Loans and the Allowance for Credit Losses

12 Months Ended

Dec. 31, 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 $11.5 million at December 31, 2023 and $9.6 million at December 31, 2022. The un-accreted discount on purchased loans from acquisitions was $13.5 million at December 31, 2023 and $18.0 million at December 31, 2022.


	December 31,		December 31,
(in thousands)	2023		2022
Commercial real estate:
Land and construction	$	1,055,865	$	943,887
Improved property		5,509,583		5,117,457
Total commercial real estate		6,565,448		6,061,344
Commercial and industrial		1,670,659		1,579,395
Residential real estate		2,438,574		2,140,584
Home equity		734,219		695,065
Consumer		229,561		226,340
Total portfolio loans		11,638,461		10,702,728
Loans held for sale		16,354		8,249
Total loans	$	11,654,815	$	10,710,977

Allowance for Credit Losses

The allowance for credit losses under 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 December 31, 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 year-end, Wesbanco applied a one-year forecast and immediately reverted to historical losses. The national unemployment was projected to be 4.3% as of December 31, 2023 and subsequently increase to an average of 4.6% over the remainder of the one-year forecast period. Accrued interest receivable for loans was $62.2 million and $51.8 million at December 31, 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 $15.6 million and $17.0 million at December 31, 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:


	For the Year Ended December 31, 2023
(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 beginning of year:
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		321			7,722			6,168			2,290			(2,901	)		2,507			1,420			17,527
Provision for loan commitments		869			—			429			(939	)		(123	)		—			—			236
Total provision for credit losses - loans and loan commitments (2)		1,190			7,722			6,597			1,351			(3,024	)		2,507			1,420			17,763
Charge-offs		(222	)		(1,877	)		(2,283	)		(392	)		(925	)		(3,725	)		(1,753	)		(11,177	)
Recoveries		287			847			1,219			1,112			609			2,047			414			6,535
Net recoveries (charge-offs)		65			(1,030	)		(1,064	)		720			(316	)		(1,678	)		(1,339	)		(4,642	)
Balance at end of period:
Allowance for credit losses - loans		7,123			59,351			36,644			21,218			1,017			3,956			1,366			130,675
Allowance for credit losses - loan commitments		6,894			—			429			1,276			5			—			—			8,604
Total ending allowance for credit losses - loans and loan commitments	$	14,017		$	59,351		$	37,073		$	22,494		$	1,022		$	3,956		$	1,366		$	139,279

(1) Deposit overdrafts of $4.7 million and $4.4 million are included in total portfolio loans for the periods ending December 31, 2023 and December 31, 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."


	For the Year Ended December 31, 2022
(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 beginning of year:
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		(625	)		(12,939	)		4,736			2,717			3,526			44			333			(2,208	)
Provision for loan commitments		1,845			(201	)		(1,497	)		639			79			(272	)		—			593
Total provision for credit losses - loans and loan commitments (2)		1,220			(13,140	)		3,239			3,356			3,605			(228	)		333			(1,615	)
Charge-offs		(73	)		(795	)		(1,068	)		(500	)		(358	)		(3,476	)		(1,622	)		(7,892	)
Recoveries		125			1,038			997			590			342			2,822			354			6,268
Net recoveries (charge-offs)		52			243			(71	)		90			(16	)		(654	)		(1,268	)		(1,624	)
Balance at end of period:
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 ending allowance for credit losses - loans and loan commitments	$	12,762		$	52,659		$	31,540		$	20,423		$	4,362		$	3,127		$	1,285		$	126,158

(1) Deposit overdrafts of $4.4 million and $19.0 million are included in total portfolio loans for the periods ending December 31, 2022 and December 31, 2021, respectively.


	For the Year Ended December 31, 2021
(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 beginning of year:
Allowance for credit losses - loans	$	10,841		$	110,652		$	37,850		$	17,851		$	1,487		$	6,507		$	639		$	185,827
Allowance for credit losses - loan commitments		6,508			712			1,275			955			45			19			—			9,514
Total beginning allowance for credit losses - loans and loan commitments		17,349			111,364			39,125			18,806			1,532			6,526			639			195,341
Provision for credit losses:
Provision for loan losses		(3,698	)		(44,831	)		(10,749	)		(2,708	)		(899	)		(2,286	)		2,694			(62,477	)
Provision for loan commitments		(2,328	)		(511	)		222			621			4			253			—			(1,739	)
Total provision for credit losses - loans and loan commitments (2)		(6,026	)		(45,342	)		(10,527	)		(2,087	)		(895	)		(2,033	)		2,694			(64,216	)
Charge-offs		(22	)		(1,825	)		(2,521	)		(873	)		(414	)		(2,995	)		(1,486	)		(10,136	)
Recoveries		189			1,359			2,295			1,131			550			2,511			373			8,408
Net recoveries (charge-offs)		167			(466	)		(226	)		258			136			(484	)		(1,113	)		(1,728	)
Balance at end of period:
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 ending allowance for credit losses - loans and loan commitments	$	11,490		$	65,556		$	28,372		$	16,977		$	773		$	4,009		$	2,220		$	129,397

(1) Deposit overdrafts of $19.0 million and $14.4 million are included in total portfolio loans for the periods ending December 31, 2021 and December 31, 2020, respectively.

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
(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
December 31, 2023
Allowance for credit losses:
Loans individually-evaluated	$	—	$	5,745	$	—	$	—	$	—	$	—	$	—	$	5,745
Loans collectively-evaluated		7,123		53,606		36,644		21,218		1,017		3,956		1,366		124,930
Loan commitments (2)		6,894		—		429		1,276		5		—		—		8,604
Total allowance for credit losses - loans and commitments	$	14,017	$	59,351	$	37,073	$	22,494	$	1,022	$	3,956	$	1,366	$	139,279

Portfolio loans:
Individually-evaluated for credit losses	$	—	$	36,929	$	116	$	—	$	—	$	—	$	—	$	37,045
Collectively-evaluated for credit losses		1,055,865		5,472,654		1,670,543		2,438,574		734,219		229,561		—		11,601,416
Total portfolio loans	$	1,055,865	$	5,509,583	$	1,670,659	$	2,438,574	$	734,219	$	229,561	$	—	$	11,638,461

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 $4.7 million and $4.4 million are included in total portfolio loans for the periods ending December 31, 2023 and December 31, 2022, respectively.

(2) For additional detail relating to loan commitments, see Note 18, "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.

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.

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
(in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of December 31, 2023
Pass	$	1,053,359	$	5,337,394	$	1,586,683	$	7,977,436
Criticized—compromised		2,497		107,473		73,204		183,174
Classified—substandard		9		64,716		10,772		75,497
Classified—doubtful		—		—		—		—
Total	$	1,055,865	$	5,509,583	$	1,670,659	$	8,236,107

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 were $20.0 million at December 31, 2023 and $24.8 million at December 31, 2022, of which $4.6 million and $5.9 million were accruing, for each period, respectively. These loans are not included in the tables above. In addition, $21.2 million and $25.0 million of unfunded criticized and classified commercial loan commitments are not included in the tables above for December 31, 2023 and 2022, respectively.

Past Due and Nonperforming Loans

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


	Age Analysis of Loans
(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 December 31, 2023
Commercial real estate:
Land and construction	$	1,055,865	$	—	$	—	$	—	$	—	$	1,055,865	$	—
Improved property		5,490,946		4,416		3,627		10,594		18,637		5,509,583		1,899
Total commercial real estate		6,546,811		4,416		3,627		10,594		18,637		6,565,448		1,899
Commercial and industrial		1,663,985		640		1,255		4,779		6,674		1,670,659		3,184
Residential real estate		2,429,200		1,572		2,471		5,331		9,374		2,438,574		2,602
Home equity		724,293		4,691		1,198		4,037		9,926		734,219		1,407
Consumer		223,989		3,833		1,178		561		5,572		229,561		546
Total portfolio loans		11,588,278		15,152		9,729		25,302		50,183		11,638,461		9,638
Loans held for sale		16,354		—		—		—		—		16,354		—
Total loans	$	11,604,632	$	15,152	$	9,729	$	25,302	$	50,183	$	11,654,815	$	9,638

Nonperforming loans included above are as follows:
Non-accrual loans	$	9,138	$	1,300	$	706	$	15,664		17,670	$	26,808

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 (1)		3,131		7		32		60		99		3,230
Total non-performing 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
	December 31, 2023						December 31, 2022
(in thousands)	Unpaid Principal Balance (1)		Recorded Investment		Related Allowance		Unpaid Principal Balance (1)		Recorded Investment		Related Allowance
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	—	$	—	$	—	$	112	$	112	$	—
Improved property		11,248		9,557		—		18,367		16,601		—
Commercial and industrial		2,492		1,841		—		4,102		3,112		—
Residential real estate		15,128		10,582		—		21,084		16,057		—
Home equity		6,521		4,777		—		6,970		5,374		—
Consumer		104		51		—		316		159		—
Total nonperforming loans without a specific allowance		35,493		26,808		—		50,951		41,415		—
Total nonperforming loans with a specific allowance		—		—		—		—		—		—
Total nonperforming loans	$	35,493	$	26,808	$	—	$	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 Year Ended December 31, 2023				For the Year Ended December 31, 2022				For the Year Ended December 31, 2021
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	22	$	—	$	79	$	2	$	176	$	—
Improved property		13,369		—		9,324		99		7,207		32
Commercial and industrial		2,530		—		4,233		12		4,077		11
Residential real estate		12,628		—		17,873		247		20,971		155
Home equity		5,119		—		5,298		37		5,561		13
Consumer		107		—		406		5		420		3
Total nonperforming loans without a specific allowance		33,775		—		37,213		402		38,413		214
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—
Improved property		—		—		—		—		1,669		—
Commercial and industrial		—		—		—		—		—		—
Residential real estate		—		—		—		—		—		—
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total nonperforming loans with a specific allowance		—		—		—		—		1,669		—
Total nonperforming loans	$	33,775	$	—	$	37,213	$	402	$	40,082	$	214

The following table summarizes the recognition of interest income on nonperforming loans:


	For the years ended December 31,
(in thousands)	2023		2022		2021
Average nonperforming loans	$	33,775	$	37,213	$	40,082
Amount of contractual interest income on nonperforming loans		1,191		2,722		1,213
Amount of interest income recognized on nonperforming loans		—		402		214

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


	Non-accrual Loans (1)
(in thousands)	December 31, 2023		December 31, 2022
Commercial real estate:
Land and construction	$	—	$	112
Improved property		9,557		16,254
Total commercial real estate		9,557		16,366
Commercial and industrial		1,841		2,946
Residential real estate		10,582		13,695
Home equity		4,777		5,044
Consumer		51		134
Total	$	26,808	$	38,185

(1) At December 31, 2023, there were two borrowers with loan balances greater than $1.0 million totaling $7.2 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 this 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 year ended December 31, 2023 presented by loan category:


	For the Year Ended December 31, 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		6,281		153		6,434		0.1
Commercial and industrial		10,555		16		10,571		0.6
Residential real estate		—		989		989		0.0
Home equity		8		1,186		1,194		0.2
Consumer		—		446		446		0.2
Total	$	16,844	$	2,790	$	19,634		0.2

Unfunded loan commitments on modifications for borrowers experiencing financial difficulty ("MBEFDs") totaled $1.8 million at December 31, 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 year ended December 31, 2023, presented by loan category:


	For the Year Ended December 31, 2023
(unaudited, in thousands)	Weighted-Average Term Extension (in months)
Commercial real estate - land and construction		—
Commercial real estate - improved property		25
Commercial and industrial		9
Residential real estate		—
Home equity		120
Consumer		—

The following table summarizes loans with MBEFDs which defaulted (defined as 90 days past due) during the 12 months after the loan was modified. Modified loans, including those that have defaulted, are already included in the allowance for credit losses through the various methodologies used to estimate the allowance. As such, no modification to the allowance is recorded specifically due to a modified loan subsequently defaulting.


	For the Year Ended December 31, 2023
(unaudited, in thousands)	Term Extension
Commercial real estate - land and construction	$	—
Commercial real estate - improved property		33
Commercial and industrial		2,975
Residential real estate		—
Home equity		—
Consumer		—
Total loans that subsequently defaulted		3,008

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 December 31, 2023:


	December 31, 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	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate - improved property		182		—		113		295		6,139		6,434
Commercial and industrial		—		16		2,975		2,991		7,580		10,571
Residential real estate		—		72		32		104		885		989
Home equity		—		46		227		273		921		1,194
Consumer		8		53		28		89		357		446
Total modified loans (1)		190		187		3,375		3,752		15,882		19,634

(1) Represents balance at period end.

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

The following tables present details related to loans identified as TDRs during the year ended December 31, 2022:


	TDRs
	December 31, 2022
(in thousands)	Accruing		Non-Accrual		Total
Commercial real estate:
Land and construction	$	—	$	—	$	—
Improved property		347		29		376
Total commercial real estate		347		29		376
Commercial and industrial		166		—		166
Residential real estate		2,362		1,464		3,826
Home equity		330		218		548
Consumer		25		—		25
Total	$	3,230	$	1,711	$	4,941


	New TDRs (1) For the Year Ended December 31, 2022
(dollars in thousands)	Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:
Land and construction		1	$	84	$	—
Improved property		2		1,286		—
Total commercial real estate		3		1,370		—
Commercial and industrial		—		—		—
Residential real estate		—		—		—
Home equity		—		—		—
Consumer		—		—		—
Total		3	$	1,370	$	—

(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 year ended December 31, 2022 that were restructured within the last twelve months prior to December 31, 2022.

The following table summarizes amortized cost basis loan balances by year of origination and credit quality indicator.


	Loans As of December 31, 2023
	Amortized Cost Basis by Origination Year
(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	$	290,954	$	349,549	$	145,043	$	54,172	$	48,655	$	35,917	$	82,288	$	46,781	$	1,053,359
Criticized - compromised		—		—		—		—		—		16		299		2,182		2,497
Classified - substandard		—		—		—		—		—		9		—		—		9
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	290,954	$	349,549	$	145,043	$	54,172	$	48,655	$	35,942	$	82,587	$	48,963	$	1,055,865
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	222	$	222

Commercial real estate: improved property
Risk rating:
Pass	$	494,142	$	1,076,535	$	603,354	$	581,540	$	514,523	$	1,706,804	$	103,467	$	257,029	$	5,337,394
Criticized - compromised		—		16,270		8,630		4,387		5,185		44,861		2,373		25,767		107,473
Classified - substandard		1,921		517		417		2,416		23,472		35,939		—		34		64,716
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	496,063	$	1,093,322	$	612,401	$	588,343	$	543,180	$	1,787,604	$	105,840	$	282,830	$	5,509,583
Current-period gross charge-offs	$	—	$	—	$	372	$	—	$	—	$	1,505	$	—	$	—	$	1,877

Commercial and industrial
Risk rating:
Pass	$	238,427	$	234,520	$	136,998	$	78,836	$	39,259	$	252,826	$	541,400	$	64,417	$	1,586,683
Criticized - compromised		1,094		834		3,169		1,490		7,334		31,526		20,626		7,131		73,204
Classified - substandard		33		149		315		265		825		1,916		5,797		1,472		10,772
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	239,554	$	235,503	$	140,482	$	80,591	$	47,418	$	286,268	$	567,823	$	73,020	$	1,670,659
Current-period gross charge-offs	$	98	$	205	$	603	$	353	$	20	$	463	$	—	$	541	$	2,283

Residential real estate
Loan delinquency:
Current	$	277,790	$	429,835	$	445,322	$	185,139	$	86,149	$	456,818	$	—	$	548,147	$	2,429,200
30-59 days past due		—		—		—		—		—		1,572		—		—		1,572
60-89 days past due		—		—		—		341		—		2,130		—		—		2,471
90 days or more past due		—		799		34		—		263		4,207		—		28		5,331
Total	$	277,790	$	430,634	$	445,356	$	185,480	$	86,412	$	464,727	$	—	$	548,175	$	2,438,574
Current-period gross charge-offs	$	—	$	—	$	—	$	—	$	5	$	387	$	—	$	—	$	392

Home equity
Loan delinquency:
Current	$	12,675	$	1,235	$	1,467	$	1,571	$	1,614	$	22,484	$	681,848	$	1,399	$	724,293
30-59 days past due		34		193		85		73		44		947		3,315		—		4,691
60-89 days past due		119		318		16		68		76		524		—		77		1,198
90 days or more past due		—		213		—		737		230		2,527		—		330		4,037
Total	$	12,828	$	1,959	$	1,568	$	2,449	$	1,964	$	26,482	$	685,163	$	1,806	$	734,219
Current-period gross charge-offs	$	—	$	139	$	57	$	29	$	79	$	615	$	6	$	—	$	925

Consumer
Loan delinquency:
Current	$	84,526	$	57,661	$	21,592	$	13,189	$	10,958	$	12,143	$	23,916	$	4	$	223,989
30-59 days past due		699		1,526		952		343		162		119		32		—		3,833
60-89 days past due		191		616		195		112		5		59		—		—		1,178
90 days or more past due		64		203		114		63		9		108		—		—		561
Total	$	85,480	$	60,006	$	22,853	$	13,707	$	11,134	$	12,429	$	23,948	$	4	$	229,561
Current-period gross charge-offs	$	251	$	1,921	$	901	$	301	$	100	$	247	$	4	$	—	$	3,725


	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:


	December 31,
(in thousands)	2023		2022
Other real estate owned	$	1,207	$	1,397
Repossessed assets		290		89
Total other real estate owned and repossessed assets	$	1,497	$	1,486

Residential real estate included in other real estate owned was $0 at both December 31, 2023 and December 31, 2022. At December 31, 2023 and 2022, formal foreclosure proceedings were in process on residential real estate loans totaling $4.0 million and $4.9 million, respectively.