Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Allowance for Credit Losses

Schedule of activity in the allowance by class of loans and lease

	Three Months Ended March 31, 2023
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Allowance for credit losses:
Balance at beginning of period	$	14,564	$	43,810	$	5,843	$	1,551	$	35,175	$	8,296	$	34,661	$	143,900
Charge-offs		(791)		—		—		—		(122)		(135)		(4,782)		(5,830)
Recoveries		246		—		—		—		27		177		2,166		2,616
Provision		19		(3,499)		630		(70)		(760)		1,003		9,113		6,436
Balance at end of period	$	14,038	$	40,311	$	6,473	$	1,481	$	34,320	$	9,341	$	41,158	$	147,122

	Three Months Ended March 31, 2022
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Allowance for credit losses:
Balance at beginning of period	$	20,080	$	42,951	$	9,773	$	1,659	$	34,364	$	5,642	$	42,793	$	157,262
Charge-offs		(706)		—		—		—		—		(43)		(4,109)		(4,858)
Recoveries		53		14		—		—		16		28		2,148		2,259
Provision		(267)		2,273		(865)		(297)		(3,492)		(543)		(1,192)		(4,383)
Balance at end of period	$	19,160	$	45,238	$	8,908	$	1,362	$	30,888	$	5,084	$	39,640	$	150,280

Schedule of activity in the Liability for Credit Losses for Off-Balance-Sheet Financial Instruments

	Three Months Ended March 31, 2023
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Reserve for unfunded commitments:
Balance at beginning of period	$	7,811	$	2,004	$	7,470	$	—	$	30	$	16,483	$	37	$	33,835
Provision		(658)		(312)		1,482		—		(13)		1,853		12		2,364
Balance at end of period	$	7,153	$	1,692	$	8,952	$	—	$	17	$	18,336	$	49	$	36,199

	Three Months Ended March 31, 2022
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Reserve for unfunded commitments:
Balance at beginning of period	$	8,615	$	2,114	$	8,963	$	—	$	15	$	10,546	$	69	$	30,322
Provision		693		(325)		(917)		—		(12)		(780)		(23)		(1,364)
Balance at end of period	$	9,308	$	1,789	$	8,046	$	—	$	3	$	9,766	$	46	$	28,958

Schedule of amortized cost basis by year of origination and credit quality indicator

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of March 31, 2023 was as follows:

															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	66,587	$	338,534	$	412,459	$	48,560	$	167,698	$	178,991	$	921,651	$	13,566	$	2,148,046
Special Mention		152		16,591		202		994		2,526		1,548		2,557		283		24,853
Substandard		—		594		274		1,058		958		1,422		11,043		41		15,390
Other (1)		5,223		14,426		6,965		3,780		3,312		2,287		44,050		—		80,043
Total Commercial and Industrial		71,962		370,145		419,900		54,392		174,494		184,248		979,301		13,890		2,268,332
Current period gross charge-offs		—		60		—		—		20		711		—		—		791
Commercial Real Estate
Risk rating:
Pass		105,554		880,292		661,523		321,162		521,596		1,533,711		56,034		—		4,079,872
Special Mention		—		163		—		551		7,031		11,490		659		—		19,894
Substandard		—		—		—		172		—		5,808		305		—		6,285
Other (1)		—		—		—		—		—		149		—		—		149
Total Commercial Real Estate		105,554		880,455		661,523		321,885		528,627		1,551,158		56,998		—		4,106,200
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Construction
Risk rating:
Pass		15,219		152,263		333,608		89,515		103,855		141,243		20,349		—		856,052
Special Mention		—		—		—		—		213		—		—		—		213
Substandard		—		—		—		—		—		486		—		—		486
Other (1)		817		29,615		16,206		2,991		2,160		4,478		941		—		57,208
Total Construction		16,036		181,878		349,814		92,506		106,228		146,207		21,290		—		913,959
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Lease Financing
Risk rating:
Pass		51,664		99,102		22,653		42,081		37,333		72,254		—		—		325,087
Special Mention		—		—		388		82		—		—		—		—		470
Substandard		—		—		—		184		9		1,372		—		—		1,565
Total Lease Financing		51,664		99,102		23,041		42,347		37,342		73,626		—		—		327,122
Current period gross charge-offs		—		—		—		—		—		—		—		—		—
Total Commercial Lending	$	245,216	$	1,531,580	$	1,454,278	$	511,130	$	846,691	$	1,955,239	$	1,057,589	$	13,890	$	7,615,613
Current period gross charge-offs	$	—	$	60	$	—	$	—	$	20	$	711	$	—	$	—	$	791

(continued)

															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	61,686	$	550,291	$	1,044,555	$	546,035	$	235,535	$	1,057,166	$	—	$	—	$	3,495,268
680 - 739		11,937		75,088		118,790		86,202		35,379		145,363		—		—		472,759
620 - 679		2,776		11,464		17,424		9,946		9,243		36,678		—		—		87,531
550 - 619		—		2,613		2,865		2,447		825		12,487		—		—		21,237
Less than 550		—		530		2,445		1,498		275		7,276		—		—		12,024
No Score (3)		4,909		19,766		14,573		6,773		10,494		61,168		—		—		117,683
Other (2)		4,425		18,205		18,013		13,511		9,064		35,164		13,306		552		112,240
Total Residential Mortgage		85,733		677,957		1,218,665		666,412		300,815		1,355,302		13,306		552		4,318,742
Current period gross charge-offs		—		—		—		—		—		122		—		—		122
Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		824,038		1,304		825,342
680 - 739		—		—		—		—		—		—		190,187		2,440		192,627
620 - 679		—		—		—		—		—		—		52,239		1,728		53,967
550 - 619		—		—		—		—		—		—		12,734		1,566		14,300
Less than 550		—		—		—		—		—		—		5,370		661		6,031
No Score (3)		—		—		—		—		—		—		3,098		—		3,098
Total Home Equity Line		—		—		—		—		—		—		1,087,666		7,699		1,095,365
Current period gross charge-offs		—		—		—		—		—		—		116		19		135
Total Residential Lending	$	85,733	$	677,957	$	1,218,665	$	666,412	$	300,815	$	1,355,302	$	1,100,972	$	8,251	$	5,414,107
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	122	$	116	$	19	$	257
Consumer Lending
FICO:
740 and greater		40,337		158,451		96,174		46,618		37,211		24,636		114,058		161		517,646
680 - 739		23,366		97,741		56,306		29,741		24,169		15,970		70,708		441		318,442
620 - 679		7,022		44,839		26,924		12,728		14,484		11,731		33,772		860		152,360
550 - 619		750		10,172		9,698		6,475		7,647		7,519		11,937		855		55,053
Less than 550		122		4,446		5,400		4,078		4,951		4,518		4,329		526		28,370
No Score (3)		866		2,376		8		—		16		36		36,396		167		39,865
Other (2)		76		1,588		4,060		348		1,136		—		72,608		—		79,816
Total Consumer Lending	$	72,539	$	319,613	$	198,570	$	99,988	$	89,614	$	64,410	$	343,808	$	3,010	$	1,191,552
Current period gross charge-offs	$	—	$	635	$	681	$	312	$	614	$	867	$	1,471	$	202	$	4,782
Total Loans and Leases	$	403,488	$	2,529,150	$	2,871,513	$	1,277,530	$	1,237,120	$	3,374,951	$	2,502,369	$	25,151	$	14,221,272
Current period gross charge-offs	$	—	$	695	$	681	$	312	$	634	$	1,700	$	1,587	$	221	$	5,830

(1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.

(2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.

(3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of December 31, 2022 was as follows:

															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2022		2021		2020		2019		2018		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	359,881	$	422,567	$	54,656	$	170,222	$	51,476	$	137,257	$	894,384	$	15,715	$	2,106,158
Special Mention		2,059		240		1,371		2,643		184		1,431		22,897		378		31,203
Substandard		625		289		1,117		1,092		668		885		14,733		65		19,474
Other (1)		17,679		7,721		4,329		3,965		1,881		1,167		42,320		—		79,062
Total Commercial and Industrial		380,244		430,817		61,473		177,922		54,209		140,740		974,334		16,158		2,235,897
Commercial Real Estate
Risk rating:
Pass		889,583		695,882		319,838		565,587		395,474		1,173,163		48,081		—		4,087,608
Special Mention		170		—		555		14,878		512		11,398		675		—		28,188
Substandard		—		—		173		—		1,704		14,485		—		—		16,362
Other (1)		—		—		—		—		—		151		—		—		151
Total Commercial Real Estate		889,753		695,882		320,566		580,465		397,690		1,199,197		48,756		—		4,132,309
Construction
Risk rating:
Pass		124,464		261,536		96,423		97,000		88,973		84,704		25,957		—		779,057
Special Mention		—		—		—		221		—		—		—		—		221
Substandard		—		—		—		—		21		490		—		—		511
Other (1)		29,694		21,339		4,686		2,201		3,784		2,196		954		—		64,854
Total Construction		154,158		282,875		101,109		99,422		92,778		87,390		26,911		—		844,643
Lease Financing
Risk rating:
Pass		113,563		24,052		43,497		37,502		6,004		67,687		—		—		292,305
Special Mention		—		411		2,498		1,299		—		—		—		—		4,208
Substandard		—		—		197		12		11		1,357		—		—		1,577
Total Lease Financing		113,563		24,463		46,192		38,813		6,015		69,044		—		—		298,090
Total Commercial Lending	$	1,537,718	$	1,434,037	$	529,340	$	896,622	$	550,692	$	1,496,371	$	1,050,001	$	16,158	$	7,510,939

(continued)

															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2022		2021		2020		2019		2018		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	557,636	$	1,064,444	$	560,463	$	245,241	$	165,258	$	920,100	$	—	$	—	$	3,513,142
680 - 739		73,929		112,672		82,416		40,355		22,126		130,508		—		—		462,006
620 - 679		12,320		13,804		9,881		3,649		3,054		35,441		—		—		78,149
550 - 619		2,455		2,246		1,791		263		601		6,955		—		—		14,311
Less than 550		—		1,321		367		—		966		5,304		—		—		7,958
No Score (3)		22,289		14,671		6,820		10,599		15,921		47,245		—		—		117,545
Other (2)		18,970		18,211		15,287		9,201		9,124		29,128		9,202		554		109,677
Total Residential Mortgage		687,599		1,227,369		677,025		309,308		217,050		1,174,681		9,202		554		4,302,788
Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		817,123		2,059		819,182
680 - 739		—		—		—		—		—		—		171,117		2,714		173,831
620 - 679		—		—		—		—		—		—		45,368		2,100		47,468
550 - 619		—		—		—		—		—		—		7,485		1,029		8,514
Less than 550		—		—		—		—		—		—		1,151		481		1,632
No Score (3)		—		—		—		—		—		—		4,724		—		4,724
Total Home Equity Line		—		—		—		—		—		—		1,046,968		8,383		1,055,351
Total Residential Lending		687,599		1,227,369		677,025		309,308		217,050		1,174,681		1,056,170		8,937		5,358,139
Consumer Lending
FICO:
740 and greater		200,887		111,047		53,534		43,912		24,951		8,432		125,126		185		568,074
680 - 739		99,787		67,140		37,260		31,751		15,874		7,665		72,101		514		332,092
620 - 679		25,949		29,587		14,226		16,872		9,672		6,488		31,854		937		135,585
550 - 619		3,017		5,475		5,226		8,056		5,396		3,924		11,269		854		43,217
Less than 550		656		1,351		2,286		3,779		1,869		1,593		3,541		443		15,518
No Score (3)		3,205		258		—		51		24		29		38,805		227		42,599
Other (2)		1,615		4,082		353		1,368		—		—		78,430		1		85,849
Total Consumer Lending		335,116		218,940		112,885		105,789		57,786		28,131		361,126		3,161		1,222,934
Total Loans and Leases	$	2,560,433	$	2,880,346	$	1,319,250	$	1,311,719	$	825,528	$	2,699,183	$	2,467,297	$	28,256	$	14,092,012

(1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.

(2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.

(3) No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

Schedule of aging analyses of past due loans and leases

	March 31, 2023
	Past Due												Loans and
					Greater								Leases Past
					Than or								Due 90 Days
	30-59		60-89		Equal to								or More and
	Days		Days		90 Days		Total				Total Loans		Still Accruing
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		and Leases		Interest
Commercial and industrial	$	2,766	$	5	$	1,617	$	4,388	$	2,263,944	$	2,268,332	$	461
Commercial real estate		3,421		—		2,073		5,494		4,100,706		4,106,200		1,346
Construction		901		—		102		1,003		912,956		913,959		102
Lease financing		24		—		—		24		327,098		327,122		—
Residential mortgage		893		2,355		4,399		7,647		4,311,095		4,318,742		58
Home equity line		4,149		898		2,343		7,390		1,087,975		1,095,365		—
Consumer		22,769		1,617		2,503		26,889		1,164,663		1,191,552		2,502
Total	$	34,923	$	4,875	$	13,037	$	52,835	$	14,168,437	$	14,221,272	$	4,469

	December 31, 2022
	Past Due												Loans and
					Greater								Leases Past
					Than or								Due 90 Days
	30-59		60-89		Equal to								or More and
	Days		Days		90 Days		Total				Total Loans		Still Accruing
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		and Leases		Interest
Commercial and industrial	$	2,682	$	769	$	1,441	$	4,892	$	2,231,005	$	2,235,897	$	291
Commercial real estate		4,505		—		727		5,232		4,127,077		4,132,309		—
Construction		109		—		—		109		844,534		844,643		—
Lease financing		—		—		—		—		298,090		298,090		—
Residential mortgage		3,681		1,983		2,572		8,236		4,294,552		4,302,788		58
Home equity line		5,161		1,381		2,072		8,614		1,046,737		1,055,351		—
Consumer		29,927		6,801		2,886		39,614		1,183,320		1,222,934		2,885
Total	$	46,065	$	10,934	$	9,698	$	66,697	$	14,025,315	$	14,092,012	$	3,234

Schedule of amortized cost basis of loans and leases on nonaccrual status

	March 31, 2023
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	633	$	1,158
Commercial real estate		727		727
Residential mortgage		1,551		6,896
Home equity line		596		4,903
Total Nonaccrual Loans and Leases	$	3,507	$	13,684

	December 31, 2022
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	665	$	1,215
Commercial real estate		727		727
Residential mortgage		1,560		6,166
Home equity line		596		3,797
Total Nonaccrual Loans and Leases	$	3,548	$	11,905

Schedule of loans modified to borrowers experiencing financial difficulty

		Interest Rate Reduction
		Three Months Ended
		March 31, 2023
		Amortized	% of Total Class
(dollars in thousands)		Cost Basis	of Financing Receivable
Commercial real estate	$	4	n/m	%
Consumer		358	0.03
Total	$	362	n/m	%

n/m – Represents less than 0.01% of total class of financing receivable.

		Term Extension
		Three Months Ended
		March 31, 2023
		Amortized	% of Total Class
(dollars in thousands)		Cost Basis	of Financing Receivable
Commercial and industrial	$	96	n/m	%
Construction		231	0.03
Residential mortgage		34	n/m
Consumer		71	0.01
Total	$	432	n/m	%

Schedule of financial effect of the modifications made to borrowers experiencing financial difficulty

	Interest Rate Reduction
	Financial Effect
	Three Months Ended March 31, 2023
Commercial real estate	Reduced weighted-average contractual interest rate by 0.75%.
Consumer	Reduced weighted-average contractual interest rate by 13.51%.

	Term Extension
	Financial Effect
	Three Months Ended March 31, 2023
Commercial and industrial	Added a weighted-average 3.0 years to the life of loans.
Construction	Added a weighted-average 2.9 years to the life of loans.
Residential mortgage	Added a weighted-average 5.9 years to the life of loans.
Consumer	Added a weighted-average 4.6 years to the life of loans.

Schedule of amortized cost basis of modified loans that subsequently defaulted

	Three Months Ended March 31, 2023
	Amortized Cost Basis of Modified Loans That Subsequently Defaulted
(dollars in thousands)	Interest Rate Reduction
Consumer	$	10
Total	$	10

Schedule of aging analysis of the amortized cost basis of the performance of loans that have been modified in the last 12 months

		March 31, 2023
		Past Due
						Greater Than
						or Equal to
		30-59 Days		60-89 Days		90 Days		Total
(dollars in thousands)		Past Due		Past Due		Past Due		Past Due		Current		Total
Commercial and industrial	$	—	$	—	$	—	$	—	$	96	$	96
Commercial real estate		—		—		—		—		4		4
Construction		—		—		—		—		231		231
Residential mortgage		—		—		—		—		34		34
Consumer		9		—		—		9		420		429
Total	$	9	$	—	$	—	$	9	$	785	$	794

Schedule of Receivables, Troubled Debt Restructurings by Creditors

	Three Months Ended
	March 31, 2022
	Number of	Recorded		Related
(dollars in thousands)	Contracts(1)	Investment(2)		ACL
Consumer	144	$	1,759	$	202
Total	144	$	1,759	$	202

(1) The number of contracts does not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.

(2) The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Schedule of TDRs that defaulted in period within 12 months of their permanent modification date

	Three Months Ended
	March 31, 2022
	Number of	Recorded
(dollars in thousands)	Contracts(1)	Investment(2)
Commercial and industrial	1	$	216
Consumer	142		1,991
Total	143	$	2,207

(1) The number of contracts does not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.

(2) The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.