Loans Receivable

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Loans Receivable

Loans Receivable

The following table shows a summary of our loans receivable at amortized cost basis at December 31, 2022 and December 31, 2021 (in thousands):                                                

	December 31, 2022				December 31, 2021
	Originated (1)		Acquired (2)	Total	Originated (1)	Acquired (2)	Total
Personal Banking:
Residential mortgage loans (3)	$	3,327,879	170,720	3,498,599	2,783,459	211,161	2,994,620
Home equity loans	1,131,641		166,033	1,297,674	1,107,202	212,729	1,319,931
Vehicle loans	1,965,385		91,398	2,056,783	1,384,246	99,985	1,484,231
Consumer loans	104,284		7,588	111,872	307,961	46,556	354,517
Total Personal Banking	6,529,189		435,739	6,964,928	5,582,868	570,431	6,153,299
Commercial Banking:
Commercial real estate loans	2,135,607		312,421	2,448,028	2,202,027	423,454	2,625,481
Commercial real estate loans - owner occupied	341,704		33,823	375,527	321,253	68,750	390,003
Commercial loans	1,082,914		49,055	1,131,969	765,877	81,732	847,609
Total Commercial Banking	3,560,225		395,299	3,955,524	3,289,157	573,936	3,863,093
Total loans receivable, gross	10,089,414		831,038	10,920,452	8,872,025	1,144,367	10,016,392
Allowance for credit losses	(107,379)		(10,657)	(118,036)	(86,750)	(15,491)	(102,241)
Total loans receivable, net (4)	$	9,982,035	820,381	10,802,416	8,785,275	1,128,876	9,914,151

(1)Includes originated and purchased loan pools purchased in an asset acquisition.

(2)Includes loans subject to purchase accounting in a business combination.

(3)Includes $9.9 million and $25.1 million of loans held-for-sale at December 31, 2022 and December 31, 2021, respectively.

(4)Includes $76.1 million and $62.8 million of net unearned income, unamortized premiums and discounts and deferred fees and costs at December 31, 2022 and December 31, 2021, respectively.

During the year ended December 31, 2022, the Company purchased a total of $182.8 million small business equipment finance loan pools and a total of $188.3 million one- to four-family jumbo mortgage loan pools.

As of December 31, 2022 and 2021, we serviced loans for others approximating $1.549 billion and $1.622 billion, respectively. These loans serviced for others are not our assets and are not included in our financial statements.

As of December 31, 2022 and 2021, approximately 41% of our loan portfolio was secured by properties located in Pennsylvania. We do not believe we have significant concentrations of credit risk to any one group of borrowers given our underwriting and collateral requirements.

Loans receivable as of December 31, 2022 and 2021 include $3.333 billion and $3.277 billion, respectively, of adjustable rate loans and $7.511 billion and $6.739 billion, respectively, of fixed rate loans.

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the year ended December 31, 2022 (in thousands):                        

	Balance as of December 31, 2022		Current period provision	Charge-offs	Recoveries	Balance as of December 31, 2021
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	19,261	13,129	(2,033)	792	7,373
Home equity loans	5,902		540	(1,469)	1,531	5,300
Vehicle loans	23,059		8,863	(3,621)	2,334	15,483
Consumer loans	665		1,013	(4,785)	1,553	2,884
Total Personal Banking	48,887		23,545	(11,908)	6,210	31,040
Commercial Banking:
Commercial real estate loans	44,506		(12,633)	(7,366)	10,364	54,141
Commercial real estate loans - owner occupied	4,004		36	—	85	3,883
Commercial loans	20,639		6,912	(1,657)	2,207	13,177
Total Commercial Banking	69,149		(5,685)	(9,023)	12,656	71,201
Total	$	118,036	17,860	(20,931)	18,866	102,241
Allowance for Credit Losses - off-balance-sheet exposure
Personal Banking:
Residential mortgage loans	$	4	2	—	—	2
Home equity loans	74		35	—	—	39
Total Personal Banking	78		37	—	—	41
Commercial Banking:
Commercial real estate loans	5,382		4,501	—	—	881
Commercial real estate loans - owner occupied	287		145	—	—	142
Commercial loans	5,288		3,894	—	—	1,394
Total Commercial Banking	10,957		8,540	—	—	2,417
Total off-balance-sheet exposure	$	11,035	8,577	—	—	2,458

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the year ended December 31, 2021 (in thousands):                            

	Balance as of December 31, 2021		Current period provision	Charge-offs	Recoveries	Balance as of December 31, 2020
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	7,373	2,844	(3,672)	935	7,266
Home equity loans	5,300		1,788	(3,380)	900	5,992
Vehicle loans	15,483		2,754	(4,632)	2,536	14,825
Consumer loans	2,884		3,070	(5,417)	2,360	2,871
Total Personal Banking	31,040		10,456	(17,101)	6,731	30,954
Commercial Banking:
Commercial real estate loans	54,141		(15,496)	(11,933)	2,189	79,381
Commercial real estate loans - owner occupied	3,883		(5,852)	(890)	107	10,518
Commercial loans	13,177		(991)	(4,213)	4,807	13,574
Total Commercial Banking	71,201		(22,339)	(17,036)	7,103	103,473
Total	$	102,241	(11,883)	(34,137)	13,834	134,427
Allowance for Credit Losses - off-balance-sheet exposure
Personal Banking:
Residential mortgage loans	$	2	—	—	—	2
Home equity loans	39		4	—	—	35
Total Personal Banking	41		4	—	—	37
Commercial Banking:
Commercial real estate loans	881		(2,568)	—	—	3,449
Commercial real estate loans - owner occupied	142		(184)	—	—	326
Commercial loans	1,394		(1,157)	—	—	2,551
Total Commercial Banking	2,417		(3,909)	—	—	6,326
Total off-balance-sheet exposure	$	2,458	(3,905)	—	—	6,363

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the year ended December 31, 2020, and includes the cumulative effect of adopting ASU 2016-13 (in thousands):            

	Balance as of December 31, 2020		Current period provision	Charge-offs	Recoveries	Initial ACL on loans purchased with credit deterioration	Cumulative effect of ASU 2016-13*	Balance as of December 31, 2019
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	7,266	(3,289)	(917)	362	1,095	7,441	2,574
Home equity loans	5,992		(3,357)	(608)	766	216	5,786	3,189
Vehicle loans	14,825		11,416	(6,827)	1,867	235	842	7,292
Consumer loans	2,871		4,126	(5,831)	1,542	157	(2,424)	5,301
Total Personal Banking	30,954		8,896	(14,183)	4,537	1,703	11,645	18,356
Commercial Banking:
Commercial real estate loans	79,381		58,483	(4,240)	1,287	5,720	2,288	15,843
Commercial real estate loans - owner occupied	10,518		2,588	(83)	27	963	1,278	5,745
Commercial loans	13,574		14,008	(16,212)	1,741	459	(4,419)	17,997
Total Commercial Banking	103,473		75,079	(20,535)	3,055	7,142	(853)	39,585
Total	134,427		83,975	(34,718)	7,592	8,845	10,792	57,941
Allowance for Credit Losses - off-balance-sheet exposure
Personal Banking:
Residential mortgage loans	2		2	—	—	—	—	—
Home equity loans	35		5	—	—	—	(293)	323
Consumer loans	—		—	—	—	—	(402)	402
Total Personal Banking	37		7	—	—	—	(695)	725
Commercial Banking:
Commercial real estate loans	3,449		1,438	—	—	—	1,934	77
Commercial real estate loans - owner occupied	326		235	—	—	—	88	3
Commercial loans	2,551		1,459	—	—	—	923	169
Total Commercial Banking	6,326		3,132	—	—	—	2,945	249
Total off-balance sheet exposure	$	6,363	3,139	—	—	—	2,250	974

* Includes the impact of the initial allowance on PCD loans of $517,000

During the year ended December 31, 2020, we sold $50.0 million of loans that were classified as held-for-investment, for a gain of $1.3 million, which is reported in gain on sale of loans on the Consolidated Statements of Income.

    The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2022 (in thousands):                                        

	Total loans receivable		Allowance for credit losses	Nonaccrual loans (1)	Loans 90 days past due and accruing	TDRs	Allowance related to TDRs	Additional commitments to customers with loans classified as TDRs
Personal Banking:
Residential mortgage loans	$	3,498,599	19,261	7,574	—	6,279	1,069	—
Home equity loans	1,297,674		5,902	4,145	—	1,470	546	—
Vehicle loans	2,056,783		23,059	3,771	2	—	—	—
Consumer loans	111,872		665	256	405	—	—	—
Total Personal Banking	6,964,928		48,887	15,746	407	7,749	1,615	—
Commercial Banking:
Commercial real estate loans	2,448,028		44,506	62,239	—	31,980	638	400
Commercial real estate loans - owner occupied	375,527		4,004	624	—	94	31	—
Commercial loans	1,131,969		20,639	2,627	337	858	116	4
Total Commercial Banking	3,955,524		69,149	65,490	337	32,932	785	404
Total	$	10,920,452	118,036	81,236	744	40,681	2,400	404

(1)Includes $29.2 million of nonaccrual TDRs.

    The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2021 (in thousands):                                        

	Total loans receivable		Allowance for credit losses	Nonaccrual loans (1)	Loans 90 days past due and accruing	TDRs	Allowance related to TDRs	Additional commitments to customers with loans classified as TDRs
Personal Banking:
Residential mortgage loans	$	2,994,620	7,373	10,402	—	6,749	1,442	—
Home equity loans	1,319,931		5,300	5,758	—	1,781	718	—
Vehicle loans	1,484,231		15,483	3,263	—	—	—	—
Consumer loans	354,517		2,884	675	331	—	—	—
Total Personal Banking	6,153,299		31,040	20,098	331	8,530	2,160	—
Commercial Banking:
Commercial real estate loans	2,625,481		54,141	129,666	—	17,025	2,024	400
Commercial real estate loans - owner occupied	390,003		3,883	1,233	—	159	24	—
Commercial loans	847,609		13,177	7,474	—	4,574	609	60
Total Commercial Banking	3,863,093		71,201	138,373	—	21,758	2,657	460
Total	$	10,016,392	102,241	158,471	331	30,288	4,817	460

(1)Includes $17.2 million of nonaccrual TDRs.

The following table presents the amortized cost of our loans on nonaccrual status as of the beginning and end of the year ended December 31, 2022 (in thousands):                                             

	Nonaccrual loans at  January 1, 2022		December 31, 2022
			Nonaccrual loans with an allowance	Nonaccrual loans with no allowance	Total Nonaccrual loans at the end of the period	Loans 90 days past due and accruing
Personal Banking:
Residential mortgage loans	$	10,402	7,574	—	7,574	—
Home equity loans	5,758		3,887	258	4,145	—
Vehicle loans	3,263		2,175	1,596	3,771	2
Consumer loans	675		256	—	256	405
Total Personal Banking	20,098		13,892	1,854	15,746	407
Commercial Banking:
Commercial real estate loans	129,666		22,182	40,057	62,239	—
Commercial real estate loans - owner occupied	1,233		624	—	624	—
Commercial loans	7,474		2,024	603	2,627	337
Total Commercial Banking	138,373		24,830	40,660	65,490	337
Total	$	158,471	38,722	42,514	81,236	744

During the year ended December 31, 2022, we recognized $678,000 of interest income on nonaccrual and troubled debt restructuring loans.

The following table presents the amortized cost of our loans on nonaccrual status as of the beginning and end of the year ended December 31, 2021, (in thousands):                                            

	Nonaccrual loans at January 1, 2021		December 31, 2021
			Nonaccrual loans with an allowance	Nonaccrual loans with no allowance	Total Nonaccrual loans at the end of the period	Loans 90 days past and accruing
Personal Banking:
Residential mortgage loans	$	15,924	10,402	—	10,402	—
Home equity loans	9,123		5,551	207	5,758	—
Vehicle loans	5,533		3,251	12	3,263	—
Consumer loans	1,031		674	1	675	331
Total Personal Banking	31,611		19,878	220	20,098	331
Commercial Banking:
Commercial real estate loans	44,092		65,529	64,137	129,666	—
Commercial real estate loans - owner occupied	3,642		1,233	—	1,233	—
Commercial loans	23,487		3,941	3,533	7,474	—
Total Commercial Banking	71,221		70,703	67,670	138,373	—
Total	$	102,832	90,581	67,890	158,471	331

    

During the year ended December 31, 2021, we recognized $803,000 of interest income on nonaccrual and troubled debt restructuring loans.

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2022 (in thousands):                                                        

	Real estate		Equipment	Total
Personal Banking:
Residential mortgage loans	$	569	—	569
Home equity loans	100		—	100
Total Personal Banking	669		—	669
Commercial Banking:
Commercial real estate loans	57,056		—	57,056
Commercial loans	175		210	385
Total Commercial Banking	57,231		210	57,441
Total	$	57,900	210	58,110

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2021 (in thousands):                                          

	Real estate		Equipment	Total
Personal Banking:
Residential mortgage loans	$	580	—	580
Home equity loans	99		—	99
Total Personal Banking	679		—	679
Commercial Banking:
Commercial real estate loans	119,825		1,705	121,530
Commercial loans	3,973		1,926	5,899
Total Commercial Banking	123,798		3,631	127,429
Total	$	124,477	3,631	128,108

Our loan portfolios include loans that have been modified in a TDR, where concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include: extending the note’s maturity date, permitting interest only payments, reducing the interest rate to a rate lower than current market rates for new debt with similar risk, reducing the principal payment, principal forbearance or other actions. These concessions are applicable to all loan segments and classes. Certain TDRs are classified as nonperforming at the time of restructuring and may be returned to performing status after considering the borrower’s sustained repayment performance for a period of at least six months.

When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, the loan’s observable market price or the current fair value of the collateral, less selling costs, for collateral dependent loans. If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premiums or discounts), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment in accordance with ASC 310-10. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan.

Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, we evaluate the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, partial charge-offs may be taken to further write-down the carrying value of the loan, or the loan may be charged-off completely.

In March 2020 and August 2020, joint statements were issued by federal and state regulatory agencies, after consultation with the FASB, to clarify that short-term loan modifications are not TDRs if made on a good-faith basis in response to COVID-19 to borrowers who were current prior to any relief. Under this guidance, six months is provided as an example of short-term, and current is defined as less than 30 days past due at the time the modification program is implemented. The guidance also provides that these modified loans generally will not be classified as nonaccrual during the term of the modification. For borrowers who are 30 days or more past due when enrolling in a loan modification program related to the COVID-19 pandemic, we evaluate the loan modifications under our existing TDR framework, and where such a loan modification would result in a concession to a borrower experiencing financial difficulty, the loan will be accounted for as a TDR and will generally not accrue interest. This TDR relief under the CARES Act was extended by the Consolidated Appropriations Act, 2021 (“CAA”), signed into law on December 27, 2020. Under the CAA, such relief came to an end on January 1, 2022. Certain loan modifications made during the prior year were done in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. Accordingly, these loans were not categorized as TDRs.

The following table provides a roll forward of troubled debt restructurings for the periods indicated (dollars in thousands):

	For the years ended December 31,
	2022			2021
	Number of contracts	Amount		Number of contracts	Amount
Beginning TDR balance:	134	$	30,288	170	$	32,135
New TDRs	14	30,894		9	7,253
Re-modified TDRs	11	8,391		9	7,370
Net paydowns	—	(11,870)		—	(3,420)
Charge-offs:
Residential mortgage loans	2	(63)		—	—
Home equity loans	—	—		1	(29)
Commercial real estate loans	1	(150)		2	(53)
Commercial real estate loans - owner occupied	—	—		1	(105)
Commercial loans	1	(130)		6	(170)
Paid-off loans:
Residential mortgage loans	4	(361)		10	(1,216)
Home equity loans	3	(89)		6	(147)
Commercial real estate loans	6	(4,324)		11	(3,064)
Commercial real estate loans - owner occupied	1	(44)		3	(198)
Commercial loans	7	(3,470)		5	(698)
Ending TDR balance:	123	$	40,681	134	$	30,288
Accruing TDRs		$	11,442		$	13,072
Nonaccrual TDRs		29,239			17,216

The following tables provide information related to TDRs (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (in thousands):

	For the year ended December 31, 2022
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Personal Banking:
Residential mortgage loans	4	$	530	522	37
Home equity loans	6	183		171	42
Total Personal Banking	10	713		693	79
Commercial Banking:
Commercial real estate loans	9	34,716		20,954	66
Commercial loans	6	3,856		263	20
Total Commercial Banking	15	38,572		21,217	86
Total	25	$	39,285	21,910	165

	For the year ended December 31, 2021
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Personal Banking:
Residential mortgage loans	1	$	125	114	15
Home equity loans	3	155		34	34
Total Personal Banking	4	280		148	49
Commercial Banking:
Commercial real estate loans	8	12,006		10,572	1,453
Commercial loans	6	4,147		3,903	451
Total Commercial Banking	14	16,153		14,475	1,904
Total	18	$	16,433	14,623	1,953

	For the year ended December 31, 2020
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Personal Banking:
Residential mortgage loans	1	$	90	88	5
Home equity loans	2	86		79	9
Total Personal Banking	3	176		167	14
Commercial Banking:
Commercial real estate loans	9	7,365		7,615	311
Commercial real estate loans - owner occupied	1	58		48	8
Commercial loans	5	2,944		408	40
Total Commercial Banking	15	10,367		8,071	359
Total	18	$	10,543	8,238	373

The following table provides information as of December 31, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the year ended December 31, 2022 (in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Total
Personal Banking:
Residential mortgage loans	4	$	—	379	143	522
Home equity loans	6	—		23	148	171
Total Personal Banking	10	—		402	291	693
Commercial Banking:
Commercial real estate loans	9	129		98	20,727	20,954
Commercial loans	6	—		—	263	263
Total Commercial Banking	15	129		98	20,990	21,217
Total	25	$	129	500	21,281	21,910

The following table provides information as of December 31, 2021 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the year ended December 31, 2021 (in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residential mortgage loans	1	$	114	—	—	—	114
Home equity loans	3	—		30	4	—	34
Total Personal Banking	4	114		30	4	—	148
Commercial Banking:
Commercial real estate loans	8	2,077		—	8,424	71	10,572
Commercial loans	6	171		—	3,732	—	3,903
Total Commercial Banking	14	2,248		—	12,156	71	14,475
Total	18	$	2,362	30	12,160	71	14,623

The following table provides information as of December 31, 2020 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the year ended December 31, 2020 (in thousands):

		Type of modification
	Number of contracts	Rate		Payment	Maturity date	Other	Total
Personal Banking:
Residential mortgage loans	1	$	—	—	88	—	88
Home equity loans	2	65		—	14	—	79
Total Personal Banking	3	65		—	102	—	167
Commercial Banking:
Commercial real estate loans	9	—		—	7,335	280	7,615
Commercial real estate - owner occupied	1	—		—	48	—	48
Commercial loans	5	—		111	217	80	408
Total Commercial Banking	15	—		111	7,600	360	8,071
Total	18	$	65	111	7,702	360	8,238

The following table provides information related to re-modified trouble debt restructurings by portfolio segment and class of financing receivable for modifications during the year ended December 31, 2022 (in thousands):                    

		Type of re-modification
	Number of re-modified TDRs		Payment	Maturity date	Total
Personal Banking:
Residential mortgage loans	1		—	129	129
Home equity loans	1		—	—	—
Total Personal Banking	2		—	129	129
Commercial Banking:
Commercial real estate loans	4		53	196	249
Commercial loans	5		—	210	210
Total Commercial Banking	9		53	406	459
Total	11		53	535	588

The following table provides information related to re-modified trouble debt restructurings by portfolio segment and class of financing receivable for modifications during the year ended December 31, 2021 (in thousands):    

		Type of re-modification
	Number of re-modified TDRs	Rate		Maturity date	Other	Total
Personal Banking:
Residential mortgage loans	1	$	114	—	—	114
Home equity loans	1	—		—	—	—
Total Personal Banking	2	114		—	—	114
Commercial Banking:
Commercial real estate loans	7	2,077		5,108	71	7,256
Total Commercial Banking	7	2,077		5,108	71	7,256
Total	9	$	2,191	5,108	71	7,370

The following table provides information related to re-modified trouble debt restructurings by portfolio segment and class of financing receivable for modifications during the year ended December 31, 2020 (in thousands):

		Type of re-modification
	Number of re-modified TDRs	Maturity date	Other	Total
Commercial Banking:
Commercial real estate loans	3	6,652	—	6,652
Commercial real estate loans - owner occupied	1	48	—	48
Commercial loans	1	—	80	80
Total Commercial Banking	5	6,700	80	6,780
Total	5	6,700	80	6,780

No TDRs modified within the previous twelve months of December 31, 2022 or December 31, 2020 subsequently defaulted.

The following table provides information related to troubled debt restructurings modified within the previous twelve months

of December 31, 2021 that subsequently defaulted:

	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Commercial Banking:
Commercial real estate loans	1	$	4,167	3,823	—
Total Commercial Banking	1	4,167		3,823	—
Total	1	$	4,167	3,823	—

The following table provides information related to the amortized cost basis of loan payment delinquencies at December 31, 2022 (in thousands):                                                    

	30-59 days delinquent		60-89 days delinquent	90 days or greater delinquent	Total delinquency	Current	Total loans receivable	90 days or greater delinquent and accruing
Personal Banking:
Residential mortgage loans	$	29,487	5,563	5,574	40,624	3,457,975	3,498,599	—
Home equity loans	6,657		975	2,257	9,889	1,287,785	1,297,674	—
Vehicle loans	8,677		2,770	2,471	13,918	2,042,865	2,056,783	2
Consumer loans	758		300	608	1,666	110,206	111,872	405
Total Personal Banking	45,579		9,608	10,910	66,097	6,898,831	6,964,928	407
Commercial Banking:
Commercial real estate loans	3,947		2,377	7,589	13,913	2,434,115	2,448,028	—
Commercial real estate loans - owner occupied	61		—	278	339	375,188	375,527	—
Commercial loans	2,648		1,115	1,829	5,592	1,126,377	1,131,969	337
Total Commercial Banking	6,656		3,492	9,696	19,844	3,935,680	3,955,524	337
Total loans	$	52,235	13,100	20,606	85,941	10,834,511	10,920,452	744

The following table provides information related to the amortized cost basis loan payment delinquencies at December 31, 2021 (in thousands):                                                     

	30-59 days delinquent		60-89 days delinquent	90 days or greater delinquent	Total delinquency	Current	Total loans receivable	90 days or greater delinquent and accruing
Personal Banking:
Residential mortgage loans	$	20,567	5,433	7,641	33,641	2,960,979	2,994,620	—
Home equity loans	3,153		949	4,262	8,364	1,311,567	1,319,931	—
Vehicle loans	5,331		1,487	1,635	8,453	1,475,778	1,484,231	—
Consumer loans	1,205		519	765	2,489	352,028	354,517	331
Total Personal Banking	30,256		8,388	14,303	52,947	6,100,352	6,153,299	331
Commercial Banking:
Commercial real estate loans	16,938		699	23,489	41,126	2,584,355	2,625,481	—
Commercial real estate loans - owner occupied	127		70	574	771	389,232	390,003	—
Commercial loans	193		727	1,105	2,025	845,584	847,609	—
Total Commercial Banking	17,258		1,496	25,168	43,922	3,819,171	3,863,093	—
Total loans	$	47,514	9,884	39,471	96,869	9,919,523	10,016,392	331

Credit Quality Indicators: For Commercial Banking loans we categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze loans individually by classifying the loans by credit risk. Credit relationships greater than or equal to $1.0 million classified as special mention or substandard are reviewed quarterly for deterioration or improvement to determine if the loan is appropriately classified. We use the following definitions for risk ratings other than pass:

Special Mention — Loans designated as special mention have specific, well-defined risk issues, which create a high level of uncertainty regarding the long-term viability of the business. Loans in this class are considered to have high-risk characteristics. A special mention loan exhibits material negative financial trends due to company-specific or systemic conditions. If these potential weaknesses are not mitigated, they threaten the borrower’s capacity to meet its debt obligations. Special mention loans still demonstrate sufficient financial flexibility to react to and positively address the root cause of the adverse financial trends without significant deviations from their current business strategy. Their potential weaknesses deserve our close attention and warrant enhanced monitoring.

Substandard — Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful — Loans classified as doubtful have all the weaknesses inherent in those classified as substandard. In addition, those weaknesses make collection or liquidation in full highly questionable and improbable. A loan classified as doubtful exhibits discernible loss potential, but a complete loss seems very unlikely. The possibility of a loss on a doubtful loan is high, but because of certain important and reasonably specific pending factors that may strengthen the loan, its classification as an estimated loss is deferred until a more exact status can be determined.

Loss — Loans classified as loss are considered uncollectible and of such value that the continuance as a loan is not warranted. A loss classification does not mean that the loan has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off all or a portion of a basically worthless loan even though partial recovery may be possible in the future.

For Personal Banking loans a pass risk rating is maintained until they are greater than 90 days past due, and risk rating reclassification is based primarily on past due status of the loan. The risk rating categories can generally be described by the following groupings:

Pass — Loans classified as pass are homogeneous loans that are less than 90 days past due from the required payment date at month-end.

Substandard — Loans classified as substandard are homogeneous loans that are greater than 90 days past due from the required payment date at month-end, loans classified as TDRs, or homogenous retail loans that are greater than 180 days past due from the requirement payment date at month-end that has been written down to the value of underlying collateral, less costs to sell.

Doubtful — Loans classified as doubtful are homogeneous loans that are greater than 180 days past due from the required payment date at month-end and not written down to the value of underlying collateral. These loans are generally charged-off in the month in which the 180 day period elapses.

Based on the most recent analysis performed, the amortized cost basis by risk category of loans by class of loans by origination year is as follows as of December 31, 2022 (in thousands):                                 

	2022		2021	2020	2019	2018	Prior	Revolving loans	Revolving loans converted to term loans	Total loans receivable
Personal Banking:
Residential mortgage loans
Pass	$	659,930	837,823	546,604	265,520	131,599	1,043,394	—	—	3,484,870
Substandard	422		187	474	796	531	11,319	—	—	13,729
Total residential mortgage loans	660,352		838,010	547,078	266,316	132,130	1,054,713	—	—	3,498,599
Home equity loans
Pass	114,598		126,608	173,044	110,495	50,314	198,971	475,229	42,887	1,292,146
Substandard	—		46	—	127	324	3,066	683	1,282	5,528
Total home equity loans	114,598		126,654	173,044	110,622	50,638	202,037	475,912	44,169	1,297,674
Vehicle loans
Pass	966,432		611,310	227,897	135,134	70,071	42,166	—	—	2,053,010
Substandard	292		1,096	667	689	657	372	—	—	3,773
Total vehicle loans	966,724		612,406	228,564	135,823	70,728	42,538	—	—	2,056,783
Consumer loans
Pass	19,302		9,874	4,327	3,557	2,409	5,094	65,610	1,037	111,210
Substandard	24		9	37	9	3	48	432	100	662
Total consumer loans	19,326		9,883	4,364	3,566	2,412	5,142	66,042	1,137	111,872
Total Personal Banking	1,761,000		1,586,953	953,050	516,327	255,908	1,304,430	541,954	45,306	6,964,928
Business Banking:
Commercial real estate loans
Pass	322,050		346,355	369,868	244,188	209,500	696,628	24,954	13,314	2,226,857
Special Mention	—		17,216	16,782	87	1,000	15,887	157	15	51,144
Substandard	—		4,561	3,617	48,879	41,521	70,384	459	606	170,027
Total commercial real estate loans	322,050		368,132	390,267	293,154	252,021	782,899	25,570	13,935	2,448,028
Commercial real estate loans - owner occupied
Pass	62,905		51,673	17,989	49,600	43,570	123,278	2,477	1,460	352,952
Special Mention	126		—	18	—	2,297	1,106	385	—	3,932
Substandard	—		—	—	5,085	2,440	9,250	—	1,868	18,643
Total commercial real estate loans - owner occupied	63,031		51,673	18,007	54,685	48,307	133,634	2,862	3,328	375,527
Commercial loans
Pass	481,797		90,320	52,833	46,966	17,250	53,107	354,402	4,032	1,100,707
Special Mention	628		2,190	506	1,704	227	—	2,129	—	7,384
Substandard	1,833		603	908	2,097	1,605	735	12,941	3,156	23,878
Total commercial loans	484,258		93,113	54,247	50,767	19,082	53,842	369,472	7,188	1,131,969
Total Business Banking	869,339		512,918	462,521	398,606	319,410	970,375	397,904	24,451	3,955,524
Total loans	$	2,630,339	2,099,871	1,415,571	914,933	575,318	2,274,805	939,858	69,757	10,920,452

    For the year ended December 31, 2022, $20.7 million of revolving loans were converted to term loans.

The following table summarizes amortized cost basis loan balances by year of origination, class of loans, and risk category as of December 31, 2021 (in thousands):

	2021		2020	2019	2018	2017	Prior	Revolving loans	Revolving loans converted to term loans	Total loans receivable
Personal Banking:
Residential mortgage loans
Pass	$	644,862	602,429	304,275	156,639	171,240	1,098,635	—	—	2,978,080
Substandard	138		489	377	538	882	14,116	—	—	16,540
Total residential mortgage loans	645,000		602,918	304,652	157,177	172,122	1,112,751	—	—	2,994,620
Home equity loans
Pass	150,847		210,224	138,661	65,011	61,692	209,959	435,660	40,766	1,312,820
Substandard	—		—	441	60	455	3,820	1,275	1,060	7,111
Total home equity loans	150,847		210,224	139,102	65,071	62,147	213,779	436,935	41,826	1,319,931
Vehicle loans
Pass	801,084		292,804	205,653	119,304	34,546	27,576	—	—	1,480,967
Substandard	387		365	1,141	745	379	247	—	—	3,264
Total vehicle loans	801,471		293,169	206,794	120,049	34,925	27,823	—	—	1,484,231
Consumer loans
Pass	117,856		81,266	47,195	20,595	9,794	12,202	63,025	1,578	353,511
Substandard	213		161	105	64	26	50	357	30	1,006
Total consumer loans	118,069		81,427	47,300	20,659	9,820	12,252	63,382	1,608	354,517
Total Personal Banking	1,715,387		1,187,738	697,848	362,956	279,014	1,366,605	500,317	43,434	6,153,299
Business Banking:
Commercial real estate loans
Pass	306,689		433,219	335,541	263,524	221,450	683,537	26,288	10,179	2,280,427
Special Mention	803		1,808	52,513	3,296	1,394	8,529	729	23	69,095
Substandard	—		34,153	44,712	46,045	56,077	89,311	492	5,169	275,959
Total commercial real estate loans	307,492		469,180	432,766	312,865	278,921	781,377	27,509	15,371	2,625,481
Commercial real estate loans - owner occupied
Pass	69,084		19,452	51,997	60,824	57,676	94,687	2,822	2,707	359,249
Special Mention	—		—	—	769	1,959	1,444	856	—	5,028
Substandard	—		—	3,575	2,887	7,840	10,602	—	822	25,726
Total commercial real estate loans - owner occupied	69,084		19,452	55,572	64,480	67,475	106,733	3,678	3,529	390,003
Commercial loans
Pass	224,367		110,171	73,276	27,668	20,748	76,987	262,805	12,301	808,323
Special Mention	197		661	812	1,195	50	581	2,234	—	5,730
Substandard	329		4,767	5,102	4,437	1,529	2,116	6,667	8,609	33,556
Total commercial loans	224,893		115,599	79,190	33,300	22,327	79,684	271,706	20,910	847,609
Total Business Banking	601,469		604,231	567,528	410,645	368,723	967,794	302,893	39,810	3,863,093
Total loans	$	2,316,856	1,791,969	1,265,376	773,601	647,737	2,334,399	803,210	83,244	10,016,392

For the year ended December 31, 2021, $27.3 million of revolving loans were converted to term loans.

Our exposure to credit loss in the event of nonperformance by the other party to off-balance-sheet financial instruments is represented by the contract amount of the financial instrument. We use the same credit policies in making commitments for off- balance-sheet financial instruments as we do for on-balance-sheet instruments. Financial instruments with off-balance-sheet risk as of December 31, 2022 and 2021 are presented in the following table:                                

	Years ended December 31,
	2022		2021
Loans commitments	$	248,636	355,682
Undisbursed lines of credit	1,094,535		1,054,184
Standby letters of credit	45,140		45,521
Total	$	1,388,311	1,455,387

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral we obtain upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies but generally may include cash, marketable securities, real estate and other property.

Outstanding loan commitments at December 31, 2022 for fixed rate loans were $81.4 million. The interest rates on these commitments approximate market rates at December 31, 2022. Outstanding loan commitments at December 31, 2022 for adjustable rate loans were $167.2 million. The fair values of these commitments are affected by fluctuations in market rates of interest.

We issue standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. We are required to perform under a standby letter of credit when drawn upon by the guaranteed third party in the case of nonperformance by our customer. The credit risk associated with standby letters of credit is essentially the same as that involved in extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s credit assessment of the customer. As of December 31, 2022, the maximum potential amount of future payments we could be required to make under these standby letters of credit is $45.1 million, of which $31.3 million is fully collateralized. A liability (which represents deferred income) of $792,000 and $500,000 has been recognized for the obligations as of December 31, 2022 and 2021, respectively, and there are no recourse provisions that would enable us to recover any amounts from third parties.

In addition, we maintain a $5.0 million credit limit with a correspondent bank for private label credit card facilities for certain existing commercial clients of the Bank, of which $777,000 of the credit limit was allocated to credit cards that have been issued. These issued credit cards had an outstanding balance of $110,000 at December 31, 2022. The clients of the Bank are responsible for repaying any balances due on these credit cards directly to the correspondent bank; however, if the customer fails to repay their balance, the Bank could be required to satisfy the obligation to the correspondent bank and initiate collection from our customer as part of the existing credit facility of that customer.

Mortgage servicing assets are recognized as separate assets when servicing rights are created through loan originations and the underlying loan is sold. Upon sale, the mortgage servicing right (“MSR”) is established, which represents the then-fair value of future net cash flows expected to be realized for performing the servicing activities. The fair value of the MSRs are estimated by calculating the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions. In determining the fair value of the MSRs, stochastic modeling is performed using variables such as the forward yield curve, prepayment rates, annual service cost, average life expectancy and option adjusted spreads. MSRs are amortized against mortgage banking income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. MSRs are recorded in other assets on the Consolidated Statements of Financial Condition.

Capitalized MSRs are evaluated quarterly for impairment based on the estimated fair value of those rights. The MSRs are stratified by certain risk characteristics, primarily loan term and note rate. If impairment exists within a risk stratification tranche, a valuation allowance is established through a charge to income equal to the amount by which the carrying value exceeds the fair value. If it is later determined all or a portion of the temporary impairment no longer exists for a particular tranche, the valuation allowance is reduced or eliminated. We do not directly hedge against realized or potential future impairment losses on our MSRs.

The following table shows changes in MSRs as of and for the years ended December 31, 2022 and 2021:

	Servicing rights		Valuation allowance	Net carrying value and fair value
Balance at December 31, 2020	$	8,657	(492)	8,165
Additions	4,604		481	5,085
Amortization	(3,095)		—	(3,095)
Balance at December 31, 2021	10,166		(11)	10,155
Additions	1,282		4	1,286
Amortization	(3,646)		—	(3,646)
Balance at December 31, 2022	$	7,802	(7)	7,795