Loans and Leases and the Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2024

Loans And Leases And Allowance For Loan And Lease Losses [Abstract]

Schedule of Loan and Lease Portfolio

The Company’s loan and lease portfolio was comprised of the following as of September 30, 2024 and December 31, 2023:

(dollars in thousands)	September 30, 2024		December 31, 2023
Commercial
Commercial Mortgage	$	3,868,566	$	3,749,016
Commercial and Industrial		1,675,347		1,652,699
Construction		319,150		304,463
Lease Financing		60,665		59,939
Paycheck Protection Program		6,346		11,369
Total Commercial		5,930,074		5,777,486
Consumer
Residential Mortgage		4,622,677		4,684,171
Home Equity		2,195,844		2,264,827
Automobile		786,910		837,830
Other 1		383,078		400,712
Total Consumer		7,988,509		8,187,540
Total Loans and Leases	$	13,918,583	$	13,965,026

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

Schedule of Activity in Allowance by Portfolio Segment

The following presents by portfolio segment, the activity in the Allowance for the three and nine months ended September 30, 2024 and 2023.

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended September 30, 2024
Allowance for Credit Losses:
Balance at Beginning of Period	$	80,085		$	67,392		$	147,477
Loans and Leases Charged-Off		(1,021	)		(4,315	)		(5,336	)
Recoveries on Loans and Leases Previously Charged-Off		66			1,440			1,506
Net Loans and Leases Charged-Off		(955	)		(2,875	)		(3,830	)
Provision for Credit Losses		2,825			859			3,684
Balance at End of Period	$	81,955		$	65,376		$	147,331
Nine Months Ended September 30, 2024
Allowance for Credit Losses:
Balance at Beginning of Period	$	74,074		$	72,329		$	146,403
Loans and Leases Charged-Off		(2,256	)		(11,665	)		(13,921	)
Recoveries on Loans and Leases Previously Charged-Off		445			3,972			4,417
Net Loans and Leases Charged-Off		(1,811	)		(7,693	)		(9,504	)
Provision for Credit Losses		9,692			740			10,432
Balance at End of Period	$	81,955		$	65,376		$	147,331
Three Months Ended September 30, 2023
Allowance for Credit Losses:
Balance at Beginning of Period	$	63,941		$	81,426		$	145,367
Loans and Leases Charged-Off		(294	)		(3,323	)		(3,617	)
Recoveries on Loans and Leases Previously Charged-Off		72			1,496			1,568
Net Loans and Leases Charged-Off		(222	)		(1,827	)		(2,049	)
Provision for Credit Losses		4,283			(2,338	)		1,945
Balance at End of Period	$	68,002		$	77,261		$	145,263
Nine Months Ended September 30, 2023
Allowance for Credit Losses:
Balance at Beginning of Period	$	63,900		$	80,539		$	144,439
Loans and Leases Charged-Off		(758	)		(10,679	)		(11,437	)
Recoveries on Loans and Leases Previously Charged-Off		225			5,118			5,343
Net Loans and Leases Charged-Off		(533	)		(5,561	)		(6,094	)
Provision for Credit Losses		4,635			2,283			6,918
Balance at End of Period	$	68,002		$	77,261		$	145,263

Schedule of Recorded Investment in Loans and Leases by Class and Credit Quality Indicator

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 September 30, 2024.

		Term Loans by Origination Year
(dollars in thousands)	2024 2			2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
September 30, 2024
Commercial
Commercial and Industrial
Pass		$	285,962	$	292,777	$	245,738	$	154,663	$	136,087	$	90,848	$	366,971	$	304	$	1,573,350
Special Mention			485		380		—		—		—		—		43,129		—		43,994
Classified			306		16,111		4,069		4,970		6,607		8,429		17,504		7		58,003
Total Commercial and Industrial		$	286,753	$	309,268	$	249,807	$	159,633	$	142,694	$	99,277	$	427,604	$	311	$	1,675,347
Paycheck Protection Program
Pass		$	—	$	—	$	—	$	579	$	5,767	$	—	$	—	$	—	$	6,346
Total Paycheck Protection Program		$	—	$	—	$	—	$	579	$	5,767	$	—	$	—	$	—	$	6,346
Commercial Mortgage
Pass		$	196,564	$	655,229	$	1,081,869	$	646,371	$	409,854	$	610,725	$	44,409	$	—	$	3,645,021
Special Mention			32,508		47,868		1,932		3,377		2,948		15,818		—		—		104,451
Classified			35,859		17,020		24,744		3,167		19,784		18,520		—		—		119,094
Total Commercial Mortgage		$	264,931	$	720,117	$	1,108,545	$	652,915	$	432,586	$	645,063	$	44,409	$	—	$	3,868,566
Construction
Pass		$	78,889	$	127,136	$	100,125	$	1,390	$	1,291	$	—	$	7,775	$	—	$	316,606
Classified			—		—		2,544		—		—		—		—		—		2,544
Total Construction		$	78,889	$	127,136	$	102,669	$	1,390	$	1,291	$	—	$	7,775	$	—	$	319,150
Lease Financing
Pass		$	14,788	$	8,567	$	10,265	$	10,585	$	6,078	$	9,255	$	—	$	—	$	59,538
Classified			—		519		40		90		69		409		—		—		1,127
Total Lease Financing		$	14,788	$	9,086	$	10,305	$	10,675	$	6,147	$	9,664	$	—	$	—	$	60,665
Total Commercial		$	645,361	$	1,165,607	$	1,471,326	$	825,192	$	588,485	$	754,004	$	479,788	$	311	$	5,930,074
Consumer
Residential Mortgage
Pass		$	165,448	$	278,126	$	765,135	$	1,201,147	$	937,449	$	1,271,855	$	—	$	—	$	4,619,160
Classified			—		—		858		426		735		1,498		—		—		3,517
Total Residential Mortgage		$	165,448	$	278,126	$	765,993	$	1,201,573	$	938,184	$	1,273,353	$	—	$	—	$	4,622,677
Home Equity
Pass		$	—	$	—	$	—	$	—	$	—	$	41	$	2,139,055	$	53,491	$	2,192,587
Classified			—		—		—		—		—		—		2,769		488		3,257
Total Home Equity		$	—	$	—	$	—	$	—	$	—	$	41	$	2,141,824	$	53,979	$	2,195,844
Automobile
Pass		$	166,406	$	204,222	$	232,226	$	107,309	$	41,428	$	34,739	$	—	$	—	$	786,330
Classified			50		174		169		104		4		79		—		—		580
Total Automobile		$	166,456	$	204,396	$	232,395	$	107,413	$	41,432	$	34,818	$	—	$	—	$	786,910
Other 1
Pass		$	91,624	$	82,046	$	106,876	$	60,569	$	6,706	$	33,564	$	1,139	$	—	$	382,524
Classified			44		111		206		115		26		52		—		—		554
Total Other		$	91,668	$	82,157	$	107,082	$	60,684	$	6,732	$	33,616	$	1,139	$	—	$	383,078
Total Consumer		$	423,572	$	564,679	$	1,105,470	$	1,369,670	$	986,348	$	1,341,828	$	2,142,963	$	53,979	$	7,988,509
Total Loans and Leases		$	1,068,933	$	1,730,286	$	2,576,796	$	2,194,862	$	1,574,833	$	2,095,832	$	2,622,751	$	54,290	$	13,918,583

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

2.Loans reported as Special Mention and Classified in the 2024 column represent renewal of loans that originated in an earlier period.

During the nine months ended September 30, 2024, $9.4 million of 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, 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
Other 1
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.

Schedule of Aging Analysis by Class of Loan and Lease Portfolio

The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of September 30, 2024 and December 31, 2023.

(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
As of September 30, 2024
Commercial
Commercial Mortgage	$	459	$	—	$	—	$	2,680	$	3,139	$	3,865,427	$	3,868,566	$	2,450
Commercial and Industrial		942		458		—		6,218		7,618		1,667,729		1,675,347		8
Construction		—		—		—		—		—		319,150		319,150		—
Lease Financing		—		—		—		—		—		60,665		60,665		—
Paycheck Protection Program		—		—		—		—		—		6,346		6,346		—
Total Commercial		1,401		458		—		8,898		10,757		5,919,317		5,930,074		2,458
Consumer
Residential Mortgage		6,160		1,524		4,421		4,269		16,374		4,606,303		4,622,677		—
Home Equity		4,931		2,698		1,980		3,947		13,556		2,182,288		2,195,844		899
Automobile		13,555		1,449		580		—		15,584		771,326		786,910		—
Other 1		2,480		927		554		—		3,961		379,117		383,078		—
Total Consumer		27,126		6,598		7,535		8,216		49,475		7,939,034		7,988,509		899
Total	$	28,527	$	7,056	$	7,535	$	17,114	$	60,232	$	13,858,351	$	13,918,583	$	3,357
As of December 31, 2023
Commercial
Commercial Mortgage	$	—	$	—	$	—	$	2,884	$	2,884	$	3,746,132	$	3,749,016	$	2,884
Commercial and Industrial		6,748		514		—		39		7,301		1,645,398		1,652,699		36
Construction		—		—		—		—		—		304,463		304,463		—
Lease Financing		—		—		—		—		—		59,939		59,939		—
Paycheck Protection Program		—		—		—		—		—		11,369		11,369		—
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

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 is still not expected.

Schedule of Non-Accrual Loans and Leases

The following presents the non-accrual loans and leases as of September 30, 2024 and December 31, 2023.

	September 30, 2024						December 31, 2023
(dollars in thousands)	Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans		Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans
Commercial
Commercial and Industrial	$	5,264	$	954	$	6,218	$	39	$	—	$	39
Commercial Mortgage		230		2,450		2,680		—		2,884		2,884
Total Commercial		5,494		3,404		8,898		39		2,884		2,923
Consumer
Residential Mortgage		4,269		—		4,269		2,935		—		2,935
Home Equity		3,947		—		3,947		3,791		—		3,791
Total Consumer		8,216		—		8,216		6,726		—		6,726
Total	$	13,710	$	3,404	$	17,114	$	6,765	$	2,884	$	9,649

Schedule of Amortized Cost Basis and Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during three and nine months ended September 30, 2024 and 2023.

					Payment						% of Total
			Interest		Delay						Class of
	Term		Rate		and Term		Payment				Loans and
(dollars in thousands)	Extension		Reduction		Extension1		Delay		Total		Leases
Three Months Ended September 30, 2024
Commercial
Commercial and Industrial	$	11	$	—	$	—	$	—	$	11		0.00	%
Total Commercial		11		—		—		—		11		0.00	%
Consumer
Automobile		3,862		—		—		—		3,862		0.49	%
Other 2		635		—		—		—		635		0.17	%
Total Consumer		4,497		—		—		—		4,497		0.06	%
Total Loans and Leases	$	4,508	$	—	$	—	$	—	$	4,508		0.03	%
Nine Months Ended September 30, 2024
Commercial
Commercial and Industrial	$	35	$	—	$	4,432	$	—	$	4,467		0.27	%
Total Commercial		35		—		4,432		—		4,467		0.08	%
Consumer
Residential Mortgage		—		—		—		14,718		14,718		0.32	%
Home Equity		—		—		—		1,116		1,116		0.05	%
Automobile		12,184		—		917		—		13,101		1.66	%
Other 2		1,498		—		95		—		1,593		0.42	%
Total Consumer		13,682		—		1,012		15,834		30,528		0.38	%
Total Loans and Leases	$	13,717	$	—	$	5,444	$	15,834	$	34,995		0.25	%
Three Months Ended September 30, 2023
Commercial
Commercial and Industrial	$	19	$	—	$	—	$	—	$	19		0.00	%
Total Commercial		19		—		—		—		19		0.00	%
Consumer
Residential Mortgage		—		—		—		715		715		0.02	%
Automobile		3,231		—		—		—		3,231		0.38	%
Other 2		373		—		—		—		373		0.09	%
Total Consumer		3,604		—		—		715		4,319		0.05	%
Total Loans and Leases	$	3,623	$	—	$	—	$	715	$	4,338		0.03	%
Nine Months Ended September 30, 2023
Commercial
Commercial and Industrial	$	109	$	—	$	6,102	$	—	$	6,211		0.40	%
Commercial Mortgage		—		946		—		—		946		0.02	%
Total Commercial		109		946		6,102		—		7,157		0.13	%
Consumer
Residential Mortgage		132		—		—		715		847		0.02	%
Home Equity		136		—		—		—		136		0.01	%
Automobile		7,428		—		—		—		7,428		0.87	%
Other 2		732		—		—		—		732		0.18	%
Total Consumer		8,428		—		—		715		9,143		0.11	%
Total Loans and Leases	$	8,537	$	946	$	6,102	$	715	$	16,300		0.12	%

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 three and nine months ended September 30, 2024 and 2023.

	Weighted-Average		Weighted-Average		Weighted-Average
	Months of		Payment		Interest Rate
(dollars in thousands)	Term Extension		Deferral1		Reduction
Three Months Ended September 30, 2024
Commercial
Commercial and Industrial		22	$	—		—	%
Consumer
Automobile		22		—		—
Other 2		22		—		—
Nine Months Ended September 30, 2024
Commercial
Commercial and Industrial		12	$	593		—	%
Consumer
Residential Mortgage		—		13		—
Home Equity		—		7		—
Automobile		22		2		—
Other 2		21		1		—
Three Months Ended September 30, 2023
Commercial
Commercial and Industrial		31	$	—		—	%
Commercial Mortgage		—		—		2.50
Consumer
Residential Mortgage		—		5		—
Automobile		22		—		—
Other 2		23		—		—
Nine Months Ended September 30, 2023
Commercial
Commercial and Industrial		6	$	1,159		—	%
Commercial Mortgage		—		—		2.50
Consumer
Residential Mortgage		58		5		—
Home Equity		60		—		—
Automobile		23		—		—
Other 2		22		—		—

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 three and nine months ended September 30, 2024 and 2023.

	Term
(dollars in thousands)	Extension		Payment Delay1		Total
Three Months Ended September 30, 2024
Consumer
Automobile	$	536	$	112	$	648
Other 2		209		1		210
Total Consumer		745		113		858
Total Loans and Leases	$	745	$	113	$	858
Nine Months Ended September 30, 2024
Commercial
Commercial and Industrial	$	—	$	32	$	32
Total Commercial		—		32		32
Consumer
Automobile		704		119		823
Other 2		217		1		218
Total Consumer		921		120		1,041
Total Loans and Leases	$	921	$	152	$	1,073
Three Months Ended September 30, 2023
Consumer
Residential Mortgage	$	—	$	715	$	715
Automobile		10		—		10
Total Consumer		10		715		725
Total Loans and Leases	$	10	$	715	$	725
Nine Months Ended September 30, 2023
Consumer
Residential Mortgage	$	—	$	715	$	715
Automobile		140		—		140
Other 2		65		—		65
Total Consumer		205		715		920
Total Loans and Leases	$	205	$	715	$	920

1.Includes forbearance plans.

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

Schedule of Aging Analysis of Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of September 30, 2024 and 2023.

(dollars in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non- Accrual		Total
As of September 30, 2024
Commercial
Commercial and Industrial	$	4,467	$	—	$	—	$	—	$	—	$	4,467
Total Commercial		4,467		—		—		—		—		4,467
Consumer
Residential Mortgage		14,718		—		—		—		—		14,718
Home Equity		1,055		—		—		—		61		1,116
Automobile		10,977		1,783		225		116		—		13,101
Other 1		1,326		115		75		77		—		1,593
Total Consumer		28,076		1,898		300		193		61		30,528
Total Loans and Leases	$	32,543	$	1,898	$	300	$	193	$	61	$	34,995
As of September 30, 2023
Commercial
Commercial and Industrial	$	6,121	$	90	$	—	$	—	$	—	$	6,211
Commercial Mortgage		946		—		—		—		—		946
Total Commercial		7,067		90		—		—		—		7,157
Consumer
Residential Mortgage		—		—		—		—		847		847
Home Equity		136		—		—		—		—		136
Automobile		6,505		793		102		28		—		7,428
Other 1		584		95		31		22		—		732
Total Consumer		7,225		888		133		50		847		9,143
Total Loans and Leases	$	14,292	$	978	$	133	$	50	$	847	$	16,300

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

Schedule of Loan Class and Year of Origination, Gross Charge-offs Recorded

The following table presents by loan class and year of origination, the gross charge-offs recorded during the nine months ended September 30, 2024 and 2023.

(dollars in thousands)	2024		2023		2022		2021		2020		Prior		Total
Nine Months Ended September 30, 2024
Commercial
Commercial and Industrial	$	231	$	282	$	—	$	1,438	$	128	$	177	$	2,256
Total Commercial		231		282		—		1,438		128		177		2,256
Consumer
Residential Mortgage		—		—		—		—		—		48		48
Home Equity		—		150		160		—		—		52		362
Automobile		84		1,142		916		787		179		686		3,794
Other 1		796		1,604		2,227		1,390		246		1,198		7,461
Total Consumer		880		2,896		3,303		2,177		425		1,984		11,665
Total	$	1,111	$	3,178	$	3,303	$	3,615	$	553	$	2,161	$	13,921
(dollars in thousands)	2023		2022		2021		2020		2019		Prior		Total
Nine Months Ended September 30, 2023
Commercial
Commercial and Industrial	$	347	$	188	$	—	$	84	$	—	$	139	$	758
Total Commercial		347		188		—		84		—		139		758
Consumer
Residential Mortgage		—		—		—		—		—		6		6
Home Equity		—		—		—		—		13		55		68
Automobile		134		1,229		1,053		481		610		802		4,309
Other 1		813		1,844		1,371		316		952		1,000		6,296
Total Consumer		947		3,073		2,424		797		1,575		1,863		10,679
Total	$	1,294	$	3,261	$	2,424	$	881	$	1,575	$	2,002	$	11,437

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