cost into pools, the Company considered various risk characteristics in its analysis. Generally, the segmentation utilized represents the level at which the Company develops and documents its systematic methodology to determine the allowance for credit losses for the financial assets held at amortized cost, specifically the Company's loan portfolio and debt securities classified as held-to-maturity. Descriptions of the Company’s loan portfolio segments and major debt security types are included in Note (5) “Allowance for Credit Losses” of the 2022 Form 10-K.

In accordance with ASC 326, the Company elected to not measure an allowance for credit losses on accrued interest. As such accrued interest is written off in a timely manner when deemed uncollectible. Any such write-off of accrued interest will reverse previously recognized interest income. In addition, the Company elected to not include accrued interest within presentation and disclosures of the carrying amount of financial assets held at amortized cost. This election is applicable to the various disclosures included within the Company's financial statements. Accrued interest related to financial assets held at amortized cost is included within accrued interest receivable and other assets within the Company's Consolidated Statements of Condition and totaled $245.1 million at March 31, 2023, $214.0 million at December 31, 2022, and $124.4 million at March 31, 2022.


As of March 31, 2023			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial






Commercial, industrial and other	$	47,950	$	—	$	10,755	$	95,593	$	12,422,687	$	12,576,985

Commercial real estate
Construction and development	5,404		—		4,438		19,616		1,567,595		1,597,053
Non-construction	5,792		—		16,101		53,064		8,567,068		8,642,025







Home equity	1,190		—		116		1,118		334,592		337,016

Residential real estate, excluding early buy-out loans	11,333		104		74		19,183		2,278,699		2,309,393


Premium finance receivables
Property and casualty insurance loans	18,543		9,215		14,287		32,545		5,664,290		5,738,880
Life insurance loans	—		1,066		21,552		52,975		8,050,209		8,125,802

Consumer and other	6		87		10		379		41,683		42,165
Total loans, net of unearned income, excluding early buy-out loans	$	90,218	$	10,472	$	67,333	$	274,473	$	38,926,823	$	39,369,319
Early buy-out loans guaranteed by U.S. government agencies (1)	29,245		36,920		—		1,485		128,502		196,152
Total loans, net of unearned income	$	119,463	$	47,392	$	67,333	$	275,958	$	39,055,325	$	39,565,471


As of December 31, 2022			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial






Commercial, industrial and other	$	35,579	$	462	$	21,128	$	56,696	$	12,435,299	$	12,549,164

Commercial real estate
Construction and development	416		—		361		14,390		1,471,763		1,486,930
Non-construction	5,971		—		1,883		16,285		8,439,878		8,464,017







Home equity	1,487		—		—		2,152		329,059		332,698

Residential real estate, excluding early buy-out loans	10,171		—		4,364		9,982		2,183,078		2,207,595

Premium finance receivables
Property and casualty insurance loans	13,470		15,841		14,926		40,557		5,764,665		5,849,459
Life insurance loans	—		17,245		5,260		68,725		7,999,768		8,090,998

Consumer and other	6		49		18		224		50,539		50,836
Total loans, net of unearned income, excluding early buy-out loans	$	67,100	$	33,597	$	47,940	$	209,011	$	38,674,049	$	39,031,697
Early buy-out loans guaranteed by U.S. government agencies (1)	31,279		47,450		984		1,584		83,491		164,788
Total loans, net of unearned income	$	98,379	$	81,047	$	48,924	$	210,595	$	38,757,540	$	39,196,485


As of March 31, 2022			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial






Commercial, industrial and other	$	16,878	$	—	$	1,294	$	31,889	$	11,533,902	$	11,583,963

Commercial real estate
Construction and development	1,054		—		—		1,409		1,393,943		1,396,406
Non-construction	11,247		—		2,648		28,732		7,796,041		7,838,668







Home equity	1,747		—		199		545		318,944		321,435

Residential real estate, excluding early buy-out loans	7,262		—		293		18,808		1,723,526		1,749,889

Premium finance receivables
Property and casualty insurance loans	6,707		12,363		8,890		21,278		4,888,170		4,937,408
Life insurance loans	—		—		22,401		15,522		7,316,240		7,354,163

Consumer and other	4		43		5		221		48,246		48,519
Total loans, net of unearned income, excluding early buy-out loans	$	44,899	$	12,406	$	35,730	$	118,404	$	35,019,012	$	35,230,451
Early buy-out loans guaranteed by U.S. government agencies (1)	4,661		28,958		—		185		16,292		50,096
Total loans, net of unearned income	$	49,560	$	41,364	$	35,730	$	118,589	$	35,035,304	$	35,280,547


	Year of Origination														Revolving		Total
(In thousands)	2023		2022		2021		2020		2019		Prior		Revolving		to Term		Loans
Loan Balances:
Commercial, industrial and other
Pass	$	752,119	$	2,576,073	$	2,081,628	$	940,341	$	603,016	$	1,213,066	$	3,872,419	$	3,497	$	12,042,159
Special mention	402		55,314		92,315		9,462		23,220		10,695		149,012		268		340,688
Substandard accrual	—		13,415		40,397		2,401		12,670		40,814		36,035		456		146,188
Substandard nonaccrual/doubtful	—		550		5,479		10,985		28,490		2,215		231		—		47,950
Total commercial, industrial and other	$	752,521	$	2,645,352	$	2,219,819	$	963,189	$	667,396	$	1,266,790	$	4,057,697	$	4,221	$	12,576,985






Construction and development
Pass	$	42,635	$	506,714	$	512,801	$	204,113	$	111,497	$	119,478	$	12,626	$	369	$	1,510,233
Special mention	—		—		1,475		16,480		23,494		14,360		—		—		55,809
Substandard accrual	—		2,337		—		8,301		—		14,969		—		—		25,607
Substandard nonaccrual/doubtful	—		4,190		798		—		—		416		—		—		5,404
Total construction and development	$	42,635	$	513,241	$	515,074	$	228,894	$	134,991	$	149,223	$	12,626	$	369	$	1,597,053
Non-construction
Pass	$	472,528	$	1,862,370	$	1,441,054	$	1,002,397	$	814,910	$	2,637,342	$	184,246	$	649	$	8,415,496
Special mention	—		4,351		11,872		2,140		29,868		74,174		1,439		—		123,844
Substandard accrual	—		—		3,163		22,041		16,827		54,862		—		—		96,893
Substandard nonaccrual/doubtful	—		—		—		—		—		5,792		—		—		5,792
Total non-construction	$	472,528	$	1,866,721	$	1,456,089	$	1,026,578	$	861,605	$	2,772,170	$	185,685	$	649	$	8,642,025
Home equity
Pass	$	—	$	—	$	—	$	—	$	56	$	5,633	$	317,387	$	—	$	323,076
Special mention	—		—		—		—		—		1,430		2,193		—		3,623
Substandard accrual	—		—		—		—		—		8,214		869		44		9,127
Substandard nonaccrual/doubtful	—		—		77		116		18		880		99		—		1,190
Total home equity	$	—	$	—	$	77	$	116	$	74	$	16,157	$	320,548	$	44	$	337,016
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	—	$	769	$	9,250	$	19,430	$	166,703	$	—	$	—	$	196,152
Pass	95,403		815,003		825,881		225,297		118,840		196,150		—		—		2,276,574


Special mention	40		3,816		718		1,992		542		4,488		—		—		11,596
Substandard accrual	323		1,204		1,825		1,182		1,100		4,256		—		—		9,890
Substandard nonaccrual/doubtful	—		284		1,100		759		1,665		7,525		—		—		11,333
Total residential real estate	$	95,766	$	820,307	$	830,293	$	238,480	$	141,577	$	379,122	$	—	$	—	$	2,505,545
Premium finance receivables - property and casualty
Pass	$	2,826,947	$	2,757,313	$	35,647	$	5,270	$	906	$	—	$	—	$	—	$	5,626,083
Special mention	42,025		49,190		969		17		—		—		—		—		92,201
Substandard accrual	205		1,700		148		—		—		—		—		—		2,053
Substandard nonaccrual/doubtful	777		16,975		779		12		—		—		—		—		18,543
Total premium finance receivables - property and casualty	$	2,869,954	$	2,825,178	$	37,543	$	5,299	$	906	$	—	$	—	$	—	$	5,738,880
Premium finance receivables - life
Pass	$	49,164	$	550,396	$	830,917	$	1,056,414	$	936,674	$	4,699,645	$	—	$	—	$	8,123,210
Special mention	—		—		1,156		1,436		—		—		—		—		2,592
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	49,164	$	550,396	$	832,073	$	1,057,850	$	936,674	$	4,699,645	$	—	$	—	$	8,125,802
Consumer and other
Pass	$	750	$	2,469	$	1,414	$	200	$	433	$	5,306	$	31,392	$	—	$	41,964
Special mention	—		6		1		—		2		133		3		—		145
Substandard accrual	—		2		—		—		—		40		8		—		50
Substandard nonaccrual/doubtful	—		—		6		—		—		—		—		—		6
Total consumer and other	$	750	$	2,477	$	1,421	$	200	$	435	$	5,479	$	31,403	$	—	$	42,165
Total loans
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	—	$	769	$	9,250	$	19,430	$	166,703	$	—	$	—	$	196,152
Pass	4,239,546		9,070,338		5,729,342		3,434,032		2,586,332		8,876,620		4,418,070		4,515		38,358,795
Special mention	42,467		112,677		108,506		31,527		77,126		105,280		152,647		268		630,498
Substandard accrual	528		18,658		45,533		33,925		30,597		123,155		36,912		500		289,808
Substandard nonaccrual/doubtful	777		21,999		8,239		11,872		30,173		16,828		330		—		90,218
Total loans	$	4,283,318	$	9,223,672	$	5,892,389	$	3,520,606	$	2,743,658	$	9,288,586	$	4,607,959	$	5,283	$	39,565,471
Current period gross write offs	$	478	$	4,893	$	1,194	$	337	$	318	$	131	$	—	$	—	$	7,351

The Company conducts an assessment of its investment securities, including those classified as held-to-maturity, at the time of purchase and on at least an annual basis to ensure such investment securities remain within appropriate levels of risk and continue to perform satisfactorily in fulfilling its obligations. The Company considers, among other factors, the nature of the securities and credit ratings or financial condition of the issuer. If available, the Company obtains a credit rating for issuers from a Nationally Recognized Statistical Rating Organization (“NRSRO”) for consideration. If no such rating is available for an issuer, the Company performs an internal rating based on the scale utilized within the loan portfolio as discussed above. For purposes of the table below, the Company has converted any issuer rating from an NRSRO into the Company’s internal ratings based on Investment Policy and review by the Company’s management.

The Company's allowance for credit losses consists of the allowance for loan losses, the allowance for unfunded commitment losses and the allowance for held-to-maturity debt security losses. In accordance with ASC 326, the Company measures the allowance for credit losses at the time of origination or purchase of a financial asset, representing an estimate of lifetime expected credit losses on the related asset. When developing its estimate, the Company considers available information relevant to assessing the collectability of cash flows, from both internal and external sources. Historical credit loss experience is one input in the estimation process as well as inputs relevant to current conditions and reasonable and supportable forecasts. In considering past events, the Company considers the relevance, or lack thereof, of historical information due to changes in such things as financial asset underwriting or collection practices, and changes in portfolio mix due to changing business plans and strategies. In considering current conditions and forecasts, the Company considers both the current economic environment and the forecasted direction of the economic environment with emphasis on those factors deemed relevant to or driving changes in expected credit losses. As significant judgment is required, the review of the appropriateness of the allowance for credit losses is performed quarterly by various committees with participation by the Company's executive management.

The allowance for credit losses is measured on a collective or pooled basis when similar risk characteristics exist, based upon the segmentation discussed above. The Company utilizes modeling methodologies that estimate lifetime credit loss rates on each pool, including methodologies estimating the probability of default and loss given default on specific segments. Historical credit loss history is adjusted for reasonable and supportable forecasts developed by the Company on a quantitative or qualitative basis and incorporates third party economic forecasts. Reasonable and supportable forecasts consider the macroeconomic factors that are most relevant to evaluating and predicting expected credit losses in the Company's financial assets. Currently, the Company utilizes an eight quarter forecast period using a single macroeconomic scenario provided by a

third party and reviewed within the Company's governance structure. For periods beyond the ability to develop reasonable and supportable forecasts, the Company reverts to historical loss rates at an input level, straight-line over a four quarter reversion period. Expected credit losses are measured over the contractual term of the financial asset with consideration of expected prepayments. Expected extensions, renewals or modifications of the financial asset are considered when the expected extension, renewal or modification is contained within the existing agreement and is not unconditionally cancelable. The methodologies discussed above are applied to both current asset balances on the Company's Consolidated Statements of Condition and off-balance sheet commitments (i.e. unfunded lending-related commitments).

Assets that do not share similar risk characteristics with a pool are assessed for the allowance for credit losses on an individual basis. These typically include assets experiencing financial difficulties, including assets rated as substandard nonaccrual and doubtful. If foreclosure is probable or the asset is considered collateral-dependent, expected credit losses are measured based upon the fair value of the underlying collateral adjusted for selling costs, if appropriate. Underlying collateral across the Company's segments consist primarily of real estate, land and construction assets as well as general business assets of the borrower. As of March 31, 2023, excluding loans carried at fair value, substandard nonaccrual loans totaling $23.3 million in carrying balance had no related allowance for credit losses.


Three months ended March 31, 2023			Commercial Real Estate		Home Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)	Commercial

Allowance for credit losses at beginning of period	$	142,769	$	184,352	$	7,573	$	11,585	$	10,671	$	498	$	357,448
Cumulative effect adjustment from the adoption of ASU 2022-02	111		1,356		(33)		(692)		—		(1)		741
Other adjustments	—		—		—		—		4		—		4
Charge-offs	(2,543)		(5)		—		—		(4,650)		(153)		(7,351)
Recoveries	392		100		35		4		1,323		32		1,886
Provision for credit losses	8,772		8,977		153		537		4,607		24		23,070


Allowance for credit losses at period end	$	149,501	$	194,780	$	7,728	$	11,434	$	11,955	$	400	$	375,798
By measurement method:
Individually measured	$	11,281	$	1,621	$	—	$	—	$	—	$	1	$	12,903
Collectively measured	138,220		193,159		7,728		11,434		11,955		399		362,895

Loans at period end
Individually measured	$	47,950	$	11,196	$	1,190	$	11,280	$	—	$	6	$	71,622
Collectively measured	12,529,035		10,227,882		335,826		2,286,733		13,864,682		42,159		39,286,317

Loans held at fair value	—		—		—		207,532		—		—		207,532


Three months ended March 31, 2022	Commercial		Commercial Real Estate		Home Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)

Allowance for credit losses at beginning of period	$	119,307	$	144,583	$	10,699	$	8,782	$	15,859	$	423	$	299,653

Other adjustments	—		—		—		—		22		—		22

Charge-offs	(1,414)		(777)		(197)		(466)		(1,678)		(193)		(4,725)
Recoveries	538		32		93		5		1,476		49		2,193
Provision for credit losses	2,480		1,068		(29)		1,108		(957)		355		4,025
Allowance for credit losses at period end	$	120,911	$	144,906	$	10,566	$	9,429	$	14,722	$	634	$	301,168
By measurement method:
Individually measured	$	3,698	$	522	$	127	$	800	$	—	$	5	$	5,152
Collectively measured	117,213		144,384		10,439		8,629		14,722		629		296,016

Loans at period end
Individually measured	$	19,651	$	22,370	$	12,904	$	17,842	$	—	$	79	$	72,846
Collectively measured	11,564,312		9,212,704		308,531		1,724,159		12,291,571		48,440		35,149,717

Loans held at fair value	—		—		—		57,984		—		—		57,984

For the three months ended March 31, 2023, and 2022, the Company recognized approximately $23.1 million and $4.0 million of provision for credit losses, respectively, related to loans and lending agreements. The provision for each period was primarily the result of loan growth as well as the Company's macroeconomic forecasts of key model inputs (most notably, Baa corporate credit spreads). Uncertainties remain regarding expected economic performance and macroeconomic forecasts utilized in the measurement of the allowance for credit losses as of March 31, 2023. Other key drivers of provision for credit losses in these portfolios include, but are not limited to, stable loan risk rating migration. Net charge-offs in the three month periods ending March 31, 2023 and 2022, totaled $5.5 million and $2.5 million, respectively.

The allowance for credit losses on the Company’s held-to-maturity debt securities is presented as a reduction to the amortized cost basis of held-to-maturity securities on the Company's Consolidated Statements of Condition. For the three month period ended March 31, 2023 and 2022, the Company recognized approximately $(25,000) and $81,000, respectively, of provision for credit losses related to held-to-maturity securities. At March 31, 2023, the Company did not identify any losses within its portfolio that it would deem a credit loss and require additional measurement of an allowance for credit losses.

The Company’s approach to restructuring or modifying loans is built on its credit risk rating system, which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors, including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company’s Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower’s financial condition and prospects for repayment under the revised terms. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is 5 or better are not experiencing financial difficulties.

Restructurings may arise when, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to other real estate owned (“OREO”), which is included within other assets in the Consolidated Statements of Condition. For any residential real estate property collateralizing a consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. At March 31, 2023, the Company had $1.1 million of foreclosed residential real estate properties included within OREO. Further, the recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $53.4 million and $7.7 million at March 31, 2023 and 2022, respectively.


Three months ended March 31, 2023 (Dollars in thousands)	Total (1)		Percentage of Total Class of Loan		Extension of Term (1)		Reduction of Interest Rate (1)			Delay in Contractual Payments (1)		Extension of Term and Reduction of Interest Rate (1)

Commercial
Commercial, industrial and other	$	37,474	0.3	%	$	1,938	$	221		$	35,265	$	50
Commercial real estate

Non-construction	1,333		—		467		827			39		—
Home equity	203		0.1		203		—			—		—
Residential real estate	1,708		0.1		1,253		271			—		184
Premium finance receivables
Property and casualty insurance loans	11		0.0		3		—			—		8
Total loans	$	40,729	0.1	%	$	3,864	$	1,319		$	35,304	$	242

Weighted average magnitude of modifications:
Duration of extension and delayed payment terms					27 months					17 months
Reduction of interest rate							275		bps