Loan and Lease Receivables and Allowance for Credit Losses | Note 5—Loan and Lease Receivables and Allowance for Credit Losses Loan and Lease Receivables Outstanding loan and lease receivables as of the dates shown were categorized as follows: March 31, December 31, 2024 2023 Commercial real estate $ 2,265,195 $ 2,317,289 Residential real estate 732,230 718,733 Construction, land development, and other land 530,320 528,275 Commercial and industrial 2,548,442 2,444,405 Installment and other 3,076 3,138 Lease financing receivables 685,763 659,686 Total loans and leases 6,765,026 6,671,526 Net unamortized deferred fees and costs 6,908 6,600 Initial direct costs 6,280 6,180 Allowance for credit losses - loans and leases ( 102,366 ) ( 101,686 ) Net loans and leases $ 6,675,848 $ 6,582,620 March 31, December 31, 2024 2023 Lease financing receivables Net minimum lease payments $ 666,340 $ 644,507 Unguaranteed residual values 101,536 92,127 Unearned income ( 82,113 ) ( 76,948 ) Total lease financing receivables 685,763 659,686 Initial direct costs 6,280 6,180 Lease financial receivables before allowance for $ 692,043 $ 665,866 Total loans and leases consist of originated loans and leases, purchased credit deteriorated ("PCD") and acquired non-credit-deteriorated loans and leases. At March 31, 2024 and December 31, 2023, total loans and leases included the guaranteed amount of U.S. government guaranteed loans of $ 101.0 million a nd $ 93.3 million, respectively. At March 31, 2024 and December 31, 2023 , the discount on the unguaranteed portion of U.S. government guaranteed loans was $ 25.9 million and $ 26.2 million, respectively, which are included in total loans and leases. At March 31, 2024 and December 31, 2023 , installment and other loans included overdraft deposits of $ 1.2 million and $ 754,000 , respectively, which were reclassified as loans. At March 31, 2024 and December 31, 2023 , loans and leases and loans held for sale pledged as security for borrowings were $ 2.1 billion and $ 2.2 billion, respectively. Accrued interest on loans and leases were $ 37.8 million and $ 38.9 million as of March 31, 2024 and December 31, 2023, respectively, and are included in the accrued interest receivable and other assets line item on the Condensed Consolidated Statement of Financial Condition. The minimum annual lease payments for lease financing receivables as of March 31, 2024 are summarized as follows: Minimum Lease 2024 $ 164,051 2025 202,138 2026 154,408 2027 96,119 2028 43,021 Thereafter 6,603 Total $ 666,340 Originated loans and leases represent originations excluding loans initially acquired in a business combination. However, once an acquired loan reaches its maturity date, and is re-underwritten and renewed, it is internally classified as an originated loan. PCD loans are those acquired from a business combination with evidence of credit quality deterioration and are accounted for under ASC Topic 326. Acquired non-credit-deteriorated loans and leases represent loans and leases acquired with an outstanding balance from a business combination without more than insignificant evidence of credit quality deterioration and are accounted for under ASC Topic 310-20. The following tables summarize the balances for each respective loan and lease category as of March 31, 2024 and December 31, 2023: March 31, 2024 Originated Purchased Credit Deteriorated Acquired Total Commercial real estate $ 1,879,149 $ 117,460 $ 271,720 $ 2,268,329 Residential real estate 488,887 39,535 204,589 733,011 Construction, land development, and other land 416,996 26,418 85,553 528,967 Commercial and industrial 2,420,952 18,100 113,673 2,552,725 Installment and other 2,855 118 166 3,139 Lease financing receivables 691,617 — 426 692,043 Total loans and leases $ 5,900,456 $ 201,631 $ 676,127 $ 6,778,214 December 31, 2023 Originated Purchased Credit Deteriorated Acquired Total Commercial real estate $ 1,907,029 $ 137,807 $ 275,476 $ 2,320,312 Residential real estate 465,133 42,510 211,887 719,530 Construction, land development, and other land 415,162 25,331 86,344 526,837 Commercial and industrial 2,311,563 19,460 117,538 2,448,561 Installment and other 2,919 125 156 3,200 Lease financing receivables 665,239 — 627 665,866 Total loans and leases $ 5,767,045 $ 225,233 $ 692,028 $ 6,684,306 PCD loans — The unpaid principal balance and carrying amount of PCD loans excluding an allowance for credit losses - loans and leases o f $ 10.1 million and $ 10.0 milli on at March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Unpaid Carrying Unpaid Carrying Commercial real estate $ 162,977 $ 117,460 $ 185,007 $ 137,807 Residential real estate 84,559 39,535 88,036 42,510 Construction, land development, and other land 33,140 26,418 32,140 25,331 Commercial and industrial 20,400 18,100 21,870 19,460 Installment and other 783 118 789 125 Total purchased credit deteriorated loans $ 301,859 $ 201,631 $ 327,842 $ 225,233 The following table is a reconciliation of acquired Inland PCD loans between their purchase price and their par value at the time of the acquisition. Refer to Note 3—Acquisition of a Business for further information. Fair value of loans at acquisition $ 214,573 Allowance for credit losses - loans and leases, at acquisition 10,596 Non-credit discount/premium at acquisition 17,909 Par value of acquired PCD loans at acquisition $ 243,078 Acquired non-credit-deteriorated loans and leases — The unpaid principal balance and carrying value for acquired non-credit deteriorated loans and leases, excluding an allowance for credit losses o f $ 4.6 million and $ 4.7 mil lion at March 31, 2024 and December 31, 2023, were as follows: March 31, 2024 December 31, 2023 Unpaid Carrying Unpaid Carrying Commercial real estate $ 280,291 $ 271,720 $ 284,819 $ 275,476 Residential real estate 209,952 204,589 227,392 211,887 Construction, land development, and other land 86,168 85,553 87,143 86,344 Commercial and industrial 119,197 113,673 123,540 117,538 Installment and other 179 166 170 156 Lease financing receivables 427 426 628 627 Total acquired non-credit-deteriorated $ 696,214 $ 676,127 $ 723,692 $ 692,028 The Company hedges interest rates on certain loans using interest rate swaps through which the Company pays variable amounts and receives fixed amounts. Refer to Note 16—Derivative Instruments and Hedging Activities for additional discussion. Allowance for Credit Losses Loans and leases considered for inclusion in the allowance for credit losses include acquired non-credit-deteriorated loans and leases, purchased credit deteriorated loans, and originated loans and leases. The Bank’s credit risk rating methodology assigns risk ratings from 1 to 10, where a higher rating represents higher risk. Risk ratings for all loans of $ 1.0 million or more are reviewed annually. The risk rating categories are described by the following groupings: Pass —1‑4, risk levels of borrowers and guarantors that offer a minimal to an acceptable level of risk. Watch —5, credit exposure that presents higher than average risk and warrants greater than routine attention. Special Mention —6, potential weaknesses that if left uncorrected may result in deterioration of the repayment prospects. Substandard Accrual —7, weaknesses in cash flow and collateral coverage resulting in a distinct possibility of losses if not corrected. Used in limited cases, where the borrower is current on payments and an agreed plan for credit remediation. Substandard Non‑Accrual —8, well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in the distinct possibility of losses if not corrected. Doubtful —9, weaknesses inherent in substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loss —10, is considered uncollectible and of such little value that its continuance as a realizable asset is not warranted. Revolving loans that are converted to term loans are treated as new originations and are presented by year of origination. Generally, existing term loans that are re-underwritten are reflected in the table in the year of renewal. The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for credit losses - loans and leases calculation, as of March 31, 2024 and December 31, 2023: Term loans amortized cost by origination year Revolving Total March 31, 2024 2024 2023 2022 2021 2020 Prior Loans Loans Commercial Real Estate Pass $ 49,831 $ 249,142 $ 438,366 $ 497,715 $ 236,622 $ 514,023 $ 14,124 $ 1,999,823 Watch 975 13,665 19,734 16,039 37,322 72,490 — 160,225 Special Mention — 7,635 1,836 10,432 2,595 34,684 — 57,182 Substandard — 638 3,808 4,852 1,194 40,607 — 51,099 Total $ 50,806 $ 271,080 $ 463,744 $ 529,038 $ 277,733 $ 661,804 $ 14,124 $ 2,268,329 Gross charge-offs for the three months $ — $ — $ 286 $ 88 $ 575 $ 2,108 $ — $ 3,057 Residential Real Estate Pass $ 6,795 $ 49,973 $ 135,135 $ 119,107 $ 51,950 $ 263,998 $ 56,965 $ 683,923 Watch — — 5,389 406 16,848 12,933 2,392 37,968 Special Mention — — — — 3,767 480 — 4,247 Substandard 200 — 29 105 1,077 4,516 946 6,873 Total $ 6,995 $ 49,973 $ 140,553 $ 119,618 $ 73,642 $ 281,927 $ 60,303 $ 733,011 Gross charge-offs for the three months $ — $ — $ — $ — $ — $ — $ — $ — Construction, Land Development, Pass $ — $ 114,072 $ 124,789 $ 179,184 $ 37,041 $ 11,126 $ 826 $ 467,038 Watch — 1,391 14,408 24,777 8,805 3,110 — 52,491 Special Mention — — — 9,438 — — — 9,438 Substandard — — — — — — — — Total $ — $ 115,463 $ 139,197 $ 213,399 $ 45,846 $ 14,236 $ 826 $ 528,967 Gross charge-offs for the three months $ — $ — $ — $ — $ — $ — $ — $ — Commercial & Industrial Pass $ 127,262 $ 472,634 $ 488,279 $ 282,042 $ 103,274 $ 206,107 $ 540,979 $ 2,220,577 Watch 80 55,427 21,754 46,969 2,478 20,120 40,803 187,631 Special Mention — 366 20,531 10,589 2,326 6,418 40,738 80,968 Substandard — 541 9,390 9,867 5,785 25,346 12,620 63,549 Total $ 127,342 $ 528,968 $ 539,954 $ 349,467 $ 113,863 $ 257,991 $ 635,140 $ 2,552,725 Gross charge-offs for the three months $ — $ — $ 909 $ 735 $ 398 $ 1,577 $ — $ 3,619 Installment and Other Pass $ 145 $ 408 $ 116 $ 56 $ 130 $ 430 $ 1,830 $ 3,115 Watch — — — 23 — — 1 24 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 145 $ 408 $ 116 $ 79 $ 130 $ 430 $ 1,831 $ 3,139 Gross charge-offs for the three months $ — $ — $ — $ — $ — $ — $ — $ — Lease Financing Receivables Pass $ 87,748 $ 303,606 $ 187,907 $ 81,700 $ 24,808 $ 4,149 $ — $ 689,918 Watch — — 61 912 14 — — 987 Special Mention — — — — 155 99 — 254 Substandard — 173 141 523 44 3 — 884 Total $ 87,748 $ 303,779 $ 188,109 $ 83,135 $ 25,021 $ 4,251 $ — $ 692,043 Gross charge-offs for the three months $ — $ 95 $ 175 $ 80 $ 23 $ — $ — $ 373 Total Loans and Leases Pass $ 271,781 $ 1,189,835 $ 1,374,592 $ 1,159,804 $ 453,825 $ 999,833 $ 614,724 $ 6,064,394 Watch 1,055 70,483 61,346 89,126 65,467 108,653 43,196 439,326 Special Mention — 8,001 22,367 30,459 8,843 41,681 40,738 152,089 Substandard 200 1,352 13,368 15,347 8,100 70,472 13,566 122,405 Total $ 273,036 $ 1,269,671 $ 1,471,673 $ 1,294,736 $ 536,235 $ 1,220,639 $ 712,224 $ 6,778,214 Gross charge-offs for the three months $ — $ 95 $ 1,370 $ 903 $ 996 $ 3,685 $ — $ 7,049 Term loans amortized cost by origination year Revolving Total December 31, 2023 2023 2022 2021 2020 2019 Prior Loans Loans Commercial Real Estate Pass $ 247,856 $ 452,127 $ 516,624 $ 229,053 $ 143,283 $ 388,872 $ 28,360 $ 2,006,175 Watch 12,501 22,094 26,408 46,713 20,364 68,003 — 196,083 Special Mention — 799 10,752 2,618 12,751 25,790 — 52,710 Substandard — 2,888 5,841 1,771 7,483 46,532 829 65,344 Total $ 260,357 $ 477,908 $ 559,625 $ 280,155 $ 183,881 $ 529,197 $ 29,189 $ 2,320,312 Gross charge-offs, year ended $ — $ 193 $ 60 $ 1,511 $ 4,054 $ 3,911 $ — $ 9,729 Residential Real Estate Pass $ 55,178 $ 135,477 $ 104,005 $ 54,651 $ 37,806 $ 225,593 $ 57,865 $ 670,575 Watch — 4,811 — 17,417 7,167 8,708 1,597 39,700 Special Mention — — — 3,594 127 1 413 4,135 Substandard — — 107 189 349 3,523 952 5,120 Total $ 55,178 $ 140,288 $ 104,112 $ 75,851 $ 45,449 $ 237,825 $ 60,827 $ 719,530 Gross charge-offs, year ended $ — $ — $ — $ — $ — $ 21 $ — $ 21 Construction, Land Development, & Land Pass $ 82,449 $ 145,174 $ 184,544 $ 35,466 $ 9,772 $ 1,429 $ 174 $ 459,008 Watch 1,392 13,990 21,313 18,716 3,125 — — 58,536 Special Mention — — 9,279 — — — — 9,279 Substandard — — — — — 14 — 14 Total $ 83,841 $ 159,164 $ 215,136 $ 54,182 $ 12,897 $ 1,443 $ 174 $ 526,837 Gross charge-offs, year ended $ — $ — $ — $ — $ — $ — $ — $ — Commercial & Industrial Pass $ 475,720 $ 514,902 $ 288,392 $ 109,430 $ 73,059 $ 147,168 $ 524,348 $ 2,133,019 Watch 41,027 33,080 50,407 1,385 6,951 18,180 39,531 190,561 Special Mention — 6,164 10,595 2,631 1,112 6,643 36,354 63,499 Substandard — 7,332 6,067 6,431 10,116 18,381 13,155 61,482 Total $ 516,747 $ 561,478 $ 355,461 $ 119,877 $ 91,238 $ 190,372 $ 613,388 $ 2,448,561 Gross charge-offs, year ended $ 1,518 $ 1,938 $ 5,372 $ 4,451 $ 1,087 $ 1,045 $ — $ 15,411 Installment and Other Pass $ 564 $ 132 $ 79 $ 133 $ 28 $ 424 $ 1,814 $ 3,174 Watch — — 25 — — 1 — 26 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 564 $ 132 $ 104 $ 133 $ 28 $ 425 $ 1,814 $ 3,200 Gross charge-offs, year ended $ — $ — $ — $ — $ — $ 3 $ — $ 3 Lease Financing Receivables Pass $ 327,099 $ 207,640 $ 93,242 $ 29,343 $ 5,443 $ 856 $ — $ 663,623 Watch — 67 1,008 16 — — — 1,091 Special Mention — — — 179 101 36 — 316 Substandard 259 138 384 55 — — — 836 Total $ 327,358 $ 207,845 $ 94,634 $ 29,593 $ 5,544 $ 892 $ — $ 665,866 Gross charge-offs, year ended $ 734 $ 886 $ 549 $ 139 $ 75 $ 54 $ — $ 2,437 Total Loans and Leases Pass $ 1,188,866 $ 1,455,452 $ 1,186,886 $ 458,076 $ 269,391 $ 764,342 $ 612,561 $ 5,935,574 Watch 54,920 74,042 99,161 84,247 37,607 94,892 41,128 485,997 Special Mention — 6,963 30,626 9,022 14,091 32,470 36,767 129,939 Substandard 259 10,358 12,399 8,446 17,948 68,450 14,936 132,796 Total $ 1,244,045 $ 1,546,815 $ 1,329,072 $ 559,791 $ 339,037 $ 960,154 $ 705,392 $ 6,684,306 Gross charge-offs, year ended $ 2,252 $ 3,017 $ 5,981 $ 6,101 $ 5,216 $ 5,034 $ — $ 27,601 At March 31, 2024 and at December 31, 2023 there were no loans or leases which were risk rated Doubtful or Loss. As of March 31, 2024 and December 31, 2023, respectively, there were $ 51.9 million and $ 52.2 million of term loans that had been converted from revolving loans. The following tables summarize contractual delinquency information of the loans and leases considered for inclusion in the allowance for credit losses - loans and leases calculation at March 31, 2024 and December 31, 2023: March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Total Commercial Real Estate Current $ 50,806 $ 270,638 $ 459,995 $ 524,429 $ 276,731 $ 635,489 $ 14,124 $ 2,232,212 30-59 Days Past Due — 442 1,043 3,809 595 2,791 — 8,680 60-89 Days Past Due — — — — — — — — Greater than 90 Accruing — — — — — — — — Non-accrual — — 2,706 800 407 23,524 — 27,437 Total Past Due — 442 3,749 4,609 1,002 26,315 — 36,117 Total $ 50,806 $ 271,080 $ 463,744 $ 529,038 $ 277,733 $ 661,804 $ 14,124 $ 2,268,329 Residential Real Estate Current $ 6,995 $ 49,973 $ 140,035 $ 119,107 $ 72,402 $ 276,374 $ 59,007 $ 723,893 30-59 Days Past Due — — 489 406 174 578 350 1,997 60-89 Days Past Due — — — — — 461 — 461 Greater than 90 Accruing — — — — — — — — Non-accrual — — 29 105 1,066 4,514 946 6,660 Total Past Due — — 518 511 1,240 5,553 1,296 9,118 Total $ 6,995 $ 49,973 $ 140,553 $ 119,618 $ 73,642 $ 281,927 $ 60,303 $ 733,011 Construction, Land Development, Current $ — $ 115,463 $ 139,197 $ 213,399 $ 45,846 $ 14,236 $ 826 $ 528,967 30-59 Days Past Due — — — — — — — — 60-89 Days Past Due — — — — — — — — Greater than 90 Accruing — — — — — — — — Non-accrual — — — — — — — — Total Past Due — — — — — — — — Total $ — $ 115,463 $ 139,197 $ 213,399 $ 45,846 $ 14,236 $ 826 $ 528,967 Commercial & Industrial Current $ 127,342 $ 525,182 $ 530,704 $ 346,250 $ 108,120 $ 238,084 $ 632,383 $ 2,508,065 30-59 Days Past Due — 3,246 1,697 903 1,454 3,729 576 11,605 60-89 Days Past Due — 127 1 — — — — 128 Greater than 90 Accruing — — — — — — — — Non-accrual — 413 7,552 2,314 4,289 16,178 2,181 32,927 Total Past Due — 3,786 9,250 3,217 5,743 19,907 2,757 44,660 Total $ 127,342 $ 528,968 $ 539,954 $ 349,467 $ 113,863 $ 257,991 $ 635,140 $ 2,552,725 Installment and Other Current $ 145 $ 408 $ 116 $ 56 $ 130 $ 430 $ 1,831 $ 3,116 30-59 Days Past Due — — — 23 — — — 23 60-89 Days Past Due — — — — — — — — Greater than 90 Accruing — — — — — — — — Non-accrual — — — — — — — — Total Past Due — — — 23 — — — 23 Total $ 145 $ 408 $ 116 $ 79 $ 130 $ 430 $ 1,831 $ 3,139 Lease Financing Receivables Current $ 87,703 $ 301,476 $ 185,879 $ 81,572 $ 24,672 $ 4,138 $ — $ 685,440 30-59 Days Past Due 45 1,602 577 789 206 71 — 3,290 60-89 Days Past Due — 528 1,512 251 108 39 — 2,438 Greater than 90 Accruing — — — — — — — — Non-accrual — 173 141 523 35 3 — 875 Total Past Due 45 2,303 2,230 1,563 349 113 — 6,603 Total $ 87,748 $ 303,779 $ 188,109 $ 83,135 $ 25,021 $ 4,251 $ — $ 692,043 Total Loans and Leases Current $ 272,991 $ 1,263,140 $ 1,455,926 $ 1,284,813 $ 527,901 $ 1,168,751 $ 708,171 $ 6,681,693 30-59 Days Past Due 45 5,290 3,806 5,930 2,429 7,169 926 25,595 60-89 Days Past Due — 655 1,513 251 108 500 — 3,027 Greater than 90 Accruing — — — — — — — — Non-accrual — 586 10,428 3,742 5,797 44,219 3,127 67,899 Total Past Due 45 6,531 15,747 9,923 8,334 51,888 4,053 96,521 Total $ 273,036 $ 1,269,671 $ 1,471,673 $ 1,294,736 $ 536,235 $ 1,220,639 $ 712,224 $ 6,778,214 Total non-accrual loans without an allowance included $ 8.4 million of commercial real estate loans, $ 3.6 million of residential real estate, and $ 3.4 million of commercial and industrial loans as of March 31, 2024 . The Company recognized $ 255,000 of interest income on non-accrual loans and leases for the three months ended March 31, 2024. December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Total Commercial Real Estate Current $ 259,998 $ 474,878 $ 558,236 $ 279,098 $ 178,729 $ 501,620 $ 29,189 $ 2,281,748 30-59 Days Past Due 359 648 638 74 3,176 484 — 5,379 60-89 Days Past Due — 826 — 286 — 1,208 — 2,320 Greater than 90 Accruing — — — — — — — — Non-accrual — 1,556 751 697 1,976 25,885 — 30,865 Total Past Due 359 3,030 1,389 1,057 5,152 27,577 — 38,564 Total $ 260,357 $ 477,908 $ 559,625 $ 280,155 $ 183,881 $ 529,197 $ 29,189 $ 2,320,312 Residential Real Estate Current $ 55,178 $ 136,448 $ 102,973 $ 75,125 $ 45,050 $ 230,102 $ 59,476 $ 704,352 30-59 Days Past Due — 3,840 1,032 537 29 4,122 399 9,959 60-89 Days Past Due — — — — 21 127 — 148 Greater than 90 Accruing — — — — — — — — Non-accrual — — 107 189 349 3,474 952 5,071 Total Past Due — 3,840 1,139 726 399 7,723 1,351 15,178 Total $ 55,178 $ 140,288 $ 104,112 $ 75,851 $ 45,449 $ 237,825 $ 60,827 $ 719,530 Construction, Land Development, Current $ 83,841 $ 156,815 $ 215,136 $ 54,182 $ 12,897 $ 1,443 $ 174 $ 524,488 30-59 Days Past Due — — — — — — — — 60-89 Days Past Due — 2,349 — — — — — 2,349 Greater than 90 Accruing — — — — — — — — Non-accrual — — — — — — — — Total Past Due — 2,349 — — — — — 2,349 Total $ 83,841 $ 159,164 $ 215,136 $ 54,182 $ 12,897 $ 1,443 $ 174 $ 526,837 Commercial & Industrial Current $ 516,747 $ 552,251 $ 351,534 $ 114,859 $ 83,780 $ 177,239 $ 611,766 $ 2,408,176 30-59 Days Past Due — 1,545 1,099 238 2,513 400 455 6,250 60-89 Days Past Due — 1,505 — 234 3,416 1,139 496 6,790 Greater than 90 Accruing — — — — — — — — Non-accrual — 6,177 2,828 4,546 1,529 11,594 671 27,345 Total Past Due — 9,227 3,927 5,018 7,458 13,133 1,622 40,385 Total $ 516,747 $ 561,478 $ 355,461 $ 119,877 $ 91,238 $ 190,372 $ 613,388 $ 2,448,561 Installment and Other Current $ 564 $ 132 $ 104 $ 133 $ 28 $ 425 $ 1,814 $ 3,200 30-59 Days Past Due — — — — — — — — 60-89 Days Past Due — — — — — — — — Greater than 90 Accruing — — — — — — — — Non-accrual — — — — — — — — Total Past Due — — — — — — — — Total $ 564 $ 132 $ 104 $ 133 $ 28 $ 425 $ 1,814 $ 3,200 Lease Financing Receivables Current $ 325,833 $ 206,800 $ 93,795 $ 29,292 $ 5,537 $ 889 $ — $ 662,146 30-59 Days Past Due 726 426 153 38 4 2 — 1,349 60-89 Days Past Due 540 481 302 218 3 1 — 1,545 Greater than 90 Accruing — — — — — — — — Non-accrual 259 138 384 45 — — — 826 Total Past Due 1,525 1,045 839 301 7 3 — 3,720 Total $ 327,358 $ 207,845 $ 94,634 $ 29,593 $ 5,544 $ 892 $ — $ 665,866 Total Loans and Leases Current $ 1,242,161 $ 1,527,324 $ 1,321,778 $ 552,689 $ 326,021 $ 911,718 $ 702,419 $ 6,584,110 30-59 Days Past Due 1,085 6,459 2,922 887 5,722 5,008 854 22,937 60-89 Days Past Due 540 5,161 302 738 3,440 2,475 496 13,152 Greater than 90 Accruing — — — — — — — — Non-accrual 259 7,871 4,070 5,477 3,854 40,953 1,623 64,107 Total Past Due 1,884 19,491 7,294 7,102 13,016 48,436 2,973 100,196 Total $ 1,244,045 $ 1,546,815 $ 1,329,072 $ 559,791 $ 339,037 $ 960,154 $ 705,392 $ 6,684,306 Total non-accrual loans without an allo wance included $ 1.6 million of commercial real estate loans, $ 3.6 million of residential real e state loans , and $ 2.3 million of commercial and industrial loans , as of December 31, 2023. The Company recognized $ 970,000 of interest income on non-accrual loans and leases for the three months ended March 31, 2023. The following table summarize the balance and activity within the allowance for credit losses - loans and leases, the components of the allowance for credit losses - loans and leases by loans and leases individually and collectively evaluated for impairment, and corresponding loan and lease balances by type for the three months ended March 31, 2024 are as follows: March 31, 2024 Commercial Residential Construction, Commercial Installment Lease Total Allowance for credit losses - Three months ended Beginning balance $ 33,237 $ 3,495 $ 2,906 $ 53,782 $ 36 $ 8,230 $ 101,686 Provision/(recapture) 824 ( 148 ) 24 5,836 ( 3 ) 358 6,891 Charge-offs ( 3,057 ) — — ( 3,619 ) — ( 373 ) ( 7,049 ) Recoveries 436 1 — 232 — 169 838 Ending balance $ 31,440 $ 3,348 $ 2,930 $ 56,231 $ 33 $ 8,384 $ 102,366 Ending balance: Individually evaluated $ 8,905 $ — $ — $ 12,772 $ — $ — $ 21,677 Collectively evaluated 22,535 3,348 2,930 43,459 33 8,384 80,689 Total allowance for credit $ 31,440 $ 3,348 $ 2,930 $ 56,231 $ 33 $ 8,384 $ 102,366 Loans and leases ending balance: Individually evaluated for $ 40,778 $ 4,658 $ — $ 39,889 $ — $ — $ 85,325 Collectively evaluated for 2,227,551 728,353 528,967 2,512,836 3,139 692,043 6,692,889 Total loans and leases $ 2,268,329 $ 733,011 $ 528,967 $ 2,552,725 $ 3,139 $ 692,043 $ 6,778,214 The following table summarize the balance and activity within the allowance for credit losses - loans and leases, the components of the allowance for credit losses - loans and leases by loans and leases individually and collectively evaluated for impairment, loans acquired with deteriorated credit quality, and corresponding loan and lease balances by type for the three months ended March 31, 2023: March 31, 2023 Commercial Residential Construction, Commercial Installment Lease Total Allowance for credit losses - Three months ended Beginning balance $ 26,061 $ 3,140 $ 3,134 $ 41,889 $ 24 $ 7,676 $ 81,924 Provision/(recapture) ( 1,119 ) ( 453 ) 364 10,803 ( 2 ) 119 9,712 Charge-offs ( 966 ) ( 9 ) — ( 1,790 ) — ( 304 ) ( 3,069 ) Recoveries 762 1 — 947 3 185 1,898 Ending balance $ 24,738 $ 2,679 $ 3,498 $ 51,849 $ 25 $ 7,676 $ 90,465 Ending balance: Individually evaluated $ 6,302 $ — $ 1,198 $ 14,518 $ — $ — $ 22,018 Collectively evaluated 18,436 2,679 2,300 37,331 25 7,676 68,447 Total allowance for credit losses - $ 24,738 $ 2,679 $ 3,498 $ 51,849 $ 25 $ 7,676 $ 90,465 Loans and leases ending balance: Individually evaluated for $ 31,622 $ — $ 5,541 $ 34,245 $ — $ — $ 71,408 Collectively evaluated for 1,897,762 499,336 441,567 2,049,560 1,822 553,877 5,443,924 Total loans and leases $ 1,929,384 $ 499,336 $ 447,108 $ 2,083,805 $ 1,822 $ 553,877 $ 5,515,332 The Company increased the allowance for credit losses - loans and leases by $ 680,000 and $ 8.5 million for the three months ended March 31, 2024 and 2023, respectively. For loans individually evaluated for impairment, the Company decreased allowance for credit losses - loans and leases by $ 5.6 million for the three months ended March 31, 2024 , and increased the allowance for loans individually evaluated by $ 6.7 million for the three months ended March 31, 2023 . For loans and leases collectively evaluated for impairment, the Company increased the allowance by $ 6.2 million and $ 1.9 million for the three months ended March 31, 2024 and 2023, respectively. The change in allowance for credit losses - loans and leases collectively evaluated for impairment was mainly due to changes in expected losses driven by macro-economic factors, as well as growth in the loan and lease portfolio and through acquisition. There were no borrowers receiving loan modifications during the three months ended March 31, 2024. The following table presents loans with modified terms as of March 31, 2023: March 31, 2023 Payment Delay Term Modification Combination Term Modification and Interest Rate Reduction Total Modified by Class % of Class of Loans and Leases Commercial and industrial $ 9,405 $ 40,420 $ 395 $ 50,220 2.4 % Total modified loans $ 9,405 $ 40,420 $ 395 $ 50,220 0.9 % Loans reflected as having a payment delay included a general adjustment in loan terms similar to those of pass-rated credits. Loans having term modifications included extension of term as a result of a new borrower structure and other miscellaneous term adjustments. Loans having a combination of term modification and interest rate reduction reflect a longer amortization period and a reduced weighted average contractual rate from 8.85 % to 7.01 %. The following table presents the amortized cost basis of loans that had a payment default as of March 31, 2024 and were modified in the twelve months prior to default. March 31, 2024 Payment Delay Term Modification Combination Term Modification and Interest Rate Reduction Total Modified by Class % of Class of Loans and Leases Commercial real estate $ — $ 2,842 $ — $ 2,842 0.13 % Commercial and industrial 43 — 353 396 0.02 % Total loans and leases $ 43 $ 2,842 $ 353 $ 3,238 0.05 % As of December 31, 2023, the amortized cost of commercial and industrial loans that had a payment default and were modified in the twelve months prior to default was $ 406,000 , which represented 0.02 % of outstanding commercial and industrial loans. Modified loans are either collectively assessed based on portfolio risk segment and risk rating or individually assessed for loans exceeding $ 500,000 . Upon the Company’s determination that a modified loan has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The following table presents the amortized cost basis of collateral-dependent loans and leases, which are individually evaluated to determine expected credit losses as of March 31, 2024 and December 31, 2023: March 31, 2024 Commercial Construction Non-owner Occupied Commercial Owner-Occupied Commercial Multi-Family Single Family Residence (1st Lien) Single Family Residence (2nd Lien) Business Assets Total Commercial real estate $ — $ 11,590 $ 29,188 $ — $ — $ — $ — $ 40,778 Residential real estate — — — 2,792 1,866 — — 4,658 Commercial and industrial — — — — — — 39,889 39,889 Total $ — $ 11,590 $ 29,188 $ 2,792 $ 1,866 $ — $ 39,889 $ 85,325 December 31, 2023 Commercial Construction Non-owner Occupied Commercial Owner-Occupied Commercial Multi-Family Single Family Residence (1st Lien) Single Family Residence (2nd Lien) Business Assets Total Commercial real estate $ — $ 28,767 $ 35,572 $ — $ — $ — $ — $ 64,339 Residential real estate — — — 2,793 800 — — 3,593 Construction, land development, 813 — — — — — — 813 Commercial and industrial — — — — — — 44,749 44,749 Total $ 813 $ 28,767 $ 35,572 $ 2,793 $ 800 $ — $ 44,749 $ 113,494 The following table presents the change in the balance of the allowance for credit losses - unfunded commitments as of March 31, 2024 and 2023: For the Three Months Ended March 31, 2024 2023 Beginning balance $ 3,636 $ 4,203 Provision/(recapture) for unfunded commitments ( 248 ) 113 Ending balance $ 3,388 $ 4,316 |