Loans Receivable |
Loans Receivable The following table shows a summary of our loans receivable at amortized cost basis at September 30, 2023 and December 31, 2022 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | December 31, 2022 | | Originated (1) | | Acquired (2) | | Total | | Originated (1) | | Acquired (2) | | Total | Personal Banking: | | | | | | | | | | | | | | | | | | | | | | | | Residential mortgage loans (3) | $ | 3,322,136 | | | 150,627 | | | 3,472,763 | | | 3,327,879 | | | 170,720 | | | 3,498,599 | | Home equity loans | 1,126,675 | | | 132,090 | | | 1,258,765 | | | 1,131,641 | | | 166,033 | | | 1,297,674 | | Vehicle loans | 1,969,029 | | | 70,670 | | | 2,039,699 | | | 1,965,385 | | | 91,398 | | | 2,056,783 | | Consumer loans | 109,319 | | | 6,101 | | | 115,420 | | | 104,284 | | | 7,588 | | | 111,872 | | Total Personal Banking | 6,527,159 | | | 359,488 | | | 6,886,647 | | | 6,529,189 | | | 435,739 | | | 6,964,928 | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans (4) | 2,286,563 | | | 267,081 | | | 2,553,644 | | | 2,135,607 | | | 312,421 | | | 2,448,028 | | Commercial real estate loans - owner occupied | 343,714 | | | 25,659 | | | 369,373 | | | 341,704 | | | 33,823 | | | 375,527 | | Commercial loans | 1,463,159 | | | 37,450 | | | 1,500,609 | | | 1,082,914 | | | 49,055 | | | 1,131,969 | | Total Commercial Banking | 4,093,436 | | | 330,190 | | | 4,423,626 | | | 3,560,225 | | | 395,299 | | | 3,955,524 | | Total loans receivable, gross | 10,620,595 | | | 689,678 | | | 11,310,273 | | | 10,089,414 | | | 831,038 | | | 10,920,452 | | | | | | | | | | | | | | Allowance for credit losses | (116,596) | | | (8,245) | | | (124,841) | | | (107,379) | | | (10,657) | | | (118,036) | | Total loans receivable, net (5) | $ | 10,503,999 | | | 681,433 | | | 11,185,432 | | | 9,982,035 | | | 820,381 | | | 10,802,416 | |
(1) Includes originated and loan pools purchased in an asset acquisition. (2) Includes loans subject to purchase accounting in a business combination. (3) Includes $10.2 million and $9.9 million of loans held-for-sale at September 30, 2023 and December 31, 2022, respectively. (4) Includes $435,000 and $0 of loans held-for-sale at September 30, 2023 and December 31, 2022, respectively. (5) Includes $71.5 million and $76.1 million of net unearned income, unamortized premiums and discounts and deferred fees and costs at September 30, 2023 and December 31, 2022, respectively. The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended September 30, 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance as of September 30, 2023 | | Current period provision | | Charge-offs | | Recoveries | | | | Balance as of June 30, 2023 | Allowance for Credit Losses | | | | | | | | | | | | Personal Banking: | | | | | | | | | | | | Residential mortgage loans | $ | 17,090 | | | (370) | | | (171) | | | 75 | | | | | 17,556 | | Home equity loans | 5,044 | | | 201 | | | (320) | | | 161 | | | | | 5,002 | | Vehicle loans | 27,226 | | | 984 | | | (1,524) | | | 483 | | | | | 27,283 | | Consumer loans | 1,202 | | | 1,436 | | | (1,561) | | | 317 | | | | | 1,010 | | Total Personal Banking | 50,562 | | | 2,251 | | | (3,576) | | | 1,036 | | | | | 50,851 | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | 48,582 | | | (1,110) | | | (484) | | | 120 | | | | | 50,056 | | Commercial real estate loans - owner occupied | 3,479 | | | (30) | | | — | | | 11 | | | | | 3,498 | | Commercial loans | 22,218 | | | 2,872 | | | (1,286) | | | 614 | | | | | 20,018 | | Total Commercial Banking | 74,279 | | | 1,732 | | | (1,770) | | | 745 | | | | | 73,572 | | Total | $ | 124,841 | | | 3,983 | | | (5,346) | | | 1,781 | | | | | 124,423 | | | | | | | | | | | | | | Allowance for Credit Losses - off-balance sheet exposure | | | | | | | | | | | | Personal Banking: | | | | | | | | | | | | | | | | | | | | | | | | Residential mortgage loans | $ | 3 | | | (1) | | | — | | | — | | | | | 4 | | Home equity loans | 67 | | | 3 | | | — | | | — | | | | | 64 | | | | | | | | | | | | | | Total Personal Banking | 70 | | | 2 | | | — | | | — | | | | | 68 | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | 4,797 | | | (2,858) | | | — | | | — | | | | | 7,655 | | Commercial real estate loans - owner occupied | 140 | | | (180) | | | — | | | — | | | | | 320 | | Commercial loans | 7,971 | | | 55 | | | — | | | — | | | | | 7,916 | | Total Commercial Banking | 12,908 | | | (2,983) | | | — | | | — | | | | | 15,891 | | Total off-balance sheet exposure | $ | 12,978 | | | (2,981) | | | — | | | — | | | | | 15,959 | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended September 30, 2022 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance as of September 30, 2022 | | Current period provision | | Charge-offs | | Recoveries | | | Balance as of June 30, 2022 | Allowance for Credit Losses | | | | | | | | | | | Personal Banking: | | | | | | | | | | | Residential mortgage loans | $ | 17,967 | | | 1,646 | | | (166) | | | 329 | | | | 16,158 | | Home equity loans | 5,448 | | | 341 | | | (535) | | | 410 | | | | 5,232 | | Vehicle loans | 17,004 | | | 1,576 | | | (936) | | | 626 | | | | 15,738 | | Consumer loans | 825 | | | 1,170 | | | (1,405) | | | 281 | | | | 779 | | Total Personal Banking | 41,244 | | | 4,733 | | | (3,042) | | | 1,646 | | | | 37,907 | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | Commercial real estate loans | 49,649 | | | 5,117 | | | (1,329) | | | 6,220 | | | | 39,641 | | Commercial real estate loans - owner occupied | 4,087 | | | (34) | | | — | | | 26 | | | | 4,095 | | Commercial loans | 14,839 | | | (2,127) | | | (243) | | | 497 | | | | 16,712 | | Total Commercial Banking | 68,575 | | | 2,956 | | | (1,572) | | | 6,743 | | | | 60,448 | | Total | $ | 109,819 | | | 7,689 | | | (4,614) | | | 8,389 | | | | 98,355 | | | | | | | | | | | | | Allowance for Credit Losses - off-balance sheet exposure | | | | | | | | | | | Personal Banking: | | | | | | | | | | | Residential mortgage loans | $ | 4 | | | (2) | | | — | | | — | | | | 6 | | Home equity loans | 74 | | | 10 | | | — | | | — | | | | 64 | | | | | | | | | | | | | Total Personal Banking | 78 | | | 8 | | | — | | | — | | | | 70 | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | Commercial real estate loans | 5,382 | | | 1,919 | | | — | | | — | | | | 3,463 | | Commercial real estate loans - owner occupied | 287 | | | (41) | | | — | | | — | | | | 328 | | Commercial loans | 5,288 | | | 1,699 | | | — | | | — | | | | 3,589 | | Total Commercial Banking | 10,957 | | | 3,577 | | | — | | | — | | | | 7,380 | | Total off-balance sheet exposure | $ | 11,035 | | | 3,585 | | | — | | | — | | | | 7,450 | |
The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the nine months ended September 30, 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance September 30, 2023 | | Current period provision | | Charge-offs | | Recoveries | | ASU 2022-02 Adoption | | Balance December 31, 2022 | Allowance for Credit Losses | | | | | | | | | | | | Personal Banking: | | | | | | | | | | | | Residential mortgage loans | $ | 17,090 | | | (2,047) | | | (923) | | | 799 | | | — | | | 19,261 | | Home equity loans | 5,044 | | | (705) | | | (719) | | | 566 | | | — | | | 5,902 | | Vehicle loans | 27,226 | | | 7,267 | | | (4,731) | | | 1,631 | | | — | | | 23,059 | | Consumer loans | 1,202 | | | 3,463 | | | (3,860) | | | 934 | | | — | | | 665 | | Total Personal Banking | 50,562 | | | 7,978 | | | (10,233) | | | 3,930 | | | — | | | 48,887 | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | 48,582 | | | 3,587 | | | (1,556) | | | 1,619 | | | 426 | | | 44,506 | | Commercial real estate loans - owner occupied | 3,479 | | | (515) | | | (68) | | | 58 | | | — | | | 4,004 | | Commercial loans | 22,218 | | | 3,813 | | | (3,360) | | | 1,126 | | | — | | | 20,639 | | Total Commercial Banking | 74,279 | | | 6,885 | | | (4,984) | | | 2,803 | | | 426 | | | 69,149 | | Total | $ | 124,841 | | | 14,863 | | | (15,217) | | | 6,733 | | | 426 | | | 118,036 | | | | | | | | | | | | | | Allowance for Credit Losses - off-balance sheet exposure (1) | | | | | | | | | | | | Personal Banking: | | | | | | | | | | | | Residential mortgage loans | $ | 3 | | | (1) | | | — | | | — | | | — | | | 4 | | Home equity loans | 67 | | | (7) | | | — | | | — | | | — | | | 74 | | | | | | | | | | | | | | Total Personal Banking | 70 | | (8) | | | — | | | — | | | — | | | 78 | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | 4,797 | | | (578) | | | — | | | — | | | — | | | 5,375 | | Commercial real estate loans - owner occupied | 140 | | | (239) | | | — | | | — | | | — | | | 379 | | Commercial loans | 7,971 | | | 890 | | | — | | | — | | | — | | | 7,081 | | Total Commercial Banking | 12,908 | | | 73 | | | — | | | — | | | — | | | 12,835 | | Total off-balance sheet exposure | $ | 12,978 | | | 65 | | | — | | | — | | | — | | | 12,913 | |
(1) The table above has been revised to reflect the correct ending balance for total off-balance-sheet exposure at December 31, 2022. We evaluated the effect of the revision, both qualitatively and quantitatively, and concluded that the impact of the revision was not material.
The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the nine months ended September 30, 2022 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance as of September 30, 2022 | | Current period provision | | Charge-offs | | Recoveries | | Balance as of December 31, 2021 | Allowance for Credit Losses | | | | | | | | | | Personal Banking: | | | | | | | | | | Residential mortgage loans | $ | 17,967 | | | 11,331 | | | (1,487) | | | 750 | | | 7,373 | | Home equity loans | 5,448 | | | 127 | | | (1,237) | | | 1,258 | | | 5,300 | | Vehicle loans | 17,004 | | | 2,159 | | | (2,517) | | | 1,879 | | | 15,483 | | Consumer loans | 825 | | | 479 | | | (3,459) | | | 921 | | | 2,884 | | Total Personal Banking | 41,244 | | | 14,096 | | | (8,700) | | | 4,808 | | | 31,040 | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | Commercial real estate loans | 49,649 | | | (6,465) | | | (6,745) | | | 8,718 | | | 54,141 | | Commercial real estate loans - owner occupied | 4,087 | | | 167 | | | — | | | 37 | | | 3,883 | | Commercial loans | 14,839 | | | 1,039 | | | (1,253) | | | 1,876 | | | 13,177 | | Total Commercial Banking | 68,575 | | | (5,259) | | | (7,998) | | | 10,631 | | | 71,201 | | Total | $ | 109,819 | | | 8,837 | | | (16,698) | | | 15,439 | | | 102,241 | | | | | | | | | | | | Allowance for Credit Losses - off-balance sheet exposure | | | | | | | | | | Personal Banking: | | | | | | | | | | Residential mortgage loans | $ | 4 | | | 2 | | | — | | | — | | | 2 | | Home equity loans | 74 | | | 35 | | | — | | | — | | | 39 | | | | | | | | | | | | Total Personal Banking | 78 | | 37 | | — | | | — | | | 41 | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | Commercial real estate loans | 5,382 | | | 4,501 | | | — | | | — | | | 881 | | Commercial real estate loans - owner occupied | 287 | | | 145 | | | — | | | — | | | 142 | | Commercial loans | 5,288 | | | 3,894 | | | — | | | — | | | 1,394 | | Total Commercial Banking | 10,957 | | | 8,540 | | | — | | | — | | | 2,417 | | Total off-balance sheet exposure | $ | 11,035 | | | 8,577 | | | — | | | — | | | 2,458 | |
During the nine months ended September 30, 2022, the Company purchased a total of $182.8 million small business equipment finance loan pools and a total of $188.3 million one- to four-family jumbo mortgage loan pools. The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at September 30, 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total loans receivable | | Allowance for credit losses | | Nonaccrual loans | | Loans 90 days past due and accruing | | | | | | Personal Banking: | | | | | | | | | | | | | Residential mortgage loans | $ | 3,472,763 | | | 17,090 | | | 9,760 | | | — | | | | | | | Home equity loans | 1,258,765 | | | 5,044 | | | 3,431 | | | 133 | | | | | | | Vehicle loans | 2,039,699 | | | 27,226 | | | 3,817 | | | 57 | | | | | | | Consumer loans | 115,420 | | | 1,202 | | | 281 | | | 500 | | | | | | | Total Personal Banking | 6,886,647 | | | 50,562 | | | 17,289 | | | 690 | | | | | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | | Commercial real estate loans | 2,553,644 | | | 48,582 | | | 54,109 | | | — | | | | | | | Commercial real estate loans - owner occupied | 369,373 | | | 3,479 | | | 1,071 | | | — | | | | | | | Commercial loans | 1,500,609 | | | 22,218 | | | 4,185 | | | 38 | | | | | | | Total Commercial Banking | 4,423,626 | | | 74,279 | | | 59,365 | | | 38 | | | | | | | | | | | | | | | | | | | | Total | $ | 11,310,273 | | | 124,841 | | | 76,654 | | | 728 | | | | | | |
The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2022, prior to the adoption of ASU 2022-02 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total loans receivable | | Allowance for credit losses | | Nonaccrual loans (1) | | Loans 90 days past due and accruing | | TDRs | | Allowance related to TDRs | | Additional commitments to customers with loans classified as TDRs | Personal Banking: | | | | | | | | | | | | | | Residential mortgage loans | $ | 3,498,599 | | | 19,261 | | | 7,574 | | | — | | | 6,279 | | | 1,069 | | | — | | Home equity loans | 1,297,674 | | | 5,902 | | | 4,145 | | | — | | | 1,470 | | | 546 | | | — | | Vehicle loans | 2,056,783 | | | 23,059 | | | 3,771 | | | 2 | | | — | | | — | | | — | | Consumer loans | 111,872 | | | 665 | | | 256 | | | 405 | | | — | | | — | | | — | | Total Personal Banking | 6,964,928 | | | 48,887 | | | 15,746 | | | 407 | | | 7,749 | | | 1,615 | | | — | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | | | Commercial real estate loans | 2,448,028 | | | 44,506 | | | 62,239 | | | — | | | 31,980 | | | 638 | | | 400 | | Commercial real estate loans - owner occupied | 375,527 | | | 4,004 | | | 624 | | | — | | | 94 | | | 31 | | | — | | Commercial loans | 1,131,969 | | | 20,639 | | | 2,627 | | | 337 | | | 858 | | | 116 | | | 4 | | Total Commercial Banking | 3,955,524 | | | 69,149 | | | 65,490 | | | 337 | | | 32,932 | | | 785 | | | 404 | | | | | | | | | | | | | | | | Total | $ | 10,920,452 | | | 118,036 | | | 81,236 | | | 744 | | | 40,681 | | | 2,400 | | | 404 | |
(1)Includes $29.2 million of nonaccrual TDRs. We present the amortized cost of our loans on nonaccrual status including such loans with no allowance. The following table presents the amortized cost of our loans on nonaccrual status as of the beginning and end of the nine-month period ended September 30, 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2023 | | | | Nonaccrual loans at January 1, 2023 | | Nonaccrual loans with an allowance | | Nonaccrual loans with no allowance | | Total nonaccrual loans at the end of the period | | Loans 90 days past due and accruing | | | Personal Banking: | | | | | | | | | | | | Residential mortgage loans | $ | 7,574 | | | 9,760 | | | — | | | 9,760 | | | — | | | | Home equity loans | 4,145 | | | 3,262 | | | 169 | | | 3,431 | | | 133 | | | | Vehicle loans | 3,771 | | | 2,838 | | | 979 | | | 3,817 | | | 57 | | | | Consumer loans | 256 | | | 281 | | | — | | | 281 | | | 500 | | | | Total Personal Banking | 15,746 | | | 16,141 | | | 1,148 | | | 17,289 | | | 690 | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | 62,239 | | | 21,838 | | | 32,271 | | | 54,109 | | | — | | | | Commercial real estate loans - owner occupied | 624 | | | 1,071 | | | — | | | 1,071 | | | — | | | | Commercial loans | 2,627 | | | 3,828 | | | 357 | | | 4,185 | | | 38 | | | | Total Commercial Banking | 65,490 | | | 26,737 | | | 32,628 | | | 59,365 | | | 38 | | | | | | | | | | | | | | | | Total | $ | 81,236 | | | 42,878 | | | 33,776 | | | 76,654 | | | 728 | | | |
During the three and nine months ended September 30, 2023, we did not recognize any interest income on nonaccrual loans.
The following table presents the amortized cost of our loans on nonaccrual status as of the year ended December 31, 2022 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | | Nonaccrual loans at January 1, 2022 | | Nonaccrual loans with an allowance | | Nonaccrual loans with no allowance | | Total nonaccrual loans at the end of the period | | Loans 90 days past due and accruing | | | Personal Banking: | | | | | | | | | | | | Residential mortgage loans | $ | 10,402 | | | 7,574 | | | — | | | 7,574 | | | — | | | | Home equity loans | 5,758 | | | 3,887 | | | 258 | | | 4,145 | | | — | | | | Vehicle loans | 3,263 | | | 2,175 | | | 1,596 | | | 3,771 | | | 2 | | | | Consumer loans | 675 | | | 256 | | | — | | | 256 | | | 405 | | | | Total Personal Banking | 20,098 | | | 13,892 | | | 1,854 | | | 15,746 | | | 407 | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | 129,666 | | | 22,182 | | | 40,057 | | | 62,239 | | | — | | | | Commercial real estate loans - owner occupied | 1,233 | | | 624 | | | — | | | 624 | | | — | | | | Commercial loans | 7,474 | | | 2,024 | | | 603 | | | 2,627 | | | 337 | | | | Total Commercial Banking | 138,373 | | | 24,830 | | | 40,660 | | | 65,490 | | | 337 | | | | | | | | | | | | | | | | Total | $ | 158,471 | | | 38,722 | | | 42,514 | | | 81,236 | | | 744 | | | |
During the year ended December 31, 2022, we recognized $678,000 of interest income on nonaccrual and troubled debt restructuring loans. The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023 (in thousands): | | | | | | | | | | | | | | | | | | | Real estate | | | | | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | Commercial real estate loans | $ | 51,402 | | | | | | | 51,402 | | | | | | | | | | | | | | Commercial loans | 160 | | | | | | | 160 | | | | Total Commercial Banking | 51,562 | | | | | | | 51,562 | | | | | | | | | | | | | | Total | $ | 51,562 | | | | | | | 51,562 | | | |
The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2022 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | Real estate | | Equipment | | | | Total | | | Personal Banking: | | | | | | | | | | Residential mortgage loans | $ | 569 | | | — | | | | | 569 | | | | Home equity loans | 100 | | | — | | | | | 100 | | | | | | | | | | | | | | | | | | | | | | | | Total Personal Banking | 669 | | | — | | | | | 669 | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | Commercial real estate loans | 57,056 | | | — | | | | | 57,056 | | | | | | | | | | | | | | Commercial loans | 175 | | | 210 | | | | | 385 | | | | Total Commercial Banking | 57,231 | | | 210 | | | | | 57,441 | | | | | | | | | | | | | | Total | $ | 57,900 | | | 210 | | | | | 58,110 | | | |
Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses.
In some cases, the Company provides multiple types of concessions to one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay, and/or an interest rate reduction. The following table presents the amortized cost basis of loans as of September 30, 2023 that were both experiencing financial difficulty and modified during the periods indicated, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financial receivable is also presented below (dollars in thousands).
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the quarter ended September 30, 2023 | | | | | | For the nine months ended September 30, 2023 | | | | | | Term extension | | | | | | Combination term extension and interest rate reduction | | Total class of financing receivable | | | | | | Term extension | | | | | | Combination term extension and interest rate reduction | | Total class of financing receivable | Personal Banking: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential mortgage loans | | | | | $ | 192 | | | | | | | — | | | 0.01 | % | | | | | | 450 | | | | | | | — | | | 0.01 | % | Home equity loans | | | | | 122 | | | | | | | 85 | | | 0.02 | % | | | | | | 283 | | | | | | | 85 | | | 0.03 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer loans | | | | | — | | | | | | | — | | | — | % | | | | | | — | | | | | | | 3 | | | 0.00 | % | Total Personal Banking | | | | | 314 | | | | | | | 85 | | | 0.01 | % | | | | | | 733 | | | | | | | 88 | | | 0.01 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | — | | | | | | | — | | | — | % | | | | | | 197 | | | | | | | — | | | 0.01 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial loans | | | | | 15 | | | | | | | — | | | 0.00 | % | | | | | | 663 | | | | | | | — | | | 0.04 | % | Total Commercial Banking | | | | | 15 | | | | | | | — | | | — | % | | | | | | 860 | | | | | | | — | | | 0.02 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total | | | | | $ | 329 | | | | | | | 85 | | | 0.00 | % | | | | | | 1,593 | | | | | | | 88 | | | 0.01 | % |
The Company has committed to lend additional amounts totaling $31,000 to the borrowers included in the previous table.
The following table presents the effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the quarter ended September 30, 2023 | | For the nine months ended September 30, 2023 | | | | Weighted-average interest rate reduction | | Weighted-average term extension in months | | Weighted-average interest rate reduction | | Weighted-average term extension in months | Personal Banking: | | | | | | | | | | Residential mortgage loans | | | — | % | | 169 | | — | | | 149 | Home equity loans | | | 5 | % | | 112 | | 5 | % | | 96 | | | | | | | | | | | Consumer loans | | | — | % | | — | | | 12 | % | | 356 | Total Personal Banking | | | 5 | % | | 140 | | 17 | % | | 126 | | | | | | | | | | | Commercial Banking: | | | | | | | | | | Commercial real estate loans | | | — | % | | — | | | — | | | 25 | | | | | | | | | | | Commercial loans | | | — | % | | 23 | | — | | | 9 | Total Commercial Banking | | | — | % | | 23 | | — | | | 13 | Total loans | | | 5 | % | | 135 | | 17 | % | | 68 |
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that such loans have been modified since the adoption of ASU 2022-02 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Current | | 30-59 days delinquent | | 60-89 days delinquent | | 90 days or greater delinquent | Personal Banking: | | | | | | | | | | | | Residential mortgage loans | | | | | $ | 450 | | | — | | | — | | | — | | Home equity loans | | | | | 368 | | | — | | | — | | | — | | | | | | | | | | | | | | Consumer loans | | | | | 3 | | | — | | | — | | | — | | Total Personal Banking | | | | | 821 | | | — | | | — | | | — | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | | | | | 74 | | | — | | | — | | | 123 | | Commercial real estate loans - owner occupied | | | | | — | | | — | | | — | | | — | | Commercial loans | | | | | — | | | 15 | | | — | | | 648 | | Total Commercial Banking | | | | | 74 | | | 15 | | | — | | | 771 | | Total loans | | | | | $ | 895 | | | 15 | | | — | | | 771 | |
A modification is considered to be in default when the loan is 90 days or more past due. The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified since the adoption of ASU 2022-02 to borrowers experiencing financial difficulty (in thousands): | | | | | | | | | | | | | | | | | | | | | | Term extension | | | | | | | | Commercial Banking: | | | | | | | | | | | | | Commercial real estate loans | | | | | $ | 123 | | | | | | | | | | | | | | | | | | | | | | Commercial loans | | | | | 648 | | | | | | | | | Total Commercial Banking | | | | | 771 | | | | | | | | | | | | | | | | | | | | | | Total | | | | | $ | 771 | | | | | | | | |
The modifications to borrowers experiencing financial distress are included in their respective portfolio segment and the current loan balance and updated loan terms are run through their respective ACL models to arrive at the quantitative portion of the ACL. Subsequent performance of the loans will be measured by delinquency status and will be captured through our ACL models or our qualitative factor assessment, as deemed appropriate. If we no longer believe the loan demonstrates similar risks to their respective portfolio segment an individual assessment will be performed. Upon the Company's determination that a modified loan (or portion of a 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 tables provide a roll forward of troubled debt restructurings for the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the quarter ended September 30, 2022 | | For the nine months ended September 30, 2022 | | | Number of Contracts | | Amount | | Number of Contracts | | Amount | Beginning TDR balance: | | 128 | | | $ | 54,237 | | | 134 | | | $ | 30,288 | | New TDRs | | 6 | | | 221 | | | 8 | | | 25,626 | | Re-modified TDRs | | 4 | | | 977 | | | 10 | | | 1,178 | | Net paydowns | | — | | | (810) | | | — | | | (1,609) | | Charge-offs: | | | | | | | | | Residential mortgage loans | | — | | | — | | | 1 | | | (3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Paid-off loans: | | | | | | | | | Residential mortgage loans | | 1 | | | (35) | | | 2 | | | (236) | | Home equity loans | | 1 | | | (11) | | | 3 | | | (88) | | | | | | | | | | | Commercial real estate loans | | 1 | | | (3,349) | | | 4 | | | (3,718) | | Commercial real estate loans - owner occupied | | 1 | | | (44) | | | 1 | | | (44) | | Commercial loans | | 3 | | | (3,459) | | | 4 | | | (3,466) | | Ending TDR balance: | | 127 | | | $ | 46,750 | | | 127 | | | $ | 46,750 | | Accruing TDRs | | | | $ | 16,344 | | | | | $ | 16,344 | | Nonaccrual TDRs | | | | 30,406 | | | | | 30,406 | |
The following table provides information related to TDRs (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the quarter ended September 30, 2022 | | For the nine months ended September 30, 2022 | | Number of contracts | | Recorded investment at the time of modification | | Current recorded investment | | Current allowance | | Number of contracts | | Recorded investment at the time of modification | | Current recorded investment | | Current allowance | | | | | | | | | | | | | | | | | Personal Banking: | | | | | | | | | | | | | | | | Residential mortgage loans | 2 | | | $ | 147 | | | 144 | | | 15 | | | 2 | | | $ | 147 | | | 144 | | | 15 | | Home equity loans | 5 | | | 160 | | | 154 | | | 23 | | | 5 | | | 160 | | | 154 | | | 23 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Personal Banking | 7 | | | 307 | | | 298 | | | 38 | | | 7 | | | 307 | | | 298 | | | 38 | | | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | | | | | Commercial real estate loans | 1 | | | $ | 610 | | | 609 | | | 89 | | | 5 | | | $ | 34,295 | | | 26,212 | | | 102 | | | | | | | | | | | | | | | | | | Commercial loans | 2 | | | 332 | | | 291 | | | 20 | | | 6 | | | 3,856 | | | 294 | | | 20 | | Total Commercial Banking | 3 | | | 942 | | | 900 | | | 109 | | | 11 | | | 38,151 | | | 26,506 | | | 122 | | | | | | | | | | | | | | | | | | Total | 10 | | | $ | 1,249 | | | 1,198 | | | 147 | | | 18 | | | $ | 38,458 | | | 26,804 | | | 160 | |
The following table provides information as of September 30, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended September 30, 2022, prior to the adoption of ASU 2022-02 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Type of modification | | Number of contracts | | | | | | Maturity date | | | | Total | Personal Banking: | | | | | | | | | | | | Residential mortgage loans | 2 | | | | | | | $ | 144 | | | | | 144 | | Home equity loans | 5 | | | | | | | 154 | | | | | 154 | | | | | | | | | | | | | | | | | | | | | | | | | | Total Personal Banking | 7 | | | | | | | 298 | | | | | 298 | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | 1 | | | | | | | $ | 609 | | | | | 609 | | | | | | | | | | | | | | Commercial loans | 2 | | | | | | | 291 | | | | | 291 | | Total Commercial Banking | 3 | | | | | | | 900 | | | | | 900 | | | | | | | | | | | | | | Total | 10 | | | | | | | $ | 1,198 | | | | | 1,198 | |
The following table provides information as of September 30, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the nine months ended September 30, 2022, prior to the adoption of ASU 2022-02 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Type of modification | | Number of contracts | | Rate | | | | Maturity date | | | | Total | Personal Banking: | | | | | | | | | | | | Residential mortgage loans | 2 | | | $ | — | | | | | 144 | | | | | 144 | | Home equity loans | 5 | | | — | | | | | 154 | | | | | 154 | | | | | | | | | | | | | | | | | | | | | | | | | | Total Personal Banking | 7 | | | — | | | | | 298 | | | | | 298 | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | Commercial real estate loans | 5 | | | $ | 4,166 | | | | | 22,046 | | | | | 26,212 | | | | | | | | | | | | | | Commercial loans | 6 | | | — | | | | | 294 | | | | | 294 | | Total Commercial Banking | 11 | | | 4,166 | | | | | 22,340 | | | | | 26,506 | | | | | | | | | | | | | | Total | 18 | | | $ | 4,166 | | | | | 22,638 | | | | | 26,804 | |
No TDRs modified within the previous twelve months of September 30, 2022 subsequently defaulted, prior to the adoption of ASU 2022-02. The following table provides information related to the amortized cost basis of loan payment delinquencies at September 30, 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 30-59 days delinquent | | 60-89 days delinquent | | 90 days or greater delinquent | | Total delinquency | | Current | | Total loans receivable | | 90 days or greater delinquent and accruing | | | | | | | | | | | | | | | Personal Banking: | | | | | | | | | | | | | | Residential mortgage loans | $ | 573 | | | 5,395 | | | 7,695 | | | 13,663 | | | 3,459,100 | | | 3,472,763 | | | — | | Home equity loans | 4,707 | | | 1,341 | | | 2,206 | | | 8,254 | | | 1,250,511 | | | 1,258,765 | | | 133 | | Vehicle loans | 9,122 | | | 2,412 | | | 2,274 | | | 13,808 | | | 2,025,891 | | | 2,039,699 | | | 57 | | Consumer loans | 752 | | | 295 | | | 746 | | | 1,793 | | | 113,627 | | | 115,420 | | | 500 | | Total Personal Banking | 15,154 | | | 9,443 | | | 12,921 | | | 37,518 | | | 6,849,129 | | | 6,886,647 | | | 690 | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | | | Commercial real estate loans | 3,411 | | | 1,328 | | | 8,042 | | | 12,781 | | | 2,540,863 | | | 2,553,644 | | | — | | Commercial real estate loans - owner occupied | — | | | 260 | | | 374 | | | 634 | | | 368,739 | | | 369,373 | | | — | | Commercial loans | 2,847 | | | 981 | | | 2,472 | | | 6,300 | | | 1,494,309 | | | 1,500,609 | | | 38 | | Total Commercial Banking | 6,258 | | | 2,569 | | | 10,888 | | | 19,715 | | | 4,403,911 | | | 4,423,626 | | | 38 | | Total loans | $ | 21,412 | | | 12,012 | | | 23,809 | | | 57,233 | | | 11,253,040 | | | 11,310,273 | | | 728 | |
The following table provides information related to the amortized cost basis of loan payment delinquencies at December 31, 2022 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 30-59 days delinquent | | 60-89 days delinquent | | 90 days or greater delinquent | | Total delinquency | | Current | | Total loans receivable | | 90 days or greater delinquent and accruing | | | | | | | | | | | | | | | Personal Banking: | | | | | | | | | | | | | | Residential mortgage loans | $ | 29,487 | | | 5,563 | | | 5,574 | | | 40,624 | | | 3,457,975 | | | 3,498,599 | | | — | | Home equity loans | 6,657 | | | 975 | | | 2,257 | | | 9,889 | | | 1,287,785 | | | 1,297,674 | | | — | | Vehicle loans | 8,677 | | | 2,770 | | | 2,471 | | | 13,918 | | | 2,042,865 | | | 2,056,783 | | | 2 | | Consumer loans | 758 | | | 300 | | | 608 | | | 1,666 | | | 110,206 | | | 111,872 | | | 405 | | Total Personal Banking | 45,579 | | | 9,608 | | | 10,910 | | | 66,097 | | | 6,898,831 | | | 6,964,928 | | | 407 | | | | | | | | | | | | | | | | Commercial Banking: | | | | | | | | | | | | | | Commercial real estate loans | 3,947 | | | 2,377 | | | 7,589 | | | 13,913 | | | 2,434,115 | | | 2,448,028 | | | — | | Commercial real estate loans - owner occupied | 61 | | | — | | | 278 | | | 339 | | | 375,188 | | | 375,527 | | | — | | Commercial loans | 2,648 | | | 1,115 | | | 1,829 | | | 5,592 | | | 1,126,377 | | | 1,131,969 | | | 337 | | Total Commercial Banking | 6,656 | | | 3,492 | | | 9,696 | | | 19,844 | | | 3,935,680 | | | 3,955,524 | | | 337 | | Total originated loans | $ | 52,235 | | | 13,100 | | | 20,606 | | | 85,941 | | | 10,834,511 | | | 10,920,452 | | | 744 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Quality Indicators: For Commercial Banking we categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze loans individually by classifying the loans by credit risk. Credit relationships greater than or equal to $1.0 million classified as special mention or substandard are reviewed quarterly for deterioration or improvement to determine if the loan is appropriately classified. We use the following definitions for risk ratings other than pass: Special Mention — Loans designated as special mention have specific, well-defined risk issues, which create a high level of uncertainty regarding the long-term viability of the business. Loans in this class are considered to have high-risk characteristics. A special mention loan exhibits material negative financial trends due to company-specific or systemic conditions. If these potential weaknesses are not mitigated, they threaten the borrower’s capacity to meet its debt obligations. Special mention loans still demonstrate sufficient financial flexibility to react to and positively address the root cause of the adverse financial trends without significant deviations from their current business strategy. Their potential weaknesses deserve our close attention and warrant enhanced monitoring.
Substandard — Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.
Doubtful — Loans classified as doubtful have all the weaknesses inherent in those classified as substandard. In addition, those weaknesses make collection or liquidation in full highly questionable and improbable. A loan classified as doubtful exhibits discernible loss potential, but a complete loss seems very unlikely. The possibility of a loss on a doubtful loan is high, but because of certain important and reasonably specific pending factors that may strengthen the loan, its classification as an estimated loss is deferred until a more exact status can be determined. Loss — Loans classified as loss are considered uncollectible and of such value that the continuance as a loan is not warranted. A loss classification does not mean that the loan has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off all or a portion of a basically worthless loan even though partial recovery may be possible in the future.
For Personal Banking loans a pass risk rating is maintained until they are 90 days or greater past due, and risk rating reclassification is based primarily on past due status of the loan. The risk rating categories can generally be described by the following groupings:
Pass — Loans classified as pass are homogeneous loans that are less than 90 days past due from the required payment date at month-end.
Substandard — Loans classified as substandard are homogeneous loans that are greater than 90 days past due from the required payment date at month-end, or homogenous retail loans that are greater than 180 days past due from the required payment date at month-end that has been written down to the value of underlying collateral, less costs to sell.
Doubtful — Loans classified as doubtful are homogeneous loans that are greater than 180 days past due from the required payment date at month-end and not written down to the value of underlying collateral. These loans are generally charged-off in the month in which the 180 day period elapses.
The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator and the current period charge-offs by year of origination for each portfolio segment as of September 30, 2023 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | YTD September 30, 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | Revolving loans | | Revolving loans converted to term loans | | Total loans receivable | Personal Banking: | | | | | | | | | | | | | | | | | | Residential mortgage loans | | | | | | | | | | | | | | | | | | Pass | $ | 159,472 | | | 673,235 | | | 803,613 | | | 516,270 | | | 249,797 | | | 1,056,864 | | | — | | | — | | | 3,459,251 | | Substandard | — | | | 1,033 | | | 260 | | | 872 | | | 336 | | | 11,011 | | | — | | | — | | | 13,512 | | Total residential mortgage loans | 159,472 | | | 674,268 | | | 803,873 | | | 517,142 | | | 250,133 | | | 1,067,875 | | | — | | | — | | | 3,472,763 | | Residential mortgage current period charge-offs | — | | | — | | | (5) | | | (130) | | | — | | | (788) | | | — | | | — | | | (923) | | Home equity loans | | | | | | | | | | | | | | | | | | Pass | 65,795 | | | 104,272 | | | 110,823 | | | 153,431 | | | 98,062 | | | 210,273 | | | 469,459 | | | 42,870 | | | 1,254,985 | | Substandard | — | | | — | | | — | | | — | | | 149 | | | 1,783 | | | 1,050 | | | 798 | | | 3,780 | | Total home equity loans | 65,795 | | | 104,272 | | | 110,823 | | | 153,431 | | | 98,211 | | | 212,056 | | | 470,509 | | | 43,668 | | | 1,258,765 | | Home equity current period charge-offs | — | | | (53) | | | (46) | | | — | | | (48) | | | (257) | | | (142) | | | (173) | | | (719) | | Vehicle loans | | | | | | | | | | | | | | | | | | Pass | 541,270 | | | 746,225 | | | 444,934 | | | 153,264 | | | 81,931 | | | 68,201 | | | — | | | — | | | 2,035,825 | | Substandard | 320 | | | 901 | | | 1,386 | | | 247 | | | 564 | | | 456 | | | — | | | — | | | 3,874 | | Total vehicle loans | 541,590 | | | 747,126 | | | 446,320 | | | 153,511 | | | 82,495 | | | 68,657 | | | — | | | — | | | 2,039,699 | | Vehicle current period charge-offs | (324) | | | (1,385) | | | (1,425) | | | (416) | | | (497) | | | (684) | | | — | | | — | | | (4,731) | | Consumer loans | | | | | | | | | | | | | | | | | | Pass | 20,061 | | | 13,137 | | | 6,361 | | | 2,485 | | | 1,727 | | | 6,201 | | | 63,801 | | | 866 | | | 114,639 | | Substandard | 45 | | | 57 | | | 31 | | | 8 | | | 14 | | | 1 | | | 506 | | | 119 | | | 781 | | Total consumer loans | 20,106 | | | 13,194 | | | 6,392 | | | 2,493 | | | 1,741 | | | 6,202 | | | 64,307 | | | 985 | | | 115,420 | | Consumer loan current period charge-offs | (2,055) | | | (340) | | | (271) | | | (116) | | | (150) | | | (766) | | | (149) | | | (13) | | | (3,860) | | Total Personal Banking | 786,963 | | | 1,538,860 | | | 1,367,408 | | | 826,577 | | | 432,580 | | | 1,354,790 | | | 534,816 | | | 44,653 | | | 6,886,647 | | Business Banking: | | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | | Pass | 127,229 | | | 437,503 | | | 356,152 | | | 330,522 | | | 225,478 | | | 776,377 | | | 23,845 | | | 25,345 | | | 2,302,451 | | Special mention | — | | | 7,451 | | | 26,749 | | | 21,732 | | | 5,615 | | | 34,909 | | | 350 | | | — | | | 96,806 | | Substandard | — | | | 174 | | | 1,056 | | | 8,108 | | | 48,592 | | | 95,825 | | | 514 | | | 118 | | | 154,387 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total commercial real estate loans | 127,229 | | | 445,128 | | | 383,957 | | | 360,362 | | | 279,685 | | | 907,111 | | | 24,709 | | | 25,463 | | | 2,553,644 | | Commercial real estate current period charge-offs | — | | | — | | | (492) | | | — | | | (51) | | | (1,013) | | | — | | | — | | | (1,556) | | Commercial real estate loans - owner occupied | | | | | | | | | | | | | | | | | | Pass | 17,830 | | | 50,716 | | | 48,567 | | | 14,845 | | | 44,834 | | | 148,778 | | | 2,237 | | | 2,214 | | | 330,021 | | Special mention | — | | | 17,631 | | | — | | | 1,690 | | | — | | | 7,808 | | | — | | | — | | | 27,129 | | Substandard | — | | | — | | | 122 | | | 1,344 | | | 4,736 | | | 5,308 | | | — | | | 713 | | | 12,223 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total commercial real estate loans - owner occupied | 17,830 | | | 68,347 | | | 48,689 | | | 17,879 | | | 49,570 | | | 161,894 | | | 2,237 | | | 2,927 | | | 369,373 | | Commercial real estate - owner occupied current period charge-offs | — | | | — | | | — | | | — | | | — | | | (68) | | | — | | | — | | | (68) | | Commercial loans | | | | | | | | | | | | | | | | | | Pass | 315,190 | | | 455,098 | | | 77,266 | | | 28,754 | | | 37,787 | | | 56,731 | | | 501,722 | | | 4,285 | | | 1,476,833 | | Special mention | 542 | | | 315 | | | 58 | | | 369 | | | 316 | | | 68 | | | 2,022 | | | — | | | 3,690 | | Substandard | — | | | 2,496 | | | 577 | | | 495 | | | 2,503 | | | 1,025 | | | 11,730 | | | 1,260 | | | 20,086 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total commercial loans | 315,732 | | | 457,909 | | | 77,901 | | | 29,618 | | | 40,606 | | | 57,824 | | | 515,474 | | | 5,545 | | | 1,500,609 | | Commercial loans current period charge-offs | — | | | (1,526) | | | (517) | | | (430) | | | (110) | | | (715) | | | (60) | | | (2) | | | (3,360) | | Total Business Banking | 460,791 | | | 971,384 | | | 510,547 | | | 407,859 | | | 369,861 | | | 1,126,829 | | | 542,420 | | | 33,935 | | | 4,423,626 | | | | | | | | | | | | | | | | | | | | Total loans | $ | 1,247,754 | | | 2,510,244 | | | 1,877,955 | | | 1,234,436 | | | 802,441 | | | 2,481,619 | | | 1,077,236 | | | 78,588 | | | 11,310,273 | |
For the nine months ended September 30, 2023, $13.7 million of revolving loans were converted to term loans. The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator for each portfolio segment as of December 31, 2022 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 | | Prior | | Revolving loans | | Revolving loans converted to term loans | | Total loans receivable | | Personal Banking: | | | | | | | | | | | | | | | | | | | Residential mortgage loans | | | | | | | | | | | | | | | | | | | Pass | $ | 659,930 | | | 837,823 | | | 546,604 | | | 265,520 | | | 131,599 | | | 1,043,394 | | | — | | | — | | | 3,484,870 | | | Substandard | 422 | | | 187 | | | 474 | | | 796 | | | 531 | | | 11,319 | | | — | | | — | | | 13,729 | | | Total residential mortgage loans | 660,352 | | | 838,010 | | | 547,078 | | | 266,316 | | | 132,130 | | | 1,054,713 | | | — | | | — | | | 3,498,599 | | | Home equity loans | | | | | | | | | | | | | | | | | | | Pass | 114,598 | | | 126,608 | | | 173,044 | | | 110,495 | | | 50,314 | | | 198,971 | | | 475,229 | | | 42,887 | | | 1,292,146 | | | Substandard | — | | | 46 | | | — | | | 127 | | | 324 | | | 3,066 | | | 683 | | | 1,282 | | | 5,528 | | | Total home equity loans | 114,598 | | | 126,654 | | | 173,044 | | | 110,622 | | | 50,638 | | | 202,037 | | | 475,912 | | | 44,169 | | | 1,297,674 | | | Vehicle loans | | | | | | | | | | | | | | | | | | | Pass | 966,432 | | | 611,310 | | | 227,897 | | | 135,134 | | | 70,071 | | | 42,166 | | | — | | | — | | | 2,053,010 | | | Substandard | 292 | | | 1,096 | | | 667 | | | 689 | | | 657 | | | 372 | | | — | | | — | | | 3,773 | | | Total vehicle loans | 966,724 | | | 612,406 | | | 228,564 | | | 135,823 | | | 70,728 | | | 42,538 | | | — | | | — | | | 2,056,783 | | | Consumer loans | | | | | | | | | | | | | | | | | | | Pass | 19,302 | | | 9,874 | | | 4,327 | | | 3,557 | | | 2,409 | | | 5,094 | | | 65,610 | | | 1,037 | | | 111,210 | | | Substandard | 24 | | | 9 | | | 37 | | | 9 | | | 3 | | | 48 | | | 432 | | | 100 | | | 662 | | | Total consumer loans | 19,326 | | | 9,883 | | | 4,364 | | | 3,566 | | | 2,412 | | | 5,142 | | | 66,042 | | | 1,137 | | | 111,872 | | | Total Personal Banking | 1,761,000 | | | 1,586,953 | | | 953,050 | | | 516,327 | | | 255,908 | | | 1,304,430 | | | 541,954 | | | 45,306 | | | 6,964,928 | | | Business Banking: | | | | | | | | | | | | | | | | | | | Commercial real estate loans | | | | | | | | | | | | | | | | | | | Pass | 322,050 | | | 346,355 | | | 369,868 | | | 244,188 | | | 209,500 | | | 696,628 | | | 24,954 | | | 13,314 | | | 2,226,857 | | | Special mention | — | | | 17,216 | | | 16,782 | | | 87 | | | 1,000 | | | 15,887 | | | 157 | | | 15 | | | 51,144 | | | Substandard | — | | | 4,561 | | | 3,617 | | | 48,879 | | | 41,521 | | | 70,384 | | | 459 | | | 606 | | | 170,027 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total commercial real estate loans | 322,050 | | | 368,132 | | | 390,267 | | | 293,154 | | | 252,021 | | | 782,899 | | | 25,570 | | | 13,935 | | | 2,448,028 | | | Commercial real estate - owner occupied | | | | | | | | | | | | | | | | | | | Pass | 62,905 | | | 51,673 | | | 17,989 | | | 49,600 | | | 43,570 | | | 123,278 | | | 2,477 | | | 1,460 | | | 352,952 | | | Special mention | 126 | | | — | | | 18 | | | — | | | 2,297 | | | 1,106 | | | 385 | | | — | | | 3,932 | | | Substandard | — | | | — | | | — | | | 5,085 | | | 2,440 | | | 9,250 | | | — | | | 1,868 | | | 18,643 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total commercial real estate - owner occupied loans | 63,031 | | | 51,673 | | | 18,007 | | | 54,685 | | | 48,307 | | | 133,634 | | | 2,862 | | | 3,328 | | | 375,527 | | | Commercial loans | | | | | | | | | | | | | | | | | | | Pass | 481,797 | | | 90,320 | | | 52,833 | | | 46,966 | | | 17,250 | | | 53,107 | | | 354,402 | | | 4,032 | | | 1,100,707 | | | Special mention | 628 | | | 2,190 | | | 506 | | | 1,704 | | | 227 | | | — | | | 2,129 | | | — | | | 7,384 | | | Substandard | 1,833 | | | 603 | | | 908 | | | 2,097 | | | 1,605 | | | 735 | | | 12,941 | | | 3,156 | | | 23,878 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total commercial loans | 484,258 | | | 93,113 | | | 54,247 | | | 50,767 | | | 19,082 | | | 53,842 | | | 369,472 | | | 7,188 | | | 1,131,969 | | | Total Business Banking | 869,339 | | | 512,918 | | | 462,521 | | | 398,606 | | | 319,410 | | | 970,375 | | | 397,904 | | | 24,451 | | | 3,955,524 | | | | | | | | | | | | | | | | | | | | | | Total loans | $ | 2,630,339 | | | 2,099,871 | | | 1,415,571 | | | 914,933 | | | 575,318 | | | 2,274,805 | | | 939,858 | | | 69,757 | | | 10,920,452 | | |
For the year ended December 31, 2022, $20.7 million of revolving loans were converted to term loans.
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