XML 24 R14.htm IDEA: XBRL DOCUMENT v3.24.0.1
Loans and Leases and the Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2023
Loans And Leases And Allowance For Loan And Lease Losses [Abstract]  
Loans and Leases and the Allowance for Credit Losses

Note 4. Loans and Leases and the Allowance for Credit Losses

Loans and Leases

The Company’s loan and lease portfolio was comprised of the following as of December 31, 2023 and December 31, 2022:

 

 

 

December 31,

 

(dollars in thousands)

 

2023

 

 

2022

 

Commercial

 

 

 

 

 

 

Commercial and Industrial

 

$

1,652,699

 

 

$

1,389,066

 

Paycheck Protection Program

 

 

11,369

 

 

 

19,579

 

Commercial Mortgage

 

 

3,749,016

 

 

 

3,725,542

 

Construction

 

 

304,463

 

 

 

260,825

 

Lease Financing

 

 

59,939

 

 

 

69,491

 

Total Commercial

 

 

5,777,486

 

 

 

5,464,503

 

Consumer

 

 

 

 

 

 

Residential Mortgage

 

 

4,684,171

 

 

 

4,653,072

 

Home Equity

 

 

2,264,827

 

 

 

2,225,950

 

Automobile

 

 

837,830

 

 

 

870,396

 

Other 1

 

 

400,712

 

 

 

432,499

 

Total Consumer

 

 

8,187,540

 

 

 

8,181,917

 

Total Loans and Leases

 

$

13,965,026

 

 

$

13,646,420

 

 

1.
Comprised of other revolving credit, installment, and lease financing.

The majority of the Company’s lending activity is with customers located in the State of Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate in Hawaii.

Net gains related to sales of residential mortgage loans, recorded as a component of mortgage banking income, were $0.3 million, $0.2 million, and $7.1 million for the years ended December 31, 2023, December 31, 2022, and December 31, 2021, respectively. Net gains on sales of commercial loans were not material for the years ended December 31, 2023, December 31, 2022, and December 31, 2021.

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this footnote. As of December 31, 2023, and December 31, 2022, accrued interest receivable for loans totaled $48.4 million and $40.1 million, respectively, and is included in the “accrued interest receivable” line item on the Company’s consolidated statements of condition.

Allowance for Credit Losses (the “Allowance”)

The following presents by portfolio segment, the activity in the Allowance for the years ended December 31, 2023, December 31, 2022, and December 31, 2021.

 

(dollars in thousands)

 

Commercial

 

 

Consumer

 

 

Total

 

For the Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses:

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

 

$

63,900

 

 

$

80,539

 

 

$

144,439

 

Loans and Leases Charged-Off

 

 

(987

)

 

 

(13,980

)

 

 

(14,967

)

Recoveries on Loans and Leases Previously Charged-Off

 

 

350

 

 

 

6,799

 

 

 

7,149

 

Net Loans and Leases Recovered (Charged-Off)

 

 

(637

)

 

 

(7,181

)

 

 

(7,818

)

Provision for Credit Losses

 

 

10,811

 

 

 

(1,029

)

 

 

9,782

 

Balance at End of Period

 

$

74,074

 

 

$

72,329

 

 

$

146,403

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses:

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

 

$

64,950

 

 

$

92,871

 

 

$

157,821

 

Loans and Leases Charged-Off

 

 

(925

)

 

 

(12,417

)

 

 

(13,342

)

Recoveries on Loans and Leases Previously Charged-Off

 

 

552

 

 

 

7,671

 

 

 

8,223

 

Net Loans and Leases Recovered (Charged-Off)

 

 

(373

)

 

 

(4,746

)

 

 

(5,119

)

Provision for Credit Losses

 

 

(677

)

 

 

(7,586

)

 

 

(8,263

)

Balance at End of Period

 

$

63,900

 

 

$

80,539

 

 

$

144,439

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2021

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses:

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

 

$

84,847

 

 

$

131,405

 

 

$

216,252

 

Loans and Leases Charged-Off

 

 

(1,117

)

 

 

(16,202

)

 

 

(17,319

)

Recoveries on Loans and Leases Previously Charged-Off

 

 

506

 

 

 

10,848

 

 

 

11,354

 

Net Loans and Leases Recovered (Charged-Off)

 

 

(611

)

 

 

(5,354

)

 

 

(5,965

)

Provision for Credit Losses

 

 

(19,286

)

 

 

(33,180

)

 

 

(52,466

)

Balance at End of Period

 

$

64,950

 

 

$

92,871

 

 

$

157,821

 

 

Credit Quality Indicators

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria (e.g. credit score, loan-to-value, debt-to-income) and monitored primarily on payment performance, are typically risk-rated and monitored collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment.

The following are the definitions of the Company’s credit quality indicators:

 

 

Pass:

Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered Pass if the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered Pass if: a) the home equity loan is in first lien position and the current loan-to-value ratio is 60% or less; or b) the first mortgage is with the Company and the current combined loan-to-value ratio is 60% or less.

 

Special Mention:

Loans and leases in all classes within the commercial portfolio segment that have potential weaknesses that warrant management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The Special Mention credit quality indicator is not used for the consumer portfolio segment.

 

Classified:

Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or applicable collateral, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest (excluding residential mortgage and home equity loans which meet the criteria for being considered Pass). Residential mortgage and home equity loans may be current as to principal and interest, but may be considered Classified for a period of generally up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from Classified status.

 

For Pass rated credits in the commercial portfolio, most risk ratings are certified at a minimum annually. For Special Mention or Classified Credits, risk ratings are reviewed for appropriateness on an ongoing basis, monthly, or at a minimum, quarterly. The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2023.

 

 

 

Term Loans by Origination Year

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

2023 2

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans

 

 

Revolving
Loans
Converted
to Term
Loans

 

 

Total Loans
and Leases

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

319,451

 

 

$

294,142

 

 

$

229,286

 

 

$

148,575

 

 

$

40,696

 

 

$

77,789

 

 

$

380,524

 

 

$

450

 

 

$

1,490,913

 

Special Mention

 

 

50,792

 

 

 

5,555

 

 

 

-

 

 

 

-

 

 

 

657

 

 

 

-

 

 

 

39,278

 

 

 

-

 

 

 

96,282

 

Classified

 

 

11,790

 

 

 

5,846

 

 

 

8,928

 

 

 

6,625

 

 

 

-

 

 

 

9,199

 

 

 

23,103

 

 

 

13

 

 

 

65,504

 

Total Commercial and Industrial

 

$

382,033

 

 

$

305,543

 

 

$

238,214

 

 

$

155,200

 

 

$

41,353

 

 

$

86,988

 

 

$

442,905

 

 

$

463

 

 

$

1,652,699

 

Paycheck Protection Program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

-

 

 

$

-

 

 

$

2,199

 

 

$

9,170

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

11,369

 

Total Paycheck Protection Program

 

$

-

 

 

$

-

 

 

$

2,199

 

 

$

9,170

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

11,369

 

Commercial Mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

788,558

 

 

$

1,043,472

 

 

$

679,258

 

 

$

432,896

 

 

$

244,767

 

 

$

419,225

 

 

$

41,292

 

 

$

-

 

 

$

3,649,468

 

Special Mention

 

 

30,356

 

 

 

18,636

 

 

 

-

 

 

 

3,875

 

 

 

-

 

 

 

9,153

 

 

 

-

 

 

 

-

 

 

 

62,020

 

Classified

 

 

5,829

 

 

 

155

 

 

 

3,724

 

 

 

13,112

 

 

 

535

 

 

 

14,173

 

 

 

-

 

 

 

-

 

 

 

37,528

 

Total Commercial Mortgage

 

$

824,743

 

 

$

1,062,263

 

 

$

682,982

 

 

$

449,883

 

 

$

245,302

 

 

$

442,551

 

 

$

41,292

 

 

$

-

 

 

$

3,749,016

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

77,163

 

 

$

149,183

 

 

$

50,996

 

 

$

-

 

 

$

16,009

 

 

$

-

 

 

$

9,777

 

 

$

-

 

 

$

303,128

 

Special Mention

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,335

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,335

 

Total Construction

 

$

77,163

 

 

$

149,183

 

 

$

50,996

 

 

$

1,335

 

 

$

16,009

 

 

$

-

 

 

$

9,777

 

 

$

-

 

 

$

304,463

 

Lease Financing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

9,867

 

 

$

13,409

 

 

$

13,795

 

 

$

8,493

 

 

$

5,385

 

 

$

7,650

 

 

$

-

 

 

$

-

 

 

$

58,599

 

Classified

 

 

600

 

 

 

51

 

 

 

117

 

 

 

94

 

 

 

-

 

 

 

478

 

 

 

-

 

 

 

-

 

 

 

1,340

 

Total Lease Financing

 

$

10,467

 

 

$

13,460

 

 

$

13,912

 

 

$

8,587

 

 

$

5,385

 

 

$

8,128

 

 

$

-

 

 

$

-

 

 

$

59,939

 

Total Commercial

 

$

1,294,406

 

 

$

1,530,449

 

 

$

988,303

 

 

$

624,175

 

 

$

308,049

 

 

$

537,667

 

 

$

493,974

 

 

$

463

 

 

$

5,777,486

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

297,532

 

 

$

796,979

 

 

$

1,249,917

 

 

$

977,377

 

 

$

303,098

 

 

$

1,057,267

 

 

$

-

 

 

$

-

 

 

$

4,682,170

 

Classified

 

 

-

 

 

 

-

 

 

 

426

 

 

 

-

 

 

 

-

 

 

 

1,575

 

 

 

-

 

 

 

-

 

 

 

2,001

 

Total Residential Mortgage

 

$

297,532

 

 

$

796,979

 

 

$

1,250,343

 

 

$

977,377

 

 

$

303,098

 

 

$

1,058,842

 

 

$

-

 

 

$

-

 

 

$

4,684,171

 

Home Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

43

 

 

$

2,215,970

 

 

$

46,794

 

 

$

2,262,807

 

Classified

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,229

 

 

 

791

 

 

 

2,020

 

Total Home Equity

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

43

 

 

$

2,217,199

 

 

$

47,585

 

 

$

2,264,827

 

Automobile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

250,380

 

 

$

301,968

 

 

$

149,915

 

 

$

64,734

 

 

$

46,396

 

 

$

24,038

 

 

$

-

 

 

$

-

 

 

$

837,431

 

Classified

 

 

84

 

 

 

108

 

 

 

11

 

 

 

46

 

 

 

72

 

 

 

78

 

 

 

-

 

 

 

-

 

 

 

399

 

Total Automobile

 

$

250,464

 

 

$

302,076

 

 

$

149,926

 

 

$

64,780

 

 

$

46,468

 

 

$

24,116

 

 

$

-

 

 

$

-

 

 

$

837,830

 

Other1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

102,563

 

 

$

141,421

 

 

$

92,312

 

 

$

13,074

 

 

$

16,897

 

 

$

32,519

 

 

$

1,277

 

 

$

-

 

 

$

400,063

 

Classified

 

 

65

 

 

 

224

 

 

 

165

 

 

 

22

 

 

 

93

 

 

 

80

 

 

 

-

 

 

 

-

 

 

 

649

 

Total Other

 

$

102,628

 

 

$

141,645

 

 

$

92,477

 

 

$

13,096

 

 

$

16,990

 

 

$

32,599

 

 

$

1,277

 

 

$

-

 

 

$

400,712

 

Total Consumer

 

$

650,624

 

 

$

1,240,700

 

 

$

1,492,746

 

 

$

1,055,253

 

 

$

366,556

 

 

$

1,115,600

 

 

$

2,218,476

 

 

$

47,585

 

 

$

8,187,540

 

Total Loans and Leases

 

$

1,945,030

 

 

$

2,771,149

 

 

$

2,481,049

 

 

$

1,679,428

 

 

$

674,605

 

 

$

1,653,267

 

 

$

2,712,450

 

 

$

48,048

 

 

$

13,965,026

 

 

1.
Comprised of other revolving credit, installment, and lease financing.
2.
Loans reported as Special Mention or Classified in the 2023 column represent renewal of loans that originated in an earlier period.

For the year ended December 31, 2023, $13.2 million in revolving loans were converted to term loans.

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2022.

 

 

 

Term Loans by Origination Year

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

2022

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

Prior

 

 

Revolving
Loans

 

 

Revolving
Loans
Converted
to Term
Loans

 

 

Total Loans
and Leases

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

360,748

 

 

$

348,300

 

 

$

224,264

 

 

$

59,127

 

 

$

46,799

 

 

$

71,906

 

 

$

257,349

 

 

$

155

 

 

$

1,368,648

 

Special Mention

 

 

273

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

96

 

 

 

92

 

 

 

1,357

 

 

 

-

 

 

 

1,818

 

Classified

 

 

7,295

 

 

 

91

 

 

 

1,030

 

 

 

-

 

 

 

1,644

 

 

 

6,267

 

 

 

2,252

 

 

 

21

 

 

 

18,600

 

Total Commercial and Industrial

 

$

368,316

 

 

$

348,391

 

 

$

225,294

 

 

$

59,127

 

 

$

48,539

 

 

$

78,265

 

 

$

260,958

 

 

$

176

 

 

$

1,389,066

 

Paycheck Protection Program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

-

 

 

$

5,359

 

 

$

14,220

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

19,579

 

Total Paycheck Protection Program

 

$

-

 

 

$

5,359

 

 

$

14,220

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

19,579

 

Commercial Mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

1,182,831

 

 

$

771,375

 

 

$

691,054

 

 

$

283,553

 

 

$

131,055

 

 

$

494,924

 

 

$

48,771

 

 

$

-

 

 

$

3,603,563

 

Special Mention

 

 

29,707

 

 

 

37,657

 

 

 

28,105

 

 

 

-

 

 

 

1,482

 

 

 

5,014

 

 

 

-

 

 

 

-

 

 

 

101,965

 

Classified

 

 

182

 

 

 

1,964

 

 

 

8,545

 

 

 

624

 

 

 

-

 

 

 

8,699

 

 

 

-

 

 

 

-

 

 

 

20,014

 

Total Commercial Mortgage

 

$

1,212,720

 

 

$

810,996

 

 

$

727,704

 

 

$

284,177

 

 

$

132,537

 

 

$

508,637

 

 

$

48,771

 

 

$

-

 

 

$

3,725,542

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

124,507

 

 

$

69,992

 

 

$

37,133

 

 

$

16,838

 

 

$

-

 

 

$

297

 

 

$

12,058

 

 

$

-

 

 

$

260,825

 

Total Construction

 

$

124,507

 

 

$

69,992

 

 

$

37,133

 

 

$

16,838

 

 

$

-

 

 

$

297

 

 

$

12,058

 

 

$

-

 

 

$

260,825

 

Lease Financing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

16,959

 

 

$

17,823

 

 

$

11,408

 

 

$

9,768

 

 

$

6,379

 

 

$

6,444

 

 

$

-

 

 

$

-

 

 

$

68,781

 

Classified

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

710

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

710

 

Total Lease Financing

 

$

16,959

 

 

$

17,823

 

 

$

11,408

 

 

$

9,768

 

 

$

7,089

 

 

$

6,444

 

 

$

-

 

 

$

-

 

 

$

69,491

 

Total Commercial

 

$

1,722,502

 

 

$

1,252,561

 

 

$

1,015,759

 

 

$

369,910

 

 

$

188,165

 

 

$

593,643

 

 

$

321,787

 

 

$

176

 

 

$

5,464,503

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

827,909

 

 

$

1,304,831

 

 

$

1,035,285

 

 

$

321,208

 

 

$

138,214

 

 

$

1,023,841

 

 

$

-

 

 

$

-

 

 

$

4,651,288

 

Classified

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

552

 

 

 

1,232

 

 

 

-

 

 

 

-

 

 

 

1,784

 

Total Residential Mortgage

 

$

827,909

 

 

$

1,304,831

 

 

$

1,035,285

 

 

$

321,208

 

 

$

138,766

 

 

$

1,025,073

 

 

$

-

 

 

$

-

 

 

$

4,653,072

 

Home Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

890

 

 

$

2,186,598

 

 

$

36,114

 

 

$

2,223,602

 

Classified

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

25

 

 

 

1,105

 

 

 

1,218

 

 

 

2,348

 

Total Home Equity

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

915

 

 

$

2,187,703

 

 

$

37,332

 

 

$

2,225,950

 

Automobile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

405,440

 

 

$

216,039

 

 

$

100,608

 

 

$

84,052

 

 

$

45,301

 

 

$

18,366

 

 

$

-

 

 

$

-

 

 

$

869,806

 

Classified

 

 

121

 

 

 

260

 

 

 

23

 

 

 

43

 

 

 

92

 

 

 

51

 

 

 

-

 

 

 

-

 

 

 

590

 

Total Automobile

 

$

405,561

 

 

$

216,299

 

 

$

100,631

 

 

$

84,095

 

 

$

45,393

 

 

$

18,417

 

 

$

-

 

 

$

-

 

 

$

870,396

 

Other1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

185,347

 

 

$

124,759

 

 

$

31,343

 

 

$

39,902

 

 

$

16,364

 

 

$

9,853

 

 

$

23,228

 

 

$

1,020

 

 

$

431,816

 

Classified

 

 

117

 

 

 

114

 

 

 

70

 

 

 

148

 

 

 

129

 

 

 

24

 

 

 

59

 

 

 

22

 

 

 

683

 

Total Other

 

$

185,464

 

 

$

124,873

 

 

$

31,413

 

 

$

40,050

 

 

$

16,493

 

 

$

9,877

 

 

$

23,287

 

 

$

1,042

 

 

$

432,499

 

Total Consumer

 

$

1,418,934

 

 

$

1,646,003

 

 

$

1,167,329

 

 

$

445,353

 

 

$

200,652

 

 

$

1,054,282

 

 

$

2,210,990

 

 

$

38,374

 

 

$

8,181,917

 

Total Loans and Leases

 

$

3,141,436

 

 

$

2,898,564

 

 

$

2,183,088

 

 

$

815,263

 

 

$

388,817

 

 

$

1,647,925

 

 

$

2,532,777

 

 

$

38,550

 

 

$

13,646,420

 

 

1.
Comprised of other revolving credit, installment, and lease financing.

For the year ended December 31, 2022, $6.2 million in revolving loans were converted to term loans.

 

Aging Analysis

Loans and leases are considered to be past due once becoming 30 days delinquent. For the consumer portfolio, this generally represents two missed monthly payments. The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of December 31, 2023, and December 31, 2022.

 

(dollars in thousands)

 

30 - 59
Days
Past
Due

 

 

60 - 89
Days
Past
Due

 

 

Past Due
90 Days
or More

 

 

Non-
Accrual

 

 

Total
Past
Due
and
Non-
Accrual

 

 

Current

 

 

Total Loans
and
Leases

 

 

Non-
Accrual
Loans
and
Leases
that
are
Current 2

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

6,748

 

 

$

514

 

 

$

—

 

 

$

39

 

 

$

7,301

 

 

$

1,645,398

 

 

$

1,652,699

 

 

$

36

 

Paycheck Protection Program

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,369

 

 

 

11,369

 

 

 

—

 

Commercial Mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,884

 

 

 

2,884

 

 

 

3,746,132

 

 

 

3,749,016

 

 

 

2,884

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

304,463

 

 

 

304,463

 

 

 

—

 

Lease Financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

59,939

 

 

 

59,939

 

 

 

—

 

Total Commercial

 

 

6,748

 

 

 

514

 

 

 

—

 

 

 

2,923

 

 

 

10,185

 

 

 

5,767,301

 

 

 

5,777,486

 

 

 

2,920

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

4,547

 

 

 

317

 

 

 

3,814

 

 

 

2,935

 

 

 

11,613

 

 

 

4,672,558

 

 

 

4,684,171

 

 

 

867

 

Home Equity

 

 

4,210

 

 

 

1,967

 

 

 

1,734

 

 

 

3,791

 

 

 

11,702

 

 

 

2,253,125

 

 

 

2,264,827

 

 

 

1,101

 

Automobile

 

 

13,242

 

 

 

1,478

 

 

 

399

 

 

 

—

 

 

 

15,119

 

 

 

822,711

 

 

 

837,830

 

 

 

—

 

Other 1

 

 

1,968

 

 

 

1,019

 

 

 

648

 

 

 

—

 

 

 

3,635

 

 

 

397,077

 

 

 

400,712

 

 

 

—

 

Total Consumer

 

 

23,967

 

 

 

4,781

 

 

 

6,595

 

 

 

6,726

 

 

 

42,069

 

 

 

8,145,471

 

 

 

8,187,540

 

 

 

1,968

 

Total

 

$

30,715

 

 

$

5,295

 

 

$

6,595

 

 

$

9,649

 

 

$

52,254

 

 

$

13,912,772

 

 

$

13,965,026

 

 

$

4,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

252

 

 

$

9

 

 

$

—

 

 

$

37

 

 

$

298

 

 

$

1,388,768

 

 

$

1,389,066

 

 

$

37

 

Paycheck Protection Program

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,579

 

 

 

19,579

 

 

 

—

 

Commercial Mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,309

 

 

 

3,309

 

 

 

3,722,233

 

 

 

3,725,542

 

 

 

3,309

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

260,825

 

 

 

260,825

 

 

 

—

 

Lease Financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

69,491

 

 

 

69,491

 

 

 

—

 

Total Commercial

 

 

252

 

 

 

9

 

 

 

—

 

 

 

3,346

 

 

 

3,607

 

 

 

5,460,896

 

 

 

5,464,503

 

 

 

3,346

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

3,016

 

 

 

721

 

 

 

2,429

 

 

 

4,239

 

 

 

10,405

 

 

 

4,642,667

 

 

 

4,653,072

 

 

 

1,729

 

Home Equity

 

 

1,639

 

 

 

960

 

 

 

1,673

 

 

 

4,022

 

 

 

8,294

 

 

 

2,217,656

 

 

 

2,225,950

 

 

 

664

 

Automobile

 

 

13,293

 

 

 

1,988

 

 

 

589

 

 

 

—

 

 

 

15,870

 

 

 

854,526

 

 

 

870,396

 

 

 

—

 

Other 1

 

 

2,318

 

 

 

1,302

 

 

 

683

 

 

 

—

 

 

 

4,303

 

 

 

428,196

 

 

 

432,499

 

 

 

—

 

Total Consumer

 

 

20,266

 

 

 

4,971

 

 

 

5,374

 

 

 

8,261

 

 

 

38,872

 

 

 

8,143,045

 

 

 

8,181,917

 

 

 

2,393

 

Total

 

$

20,518

 

 

$

4,980

 

 

$

5,374

 

 

$

11,607

 

 

$

42,479

 

 

$

13,603,941

 

 

$

13,646,420

 

 

$

5,739

 

 

1.
Comprised of other revolving credit, installment, and lease financing.
2.
Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest as originally structured is still not expected.

 

Non-Accrual Loans and Leases

 

The following presents the non-accrual loans and leases as of December 31, 2023, and December 31, 2022.

 

 

 

December 31, 2023

 

 

December 31, 2022

 

(dollars in thousands)

 

Non-accrual loans with a related ACL

 

 

Non-accrual loans without a related ACL

 

 

Total Non-accrual loans

 

 

Total Non-accrual loans

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

39

 

 

$

—

 

 

$

39

 

 

$

37

 

Commercial Mortgage

 

 

—

 

 

 

2,884

 

 

 

2,884

 

 

 

3,309

 

Total Commercial

 

 

39

 

 

 

2,884

 

 

 

2,923

 

 

 

3,346

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

2,935

 

 

 

—

 

 

 

2,935

 

 

 

4,239

 

Home Equity

 

 

3,791

 

 

 

—

 

 

 

3,791

 

 

 

4,022

 

Total Consumer

 

 

6,726

 

 

 

—

 

 

 

6,726

 

 

 

8,261

 

Total

 

$

6,765

 

 

$

2,884

 

 

$

9,649

 

 

$

11,607

 

 

All payments received while on non-accrual status are applied against the principal balance of the loan or lease. The Company does not recognize interest income while loans or leases are on non-accrual status.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:

Loan Classes

Modification Types

Commercial:

Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.

Residential Mortgage/
Home Equity:

Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term.

Residential Mortgage/
Home Equity:

Term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement.

Automobile/
Direct Installment:

Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement.

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the year ended December 31, 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

%

 

 

 

 

 

 

Payment

 

Term

 

 

 

 

 

 

 

of

 

 

 

 

 

 

Delay

 

Extension and

 

 

 

 

 

 

 

Total

 

 

 

 

Interest

 

and

 

Interest

 

 

 

 

 

 

 

Class of

 

 

Term

 

Rate

 

Term

 

Rate

 

Payment

 

 

 

 

 

Loans and

 

(dollars in thousands)

Extension

 

Reduction

 

Extension1

 

Reduction

 

Delay

 

 

Total

 

 

Leases

 

For the Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

105

 

$

—

 

$

5,509

 

$

—

 

$

1,615

 

 

$

7,229

 

 

 

0.44

%

Commercial Mortgage

 

—

 

 

939

 

 

—

 

 

—

 

 

3,976

 

 

 

4,915

 

 

 

0.13

%

Total Commercial

 

105

 

 

939

 

 

5,509

 

 

—

 

 

5,591

 

 

 

12,144

 

 

 

0.21

%

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

131

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

131

 

 

 

0.00

%

Home Equity

 

133

 

 

—

 

 

—

 

 

616

 

 

—

 

 

 

749

 

 

 

0.03

%

Automobile

 

10,026

 

 

—

 

 

1,179

 

 

—

 

 

—

 

 

 

11,205

 

 

 

1.34

%

Other2

 

1,101

 

 

—

 

 

248

 

 

—

 

 

—

 

 

 

1,349

 

 

 

0.34

%

Total Consumer

 

11,391

 

 

—

 

 

1,427

 

 

616

 

 

—

 

 

 

13,434

 

 

 

0.16

%

Total Loans and Leases

$

11,496

 

$

939

 

$

6,936

 

$

616

 

$

5,591

 

 

$

25,578

 

 

 

0.18

%

1 Includes forbearance plans.

2 Comprised of other revolving credit, installment and lease financing.

 

 

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the year ended December 31, 2023.

 

 

 

Weighted-Average

 

 

Weighted-Average

 

 

Weighted-Average

 

 

Months of

 

 

Payment

 

 

Interest Rate

(dollars in thousands)

 

Term Extension

 

 

Deferral1

 

 

Reduction

For the Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

 

6

 

 

$

1,267

 

 

 

—

 

Commercial Mortgage

 

 

—

 

 

 

39

 

 

 

2.50

 

%

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

58

 

 

$

5

 

 

 

—

 

Home Equity

 

 

107

 

 

 

—

 

 

 

2.88

 

%

Automobile

 

 

21

 

 

 

1

 

 

 

—

 

Other2

 

 

19

 

 

 

1

 

 

 

—

 

1 Includes forbearance plans.

2 Comprised of other revolving credit, installment and lease financing.

 

The following table presents the loan modifications made to borrowers experiencing financial difficulty that defaulted during the year ended December 31, 2023.

 

 

Term

 

 

 

 

(dollars in thousands)

Extension

 

 

Total

 

For the Year Ended December 31, 2023

 

 

 

 

 

Consumer

 

 

 

 

 

Automobile

$

425

 

 

$

425

 

Other1

 

132

 

 

 

132

 

 Total Consumer

 

557

 

 

 

557

 

Total Loans and Leases

$

557

 

 

$

557

 

1 Comprised of other revolving credit, installment and lease financing.

 

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of December 31, 2023.

(dollars in thousands)

 

Current

 

 

30 - 59
Days
Past Due

 

 

60 - 89
Days
Past Due

 

 

Past Due
90 Days
or More

 

 

Non-
Accrual

 

 

Total

 

For the Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

7,142

 

 

$

87

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

7,229

 

Commercial Mortgage

 

 

4,915

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,915

 

 Total Commercial

 

 

12,057

 

 

 

87

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

12,144

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

131

 

 

 

131

 

Home Equity

 

 

133

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

616

 

 

 

749

 

Automobile

 

 

8,884

 

 

 

2,027

 

 

 

158

 

 

 

136

 

 

 

—

 

 

 

11,205

 

Other1

 

 

1,132

 

 

 

115

 

 

 

27

 

 

 

75

 

 

 

—

 

 

 

1,349

 

 Total Consumer

 

 

10,149

 

 

 

2,142

 

 

 

185

 

 

 

211

 

 

 

747

 

 

 

13,434

 

Total Loans and Leases

 

$

22,206

 

 

$

2,229

 

 

$

185

 

 

$

211

 

 

$

747

 

 

$

25,578

 

1 Comprised of other revolving credit, installment and lease financing.

 

The following table presents by loan class and year of origination, the gross charge-offs recorded during the year ended December 31, 2023.

 

(dollars in thousands)

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total

 

For the Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

500

 

 

$

208

 

 

$

—

 

 

$

84

 

 

$

—

 

 

$

195

 

 

$

987

 

Total Commercial

 

500

 

 

 

208

 

 

 

—

 

 

 

84

 

 

 

—

 

 

 

195

 

 

 

987

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

6

 

Home Equity

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

13

 

 

 

69

 

 

 

82

 

Automobile

 

261

 

 

 

1,299

 

 

 

1,354

 

 

 

608

 

 

 

746

 

 

 

979

 

 

 

5,247

 

Other1

 

1,415

 

 

 

2,551

 

 

 

1,841

 

 

 

364

 

 

 

1,269

 

 

 

1,205

 

 

 

8,645

 

Total Consumer

 

1,676

 

 

 

3,850

 

 

 

3,195

 

 

 

972

 

 

 

2,028

 

 

 

2,259

 

 

 

13,980

 

Total

$

2,176

 

 

$

4,058

 

 

$

3,195

 

 

$

1,056

 

 

$

2,028

 

 

$

2,454

 

 

$

14,967

 

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $4.9 million as of December 31, 2023.