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Loans And Allowance For Credit Losses
 12 Months Ended
Dec. 31, 2023
Loans And Allowance For Credit Losses [Abstract]  
Loans And Allowance For Credit Losses Loans and Allowance for Credit Losses
Major classifications within the Company’s held for investment loan portfolio at December 31, 2023 and 2022 are as follows:

(In thousands)20232022
Commercial:
Business
$6,019,036 $5,661,725 
Real estate — construction and land
1,446,764 1,361,095 
Real estate — business
3,719,306 3,406,981 
Personal Banking:
Real estate — personal
3,026,041 2,918,078 
Consumer
2,077,723 2,059,088 
Revolving home equity
319,894 297,207 
Consumer credit card
589,913 584,000 
Overdrafts
6,802 14,957 
Total loans (1)
$17,205,479 $16,303,131 
(1) Accrued interest receivable totaled $71.9 million and $55.5 million at December 31, 2023 and 2022, respectively, and was included within other assets on the consolidated balance sheets. For the year ended December 31, 2023, the Company wrote-off accrued interest by reversing interest income of $460 thousand and $4.8 million in the Commercial and Personal Banking portfolios, respectively. For the year ended December 31, 2022, the Company wrote-off accrued interest by reversing interest income of $145 thousand and $3.2 million in the Commercial and Personal Banking portfolios, respectively.

Loans to directors and executive officers of the Parent and the Bank, and to their affiliates, are summarized as follows:

(In thousands)
Balance at January 1, 2023
$41,107 
Additions2,300 
Amounts collected(4,605)
Amounts written off— 
Balance, December 31, 2023
$38,802 

Management believes all loans to directors and executive officers have been made in the ordinary course of business with normal credit terms, including interest rate and collateral considerations, and do not represent more than a normal risk of collection. The activity in the table above includes draws and repayments on several lines of credit with business entities. There were no outstanding loans at December 31, 2023 to principal holders (over 10% ownership) of the Company’s common stock.

The Company’s lending activity is generally centered in Missouri, Kansas, Illinois and other nearby states including Oklahoma, Colorado, Iowa, Ohio, and Texas. The Company maintains a diversified portfolio with limited industry concentrations of credit risk. Loans and loan commitments are extended under the Company’s normal credit standards, controls, and monitoring procedures. Most loan commitments are short or intermediate term in nature. Commercial loan maturities generally range from one to seven years. Collateral is commonly required and would include such assets as marketable securities, cash equivalent assets, accounts receivable, inventory, equipment, other forms of personal property, and real estate. At December 31, 2023, unfunded loan commitments totaled $14.5 billion (which included $5.4 billion in unused approved lines of credit related to credit card loan agreements) which could be drawn by customers subject to certain review and terms of agreement. At December 31, 2023, loans totaling $3.5 billion were pledged at the FHLB as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $3.1 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings.

The Company has a net investment in direct financing and sales type leases to commercial and industrial and tax-exempt entities of $867.0 million and $779.9 million at December 31, 2023 and 2022, respectively, which is included in business loans on the Company’s consolidated balance sheets. This investment includes deferred income of $98.6 million and $73.2 million at December 31, 2023 and 2022, respectively.
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, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (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. 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 assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, forecasted macro-economic variables, 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 December 31, 2023 and 2022 are discussed below.

Key AssumptionDecember 31, 2023December 31, 2022
Overall economic forecast
•The US economy is projected to slow at the start of 2024, but not enter a recession
•Impacts of tighter monetary and fiscal policy creates uncertainty
•Consumer spending is expected to decrease
•Continued high inflation and higher cost of borrowing create a mild recession in 2023 with stalled job growth and possible job losses
•Assumes interest rate hikes will taper
Reasonable and supportable period and related reversion period
•Reasonable and supportable period of one year
•Reversion to historical average loss rates within two quarters using a straight-line method
•Reasonable and supportable period of one year
•Reversion to historical average loss rates within two quarters using straight-line method
Forecasted macro-economic variables
•Unemployment rate ranges from 4.1% to 4.5% during the reasonable and supportable forecast period
•Real GDP growth ranges from .46% to 2.1%
•BBB corporate yield from 5.3% to 5.9%
•Housing Price Index from 305.4 to 307.4
•Unemployment rate ranges from 3.8% to 4.7% during the reasonable and supportable forecast period
•Real GDP growth ranges from (.9)% to 1.3%
•BBB corporate yield from 5.1% to 5.8%
•Prime rate from 7.6% to 7.7%
Prepayment assumptions
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 6.5% to 23.5% for most loan pools
•Consumer credit cards 66.9%
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 8.3% to 24.8% for most loan pools
•Consumer credit cards 67.9%
Qualitative factors
Added qualitative factors related to:
•Changes in the composition of the loan portfolios
•Certain stressed industries within the portfolio
•Certain portfolios sensitive to unusually high rate of inflation and supply chain issues
•Loans downgraded to special mention, substandard, or non-accrual status
Added qualitative factors related to:
•Changes in the composition of the loan portfolios
•Certain portfolios sensitive to pandemic economic uncertainties
•Uncertainty related to unusually high rate of inflation and supply chain issues
•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 credit losses.

The current forecast projects the economy will slow at the start of 2024. It is expected that fiscal policy will tighten in 2024 and consumer spending will decrease. The labor market is expected to soften slowly, creating lower household income growth at a time when excess savings have decreased.

The impacts of tighter fiscal policy and decreased consumer spending creates significant uncertainty in the forecast. The impacts of the market's response to unusual events or trends including high inflation, supply chain stresses, trends in health conditions, and changes in the geopolitical environment 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 years ended December 31, 2023 and 2022 follows:

For the Year Ended December 31
(In thousands)CommercialPersonal Banking

Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance December 31, 2022$103,293 $46,843 $150,136 
Provision for credit losses on loans8,001 35,324 43,325 
Deductions:
   Loans charged off3,885 36,283 40,168 
   Less recoveries on loans792 8,310 9,102 
Net loan charge-offs (recoveries)3,093 27,973 31,066 
Balance December 31, 2023$108,201 $54,194 $162,395 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance December 31, 2022$31,743 $1,377 $33,120 
Provision for credit losses on unfunded lending commitments(7,834)(40)(7,874)
Balance December 31, 2023$23,909 $1,337 $25,246 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$132,110 $55,531 $187,641 
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at December 31, 2021
97,776 52,268 150,044 
Provision for credit losses on loans6,550 12,605 19,155 
Deductions:
   Loans charged off1,480 27,762 29,242 
   Less recoveries on loans447 9,732 10,179 
Net loan charge-offs (recoveries)1,033 18,030 19,063 
Balance December 31, 2022
$103,293 $46,843 $150,136 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance at December 31, 202023,271 933 24,204 
Provision for credit losses on unfunded lending commitments8,472 444 8,916 
Balance December 31, 2022
$31,743 $1,377 $33,120 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$135,036 $48,220 $183,256 
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 December 31, 2023 and 2022.
(In thousands)
Current or Less Than 30 Days Past Due30 – 89 Days Past Due90 Days Past Due and Still AccruingNon-accrualTotal
December 31, 2023
Commercial:
Business
$5,985,713 $29,087 $614 $3,622 $6,019,036 
Real estate – construction and land
1,446,764 — — — 1,446,764 
Real estate – business
3,714,579 4,582 85 60 3,719,306 
Personal Banking:
Real estate – personal
2,999,988 14,841 9,559 1,653 3,026,041 
Consumer
2,036,353 38,217 3,153 — 2,077,723 
Revolving home equity
315,483 1,564 870 1,977 319,894 
Consumer credit card
574,805 7,525 7,583 — 589,913 
Overdrafts
6,553 249— — 6,802 
Total
$17,080,238 $96,065 $21,864 $7,312 $17,205,479 
December 31, 2022
Commercial:
Business
$5,652,710 $1,759 $505 $6,751 $5,661,725 
Real estate – construction and land
1,361,095 — — — 1,361,095 
Real estate – business
3,406,207 585 — 189 3,406,981 
Personal Banking:
Real estate – personal
2,895,742 14,289 6,681 1,366 2,918,078 
Consumer
2,031,827 25,089 2,172 — 2,059,088 
Revolving home equity
295,303 1,201 703 — 297,207 
Consumer credit card
572,213 6,238 5,549 — 584,000 
Overdrafts
14,090 647220 — 14,957 
Total
$16,229,187 $49,808 $15,830 $8,306 $16,303,131 

At December 31, 2023 and 2022, the Company had $4.3 million and $3.8 million, respectively, of non-accrual loans that had no allowance for credit loss. The Company did not record any interest income on non-accrual loans during the years ended December 31, 2023 and 2022.
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 December 31, 2023 and 2022 are as follows:

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2023
Business
    Risk Rating:
       Pass$1,609,685 $839,511 $555,991 $273,138 $215,988 $257,177 $2,096,108 $5,847,598 
       Special mention19,639 3,412 19,489 643 412 2,485 43,054 89,134 
       Substandard5,256 8,666 6,891 20,854 1,422 10,235 25,358 78,682 
       Non-accrual— 130 1,184 — — 2,308 — 3,622 
   Total Business:$1,634,580 $851,719 $583,555 $294,635 $217,822 $272,205 $2,164,520 $6,019,036 
Gross write-offs for the year ended December 31, 2023
$— $2,260 $57 $41 $— $— $1,393 $3,751 
Real estate-construction
    Risk Rating:
       Pass$476,489 $579,933 $295,841 $41,418 $498 $2,834 $31,670 $1,428,683 
       Special mention3,068 15,013 — — — — — 18,081 
       Substandard— — — — — — — — 
    Total Real estate-construction:$479,557 $594,946 $295,841 $41,418 $498 $2,834 $31,670 $1,446,764 
Gross write-offs for the year ended December 31, 2023
$— $— $— $— $— $— $— $— 
Real estate- business
    Risk Rating:
       Pass$807,631 $1,063,189 $510,397 $433,030 $311,457 $325,738 $94,432 $3,545,874 
       Special mention16,650 8,619 451 884 9,253 733 — 36,590 
       Substandard2,952 18,463 27,914 17,430 11,636 58,387 — 136,782 
       Non-accrual— — — — — 60 — 60 
   Total Real-estate business:$827,233 $1,090,271 $538,762 $451,344 $332,346 $384,918 $94,432 $3,719,306 
Gross write-offs for the year ended December 31, 2023
$— $— $— $— $— $134 $— $134 
Commercial loans
    Risk Rating:
       Pass$2,893,805 $2,482,633 $1,362,229 $747,586 $527,943 $585,749 $2,222,210 $10,822,155 
       Special mention39,357 27,044 19,940 1,527 9,665 3,218 43,054 143,805 
       Substandard8,208 27,129 34,805 38,284 13,058 68,622 25,358 215,464 
       Non-accrual— 130 1,184 — — 2,368 — 3,682 
   Total Commercial loans:$2,941,370 $2,536,936 $1,418,158 $787,397 $550,666 $659,957 $2,290,622 $11,185,106 
Gross write-offs for the year ended December 31, 2023
$— $2,260 $57 $41 $— $134 $1,393 $3,885 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2022
Business
    Risk Rating:
       Pass$1,456,476 $782,409 $464,201 $360,844 $180,375 $219,053 $2,146,380 $5,609,738 
       Special mention3,113 2,548 7,757 1,063 67 — 1,319 15,867 
       Substandard5,752 10,004 685 37 810 10,342 1,739 29,369 
       Non-accrual195 1,987 — 1 792 3,776 — 6,751 
   Total Business:$1,465,536 $796,948 $472,643 $361,945 $182,044 $233,171 $2,149,438 $5,661,725 
Real estate-construction
    Risk Rating:
       Pass$538,022 $596,465 $129,632 $27,331 $1,305 $2,029 $18,559 $1,313,343 
       Special mention352 — — — — — — 352 
       Substandard— 19,494 — — 14,766 13,140 — 47,400 
    Total Real estate-construction:$538,374 $615,959 $129,632 $27,331 $16,071 $15,169 $18,559 $1,361,095 
Real estate- business
    Risk Rating:
       Pass$1,085,379 $616,516 $555,648 $424,641 $163,628 $271,579 $90,799 $3,208,190 
       Special mention4,608 — 618 9,737 976 279 — 16,218 
       Substandard2,795 30,944 61,141 10,490 30,782 46,232 — 182,384 
       Non-accrual14 45 — — 124 6 — 189 
   Total Real-estate business:$1,092,796 $647,505 $617,407 $444,868 $195,510 $318,096 $90,799 $3,406,981 
Commercial loans
    Risk Rating:
       Pass$3,079,877 $1,995,390 $1,149,481 $812,816 $345,308 $492,661 $2,255,738 $10,131,271 
       Special mention8,073 2,548 8,375 10,800 1,043 279 1,319 32,437 
       Substandard8,547 60,442 61,826 10,527 46,358 69,714 1,739 259,153 
       Non-accrual209 2,032 — 1 916 3,782 — 6,940 
   Total Commercial loans:$3,096,706 $2,060,412 $1,219,682 $834,144 $393,625 $566,436 $2,258,796 $10,429,801 
The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of December 31, 2023 and 2022 below:

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20232022202120202019PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2023
Real estate-personal
       Current to 90 days past due$455,703 $452,153 $533,313 $711,442 $257,159 $596,439 $8,620 $3,014,829 
       Over 90 days past due3,319 1,650 2,222 834 44 1,490 — 9,559 
       Non-accrual— 261 167 — 157 1,068 — 1,653 
   Total Real estate-personal:$459,022 $454,064 $535,702 $712,276 $257,360 $598,997 $8,620 $3,026,041 
Gross write-offs for the year ended December 31, 2023
$— $18 $— $— $— $23 $— $41 
Consumer
       Current to 90 days past due$518,619 $340,104 $258,348 $127,208 $56,394 $51,302 $722,595 $2,074,570 
       Over 90 days past due391 210 194 24 54 421 1,859 3,153 
    Total Consumer:$519,010 $340,314 $258,542 $127,232 $56,448 $51,723 $724,454 $2,077,723 
Gross write-offs for the year ended December 31, 2023
$926 $2,891 $1,939 $770 $376 $370 $1,051 $8,323 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $317,047 $317,047 
       Over 90 days past due— — — — — — 870 870 
       Non-accrual— — — — — — 1,977 $1,977 
   Total Revolving home equity:$— $— $— $— $— $— $319,894 $319,894 
Gross write-offs for the year ended December 31, 2023
$— $— $— $— $— $— $11 $11 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $582,330 $582,330 
       Over 90 days past due— — — — — — 7,583 7,583 
   Total Consumer credit card:$— $— $— $— $— $— $589,913 $589,913 
Gross write-offs for the year ended December 31, 2023
$— $— $— $— $— $— $24,105 $24,105 
Overdrafts
       Current to 90 days past due$6,802 $— $— $— $— $— $— $6,802 
    Total Overdrafts:$6,802 $— $— $— $— $— $— $6,802 
Gross write-offs for the year ended December 31, 2023
$3,803 $— $— $— $— $— $— $3,803 
Personal banking loans
       Current to 90 days past due$981,124 $792,257 $791,661 $838,650 $313,553 $647,741 $1,630,592 $5,995,578 
       Over 90 days past due3,710 1,860 2,416 858 98 1,911 10,312 21,165 
       Non-accrual— 261 167 — 157 1,068 1,977 3,630 
   Total Personal banking loans:$984,834 $794,378 $794,244 $839,508 $313,808 $650,720 $1,642,881 $6,020,373 
Gross write-offs for the year ended December 31, 2023
$4,729 $2,909 $1,939 $770 $376 $393 $25,167 $36,283 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20222021202020192018PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2022
Real estate-personal
       Current to 90 days past due$535,283 $589,658 $783,651 $290,580 $132,305 $568,380 $10,174 $2,910,031 
       Over 90 days past due514 967 1,338 81 1,388 2,393 — 6,681 
       Non-accrual— — 52 169 102 1,043 — 1,366 
   Total Real estate-personal:$535,797 $590,625 $785,041 $290,830 $133,795 $571,816 $10,174 $2,918,078 
Consumer
       Current to 90 days past due$536,429 $378,118 $205,849 $106,733 $36,096 $62,255 $731,436 $2,056,916 
       Over 90 days past due326 251 203 58 267 228 839 2,172 
    Total Consumer:$536,755 $378,369 $206,052 $106,791 $36,363 $62,483 $732,275 $2,059,088 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $296,504 $296,504 
       Over 90 days past due— — — — — — 703 703 
   Total Revolving home equity:$— $— $— $— $— $— $297,207 $297,207 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $578,451 $578,451 
       Over 90 days past due— — — — — — 5,549 5,549 
   Total Consumer credit card:$— $— $— $— $— $— $584,000 $584,000 
Overdrafts
       Current to 90 days past due$14,737 $— $— $— $— $— $— $14,737 
       Over 90 days past due220 — — — — — — 220 
    Total Overdrafts:$14,957 $— $— $— $— $— $— $14,957 
Personal banking loans
       Current to 90 days past due$1,086,449 $967,776 $989,500 $397,313 $168,401 $630,635 $1,616,565 $5,856,639 
       Over 90 days past due1,060 1,218 1,541 139 1,655 2,621 7,091 15,325 
       Non-accrual— — 52 169 102 1,043 — 1,366 
   Total Personal banking loans:$1,087,509 $968,994 $991,093 $397,621 $170,158 $634,299 $1,623,656 $5,873,330 

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 December 31, 2023 and 2022.

December 31, 2023December 31, 2022
(In thousands)Business AssetsReal EstateOil & Gas AssetsTotalBusiness AssetsOil & Gas AssetsTotal
Commercial:
  Business$1,183 $— $1,238 $2,421 $2,778 $1,824 $4,602 
  Revolving home equity— 1,977 — 1,977 — $— — 
Total$1,183 $1,977 $1,238 $4,398 $2,778 $1,824 $4,602 

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 $168.9 million at December 31, 2023 and $179.2 million at December 31, 2022. The table also excludes consumer loans related to the Company's patient healthcare loan
program, which totaled $211.3 million at December 31, 2023 and $197.5 million at December 31, 2022. 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 December 31, 2023 and 2022 by FICO score.
Personal Banking Loans
% of Loan Category


Real Estate - PersonalConsumerRevolving Home EquityConsumer Credit Card
December 31, 2023
FICO score:
Under 600
2.0 %2.5 %1.9 %4.7 %
600 – 659
2.3 4.3 3.3 12.1 
660 – 719
8.5 12.9 10.9 29.2 
720 – 779
21.9 28.2 22.4 27.0 
780 and over
65.3 52.1 61.5 27.0 
Total
100.0 %100.0 %100.0 %100.0 %
December 31, 2022
FICO score:
Under 600
1.4 %2.2 %1.5 %3.4 %
600 – 659
2.2 4.2 2.8 11.4 
660 – 719
8.1 14.5 9.7 30.8 
720 – 779
23.7 26.7 21.4 27.1 
780 and over
64.6 52.4 64.6 27.3 
Total
100.0 %100.0 %100.0 %100.0 %
Modifications for borrowers experiencing financial difficulty
When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower in order to assist the borrower in repaying principal and interest owed to the Company.

The Company's modifications of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended. Modifications on personal real estate loans are primarily those placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often modified under debt counseling programs that can reduce the contractual rate or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers.
The following tables present the amortized cost at December 31, 2023 of loans that were modified during the year ended December 31, 2023.

For the Year Ended December 31, 2023



(Dollars in thousands)
Term ExtensionPayment DelayInterest Rate ReductionInterest/Fees Forgiven
Other
Total% of Total Loan Category
December 31, 2023
Commercial:
Business$28,179 $— $— $— $— $28,179 0.5 %
Real estate – business105,549 — — — — 105,549 2.8 
Personal Banking:
Real estate – personal 383 4,203 — — — 4,586 0.2 
Consumer30 68 92 — 85 275 — 
Consumer credit card— — 2,535 346 — 2,881 0.5 
Total $134,141 $4,271 $2,627 $346 $85 $141,470 0.8 %

The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical experience on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a change to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are placed on non-accrual status, the Company determines the allowance for credit losses on an individual evaluation, using the same process that it utilizes for other loans on non-accrual status. Modifications made to commercial loans which are not on non-accrual status for borrowers experiencing financial difficulty are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience, and current economic factors. Modifications made to borrowers experiencing financial difficulty for personal banking loans which are not on non-accrual status are collectively evaluated based on loan type, delinquency, historical experience, and current economic factors.

If a loan to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the allowance for credit losses continues to be based on individual evaluation, if that loan is already on non-accrual status. For those loans, the allowance for credit losses is estimated using discounted expected cash flows or the fair value of collateral. If an accruing loan made to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, 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 following tables summarize the financial impact of loan modifications and payment deferrals during the year ended December 31, 2023.
Term Extension
For the Year Ended December 31, 2023
Commercial:
Business
Extended maturity by a weighted average of 7 months.
Real estate – business
Extended maturity by a weighted average of 13 months.
Personal Banking:
Real estate – personal
Extended maturity by a weighted average of 7 months.
Consumer
Extended maturity by 10 years.


Payment Delay
For the Year Ended December 31, 2023
Personal Banking:
Real estate – personal
Deferred certain payments by a weighted average of 20 years.
Consumer
Deferred certain payments by a weighted average of 71 months.
Interest Rate Reduction
For the Year Ended December 31, 2023
Personal Banking:
ConsumerReduced weighted-average contractual interest rate from average 22% to 6%.
Consumer credit cardReduced weighted-average contractual interest rate from average 22% to 6%.

Forgiveness of Interest/Fees
For the Year Ended December 31, 2023
Personal Banking:
Consumer credit cardApproximately $33 thousand of interest and fees forgiven.

The Company had commitments of $28.4 million at December 31, 2023 to lend additional funds to borrowers experiencing financial difficulty and for whom the Company has modified the terms of loans in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension during the current reporting period.

The following table provides the amortized cost basis of loans to borrowers experiencing financial difficulty that had a payment default during the year ended December 31, 2023 and were modified on or after January 1, 2023 (the date we adopted ASU 2022-02) through December 31, 2023. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal. In addition to the loans below, the Company charged off $2.2 million and $729 thousand of business and consumer loans, respectively, during the year ended December 31, 2023 that were modified during the period.

For the Year Ended December 31, 2023


(Dollars in thousands)
Payment DelayInterest Rate ReductionInterest/Fees ForgivenTotal
December 31, 2023
Personal Banking:
Real estate – personal $1,357 $— $— $1,357 
Consumer— 24 — 24 
Consumer credit card— 332 154 486 
Total $1,357 $356 $154 $1,867 

The following table presents the amortized cost basis at December 31, 2023 of loans that have been modified on or after January 1, 2023 (the date we adopted ASU 2022-02) through December 31, 2023.



(In thousands)
Current
30-89 Days
Past Due
90 Days
Past Due		Total
December 31, 2023
Commercial:
Business$26,941 $1,238 $— $28,179 
Real estate – business102,388 3,161 — 105,549 
Personal Banking:
Real estate – personal 3,303 751 532 4,586 
Consumer233 28 14 275 
Consumer credit card2,071 456 354 2,881 
Total $134,936 $5,634 $900 $141,470 
Troubled debt restructuring disclosures prior to the Company's adoption of ASU 2022-02
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)December 31, 2022
Accruing loans:
Commercial
$184,388 
Assistance programs
5,156 
Other consumer
4,049 
Non-accrual loans
5,078 
Total troubled debt restructurings
$198,671 

The table below shows the balance of troubled debt restructurings by loan classification at December 31, 2022, in addition to the outstanding balances of these restructured loans which the Company considers to have been in default at any time during the 12 months prior to December 31, 2022. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.

(In thousands)December 31, 2022Balance 90 days past due at any time during previous 12 months
Commercial:
Business
$12,311 $— 
Real estate – construction and land
57,547 — 
Real estate – business
118,654 — 
Personal Banking:
Real estate – personal
2,809 419 
Consumer
2,250 268 
Revolving home equity
17 — 
Consumer credit card
5,083 452 
Total troubled debt restructurings
$198,671 $1,139 

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. However, the effects of modifications to loans under various debt management and assistance programs were estimated at December 31, 2022 to decrease interest income by approximately $661 thousand on an annual, pre-tax basis, compared to amounts contractually owed. Performing consumer loans where the debt was not reaffirmed in bankruptcy did not result in a concession, as no changes to loan terms occurred in that process. 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 $12.6 million commitments at December 31, 2022 to lend additional funds to borrowers with restructured loans.

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 19. The loans are primarily sold to FNMA and FHLMC. At December 31, 2023, the fair value of these loans was $1.6 million, and the unpaid principal balance was $1.5 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 December 31, 2023 totaled $2.2 million.

At December 31, 2023, 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 $270 thousand and $96 thousand at December 31, 2023 and 2022, respectively, and included in those amounts were $270 thousand and $96 thousand of foreclosed residential real estate properties held as a result of obtaining physical possession at December 31, 2023 and December 31, 2022, respectively. Personal property acquired in repossession, generally autos, marine and recreational vehicles (RV), totaled $1.8 million and $1.6 million at December 31, 2023 and 2022, 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.