Loans (Tables)

9 Months Ended

Sep. 30, 2021

Loans And Leases Receivable Net Reported Amount [Abstract]

Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following:

	September 30, 2021			December 31, 2020
	(In Thousands)
Real Estate:
Residential	$	1,129,877		$	1,201,051
Commercial		2,389,759			2,383,001
Construction		885,586			667,649
		4,405,222			4,251,701
Other Loans:
Commercial		952,729			1,202,353
Home equity and improvement		264,140			272,701
Consumer finance		125,163			120,729
		1,342,032			1,595,783
Loans before deferred loan origination fees and costs		5,747,254			5,847,484
Deduct:
Undisbursed construction loan funds		(481,434	)		(355,065	)
Net deferred loan origination fees and costs		3,746			(1,179	)
Allowance for credit losses		(73,217	)		(82,079	)
Total loans	$	5,196,349		$	5,409,161

Schedule of Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method

The following table discloses allowance for credit loss (“ACL”) activity for the three and nine months ended September 30, 2021 and 2020 by portfolio segment (in thousands):

Three Months Ended September 30, 2021	1-4 Family Residential Real Estate			Commercial Real Estate			Construction		Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	15,268		$	34,461		$	2,739	$	12,211		$	4,988		$	1,700		$	71,367
Charge-Offs		(27	)		(84	)		—		(375	)		(47	)		(85	)		(618	)
Recoveries		75			143			—		576			23			57			874
Provisions		(1,567	)		(428	)		882		3,016			(276	)		(33	)		1,594
Ending Allowance	$	13,749		$	34,092		$	3,621	$	15,428		$	4,688		$	1,639		$	73,217

Nine Months Ended September 30, 2021	1-4 Family Residential Real Estate			Commercial Real Estate			Construction		Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	17,534		$	43,417		$	2,741	$	11,665		$	4,739		$	1,983		$	82,079
Charge-Offs		(29	)		(689	)		—		(445	)		(50	)		(227	)		(1,440	)
Recoveries		165			332			12		1,279			217			122			2,127
Provisions		(3,921	)		(8,968	)		868		2,929			(218	)		(239	)		(9,549	)
Ending Allowance	$	13,749		$	34,092		$	3,621	$	15,428		$	4,688		$	1,639		$	73,217

Three Months Ended September 30, 2020	1-4 Family Residential Real Estate			Commercial Real Estate			Construction		Commercial		Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	23,783		$	44,057		$	1,137	$	11,839	$	4,216		$	3,523		$	88,555
Charge-Offs		—			(4,172	)		—		—		(12	)		(35	)		(4,219	)
Recoveries		7			581			—		266		41			28			923
Provisions		(5,622	)		8,109			1,352		1,139		148			(1,468	)		3,658
Ending Allowance	$	18,168		$	48,575		$	2,489	$	13,244	$	4,393		$	2,048		$	88,917

Nine Months Ended September 30, 2020	1-4 Family Residential Real Estate			Commercial Real Estate			Construction			Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	2,867		$	16,302		$	996		$	9,003		$	1,700		$	375		$	31,243
Impact of ASC 326 Adoption		1,765			3,682			(223	)		(2,263	)		(521	)		(86	)		2,354
Acquisition related allowance for credit loss (PCD)		1,077			4,053			—			2,272			248			48			7,698
Charge-Offs		(257	)		(4,237	)		(1	)		(133	)		(98	)		(222	)		(4,948	)
Recoveries		223			1,110			—			1,602			177			146			3,258
Provisions⁽¹⁾		12,493			27,665			1,717			2,763			2,887			1,787			49,312
Ending Allowance	$	18,168		$	48,575		$	2,489		$	13,244		$	4,393		$	2,048		$	88,917

(1) Provision for the nine months ended September 30, 2020, includes $25.9 million as a result of the Merger with UCFC.

Summary of Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans and Collateral Type

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	324	$	—	$	—	$	—	$	324
Commercial		25,563		—		—		—		25,563
Construction		—		—		—		—		—

Other Loans:
Commercial		1,631		1,215		20,617		148		23,611
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—

Total	$	27,518	$	1,215	$	20,617	$	148	$	49,498

	December 31, 2020
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	1,024	$	—	$	—	$	—	$	1,024
Commercial		33,999		—		—		—		33,999
Construction		—		—		—		—		—

Other Loans:
Commercial		1,426		5,317		4,943		125		11,811
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—

Total	$	36,449	$	5,317	$	4,943	$	125	$	46,834

Schedule of current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned

Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually analyzed loans. All loans greater than 90 days past due are placed on non-accrual status. The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated:

	September 30, 2021		December 31, 2020
	(In Thousands)
Non-accrual loans with reserve	$	47,047	$	35,234
Non-accrual loans without reserve		12,818	$	16,448
Loans over 90 days past due and still accruing		—		—
Total non-performing loans		59,865		51,682
Real estate and other assets held for sale		261		343
Total non-performing assets	$	60,126	$	52,025
Troubled debt restructuring, still accruing	$	6,503	$	7,173

Schedule of Aging of the Amortized Cost/ Recorded Investment in Past Due and Non- Accrual Loans

The following table presents the aging of the amortized cost in past due and non-accrual loans as of September 30, 2021, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non- Accrual
Real Estate:
Residential		1,110,037		480		5,051		5,476		11,007		6,777
Commercial		2,377,310		1,414		1,649		1,904		4,967		17,982
Construction		402,831		—		1,321		—		1,321		—

Other Loans:
Commercial		937,552		756		879		526		2,161		19,007
Home equity and improvement		257,238		1,447		318		1,406		3,171		1,807
Consumer finance		122,999		1,304		485		1,439		3,228		1,539
PCD		28,899		46		588		6,211		6,845		12,753

Total Loans	$	5,236,866	$	5,447	$	10,291	$	16,962	$	32,700	$	59,865

The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2020, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non Accrual
Real Estate:
Residential	$	1,173,979	$	433	$	7,669	$	9,000	$	17,102	$	10,178
Commercial		2,357,909		1,033		369		844		2,246		11,980
Construction		310,152		—		1,626		806		2,432		806

Other Loans:
Commercial		1,172,636		9		4		394		407		1,365
Home equity and improvement		262,373		3,440		839		1,137		5,416		1,537
Consumer finance		117,088		1,687		491		1,521		3,699		1,624
PCD		50,218		402		1,882		13,299		15,583		24,192

Total Loans	$	5,444,355	$	7,004	$	12,880	$	27,001	$	46,885	$	51,682

Summary of Breakout of Commercial Deferrals

A breakout of deferrals by loan category is as follows (in thousands):

	September 30, 2021 Balance deferred		December 31, 2020 Balance deferred
Residential real estate			$	7,016
Commercial real estate		—		34,831
Construction		—		9,579
Commercial		—		1,628
Home equity and improvement		—		114
Consumer finance		—		282
Total	$	-	$	53,450

Summary of Breakout of Deferrals by Loan Category

A breakout of deferrals by loan category is as follows (in thousands):

	September 30, 2021 Balance deferred		December 31, 2020 Balance deferred
Residential real estate			$	7,016
Commercial real estate		—		34,831
Construction		—		9,579
Commercial		—		1,628
Home equity and improvement		—		114
Consumer finance		—		282
Total	$	-	$	53,450

Schedule of Present Loans by Class Modified as TDRs that Occurred

The following tables present loans by class modified as TDRs that occurred during the three and nine months ended September 30, 2021 and 2020:

	Loans Modified as a TDR for the Three Months Ended September 30, 2021 ($ in thousands)				Loans Modified as a TDR for the Nine Months Ended September 30, 2021 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		1	$	263		4	$	512
Commercial		—		—		—		—
Construction		—		—		—		—

Other Loans:
Commercial		1		275		6		1,853
Home equity and improvement		—		—		—		—
Consumer finance		—		—		—		—

Total		2	$	538		10	$	2,365

The loans described above increased the ACL by $9,000 and $382,000 in the three and nine months ended September 30, 2021.

	Loans Modified as a TDR for the Three Months Ended September 30, 2020 ($ in thousands)				Loans Modified as a TDR for the Nine Months Ended September 30, 2020 ($ in thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		1	$	51		6	$	660
Commercial		1		451		5		7,327
Construction		—		—		—		—

Other Loans:
Commercial		3		7,347		8		7,503
Home equity and improvement		3		66		4		92
Consumer finance		—		—		—		—

Total		8	$	7,915		23	$	15,582

Schedule of Present Loans by Class Modified as TDRs for Which there was a Payment Default within Twelve Months

There were no TDRs that subsequently defaulted as of September 30, 2021. The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2020:

	Three Months Ended September 30, 2020				For the Nine Months Ended September 30, 2020
	($ in thousands)				($ in thousands)
Troubled Debt Restructurings That Subsequently Defaulted	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		2	$	211		8	$	647
Commercial		2		128		4		322
Construction		—		—		—		—

Other Loans:
Commercial		—		—		2		250
Home equity and improvement		1		4		4		330
Consumer finance		—		—		1		21

Total		5	$	343		19	$	1,570

Schedule of Risk Category of Loans by Class of Loans

As of September 30, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,111,776	$	1,315	$	7,953	$	-	$	7,953	$	1,121,044
Commercial		2,223,425		117,068		41,784		—		41,784		2,382,277
Construction		384,620		19,532		—		—		—		404,152

Other Loans:
Commercial		899,137		20,474		20,102		—		20,102		939,713
Home equity and improvement		258,576		—		1,833		—		1,833		260,409
Consumer finance		124,657		—		1,570		—		1,570		126,227
PCD		18,793		102		16,849		—		16,849		35,744

Total Loans	$	5,020,984	$	158,491	$	90,091	$	—	$	90,091	$	5,269,566

As of December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,187,923	$	795	$	2,363	$	-	$	2,363	$	1,191,081
Commercial		2,203,652		111,039		45,464		—		45,464		2,360,155
Construction		299,866		12,718		—		—		—		312,584

Other Loans:
Commercial		1,142,289		23,907		6,847		—		6,847		1,173,043
Home equity and improvement		267,350		—		439		—		439		267,789
Consumer finance		120,682		—		105		—		105		120,787
PCD		26,829		3,813		35,159		—		35,159		65,801

Total Loans	$	5,248,591	$	152,272	$	90,377	$	—	$	90,377	$	5,491,240

Summary of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans

The tables below presents the amortized cost basis of loans by credit quality indicator and class of loans as of September 30, 2021 and December 31, 2020 (in thousands):

	Term of loans by origination
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of September 30, 2021

Real Estate
Residential:
Risk Rating
Pass	$	144,877	$	352,127	$	126,426	$	72,304	$	80,201	$	333,819	$	2,022	$	1,111,776
Special Mention		—		192		—		—		60		137		926		1,315
Substandard		170		509		1,123		744		1,243		4,164		—		7,953
Doubtful		—		—		—		—		—		—		—		—
Total	$	145,047	$	352,828	$	127,549	$	73,048	$	81,504	$	338,120	$	2,948	$	1,121,044

Commercial:
Risk Rating
Pass	$	303,260	$	493,517	$	416,426	$	245,256	$	249,295	$	504,502	$	11,169	$	2,223,425
Special Mention		297		5,917		5,585		11,143		64,392		28,794		940		117,068
Substandard		172		581		6,745		15,815		62		17,048		1,361		41,784
Doubtful		—		—		—		—		—		—		—		—
Total	$	303,729	$	500,015	$	428,756	$	272,214	$	313,749	$	550,344	$	13,470	$	2,382,277

Construction:
Risk Rating
Pass	$	185,751	$	87,035	$	91,614	$	9,623	$	10,452	$	145	$	-	$	384,620
Special Mention		—		12,500		—		5,995		1,037		—		—		19,532
Substandard		—		—				—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	185,751	$	99,535	$	91,614	$	15,618	$	11,489	$	145	$	-	$	404,152

Other Loans
Commercial:
Risk Rating
Pass	$	295,264	$	151,822	$	95,567	$	55,773	$	27,759	$	21,213	$	251,739	$	899,137
Special Mention		—		999		4,223		419		1,597		4,852		8,384		20,474
Substandard		100		15,993		1,261		259		293		438		1,758		20,102
Doubtful		—		—		—		—		—		—		—		—
Total	$	295,364	$	168,814	$	101,051	$	56,451	$	29,649	$	26,503	$	261,881	$	939,713

Home equity and Improvement:
Risk Rating
Pass	$	19,000	$	7,258	$	5,287	$	3,206	$	6,020	$	31,000	$	186,805	$	258,576
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		29		49		28		631		1,096		1,833
Doubtful		—		—		—		—		—		—		—		—
Total	$	19,000	$	7,258	$	5,316	$	3,255	$	6,048	$	31,631	$	187,901	$	260,409

Consumer Finance:
Risk Rating
Pass	$	39,226	$	28,304	$	25,904	$	11,741	$	5,481	$	3,683	$	10,318	$	124,657
Special Mention		—		—		—		—		—		—		—		—
Substandard		10		632		555		147		53		164		9		1,570
Doubtful		—		—		—		—		—		—		—		—
Total	$	39,236	$	28,936	$	26,459	$	11,888	$	5,534	$	3,847	$	10,327	$	126,227

PCD:
Risk Rating
Pass	$	-	$	-	$	173	$	1,835	$	1,946	$	12,650	$	2,189	$	18,793
Special Mention		—		—		—		—		—		102		—		102
Substandard		—		—		69		30		6,274		7,331		3,145		16,849
Doubtful		—		—		—		—		—		—		—		—
Total	$	-	$	-	$	242	$	1,865	$	8,220	$	20,083	$	5,334	$	35,744

	Term of loans by origination
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
As of December 31, 2020

Real Estate
Residential:
Risk Rating
Pass	$	250,979	$	196,158	$	136,247	$	130,759	$	137,581	$	333,572	$	2,627	$	1,187,923
Special Mention		199		—		—		62		116		211		207		795
Substandard		—		74		289		252		136		1,612				2,363
Doubtful		—		—		—		—		—		—		—		—
Total	$	251,178	$	196,232	$	136,536	$	131,073	$	137,833	$	335,395	$	2,834	$	1,191,081

Commercial:
Risk Rating
Pass	$	517,691	$	457,905	$	299,072	$	300,573	$	198,247	$	414,082	$	16,082	$	2,203,652
Special Mention		6,014		7,239		10,452		60,712		7,977		17,723		922		111,039
Substandard		—		279		18,851		1,937		3,143		19,107		2,147		45,464
Doubtful		—		—		—		—		—		—		—		—
Total	$	523,705	$	465,423	$	328,375	$	363,222	$	209,367	$	450,912	$	19,151	$	2,360,155

Construction:
Risk Rating
Pass	$	101,616	$	100,553	$	82,972	$	11,666	$	2,911	$	148	$	-	$	299,866
Special Mention		5,587		—		7,131		—		—		—		—		12,718
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	107,203	$	100,553	$	90,103	$	11,666	$	2,911	$	148	$	-	$	312,584

Other Loans
Commercial:
Risk Rating
Pass	$	568,678	$	144,977	$	82,492	$	42,421	$	21,262	$	21,969	$	260,490	$	1,142,289
Special Mention		1,180		2,026		2,514		2,109		37		5,121		10,920		23,907
Substandard		148		201		497		543		257		269		4,932		6,847
Doubtful		—		—		—		—		—		—		—		—
Total	$	570,006	$	147,204	$	85,503	$	45,073	$	21,556	$	27,359	$	276,342	$	1,173,043

Home equity and Improvement:
Risk Rating
Pass	$	8,736	$	7,483	$	4,508	$	7,963	$	7,748	$	31,382	$	199,530	$	267,350
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		86		353		439
Doubtful		—		—		—		—		—		—		—		—
Total	$	8,736	$	7,483	$	4,508	$	7,963	$	7,748	$	31,468	$	199,883	$	267,789

Consumer Finance:
Risk Rating
Pass	$	38,665	$	37,601	$	19,401	$	10,607	$	4,393	$	3,272	$	6,743	$	120,682
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		98		3		—		4		—		—		105
Doubtful		—		—		—		—		—		—		—		—
Total	$	38,665	$	37,699	$	19,404	$	10,607	$	4,397	$	3,272	$	6,743	$	120,787

PCD:
Risk Rating
Pass	$	-	$	45	$	2,378	$	2,547	$	1,524	$	18,998	$	1,337	$	26,829
Special Mention		—		—		—		1,160		509		1,758		386		3,813
Substandard		—		—		—		14,371		2,502		7,207		11,079		35,159
Doubtful		—		—		—		—		—		—		—		—
Total	$	-	$	45	$	2,378	$	18,078	$	4,535	$	27,963	$	12,802	$	65,801

Summary of Credit Loss Estimation

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family nonowner occupied	DCF	National unemployment
	1-4 Family owner occupied	DCF	National unemployment
Commercial real estate	Commercial real estate nonowner occupied	DCF	National unemployment
	Commercial real estate owner occupied	DCF	National unemployment
	Multi Family	DCF	National unemployment
	Agriculture Land	DCF	National unemployment
	Other commercial real estate	DCF	National unemployment
Construction secured by real estate	Construction	PD/LGD	Call report loss history

Commercial	Commercial working capital	PD/LGD	Call report loss history
	Agriculture production	PD/LGD	Call report loss history
	Other commercial	PD/LGD	Call report loss history
Home equity and improvement	Home equity and improvement	PD/LGD	Call report loss history
Consumer finance	Consumer finance	Remaining life	Call report loss history

Schedule of Par Value of Purchased Loans

Par value of purchased loans follows (in thousands):

	2020
Par value of acquired loans at acquisition	$	2,247,317
Credit discount		(34,610	)
Non-credit (discount)/premium at acquisition		8,497
Purchase price of loans at acquisition	$	2,221,204

Schedule of Outstanding Balance and Related Allowance on Loans

The outstanding balance and related allowance on these loans as of September 30, 2021 and December 31, 2020 is as follows (in thousands):

	As of September 30, 2021				As of December 31, 2020
	Loan Balance		ACL Balance		Loan Balance		ACL Balance
	(In Thousands)				(In Thousands)
Real Estate:
Residential	$	12,822	$	195	$	14,895	$	201
Commercial		10,026		599		24,334		2,286
Construction		—		—		—		—
		22,848		794		39,229		2,487
Other Loans:
Commercial		8,527		1,151		20,990		1,896
Home equity and improvement		3,731		184		4,912		214
Consumer finance		638		11		670		20
		12,896		1,346		26,572		2,130
Total	$	35,744	$	2,140	$	65,801	$	4,617