Quarterly report pursuant to Section 13 or 15(d)

Loans (Tables)

v3.23.3
Loans (Tables)
9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Loans

Loans consisted of the following as of the dates indicated:

 

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

Retail

 

$

1,097,650

 

 

$

1,023,608

 

Hospitality

 

 

705,735

 

 

 

646,893

 

Office

 

 

575,319

 

 

 

499,946

 

Other (1)

 

 

1,309,507

 

 

 

1,553,729

 

Total commercial property loans

 

 

3,688,211

 

 

 

3,724,176

 

Construction

 

 

84,804

 

 

 

109,205

 

Residential (2)

 

 

926,326

 

 

 

734,472

 

Total real estate loans

 

 

4,699,341

 

 

 

4,567,853

 

Commercial and industrial loans (3)

 

 

728,792

 

 

 

804,492

 

Equipment financing agreements

 

 

592,652

 

 

 

594,788

 

Loans receivable

 

 

6,020,785

 

 

 

5,967,133

 

Allowance for credit losses

 

 

(67,313

)

 

 

(71,523

)

Loans receivable, net

 

$

5,953,472

 

 

$

5,895,610

 

 

(1)
Includes mixed-use, multifamily, industrial, gas stations, faith-based facilities, and medical; all other property types represent less than one percent of total loans receivable.
(2)
Includes $2.0 million and $2.4 million of home equity loans and lines, and $4.2 million and $4.6 million of personal loans at September 30, 2023 and December 31, 2022, respectively.
(3)
At September 30, 2023 and December 31, 2022, Paycheck Protection Program loans were $0.2 million and $0.9 million, respectively.
Activity for Loans Held for Sale

The following is the activity for loans held for sale for the three months ended September 30, 2023 and 2022:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Total

 

 

 

(in thousands)

 

September 30, 2023

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

5,544

 

 

$

1,749

 

 

$

7,293

 

Originations and transfers

 

 

12,588

 

 

 

13,398

 

 

 

25,986

 

Sales

 

 

(11,520

)

 

 

(9,490

)

 

 

(21,010

)

Principal paydowns and amortization

 

 

(75

)

 

 

(427

)

 

 

(502

)

Balance at end of period

 

$

6,537

 

 

$

5,230

 

 

$

11,767

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

10,976

 

 

$

7,552

 

 

$

18,528

 

Originations and transfers

 

 

23,013

 

 

 

12,198

 

 

 

35,211

 

Sales

 

 

(27,493

)

 

 

(16,192

)

 

 

(43,685

)

Principal paydowns and amortization

 

 

(6

)

 

 

(4

)

 

 

(10

)

Balance at end of period

 

$

6,490

 

 

$

3,554

 

 

$

10,044

 

The following is the activity for loans held for sale for the nine months ended September 30, 2023 and 2022:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Total

 

 

 

(in thousands)

 

September 30, 2023

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

3,775

 

 

$

4,268

 

 

$

8,043

 

Originations and transfers

 

 

43,468

 

 

 

31,420

 

 

 

74,888

 

Sales

 

 

(40,630

)

 

 

(30,022

)

 

 

(70,652

)

Principal payoffs and amortization

 

 

(76

)

 

 

(436

)

 

 

(512

)

Balance at end of period

 

$

6,537

 

 

$

5,230

 

 

$

11,767

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

6,954

 

 

$

6,388

 

 

$

13,342

 

Originations and transfers

 

 

72,708

 

 

 

39,207

 

 

 

111,915

 

Sales

 

 

(73,166

)

 

 

(42,033

)

 

 

(115,199

)

Principal payoffs and amortization

 

 

(6

)

 

 

(8

)

 

 

(14

)

Balance at end of period

 

$

6,490

 

 

$

3,554

 

 

$

10,044

 

Allowance for Credit Losses by Portfolio Segment

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended September 30, 2023 and 2022:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Equipment Financing Agreements

 

 

Total

 

 

 

(in thousands)

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

43,054

 

 

$

16,028

 

 

$

11,942

 

 

 

71,024

 

Charge-offs

 

 

(216

)

 

 

(6,323

)

 

 

(2,831

)

 

 

(9,370

)

Recoveries

 

 

50

 

 

 

141

 

 

 

301

 

 

 

492

 

Provision (recovery) for credit losses

 

 

948

 

 

 

1,396

 

 

 

2,823

 

 

 

5,167

 

Ending balance

 

$

43,836

 

 

$

11,242

 

 

$

12,235

 

 

$

67,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

46,112

 

 

$

14,275

 

 

$

12,680

 

 

$

73,067

 

Charge-offs

 

 

(1,356

)

 

 

(8

)

 

 

(716

)

 

 

(2,080

)

Recoveries

 

 

373

 

 

 

228

 

 

 

369

 

 

 

970

 

Provision (recovery) for credit losses

 

 

395

 

 

 

381

 

 

 

(1,149

)

 

 

(373

)

Ending balance

 

$

45,524

 

 

$

14,876

 

 

$

11,184

 

 

$

71,584

 

 

The following table details the information on the allowance for credit losses by portfolio segment as of and for the nine months ended September 30, 2023 and 2022:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Equipment Financing Agreements

 

 

Total

 

 

 

(in thousands)

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

44,026

 

 

$

15,267

 

 

$

12,230

 

 

 

71,523

 

Charge-offs

 

 

(627

)

 

 

(6,635

)

 

 

(7,052

)

 

 

(14,314

)

Recoveries

 

 

180

 

 

 

931

 

 

 

1,131

 

 

 

2,242

 

Provision (recovery) for credit losses

 

 

257

 

 

 

1,679

 

 

 

5,926

 

 

 

7,862

 

Ending balance

 

$

43,836

 

 

$

11,242

 

 

$

12,235

 

 

$

67,313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

48,890

 

 

$

12,418

 

 

$

11,249

 

 

$

72,557

 

Charge-offs

 

 

(1,886

)

 

 

(87

)

 

 

(1,548

)

 

 

(3,521

)

Recoveries

 

 

632

 

 

 

679

 

 

 

1,117

 

 

 

2,428

 

Provision (recovery) for credit losses

 

 

(2,112

)

 

 

1,866

 

 

 

366

 

 

 

120

 

Ending balance

 

$

45,524

 

 

$

14,876

 

 

$

11,184

 

 

$

71,584

 

 

The table below illustrates the allowance for credit losses by loan portfolio segment and each loan portfolio segment as a percentage of total loans.

 

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

Allowance Amount

 

 

Percentage of Total Allowance

 

 

Total Loans

 

 

Percentage of Total Loans

 

 

Allowance Amount

 

 

Percentage of Total Allowance

 

 

Total Loans

 

 

Percentage of Total Loans

 

 

 

(dollars in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

10,083

 

 

 

15.0

%

 

$

1,097,650

 

 

 

18.3

%

 

$

7,872

 

 

 

11.0

%

 

$

1,023,608

 

 

 

17.2

%

Hospitality

 

 

15,083

 

 

 

22.4

 

 

 

705,735

 

 

 

11.7

 

 

 

13,407

 

 

 

18.7

 

 

 

646,893

 

 

 

10.8

 

Office

 

 

2,884

 

 

 

4.3

 

 

 

575,319

 

 

 

9.6

 

 

 

2,293

 

 

 

3.2

 

 

 

499,946

 

 

 

8.4

 

Other

 

 

8,321

 

 

 

12.3

 

 

 

1,309,507

 

 

 

21.7

 

 

 

13,056

 

 

 

18.3

 

 

 

1,553,729

 

 

 

26.0

 

Total commercial property loans

 

 

36,371

 

 

 

54.0

 

 

 

3,688,211

 

 

 

61.3

 

 

 

36,628

 

 

 

51.2

 

 

 

3,724,176

 

 

 

62.4

 

Construction

 

 

2,594

 

 

 

3.9

 

 

 

84,804

 

 

 

1.4

 

 

 

4,022

 

 

 

5.7

 

 

 

109,205

 

 

 

1.8

 

Residential

 

 

4,871

 

 

 

7.2

 

 

 

926,326

 

 

 

15.4

 

 

 

3,376

 

 

 

4.7

 

 

 

734,472

 

 

 

12.4

 

Total real estate loans

 

 

43,836

 

 

 

65.1

 

 

 

4,699,341

 

 

 

78.1

 

 

 

44,026

 

 

 

61.6

 

 

 

4,567,853

 

 

 

76.6

 

Commercial and industrial loans

 

 

11,242

 

 

 

16.7

 

 

 

728,792

 

 

 

12.1

 

 

 

15,267

 

 

 

21.3

 

 

 

804,492

 

 

 

13.4

 

Equipment financing agreements

 

 

12,235

 

 

 

18.2

 

 

 

592,652

 

 

 

9.8

 

 

 

12,230

 

 

 

17.1

 

 

 

594,788

 

 

 

10.0

 

Total

 

$

67,313

 

 

 

100.0

%

 

$

6,020,785

 

 

 

100.0

%

 

$

71,523

 

 

 

100.0

%

 

$

5,967,133

 

 

 

100.0

%

Summary of Amortized Cost Basis of Collateral Dependent Loans By Class of Loans The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023 and December 31, 2022, for which repayment is expected to be obtained through the sale of the underlying collateral.

 

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

Amortized Cost

 

 

Amortized Cost

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

Retail

 

$

1,637

 

 

$

1,930

 

Hospitality

 

 

333

 

 

 

 

Office

 

 

 

 

 

 

Other

 

 

22

 

 

 

256

 

Total commercial property loans

 

 

1,992

 

 

 

2,186

 

Residential

 

 

3

 

 

 

508

 

Total real estate loans

 

 

1,995

 

 

 

2,694

 

Commercial and industrial loans

 

 

4,847

 

 

 

 

Total

 

$

6,842

 

 

$

2,694

 

Credit Quality of Loan Portfolio

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

(in thousands)

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

`

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

$

511,148

 

 

$

1,013,414

 

 

$

863,200

 

 

$

578,433

 

 

$

384,562

 

 

$

264,284

 

 

$

26,171

 

 

$

3,641,212

 

Special Mention

 

 

5,194

 

 

 

4,032

 

 

 

10,141

 

 

 

4,328

 

 

 

715

 

 

 

1,556

 

 

 

1,700

 

 

 

27,666

 

Classified

 

 

4,430

 

 

 

977

 

 

 

4,936

 

 

 

 

 

 

5,606

 

 

 

3,384

 

 

 

 

 

 

19,333

 

Total commercial property

 

 

520,772

 

 

 

1,018,423

 

 

 

878,277

 

 

 

582,761

 

 

 

390,883

 

 

 

269,224

 

 

 

27,871

 

 

 

3,688,211

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

411

 

 

 

 

 

 

216

 

 

 

 

 

 

627

 

YTD net charge-offs

 

 

 

 

 

 

 

 

 

 

 

407

 

 

 

 

 

 

46

 

 

 

 

 

 

453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

38,129

 

 

 

 

 

 

18,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56,504

 

Special Mention

 

 

 

 

 

 

 

 

28,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,300

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

38,129

 

 

 

 

 

 

46,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

84,804

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

241,830

 

 

 

381,167

 

 

 

160,856

 

 

 

12,791

 

 

 

221

 

 

 

124,047

 

 

 

4,911

 

 

 

925,823

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

500

 

 

 

500

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

3

 

Total residential

 

 

241,830

 

 

 

381,167

 

 

 

160,856

 

 

 

12,791

 

 

 

221

 

 

 

124,050

 

 

 

5,411

 

 

 

926,326

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

 

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

791,107

 

 

 

1,394,581

 

 

 

1,042,431

 

 

 

591,224

 

 

 

384,783

 

 

 

388,331

 

 

 

31,082

 

 

 

4,623,539

 

Special Mention

 

 

5,194

 

 

 

4,032

 

 

 

38,441

 

 

 

4,328

 

 

 

715

 

 

 

1,556

 

 

 

2,200

 

 

 

56,466

 

Classified

 

 

4,430

 

 

 

977

 

 

 

4,936

 

 

 

 

 

 

5,606

 

 

 

3,387

 

 

 

 

 

 

19,336

 

Total real estate loans

 

 

800,731

 

 

 

1,399,590

 

 

 

1,085,808

 

 

 

595,552

 

 

 

391,104

 

 

 

393,274

 

 

 

33,282

 

 

 

4,699,341

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

411

 

 

 

 

 

 

216

 

 

 

 

 

 

627

 

YTD net charge-offs

 

 

 

 

 

 

 

 

 

 

 

407

 

 

 

 

 

 

40

 

 

 

 

 

 

447