ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024 and 2023. The increase was primarily due to the impacts of the economic uncertainty and forecast and net loan growth.


(Dollars in thousands)	Commercial and Industrial		Owner-occupied Commercial		Commercial Mortgages		Construction		Commercial Small Business Leases		Residential(1)		Consumer(2)		Total
Three months ended March 31, 2024
Allowance for credit losses
Beginning balance	$	49,394	$	10,719	$	36,055	$	10,762	$	15,170	$	5,483	$	58,543	$	186,126

Charge-offs	(476)		—		(25)		—		(4,852)		(50)		(6,456)		(11,859)
Recoveries	1,766		201		2		—		591		89		575		3,224
Provision	5,218		(351)		765		197		4,550		(115)		4,874		15,138
Ending balance	$	55,902	$	10,569	$	36,797	$	10,959	$	15,459	$	5,407	$	57,536	$	192,629








Period-end allowance allocated to:
Loans evaluated on an individual basis	$	6,814	$	—	$	—	$	—	$	—	$	—	$	—	$	6,814
Loans evaluated on a collective basis	49,088		10,569		36,797		10,959		15,459		5,407		57,536		185,815
Ending balance	$	55,902	$	10,569	$	36,797	$	10,959	$	15,459	$	5,407	$	57,536	$	192,629
Period-end loan balances:
Loans evaluated on an individual basis	$	27,229	$	5,866	$	21,536	$	3,962	$	—	$	8,311	$	2,664	$	69,568
Loans evaluated on a collective basis	2,564,632		1,877,010		3,855,320		1,052,387		633,803		864,354		2,063,207		12,910,713
Ending balance	$	2,591,861	$	1,882,876	$	3,876,856	$	1,056,349	$	633,803	$	872,665	$	2,065,871	$	12,980,281

(1)Period-end loan balance excludes reverse mortgages at fair value of $2.5 million.

(2)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.


(Dollars in thousands)	Commercial and Industrial		Owner - occupied Commercial		Commercial Mortgages		Construction		Commercial Small Business Leases		Residential(1)		Consumer(2)		Total
Three months ended March 31, 2023
Allowance for credit losses
Beginning balance	$	49,526	$	6,019	$	21,473	$	6,987	$	9,868	$	4,668	$	53,320	$	151,861

Charge-offs	(6,563)		—		—		—		(2,899)		—		(4,204)		(13,666)
Recoveries	701		5		2		530		515		43		159		1,955
Provision	9,809		32		8,639		2,155		1,752		616		6,009		29,012
Ending balance	$	53,473	$	6,056	$	30,114	$	9,672	$	9,236	$	5,327	$	55,284	$	169,162








Period-end allowance allocated to:
Loans evaluated on an individual basis	$	4,562	$	91	$	—	$	—	$	—	$	—	$	—	$	4,653
Loans evaluated on a collective basis	48,911		5,965		30,114		9,672		9,236		5,327		55,284		164,509
Ending balance	$	53,473	$	6,056	$	30,114	$	9,672	$	9,236	$	5,327	$	55,284	$	169,162
Period-end loan balances:
Loans evaluated on an individual basis	$	22,443	$	1,907	$	7,343	$	760	$	—	$	6,522	$	1,916	$	40,891
Loans evaluated on a collective basis	2,546,299		1,844,754		3,465,740		1,022,951		576,584		779,538		1,866,511		12,102,377
Ending balance	$	2,568,742	$	1,846,661	$	3,473,083	$	1,023,711	$	576,584	$	786,060	$	1,868,427	$	12,143,268

(1)Period-end loan balance excludes reverse mortgages at fair value of $2.7 million.

(2)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

Schedule 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, 2024
(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 With No Allowance			Nonaccrual Loans With An Allowance			Total Loans
Commercial and industrial	$	2,674		$	590		$	3,264		$	2,561,347		$	12,987		$	14,263		$	2,591,861
Owner-occupied commercial	3,582			599			4,181			1,873,369			5,326			—			1,882,876
Commercial mortgages	1,866			49			1,915			3,853,407			21,534			—			3,876,856
Construction	7,343			—			7,343			1,045,044			3,962			—			1,056,349
Commercial small business leases	9,809			3			9,812			623,991			—			—			633,803
Residential(1)	1,793			—			1,793			865,684			5,188			—			872,665
Consumer(2)	17,651			10,121			27,772			2,035,411			2,688			—			2,065,871
Total	$	44,718		$	11,362		$	56,080		$	12,858,253		$	51,685		$	14,263		$	12,980,281
% of Total Loans	0.34		%	0.09		%	0.43		%	99.06		%	0.40		%	0.11		%	100		%

(1)Residential accruing current balances excludes reverse mortgages at fair value of $2.5 million.

(2)Includes $16.1 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.


	December 31, 2023
(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 With No Allowance(1)			Nonaccrual Loans With An Allowance			Total Loans
Commercial and industrial	$	1,630		$	293		$	1,923		$	2,518,934		$	13,645		$	5,568		$	2,540,070
Owner-occupied commercial	1,786			487			2,273			1,878,952			4,862			—			1,886,087
Commercial mortgages	1,190			—			1,190			3,777,698			22,292			—			3,801,180
Construction	—			—			—			1,022,913			12,617			—			1,035,530
Commercial small business leases	6,697			772			7,469			616,153			—			—			623,622
Residential(2)	9,261			—			9,261			856,055			2,579			—			867,895
Consumer(3)	15,249			10,032			25,281			1,984,407			2,446			—			2,012,134
Total	$	35,813		$	11,584		$	47,397		$	12,655,112		$	58,441		$	5,568		$	12,766,518
% of Total Loans	0.28		%	0.09		%	0.37		%	99.13		%	0.46		%	0.04		%	100		%

(1)Excludes nonaccruing loans held-for-sale.

(2)Residential accruing current balances excludes reverse mortgages, at fair value of $2.8 million.

(3)Includes $14.5 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.

The following tables show the performance of loans that have been modified in the last 12 months as of March 31, 2024 and 2023:


	March 31, 2024
(Dollars in thousands)	30-89 Days Past Due and Still Accruing		90+ Days Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans		Total
Commercial and industrial	$	—	$	—	$	58,771	$	24,133	$	82,904
Owner-occupied commercial	—		—		—		65		65
Commercial mortgages	—		—		9,345		—		9,345
Construction	—		—		17,331		—		17,331

Residential	—		—		44		167		211
Consumer(1)	1,096		258		7,646		387		9,387
Total	$	1,096	$	258	$	93,137	$	24,752	$	119,243

(1)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.


	March 31, 2023
	30-89 Days Past Due and Still Accruing		90+ Days Past Due and Still Accruing		Accruing Current Balances		Nonaccrual Loans		Total
Commercial and industrial	$	—	$	—	$	12,837	$	—	$	12,837
Owner-occupied commercial	—		—		148		—		148
Commercial mortgages	1,016		1,041		—		—		2,057



Consumer(1)	25		—		2,994		—		3,019
Total	$	1,041	$	1,041	$	15,979	$	—	$	18,061

(1)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

Schedule Of Collateral Dependent Loans

The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
(Dollars in thousands)	Property		Equipment and other		Property		Equipment and other
Commercial and industrial(1)	$	17,141	$	10,110	$	17,230	$	1,983
Owner-occupied commercial	5,326		—		4,862		—
Commercial mortgages	21,534		—		22,292		—
Construction	3,962		—		12,617		—

Residential(2)	5,188		—		2,579		—
Consumer(3)	2,687		—		2,446		—
Total	$	55,838	$	10,110	$	62,026	$	1,983

(1)Excludes nonaccruing loans held-for-sale in 2023.

(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 Credit Quality Indicators

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, 2024.


	Term Loans Amortized Cost Basis by Origination Year(1)
(Dollars in thousands)	2024		2023		2022		2021		2020		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial and industrial:
Risk Rating
Pass	$	176,858	$	762,244	$	450,439	$	163,071	$	191,450	$	385,731	$	9,218	$	233,340	$	2,372,351
Special mention	1,662		4,485		8,443		3,228		218		2,526		—		1,589		22,151
Substandard or Lower	43,408		52,654		41,001		6,973		5,473		33,163		—		14,687		197,359
	$	221,928	$	819,383	$	499,883	$	173,272	$	197,141	$	421,420	$	9,218	$	249,616	$	2,591,861
Current-period gross writeoffs	$	—	$	—	$	109	$	143	$	156	$	68	$	—	$	—	$	476
Owner-occupied commercial:
Risk Rating
Pass	$	59,845	$	340,919	$	242,775	$	239,418	$	206,450	$	473,877	$	—	$	188,984	$	1,752,268
Special mention	—		3,123		3,037		5,369		1,088		22,524		—		1,571		36,712
Substandard or Lower	—		1,196		17,957		11,550		5,430		45,662		—		12,101		93,896
	$	59,845	$	345,238	$	263,769	$	256,337	$	212,968	$	542,063	$	—	$	202,656	$	1,882,876
Current-period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial mortgages:
Risk Rating
Pass	$	126,380	$	806,552	$	461,038	$	488,314	$	431,554	$	1,051,552	$	—	$	395,234	$	3,760,624
Special mention	5,324		22,437		576		1,107		1,810		5,117		—		—		36,371
Substandard or Lower	—		10,159		1,153		1,009		21,285		30,794		—		15,461		79,861
	$	131,704	$	839,148	$	462,767	$	490,430	$	454,649	$	1,087,463	$	—	$	410,695	$	3,876,856
Current-period gross writeoffs	$	—	$	25	$	—	$	—	$	—	$	—	$	—	$	—	$	25
Construction:
Risk Rating
Pass	$	81,959	$	357,747	$	344,241	$	75,655	$	2,704	$	2,088	$	—	$	110,361	$	974,755
Special mention	7,148		35,402		5,257		—		—		—		—		—		47,807
Substandard or Lower	—		15,430		14,395		3,258		—		152		—		552		33,787
	$	89,107	$	408,579	$	363,893	$	78,913	$	2,704	$	2,240	$	—	$	110,913	$	1,056,349
Current-period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial small business leases:
Risk Rating
Performing	$	68,659	$	244,037	$	174,415	$	91,029	$	33,350	$	22,313	$	—	$	—	$	633,803
Nonperforming	—		—		—		—		—		—		—		—		—
	$	68,659	$	244,037	$	174,415	$	91,029	$	33,350	$	22,313	$	—	$	—	$	633,803
Current-period gross writeoffs	$	—	$	1,347	$	1,656	$	1,253	$	429	$	167	$	—	$	—	$	4,852
Residential(2):
Risk Rating
Performing	$	23,516	$	188,880	$	67,040	$	96,732	$	56,831	$	431,193	$	—	$	—	$	864,192
Nonperforming	—		—		167		3,538		483		4,285		—		—		8,473
	$	23,516	$	188,880	$	67,207	$	100,270	$	57,314	$	435,478	$	—	$	—	$	872,665
Current-period gross writeoffs	$	—	$	—	$	—	$	—	$	—	$	50	$	—	$	—	$	50
Consumer(3):
Risk Rating
Performing	$	54,669	$	423,471	$	538,009	$	144,717	$	99,941	$	296,127	$	500,904	$	5,329	$	2,063,167
Nonperforming	—		—		—		135		352		—		1,717		500		2,704
	$	54,669	$	423,471	$	538,009	$	144,852	$	100,293	$	296,127	$	502,621	$	5,829	$	2,065,871
Current-period gross writeoffs	$	286	$	677	$	4,239	$	774	$	380	$	100	$	—	$	—	$	6,456

(1)Origination date represents the most recent underwriting of the loan which includes new relationships, renewals and extensions.

(2)Excludes reverse mortgages at fair value.

(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

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, 2023.


	Term Loans Amortized Cost Basis by Origination Year(1)
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial and industrial:
Risk Rating
Pass	$	716,848	$	490,934	$	180,343	$	211,151	$	90,522	$	383,609	$	8,785	$	237,786	$	2,319,978
Special mention	7,209		11,860		2,804		463		735		743		—		1,649		25,463
Substandard or Lower	72,993		54,024		5,951		10,224		22,046		17,906		—		11,485		194,629
	$	797,050	$	556,818	$	189,098	$	221,838	$	113,303	$	402,258	$	8,785	$	250,920	$	2,540,070
Current-period gross writeoffs	$	—	$	568	$	5,214	$	1,747	$	7,567	$	11,557	$	—	$	—	$	26,653
Owner-occupied commercial:
Risk Rating
Pass	$	346,908	$	264,895	$	251,262	$	212,365	$	194,153	$	313,801	$	—	$	178,150	$	1,761,534
Special mention	2,885		3,115		5,419		1,105		11,002		5,559		—		1,393		30,478
Substandard or Lower	996		18,865		11,109		6,787		8,019		35,330		—		12,969		94,075
	$	350,789	$	286,875	$	267,790	$	220,257	$	213,174	$	354,690	$	—	$	192,512	$	1,886,087
Current-period gross writeoffs	$	—	$	—	$	—	$	—	$	184	$	—	$	—	$	—	$	184
Commercial mortgages:
Risk Rating
Pass	$	847,137	$	464,895	$	526,280	$	465,354	$	486,855	$	619,448	$	—	$	290,083	$	3,700,052
Special mention	20,632		—		67		1,837		10,666		—		—		—		33,202
Substandard or Lower	9,862		1,153		1,047		13,837		14,352		12,212		—		15,463		67,926
	$	877,631	$	466,048	$	527,394	$	481,028	$	511,873	$	631,660	$	—	$	305,546	$	3,801,180
Current-period gross writeoffs	$	—	$	83	$	—	$	217	$	—	$	—	$	—	$	—	$	300
Construction:
Risk Rating
Pass	$	429,055	$	319,958	$	111,333	$	3,030	$	388	$	7,016	$	—	$	87,741	$	958,521
Special mention	28,718		19,769		8,227		—		—		—		—		—		56,714
Substandard or Lower	5,698		—		3,308		8,598		2,134		—		—		557		20,295
	$	463,471	$	339,727	$	122,868	$	11,628	$	2,522	$	7,016	$	—	$	88,298	$	1,035,530
Current-period gross writeoffs	$	—	$	—	$	794	$	—	$	—	$	—	$	—	$	—	$	794
Commercial small business leases:
Risk Rating
Performing	$	260,348	$	191,746	$	103,428	$	40,697	$	15,411	$	11,992	$	—	$	—	$	623,622
Nonperforming	—		—		—		—		—		—		—		—		—
	$	260,348	$	191,746	$	103,428	$	40,697	$	15,411	$	11,992	$	—	$	—	$	623,622
Current-period gross writeoffs	$	1,528	$	7,250	$	4,447	$	1,454	$	735	$	227	$	—	$	—	$	15,641
Residential(2):
Risk Rating
Performing	$	188,644	$	67,358	$	102,982	$	57,273	$	33,499	$	412,099	$	—	$	—	$	861,855
Nonperforming	—		170		713		486		1,251		3,420		—		—		6,040
	$	188,644	$	67,528	$	103,695	$	57,759	$	34,750	$	415,519	$	—	$	—	$	867,895
Current-period gross writeoffs	$	33	$	—	$	—	$	—	$	—	$	8	$	—	$	—	$	41
Consumer(3):
Risk Rating
Performing	$	391,580	$	568,919	$	153,930	$	104,248	$	44,996	$	245,849	$	494,663	$	5,662	$	2,009,847
Nonperforming	—		—		135		352		176		30		1,362		232		2,287
	$	391,580	$	568,919	$	154,065	$	104,600	$	45,172	$	245,879	$	496,025	$	5,894	$	2,012,134
Current-period gross writeoffs	$	1,790	$	15,227	$	4,411	$	313	$	198	$	455	$	—	$	—	$	22,394

(1)Origination date represents the most recent underwriting of the loan which includes new relationships, renewals and extensions.

(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 Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following tables show the period-end amortized cost basis of troubled loans modified during the three months ended March 31, 2024 and 2023, disaggregated by portfolio segment and type of modification granted:


	Three Months Ended March 31, 2024
(Dollars in thousands)	Term Extension		More-Than-Insignificant Payment Delay		Combination- Term Extension and Payment Delay		Combination- Term Extension and Interest Rate Reduction		Combination - Payment Delay and Interest Rate Reduction		Total		% of Total Loan Category
Commercial and industrial	$	31,865	$	349	$	820	$	—	$	—	$	33,034	1.27	%


Construction	1,910		—		—		—		—		1,910		0.18	%


Consumer(1)	325		702		1,932		—		—		2,959		0.14	%
Total	$	34,100	$	1,051	$	2,752	$	—	$	—	$	37,903	0.29	%

(1)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.


	Three months ended March 31, 2023
(Dollars in thousands)	Term Extension		More-Than-Insignificant Payment Delay		Combination- Term Extension and Payment Delay		Combination- Term Extension and Interest Rate Reduction		Combination - Payment Delay and Interest Rate Reduction		Total		% of Total Loan Category
Commercial and industrial	$	12,837	$	—	$	—	$	—	$	—	$	12,837	0.41	%
Owner-occupied commercial	—		—		—		148		—		148		0.01	%
Commercial mortgages	2,057		—		—		—		—		2,057		0.06	%



Consumer(1)	803		162		1,777		158		119		3,019		0.16	%
Total	$	15,697	$	162	$	1,777	$	306	$	119	$	18,061	0.15	%

(1)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

The following table describes the financial effect of the modifications made to troubled loans during the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31, 2024
	Term Extension(1)	Interest Rate Reduction(2)	More-Than-Insignificant Payment Delay(3)
Commercial and industrial	1.24	—%	0.01%


Construction	1.00	—	—


Consumer	0.47	—	0.02

	Three Months Ended March 31, 2023
	Term Extension(1)	Interest Rate Reduction(2)	More-Than-Insignificant Payment Delay(3)
Commercial and industrial	0.91	—%	—%
Owner-occupied commercial	0.96	2.56	—
Commercial mortgages	0.48	—	—



Consumer	6.71	2.07	0.02

(1)Represents the weighted-average increase in the life of modified loans measured in years, which reduces monthly payment amounts for borrowers.

(2)Represents the weighted-average decrease in the contractual interest rate on the modified loans.

(3)Represents the percentage of loans deferred over the total loan portfolio excluding reverse mortgages at fair value.

The following table shows the amortized cost of loans that received a term extension modification that had a payment default during the three months ended March 31, 2024 and were modified in the 12 months before default to borrowers experiencing financial difficulty. There were no loans that had a payment default during the three months ended March 31, 2023 and were modified in the 12 months before default to borrowers experiencing financial difficulty.


	Three Months Ended March 31, 2024
	Term Extension		More-Than-Insignificant Payment Delay		Total
Commercial and industrial	$	8,694	$	199	$	8,893






Total	$	8,694	$	199	$	8,893