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ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION
8. ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION
The following tables provide the activity of allowance for credit losses and loan balances for the three months ended March 31, 2022 and 2021. The increase was primarily due to an initial ACL of $49.6 million recorded in connection with the BMBC Merger. The initial $49.6 million ACL recorded includes $23.5 million related to non-PCD loans, or the initial provision for credit loss recorded, and $26.1 million related to PCD loans, which does not have an initial income statement impact, but adjusts the amortized cost basis of the loans at acquisition (i.e., a balance sheet gross-up).
(Dollars in thousands)
Commercial and Industrial(1)
Owner-occupied
Commercial		Commercial
Mortgages		Construction
Residential(2)
Consumer(3)
Total
Three months ended March 31, 2022
Allowance for credit losses
Beginning balance$49,967 $4,574 $11,623 $1,903 $3,352 $23,088 $94,507 
Initial allowance on acquired PCD loans22,614 595 2,684 71 61 78 26,103 
Charge-offs(3,639)(179)(37)— (186)(810)(4,851)
Recoveries601 126 121 — 386 366 1,600 
(Credit) provision(4)
(3,827)1,009 8,714 1,171 1,343 10,561 18,971 
Ending balance$65,716 $6,125 $23,105 $3,145 $4,956 $33,283 $136,330 
Period-end allowance allocated to:
Loans evaluated on an individual basis$6,987 $— $5 $— $— $— $6,992 
Loans evaluated on a collective basis58,729 6,125 23,100 3,145 4,956 33,283 129,338 
Ending balance$65,716 $6,125 $23,105 $3,145 $4,956 $33,283 $136,330 
Period-end loan balances:
Loans evaluated on an individual basis
$27,735 $1,023 $7,106 $5,556 $6,424 $2,322 $50,166 
Loans evaluated on a collective basis2,956,392 1,871,804 3,354,136 918,334 798,902 1,379,794 11,279,362 
Ending balance
$2,984,127 $1,872,827 $3,361,242 $923,890 $805,326 $1,382,116 $11,329,528 
(1)Includes commercial small business leases and PPP loans.
(2)Period-end loan balance excludes reverse mortgages at fair value of $4.3 million.
(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
(4)Includes $23.5 million initial provision for credit losses on non-PCD loans.

(Dollars in thousands)
Commercial and Industrial(1)
Owner -
occupied
Commercial		Commercial
Mortgages		Construction
Residential(2)
Consumer(3)
Total
Three months ended March 31, 2021
Allowance for credit losses
Beginning balance$150,875 $9,615 $31,071 $12,190 $6,893 $18,160 $228,804 
Charge-offs(5,052)— — — — (424)(5,476)
Recoveries1,140 90 14 — 140 266 1,650 
(Credit) provision (21,093)(88)(540)2,097 (1,331)795 (20,160)
Ending balance$125,870 $9,617 $30,545 $14,287 $5,702 $18,797 $204,818 
Period-end allowance allocated to:
Loans evaluated on an individual basis$1 $— $11 $— $— $— $12 
Loans evaluated on a collective basis125,869 9,617 30,534 14,287 5,702 18,797 204,806 
Ending balance$125,870 $9,617 $30,545 $14,287 $5,702 $18,797 $204,818 
Period-end loan balances:
Loans evaluated on an individual basis$20,902 $5,118 $4,280 $72 $5,649 $2,313 $38,334 
Loans evaluated on a collective basis2,642,570 1,328,871 1,971,686 784,029 665,931 1,137,721 8,530,808 
Ending balance
$2,663,472 $1,333,989 $1,975,966 $784,101 $671,580 $1,140,034 $8,569,142 
(1)Includes commercial small business leases and PPP loans.
(2)Period-end loan balance excludes reverse mortgages at fair value of $9.4 million.
(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
The following tables show nonaccrual and past due loans presented at amortized cost at the date indicated:
March 31, 2022
(Dollars in thousands)30–89 Days
Past Due and
Still 
Accruing		Greater 
Than
90 Days
Past Due and
Still Accruing		Total Past
Due
And Still
Accruing		Accruing
Current
Balances
Nonaccrual Loans(1)
Total
Loans
Commercial and industrial(2)
$4,778 $42 $4,820 $2,971,375 $7,932 $2,984,127 
Owner-occupied commercial779 — 779 1,871,551 497 1,872,827 
Commercial mortgages3,288 — 3,288 3,354,338 3,616 3,361,242 
Construction3,785 — 3,785 914,549 5,556 923,890 
Residential(3)
1,925 — 1,925 800,226 3,175 805,326 
Consumer(4)
14,067 11,581 25,648 1,354,157 2,311 1,382,116 
Total
$28,622 $11,623 $40,245 $11,266,196 $23,087 $11,329,528 
% of Total Loans0.26 %0.10 %0.36 %99.44 %0.20 %100 %
(1)Nonaccrual loans with an allowance totaled less than $0.1 million.
(2)Includes commercial small business leases and PPP loans.
(3)Residential accruing current balances excludes reverse mortgages at fair value of $4.3 million.
(4)Includes $23.5 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.
December 31, 2021
(Dollars in thousands)30–89 Days
Past Due and
Still 
Accruing		Greater 
Than
90 Days
Past Due and
Still Accruing		Total Past
Due
And Still
Accruing		Accruing
Current
Balances
Nonaccrual Loans(1)
Total
Loans
Commercial and industrial(2)
$5,007 $547 $5,554 $2,256,554 $8,211 $2,270,319 
Owner-occupied commercial741 — 741 1,340,155 811 1,341,707 
Commercial mortgages3,525 810 4,335 1,875,105 2,070 1,881,510 
Construction7,933 — 7,933 679,268 12 687,213 
Residential(3)
1,856 — 1,856 537,752 3,125 542,733 
Consumer(4)
10,227 8,634 18,861 1,137,332 2,380 1,158,573 
Total(4)
$29,289 $9,991 $39,280 $7,826,166 $16,609 $7,882,055 
% of Total Loans0.37 %0.13 %0.50 %99.29 %0.21 %100 %
(1)Nonaccrual loans with an allowance totaled less than $0.1 million
(2)Includes commercial small business leases and PPP loans.
(3)Residential accruing current balances excludes reverse mortgages, at fair value of $3.9 million.
(4)Includes $17.0 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.
The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at March 31, 2022 and December 31, 2021:
March 31, 2022December 31, 2021
(Dollars in thousands)Property
Equipment and other
Property
Equipment and other
Commercial and industrial(1)
$5,037 $2,895 $4,199 $4,012 
Owner-occupied commercial497 — 811 — 
Commercial mortgages3,616 — 2,070 — 
Construction5,556 — 12 — 
Residential(2)
3,175 — 3,125 — 
Consumer(3)
2,264 47 2,380 — 
Total$20,145 $2,942 $12,597 $4,012 
(1)Includes commercial small business leases.
(2)Excludes reverse mortgages at fair value.
(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
Interest income recognized on individually reviewed loans was $0.2 million during the three months ended March 31, 2022 and 2021.
As of March 31, 2022, there were 22 residential loans and 16 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $2.2 million and $4.3 million, respectively. As of December 31, 2021, there were 28 residential loans and 9 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $2.5 million and $3.2 million, respectively. Loan workout and other real estate owned (OREO) expenses were $0.3 million during the three months ended March 31, 2022, and $0.5 million during three months ended March 31, 2021. Loan workout and OREO expenses are included in Loan workout and other credit costs on the Consolidated Statement of Income.
Credit Quality Indicators
Below is a description of each of the risk ratings for all commercial loans:
 
•Pass. These borrowers currently show no indication of deterioration or potential problems and their loans are considered fully collectible.
•Special Mention. These borrowers have potential weaknesses that deserve management’s close attention. Borrowers in this category may be experiencing adverse operating trends, for example, declining revenues or margins, high leverage, tight liquidity, or increasing inventory without increasing sales. These adverse trends can have a potential negative effect on the borrower’s repayment capacity. These assets are not adversely classified and do not expose the Bank to significant risk that would warrant a more severe rating. Borrowers in this category may also be experiencing significant management problems, pending litigation, or other structural credit weaknesses.
•Substandard or Lower. These borrowers have well-defined weaknesses that require extensive oversight by management. Borrowers in this category may exhibit one or more of the following: inadequate debt service coverage, unprofitable operations, insufficient liquidity, high leverage, and weak or inadequate capitalization. Relationships in this category are not adequately protected by the sound financial worth and paying capacity of the obligor or the collateral pledged on the loan, if any. A distinct possibility exists that the Bank will sustain some loss if the deficiencies are not corrected. In addition, some borrowers in this category could have the added characteristic that the possibility of loss is extremely high. Current circumstances in the credit relationship make collection or liquidation in full highly questionable. Such impending events include: perfecting liens on additional collateral, obtaining collateral valuations, an acquisition or liquidation preceding, proposed merger, or refinancing plan.
Residential and Consumer Loans
The residential and consumer loan portfolios are monitored on an ongoing basis using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans that are greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status.
The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses as of March 31, 2022.
Term Loans Amortized Cost Basis by Origination Year
20222021202020192018
Prior
Revolving loans amortized cost basisRevolving loans converted to termTotal
(Dollars in thousands)
Commercial and industrial(1):
Risk Rating
Pass(2)
$199,414 $739,112 $519,388 $326,303 $337,575 $307,901 $8,089 $207,778 $2,645,560 
Special mention— 40,972 24,202 27,509 1,034 1,601 — 20,136 115,454 
Substandard or Lower10,888 18,354 16,651 81,012 32,660 54,604 125 8,819 223,113 
$210,302 $798,438 $560,241 $434,824 $371,269 $364,106 $8,214 $236,733 $2,984,127 
Owner-occupied commercial:
Risk Rating
Pass$55,073 $403,732 $312,617 $268,920 $131,476 $472,999 $— $132,633 $1,777,450 
Special mention— 3,449 2,921 2,526 1,298 6,813 — 47 17,054 
Substandard or Lower— 5,265 19,340 6,314 11,978 20,237 — 15,189 78,323 
$55,073 $412,446 $334,878 $277,760 $144,752 $500,049 $— $147,869 $1,872,827 
Commercial mortgages:
Risk Rating
Pass$70,519 $719,997 $568,289 $615,715 $275,125 $791,959 $— $186,784 $3,228,388 
Special mention— 2,996 15,918 12,596 10,547 39,958 — 2,086 84,101 
Substandard or Lower— 2,892 8,618 7,066 13,189 16,988 — — 48,753 
$70,519 $725,885 $592,825 $635,377 $298,861 $848,905 $— $188,870 $3,361,242 
Construction:
Risk Rating
Pass$101,402 $354,624 $186,593 $69,089 $80,948 $15,091 $— $96,818 $904,565 
Special mention— 602 — — — — — — 602 
Substandard or Lower2,025 13,126 1,621 218 — 88 — 1,645 18,723 
$103,427 $368,352 $188,214 $69,307 $80,948 $15,179 $— $98,463 $923,890 
Residential(3):
Risk Rating
Performing$8,102 $107,827 $68,665 $42,279 $63,215 $508,814 $— $— $798,902 
Nonperforming(4)
— — 111 1,027 — 5,286 — — 6,424 
$8,102 $107,827 $68,776 $43,306 $63,215 $514,100 $— $— $805,326 
Consumer(5):
Risk Rating
Performing$100,753 $239,198 $151,851 $64,709 $224,593 $105,028 $488,139 $5,125 $1,379,396 
Nonperforming(6)
— — 189 — 526 — 1,521 484 2,720 
$100,753 $239,198 $152,040 $64,709 $225,119 $105,028 $489,660 $5,609 $1,382,116 
(1)Includes commercial small business leases.
(2)Includes $8.5 million of PPP loans.
(3)Excludes reverse mortgages at fair value.
(4)Includes troubled debt restructured mortgages performing in accordance with the loans' modified terms and accruing interest.
(5)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
(6)Includes troubled debt restructured home equity installment loans performing in accordance with the loans' modified terms and accruing interest.
The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2021.
Term Loans Amortized Cost Basis by Origination Year
20212020201920182017
Prior
Revolving loans amortized cost basisRevolving loans converted to termTotal
(Dollars in thousands)
Commercial and industrial(1):
Risk Rating
Pass(2)
$556,896 $420,698 $329,354 $273,345 $139,800 $148,809 $5,551 $176,006 $2,050,459 
Special mention35,910 949 3,052 1,057 429 15,299 — 17,545 74,241 
Substandard or Lower12,533 14,408 53,655 29,046 19,114 6,921 29 9,913 145,619 
$605,339 $436,055 $386,061 $303,448 $159,343 $171,029 $5,580 $203,464 $2,270,319 
Owner-occupied commercial:
Risk Rating
Pass$305,156 $189,128 $172,503 $67,526 $136,697 $262,629 $— $128,188 $1,261,827 
Special mention938 5,359 2,561 891 — 7,019 — 10,543 27,311 
Substandard or Lower3,192 13,736 4,138 9,418 5,580 11,039 — 5,466 52,569 
$309,286 $208,223 $179,202 $77,835 $142,277 $280,687 $— $144,197 $1,341,707 
Commercial mortgages:
Risk Rating
Pass$416,149 $280,889 $217,311 $134,477 $229,863 $368,527 $— $187,396 $1,834,612 
Special mention— 4,185 — 861 11,588 1,385 — 2,097 20,116 
Substandard or Lower2,438 1,624 3,789 2,114 2,254 14,085 — 478 26,782 
$418,587 $286,698 $221,100 $137,452 $243,705 $383,997 $— $189,971 $1,881,510 
Construction:
Risk Rating
Pass$248,053 $195,269 $84,868 $39,585 $2,223 $11,297 $— $88,839 $670,134 
Special mention— — — — — — — — — 
Substandard or Lower12,922 — 2,422 — 90 — — 1,645 17,079 
$260,975 $195,269 $87,290 $39,585 $2,313 $11,297 $— $90,484 $687,213 
Residential(3):
Risk Rating
Performing$59,977 $28,426 $12,526 $32,871 $44,969 $358,964 $— $— $537,733 
Nonperforming(4)
— 112 1,044 — 63 3,781 — — 5,000 
$59,977 $28,538 $13,570 $32,871 $45,032 $362,745 $— $— $542,733 
Consumer(5):
Risk Rating
Performing$219,918 $169,922 $74,048 $203,519 $39,113 $60,952 $382,718 $5,364 $1,155,554 
Nonperforming(6)
— 147 — 600 71 — 1,655 546 3,019 
$219,918 $170,069 $74,048 $204,119 $39,184 $60,952 $384,373 $5,910 $1,158,573 
(1)Includes commercial small business leases.
(2)Includes $31.5 million of PPP loans.
(3)Excludes reverse mortgages at fair value.
(4)Includes troubled debt restructured mortgages performing in accordance with the loans' modified terms and accruing interest.
(5)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.
(6)Includes troubled debt restructured home equity installment loans performing in accordance with the loans' modified terms and accruing interest.
Troubled Debt Restructurings (TDRs) 
The following table presents the balance of TDRs as of the indicated dates:
(Dollars in thousands)March 31, 2022December 31, 2021
Performing TDRs$12,933 $14,204 
Nonperforming TDRs706 756 
Total TDRs$13,639 $14,960 
Approximately $0.1 million and $0.2 million in related reserves have been established for these loans at March 31, 2022 and December 31, 2021, respectively.
The following tables present information regarding the types of loan modifications made for the three months ended March 31, 2022 and 2021:
Three months ended March 31, 2022
Contractual payment reduction and term extensionMaturity Date ExtensionDischarged in bankruptcy
Other(1)
Total
Commercial and industrial1 — — — 1 
Residential1 — — — 1 
Consumer1 — 2 1 4 
Total3 — 2 1 6 
Three months ended March 31, 2021
Contractual payment reduction and term extensionMaturity Date ExtensionDischarged in bankruptcy
Other(1)
Total
Residential— — 2 — 2 
Consumer— — 19 — 19 
Total— — 21 — 21 
(1)Other includes interest rate reduction, forbearance, and interest only payments..
Principal balances are generally not forgiven when a loan is modified as a TDR. Nonaccruing restructured loans remain in nonaccrual status until there has been a period of sustained repayment performance, which is typically six months, and repayment is reasonably assured. The following tables present loans modified as TDRs during the three months ended March 31, 2022 and 2021.
Three Months Ended March 31, 2022
(Dollars in thousands)Pre ModificationPost Modification
Commercial$(8)$(8)
Residential6 6 
Consumer258 258 
Total(1)(2)
$256 $256 
(1)During the three months ended March 31, 2022, the TDRs set forth in the table above resulted in a $0.1 million increase in the allowance for credit losses, and no additional charge-offs. During the three months ended March 31, 2022, no TDRs defaulted that had received troubled debt modification during the past twelve months.
(2)The TDRs set forth in the table above did not occur as a result of the loan forbearance program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Three Months Ended March 31, 2021
(Dollars in thousands)Pre ModificationPost Modification
Residential167 167 
Consumer830 830 
Total(1)(2)
$997 $997 
(1)During the three months ended March 31, 2021 the TDRs set forth in the table above resulted in a less than $0.1 million increase in the allowance for credit losses, and no additional charge-offs. During the three months ended March 31, 2021, no TDRs defaulted that had received troubled debt modification during the past twelve months.
(2)The TDRs set forth in the table above did not occur as a result of the loan forbearance program under the CARES Act.