Loans and the Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

Loans and the Allowance for Credit Losses

NOTE 4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES

The recorded investment in loans is presented in the Consolidated Balance Sheets net of deferred loan fees and costs, and discounts on purchased loans. Net deferred loan costs were $11.3 million and $9.6 million at September 30, 2023 and December 31, 2022, respectively. The unaccreted discount on purchased loans from acquisitions was $14.5 million at September 30, 2023 and $18.0 million at December 31, 2022.


	September 30,		December 31,
(unaudited, in thousands)	2023		2022
Commercial real estate:
Land and construction	$	870,066	$	943,887
Improved property		5,517,117		5,117,457
Total commercial real estate		6,387,183		6,061,344
Commercial and industrial		1,587,611		1,579,395
Residential real estate		2,392,531		2,140,584
Home equity		715,186		695,065
Consumer		233,362		226,340
Total portfolio loans		11,315,873		10,702,728
Loans held for sale		17,677		8,249
Total loans	$	11,333,550	$	10,710,977

Allowance for Credit Losses

The allowance for credit losses under the current expected credit losses methodology ("CECL") is calculated utilizing the probability of default ("PD")/ loss given default ("LGD"), which is then discounted to net present value. PD is the probability the asset will default within a given time frame and LGD is the percentage of the asset not expected to be collected due to default. The primary macroeconomic drivers of the quantitative model include forecasts of national unemployment and interest rates, as well as modeling adjustments for changes in prepayment speeds, loan risk grades, portfolio mix, concentrations and loan growth. At September 30, 2023, the primary drivers of the allowance model calculation were loan growth, macroeconomic variables, prepayment speeds, qualitative factors for distressed industries, the current rate environment and changes in risk grading. The forecast was based upon a probability weighted approach which is designed to incorporate loss projections from a baseline, upside and downside economy. Due to the nonlinearity of credit losses to the economy, the asymmetry is best captured by evaluating multiple economic scenarios through a probability weighted approach. At quarter-end, national unemployment was projected to be 4.3%, and subsequently increase to an average of 4.7% over the remainder of the forecast period. Accrued interest receivable for loans was $57.7 million and $51.8 million at September 30, 2023 and December 31, 2022, respectively. Wesbanco made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses because the Company has a policy in place to reverse or write-off accrued interest when loans are placed on non-accrual. However, Wesbanco does have a $0.1 million reserve on the accrued interest related to loan modifications allowed under the Coronavirus Aid, Relief and Economic Security ("CARES") Act due to the timing and nature of these modifications. Accrued interest related to COVID-19 loan modifications as permitted under the CARES Act was $15.8 million and $17.0 million at September 30, 2023 and December 31, 2022, respectively.

The following tables summarize changes in the allowance for credit losses applicable to each category of the loan portfolio:


	Allowance for Credit Losses By Category
	For the Nine Months Ended September 30, 2023 and 2022
(unaudited, in thousands)	Commercial Real Estate - Land and Construction			Commercial Real Estate- Improved Property			Commercial & Industrial			Residential Real Estate			Home Equity			Consumer			Deposit Overdrafts (1)			Total
Balance at December 31, 2022
Allowance for credit losses - loans	$	6,737		$	52,659		$	31,540		$	18,208		$	4,234		$	3,127		$	1,285		$	117,790
Allowance for credit losses - loan commitments		6,025			—			—			2,215			128			—			—			8,368
Total beginning allowance for credit losses - loans and loan commitments		12,762			52,659			31,540			20,423			4,362			3,127			1,285			126,158
Provision for credit losses:
Provision for loan losses		(614	)		7,595			3,678			1,582			(2,901	)		1,315			957			11,612
Provision for loan commitments		1,247			—			1,087			(863	)		(110	)		—			—			1,361
Total provision for credit losses - loans and loan commitments (2)		633			7,595			4,765			719			(3,011	)		1,315			957			12,973
Charge-offs		(222	)		(1,450	)		(1,498	)		(278	)		(670	)		(2,604	)		(1,262	)		(7,984	)
Recoveries		207			821			996			929			331			1,604			309			5,197
Net (charge-offs) recoveries		(15	)		(629	)		(502	)		651			(339	)		(1,000	)		(953	)		(2,787	)
Balance at September 30, 2023
Allowance for credit losses - loans		6,108			59,625			34,716			20,441			994			3,442			1,289			126,615
Allowance for credit losses - loan commitments		7,272			—			1,087			1,352			18			—			—			9,729
Total ending allowance for credit losses - loans and loan commitments	$	13,380		$	59,625		$	35,803		$	21,793		$	1,012		$	3,442		$	1,289		$	136,344

Balance at December 31, 2021
Allowance for credit losses - loans	$	7,310		$	65,355		$	26,875		$	15,401		$	724		$	3,737		$	2,220		$	121,622
Allowance for credit losses - loan commitments		4,180			201			1,497			1,576			49			272			—			7,775
Total beginning allowance for credit losses - loans and loan commitments		11,490			65,556			28,372			16,977			773			4,009			2,220			129,397
Provision for credit losses:
Provision for loan losses		1,369			(12,082	)		2,160			1,133			37			1,216			260			(5,907	)
Provision for loan commitments		1,618			(201	)		(1,214	)		788			7			165			—			1,163
Total provision for credit losses - loans and loan commitments (2)		2,987			(12,283	)		946			1,921			44			1,381			260			(4,744	)
Charge-offs		(73	)		(642	)		(983	)		(282	)		(266	)		(2,511	)		(1,215	)		(5,972	)
Recoveries		25			899			871			483			293			1,992			278			4,841
Net (charge-offs) recoveries		(48	)		257			(112	)		201			27			(519	)		(937	)		(1,131	)
Balance at September 30, 2022
Allowance for credit losses - loans		8,631			53,530			28,923			16,735			788			4,434			1,543			114,584
Allowance for credit losses - loan commitments		5,798			—			283			2,364			56			437			—			8,938
Total ending allowance for credit losses - loans and loan commitments	$	14,429		$	53,530		$	29,206		$	19,099		$	844		$	4,871		$	1,543		$	123,522

(1) Deposit overdrafts of $4.5 million and $3.7 million are included in total portfolio loans for the periods ending September 30, 2023 and September 30, 2022, respectively.

(2) The total provision for credit losses - loans and loan commitments is reported in the consolidated statements of income in the provision for credit losses line item, which also includes the provision for credit losses on held-to-maturity securities. For more information on the provision relating to held-to-maturity securities, please see Note 3, "Securities."

The following tables present the allowance for credit losses and recorded investments in loans by category, as of each period-end:


	Allowance for Credit Losses and Recorded Investment in Loans
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial and Industrial		Residential Real Estate		Home Equity		Consumer		Deposit Overdrafts (1)		Total
September 30, 2023
Allowance for credit losses:
Loans individually-evaluated	$	—	$	4,963	$	—	$	—	$	—	$	—	$	—	$	4,963
Loans collectively-evaluated		6,108		54,662		34,716		20,441		994		3,442		1,289		121,652
Loan commitments (2)		7,272		—		1,087		1,352		18		—		—		9,729
Total allowance for credit losses - loans and commitments	$	13,380	$	59,625	$	35,803	$	21,793	$	1,012	$	3,442	$	1,289	$	136,344

Portfolio loans:
Individually-evaluated for credit losses	$	—	$	26,924	$	181	$	—	$	—	$	—	$	—	$	27,105
Collectively-evaluated for credit losses		870,066		5,490,193		1,587,430		2,392,531		715,186		233,362		—		11,288,768
Total portfolio loans	$	870,066	$	5,517,117	$	1,587,611	$	2,392,531	$	715,186	$	233,362	$	—	$	11,315,873

December 31, 2022
Allowance for credit losses:
Loans individually-evaluated	$	—	$	2,988	$	130	$	—	$	—	$	—	$	—	$	3,118
Loans collectively-evaluated		6,737		49,671		31,410		18,208		4,234		3,127		1,285		114,672
Loan commitments (2)		6,025		—		—		2,215		128		—		—		8,368
Total allowance for credit losses - loans and commitments	$	12,762	$	52,659	$	31,540	$	20,423	$	4,362	$	3,127	$	1,285	$	126,158

Portfolio loans:
Individually-evaluated for credit losses	$	24,629	$	25,369	$	401	$	—	$	—	$	—	$	—	$	50,399
Collectively-evaluated for credit losses		919,258		5,092,088		1,578,994		2,140,584		695,065		226,340		—		10,652,329
Total portfolio loans	$	943,887	$	5,117,457	$	1,579,395	$	2,140,584	$	695,065	$	226,340	$	—	$	10,702,728

(1) Deposit overdrafts of $4.5 million and $4.4 million are included in total portfolio loans for the periods ending September 30, 2023 and December 31, 2022, respectively.

(2) For additional detail relating to loan commitments, see Note 10, "Commitments and Contingent Liabilities."

Commercial Loan Risk Grades

Commercial loan risk grades are determined based on an evaluation of the relevant characteristics of each loan, assigned at inception and adjusted thereafter at any time to reflect changes in the risk profile throughout the life of each loan. The primary factors used to determine the risk grade are the sufficiency, reliability and sustainability of the primary source of repayment and overall financial strength of the borrower. The rating system more heavily weights the debt service coverage, leverage and loan to value factors to derive the risk grade. Other factors that are considered at a lesser weighting include management, industry or property type risks, payment history, collateral or guarantees.

Commercial real estate – land and construction consists of loans to finance investments in vacant land, land development, construction of residential housing, and construction of commercial buildings. Commercial real estate – improved property consists of loans for the purchase or refinance of all types of improved owner-occupied and investment properties. Factors that are considered in assigning the risk grade vary depending on the type of property financed. The risk grade assigned to construction and development loans is based on the overall viability of the project, the experience and financial capacity of the developer or builder to successfully complete the project, project specific and market absorption rates and comparable property values, and the amount of pre-sales for residential housing construction or pre-leases for commercial investment property. The risk grade assigned to commercial investment property loans is based primarily on the adequacy of the net operating income generated by the property to service the debt (“debt service coverage”), the loan to appraised value, the type, quality, industry and mix of tenants, and the terms of leases. The risk grade assigned to owner-occupied commercial real estate is based primarily on global debt service coverage and the leverage of the business, but may also consider the industry in which the business operates, the business’ specific competitive advantages or disadvantages, collateral margins and the quality and experience of management.

Commercial and industrial (“C&I”) loans consist of revolving lines of credit to finance accounts receivable, inventory and other general business purposes; term loans to finance fixed assets other than real estate, and letters of credit to support trade, insurance or governmental requirements for a variety of businesses. Most C&I borrowers are privately-held companies with annual sales up to $100 million. Primary factors that are considered in risk rating C&I loans include debt service coverage and leverage. Other factors including operating trends, collateral coverage along with management experience are also considered.

Pass loans are those that exhibit a history of positive financial results that are at least comparable to the average for their industry or type of real estate. The primary source of repayment is acceptable and these loans are expected to perform satisfactorily during most economic cycles. Pass loans typically have no significant external factors that are expected to adversely affect these borrowers more than others in the same industry or property type. Any minor unfavorable characteristics of these loans are outweighed or mitigated by other positive factors including but not limited to adequate secondary or tertiary sources of repayment, including guarantees.

Criticized loans, considered as compromised, have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the bank's credit position at some future date. Criticized loans are not adversely classified by the banking regulators and do not expose the bank to sufficient risk to warrant adverse classification.

Classified loans, considered as substandard and doubtful, are equivalent to the classifications used by banking regulators. Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. These loans may or may not be reported as non-accrual. Doubtful loans have all the weaknesses inherent in those classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. These loans are reported as non-accrual.

The following tables summarize commercial loans by their assigned risk grade:


	Commercial Loans by Internally Assigned Risk Grade
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of September 30, 2023
Pass	$	867,656	$	5,326,634	$	1,529,371	$	7,723,661
Criticized - compromised		2,400		125,863		51,873		180,136
Classified - substandard		10		64,620		6,367		70,997
Classified - doubtful		—		—		—		—
Total	$	870,066	$	5,517,117	$	1,587,611	$	7,974,794

As of December 31, 2022
Pass	$	911,804	$	4,940,135	$	1,538,300	$	7,390,239
Criticized - compromised		1,329		121,393		25,223		147,945
Classified - substandard		30,754		55,929		15,872		102,555
Classified - doubtful		—		—		—		—
Total	$	943,887	$	5,117,457	$	1,579,395	$	7,640,739

Residential real estate, home equity and consumer loans are not assigned internal risk grades other than as required by regulatory guidelines that are based primarily on the age of past due loans. Wesbanco primarily evaluates the credit quality of residential real estate, home equity and consumer loans based on repayment performance and historical loss rates. The aggregate amount of residential real estate, home equity and consumer loans classified as substandard in accordance with regulatory guidelines was $20.6 million at September 30, 2023 and $24.8 million at December 31, 2022, of which $4.2 million and $5.9 million were accruing, for each period, respectively. These loans are not included in the tables above. In addition, $13.8 million and $25.0 million of unfunded commercial loan commitments are also not included in the tables above at September 30, 2023 and December 31, 2022, respectively.

Past Due and Nonperforming Loans

The following tables summarize the age analysis of all categories of loans:


	Age Analysis of Loans
(unaudited, in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		90 Days or More Past Due and Accruing (1)
As of September 30, 2023
Commercial real estate:
Land and construction	$	870,066	$	—	$	—	$	—	$	—	$	870,066	$	—
Improved property		5,499,069		2,161		1,279		14,608		18,048		5,517,117		4,131
Total commercial real estate		6,369,135		2,161		1,279		14,608		18,048		6,387,183		4,131
Commercial and industrial		1,584,822		566		438		1,785		2,789		1,587,611		292
Residential real estate		2,383,834		1,134		2,955		4,608		8,697		2,392,531		1,991
Home equity		705,435		3,599		1,209		4,943		9,751		715,186		1,475
Consumer		228,391		3,152		1,035		784		4,971		233,362		717
Total portfolio loans		11,271,617		10,612		6,916		26,728		44,256		11,315,873		8,606
Loans held for sale		17,677		—		—		—		—		17,677		—
Total loans	$	11,289,294	$	10,612	$	6,916	$	26,728	$	44,256	$	11,333,550	$	8,606

Nonperforming loans included above are as follows:
Non-accrual loans	$	10,258	$	626	$	872	$	18,122	$	19,620	$	29,878

As of December 31, 2022
Commercial real estate:
Land and construction	$	942,236	$	—	$	910	$	741	$	1,651	$	943,887	$	629
Improved property		5,099,342		2,147		331		15,637		18,115		5,117,457		84
Total commercial real estate		6,041,578		2,147		1,241		16,378		19,766		6,061,344		713
Commercial and industrial		1,574,311		1,427		519		3,138		5,084		1,579,395		1,586
Residential real estate		2,129,095		853		3,536		7,100		11,489		2,140,584		1,551
Home equity		686,762		3,885		621		3,797		8,303		695,065		1,063
Consumer		222,153		2,910		704		573		4,187		226,340		530
Total portfolio loans		10,653,899		11,222		6,621		30,986		48,829		10,702,728		5,443
Loans held for sale		8,249		—		—		—		—		8,249		—
Total loans	$	10,662,148	$	11,222	$	6,621	$	30,986	$	48,829	$	10,710,977	$	5,443

Nonperforming loans included above are as follows:
Non-accrual loans	$	10,337	$	1,495	$	870	$	25,483	$	27,848	$	38,185
TDRs accruing interest		3,131		7		32		60		99		3,230
Total nonperforming loans	$	13,468	$	1,502	$	902	$	25,543	$	27,947	$	41,415

(1) For the table presented as of December 31, 2022, loans 90 days or more past due and accruing interest exclude TDRs 90 days or more past due and accruing interest.

The following tables summarize nonperforming loans:


	Nonperforming Loans
	September 30, 2023						December 31, 2022
	Unpaid						Unpaid
	Principal		Recorded		Related		Principal		Recorded		Related
(unaudited, in thousands)	Balance (1)		Investment		Allowance		Balance (1)		Investment		Allowance
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	—	$	—	$	—	$	112	$	112	$	—
Improved property		13,092		11,289		—		18,367		16,601		—
Commercial and industrial		2,743		2,138		—		4,102		3,112		—
Residential real estate		15,692		11,013		—		21,084		16,057		—
Home equity		7,115		5,322		—		6,970		5,374		—
Consumer		190		116		—		316		159		—
Total nonperforming loans without a specific allowance		38,832		29,878		—		50,951		41,415		—
Total nonperforming loans with a specific allowance		—		—		—		—		—		—
Total nonperforming loans	$	38,832	$	29,878	$	—	$	50,951	$	41,415	$	—

(1) The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off and fair market value adjustments on acquired nonperforming loans.


	Nonperforming Loans
	For the Three Months Ended									For the Nine Months Ended
	September 30, 2023				September 30, 2022					September 30, 2023				September 30, 2022
	Average		Interest		Average		Interest			Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income			Recorded		Income		Recorded		Income
(unaudited, in thousands)	Investment		Recognized		Investment		Recognized			Investment		Recognized		Investment		Recognized
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	—	$	—	$	27	$	(2	)	$	28	$	—	$	70	$	—
Improved property		11,243		—		7,086		57			14,322		—		7,505		71
Commercial and industrial		2,244		—		4,010		5			2,702		—		4,514		8
Residential real estate		11,832		—		17,467		24			13,139		—		18,327		96
Home equity		5,292		—		5,046		14			5,205		—		5,279		20
Consumer		107		—		396		1			121		—		468		3
Total nonperforming loans without a specific allowance		30,717		—		34,030		99			35,517		—		36,163		198
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—			—		—		—		—
Improved property		—		—		—		—			—		—		—		—
Total nonperforming loans with a specific allowance		—		—		—		—			—		—		—		—
Total nonperforming loans	$	30,717	$	—	$	34,030	$	99		$	35,517	$	—	$	36,163	$	198

The following table presents the recorded investment in non-accrual loans:


	Non-accrual Loans (1)
	September 30,		December 31,
(unaudited, in thousands)	2023		2022
Commercial real estate:
Land and construction	$	—	$	112
Improved property		11,289		16,254
Total commercial real estate		11,289		16,366
Commercial and industrial		2,138		2,946
Residential real estate		11,013		13,695
Home equity		5,322		5,044
Consumer		116		134
Total	$	29,878	$	38,185

(1) At September 30, 2023, there were three borrowers with a loan balance greater than $1.0 million, which totaled $8.3 million, as compared to three borrowers with a loan balance greater than $1.0 million totaling $11.8 million at December 31, 2022. Total non-accrual loans include loans that are also restructured for borrowers experiencing financial difficulty or were previously designated as non-accrual TDRs prior to the adoption of ASU 2022-02. Such loans are also set forth in the following tables.

Modifications for Borrowers Experiencing Financial Difficulty (following the adoption of ASU 2022-02)

Tables in the following section exclude the financial effects of modifications for loans that were paid off or are otherwise no longer in the loan portfolio as of period end. The following table displays the details of portfolio loans that were modified during the three and nine months ended September 30, 2023 presented by loan category:


	For the Three Months Ended September 30, 2023
(unaudited, in thousands)	Term Extension		Payment Delay		Total		% of Total by Loan Category
Commercial real estate - land and construction	$	—	$	—	$	—		—
Commercial real estate - improved property		159		—		159		0.0
Commercial and industrial		136		43		179		0.0
Residential real estate		—		126		126		0.0
Home equity		—		258		258		0.0
Consumer		—		244		244		0.1
Total	$	295	$	671	$	966		0.0

	For the Nine Months Ended September 30, 2023
(unaudited, in thousands)	Term Extension		Payment Delay		Total		% of Total by Loan Category
Commercial real estate - land and construction	$	173	$	—	$	173		0.0
Commercial real estate - improved property		7,014		276		7,290		0.1
Commercial and industrial		9,276		43		9,319		0.6
Residential real estate		—		226		226		0.0
Home equity		8		936		944		0.1
Consumer		—		505		505		0.2
Total	$	16,471	$	1,986	$	18,457		0.2

Unfunded loan commitments on modifications for borrowers experiencing financial difficulty ("MBEFDs") totaled $3.2 million at September 30, 2023. These commitments are not included in the table above.

The following table summarizes the financial impacts of loan modifications and payment deferrals made to portfolio loans during the three and nine months ended September 30, 2023, presented by loan category:


	For the Three Months Ended September 30, 2023
(unaudited, in thousands)	Weighted-Average Term Extension (in months)
Commercial real estate - land and construction		—
Commercial real estate - improved property		3
Commercial and industrial		3
Residential real estate		—
Home equity		—
Consumer		—


	For the Nine Months Ended September 30, 2023
(unaudited, in thousands)	Weighted-Average Term Extension (in months)
Commercial real estate - land and construction		12
Commercial real estate - improved property		22
Commercial and industrial		9
Residential real estate		—
Home equity		120
Consumer		—

There have been no MBEFDs which defaulted (defined as 90 days past due) after the loan was modified during the three and nine months ended September 30, 2023.

The following table presents an aging analysis of portfolio loans that were modified on or after January 1, 2023, the date that Wesbanco adopted ASU 2022-02, by loan category, as of September 30, 2023:


	September 30, 2023
(unaudited, in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total
Commercial real estate - land and construction	$	—	$	—	$	—	$	—	$	173	$	173
Commercial real estate - improved property		—		33		276		309		6,981		7,290
Commercial and industrial		—		43		—		43		9,276		9,319
Residential real estate		67		—		—		67		159		226
Home equity		46		24		101		171		773		944
Consumer		6		68		62		136		369		505
Total modified loans (1)	$	119	$	168	$	439	$	726	$	17,731	$	18,457

(1) Represents balance at period end.

Troubled Debt Restructuring Disclosures (prior to the adoption of ASU 2022-02)

The following table presents details related to loans identified as TDRs during the three and nine months ended September 30, 2022:


	New TDRs (1)
	For the Three Months Ended
	September 30, 2022
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
(unaudited, dollars in thousands)	Modifications		Investment		Investment
Commercial real estate:
Land and construction		—	$	—	$	—
Improved property		1		1,097		1,075
Total commercial real estate		1		1,097		1,075
Commercial and industrial		—		—		—
Residential real estate		—		—		—
Home equity		—		—		—
Consumer		—		—		—
Total		1	$	1,097	$	1,075

	New TDRs (1)
	For the Nine Months Ended
	September 30, 2022
			Pre-		Post-
			Modification		Modification
			Outstanding		Outstanding
	Number of		Recorded		Recorded
(unaudited, dollars in thousands)	Modifications		Investment		Investment
Commercial real estate:
Land and construction		1	$	84	$	—
Improved property		2		1,286		1,075
Total commercial real estate		3		1,370		1,075
Commercial and industrial		—		—		—
Residential real estate		—		—		—
Home equity		—		—		—
Consumer		—		—		—
Total		3	$	1,370	$	1,075

(1) Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.

There were no TDRs which defaulted (defined as past due 90 days) during the three months ended September 30, 2022 that were restructured within the last twelve months prior to September 30, 2022.

The following tables summarize amortized cost basis loan balances by year of origination and credit quality indicator:


	Loans As of September 30, 2023
	Amortized Cost Basis by Origination Year
(unaudited, in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate: land and construction
Risk rating:
Pass	$	163,921	$	291,411	$	140,411	$	53,071	$	49,688	$	36,474	$	89,731	$	42,949	$	867,656
Criticized - compromised		—		—		—		—		—		20		—		2,380		2,400
Classified - substandard		—		—		—		—		—		10		—		—		10
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	163,921	$	291,411	$	140,411	$	53,071	$	49,688	$	36,504	$	89,731	$	45,329	$	870,066
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	222	$	222

Commercial real estate: improved property
Risk rating:
Pass	$	401,664	$	1,090,574	$	623,153	$	610,828	$	512,609	$	1,754,251	$	93,421	$	240,134	$	5,326,634
Criticized - compromised		—		10,300		3,938		2,855		3,964		81,658		1,986		21,162		125,863
Classified - substandard		—		514		469		2,764		35,744		25,076		19		34		64,620
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	401,664	$	1,101,388	$	627,560	$	616,447	$	552,317	$	1,860,985	$	95,426	$	261,330	$	5,517,117
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,450	$	—	$	—	$	1,450

Commercial and industrial
Risk rating:
Pass	$	168,627	$	255,050	$	147,484	$	92,590	$	47,358	$	279,259	$	504,659	$	34,344	$	1,529,371
Criticized - compromised		959		512		4,020		359		6,786		17,317		14,509		7,411		51,873
Classified - substandard		—		135		59		607		841		2,075		1,148		1,502		6,367
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	169,586	$	255,697	$	151,563	$	93,556	$	54,985	$	298,651	$	520,316	$	43,257	$	1,587,611
Current-period gross charge-offs	$	98	$	143	$	563	$	43	$	20	$	387	$	—	$	244	$	1,498

Residential real estate
Loan delinquency:
Current	$	212,958	$	481,377	$	464,248	$	188,572	$	88,126	$	475,232	$	—	$	473,321	$	2,383,834
30-59 days past due		—		—		—		—		—		1,134		—		—		1,134
60-89 days past due		196		127		34		—		52		2,004		—		542		2,955
90 days or more past due		—		—		187		—		215		4,174		—		32		4,608
Total	$	213,154	$	481,504	$	464,469	$	188,572	$	88,393	$	482,544	$	—	$	473,895	$	2,392,531
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	5	$	273	$	—	$	—	$	278

Home equity
Loan delinquency:
Current	$	11,528	$	947	$	1,581	$	1,709	$	1,912	$	23,294	$	663,347	$	1,117	$	705,435
30-59 days past due		—		230		67		169		50		953		2,121		9		3,599
60-89 days past due		—		175		161		326		109		438		—		—		1,209
90 days or more past due		—		184		55		539		283		3,463		—		419		4,943
Total	$	11,528	$	1,536	$	1,864	$	2,743	$	2,354	$	28,148	$	665,468	$	1,545	$	715,186
Current-period gross charge-offs	$	—	$	139	$	54	$	1	$	29	$	441	$	6	$	—	$	670

Consumer
Loan delinquency:
Current	$	72,886	$	63,086	$	24,744	$	15,868	$	13,851	$	13,989	$	23,967	$	—	$	228,391
30-59 days past due		570		1,384		657		231		62		147		101		—		3,152
60-89 days past due		42		556		329		49		13		46		—		—		1,035
90 days or more past due		83		451		106		74		16		54		—		—		784
Total	$	73,581	$	65,477	$	25,836	$	16,222	$	13,942	$	14,236	$	24,068	$	—	$	233,362
Current-period gross charge-offs	$	73	$	1,305	$	681	$	240	$	79	$	223	$	3	$	—	$	2,604


	Loans As of December 31, 2022
	Amortized Cost Basis by Origination Year
(unaudited, in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate: land and construction
Risk rating:
Pass	$	159,769	$	136,131	$	138,171	$	155,141	$	61,823	$	51,381	$	117,237	$	92,151	$	911,804
Criticized - compromised		559		265		—		—		24		31		—		450		1,329
Classified - substandard		—		—		6,001		—		—		124		—		24,629		30,754
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	160,328	$	136,396	$	144,172	$	155,141	$	61,847	$	51,536	$	117,237	$	117,230	$	943,887
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	73	$	—	$	—	$	—	$	73

Commercial real estate: improved property
Risk rating:
Pass	$	1,082,984	$	620,205	$	613,663	$	528,004	$	371,880	$	1,551,478	$	72,327	$	99,594	$	4,940,135
Criticized - compromised		10,554		354		2,877		7,659		13,551		85,332		1,066		—		121,393
Classified - substandard		—		658		275		15,489		9,761		29,712		34		—		55,929
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	1,093,538	$	621,217	$	616,815	$	551,152	$	395,192	$	1,666,522	$	73,427	$	99,594	$	5,117,457
Current-period gross charge-offs	$	—	$	—	$	128	$	100	$	3	$	564	$	—	$	—	$	795

Commercial and industrial
Risk rating:
Pass	$	280,510	$	184,805	$	116,890	$	72,142	$	103,660	$	232,062	$	526,025	$	22,206	$	1,538,300
Criticized - compromised		917		1,192		270		8,278		264		2,524		7,654		4,124		25,223
Classified - substandard		93		3,209		976		2,157		97		2,854		1,066		5,420		15,872
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	281,520	$	189,206	$	118,136	$	82,577	$	104,021	$	237,440	$	534,745	$	31,750	$	1,579,395
Current-period gross charge-offs	$	—	$	16	$	234	$	275	$	70	$	182	$	—	$	291	$	1,068

Residential real estate
Loan delinquency:
Current	$	541,659	$	556,928	$	211,496	$	97,160	$	52,135	$	478,977	$	—	$	190,740	$	2,129,095
30-59 days past due		—		—		—		—		—		853		—		—		853
60-89 days past due		—		442		349		65		—		2,680		—		—		3,536
90 days or more past due		—		—		—		285		119		6,654		—		42		7,100
Total	$	541,659	$	557,370	$	211,845	$	97,510	$	52,254	$	489,164	$	—	$	190,782	$	2,140,584
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	6	$	494	$	—	$	—	$	500

Home equity
Loan delinquency:
Current	$	10,718	$	1,459	$	1,133	$	1,774	$	1,088	$	25,203	$	644,430	$	957	$	686,762
30-59 days past due		80		61		180		67		34		1,165		2,260		38		3,885
60-89 days past due		—		15		—		50		88		458		—		10		621
90 days or more past due		—		—		572		93		257		2,425		16		434		3,797
Total	$	10,798	$	1,535	$	1,885	$	1,984	$	1,467	$	29,251	$	646,706	$	1,439	$	695,065
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	310	$	—	$	48	$	358

Consumer
Loan delinquency:
Current	$	84,817	$	36,123	$	25,071	$	25,535	$	8,488	$	16,337	$	25,755	$	27	$	222,153
30-59 days past due		980		937		488		159		98		217		31		—		2,910
60-89 days past due		184		293		94		47		29		57		—		—		704
90 days or more past due		183		208		69		32		2		79		—		—		573
Total	$	86,164	$	37,561	$	25,722	$	25,773	$	8,617	$	16,690	$	25,786	$	27	$	226,340
Current-period gross charge-offs	$	769	$	1,237	$	624	$	333	$	186	$	326	$	—	$	1	$	3,476

The following table summarizes other real estate owned and repossessed assets included in other assets:


	September 30,		December 31,
(unaudited, in thousands)	2023		2022
Other real estate owned	$	1,231	$	1,397
Repossessed assets		102		89
Total other real estate owned and repossessed assets	$	1,333	$	1,486

Residential real estate included in other real estate owned was $0.1 million and $0 million at September 30, 2023 and December 31, 2022, respectively. At September 30, 2023 and December 31, 2022, formal foreclosure proceedings were in process on residential real estate loans totaling $4.4 million and $4.9 million, respectively.