XML 22 R13.htm IDEA: XBRL DOCUMENT v3.23.3
Loans Receivable
9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
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, 2023December 31, 2022
 Originated (1)Acquired (2)TotalOriginated (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 loans1,126,675 132,090 1,258,765 1,131,641 166,033 1,297,674 
Vehicle loans1,969,029 70,670 2,039,699 1,965,385 91,398 2,056,783 
Consumer loans109,319 6,101 115,420 104,284 7,588 111,872 
Total Personal Banking6,527,159 359,488 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 occupied343,714 25,659 369,373 341,704 33,823 375,527 
Commercial loans1,463,159 37,450 1,500,609 1,082,914 49,055 1,131,969 
Total Commercial Banking4,093,436 330,190 4,423,626 3,560,225 395,299 3,955,524 
Total loans receivable, gross10,620,595 689,678 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, 2023Current period provisionCharge-offsRecoveriesBalance as of June 30, 2023
Allowance for Credit Losses
Personal Banking:     
Residential mortgage loans$17,090 (370)(171)75 17,556 
Home equity loans5,044 201 (320)161 5,002 
Vehicle loans27,226 984 (1,524)483 27,283 
Consumer loans1,202 1,436 (1,561)317 1,010 
Total Personal Banking50,562 2,251 (3,576)1,036 50,851 
Commercial Banking:     
Commercial real estate loans48,582 (1,110)(484)120 50,056 
Commercial real estate loans - owner occupied3,479 (30)— 11 3,498 
Commercial loans22,218 2,872 (1,286)614 20,018 
Total Commercial Banking74,279 1,732 (1,770)745 73,572 
Total$124,841 3,983 (5,346)1,781 124,423 
Allowance for Credit Losses - off-balance sheet exposure
Personal Banking:
Residential mortgage loans$(1)— — 
Home equity loans67 — — 64 
Total Personal Banking70 — — 68 
Commercial Banking:     
Commercial real estate loans4,797 (2,858)— — 7,655 
Commercial real estate loans - owner occupied 140 (180)— — 320 
Commercial loans7,971 55 — — 7,916 
Total Commercial Banking12,908 (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, 2022Current period provisionCharge-offsRecoveriesBalance as of June 30, 2022
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans$17,967 1,646 (166)329 16,158 
Home equity loans5,448 341 (535)410 5,232 
Vehicle loans17,004 1,576 (936)626 15,738 
Consumer loans825 1,170 (1,405)281 779 
Total Personal Banking41,244 4,733 (3,042)1,646 37,907 
Commercial Banking:
Commercial real estate loans49,649 5,117 (1,329)6,220 39,641 
Commercial real estate loans - owner occupied4,087 (34)— 26 4,095 
Commercial loans14,839 (2,127)(243)497 16,712 
Total Commercial Banking68,575 2,956 (1,572)6,743 60,448 
Total$109,819 7,689 (4,614)8,389 98,355 
Allowance for Credit Losses - off-balance sheet exposure
Personal Banking:
Residential mortgage loans$(2)— — 
Home equity loans74 10 — — 64 
Total Personal Banking78 — — 70 
Commercial Banking:
Commercial real estate loans5,382 1,919 — — 3,463 
Commercial real estate loans - owner occupied287 (41)— — 328 
Commercial loans5,288 1,699 — — 3,589 
Total Commercial Banking10,957 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 provisionCharge-offsRecoveriesASU 2022-02 AdoptionBalance December 31, 2022
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans$17,090 (2,047)(923)799 — 19,261 
Home equity loans5,044 (705)(719)566 — 5,902 
Vehicle loans27,226 7,267 (4,731)1,631 — 23,059 
Consumer loans1,202 3,463 (3,860)934 — 665 
Total Personal Banking50,562 7,978 (10,233)3,930 — 48,887 
Commercial Banking:
Commercial real estate loans48,582 3,587 (1,556)1,619 426 44,506 
Commercial real estate loans - owner occupied3,479 (515)(68)58 — 4,004 
Commercial loans22,218 3,813 (3,360)1,126 — 20,639 
Total Commercial Banking74,279 6,885 (4,984)2,803 426 69,149 
Total$124,841 14,863 (15,217)6,733 426 118,036 
Allowance for Credit Losses - off-balance sheet exposure (1)
Personal Banking:
Residential mortgage loans$(1)— — — 
Home equity loans67 (7)— — — 74 
Total Personal Banking70(8)— — — 78 
Commercial Banking:
Commercial real estate loans4,797 (578)— — — 5,375 
Commercial real estate loans - owner occupied140 (239)— — — 379 
Commercial loans7,971 890 — — — 7,081 
Total Commercial Banking12,908 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, 2022Current period provisionCharge-offsRecoveriesBalance 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 loans5,448 127 (1,237)1,258 5,300 
Vehicle loans17,004 2,159 (2,517)1,879 15,483 
Consumer loans825 479 (3,459)921 2,884 
Total Personal Banking41,244 14,096 (8,700)4,808 31,040 
Commercial Banking:
Commercial real estate loans49,649 (6,465)(6,745)8,718 54,141 
Commercial real estate loans - owner occupied4,087 167 — 37 3,883 
Commercial loans14,839 1,039 (1,253)1,876 13,177 
Total Commercial Banking68,575 (5,259)(7,998)10,631 71,201 
Total$109,819 8,837 (16,698)15,439 102,241 
Allowance for Credit Losses -
off-balance sheet exposure
Personal Banking:
Residential mortgage loans$— — 
Home equity loans74 35 — — 39 
Total Personal Banking7837— — 41 
Commercial Banking:
Commercial real estate loans5,382 4,501 — — 881 
Commercial real estate loans - owner occupied287 145 — — 142 
Commercial loans5,288 3,894 — — 1,394 
Total Commercial Banking10,957 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 loans1,258,765 5,044 3,431 133 
Vehicle loans2,039,699 27,226 3,817 57 
Consumer loans115,420 1,202 281 500 
Total Personal Banking6,886,647 50,562 17,289 690 
Commercial Banking:    
Commercial real estate loans2,553,644 48,582 54,109 — 
Commercial real estate loans - owner occupied369,373 3,479 1,071 — 
Commercial loans1,500,609 22,218 4,185 38 
Total Commercial Banking4,423,626 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 accruingTDRsAllowance
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 loans1,297,674 5,902 4,145 — 1,470 546 — 
Vehicle loans2,056,783 23,059 3,771 — — — 
Consumer loans111,872 665 256 405 — — — 
Total Personal Banking6,964,928 48,887 15,746 407 7,749 1,615 — 
Commercial Banking:       
Commercial real estate loans2,448,028 44,506 62,239 — 31,980 638 400 
Commercial real estate loans - owner occupied375,527 4,004 624 — 94 31 — 
Commercial loans1,131,969 20,639 2,627 337 858 116 
Total Commercial Banking3,955,524 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, 2023Nonaccrual loans with an allowanceNonaccrual loans with no allowanceTotal nonaccrual loans at the end of the periodLoans 90 days past due and accruing
Personal Banking:    
Residential mortgage loans$7,574 9,760 — 9,760 — 
Home equity loans4,145 3,262 169 3,431 133 
Vehicle loans3,771 2,838 979 3,817 57 
Consumer loans256 281 — 281 500 
Total Personal Banking15,746 16,141 1,148 17,289 690 
Commercial Banking:    
Commercial real estate loans62,239 21,838 32,271 54,109 — 
Commercial real estate loans - owner occupied624 1,071 — 1,071 — 
Commercial loans2,627 3,828 357 4,185 38 
Total Commercial Banking65,490 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, 2022Nonaccrual loans with an allowanceNonaccrual loans with no allowanceTotal nonaccrual loans at the end of the periodLoans 90 days past due and accruing
Personal Banking:
Residential mortgage loans$10,402 7,574 — 7,574 — 
Home equity loans5,758 3,887 258 4,145 — 
Vehicle loans3,263 2,175 1,596 3,771 
Consumer loans675 256 — 256 405 
Total Personal Banking20,098 13,892 1,854 15,746 407 
Commercial Banking:
Commercial real estate loans129,666 22,182 40,057 62,239 — 
Commercial real estate loans - owner occupied 1,233 624 — 624 — 
Commercial loans7,474 2,024 603 2,627 337 
Total Commercial Banking138,373 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 estateTotal
Commercial Banking:  
Commercial real estate loans$51,402 51,402 
Commercial loans160 160 
Total Commercial Banking51,562 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 estateEquipmentTotal
Personal Banking:
Residential mortgage loans$569 — 569 
Home equity loans100 — 100 
Total Personal Banking669 — 669 
Commercial Banking:
Commercial real estate loans57,056 — 57,056 
Commercial loans175 210 385 
Total Commercial Banking57,231 210 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, 2023For the nine months ended September 30, 2023
Term extensionCombination term extension and interest rate reductionTotal class of financing receivableTerm extensionCombination term extension and interest rate reductionTotal class of financing receivable
Personal Banking:
Residential mortgage loans
$192 — 0.01 %450 — 0.01 %
Home equity loans122 85 0.02 %283 85 0.03 %
Consumer loans
— — — %— 0.00 %
Total Personal Banking314 85 0.01 %733 88 0.01 %
Commercial Banking:
Commercial real estate loans— — — %197 — 0.01 %
Commercial loans15 — 0.00 %663 — 0.04 %
Total Commercial Banking15 — — %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, 2023For the nine months ended September 30, 2023
 Weighted-average interest rate reductionWeighted-average term extension in monthsWeighted-average interest rate reductionWeighted-average term extension in months
Personal Banking:  
Residential mortgage loans— %169— 149
Home equity loans%112%96
Consumer loans— %— 12 %356
Total Personal Banking%14017 %126
Commercial Banking:
Commercial real estate loans— %— — 25
Commercial loans— %23— 9
Total Commercial Banking— %23— 13
Total loans%13517 %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):
 Current30-59 days
delinquent
60-89 days
delinquent
90 days or
greater
delinquent
Personal Banking:
Residential mortgage loans$450 — — — 
Home equity loans368 — — — 
Consumer loans— — — 
Total Personal Banking821 — — — 
Commercial Banking:
Commercial real estate loans74 — — 123 
Commercial real estate loans - owner occupied— — — — 
Commercial loans— 15 — 648 
Total Commercial Banking74 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 loans648 
Total Commercial Banking771 
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, 2022For the nine months ended September 30, 2022
 Number of ContractsAmountNumber of ContractsAmount
Beginning TDR balance:128 $54,237 134 $30,288 
New TDRs221 25,626 
Re-modified TDRs977 10 1,178 
Net paydowns— (810)— (1,609)
Charge-offs: 
Residential mortgage loans— — (3)
Paid-off loans:
Residential mortgage loans(35)(236)
Home equity loans(11)(88)
Commercial real estate loans(3,349)(3,718)
Commercial real estate loans - owner occupied(44)(44)
Commercial loans(3,459)(3,466)
Ending TDR balance:127 $46,750 127 $46,750 
Accruing TDRs$16,344 $16,344 
Nonaccrual TDRs30,406 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, 2022For 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$147 144 15 $147 144 15 
Home equity loans160 154 23 160 154 23 
Total Personal Banking307 298 38 307 298 38 
Commercial Banking:
Commercial real estate loans$610 609 89 $34,295 26,212 102 
Commercial loans332 291 20 3,856 294 20 
Total Commercial Banking942 900 109 11 38,151 26,506 122 
Total10 $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 contractsMaturity dateTotal
Personal Banking:
Residential mortgage loans$144 144 
Home equity loans
154 154 
Total Personal Banking298 298 
Commercial Banking:
Commercial real estate loans$609 609 
Commercial loans291 291 
Total Commercial Banking900 900 
Total10 $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 contractsRateMaturity dateTotal
Personal Banking:
Residential mortgage loans$— 144 144 
Home equity loans
— 154 154 
Total Personal Banking— 298 298 
Commercial Banking:
Commercial real estate loans$4,166 22,046 26,212 
Commercial loans— 294 294 
Total Commercial Banking11 4,166 22,340 26,506 
Total18 $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
CurrentTotal 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 loans4,707 1,341 2,206 8,254 1,250,511 1,258,765 133 
Vehicle loans9,122 2,412 2,274 13,808 2,025,891 2,039,699 57 
Consumer loans752 295 746 1,793 113,627 115,420 500 
Total Personal Banking15,154 9,443 12,921 37,518 6,849,129 6,886,647 690 
Commercial Banking:     
Commercial real estate loans3,411 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 loans2,847 981 2,472 6,300 1,494,309 1,500,609 38 
Total Commercial Banking6,258 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
CurrentTotal 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 loans8,677 2,770 2,471 13,918 2,042,865 2,056,783 
Consumer loans
758 300 608 1,666 110,206 111,872 405 
Total Personal Banking45,579 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 occupied61 — 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 Banking6,656 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, 20232022202120202019PriorRevolving loansRevolving loans converted to term loansTotal 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 loans159,472 674,268 803,873 517,142 250,133 1,067,875 — — 3,472,763 
Residential mortgage current period charge-offs— — (5)(130)— (788)— — (923)
Home equity loans
Pass65,795 104,272 110,823 153,431 98,062 210,273 469,459 42,870 1,254,985 
Substandard— — — — 149 1,783 1,050 798 3,780 
Total home equity loans65,795 104,272 110,823 153,431 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
Pass541,270 746,225 444,934 153,264 81,931 68,201 — — 2,035,825 
Substandard320 901 1,386 247 564 456 — — 3,874 
Total vehicle loans541,590 747,126 446,320 153,511 82,495 68,657 — — 2,039,699 
Vehicle current period charge-offs(324)(1,385)(1,425)(416)(497)(684)— — (4,731)
Consumer loans
Pass20,061 13,137 6,361 2,485 1,727 6,201 63,801 866 114,639 
Substandard45 57 31 14 506 119 781 
Total consumer loans20,106 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 Banking786,963 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
Pass127,229 437,503 356,152 330,522 225,478 776,377 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 loans127,229 445,128 383,957 360,362 279,685 907,111 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
Pass17,830 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 occupied17,830 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
Pass315,190 455,098 77,266 28,754 37,787 56,731 501,722 4,285 1,476,833 
Special mention542 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 loans315,732 457,909 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 Banking460,791 971,384 510,547 407,859 369,861 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): 
20222021202020192018PriorRevolving loansRevolving loans converted to term loansTotal loans
receivable
Personal Banking:     
Residential mortgage loans
Pass$659,930 837,823 546,604 265,520 131,599 1,043,394 — — 3,484,870 
Substandard422 187 474 796 531 11,319 — — 13,729 
Total residential mortgage loans660,352 838,010 547,078 266,316 132,130 1,054,713 — — 3,498,599 
Home equity loans
Pass114,598 126,608 173,044 110,495 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 loans114,598 126,654 173,044 110,622 50,638 202,037 475,912 44,169 1,297,674 
Vehicle loans
Pass966,432 611,310 227,897 135,134 70,071 42,166 — — 2,053,010 
Substandard292 1,096 667 689 657 372 — — 3,773 
Total vehicle loans966,724 612,406 228,564 135,823 70,728 42,538 — — 2,056,783 
Consumer loans
Pass19,302 9,874 4,327 3,557 2,409 5,094 65,610 1,037 111,210 
Substandard24 37 48 432 100 662 
Total consumer loans19,326 9,883 4,364 3,566 2,412 5,142 66,042 1,137 111,872 
Total Personal Banking1,761,000 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
Pass322,050 346,355 369,868 244,188 209,500 696,628 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 loans322,050 368,132 390,267 293,154 252,021 782,899 25,570 13,935 2,448,028 
Commercial real estate - owner occupied
Pass62,905 51,673 17,989 49,600 43,570 123,278 2,477 1,460 352,952 
Special mention126 — 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 loans63,031 51,673 18,007 54,685 48,307 133,634 2,862 3,328 375,527 
Commercial loans
Pass481,797 90,320 52,833 46,966 17,250 53,107 354,402 4,032 1,100,707 
Special mention628 2,190 506 1,704 227 — 2,129 — 7,384 
Substandard1,833 603 908 2,097 1,605 735 12,941 3,156 23,878 
Total commercial loans484,258 93,113 54,247 50,767 19,082 53,842 369,472 7,188 1,131,969 
Total Business Banking869,339 512,918 462,521 398,606 319,410 970,375 397,904 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.