658		17,513		5,556		(12,482)		35,245
Non-interest expense	59,123		2,387		3,685		(204)		64,991
Income before income taxes	68,435		15,127		1,874		(12,278)		73,158
Income tax expense	13,635		4,217		506		—		18,358
Net income	$	54,800	$	10,910	$	1,368	$	(12,278)	$	54,800
Assets	$	13,323,298	$	17,804	$	51,375	$	(89,468)	$	13,303,009

	Three Months Ended June 30, 2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	114,823	$	1	$	2	$	(3)	$	114,823
Interest expense	6,780		—		—		(3)		6,777
Provision/ (credit) for credit losses	(4,204)		—		—		—		(4,204)
Non-interest income	23,714		1,246		5,516		(4,217)		26,259
Non-interest expense	58,049		1,324		3,819		(217)		62,975
Income/ (loss) before income taxes	77,912		(77)		1,699		(4,000)		75,534
Income tax expense/ (benefit)	17,728		(21)		564		—		18,271
Net income/ (loss)	$	60,184	$	(56)	$	1,135	$	(4,000)	$	57,263
Assets	$	12,925,577	$	8,758	$	55,648	$	(64,406)	$	12,925,577

	Six Months Ended June 30, 2022
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	219,945	$	1	$	5	$	(6)	$	219,945
Interest expense	12,550		—		—		(6)		12,544
Provision for credit losses	4,681		—		—		—		4,681
Non-interest income	39,713		19,633		11,284		(14,790)		55,840
Non-interest expense	116,502		3,863		7,213		(440)		127,138
Income before income taxes	125,925		15,771		4,076		(14,350)		131,422
Income tax expense	27,190		4,397		1,100		—		32,687
Net income	$	98,735	$	11,374	$	2,976	$	(14,350)	$	98,735
Assets	$	13,323,298	$	17,804	$	51,375	$	(89,468)	$	13,303,009

	Six Months Ended June 30, 2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	229,084	$	2	$	4	$	(6)	$	229,084
Interest expense	16,444		—		—		(6)		16,438
Provision/ (credit) for credit losses	(38,912)		—		—		—		(38,912)
Non-interest income	45,439		3,397		10,723		(4,434)		55,125
Non-interest expense	121,744		2,811		7,027		(434)		131,148
Income before income taxes	175,247		588		3,700		(4,000)		175,535
Income tax expense	41,566		162		1,080		—		42,808
Net income	$	133,681	$	426	$	2,620	$	(4,000)	$	132,727
Assets	$	12,925,577	$	8,758	$	55,648	$	(64,406)	$	12,925,577

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations

Sandy Spring Bancorp, Inc. ("Bancorp" or, together with its subsidiaries, the "Company"), a Maryland corporation, is the bank holding company for Sandy Spring Bank (the “Bank”). Independent and community-oriented, the Bank offers a broad range of commercial banking, retail banking, mortgage services and trust services throughout central Maryland, Northern Virginia, and the greater Washington, D.C. market. The Bank also offers a comprehensive menu of wealth management services through its subsidiaries, West Financial Services, Inc. (“West Financial”) and Rembert Pendleton Jackson (“RPJ”).

Basis of Presentation

Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”), prevailing practices within the financial services industry for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, the interim financial statements do not include all of the information and notes required for complete financial statements. The following summary of significant accounting policies of the Company is presented to assist the reader in understanding the financial and other data presented in this report. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for any future periods or for the year ending December 31, 2022. In the opinion of management, all adjustments necessary for a fair presentation of the results of the interim periods have been included. The Company has evaluated subsequent events through the date of the issuance of its financial statements.

These statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s 2021 Annual Report on Form 10-K as filed with the Securities and Exchange Commission (“SEC”) on February 18, 2022. There have been no significant changes to any of the Company’s accounting policies as disclosed in the 2021 Annual Report on Form 10-K.

Principles of Consolidation

Principles of Consolidation

The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiary, Sandy Spring Bank, and its subsidiaries, West Financial and RPJ and former results of Sandy Spring Insurance Corporation. Consolidation has resulted in the elimination of all intercompany accounts and transactions. See Note 17 for more information on the Company’s segments and consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, in addition to affecting the reported amounts of revenues earned and expenses incurred during the reporting period. Actual results could differ from those estimates. Estimates that could change significantly relate to the provision for credit losses and the related allowance, potential impairment of goodwill or other intangible assets, valuation of investment securities and the determination of whether available-for-sale debt securities with fair values less than amortized costs are impaired and require an allowance for credit losses, valuation of other real estate owned, valuation of share based compensation, the assessment that a liability should be recognized with respect to any matters under litigation, the calculation of current and deferred income taxes, and the actuarial projections related to pension expense and the related liability.

Cash Flows

Cash Flows

For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, federal funds sold and interest-bearing deposits with banks (items with stated original maturity of three months or less).

Revenue from Contracts with Customers

Revenue from Contracts with Customers

The Company’s revenue includes net interest income on financial instruments and non-interest income. Specific categories of revenue are presented in the Condensed Consolidated Statements of Income. Most of the Company’s revenue is not within the scope of Accounting Standard Codification (“ASC”) 606 – Revenue from Contracts with Customers. For revenue within the scope of ASC 606, the Company provides services to customers and has related performance obligations. The revenue from such services is recognized upon satisfaction of all contractual performance obligations. The following discusses key revenue streams within the scope of this revenue recognition guidance.

Wealth Management Income

West Financial and RPJ provide comprehensive investment management and financial planning services. Wealth management income is comprised of income for providing trust, estate and investment management services. Trust services include acting as a trustee for corporate or personal trusts. Investment management services include investment management, record-keeping and reporting of security portfolios. Fees for these services are recognized based on a contractually-agreed fixed percentage applied to net assets under management at the end of each reporting period. The Company does not charge/recognize any performance-based fees.

Insurance Agency Commissions

Prior to the sale of its assets in June 2022, Sandy Spring Insurance Corporation performed the function of an insurance intermediary by introducing the policyholder and insurer and was compensated by a commission fee for placement of an insurance policy. Sandy Spring Insurance did not provide any captive management services or any claim handling services. Commission fees were set as a percentage of the premium for the insurance policy for which Sandy Spring Insurance was a producer. Sandy Spring Insurance recognized revenue when the insurance policy was contractually agreed to by the insurer and policyholder (at transaction date).

Service Charges on Deposit Accounts

Service charges on deposit accounts are earned on depository accounts for consumer and commercial account holders and include fees for account and overdraft services. Account services include fees for event-driven services and periodic account maintenance activities. An obligation for event-driven services is satisfied at the time of the event when service is delivered and revenue recognized as earned. Obligation for maintenance activities is satisfied over the course of each month and revenue is recognized at month end. The overdraft services obligation is satisfied at the time of the overdraft and revenue is recognized as earned.

Loan Financing Receivables

Loan Financing Receivables

The Company’s financing receivables consist primarily of loans that are stated at their principal balance outstanding, net of any unearned income, acquisition fair value marks and deferred loan origination fees and costs. Interest income on loans is accrued at the contractual rate based on the principal balance outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method.

Loans are considered past due or delinquent when the principal or interest due in accordance with the contractual terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Immaterial shortfalls in payment amounts do not necessarily result in a loan being considered delinquent or past due. If any payments are past due and subsequent payments are resumed without payment of the delinquent amount, the loan shall continue to be considered past due. Whenever any loan is reported delinquent on a principal or interest payment or portion thereof, the amount reported as delinquent is the outstanding principal balance of the loan.

Loans, except for consumer installment loans, are placed into non-accrual status when any portion of the loan principal or interest becomes 90 days past due. Management may determine that certain circumstances warrant earlier discontinuance of interest accruals on specific loans if an evaluation of other relevant factors (such as bankruptcy, interruption of cash flows, etc.) indicates collection of amounts contractually due is unlikely. These loans are considered, collectively, to be non-performing loans. Consumer installment loans that are not secured by real estate are not placed on non-accrual, but are charged down to their net realizable value when they are four months past due. Loans designated as non-accrual have all previously accrued but unpaid interest reversed. Interest income is not recognized on non-accrual loans. All payments received on non-accrual loans are applied using a cost-recovery method to reduce the outstanding principal balance until the loan returns to accrual status. Loans may be returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans considered to be TDRs are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured collateral-dependent loans are individually assessed for allowance for credit losses and may either be in accruing or non-accruing status. Non-accruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category if the borrower is no longer experiencing financial difficulty, a re-underwriting event took place, and the revised loan terms of the subsequent restructuring agreement are considered to be consistent with terms that can be obtained in the market for loans with comparable credit risk.

Allowance for Credit Losses

Allowance for Credit Losses

The allowance for credit losses (“allowance” or “ACL”) represents an amount which, in management's judgment, reflects the lifetime expected losses that may be sustained on outstanding loans at the balance sheet date based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions and prepayment experience. The allowance is measured and recorded upon the initial recognition of a financial asset. The allowance is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision or credit for credit losses, which is recorded as a current period expense.

Determination of the appropriateness of the allowance is inherently complex and requires the use of significant and highly subjective estimates. The reasonableness of the allowance is reviewed periodically by the Risk Committee of the Board of Directors and formally approved quarterly by that same committee of the Board.

The Company’s methodology for estimating the allowance includes: (1) a collective quantified reserve that reflects the Company’s historical default and loss experience adjusted for expected economic conditions throughout a reasonable and supportable period and the Company’s prepayment and curtailment rates; (2) collective qualitative factors that consider the expected impact of certain factors not fully captured in the collective quantified reserve, including concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, early delinquencies, and factors related to credit administration, including, among others, loan-to-value ratios, borrowers’ risk rating and credit score migrations; and (3) individual allowances on collateral-dependent loans where borrowers are experiencing financial difficulty or when the Company determines that the foreclosure is probable. The Company excludes accrued interest from the measurement of the allowance as the Company has a non-accrual policy to reverse any accrued, uncollected interest income as loans are moved to non-accrual status.

Loans are pooled into segments based on the similar risk characteristics of the underlying borrowers, in addition to consideration of collateral type, industry and business purpose of the loans. Portfolio segments used to estimate the allowance are the same as portfolio segments used for general credit risk management purposes. Refer to Note 5 for more details on the Company’s portfolio segments.

The Company applies two calculation methodologies to estimate the collective quantified component of the allowance: discounted cash flows method and weighted average remaining life method. Allowance estimates on commercial acquisition, development and construction (“AD&C”) and residential construction segments are based on the weighted average remaining life method. Allowance estimates on all other portfolio segments are based on the discounted cash flows method. Segments utilizing the discounted cash flows method are further sub-segmented into risk level pools, determined either by risk rating for commercial loans or Beacon Scores ranges for residential and consumer loans. To better manage risk and reasonably determine the sufficiency of reserves, this segregation allows the Company to monitor the allowance component applicable to higher risk loans separate from the remainder of the portfolio. Collective calculation methodologies utilize the Company’s historical default and loss experience adjusted for future economic forecasts. The reasonable and supportable forecast period represents a two-year economic outlook for the applicable economic variables. Following the end of the reasonable and supportable forecast period expected losses revert back to the historical mean over the next two years on a straight-line basis. Economic variables that have the most significant impact on the allowance include: unemployment rate, house price index and business bankruptcies. Contractual loan level cash flows within the discounted cash flows methodology are adjusted for the Company’s historical prepayment and curtailment rate experience.

The individual reserve assessment is applied to collateral dependent loans where borrowers are experiencing financial difficulty or when the Company determines that a foreclosure is probable. The determination of the fair value of the collateral depends on whether a repayment of the loan is expected to be from the sale or the operation of the collateral. When a repayment is expected from the operation of the collateral, the Company uses the present value of expected cash flows from the operation of the collateral as the fair value. When the repayment of the loan is expected from the sale of the collateral the fair value of the collateral is based on an observable market price or the collateral’s appraised value, less estimated costs to sell. Third party appraisals used in the individual reserve assessment are conducted at least annually with underlying assumptions that are reviewed by management. Third party appraisals may be obtained on a more frequent basis if deemed necessary. Internal evaluations of collateral value are conducted quarterly to ensure any further deterioration of the collateral value is recognized on a timely basis. During the individual reserve assessment, management also considers the potential future changes in the value of the collateral over the remainder of the loan’s remaining life. The Company may receive updated appraisals which contradict the preliminary determination of fair value used to establish an individual allowance on a loan. In these instances the individual allowance is adjusted to reflect the Company’s evaluation of the updated appraised fair value. In the event a loss was previously confirmed and the loan was charged down to the estimated fair value based on a previous appraisal, the balance of partially charged-off loans are not subsequently increased, but could be further decreased depending on the direction of the change in fair value. Payments on fully or partially charged-off loans are accounted for under the cost-recovery method. Under

this method, all payments received are applied on a cash basis to reduce the entire outstanding principal balance, then to recognize a recovery of all previously charged-off amounts before any interest income may be recognized. Based on the individual reserve assessment, if the Company determines that the fair value of the collateral is less than the amortized cost basis of the loan, an individual allowance will be established measured as the difference between the fair value of the collateral (less costs to sell) and the amortized cost basis of the loan. Once a loss has been confirmed, the loan is charged-down to its estimated fair value.

Large groups of smaller non-accrual homogeneous loans are not individually evaluated for allowance and include residential permanent and construction mortgages and consumer installment loans. These portfolios are reserved for on a collective basis using historical loss rates of similar loans over the weighted average life of each pool.

The Company reviews its unfunded commitments to determine if they are unconditionally cancellable by the Company. If the unfunded commitment is determined to not be unconditionally cancellable by the Company, a reserve for unfunded commitments is established. The reserve for unfunded commitments considers both the likelihood that the funding will occur and an estimate of expected credit losses over the life of the commitment.

Management believes it uses relevant information available to make determinations about the allowance and that it has established the existing allowance in accordance with GAAP. However, the determination of the allowance requires significant judgment, and estimates of expected lifetime losses in the loan portfolio can vary significantly from the amounts actually observed. While management uses available information to recognize expected losses, future additions to the allowance may be necessary based on changes in the loans comprising the portfolio, changes in the current and forecasted economic conditions, changes to the interest rate environment which may directly impact prepayment and curtailment rate assumptions, and changes in the financial condition of borrowers.

Held-to-maturity debt securities

Held-to-maturity debt securities

Debt securities that are purchased with the positive intent and ability to be held until their maturity are classified as held-to-maturity (“HTM”). HTM debt securities are recorded at cost adjusted for amortization of premiums and accretion of discounts. Transfers of debt securities from available-for-sale ("AFS") category to HTM category are made at fair value as of the transfer date. The unrealized gain or loss at the date of transfer continues to be reported in accumulated other comprehensive income and in the carrying amount of the HTM securities. Both amounts are amortized over the remaining life of the security as a yield adjustment in interest income and effectively offset each other.

Leases

Leases

The Company determines if an arrangement is a lease at inception. All of the Company’s leases are currently classified as operating leases and are included in other assets and other liabilities on the Company’s Condensed Consolidated Statements of Condition. Periodic operating lease costs are recorded in occupancy expenses of premises on the Company's Condensed Consolidated Statements of Income.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangements. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of the expected future lease payments over the remaining lease term. In determining the present value of future lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The operating ROU assets are adjusted for any lease payments made at or before the lease commencement date, initial direct costs, any lease incentives received and, for acquired leases, any favorable or unfavorable fair value adjustments. The present value of the lease liability may include the impact of options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options provided in the lease terms. Lease expense is recognized on a straight-line basis over the expected lease term. Lease agreements that include lease and non-lease components, such as common area maintenance charges, are accounted for separately.

Pending Accounting Pronouncements

Pending Accounting Pronouncements

In March 2020, the FASB released Accounting Standards Update (“ASU”) 2020-04 - Reference Rate Reform (Topic 848), which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of LIBOR likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022, and can be adopted at any time during this period. The Company has not yet fully adopted this standard. A cross-functional working group has been established to guide the Company’s transition from LIBOR to alternative reference rates. The Company has identified its products that are either directly or indirectly influenced by LIBOR and has implemented enhanced fallback language to

facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The Company stopped originating any new loans referencing LIBOR during 2021. Currently, the Company does not expect that the adoption of this standard will have a material impact on its Consolidated Financial Statements.

In March 2022, the FASB issued ASU 2022-02, which eliminates the accounting guidance on troubled debt restructurings (“TDR”) and amends the guidance on “vintage disclosures” to require disclosure of current period gross charge-offs by year of origination. The ASU also adds enhanced disclosures for creditors with respect to loan refinancing and restructurings for borrowers experiencing financial difficulty. The objective of the disclosures is to provide information about the type and magnitude of modifications and the degree of their success in mitigating potential credit losses. For entities that have adopted the guidance in ASC 326, the amendments are effective for fiscal years beginning after December 15, 2022, and interim periods therein. Early adoption of the amendments is permitted for entities that have adopted ASC 326, including adoption in an interim period. An entity may elect to early adopt the amendments related to TDRs separately from the amendments related to vintage disclosures. The Company is in process of reviewing the enhanced modification disclosure requirements.

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INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Estimated Fair Values of Investments

The amortized cost and estimated fair values of investments available-for-sale and held-to-maturity at the dates indicated are presented in the following table:

	June 30, 2022								December 31, 2021
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
U.S. treasuries and government agencies	$	106,551	$	—	$	(5,141)	$	101,410	$	68,487	$	202	$	(150)	$	68,539
State and municipal	346,087		75		(46,940)		299,222		323,286		6,561		(3,445)		326,402
Mortgage-backed and asset-backed	921,465		229		(53,503)		868,191		1,074,577		8,203		(11,825)		1,070,955
Total available-for-sale debt securities	$	1,374,103	$	304	$	(105,584)	$	1,268,823	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896
Held-to-maturity debt securities:
Mortgage-backed and asset-backed	274,337		—		(23,422)		250,915		—		—		—		—
Total held-to-maturity debt securities	$	274,337	$	—	$	(23,422)	$	250,915	$	—	$	—	$	—	$	—
Total debt securities	$	1,648,440	$	304	$	(129,006)	$	1,519,738	$	1,466,350	$	14,966	$	(15,420)	$	1,465,896

Schedule of Gross Unrealized Losses and Fair Value by Length of Time in Unrealized Loss Position

Gross unrealized losses and fair value by length of time that the individual available-for-sale debt securities have been in an unrealized loss position at the dates indicated are presented in the following tables:

	June 30, 2022
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	11	$	101,410	$	5,141	$	—	$	—	$	101,410	$	5,141
State and municipal	141	242,938		35,197		33,236		11,743		276,174		46,940
Mortgage-backed and asset-backed	292	813,563		50,790		23,203		2,713		836,766		53,503
Total	444	$	1,157,911	$	91,128	$	56,439	$	14,456	$	1,214,350	$	105,584

	December 31, 2021
	Number of Securities	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. treasuries and government agencies	5	$	49,695	$	150	$	—	$	—	$	49,695	$	150
State and municipal	32	63,206		2,288		21,740		1,157		84,946		3,445
Mortgage-backed and asset-backed	104	665,813		10,145		37,857		1,680		703,670		11,825
Total	141	$	778,714	$	12,583	$	59,597	$	2,837	$	838,311	$	15,420

Estimated fair values of debt securities by contractual maturity

The estimated fair values and amortized costs of available-for-sale and held-to-maturity debt securities by contractual maturity are provided in the following tables.

	June 30, 2022				December 31, 2021
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
Available-for-sale debt securities
U.S. treasuries and government agencies:
One year or less	$	5,990	$	5,999	$	12,029	$	11,995
One to five years	95,420		100,552		56,510		56,492
Five to ten years	—		—		—		—
After ten years	—		—		—		—
State and municipal:
One year or less	7,109		7,102		12,821		12,709
One to five years	66,673		67,846		27,408		26,637
Five to ten years	33,927		37,297		42,960		42,661
After ten years	191,513		233,842		243,213		241,279
Mortgage-backed and asset-backed:
One year or less	7,940		7,990		9,272		9,239
One to five years	19,923		20,319		14,752		14,575
Five to ten years	336,022		354,871		388,918		390,569
After ten years	504,306		538,285		658,013		660,194
Total available-for-sale debt securities	$	1,268,823	$	1,374,103	$	1,465,896	$	1,466,350

	June 30, 2022				December 31, 2021
(In thousands)	Fair Value		Amortized Cost		Fair Value		Amortized Cost
Held-to-maturity debt securities
Mortgage-backed and asset-backed:
One year or less	$	—	$	—	$	—	$	—
One to five years	—		—		—		—
Five to ten years	39,805		41,750		—		—
After ten years	211,110		232,587		—		—
Total held-to-maturity debt securities	$	250,915	$	274,337	$	—	$	—

Summary of Other Equity Securities

Other investments are presented in the following table:

(In thousands)	June 30, 2022		December 31, 2021
Federal Reserve Bank stock, at cost	$	38,731	$	34,097
Federal Home Loan Bank of Atlanta stock, at cost	12,856		6,392
Other	677		677
Other investments	$	52,264	$	41,166

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LOANS (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Loan Portfolio Segment Balances

The loan portfolio segment balances at the dates indicated are presented in the following table:

(In thousands)	June 30, 2022		December 31, 2021
Commercial real estate:
Commercial investor real estate	$	4,761,658	$	4,141,346
Commercial owner-occupied real estate	1,767,326		1,690,881
Commercial AD&C	1,094,528		1,088,094
Commercial business	1,353,380		1,481,834
Total commercial loans	8,976,892		8,402,155
Residential real estate:
Residential mortgage	1,147,577		937,570
Residential construction	235,486		197,652
Consumer	426,335		429,714
Total residential and consumer loans	1,809,398		1,564,936
Total loans	$	10,786,290	$	9,967,091

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CREDIT QUALITY ASSESSMENT (Tables)

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

Summary Information On The Allowance For Credit Loss Activity

Summary information on the allowance for credit loss activity for the period indicated is provided in the following table:

	Six Months Ended June 30,
(In thousands)	2022		2021
Balance at beginning of period	$	109,145	$	165,367
Provision/ (credit) for credit losses	4,681		(38,912)
Loan charge-offs	(762)		(3,485)
Loan recoveries	606		991
Net charge-offs	(156)		(2,494)
Balance at period end	$	113,670	$	123,961

Schedule of Collateral Dependent Loans Individually Evaluated for Credit Loss

The following table provides summary information regarding collateral dependent loans individually evaluated for credit loss at the dates indicated:

(In thousands)	June 30, 2022		December 31, 2021
Collateral dependent loans individually evaluated for credit loss with an allowance	$	8,797	$	9,510
Collateral dependent loans individually evaluated for credit loss without an allowance	21,676		24,024
Total individually evaluated collateral dependent loans	$	30,473	$	33,534
Allowance for credit losses related to loans evaluated individually	$	6,170	$	6,593
Allowance for credit losses related to loans evaluated collectively	107,500		102,552
Total allowance for credit losses	$	113,670	$	109,145

Activity in Allowance for Credit Losses or Loan and Lease Losses by Respective Loan Portfolio Segment

The following tables provide information on the activity in the allowance for credit losses by the respective loan portfolio segment for the period indicated:

 

	For the Six Months Ended June 30, 2022
	Commercial Real Estate												Residential Real Estate
(Dollars in thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance at beginning of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Provision/ (credit) for credit losses	11,186			(915)			(6,939)			(490)			1,981			88			(230)			4,681
Charge-offs	—			—			—			(507)			(131)			—			(124)			(762)
Recoveries	319			12			—			65			20			5			185			606
Net recoveries (charge-offs)	319			12			—			(442)			(111)			5			61			(156)
Balance at end of period	$	56,794		$	10,784		$	13,383		$	22,238		$	7,254		$	1,141		$	2,076		$	113,670
Total loans	$	4,761,658		$	1,767,326		$	1,094,528		$	1,353,380		$	1,147,577		$	235,486		$	426,335		$	10,786,290
Allowance for credit losses to total loans ratio	1.19		%	0.61		%	1.22		%	1.64		%	0.63		%	0.48		%	0.49		%	1.05		%
Average loans	$	4,367,400		$	1,705,562		$	1,099,498		$	1,353,446		$	1,017,741		$	209,264		$	422,929		$	10,175,840
Annualized net charge-offs/ (recoveries) to average loans	(0.01)		%	—		%	—		%	0.07		%	0.02		%	—		%	(0.03)		%	—		%
Balance of loans individually evaluated for credit loss	$	11,245		$	7,869		$	1,353		$	8,141		$	1,520		$	—		$	345		$	30,473
Allowance related to loans evaluated individually	$	134		$	76		$	504		$	5,456		$	—		$	—		$	—		$	6,170
Individual allowance to loans evaluated individually ratio	1.19		%	0.97		%	37.25		%	67.02		%	—		%	—		%	—		%	20.25		%
Balance of loans collectively evaluated for credit loss	$	4,750,413		$	1,759,457		$	1,093,175		$	1,345,239		$	1,146,057		$	235,486		$	425,990		$	10,755,817
Allowance related to loans evaluated collectively	$	56,660		$	10,708		$	12,879		$	16,782		$	7,254		$	1,141		$	2,076		$	107,500
Collective allowance to loans evaluated collectively ratio	1.19		%	0.61		%	1.18		%	1.25		%	0.63		%	0.48		%	0.49		%	1.00		%

	For the Year Ended December 31, 2021
	Commercial Real Estate												Residential Real Estate
(Dollars in thousands)	Commercial Investor R/E			Commercial Owner- Occupied R/E			Commercial AD&C			Commercial Business			Residential Mortgage			Residential Construction			Consumer			Total
Balance at beginning of period	$	57,404		$	20,061		$	22,157		$	46,806		$	11,295		$	1,502		$	6,142		$	165,367
Provision for credit losses	(6,598)			(8,238)			172			(20,132)			(6,321)			(459)			(3,980)			(45,556)
Charge-offs	(5,802)			(136)			(2,007)			(4,069)			—			—			(299)			(12,313)
Recoveries	285			—			—			565			410			5			382			1,647
Net recoveries (charge-offs)	(5,517)			(136)			(2,007)			(3,504)			410			5			83			(10,666)
Balance at end of period	$	45,289		$	11,687		$	20,322		$	23,170		$	5,384		$	1,048		$	2,245		$	109,145
Total loans	$	4,141,346		$	1,690,881		$	1,088,094		$	1,481,834		$	937,570		$	197,652		$	429,714		$	9,967,091
Allowance for credit losses to total loans ratio	1.09		%	0.69		%	1.87		%	1.56		%	0.57		%	0.53		%	0.52		%	1.10		%
Average loans	$	3,689,769		$	1,661,015		$	1,110,420		$	1,952,537		$	979,754		$	178,171		$	463,200		$	10,034,866
Net charge-offs/ (recoveries) to average loans	0.15		%	0.01		%	0.18		%	0.18		%	(0.04)		%	—		%	(0.02)		%	0.11		%
Balance of loans individually evaluated for credit loss	$	12,489		$	9,306		$	650		$	9,033		$	1,704		$	—		$	352		$	33,534
Allowance related to loans evaluated individually	$	213		$	79		$	504		$	5,797		$	—		$	—		$	—		$	6,593
Individual allowance to loans evaluated individually ratio	1.71		%	0.85		%	77.54		%	64.18		%	—		%	—		%	—		%	19.66		%
Balance of loans collectively evaluated for credit loss	$	4,128,857		$	1,681,575		$	1,087,444		$	1,472,801		$	935,866		$	197,652		$	429,362		$	9,933,557
Allowance related to loans evaluated collectively	$	45,076		$	11,608		$	19,818		$	17,373		$	5,384		$	1,048		$	2,245		$	102,552
Collective allowance to loans evaluated collectively ratio	1.09		%	0.69		%	1.82		%	1.18		%	0.58		%	0.53		%	0.52		%	1.03		%

Schedule Of Collateral Dependent Loans Individually Evaluated For Credit Loss With The Associated Allowances

The following tables present collateral dependent loans individually evaluated for credit loss with the associated allowances for credit losses by the applicable portfolio segment and for the periods indicated:

	June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Loans individually evaluated for credit loss with an allowance:
Non-accruing	$	554	$	76	$	1,353	$	4,071	$	—	$	—	$	—	$	6,054
Restructured accruing	—		—		—		599		—		—		—		599
Restructured non-accruing	—		—		—		2,144		—		—		—		2,144
Balance	$	554	$	76	$	1,353	$	6,814	$	—	$	—	$	—	$	8,797
Allowance	$	134	$	76	$	504	$	5,456	$	—	$	—	$	—	$	6,170
Loans individually evaluated for credit loss without an allowance:
Non-accruing	$	3,156	$	3,680	$	—	$	392	$	—	$	—	$	—	$	7,228
Restructured accruing	—		—		—		—		1,520		—		—		1,520
Restructured non-accruing	7,535		4,113		—		935		—		—		345		12,928
Balance	$	10,691	$	7,793	$	—	$	1,327	$	1,520	$	—	$	345	$	21,676
Total individually evaluated loans:
Non-accruing	$	3,710	$	3,756	$	1,353	$	4,463	$	—	$	—	$	—	$	13,282
Restructured accruing	—		—		—		599		1,520		—		—		2,119
Restructured non-accruing	7,535		4,113		—		3,079		—		—		345		15,072
Balance	$	11,245	$	7,869	$	1,353	$	8,141	$	1,520	$	—	$	345	$	30,473
Total unpaid contractual principal balance	$	11,938	$	9,255	$	1,398	$	9,698	$	1,963	$	—	$	364	$	34,616

	December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Loans individually evaluated for credit loss with an allowance:
Non-accruing	$	808	$	79	$	650	$	4,849	$	—	$	—	$	—	$	6,386
Restructured accruing	—		—		—		613		—		—		—		613
Restructured non-accruing	336		—		—		2,175		—		—		—		2,511
Balance	$	1,144	$	79	$	650	$	7,637	$	—	$	—	$	—	$	9,510
Allowance	$	213	$	79	$	504	$	5,797	$	—	$	—	$	—	$	6,593
Loans individually evaluated for credit loss without an allowance:
Non-accruing	$	3,498	$	4,775	$	—	$	434	$	—	$	—	$	—	$	8,707
Restructured accruing	—		—		—		—		1,554		—		—		1,554
Restructured non-accruing	7,847		4,452		—		962		150		—		352		13,763
Balance	$	11,345	$	9,227	$	—	$	1,396	$	1,704	$	—	$	352	$	24,024
Total individually evaluated loans:
Non-accruing	$	4,306	$	4,854	$	650	$	5,283	$	—	$	—	$	—	$	15,093
Restructured accruing	—		—		—		613		1,554		—		—		2,167
Restructured non-accruing	8,183		4,452		—		3,137		150		—		352		16,274
Balance	$	12,489	$	9,306	$	650	$	9,033	$	1,704	$	—	$	352	$	33,534
Total unpaid contractual principal balance	$	12,857	$	11,132	$	695	$	10,573	$	2,778	$	—	$	364	$	38,399

Table Of Average Principal Balance Of The Total Non-Accrual Loans and Contractual Interest Due

The following tables present average principal balance of total non-accrual loans and contractual interest due on non-accrual loans for the periods indicated below:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Average non-accrual loans for the period	$	11,826	$	8,419	$	1,028	$	8,106	$	7,965	$	36	$	6,274	$	43,654
Contractual interest income due on non- accrual loans during the period	$	358	$	271	$	27	$	287	$	193	$	1	$	182	$	1,319

	For the Year Ended December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Average non-accrual loans for the period	$	31,590	$	9,444	$	9,236	$	12,678	$	9,439	$	36	$	7,369	$	79,792
Contractual interest income due on non- accrual loans during the period	$	2,169	$	555	$	597	$	1,096	$	271	$	2	$	402	$	5,092

Schedule Of Information On The Credit Quality Of Loan Portfolio

The following section provides information on the credit quality of the loan portfolio for the periods indicated below:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086
Loans placed on non-accrual	—		453		—		1,011		861		—		126		2,451
Non-accrual balances transferred to OREO	—		—		—		—		—		—		—		—
Non-accrual balances charged-off	—		—		—		(480)		(132)		—		(29)		(641)
Net payments or draws	(1,244)		(1,890)		703		(1,409)		(1,251)		(54)		(876)		(6,021)
Non-accrual loans brought current	—		—		—		—		(614)		—		(254)		(868)
Balance at end of period	$	11,245	$	7,869	$	1,353	$	7,542	$	7,305	$	1	$	5,692	$	41,007

	For the Year Ended December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Analysis of non-accrual loan activity:
Balance at beginning of period	$	45,227	$	11,561	$	15,044	$	22,933	$	10,212	$	—	$	7,384	$	112,361
Loans placed on non-accrual	699		3,676		49		1,339		695		62		1,626		8,146
Non-accrual balances transferred to OREO	—		(257)		—		—		—		—		—		(257)
Non-accrual balances charged-off	(5,803)		(136)		(2,007)		(3,547)		—		—		(100)		(11,593)
Net payments or draws	(26,813)		(5,538)		(12,436)		(12,305)		(2,406)		(7)		(1,725)		(61,230)
Non-accrual loans brought current	(821)		—		—		—		(60)		—		(460)		(1,341)
Balance at end of period	$	12,489	$	9,306	$	650	$	8,420	$	8,441	$	55	$	6,725	$	46,086

Credit Quality of Loan Portfolio by Segment

	June 30, 2022
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,738,506	$	1,758,618	$	1,092,808	$	1,342,025	$	1,121,614	$	233,535	$	418,675	$	10,705,781
30-59 days	10,385		—		367		1,650		14,340		1,950		1,697		30,389
60-89 days	1,522		839		—		1,564		2,445		—		271		6,641
Total performing loans	4,750,413		1,759,457		1,093,175		1,345,239		1,138,399		235,485		420,643		10,742,811
Non-performing loans:
Non-accrual loans	11,245		7,869		1,353		7,542		7,305		1		5,692		41,007
Loans greater than 90 days past due	—		—		—		—		353		—		—		353
Restructured loans	—		—		—		599		1,520		—		—		2,119
Total non-performing loans	11,245		7,869		1,353		8,141		9,178		1		5,692		43,479
Total loans	$	4,761,658	$	1,767,326	$	1,094,528	$	1,353,380	$	1,147,577	$	235,486	$	426,335	$	10,786,290

	December 31, 2021
	Commercial Real Estate								Residential Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		Residential Mortgage		Residential Construction		Consumer		Total
Performing loans:
Current	$	4,127,009	$	1,680,635	$	1,085,642	$	1,471,669	$	919,199	$	197,597	$	419,558	$	9,901,309
30-59 days	1,656		86		1,802		753		5,157		—		3,021		12,475
60-89 days	192		854		—		379		2,662		—		410		4,497
Total performing loans	4,128,857		1,681,575		1,087,444		1,472,801		927,018		197,597		422,989		9,918,281
Non-performing loans:
Non-accrual loans	12,489		9,306		650		8,420		8,441		55		6,725		46,086
Loans greater than 90 days past due	—		—		—		—		557		—		—		557
Restructured loans	—		—		—		613		1,554		—		—		2,167
Total non-performing loans	12,489		9,306		650		9,033		10,552		55		6,725		48,810
Total loans	$	4,141,346	$	1,690,881	$	1,088,094	$	1,481,834	$	937,570	$	197,652	$	429,714	$	9,967,091

Information About Credit Quality Indicator By The Year Of Origination

The following table provides information about credit quality indicators by the year of origination as of June 30, 2022:

	June 30, 2022
	Term Loans by Origination Year												Revolving
(In thousands)	2022		2021		2020		2019		2018		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	995,886	$	1,297,680	$	689,736	$	553,310	$	336,603	$	824,334	$	14,181	$	4,711,730
Special Mention	—		17,343		501		95		582		6,182		—		24,703
Substandard	10,097		692		—		2,256		8,248		3,932		—		25,225
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,005,983	$	1,315,715	$	690,237	$	555,661	$	345,433	$	834,448	$	14,181	$	4,761,658
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Owner-Occupied R/E:
Pass	$	246,043	$	342,740	$	241,314	$	298,137	$	151,076	$	455,558	$	904	$	1,735,772
Special Mention	5,013		—		924		460		2,115		5,007		—		13,519
Substandard	1,399		1,981		790		7,999		2,532		3,334		—		18,035
Doubtful	—		—		—		—		—		—		—		—
Total	$	252,455	$	344,721	$	243,028	$	306,596	$	155,723	$	463,899	$	904	$	1,767,326
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial AD&C:
Pass	$	158,080	$	450,044	$	172,240	$	86,968	$	57,897	$	—	$	165,884	$	1,091,113
Special Mention	—		1,073		—		—		—		—		989		2,062
Substandard	—		1,051		—		302		—		—		—		1,353
Doubtful	—		—		—		—		—		—		—		—
Total	$	158,080	$	452,168	$	172,240	$	87,270	$	57,897	$	—	$	166,873	$	1,094,528
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial Business:
Pass	$	150,068	$	251,432	$	113,947	$	121,205	$	87,484	$	87,535	$	513,389	$	1,325,060
Special Mention	278		380		1,729		6,272		1,111		668		6,334		16,772
Substandard	600		3,190		1,480		2,273		73		2,060		1,872		11,548
Doubtful	—		—		—		—		—		—		—		—
Total	$	150,946	$	255,002	$	117,156	$	129,750	$	88,668	$	90,263	$	521,595	$	1,353,380
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	138	$	369	$	—	$	507
Residential Mortgage:
Beacon score:
660-850	$	243,623	$	264,572	$	164,442	$	45,352	$	57,946	$	287,215	$	—	$	1,063,150
600-659	3,254		4,263		3,538		3,501		6,329		25,672		—		46,557
540-599	241		1,858		1,111		1,585		2,965		7,587		—		15,347
less than 540	1,719		3,492		3,443		1,297		1,481		11,091		—		22,523
Total	$	248,837	$	274,185	$	172,534	$	51,735	$	68,721	$	331,565	$	—	$	1,147,577
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	131	$	—	$	131
Residential Construction:
Beacon score:
660-850	$	65,572	$	137,210	$	26,196	$	1,877	$	1,432	$	1,161	$	—	$	233,448
600-659	75		1,746		—		—		—		—		—		1,821
540-599	—		—		—		—		—		—		—		—
less than 540	217		—		—		—		—		—		—		217
Total	$	65,864	$	138,956	$	26,196	$	1,877	$	1,432	$	1,161	$	—	$	235,486
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	1,869	$	3,457	$	929	$	1,971	$	2,468	$	25,460	$	351,555	$	387,709
600-659	300		450		105		371		289		5,441		14,716		21,672
540-599	54		36		2		49		487		2,650		3,485		6,763
less than 540	278		77		42		482		291		3,409		5,612		10,191
Total	$	2,501	$	4,020	$	1,078	$	2,873	$	3,535	$	36,960	$	375,368	$	426,335
Current period gross charge-offs	$	—	$	5	$	5	$	—	$	10	$	14	$	90	$	124
Total loans	$	1,884,666	$	2,784,767	$	1,422,469	$	1,135,762	$	721,409	$	1,758,296	$	1,078,921	$	10,786,290

 The following table provides information about credit quality indicators by the year of origination as of December 31, 2021:

	December 31, 2021
	Term Loans by Origination Year												Revolving
(In thousands)	2021		2020		2019		2018		2017		Prior		Loans		Total
Commercial Investor R/E:
Pass	$	1,391,969	$	748,236	$	616,761	$	357,640	$	328,327	$	633,913	$	19,239	$	4,096,085
Special Mention	2,210		510		4,646		596		2,204		10,438		—		20,604
Substandard	807		336		4,308		8,568		10,064		574		—		24,657
Doubtful	—		—		—		—		—		—		—		—
Total	$	1,394,986	$	749,082	$	625,715	$	366,804	$	340,595	$	644,925	$	19,239	$	4,141,346
Current period gross charge-offs	$	—	$	—	$	—	$	903	$	3,975	$	924	$	—	$	5,802
Commercial Owner-Occupied R/E:
Pass	$	360,169	$	254,350	$	319,348	$	178,416	$	172,354	$	363,685	$	1,149	$	1,649,471
Special Mention	156		1,476		4,388		9,035		4,456		9,106		—		28,617
Substandard	1,968		1,800		4,028		2,265		354		2,378		—		12,793
Doubtful	—		—		—		—		—		—		—		—
Total	$	362,293	$	257,626	$	327,764	$	189,716	$	177,164	$	375,169	$	1,149	$	1,690,881
Current period gross charge-offs	$	—	$	—	$	—	$	136	$	—	$	—	$	—	$	136
Commercial AD&C:
Pass	$	454,207	$	226,332	$	148,260	$	87,934	$	13,938	$	—	$	152,896	$	1,083,567
Special Mention	2,888		—		—		—		—		—		989		3,877
Substandard	349		—		301		—		—		—		—		650
Doubtful	—		—		—		—		—		—		—		—
Total	$	457,444	$	226,332	$	148,561	$	87,934	$	13,938	$	—	$	153,885	$	1,088,094
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	2,007	$	—	$	—	$	2,007
Commercial Business:
Pass	$	403,871	$	165,194	$	137,069	$	96,800	$	55,100	$	53,764	$	533,893	$	1,445,691
Special Mention	220		1,998		7,030		1,701		548		577		9,212		21,286
Substandard	3,777		3,262		2,609		797		811		2,065		1,536		14,857
Doubtful	—		—		—		—		—		—		—		—
Total	$	407,868	$	170,454	$	146,708	$	99,298	$	56,459	$	56,406	$	544,641	$	1,481,834
Current period gross charge-offs	$	—	$	—	$	88	$	1,674	$	46	$	2,236	$	25	$	4,069
Residential Mortgage:
Beacon score:
660-850	$	246,612	$	165,623	$	46,925	$	65,865	$	102,628	$	223,420	$	—	$	851,073
600-659	11,102		3,285		3,583		4,255		4,645		20,052		—		46,922
540-599	1,472		1,864		2,162		4,522		1,599		8,201		—		19,820
less than 540	452		4,293		1,575		1,829		2,079		9,527		—		19,755
Total	$	259,638	$	175,065	$	54,245	$	76,471	$	110,951	$	261,200	$	—	$	937,570
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Residential Construction:
Beacon score:
660-850	$	134,335	$	45,890	$	8,063	$	2,078	$	1,347	$	1,160	$	—	$	192,873
600-659	1,922		—		650		—		—		—		—		2,572
540-599	—		—		—		—		—		462		—		462
less than 540	1,745		—		—		—		—		—		—		1,745
Total	$	138,002	$	45,890	$	8,713	$	2,078	$	1,347	$	1,622	$	—	$	197,652
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer:
Beacon score:
660-850	$	3,179	$	1,393	$	3,130	$	3,060	$	1,648	$	26,156	$	350,466	$	389,032
600-659	352		123		324		716		430		4,906		14,119		20,970
540-599	58		8		311		160		89		2,809		4,926		8,361
less than 540	88		58		536		544		98		3,101		6,926		11,351
Total	$	3,677	$	1,582	$	4,301	$	4,480	$	2,265	$	36,972	$	376,437	$	429,714
Current period gross charge-offs	$	—	$	—	$	7	$	2	$	—	$	106	$	184	$	299
Total loans	$	3,023,908	$	1,626,031	$	1,316,007	$	826,781	$	702,719	$	1,376,294	$	1,095,351	$	9,967,091

Restructured Loans for Specific Segments of Loan Portfolio

The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated:

	For the Six Months Ended June 30, 2022
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	32	$	—	$	32
Restructured non-accruing	—		—		—		173		—		173
Balance	$	—	$	—	$	—	$	205	$	—	$	205
Individual allowance	$	—	$	—	$	—	$	73	$	—	$	73
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

	For the Year Ended December 31, 2021
	Commercial Real Estate
(In thousands)	Commercial Investor R/E		Commercial Owner- Occupied R/E		Commercial AD&C		Commercial Business		All Other Loans		Total
Troubled debt restructurings:
Restructured accruing	$	—	$	—	$	—	$	—	$	—	$	—
Restructured non-accruing	9,594		3,157		—		1,824		—		14,575
Balance	$	9,594	$	3,157	$	—	$	1,824	$	—	$	14,575
Individual allowance	$	—	$	—	$	—	$	461	$	—	$	461
Restructured and subsequently defaulted	$	—	$	—	$	—	$	—	$	—	$	—

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Amount of Goodwill by Reportable Segment

The amount of goodwill by reportable segment is presented in the following table:

(In thousands)	Community Banking		Insurance		Investment Management		Total
Balances at December 31, 2021	$	331,689	$	6,788	$	31,747	$	370,223
Disposal of subsidiary's assets	—		(6,788)		—		(6,788)
Balances at June 30, 2022	$	331,689	$	—	$	31,747	$	363,436

Gross Carrying Amounts and Accumulated Amortization of Intangible Assets and Goodwill

The gross carrying amounts and accumulated amortization of intangible assets and goodwill are presented at the dates indicated in the following table:

	June 30, 2022						Weighted Average Remaining Life	December 31, 2021						Weighted Average Remaining Life
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount			Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Core deposit intangibles	$	29,038	$	(14,708)	$	14,330	6.9 years	$	29,038	$	(12,624)	$	16,414	7.4 years
Other identifiable intangibles	13,906		(5,542)		8,364		9.2 years	13,906		(4,400)		9,506		9.7 years
Total amortizing intangible assets	$	42,944	$	(20,250)	$	22,694		$	42,944	$	(17,024)	$	25,920
Goodwill	$	363,436			$	363,436		$	370,223			$	370,223

Estimated Future Amortization Expense for Amortizing Intangibles

The following table presents the estimated future amortization expense for amortizing intangible assets within the years ending December 31:

(In thousands)	Amount
Remaining 2022	$	2,840
2023	5,040
2024	4,290
2025	3,530
2026	2,702
Thereafter	4,292
Total amortizing intangible assets	$	22,694

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DEPOSITS (Tables)

6 Months Ended

Jun. 30, 2022

Deposits [Abstract]

Composition of Deposits

The following table presents the composition of deposits at the dates indicated:

(In thousands)	June 30, 2022		December 31, 2021
Noninterest-bearing deposits	$	4,129,440	$	3,779,630
Interest-bearing deposits:
Demand	1,590,484		1,604,714
Money market savings	3,185,150		3,415,663
Regular savings	560,324		533,862
Time deposits of less than $250,000	1,168,317		910,464
Time deposits of $250,000 or more	335,746		380,398
Total interest-bearing deposits	6,840,021		6,845,101
Total deposits	$	10,969,461	$	10,624,731

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BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Subordinated Borrowing

The following table provides information on subordinated debt as of the date indicated:

(In thousands)	June 30, 2022		December 31, 2021
Fixed to floating rate subordinated debt, 3.875%	$	200,000	$	—
Fixed to floating rate subordinated debt, 4.25%	175,000		175,000
Total subordinated debt	375,000		175,000
Less: Debt issuance costs	(5,094)		(2,288)
Long-term borrowings	$	369,906	$	172,712

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SHARE BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Activity for Company's Restricted Stock

A summary of the activity for the Company’s restricted stock, restricted stock units and performance share units for the period indicated is presented in the following table:

	Number of Common Shares/Units	Weighted Average Grant-Date Fair Value
Non-vested at January 1, 2022	390,520	$	32.67
Granted	167,411	$	45.02
Vested	(151,691)	$	32.64
Forfeited/ cancelled	(9,688)	$	36.86
Non-vested at June 30, 2022	396,552	$	37.38

Summary of Share Option Activity

A summary of share option activity for the period indicated is reflected in the following table:

	Number of Common Shares	Weighted Average Exercise Share Price		Weighted Average Contractual Remaining Life (Years)	Aggregate Intrinsic Value (in thousands)
Balance at January 1, 2022	159,741	$	17.18	2.4 years	$	5,264
Granted	—	$	—
Exercised	(10,361)	$	23.18		$	238
Forfeited	—	$	—
Expired	—	$	—
Balance at June 30, 2022	149,380	$	16.76	2.0 years	$	3,256
Exercisable at June 30, 2022	149,380	$	16.76	2.0 years	$	3,256

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PENSION PLAN (Tables)

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Net Periodic Benefit Cost

The components of net periodic benefit cost for the periods indicated are presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Interest cost on projected benefit obligation	$	326	$	318	$	651	$	636
Expected return on plan assets	(352)		(312)		(705)		(624)
Recognized net actuarial loss	195		227		391		454
Net periodic benefit cost	$	169	$	233	$	337	$	466

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NET INCOME PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Calculation of Net Income Per Common Share

The calculation of net income per common share for the periods indicated is presented in the following table:

	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars and amounts in thousands, except per share data)	2022		2021		2022		2021
Net income	$	54,800	$	57,263	$	98,735	$	132,727
Distributed and undistributed earnings allocated to         participating securities	(194)		(481)		(476)		(1,121)
Net income attributable to common shareholders	$	54,606	$	56,782	$	98,259	$	131,606
Total weighted average outstanding shares	45,184		47,689		45,303		47,610
Less: Weighted average participating securities	(160)		(401)		(221)		(406)
Basic weighted average common shares	45,024		47,288		45,082		47,204
Dilutive weighted average common stock equivalents	87		235		140		266
Diluted weighted average common shares	45,111		47,523		45,222		47,470
Basic net income per common share	$	1.21	$	1.20	$	2.18	$	2.79
Diluted net income per common share	$	1.21	$	1.19	$	2.17	$	2.77
Anti-dilutive shares	—		—		—		—

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Activity in Net Accumulated Other Comprehensive Income (Loss) and the Components of the Activity

The following table presents the activity in net accumulated other comprehensive income/ (loss) and the components of the activity for the periods indicated:

(In thousands)	Unrealized Gains/(Losses) on Debt Securities Available-for-Sale		Defined Benefit Pension Plan		Unrealized Losses on Debt Securities Transferred from Available-for-Sale to Held-to-Maturity		Total
Balance at January 1, 2022	$	(336)	$	(8,203)	$	—	$	(8,539)
Other comprehensive loss before reclassification from accumulated other comprehensive loss, net of tax	(77,922)		—		(12,083)		(90,005)
Reclassifications from accumulated other comprehensive loss to earnings, net of tax	(34)		291		834		1,091
Current period change in other comprehensive loss, net of tax	(77,956)		291		(11,249)		(88,914)
Balance at June 30, 2022	$	(78,292)	$	(7,912)	$	(11,249)	$	(97,453)

(In thousands)	Unrealized Gains/ (Losses) on Debt Securities Available-for-Sale		Defined Benefit Pension Plan		Total
Balance at January 1, 2021	$	28,175	$	(9,470)	$	18,705
Other comprehensive income before reclassification, net of tax	(14,108)		—		(14,108)
Reclassifications from accumulated other comprehensive income, net of tax	(96)		333		237
Current period change in other comprehensive income, net of tax	(14,204)		333		(13,871)
Balance at June 30, 2021	$	13,971	$	(9,137)	$	4,834

Schedule of Reclassification Adjustments Out of Accumulated Other Comprehensive Income (Loss)

The following table provides the information on the reclassification adjustments out of accumulated other comprehensive income/ (loss) for the periods indicated:

	Six Months Ended June 30,
(In thousands)	2022		2021
Unrealized gains on available-for-sale debt securities:
Affected line item in the Statements of Income:
Investment securities gains	$	46	$	129
Income before taxes	46		129
Tax expense	(12)		(33)
Net income	$	34	$	96
Amortization of unrealized losses on debt securities transferred from available-for-sale to held-to-maturity:
Affected line item in the Statements of Income:
Interest and dividends on investment securities (1)	$	(1,122)	$	—
Income before taxes	(1,122)		—
Tax benefit	288		—
Net loss	$	(834)	$	—
Amortization of defined benefit pension plan items:
Affected line item in the Statements of Income:
Recognized actuarial loss (2)	$	(391)	$	(454)
Loss before taxes	(391)		(454)
Tax benefit	100		121
Net loss	$	(291)	$	(333)

(1)Amortization of unrealized losses on held-to-maturity debt securities is fully offset by accretion of a discount on held-to-maturity debt securities with no overall impact on net income and yield.

(2)This amount is included in the computation of net periodic benefit cost. See Note 10 for additional information on the pension plan.

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LEASES (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Summary of Leases

The following table provides information regarding the Company's leases as of the dates indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Components of lease expense:
Operating lease cost (resulting from lease payments)	$	2,738	$	3,134	$	5,504	$	6,286
Supplemental cash flow information related to leases:
Operating cash flows from operating leases	$	2,893	$	3,274	$	5,832	$	6,554
ROU assets obtained in the exchange for lease liabilities due to:
New leases	$	—	$	—	$	—	$	803
Acquisitions	$	—	$	—	$	—	$	—
					June 30, 2022		December 31, 2021
Supplemental balance sheet information related to leases:
Operating lease ROU assets					$	53,796	$	57,872
Operating lease liabilities					$	62,615	$	67,138
Other information related to leases:
Weighted average remaining lease term of operating leases					8.7 years		9.0 years
Weighted average discount rate of operating leases					2.95%		2.92%

Maturities of operating lease liabilities

At June 30, 2022, the maturities of the Company’s operating lease liabilities were as follows:

 

(In thousands)	Amount
Maturity:
Remaining 2022	$	5,734
2023	11,535
2024	9,643
2025	7,818
2026	7,048
Thereafter	30,615
Total undiscounted lease payments	72,393
Less: Present value discount	(9,778)
Lease liability	$	62,615

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FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities at Dates Indicated that were Accounted for at Fair Value

The following tables set forth the Company’s financial assets and liabilities at the dates indicated that were accounted for or disclosed at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	June 30, 2022
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Residential mortgage loans held for sale (1)	$	—	$	23,610	$	—	$	23,610
Available-for-sale debt securities:
U.S. treasuries and government agencies	—		101,410		—		101,410
State and municipal	—		299,222		—		299,222
Mortgage-backed and asset-backed	—		868,191		—		868,191
Total available-for-sale debt securities	—		1,268,823		—		1,268,823
Interest rate swap agreements	—		12,950		—		12,950
Total assets	$	—	$	1,305,383	$	—	$	1,305,383
Liabilities:
Interest rate swap agreements	$	—	$	(12,950)	$	—	$	(12,950)
Total liabilities	$	—	$	(12,950)	$	—	$	(12,950)

 (1) The outstanding principal balance for residential loans held for sale as of June 30, 2022 was $23.6 million.

	December 31, 2021
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Total
Assets:
Residential mortgage loans held for sale (1)	$	—	$	39,409	$	—	$	39,409
Investments available-for-sale:
U.S. treasuries and government agencies	—		68,539		—		68,539
State and municipal	—		326,402		—		326,402
Mortgage-backed and asset-backed	—		1,070,955		—		1,070,955
Total investments available-for-sale	—		1,465,896		—		1,465,896
Interest rate swap agreements	—		5,880		—		5,880
Total assets	$	—	$	1,511,185	$	—	$	1,511,185
Liabilities:
Interest rate swap agreements	$	—	$	(5,880)	$	—	$	(5,880)
Total liabilities	$	—	$	(5,880)	$	—	$	(5,880)

 (1) The outstanding principal balance for residential loans held for sale as of December 31, 2021 was $38.2 million.

Assets Measured at Fair Value on Nonrecurring Basis

The following tables set forth the Company’s financial assets subject to fair value adjustments on a nonrecurring basis at the date indicated that are valued at the lower of cost or market. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

	June 30, 2022
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	204	$	204	$	(893)
Other real estate owned	—		—		739		739		(81)
Total	$	—	$	—	$	943	$	943	$	(974)

(1) Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

	December 31, 2021
(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Total Losses
Loans (1)	$	—	$	—	$	404	$	404	$	(1,353)
Other real estate owned	—		—		1,034		1,034		(81)
Total	$	—	$	—	$	1,438	$	1,438	$	(1,434)

(1) Amounts represent the fair value of collateral for collateral dependent non-accrual loans allocated to the allowance for credit losses. Fair values are determined using actual market prices (Level 2), independent third party valuations and borrower records, discounted as appropriate (Level 3).

Carrying Amounts And Fair Values of Company's Financial Instruments

The carrying amounts and fair values of the Company’s financial instruments at the dates indicated are presented in the following tables:

					Fair Value Measurements
	June 30, 2022				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	221,279	$	221,279	$	221,279	$	—	$	—
Residential mortgage loans held for sale	23,610		23,610		—		23,610		—
Available-for-sale debt securities	1,268,823		1,268,823		—		1,268,823		—
Held-to-maturity debt securities	274,337		250,915		—		250,915		—
Other investments	52,264		52,264		—		52,264		—
Loans, net of allowance	10,672,620		10,676,985		—		—		10,676,985
Interest rate swap agreements	12,950		12,950		—		12,950		—
Accrued interest receivable	33,459		33,459		33,459		—		—
Bank owned life insurance	151,371		151,371		—		151,371		—
Financial liabilities:
Time deposits	$	1,504,063	$	1,480,577	$	—	$	1,480,577	$	—
Other deposits	9,465,398		9,465,398		9,465,398		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	185,744		185,744		—		185,744		—
Advances from FHLB	175,000		174,966		—		174,966		—
Subordinated debt	369,906		336,830		—		—		336,830
Interest rate swap agreements	12,950		12,950		—		12,950		—
Accrued interest payable	4,266		4,266		4,266		—		—

					Fair Value Measurements
	December 31, 2021				Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(In thousands)	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	420,020	$	420,020	$	420,020	$	—	$	—
Residential mortgage loans held for sale	39,409		39,409		—		39,409		—
Investments available-for-sale	1,465,896		1,465,896		—		1,465,896		—
Other investments	41,166		41,166		—		41,166		—
Loans, net of allowance	9,857,946		9,964,924		—		—		9,964,924
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest receivable	34,349		34,349		34,349		—		—
Bank owned life insurance	147,528		147,528		—		147,528		—
Financial liabilities:
Time deposits	$	1,290,862	$	1,292,598	$	—	$	1,292,598	$	—
Other deposits	9,333,869		9,333,869		9,333,869		—		—
Securities sold under retail repurchase agreements and
federal funds purchased	141,086		141,086		—		141,086		—
Subordinated debt	172,712		175,780		—		—		175,780
Interest rate swap agreements	5,880		5,880		—		5,880		—
Accrued interest payable	1,516		1,516		1,516		—		—

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SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Operating Segments and Reconciliation of Information to Consolidated Financial Statements

Information for the operating segments and reconciliation of the information to the Condensed Consolidated Financial Statements for the periods indicated are presented in the following tables:

	Three Months Ended June 30, 2022
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	113,908	$	1	$	3	$	(3)	$	113,909
Interest expense	7,962		—		—		(3)		7,959
Provision for credit losses	3,046		—		—		—		3,046
Non-interest income	24,658		17,513		5,556		(12,482)		35,245
Non-interest expense	59,123		2,387		3,685		(204)		64,991
Income before income taxes	68,435		15,127		1,874		(12,278)		73,158
Income tax expense	13,635		4,217		506		—		18,358
Net income	$	54,800	$	10,910	$	1,368	$	(12,278)	$	54,800
Assets	$	13,323,298	$	17,804	$	51,375	$	(89,468)	$	13,303,009

	Three Months Ended June 30, 2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	114,823	$	1	$	2	$	(3)	$	114,823
Interest expense	6,780		—		—		(3)		6,777
Provision/ (credit) for credit losses	(4,204)		—		—		—		(4,204)
Non-interest income	23,714		1,246		5,516		(4,217)		26,259
Non-interest expense	58,049		1,324		3,819		(217)		62,975
Income/ (loss) before income taxes	77,912		(77)		1,699		(4,000)		75,534
Income tax expense/ (benefit)	17,728		(21)		564		—		18,271
Net income/ (loss)	$	60,184	$	(56)	$	1,135	$	(4,000)	$	57,263
Assets	$	12,925,577	$	8,758	$	55,648	$	(64,406)	$	12,925,577

	Six Months Ended June 30, 2022
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	219,945	$	1	$	5	$	(6)	$	219,945
Interest expense	12,550		—		—		(6)		12,544
Provision for credit losses	4,681		—		—		—		4,681
Non-interest income	39,713		19,633		11,284		(14,790)		55,840
Non-interest expense	116,502		3,863		7,213		(440)		127,138
Income before income taxes	125,925		15,771		4,076		(14,350)		131,422
Income tax expense	27,190		4,397		1,100		—		32,687
Net income	$	98,735	$	11,374	$	2,976	$	(14,350)	$	98,735
Assets	$	13,323,298	$	17,804	$	51,375	$	(89,468)	$	13,303,009

	Six Months Ended June 30, 2021
(In thousands)	Community Banking		Insurance		Investment Management		Inter-Segment Elimination		Total
Interest income	$	229,084	$	2	$	4	$	(6)	$	229,084
Interest expense	16,444		—		—		(6)		16,438
Provision/ (credit) for credit losses	(38,912)		—		—		—		(38,912)
Non-interest income	45,439		3,397		10,723		(4,434)		55,125
Non-interest expense	121,744		2,811		7,027		(434)		131,148
Income before income taxes	175,247		588		3,700		(4,000)		175,535
Income tax expense	41,566		162		1,080		—		42,808
Net income	$	133,681	$	426	$	2,620	$	(4,000)	$	132,727
Assets	$	12,925,577	$	8,758	$	55,648	$	(64,406)	$	12,925,577

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INVESTMENTS - Narrative (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Separate Account Investment [Line Items]
Amortized cost of debt securities transferred to held-to-maturity	$ 305,600	$ 305,600
Fair value of debt securities transferred to held-to-maturity	289,400
Unrealized losses on debt securities transferred to held-to-maturity	16,200
Book value of debt securities pledged as collateral	1,648,440		$ 1,466,350
Asset pledged as collateral | Deposits
Fair Value, Separate Account Investment [Line Items]
Book value of debt securities pledged as collateral	539,600		$ 531,600
Government National Mortgage Association Certificates And Obligations Federal National Mortgage Association Certificates And Obligations And Federal Home Loan Mortgage Corporation Certificates And Obligations | Collateralized Mortgage Obligations
Fair Value, Separate Account Investment [Line Items]
Mortgage-backed securities	453,400
Government National Mortgage Association Certificates And Obligations Federal National Mortgage Association Certificates And Obligations And Federal Home Loan Mortgage Corporation Certificates And Obligations | Collateralized Mortgage Backed Securities
Fair Value, Separate Account Investment [Line Items]
Mortgage-backed securities	695,400
Government National Mortgage Association Certificates And Obligations Federal National Mortgage Association Certificates And Obligations And Federal Home Loan Mortgage Corporation Certificates And Obligations | SBA asset backed securities
Fair Value, Separate Account Investment [Line Items]
Mortgage-backed securities	$ 47,000

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INVESTMENTS - Amortized Cost and Estimated Fair Values of Investments (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Available-for-sale debt securities:
Total available-for-sale debt securities	$ 1,374,103	$ 1,466,350
Gross Unrealized Gains	304	14,966
Gross Unrealized Losses	(105,584)	(15,420)
Investments available-for-sale	1,268,823	1,465,896
Held-to-maturity debt securities:
Total held-to-maturity debt securities	274,337	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(23,422)	0
Total held-to-maturity debt securities	250,915	0
Total debt securities
Amortized Cost	1,648,440	1,466,350
Gross Unrealized Gains	304	14,966
Gross Unrealized Losses	(129,006)	(15,420)
Estimated Fair Value	1,519,738	1,465,896
Investments held-to-maturity, at cost (fair value of $250,915)	274,337	0
U.S. treasuries and government agencies
Available-for-sale debt securities:
Total available-for-sale debt securities	106,551	68,487
Gross Unrealized Gains	0	202
Gross Unrealized Losses	(5,141)	(150)
Investments available-for-sale	101,410	68,539
State and municipal
Available-for-sale debt securities:
Total available-for-sale debt securities	346,087	323,286
Gross Unrealized Gains	75	6,561
Gross Unrealized Losses	(46,940)	(3,445)
Investments available-for-sale	299,222	326,402
Mortgage-backed and asset-backed
Available-for-sale debt securities:
Total available-for-sale debt securities	921,465	1,074,577
Gross Unrealized Gains	229	8,203
Gross Unrealized Losses	(53,503)	(11,825)
Investments available-for-sale	868,191	1,070,955
Held-to-maturity debt securities:
Total held-to-maturity debt securities	274,337	0
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(23,422)	0
Total held-to-maturity debt securities	250,915	0
Total debt securities
Investments held-to-maturity, at cost (fair value of $250,915)	$ 274,337	$ 0

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INVESTMENTS - Gross Unrealized Losses and Fair Value by Length of Time in Unrealized Loss Position (Detail) $ in Thousands	Jun. 30, 2022 USD ($) security	Dec. 31, 2021 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Number of Securities | security	444	141
Fair Value
Less Than 12 Months	$ 1,157,911	$ 778,714
12 Months or More	56,439	59,597
Total	1,214,350	838,311
Unrealized Losses
Less Than 12 Months	91,128	12,583
12 Months or More	14,456	2,837
Total	$ 105,584	$ 15,420
U.S. treasuries and government agencies
Debt Securities, Available-for-sale [Line Items]
Number of Securities | security	11	5
Fair Value
Less Than 12 Months	$ 101,410	$ 49,695
12 Months or More	0	0
Total	101,410	49,695
Unrealized Losses
Less Than 12 Months	5,141	150
12 Months or More	0	0
Total	$ 5,141	$ 150
State and municipal
Debt Securities, Available-for-sale [Line Items]
Number of Securities | security	141	32
Fair Value
Less Than 12 Months	$ 242,938	$ 63,206
12 Months or More	33,236	21,740
Total	276,174	84,946
Unrealized Losses
Less Than 12 Months	35,197	2,288
12 Months or More	11,743	1,157
Total	$ 46,940	$ 3,445
Mortgage-backed and asset-backed
Debt Securities, Available-for-sale [Line Items]
Number of Securities | security	292	104
Fair Value
Less Than 12 Months	$ 813,563	$ 665,813
12 Months or More	23,203	37,857
Total	836,766	703,670
Unrealized Losses
Less Than 12 Months	50,790	10,145
12 Months or More	2,713	1,680
Total	$ 53,503	$ 11,825

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INVESTMENTS - Estimated fair values of debt securities by contractual maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value
Total available-for-sale debt securities	$ 1,268,823	$ 1,465,896
Amortized Cost
Total available-for-sale debt securities	1,374,103	1,466,350
Fair Value
Total held-to-maturity debt securities	250,915	0
Amortized Cost
Total held-to-maturity debt securities	274,337	0
U.S. treasuries and government agencies
Fair Value
One year or less	5,990	12,029
One to five years	95,420	56,510
Five to ten years	0	0
After ten years	0	0
Total available-for-sale debt securities	101,410	68,539
Amortized Cost
One year or less	5,999	11,995
One to five years	100,552	56,492
Five to ten years	0	0
After ten years	0	0
Total available-for-sale debt securities	106,551	68,487
State and municipal
Fair Value
One year or less	7,109	12,821
One to five years	66,673	27,408
Five to ten years	33,927	42,960
After ten years	191,513	243,213
Total available-for-sale debt securities	299,222	326,402
Amortized Cost
One year or less	7,102	12,709
One to five years	67,846	26,637
Five to ten years	37,297	42,661
After ten years	233,842	241,279
Total available-for-sale debt securities	346,087	323,286
Mortgage-backed and asset-backed
Fair Value
One year or less	7,940	9,272
One to five years	19,923	14,752
Five to ten years	336,022	388,918
After ten years	504,306	658,013
Total available-for-sale debt securities	868,191	1,070,955
Amortized Cost
One year or less	7,990	9,239
One to five years	20,319	14,575
Five to ten years	354,871	390,569
After ten years	538,285	660,194
Total available-for-sale debt securities	921,465	1,074,577
Fair Value
One year or less	0	0
One to five years	0	0
Five to ten years	39,805	0
After ten years	211,110	0
Total held-to-maturity debt securities	250,915	0
Amortized Cost
One year or less	0	0
One to five years	0	0
Five to ten years	41,750	0
After ten years	232,587	0
Total held-to-maturity debt securities	$ 274,337	$ 0

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INVESTMENTS - Other Equity Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Federal Home Loan Bank Stock and Federal Reserve Bank Stock [Abstract]
Federal Reserve Bank stock, at cost	$ 38,731	$ 34,097
Federal Home Loan Bank of Atlanta stock, at cost	12,856	6,392
Other	677	677
Other investments	$ 52,264	$ 41,166

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LOANS - Narrative (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Net deferred loan fees	$ 10.7	$ 14.3
Paycheck Protection Program
Loans and Leases Receivable Disclosure [Line Items]
Net deferred loan fees	$ 0.6	$ 4.6

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LOANS - Loan Portfolio Segment Balances (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 10,786,290	$ 9,967,091
Commercial investor real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,761,658	4,141,346
Commercial owner-occupied real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,767,326	1,690,881
Commercial AD&C
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,094,528	1,088,094
Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,147,577	937,570
Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	235,486	197,652
Commercial real estate: | Commercial investor real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,761,658	4,141,346
Commercial real estate: | Commercial owner-occupied real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,767,326	1,690,881
Commercial real estate: | Commercial AD&C
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,094,528	1,088,094
Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,976,892	8,402,155
Commercial business | Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,353,380	1,481,834
Residential real estate: | Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,147,577	937,570
Residential real estate: | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	235,486	197,652
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	426,335	429,714
Total residential and consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,809,398	$ 1,564,936

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CREDIT QUALITY ASSESSMENT - Allowance for Credit Loss Activity (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 109,145	$ 165,367	$ 165,367
Provision/ (credit) for credit losses	$ 3,046	$ (4,204)	4,681	(38,912)	(45,556)
Loan charge-offs			(762)	(3,485)	(12,313)
Loan recoveries			606	991	1,647
Net recoveries (charge-offs)			(156)	(2,494)	(10,666)
Balance at period end	$ 113,670	$ 123,961	$ 113,670	$ 123,961	$ 109,145

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CREDIT QUALITY ASSESSMENT - Collateral Dependent Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Credit Loss [Abstract]
Collateral dependent loans individually evaluated for credit loss with an allowance	$ 8,797	$ 9,510
Collateral dependent loans individually evaluated for credit loss without an allowance	21,676	24,024
Total individually evaluated collateral dependent loans	30,473	33,534
Allowance for credit losses related to loans evaluated individually	6,170	6,593
Allowance for credit losses related to loans evaluated collectively	107,500	102,552
Total allowance for credit losses	$ 113,670	$ 109,145	$ 123,961	$ 165,367

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CREDIT QUALITY ASSESSMENT - Allowance for Credit or Loan Losses by Respective Loan Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 109,145	$ 165,367	$ 165,367
Provision/ (credit) for credit losses	$ 3,046	$ (4,204)	4,681	(38,912)	(45,556)
Charge-offs			(762)	(3,485)	(12,313)
Recoveries			606	991	1,647
Net recoveries (charge-offs)			156	2,494	10,666
Balance at period end	113,670	$ 123,961	113,670	123,961	109,145
Total loans	$ 10,786,290		$ 10,786,290		$ 9,967,091
Allowance for credit losses to total loans ratio	1.05%		1.05%		1.10%
Average loans			$ 10,175,840		$ 10,034,866
Annualized net charge-offs/ (recoveries) to average loans			0.00%		0.11%
Balance of loans individually evaluated for credit loss	$ 30,473		$ 30,473		$ 33,534
Allowance related to loans evaluated individually	$ 6,170		$ 6,170		$ 6,593
Individual allowance to loans evaluated individually ratio	20.25%		20.25%		19.66%
Balance of loans collectively evaluated for credit loss	$ 10,755,817		$ 10,755,817		$ 9,933,557
Allowance related to loans evaluated collectively	$ 107,500		$ 107,500		$ 102,552
Collective allowance to loans evaluated collectively ratio	1.00%		1.00%		1.03%
Commercial investor real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			$ 0		$ (5,802)
Total loans	$ 4,761,658		4,761,658		4,141,346
Commercial owner-occupied real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			0		(136)
Total loans	1,767,326		1,767,326		1,690,881
Commercial AD&C
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			0		(2,007)
Total loans	1,094,528		1,094,528		1,088,094
Residential mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			(131)		0
Total loans	1,147,577		1,147,577		937,570
Residential construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Charge-offs			0		0
Total loans	235,486		235,486		197,652
Commercial real estate: | Commercial investor real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			45,289	57,404	57,404
Provision/ (credit) for credit losses			11,186		(6,598)
Charge-offs			0		(5,802)
Recoveries			319		285
Net recoveries (charge-offs)			(319)		5,517
Balance at period end	56,794		56,794		45,289
Total loans	$ 4,761,658		$ 4,761,658		$ 4,141,346
Allowance for credit losses to total loans ratio	1.19%		1.19%		1.09%
Average loans			$ 4,367,400		$ 3,689,769
Annualized net charge-offs/ (recoveries) to average loans			(0.01%)		0.15%
Balance of loans individually evaluated for credit loss	$ 11,245		$ 11,245		$ 12,489
Allowance related to loans evaluated individually	$ 134		$ 134		$ 213
Individual allowance to loans evaluated individually ratio	1.19%		1.19%		1.71%
Balance of loans collectively evaluated for credit loss	$ 4,750,413		$ 4,750,413		$ 4,128,857
Allowance related to loans evaluated collectively	$ 56,660		$ 56,660		$ 45,076
Collective allowance to loans evaluated collectively ratio	1.19%		1.19%		1.09%
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 11,687	20,061	$ 20,061
Provision/ (credit) for credit losses			(915)		(8,238)
Charge-offs			0		(136)
Recoveries			12		0
Net recoveries (charge-offs)			(12)		136
Balance at period end	$ 10,784		10,784		11,687
Total loans	$ 1,767,326		$ 1,767,326		$ 1,690,881
Allowance for credit losses to total loans ratio	0.61%		0.61%		0.69%
Average loans			$ 1,705,562		$ 1,661,015
Annualized net charge-offs/ (recoveries) to average loans			0.00%		0.01%
Balance of loans individually evaluated for credit loss	$ 7,869		$ 7,869		$ 9,306
Allowance related to loans evaluated individually	$ 76		$ 76		$ 79
Individual allowance to loans evaluated individually ratio	0.97%		0.97%		0.85%
Balance of loans collectively evaluated for credit loss	$ 1,759,457		$ 1,759,457		$ 1,681,575
Allowance related to loans evaluated collectively	$ 10,708		$ 10,708		$ 11,608
Collective allowance to loans evaluated collectively ratio	0.61%		0.61%		0.69%
Commercial real estate: | Commercial AD&C
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 20,322	22,157	$ 22,157
Provision/ (credit) for credit losses			(6,939)		172
Charge-offs			0		(2,007)
Recoveries			0		0
Net recoveries (charge-offs)			0		2,007
Balance at period end	$ 13,383		13,383		20,322
Total loans	$ 1,094,528		$ 1,094,528		$ 1,088,094
Allowance for credit losses to total loans ratio	1.22%		1.22%		1.87%
Average loans			$ 1,099,498		$ 1,110,420
Annualized net charge-offs/ (recoveries) to average loans			0.00%		0.18%
Balance of loans individually evaluated for credit loss	$ 1,353		$ 1,353		$ 650
Allowance related to loans evaluated individually	$ 504		$ 504		$ 504
Individual allowance to loans evaluated individually ratio	37.25%		37.25%		77.54%
Balance of loans collectively evaluated for credit loss	$ 1,093,175		$ 1,093,175		$ 1,087,444
Allowance related to loans evaluated collectively	$ 12,879		$ 12,879		$ 19,818
Collective allowance to loans evaluated collectively ratio	1.18%		1.18%		1.82%
Commercial Business
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Total loans	$ 8,976,892		$ 8,976,892		$ 8,402,155
Balance of loans individually evaluated for credit loss	8,141		8,141		9,033
Allowance related to loans evaluated individually	5,456		5,456		5,797
Commercial Business | Commercial business
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			23,170	46,806	46,806
Provision/ (credit) for credit losses			(490)		(20,132)
Charge-offs			(507)		(4,069)
Recoveries			65		565
Net recoveries (charge-offs)			442		3,504
Balance at period end	22,238		22,238		23,170
Total loans	$ 1,353,380		$ 1,353,380		$ 1,481,834
Allowance for credit losses to total loans ratio	1.64%		1.64%		1.56%
Average loans			$ 1,353,446		$ 1,952,537
Annualized net charge-offs/ (recoveries) to average loans			0.07%		0.18%
Balance of loans individually evaluated for credit loss	$ 8,141		$ 8,141		$ 9,033
Allowance related to loans evaluated individually	$ 5,456		$ 5,456		$ 5,797
Individual allowance to loans evaluated individually ratio	67.02%		67.02%		64.18%
Balance of loans collectively evaluated for credit loss	$ 1,345,239		$ 1,345,239		$ 1,472,801
Allowance related to loans evaluated collectively	$ 16,782		$ 16,782		$ 17,373
Collective allowance to loans evaluated collectively ratio	1.25%		1.25%		1.18%
Residential real estate: | Residential mortgage
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 5,384	11,295	$ 11,295
Provision/ (credit) for credit losses			1,981		(6,321)
Charge-offs			(131)		0
Recoveries			20		410
Net recoveries (charge-offs)			111		(410)
Balance at period end	$ 7,254		7,254		5,384
Total loans	$ 1,147,577		$ 1,147,577		$ 937,570
Allowance for credit losses to total loans ratio	0.63%		0.63%		0.57%
Average loans			$ 1,017,741		$ 979,754
Annualized net charge-offs/ (recoveries) to average loans			0.02%		(0.04%)
Balance of loans individually evaluated for credit loss	$ 1,520		$ 1,520		$ 1,704
Allowance related to loans evaluated individually	$ 0		$ 0		$ 0
Individual allowance to loans evaluated individually ratio	0.00%		0.00%		0.00%
Balance of loans collectively evaluated for credit loss	$ 1,146,057		$ 1,146,057		$ 935,866
Allowance related to loans evaluated collectively	$ 7,254		$ 7,254		$ 5,384
Collective allowance to loans evaluated collectively ratio	0.63%		0.63%		0.58%
Residential real estate: | Residential construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 1,048	1,502	$ 1,502
Provision/ (credit) for credit losses			88		(459)
Charge-offs			0		0
Recoveries			5		5
Net recoveries (charge-offs)			(5)		(5)
Balance at period end	$ 1,141		1,141		1,048
Total loans	$ 235,486		$ 235,486		$ 197,652
Allowance for credit losses to total loans ratio	0.48%		0.48%		0.53%
Average loans			$ 209,264		$ 178,171
Annualized net charge-offs/ (recoveries) to average loans			0.00%		0.00%
Balance of loans individually evaluated for credit loss	$ 0		$ 0		$ 0
Allowance related to loans evaluated individually	$ 0		$ 0		$ 0
Individual allowance to loans evaluated individually ratio	0.00%		0.00%		0.00%
Balance of loans collectively evaluated for credit loss	$ 235,486		$ 235,486		$ 197,652
Allowance related to loans evaluated collectively	$ 1,141		$ 1,141		$ 1,048
Collective allowance to loans evaluated collectively ratio	0.48%		0.48%		0.53%
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period			$ 2,245	$ 6,142	$ 6,142
Provision/ (credit) for credit losses			(230)		(3,980)
Charge-offs			(124)		(299)
Recoveries			185		382
Net recoveries (charge-offs)			(61)		(83)
Balance at period end	$ 2,076		2,076		2,245
Total loans	$ 426,335		$ 426,335		$ 429,714
Allowance for credit losses to total loans ratio	0.49%		0.49%		0.52%
Average loans			$ 422,929		$ 463,200
Annualized net charge-offs/ (recoveries) to average loans			(0.03%)		(0.02%)
Balance of loans individually evaluated for credit loss	$ 345		$ 345		$ 352
Allowance related to loans evaluated individually	$ 0		$ 0		$ 0
Individual allowance to loans evaluated individually ratio	0.00%		0.00%		0.00%
Balance of loans collectively evaluated for credit loss	$ 425,990		$ 425,990		$ 429,362
Allowance related to loans evaluated collectively	$ 2,076		$ 2,076		$ 2,245
Collective allowance to loans evaluated collectively ratio	0.49%		0.49%		0.52%

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CREDIT QUALITY ASSESSMENT - Collateral Dependent Loans Individually Evaluated for Credit Loss (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	$ 8,797	$ 9,510
Allowance related to loans evaluated individually	6,170	6,593
Loans individually evaluated for credit loss without an allowance:	21,676	24,024
Total individually evaluated loans:	30,473	33,534
Total unpaid contractual principal balance	34,616	38,399
Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	6,054	6,386
Loans individually evaluated for credit loss without an allowance:	7,228	8,707
Total individually evaluated loans:	13,282	15,093
Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	2,144	2,511
Loans individually evaluated for credit loss without an allowance:	12,928	13,763
Total individually evaluated loans:	15,072	16,274
Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	599	613
Loans individually evaluated for credit loss without an allowance:	1,520	1,554
Total individually evaluated loans:	2,119	2,167
Commercial real estate: | Commercial investor real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	554	1,144
Allowance related to loans evaluated individually	134	213
Loans individually evaluated for credit loss without an allowance:	10,691	11,345
Total individually evaluated loans:	11,245	12,489
Total unpaid contractual principal balance	11,938	12,857
Commercial real estate: | Commercial investor real estate | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	554	808
Loans individually evaluated for credit loss without an allowance:	3,156	3,498
Total individually evaluated loans:	3,710	4,306
Commercial real estate: | Commercial investor real estate | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	336
Loans individually evaluated for credit loss without an allowance:	7,535	7,847
Total individually evaluated loans:	7,535	8,183
Commercial real estate: | Commercial investor real estate | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	76	79
Allowance related to loans evaluated individually	76	79
Loans individually evaluated for credit loss without an allowance:	7,793	9,227
Total individually evaluated loans:	7,869	9,306
Total unpaid contractual principal balance	9,255	11,132
Commercial real estate: | Commercial owner-occupied real estate | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	76	79
Loans individually evaluated for credit loss without an allowance:	3,680	4,775
Total individually evaluated loans:	3,756	4,854
Commercial real estate: | Commercial owner-occupied real estate | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	4,113	4,452
Total individually evaluated loans:	4,113	4,452
Commercial real estate: | Commercial owner-occupied real estate | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Commercial real estate: | Commercial AD&C
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	1,353	650
Allowance related to loans evaluated individually	504	504
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	1,353	650
Total unpaid contractual principal balance	1,398	695
Commercial real estate: | Commercial AD&C | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	1,353	650
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	1,353	650
Commercial real estate: | Commercial AD&C | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Commercial real estate: | Commercial AD&C | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Commercial Business
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	6,814	7,637
Allowance related to loans evaluated individually	5,456	5,797
Loans individually evaluated for credit loss without an allowance:	1,327	1,396
Total individually evaluated loans:	8,141	9,033
Total unpaid contractual principal balance	9,698	10,573
Commercial Business | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	4,071	4,849
Loans individually evaluated for credit loss without an allowance:	392	434
Total individually evaluated loans:	4,463	5,283
Commercial Business | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	2,144	2,175
Loans individually evaluated for credit loss without an allowance:	935	962
Total individually evaluated loans:	3,079	3,137
Commercial Business | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	599	613
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	599	613
Residential real estate: | Residential mortgage
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Allowance related to loans evaluated individually	0	0
Loans individually evaluated for credit loss without an allowance:	1,520	1,704
Total individually evaluated loans:	1,520	1,704
Total unpaid contractual principal balance	1,963	2,778
Residential real estate: | Residential mortgage | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Residential real estate: | Residential mortgage | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	150
Total individually evaluated loans:	0	150
Residential real estate: | Residential mortgage | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	1,520	1,554
Total individually evaluated loans:	1,520	1,554
Residential real estate: | Residential construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Allowance related to loans evaluated individually	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Total unpaid contractual principal balance	0	0
Residential real estate: | Residential construction | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Residential real estate: | Residential construction | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Residential real estate: | Residential construction | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Allowance related to loans evaluated individually	0	0
Loans individually evaluated for credit loss without an allowance:	345	352
Total individually evaluated loans:	345	352
Total unpaid contractual principal balance	364	364
Consumer | Non-accruing
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	0	0
Consumer | Non-accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	345	352
Total individually evaluated loans:	345	352
Consumer | Accruing | Restructured
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans individually evaluated for credit loss with an allowance:	0	0
Loans individually evaluated for credit loss without an allowance:	0	0
Total individually evaluated loans:	$ 0	$ 0

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CREDIT QUALITY ASSESSMENT - Non-accrual Loans (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	$ 43,654	$ 79,792
Contractual interest income due on non- accrual loans during the period	1,319	5,092
Commercial real estate: | Commercial investor real estate
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	11,826	31,590
Contractual interest income due on non- accrual loans during the period	358	2,169
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	8,419	9,444
Contractual interest income due on non- accrual loans during the period	271	555
Commercial real estate: | Commercial AD&C
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	1,028	9,236
Contractual interest income due on non- accrual loans during the period	27	597
Commercial Business
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	8,106	12,678
Contractual interest income due on non- accrual loans during the period	287	1,096
Residential real estate: | Residential mortgage
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	7,965	9,439
Contractual interest income due on non- accrual loans during the period	193	271
Residential real estate: | Residential construction
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	36	36
Contractual interest income due on non- accrual loans during the period	1	2
Consumer
Financing Receivable, Nonaccrual [Line Items]
Average non-accrual loans for the period	6,274	7,369
Contractual interest income due on non- accrual loans during the period	$ 182	$ 402

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CREDIT QUALITY ASSESSMENT - Narrative (Detail)	6 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($) loan	Dec. 31, 2021 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period increase (decrease)	$ 0	$ 0
Other real estate owned	$ 739,000	1,034,000
Number of consumer mortgage loans in formal foreclosure proceedings | loan	1
Consumer mortgage loan in process of foreclosure	$ 600,000
Non-accrual status
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans placed on non-accrual	2,451,000	8,146,000
Restructured Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans restructured during the period	205,000	14,600,000
Individual reserves	73,000	500,000
Other real estate owned	$ 700,000	$ 1,000,000

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CREDIT QUALITY ASSESSMENT - Information on the Credit Quality of Loan Portfolio (Detail) - Non-accrual status - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 46,086	$ 112,361
Loans placed on non-accrual	2,451	8,146
Non-accrual balances transferred to OREO	0	(257)
Non-accrual balances charged-off	(641)	(11,593)
Net payments or draws	(6,021)	(61,230)
Non-accrual loans brought current	(868)	(1,341)
Balance at end of period	41,007	46,086
Commercial real estate: | Commercial investor real estate
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	12,489	45,227
Loans placed on non-accrual	0	699
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	0	(5,803)
Net payments or draws	(1,244)	(26,813)
Non-accrual loans brought current	0	(821)
Balance at end of period	11,245	12,489
Commercial real estate: | Commercial owner-occupied real estate
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	9,306	11,561
Loans placed on non-accrual	453	3,676
Non-accrual balances transferred to OREO	0	(257)
Non-accrual balances charged-off	0	(136)
Net payments or draws	(1,890)	(5,538)
Non-accrual loans brought current	0	0
Balance at end of period	7,869	9,306
Commercial real estate: | Commercial AD&C
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	650	15,044
Loans placed on non-accrual	0	49
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	0	(2,007)
Net payments or draws	703	(12,436)
Non-accrual loans brought current	0	0
Balance at end of period	1,353	650
Commercial Business
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	8,420	22,933
Loans placed on non-accrual	1,011	1,339
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	(480)	(3,547)
Net payments or draws	(1,409)	(12,305)
Non-accrual loans brought current	0	0
Balance at end of period	7,542	8,420
Residential real estate: | Residential mortgage
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	8,441	10,212
Loans placed on non-accrual	861	695
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	(132)	0
Net payments or draws	(1,251)	(2,406)
Non-accrual loans brought current	(614)	(60)
Balance at end of period	7,305	8,441
Residential real estate: | Residential construction
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	55	0
Loans placed on non-accrual	0	62
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	0	0
Net payments or draws	(54)	(7)
Non-accrual loans brought current	0	0
Balance at end of period	1	55
Consumer
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	6,725	7,384
Loans placed on non-accrual	126	1,626
Non-accrual balances transferred to OREO	0	0
Non-accrual balances charged-off	(29)	(100)
Net payments or draws	(876)	(1,725)
Non-accrual loans brought current	(254)	(460)
Balance at end of period	$ 5,692	$ 6,725

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CREDIT QUALITY ASSESSMENT - Credit Quality of Loan Portfolio, New (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Total loans	$ 10,786,290	$ 9,967,091
Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	10,742,811	9,918,281
Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	41,007	46,086
Loans greater than 90 days past due	353	557
Restructured loans	2,119	2,167
Total loans	43,479	48,810
Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	10,705,781	9,901,309
30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	30,389	12,475
60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	6,641	4,497
Commercial investor real estate
Financing Receivable, Past Due [Line Items]
Total loans	4,761,658	4,141,346
Commercial owner-occupied real estate
Financing Receivable, Past Due [Line Items]
Total loans	1,767,326	1,690,881
Commercial AD&C
Financing Receivable, Past Due [Line Items]
Total loans	1,094,528	1,088,094
Residential mortgage
Financing Receivable, Past Due [Line Items]
Total loans	1,147,577	937,570
Residential construction
Financing Receivable, Past Due [Line Items]
Total loans	235,486	197,652
Commercial real estate: | Commercial investor real estate
Financing Receivable, Past Due [Line Items]
Total loans	4,761,658	4,141,346
Commercial real estate: | Commercial investor real estate | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	4,750,413	4,128,857
Commercial real estate: | Commercial investor real estate | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	11,245	12,489
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total loans	11,245	12,489
Commercial real estate: | Commercial investor real estate | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	4,738,506	4,127,009
Commercial real estate: | Commercial investor real estate | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	10,385	1,656
Commercial real estate: | Commercial investor real estate | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,522	192
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Past Due [Line Items]
Total loans	1,767,326	1,690,881
Commercial real estate: | Commercial owner-occupied real estate | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,759,457	1,681,575
Commercial real estate: | Commercial owner-occupied real estate | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	7,869	9,306
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total loans	7,869	9,306
Commercial real estate: | Commercial owner-occupied real estate | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,758,618	1,680,635
Commercial real estate: | Commercial owner-occupied real estate | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	0	86
Commercial real estate: | Commercial owner-occupied real estate | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	839	854
Commercial real estate: | Commercial AD&C
Financing Receivable, Past Due [Line Items]
Total loans	1,094,528	1,088,094
Commercial real estate: | Commercial AD&C | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,093,175	1,087,444
Commercial real estate: | Commercial AD&C | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	1,353	650
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total loans	1,353	650
Commercial real estate: | Commercial AD&C | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,092,808	1,085,642
Commercial real estate: | Commercial AD&C | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	367	1,802
Commercial real estate: | Commercial AD&C | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Commercial Business
Financing Receivable, Past Due [Line Items]
Total loans	8,976,892	8,402,155
Commercial Business | Commercial business
Financing Receivable, Past Due [Line Items]
Total loans	1,353,380	1,481,834
Commercial Business | Commercial business | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,345,239	1,472,801
Commercial Business | Commercial business | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	7,542	8,420
Loans greater than 90 days past due	0	0
Restructured loans	599	613
Total loans	8,141	9,033
Commercial Business | Commercial business | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,342,025	1,471,669
Commercial Business | Commercial business | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,650	753
Commercial Business | Commercial business | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,564	379
Residential real estate: | Residential mortgage
Financing Receivable, Past Due [Line Items]
Total loans	1,147,577	937,570
Residential real estate: | Residential mortgage | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,138,399	927,018
Residential real estate: | Residential mortgage | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	7,305	8,441
Loans greater than 90 days past due	353	557
Restructured loans	1,520	1,554
Total loans	9,178	10,552
Residential real estate: | Residential mortgage | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,121,614	919,199
Residential real estate: | Residential mortgage | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	14,340	5,157
Residential real estate: | Residential mortgage | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	2,445	2,662
Residential real estate: | Residential construction
Financing Receivable, Past Due [Line Items]
Total loans	235,486	197,652
Residential real estate: | Residential construction | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	235,485	197,597
Residential real estate: | Residential construction | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	1	55
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total loans	1	55
Residential real estate: | Residential construction | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	233,535	197,597
Residential real estate: | Residential construction | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,950	0
Residential real estate: | Residential construction | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Consumer
Financing Receivable, Past Due [Line Items]
Total loans	426,335	429,714
Consumer | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	420,643	422,989
Consumer | Non-performing loans:
Financing Receivable, Past Due [Line Items]
Non-accrual loans	5,692	6,725
Loans greater than 90 days past due	0	0
Restructured loans	0	0
Total loans	5,692	6,725
Consumer | Current | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	418,675	419,558
Consumer | 30-59 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	1,697	3,021
Consumer | 60-89 days | Performing loans:
Financing Receivable, Past Due [Line Items]
Total loans	$ 271	$ 410

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CREDIT QUALITY ASSESSMENT - Information about Credit Quality Indicator by Year of Origination (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	$ 1,884,666		$ 3,023,908
Year one	2,784,767		1,626,031
Year two	1,422,469		1,316,007
Year three	1,135,762		826,781
Year four	721,409		702,719
Prior	1,758,296		1,376,294
Revolving Loans	1,078,921		1,095,351
Total loans	10,786,290		9,967,091
Current period gross charge-offs, Total	762	$ 3,485	12,313
Commercial investor real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,005,983		1,394,986
Year one	1,315,715		749,082
Year two	690,237		625,715
Year three	555,661		366,804
Year four	345,433		340,595
Prior	834,448		644,925
Revolving Loans	14,181		19,239
Total loans	4,761,658		4,141,346
Current period gross charge-offs, current year	0		0
Current period gross charge-offs, year one	0		0
Current period gross charge-offs, year two	0		0
Current period gross charge-offs, year three	0		903
Current period gross charge-offs, year four	0		3,975
Current period gross charge-offs, prior	0		924
Current period gross charge-offs, revolving	0		0
Current period gross charge-offs, Total	0		5,802
Commercial investor real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	995,886		1,391,969
Year one	1,297,680		748,236
Year two	689,736		616,761
Year three	553,310		357,640
Year four	336,603		328,327
Prior	824,334		633,913
Revolving Loans	14,181		19,239
Total loans	4,711,730		4,096,085
Commercial investor real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0		2,210
Year one	17,343		510
Year two	501		4,646
Year three	95		596
Year four	582		2,204
Prior	6,182		10,438
Revolving Loans	0		0
Total loans	24,703		20,604
Commercial investor real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	10,097		807
Year one	692		336
Year two	0		4,308
Year three	2,256		8,568
Year four	8,248		10,064
Prior	3,932		574
Revolving Loans	0		0
Total loans	25,225		24,657
Commercial investor real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0		0
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Prior	0		0
Revolving Loans	0		0
Total loans	0		0
Commercial owner-occupied real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	252,455		362,293
Year one	344,721		257,626
Year two	243,028		327,764
Year three	306,596		189,716
Year four	155,723		177,164
Prior	463,899		375,169
Revolving Loans	904		1,149
Total loans	1,767,326		1,690,881
Current period gross charge-offs, current year	0		0
Current period gross charge-offs, year one	0		0
Current period gross charge-offs, year two	0		0
Current period gross charge-offs, year three	0		136
Current period gross charge-offs, year four	0		0
Current period gross charge-offs, prior	0		0
Current period gross charge-offs, revolving	0		0
Current period gross charge-offs, Total	0		136
Commercial owner-occupied real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	246,043		360,169
Year one	342,740		254,350
Year two	241,314		319,348
Year three	298,137		178,416
Year four	151,076		172,354
Prior	455,558		363,685
Revolving Loans	904		1,149
Total loans	1,735,772		1,649,471
Commercial owner-occupied real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	5,013		156
Year one	0		1,476
Year two	924		4,388
Year three	460		9,035
Year four	2,115		4,456
Prior	5,007		9,106
Revolving Loans	0		0
Total loans	13,519		28,617
Commercial owner-occupied real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,399		1,968
Year one	1,981		1,800
Year two	790		4,028
Year three	7,999		2,265
Year four	2,532		354
Prior	3,334		2,378
Revolving Loans	0		0
Total loans	18,035		12,793
Commercial owner-occupied real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0		0
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Prior	0		0
Revolving Loans	0		0
Total loans	0		0
Commercial AD&C
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	158,080		457,444
Year one	452,168		226,332
Year two	172,240		148,561
Year three	87,270		87,934
Year four	57,897		13,938
Prior	0		0
Revolving Loans	166,873		153,885
Total loans	1,094,528		1,088,094
Current period gross charge-offs, current year	0		0
Current period gross charge-offs, year one	0		0
Current period gross charge-offs, year two	0		0
Current period gross charge-offs, year three	0		0
Current period gross charge-offs, year four	0		2,007
Current period gross charge-offs, prior	0		0
Current period gross charge-offs, revolving	0		0
Current period gross charge-offs, Total	0		2,007
Commercial AD&C | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	158,080		454,207
Year one	450,044		226,332
Year two	172,240		148,260
Year three	86,968		87,934
Year four	57,897		13,938
Prior	0		0
Revolving Loans	165,884		152,896
Total loans	1,091,113		1,083,567
Commercial AD&C | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0		2,888
Year one	1,073		0
Year two	0		0
Year three	0		0
Year four	0		0
Prior	0		0
Revolving Loans	989		989
Total loans	2,062		3,877
Commercial AD&C | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0		349
Year one	1,051		0
Year two	0		301
Year three	302		0
Year four	0		0
Prior	0		0
Revolving Loans	0		0
Total loans	1,353		650
Commercial AD&C | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0		0
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Prior	0		0
Revolving Loans	0		0
Total loans	0		0
Residential mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	248,837		259,638
Year one	274,185		175,065
Year two	172,534		54,245
Year three	51,735		76,471
Year four	68,721		110,951
Prior	331,565		261,200
Revolving Loans	0		0
Total loans	1,147,577		937,570
Current period gross charge-offs, current year	0		0
Current period gross charge-offs, year one	0		0
Current period gross charge-offs, year two	0		0
Current period gross charge-offs, year three	0		0
Current period gross charge-offs, year four	0		0
Current period gross charge-offs, prior	131		0
Current period gross charge-offs, revolving	0		0
Current period gross charge-offs, Total	131		0
Residential mortgage | 660-850
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	243,623		246,612
Year one	264,572		165,623
Year two	164,442		46,925
Year three	45,352		65,865
Year four	57,946		102,628
Prior	287,215		223,420
Revolving Loans	0		0
Total loans	1,063,150		851,073
Residential mortgage | 600-659
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	3,254		11,102
Year one	4,263		3,285
Year two	3,538		3,583
Year three	3,501		4,255
Year four	6,329		4,645
Prior	25,672		20,052
Revolving Loans	0		0
Total loans	46,557		46,922
Residential mortgage | 540-599
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	241		1,472
Year one	1,858		1,864
Year two	1,111		2,162
Year three	1,585		4,522
Year four	2,965		1,599
Prior	7,587		8,201
Revolving Loans	0		0
Total loans	15,347		19,820
Residential mortgage | less than 540
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,719		452
Year one	3,492		4,293
Year two	3,443		1,575
Year three	1,297		1,829
Year four	1,481		2,079
Prior	11,091		9,527
Revolving Loans	0		0
Total loans	22,523		19,755
Residential construction
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	65,864		138,002
Year one	138,956		45,890
Year two	26,196		8,713
Year three	1,877		2,078
Year four	1,432		1,347
Prior	1,161		1,622
Revolving Loans	0		0
Total loans	235,486		197,652
Current period gross charge-offs, current year	0		0
Current period gross charge-offs, year one	0		0
Current period gross charge-offs, year two	0		0
Current period gross charge-offs, year three	0		0
Current period gross charge-offs, year four	0		0
Current period gross charge-offs, prior	0		0
Current period gross charge-offs, revolving	0		0
Current period gross charge-offs, Total	0		0
Residential construction | 660-850
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	65,572		134,335
Year one	137,210		45,890
Year two	26,196		8,063
Year three	1,877		2,078
Year four	1,432		1,347
Prior	1,161		1,160
Revolving Loans	0		0
Total loans	233,448		192,873
Residential construction | 600-659
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	75		1,922
Year one	1,746		0
Year two	0		650
Year three	0		0
Year four	0		0
Prior	0		0
Revolving Loans	0		0
Total loans	1,821		2,572
Residential construction | 540-599
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0		0
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Prior	0		462
Revolving Loans	0		0
Total loans	0		462
Residential construction | less than 540
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	217		1,745
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Prior	0		0
Revolving Loans	0		0
Total loans	217		1,745
Commercial Business
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	8,976,892		8,402,155
Commercial Business | Commercial business
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	150,946		407,868
Year one	255,002		170,454
Year two	117,156		146,708
Year three	129,750		99,298
Year four	88,668		56,459
Prior	90,263		56,406
Revolving Loans	521,595		544,641
Total loans	1,353,380		1,481,834
Current period gross charge-offs, current year	0		0
Current period gross charge-offs, year one	0		0
Current period gross charge-offs, year two	0		88
Current period gross charge-offs, year three	0		1,674
Current period gross charge-offs, year four	138		46
Current period gross charge-offs, prior	369		2,236
Current period gross charge-offs, revolving	0		25
Current period gross charge-offs, Total	507		4,069
Commercial Business | Commercial business | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	150,068		403,871
Year one	251,432		165,194
Year two	113,947		137,069
Year three	121,205		96,800
Year four	87,484		55,100
Prior	87,535		53,764
Revolving Loans	513,389		533,893
Total loans	1,325,060		1,445,691
Commercial Business | Commercial business | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	278		220
Year one	380		1,998
Year two	1,729		7,030
Year three	6,272		1,701
Year four	1,111		548
Prior	668		577
Revolving Loans	6,334		9,212
Total loans	16,772		21,286
Commercial Business | Commercial business | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	600		3,777
Year one	3,190		3,262
Year two	1,480		2,609
Year three	2,273		797
Year four	73		811
Prior	2,060		2,065
Revolving Loans	1,872		1,536
Total loans	11,548		14,857
Commercial Business | Commercial business | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	0		0
Year one	0		0
Year two	0		0
Year three	0		0
Year four	0		0
Prior	0		0
Revolving Loans	0		0
Total loans	0		0
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	2,501		3,677
Year one	4,020		1,582
Year two	1,078		4,301
Year three	2,873		4,480
Year four	3,535		2,265
Prior	36,960		36,972
Revolving Loans	375,368		376,437
Total loans	426,335		429,714
Current period gross charge-offs, current year	0		0
Current period gross charge-offs, year one	5		0
Current period gross charge-offs, year two	5		7
Current period gross charge-offs, year three	0		2
Current period gross charge-offs, year four	10		0
Current period gross charge-offs, prior	14		106
Current period gross charge-offs, revolving	90		184
Current period gross charge-offs, Total	124		299
Consumer | 660-850
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	1,869		3,179
Year one	3,457		1,393
Year two	929		3,130
Year three	1,971		3,060
Year four	2,468		1,648
Prior	25,460		26,156
Revolving Loans	351,555		350,466
Total loans	387,709		389,032
Consumer | 600-659
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	300		352
Year one	450		123
Year two	105		324
Year three	371		716
Year four	289		430
Prior	5,441		4,906
Revolving Loans	14,716		14,119
Total loans	21,672		20,970
Consumer | 540-599
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	54		58
Year one	36		8
Year two	2		311
Year three	49		160
Year four	487		89
Prior	2,650		2,809
Revolving Loans	3,485		4,926
Total loans	6,763		8,361
Consumer | less than 540
Financing Receivable, Credit Quality Indicator [Line Items]
Current year	278		88
Year one	77		58
Year two	42		536
Year three	482		544
Year four	291		98
Prior	3,409		3,101
Revolving Loans	5,612		6,926
Total loans	$ 10,191		$ 11,351

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CREDIT QUALITY ASSESSMENT - Restructured Loans at the Date of Restructuring For Specific Segments of the Loan Portfolio (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	$ 205	$ 14,575
Individual allowance	73	461
Restructured and subsequently defaulted	0	0
All Other Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	0	0
Individual allowance	0	0
Restructured and subsequently defaulted	0	0
Troubled debt restructurings:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	32	0
Restructured non-accruing	173	14,575
Troubled debt restructurings: | All Other Loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	0
Restructured non-accruing	0	0
Commercial real estate: | Commercial investor real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	0	9,594
Individual allowance	0	0
Restructured and subsequently defaulted	0	0
Commercial real estate: | Commercial owner-occupied real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	0	3,157
Individual allowance	0	0
Restructured and subsequently defaulted	0	0
Commercial real estate: | Commercial AD&C
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	0	0
Individual allowance	0	0
Restructured and subsequently defaulted	0	0
Commercial real estate: | Troubled debt restructurings: | Commercial investor real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	0
Restructured non-accruing	0	9,594
Commercial real estate: | Troubled debt restructurings: | Commercial owner-occupied real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	0
Restructured non-accruing	0	3,157
Commercial real estate: | Troubled debt restructurings: | Commercial AD&C
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	0	0
Restructured non-accruing	0	0
Commercial Business
Financing Receivable, Troubled Debt Restructuring [Line Items]
Balance	205	1,824
Individual allowance	73	461
Restructured and subsequently defaulted	0	0
Commercial Business | Troubled debt restructurings:
Financing Receivable, Troubled Debt Restructuring [Line Items]
Restructured accruing	32	0
Restructured non-accruing	$ 173	$ 1,824

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GOODWILL AND OTHER INTANGIBLE ASSETS - Amount of Goodwill by Reportable Segment (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 370,223
Disposal of subsidiary's assets	(6,788)
Ending balance	363,436
Community Banking
Goodwill [Roll Forward]
Beginning balance	331,689
Disposal of subsidiary's assets	0
Ending balance	331,689
Insurance
Goodwill [Roll Forward]
Beginning balance	6,788
Disposal of subsidiary's assets	(6,788)
Ending balance	0
Investment Management
Goodwill [Roll Forward]
Beginning balance	31,747
Disposal of subsidiary's assets	0
Ending balance	$ 31,747

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GOODWILL AND OTHER INTANGIBLE ASSETS - Gross Carrying Amounts and Accumulated Amortization (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 42,944	$ 42,944
Accumulated Amortization	(20,250)	(17,024)
Net Carrying Amount	22,694	25,920
Goodwill	363,436	370,223
Goodwill	363,436	370,223
Core deposit intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	29,038	29,038
Accumulated Amortization	(14,708)	(12,624)
Net Carrying Amount	$ 14,330	$ 16,414
Core deposit intangibles | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Life	6 years 10 months 24 days	7 years 4 months 24 days
Other identifiable intangibles
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 13,906	$ 13,906
Accumulated Amortization	(5,542)	(4,400)
Net Carrying Amount	$ 8,364	$ 9,506
Other identifiable intangibles | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Life	9 years 2 months 12 days	9 years 8 months 12 days

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GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Future Amortization Expense for Amortizing Intangibles (Detail) $ in Thousands	Jun. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining 2022	$ 2,840
2023	5,040
2024	4,290
2025	3,530
2026	2,702
Thereafter	4,292
Total amortizing intangible assets	$ 22,694

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DEPOSITS - Composition of Deposits (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Deposits [Abstract]
Noninterest-bearing deposits	$ 4,129,440	$ 3,779,630
Interest-bearing deposits:
Demand	1,590,484	1,604,714
Money market savings	3,185,150	3,415,663
Regular savings	560,324	533,862
Time deposits of less than $250,000	1,168,317	910,464
Time deposits of $250,000 or more	335,746	380,398
Total interest-bearing deposits	6,840,021	6,845,101
Total deposits	$ 10,969,461	$ 10,624,731

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BORROWINGS - Narrative (Detail) - USD ($)				6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 15, 2022	Apr. 01, 2020	Nov. 05, 2019	Jun. 30, 2022	Jul. 15, 2021	Dec. 31, 2018	Dec. 31, 2021	Oct. 05, 2020
Debt Instrument [Line Items]
Long-term borrowings				$ 369,906,000			$ 172,712,000
Long-term debt				730,650,000			313,798,000
FHLB availability based on pledged collateral				3,100,000,000			2,700,000,000
FHLB advances				175,000,000			0
Federal Home Loan Bank Advances
Debt Instrument [Line Items]
Maximum borrowing capacity				3,900,000,000			3,900,000,000
Federal Home Loan Bank Advances | Residential mortgage | Asset pledged as collateral | Federal Home Loan Bank Advances
Debt Instrument [Line Items]
Maximum borrowing capacity				1,000,000,000			829,100,000
Federal Home Loan Bank Advances | Commercial real estate loans | Asset pledged as collateral | Federal Home Loan Bank Advances
Debt Instrument [Line Items]
Maximum borrowing capacity				3,500,000,000			3,100,000,000
Federal Home Loan Bank Advances | Home equity lines of credit | Asset pledged as collateral | Federal Home Loan Bank Advances
Debt Instrument [Line Items]
Maximum borrowing capacity				218,500,000			224,400,000
Federal Home Loan Bank Advances | Multifamily loans | Asset pledged as collateral | Federal Home Loan Bank Advances
Debt Instrument [Line Items]
Maximum borrowing capacity				458,600,000			333,400,000
Federal Reserve and correspondent banks
Debt Instrument [Line Items]
Maximum borrowing capacity				684,900,000			509,400,000
Line of credit				0			0
Unsecured lines of credit, correspondent banks
Debt Instrument [Line Items]
Maximum borrowing capacity				1,300,000,000			1,300,000,000
Line of credit				$ 75,000,000			0
Subordinated Debt | Fixed Floating Rate Subordinated Notes Due 2032
Debt Instrument [Line Items]
Aggregate principal amount	$ 200,000,000
Interest rate	3.875%			3.875%
Basis spread on variable rate	1.965%
Unamortized discount (premium) and debt issuance costs, net	$ 3,100,000
Subordinated Debt | Fixed Floating Rate Subordinated Notes Due 2029
Debt Instrument [Line Items]
Interest rate			4.25%	4.25%
Basis spread on variable rate			2.62%
Unamortized discount (premium) and debt issuance costs, net			$ 2,900,000
Long-term borrowings			$ 175,000,000
Subordinated Debt | WashingtonFirst Bankshares Inc
Debt Instrument [Line Items]
Interest rate								6.00%
Basis spread on variable rate					4.57%
Long-term borrowings						$ 25,000,000
Add: Purchase accounting premium						$ 2,200,000
Debt instrument, term						10 years
Subordinated Debt | Revere acquisition
Debt Instrument [Line Items]
Interest rate		5.625%
Basis spread on variable rate				4.41%
Long-term borrowings		$ 31,000,000
Add: Purchase accounting premium		$ 200,000
Debt instrument, term		10 years
Retail Repurchase Agreements
Debt Instrument [Line Items]
Long-term debt				$ 110,700,000			141,100,000
Federal Funds Purchased
Debt Instrument [Line Items]
Long-term debt				$ 75,000,000			$ 0

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BORROWINGS - Schedule of Subordinated Borrowing (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Mar. 15, 2022	Dec. 31, 2021	Nov. 05, 2019
Subordinated Borrowing [Line Items]
Long-term borrowings	$ 369,906		$ 172,712
Subordinated Debt
Subordinated Borrowing [Line Items]
Subordinated debt, gross	375,000		175,000
Less: Debt issuance costs	(5,094)		(2,288)
Subordinated Debt | Fixed Floating Rate Subordinated Notes Due 2032
Subordinated Borrowing [Line Items]
Subordinated debt, gross	$ 200,000		0
Interest rate	3.875%	3.875%
Subordinated Debt | Fixed Floating Rate Subordinated Notes Due 2029
Subordinated Borrowing [Line Items]
Subordinated debt, gross	$ 175,000		$ 175,000
Long-term borrowings				$ 175,000
Interest rate	4.25%			4.25%

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STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Mar. 30, 2022
Equity [Line Items]
Repurchase of common stock (in shares)	(625,710)	(625,710)
Repurchase Plan 2022 | Common Stock
Equity [Line Items]
Value of stock authorized for repurchase				$ 50.0
Repurchase of common stock (in shares)		(625,710)
Common stock repurchased, average price (in dollars per share)		$ 39.93
Stock repurchased and retired		$ 25.0
Repurchase Plan 2020 | Common Stock
Equity [Line Items]
Common stock repurchased, average price (in dollars per share)			$ 45.65
Stock repurchased (in shares)			2,350,000
Stock repurchased and retired			$ 107.3

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SHARE BASED COMPENSATION - Narrative (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) director shares	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) director shares	Jun. 30, 2021 USD ($)	May 06, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of directors | director	3		3
2015 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)					1,500,000
Shares available for issuance (in shares)	632,533		632,533
Expiration period			10 years
2015 Omnibus Incentive Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise period			7 years
2015 Omnibus Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise period			10 years
2015 Omnibus Incentive Plan | Stock Options and Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation expense | $	$ 3,200,000	$ 1,400,000	$ 4,700,000	$ 2,300,000
2015 Omnibus Incentive Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense | $	0		$ 0
2015 Omnibus Incentive Plan | Stock Option | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			0
2015 Omnibus Incentive Plan | Restricted shares, Restricted stock units and Performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense | $	$ 10,400,000		$ 10,400,000
Expected cost recognition weighted average period			2 years 1 month 9 days
Shares issued (in shares)			167,411
2015 Omnibus Incentive Plan | Performance Shares | Tranche one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)			45,567
Performance period			3 years
2015 Omnibus Incentive Plan | Time Based Shares | Tranche two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)			121,844
Vesting period			3 years

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SHARE BASED COMPENSATION - Summary of Activity Restricted Stock (Detail) - Restricted Stock	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Number of Common Shares/Units
Nonvested beginning balance (in shares) | shares	390,520
Granted (in shares) | shares	167,411
Vested (in shares) | shares	(151,691)
Forfeited/ cancelled (in shares) | shares	(9,688)
Nonvested ending balance (in shares) | shares	396,552
Weighted Average Grant-Date Fair Value
Nonvested beginning balance (in dollars per share) | $ / shares	$ 32.67
Granted (in dollars per share) | $ / shares	45.02
Vested (in dollars per share) | $ / shares	32.64
Forfeited/ cancelled (in dollars per share) | $ / shares	36.86
Nonvested ending balance (in dollars per share) | $ / shares	$ 37.38

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SHARE BASED COMPENSATION - Summary of Share Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Number of Common Shares
Beginning balance (in shares)			159,741
Granted (in shares)			0
Exercised (in shares)	(1,464)	(38,158)	(10,361)	(140,523)
Forfeited (in shares)			0
Expired (in shares)			0
Ending balance (in shares)	149,380		149,380		159,741
Exercisable at end of period (in shares)	149,380		149,380
Weighted Average Exercise Share Price
Beginning balance (in dollars per share)			$ 17.18
Granted (in dollars per share)			0
Exercised (in dollars per share)			23.18
Forfeited (in dollars per share)			0
Expired (in dollars per share)			0
Ending balance (in dollars per share)	$ 16.76		16.76		$ 17.18
Exercisable at end of period (in dollars per share)	$ 16.76		$ 16.76
Weighted Average Contractual Remaining Life (Years)
Balance at end of period			2 years		2 years 4 months 24 days
Exercisable at end of period			2 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract]
Beginning balance			$ 5,264
Exercised			238
Ending balance	$ 3,256		3,256		$ 5,264
Exercisable at end of period	$ 3,256		$ 3,256

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PENSION PLAN - Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Retirement Benefits [Abstract]
Interest cost on projected benefit obligation	$ 326	$ 318	$ 651	$ 636
Expected return on plan assets	(352)	(312)	(705)	(624)
Recognized net actuarial loss	195	227	391	454
Net periodic benefit cost	$ 169	$ 233	$ 337	$ 466

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PENSION PLAN - Narrative (Detail)	6 Months Ended
	Jun. 30, 2022 USD ($)
Retirement Benefits [Abstract]
Contributions by employer	$ 0

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NET INCOME PER COMMON SHARE - Calculation of Net Income per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net income	$ 54,800	$ 57,263	$ 98,735	$ 132,727
Distributed and undistributed earnings allocated to participating securities	(194)	(481)	(476)	(1,121)
Net income attributable to common shareholders	$ 54,606	$ 56,782	$ 98,259	$ 131,606
Total weighted average outstanding shares (in shares)	45,184	47,689	45,303	47,610
Less: weighted average participating securities (in shares)	(160)	(401)	(221)	(406)
Basic weighted average common shares (in shares)	45,024	47,288	45,082	47,204
Dilutive weighted average common stock equivalents (in shares)	87	235	140	266
Diluted weighted average common shares (in shares)	45,111	47,523	45,222	47,470
Basic net income per common share (in dollars per share)	$ 1.21	$ 1.20	$ 2.18	$ 2.79
Diluted net income per common share (in dollars per share)	$ 1.21	$ 1.19	$ 2.17	$ 2.77
Anti-dilutive shares (in shares)	0	0	0	0

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ACCUMULATED OTHER COMPREHENSIVE LOSS - Net Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amortized cost of debt securities transferred to held-to-maturity	$ 305,600		$ 305,600		$ 305,600
After tax unrealized loss of debt securities transferred to held-to-maturity					$ 12,100
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			(8,539)
Other comprehensive loss before reclassification from accumulated other comprehensive loss, net of tax			(90,005)
Reclassifications from accumulated other comprehensive loss to earnings, net of tax			1,091
Total other comprehensive income/ (loss)	(28,182)	$ 7,486	(88,914)	$ (13,871)
Ending Balance	(97,453)		(97,453)
Unrealized Gains/(Losses) on Debt Securities Available-for-Sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			(336)	28,175
Other comprehensive loss before reclassification from accumulated other comprehensive loss, net of tax			(77,922)	(14,108)
Reclassifications from accumulated other comprehensive loss to earnings, net of tax			(34)	(96)
Total other comprehensive income/ (loss)			(77,956)	(14,204)
Ending Balance	(78,292)	13,971	(78,292)	13,971
Defined Benefit Pension Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			(8,203)	(9,470)
Other comprehensive loss before reclassification from accumulated other comprehensive loss, net of tax			0	0
Reclassifications from accumulated other comprehensive loss to earnings, net of tax			291	333
Total other comprehensive income/ (loss)			291	333
Ending Balance	(7,912)	(9,137)	(7,912)	(9,137)
Unrealized Losses on Debt Securities Transferred from Available-for-Sale to Held-to-Maturity
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			0
Other comprehensive loss before reclassification from accumulated other comprehensive loss, net of tax			(12,083)
Reclassifications from accumulated other comprehensive loss to earnings, net of tax			834
Total other comprehensive income/ (loss)			(11,249)
Ending Balance	(11,249)		(11,249)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			(8,539)	18,705
Other comprehensive loss before reclassification from accumulated other comprehensive loss, net of tax				(14,108)
Reclassifications from accumulated other comprehensive loss to earnings, net of tax				237
Total other comprehensive income/ (loss)	(28,182)	7,486	(88,914)	(13,871)
Ending Balance	$ (97,453)	$ 4,834	$ (97,453)	$ 4,834

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ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification Adjustments Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Unrealized gains on investments available for sale, affected line items in the Statements of Income
Investment securities gains			$ 46	$ 129
Income before taxes	$ 38	$ 71	46	129
Tax expense	$ (10)	$ (18)	(12)	(33)
Net income			34	96
Amortization of unrealized losses on debt securities transferred from available-for-sale to held-to-maturity:
Interest and dividends on investment securities			(1,122)	0
Income before taxes			(1,122)	0
Tax benefit			288	0
Net loss			(834)	0
Amortization of defined benefit pension plan items Affected line item in the Statements of Income:
Recognized actuarial loss			(391)	(454)
Loss before taxes			(391)	(454)
Tax benefit			100	121
Net loss			$ (291)	$ (333)

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LEASES - Narrative (Details)	Jun. 30, 2022
Minimum
Lessee, Lease, Description [Line Items]
Renewal term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term	20 years

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LEASES - Summary of Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Components of lease expense:
Operating lease cost (resulting from lease payments)	$ 2,738	$ 3,134	$ 5,504	$ 6,286
Supplemental cash flow information related to leases:
Operating cash flows from operating leases	2,893	3,274	5,832	6,554
ROU assets obtained in the exchange for lease liabilities due to new leases and acquisitions	0	0	0	803
Supplemental balance sheet information related to leases:
Operating lease ROU assets	53,796		53,796		$ 57,872
Lease liability	$ 62,615		$ 62,615		$ 67,138
Other information related to leases:
Weighted average remaining lease term of operating leases	8 years 8 months 12 days		8 years 8 months 12 days		9 years
Weighted average discount rate of operating leases	2.95%		2.95%		2.92%
Revere Bank And RPJ
Supplemental cash flow information related to leases:
ROU assets obtained in the exchange for lease liabilities due to new leases and acquisitions	$ 0	$ 0	$ 0	$ 0

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LEASES - Maturities of operating lease liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remaining 2022	$ 5,734
2023	11,535
2024	9,643
2025	7,818
2026	7,048
Thereafter	30,615
Total undiscounted lease payments	72,393
Less: Present value discount	(9,778)
Lease liability	$ 62,615	$ 67,138

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DERIVATIVES - Narrative (Detail) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Commercial Loan | Not Designated as Hedging Instrument | Interest rate swap agreements
Derivative [Line Items]
Notional amount	$ 336.7	$ 396.3

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FAIR VALUE - Financial Assets and Liabilities at Dates Indicated that were Accounted for at Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	$ 1,268,823	$ 1,465,896
Residential mortgage loans held for sale (at fair value)	23,610	39,409
Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale (at fair value)	23,600	38,200
U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	101,410	68,539
State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	299,222	326,402
Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	868,191	1,070,955
Fair Value, Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	1,268,823	1,465,896
Total assets	1,305,383	1,511,185
Total liabilities	(12,950)	(5,880)
Fair Value, Recurring | Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale	23,610	39,409
Fair Value, Recurring | U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	101,410	68,539
Fair Value, Recurring | State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	299,222	326,402
Fair Value, Recurring | Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	868,191	1,070,955
Fair Value, Recurring | Interest rate swap agreements
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap agreements	12,950	5,880
Interest rate swap agreements	(12,950)	(5,880)
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	0	0
Total assets	0	0
Total liabilities	0	0
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale	0	0
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	0	0
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	0	0
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	0	0
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap agreements
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap agreements	0	0
Interest rate swap agreements	0	0
Fair Value, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	1,268,823	1,465,896
Total assets	1,305,383	1,511,185
Total liabilities	(12,950)	(5,880)
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale	23,610	39,409
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	101,410	68,539
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	299,222	326,402
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	868,191	1,070,955
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap agreements
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap agreements	12,950	5,880
Interest rate swap agreements	(12,950)	(5,880)
Fair Value, Recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	0	0
Total assets	0	0
Total liabilities	0	0
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage loans held for sale
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Residential mortgage loans held for sale	0	0
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | U.S. treasuries and government agencies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	0	0
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	0	0
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed and asset-backed
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments available-for-sale	0	0
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap agreements
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap agreements	0	0
Interest rate swap agreements	$ 0	$ 0

XML

FAIR VALUE - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - Fair Value, Nonrecurring - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	$ 943	$ 1,438
Total Losses	(974)	(1,434)
Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	204	404
Total Losses	(893)	(1,353)
Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	739	1,034
Total Losses	(81)	(81)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Significant Other Observable Inputs (Level 2) | Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Significant Other Observable Inputs (Level 2) | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	943	1,438
Significant Unobservable Inputs (Level 3) | Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	204	404
Significant Unobservable Inputs (Level 3) | Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, nonrecurring	$ 739	$ 1,034

XML

FAIR VALUE - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Balance of loans individually evaluated for credit loss	$ 30.5	$ 33.5
Loans receivable, fair value	24.3	26.9
Allowance related to loans evaluated individually	$ 6.2	$ 6.6

XML

FAIR VALUE - Carrying Amounts and Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Financial assets:
Residential mortgage loans held for sale	$ 23,610	$ 39,409
Investments available-for-sale	1,268,823	1,465,896
Held-to-maturity debt securities	250,915	0
Loans, net of allowance	10,672,620	9,857,946
Accrued interest receivable	33,459	34,349
Financial liabilities:
Other deposits	10,969,461	10,624,731
Securities sold under retail repurchase agreements and federal funds purchased	185,744	141,086
Advances from FHLB	175,000	0
Subordinated debt	369,906	172,712
Carrying Amount
Financial assets:
Cash and cash equivalents	221,279	420,020
Residential mortgage loans held for sale	23,610	39,409
Investments available-for-sale	1,268,823	1,465,896
Held-to-maturity debt securities	274,337
Other investments	52,264	41,166
Loans, net of allowance	10,672,620	9,857,946
Interest rate swap agreements	12,950	5,880
Accrued interest receivable	33,459	34,349
Bank owned life insurance	151,371	147,528
Financial liabilities:
Time deposits	1,504,063	1,290,862
Other deposits	9,465,398	9,333,869
Securities sold under retail repurchase agreements and federal funds purchased	185,744	141,086
Advances from FHLB	175,000
Subordinated debt	369,906	172,712
Interest rate swap agreements	12,950	5,880
Accrued interest payable	4,266	1,516
Estimated Fair Value
Financial assets:
Cash and cash equivalents	221,279	420,020
Residential mortgage loans held for sale	23,610	39,409
Investments available-for-sale	1,268,823	1,465,896
Held-to-maturity debt securities	250,915
Other investments	52,264	41,166
Loans, net of allowance	10,676,985	9,964,924
Interest rate swap agreements	12,950	5,880
Accrued interest receivable	33,459	34,349
Bank owned life insurance	151,371	147,528
Financial liabilities:
Time deposits	1,480,577	1,292,598
Other deposits	9,465,398	9,333,869
Securities sold under retail repurchase agreements and federal funds purchased	185,744	141,086
Advances from FHLB	174,966
Subordinated debt	336,830	175,780
Interest rate swap agreements	12,950	5,880
Accrued interest payable	4,266	1,516
Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimated Fair Value
Financial assets:
Cash and cash equivalents	221,279	420,020
Residential mortgage loans held for sale	0	0
Investments available-for-sale	0	0
Held-to-maturity debt securities	0
Other investments	0	0
Loans, net of allowance	0	0
Interest rate swap agreements	0	0
Accrued interest receivable	33,459	34,349
Bank owned life insurance	0	0
Financial liabilities:
Time deposits	0	0
Other deposits	9,465,398	9,333,869
Securities sold under retail repurchase agreements and federal funds purchased	0	0
Advances from FHLB	0
Subordinated debt	0	0
Interest rate swap agreements	0	0
Accrued interest payable	4,266	1,516
Significant Other Observable Inputs (Level 2) | Estimated Fair Value
Financial assets:
Cash and cash equivalents	0	0
Residential mortgage loans held for sale	23,610	39,409
Investments available-for-sale	1,268,823	1,465,896
Held-to-maturity debt securities	250,915
Other investments	52,264	41,166
Loans, net of allowance	0	0
Interest rate swap agreements	12,950	5,880
Accrued interest receivable	0	0
Bank owned life insurance	151,371	147,528
Financial liabilities:
Time deposits	1,480,577	1,292,598
Other deposits	0	0
Securities sold under retail repurchase agreements and federal funds purchased	185,744	141,086
Advances from FHLB	174,966
Subordinated debt	0	0
Interest rate swap agreements	12,950	5,880
Accrued interest payable	0	0
Significant Unobservable Inputs (Level 3) | Estimated Fair Value
Financial assets:
Cash and cash equivalents	0	0
Residential mortgage loans held for sale	0	0
Investments available-for-sale	0	0
Held-to-maturity debt securities	0
Other investments	0	0
Loans, net of allowance	10,676,985	9,964,924
Interest rate swap agreements	0	0
Accrued interest receivable	0	0
Bank owned life insurance	0	0
Financial liabilities:
Time deposits	0	0
Other deposits	0	0
Securities sold under retail repurchase agreements and federal funds purchased	0	0
Advances from FHLB	0
Subordinated debt	336,830	175,780
Interest rate swap agreements	0	0
Accrued interest payable	$ 0	$ 0

XML

SEGMENT REPORTING - Narrative (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) segment	Jun. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment			2
Amortization of intangible assets	$ 1,466	$ 1,659	$ 2,974	$ 3,356
Community Banking
Segment Reporting Information [Line Items]
Amortization of intangible assets	1,000	1,200	2,100	2,400
Investment Management
Segment Reporting Information [Line Items]
Amortization of intangible assets	400	$ 500	900	$ 900
Investment Management | West Financial and RPJ
Segment Reporting Information [Line Items]
Assets under management	$ 3,400,000		$ 3,400,000

XML

SEGMENT REPORTING - Operating Segments and Reconciliation of Information to Condensed Consolidated Financial Statements (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Interest income	$ 113,909	$ 114,823	$ 219,945	$ 229,084
Interest expense	7,959	6,777	12,544	16,438
Provision/ (credit) for credit losses	3,046	(4,204)	4,681	(38,912)	$ (45,556)
Non-interest income	35,245	26,259	55,840	55,125
Non-interest expense	64,991	62,975	127,138	131,148
Income before income tax expense	73,158	75,534	131,422	175,535
Income tax expense	18,358	18,271	32,687	42,808
Net income	54,800	57,263	98,735	132,727
Assets	13,303,009	12,925,577	13,303,009	12,925,577	$ 12,590,726
Inter-Segment Elimination
Segment Reporting Information [Line Items]
Interest income	(3)	(3)	(6)	(6)
Interest expense	(3)	(3)	(6)	(6)
Provision/ (credit) for credit losses	0	0	0	0
Non-interest income	(12,482)	(4,217)	(14,790)	(4,434)
Non-interest expense	(204)	(217)	(440)	(434)
Income before income tax expense	(12,278)	(4,000)	(14,350)	(4,000)
Income tax expense	0	0	0	0
Net income	(12,278)	(4,000)	(14,350)	(4,000)
Assets	(89,468)	(64,406)	(89,468)	(64,406)
Community Banking | Operating Segments
Segment Reporting Information [Line Items]
Interest income	113,908	114,823	219,945	229,084
Interest expense	7,962	6,780	12,550	16,444
Provision/ (credit) for credit losses	3,046	(4,204)	4,681	(38,912)
Non-interest income	24,658	23,714	39,713	45,439
Non-interest expense	59,123	58,049	116,502	121,744
Income before income tax expense	68,435	77,912	125,925	175,247
Income tax expense	13,635	17,728	27,190	41,566
Net income	54,800	60,184	98,735	133,681
Assets	13,323,298	12,925,577	13,323,298	12,925,577
Insurance | Operating Segments
Segment Reporting Information [Line Items]
Interest income	1	1	1	2
Interest expense	0	0	0	0
Provision/ (credit) for credit losses	0	0	0	0
Non-interest income	17,513	1,246	19,633	3,397
Non-interest expense	2,387	1,324	3,863	2,811
Income before income tax expense	15,127	(77)	15,771	588
Income tax expense	4,217	(21)	4,397	162
Net income	10,910	(56)	11,374	426
Assets	17,804	8,758	17,804	8,758
Investment Management | Operating Segments
Segment Reporting Information [Line Items]
Interest income	3	2	5	4
Interest expense	0	0	0	0
Provision/ (credit) for credit losses	0	0	0	0
Non-interest income	5,556	5,516	11,284	10,723
Non-interest expense	3,685	3,819	7,213	7,027
Income before income tax expense	1,874	1,699	4,076	3,700
Income tax expense	506	564	1,100	1,080
Net income	1,368	1,135	2,976	2,620
Assets	$ 51,375	$ 55,648	$ 51,375	$ 55,648