ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Allowance for Loan Losses and Loan Balances

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 loans	22,614		595		2,684		71		61		78		26,103
Charge-offs	(3,639)		(179)		(37)		—		(186)		(810)		(4,851)
Recoveries	601		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 basis	58,729		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 basis	2,956,392		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)
Recoveries	1,140		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 basis	125,869		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 basis	2,642,570		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.

Summary of Nonaccrual and Past Due 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 commercial	779			—			779			1,871,551			497			1,872,827
Commercial mortgages	3,288			—			3,288			3,354,338			3,616			3,361,242
Construction	3,785			—			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 Loans	0.26		%	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 commercial	741			—			741			1,340,155			811			1,341,707
Commercial mortgages	3,525			810			4,335			1,875,105			2,070			1,881,510
Construction	7,933			—			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 Loans	0.37		%	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.

Schedule Of Collateral Dependent Loans

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, 2022		December 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 commercial	497		—		811		—
Commercial mortgages	3,616		—		2,070		—
Construction	5,556		—		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.

Schedule of Commercial Credit Exposure

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
	2022		2021		2020		2019		2018		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
(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 Lower	10,888		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 Lower	2,025		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
	2021		2020		2019		2018		2017		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
(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 mention	35,910		949		3,052		1,057		429		15,299		—		17,545		74,241
Substandard or Lower	12,533		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 mention	938		5,359		2,561		891		—		7,019		—		10,543		27,311
Substandard or Lower	3,192		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 Lower	2,438		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 Lower	12,922		—		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.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents the balance of TDRs as of the indicated dates:



(Dollars in thousands)	March 31, 2022		December 31, 2021
Performing TDRs	$	12,933	$	14,204
Nonperforming TDRs	706		756
Total TDRs	$	13,639	$	14,960

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 extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total
Commercial and industrial	1	—	—	—	1



Residential	1	—	—	—	1
Consumer	1	—	2	1	4
Total	3	—	2	1	6


	Three months ended March 31, 2021
	Contractual payment reduction and term extension	Maturity Date Extension	Discharged 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..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 Modification		Post Modification
Commercial	$	(8)	$	(8)



Residential	6		6
Consumer	258		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 Modification		Post Modification




Residential	167		167
Consumer	830		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.