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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |