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LOANS AND LEASES (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Financial Receivable Credit Quality Indicators
The following table sets forth the Company's loan portfolio at September 30, 2023 by risk attribute and origination date as well as current period gross chargeoffs:
(Dollars in thousands)20232022202120202019PriorTerm TotalRevolvingTotal
Commercial & industrial
Pass$591,753 $745,219 $454,198 $294,123 $140,937 $258,364 $2,484,594 $811,270 $3,295,864 
Special mention76 8,516 6,597 385 22,077 1,677 39,328 18,021 57,349 
Substandard3,138 8,140 12,788 2,927 1,058 11,264 39,315 28,345 67,660 
Doubtful0 0 0 0 0 0 0 0 0 
Total$594,967 594967000$761,875 $473,583 $297,435 $164,072 $271,305 $2,563,237 $857,636 $3,420,873 
YTD Gross chargeoffs$0 $2,280 $2,011 $7,055 $76 $887 $12,309 $0 $12,309 
Lease financing
Pass$161,017 $210,492 $7,133 $1,635 $2,611 $1,047 $383,935 $0 $383,935 
Special mention3,3444,96300008,30708,307
Substandard2,6344,815103017907,73107,731
Total$166,995 $220,270 $7,236 $1,635 $2,790 $1,047 $399,973 $0 $399,973 
YTD Gross chargeoffs$0 $0 $179 $0 $0 $0 $179 $0 $179 
Construction real estate
Pass$141,951 $167,657 $180,340 $41,879 $7,009 $6,200 $545,036 $17,457 $562,493 
Special mention0 0 0 16,331 0 0 16,331 0 16,331 
Substandard0 0 0 0 0 0 0 0 0 
Total$141,951 $167,657 $180,340 $58,210 $7,009 $6,200 $561,367 $17,457 $578,824 
YTD Gross chargeoffs$0 $0 $0 $0 $0 $0 $0 $0 $0 
Commercial real estate - investor
Pass$347,308 $628,892 $414,220 $277,051 $578,892 $652,738 $2,899,101 $34,574 $2,933,675 
Special mention0 8,894 25,214 8,763 32,934 9,246 85,051 397 85,448 
Substandard0 0 0 6,238 3,926 30,135 40,299 0 40,299 
Doubtful0 0 0 0 0 0 0 0 0 
(Dollars in thousands)20232022202120202019PriorTerm TotalRevolvingTotal
Total$347,308 $637,786 $439,434 $292,052 $615,752 $692,119 $3,024,451 $34,971 $3,059,422 
YTD Gross chargeoffs$0 $0 $859 $2,030 $0 $3,119 $6,008 $0 $6,008 
Commercial real estate - owner
Pass$87,573 $168,301 $136,547 $148,233 $97,777 $251,283 $889,714 $8,501 $898,215 
Special mention406 47 4,992 1,106 469 21,016 28,036 0 28,036 
Substandard0 0 176 837 3 5,315 6,331 650 6,981 
Total$87,979 $168,348 $141,715 $150,176 $98,249 $277,614 $924,081 $9,151 $933,232 
YTD Gross chargeoffs$0 $0 $0 $2,643 $0 $71 $2,714 $0 $2,714 
Residential real estate
Performing$257,700 $246,156 $259,529 $190,804 $103,692 $220,983 $1,278,864 $0 $1,278,864 
Nonperforming74 805 2,077 2,814 2,395 6,441 14,606 0 14,606 
Total$257,774 $246,961 $261,606 $193,618 $106,087 $227,424 $1,293,470 $0 $1,293,470 
YTD Gross chargeoffs$0 $0 $8 $1 $21 $0 $30 $0 $30 
Home equity
Performing$21,254 $23,808 $30,022 $34,512 $10,357 $24,605 $144,558 $594,038 $738,596 
Nonperforming29 41 225 75 0 385 755 4,640 5,395 
Total$21,283 $23,849 $30,247 $34,587 $10,357 $24,990 $145,313 $598,678 $743,991 
YTD Gross chargeoffs$0 $0 $7 $0 $0 $159 $166 $0 $166 
Installment
Performing$14,442 $44,069 $26,816 $4,610 $2,119 $4,062 $96,118 $62,230 $158,348 
Nonperforming117 992 815 21 0 32 1,977 323 2,300 
Total$14,559 $45,061 $27,631 $4,631 $2,119 $4,094 $98,095 $62,553 $160,648 
YTD Gross chargeoffs$28 $2,170 $2,018 $154 $5 $13 $4,388 $0 $4,388 
Credit cards
Performing$0 $0 $0 $0 $0 $0 $0 $55,688 $55,688 
Nonperforming0 0 0 0 0 0 0 698 698 
Total$0 $0 $0 $0 $0 $0 $0 $56,386 $56,386 
YTD Gross chargeoffs$0 $0 $0 $0 $0 $0 $0 $810 $810 
Grand Total Loans$1,632,816 $2,271,807 $1,561,792 $1,032,344 $1,006,435 $1,504,793 $9,009,987 $1,636,832 $10,646,819 
Grand Total YTD Gross Chargeoffs$28 $4,450 $5,082 $11,883 $102 $4,249 $25,794 $810 $26,604 
The following table sets forth the Company's loan portfolio at December 31, 2022 by risk attribute and origination date:
(Dollars in thousands)20222021202020192018PriorTerm TotalRevolvingTotal
Commercial & industrial
Pass$879,836 $561,890 $348,123 $209,758 $112,282 $206,656 $2,318,545 $971,080 $3,289,625 
Special mention2,740 13,821 4,125 14,047 8,523 5,544 48,800 18,055 66,855 
Substandard2,335 5,176 11,886 8,016 3,331 13,812 44,556 9,236 53,792 
Total$884,911 $580,887 $364,134 $231,821 $124,136 $226,012 $2,411,901 $998,371 $3,410,272 
Lease financing
Pass$167,035 $25,638 $13,705 $12,797 $9,402 $2,930 $231,507 $0 $231,507 
Special mention007000070070 
Substandard4,363001641194,54704,547
Total$171,398 $25,638 $13,775 $12,961 $9,413 $2,939 $236,124 $0 $236,124 
Construction real estate
Pass$89,116 $276,639 $96,823 $4,902 $390 $353 $468,223 $23,266 $491,489 
Special mention0 14,395 0 0 6,166 0 20,561 0 20,561 
Substandard0 0 0 0 0 0 0 0 0 
Total$89,116 $291,034 $96,823 $4,902 $6,556 $353 $488,784 $23,266 $512,050 
Commercial real estate - investor
Pass$643,174 $470,085 $301,510 $719,699 $300,772 $508,639 $2,943,879 $26,153 $2,970,032 
Special mention0 13,090 23,111 9,297 26,079 13,804 85,381 861 86,242 
Substandard0 6,950 6 4,025 17,178 9,631 37,790 0 37,790 
Total$643,174 $490,125 $324,627 $733,021 $344,029 $532,074 $3,067,050 $27,014 $3,094,064 
Commercial real estate - owner
Pass$165,411 $155,041 $170,587 $101,137 $112,063 $211,377 $915,616 $11,125 $926,741 
Special mention0 0 0 1,479 0 14,040 15,519 0 15,519 
Substandard0 525 844 5,114 3,501 6,451 16,435 0 16,435 
Doubtful0 0 0 0 0 0 0 0 0 
Total$165,411 $155,566 $171,431 $107,730 $115,564 $231,868 $947,570 $11,125 $958,695 
Residential real estate
Performing$320,676 $274,816 $205,948 $110,745 $51,583 $114,642 $1,078,410 $0 $1,078,410 
Nonperforming414 1,615 1,286 2,554 1,755 6,231 13,855 0 13,855 
Total$321,090 $276,431 $207,234 $113,299 $53,338 $120,873 $1,092,265 $0 $1,092,265 
Home equity
Performing$26,411 $33,414 $38,226 $11,733 $8,051 $24,985 $142,820 $585,712 $728,532 
Nonperforming5 136 298 78 104 430 1,051 4,208 5,259 
Total$26,416 $33,550 $38,524 $11,811 $8,155 $25,415 $143,871 $589,920 $733,791 
Installment
Performing$100,256 $38,694 $7,244 $3,915 $2,861 $3,242 $156,212 $51,854 $208,066 
Nonperforming650 794 18 6 20 42 1,530 299 1,829 
Total$100,906 $39,488 $7,262 $3,921 $2,881 $3,284 $157,742 $52,153 $209,895 
Credit cards
Performing$0 $0 $0 $0 $0 $0 $0 $51,287 $51,287 
Nonperforming0 0 0 0 0 0 0 528 528 
Total$0 $0 $0 $0 $0 $0 $0 $51,815 $51,815 
Grand Total$2,402,422 $1,892,719 $1,223,810 $1,219,466 $664,072 $1,142,818 $8,545,307 $1,753,664 $10,298,971 
Loan Delinquency, including Nonaccrual Loans
Loan delinquency, including loans classified as nonaccrual, was as follows:
 As of September 30, 2023
(Dollars in thousands)30 – 59
days
past due		60 – 89
days
past due		> 89 days
past due		Total
past
due		CurrentTotal> 89 days
past due
and still
accruing
Loans       
Commercial & industrial$480 $344 $6,629 $7,453 $3,413,420 $3,420,873 $0 
Lease financing12,566 1,671 5,307 19,544 380,429 399,973 503 
Construction real estate0 0 0 0 578,824 578,824 0 
Commercial real estate-investor112 0 6,238 6,350 3,053,072 3,059,422 0 
Commercial real estate-owner405 650 5,318 6,373 926,859 933,232 0 
Residential real estate4,123 1,776 2,234 8,133 1,285,337 1,293,470 0 
Home equity1,334 781 2,208 4,323 739,668 743,991 0 
Installment837 838 540 2,215 158,433 160,648 0 
Credit card331 243 196 770 55,616 56,386 195 
Total$20,188 $6,303 $28,670 $55,161 $10,591,658 $10,646,819 $698 

 As of December 31, 2022
(Dollars in thousands)30 – 59
days
past due		60 – 89
days
past due		> 89 days
past due		Total
past
due		CurrentTotal> 89 days
past due
and still
accruing
Loans       
Commercial & industrial$5,375 $72 $501 $5,948 $3,404,324 $3,410,272 $0 
Lease financing5,212 1,052 843 7,107 229,017 236,124 742 
Construction real estate0 0 0 0 512,050 512,050 0 
Commercial real estate-investor0 0 0 0 3,094,064 3,094,064 0 
Commercial real estate-owner26 5,216 44 5,286 953,409 958,695 0 
Residential real estate4,254 2,074 3,260 9,588 1,082,677 1,092,265 0 
Home equity1,725 729 1,209 3,663 730,128 733,791 0 
Installment874 490 414 1,778 208,117 209,895 0 
Credit card261 150 116 527 51,288 51,815 115 
Total$17,727 $9,783 $6,387 $33,897 $10,265,074 $10,298,971 $857 
Schedule of Amortized Cost Basis and Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty
The following table provides the amortized cost basis of FDM at September 30, 2023 that were modified during the three and nine months ended September 30, 2023 by class of loan and type of modification:
Three months ended September 30, 2023
(Dollars in thousands)Principal forgivenessPayment delayTerm extensionInterest rate reductionCombination: Term extension and interest rate reductionTotalPercent of total class of loans
Commercial & industrial$0 $2,834 $0 $0 $0 $2,834 0.08 %
Residential real estate0 756 0 0 0 756 0.06 %
Home equity0 0 0 0 0 00.00 %
Total$0 $3,590 $0 $0 $0 $3,590 0.03 %
Nine months ended September 30, 2023
(Dollars in thousands)Principal forgivenessPayment delayTerm extensionInterest rate reductionCombination: Term extension and interest rate reductionTotalPercent of total class of loans
Commercial & industrial$0 $2,834 $3,561 $0 $0 $6,395 0.19 %
Residential real estate0 1,772 99 0 57 1,928 0.15 %
Home equity0 168 0 0 15 1830.02 %
Total$0 $4,774 $3,660 $0 $72 $8,506 0.08 %

The following table provides the financial effect of FDM during the three and nine months ended September 30, 2023 by class of loans:
Three months ended September 30, 2023
(Dollars in thousands)Principal forgivenessWeighted average interest rate reductionWeighted average term extension
Commercial & industrial$0 0.00 %N/A
Residential real estate0 0.00 %N/A
Home equity0 0.00 %N/A
Total$0 0.00 %N/A
Nine months ended September 30, 2023
(Dollars in thousands)Principal forgivenessWeighted average interest rate reductionWeighted average term extension
Commercial & industrial$0 0.00 %0.2 years
Residential real estate0 2.00 %11.4 years
Home equity0 0.31 %22.6 years
Total$0 1.65 %0.8 years
Financing Modifications Modifications Payment Status
The Company closely monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following table provides the performance of loans that have been modified since the January 1, 2023 adoption date of ASU 2022-02:
Payment status as of
September 30, 2023
(Dollars in thousands)Current30 – 59 days past due60 – 89 days past due> 89 days past dueTotal
Commercial & industrial$6,395 $0 $0 $0 $6,395 
Residential real estate1,334 538 0 57 1,929 
Home equity182 0 0 0 182 
Total$7,911 $538 $0 $57 $8,506 
Financing Receivable, Nonaccrual The following table provides information on nonperforming loans:
September 30, 2023December 31, 2022
(Dollars in thousands)Nonaccrual loans with a related ACLNonaccrual loans with no related ACLTotal nonaccrualNonaccrual loans with a related ACLNonaccrual loans with no related ACLTotal nonaccrual
Nonaccrual loans (1)
  
Commercial & industrial$6,112 $11,040 $17,152 $6,692 $1,550 $8,242 
Lease financing4,860 2,871 7,731 0 178 178 
Construction real estate0 0 0 0 0 0 
Commercial real estate20,813 12,206 33,019 5,216 570 5,786 
Residential real estate0 12,328 12,328 0 10,691 10,691 
Home equity348 3,589 3,937 0 3,123 3,123 
Installment0 774 774 0 603 603 
Total nonaccrual loans$32,133 $42,808 $74,941 $11,908 $16,715 $28,623 
(1) Nonaccrual loans include nonaccrual TDR of $10.0 million as of December 31, 2022.

Three months endedNine months ended
September 30,September 30,
(Dollars in thousands)2023202220232022
Interest income effect on nonperforming loans 
Gross amount of interest that would have been recorded under original terms$1,905 $855 $3,906 $2,443 
Interest included in income
Nonaccrual loans683 343 1,275 901 
Troubled debt restructurings0 126 0 288 
Total interest included in income683 469 1,275 1,189 
Net impact on interest income$1,222 $386 $2,631 $1,254 
Schedule of Collateral Dependent Loans The following table presents the amortized cost basis of collateral dependent loans by class of loan.
September 30, 2023
Type of Collateral
(Dollar in thousands)Business
assets		Commercial real estateEquipmentLandResidential real estateOtherTotal
Class of loan
Commercial & industrial$9,027 $0 $5,623 $0 $0 $2,502 $17,152 
Lease financing00 7,731 0 0 0 7,731 
Commercial real estate-investor027,051 0 0 0 0 27,051 
Commercial real estate-owner04,075 1,893 0 0 0 5,968 
Residential real estate00 0 0 12,328 0 12,328 
Home equity00003,937 0 3,937 
Installment00000 774 774 
Total$9,027 $31,126 $15,247 $0 $16,265 $3,276 $74,941 
December 31, 2022
Type of Collateral
(Dollar in thousands)Business
assets		Commercial real estateEquipmentLandResidential real estateOtherTotal
Class of loan
Commercial & industrial$8,205 $0 $0 $0 $0 $37 $8,242 
Lease financing00 178 0 0 0 178 
Commercial real estate-investor0353 0 0 22 0 375 
Commercial real estate-owner03,399 1,893 119 0 0 5,411 
Residential real estate00 0 0 10,691 0 10,691 
Home equity00003,123 0 3,123 
Installment00000 603 603 
Total$8,205 $3,752 $2,071 $119 $13,836 $640 $28,623 
Components of lease investments
The components of the Company's net investments in direct financing and sales-type leases, which are included in Lease financing on the Consolidated Balance Sheets are as follows:
(Dollar in thousands)September 30, 2023December 31, 2022
Direct financing leases
Lease receivables$18,286 $35,081 
Unguaranteed residual values11,877 16,058 
Sales-type leases
Lease receivables366,198 184,985 
Unguaranteed residual values3,612 0 
Total net investment in direct financing and sales-type leases$399,973 $236,124 
Sales-type and Direct Financing Leases, Lease Receivable, Maturity
The remaining maturities of lease receivables were as follows:
(Dollars in thousands)Direct financing and Sales-type
Remainder of 2023$26,182 
202490,986 
202581,807 
202672,374 
202776,416 
Thereafter93,287 
Total lease payments441,052 
Less: unearned interest income(56,568)
Net lease receivables$384,484 
Changes in Other Real Estate Owned
Changes in OREO were as follows:
Three months endedNine months ended
 September 30,September 30,
(Dollars in thousands)2023202220232022
Balance at beginning of period$281 $22 $191 $98 
Additions
Commercial real estate0 0 0 0 
Residential real estate68 0 387 136 
Total additions68 0 387 136 
Disposals  
Commercial real estate0 0 0 (98)
Residential real estate(167)0 (252)(72)
Total disposals(167)0 (252)(170)
Valuation adjustment  
Commercial real estate0 0 0 0 
Residential real estate(40)0 (184)(42)
Total valuation adjustment(40)0 (184)(42)
Balance at end of period$142 $22 $142 $22