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Loans And Allowance For Credit Losses
9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Financing Receivables Loans and Allowance for Credit Losses
Major classifications within the Company’s held for investment loan portfolio at September 30, 2021 and December 31, 2020 are as follows:

(In thousands)
September 30, 2021December 31, 2020
Commercial:
Business$5,277,850 $6,546,087 
Real estate – construction and land1,257,836 1,021,595 
Real estate – business2,937,852 3,026,117 
Personal Banking:
Real estate – personal2,769,292 2,820,030 
Consumer2,049,559 1,950,502 
Revolving home equity281,442 307,083 
Consumer credit card569,976 655,078 
Overdrafts4,583 3,149 
Total loans$15,148,390 $16,329,641 

Accrued interest receivable totaled $33.0 million and $41.9 million at September 30, 2021 and December 31, 2020, respectively, and was included within other assets on the consolidated balance sheets. For the three months ended September 30, 2021, the Company wrote-off accrued interest by reversing interest income of $27 thousand and $781 thousand in the Commercial and Personal Banking portfolios, respectively. Similarly, for the nine months ended September 30, 2021, the Company wrote-off accrued interest of $188 thousand and $3.9 million in the Commercial and Personal Banking portfolios, respectively.

At September 30, 2021, loans of $3.5 billion were pledged at the Federal Home Loan Bank as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $1.3 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings.
Allowance for credit losses
The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis.

For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, unemployment rate, various interest rates, CPI inflation rate, HPI, CREPI and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications unless there is a reasonable expectation that a troubled debt restructuring will be executed. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions.
Key model assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at September 30, 2021 and June 30, 2021 are discussed below.

Key AssumptionSeptember 30, 2021June 30, 2021
Overall economic forecast
An optimistic recovery from the Global Coronavirus Recession (GCR) continues
Assumes improving health conditions
Assumes gradual easing of supply constraints
Continued uncertainty regarding the assumptions related to the health crisis
Uncertainty regarding rising inflation
An optimistic recovery from the GCR continues
Assumes improving health conditions and expanding vaccine distribution
Further fiscal stimulus assumed
Continued uncertainty regarding the assumptions related to the health crisis
Uncertainty regarding rising inflation
Reasonable and supportable period and related reversion period
One year for commercial and personal banking loans
Reversion to historical average loss rates within two quarters using straight-line method
One year for commercial and personal banking loans
Reversion to historical average loss rates within two quarters using straight-line method
Forecasted macro-economic variables
Unemployment rate ranging from 4.5% to 4.0% during the supportable forecast period
Real GDP growth ranging from 5.7% to 3.6%
Prime rate of 3.25%
Unemployment rate ranging from 4.6% to 4.0% during the supportable forecast period
Real GDP growth ranging from 10.7% to 1.7%
Prime rate of 3.25%
Prepayment assumptions
Commercial loans
5% for most loan pools
Personal banking loans
Ranging from 26.9% to 16.5% for most loan pools
62.2% for consumer credit cards
Commercial loans
5% for most loan pools
Personal banking loans
Ranging from 25.4% to 16.5% for most loan pools
60.1% for consumer credit cards
Qualitative factors
Added net reserves using qualitative processes related to:
Loans originated in our expansion markets, loans that are designated as shared national credits, and certain portfolios considered to be COVID-19 impacted
Changes in the composition of the loan portfolios
Loans downgraded to special mention, substandard, or non-accrual status
Added net reserves using qualitative processes related to:
Loans originated in our expansion markets, loans that are designated as shared national credits, and certain portfolios considered to be COVID-19 impacted
Changes in the composition of the loan portfolios
Loans downgraded to special mention, substandard, or non-accrual status

The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded.

Sensitivity in the Allowance for Credit Loss model
The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in estimated expected losses.

The current forecast projects a continued recovery of the COVID-19 pandemic induced recession. This pandemic is unprecedented and information that could be used in the estimation of the allowance for credit losses changes frequently. Trends in health conditions and vaccine distribution could significantly modify economic projections used in the estimation of the allowance for credit losses.
A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments during the three and nine months ended September 30, 2021 and 2020, respectively, follows:

For the Three Months Ended September 30, 2021
For the Nine Months Ended September 30, 2021
(In thousands)CommercialPersonal Banking

Total
CommercialPersonal Banking

Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at beginning of period$98,038 $74,357 $172,395 $121,549 $99,285 $220,834 
Provision for credit losses on loans186 (6,147)(5,961)(28,302)(15,447)(43,749)
Deductions:
   Loans charged off190 6,387 6,577 692 27,694 28,386 
   Less recoveries on loans130 2,788 2,918 5,609 8,467 14,076 
Net loan charge-offs (recoveries)60 3,599 3,659 (4,917)19,227 14,310 
Balance September 30, 2021$98,164 $64,611 $162,775 $98,164 $64,611 $162,775 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance at beginning of period$23,350 $858 $24,208 $37,259 $1,048 $38,307 
Provision for credit losses on unfunded lending commitments(1,564)140 (1,424)(15,473)(50)(15,523)
Balance September 30, 2021$21,786 $998 $22,784 $21,786 $998 $22,784 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$119,950 $65,609 $185,559 $119,950 $65,609 $185,559 

For the Three Months Ended September 30, 2020
For the Nine Months Ended September 30, 2020
(In thousands)CommercialPersonal Banking

Total
CommercialPersonal Banking

Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at end of prior period$130,553 $110,191 $240,744 $91,760 $68,922 $160,682 
Adoption of ASU 2016-13— — — (29,711)8,672 (21,039)
Balance at beginning of period$130,553 $110,191 $240,744 $62,049 $77,594 $139,643 
Provision for credit losses on loans(1,935)5,135 3,200 69,418 54,141 123,559 
Deductions:
   Loans charged off357 10,292 10,649 4,159 32,127 36,286 
   Less recoveries on loans163 2,902 3,065 1,116 8,328 9,444 
Net loan charge-offs194 7,390 7,584 3,043 23,799 26,842 
Balance September 30, 2020$128,424 $107,936 $236,360 $128,424 $107,936 $236,360 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance at end of prior period$34,052 $1,247 $35,299 $399 $676 $1,075 
Adoption of ASU 2016-13— — — 16,057 33 16,090 
Balance at beginning of period$34,052 $1,247 $35,299 $16,456 $709 $17,165 
Provision for credit losses on unfunded lending commitments(60)(39)(99)17,536 499 18,035 
Balance September 30, 2020$33,992 $1,208 $35,200 $33,992 $1,208 $35,200 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$162,416 $109,144 $271,560 $162,416 $109,144 $271,560 
Delinquent and non-accrual loans
The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at September 30, 2021 and December 31, 2020.




(In thousands)
Current or Less Than 30 Days Past Due

30 – 89
Days Past Due
90 Days Past Due and Still AccruingNon-accrual



Total
September 30, 2021
Commercial:
Business$5,266,174 $3,029 $354 $8,293 $5,277,850 
Real estate – construction and land1,257,836    1,257,836 
Real estate – business2,935,233 2,042  577 2,937,852 
Personal Banking:
Real estate – personal 2,762,146 3,029 2,566 1,551 2,769,292 
Consumer2,029,109 18,147 2,303  2,049,559 
Revolving home equity279,410 1,202 830  281,442 
Consumer credit card560,685 4,848 4,443  569,976 
Overdrafts4,294 289   4,583 
Total $15,094,887 $32,586 $10,496 $10,421 $15,148,390 
December 31, 2020
Commercial:
Business$6,517,838 $2,252 $3,473 $22,524 $6,546,087 
Real estate – construction and land1,021,592 — — 1,021,595 
Real estate – business3,016,215 7,666 2,230 3,026,117 
Personal Banking:
Real estate – personal 2,808,886 6,521 2,837 1,786 2,820,030 
Consumer1,921,822 25,417 3,263 — 1,950,502 
Revolving home equity305,037 1,656 390 — 307,083 
Consumer credit card635,770 7,090 12,218 — 655,078 
Overdrafts2,896 253 — — 3,149 
Total $16,230,056 $50,855 $22,190 $26,540 $16,329,641 

At September 30, 2021, the Company had $5.5 million in non-accrual business loans that had no allowance for credit loss. At December 31, 2020, the Company had $9.4 million in non-accrual business loans that had no allowance for credit loss. The Company did not record any interest income on non-accrual loans during the three and nine months ended September 30, 2021 and 2020, respectively.

Credit quality indicators
The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information including but not limited to current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.

All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans
are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Special Mention, Substandard or Non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

The risk category of loans in the Commercial portfolio as of September 30, 2021 and December 31, 2020 are as follows:

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisTotal
September 30, 2021
Business
    Risk Rating:
       Pass$1,134,349 $857,499 $719,076 $287,921 $184,147 $316,405 $1,662,395 $5,161,792 
       Special mention1,360 742 22,078 19,893 612 3,430 13,958 62,073 
       Substandard3,489 9,371 7,961 4,124 11,444 9,298 45,692 
       Non-accrual446 — 2,057 110 5,655 24 8,293 
   Total Business:$1,139,644 $867,612 $749,116 $313,995 $184,874 $336,934 $1,685,675 $5,277,850 
Real estate-construction
    Risk Rating:
       Pass$448,441 $465,051 $141,423 $43,814 $2,691 $24,807 $27,175 $1,153,402 
       Special mention15,474 28,037 — 995 19,499 — — 64,005 
       Substandard239 11,767 — 15,226 13,197 — — 40,429 
    Total Real estate-construction:$464,154 $504,855 $141,423 $60,035 $35,387 $24,807 $27,175 $1,257,836 
Real estate-business
    Risk Rating:
       Pass$424,347 $749,037 $577,966 $272,536 $209,234 $324,869 $57,801 $2,615,790 
       Special mention1,080 29,998 10,980 22,751 2,117 5,853 72,781 
       Substandard17,021 64,197 11,834 30,993 68,664 52,183 3,812 248,704 
       Non-accrual198 65 76 205 — 33 — 577 
   Total Real estate-business:$442,646 $843,297 $600,856 $326,485 $280,015 $382,938 $61,615 $2,937,852 
Commercial loans
    Risk Rating:
       Pass$2,007,137 $2,071,587 $1,438,465 $604,271 $396,072 $666,081 $1,747,371 $8,930,984 
       Special mention17,914 58,777 33,058 43,639 22,228 9,283 13,960 198,859 
       Substandard20,749 85,335 19,795 50,343 81,866 63,627 13,110 334,825 
       Non-accrual644 65 77 2,262 110 5,688 24 8,870 
   Total Commercial loans:$2,046,444 $2,215,764 $1,491,395 $700,515 $500,276 $744,679 $1,774,465 $9,473,538 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2020
Business
    Risk Rating:
       Pass$2,472,419 $966,068 $438,557 $329,207 $163,357 $281,604 $1,619,680 $6,270,892 
       Special mention28,612 26,746 14,102 1,781 5,091 1,664 41,749 119,745 
       Substandard17,246 21,985 5,076 2,675 3,578 13,390 68,976 132,926 
       Non-accrual12,619 5,327 391 502 3,659 25 22,524 
   Total Business:$2,530,896 $1,014,800 $463,062 $334,054 $172,528 $300,317 $1,730,430 $6,546,087 
Real estate-construction
    Risk Rating:
       Pass$483,302 $330,480 $56,747 $3,021 $24,426 $1,692 $27,356 $927,024 
       Special mention29,692 — 1,022 34,532 — — — 65,246 
       Substandard1,154 — 14,989 13,182 — — — 29,325 
    Total Real estate-construction:$514,148 $330,480 $72,758 $50,735 $24,426 $1,692 $27,356 $1,021,595 
Real estate- business
    Risk Rating:
       Pass$890,740 $666,399 $336,850 $241,656 $313,691 $199,534 $67,796 $2,716,666 
       Special mention8,936 21,734 49,580 6,597 17,504 1,309 3,002 108,662 
       Substandard46,882 1,037 4,061 81,435 17,538 45,014 2,592 198,559 
       Non-accrual478 188 1,480 — — 84 — 2,230 
   Total Real-estate business:$947,036 $689,358 $391,971 $329,688 $348,733 $245,941 $73,390 $3,026,117 
Commercial loans
    Risk Rating:
       Pass$3,846,461 $1,962,947 $832,154 $573,884 $501,474 $482,830 $1,714,832 $9,914,582 
       Special mention67,240 48,480 64,704 42,910 22,595 2,973 44,751 293,653 
       Substandard65,282 23,022 24,126 97,292 21,116 58,404 71,568 360,810 
       Non-accrual13,097 189 6,807 391 502 3,743 25 24,754 
   Total Commercial loans:$3,992,080 $2,034,638 $927,791 $714,477 $545,687 $547,950 $1,831,176 $10,593,799 
The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of September 30, 2021 and December 31, 2020 below:

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisTotal
September 30, 2021
Real estate-personal
       Current to 90 days past due$509,080 $941,728 $379,912 $170,651 $158,655 $595,786 $9,363 $2,765,175 
       Over 90 days past due86 663 — 188 167 1,462 — 2,566 
       Non-accrual— — 185 111 — 1,255 — 1,551 
   Total Real estate-personal:$509,166 $942,391 $380,097 $170,950 $158,822 $598,503 $9,363 $2,769,292 
Consumer
       Current to 90 days past due$441,146 $391,312 $221,490 $96,086 $59,935 $93,205 $744,082 $2,047,256 
       Over 90 days past due54 310 250 230 27 253 1,179 2,303 
    Total Consumer:$441,200 $391,622 $221,740 $96,316 $59,962 $93,458 $745,261 $2,049,559 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $280,612 $280,612 
       Over 90 days past due— — — — — — 830 830 
   Total Revolving home equity:$— $— $— $— $— $— $281,442 $281,442 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $565,533 $565,533 
       Over 90 days past due— — — — — — 4,443 4,443 
   Total Consumer credit card:$— $— $— $— $— $— $569,976 $569,976 
Overdrafts
       Current to 90 days past due$4,583 $— $— $— $— $— $— $4,583 
    Total Overdrafts:$4,583 $— $— $— $— $— $— $4,583 
Personal banking loans
       Current to 90 days past due$954,809 $1,333,040 $601,402 $266,737 $218,590 $688,991 $1,599,590 $5,663,159 
       Over 90 days past due140 973 250 418 194 1,715 6,452 10,142 
       Non-accrual— — 185 111 — 1,255 — 1,551 
   Total Personal banking loans:$954,949 $1,334,013 $601,837 $267,266 $218,784 $691,961 $1,606,042 $5,674,852 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2020
Real estate-personal
       Current to 90 days past due$1,123,918 $488,379 $218,390 $201,971 $227,265 $544,008 $11,476 $2,815,407 
       Over 90 days past due534 375 281 411 388 848 — 2,837 
       Non-accrual29 191 116 45 65 1,340 — 1,786 
   Total Real estate-personal:$1,124,481 $488,945 $218,787 $202,427 $227,718 $546,196 $11,476 $2,820,030 
Consumer
       Current to 90 days past due$536,799 $337,431 $161,337 $115,886 $75,769 $86,831 $633,186 $1,947,239 
       Over 90 days past due212 358 328 220 174 397 1,574 3,263 
    Total Consumer:$537,011 $337,789 $161,665 $116,106 $75,943 $87,228 $634,760 $1,950,502 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $306,693 $306,693 
       Over 90 days past due— — — — — — 390 390 
   Total Revolving home equity:$— $— $— $— $— $— $307,083 $307,083 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $642,860 $642,860 
       Over 90 days past due— — — — — — 12,218 12,218 
   Total Consumer credit card:$— $— $— $— $— $— $655,078 $655,078 
Overdrafts
       Current to 90 days past due$3,149 $— $— $— $— $— $— $3,149 
    Total Overdrafts:$3,149 $— $— $— $— $— $— $3,149 
Personal banking loans
       Current to 90 days past due$1,663,866 $825,810 $379,727 $317,857 $303,034 $630,839 $1,594,215 $5,715,348 
       Over 90 days past due746 733 609 631 562 1,245 14,182 18,708 
       Non-accrual29 191 116 45 65 1,340 — 1,786 
   Total Personal banking loans:$1,664,641 $826,734 $380,452 $318,533 $303,661 $633,424 $1,608,397 $5,735,842 

Collateral-dependent loans
The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of September 30, 2021 and December 31, 2020.

(In thousands)Business AssetsBusiness Real EstateOil & Gas AssetsTotal
September 30, 2021
Commercial:
  Business$2,056 $ $2,518 $4,574 
Total$2,056 $ $2,518 $4,574 
December 31, 2020
Commercial:
Business$13,109 $— $2,695 $15,804 
Real estate - business— 986 — 986 
Total$13,109 $986 $2,695 $16,790 

Other Personal Banking loan information
As noted above, the credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided in the table in the above section on "Credit quality indicators." In addition, FICO scores are obtained and updated on a quarterly basis for most of the loans in the Personal Banking portfolio. This is a published credit score designed to measure the risk of default by taking into account various factors from a borrower's financial history and is considered supplementary information utilized by the Company, as management does not consider this information in evaluating the allowance for credit losses on loans. The Bank normally obtains a FICO score at the loan's origination and
renewal dates, and updates are obtained on a quarterly basis. Excluded from the table below are certain personal real estate loans for which FICO scores are not obtained because the loans generally pertain to commercial customer activities and are often underwritten with other collateral considerations. These loans totaled $186.0 million at September 30, 2021 and $191.1 million at December 31, 2020. The table also excludes consumer loans related to the Company's patient healthcare loan program, which totaled $189.6 million at September 30, 2021 and $188.1 million at December 31, 2020. As the healthcare loans are guaranteed by the hospital, customer FICO scores are not obtained for these loans. The personal real estate loans and consumer loans excluded below totaled less than 7% of the Personal Banking portfolio. For the remainder of loans in the Personal Banking portfolio, the table below shows the percentage of balances outstanding at September 30, 2021 and December 31, 2020 by FICO score.

   Personal Banking Loans
% of Loan Category
Real Estate - PersonalConsumerRevolving Home EquityConsumer Credit Card
September 30, 2021
FICO score:
Under 600.9 %1.7 %0.9 %3.3 %
600 - 6592.0 3.8 2.3 11.3 
660 - 7197.8 14.2 9.2 30.8 
720 - 77924.4 25.0 21.0 28.5 
780 and over64.9 55.3 66.6 26.1 
Total100.0 %100.0 %100.0 %100.0 %
December 31, 2020
FICO score:
Under 600.8 %2.3 %1.3 %5.0 %
600 - 6591.9 4.2 2.4 12.3 
660 - 7198.8 14.1 8.6 31.2 
720 - 77924.5 23.9 22.2 28.0 
780 and over64.0 55.5 65.5 23.5 
Total100.0 %100.0 %100.0 %100.0 %

Troubled debt restructurings
Restructured loans are those extended to borrowers who are experiencing financial difficulty and who have been granted a concession. Restructured loans are placed on non-accrual status if the Company does not believe it probable that amounts due under the contractual terms will be collected. Commercial performing restructured loans are primarily comprised of certain business, construction and business real estate loans classified as substandard but renewed at rates judged to be non-market. These loans are performing in accordance with their modified terms, and because the Company believes it probable that all amounts due under the modified terms of the agreements will be collected, interest on these loans is being recognized on an accrual basis. Troubled debt restructurings also include certain credit card and other small consumer loans under various debt management and assistance programs. Modifications to these loans generally involve removing the available line of credit, placing loans on amortizing status, and lowering the contractual interest rate. Certain personal real estate, revolving home equity, and consumer loans were classified as consumer bankruptcy troubled debt restructurings because they were not reaffirmed by the borrower in bankruptcy proceedings. Interest on these loans is being recognized on an accrual basis, as the borrowers are continuing to make payments. Other consumer loans classified as troubled debt restructurings consist of various other workout arrangements with consumer customers.

(In thousands)September 30, 2021December 31, 2020
Accruing restructured loans:
Commercial
$110,583 $117,740 
Assistance programs
6,789 7,804 
Consumer bankruptcy
2,327 2,841 
Other consumer
2,293 2,353 
Non-accrual loans
7,866 9,889 
Total troubled debt restructurings
$129,858 $140,627 
Section 4013 of the CARES Act was signed into law on March 27, 2020, and includes a provision that short-term modifications are not troubled debt restructurings, if made on a good-faith basis in response to COVID-19 to borrowers who were current prior to December 31, 2019. The Company follows the guidance under the CARES Act when determining if a
customer’s modification is subject to troubled debt restructuring classification. If it is deemed the modification is not short-term, not COVID-19 related or the customer does not meet the criteria under the guidance to be scoped out of troubled debt restructuring classification, the Company will evaluate the loan modifications under its existing framework which requires modifications that result in a concession to a borrower experiencing financial difficulty be accounted for as a troubled debt restructuring.

The initial guidance issued under the CARES Act was due to expire on December 31, 2020. During January 2021, the Consolidated Appropriations Act, 2021 was enacted and extended through the end of 2021 the relief offered under the CARES Act related to the accounting and disclosure requirements for troubled debt restructurings as a result of COVID-19. The Company elected to adopt the extension of this guidance.

The table below shows the balance of troubled debt restructurings by loan classification at September 30, 2021, in addition to the outstanding balances of these restructured loans which the Company considers to have been in default at any time during the past twelve months. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.

(In thousands)September 30, 2021Balance 90 days past due at any time during previous 12 months
Commercial:
Business$53,850 $347 
Real estate - construction and land10,104 — 
Real estate - business53,240 198 
Personal Banking:
Real estate - personal3,131 483 
Consumer2,865 177 
Revolving home equity23 — 
Consumer credit card6,645 368 
Total troubled debt restructurings$129,858 $1,573 

For those loans on non-accrual status also classified as restructured, the modification did not create any further financial effect on the Company as those loans were already recorded at net realizable value. For those performing commercial loans classified as restructured, there were no concessions involving forgiveness of principal or interest and, therefore, there was no financial impact to the Company as a result of modification to these loans. No financial impact resulted from those performing loans where the debt was not reaffirmed in bankruptcy, as no changes to loan terms occurred in that process. However, the effects of modifications to loans under various debt management and assistance programs were estimated to decrease interest income by approximately $815 thousand on an annual, pre-tax basis, compared to amounts contractually owed. Other modifications to consumer loans mainly involve extensions and other small modifications that did not include the forgiveness of principal or interest.

The allowance for credit losses related to troubled debt restructurings on non-accrual status is determined by individual evaluation, including collateral adequacy, using the same process as loans on non-accrual status which are not classified as troubled debt restructurings. Those performing loans classified as troubled debt restructurings are accruing loans which management expects to collect under contractual terms. Performing commercial loans having no other concessions granted other than being renewed at non-market interest rates are judged to have similar risk characteristics as non-troubled debt commercial loans and are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience and current economic factors. Performing personal banking loans classified as troubled debt restructurings resulted from the borrower not reaffirming the debt during bankruptcy and have had no other concession granted, other than the Bank's future limitations on collecting payment deficiencies or in pursuing foreclosure actions. As such, they have similar risk characteristics as non-troubled debt personal banking loans and are evaluated collectively based on loan type, delinquency, historical experience and current economic factors.

If a troubled debt restructuring defaults and is already on non-accrual status, the allowance for credit losses continues to be based on individual evaluation, using discounted expected cash flows or the fair value of collateral. If an accruing troubled debt restructuring defaults, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin.
The Company had commitments of $245 thousand at September 30, 2021 to lend additional funds to borrowers with restructured loans. Additionally, the Company had commitments at September 30, 2021 of $24.0 million related to letters of credit with an internal risk rating below substandard.

Loans held for sale
The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company has elected the fair value option for these loans. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in Note 11. The loans are primarily sold to Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA). At September 30, 2021, the fair value of these loans was $12.0 million, and the unpaid principal balance was $11.6 million.

The Company also designates certain student loan originations as held for sale. The borrowers are credit-worthy students who are attending colleges and universities. The loans are intended to be sold in the secondary market, and the Company maintains contracts with Sallie Mae to sell the loans within 210 days after the last disbursement to the student. These loans are carried at lower of cost or fair value, which at September 30, 2021 totaled $4.1 million.

At September 30, 2021, none of the loans held for sale were on non-accrual status or 90 days past due and still accruing.
Foreclosed real estate/repossessed assets
The Company’s holdings of foreclosed real estate totaled $115 thousand and $93 thousand at September 30, 2021 and December 31, 2020, respectively. Personal property acquired in repossession, generally autos, totaled $1.0 million and $1.4 million at September 30, 2021 and December 31, 2020, respectively. Upon acquisition, these assets are recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. They are subsequently carried at the lower of this cost basis or fair value less estimated selling costs.