| CREDIT QUALITY ASSESSMENT |
CREDIT QUALITY ASSESSMENT Allowance for Credit Losses Summary information on the allowance for credit losses on loans for the period indicated is provided in the following table: | | | | | | | | | | | | | | Three Months Ended March 31, | | (In thousands) | 2023 | | 2022 | | Balance at beginning of period | $ | 136,242 | | | $ | 109,145 | | | | | | | | | | | | | | Provision/ (credit) for credit losses - loans (1) | (18,945) | | | 1,635 | | | Loan charge-offs | (171) | | | (306) | | | Loan recoveries | 487 | | | 114 | | | Net charge-offs | 316 | | | (192) | | | Balance at period end | $ | 117,613 | | | $ | 110,588 | |
(1) Excludes the total credit to the provision on unfunded loan commitments for three months ended March 31, 2023 of $2.6 million.
The following table provides summary information regarding collateral dependent loans individually evaluated for credit loss at the dates indicated: | | | | | | | | | | | | | | | | (In thousands) | | March 31, 2023 | | December 31, 2022 | | Collateral dependent loans individually evaluated for credit loss with an allowance | | $ | 18,596 | | | $ | 9,743 | | | Collateral dependent loans individually evaluated for credit loss without an allowance | | 11,246 | | | 16,454 | | | Total individually evaluated collateral dependent loans | | $ | 29,842 | | | $ | 26,197 | | | | | | | | Allowance for credit losses related to loans evaluated individually | | $ | 9,870 | | | $ | 6,902 | | | Allowance for credit losses related to loans evaluated collectively | | 107,743 | | | 129,340 | | | Total allowance for credit losses - loans | | $ | 117,613 | | | $ | 136,242 | |
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 Three Months Ended March 31, 2023 | | | | 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 | | $ | 64,737 | | | $ | 11,646 | | | $ | 18,646 | | | $ | 28,027 | | | $ | 9,424 | | | $ | 1,337 | | | $ | 2,425 | | | $ | 136,242 | | | Provision/ (credit) for credit losses - loans | | (7,780) | | | (1,796) | | | (6,693) | | | (2,254) | | | 350 | | | (233) | | | (539) | | | (18,945) | | | Charge-offs | | — | | | — | | | — | | | (54) | | | (23) | | | — | | | (94) | | | (171) | | | Recoveries | | 5 | | | 26 | | | — | | | 181 | | | 2 | | | — | | | 273 | | | 487 | | | Net recoveries (charge-offs) | | 5 | | | 26 | | | — | | | 127 | | | (21) | | | — | | | 179 | | | 316 | | | Balance at end of period | | $ | 56,962 | | | $ | 9,876 | | | $ | 11,953 | | | $ | 25,900 | | | $ | 9,753 | | | $ | 1,104 | | | $ | 2,065 | | | $ | 117,613 | | | | | | | | | | | | | | | | | | | | Total loans | | $ | 5,167,456 | | | $ | 1,769,928 | | | $ | 1,046,665 | | | $ | 1,437,478 | | | $ | 1,328,524 | | | $ | 223,456 | | | $ | 421,734 | | | $ | 11,395,241 | | | Allowance for credit losses on loans to total loans ratio | | 1.10 | % | | 0.56 | % | | 1.14 | % | | 1.80 | % | | 0.73 | % | | 0.49 | % | | 0.49 | % | | 1.03 | % | | | | | | | | | | | | | | | | | | | Average loans | | $ | 5,136,204 | | | $ | 1,769,680 | | | $ | 1,082,791 | | | $ | 1,444,588 | | | $ | 1,307,761 | | | $ | 223,313 | | | $ | 424,122 | | | $ | 11,388,459 | | | Annualized net charge-offs/ (recoveries) to average loans | | — | % | | (0.01) | % | | — | % | | (0.04) | % | | 0.01 | % | | — | % | | (0.17) | % | | (0.01) | % | | | | | | | | | | | | | | | | | | | Balance of loans individually evaluated for credit loss | | $ | 15,451 | | | $ | 4,949 | | | $ | — | | | $ | 9,442 | | | $ | — | | | $ | — | | | $ | — | | | $ | 29,842 | | | Allowance related to loans evaluated individually | | $ | 1,935 | | | $ | 1,259 | | | $ | — | | | $ | 6,676 | | | $ | — | | | $ | — | | | $ | — | | | $ | 9,870 | | | Individual allowance to loans evaluated individually ratio | | 12.52 | % | | 25.44 | % | | — | % | | 70.71 | % | | — | % | | — | % | | — | % | | 33.07 | % | | Contractual balance of individually evaluated loans | | $ | 15,526 | | | $ | 5,694 | | | $ | — | | | $ | 10,717 | | | $ | — | | | $ | — | | | $ | — | | | $ | 31,937 | | | | | | | | | | | | | | | | | | | | Balance of loans collectively evaluated for credit loss | | $ | 5,152,005 | | | $ | 1,764,979 | | | $ | 1,046,665 | | | $ | 1,428,036 | | | $ | 1,328,524 | | | $ | 223,456 | | | $ | 421,734 | | | $ | 11,365,399 | | | Allowance related to loans evaluated collectively | | $ | 55,027 | | | $ | 8,617 | | | $ | 11,953 | | | $ | 19,224 | | | $ | 9,753 | | | $ | 1,104 | | | $ | 2,065 | | | $ | 107,743 | | | Collective allowance to loans evaluated collectively ratio | | 1.07 | % | | 0.49 | % | | 1.14 | % | | 1.35 | % | | 0.73 | % | | 0.49 | % | | 0.49 | % | | 0.95 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 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 for credit losses - loans | | 19,128 | | | (90) | | | (1,676) | | | 4,774 | | | 4,093 | | | 281 | | | 170 | | | 26,680 | | | Charge-offs | | — | | | — | | | — | | | (716) | | | (155) | | | — | | | (234) | | | (1,105) | | | Recoveries | | 320 | | | 49 | | | — | | | 799 | | | 102 | | | 8 | | | 244 | | | 1,522 | | | Net recoveries (charge-offs) | | 320 | | | 49 | | | — | | | 83 | | | (53) | | | 8 | | | 10 | | | 417 | | | Balance at end of period | | $ | 64,737 | | | $ | 11,646 | | | $ | 18,646 | | | $ | 28,027 | | | $ | 9,424 | | | $ | 1,337 | | | $ | 2,425 | | | $ | 136,242 | | | | | | | | | | | | | | | | | | | | Total loans | | $ | 5,130,094 | | | $ | 1,775,037 | | | $ | 1,090,028 | | | $ | 1,455,885 | | | $ | 1,287,933 | | | $ | 224,772 | | | $ | 432,957 | | | $ | 11,396,706 | | | Allowance for credit losses on loans to total loans ratio | | 1.26 | % | | 0.66 | % | | 1.71 | % | | 1.93 | % | | 0.73 | % | | 0.59 | % | | 0.56 | % | | 1.20 | % | | | | | | | | | | | | | | | | | | | Average loans | | $ | 4,681,607 | | | $ | 1,730,293 | | | $ | 1,112,936 | | | $ | 1,351,906 | | | $ | 1,117,053 | | | $ | 221,341 | | | $ | 423,746 | | | $ | 10,638,882 | | | Net charge-offs/ (recoveries) to average loans | | (0.01) | % | | — | % | | — | % | | (0.01) | % | | — | % | | — | % | | — | % | | — | % | | | | | | | | | | | | | | | | | | | Balance of loans individually evaluated for credit loss | | $ | 9,943 | | | $ | 6,155 | | | $ | — | | | $ | 8,274 | | | $ | 1,487 | | | $ | — | | | $ | 338 | | | $ | 26,197 | | | Allowance related to loans evaluated individually | | $ | 134 | | | $ | 1,261 | | | $ | — | | | $ | 5,507 | | | $ | — | | | $ | — | | | $ | — | | | $ | 6,902 | | | Individual allowance to loans evaluated individually ratio | | 1.35 | % | | 20.49 | % | | — | % | | 66.56 | % | | — | % | | — | % | | — | % | | 26.35 | % | | Contractual balance of individually evaluated loans | | $ | 10,882 | | | $ | 6,849 | | | $ | — | | | $ | 9,893 | | | $ | 1,487 | | | $ | — | | | $ | 364 | | | $ | 29,475 | | | | | | | | | | | | | | | | | | | | Balance of loans collectively evaluated for credit loss | | $ | 5,120,151 | | | $ | 1,768,882 | | | $ | 1,090,028 | | | $ | 1,447,611 | | | $ | 1,286,446 | | | $ | 224,772 | | | $ | 432,619 | | | $ | 11,370,509 | | | Allowance related to loans evaluated collectively | | $ | 64,603 | | | $ | 10,385 | | | $ | 18,646 | | | $ | 22,520 | | | $ | 9,424 | | | $ | 1,337 | | | $ | 2,425 | | | $ | 129,340 | | | Collective allowance to loans evaluated collectively ratio | | 1.26 | % | | 0.59 | % | | 1.71 | % | | 1.56 | % | | 0.73 | % | | 0.59 | % | | 0.56 | % | | 1.14 | % |
Credit Quality The following section provides information on the credit quality of the loan portfolio for the periods indicated below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended March 31, 2023 | | | | 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 | | $ | 9,943 | | | $ | 5,019 | | | $ | — | | | $ | 7,322 | | | $ | 7,439 | | | $ | — | | | $ | 5,059 | | | $ | 34,782 | | | Loans placed on non-accrual | | 14,601 | | | — | | | — | | | 2,621 | | | 2,045 | | | — | | | 447 | | | 19,714 | | | Non-accrual balances transferred to OREO | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Non-accrual balances charged-off | | — | | | — | | | — | | | (54) | | | (23) | | | — | | | (49) | | | (126) | | | Net payments or draws | | (9,093) | | | (70) | | | — | | | (446) | | | (169) | | | — | | | (434) | | | (10,212) | | | Non-accrual loans brought current | | — | | | — | | | — | | | — | | | (357) | | | — | | | (123) | | | (480) | | | Balance at end of period | | $ | 15,451 | | | $ | 4,949 | | | $ | — | | | $ | 9,443 | | | $ | 8,935 | | | $ | — | | | $ | 4,900 | | | $ | 43,678 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 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 | | 4,761 | | | 2,370 | | | — | | | 1,591 | | | 2,593 | | | — | | | 815 | | | 12,130 | | | Non-accrual balances transferred to OREO | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Non-accrual balances charged-off | | — | | | — | | | — | | | (677) | | | (151) | | | — | | | (32) | | | (860) | | | Net payments or draws | | (7,307) | | | (4,366) | | | (650) | | | (2,012) | | | (2,615) | | | (55) | | | (2,060) | | | (19,065) | | | Non-accrual loans brought current | | — | | | (2,291) | | | — | | | — | | | (829) | | | — | | | (389) | | | (3,509) | | | Balance at end of period | | $ | 9,943 | | | $ | 5,019 | | | $ | — | | | $ | 7,322 | | | $ | 7,439 | | | $ | — | | | $ | 5,059 | | | $ | 34,782 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | | | 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 | | $ | 5,150,572 | | | $ | 1,761,671 | | | $ | 1,043,979 | | | $ | 1,424,758 | | | $ | 1,304,124 | | | $ | 222,387 | | | $ | 413,306 | | | $ | 11,320,797 | | | 30-59 days | | 945 | | | — | | | 2,240 | | | 154 | | | 13,402 | | | 739 | | | 2,528 | | | 20,008 | | | 60-89 days | | 273 | | | 3,308 | | | 446 | | | 121 | | | 1,711 | | | 330 | | | 1,000 | | | 7,189 | | | Total performing loans | | 5,151,790 | | | 1,764,979 | | | 1,046,665 | | | 1,425,033 | | | 1,319,237 | | | 223,456 | | | 416,834 | | | 11,347,994 | | | Non-performing loans: | | | | | | | | | | | | | | | | | | Non-accrual loans | | 15,451 | | | 4,949 | | | — | | | 9,443 | | | 8,935 | | | — | | | 4,900 | | | 43,678 | | | Loans greater than 90 days past due | | 215 | | | — | | | — | | | 3,002 | | | 352 | | | — | | | — | | | 3,569 | | Restructured loans (1) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total non-performing loans | | 15,666 | | | 4,949 | | | — | | | 12,445 | | | 9,287 | | | — | | | 4,900 | | | 47,247 | | | Total loans | | $ | 5,167,456 | | | $ | 1,769,928 | | | $ | 1,046,665 | | | $ | 1,437,478 | | | $ | 1,328,524 | | | $ | 223,456 | | | $ | 421,734 | | | $ | 11,395,241 | |
(1) Effective January 1, 2023, the Company adopted ASU 2022-02, which eliminated the accounting and recognition of troubled debt restructurings ("TDRs"). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 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 | | $ | 5,104,204 | | | $ | 1,767,875 | | | $ | 1,090,028 | | | $ | 1,443,012 | | | $ | 1,261,878 | | | $ | 222,144 | | | $ | 422,989 | | | $ | 11,312,130 | | | 30-59 days | | 9,735 | | | 1,007 | | | — | | | 3,556 | | | 11,307 | | | 2,628 | | | 4,343 | | | 32,576 | | | 60-89 days | | 6,212 | | | — | | | — | | | 41 | | | 5,822 | | | — | | | 566 | | | 12,641 | | | Total performing loans | | 5,120,151 | | | 1,768,882 | | | 1,090,028 | | | 1,446,609 | | | 1,279,007 | | | 224,772 | | | 427,898 | | | 11,357,347 | | | Non-performing loans: | | | | | | | | | | | | | | | | | | Non-accrual loans | | 9,943 | | | 5,019 | | | — | | | 7,322 | | | 7,439 | | | — | | | 5,059 | | | 34,782 | | | Loans greater than 90 days past due | | — | | | — | | | — | | | 1,002 | | | — | | | — | | | — | | | 1,002 | | | Restructured loans | | — | | | 1,136 | | | — | | | 952 | | | 1,487 | | | — | | | — | | | 3,575 | | | Total non-performing loans | | 9,943 | | | 6,155 | | | — | | | 9,276 | | | 8,926 | | | — | | | 5,059 | | | 39,359 | | | Total loans | | $ | 5,130,094 | | | $ | 1,775,037 | | | $ | 1,090,028 | | | $ | 1,455,885 | | | $ | 1,287,933 | | | $ | 224,772 | | | $ | 432,957 | | | $ | 11,396,706 | |
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 Three Months Ended March 31, 2023 | | | | 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 | | $ | 12,697 | | | $ | 4,984 | | | $ | — | | | $ | 8,383 | | | $ | 8,187 | | | $ | — | | | $ | 4,980 | | | $ | 39,231 | | Contractual interest income due on non- accrual loans during the period | | $ | 140 | | | $ | 73 | | | $ | — | | | $ | 140 | | | $ | 90 | | | $ | — | | | $ | 106 | | | $ | 549 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 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 | | $ | 11,892 | | | $ | 7,314 | | | $ | 617 | | | $ | 7,768 | | | $ | 7,769 | | | $ | 21 | | | $ | 5,811 | | | $ | 41,192 | | Contractual interest income due on non- accrual loans during the period | | $ | 713 | | | $ | 106 | | | $ | 30 | | | $ | 491 | | | $ | 319 | | | $ | 1 | | | $ | 349 | | | $ | 2,009 | |
There was no interest income recognized on non-accrual loans during the three months ended March 31, 2023. 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 three months ended March 31, 2023 new loans placed on non-accrual status totaled $19.7 million and the related amount of reversed uncollected accrued interest was $0.3 million.
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 March 31, 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | | | Term Loans by Origination Year | | Revolving | | | | (In thousands) | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | Loans | | Total | | Commercial Investor R/E: | | | | | | | | | | | | | | | | | | Pass | | $ | 173,232 | | | $ | 1,412,186 | | | $ | 1,239,661 | | | $ | 689,500 | | | $ | 558,229 | | | $ | 1,024,028 | | | $ | 28,344 | | | $ | 5,125,180 | | | Special Mention | | 4,619 | | | 10,349 | | | 4,587 | | | — | | | 93 | | | 3,253 | | | — | | | 22,901 | | | Substandard | | 273 | | | 550 | | | 13,505 | | | — | | | 1,405 | | | 3,642 | | | — | | | 19,375 | | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | | $ | 178,124 | | | $ | 1,423,085 | | | $ | 1,257,753 | | | $ | 689,500 | | | $ | 559,727 | | | $ | 1,030,923 | | | $ | 28,344 | | | $ | 5,167,456 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | Commercial Owner-Occupied R/E: | | | | | | | | | | | | | | | | | | Pass | | $ | 49,900 | | | $ | 373,223 | | | $ | 324,299 | | | $ | 236,977 | | | $ | 253,818 | | | $ | 498,559 | | | $ | 1,038 | | | $ | 1,737,814 | | | Special Mention | | 731 | | | 1,530 | | | — | | | 1,277 | | | 1,716 | | | 8,682 | | | — | | | 13,936 | | | Substandard | | 1,338 | | | 6,527 | | | 71 | | | 355 | | | 6,056 | | | 3,831 | | | — | | | 18,178 | | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | | $ | 51,969 | | | $ | 381,280 | | | $ | 324,370 | | | $ | 238,609 | | | $ | 261,590 | | | $ | 511,072 | | | $ | 1,038 | | | $ | 1,769,928 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | Commercial AD&C: | | | | | | | | | | | | | | | | | | Pass | | $ | 126,933 | | | $ | 334,502 | | | $ | 325,527 | | | $ | 94,337 | | | $ | 32,053 | | | $ | 14,932 | | | $ | 116,512 | | | $ | 1,044,796 | | | Special Mention | | — | | | 1,073 | | | — | | | — | | | — | | | — | | | — | | | 1,073 | | | Substandard | | — | | | 796 | | | — | | | — | | | — | | | — | | | — | | | 796 | | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | | $ | 126,933 | | | $ | 336,371 | | | $ | 325,527 | | | $ | 94,337 | | | $ | 32,053 | | | $ | 14,932 | | | $ | 116,512 | | | $ | 1,046,665 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | Commercial Business: | | | | | | | | | | | | | | | | | | Pass | | $ | 43,548 | | | $ | 337,157 | | | $ | 219,980 | | | $ | 85,098 | | | $ | 99,564 | | | $ | 147,806 | | | $ | 467,480 | | | $ | 1,400,633 | | | Special Mention | | — | | | 330 | | | 650 | | | 1,024 | | | 6,818 | | | 564 | | | 12,977 | | | 22,363 | | | Substandard | | — | | | 3,371 | | | 2,079 | | | 956 | | | 1,995 | | | 2,243 | | | 3,838 | | | 14,482 | | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | | $ | 43,548 | | | $ | 340,858 | | | $ | 222,709 | | | $ | 87,078 | | | $ | 108,377 | | | $ | 150,613 | | | $ | 484,295 | | | $ | 1,437,478 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 29 | | | $ | 25 | | | $ | 54 | | | | | | | | | | | | | | | | | | | | Residential Mortgage: | | | | | | | | | | | | | | | | | | Beacon score: | | | | | | | | | | | | | | | | | | 660-850 | | $ | 15,508 | | | $ | 336,165 | | | $ | 369,442 | | | $ | 170,124 | | | $ | 41,488 | | | $ | 293,891 | | | $ | — | | | $ | 1,226,618 | | | 600-659 | | — | | | 6,648 | | | 13,800 | | | 4,119 | | | 3,885 | | | 30,112 | | | — | | | 58,564 | | | 540-599 | | 305 | | | 2,929 | | | 3,361 | | | 526 | | | 1,517 | | | 8,986 | | | — | | | 17,624 | | | less than 540 | | — | | | 365 | | | 3,025 | | | 3,479 | | | 3,047 | | | 15,802 | | | — | | | 25,718 | | | Total | | $ | 15,813 | | | $ | 346,107 | | | $ | 389,628 | | | $ | 178,248 | | | $ | 49,937 | | | $ | 348,791 | | | $ | — | | | $ | 1,328,524 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 23 | | | $ | — | | | $ | 23 | | | | | | | | | | | | | | | | | | | | Residential Construction: | | | | | | | | | | | | | | | | | | Beacon score: | | | | | | | | | | | | | | | | | | 660-850 | | $ | 4,482 | | | $ | 152,343 | | | $ | 50,886 | | | $ | 8,596 | | | $ | 150 | | | $ | 2,877 | | | $ | — | | | $ | 219,334 | | | 600-659 | | — | | | 2,163 | | | 739 | | | — | | | — | | | — | | | — | | | 2,902 | | | 540-599 | | — | | | — | | | 401 | | | — | | | — | | | — | | | — | | | 401 | | | less than 540 | | — | | | — | | | 819 | | | — | | | — | | | — | | | — | | | 819 | | | Total | | $ | 4,482 | | | $ | 154,506 | | | $ | 52,845 | | | $ | 8,596 | | | $ | 150 | | | $ | 2,877 | | | $ | — | | | $ | 223,456 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | Consumer: | | | | | | | | | | | | | | | | | | Beacon score: | | | | | | | | | | | | | | | | | | 660-850 | | $ | 2,976 | | | $ | 6,559 | | | $ | 2,608 | | | $ | 1,133 | | | $ | 2,084 | | | $ | 23,941 | | | $ | 343,677 | | | $ | 382,978 | | | 600-659 | | 47 | | | 554 | | | 31 | | | 34 | | | 112 | | | 5,949 | | | 12,384 | | | 19,111 | | | 540-599 | | 12 | | | 396 | | | 84 | | | 39 | | | 129 | | | 2,299 | | | 5,519 | | | 8,478 | | | less than 540 | | 40 | | | 228 | | | 71 | | | 30 | | | 459 | | | 3,319 | | | 7,020 | | | 11,167 | | | Total | | $ | 3,075 | | | $ | 7,737 | | | $ | 2,794 | | | $ | 1,236 | | | $ | 2,784 | | | $ | 35,508 | | | $ | 368,600 | | | $ | 421,734 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 49 | | | $ | 45 | | | $ | 94 | | | | | | | | | | | | | | | | | | | | Total loans | | $ | 423,944 | | | $ | 2,989,944 | | | $ | 2,575,626 | | | $ | 1,297,604 | | | $ | 1,014,618 | | | $ | 2,094,716 | | | $ | 998,789 | | | $ | 11,395,241 | |
The following table provides information about credit quality indicators by the year of origination as of December 31, 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | | Term Loans by Origination Year | | Revolving | | | | (In thousands) | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 | | Prior | | Loans | | Total | | Commercial Investor R/E: | | | | | | | | | | | | | | | | | | Pass | | $ | 1,510,446 | | | $ | 1,197,504 | | | $ | 694,756 | | | $ | 567,247 | | | $ | 335,103 | | | $ | 742,405 | | | $ | 15,242 | | | $ | 5,062,703 | | | Special Mention | | 32,661 | | | 17,146 | | | 468 | | | 94 | | | 473 | | | 4,814 | | | — | | | 55,656 | | | Substandard | | 557 | | | 1,896 | | | — | | | — | | | 8,239 | | | 1,043 | | | — | | | 11,735 | | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | | $ | 1,543,664 | | | $ | 1,216,546 | | | $ | 695,224 | | | $ | 567,341 | | | $ | 343,815 | | | $ | 748,262 | | | $ | 15,242 | | | $ | 5,130,094 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | Commercial Owner-Occupied R/E: | | | | | | | | | | | | | | | | | | Pass | | $ | 391,340 | | | $ | 328,657 | | | $ | 240,738 | | | $ | 260,114 | | | $ | 140,841 | | | $ | 381,386 | | | $ | 1,167 | | | $ | 1,744,243 | | | Special Mention | | 4,567 | | | — | | | 1,301 | | | 1,740 | | | 2,066 | | | 7,323 | | | — | | | 16,997 | | | Substandard | | 3,219 | | | 160 | | | 133 | | | 6,110 | | | 2,010 | | | 2,165 | | | — | | | 13,797 | | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | | $ | 399,126 | | | $ | 328,817 | | | $ | 242,172 | | | $ | 267,964 | | | $ | 144,917 | | | $ | 390,874 | | | $ | 1,167 | | | $ | 1,775,037 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | Commercial AD&C: | | | | | | | | | | | | | | | | | | Pass | | $ | 366,096 | | | $ | 439,468 | | | $ | 113,713 | | | $ | 34,340 | | | $ | 14,816 | | | $ | — | | | $ | 119,727 | | | $ | 1,088,160 | | | Special Mention | | 1,073 | | | — | | | — | | | — | | | — | | | — | | | 795 | | | 1,868 | | | Substandard | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | | $ | 367,169 | | | $ | 439,468 | | | $ | 113,713 | | | $ | 34,340 | | | $ | 14,816 | | | $ | — | | | $ | 120,522 | | | $ | 1,090,028 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | Commercial Business: | | | | | | | | | | | | | | | | | | Pass | | $ | 330,598 | | | $ | 223,245 | | | $ | 95,787 | | | $ | 105,922 | | | $ | 77,891 | | | $ | 78,009 | | | $ | 508,839 | | | $ | 1,420,291 | | | Special Mention | | 127 | | | 458 | | | 1,107 | | | 7,787 | | | 498 | | | 322 | | | 13,225 | | | 23,524 | | | Substandard | | 2,902 | | | 1,611 | | | 1,094 | | | 2,030 | | | 449 | | | 2,121 | | | 1,863 | | | 12,070 | | | Doubtful | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total | | $ | 333,627 | | | $ | 225,314 | | | $ | 97,988 | | | $ | 115,739 | | | $ | 78,838 | | | $ | 80,452 | | | $ | 523,927 | | | $ | 1,455,885 | | | Current period gross charge-offs | | $ | 174 | | | $ | — | | | $ | — | | | $ | — | | | $ | 138 | | | $ | 404 | | | $ | — | | | $ | 716 | | | | | | | | | | | | | | | | | | | | Residential Mortgage: | | | | | | | | | | | | | | | | | | Beacon score: | | | | | | | | | | | | | | | | | | 660-850 | | $ | 330,109 | | | $ | 344,062 | | | $ | 171,330 | | | $ | 41,883 | | | $ | 51,651 | | | $ | 262,570 | | | $ | — | | | $ | 1,201,605 | | | 600-659 | | 4,571 | | | 6,196 | | | 1,173 | | | 3,925 | | | 6,041 | | | 24,006 | | | — | | | 45,912 | | | 540-599 | | 369 | | | 4,013 | | | 1,439 | | | 1,256 | | | 1,931 | | | 6,945 | | | — | | | 15,953 | | | less than 540 | | 1,860 | | | 3,036 | | | 2,892 | | | 3,822 | | | 2,347 | | | 10,506 | | | — | | | 24,463 | | | Total | | $ | 336,909 | | | $ | 357,307 | | | $ | 176,834 | | | $ | 50,886 | | | $ | 61,970 | | | $ | 304,027 | | | $ | — | | | $ | 1,287,933 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 24 | | | $ | 131 | | | $ | — | | | $ | 155 | | | | | | | | | | | | | | | | | | | | Residential Construction: | | | | | | | | | | | | | | | | | | Beacon score: | | | | | | | | | | | | | | | | | | 660-850 | | $ | 131,259 | | | $ | 75,844 | | | $ | 12,133 | | | $ | 150 | | | $ | 1,432 | | | $ | 1,245 | | | $ | — | | | $ | 222,063 | | | 600-659 | | 908 | | | 373 | | | — | | | — | | | — | | | — | | | — | | | 1,281 | | | 540-599 | | 609 | | | — | | | — | | | — | | | — | | | — | | | — | | | 609 | | | less than 540 | | — | | | 819 | | | — | | | — | | | — | | | — | | | — | | | 819 | | | Total | | $ | 132,776 | | | $ | 77,036 | | | $ | 12,133 | | | $ | 150 | | | $ | 1,432 | | | $ | 1,245 | | | $ | — | | | $ | 224,772 | | | Current period gross charge-offs | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | Consumer: | | | | | | | | | | | | | | | | | | Beacon score: | | | | | | | | | | | | | | | | | | 660-850 | | $ | 6,689 | | | $ | 2,346 | | | $ | 1,201 | | | $ | 2,147 | | | $ | 2,047 | | | $ | 23,170 | | | $ | 359,468 | | | $ | 397,068 | | | 600-659 | | 658 | | | 467 | | | 59 | | | 198 | | | 664 | | | 5,459 | | | 11,269 | | | 18,774 | | | 540-599 | | 123 | | | 56 | | | — | | | 465 | | | 316 | | | 2,802 | | | 3,824 | | | 7,586 | | | less than 540 | | 156 | | | 57 | | | 40 | | | 133 | | | 209 | | | 2,918 | | | 6,016 | | | 9,529 | | | Total | | $ | 7,626 | | | $ | 2,926 | | | $ | 1,300 | | | $ | 2,943 | | | $ | 3,236 | | | $ | 34,349 | | | $ | 380,577 | | | $ | 432,957 | | | Current period gross charge-offs | | $ | — | | | $ | 5 | | | $ | 15 | | | $ | — | | | $ | 13 | | | $ | 20 | | | $ | 181 | | | $ | 234 | | | | | | | | | | | | | | | | | | | | Total loans | | $ | 3,120,897 | | | $ | 2,647,414 | | | $ | 1,339,364 | | | $ | 1,039,363 | | | $ | 649,024 | | | $ | 1,559,209 | | | $ | 1,041,435 | | | $ | 11,396,706 | |
Effective January 1, 2023, the Company fully adopted provision of ASU 2022-02 that eliminated accounting, classification and disclosures of loans modified into troubled debt restructurings.
As a part of our risk management practices, we may consider modifying a loan for a borrower experiencing a financial difficulty that provides a certain degree of a payment relief. Modification types primarily include a reduction in the interest rate or an extension of the existing term. We do not provide modifications that result in the reduction of the outstanding principal balance. During the three months ended March 31, 2023, we modified two commercial loans to borrowers experiencing financial difficulty with a total outstanding balance of $0.2 million. Both of the modified loans were provided term extensions ranging from six to 12 months and were performing in line with their contractual loan agreements at March 31, 2023.
Other Real Estate Owned Other real estate owned ("OREO") totaled $0.6 million at both March 31, 2023 and December 31, 2022, respectively. There were no consumer mortgage loans secured by residential real estate property for which formal foreclosure proceedings were in process as of March 31, 2023.
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