Allowance for Credit Losses and Credit Quality of Loans (Tables)

3 Months Ended

Mar. 31, 2024

Allowance for Credit Losses and Credit Quality of Loans [Abstract]

Allowance for Loan Losses by Portfolio

The following tables present the activity in the allowance for credit losses by our portfolio segments:

(In thousands)	Commercial Loans			Consumer Loans			Residential			Total
Balance as of December 31, 2023	$	45,903		$	46,427		$	22,070		$	114,400
Charge-offs		(985	)		(5,581	)		(114	)		(6,680	)
Recoveries		198			1,651			152			2,001
Provision		(644	)		4,922			1,301			5,579
Ending balance as of March 31, 2024	$	44,472		$	47,419		$	23,409		$	115,300
Balance as of January 1, 2023 (after adoption of ASC 2022-02)	$	34,662		$	50,951		$	14,539		$	100,152
Charge-offs		(169	)		(5,342	)		(339	)		(5,850	)
Recoveries		541			1,377			121			2,039
Provision		1,006			1,834			1,069			3,909
Ending balance as of March 31, 2023	$	36,040		$	48,820		$	15,390		$	100,250

Past due and Nonperforming Loans by Loan Class

The following table sets forth information with regard to past due and nonperforming loans by loan segment:

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of March 31, 2024
Commercial loans:
C&I	$	1,711	$	750	$	-	$	2,461	$	3,079	$	1,398,831	$	1,404,371
CRE		1,929		64		-		1,993		18,743		3,424,810		3,445,546
Total commercial loans	$	3,640	$	814	$	-	$	4,454	$	21,822	$	4,823,641	$	4,849,917
Consumer loans:
Auto	$	10,376	$	1,676	$	1,045	$	13,097	$	2,274	$	1,142,702	$	1,158,073
Residential solar		3,940		1,362		446		5,748		125		890,274		896,147
Other consumer		2,054		1,158		882		4,094		299		146,372		150,765
Total consumer loans	$	16,370	$	4,196	$	2,373	$	22,939	$	2,698	$	2,179,348	$	2,204,985
Residential	$	3,799	$	858	$	227	$	4,884	$	10,669	$	2,617,622	$	2,633,175
Total loans	$	23,809	$	5,868	$	2,600	$	32,277	$	35,189	$	9,620,611	$	9,688,077

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of December 31, 2023
Commercial loans:
C&I	$	414	$	33	$	1	$	448	$	3,441	$	1,393,616	$	1,397,505
CRE		803		835		-		1,638		18,126		3,413,984		3,433,748
Total commercial loans	$	1,217	$	868	$	1	$	2,086	$	21,567	$	4,807,600	$	4,831,253
Consumer loans:
Auto	$	10,115	$	2,011	$	1,067	$	13,193	$	2,106	$	1,084,143	$	1,099,442
Residential solar		3,074		1,301		915		5,290		245		912,220		917,755
Other consumer		2,343		1,811		1,124		5,278		215		164,867		170,360
Total consumer loans	$	15,532	$	5,123	$	3,106	$	23,761	$	2,566	$	2,161,230	$	2,187,557
Residential	$	3,836	$	399	$	554	$	4,789	$	10,080	$	2,617,034	$	2,631,903
Total loans	$	20,585	$	6,390	$	3,661	$	30,636	$	34,213	$	9,585,864	$	9,650,713

Credit Quality by Loan Class by Year of Origination (Vintage)

The following tables illustrate the Company’s credit quality by loan class by vintage and includes gross charge-offs by loan class by vintage. Included in other consumer gross charge-offs for the three months ended March 31, 2024, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2023 originations. Included in other consumer gross charge-offs for the year ended December 31, 2023, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2022 originations and $0.8 million in overdrawn deposit accounts reported as 2023 originations.

(In thousands)	2024		2023			2022			2021			2020			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of March 31, 2024
C&I
By internally assigned grade:
Pass	$	60,820	$	214,985		$	243,619		$	231,577		$	146,409		$	129,310		$	318,078	$	2,585	$	1,347,383
Special mention		-		1,795			2,802			378			3,845			1,812			15,946		251		26,829
Substandard		-		2,934			3,154			1,885			289			6,845			14,880		127		30,114
Doubtful		-		21			1			19			-			4			-		-		45
Total C&I	$	60,820	$	219,735		$	249,576		$	233,859		$	150,543		$	137,971		$	348,904	$	2,963	$	1,404,371
Current-period gross charge-offs	$	-	$	(9	)	$	(900	)	$	-		$	-		$	(76	)	$	-	$	-	$	(985	)
CRE
By internally assigned grade:
Pass	$	81,048	$	362,660		$	492,661		$	546,787		$	449,533		$	1,013,118		$	308,977	$	37,243	$	3,292,027
Special mention		-		3,602			5,971			7,842			3,875			28,841			3,547		-		53,678
Substandard		-		-			726			17,961			1,132			61,499			1,542		16,981		99,841
Total CRE	$	81,048	$	366,262		$	499,358		$	572,590		$	454,540		$	1,103,458		$	314,066	$	54,224	$	3,445,546
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	-		$	-	$	-	$	-
Auto
By payment activity:
Performing	$	175,451	$	430,001		$	331,202		$	138,915		$	36,140		$	43,045		$	-	$	-	$	1,154,754
Nonperforming		29		1,014			1,171			724			94			287			-		-		3,319
Total auto	$	175,480	$	431,015		$	332,373		$	139,639		$	36,234		$	43,332		$	-	$	-	$	1,158,073
Current-period gross charge-offs	$	-	$	(274	)	$	(493	)	$	(226	)	$	(12	)	$	(122	)	$	-	$	-	$	(1,127	)
Residential solar
By payment activity:
Performing	$	1,365	$	149,789		$	422,422		$	176,158		$	63,222		$	82,620		$	-	$	-	$	895,576
Nonperforming		-		-			432			76			-			63			-		-		571
Total residential solar	$	1,365	$	149,789		$	422,854		$	176,234		$	63,222		$	82,683		$	-	$	-	$	896,147
Current-period gross charge-offs	$	-	$	(53	)	$	(910	)	$	(136	)	$	-		$	(196	)	$	-	$	-	$	(1,295	)
Other consumer
By payment activity:
Performing	$	5,600	$	10,559		$	22,720		$	47,947		$	18,029		$	25,681		$	19,015	$	33	$	149,584
Nonperforming		-		5			184			650			39			295			1		7		1,181
Total other consumer	$	5,600	$	10,564		$	22,904		$	48,597		$	18,068		$	25,976		$	19,016	$	40	$	150,765
Current-period gross charge-offs	$	-	$	(250	)	$	(811	)	$	(1,453	)	$	(364	)	$	(281	)	$	-	$	-	$	(3,159	)
Residential
By payment activity:
Performing	$	39,693	$	258,154		$	336,357		$	438,007		$	273,451		$	1,006,816		$	255,582	$	14,219	$	2,622,279
Nonperforming		-		626			825			1,605			272			7,568			-		-		10,896
Total residential	$	39,693	$	258,780		$	337,182		$	439,612		$	273,723		$	1,014,384		$	255,582	$	14,219	$	2,633,175
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	(114	)	$	-	$	-	$	(114	)
Total loans	$	364,006	$	1,436,145		$	1,864,247		$	1,610,531		$	996,330		$	2,407,804		$	937,568	$	71,446	$	9,688,077
Current-period gross charge-offs	$	-	$	(586	)	$	(3,114	)	$	(1,815	)	$	(376	)	$	(789	)	$	-	$	-	$	(6,680	)

(In thousands)	2023			2022			2021			2020			2019			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2023
C&I
By internally assigned grade:
Pass	$	229,249		$	270,796		$	241,993		$	158,051		$	74,469		$	63,826		$	299,248	$	2,923	$	1,340,555
Special mention		420			1,672			277			3,524			87			1,854			19,489		-		27,323
Substandard		1,496			2,461			1,609			282			2,266			5,632			14,266		1,607		29,619
Doubtful		-			1			2			-			4			1			-		-		8
Total C&I	$	231,165		$	274,930		$	243,881		$	161,857		$	76,826		$	71,313		$	333,003	$	4,530	$	1,397,505
Current-period gross charge-offs	$	(24	)	$	(3,021	)	$	(5	)	$	(86	)	$	-		$	(600	)	$	-	$	-	$	(3,736	)
CRE
By internally assigned grade:
Pass	$	353,161		$	518,201		$	561,897		$	452,110		$	327,804		$	739,189		$	294,039	$	33,705	$	3,280,106
Special mention		3,577			4,472			10,711			7,055			9,967			39,460			2,970		-		78,212
Substandard		370			731			21,807			1,146			2,996			37,418			10,962		-		75,430
Total CRE	$	357,108		$	523,404		$	594,415		$	460,311		$	340,767		$	816,067		$	307,971	$	33,705	$	3,433,748
Current-period gross charge-offs	$	-		$	-		$	-		$	-		$	(114	)	$	(304	)	$	-	$	-	$	(418	)
Auto
By payment activity:
Performing	$	474,369		$	363,516		$	157,251		$	42,644		$	45,406		$	13,071		$	12	$	-	$	1,096,269
Nonperforming		532			1,241			830			190			306			74			-		-		3,173
Total auto	$	474,901		$	364,757		$	158,081		$	42,834		$	45,712		$	13,145		$	12	$	-	$	1,099,442
Current-period gross charge-offs	$	(102	)	$	(1,183	)	$	(1,066	)	$	(340	)	$	(301	)	$	(295	)	$	-	$	-	$	(3,287	)
Residential solar
By payment activity:
Performing	$	155,425		$	430,855		$	178,839		$	65,382		$	46,554		$	39,540		$	-	$	-	$	916,595
Nonperforming		-			837			205			18			47			53			-		-		1,160
Total residential solar	$	155,425		$	431,692		$	179,044		$	65,400		$	46,601		$	39,593		$	-	$	-	$	917,755
Current-period gross charge-offs	$	(150	)	$	(1,930	)	$	(923	)	$	(45	)	$	(558	)	$	(345	)	$	-	$	-	$	(3,951	)
Other consumer
By payment activity:
Performing	$	13,089		$	27,394		$	57,876		$	21,087		$	14,548		$	15,964		$	19,042	$	21	$	169,021
Nonperforming		-			244			685			144			56			161			4		45		1,339
Total other consumer	$	13,089		$	27,638		$	58,561		$	21,231		$	14,604		$	16,125		$	19,046	$	66	$	170,360
Current-period gross charge-offs	$	(885	)	$	(3,744	)	$	(7,511	)	$	(1,329	)	$	(832	)	$	(568	)	$	-	$	-	$	(14,869	)
Residential
By payment activity:
Performing	$	212,799		$	366,860		$	453,206		$	267,845		$	167,860		$	876,563		$	260,836	$	15,300	$	2,621,269
Nonperforming		134			430			1,121			385			591			7,460			-		513		10,634
Total residential	$	212,933		$	367,290		$	454,327		$	268,230		$	168,451		$	884,023		$	260,836	$	15,813	$	2,631,903
Current-period gross charge-offs	$	-		$	-		$	(81	)	$	(30	)	$	-		$	(406	)	$	-	$	-	$	(517	)
Total loans	$	1,444,621		$	1,989,711		$	1,688,309		$	1,019,863		$	692,961		$	1,840,266		$	920,868	$	54,114	$	9,650,713
Current-period gross charge-offs	$	(1,161	)	$	(9,878	)	$	(9,586	)	$	(1,830	)	$	(1,805	)	$	(2,518	)	$	-	$	-	$	(26,778	)

Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

	Three Months Ended March 31, 2024
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	294		0.011	%
Total	$	294

	Three Months Ended March 31, 2023
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	43		0.002	%
Total	$	43

Financial Effect of Modifications Made to Borrowers Experiencing Financial Difficulty

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulties:

	Three Months Ended March 31, 2024
Loan Type	Term Extension
Residential	Added a weighted-average 7.4 years to the life of loans, which reduced monthly payment amounts for the borrowers.

	Three Months Ended March 31, 2023
Loan Type	Term Extension
Residential	Added a weighted-average 18 years to the life of loans, which reduced monthly payment amounts for the borrowers.

Performance of Modified Loans

The following table depicts the performance of loans that have been modified to borrowers experiencing financial difficulty that were modified in the prior twelve months:

	Payment Status (Amortized Cost Basis)
(In thousands)	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due
As of March 31, 2024
Loan Type
Residential	$	863	$	-	$	-	$	29
Total	$	863	$	-	$	-	$	29