10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 FORM 10-Q

☒    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2023

 OR

☐    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                   to                 

Commission File Number 001-34582

NORTHWEST BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Maryland				27-0950358
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
3 Easton Oval	Suite 500	Columbus	Ohio	43219
(Address of Principal Executive Offices)				(Zip Code)

(814) 726-2140

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 Par Value	NWBI	NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

    ☒    Large accelerated filer    ☐    Accelerated filer

    ☐    Non-accelerated filer     ☐    Smaller reporting company

            ☐    Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

    Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Common Stock ($0.01 par value), 127,104,458 shares outstanding as of October 31, 2023.

NORTHWEST BANCSHARES, INC.

Table of Contents 

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Financial Condition at September 30, 2023 and December 31, 2022 (Unaudited)	1
	Consolidated Statements of Income for the quarter and nine months ended September 30, 2023 and 2022 (Unaudited)	2
	Consolidated Statements of Comprehensive Income/(Loss) for the quarter and nine months ended September 30, 2023 and 2022 (Unaudited)	3
	Consolidated Statements of Changes in Shareholders’ Equity for the quarter and nine months ended September 30, 2023 and 2022 (Unaudited)	4
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022 (Unaudited)	6
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	59
Item 4.	Controls and Procedures	60
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	60
Item 1A.	Risk Factors	60
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	62
	Signature	63

Item 1.        FINANCIAL STATEMENTS

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(in thousands, except share data)

	September 30, 2023		December 31, 2022
Assets
Cash and cash equivalents	$	161,995	139,365
Marketable securities available-for-sale (amortized cost of $1,262,080 and $1,431,728, respectively)	1,010,076		1,218,108
Marketable securities held-to-maturity (fair value of $682,681 and $751,384, respectively)	830,106		881,249
Total cash and cash equivalents and marketable securities	2,002,177		2,238,722
Loans held-for-sale	10,592		9,913
Loans held for investment	11,299,681		10,910,539
Allowance for credit losses	(124,841)		(118,036)
Loans receivable, net	11,185,432		10,802,416
FHLB stock, at cost	40,404		40,143
Accrued interest receivable	42,624		35,528
Real estate owned, net	363		413
Premises and equipment, net	138,041		145,909
Bank-owned life insurance	250,502		255,062
Goodwill	380,997		380,997
Other intangible assets, net	6,013		8,560
Other assets	315,648		205,574
Total assets	$	14,362,201	14,113,324
Liabilities and shareholders’ equity
Liabilities:
Noninterest-bearing demand deposits	$	2,774,291	2,993,243
Interest-bearing demand deposits	2,598,080		2,686,431
Money market deposit accounts	2,042,813		2,457,569
Savings deposits	2,116,360		2,275,020
Time deposits	2,258,338		1,052,285
Total deposits	11,789,882		11,464,548
Borrowed funds	604,587		681,166
Subordinated debt	114,102		113,840
Junior subordinated debentures	129,509		129,314
Advances by borrowers for taxes and insurance	27,653		47,613
Accrued interest payable	7,915		3,231
Other liabilities	190,122		182,126
Total liabilities	12,863,770		12,621,838
Shareholders’ equity:
Preferred stock, $0.01 par value: 50,000,000 authorized, no shares issued	—		—
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,101,349 and 127,028,848 shares issued and outstanding, respectively	1,271		1,270
Additional paid-in capital	1,023,591		1,019,647
Retained earnings	671,092		641,727
Accumulated other comprehensive loss	(197,523)		(171,158)
Total shareholders’ equity	1,498,431		1,491,486
Total liabilities and shareholders’ equity	$	14,362,201	14,113,324

See accompanying notes to unaudited Consolidated Financial Statements.

1

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except share data) 

	Quarter ended September 30,			Nine months ended September 30,
	2023		2022	2023	2022
Interest income:
Loans receivable	$	140,667	106,943	397,136	290,691
Mortgage-backed securities	8,072		8,683	24,935	22,201
Taxable investment securities	786		838	2,472	2,230
Tax-free investment securities	491		709	1,858	2,066
FHLB stock dividends	668		148	2,202	311
Interest-earning deposits	914		1,295	1,931	3,446
Total interest income	151,598		118,616	430,534	320,945
Interest expense:
Deposits	31,688		3,157	64,743	10,249
Borrowed funds	11,542		2,710	36,410	7,059
Total interest expense	43,230		5,867	101,153	17,308
Net interest income	108,368		112,749	329,381	303,637
Provision for credit losses - loans	3,983		7,689	14,863	8,837
Provision for credit losses - unfunded commitments	(2,981)		3,585	65	8,577
Net interest income after provision for credit losses	107,366		101,475	314,453	286,223
Noninterest income:
Loss on sale of investments	—		(2)	(8,306)	(7)
Gain on sale of mortgage servicing rights	—		—	8,305	—
Gain on sale of SBA loans	301		—	1,412	—
Service charges and fees	15,270		14,323	43,292	41,063
Trust and other financial services income	7,085		6,650	20,400	21,123
Gain on real estate owned, net	29		290	922	552
Income from bank-owned life insurance	4,561		1,475	7,134	5,466
Mortgage banking income	632		766	2,184	4,388
Other operating income	3,010		3,301	9,311	10,406
Total noninterest income	30,888		26,803	84,654	82,991
Noninterest expense:
Compensation and employee benefits	51,243		46,711	145,497	141,701
Premises and occupancy costs	7,052		7,171	22,102	22,248
Office operations	3,398		3,229	9,208	9,774
Collections expense	551		322	1,367	1,245
Processing expenses	14,672		13,416	43,670	38,911
Marketing expenses	2,379		2,147	8,127	6,322
Federal deposit insurance premiums	2,341		1,200	6,628	3,459
Professional services	3,002		3,363	11,564	9,269
Amortization of intangible assets	795		1,047	2,546	3,345
Real estate owned expense	141		61	405	170
Merger, asset disposition and restructuring expense	—		—	4,395	1,374
Other expenses	1,996		321	5,369	2,929
Total noninterest expense	87,570		78,988	260,878	240,747
Income before income taxes	50,684		49,290	138,229	128,467
Federal and state income taxes expense	11,464		11,986	32,286	29,450
Net income	$	39,220	37,304	105,943	99,017
Basic earnings per share	$	0.31	0.29	0.83	0.78
Diluted earnings per share	$	0.31	0.29	0.83	0.78

See accompanying notes to unaudited Consolidated Financial Statements.

2

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited)

(in thousands)

	Quarter ended September 30,			Nine months ended September 30,
	2023		2022	2023	2022
Net income	$	39,220	37,304	105,943	99,017
Other comprehensive loss net of tax:
Net unrealized holding (losses)/gains on marketable securities:
Unrealized holding losses, net of tax of $9,140, $14,705, $9,603 and $45,555, respectively	(29,715)		(48,387)	(34,417)	(153,124)
Reclassification adjustment for losses/(gains) included in net income, net of tax of $0, $0, ($1,731) and $0, respectively	—		—	5,636	(2)
Net unrealized holding losses on marketable securities	(29,715)		(48,387)	(28,781)	(153,126)
Change in fair value of interest rate swaps, net of tax of ($533), $0, ($1,041) and $0, respectively	1,825		—	3,562	—
Defined benefit plan:
Actuarial reclassification adjustments for prior period service costs and actuarial gains included in net income, net of tax of $152, $50, $456 and $151, respectively	(382)		(131)	(1,146)	(393)
Other comprehensive loss	(28,272)		(48,518)	(26,365)	(153,519)
Total comprehensive income/(loss)	$	10,948	(11,214)	79,578	(54,502)

See accompanying notes to unaudited Consolidated Financial Statements.

3

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in thousands, expect share data) 

				Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Total shareholders’ equity
	Common stock
Quarter ended September 30, 2023	Shares	Amount
Beginning balance at June 30, 2023	127,088,963	$	1,271	1,022,189	657,292	(169,251)	1,511,501
Comprehensive income:
Net income	—	—		—	39,220	—	39,220
Other comprehensive loss, net of tax of $8,759	—	—		—	—	(28,272)	(28,272)
Total comprehensive income/(loss)	—	—		—	39,220	(28,272)	10,948
Exercise of stock options	11,523	—		112	—	—	112
Stock-based compensation expense	1,779	—		1,290	—	—	1,290
Stock-based compensation forfeited	(916)	—		—	—	—	—
Dividends paid ($0.20 per share)	—	—		—	(25,420)	—	(25,420)
Ending balance at September 30, 2023	127,101,349	$	1,271	1,023,591	671,092	(197,523)	1,498,431

				Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Total shareholders’ equity
	Common stock
Quarter ended September 30, 2022	Shares	Amount
Beginning balance at June 30, 2022	126,881,766	$	1,269	1,015,349	620,551	(142,630)	1,494,539
Comprehensive income:
Net income	—	—		—	37,304	—	37,304
Other comprehensive loss, net of tax of $14,755	—	—		—	—	(48,518)	(48,518)
Total comprehensive income/(loss)	—	—		—	37,304	(48,518)	(11,214)
Exercise of stock options	73,472	—		897	—	—	897
Stock-based compensation expense	—	—		944	—	—	944
Stock-based compensation forfeited	(33,249)	—		(1)	—	—	(1)
Dividends paid ($0.20 per share)	—	—		—	(25,379)	—	(25,379)
Ending balance at September 30, 2022	126,921,989	$	1,269	1,017,189	632,476	(191,148)	1,459,786

See accompanying notes to unaudited Consolidated Financial Statements.

4

NORTHWEST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in thousands, expect share data)

				Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Total shareholders’ equity
	Common stock
Nine months ended September 30, 2023	Shares	Amount
Beginning balance at December 31, 2022	127,028,848	$	1,270	1,019,647	641,727	(171,158)	1,491,486
Comprehensive income:
Net income	—	—		—	105,943	—	105,943
Other comprehensive loss, net of tax of $7,287	—	—		—	—	(26,365)	(26,365)
Total comprehensive income	—	—		—	105,943	(26,365)	79,578
Adoption of ASU No. 2022-02	—	—		—	(329)	—	(329)
Exercise of stock options	53,207	1		609	—	—	610
Stock-based compensation expense	75,554	1		3,334	—	—	3,335
Stock-based compensation forfeited	(56,260)	(1)		1	—	—	—
Dividends paid ($0.60 per share)	—	—		—	(76,249)	—	(76,249)
Ending balance at September 30, 2023	127,101,349	$	1,271	1,023,591	671,092	(197,523)	1,498,431

				Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Total shareholders’ equity
	Common stock
Nine months ended September 30, 2022	Shares	Amount
Beginning balance at December 31, 2021	126,612,183	$	1,266	1,010,405	609,529	(37,629)	1,583,571
Comprehensive income:
Net income	—	—		—	99,017	—	99,017
Other comprehensive loss, net of tax of $45,706	—	—		—	—	(153,519)	(153,519)
Total comprehensive income/(loss)	—	—		—	99,017	(153,519)	(54,502)
Exercise of stock options	314,880	2		3,719	—	—	3,721
Stock-based compensation expense	75,377	2		3,065	—	—	3,067
Stock-based compensation forfeited	(80,451)	(1)		—	—	—	(1)
Dividends paid ($0.60 per share)	—	—		—	(76,070)	—	(76,070)
Ending balance at September 30, 2022	126,921,989	$	1,269	1,017,189	632,476	(191,148)	1,459,786

See accompanying notes to unaudited Consolidated Financial Statements.

5

NORTHWEST BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

	Nine months ended September 30,
	2023		2022
Operating activities:
Net income	$	105,943	99,017
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Provision for credit losses	14,928		8,837
Loss on sale of investments	8,306		—
Net loss/(gain) on sale of assets	743		(858)
Mortgage banking activity	5,342		(3,308)
Gain on sale of SBA loans	(1,390)		—
Gain on sale of mortgage servicing rights	(8,305)		—
Net depreciation, amortization and accretion	16,473		3,874
Increase in other assets	(114,158)		(31,790)
Increase in other liabilities	15,617		11,270
Net amortization on marketable securities	2,438		3,849
Noncash compensation expense related to stock benefit plans	3,335		3,066
Noncash write-down of real estate owned	37		44
Deferred income tax (benefit)/expense	(3,610)		1,928
Origination of loans held-for-sale	(137,789)		(317,117)
Proceeds from sale of loans held-for-sale	139,819		331,268
Net cash provided by operating activities	47,729		110,080
Investing activities:
Purchase of marketable securities held-to-maturity	—		(212,892)
Purchase of marketable securities available-for-sale	(23,502)		(102,178)
Proceeds from maturities and principal reductions of marketable securities held-to-maturity	50,517		80,765
Proceeds from maturities and principal reductions of marketable securities available-for-sale	81,803		197,310
Proceeds from sale of marketable securities available-for-sale	101,229		—
Proceeds from bank-owned life insurance	2,798		4,753
Loan originations	(2,928,360)		(3,464,471)
Proceeds from sale of mortgage servicing rights	13,118		—
Loan purchases	—		(371,121)
Proceeds from loan maturities and principal reductions	2,524,676		3,110,264
Net redemptions of FHLB stock	(261)		(5,097)
Proceeds from sale of real estate owned	1,343		1,469
Proceeds from sale of real estate owned for investment, net	—		229
Purchases of premises and equipment, net	(1,617)		(613)
Net cash used in investing activities	(178,256)		(761,582)

6

	Nine months ended September 30,
	2023		2022
Financing activities:
Net increase/(decrease) in deposits	325,334		(422,773)
Repayments of long-term borrowings	—		(10,094)
Net (decrease)/increase in short-term borrowings	(76,578)		10,943
Increase in advances by borrowers for taxes and insurance	(19,960)		(14,935)
Cash dividends paid on common stock	(76,249)		(76,070)
Proceeds from stock options exercised	610		3,721
Net cash provided by/(used in) financing activities	153,157		(509,208)
Net increase/(decrease) in cash and cash equivalents	$	22,630	(1,160,710)
Cash and cash equivalents at beginning of period	$	139,365	1,279,259
Net increase/(decrease) in cash and cash equivalents	22,630		(1,160,710)
Cash and cash equivalents at end of period	$	161,995	118,549
Cash paid during the period for:
Interest on deposits and borrowings (including interest credited to deposit accounts of $56,021 and $9,812, respectively)	$	96,469	18,281
Income taxes	38,236		21,851
Non-cash activities:
Loan foreclosures and repossessions	$	2,844	3,423
Sale of real estate owned financed by the Company	70		175

See accompanying notes to unaudited Consolidated Financial Statements.

7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(1)    Basis of Presentation and Informational Disclosures

Northwest Bancshares, Inc. (the “Company” or “NWBI”), a Maryland corporation headquartered in Columbus, Ohio, is a bank holding company regulated by the Board of Governors of the Federal Reserve System (“FRB”). The primary activity of the Company is the ownership of all of the issued and outstanding common stock of Northwest Bank, a Pennsylvania-chartered savings bank (“Northwest”). Northwest is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking. Northwest operates 142 community-banking offices throughout Pennsylvania, Western New York, Eastern Ohio, and Indiana.

The accompanying unaudited Consolidated Financial Statements include the accounts of the Company and its subsidiary, Northwest, and Northwest’s subsidiaries Northwest Capital Group, Inc., Great Northwest Corporation, and MutualFirst Interest Company, Inc. The unaudited Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or footnotes required for complete annual financial statements. In the opinion of management, all adjustments necessary for the fair presentation of the Company’s financial position and results of operations have been included. The Consolidated Financial Statements have been prepared using the accounting policies described in the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 updated, as required, for any new pronouncements or changes.

Certain items previously reported have been reclassified to conform to the current year’s reporting format. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Income and Consolidated Statements of Cash Flows for the quarter and nine months ended September 30, 2022, to reclassify the provision for credit losses - unfunded commitments, previously presented in other expense, to provide additional transparency to financial statement users.

The results of operations for the quarter ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or any other period.

Stock-Based Compensation

On March 15, 2023, the Company awarded employees 176,623 restricted stock units (“RSUs”) with a weighted average discounted grant date fair value of $11.28. The RSUs vest over a three-year period with the first vesting occurring one year from the grant date. The Company awarded directors 33,048 restricted stock awards (“RSAs”) with a grant date fair value of $12.80 which fully vest one-year from the grant date. Also, the Company awarded employees 176,623 performance share units (“PSUs”) with a discounted grant date fair value of $10.54. The number of PSUs earned will be based on attainment of certain performance criteria over a three-year period, with the actual number of shares issuable ranging between 0% and 150% of the number of PSUs granted. The PSUs have a three-year cliff vesting, from the date of grant, and any PSUs earned will be issued after the vesting period. As of September 30, 2023, we awarded discretionary grants of 178,483 RSUs with a weighted average grant date fair value of $10.87. These shares vest over a two or three year period with the first vesting occurring one year from the grant date. Stock-based compensation expense of $1.3 million and $944,000 for the quarters ended September 30, 2023 and 2022, respectively, was recognized in compensation expense relating to our stock benefit plans. At September 30, 2023, there was compensation expense of $401,000 to be recognized for awarded but unvested stock options, $2.5 million for unvested restricted common shares, $3.7 million to be recognized for awarded but unvested RSUs, $193,000 to be recognized for awarded but unvested RSAs, and $2.1 million to be recognized for awarded but unvested PSUs.

 Income Taxes-Uncertain Tax Positions

Accounting standards prescribe a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. A tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. We had $702,000 and $473,000 of liability for unrecognized tax benefits as of September 30, 2023 and December 31, 2022.

We recognize interest accrued related to: (1) unrecognized tax benefits in other expenses and (2) refund claims in other operating income. We recognize penalties (if any) in other expenses. We are subject to audit by the Internal Revenue Service and any state in which we conduct business for the tax periods ended December 31, 2022, 2021, 2020 and 2019.

8

Recently Adopted Accounting Standards

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure.” This ASU eliminates the accounting guidance for troubled debt restructurings (“TDRs”), while enhancing disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. This ASU also requires the disclosure of current period gross write-offs by year for origination for financing receivables. This guidance is effective for annual periods beginning after December 15, 2022, including interim periods within those years, with early adoption permitted. This ASU is applied prospectively to modifications and write-offs beginning on the first day of the fiscal year of adoption. An entity may elect to adopt a modified retrospective transition method on the recognition and measurement of the TDR guidance.

We adopted ASU 2022-02 using a modified retrospective transition approach related to the recognition and measurement of the TDR guidance and on a prospective basis for modification and write-offs. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required ASU 2022-02 disclosure for periods before the date of adoption (i.e. January 1, 2023). This change did not have a material effect on our consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides temporary optional guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance provides expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The amendments primarily include contract modifications and hedge accounting, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity. This guidance was effective as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date to Topic 848”. This guidance extends the guidance of ASU 2022-04 from December 31, 2022 to December 31, 2024. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform.” This ASU provides amendments, which are elective, and apply to all entities that have derivative instruments that use an interest rate for margining, discounting or contract price alignment of certain derivative instruments that are modified as a result of the reference rate reform. This ASU is effective upon issuance through December 31, 2024, and can be adopted at any time during this period.

During the current year, we completed our LIBOR transition plan and modified the Company’s loan and other financial instrument contracts that are impacted by the transition. The Company chose the Secured Overnight Financing Rate (“SOFR”) as its alternative replacement for LIBOR on both back-to-back swaps and variable rate loans. There was no material impact to the Company's financial statements as a result of the transition.

9

(2)    Marketable Securities

The following table shows the portfolio of marketable securities available-for-sale at September 30, 2023 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by the U.S government and agencies:
Due after one year through five years	$	20,000	—	(1,750)	18,250
Due after ten years	50,166		—	(11,890)	38,276
Debt issued by government-sponsored enterprises:
Due after one year through five years	45,985		—	(7,502)	38,483
Due after five years through ten years	434		—	(11)	423
Municipal securities:
Due after one year through five years	954		3	(9)	948
Due after five years through ten years	21,976		—	(3,055)	18,921
Due after ten years	62,990		—	(14,788)	48,202
Corporate debt issues:
Due after five years through ten years	8,464		—	(1,000)	7,464
Residential mortgage-backed securities:
Fixed rate pass-through	213,849		—	(35,305)	178,544
Variable rate pass-through	7,501		2	(169)	7,334
Fixed rate agency CMOs	805,086		—	(175,985)	629,101
Variable rate agency CMOs	24,675		28	(573)	24,130
Total residential mortgage-backed securities	1,051,111		30	(212,032)	839,109
Total marketable securities available-for-sale	$	1,262,080	33	(252,037)	1,010,076

10

The following table shows the portfolio of marketable securities available-for-sale at December 31, 2022 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by the U.S. government and agencies:
Due after one year through five years	$	20,000	—	(1,799)	18,201
Due after ten years	53,152		—	(10,761)	42,391
Debt issued by government-sponsored enterprises:
Due after one year through five years	993		—	(49)	944
Due after five years through ten years	45,814		—	(7,557)	38,257
Municipal securities:
Due within one year	506		—	(1)	505
Due after one year through five years	986		21	(13)	994
Due after five years through ten years	36,332		—	(2,290)	34,042
Due after ten years	89,631		8	(13,414)	76,225
Corporate debt issues:
Due after five years through ten years	13,540		—	(562)	12,978
Residential mortgage-backed securities:
Fixed rate pass-through	227,122		35	(31,171)	195,986
Variable rate pass-through	8,837		10	(184)	8,663
Fixed rate agency CMOs	906,962		—	(145,284)	761,678
Variable rate agency CMOs	27,853		31	(640)	27,244
Total residential mortgage-backed securities	1,170,774		76	(177,279)	993,571
Total marketable securities available-for-sale	$	1,431,728	105	(213,725)	1,218,108

The following table shows the portfolio of marketable securities held-to-maturity at September 30, 2023 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by government-sponsored enterprises:
Due after one year through five years	$	49,471	—	(6,830)	42,641
Due after five years through ten years	74,986		—	(14,901)	60,085
Residential mortgage-backed securities:
Fixed rate pass-through	151,411		—	(27,070)	124,341
Variable rate pass-through	468		—	(8)	460
Fixed rate agency CMOs	553,241		—	(98,606)	454,635
Variable rate agency CMOs	529		—	(10)	519
Total residential mortgage-backed securities	705,649		—	(125,694)	579,955
Total marketable securities held-to-maturity	$	830,106	—	(147,425)	682,681

11

The following table shows the portfolio of marketable securities held-to-maturity at December 31, 2022 (in thousands): 

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by government-sponsored enterprises:
Due after one year through five years	$	29,478	—	(3,676)	25,802
Due after five years through ten years	94,977		—	(18,157)	76,820
Residential mortgage-backed securities:
Fixed rate pass-through	163,196		—	(24,684)	138,512
Variable rate pass-through	542		—	(12)	530
Fixed rate agency CMOs	592,527		—	(83,325)	509,202
Variable rate agency CMOs	529		—	(11)	518
Total residential mortgage-backed securities	756,794		—	(108,032)	648,762
Total marketable securities held-to-maturity	$	881,249	—	(129,865)	751,384

The following table shows the contractual maturity of our residential mortgage-backed securities available-for-sale at September 30, 2023 (in thousands):

	Amortized cost		Fair value
Residential mortgage-backed securities:
Due within one year	$	60	59
Due after one year through five years	25,302		23,185
Due after five years through ten years	27,837		25,424
Due after ten years	997,912		790,441
Total residential mortgage-backed securities	$	1,051,111	839,109

The following table shows the contractual maturity of our residential mortgage-backed securities held-to-maturity at September 30, 2023 (in thousands):

	Amortized cost		Fair value
Residential mortgage-backed securities:
Due after one year through five years	$	20,343	17,291
Due after five years through ten years	20,225		15,484
Due after ten years	665,081		547,180
Total residential mortgage-backed securities	$	705,649	579,955

The following table shows the fair value of and gross unrealized losses on available for sale investment securities and held to maturity investment securities, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2023 (in thousands):

	Less than 12 months			12 months or more		Total
	Fair  value		Unrealized loss	Fair  value	Unrealized loss	Fair  value	Unrealized loss
U.S. government-sponsored enterprises	$	423	(11)	197,736	(42,873)	198,159	(42,884)
Municipal securities	8,412		(526)	59,233	(17,326)	67,645	(17,852)
Corporate issues	—		—	7,464	(1,000)	7,464	(1,000)
Residential mortgage-backed securities - agency	25,649		(1,271)	1,390,685	(336,455)	1,416,334	(337,726)
Total	$	34,484	(1,808)	1,655,118	(397,654)	1,689,602	(399,462)

12

The following table shows the fair value of and gross unrealized losses on available for sale investment securities and held to maturity investment securities, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2022 (in thousands):

	Less than 12 months			12 months or more		Total
	Fair  value		Unrealized loss	Fair  value	Unrealized loss	Fair  value	Unrealized loss
U.S. government-sponsored enterprises	$	1,735	(82)	200,679	(41,917)	202,414	(41,999)
Corporate debt issues	12,979		(562)	—	—	12,979	(562)
Municipal securities	60,676		(4,047)	44,493	(11,671)	105,169	(15,718)
Residential mortgage-backed securities - agency	373,186		(22,796)	1,264,042	(262,515)	1,637,228	(285,311)
Total	$	448,576	(27,487)	1,509,214	(316,103)	1,957,790	(343,590)

The Company does not believe that the available-for-sale debt securities that were in an unrealized loss position as of September 30, 2023, which were comprised of 548 individual securities, represents a credit loss impairment. All of these securities were issued by U.S. government agencies, U.S. government-sponsored enterprises, local municipalities, or represent corporate debt. The securities issued by the U.S. government agencies or U.S. government-sponsored enterprises are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The securities issued by local municipalities and the corporate debt issues were all highly rated by major rating agencies and have no history of credit losses. The unrealized losses were primarily attributable to changes in the interest rate environment and not due to the credit quality of these investment securities. The Company does not have the intent to sell these investment securities and it is more likely than not that we will not be required to sell these securities before their anticipated recovery, which may be at maturity.

All of the Company’s held-to-maturity debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The decline in fair value of the held-to-maturity debt securities were primarily attributable to changes in the interest rate environment and not due to the credit quality of these investment securities, therefore, the Company did not record an allowance for credit losses for these securities as of September 30, 2023.

The following table presents the credit quality of our held-to-maturity securities, based on the latest information available as of September 30, 2023 (in thousands). The credit ratings are sourced from nationally recognized rating agencies, which include Moody’s and S&P, and they are presented based on asset type. All of our held-to-maturity securities were current in their payment of principal and interest as of September 30, 2023.

	AA+		Total
Held-to-maturity securities (at amortized cost):
Debt issued by the U.S. government-sponsored enterprises	$	124,457	124,457
Residential mortgage-backed securities	705,649		705,649
Total marketable securities held-to-maturity	$	830,106	830,106

13

(3)    Loans Receivable

The following table shows a summary of our loans receivable at amortized cost basis at September 30, 2023 and December 31, 2022 (in thousands): 

	September 30, 2023				December 31, 2022
	Originated (1)		Acquired (2)	Total	Originated (1)	Acquired (2)	Total
Personal Banking:
Residential mortgage loans (3)	$	3,322,136	150,627	3,472,763	3,327,879	170,720	3,498,599
Home equity loans	1,126,675		132,090	1,258,765	1,131,641	166,033	1,297,674
Vehicle loans	1,969,029		70,670	2,039,699	1,965,385	91,398	2,056,783
Consumer loans	109,319		6,101	115,420	104,284	7,588	111,872
Total Personal Banking	6,527,159		359,488	6,886,647	6,529,189	435,739	6,964,928
Commercial Banking:
Commercial real estate loans (4)	2,286,563		267,081	2,553,644	2,135,607	312,421	2,448,028
Commercial real estate loans - owner occupied	343,714		25,659	369,373	341,704	33,823	375,527
Commercial loans	1,463,159		37,450	1,500,609	1,082,914	49,055	1,131,969
Total Commercial Banking	4,093,436		330,190	4,423,626	3,560,225	395,299	3,955,524
Total loans receivable, gross	10,620,595		689,678	11,310,273	10,089,414	831,038	10,920,452
Allowance for credit losses	(116,596)		(8,245)	(124,841)	(107,379)	(10,657)	(118,036)
Total loans receivable, net (5)	$	10,503,999	681,433	11,185,432	9,982,035	820,381	10,802,416

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

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

(3) Includes $10.2 million and $9.9 million of loans held-for-sale at September 30, 2023 and December 31, 2022, respectively.

(4) Includes $435,000 and $0 of loans held-for-sale at September 30, 2023 and December 31, 2022, respectively.

(5) Includes $71.5 million and $76.1 million of net unearned income, unamortized premiums and discounts and deferred fees and costs at September 30, 2023 and December 31, 2022, respectively.

14

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended September 30, 2023 (in thousands):

	Balance as of September 30, 2023		Current period provision	Charge-offs	Recoveries	Balance as of June 30, 2023
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,090	(370)	(171)	75	17,556
Home equity loans	5,044		201	(320)	161	5,002
Vehicle loans	27,226		984	(1,524)	483	27,283
Consumer loans	1,202		1,436	(1,561)	317	1,010
Total Personal Banking	50,562		2,251	(3,576)	1,036	50,851
Commercial Banking:
Commercial real estate loans	48,582		(1,110)	(484)	120	50,056
Commercial real estate loans - owner occupied	3,479		(30)	—	11	3,498
Commercial loans	22,218		2,872	(1,286)	614	20,018
Total Commercial Banking	74,279		1,732	(1,770)	745	73,572
Total	$	124,841	3,983	(5,346)	1,781	124,423
Allowance for Credit Losses - off-balance sheet exposure
Personal Banking:
Residential mortgage loans	$	3	(1)	—	—	4
Home equity loans	67		3	—	—	64
Total Personal Banking	70		2	—	—	68
Commercial Banking:
Commercial real estate loans	4,797		(2,858)	—	—	7,655
Commercial real estate loans - owner occupied	140		(180)	—	—	320
Commercial loans	7,971		55	—	—	7,916
Total Commercial Banking	12,908		(2,983)	—	—	15,891
Total off-balance sheet exposure	$	12,978	(2,981)	—	—	15,959

15

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended September 30, 2022 (in thousands):

	Balance as of September 30, 2022		Current period provision	Charge-offs	Recoveries	Balance as of June 30, 2022
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,967	1,646	(166)	329	16,158
Home equity loans	5,448		341	(535)	410	5,232
Vehicle loans	17,004		1,576	(936)	626	15,738
Consumer loans	825		1,170	(1,405)	281	779
Total Personal Banking	41,244		4,733	(3,042)	1,646	37,907
Commercial Banking:
Commercial real estate loans	49,649		5,117	(1,329)	6,220	39,641
Commercial real estate loans - owner occupied	4,087		(34)	—	26	4,095
Commercial loans	14,839		(2,127)	(243)	497	16,712
Total Commercial Banking	68,575		2,956	(1,572)	6,743	60,448
Total	$	109,819	7,689	(4,614)	8,389	98,355
Allowance for Credit Losses - off-balance sheet exposure
Personal Banking:
Residential mortgage loans	$	4	(2)	—	—	6
Home equity loans	74		10	—	—	64
Total Personal Banking	78		8	—	—	70
Commercial Banking:
Commercial real estate loans	5,382		1,919	—	—	3,463
Commercial real estate loans - owner occupied	287		(41)	—	—	328
Commercial loans	5,288		1,699	—	—	3,589
Total Commercial Banking	10,957		3,577	—	—	7,380
Total off-balance sheet exposure	$	11,035	3,585	—	—	7,450

16

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the nine months ended September 30, 2023 (in thousands):

	Balance September 30, 2023		Current period provision	Charge-offs	Recoveries	ASU 2022-02 Adoption	Balance December 31, 2022
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,090	(2,047)	(923)	799	—	19,261
Home equity loans	5,044		(705)	(719)	566	—	5,902
Vehicle loans	27,226		7,267	(4,731)	1,631	—	23,059
Consumer loans	1,202		3,463	(3,860)	934	—	665
Total Personal Banking	50,562		7,978	(10,233)	3,930	—	48,887
Commercial Banking:
Commercial real estate loans	48,582		3,587	(1,556)	1,619	426	44,506
Commercial real estate loans - owner occupied	3,479		(515)	(68)	58	—	4,004
Commercial loans	22,218		3,813	(3,360)	1,126	—	20,639
Total Commercial Banking	74,279		6,885	(4,984)	2,803	426	69,149
Total	$	124,841	14,863	(15,217)	6,733	426	118,036
Allowance for Credit Losses - off-balance sheet exposure (1)
Personal Banking:
Residential mortgage loans	$	3	(1)	—	—	—	4
Home equity loans	67		(7)	—	—	—	74
Total Personal Banking	70		(8)	—	—	—	78
Commercial Banking:
Commercial real estate loans	4,797		(578)	—	—	—	5,375
Commercial real estate loans - owner occupied	140		(239)	—	—	—	379
Commercial loans	7,971		890	—	—	—	7,081
Total Commercial Banking	12,908		73	—	—	—	12,835
Total off-balance sheet exposure	$	12,978	65	—	—	—	12,913

(1) The table above has been revised to reflect the correct ending balance for total off-balance-sheet exposure at December 31, 2022. We evaluated the effect of the revision, both qualitatively and quantitatively, and concluded that the impact of the revision was not material.

17

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the nine months ended September 30, 2022 (in thousands):

	Balance as of September 30, 2022		Current period provision	Charge-offs	Recoveries	Balance as of December 31, 2021
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,967	11,331	(1,487)	750	7,373
Home equity loans	5,448		127	(1,237)	1,258	5,300
Vehicle loans	17,004		2,159	(2,517)	1,879	15,483
Consumer loans	825		479	(3,459)	921	2,884
Total Personal Banking	41,244		14,096	(8,700)	4,808	31,040
Commercial Banking:
Commercial real estate loans	49,649		(6,465)	(6,745)	8,718	54,141
Commercial real estate loans - owner occupied	4,087		167	—	37	3,883
Commercial loans	14,839		1,039	(1,253)	1,876	13,177
Total Commercial Banking	68,575		(5,259)	(7,998)	10,631	71,201
Total	$	109,819	8,837	(16,698)	15,439	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

During the nine months ended September 30, 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.

18

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at September 30, 2023 (in thousands):

	Total loans receivable		Allowance for credit losses	Nonaccrual loans	Loans 90 days past due and accruing
Personal Banking:
Residential mortgage loans	$	3,472,763	17,090	9,760	—
Home equity loans	1,258,765		5,044	3,431	133
Vehicle loans	2,039,699		27,226	3,817	57
Consumer loans	115,420		1,202	281	500
Total Personal Banking	6,886,647		50,562	17,289	690
Commercial Banking:
Commercial real estate loans	2,553,644		48,582	54,109	—
Commercial real estate loans - owner occupied	369,373		3,479	1,071	—
Commercial loans	1,500,609		22,218	4,185	38
Total Commercial Banking	4,423,626		74,279	59,365	38
Total	$	11,310,273	124,841	76,654	728

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2022, prior to the adoption of ASU 2022-02 (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.

19

We present the amortized cost of our loans on nonaccrual status including such loans with no allowance. The following table presents the amortized cost of our loans on nonaccrual status as of the beginning and end of the nine-month period ended September 30, 2023 (in thousands): 

			September 30, 2023
	Nonaccrual loans at January 1, 2023		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	$	7,574	9,760	—	9,760	—
Home equity loans	4,145		3,262	169	3,431	133
Vehicle loans	3,771		2,838	979	3,817	57
Consumer loans	256		281	—	281	500
Total Personal Banking	15,746		16,141	1,148	17,289	690
Commercial Banking:
Commercial real estate loans	62,239		21,838	32,271	54,109	—
Commercial real estate loans - owner occupied	624		1,071	—	1,071	—
Commercial loans	2,627		3,828	357	4,185	38
Total Commercial Banking	65,490		26,737	32,628	59,365	38
Total	$	81,236	42,878	33,776	76,654	728

During the three and nine months ended September 30, 2023, we did not recognize any interest income on nonaccrual loans.

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

			December 31, 2022
	Nonaccrual loans at January 1, 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.

20

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023 (in thousands):

	Real estate		Total
Commercial Banking:
Commercial real estate loans	$	51,402	51,402
Commercial loans	160		160
Total Commercial Banking	51,562		51,562
Total	$	51,562	51,562

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

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses.

In some cases, the Company provides multiple types of concessions to one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay, and/or an interest rate reduction.

21

The following table presents the amortized cost basis of loans as of September 30, 2023 that were both experiencing financial difficulty and modified during the periods indicated, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financial receivable is also presented below (dollars in thousands).

	For the quarter ended September 30, 2023					For the nine months ended September 30, 2023
	Term extension		Combination term extension and interest rate reduction	Total class of financing receivable		Term extension	Combination term extension and interest rate reduction	Total class of financing receivable
Personal Banking:
Residential mortgage loans	$	192	—	0.01	%	450	—	0.01	%
Home equity loans	122		85	0.02	%	283	85	0.03	%
Consumer loans	—		—	—	%	—	3	0.00	%
Total Personal Banking	314		85	0.01	%	733	88	0.01	%
Commercial Banking:
Commercial real estate loans	—		—	—	%	197	—	0.01	%
Commercial loans	15		—	0.00	%	663	—	0.04	%
Total Commercial Banking	15		—	—	%	860	—	0.02	%
Total	$	329	85	0.00	%	1,593	88	0.01	%

The Company has committed to lend additional amounts totaling $31,000 to the borrowers included in the previous table.

The following table presents the effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods indicated:

	For the quarter ended September 30, 2023			For the nine months ended September 30, 2023
	Weighted-average interest rate reduction		Weighted-average term extension in months	Weighted-average interest rate reduction		Weighted-average term extension in months
Personal Banking:
Residential mortgage loans	—	%	169	—		149
Home equity loans	5	%	112	5	%	96
Consumer loans	—	%	—	12	%	356
Total Personal Banking	5	%	140	17	%	126
Commercial Banking:
Commercial real estate loans	—	%	—	—		25
Commercial loans	—	%	23	—		9
Total Commercial Banking	—	%	23	—		13
Total loans	5	%	135	17	%	68

22

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that such loans have been modified since the adoption of ASU 2022-02 (in thousands):

	Current		30-59 days delinquent	60-89 days delinquent	90 days or greater delinquent
Personal Banking:
Residential mortgage loans	$	450	—	—	—
Home equity loans	368		—	—	—
Consumer loans	3		—	—	—
Total Personal Banking	821		—	—	—
Commercial Banking:
Commercial real estate loans	74		—	—	123
Commercial real estate loans - owner occupied	—		—	—	—
Commercial loans	—		15	—	648
Total Commercial Banking	74		15	—	771
Total loans	$	895	15	—	771

A modification is considered to be in default when the loan is 90 days or more past due. The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified since the adoption of ASU 2022-02 to borrowers experiencing financial difficulty (in thousands):

	Term extension
Commercial Banking:
Commercial real estate loans	$	123
Commercial loans	648
Total Commercial Banking	771
Total	$	771

The modifications to borrowers experiencing financial distress are included in their respective portfolio segment and the current loan balance and updated loan terms are run through their respective ACL models to arrive at the quantitative portion of the ACL. Subsequent performance of the loans will be measured by delinquency status and will be captured through our ACL models or our qualitative factor assessment, as deemed appropriate. If we no longer believe the loan demonstrates similar risks to their respective portfolio segment an individual assessment will be performed. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

23

The following tables provide a roll forward of troubled debt restructurings for the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):

	For the quarter ended September 30, 2022			For the nine months ended September 30, 2022
	Number of Contracts	Amount		Number of Contracts	Amount
Beginning TDR balance:	128	$	54,237	134	$	30,288
New TDRs	6	221		8	25,626
Re-modified TDRs	4	977		10	1,178
Net paydowns	—	(810)		—	(1,609)
Charge-offs:
Residential mortgage loans	—	—		1	(3)
Paid-off loans:
Residential mortgage loans	1	(35)		2	(236)
Home equity loans	1	(11)		3	(88)
Commercial real estate loans	1	(3,349)		4	(3,718)
Commercial real estate loans - owner occupied	1	(44)		1	(44)
Commercial loans	3	(3,459)		4	(3,466)
Ending TDR balance:	127	$	46,750	127	$	46,750
Accruing TDRs		$	16,344		$	16,344
Nonaccrual TDRs		30,406			30,406

The following table provides information related to TDRs (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):

	For the quarter ended September 30, 2022					For the nine months ended September 30, 2022
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Personal Banking:
Residential mortgage loans	2	$	147	144	15	2	$	147	144	15
Home equity loans	5	160		154	23	5	160		154	23
Total Personal Banking	7	307		298	38	7	307		298	38
Commercial Banking:
Commercial real estate loans	1	$	610	609	89	5	$	34,295	26,212	102
Commercial loans	2	332		291	20	6	3,856		294	20
Total Commercial Banking	3	942		900	109	11	38,151		26,506	122
Total	10	$	1,249	1,198	147	18	$	38,458	26,804	160

24

The following table provides information as of September 30, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended September 30, 2022, prior to the adoption of ASU 2022-02 (dollars in thousands):

	Type of modification
	Number of contracts	Maturity date		Total
Personal Banking:
Residential mortgage loans	2	$	144	144
Home equity loans	5	154		154
Total Personal Banking	7	298		298
Commercial Banking:
Commercial real estate loans	1	$	609	609
Commercial loans	2	291		291
Total Commercial Banking	3	900		900
Total	10	$	1,198	1,198

The following table provides information as of September 30, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the nine months ended September 30, 2022, prior to the adoption of ASU 2022-02 (dollars in thousands):

	Type of modification
	Number of contracts	Rate		Maturity date	Total
Personal Banking:
Residential mortgage loans	2	$	—	144	144
Home equity loans	5	—		154	154
Total Personal Banking	7	—		298	298
Commercial Banking:
Commercial real estate loans	5	$	4,166	22,046	26,212
Commercial loans	6	—		294	294
Total Commercial Banking	11	4,166		22,340	26,506
Total	18	$	4,166	22,638	26,804

No TDRs modified within the previous twelve months of September 30, 2022 subsequently defaulted, prior to the adoption of ASU 2022-02.

25

The following table provides information related to the amortized cost basis of loan payment delinquencies at September 30, 2023 (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	$	573	5,395	7,695	13,663	3,459,100	3,472,763	—
Home equity loans	4,707		1,341	2,206	8,254	1,250,511	1,258,765	133
Vehicle loans	9,122		2,412	2,274	13,808	2,025,891	2,039,699	57
Consumer loans	752		295	746	1,793	113,627	115,420	500
Total Personal Banking	15,154		9,443	12,921	37,518	6,849,129	6,886,647	690
Commercial Banking:
Commercial real estate loans	3,411		1,328	8,042	12,781	2,540,863	2,553,644	—
Commercial real estate loans - owner occupied	—		260	374	634	368,739	369,373	—
Commercial loans	2,847		981	2,472	6,300	1,494,309	1,500,609	38
Total Commercial Banking	6,258		2,569	10,888	19,715	4,403,911	4,423,626	38
Total loans	$	21,412	12,012	23,809	57,233	11,253,040	11,310,273	728

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 originated loans	$	52,235	13,100	20,606	85,941	10,834,511	10,920,452	744

26

Credit Quality Indicators: For Commercial Banking 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 90 days or greater 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, or homogenous retail loans that are greater than 180 days past due from the required 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.

27

The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator and the current period charge-offs by year of origination for each portfolio segment as of September 30, 2023 (in thousands):

	YTD September 30, 2023		2022	2021	2020	2019	Prior	Revolving loans	Revolving loans converted to term loans	Total loans receivable
Personal Banking:
Residential mortgage loans
Pass	$	159,472	673,235	803,613	516,270	249,797	1,056,864	—	—	3,459,251
Substandard	—		1,033	260	872	336	11,011	—	—	13,512
Total residential mortgage loans	159,472		674,268	803,873	517,142	250,133	1,067,875	—	—	3,472,763
Residential mortgage current period charge-offs	—		—	(5)	(130)	—	(788)	—	—	(923)
Home equity loans
Pass	65,795		104,272	110,823	153,431	98,062	210,273	469,459	42,870	1,254,985
Substandard	—		—	—	—	149	1,783	1,050	798	3,780
Total home equity loans	65,795		104,272	110,823	153,431	98,211	212,056	470,509	43,668	1,258,765
Home equity current period charge-offs	—		(53)	(46)	—	(48)	(257)	(142)	(173)	(719)
Vehicle loans
Pass	541,270		746,225	444,934	153,264	81,931	68,201	—	—	2,035,825
Substandard	320		901	1,386	247	564	456	—	—	3,874
Total vehicle loans	541,590		747,126	446,320	153,511	82,495	68,657	—	—	2,039,699
Vehicle current period charge-offs	(324)		(1,385)	(1,425)	(416)	(497)	(684)	—	—	(4,731)
Consumer loans
Pass	20,061		13,137	6,361	2,485	1,727	6,201	63,801	866	114,639
Substandard	45		57	31	8	14	1	506	119	781
Total consumer loans	20,106		13,194	6,392	2,493	1,741	6,202	64,307	985	115,420
Consumer loan current period charge-offs	(2,055)		(340)	(271)	(116)	(150)	(766)	(149)	(13)	(3,860)
Total Personal Banking	786,963		1,538,860	1,367,408	826,577	432,580	1,354,790	534,816	44,653	6,886,647
Business Banking:
Commercial real estate loans
Pass	127,229		437,503	356,152	330,522	225,478	776,377	23,845	25,345	2,302,451
Special mention	—		7,451	26,749	21,732	5,615	34,909	350	—	96,806
Substandard	—		174	1,056	8,108	48,592	95,825	514	118	154,387
Total commercial real estate loans	127,229		445,128	383,957	360,362	279,685	907,111	24,709	25,463	2,553,644
Commercial real estate current period charge-offs	—		—	(492)	—	(51)	(1,013)	—	—	(1,556)
Commercial real estate loans - owner occupied
Pass	17,830		50,716	48,567	14,845	44,834	148,778	2,237	2,214	330,021
Special mention	—		17,631	—	1,690	—	7,808	—	—	27,129
Substandard	—		—	122	1,344	4,736	5,308	—	713	12,223
Total commercial real estate loans - owner occupied	17,830		68,347	48,689	17,879	49,570	161,894	2,237	2,927	369,373
Commercial real estate - owner occupied current period charge-offs	—		—	—	—	—	(68)	—	—	(68)
Commercial loans
Pass	315,190		455,098	77,266	28,754	37,787	56,731	501,722	4,285	1,476,833
Special mention	542		315	58	369	316	68	2,022	—	3,690
Substandard	—		2,496	577	495	2,503	1,025	11,730	1,260	20,086
Total commercial loans	315,732		457,909	77,901	29,618	40,606	57,824	515,474	5,545	1,500,609
Commercial loans current period charge-offs	—		(1,526)	(517)	(430)	(110)	(715)	(60)	(2)	(3,360)
Total Business Banking	460,791		971,384	510,547	407,859	369,861	1,126,829	542,420	33,935	4,423,626
Total loans	$	1,247,754	2,510,244	1,877,955	1,234,436	802,441	2,481,619	1,077,236	78,588	11,310,273

For the nine months ended September 30, 2023, $13.7 million of revolving loans were converted to term loans.

28

The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator for each portfolio segment 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 - 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 - owner occupied loans	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.

29

(4)    Goodwill and Other Intangible Assets

The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):

	September 30, 2023		December 31, 2022
Amortizable intangible assets:
Core deposit intangibles - gross	$	74,899	74,899
Less: accumulated amortization	(68,886)		(66,367)
Core deposit intangibles - net	$	6,013	8,532
Customer and Contract intangible assets - gross	$	12,775	12,775
Less: accumulated amortization	(12,775)		(12,747)
Customer and Contract intangible assets - net	—		28
Total intangible assets - net	$	6,013	8,560

The following table shows the actual aggregate amortization expense for the quarters ended September 30, 2023 and 2022, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):

For the quarter ended September 30, 2023	$	795
For the quarter ended September 30, 2022	1,047
For the nine months ended September 30, 2023	2,546
For the nine months ended September 30, 2022	3,345
For the year ending December 31, 2023	3,270
For the year ending December 31, 2024	2,452
For the year ending December 31, 2025	1,662
For the year ending December 31, 2026	871
For the year ending December 31, 2027	305

The following table provides information for the changes in the carrying amount of goodwill (in thousands):

	Total
Balance at December 31, 2022	$	380,997
Balance at September 30, 2023	$	380,997

We performed our annual goodwill impairment test as of June 30, 2023 in accordance with ASC 350 and concluded that goodwill was not impaired.

(5)    Borrowed Funds

(a)    Borrowings

Borrowed funds at September 30, 2023 and December 31, 2022 are presented in the following table:

	September 30, 2023				December 31, 2022
	Amount		Average rate		Amount		Average rate
Term notes payable to the FHLB of Pittsburgh, due within one year	$	375,400	5.65	%	$	500,000	4.55	%
Notes payable to the FHLB of Pittsburgh, due within one year	119,000		5.68	%	51,300		4.45	%
Collateralized borrowings, due within one year	48,587		1.52	%	105,766		0.27	%
Collateral received, due within one year	61,600		5.16	%	24,100		4.17	%
Total borrowed funds	$	604,587			$	681,166

Borrowings from the Federal Home Loan Bank (“FHLB”) of Pittsburgh, if any, are secured by our residential first mortgage and other qualifying loans. At September 30, 2023, the carrying value of these loans was $6.049 billion. Certain of these borrowings are subject to restrictions or penalties in the event of prepayment.

The revolving line of credit with the FHLB of Pittsburgh carries a commitment of $250.0 million. The rate is adjusted daily by the FHLB of Pittsburgh, and any borrowings on this line may be repaid at any time without penalty. At September 30, 2023 and December 31, 2022, the balance of the revolving line of credit was $119.0 million and $51.3 million, respectively.

30

At September 30, 2023 and December 31, 2022, collateralized borrowings due within one year were $48.6 million and $105.8 million, respectively. These borrowings are collateralized by cash or various securities held in safekeeping by the FHLB. At September 30, 2023, the carrying value of the cash and securities used as collateral was $89.3 million.

At September 30, 2023 and December 31, 2022, collateral received was $61.6 million and $24.1 million, respectively. This represents collateral posted to us from our derivative counterparties.

At September 30, 2023 and December 31, 2022, term notes payable to the FHLB of Pittsburgh due within one year were $375.4 million and $500.0 million, respectively. The September 30, 2023 total is made up of ten advances: 400,000 at 5.72% maturing October 2, 2023; $100.0 million at 5.65% maturing October 6, 2023; $100.0 million at 5.65% maturing October 13, 2023; $25.0 million at 5.63% maturing October 26, 2023; $25.0 million at 5.66% maturing October 31, 2023; $25.0 million at 5.63% maturing November 9, 2023; $25.0 million at 5.65% maturing November 13, 2023; $25.0 million at 5.62% maturing November 14, 2023; $25.0 million at 5.63% maturing November 21, 2023; and $25.0 million at 5.65% maturing November 30, 2023.

On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity date of September 15, 2030. The subordinated notes, which qualify as Tier 2 capital, bear interest at an annual rate of 4.00%, payable semi-annually in arrears commencing on March 15, 2021, and a floating rate of interest equivalent to the 3-month Secured Overnight Financing Rate (“SOFR”) plus 3.89% payable quarterly in arrears commencing on December 15, 2025. During the year-ended December 31, 2022 the Company repurchased $10.2 million of subordinated notes leaving $114.8 million of subordinated notes outstanding. The subordinated debt issuance costs of approximately $1.8 million are being amortized over five years on a straight-line basis into interest expense. At September 30, 2023 and December 31, 2022, subordinated debentures, net of issuance costs, were $114.1 million and $113.8 million, respectively.

(b)    Trust Preferred Securities

The Company has seven statutory business trusts: Northwest Bancorp Capital Trust III, a Delaware statutory business trust, Northwest Bancorp Statutory Trust IV, a Connecticut statutory business trust, LNB Trust II, a Delaware statutory business trust, Union National Capital Trust I (“UNCT I”), a Delaware statutory business trust, Union National Capital Trust II (“UNCT II”), a Delaware statutory business trust, MFBC Statutory Trust I, a Delaware statutory trust, and Universal Preferred Trust, a Delaware statutory trust (the “Trusts”). The Trusts exist solely to issue preferred securities to third parties for cash, issue common securities to the Company in exchange for capitalization of the Trusts, invest the proceeds from the sale of trust securities in an equivalent amount of debentures of the Company, and engage in other activities that are incidental to those previously listed. 

The Trusts have invested the proceeds of the offerings in junior subordinated deferrable interest debentures issued by the Company. The structure of these debentures mirrors the structure of the trust-preferred securities. These subordinated debentures are the sole assets of the Trusts. As the shareholders of the trust preferred securities are the primary beneficiaries of the Trusts, the Trusts are not consolidated in our financial statements.

The following table sets forth a summary of the cumulative trust preferred securities and the junior subordinated debt held by the Trust as of the date listed (dollars in thousands).

	Maturity date	Interest rate	Capital debt securities		September 30, 2023		December 31, 2022
Northwest Bancorp Capital Trust III	December 30, 2035	3-month SOFR plus 1.38%	$	50,000	$	51,547	51,547
Northwest Bancorp Statutory Trust IV	December 15, 2035	3-month SOFR plus 1.38%	50,000		51,547		51,547
LNB Trust II	June 15, 2037	3-month SOFR plus 1.48%	7,875		8,119		8,119
Union National Capital Trust I (1)	January 23, 2034	3-month SOFR plus 2.85%	8,000		7,993		7,975
Union National Capital Trust II (1)	November 23, 2034	3-month SOFR plus 2.00%	3,000		2,789		2,768
MFBC Statutory Trust I (1)	September 15, 2035	3-month SOFR plus 1.70%	5,000		3,762		3,684
Universal Preferred Trust (1)	October 7, 2035	3-month SOFR plus 1.69%	5,000		3,752		3,674
					$	129,509	129,314

(1) Net of discounts due to the fair value adjustment made at the time of acquisition.

Cash distributions on the trust securities are made on a quarterly basis to the extent interest on the debentures is received by the Trusts. We have the right to defer payment of interest on the subordinated debentures at any time, or from time-to-time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust securities also are deferred. To date there have been no interest deferrals. Interest on the subordinated debentures and distributions on the trust securities is cumulative. Our obligation constitutes a full, irrevocable, and unconditional guarantee on a subordinated basis of the obligations of the trust under the preferred securities.

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The Trusts must redeem the preferred securities when the debentures are paid at maturity or upon an earlier redemption of the debentures to the extent the debentures are redeemed. All or part of the debentures may be redeemed at any time. Also, the debentures may be redeemed at any time if existing laws or regulations, or the interpretation or application of these laws or regulations, change causing:

•the interest on the debentures to no longer be deductible by the Company for federal income tax purposes;

•the trusts to become subject to federal income tax or to certain other taxes or governmental charges;

•the trusts to register as an investment company; or

•the preferred securities to no longer qualify as Tier I capital. 

We may, at any time, dissolve any of the Trusts and distribute the debentures to the trust security holders, subject to receipt of any required regulatory approvals.

(6)    Guarantees

We issue standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued by the Company 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 loan underwriting procedures. Collateral may be obtained based on management’s credit assessment of the customer. At September 30, 2023, the maximum potential amount of future payments we could be required to make under these non-recourse standby letters of credit was $45.9 million, of which $28.7 million is fully collateralized. At September 30, 2023, we had a liability which represents deferred income of $1.0 million related to the standby letters of credit.

In addition, we maintain a $5.0 million unsecured line of credit with a correspondent bank for private label credit card facilities for certain existing commercial clients of the Bank, of which $3.4 million in notional value of credit cards have been issued. These issued credit cards had an outstanding balance of $578,000 at September 30, 2023. 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 correspondent bank and initiate collection from our customer as part of the existing credit facility of that customer.

(7)    Earnings Per Share

Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, without considering any dilutive items. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company.

The following table sets forth the computation of basic and diluted EPS (in thousands, except share data and per share amounts): 

	Quarter ended September 30,			Nine months ended September 30,
	2023		2022	2023	2022
Net income	$	39,220	37,304	105,943	99,017
Less: Dividends and undistributed earnings allocated to participating securities	99		166	267	441
Net income available to common shareholders	$	39,121	37,138	105,676	98,576
Weighted average common shares outstanding	126,767,507		126,320,706	126,629,786	126,082,217
Add: Participating shares outstanding	320,177		565,729	320,177	565,729
Total weighted average common shares and dilutive potential shares	127,087,684		126,886,435	126,949,963	126,647,946
Basic earnings per share	$	0.31	0.29	0.83	0.78
Diluted earnings per share	$	0.31	0.29	0.83	0.78

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(8)    Pension and Other Post-Retirement Benefits

The following table sets forth the net periodic costs for the defined benefit pension plans and post-retirement healthcare plans for the periods indicated (in thousands):

	Quarter ended September 30,
	Pension benefits			Other post-retirement benefits
	2023		2022	2023	2022
Service cost	$	1,560	2,599	—	—
Interest cost	2,245		1,671	7	10
Expected return on plan assets	(3,479)		(3,864)	—	—
Amortization of prior service cost	(564)		(564)	—	—
Amortization of the net loss	20		381	10	2
Net periodic cost	$	(218)	223	17	12

	Nine months ended September 30,
	Pension benefits			Other post-retirement benefits
	2023		2022	2023	2022
Service cost	$	4,680	7,797	—	—
Interest cost	6,735		5,013	21	30
Expected return on plan assets	(10,437)		(11,592)	—	—
Amortization of prior service cost	(1,692)		(1,692)	—	—
Amortization of the net loss	60		1,143	30	6
Net periodic cost	$	(654)	669	51	36

Because of the current funding status, we do not anticipate a funding requirement during the year ending December 31, 2023.

(9)    Disclosures About Fair Value of Financial Instruments

We are required to disclose fair value information about financial instruments whether or not recognized in the Consolidated Statement of Financial Condition. Fair value information of certain financial instruments and all nonfinancial instruments is not required to be disclosed. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

Financial assets and liabilities recognized or disclosed at fair value on a recurring basis and certain financial assets and liabilities on a non-recurring basis are accounted for using a three-level hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. This hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest level input that has a significant impact on fair value measurement is used.

Financial assets and liabilities are categorized based upon the following characteristics or inputs to the valuation techniques:

•    Level 1 - Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.

•    Level 2 - Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing.

•     Level 3 - Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following:

◦Quotes from brokers or other external sources that are not considered binding;

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◦Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; and

◦Quotes and other information from brokers or other external sources where the inputs are not deemed observable.

We are responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value. We perform due diligence to understand the inputs used or how the data was calculated or derived. We also corroborate the reasonableness of external inputs in the valuation process.

The carrying amounts reported in the Consolidated Statement of Financial Condition approximate fair value for the following financial instruments: cash and cash equivalents, marketable securities available-for-sale, residential mortgage loans held-for-sale, accrued interest receivable, interest rate lock commitments, forward commitments, interest rate swaps, savings and checking deposits, foreign exchange swaps, risk participation agreements, and accrued interest payable.

Marketable Securities

Where available, market values are based on quoted market prices, dealer quotes, and prices obtained from independent pricing services.

Debt Securities — available-for-sale - Generally, debt securities are valued using pricing for similar securities, recently executed transactions and other pricing models utilizing observable inputs. The valuation for most debt securities is classified as Level 2. Securities within Level 2 include corporate bonds, municipal bonds, mortgage-backed securities and U.S. government obligations. Certain debt securities which were AAA rated at purchase do not have an active market, and as such we have used an alternative method to determine the fair value of these securities. The fair value has been determined using a discounted cash flow model using market assumptions, which generally include cash flow, collateral and other market assumptions. As such, securities which otherwise would have been classified as Level 2 securities if an active market for those assets or similar assets existed are included herein as Level 3 assets.

Debt Securities — held-to-maturity - The fair value of debt securities held-to-maturity is determined in the same manner as debt securities available-for-sale.

Loans Receivable

Loans with comparable characteristics including collateral and re-pricing structures are segregated for valuation purposes. Each loan pool is separately valued utilizing a discounted cash flow analysis. Projected monthly cash flows are discounted to present value using a market rate for comparable loans, which is not considered an exit price. Characteristics of comparable loans include remaining term, coupon interest, and estimated prepayment speeds. Delinquent loans are separately evaluated given the impact delinquency has on the projected future cash flow of the loan including the approximate discount or market rate, which is not considered an exit price.

Loans Held-for-Sale

The estimated fair value of loans held-for-sale is based on market bids obtained from potential buyers.

FHLB Stock

Due to the restrictions placed on transferability of FHLB stock, it is not practical to determine the fair value. FHLB stock is recorded at cost.

Deposit Liabilities

The estimated fair value of deposits with no stated maturity, which includes demand deposits, money market, and other savings accounts, is the amount payable on demand. Although market premiums paid for depository institutions reflect an additional value for these low-cost deposits, adjusting fair value for any value expected to be derived from retaining those deposits for a future period of time or from the benefit that results from the ability to fund interest-earning assets with these deposit liabilities is prohibited. The fair value estimates of deposit liabilities do not include the benefit that results from the low-cost funding provided by these deposits compared to the cost of borrowing funds in the market. Fair values for time deposits are estimated using a discounted cash flow calculation that applies contractual cost currently being offered in the existing portfolio to current market rates being offered locally for deposits of similar remaining maturities. The valuation adjustment for the portfolio consists of the present value of the difference of these two cash flows, discounted at the assumed market rate of the corresponding maturity.

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Borrowed Funds

Fixed rate advances are valued by comparing their contractual cost to the prevailing market cost. The carrying amount of repurchase agreements approximates their fair value.

Subordinated Debentures

The fair value of our subordinated debentures is calculated using the discounted cash flows at rates observable for other similarly traded liabilities.

Junior Subordinated Debentures

The fair value of junior subordinated debentures is calculated using the discounted cash flows at the prevailing rate of interest.

Interest Rate Lock Commitments and Forward Commitments

The fair value of interest rate lock commitments is based on the value of underlying loans held-for-sale which is based on quoted prices for similar loans in the secondary market. This value is then adjusted based on the probability of the loan closing (i.e., the “pull-through” amount, a significant unobservable input). The fair value of forward sale commitments is based on quoted prices from the secondary market based on the settlement date of the contracts.

Cash Flow Hedges, Interest Rate and Foreign Exchange Swap Agreements and Risk Participation Agreements

The fair value of interest rate swaps is based upon the present value of the expected future cash flows using the SOFR discount curve, the basis for the underlying interest rate. To price interest rate swaps, cash flows are first projected for each payment date using the fixed rate for the fixed side of the swap and the forward rates for the floating side of the swap. These swap cash flows are then discounted to time zero using SOFR zero-coupon interest rates. The sum of the present value of both legs is the fair market value of the interest rate swap. These valuations have been derived from our third party vendor’s proprietary models rather than actual market quotations. The proprietary models are based upon financial principles and assumptions that we believe to be reasonable. The fair value of the foreign exchange swap is derived from proprietary models rather than actual market quotations. The proprietary models are based upon financial principles and assumptions that we believe to be reasonable. Risk participation agreements are entered into when Northwest purchases a portion of a commercial loan that has an interest rate swap. Northwest assumes credit risk on its portion of the interest rate swap should the borrower fail to pay as agreed. The value of risk participation agreements is determined based on the value of the swap after considering the credit quality, probability of default, and loss given default of the borrower.

Off-Balance Sheet Financial Instruments

These financial instruments generally are not sold or traded, and estimated fair values are not readily available. However, the fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. Commitments to extend credit are generally short-term in nature and, if drawn upon, are issued under current market terms. At September 30, 2023 and December 31, 2022, there was no significant unrealized appreciation or depreciation on these financial instruments.

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The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the Consolidated Statement of Financial Condition at September 30, 2023 (in thousands): 

	Carrying amount		Estimated fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	161,995	161,995	161,995	—	—
Securities available-for-sale	1,010,076		1,010,076	—	1,010,076	—
Securities held-to-maturity	830,106		682,681	—	682,681	—
Loans receivable, net	11,174,840		10,031,968	—	—	10,031,968
Loans held-for-sale	10,592		10,592	—	—	10,592
Accrued interest receivable	42,624		42,624	42,624	—	—
Interest rate lock commitments	664		664	—	—	664
Foreign exchange swaps	203		203	—	203	—
Interest rate swaps designated as hedging instruments	4,603		4,603	—	4,603	—
Interest rate swaps not designated as hedging instruments	57,249		57,249	—	57,249	—
FHLB stock	40,404		40,404	—	—	—
Total financial assets	$	13,333,356	12,043,059	204,619	1,754,812	10,043,224
Financial liabilities:
Savings and checking deposits	$	9,531,544	9,531,544	9,531,544	—	—
Time deposits	2,258,338		2,250,768	—	—	2,250,768
Borrowed funds	604,587		617,832	617,832	—	—
Subordinated debt	114,102		102,456	—	102,456	—
Junior subordinated debentures	129,509		136,461	—	—	136,461
Forward commitments	23		23	—	23	—
Foreign exchange swaps	10		10	—	10	—
Interest rate swaps not designated as hedging instruments	57,275		57,275	—	57,275	—
Risk participation agreements	17		17	—	17	—
Accrued interest payable	7,915		7,915	7,915	—	—
Total financial liabilities	$	12,703,320	12,704,301	10,157,291	159,781	2,387,229

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The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the Consolidated Statement of Financial Condition at December 31, 2022 (in thousands): 

	Carrying amount		Estimated fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	139,365	139,365	139,365	—	—
Securities available-for-sale	1,218,108		1,218,108	—	1,218,108	—
Securities held-to-maturity	881,249		751,384	—	751,384	—
Loans receivable, net	10,792,503		9,910,852	—	—	9,910,852
Residential mortgage loans held-for-sale	9,913		9,913	—	—	9,913
Accrued interest receivable	35,528		35,528	35,528	—	—
Interest rate lock commitments	559		559	—	—	559
Forward commitments	128		128	—	128	—
Interest rate swaps not designated as hedging instruments	26,642		26,642	—	26,642	—
FHLB stock	40,143		40,143	—	—	—
Total financial assets	$	13,144,138	12,132,622	174,893	1,996,262	9,921,324
Financial liabilities:
Savings and checking accounts	$	10,412,263	10,412,263	10,412,263	—	—
Time deposits	1,052,285		1,059,790	—	—	1,059,790
Borrowed funds	681,166		680,996	680,996	—	—
Subordinated debt	113,840		102,554	—	102,554	—
Junior subordinated debentures	129,314		133,546	—	—	133,546
Foreign exchange swaps	23		23	—	23	—
Interest rate swaps not designated as hedging instruments	45,464		45,464	—	45,464	—
Risk participation agreements	18		18	—	18	—
Accrued interest payable	3,231		3,231	3,231	—	—
Total financial liabilities	$	12,437,604	12,437,885	11,096,490	148,059	1,193,336

Fair value estimates are made at a point-in-time, based on relevant market data and information about the instrument. The methods and assumptions detailed above were used in estimating the fair value of financial instruments at both September 30, 2023 and December 31, 2022.

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The following table represents assets and liabilities measured at fair value on a recurring basis at September 30, 2023 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Debt securities:
U.S. government and agencies	$	—	56,526	—	56,526
Government-sponsored enterprises	—		38,906	—	38,906
States and political subdivisions	—		68,071	—	68,071
Corporate	—		7,464	—	7,464
Total debt securities	—		170,967	—	170,967
Residential mortgage-backed securities:
GNMA	—		17,073	—	17,073
FNMA	—		99,874	—	99,874
FHLMC	—		68,926	—	68,926
Non-agency	—		5	—	5
Collateralized mortgage obligations:
GNMA	—		318,652	—	318,652
FNMA	—		148,389	—	148,389
FHLMC	—		186,190	—	186,190
Total mortgage-backed securities	—		839,109	—	839,109
Interest rate lock commitments	—		—	664	664
Foreign exchange swaps	—		203	—	203
Interest rate swaps designated as hedging instruments	—		4,603	—	4,603
Interest rate swaps not designated as hedging instruments	—		57,249	—	57,249
Total assets	$	—	1,072,131	664	1,072,795
Forward commitments	$	—	23	—	23
Foreign exchange swaps	—		10	—	10
Interest rate swaps not designated as hedging instruments	—		57,275	—	57,275
Risk participation agreements	—		17	—	17
Total liabilities	$	—	57,325	—	57,325

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The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2022 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Debt securities:
U.S. government and agencies	$	—	60,592	—	60,592
Government-sponsored enterprises	—		39,201	—	39,201
States and political subdivisions	—		111,766	—	111,766
Corporate	—		12,978	—	12,978
Total debt securities	—		224,537	—	224,537
Residential mortgage-backed securities:
GNMA	—		12,434	—	12,434
FNMA	—		117,218	—	117,218
FHLMC	—		74,991	—	74,991
Non-agency	—		6	—	6
Collateralized mortgage obligations:
GNMA	—		364,553	—	364,553
FNMA	—		185,588	—	185,588
FHLMC	—		238,781	—	238,781
Total mortgage-backed securities	—		993,571	—	993,571
Interest rate lock commitments	—		—	559	559
Forward commitments	—		128	—	128
Interest rate swaps not designated as hedging instruments	—		26,642	—	26,642
Total assets	$	—	1,244,878	559	1,245,437
Foreign exchange swaps	$	—	23	—	23
Interest rate swaps not designated as hedging instruments	—		45,464	—	45,464
Risk participation agreements	—		18	—	18
Total liabilities	$	—	45,505	—	45,505

The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis (in thousands):

	For the quarter ended September 30,			For the nine months ended September 30,
	2023		2022	2023	2022
Beginning balance,	$	761	1,520	559	1,684
Interest rate lock commitments:
Net activity	(97)		(457)	105	(621)
Ending balance	$	664	1,063	664	1,063

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans held-for-sale, loans individually assessed, real estate owned, and mortgage servicing rights.

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The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of September 30, 2023 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Loans individually assessed	$	—	—	13,467	13,467
Mortgage servicing rights	—		—	198	198
Real estate owned, net	—		—	363	363
Total assets	$	—	—	14,028	14,028

The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of December 31, 2022 (in thousands): 

	Level 1		Level 2	Level 3	Total assets  at fair value
Loans individually assessed	$	—	—	15,416	15,416
Mortgage servicing rights	—		—	95	95
Real estate owned, net	—		—	413	413
Total assets	$	—	—	15,924	15,924

Individually Assessed Loans - A loan is considered to be individually assessed as described in Note 1(f) of the Notes to the Consolidated Financial Statements in Item 8 of Part II of our 2022 Annual Report on Form 10-K. We classify loans individually assessed as nonrecurring Level 3.

Mortgage servicing rights - Mortgage servicing rights represent the value of servicing residential mortgage loans, when the mortgage loans have been sold into the secondary market and the associated servicing has been retained. The value is determined through a discounted cash flow analysis, which uses interest rates, prepayment speeds and delinquency rate assumptions as inputs. All of these assumptions require a significant degree of management judgment. Servicing rights and the related mortgage loans are segregated into categories or homogeneous pools based upon common characteristics. Adjustments are only made when the estimated discounted future cash flows are less than the carrying value, as determined by individual pool. As such, mortgage servicing rights are classified as nonrecurring Level 3.

Real Estate Owned - Real estate owned is comprised of property acquired through foreclosure or voluntarily conveyed by borrowers. These assets are recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal. Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or fair value, less estimated disposition costs. We classify real estate owned as nonrecurring Level 3. 

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at September 30, 2023 (in thousands): 

	Fair value		Valuation techniques	Significant unobservable inputs	Range  (weighted average)
Loans individually assessed	$	13,467	Appraisal value (1)	Estimated cost to sell	10.0%
Mortgage servicing rights	198		Discounted cash flow	Annual service cost	$90
				Prepayment rate	6.6% to 15.0% (9.9%)
				Expected life (months)	53.1 to 103.5 (75.8)
				Option adjusted spread	720 basis points
				Forward yield curve	5.44% to 5.60%
Real estate owned, net	363		Appraisal value (1)	Estimated cost to sell	15.0%
Loans held for sale	10,592		Quoted prices for similar loans in active markets adjusted by an expected pull-through rate	Estimated pull-through rate	100.0%

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.

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(10)    Derivative Financial Instruments

We are a party to derivative financial instruments in the normal course of business to manage our own exposure to fluctuations in interest rates and to meet the needs of our customers. The primary derivatives that we use are interest rate swaps and caps and foreign exchange contracts, which are entered into with counterparties that meet established credit standards. We believe that the credit risk inherent in all of our derivative contracts is minimal based on our credit standards and the netting and collateral provisions of the interest rate swap agreements.

Derivatives Designated as Hedging Instruments

As of September 30, 2023, the Company has entered into seven separate pay-fixed interest rate swaps in order to synthetically convert short-term three month FHLB advances to fixed-rate term funding with an aggregate value of $175 million with maturities ranging from three to five years. Our risk management objective and strategy for these interest rate swaps at such time was to reduce our exposure to variability in interest-related cash outflows attributable to changes in the USD-SOFR swap rate, the designated benchmark interest rate being hedged. Based upon our contemporaneous quantitative analysis at the inception of the interest rate swaps, we have determined these interest rate swaps qualify for hedge accounting in accordance with ASC 815, Derivatives and Hedging. Our cash flow hedges are recorded within other assets on the Consolidated Statement of Financial Condition at their estimated fair value.

As long as the hedge remains highly effective, the changes in the fair value of derivatives designated, and that qualify, as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. A hedging relationship that is determined to not be highly effective no longer qualifies for hedge accounting and any gain or loss is recognized immediately into earnings. Amount reclassified into earnings are included in interest expense in the Consolidated Statement of Income.

Derivatives Not Designated as Hedging Instruments

We act as an interest rate or foreign exchange swap counterparty for certain commercial borrowers in the normal course of servicing our customers, which are accounted for at fair value. We manage our exposure to such interest rate or foreign exchange swaps by entering into corresponding and offsetting interest rate swaps with third parties that mirror the terms of the swaps we have with the commercial borrowers. These positions (referred to as “customer swaps”) directly offset each other and our exposure is the fair value of the derivatives due to changes in credit risk of our commercial borrowers and third parties. Customer swaps are recorded within other assets or other liabilities on the consolidated statement of financial condition at their estimated fair value. Changes to the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the Consolidated Statement of Income.

We enter into interest rate lock commitments for residential mortgage loans which commit us to lend funds to a potential borrower at a specific interest rate within a specified period of time. Interest rate lock commitments that relate to the origination of mortgage loans that will be held-for-sale are considered derivative financial instruments under applicable accounting guidance. Interest rate lock commitments on loans held-for-sale are carried at fair value in other assets on the consolidated statement of financial condition. Northwest sells loans to the secondary market on a mandatory or best efforts basis. The loans sold on a mandatory basis commit us to deliver a specific principal amount of mortgage loans to an investor at a specified price, by a specified date, or the commitment must be paired off. These forward commitments entered into on a mandatory delivery basis meet the definition of a derivative financial instrument. All closed loans to be sold on a mandatory delivery basis are classified as held-for-sale on the Consolidated Statement of Financial Condition. Changes to the fair value of the interest rate lock commitments and the forward commitments are recorded in mortgage banking income in the Consolidated Statements of Income.

We enter into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution should the borrower fail to perform on its interest rate derivative contract with the financial institution. These risk participation agreements are recorded within other liabilities on the Consolidated Statement of Financial Condition at their estimated fair value. Changes to the fair value of the the risk participation agreements are included in other operating income in the Consolidated Statement of Income.

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The following table presents information regarding our derivative financial instruments for the periods indicated (in thousands):

	Asset derivatives			Liability derivatives
	Notional amount		Fair value	Notional amount	Fair value
At September 30, 2023
Derivatives designated as hedging instruments:
Interest rate swap agreements	$	175,000	4,603	—	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	673,255		57,249	673,255	57,275
Foreign exchange swap agreements	7,393		203	760	10
Interest rate lock commitments	35,272		664	—	—
Forward commitments	—		—	6,772	23
Risk participation agreements	—		—	102,385	17
Total Derivatives	$	890,920	62,719	783,172	57,325
At December 31, 2022
Derivatives not designated as hedging instruments:
Interest rate swap agreements	$	651,114	26,642	651,114	45,464
Foreign exchange swap agreements	—		—	2,328	23
Interest rate lock commitments	19,727		559	—	—
Forward commitments	4,909		128	—	—
Risk participation agreements	—		—	114,159	18
Total derivatives	$	675,750	27,329	767,601	45,505

The following table presents income or expense recognized on derivatives for the periods indicated (in thousands):

	For the quarter ended September 30,			For the nine months ended September 30,
	2023		2022	2023	2022
Hedging derivatives:
Decrease in interest expense	$	627	—	831	—
Non-hedging swap derivatives:
Increase/(decrease) in other income	$	203	93	(127)	207
(Decrease)/increase in mortgage banking income	$	(221)	809	(46)	1,131

The following table presents information regarding our derivative financial instruments designated as hedging for the quarter ended September 30, 2023 (in thousands):

	Notional amount		Effective rate		Estimated decrease to interest expense in the next twelve months		Maturity date	Remaining term (in months)
Interest rate products:
Issued May 11, 2023	$	25,000	3.52	%	$	(540)	5/11/2027	43
Issued May 12, 2023	25,000		3.54	%	(528)		5/12/2028	55
Issued May 19, 2023	25,000		3.84	%	(454)		11/19/2027	50
Issued May 31, 2023	25,000		4.08	%	(400)		11/30/2026	38
Issued July 26, 2023	25,000		4.24	%	(348)		7/26/2028	58
Issued July 31, 2023	25,000		4.36	%	(330)		1/31/2028	52
Issued August 9, 2023	25,000		4.32	%	(333)		8/9/2027	46
Total	$	175,000			$	(2,933)

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(11)    Legal Proceedings

We establish accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated. As of September 30, 2023, we do not anticipate that the aggregate ultimate liability arising out of any pending or threatened legal proceedings will be material to our Consolidated Financial Statements. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances. Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, any amounts accrued may not represent the ultimate loss to us from legal proceedings.

(12)    Changes in Accumulated Other Comprehensive Income

The following tables show the changes in accumulated other comprehensive income by component for the periods indicated (in thousands): 

	For the quarter ended September 30, 2023
	Unrealized  losses on securities  available-for-sale		Change in  fair value  of interest  rate swaps	Change in  defined benefit  pension plans	Total
Balance as of June 30, 2023	$	(163,272)	1,737	(7,716)	(169,251)
Other comprehensive (loss)/income before reclassification adjustments (1) (2)	(29,715)		1,825	—	(27,890)
Amounts reclassified from accumulated other comprehensive income (3)	—		—	(382)	(382)
Net other comprehensive (loss)/income	(29,715)		1,825	(382)	(28,272)
Balance as of September 30, 2023	$	(192,987)	3,562	(8,098)	(197,523)

	For the quarter ended September 30, 2022
	Unrealized  losses on securities  available-for-sale		Change in  defined benefit  pension plans	Total
Balance as of June 30, 2022	$	(117,056)	(25,574)	(142,630)
Other comprehensive loss before reclassification adjustments (4)	(48,387)		—	(48,387)
Amounts reclassified from accumulated other comprehensive income (5)	—		(131)	(131)
Net other comprehensive loss	(48,387)		(131)	(48,518)
Balance as of September 30, 2022	$	(165,443)	(25,705)	(191,148)

(1)Consists of unrealized holding losses, net of tax of $9,140.

(2)Change in fair value of interest rate swaps, net of tax ($533).

(3)Consists of realized gains, net of tax of $152.

(4)Consists of unrealized holding losses, net of tax $14,705.

(5)Consists of realized gains, net of tax of $50.

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	For the nine months ended September 30, 2023
	Unrealized  losses on securities  available-for-sale		Change in  fair value  of interest  rate swaps	Change in  defined benefit  pension plans	Total
Balance as of December 31, 2022	$	(164,206)	—	(6,952)	(171,158)
Other comprehensive (loss)/income before reclassification adjustments (1) (3)	(34,417)		3,562	—	(30,855)
Amounts reclassified from accumulated other comprehensive income (2) (4)	5,636		—	(1,146)	4,490
Net other comprehensive income/(loss)	(28,781)		3,562	(1,146)	(26,365)
Balance as of September 30, 2023	$	(192,987)	3,562	(8,098)	(197,523)

	For the nine months ended September 30, 2022
	Unrealized  losses  on securities  available-for-sale		Change in  defined benefit  pension plans	Total
Balance as of December 31, 2021	$	(12,317)	(25,312)	(37,629)
Other comprehensive loss before reclassification adjustments (5)	(153,124)		—	(153,124)
Amounts reclassified from accumulated other comprehensive income (6) (7)	(2)		(393)	(395)
Net other comprehensive loss	(153,126)		(393)	(153,519)
Balance as of September 30, 2022	$	(165,443)	(25,705)	(191,148)

(1)Consists of unrealized holding losses, net of tax of $9,603.

(2)Consists of realized losses, net of tax of ($1,731).

(3)Change in fair value of interest rate swaps, net of tax ($1,041).

(4)Consists of realized gains, net of tax of $456.

(5)Consists of unrealized holding losses, net of tax $45,555.

(6)Consists of realized losses, net of tax $0.

(7)Consists of realized gains, net of tax of $151.

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Item 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

In addition to historical information, this document may contain certain forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, as they reflect management’s analysis only as of the date of this report. We have no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this report.

     Important factors that might cause such a difference include, but are not limited to:

•    inflation and changes in the interest rate environment that reduce our margins, our loan origination, or the fair value of financial instruments;     

•    changes in asset quality, including increases in default rates on loans and higher levels of nonperforming loans and loan charge-offs generally;

•    changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;

•    changes in federal, state, or local tax laws and tax rates;

•    general economic conditions, either nationally or in our market areas, that are different than expected;

•    adverse changes in the securities and credit markets;

•    cyber-security concerns, including an interruption or breach in the security of our website or other information systems;

•    technological changes that may be more difficult or expensive than expected;

•    changes in liquidity, including the size and composition of our deposit portfolio, and the percentage of uninsured deposits in the portfolio;

•    the ability of third-party providers to perform their obligations to us;

•    competition among depository and other financial institutions, including with respect to deposit gathering, service charges and fees;

•    our ability to enter new markets successfully and capitalize on growth opportunities;

•    our ability to manage our internal growth and our ability to successfully integrate acquired entities, businesses or branch offices;

•    changes in consumer spending, borrowing and savings habits;

•    our ability to continue to increase and manage our commercial and personal loans;

•    possible impairments of securities held by us, including those issued by government entities and government sponsored enterprises;

•    changes in the value of our goodwill or other intangible assets;

•    the impact of the economy on our loan portfolio (including cash flow and collateral values), investment portfolio, customers and capital market activities;

•    our ability to receive regulatory approvals for proposed transactions or new lines of business;

•    the effects of any federal government shutdown or the inability of the federal government to manage debt limits;

•    changes in the financial performance and/or condition of our borrowers;

•    the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Securities and Exchange Commission, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board (“FASB”) and other accounting standard setters;

•    changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses;

•    our ability to access cost-effective funding;

•    the effect of global or national war, conflict, or terrorism;

•    our ability to manage market risk, credit risk and operational risk;

•    the disruption to local, regional, national and global economic activity caused by infectious disease outbreaks, and the significant impact that any such outbreaks may have on our growth, operations and earnings;

•    our ability to retain key employees; and

•    our compensation expense associated with equity allocated or awarded to our employees.

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Overview of Critical Accounting Policies Involving Estimates

Please refer to Note 1 of the Notes to Consolidated Financial Statements in Item 8 of Part II of our 2022 Annual Report on Form 10-K.

Comparison of Financial Condition

Total assets at September 30, 2023 were $14.362 billion, an increase of $248.9 million, or 1.8%, from $14.113 billion at December 31, 2022. This increase in assets was primarily driven by an increase in loans receivable, partially offset by a decrease in marketable securities. A discussion of significant changes follows.

Total marketable securities decreased by $259.2 million, or 12.3%, to $1.840 billion at September 30, 2023 from $2.099 billion at December 31, 2022. Available-for-sale securities decreased $208.0 million, and held-to-maturity securities decreased $51.1 million. These decreases were driven by the maturity and regular monthly cash flows, in addition to the sale of approximately $110.0 million of available-for-sale securities during the year in order to reallocate these funds into higher interest-earning products.

Gross loans receivable increased by $389.8 million, or 3.6%, to $11.310 billion at September 30, 2023, from $10.920 billion at December 31, 2022. This increase was attributable to organic loan growth. Our commercial loan portfolio increased by $368.6 million, or 32.6%, to $1.501 billion at September 30, 2023, from $1.132 billion at December 31, 2022, primarily as a result of the new lending verticals that we recently implemented. Our commercial real estate loan portfolio increased by $99.5 million, or 3.5%, to $2.923 billion at September 30, 2023, from $2.824 billion at December 31, 2022. These increases in our total business banking loans were slightly offset by a decrease in our personal banking loans of $78.3 million, or 1.1%, to $6.887 billion at September 30, 2023 compared to $6.965 billion at December 31, 2022. This included a $38.9 million, or 3.0%, decrease in our home equity portfolio and a $25.8 million, or 0.7%, decrease in our mortgage portfolio as demand for these products has been impacted by the higher market interest rates.

Total deposits increased by $325.3 million, or 2.8%, to $11.790 billion at September 30, 2023 from $11.465 billion at December 31, 2022. This increase was driven by a $1.206 billion, or 114.6%, increase in time deposits due to customer preferences for this fixed maturity product. Partially offsetting this increase were decreases in savings and money market deposits totaling $573.4 million, or 12.1%, due to customers choosing higher yielding product alternatives. In addition, demand deposit accounts decreased by $307.3 million, or 5.4%, as we believe customers used funds during this period of higher inflationary costs.

Total shareholders’ equity at September 30, 2023 was $1.498 billion, or $11.79 per share, an increase of $6.9 million, or 0.5%, from $1.491 billion, or $11.74 per share, at December 31, 2022. This increase was the result of year-to-date earnings of $105.9 million, partially offset by $76.2 million of cash dividend payments for the nine months ended September 30, 2023 as well as a change in accumulated other comprehensive loss of $26.4 million, or 15.4%, primarily due to an increase in unrealized loss on our available-for-sale investment portfolio as a result of higher market interest rates.

Regulatory Capital

Financial institutions and their holding companies are subject to various regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct, material effect on a company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, financial institutions must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting guidelines. Capital amounts and classifications are also subject to qualitative judgments made by the regulators about components, risk-weighting and other factors.

Applicable rules limit an organization’s capital distributions and certain discretionary bonus payments if the organization does not hold a “capital conservation buffer” consisting of 2.5% of Total, Tier 1 and Common Equity Tier 1 (“CET1”) capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements.

Quantitative measures, established by regulation to ensure capital adequacy, require financial institutions to maintain minimum amounts and ratios (set forth in the table below) of Total, CET1 and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Capital requirements are presented in the tables below (dollars in thousands).

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	At September 30, 2023
	Actual				Minimum capital requirements (1)				Well capitalized requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk weighted assets)
Northwest Bancshares, Inc.	$	1,789,604	16.114	%	$	1,166,094	10.500	%	$	1,110,566	10.000	%
Northwest Bank	1,514,889		13.652	%	1,165,115		10.500	%	1,109,634		10.000	%
Tier 1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,548,121		13.940	%	943,981		8.500	%	888,453		8.000	%
Northwest Bank	1,387,508		12.504	%	943,189		8.500	%	887,707		8.000	%
CET1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,422,601		12.810	%	777,396		7.000	%	721,868		6.500	%
Northwest Bank	1,387,508		12.504	%	776,744		7.000	%	721,262		6.500	%
Tier 1 capital (leverage) (to average assets)
Northwest Bancshares, Inc.	1,548,121		10.773	%	574,801		4.000	%	718,501		5.000	%
Northwest Bank	1,387,508		9.656	%	574,776		4.000	%	718,471		5.000	%

(1) Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio).

	At December 31, 2022
	Actual				Minimum capital requirements (1)				Well capitalized requirements
	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital (to risk weighted assets)
Northwest Bancshares, Inc.	$	1,745,701	16.363	%	$	1,120,216	10.500	%	$	1,066,872	10.000	%
Northwest Bank	1,568,202		14.712	%	1,119,214		10.500	%	1,065,918		10.000	%
Tier I capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,516,621		14.216	%	906,841		8.500	%	853,498		8.000	%
Northwest Bank	1,452,962		13.631	%	906,030		8.500	%	852,734		8.000	%
CET1 capital (to risk weighted assets)
Northwest Bancshares, Inc.	1,391,296		13.041	%	746,810		7.000	%	693,467		6.500	%
Northwest Bank	1,452,962		13.631	%	746,143		7.000	%	692,847		6.500	%
Tier I capital (leverage) (to average assets)
Northwest Bancshares, Inc.	1,516,621		10.817	%	560,816		4.000	%	701,020		5.000	%
Northwest Bank	1,452,962		10.365	%	560,706		4.000	%	700,882		5.000	%

(1) Amounts and ratios include the capital conservation buffer of 2.5%, which does not apply to Tier 1 capital to average assets (leverage ratio).

Liquidity

We are required to maintain a sufficient level of liquid assets, as determined by management and reviewed for adequacy by the FDIC and the Pennsylvania Department of Banking and Securities during their regular examinations. Northwest frequently monitors its liquidity position primarily using the ratio of unencumbered available-for-sale liquid assets as a percentage of deposits and borrowings (“liquidity ratio”). Northwest Bank’s liquidity ratio at September 30, 2023 was 9.66%. We adjust liquidity levels in order to meet funding needs for deposit outflows, payment of real estate taxes and insurance on mortgage loan escrow accounts, repayment of borrowings and loan commitments. At September 30, 2023, Northwest had $3.119 billion of additional borrowing capacity available with the FHLB, including $250.0 million on an overnight line of credit, which had a drawn balance of $119.0 million at September 30, 2023, as well as $302.4 million of borrowing capacity available with the Federal Reserve Bank and $105.0 million with two correspondent banks.

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Dividends

We paid $25.4 million in cash dividends during the quarters ended September 30, 2023 and 2022. The common stock dividend payout ratio (dividends declared per share divided by net income per diluted share) for September 30, 2023 and 2022 was 64.5% and 69.0% on dividends of $0.20 per share. On October 18, 2023, the Board of Directors declared a cash dividend of $0.20 per share payable on November 14, 2023 to shareholders of record as of November 2, 2023. This represents the 116th consecutive quarter we have paid a cash dividend.

Nonperforming Assets

The following table sets forth information with respect to nonperforming assets. Nonaccrual loans are those loans on which the accrual of interest has ceased. Generally, when a loan is 90 days past due, we fully reverse all accrued interest thereon and cease to accrue interest thereafter. Exceptions are made for loans that have contractually matured, are in the process of being modified to extend the maturity date and are otherwise current as to principal and interest, and well-secured loans that are in the process of collection. Loans may also be placed on nonaccrual before they reach 90 days past due if conditions exist that call into question our ability to collect all contractual interest. Other nonperforming assets represent property acquired through foreclosure or repossession. Foreclosed property is carried at the lower of its fair value less estimated costs to sell or the principal balance of the related loan.

	September 30, 2023			December 31, 2022
	(in thousands)
Loans 90 days or more past due:
Residential mortgage loans	$	7,695		5,574
Home equity loans	2,206			2,257
Vehicle loans	2,274			2,471
Other consumer loans	746			608
Commercial real estate loans	8,042			7,589
Commercial real estate - owner occupied	374			278
Commercial loans	2,472			1,829
Total loans 90 days or more past due	$	23,809		20,606
Total real estate owned (REO)	$	363		413
Total loans 90 days or more past due and REO	24,172			21,019
Total loans 90 days or more past due to net loans receivable	0.21		%	0.19	%
Total loans 90 days or more past due and REO to total assets	0.17		%	0.15	%
Nonperforming assets:
Nonaccrual loans - loans 90 days or more past due	23,082			19,861
Nonaccrual loans - loans less than 90 days past due	53,572			61,375
Loans 90 days or more past due still accruing	728			744
Total nonperforming loans	77,382			81,980
Total nonperforming assets	$	77,745		82,393
Total nonaccrual loans to total loans	0.68		%	0.74	%

Allowance for Credit Losses

On an ongoing basis, the Credit Administration department, as well as loan officers, branch managers and department heads, review and monitor the loan portfolio for problem loans. This portfolio monitoring includes a review of the monthly delinquency reports as well as historical comparisons and trend analysis. Personal and small business commercial loans are classified primarily by delinquency status. In addition, a meeting is held every quarter with each region to monitor the performance and status of commercial loans on an internal watch list. On an on-going basis, the loan officer, in conjunction with a portfolio manager, grades or classifies problem commercial loans or potential problem commercial loans based upon their knowledge of the lending relationship and other information previously accumulated. This rating is also reviewed independently by our Loan Review department on a periodic basis. Our loan grading system for problem commercial loans is consistent with industry regulatory guidelines which classifies loans as “substandard”, “doubtful” or “loss”. Loans that do not expose us to risk sufficient to warrant classification in one of the previous categories, but which possess some weaknesses, are designated as “special mention”. A “substandard” loan is any loan that is 90 days or more contractually delinquent or is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as “doubtful” have all the weaknesses inherent in those classified as “substandard” with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions or values, highly questionable and improbable. Loans classified as “loss” have all the weakness inherent in those classified as “doubtful” and are considered uncollectible.    

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Credit relationships that have been classified as substandard or doubtful and are greater than or equal to $1.0 million are reviewed by the Credit Administration department to determine if they no longer continue to demonstrate similar risk characteristics to their loan pool. If a loan no longer demonstrates similar risk characteristics to their loan pool they are removed from the pool and an individual assessment will be performed.

If it is determined that a loan needs to be individually assessed, the Credit Administration department determines the proper measure of fair value for each loan based on one of three methods: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent, less costs of sale or disposal. If the measurement of the fair value of the loan is more or less than the amortized cost basis of the loan, the Credit Administration department adjusts the specific allowance associated with that individual loan accordingly.

If a substandard or doubtful loan is not individually assessed, it is grouped with other loans that possess common characteristics for credit losses and analysis. For the purpose of calculating reserves, we have grouped our loans into seven segments: residential mortgage loans, home equity loans, vehicle loans, consumer loans, commercial real estate loans, commercial real estate loans - owner occupied and commercial loans. The allowance for credit losses is measured using a combination of statistical models and qualitative assessments. We use a twenty four month forecasting period and revert to historical average loss rates thereafter. Reversion to average loss rates takes place over twelve months. Historical average loss rates are calculated using historical data beginning in October 2009 through the current period.

The credit losses for individually assessed loans along with the estimated loss for each homogeneous pool are consolidated into one summary document. This summary schedule along with the support documentation used to establish this schedule is presented to management’s Allowance for Credit Losses Committee (“ACL Committee”) monthly. The ACL Committee reviews and approves the processes and ACL documentation presented. Based on this review and discussion, the appropriate amount of ACL is estimated and any adjustments to reconcile the actual ACL with this estimate are determined. The ACL Committee also considers if any changes to the methodology are needed. In addition to the ACL Committee’s review and approval, a review is performed by the Risk Management Committee of the Board of Directors on a quarterly basis and annually by internal audit.

In addition to the reviews by management’s ACL Committee and the Board of Directors’ Risk Management Committee, regulators from either the FDIC and/or the Pennsylvania Department of Banking and Securities perform an extensive review on at least an annual basis for the adequacy of the ACL and its conformity with regulatory guidelines and pronouncements. Any recommendations or enhancements from these independent parties are considered by management and the ACL Committee and implemented accordingly.

We acknowledge that this is a dynamic process and consists of factors, many of which are external and out of our control that can change frequently, rapidly and substantially. The adequacy of the ACL is based upon estimates using all the information previously discussed as well as current and known circumstances and events. There is no assurance that actual portfolio losses will not be substantially different than those that were estimated.

We utilize a structured methodology each period when analyzing the adequacy of the allowance for credit losses and the related provision for credit losses, which the ACL Committee assesses regularly for appropriateness. As part of the analysis as of September 30, 2023, we considered the most recent economic conditions and forecasts available which incorporated the impact of material recent economic events. In addition, we considered the overall trends in asset quality, reserves on individually assessed loans, historical loss rates and collateral valuations. The ACL increased by $6.8 million, or 5.8%, to $124.8 million, or 1.10% of total loans at September 30, 2023 from $118.0 million, or 1.08% of total loans, at December 31, 2022. This increase was primarily the result of growth within our commercial loan portfolio during the year, as well as forecasted economic deterioration in our allowance for credit loss models.

Total classified loans decreased $27.6 million, or 11.7%, to $208.6 million at September 30, 2023 from $236.2 million at December 31, 2022. This decrease was primarily driven by upgrades and payoffs of loans in our commercial real estate portfolio during the current year.

We also consider how the levels of nonaccrual loans and historical charge-offs have influenced the required amount of allowance for credit losses. Nonaccrual loans of $76.7 million, or 0.68% of total loans receivable at September 30, 2023, decreased by $4.6 million, or 5.6%, from $81.2 million, or 0.74% of total loans receivable at December 31, 2022. This decrease primarily related to classification upgrades of loans within our commercial real estate portfolio. As a percentage of average loans, annualized net charge-offs increased to 0.13% for the quarter ended September 30, 2023 compared to 0.02% for the year ended December 31, 2022 due to several large recoveries during 2022.

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Comparison of Operating Results for the Quarters Ended September 30, 2023 and 2022

Net income for the quarter ended September 30, 2023 was $39.2 million, or $0.31 per diluted share, an increase of $1.9 million, or 5.1%, from net income of $37.3 million, or $0.29 per diluted share, for the quarter ended September 30, 2022. The increase in net income resulted primarily from a decrease in provision for credit losses and an increase in noninterest income. The provision for credit losses decreased $10.3 million, or 91.1%, and noninterest income increased $4.1 million, or 15.2%. These changes were partially offset by an increase in noninterest expense of $8.6 million, or 10.9% and a decrease in net interest income of $4.4 million, or 3.9%. Net income for the quarter ended September 30, 2023 represents annualized returns on average equity and average assets of 10.27% and 1.08%, respectively, compared to 9.84% and 1.05% for the same quarter last year. A further discussion of notable changes follows.

Interest Income

Total interest income increased by $33.0 million, or 27.8%, to $151.6 million for the quarter ended September 30, 2023 from $118.6 million for the quarter ended September 30, 2022. This increase is attributable to increases in both the average yield and average balance of interest-earning assets. The average yield earned on interest-earning assets increased to 4.49% for the quarter ended September 30, 2023 from 3.58% for the quarter ended September 30, 2022 due to the continued rising interest rate environment. The average balance of interest-earning assets increased $249.0 million, or 1.9%, to $13.405 billion for the quarter ended September 30, 2023 from $13.156 billion for the quarter ended September 30, 2022, primarily driven by a $710.4 million increase in the average balance of loans receivable, offset partially by a $238.7 million decrease in the average balance of mortgage-backed securities and a $193.8 million decrease in the average balance of other interest-earning deposits. These changes are described further below.

Interest income on loans receivable increased by $33.7 million, or 31.5%, to $140.7 million for the quarter ended September 30, 2023 compared to $106.9 million for the quarter ended September 30, 2022. This increase in interest income was the result of increases in both the average yield and the average balance on loans receivable. The average yield on loans receivable increased to 4.99% for the quarter ended September 30, 2023 from 4.05% for the quarter ended September 30, 2022, due to the increase in market interest rates as well as a change in mix to higher yielding loan products. The average balance of loans receivable increased $710.4 million, or 6.8%, to $11.191 billion for the quarter ended September 30, 2023 from $10.481 billion for the quarter ended September 30, 2022, due to organic loan growth in our commercial, residential mortgage, consumer, and commercial real estate portfolios. Additionally contributing to loan growth were purchases of loan pools during 2022, including $182.8 million in small business equipment finance loans and $188.3 million of one- to four-family jumbo mortgage loans.

Interest income on mortgage-backed securities decreased by $611,000, or 7.0%, to $8.1 million for the quarter ended September 30, 2023 compared to $8.7 million for the quarter ended September 30, 2022. This decrease was driven by a $238.7 million, or 11.8%, decrease in the average balance of mortgage-backed securities to $1.781 billion for the quarter ended September 30, 2023 from $2.020 billion for the quarter ended September 30, 2022 due to the sale of lower yielding available-for-sale securities during the current year along with scheduled payments and maturities. Slightly offsetting this decrease was an increase in the average yield on mortgage-backed securities to 1.81% for the quarter ended September 30, 2023 from 1.72% for the quarter ended September 30, 2022 due to the purchase of higher yielding mortgage-backed securities in the prior year.

Interest income on investment securities decreased by $270,000, or 17.5%, to $1.3 million for the quarter ended September 30, 2023 from $1.5 million for the quarter ended September 30, 2022. This decrease was attributable to decreases in both the average yield and the average balance of investment securities. The average yield decreased to 1.52% for the quarter ended September 30, 2023 from 1.59% for the quarter ended September 30, 2022, and the average balance of investment securities decreased by $52.6 million, or 13.5%, to $336.1 million for the quarter ended September 30, 2023 from $388.8 million for the quarter ended September 30, 2022 as cash flows have been redirected to the higher yield loan portfolio.

Dividends on FHLB stock increased by $520,000, or 351.4%, to $668,000 for the quarter ended September 30, 2023 from $148,000 for the quarter ended September 30, 2022. This increase was due to increases in both the average balance and the average yield on FHLB stock. The average balance of FHLB stock increased by $23.7 million, or 168.9%, to $37.7 million for the quarter ended September 30, 2023 from $14.0 million for the quarter ended September 30, 2022. Required FHLB stock holdings fluctuate with, among other things, the utilization of our borrowing capacity as well as capital requirements established by the FHLB. In addition, the average yield increased to 7.03% for the quarter ended September 30, 2023 from 4.19% for the quarter ended September 30, 2022 due to increases in market interest rates.

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Interest income on interest-earning deposits decreased by $381,000, or 29.4%, to $914,000 for the quarter ended September 30, 2023 from $1.3 million for the quarter ended September 30, 2022, driven by a decrease in the average balance of interest-earning deposits of $193.8 million, or 76.5%, to $59.4 million for the quarter ended September 30, 2023 from $253.2 million for the quarter ended September 30, 2022 as the Bank redeployed these funds into higher yielding loans and investments. Offsetting this decrease in average balance was an increase in the average yield on interest-earning deposits to 6.11% for the quarter ended September 30, 2023 from 2.00% for the quarter ended September 30, 2022, due to the aggressive campaign by the Federal Reserve Board over the last year to raise targeted short-term interest rates to combat inflation.

Interest Expense

Interest expense increased by $37.4 million, or 636.8%, to $43.2 million for the quarter ended September 30, 2023 from $5.9 million for the quarter ended September 30, 2022 due to increases in both the average balance and average cost of interest-bearing liabilities. The average balance of interest-bearing liabilities increased $603.5 million, or 6.53%, to $9.850 billion for the quarter ended September 30, 2023 from $9.246 billion for the quarter ended September 30, 2022 while the average balance of noninterest-bearing demand deposits decreased by $336.4 million, or 10.9%, to $2.757 billion at September 30, 2023 from $3.093 billion at September 30, 2022. We believe customers utilized funds in their demand deposit accounts for both higher yielding products as well as higher inflationary cost of goods. The increase in average balance of interest-bearing liabilities was driven by an increase in average borrowed funds of $516.4 million, or 406.4%, which were used to fund loan growth. Additionally, the average balance of interest-bearing deposits increased by $86.4 million, or 1.0%, specifically driven by an increase in time deposits due to customer preferences for this fixed maturity product type. The average cost of interest-bearing liabilities increased to 1.74% for the quarter ended September 30, 2023 from 0.25% for the quarter ended September 30, 2022, primarily attributable to increases in the interest rates paid on deposit accounts and borrowed funds in response to increases in market interest rates, as well as a change in mix to higher cost products.

Net Interest Income

Net interest income decreased by $4.4 million, or 3.9%, to $108.4 million for the quarter ended September 30, 2023 from $112.7 million for the quarter ended September 30, 2022. This decrease is attributable to the factors discussed above. Our interest rate spread decreased to 2.75% for the quarter ended September 30, 2023 from 3.33% for the quarter ended September 30, 2022 and our net interest margin decreased to 3.21% for the quarter ended September 30, 2023 from 3.40% for the quarter ended September 30, 2022 due to the increase in our cost of interest bearing liabilities.

Provision for Credit Losses

The provision for credit losses decreased by $10.3 million, or 91.1%, to $1.0 million for the quarter ended September 30, 2023 compared to $11.3 million for the quarter ended September 30, 2022. The current period provision for credit losses includes $4.0 million for credit losses - loans and a provision release of $3.0 million for credit losses - unfunded commitments. The prior period provision for credit losses included $7.7 million for credit losses - loans and $3.6 million for credit losses - unfunded commitments. The $3.7 million decrease in the provision for credit losses - loans can be attributed to changes in the economic forecasts reflected in our allowance for credit loss models, as well continued decreases in classified loans. While economic forecasts have continued to deteriorate in the current year, our current allowance reflects such that deterioration was slower during the current period as compared to the same period last year. Classified assets decreased by $29.1 million, or 12.2%, to $208.6 million, or 1.84% of total loans, at September 30, 2023 from $237.7 million, or 2.21% of total loans, at September 30, 2022. The $6.6 million decrease in our provision for credit losses - unfunded commitments was related to the timing of the origination of loans with current off-balance sheet exposure.

In determining the amount of the current period provision, we considered current and forecasted economic conditions, including but not limited to improvements in unemployment levels, expected economic growth, bankruptcy filings, and changes in real estate values and the impact of these factors on the quality of our loan portfolio and historical loss experience. We analyze the allowance for credit losses as described in the section entitled “Allowance for Credit Losses.” The provision that is recorded is sufficient, in our judgment, to bring this reserve to a level that reflects the current expected lifetime losses in our loan portfolio relative to loan mix, a reasonable and supportable economic forecast period and historical loss experience at September 30, 2023.

Noninterest Income

Noninterest income increased by $4.1 million, or 15.2%, to $30.9 million for the quarter ended September 30, 2023 from $26.8 million for the quarter ended September 30, 2022. This increase was driven by a $3.1 million, or 209.2%, increase in income from bank-owned life insurance to $4.6 million for the quarter ended September 30, 2023 from $1.5 million for the quarter ended September 30, 2022 due to death benefits received in the current period. In addition, service charges and fees increased $947,000, or 6.6%, to $15.3 million for the quarter ended September 30, 2023 from $14.3 million for the quarter ended September 30, 2022 driven by deposit related fees based on customer activity in the current quarter.

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Noninterest Expense

Noninterest expense increased by $8.6 million, or 10.9%, to $87.6 million for the quarter ended September 30, 2023 from $79.0 million for the quarter ended September 30, 2022. This increase was primarily attributable to increases in compensation and employee benefits, other expenses, processing expenses, and FDIC insurance premiums. Compensation and employee benefits expense increased $4.5 million, or 9.7%, to $51.2 million for the quarter ended September 30, 2023, from $46.7 million for the quarter ended September 30, 2022 primarily as a result of additional talent and expertise to propel the organization to higher performance levels, in particular commercial and small business lending as well as risk management and back office support and infrastructure. Other expenses increased $1.7 million to $2.0 million for the quarter ended September 30, 2023, from $321,000 for the quarter ended September 30, 2022 due to an increase in employee relocation and other expenses. Processing expenses increased $1.3 million, or 9.4%, to $14.7 million for the quarter ended September 30, 2023, from $13.4 million for the quarter ended September 30, 2022 due to the implementation of additional third-party software programs. Lastly, FDIC insurance premiums increased $1.1 million, or 95.1%, to $2.3 million for the quarter ended September 30, 2023 from $1.2 million for the quarter ended September 30, 2022 due to an increase in the deposit insurance assessment rate beginning in the first quarter of 2023.

Income Taxes

The provision for income taxes decreased by $522,000, or 4.4%, to $11.5 million for the quarter ended September 30, 2023 from $12.0 million for the quarter ended September 30, 2022. This decrease in income taxes was due primarily to a decrease in our effective tax rate in the current year related to bank-owned life insurance tax benefits. We anticipate our effective tax rate to be between 22.5% and 24.5% for the year ending December 31, 2023.

Comparison of Operating Results for the Nine Months Ended September 30, 2023 and 2022

Net income for the nine months ended September 30, 2023 was $105.9 million, or $0.83 per diluted share, an increase of $6.9 million, or 7.0%, from $99.0 million, or $0.78 per diluted share, for the nine months ended September 30, 2022. The increase in net income resulted from an increase in net interest income of $25.7 million, or 8.5%, a decrease in provision for credit losses of $2.5 million, or 14.3%, and an increase in noninterest income of $1.7 million, or 2.0%. These changes were partially offset by an increase of $20.1 million, or 8.4%, in noninterest expense and an increase in income tax expense of $2.8 million, or 9.6%. Net income for the nine months ended September 30, 2023 represents annualized returns on average equity and average assets of 9.37% and 0.99%, respectively, compared to 8.61% and 0.93% for the nine months ended September 30, 2022. A further discussion of notable changes follows.

Interest Income

    Total interest income increased by $109.6 million, or 34.1%, to $430.5 million for the nine months ended September 30, 2023 from $320.9 million for the nine months ended September 30, 2022. This increase is the result of increases in both the average yield and average balance of interest-earning assets. The average yield on interest-earning assets increased to 4.31% for the nine months ended September 30, 2023 from 3.23% for the nine months ended September 30, 2022. This increase in average yield is attributed to the increased interest rate environment. The average balance of interest-earning assets increased $67.7 million, or 0.5%, to $13.369 billion for the nine months ended September 30, 2023 from $13.301 billion for the nine months ended September 30, 2022 driven by an increase in the average balance of loans receivable, offset by a decrease in the average balance of other interest-earning deposits, described further below.

Interest income on loans receivable increased by $106.4 million, or 36.6%, to $397.1 million for the nine months ended September 30, 2023 from $290.7 million for the nine months ended September 30, 2022. This increase is attributed to increases in both the average yield and the average balance of loans receivable. The average yield on loans receivable increased to 4.81% for the nine months ended September 30, 2023 from 3.82% for the nine months ended September 30, 2022 due to the increase in market interest rates. The average balance of loans receivable increased $867.5 million, or 8.5%, to $11.049 billion for the nine months ended September 30, 2023 from $10.182 billion for the nine months ended September 30, 2022 due to organic loan growth in our commercial, residential mortgage, and consumer portfolios. Additionally contributing to loan growth were purchases of loan pools during 2022 of small business equipment finance loans and one- to four-family jumbo mortgage loans.

    Interest income on mortgage-backed securities increased by $2.7 million, or 12.3%, to $24.9 million for the nine months ended September 30, 2023 from $22.2 million for the nine months ended September 30, 2022. This increase is attributed to an increase in the average yield on mortgage-backed securities to 1.80% for the nine months ended September 30, 2023 from 1.50% for the nine months ended September 30, 2022 due to the purchase of higher yielding mortgage-backed securities in the prior year. Partially offsetting this increase was a decrease in the average balance of mortgage-backed securities of $123.1 million, or 6.2%, to $1.850 billion for the nine months ended September 30, 2023 from $1.973 billion for the nine months ended September 30, 2022 due to the sale of available-for-sale securities during the year coupled with regularly scheduled payments and maturities.

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Interest income on investment securities remained relatively flat, increasing by $34,000, or 0.8%, to $4.3 million for the nine months ended September 30, 2023. This increase is attributable to an increase in the average yield on investment securities. The average yield on investment securities increased to 1.58% for the nine months ended September 30, 2023 from 1.51% for the nine months ended September 30, 2022. Slightly offsetting this increase in average yield was a decrease in the average balance of investment securities by $14.9 million, or 3.9%, to $365.0 million for the nine months ended September 30, 2023 from $379.9 million for the nine months ended September 30, 2022.

Dividends on FHLB stock increased by $1.9 million, or 608.0%, to $2.2 million for the nine months ended September 30, 2023 from $311,000 for the nine months ended September 30, 2022. This increase was due to increases in both the average balance and the average yield of FHLB stock. The average balance of FHLB stock increased $27.2 million, or 197.2%, to $40.9 million for the nine months ended September 30, 2023 from $13.8 million for the nine months ended September 30, 2022. Required FHLB stock holdings fluctuate with, among other things, the utilization of our borrowing capacity as well as capital requirements established by the FHLB. Additionally, the average yield increased to 7.19% for the nine months ended September 30, 2023 from 3.02% for the nine months ended September 30, 2022, due to increases in market interest rates.

Interest income on interest-earning deposits decreased by $1.5 million, or 44.0%, to $1.9 million for the nine months ended September 30, 2023 from $3.4 million for the nine months ended September 30, 2022. This decrease is attributable to a decrease in the average balance of interest-earning deposits by $688.9 million, or 91.4%, to $64.6 million for the nine months ended September 30, 2023 from $753.5 million for the nine months ended September 30, 2022 as the Bank redeployed these funds into higher yielding loans and investments. Partially offsetting this decrease in average balance was an increase in the average yield on interest-earning deposits to 4.00% for the nine months ended September 30, 2023 from 0.60% for the nine months ended September 30, 2022, due to the campaign by the Federal Reserve Board over the last year to raise targeted short-term interest rates to combat inflation.

Interest Expense

Interest expense increased by $83.8 million, or 484.4%, to $101.2 million for the nine months ended September 30, 2023 from $17.3 million for the nine months ended September 30, 2022. This increase in interest expense was due to increases in the average cost of interest-bearing liabilities and the average balance of interest-bearing liabilities as well as the change in liability mix. The average cost of interest-bearing liabilities increased to 1.40% for the nine months ended September 30, 2023 from 0.25% for the nine months ended September 30, 2022 resulting primarily from the rising interest rate environment. The average balance of interest-bearing liabilities increased by $252.0 million, or 2.7%, to $9.677 billion for the nine months ended September 30, 2023 from $9.425 billion for the nine months ended September 30, 2022 driven by an increase in average borrowed funds by $608.6 million, or 463.3%. Wholesale borrowings were utilized to fund loan growth as well as replace the decrease in the average balance of interest-bearing deposits which declined by $351.9 million, or 3.9%. In addition, noninterest-bearing demand deposits decreased by $259.5 million, or 8.4%, as we believe customers used funds during a period of higher inflationary costs and searched for higher yield alternatives.

Net Interest Income

Net interest income increased by $25.7 million, or 8.5%, to $329.4 million for the nine months ended September 30, 2023 from $303.6 million for the nine months ended September 30, 2022. This increase is attributable to the factors discussed above. Our interest rate spread decreased to 2.91% for the nine months ended September 30, 2023 from 2.98% for the nine months ended September 30, 2022 and our net interest margin increased to 3.29% for the nine months ended September 30, 2023 from 3.05% for the nine months ended September 30, 2022 due to the change in market rates as well as the change in our interest-earning asset and funding mix.

Provision for Credit Losses

    The provision for credit losses decreased by $2.5 million, or 14.3%, to $14.9 million for the nine months ended September 30, 2023 from $17.4 million for the nine months ended September 30, 2022. The current period provision for credit losses includes $14.9 million for credit losses - loans and $65,000 for credit losses - unfunded commitments. The prior period provision for credit losses includes $8.8 million for credit losses - loans and $8.6 million for credit losses - unfunded commitments. The $6.0 million increase in the provision for credit losses - loans was driven by continued growth within our loan portfolio, as well as forecasted economic deterioration reflected in our allowance for credit loss models. This was partially offset by an $8.5 million decrease in our provision for credit losses - unfunded commitments compared to the same period last year based on the timing of the origination of loans with current off-balance sheet exposure.

Annualized net charge-offs to average loans increased to 0.10% for the nine months ended September 30, 2023 from 0.02% for the nine months ended September 30, 2022 due to several large recoveries during 2022. Additionally, classified assets declined by $29.1 million, or 12.2%, to $208.6 million, or 1.84% of loans outstanding at September 30, 2023 from $237.7 million, or 2.21% of loans outstanding at September 30, 2022 resulting primarily from upgrades and payoffs within our commercial real estate portfolio.

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In determining the amount of the current period provision, we considered current economic conditions, including but not limited to unemployment levels, bankruptcy filings, and changes in real estate values and the impact of these factors on the quality of our loan portfolio and historical loss experience.  We analyze the allowance for credit losses as described in the section entitled "Allowance for Credit Losses."  The provision that is recorded is sufficient, in our judgment, to bring this reserve to a level that reflects the current expected lifetime losses in our loan portfolio relative to loan mix, a reasonable and supportable economic forecast period and historical loss experience at September 30, 2023.

Noninterest Income

Noninterest income increased by $1.7 million, or 2.0%, to $84.7 million for the nine months ended September 30, 2023 from $83.0 million for the nine months ended September 30, 2022. This increase was primarily due to increases in service charges and fees, income from bank-owned life insurance, and a gain on the sale of Small Business Administration (SBA) loans. Service charges and fees increased by $2.2 million, or 5.4%, to $43.3 million for the nine months ended September 30, 2023 from $41.1 million for the nine months ended September 30, 2022 driven primarily by commercial loan fees and an increase in deposit related fees based on customer activity in the current year. In addition, income from bank-owned life insurance increased $1.7 million, or 30.5%, to $7.1 million for the nine months ended September 30, 2023 from $5.5 million for the nine months ended September 30, 2022 due to death benefits recognized in the current period. We also recognized a $1.4 million gain on the sale of SBA loans during the nine months ended September 30, 2023 due to this newly launched lending vertical. Partially offsetting these increases to income was a decrease in mortgage banking income of $2.2 million, or 50.2%, to $2.2 million for the nine months ended September 30, 2023 from $4.4 million for the nine months ended September 30, 2022 due to the volatile interest rate environment causing less favorable pricing in the secondary market, as well as a decrease in mortgage volumes primarily due to higher market interest rates.

In addition, during the nine months ended September 30, 2023, we recognized an $8.3 million gain on the sale of the servicing rights for a $1.3 billion one- to four- family mortgage portfolio. We tried to maximize our profit in the current interest rate environment as we pivot towards a commercial bank, and it also enabled us to accelerate the cash flow from our investment portfolio by selling approximately $110.0 million of investment securities yielding 2.0% for an equivalent $8.3 million loss and reinvesting these proceeds into commercial loans yielding over 7.0%.

Noninterest Expense

Noninterest expense increased by $20.1 million, or 8.4%, to $260.9 million for the nine months ended September 30, 2023, from $240.7 million for the nine months ended September 30, 2022. This increase was due to increases in almost all expense categories due to both inflationary costs as well as the continued build out of talent and infrastructure necessary to propel the organization to a higher level of performance. In particular, processing expenses increased by $4.8 million, or 12.2%, to $43.7 million for the nine months ended September 30, 2023, from $38.9 million for the nine months ended September 30, 2022 due to the implementation of third party software programs. Compensation and employee benefits increased by $3.8 million, or 2.7%, to $145.5 million for the nine months ended September 30, 2023 from $141.7 million for the nine months ended September 30, 2022 driven by increases in commercial lending, small business lending, risk management and internal audit salaries and benefits over the past twelve months. FDIC insurance premiums increased $3.2 million, or 91.6%, to $6.6 million for the nine months ended September 30, 2023, from $3.5 million for the nine months ended September 30, 2022 due to an increase in the deposit insurance assessment rate beginning in the first quarter of 2023. Merger, asset disposition and restructuring expense increased $3.0 million, or 219.9%, to $4.4 million for the nine months ended September 30, 2023, from $1.4 million for the nine months ended September 30, 2022 due to the severance and fixed asset charges related to the branch optimization and personnel reductions previously announced. Other expenses increased by $2.4 million, or 83.3%, to $5.4 million for the nine months ended September 30, 2023, from $2.9 million for the nine months ended September 30, 2022 due to an increase in employee relocation and other expenses. Additionally, professional service expense increased by $2.3 million, or 24.8%, to $11.6 million for the nine months ended September 30, 2023, from $9.3 million for the nine months ended September 30, 2022 due to the use of third-party consulting and staffing support. Lastly, marketing expenses increased by $1.8 million, or 28.6%, to $8.1 million for the nine months ended September 30, 2023, from $6.3 million for the nine months ended September 30, 2022 due primarily to deposit marketing campaigns.

Income Taxes

The provision for income taxes increased by $2.8 million, or 9.6%, to $32.3 million for the nine months ended September 30, 2023 from $29.5 million for the nine months ended September 30, 2022. This increase was primarily due to the increase in income before tax of $9.8 million, or 7.6%. We anticipate our effective tax rate to be between 22.5% and 24.5% for the year ending December 31, 2023.

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Average Balance Sheet

(in thousands)

The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages. 

	Quarter ended September 30,
	2023					2022
	Average balance		Interest	Avg. yield/ cost (h)		Average balance		Interest	Avg. yield/ cost (h)
Assets
Interest-earning assets:
Residential mortgage loans	$	3,476,446	32,596	3.75	%	$	3,331,173	29,414	3.53	%
Home equity loans	1,264,134		17,435	5.47	%	1,274,918		13,658	4.25	%
Consumer loans	2,092,023		23,521	4.46	%	1,981,754		17,256	3.45	%
Commercial real estate loans	2,911,145		41,611	5.67	%	2,842,597		34,158	4.70	%
Commercial loans	1,447,211		26,239	7.19	%	1,050,124		12,978	4.84	%
Loans receivable (a) (b) (d) (includes FTE adjustments of $735 and $521, respectively)	11,190,959		141,402	5.01	%	10,480,566		107,464	4.07	%
Mortgage-backed securities (c)	1,781,010		8,072	1.81	%	2,019,715		8,683	1.72	%
Investment securities (c) (d) (includes FTE adjustments of $154 and $215, respectively)	336,125		1,431	1.70	%	388,755		1,762	1.81	%
FHLB stock, at cost	37,722		668	7.03	%	14,028		148	4.19	%
Other interest-earning deposits	59,433		915	6.11	%	253,192		1,295	2.00	%
Total interest-earning assets (includes FTE adjustments of $889 and $736, respectively)	13,405,249		152,488	4.51	%	13,156,256		119,352	3.60	%
Noninterest-earning assets (e)	974,074					896,663
Total assets	$	14,379,323				$	14,052,919
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Savings deposits (g)	$	2,116,759	2,695	0.51	%	$	2,350,248	594	0.10	%
Interest-bearing demand deposits (g)	2,569,229		4,086	0.63	%	2,794,338		360	0.05	%
Money market deposit accounts (g)	2,112,228		6,772	1.27	%	2,620,850		692	0.10	%
Time deposits (g)	2,164,559		18,136	3.32	%	1,110,906		1,511	0.54	%
Borrowed funds (f)	643,518		7,937	4.89	%	127,073		239	0.75	%
Subordinated debentures	114,045		1,148	4.03	%	113,695		1,149	4.04	%
Junior subordinated debentures	129,466		2,456	7.42	%	129,207		1,322	4.00	%
Total interest-bearing liabilities	9,849,804		43,230	1.74	%	9,246,317		5,867	0.25	%
Noninterest-bearing demand deposits (g)	2,757,091					3,093,490
Noninterest-bearing liabilities	257,141					209,486
Total liabilities	12,864,036					12,549,293
Shareholders’ equity	1,515,287					1,503,626
Total liabilities and shareholders’ equity	$	14,379,323				$	14,052,919
Net interest income/Interest rate spread			109,258	2.77	%			113,485	3.35	%
Net interest-earning assets/Net interest margin	$	3,555,445		3.23	%	$	3,909,939		3.42	%
Ratio of interest-earning assets to interest- bearing liabilities	1.36X					1.42X

(a)Average gross loans includes loans held as available-for-sale and loans placed on nonaccrual status.

(b)Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material.

(c)Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d)Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent (“FTE”) basis.

(e)Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f)Average balances include FHLB borrowings and collateralized borrowings.

(g)Average cost of deposits were 1.07% and 0.11%, respectively, average cost of interest-bearing deposits were 1.40% and 0.14%, respectively .

(h)Annualized. Shown on a FTE basis. The FTE basis adjusts for the tax benefit of income on certain tax exempt loans and investments using the federal statutory rate applicable to each period presented. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. GAAP basis yields were: loans — 4.99% and 4.05%, respectively; investment securities — 1.52% and 1.59%, respectively; interest-earning assets — 4.49% and 3.58%, respectively. GAAP basis net interest rate spreads were 2.75% and 3.33%, respectively; and GAAP basis net interest margins were 3.21% and 3.40%, respectively.

55

Rate/Volume Analysis

(in thousands)

The following table represents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected interest income and interest expense during the periods indicated. Information is provided in each category with respect to (i) changes attributable to changes in volume (changes in volume multiplied by prior rate), (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) net change. Changes that cannot be attributed to either rate or volume have been allocated to both rate and volume.

	For the quarter ended September 30, 2023 vs. 2022
	Increase/(decrease) due to			Total  increase/(decrease)
	Rate		Volume
Interest-earning assets:
Loans receivable	$	24,962	8,976	33,938
Mortgage-backed securities	470		(1,081)	(611)
Investment securities	(107)		(224)	(331)
FHLB stock, at cost	104		416	520
Other interest-earning deposits	2,578		(2,958)	(380)
Total interest-earning assets	28,007		5,129	33,136
Interest-bearing liabilities:
Savings deposits	2,398		(297)	2,101
Interest-bearing demand deposits	4,084		(358)	3,726
Money market deposit accounts	7,711		(1,631)	6,080
Time deposits	7,797		8,828	16,625
Borrowed funds	1,328		6,370	7,698
Subordinated debt	(4)		3	(1)
Junior subordinated debentures	1,129		5	1,134
Total interest-bearing liabilities	24,443		12,920	37,363
Net change in net interest income	$	3,564	(7,791)	(4,227)

56

Average Balance Sheet

(in thousands)

    The following table sets forth certain information relating to the Company’s average balance sheet and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.

	Nine months ended September 30,
	2023					2022
	Average balance		Interest	Avg. yield/ cost (i)		Average balance		Interest	Avg. yield/ cost (i)
Assets
Interest-earning assets:
Residential mortgage loans	$	3,485,130	97,090	3.71	%	$	3,162,758	82,282	3.47	%
Home equity loans	1,273,878		50,467	5.30	%	1,282,045		37,443	3.90	%
Consumer loans	2,119,717		66,977	4.22	%	1,887,843		47,588	3.37	%
Commercial real estate loans	2,857,555		117,074	5.48	%	2,918,940		95,813	4.33	%
Commercial loans	1,312,750		67,465	6.87	%	929,942		28,981	4.11	%
Loans receivable (a) (b) (d) (includes FTE adjustments of $1,937 and $1,416, respectively)	11,049,030		399,073	4.83	%	10,181,528		292,107	3.84	%
Mortgage-backed securities (c)	1,849,567		24,935	1.80	%	1,972,694		22,201	1.50	%
Investment securities (c) (d) (includes FTE adjustments of $579 and $627, respectively)	364,956		4,909	1.79	%	379,850		4,923	1.73	%
FHLB stock, at cost	40,945		2,202	7.19	%	13,776		311	3.02	%
Other interest-earning deposits	64,560		1,931	4.00	%	753,482		3,447	0.60	%
Total interest-earning assets (includes FTE adjustments of $2,516 and $2,043, respectively)	13,369,058		433,050	4.33	%	13,301,330		322,989	3.25	%
Noninterest-earning assets (e)	880,799					941,947
Total assets	$	14,249,857				$	14,243,277
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Savings deposits (h)	$	2,163,564	4,777	0.30	%	$	2,348,944	1,758	0.10	%
Interest-bearing demand deposits (h)	2,550,433		6,684	0.35	%	2,842,071		1,008	0.05	%
Money market deposit accounts (h)	2,246,422		17,289	1.03	%	2,647,301		2,067	0.10	%
Time deposits (h)	1,733,428		35,993	2.78	%	1,207,444		5,416	0.60	%
Borrowed funds (f)	740,011		26,077	4.71	%	131,368		563	0.57	%
Subordinated debentures (g)	113,958		3,444	4.03	%	118,919		3,603	4.04	%
Junior subordinated debentures	129,401		6,889	7.02	%	129,142		2,893	2.95	%
Total interest-bearing liabilities	9,677,217		101,153	1.40	%	9,425,189		17,308	0.25	%
Noninterest-bearing demand deposits (h)	2,822,178					3,081,640
Noninterest-bearing liabilities	239,034					199,742
Total liabilities	12,738,429					12,706,571
Shareholders’ equity	1,511,428					1,536,706
Total liabilities and shareholders’ equity	$	14,249,857				$	14,243,277
Net interest income/Interest rate spread			331,897	2.93	%			305,681	3.00	%
Net interest-earning assets/Net interest margin	$	3,691,841		3.32	%	$	3,876,141		3.07	%
Ratio of interest-earning assets to interest-bearing liabilities	1.38X					1.41X

(a)Average gross loans includes loans held as available-for-sale and loans placed on nonaccrual status.

(b)Interest income includes accretion/amortization of deferred loan fees/expenses, which were not material.

(c)Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.

(d)Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent (“FTE”) basis.

(e)Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.

(f)Average balances include FHLB borrowings and collateralized borrowings.

(g)On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity of September 15, 2030.

(h)Average cost of deposits were 0.75% and 0.11%, respectively and average cost of Interest-bearing deposits were 1.00% and0.15%, respectively.

(i)Annualized. Shown on a FTE basis. The FTE basis adjusts for the tax benefit of income on certain tax exempt loans and investments using the federal statutory rate applicable to each period presented. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. GAAP basis yields were: loans — 4.81% and 3.82%, respectively; investment securities — 1.58% and 1.51%, respectively; interest-earning assets — 4.31% and 3.23%, respectively. GAAP basis net interest rate spreads were 2.91% and 2.98%, respectively; and GAAP basis net interest margins were 3.29% and 3.05%, respectively.

57

Rate/Volume Analysis

(in thousands)

The following table represents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected interest income and interest expense during the periods indicated. Information is provided in each category with respect to (i) changes attributable to changes in volume (changes in volume multiplied by prior rate), (ii) changes attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) net change. Changes that cannot be attributed to either rate or volume have been allocated to both rate and volume.

	For the nine months ended September 30, 2023 vs. 2022
	Increase/(decrease) due to			Total increase/(decrease)
	Rate		Volume
Interest-earning assets:
Loans receivable	$	75,633	31,333	106,966
Mortgage-backed securities	4,394		(1,660)	2,734
Investment securities	186		(200)	(14)
FHLB stock, at cost	426		1,465	1,891
Other interest-earning deposits	19,094		(20,610)	(1,516)
Total interest-earning assets	99,733		10,328	110,061
Interest-bearing liabilities:
Savings deposits	3,428		(409)	3,019
Interest-bearing demand deposits	6,440		(764)	5,676
Money market deposit accounts	18,307		(3,085)	15,222
Time deposits	19,655		10,922	30,577
Borrowed funds	4,066		21,448	25,514
Subordinated debt	(8)		(151)	(159)
Junior subordinated debentures	3,982		14	3,996
Total interest-bearing liabilities	55,870		27,975	83,845
Net change in net interest income	$	43,863	(17,647)	26,216

58

Item 3.        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As the holding company for a savings bank, one of our primary market risks is interest rate risk. Interest rate risk is the sensitivity of net interest income to variations in interest rates over a specified time period. The sensitivity results from differences in the time periods in which interest rate sensitive assets and liabilities mature or re-price. We attempt to control interest rate risk by matching, within acceptable limits, the re-pricing periods of assets and liabilities. We have attempted to limit our exposure to interest sensitivity by increasing core deposits, enticing customers to extend certificates of deposit maturities, borrowing funds with fixed-rates and longer maturities and by shortening the maturities of our assets by emphasizing the origination of more short-term fixed rate loans and adjustable rate loans. We also have the ability to sell a portion of the long-term, fixed-rate mortgage loans that we originate. In addition, we purchase shorter term or adjustable-rate investment securities and mortgage-backed securities.

We have an Asset/Liability Committee consisting of members of management which meets monthly to review market interest rates, economic conditions, the pricing of interest-earning assets and interest-bearing liabilities and the balance sheet structure. On a quarterly basis, this Committee also reviews the interest rate risk position and cash flow projections.

The Board of Directors has a Risk Management Committee which meets quarterly and reviews interest rate risk and trends, our interest sensitivity position, the liquidity position and the market risk inherent in the investment portfolio.

In an effort to assess interest rate risk and market risk, we utilize a simulation model to determine the effect of immediate incremental increases and decreases in interest rates on net income and the market value of equity. Certain assumptions are made regarding loan prepayments and decay rates of savings and interest-bearing demand accounts. Because it is difficult to accurately project the market reaction of depositors and borrowers, the effect of actual changes in interest rates on these assumptions may differ from simulated results. We have established the following guidelines for assessing interest rate risk:

Net interest income simulation. Given a parallel shift of 100 basis points (“bps”), 200 bps and 300 bps in interest rates, the estimated net income may not decrease by more than 5%, 10% and 15%, respectively, within a one-year period.

Net income simulation. Given a parallel shift of 100 bps, 200 bps and 300 bps in interest rates, the estimated net income may not decrease by more than 10%, 20% and 30%, respectively, within a one-year period.

Market value of equity simulation. The market value of equity is the present value of assets and liabilities. Given a parallel shift of 100 bps, 200 bps and 300 bps in interest rates, the market value of equity may not decrease by more than 15%, 30% and 35%, respectively, from the computed economic value at current interest rate levels.

The following table illustrates the simulated impact of a 100 bps, 200 bps or 300 bps upward or a 100 bps, 200 bps or 300 bps downward movement in interest rates on net income, return on average equity, earnings per share and market value of equity. This analysis was prepared assuming that interest-earning asset and interest-bearing liability levels at September 30, 2023 remain constant. The impact of the rate movements was computed by simulating the effect of an immediate and sustained shift in interest rates over a twelve-month period from September 30, 2023 levels.

	Increase									Decrease
Parallel shift in interest rates over the next 12 months	100 bps			200 bps			300 bps			100 bps			200 bps			300 bps
Projected percentage increase/(decrease) in net interest income	(0.1)		%	(1.3)		%	(3.8)		%	(0.7		%)	(5.7		%)	(10.8		%)
Projected percentage increase/(decrease) in net income	(0.2)		%	(2.6)		%	(7.5)		%	(1.7		%)	(12.2		%)	(23.2		%)
Projected increase/(decrease) in return on average equity	(0.1)		%	(2.4)		%	(7.1)		%	(1.5		%)	(11.6		%)	(22.2		%)
Projected increase/(decrease) in earnings per share	$	(0.01)		$	(0.04)		$	(0.10)		$	(0.03)		$	(0.16)		$	(0.30)
Projected percentage increase/(decrease) in market value of equity	(8.8		%)	(19.0		%)	(33.3		%)	10.4		%	18.2		%	25.7		%

The figures included in the table above represent projections that were computed based upon certain assumptions including prepayment rates and decay rates. These assumptions are inherently uncertain and, as a result, cannot precisely predict the impact of changes in interest rates. Actual results may differ significantly due to timing, magnitude and frequency of interest rate changes and changes in market conditions, and actions that may be taken by management in response to interest rate changes.

59

Item 4.        CONTROLS AND PROCEDURES

Under the supervision of and with the participation of management, including the Principal Executive Officer and Principal Financial Officer, we evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report (the “Evaluation Date”). Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded that, as of the Evaluation Date, these disclosure controls and procedures were effective.

There were no changes in the internal controls over financial reporting during the period covered by this report or in other factors that have materially affected, or are reasonably likely to materially affect the internal controls over financial reporting.

PART II.    OTHER INFORMATION

Item 1.        LEGAL PROCEEDINGS

We are subject to a number of asserted and unasserted claims encountered in the normal course of business. We believe that any additional liability, other than that which has already been accrued, that may result from such potential litigation will not have a material adverse effect on the financial statements. However, we cannot presently determine whether or not any claims against us will have a material adverse effect on our results of operations in any future reporting period. Refer to Note 11.

Item 1A.    RISK FACTORS

Except as reported in Quarterly Reports on Form 10-Q we have filed during the year ended December 31, 2023, there have been no material updates or additions to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission. Additional risks not presently known to us, or that we currently deem immaterial, may also adversely affect our business, financial condition or results of operations.

60

Item 2.    UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

a)    Not applicable.

b)    Not applicable.

c)    On December 13, 2012, the Board of Directors approved a program that authorizes the repurchase of approximately 5,000,000 shares of common stock. This program does not have an expiration date. During the quarter ended September 30, 2023, there were no shares of common stock repurchased and there are a maximum of 2,261,130 remaining shares that can be purchased under the current repurchase program.

Item 3.        DEFAULTS UPON SENIOR SECURITIES

Not applicable.

Item 4.        MINE SAFETY DISCLOSURES

Not applicable.

Item 5.        OTHER INFORMATION

During the three months ended September 30, 2023, no directors or executive officers of the Company adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or any “Rule 10b5-1 trading arrangement.”

61

Item 6.        EXHIBITS

31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-15 or 15d-15 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-15 or 15d-15 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
104	The cover page of this Quarterly Report on Form 10-Q, formatted in inline XBRL.

62

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed by the undersigned thereunto duly authorized.

NORTHWEST BANCSHARES, INC.
(Registrant)
Date:	November 3, 2023	By:	/s/ Louis J. Torchio
			Louis J. Torchio
			President and Chief Executive Officer
			(Duly Authorized Officer)
Date:	November 3, 2023	By:	/s/ Jeffrey J. Maddigan
			Jeffrey J. Maddigan
			Executive Vice President, Finance, Accounting and Corporate Treasurer
			(Principal Accounting Officer)

63

EX-31.1

Exhibit 31.1

Certification

I, Louis J. Torchio, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Northwest Bancshares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 3, 2023	/s/ Louis J. Torchio
Date	Louis J. Torchio
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification

I, William W. Harvey, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Northwest Bancshares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 3, 2023	/s/ William W. Harvey, Jr.
Date	William W. Harvey, Jr.
	Senior Executive Vice President, Chief Operating Officer and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification by the Chief Executive Officer and Chief Financial Officer

The undersigned officers of Northwest Bancshares, Inc. (the “Company”) hereby certify that, to the best of their knowledge:

1. The Company’s quarterly report on Form 10-Q for the period ended September 30, 2023 (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 3, 2023	/s/ Louis J. Torchio
Date	Louis J. Torchio
	President and Chief Executive Officer
November 3, 2023	/s/ William W. Harvey, Jr.
Date	William W. Harvey, Jr.
	Senior Executive Vice President, Chief Operating Officer and Chief Financial Officer

The purpose of this statement is solely to comply with Title 18, Chapter 63, Section 1350 of the United States Code, as amended by Section 906 of the Sarbanes-Oxley Act of 2002.

A signed original of this written statement required by Section 906 has been provided to Northwest Bancshares, Inc. and will be retained by Northwest Bancshares, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-34582
Entity Registrant Name	NORTHWEST BANCSHARES, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	27-0950358
Entity Address, Address Line One	3 Easton Oval
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43219
City Area Code	814
Local Phone Number	726-2140
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.01 Par Value
Trading Symbol	NWBI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		127,104,458
Entity Central Index Key	0001471265
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 161,995	$ 139,365
Marketable securities available-for-sale (amortized cost of $1,262,080 and $1,431,728, respectively)	1,010,076	1,218,108
Marketable securities held-to-maturity (fair value of $682,681 and $751,384, respectively)	830,106	881,249
Total cash and cash equivalents and marketable securities	2,002,177	2,238,722
Loans held-for-sale	10,592	9,913
Loans held for investment	11,299,681	10,910,539
Allowance for credit losses	(124,841)	(118,036)
Loans receivable, net	11,185,432	10,802,416
FHLB stock, at cost	40,404	40,143
Accrued interest receivable	42,624	35,528
Real estate owned, net	363	413
Premises and equipment, net	138,041	145,909
Bank-owned life insurance	250,502	255,062
Goodwill	380,997	380,997
Other intangible assets, net	6,013	8,560
Other assets	315,648	205,574
Total assets	14,362,201	14,113,324
Liabilities:
Noninterest-bearing demand deposits	2,774,291	2,993,243
Interest-bearing demand deposits	2,598,080	2,686,431
Money market deposit accounts	2,042,813	2,457,569
Savings deposits	2,116,360	2,275,020
Time deposits	2,258,338	1,052,285
Total deposits	11,789,882	11,464,548
Borrowed funds	604,587	681,166
Subordinated debt	114,102	113,840
Junior subordinated debentures	129,509	129,314
Advances by borrowers for taxes and insurance	27,653	47,613
Accrued interest payable	7,915	3,231
Other liabilities	190,122	182,126
Total liabilities	12,863,770	12,621,838
Shareholders’ equity:
Preferred stock, $0.01 par value: 50,000,000 authorized, no shares issued	0	0
Common stock, $0.01 par value: 500,000,000 shares authorized, 127,101,349 and 127,028,848 shares issued and outstanding, respectively	1,271	1,270
Additional paid-in capital	1,023,591	1,019,647
Retained earnings	671,092	641,727
Accumulated other comprehensive loss	(197,523)	(171,158)
Total shareholders’ equity	1,498,431	1,491,486
Total liabilities and shareholders’ equity	$ 14,362,201	$ 14,113,324

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Marketable securities available-for-sale, amortized cost	$ 1,262,080	$ 1,431,728
Securities held-to-maturity	$ 682,681	$ 751,384
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	127,101,349	127,028,848
Common stock, shares outstanding (in shares)	127,101,349	127,028,848

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CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest income:
Loans receivable	$ 140,667	$ 106,943	$ 397,136	$ 290,691
Mortgage-backed securities	8,072	8,683	24,935	22,201
Taxable investment securities	786	838	2,472	2,230
Tax-free investment securities	491	709	1,858	2,066
FHLB stock dividends	668	148	2,202	311
Interest-earning deposits	914	1,295	1,931	3,446
Total interest income	151,598	118,616	430,534	320,945
Interest expense:
Deposits	31,688	3,157	64,743	10,249
Borrowed funds	11,542	2,710	36,410	7,059
Total interest expense	43,230	5,867	101,153	17,308
Net interest income	108,368	112,749	329,381	303,637
Provision for credit losses - loans	3,983	7,689	14,863	8,837
Provision for credit losses - unfunded commitments	(2,981)	3,585	65	8,577
Net interest income after provision for credit losses	107,366	101,475	314,453	286,223
Noninterest income:
Loss on sale of investments	0	(2)	(8,306)	(7)
Gain on sale of mortgage servicing rights	0	0	8,305	0
Gain on sale of SBA loans	301	0	1,412	0
Service charges and fees	15,270	14,323	43,292	41,063
Trust and other financial services income	7,085	6,650	20,400	21,123
Gain on real estate owned, net	29	290	922	552
Income from bank-owned life insurance	4,561	1,475	7,134	5,466
Mortgage banking income	632	766	2,184	4,388
Other operating income	3,010	3,301	9,311	10,406
Total noninterest income	30,888	26,803	84,654	82,991
Noninterest expense:
Compensation and employee benefits	51,243	46,711	145,497	141,701
Premises and occupancy costs	7,052	7,171	22,102	22,248
Office operations	3,398	3,229	9,208	9,774
Collections expense	551	322	1,367	1,245
Processing expenses	14,672	13,416	43,670	38,911
Marketing expenses	2,379	2,147	8,127	6,322
Federal deposit insurance premiums	2,341	1,200	6,628	3,459
Professional services	3,002	3,363	11,564	9,269
Amortization of intangible assets	795	1,047	2,546	3,345
Real estate owned expense	141	61	405	170
Merger, asset disposition and restructuring expense	0	0	4,395	1,374
Other expenses	1,996	321	5,369	2,929
Total noninterest expense	87,570	78,988	260,878	240,747
Income before income taxes	50,684	49,290	138,229	128,467
Federal and state income taxes expense	11,464	11,986	32,286	29,450
Net income	$ 39,220	$ 37,304	$ 105,943	$ 99,017
Basic earnings per share (in dollars per share)	$ 0.31	$ 0.29	$ 0.83	$ 0.78
Diluted earnings per share (in dollars per share)	$ 0.31	$ 0.29	$ 0.83	$ 0.78

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 39,220	$ 37,304	$ 105,943	$ 99,017
Net unrealized holding (losses)/gains on marketable securities:
Unrealized holding losses, net of tax of $9,140, $14,705, $9,603 and $45,555, respectively	(29,715)	(48,387)	(34,417)	(153,124)
Reclassification adjustment for losses/(gains) included in net income, net of tax of $0, $0, ($1,731) and $0, respectively	0	0	5,636	(2)
Net unrealized holding losses on marketable securities	(29,715)	(48,387)	(28,781)	(153,126)
Change in fair value of interest rate swaps, net of tax of ($533), $0, ($1,041) and $0, respectively	1,825	0	3,562	0
Defined benefit plan:
Actuarial reclassification adjustments for prior period service costs and actuarial gains included in net income, net of tax of $152, $50, $456 and $151, respectively	(382)	(131)	(1,146)	(393)
Other comprehensive loss	(28,272)	(48,518)	(26,365)	(153,519)
Total comprehensive income/(loss)	$ 10,948	$ (11,214)	$ 79,578	$ (54,502)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Unrealized holding losses, tax	$ 9,140	$ 14,705	$ 9,603	$ 45,555
Reclassification adjustment for losses/(gains) included in net income, tax	0	0	(1,731)	0
Change in fair value of interest rate swaps, tax	(533)	0	(1,041)	0
Actuarial reclassification adjustments for prior period service costs and actuarial gains included in net income, tax	$ 152	$ 50	$ 456	$ 151

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common stock	Additional paid-in capital	Retained earnings	Retained earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated other comprehensive income/(loss)
Beginning balance (in shares) at Dec. 31, 2021			126,612,183
Beginning balance at Dec. 31, 2021	$ 1,583,571		$ 1,266	$ 1,010,405	$ 609,529		$ (37,629)
Comprehensive income:
Net income	99,017				99,017
Other comprehensive income (loss), net of tax	(153,519)						(153,519)
Total comprehensive income/(loss)	(54,502)				99,017		(153,519)
Exercise of stock options (in shares)			314,880
Exercise of stock options	3,721		$ 2	3,719
Stock-based compensation expense (in shares)			75,377
Stock-based compensation expense	3,067		$ 2	3,065
Stock-based compensation forfeited (in shares)			(80,451)
Stock-based compensation forfeited	(1)		$ (1)
Dividends paid	(76,070)				(76,070)
Ending balance (in shares) at Sep. 30, 2022			126,921,989
Ending balance at Sep. 30, 2022	1,459,786		$ 1,269	1,017,189	632,476		(191,148)
Beginning balance (in shares) at Dec. 31, 2021			126,612,183
Beginning balance at Dec. 31, 2021	$ 1,583,571		$ 1,266	1,010,405	609,529		(37,629)
Ending balance (in shares) at Dec. 31, 2022	127,028,848		127,028,848
Ending balance at Dec. 31, 2022	$ 1,491,486	$ (329)	$ 1,270	1,019,647	641,727	$ (329)	(171,158)
Comprehensive income:
Accounting Standards Update [Extensible List]	Accounting Standards Update 2022-02 [Member]
Beginning balance (in shares) at Jun. 30, 2022			126,881,766
Beginning balance at Jun. 30, 2022	$ 1,494,539		$ 1,269	1,015,349	620,551		(142,630)
Comprehensive income:
Net income	37,304				37,304
Other comprehensive income (loss), net of tax	(48,518)						(48,518)
Total comprehensive income/(loss)	(11,214)				37,304		(48,518)
Exercise of stock options (in shares)			73,472
Exercise of stock options	897			897
Stock-based compensation expense	944			944
Stock-based compensation forfeited (in shares)			(33,249)
Stock-based compensation forfeited	(1)			(1)
Dividends paid	(25,379)				(25,379)
Ending balance (in shares) at Sep. 30, 2022			126,921,989
Ending balance at Sep. 30, 2022	$ 1,459,786		$ 1,269	1,017,189	632,476		(191,148)
Beginning balance (in shares) at Dec. 31, 2022	127,028,848		127,028,848
Beginning balance at Dec. 31, 2022	$ 1,491,486	$ (329)	$ 1,270	1,019,647	641,727	$ (329)	(171,158)
Comprehensive income:
Net income	105,943				105,943
Other comprehensive income (loss), net of tax	(26,365)						(26,365)
Total comprehensive income/(loss)	79,578				105,943		(26,365)
Exercise of stock options (in shares)			53,207
Exercise of stock options	610		$ 1	609
Stock-based compensation expense (in shares)			75,554
Stock-based compensation expense	3,335		$ 1	3,334
Stock-based compensation forfeited (in shares)			(56,260)
Stock-based compensation forfeited	0		$ (1)	1
Dividends paid	$ (76,249)				(76,249)
Ending balance (in shares) at Sep. 30, 2023	127,101,349		127,101,349
Ending balance at Sep. 30, 2023	$ 1,498,431		$ 1,271	1,023,591	671,092		(197,523)
Beginning balance (in shares) at Jun. 30, 2023			127,088,963
Beginning balance at Jun. 30, 2023	1,511,501		$ 1,271	1,022,189	657,292		(169,251)
Comprehensive income:
Net income	39,220				39,220
Other comprehensive income (loss), net of tax	(28,272)						(28,272)
Total comprehensive income/(loss)	10,948				39,220		(28,272)
Exercise of stock options (in shares)			11,523
Exercise of stock options	112			112
Stock-based compensation expense (in shares)			1,779
Stock-based compensation expense	1,290			1,290
Stock-based compensation forfeited (in shares)			(916)
Dividends paid	$ (25,420)				(25,420)
Ending balance (in shares) at Sep. 30, 2023	127,101,349		127,101,349
Ending balance at Sep. 30, 2023	$ 1,498,431		$ 1,271	$ 1,023,591	$ 671,092		$ (197,523)

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Other comprehensive income (loss), tax	$ 8,759	$ 14,755	$ 7,287	$ 45,706
Dividends paid per share (in dollars per share)	$ 0.20	$ 0.20	$ 0.60	$ 0.60

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities:
Net income	$ 105,943	$ 99,017
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Provision for credit losses	14,928	8,837
Loss on sale of investments	8,306	0
Net loss/(gain) on sale of assets	743	(858)
Mortgage banking activity	5,342	(3,308)
Gain on sale of SBA loans	(1,390)	0
Gain on sale of mortgage servicing rights	(8,305)	0
Net depreciation, amortization and accretion	16,473	3,874
Increase in other assets	(114,158)	(31,790)
Increase in other liabilities	15,617	11,270
Net amortization on marketable securities	2,438	3,849
Noncash compensation expense related to stock benefit plans	3,335	3,066
Noncash write-down of real estate owned	37	44
Deferred income tax (benefit)/expense	(3,610)	1,928
Origination of loans held-for-sale	(137,789)	(317,117)
Proceeds from sale of loans held-for-sale	139,819	331,268
Net cash provided by operating activities	47,729	110,080
Investing activities:
Purchase of marketable securities held-to-maturity	0	(212,892)
Purchase of marketable securities available-for-sale	(23,502)	(102,178)
Proceeds from maturities and principal reductions of marketable securities held-to-maturity	50,517	80,765
Proceeds from maturities and principal reductions of marketable securities available-for-sale	81,803	197,310
Proceeds from sale of marketable securities available-for-sale	101,229	0
Proceeds from bank-owned life insurance	2,798	4,753
Loan originations	(2,928,360)	(3,464,471)
Proceeds from sale of mortgage servicing rights	13,118	0
Loan purchases	0	(371,121)
Proceeds from loan maturities and principal reductions	2,524,676	3,110,264
Net redemptions of FHLB stock	(261)	(5,097)
Proceeds from sale of real estate owned	1,343	1,469
Proceeds from sale of real estate owned for investment, net	0	229
Purchases of premises and equipment, net	(1,617)	(613)
Net cash used in investing activities	(178,256)	(761,582)
Financing activities:
Net increase/(decrease) in deposits	325,334	(422,773)
Repayments of long-term borrowings	0	(10,094)
Net (decrease)/increase in short-term borrowings	(76,578)	10,943
Increase in advances by borrowers for taxes and insurance	(19,960)	(14,935)
Cash dividends paid on common stock	(76,249)	(76,070)
Proceeds from stock options exercised	610	3,721
Net cash provided by/(used in) financing activities	153,157	(509,208)
Net increase/(decrease) in cash and cash equivalents	22,630	(1,160,710)
Cash and cash equivalents at beginning of period	139,365	1,279,259
Net increase/(decrease) in cash and cash equivalents	22,630	(1,160,710)
Cash and cash equivalents at end of period	161,995	118,549
Cash paid during the period for:
Interest on deposits and borrowings (including interest credited to deposit accounts of $56,021 and $9,812, respectively)	96,469	18,281
Income taxes	38,236	21,851
Non-cash activities:
Loan foreclosures and repossessions	2,844	3,423
Sale of real estate owned financed by the Company	$ 70	$ 175

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Cash Flows [Abstract]
Interest on deposits and borrowings, interest credited to deposit accounts	$ 56,021	$ 9,812

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Basis of Presentation and Informational Disclosures

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Informational Disclosures

Basis of Presentation and Informational Disclosures

Northwest Bancshares, Inc. (the “Company” or “NWBI”), a Maryland corporation headquartered in Columbus, Ohio, is a bank holding company regulated by the Board of Governors of the Federal Reserve System (“FRB”). The primary activity of the Company is the ownership of all of the issued and outstanding common stock of Northwest Bank, a Pennsylvania-chartered savings bank (“Northwest”). Northwest is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking. Northwest operates 142 community-banking offices throughout Pennsylvania, Western New York, Eastern Ohio, and Indiana.

The accompanying unaudited Consolidated Financial Statements include the accounts of the Company and its subsidiary, Northwest, and Northwest’s subsidiaries Northwest Capital Group, Inc., Great Northwest Corporation, and MutualFirst Interest Company, Inc. The unaudited Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or footnotes required for complete annual financial statements. In the opinion of management, all adjustments necessary for the fair presentation of the Company’s financial position and results of operations have been included. The Consolidated Financial Statements have been prepared using the accounting policies described in the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 updated, as required, for any new pronouncements or changes.

Certain items previously reported have been reclassified to conform to the current year’s reporting format. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Income and Consolidated Statements of Cash Flows for the quarter and nine months ended September 30, 2022, to reclassify the provision for credit losses - unfunded commitments, previously presented in other expense, to provide additional transparency to financial statement users.

The results of operations for the quarter ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or any other period.

Stock-Based Compensation

On March 15, 2023, the Company awarded employees 176,623 restricted stock units (“RSUs”) with a weighted average discounted grant date fair value of $11.28. The RSUs vest over a three-year period with the first vesting occurring one year from the grant date. The Company awarded directors 33,048 restricted stock awards (“RSAs”) with a grant date fair value of $12.80 which fully vest one-year from the grant date. Also, the Company awarded employees 176,623 performance share units (“PSUs”) with a discounted grant date fair value of $10.54. The number of PSUs earned will be based on attainment of certain performance criteria over a three-year period, with the actual number of shares issuable ranging between 0% and 150% of the number of PSUs granted. The PSUs have a three-year cliff vesting, from the date of grant, and any PSUs earned will be issued after the vesting period. As of September 30, 2023, we awarded discretionary grants of 178,483 RSUs with a weighted average grant date fair value of $10.87. These shares vest over a two or three year period with the first vesting occurring one year from the grant date. Stock-based compensation expense of $1.3 million and $944,000 for the quarters ended September 30, 2023 and 2022, respectively, was recognized in compensation expense relating to our stock benefit plans. At September 30, 2023, there was compensation expense of $401,000 to be recognized for awarded but unvested stock options, $2.5 million for unvested restricted common shares, $3.7 million to be recognized for awarded but unvested RSUs, $193,000 to be recognized for awarded but unvested RSAs, and $2.1 million to be recognized for awarded but unvested PSUs.

 Income Taxes-Uncertain Tax Positions

Accounting standards prescribe a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. A tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. We had $702,000 and $473,000 of liability for unrecognized tax benefits as of September 30, 2023 and December 31, 2022.

We recognize interest accrued related to: (1) unrecognized tax benefits in other expenses and (2) refund claims in other operating income. We recognize penalties (if any) in other expenses. We are subject to audit by the Internal Revenue Service and any state in which we conduct business for the tax periods ended December 31, 2022, 2021, 2020 and 2019.

Recently Adopted Accounting Standards

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure.” This ASU eliminates the accounting guidance for troubled debt restructurings (“TDRs”), while enhancing disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. This ASU also requires the disclosure of current period gross write-offs by year for origination for financing receivables. This guidance is effective for annual periods beginning after December 15, 2022, including interim periods within those years, with early adoption permitted. This ASU is applied prospectively to modifications and write-offs beginning on the first day of the fiscal year of adoption. An entity may elect to adopt a modified retrospective transition method on the recognition and measurement of the TDR guidance.

We adopted ASU 2022-02 using a modified retrospective transition approach related to the recognition and measurement of the TDR guidance and on a prospective basis for modification and write-offs. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required ASU 2022-02 disclosure for periods before the date of adoption (i.e. January 1, 2023). This change did not have a material effect on our consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides temporary optional guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance provides expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The amendments primarily include contract modifications and hedge accounting, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity. This guidance was effective as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date to Topic 848”. This guidance extends the guidance of ASU 2022-04 from December 31, 2022 to December 31, 2024. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform.” This ASU provides amendments, which are elective, and apply to all entities that have derivative instruments that use an interest rate for margining, discounting or contract price alignment of certain derivative instruments that are modified as a result of the reference rate reform. This ASU is effective upon issuance through December 31, 2024, and can be adopted at any time during this period.

During the current year, we completed our LIBOR transition plan and modified the Company’s loan and other financial instrument contracts that are impacted by the transition. The Company chose the Secured Overnight Financing Rate (“SOFR”) as its alternative replacement for LIBOR on both back-to-back swaps and variable rate loans. There was no material impact to the Company's financial statements as a result of the transition.

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Marketable Securities

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

Marketable Securities

The following table shows the portfolio of marketable securities available-for-sale at September 30, 2023 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by the U.S government and agencies:
Due after one year through five years	$	20,000	—	(1,750)	18,250
Due after ten years	50,166		—	(11,890)	38,276
Debt issued by government-sponsored enterprises:
Due after one year through five years	45,985		—	(7,502)	38,483
Due after five years through ten years	434		—	(11)	423
Municipal securities:
Due after one year through five years	954		3	(9)	948
Due after five years through ten years	21,976		—	(3,055)	18,921
Due after ten years	62,990		—	(14,788)	48,202
Corporate debt issues:
Due after five years through ten years	8,464		—	(1,000)	7,464
Residential mortgage-backed securities:
Fixed rate pass-through	213,849		—	(35,305)	178,544
Variable rate pass-through	7,501		2	(169)	7,334
Fixed rate agency CMOs	805,086		—	(175,985)	629,101
Variable rate agency CMOs	24,675		28	(573)	24,130
Total residential mortgage-backed securities	1,051,111		30	(212,032)	839,109
Total marketable securities available-for-sale	$	1,262,080	33	(252,037)	1,010,076

The following table shows the portfolio of marketable securities available-for-sale at December 31, 2022 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by the U.S. government and agencies:
Due after one year through five years	$	20,000	—	(1,799)	18,201
Due after ten years	53,152		—	(10,761)	42,391
Debt issued by government-sponsored enterprises:
Due after one year through five years	993		—	(49)	944
Due after five years through ten years	45,814		—	(7,557)	38,257
Municipal securities:
Due within one year	506		—	(1)	505
Due after one year through five years	986		21	(13)	994
Due after five years through ten years	36,332		—	(2,290)	34,042
Due after ten years	89,631		8	(13,414)	76,225
Corporate debt issues:
Due after five years through ten years	13,540		—	(562)	12,978
Residential mortgage-backed securities:
Fixed rate pass-through	227,122		35	(31,171)	195,986
Variable rate pass-through	8,837		10	(184)	8,663
Fixed rate agency CMOs	906,962		—	(145,284)	761,678
Variable rate agency CMOs	27,853		31	(640)	27,244
Total residential mortgage-backed securities	1,170,774		76	(177,279)	993,571
Total marketable securities available-for-sale	$	1,431,728	105	(213,725)	1,218,108

The following table shows the portfolio of marketable securities held-to-maturity at September 30, 2023 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by government-sponsored enterprises:
Due after one year through five years	$	49,471	—	(6,830)	42,641
Due after five years through ten years	74,986		—	(14,901)	60,085
Residential mortgage-backed securities:
Fixed rate pass-through	151,411		—	(27,070)	124,341
Variable rate pass-through	468		—	(8)	460
Fixed rate agency CMOs	553,241		—	(98,606)	454,635
Variable rate agency CMOs	529		—	(10)	519
Total residential mortgage-backed securities	705,649		—	(125,694)	579,955
Total marketable securities held-to-maturity	$	830,106	—	(147,425)	682,681

The following table shows the portfolio of marketable securities held-to-maturity at December 31, 2022 (in thousands): 

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by government-sponsored enterprises:
Due after one year through five years	$	29,478	—	(3,676)	25,802
Due after five years through ten years	94,977		—	(18,157)	76,820
Residential mortgage-backed securities:
Fixed rate pass-through	163,196		—	(24,684)	138,512
Variable rate pass-through	542		—	(12)	530
Fixed rate agency CMOs	592,527		—	(83,325)	509,202
Variable rate agency CMOs	529		—	(11)	518
Total residential mortgage-backed securities	756,794		—	(108,032)	648,762
Total marketable securities held-to-maturity	$	881,249	—	(129,865)	751,384

The following table shows the contractual maturity of our residential mortgage-backed securities available-for-sale at September 30, 2023 (in thousands):

	Amortized cost		Fair value
Residential mortgage-backed securities:
Due within one year	$	60	59
Due after one year through five years	25,302		23,185
Due after five years through ten years	27,837		25,424
Due after ten years	997,912		790,441
Total residential mortgage-backed securities	$	1,051,111	839,109

The following table shows the contractual maturity of our residential mortgage-backed securities held-to-maturity at September 30, 2023 (in thousands):

	Amortized cost		Fair value
Residential mortgage-backed securities:
Due after one year through five years	$	20,343	17,291
Due after five years through ten years	20,225		15,484
Due after ten years	665,081		547,180
Total residential mortgage-backed securities	$	705,649	579,955

The following table shows the fair value of and gross unrealized losses on available for sale investment securities and held to maturity investment securities, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2023 (in thousands):

	Less than 12 months			12 months or more		Total
	Fair  value		Unrealized loss	Fair  value	Unrealized loss	Fair  value	Unrealized loss
U.S. government-sponsored enterprises	$	423	(11)	197,736	(42,873)	198,159	(42,884)
Municipal securities	8,412		(526)	59,233	(17,326)	67,645	(17,852)
Corporate issues	—		—	7,464	(1,000)	7,464	(1,000)
Residential mortgage-backed securities - agency	25,649		(1,271)	1,390,685	(336,455)	1,416,334	(337,726)
Total	$	34,484	(1,808)	1,655,118	(397,654)	1,689,602	(399,462)

The following table shows the fair value of and gross unrealized losses on available for sale investment securities and held to maturity investment securities, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2022 (in thousands):

	Less than 12 months			12 months or more		Total
	Fair  value		Unrealized loss	Fair  value	Unrealized loss	Fair  value	Unrealized loss
U.S. government-sponsored enterprises	$	1,735	(82)	200,679	(41,917)	202,414	(41,999)
Corporate debt issues	12,979		(562)	—	—	12,979	(562)
Municipal securities	60,676		(4,047)	44,493	(11,671)	105,169	(15,718)
Residential mortgage-backed securities - agency	373,186		(22,796)	1,264,042	(262,515)	1,637,228	(285,311)
Total	$	448,576	(27,487)	1,509,214	(316,103)	1,957,790	(343,590)

The Company does not believe that the available-for-sale debt securities that were in an unrealized loss position as of September 30, 2023, which were comprised of 548 individual securities, represents a credit loss impairment. All of these securities were issued by U.S. government agencies, U.S. government-sponsored enterprises, local municipalities, or represent corporate debt. The securities issued by the U.S. government agencies or U.S. government-sponsored enterprises are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The securities issued by local municipalities and the corporate debt issues were all highly rated by major rating agencies and have no history of credit losses. The unrealized losses were primarily attributable to changes in the interest rate environment and not due to the credit quality of these investment securities. The Company does not have the intent to sell these investment securities and it is more likely than not that we will not be required to sell these securities before their anticipated recovery, which may be at maturity.

All of the Company’s held-to-maturity debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The decline in fair value of the held-to-maturity debt securities were primarily attributable to changes in the interest rate environment and not due to the credit quality of these investment securities, therefore, the Company did not record an allowance for credit losses for these securities as of September 30, 2023.

The following table presents the credit quality of our held-to-maturity securities, based on the latest information available as of September 30, 2023 (in thousands). The credit ratings are sourced from nationally recognized rating agencies, which include Moody’s and S&P, and they are presented based on asset type. All of our held-to-maturity securities were current in their payment of principal and interest as of September 30, 2023.

	AA+		Total
Held-to-maturity securities (at amortized cost):
Debt issued by the U.S. government-sponsored enterprises	$	124,457	124,457
Residential mortgage-backed securities	705,649		705,649
Total marketable securities held-to-maturity	$	830,106	830,106

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Loans Receivable

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Loans Receivable

Loans Receivable

The following table shows a summary of our loans receivable at amortized cost basis at September 30, 2023 and December 31, 2022 (in thousands): 

	September 30, 2023				December 31, 2022
	Originated (1)		Acquired (2)	Total	Originated (1)	Acquired (2)	Total
Personal Banking:
Residential mortgage loans (3)	$	3,322,136	150,627	3,472,763	3,327,879	170,720	3,498,599
Home equity loans	1,126,675		132,090	1,258,765	1,131,641	166,033	1,297,674
Vehicle loans	1,969,029		70,670	2,039,699	1,965,385	91,398	2,056,783
Consumer loans	109,319		6,101	115,420	104,284	7,588	111,872
Total Personal Banking	6,527,159		359,488	6,886,647	6,529,189	435,739	6,964,928
Commercial Banking:
Commercial real estate loans (4)	2,286,563		267,081	2,553,644	2,135,607	312,421	2,448,028
Commercial real estate loans - owner occupied	343,714		25,659	369,373	341,704	33,823	375,527
Commercial loans	1,463,159		37,450	1,500,609	1,082,914	49,055	1,131,969
Total Commercial Banking	4,093,436		330,190	4,423,626	3,560,225	395,299	3,955,524
Total loans receivable, gross	10,620,595		689,678	11,310,273	10,089,414	831,038	10,920,452
Allowance for credit losses	(116,596)		(8,245)	(124,841)	(107,379)	(10,657)	(118,036)
Total loans receivable, net (5)	$	10,503,999	681,433	11,185,432	9,982,035	820,381	10,802,416

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

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

(3) Includes $10.2 million and $9.9 million of loans held-for-sale at September 30, 2023 and December 31, 2022, respectively.

(4) Includes $435,000 and $0 of loans held-for-sale at September 30, 2023 and December 31, 2022, respectively.

(5) Includes $71.5 million and $76.1 million of net unearned income, unamortized premiums and discounts and deferred fees and costs at September 30, 2023 and December 31, 2022, respectively.

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended September 30, 2023 (in thousands):

	Balance as of September 30, 2023		Current period provision	Charge-offs	Recoveries	Balance as of June 30, 2023
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,090	(370)	(171)	75	17,556
Home equity loans	5,044		201	(320)	161	5,002
Vehicle loans	27,226		984	(1,524)	483	27,283
Consumer loans	1,202		1,436	(1,561)	317	1,010
Total Personal Banking	50,562		2,251	(3,576)	1,036	50,851
Commercial Banking:
Commercial real estate loans	48,582		(1,110)	(484)	120	50,056
Commercial real estate loans - owner occupied	3,479		(30)	—	11	3,498
Commercial loans	22,218		2,872	(1,286)	614	20,018
Total Commercial Banking	74,279		1,732	(1,770)	745	73,572
Total	$	124,841	3,983	(5,346)	1,781	124,423
Allowance for Credit Losses - off-balance sheet exposure
Personal Banking:
Residential mortgage loans	$	3	(1)	—	—	4
Home equity loans	67		3	—	—	64
Total Personal Banking	70		2	—	—	68
Commercial Banking:
Commercial real estate loans	4,797		(2,858)	—	—	7,655
Commercial real estate loans - owner occupied	140		(180)	—	—	320
Commercial loans	7,971		55	—	—	7,916
Total Commercial Banking	12,908		(2,983)	—	—	15,891
Total off-balance sheet exposure	$	12,978	(2,981)	—	—	15,959

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended September 30, 2022 (in thousands):

	Balance as of September 30, 2022		Current period provision	Charge-offs	Recoveries	Balance as of June 30, 2022
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,967	1,646	(166)	329	16,158
Home equity loans	5,448		341	(535)	410	5,232
Vehicle loans	17,004		1,576	(936)	626	15,738
Consumer loans	825		1,170	(1,405)	281	779
Total Personal Banking	41,244		4,733	(3,042)	1,646	37,907
Commercial Banking:
Commercial real estate loans	49,649		5,117	(1,329)	6,220	39,641
Commercial real estate loans - owner occupied	4,087		(34)	—	26	4,095
Commercial loans	14,839		(2,127)	(243)	497	16,712
Total Commercial Banking	68,575		2,956	(1,572)	6,743	60,448
Total	$	109,819	7,689	(4,614)	8,389	98,355
Allowance for Credit Losses - off-balance sheet exposure
Personal Banking:
Residential mortgage loans	$	4	(2)	—	—	6
Home equity loans	74		10	—	—	64
Total Personal Banking	78		8	—	—	70
Commercial Banking:
Commercial real estate loans	5,382		1,919	—	—	3,463
Commercial real estate loans - owner occupied	287		(41)	—	—	328
Commercial loans	5,288		1,699	—	—	3,589
Total Commercial Banking	10,957		3,577	—	—	7,380
Total off-balance sheet exposure	$	11,035	3,585	—	—	7,450

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the nine months ended September 30, 2023 (in thousands):

	Balance September 30, 2023		Current period provision	Charge-offs	Recoveries	ASU 2022-02 Adoption	Balance December 31, 2022
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,090	(2,047)	(923)	799	—	19,261
Home equity loans	5,044		(705)	(719)	566	—	5,902
Vehicle loans	27,226		7,267	(4,731)	1,631	—	23,059
Consumer loans	1,202		3,463	(3,860)	934	—	665
Total Personal Banking	50,562		7,978	(10,233)	3,930	—	48,887
Commercial Banking:
Commercial real estate loans	48,582		3,587	(1,556)	1,619	426	44,506
Commercial real estate loans - owner occupied	3,479		(515)	(68)	58	—	4,004
Commercial loans	22,218		3,813	(3,360)	1,126	—	20,639
Total Commercial Banking	74,279		6,885	(4,984)	2,803	426	69,149
Total	$	124,841	14,863	(15,217)	6,733	426	118,036
Allowance for Credit Losses - off-balance sheet exposure (1)
Personal Banking:
Residential mortgage loans	$	3	(1)	—	—	—	4
Home equity loans	67		(7)	—	—	—	74
Total Personal Banking	70		(8)	—	—	—	78
Commercial Banking:
Commercial real estate loans	4,797		(578)	—	—	—	5,375
Commercial real estate loans - owner occupied	140		(239)	—	—	—	379
Commercial loans	7,971		890	—	—	—	7,081
Total Commercial Banking	12,908		73	—	—	—	12,835
Total off-balance sheet exposure	$	12,978	65	—	—	—	12,913

(1) The table above has been revised to reflect the correct ending balance for total off-balance-sheet exposure at December 31, 2022. We evaluated the effect of the revision, both qualitatively and quantitatively, and concluded that the impact of the revision was not material.

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the nine months ended September 30, 2022 (in thousands):

	Balance as of September 30, 2022		Current period provision	Charge-offs	Recoveries	Balance as of December 31, 2021
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,967	11,331	(1,487)	750	7,373
Home equity loans	5,448		127	(1,237)	1,258	5,300
Vehicle loans	17,004		2,159	(2,517)	1,879	15,483
Consumer loans	825		479	(3,459)	921	2,884
Total Personal Banking	41,244		14,096	(8,700)	4,808	31,040
Commercial Banking:
Commercial real estate loans	49,649		(6,465)	(6,745)	8,718	54,141
Commercial real estate loans - owner occupied	4,087		167	—	37	3,883
Commercial loans	14,839		1,039	(1,253)	1,876	13,177
Total Commercial Banking	68,575		(5,259)	(7,998)	10,631	71,201
Total	$	109,819	8,837	(16,698)	15,439	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

During the nine months ended September 30, 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.

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at September 30, 2023 (in thousands):

	Total loans receivable		Allowance for credit losses	Nonaccrual loans	Loans 90 days past due and accruing
Personal Banking:
Residential mortgage loans	$	3,472,763	17,090	9,760	—
Home equity loans	1,258,765		5,044	3,431	133
Vehicle loans	2,039,699		27,226	3,817	57
Consumer loans	115,420		1,202	281	500
Total Personal Banking	6,886,647		50,562	17,289	690
Commercial Banking:
Commercial real estate loans	2,553,644		48,582	54,109	—
Commercial real estate loans - owner occupied	369,373		3,479	1,071	—
Commercial loans	1,500,609		22,218	4,185	38
Total Commercial Banking	4,423,626		74,279	59,365	38
Total	$	11,310,273	124,841	76,654	728

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2022, prior to the adoption of ASU 2022-02 (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.

We present the amortized cost of our loans on nonaccrual status including such loans with no allowance. The following table presents the amortized cost of our loans on nonaccrual status as of the beginning and end of the nine-month period ended September 30, 2023 (in thousands): 

			September 30, 2023
	Nonaccrual loans at January 1, 2023		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	$	7,574	9,760	—	9,760	—
Home equity loans	4,145		3,262	169	3,431	133
Vehicle loans	3,771		2,838	979	3,817	57
Consumer loans	256		281	—	281	500
Total Personal Banking	15,746		16,141	1,148	17,289	690
Commercial Banking:
Commercial real estate loans	62,239		21,838	32,271	54,109	—
Commercial real estate loans - owner occupied	624		1,071	—	1,071	—
Commercial loans	2,627		3,828	357	4,185	38
Total Commercial Banking	65,490		26,737	32,628	59,365	38
Total	$	81,236	42,878	33,776	76,654	728

During the three and nine months ended September 30, 2023, we did not recognize any interest income on nonaccrual loans.

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

			December 31, 2022
	Nonaccrual loans at January 1, 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 basis of collateral-dependent loans by class of loans as of September 30, 2023 (in thousands):

	Real estate		Total
Commercial Banking:
Commercial real estate loans	$	51,402	51,402
Commercial loans	160		160
Total Commercial Banking	51,562		51,562
Total	$	51,562	51,562

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

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, an other-than-insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged off against the allowance for credit losses.

In some cases, the Company provides multiple types of concessions to one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension, principal forgiveness, an other-than-insignificant payment delay, and/or an interest rate reduction.

The following table presents the amortized cost basis of loans as of September 30, 2023 that were both experiencing financial difficulty and modified during the periods indicated, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financial receivable is also presented below (dollars in thousands).

	For the quarter ended September 30, 2023					For the nine months ended September 30, 2023
	Term extension		Combination term extension and interest rate reduction	Total class of financing receivable		Term extension	Combination term extension and interest rate reduction	Total class of financing receivable
Personal Banking:
Residential mortgage loans	$	192	—	0.01	%	450	—	0.01	%
Home equity loans	122		85	0.02	%	283	85	0.03	%
Consumer loans	—		—	—	%	—	3	0.00	%
Total Personal Banking	314		85	0.01	%	733	88	0.01	%
Commercial Banking:
Commercial real estate loans	—		—	—	%	197	—	0.01	%
Commercial loans	15		—	0.00	%	663	—	0.04	%
Total Commercial Banking	15		—	—	%	860	—	0.02	%
Total	$	329	85	0.00	%	1,593	88	0.01	%

The Company has committed to lend additional amounts totaling $31,000 to the borrowers included in the previous table.

The following table presents the effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods indicated:

	For the quarter ended September 30, 2023			For the nine months ended September 30, 2023
	Weighted-average interest rate reduction		Weighted-average term extension in months	Weighted-average interest rate reduction		Weighted-average term extension in months
Personal Banking:
Residential mortgage loans	—	%	169	—		149
Home equity loans	5	%	112	5	%	96
Consumer loans	—	%	—	12	%	356
Total Personal Banking	5	%	140	17	%	126
Commercial Banking:
Commercial real estate loans	—	%	—	—		25
Commercial loans	—	%	23	—		9
Total Commercial Banking	—	%	23	—		13
Total loans	5	%	135	17	%	68

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that such loans have been modified since the adoption of ASU 2022-02 (in thousands):

	Current		30-59 days delinquent	60-89 days delinquent	90 days or greater delinquent
Personal Banking:
Residential mortgage loans	$	450	—	—	—
Home equity loans	368		—	—	—
Consumer loans	3		—	—	—
Total Personal Banking	821		—	—	—
Commercial Banking:
Commercial real estate loans	74		—	—	123
Commercial real estate loans - owner occupied	—		—	—	—
Commercial loans	—		15	—	648
Total Commercial Banking	74		15	—	771
Total loans	$	895	15	—	771

A modification is considered to be in default when the loan is 90 days or more past due. The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified since the adoption of ASU 2022-02 to borrowers experiencing financial difficulty (in thousands):

	Term extension
Commercial Banking:
Commercial real estate loans	$	123
Commercial loans	648
Total Commercial Banking	771
Total	$	771

The modifications to borrowers experiencing financial distress are included in their respective portfolio segment and the current loan balance and updated loan terms are run through their respective ACL models to arrive at the quantitative portion of the ACL. Subsequent performance of the loans will be measured by delinquency status and will be captured through our ACL models or our qualitative factor assessment, as deemed appropriate. If we no longer believe the loan demonstrates similar risks to their respective portfolio segment an individual assessment will be performed. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

The following tables provide a roll forward of troubled debt restructurings for the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):

	For the quarter ended September 30, 2022			For the nine months ended September 30, 2022
	Number of Contracts	Amount		Number of Contracts	Amount
Beginning TDR balance:	128	$	54,237	134	$	30,288
New TDRs	6	221		8	25,626
Re-modified TDRs	4	977		10	1,178
Net paydowns	—	(810)		—	(1,609)
Charge-offs:
Residential mortgage loans	—	—		1	(3)
Paid-off loans:
Residential mortgage loans	1	(35)		2	(236)
Home equity loans	1	(11)		3	(88)
Commercial real estate loans	1	(3,349)		4	(3,718)
Commercial real estate loans - owner occupied	1	(44)		1	(44)
Commercial loans	3	(3,459)		4	(3,466)
Ending TDR balance:	127	$	46,750	127	$	46,750
Accruing TDRs		$	16,344		$	16,344
Nonaccrual TDRs		30,406			30,406

The following table provides information related to TDRs (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):

	For the quarter ended September 30, 2022					For the nine months ended September 30, 2022
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Personal Banking:
Residential mortgage loans	2	$	147	144	15	2	$	147	144	15
Home equity loans	5	160		154	23	5	160		154	23
Total Personal Banking	7	307		298	38	7	307		298	38
Commercial Banking:
Commercial real estate loans	1	$	610	609	89	5	$	34,295	26,212	102
Commercial loans	2	332		291	20	6	3,856		294	20
Total Commercial Banking	3	942		900	109	11	38,151		26,506	122
Total	10	$	1,249	1,198	147	18	$	38,458	26,804	160

The following table provides information as of September 30, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended September 30, 2022, prior to the adoption of ASU 2022-02 (dollars in thousands):

	Type of modification
	Number of contracts	Maturity date		Total
Personal Banking:
Residential mortgage loans	2	$	144	144
Home equity loans	5	154		154
Total Personal Banking	7	298		298
Commercial Banking:
Commercial real estate loans	1	$	609	609
Commercial loans	2	291		291
Total Commercial Banking	3	900		900
Total	10	$	1,198	1,198

The following table provides information as of September 30, 2022 for TDRs (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the nine months ended September 30, 2022, prior to the adoption of ASU 2022-02 (dollars in thousands):

	Type of modification
	Number of contracts	Rate		Maturity date	Total
Personal Banking:
Residential mortgage loans	2	$	—	144	144
Home equity loans	5	—		154	154
Total Personal Banking	7	—		298	298
Commercial Banking:
Commercial real estate loans	5	$	4,166	22,046	26,212
Commercial loans	6	—		294	294
Total Commercial Banking	11	4,166		22,340	26,506
Total	18	$	4,166	22,638	26,804

No TDRs modified within the previous twelve months of September 30, 2022 subsequently defaulted, prior to the adoption of ASU 2022-02.

The following table provides information related to the amortized cost basis of loan payment delinquencies at September 30, 2023 (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	$	573	5,395	7,695	13,663	3,459,100	3,472,763	—
Home equity loans	4,707		1,341	2,206	8,254	1,250,511	1,258,765	133
Vehicle loans	9,122		2,412	2,274	13,808	2,025,891	2,039,699	57
Consumer loans	752		295	746	1,793	113,627	115,420	500
Total Personal Banking	15,154		9,443	12,921	37,518	6,849,129	6,886,647	690
Commercial Banking:
Commercial real estate loans	3,411		1,328	8,042	12,781	2,540,863	2,553,644	—
Commercial real estate loans - owner occupied	—		260	374	634	368,739	369,373	—
Commercial loans	2,847		981	2,472	6,300	1,494,309	1,500,609	38
Total Commercial Banking	6,258		2,569	10,888	19,715	4,403,911	4,423,626	38
Total loans	$	21,412	12,012	23,809	57,233	11,253,040	11,310,273	728

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 originated loans	$	52,235	13,100	20,606	85,941	10,834,511	10,920,452	744

Credit Quality Indicators: For Commercial Banking 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 90 days or greater 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, or homogenous retail loans that are greater than 180 days past due from the required 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.

The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator and the current period charge-offs by year of origination for each portfolio segment as of September 30, 2023 (in thousands):

	YTD September 30, 2023		2022	2021	2020	2019	Prior	Revolving loans	Revolving loans converted to term loans	Total loans receivable
Personal Banking:
Residential mortgage loans
Pass	$	159,472	673,235	803,613	516,270	249,797	1,056,864	—	—	3,459,251
Substandard	—		1,033	260	872	336	11,011	—	—	13,512
Total residential mortgage loans	159,472		674,268	803,873	517,142	250,133	1,067,875	—	—	3,472,763
Residential mortgage current period charge-offs	—		—	(5)	(130)	—	(788)	—	—	(923)
Home equity loans
Pass	65,795		104,272	110,823	153,431	98,062	210,273	469,459	42,870	1,254,985
Substandard	—		—	—	—	149	1,783	1,050	798	3,780
Total home equity loans	65,795		104,272	110,823	153,431	98,211	212,056	470,509	43,668	1,258,765
Home equity current period charge-offs	—		(53)	(46)	—	(48)	(257)	(142)	(173)	(719)
Vehicle loans
Pass	541,270		746,225	444,934	153,264	81,931	68,201	—	—	2,035,825
Substandard	320		901	1,386	247	564	456	—	—	3,874
Total vehicle loans	541,590		747,126	446,320	153,511	82,495	68,657	—	—	2,039,699
Vehicle current period charge-offs	(324)		(1,385)	(1,425)	(416)	(497)	(684)	—	—	(4,731)
Consumer loans
Pass	20,061		13,137	6,361	2,485	1,727	6,201	63,801	866	114,639
Substandard	45		57	31	8	14	1	506	119	781
Total consumer loans	20,106		13,194	6,392	2,493	1,741	6,202	64,307	985	115,420
Consumer loan current period charge-offs	(2,055)		(340)	(271)	(116)	(150)	(766)	(149)	(13)	(3,860)
Total Personal Banking	786,963		1,538,860	1,367,408	826,577	432,580	1,354,790	534,816	44,653	6,886,647
Business Banking:
Commercial real estate loans
Pass	127,229		437,503	356,152	330,522	225,478	776,377	23,845	25,345	2,302,451
Special mention	—		7,451	26,749	21,732	5,615	34,909	350	—	96,806
Substandard	—		174	1,056	8,108	48,592	95,825	514	118	154,387
Total commercial real estate loans	127,229		445,128	383,957	360,362	279,685	907,111	24,709	25,463	2,553,644
Commercial real estate current period charge-offs	—		—	(492)	—	(51)	(1,013)	—	—	(1,556)
Commercial real estate loans - owner occupied
Pass	17,830		50,716	48,567	14,845	44,834	148,778	2,237	2,214	330,021
Special mention	—		17,631	—	1,690	—	7,808	—	—	27,129
Substandard	—		—	122	1,344	4,736	5,308	—	713	12,223
Total commercial real estate loans - owner occupied	17,830		68,347	48,689	17,879	49,570	161,894	2,237	2,927	369,373
Commercial real estate - owner occupied current period charge-offs	—		—	—	—	—	(68)	—	—	(68)
Commercial loans
Pass	315,190		455,098	77,266	28,754	37,787	56,731	501,722	4,285	1,476,833
Special mention	542		315	58	369	316	68	2,022	—	3,690
Substandard	—		2,496	577	495	2,503	1,025	11,730	1,260	20,086
Total commercial loans	315,732		457,909	77,901	29,618	40,606	57,824	515,474	5,545	1,500,609
Commercial loans current period charge-offs	—		(1,526)	(517)	(430)	(110)	(715)	(60)	(2)	(3,360)
Total Business Banking	460,791		971,384	510,547	407,859	369,861	1,126,829	542,420	33,935	4,423,626
Total loans	$	1,247,754	2,510,244	1,877,955	1,234,436	802,441	2,481,619	1,077,236	78,588	11,310,273

For the nine months ended September 30, 2023, $13.7 million of revolving loans were converted to term loans.

The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator for each portfolio segment 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 - 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 - owner occupied loans	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.

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Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):

	September 30, 2023		December 31, 2022
Amortizable intangible assets:
Core deposit intangibles - gross	$	74,899	74,899
Less: accumulated amortization	(68,886)		(66,367)
Core deposit intangibles - net	$	6,013	8,532
Customer and Contract intangible assets - gross	$	12,775	12,775
Less: accumulated amortization	(12,775)		(12,747)
Customer and Contract intangible assets - net	—		28
Total intangible assets - net	$	6,013	8,560

The following table shows the actual aggregate amortization expense for the quarters ended September 30, 2023 and 2022, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):

For the quarter ended September 30, 2023	$	795
For the quarter ended September 30, 2022	1,047
For the nine months ended September 30, 2023	2,546
For the nine months ended September 30, 2022	3,345
For the year ending December 31, 2023	3,270
For the year ending December 31, 2024	2,452
For the year ending December 31, 2025	1,662
For the year ending December 31, 2026	871
For the year ending December 31, 2027	305

The following table provides information for the changes in the carrying amount of goodwill (in thousands):

	Total
Balance at December 31, 2022	$	380,997
Balance at September 30, 2023	$	380,997

We performed our annual goodwill impairment test as of June 30, 2023 in accordance with ASC 350 and concluded that goodwill was not impaired.

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Borrowed Funds

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Borrowed Funds

Borrowed Funds

(a)    Borrowings

Borrowed funds at September 30, 2023 and December 31, 2022 are presented in the following table:

	September 30, 2023				December 31, 2022
	Amount		Average rate		Amount		Average rate
Term notes payable to the FHLB of Pittsburgh, due within one year	$	375,400	5.65	%	$	500,000	4.55	%
Notes payable to the FHLB of Pittsburgh, due within one year	119,000		5.68	%	51,300		4.45	%
Collateralized borrowings, due within one year	48,587		1.52	%	105,766		0.27	%
Collateral received, due within one year	61,600		5.16	%	24,100		4.17	%
Total borrowed funds	$	604,587			$	681,166

Borrowings from the Federal Home Loan Bank (“FHLB”) of Pittsburgh, if any, are secured by our residential first mortgage and other qualifying loans. At September 30, 2023, the carrying value of these loans was $6.049 billion. Certain of these borrowings are subject to restrictions or penalties in the event of prepayment.

The revolving line of credit with the FHLB of Pittsburgh carries a commitment of $250.0 million. The rate is adjusted daily by the FHLB of Pittsburgh, and any borrowings on this line may be repaid at any time without penalty. At September 30, 2023 and December 31, 2022, the balance of the revolving line of credit was $119.0 million and $51.3 million, respectively.

At September 30, 2023 and December 31, 2022, collateralized borrowings due within one year were $48.6 million and $105.8 million, respectively. These borrowings are collateralized by cash or various securities held in safekeeping by the FHLB. At September 30, 2023, the carrying value of the cash and securities used as collateral was $89.3 million.

At September 30, 2023 and December 31, 2022, collateral received was $61.6 million and $24.1 million, respectively. This represents collateral posted to us from our derivative counterparties.

At September 30, 2023 and December 31, 2022, term notes payable to the FHLB of Pittsburgh due within one year were $375.4 million and $500.0 million, respectively. The September 30, 2023 total is made up of ten advances: 400,000 at 5.72% maturing October 2, 2023; $100.0 million at 5.65% maturing October 6, 2023; $100.0 million at 5.65% maturing October 13, 2023; $25.0 million at 5.63% maturing October 26, 2023; $25.0 million at 5.66% maturing October 31, 2023; $25.0 million at 5.63% maturing November 9, 2023; $25.0 million at 5.65% maturing November 13, 2023; $25.0 million at 5.62% maturing November 14, 2023; $25.0 million at 5.63% maturing November 21, 2023; and $25.0 million at 5.65% maturing November 30, 2023.

On September 9, 2020, the Company issued $125.0 million of 4.00% fixed-to-floating rate subordinated notes with a maturity date of September 15, 2030. The subordinated notes, which qualify as Tier 2 capital, bear interest at an annual rate of 4.00%, payable semi-annually in arrears commencing on March 15, 2021, and a floating rate of interest equivalent to the 3-month Secured Overnight Financing Rate (“SOFR”) plus 3.89% payable quarterly in arrears commencing on December 15, 2025. During the year-ended December 31, 2022 the Company repurchased $10.2 million of subordinated notes leaving $114.8 million of subordinated notes outstanding. The subordinated debt issuance costs of approximately $1.8 million are being amortized over five years on a straight-line basis into interest expense. At September 30, 2023 and December 31, 2022, subordinated debentures, net of issuance costs, were $114.1 million and $113.8 million, respectively.

(b)    Trust Preferred Securities

The Company has seven statutory business trusts: Northwest Bancorp Capital Trust III, a Delaware statutory business trust, Northwest Bancorp Statutory Trust IV, a Connecticut statutory business trust, LNB Trust II, a Delaware statutory business trust, Union National Capital Trust I (“UNCT I”), a Delaware statutory business trust, Union National Capital Trust II (“UNCT II”), a Delaware statutory business trust, MFBC Statutory Trust I, a Delaware statutory trust, and Universal Preferred Trust, a Delaware statutory trust (the “Trusts”). The Trusts exist solely to issue preferred securities to third parties for cash, issue common securities to the Company in exchange for capitalization of the Trusts, invest the proceeds from the sale of trust securities in an equivalent amount of debentures of the Company, and engage in other activities that are incidental to those previously listed. 

The Trusts have invested the proceeds of the offerings in junior subordinated deferrable interest debentures issued by the Company. The structure of these debentures mirrors the structure of the trust-preferred securities. These subordinated debentures are the sole assets of the Trusts. As the shareholders of the trust preferred securities are the primary beneficiaries of the Trusts, the Trusts are not consolidated in our financial statements.

The following table sets forth a summary of the cumulative trust preferred securities and the junior subordinated debt held by the Trust as of the date listed (dollars in thousands).

	Maturity date	Interest rate	Capital debt securities		September 30, 2023		December 31, 2022
Northwest Bancorp Capital Trust III	December 30, 2035	3-month SOFR plus 1.38%	$	50,000	$	51,547	51,547
Northwest Bancorp Statutory Trust IV	December 15, 2035	3-month SOFR plus 1.38%	50,000		51,547		51,547
LNB Trust II	June 15, 2037	3-month SOFR plus 1.48%	7,875		8,119		8,119
Union National Capital Trust I (1)	January 23, 2034	3-month SOFR plus 2.85%	8,000		7,993		7,975
Union National Capital Trust II (1)	November 23, 2034	3-month SOFR plus 2.00%	3,000		2,789		2,768
MFBC Statutory Trust I (1)	September 15, 2035	3-month SOFR plus 1.70%	5,000		3,762		3,684
Universal Preferred Trust (1)	October 7, 2035	3-month SOFR plus 1.69%	5,000		3,752		3,674
					$	129,509	129,314

(1) Net of discounts due to the fair value adjustment made at the time of acquisition.

Cash distributions on the trust securities are made on a quarterly basis to the extent interest on the debentures is received by the Trusts. We have the right to defer payment of interest on the subordinated debentures at any time, or from time-to-time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust securities also are deferred. To date there have been no interest deferrals. Interest on the subordinated debentures and distributions on the trust securities is cumulative. Our obligation constitutes a full, irrevocable, and unconditional guarantee on a subordinated basis of the obligations of the trust under the preferred securities.

The Trusts must redeem the preferred securities when the debentures are paid at maturity or upon an earlier redemption of the debentures to the extent the debentures are redeemed. All or part of the debentures may be redeemed at any time. Also, the debentures may be redeemed at any time if existing laws or regulations, or the interpretation or application of these laws or regulations, change causing:

•the interest on the debentures to no longer be deductible by the Company for federal income tax purposes;

•the trusts to become subject to federal income tax or to certain other taxes or governmental charges;

•the trusts to register as an investment company; or

•the preferred securities to no longer qualify as Tier I capital. 

We may, at any time, dissolve any of the Trusts and distribute the debentures to the trust security holders, subject to receipt of any required regulatory approvals.

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Guarantees

9 Months Ended

Sep. 30, 2023

Guarantees [Abstract]

Guarantees

Guarantees

We issue standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued by the Company 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 loan underwriting procedures. Collateral may be obtained based on management’s credit assessment of the customer. At September 30, 2023, the maximum potential amount of future payments we could be required to make under these non-recourse standby letters of credit was $45.9 million, of which $28.7 million is fully collateralized. At September 30, 2023, we had a liability which represents deferred income of $1.0 million related to the standby letters of credit.

In addition, we maintain a $5.0 million unsecured line of credit with a correspondent bank for private label credit card facilities for certain existing commercial clients of the Bank, of which $3.4 million in notional value of credit cards have been issued. These issued credit cards had an outstanding balance of $578,000 at September 30, 2023. 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 correspondent bank and initiate collection from our customer as part of the existing credit facility of that customer.

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Earnings Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period, without considering any dilutive items. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company.

The following table sets forth the computation of basic and diluted EPS (in thousands, except share data and per share amounts): 

	Quarter ended September 30,			Nine months ended September 30,
	2023		2022	2023	2022
Net income	$	39,220	37,304	105,943	99,017
Less: Dividends and undistributed earnings allocated to participating securities	99		166	267	441
Net income available to common shareholders	$	39,121	37,138	105,676	98,576
Weighted average common shares outstanding	126,767,507		126,320,706	126,629,786	126,082,217
Add: Participating shares outstanding	320,177		565,729	320,177	565,729
Total weighted average common shares and dilutive potential shares	127,087,684		126,886,435	126,949,963	126,647,946
Basic earnings per share	$	0.31	0.29	0.83	0.78
Diluted earnings per share	$	0.31	0.29	0.83	0.78

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Pension and Other Post-Retirement Benefits

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Pension and Other Post-Retirement Benefits

Pension and Other Post-Retirement Benefits

The following table sets forth the net periodic costs for the defined benefit pension plans and post-retirement healthcare plans for the periods indicated (in thousands):

	Quarter ended September 30,
	Pension benefits			Other post-retirement benefits
	2023		2022	2023	2022
Service cost	$	1,560	2,599	—	—
Interest cost	2,245		1,671	7	10
Expected return on plan assets	(3,479)		(3,864)	—	—
Amortization of prior service cost	(564)		(564)	—	—
Amortization of the net loss	20		381	10	2
Net periodic cost	$	(218)	223	17	12

	Nine months ended September 30,
	Pension benefits			Other post-retirement benefits
	2023		2022	2023	2022
Service cost	$	4,680	7,797	—	—
Interest cost	6,735		5,013	21	30
Expected return on plan assets	(10,437)		(11,592)	—	—
Amortization of prior service cost	(1,692)		(1,692)	—	—
Amortization of the net loss	60		1,143	30	6
Net periodic cost	$	(654)	669	51	36

Because of the current funding status, we do not anticipate a funding requirement during the year ending December 31, 2023.

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Disclosures About Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Disclosures About Fair Value of Financial Instruments

Disclosures About Fair Value of Financial Instruments

We are required to disclose fair value information about financial instruments whether or not recognized in the Consolidated Statement of Financial Condition. Fair value information of certain financial instruments and all nonfinancial instruments is not required to be disclosed. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

Financial assets and liabilities recognized or disclosed at fair value on a recurring basis and certain financial assets and liabilities on a non-recurring basis are accounted for using a three-level hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. This hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest level input that has a significant impact on fair value measurement is used.

Financial assets and liabilities are categorized based upon the following characteristics or inputs to the valuation techniques:

•    Level 1 - Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities.

•    Level 2 - Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing.

•     Level 3 - Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following:

◦Quotes from brokers or other external sources that are not considered binding;

◦Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; and

◦Quotes and other information from brokers or other external sources where the inputs are not deemed observable.

We are responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value. We perform due diligence to understand the inputs used or how the data was calculated or derived. We also corroborate the reasonableness of external inputs in the valuation process.

The carrying amounts reported in the Consolidated Statement of Financial Condition approximate fair value for the following financial instruments: cash and cash equivalents, marketable securities available-for-sale, residential mortgage loans held-for-sale, accrued interest receivable, interest rate lock commitments, forward commitments, interest rate swaps, savings and checking deposits, foreign exchange swaps, risk participation agreements, and accrued interest payable.

Marketable Securities

Where available, market values are based on quoted market prices, dealer quotes, and prices obtained from independent pricing services.

Debt Securities — available-for-sale - Generally, debt securities are valued using pricing for similar securities, recently executed transactions and other pricing models utilizing observable inputs. The valuation for most debt securities is classified as Level 2. Securities within Level 2 include corporate bonds, municipal bonds, mortgage-backed securities and U.S. government obligations. Certain debt securities which were AAA rated at purchase do not have an active market, and as such we have used an alternative method to determine the fair value of these securities. The fair value has been determined using a discounted cash flow model using market assumptions, which generally include cash flow, collateral and other market assumptions. As such, securities which otherwise would have been classified as Level 2 securities if an active market for those assets or similar assets existed are included herein as Level 3 assets.

Debt Securities — held-to-maturity - The fair value of debt securities held-to-maturity is determined in the same manner as debt securities available-for-sale.

Loans Receivable

Loans with comparable characteristics including collateral and re-pricing structures are segregated for valuation purposes. Each loan pool is separately valued utilizing a discounted cash flow analysis. Projected monthly cash flows are discounted to present value using a market rate for comparable loans, which is not considered an exit price. Characteristics of comparable loans include remaining term, coupon interest, and estimated prepayment speeds. Delinquent loans are separately evaluated given the impact delinquency has on the projected future cash flow of the loan including the approximate discount or market rate, which is not considered an exit price.

Loans Held-for-Sale

The estimated fair value of loans held-for-sale is based on market bids obtained from potential buyers.

FHLB Stock

Due to the restrictions placed on transferability of FHLB stock, it is not practical to determine the fair value. FHLB stock is recorded at cost.

Deposit Liabilities

The estimated fair value of deposits with no stated maturity, which includes demand deposits, money market, and other savings accounts, is the amount payable on demand. Although market premiums paid for depository institutions reflect an additional value for these low-cost deposits, adjusting fair value for any value expected to be derived from retaining those deposits for a future period of time or from the benefit that results from the ability to fund interest-earning assets with these deposit liabilities is prohibited. The fair value estimates of deposit liabilities do not include the benefit that results from the low-cost funding provided by these deposits compared to the cost of borrowing funds in the market. Fair values for time deposits are estimated using a discounted cash flow calculation that applies contractual cost currently being offered in the existing portfolio to current market rates being offered locally for deposits of similar remaining maturities. The valuation adjustment for the portfolio consists of the present value of the difference of these two cash flows, discounted at the assumed market rate of the corresponding maturity.

Borrowed Funds

Fixed rate advances are valued by comparing their contractual cost to the prevailing market cost. The carrying amount of repurchase agreements approximates their fair value.

Subordinated Debentures

The fair value of our subordinated debentures is calculated using the discounted cash flows at rates observable for other similarly traded liabilities.

Junior Subordinated Debentures

The fair value of junior subordinated debentures is calculated using the discounted cash flows at the prevailing rate of interest.

Interest Rate Lock Commitments and Forward Commitments

The fair value of interest rate lock commitments is based on the value of underlying loans held-for-sale which is based on quoted prices for similar loans in the secondary market. This value is then adjusted based on the probability of the loan closing (i.e., the “pull-through” amount, a significant unobservable input). The fair value of forward sale commitments is based on quoted prices from the secondary market based on the settlement date of the contracts.

Cash Flow Hedges, Interest Rate and Foreign Exchange Swap Agreements and Risk Participation Agreements

The fair value of interest rate swaps is based upon the present value of the expected future cash flows using the SOFR discount curve, the basis for the underlying interest rate. To price interest rate swaps, cash flows are first projected for each payment date using the fixed rate for the fixed side of the swap and the forward rates for the floating side of the swap. These swap cash flows are then discounted to time zero using SOFR zero-coupon interest rates. The sum of the present value of both legs is the fair market value of the interest rate swap. These valuations have been derived from our third party vendor’s proprietary models rather than actual market quotations. The proprietary models are based upon financial principles and assumptions that we believe to be reasonable. The fair value of the foreign exchange swap is derived from proprietary models rather than actual market quotations. The proprietary models are based upon financial principles and assumptions that we believe to be reasonable. Risk participation agreements are entered into when Northwest purchases a portion of a commercial loan that has an interest rate swap. Northwest assumes credit risk on its portion of the interest rate swap should the borrower fail to pay as agreed. The value of risk participation agreements is determined based on the value of the swap after considering the credit quality, probability of default, and loss given default of the borrower.

Off-Balance Sheet Financial Instruments

These financial instruments generally are not sold or traded, and estimated fair values are not readily available. However, the fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. Commitments to extend credit are generally short-term in nature and, if drawn upon, are issued under current market terms. At September 30, 2023 and December 31, 2022, there was no significant unrealized appreciation or depreciation on these financial instruments.

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the Consolidated Statement of Financial Condition at September 30, 2023 (in thousands): 

	Carrying amount		Estimated fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	161,995	161,995	161,995	—	—
Securities available-for-sale	1,010,076		1,010,076	—	1,010,076	—
Securities held-to-maturity	830,106		682,681	—	682,681	—
Loans receivable, net	11,174,840		10,031,968	—	—	10,031,968
Loans held-for-sale	10,592		10,592	—	—	10,592
Accrued interest receivable	42,624		42,624	42,624	—	—
Interest rate lock commitments	664		664	—	—	664
Foreign exchange swaps	203		203	—	203	—
Interest rate swaps designated as hedging instruments	4,603		4,603	—	4,603	—
Interest rate swaps not designated as hedging instruments	57,249		57,249	—	57,249	—
FHLB stock	40,404		40,404	—	—	—
Total financial assets	$	13,333,356	12,043,059	204,619	1,754,812	10,043,224
Financial liabilities:
Savings and checking deposits	$	9,531,544	9,531,544	9,531,544	—	—
Time deposits	2,258,338		2,250,768	—	—	2,250,768
Borrowed funds	604,587		617,832	617,832	—	—
Subordinated debt	114,102		102,456	—	102,456	—
Junior subordinated debentures	129,509		136,461	—	—	136,461
Forward commitments	23		23	—	23	—
Foreign exchange swaps	10		10	—	10	—
Interest rate swaps not designated as hedging instruments	57,275		57,275	—	57,275	—
Risk participation agreements	17		17	—	17	—
Accrued interest payable	7,915		7,915	7,915	—	—
Total financial liabilities	$	12,703,320	12,704,301	10,157,291	159,781	2,387,229

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the Consolidated Statement of Financial Condition at December 31, 2022 (in thousands): 

	Carrying amount		Estimated fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	139,365	139,365	139,365	—	—
Securities available-for-sale	1,218,108		1,218,108	—	1,218,108	—
Securities held-to-maturity	881,249		751,384	—	751,384	—
Loans receivable, net	10,792,503		9,910,852	—	—	9,910,852
Residential mortgage loans held-for-sale	9,913		9,913	—	—	9,913
Accrued interest receivable	35,528		35,528	35,528	—	—
Interest rate lock commitments	559		559	—	—	559
Forward commitments	128		128	—	128	—
Interest rate swaps not designated as hedging instruments	26,642		26,642	—	26,642	—
FHLB stock	40,143		40,143	—	—	—
Total financial assets	$	13,144,138	12,132,622	174,893	1,996,262	9,921,324
Financial liabilities:
Savings and checking accounts	$	10,412,263	10,412,263	10,412,263	—	—
Time deposits	1,052,285		1,059,790	—	—	1,059,790
Borrowed funds	681,166		680,996	680,996	—	—
Subordinated debt	113,840		102,554	—	102,554	—
Junior subordinated debentures	129,314		133,546	—	—	133,546
Foreign exchange swaps	23		23	—	23	—
Interest rate swaps not designated as hedging instruments	45,464		45,464	—	45,464	—
Risk participation agreements	18		18	—	18	—
Accrued interest payable	3,231		3,231	3,231	—	—
Total financial liabilities	$	12,437,604	12,437,885	11,096,490	148,059	1,193,336

Fair value estimates are made at a point-in-time, based on relevant market data and information about the instrument. The methods and assumptions detailed above were used in estimating the fair value of financial instruments at both September 30, 2023 and December 31, 2022.

The following table represents assets and liabilities measured at fair value on a recurring basis at September 30, 2023 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Debt securities:
U.S. government and agencies	$	—	56,526	—	56,526
Government-sponsored enterprises	—		38,906	—	38,906
States and political subdivisions	—		68,071	—	68,071
Corporate	—		7,464	—	7,464
Total debt securities	—		170,967	—	170,967
Residential mortgage-backed securities:
GNMA	—		17,073	—	17,073
FNMA	—		99,874	—	99,874
FHLMC	—		68,926	—	68,926
Non-agency	—		5	—	5
Collateralized mortgage obligations:
GNMA	—		318,652	—	318,652
FNMA	—		148,389	—	148,389
FHLMC	—		186,190	—	186,190
Total mortgage-backed securities	—		839,109	—	839,109
Interest rate lock commitments	—		—	664	664
Foreign exchange swaps	—		203	—	203
Interest rate swaps designated as hedging instruments	—		4,603	—	4,603
Interest rate swaps not designated as hedging instruments	—		57,249	—	57,249
Total assets	$	—	1,072,131	664	1,072,795
Forward commitments	$	—	23	—	23
Foreign exchange swaps	—		10	—	10
Interest rate swaps not designated as hedging instruments	—		57,275	—	57,275
Risk participation agreements	—		17	—	17
Total liabilities	$	—	57,325	—	57,325

The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2022 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Debt securities:
U.S. government and agencies	$	—	60,592	—	60,592
Government-sponsored enterprises	—		39,201	—	39,201
States and political subdivisions	—		111,766	—	111,766
Corporate	—		12,978	—	12,978
Total debt securities	—		224,537	—	224,537
Residential mortgage-backed securities:
GNMA	—		12,434	—	12,434
FNMA	—		117,218	—	117,218
FHLMC	—		74,991	—	74,991
Non-agency	—		6	—	6
Collateralized mortgage obligations:
GNMA	—		364,553	—	364,553
FNMA	—		185,588	—	185,588
FHLMC	—		238,781	—	238,781
Total mortgage-backed securities	—		993,571	—	993,571
Interest rate lock commitments	—		—	559	559
Forward commitments	—		128	—	128
Interest rate swaps not designated as hedging instruments	—		26,642	—	26,642
Total assets	$	—	1,244,878	559	1,245,437
Foreign exchange swaps	$	—	23	—	23
Interest rate swaps not designated as hedging instruments	—		45,464	—	45,464
Risk participation agreements	—		18	—	18
Total liabilities	$	—	45,505	—	45,505

The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis (in thousands):

	For the quarter ended September 30,			For the nine months ended September 30,
	2023		2022	2023	2022
Beginning balance,	$	761	1,520	559	1,684
Interest rate lock commitments:
Net activity	(97)		(457)	105	(621)
Ending balance	$	664	1,063	664	1,063

Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans held-for-sale, loans individually assessed, real estate owned, and mortgage servicing rights.

The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of September 30, 2023 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Loans individually assessed	$	—	—	13,467	13,467
Mortgage servicing rights	—		—	198	198
Real estate owned, net	—		—	363	363
Total assets	$	—	—	14,028	14,028

The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of December 31, 2022 (in thousands): 

	Level 1		Level 2	Level 3	Total assets  at fair value
Loans individually assessed	$	—	—	15,416	15,416
Mortgage servicing rights	—		—	95	95
Real estate owned, net	—		—	413	413
Total assets	$	—	—	15,924	15,924

Individually Assessed Loans - A loan is considered to be individually assessed as described in Note 1(f) of the Notes to the Consolidated Financial Statements in Item 8 of Part II of our 2022 Annual Report on Form 10-K. We classify loans individually assessed as nonrecurring Level 3.

Mortgage servicing rights - Mortgage servicing rights represent the value of servicing residential mortgage loans, when the mortgage loans have been sold into the secondary market and the associated servicing has been retained. The value is determined through a discounted cash flow analysis, which uses interest rates, prepayment speeds and delinquency rate assumptions as inputs. All of these assumptions require a significant degree of management judgment. Servicing rights and the related mortgage loans are segregated into categories or homogeneous pools based upon common characteristics. Adjustments are only made when the estimated discounted future cash flows are less than the carrying value, as determined by individual pool. As such, mortgage servicing rights are classified as nonrecurring Level 3.

Real Estate Owned - Real estate owned is comprised of property acquired through foreclosure or voluntarily conveyed by borrowers. These assets are recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal. Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or fair value, less estimated disposition costs. We classify real estate owned as nonrecurring Level 3. 

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at September 30, 2023 (in thousands): 

	Fair value		Valuation techniques	Significant unobservable inputs	Range  (weighted average)
Loans individually assessed	$	13,467	Appraisal value (1)	Estimated cost to sell	10.0%
Mortgage servicing rights	198		Discounted cash flow	Annual service cost	$90
				Prepayment rate	6.6% to 15.0% (9.9%)
				Expected life (months)	53.1 to 103.5 (75.8)
				Option adjusted spread	720 basis points
				Forward yield curve	5.44% to 5.60%
Real estate owned, net	363		Appraisal value (1)	Estimated cost to sell	15.0%
Loans held for sale	10,592		Quoted prices for similar loans in active markets adjusted by an expected pull-through rate	Estimated pull-through rate	100.0%

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

We are a party to derivative financial instruments in the normal course of business to manage our own exposure to fluctuations in interest rates and to meet the needs of our customers. The primary derivatives that we use are interest rate swaps and caps and foreign exchange contracts, which are entered into with counterparties that meet established credit standards. We believe that the credit risk inherent in all of our derivative contracts is minimal based on our credit standards and the netting and collateral provisions of the interest rate swap agreements.

Derivatives Designated as Hedging Instruments

As of September 30, 2023, the Company has entered into seven separate pay-fixed interest rate swaps in order to synthetically convert short-term three month FHLB advances to fixed-rate term funding with an aggregate value of $175 million with maturities ranging from three to five years. Our risk management objective and strategy for these interest rate swaps at such time was to reduce our exposure to variability in interest-related cash outflows attributable to changes in the USD-SOFR swap rate, the designated benchmark interest rate being hedged. Based upon our contemporaneous quantitative analysis at the inception of the interest rate swaps, we have determined these interest rate swaps qualify for hedge accounting in accordance with ASC 815, Derivatives and Hedging. Our cash flow hedges are recorded within other assets on the Consolidated Statement of Financial Condition at their estimated fair value.

As long as the hedge remains highly effective, the changes in the fair value of derivatives designated, and that qualify, as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. A hedging relationship that is determined to not be highly effective no longer qualifies for hedge accounting and any gain or loss is recognized immediately into earnings. Amount reclassified into earnings are included in interest expense in the Consolidated Statement of Income.

Derivatives Not Designated as Hedging Instruments

We act as an interest rate or foreign exchange swap counterparty for certain commercial borrowers in the normal course of servicing our customers, which are accounted for at fair value. We manage our exposure to such interest rate or foreign exchange swaps by entering into corresponding and offsetting interest rate swaps with third parties that mirror the terms of the swaps we have with the commercial borrowers. These positions (referred to as “customer swaps”) directly offset each other and our exposure is the fair value of the derivatives due to changes in credit risk of our commercial borrowers and third parties. Customer swaps are recorded within other assets or other liabilities on the consolidated statement of financial condition at their estimated fair value. Changes to the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the Consolidated Statement of Income.

We enter into interest rate lock commitments for residential mortgage loans which commit us to lend funds to a potential borrower at a specific interest rate within a specified period of time. Interest rate lock commitments that relate to the origination of mortgage loans that will be held-for-sale are considered derivative financial instruments under applicable accounting guidance. Interest rate lock commitments on loans held-for-sale are carried at fair value in other assets on the consolidated statement of financial condition. Northwest sells loans to the secondary market on a mandatory or best efforts basis. The loans sold on a mandatory basis commit us to deliver a specific principal amount of mortgage loans to an investor at a specified price, by a specified date, or the commitment must be paired off. These forward commitments entered into on a mandatory delivery basis meet the definition of a derivative financial instrument. All closed loans to be sold on a mandatory delivery basis are classified as held-for-sale on the Consolidated Statement of Financial Condition. Changes to the fair value of the interest rate lock commitments and the forward commitments are recorded in mortgage banking income in the Consolidated Statements of Income.

We enter into risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are a participant. The risk participation agreements provide credit protection to the financial institution should the borrower fail to perform on its interest rate derivative contract with the financial institution. These risk participation agreements are recorded within other liabilities on the Consolidated Statement of Financial Condition at their estimated fair value. Changes to the fair value of the the risk participation agreements are included in other operating income in the Consolidated Statement of Income.

The following table presents information regarding our derivative financial instruments for the periods indicated (in thousands):

	Asset derivatives			Liability derivatives
	Notional amount		Fair value	Notional amount	Fair value
At September 30, 2023
Derivatives designated as hedging instruments:
Interest rate swap agreements	$	175,000	4,603	—	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	673,255		57,249	673,255	57,275
Foreign exchange swap agreements	7,393		203	760	10
Interest rate lock commitments	35,272		664	—	—
Forward commitments	—		—	6,772	23
Risk participation agreements	—		—	102,385	17
Total Derivatives	$	890,920	62,719	783,172	57,325
At December 31, 2022
Derivatives not designated as hedging instruments:
Interest rate swap agreements	$	651,114	26,642	651,114	45,464
Foreign exchange swap agreements	—		—	2,328	23
Interest rate lock commitments	19,727		559	—	—
Forward commitments	4,909		128	—	—
Risk participation agreements	—		—	114,159	18
Total derivatives	$	675,750	27,329	767,601	45,505

The following table presents income or expense recognized on derivatives for the periods indicated (in thousands):

	For the quarter ended September 30,			For the nine months ended September 30,
	2023		2022	2023	2022
Hedging derivatives:
Decrease in interest expense	$	627	—	831	—
Non-hedging swap derivatives:
Increase/(decrease) in other income	$	203	93	(127)	207
(Decrease)/increase in mortgage banking income	$	(221)	809	(46)	1,131

The following table presents information regarding our derivative financial instruments designated as hedging for the quarter ended September 30, 2023 (in thousands):

	Notional amount		Effective rate		Estimated decrease to interest expense in the next twelve months		Maturity date	Remaining term (in months)
Interest rate products:
Issued May 11, 2023	$	25,000	3.52	%	$	(540)	5/11/2027	43
Issued May 12, 2023	25,000		3.54	%	(528)		5/12/2028	55
Issued May 19, 2023	25,000		3.84	%	(454)		11/19/2027	50
Issued May 31, 2023	25,000		4.08	%	(400)		11/30/2026	38
Issued July 26, 2023	25,000		4.24	%	(348)		7/26/2028	58
Issued July 31, 2023	25,000		4.36	%	(330)		1/31/2028	52
Issued August 9, 2023	25,000		4.32	%	(333)		8/9/2027	46
Total	$	175,000			$	(2,933)

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Legal Proceedings	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings We establish accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated. As of September 30, 2023, we do not anticipate that the aggregate ultimate liability arising out of any pending or threatened legal proceedings will be material to our Consolidated Financial Statements. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances. Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, any amounts accrued may not represent the ultimate loss to us from legal proceedings.

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Changes in Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Changes in Accumulated Other Comprehensive Income

Changes in Accumulated Other Comprehensive Income

The following tables show the changes in accumulated other comprehensive income by component for the periods indicated (in thousands): 

	For the quarter ended September 30, 2023
	Unrealized  losses on securities  available-for-sale		Change in  fair value  of interest  rate swaps	Change in  defined benefit  pension plans	Total
Balance as of June 30, 2023	$	(163,272)	1,737	(7,716)	(169,251)
Other comprehensive (loss)/income before reclassification adjustments (1) (2)	(29,715)		1,825	—	(27,890)
Amounts reclassified from accumulated other comprehensive income (3)	—		—	(382)	(382)
Net other comprehensive (loss)/income	(29,715)		1,825	(382)	(28,272)
Balance as of September 30, 2023	$	(192,987)	3,562	(8,098)	(197,523)

	For the quarter ended September 30, 2022
	Unrealized  losses on securities  available-for-sale		Change in  defined benefit  pension plans	Total
Balance as of June 30, 2022	$	(117,056)	(25,574)	(142,630)
Other comprehensive loss before reclassification adjustments (4)	(48,387)		—	(48,387)
Amounts reclassified from accumulated other comprehensive income (5)	—		(131)	(131)
Net other comprehensive loss	(48,387)		(131)	(48,518)
Balance as of September 30, 2022	$	(165,443)	(25,705)	(191,148)

(1)Consists of unrealized holding losses, net of tax of $9,140.

(2)Change in fair value of interest rate swaps, net of tax ($533).

(3)Consists of realized gains, net of tax of $152.

(4)Consists of unrealized holding losses, net of tax $14,705.

(5)Consists of realized gains, net of tax of $50.

	For the nine months ended September 30, 2023
	Unrealized  losses on securities  available-for-sale		Change in  fair value  of interest  rate swaps	Change in  defined benefit  pension plans	Total
Balance as of December 31, 2022	$	(164,206)	—	(6,952)	(171,158)
Other comprehensive (loss)/income before reclassification adjustments (1) (3)	(34,417)		3,562	—	(30,855)
Amounts reclassified from accumulated other comprehensive income (2) (4)	5,636		—	(1,146)	4,490
Net other comprehensive income/(loss)	(28,781)		3,562	(1,146)	(26,365)
Balance as of September 30, 2023	$	(192,987)	3,562	(8,098)	(197,523)

	For the nine months ended September 30, 2022
	Unrealized  losses  on securities  available-for-sale		Change in  defined benefit  pension plans	Total
Balance as of December 31, 2021	$	(12,317)	(25,312)	(37,629)
Other comprehensive loss before reclassification adjustments (5)	(153,124)		—	(153,124)
Amounts reclassified from accumulated other comprehensive income (6) (7)	(2)		(393)	(395)
Net other comprehensive loss	(153,126)		(393)	(153,519)
Balance as of September 30, 2022	$	(165,443)	(25,705)	(191,148)

(1)Consists of unrealized holding losses, net of tax of $9,603.

(2)Consists of realized losses, net of tax of ($1,731).

(3)Change in fair value of interest rate swaps, net of tax ($1,041).

(4)Consists of realized gains, net of tax of $456.

(5)Consists of unrealized holding losses, net of tax $45,555.

(6)Consists of realized losses, net of tax $0.

(7)Consists of realized gains, net of tax of $151.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (loss)	$ 39,220	$ 37,304	$ 105,943	$ 99,017

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Basis of Presentation and Informational Disclosures (Policies)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Northwest Bancshares, Inc. (the “Company” or “NWBI”), a Maryland corporation headquartered in Columbus, Ohio, is a bank holding company regulated by the Board of Governors of the Federal Reserve System (“FRB”). The primary activity of the Company is the ownership of all of the issued and outstanding common stock of Northwest Bank, a Pennsylvania-chartered savings bank (“Northwest”). Northwest is regulated by the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking. Northwest operates 142 community-banking offices throughout Pennsylvania, Western New York, Eastern Ohio, and Indiana.

The accompanying unaudited Consolidated Financial Statements include the accounts of the Company and its subsidiary, Northwest, and Northwest’s subsidiaries Northwest Capital Group, Inc., Great Northwest Corporation, and MutualFirst Interest Company, Inc. The unaudited Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or footnotes required for complete annual financial statements. In the opinion of management, all adjustments necessary for the fair presentation of the Company’s financial position and results of operations have been included. The Consolidated Financial Statements have been prepared using the accounting policies described in the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 updated, as required, for any new pronouncements or changes.

Reclassifications

Certain items previously reported have been reclassified to conform to the current year’s reporting format. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Income and Consolidated Statements of Cash Flows for the quarter and nine months ended September 30, 2022, to reclassify the provision for credit losses - unfunded commitments, previously presented in other expense, to provide additional transparency to financial statement users.

Income Taxes - Uncertain Tax Positions

Income Taxes-Uncertain Tax Positions

Accounting standards prescribe a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. A tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. We had $702,000 and $473,000 of liability for unrecognized tax benefits as of September 30, 2023 and December 31, 2022.

We recognize interest accrued related to: (1) unrecognized tax benefits in other expenses and (2) refund claims in other operating income. We recognize penalties (if any) in other expenses. We are subject to audit by the Internal Revenue Service and any state in which we conduct business for the tax periods ended December 31, 2022, 2021, 2020 and 2019.

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure.” This ASU eliminates the accounting guidance for troubled debt restructurings (“TDRs”), while enhancing disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. This ASU also requires the disclosure of current period gross write-offs by year for origination for financing receivables. This guidance is effective for annual periods beginning after December 15, 2022, including interim periods within those years, with early adoption permitted. This ASU is applied prospectively to modifications and write-offs beginning on the first day of the fiscal year of adoption. An entity may elect to adopt a modified retrospective transition method on the recognition and measurement of the TDR guidance.

We adopted ASU 2022-02 using a modified retrospective transition approach related to the recognition and measurement of the TDR guidance and on a prospective basis for modification and write-offs. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required ASU 2022-02 disclosure for periods before the date of adoption (i.e. January 1, 2023). This change did not have a material effect on our consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides temporary optional guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance provides expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The amendments primarily include contract modifications and hedge accounting, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity. This guidance was effective as of March 12, 2020 through December 31, 2022. In December 2022, the FASB issued ASU No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date to Topic 848”. This guidance extends the guidance of ASU 2022-04 from December 31, 2022 to December 31, 2024. In January 2021, the FASB issued ASU No. 2021-01, “Reference Rate Reform.” This ASU provides amendments, which are elective, and apply to all entities that have derivative instruments that use an interest rate for margining, discounting or contract price alignment of certain derivative instruments that are modified as a result of the reference rate reform. This ASU is effective upon issuance through December 31, 2024, and can be adopted at any time during this period.

During the current year, we completed our LIBOR transition plan and modified the Company’s loan and other financial instrument contracts that are impacted by the transition. The Company chose the Secured Overnight Financing Rate (“SOFR”) as its alternative replacement for LIBOR on both back-to-back swaps and variable rate loans. There was no material impact to the Company's financial statements as a result of the transition.

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Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of the portfolio of investment securities available-for-sale

The following table shows the portfolio of marketable securities available-for-sale at September 30, 2023 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by the U.S government and agencies:
Due after one year through five years	$	20,000	—	(1,750)	18,250
Due after ten years	50,166		—	(11,890)	38,276
Debt issued by government-sponsored enterprises:
Due after one year through five years	45,985		—	(7,502)	38,483
Due after five years through ten years	434		—	(11)	423
Municipal securities:
Due after one year through five years	954		3	(9)	948
Due after five years through ten years	21,976		—	(3,055)	18,921
Due after ten years	62,990		—	(14,788)	48,202
Corporate debt issues:
Due after five years through ten years	8,464		—	(1,000)	7,464
Residential mortgage-backed securities:
Fixed rate pass-through	213,849		—	(35,305)	178,544
Variable rate pass-through	7,501		2	(169)	7,334
Fixed rate agency CMOs	805,086		—	(175,985)	629,101
Variable rate agency CMOs	24,675		28	(573)	24,130
Total residential mortgage-backed securities	1,051,111		30	(212,032)	839,109
Total marketable securities available-for-sale	$	1,262,080	33	(252,037)	1,010,076

The following table shows the portfolio of marketable securities available-for-sale at December 31, 2022 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by the U.S. government and agencies:
Due after one year through five years	$	20,000	—	(1,799)	18,201
Due after ten years	53,152		—	(10,761)	42,391
Debt issued by government-sponsored enterprises:
Due after one year through five years	993		—	(49)	944
Due after five years through ten years	45,814		—	(7,557)	38,257
Municipal securities:
Due within one year	506		—	(1)	505
Due after one year through five years	986		21	(13)	994
Due after five years through ten years	36,332		—	(2,290)	34,042
Due after ten years	89,631		8	(13,414)	76,225
Corporate debt issues:
Due after five years through ten years	13,540		—	(562)	12,978
Residential mortgage-backed securities:
Fixed rate pass-through	227,122		35	(31,171)	195,986
Variable rate pass-through	8,837		10	(184)	8,663
Fixed rate agency CMOs	906,962		—	(145,284)	761,678
Variable rate agency CMOs	27,853		31	(640)	27,244
Total residential mortgage-backed securities	1,170,774		76	(177,279)	993,571
Total marketable securities available-for-sale	$	1,431,728	105	(213,725)	1,218,108

Schedule of the portfolio of investment securities held-to-maturity

The following table shows the portfolio of marketable securities held-to-maturity at September 30, 2023 (in thousands):

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by government-sponsored enterprises:
Due after one year through five years	$	49,471	—	(6,830)	42,641
Due after five years through ten years	74,986		—	(14,901)	60,085
Residential mortgage-backed securities:
Fixed rate pass-through	151,411		—	(27,070)	124,341
Variable rate pass-through	468		—	(8)	460
Fixed rate agency CMOs	553,241		—	(98,606)	454,635
Variable rate agency CMOs	529		—	(10)	519
Total residential mortgage-backed securities	705,649		—	(125,694)	579,955
Total marketable securities held-to-maturity	$	830,106	—	(147,425)	682,681

The following table shows the portfolio of marketable securities held-to-maturity at December 31, 2022 (in thousands): 

	Amortized cost		Gross unrealized holding gains	Gross unrealized holding losses	Fair value
Debt issued by government-sponsored enterprises:
Due after one year through five years	$	29,478	—	(3,676)	25,802
Due after five years through ten years	94,977		—	(18,157)	76,820
Residential mortgage-backed securities:
Fixed rate pass-through	163,196		—	(24,684)	138,512
Variable rate pass-through	542		—	(12)	530
Fixed rate agency CMOs	592,527		—	(83,325)	509,202
Variable rate agency CMOs	529		—	(11)	518
Total residential mortgage-backed securities	756,794		—	(108,032)	648,762
Total marketable securities held-to-maturity	$	881,249	—	(129,865)	751,384

Information regarding the issuers and the carrying values of the entity's mortgage-backed securities

The following table shows the contractual maturity of our residential mortgage-backed securities available-for-sale at September 30, 2023 (in thousands):

	Amortized cost		Fair value
Residential mortgage-backed securities:
Due within one year	$	60	59
Due after one year through five years	25,302		23,185
Due after five years through ten years	27,837		25,424
Due after ten years	997,912		790,441
Total residential mortgage-backed securities	$	1,051,111	839,109

The following table shows the contractual maturity of our residential mortgage-backed securities held-to-maturity at September 30, 2023 (in thousands):

	Amortized cost		Fair value
Residential mortgage-backed securities:
Due after one year through five years	$	20,343	17,291
Due after five years through ten years	20,225		15,484
Due after ten years	665,081		547,180
Total residential mortgage-backed securities	$	705,649	579,955

Schedule of the fair value and gross unrealized losses on investment securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position

The following table shows the fair value of and gross unrealized losses on available for sale investment securities and held to maturity investment securities, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2023 (in thousands):

	Less than 12 months			12 months or more		Total
	Fair  value		Unrealized loss	Fair  value	Unrealized loss	Fair  value	Unrealized loss
U.S. government-sponsored enterprises	$	423	(11)	197,736	(42,873)	198,159	(42,884)
Municipal securities	8,412		(526)	59,233	(17,326)	67,645	(17,852)
Corporate issues	—		—	7,464	(1,000)	7,464	(1,000)
Residential mortgage-backed securities - agency	25,649		(1,271)	1,390,685	(336,455)	1,416,334	(337,726)
Total	$	34,484	(1,808)	1,655,118	(397,654)	1,689,602	(399,462)

The following table shows the fair value of and gross unrealized losses on available for sale investment securities and held to maturity investment securities, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2022 (in thousands):

	Less than 12 months			12 months or more		Total
	Fair  value		Unrealized loss	Fair  value	Unrealized loss	Fair  value	Unrealized loss
U.S. government-sponsored enterprises	$	1,735	(82)	200,679	(41,917)	202,414	(41,999)
Corporate debt issues	12,979		(562)	—	—	12,979	(562)
Municipal securities	60,676		(4,047)	44,493	(11,671)	105,169	(15,718)
Residential mortgage-backed securities - agency	373,186		(22,796)	1,264,042	(262,515)	1,637,228	(285,311)
Total	$	448,576	(27,487)	1,509,214	(316,103)	1,957,790	(343,590)

Schedule of credit quality of held-to-maturity securities

The following table presents the credit quality of our held-to-maturity securities, based on the latest information available as of September 30, 2023 (in thousands). The credit ratings are sourced from nationally recognized rating agencies, which include Moody’s and S&P, and they are presented based on asset type. All of our held-to-maturity securities were current in their payment of principal and interest as of September 30, 2023.

	AA+		Total
Held-to-maturity securities (at amortized cost):
Debt issued by the U.S. government-sponsored enterprises	$	124,457	124,457
Residential mortgage-backed securities	705,649		705,649
Total marketable securities held-to-maturity	$	830,106	830,106

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Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of loans receivable

The following table shows a summary of our loans receivable at amortized cost basis at September 30, 2023 and December 31, 2022 (in thousands): 

	September 30, 2023				December 31, 2022
	Originated (1)		Acquired (2)	Total	Originated (1)	Acquired (2)	Total
Personal Banking:
Residential mortgage loans (3)	$	3,322,136	150,627	3,472,763	3,327,879	170,720	3,498,599
Home equity loans	1,126,675		132,090	1,258,765	1,131,641	166,033	1,297,674
Vehicle loans	1,969,029		70,670	2,039,699	1,965,385	91,398	2,056,783
Consumer loans	109,319		6,101	115,420	104,284	7,588	111,872
Total Personal Banking	6,527,159		359,488	6,886,647	6,529,189	435,739	6,964,928
Commercial Banking:
Commercial real estate loans (4)	2,286,563		267,081	2,553,644	2,135,607	312,421	2,448,028
Commercial real estate loans - owner occupied	343,714		25,659	369,373	341,704	33,823	375,527
Commercial loans	1,463,159		37,450	1,500,609	1,082,914	49,055	1,131,969
Total Commercial Banking	4,093,436		330,190	4,423,626	3,560,225	395,299	3,955,524
Total loans receivable, gross	10,620,595		689,678	11,310,273	10,089,414	831,038	10,920,452
Allowance for credit losses	(116,596)		(8,245)	(124,841)	(107,379)	(10,657)	(118,036)
Total loans receivable, net (5)	$	10,503,999	681,433	11,185,432	9,982,035	820,381	10,802,416

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

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

(3) Includes $10.2 million and $9.9 million of loans held-for-sale at September 30, 2023 and December 31, 2022, respectively.

(4) Includes $435,000 and $0 of loans held-for-sale at September 30, 2023 and December 31, 2022, respectively.

(5) Includes $71.5 million and $76.1 million of net unearned income, unamortized premiums and discounts and deferred fees and costs at September 30, 2023 and December 31, 2022, respectively.

Schedule of the changes in the allowance for losses on loans receivable

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended September 30, 2023 (in thousands):

	Balance as of September 30, 2023		Current period provision	Charge-offs	Recoveries	Balance as of June 30, 2023
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,090	(370)	(171)	75	17,556
Home equity loans	5,044		201	(320)	161	5,002
Vehicle loans	27,226		984	(1,524)	483	27,283
Consumer loans	1,202		1,436	(1,561)	317	1,010
Total Personal Banking	50,562		2,251	(3,576)	1,036	50,851
Commercial Banking:
Commercial real estate loans	48,582		(1,110)	(484)	120	50,056
Commercial real estate loans - owner occupied	3,479		(30)	—	11	3,498
Commercial loans	22,218		2,872	(1,286)	614	20,018
Total Commercial Banking	74,279		1,732	(1,770)	745	73,572
Total	$	124,841	3,983	(5,346)	1,781	124,423
Allowance for Credit Losses - off-balance sheet exposure
Personal Banking:
Residential mortgage loans	$	3	(1)	—	—	4
Home equity loans	67		3	—	—	64
Total Personal Banking	70		2	—	—	68
Commercial Banking:
Commercial real estate loans	4,797		(2,858)	—	—	7,655
Commercial real estate loans - owner occupied	140		(180)	—	—	320
Commercial loans	7,971		55	—	—	7,916
Total Commercial Banking	12,908		(2,983)	—	—	15,891
Total off-balance sheet exposure	$	12,978	(2,981)	—	—	15,959

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the quarter ended September 30, 2022 (in thousands):

	Balance as of September 30, 2022		Current period provision	Charge-offs	Recoveries	Balance as of June 30, 2022
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,967	1,646	(166)	329	16,158
Home equity loans	5,448		341	(535)	410	5,232
Vehicle loans	17,004		1,576	(936)	626	15,738
Consumer loans	825		1,170	(1,405)	281	779
Total Personal Banking	41,244		4,733	(3,042)	1,646	37,907
Commercial Banking:
Commercial real estate loans	49,649		5,117	(1,329)	6,220	39,641
Commercial real estate loans - owner occupied	4,087		(34)	—	26	4,095
Commercial loans	14,839		(2,127)	(243)	497	16,712
Total Commercial Banking	68,575		2,956	(1,572)	6,743	60,448
Total	$	109,819	7,689	(4,614)	8,389	98,355
Allowance for Credit Losses - off-balance sheet exposure
Personal Banking:
Residential mortgage loans	$	4	(2)	—	—	6
Home equity loans	74		10	—	—	64
Total Personal Banking	78		8	—	—	70
Commercial Banking:
Commercial real estate loans	5,382		1,919	—	—	3,463
Commercial real estate loans - owner occupied	287		(41)	—	—	328
Commercial loans	5,288		1,699	—	—	3,589
Total Commercial Banking	10,957		3,577	—	—	7,380
Total off-balance sheet exposure	$	11,035	3,585	—	—	7,450

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the nine months ended September 30, 2023 (in thousands):

	Balance September 30, 2023		Current period provision	Charge-offs	Recoveries	ASU 2022-02 Adoption	Balance December 31, 2022
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,090	(2,047)	(923)	799	—	19,261
Home equity loans	5,044		(705)	(719)	566	—	5,902
Vehicle loans	27,226		7,267	(4,731)	1,631	—	23,059
Consumer loans	1,202		3,463	(3,860)	934	—	665
Total Personal Banking	50,562		7,978	(10,233)	3,930	—	48,887
Commercial Banking:
Commercial real estate loans	48,582		3,587	(1,556)	1,619	426	44,506
Commercial real estate loans - owner occupied	3,479		(515)	(68)	58	—	4,004
Commercial loans	22,218		3,813	(3,360)	1,126	—	20,639
Total Commercial Banking	74,279		6,885	(4,984)	2,803	426	69,149
Total	$	124,841	14,863	(15,217)	6,733	426	118,036
Allowance for Credit Losses - off-balance sheet exposure (1)
Personal Banking:
Residential mortgage loans	$	3	(1)	—	—	—	4
Home equity loans	67		(7)	—	—	—	74
Total Personal Banking	70		(8)	—	—	—	78
Commercial Banking:
Commercial real estate loans	4,797		(578)	—	—	—	5,375
Commercial real estate loans - owner occupied	140		(239)	—	—	—	379
Commercial loans	7,971		890	—	—	—	7,081
Total Commercial Banking	12,908		73	—	—	—	12,835
Total off-balance sheet exposure	$	12,978	65	—	—	—	12,913

(1) The table above has been revised to reflect the correct ending balance for total off-balance-sheet exposure at December 31, 2022. We evaluated the effect of the revision, both qualitatively and quantitatively, and concluded that the impact of the revision was not material.

The following table provides information related to the allowance for credit losses by portfolio segment and by class of financing receivable for the nine months ended September 30, 2022 (in thousands):

	Balance as of September 30, 2022		Current period provision	Charge-offs	Recoveries	Balance as of December 31, 2021
Allowance for Credit Losses
Personal Banking:
Residential mortgage loans	$	17,967	11,331	(1,487)	750	7,373
Home equity loans	5,448		127	(1,237)	1,258	5,300
Vehicle loans	17,004		2,159	(2,517)	1,879	15,483
Consumer loans	825		479	(3,459)	921	2,884
Total Personal Banking	41,244		14,096	(8,700)	4,808	31,040
Commercial Banking:
Commercial real estate loans	49,649		(6,465)	(6,745)	8,718	54,141
Commercial real estate loans - owner occupied	4,087		167	—	37	3,883
Commercial loans	14,839		1,039	(1,253)	1,876	13,177
Total Commercial Banking	68,575		(5,259)	(7,998)	10,631	71,201
Total	$	109,819	8,837	(16,698)	15,439	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

Schedule of loan portfolio by portfolio segment and by class of financing receivable

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at September 30, 2023 (in thousands):

	Total loans receivable		Allowance for credit losses	Nonaccrual loans	Loans 90 days past due and accruing
Personal Banking:
Residential mortgage loans	$	3,472,763	17,090	9,760	—
Home equity loans	1,258,765		5,044	3,431	133
Vehicle loans	2,039,699		27,226	3,817	57
Consumer loans	115,420		1,202	281	500
Total Personal Banking	6,886,647		50,562	17,289	690
Commercial Banking:
Commercial real estate loans	2,553,644		48,582	54,109	—
Commercial real estate loans - owner occupied	369,373		3,479	1,071	—
Commercial loans	1,500,609		22,218	4,185	38
Total Commercial Banking	4,423,626		74,279	59,365	38
Total	$	11,310,273	124,841	76,654	728

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2022, prior to the adoption of ASU 2022-02 (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.

Schedule of the composition of nonaccrual loans by portfolio segment and by class of financing receivable

The following table presents the amortized cost of our loans on nonaccrual status as of the beginning and end of the nine-month period ended September 30, 2023 (in thousands): 

			September 30, 2023
	Nonaccrual loans at January 1, 2023		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	$	7,574	9,760	—	9,760	—
Home equity loans	4,145		3,262	169	3,431	133
Vehicle loans	3,771		2,838	979	3,817	57
Consumer loans	256		281	—	281	500
Total Personal Banking	15,746		16,141	1,148	17,289	690
Commercial Banking:
Commercial real estate loans	62,239		21,838	32,271	54,109	—
Commercial real estate loans - owner occupied	624		1,071	—	1,071	—
Commercial loans	2,627		3,828	357	4,185	38
Total Commercial Banking	65,490		26,737	32,628	59,365	38
Total	$	81,236	42,878	33,776	76,654	728

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

			December 31, 2022
	Nonaccrual loans at January 1, 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

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023 (in thousands):

	Real estate		Total
Commercial Banking:
Commercial real estate loans	$	51,402	51,402
Commercial loans	160		160
Total Commercial Banking	51,562		51,562
Total	$	51,562	51,562

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

Schedule of troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable

The following table presents the amortized cost basis of loans as of September 30, 2023 that were both experiencing financial difficulty and modified during the periods indicated, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financial receivable is also presented below (dollars in thousands).

	For the quarter ended September 30, 2023					For the nine months ended September 30, 2023
	Term extension		Combination term extension and interest rate reduction	Total class of financing receivable		Term extension	Combination term extension and interest rate reduction	Total class of financing receivable
Personal Banking:
Residential mortgage loans	$	192	—	0.01	%	450	—	0.01	%
Home equity loans	122		85	0.02	%	283	85	0.03	%
Consumer loans	—		—	—	%	—	3	0.00	%
Total Personal Banking	314		85	0.01	%	733	88	0.01	%
Commercial Banking:
Commercial real estate loans	—		—	—	%	197	—	0.01	%
Commercial loans	15		—	0.00	%	663	—	0.04	%
Total Commercial Banking	15		—	—	%	860	—	0.02	%
Total	$	329	85	0.00	%	1,593	88	0.01	%

The following table presents the effect of the loan modifications presented above to borrowers experiencing financial difficulty for the periods indicated:

	For the quarter ended September 30, 2023			For the nine months ended September 30, 2023
	Weighted-average interest rate reduction		Weighted-average term extension in months	Weighted-average interest rate reduction		Weighted-average term extension in months
Personal Banking:
Residential mortgage loans	—	%	169	—		149
Home equity loans	5	%	112	5	%	96
Consumer loans	—	%	—	12	%	356
Total Personal Banking	5	%	140	17	%	126
Commercial Banking:
Commercial real estate loans	—	%	—	—		25
Commercial loans	—	%	23	—		9
Total Commercial Banking	—	%	23	—		13
Total loans	5	%	135	17	%	68

The following table presents the performance of loans that such loans have been modified since the adoption of ASU 2022-02 (in thousands):

	Current		30-59 days delinquent	60-89 days delinquent	90 days or greater delinquent
Personal Banking:
Residential mortgage loans	$	450	—	—	—
Home equity loans	368		—	—	—
Consumer loans	3		—	—	—
Total Personal Banking	821		—	—	—
Commercial Banking:
Commercial real estate loans	74		—	—	123
Commercial real estate loans - owner occupied	—		—	—	—
Commercial loans	—		15	—	648
Total Commercial Banking	74		15	—	771
Total loans	$	895	15	—	771

The following tables provide a roll forward of troubled debt restructurings for the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):

	For the quarter ended September 30, 2022			For the nine months ended September 30, 2022
	Number of Contracts	Amount		Number of Contracts	Amount
Beginning TDR balance:	128	$	54,237	134	$	30,288
New TDRs	6	221		8	25,626
Re-modified TDRs	4	977		10	1,178
Net paydowns	—	(810)		—	(1,609)
Charge-offs:
Residential mortgage loans	—	—		1	(3)
Paid-off loans:
Residential mortgage loans	1	(35)		2	(236)
Home equity loans	1	(11)		3	(88)
Commercial real estate loans	1	(3,349)		4	(3,718)
Commercial real estate loans - owner occupied	1	(44)		1	(44)
Commercial loans	3	(3,459)		4	(3,466)
Ending TDR balance:	127	$	46,750	127	$	46,750
Accruing TDRs		$	16,344		$	16,344
Nonaccrual TDRs		30,406			30,406

The following table provides information related to TDRs (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated, prior to the adoption of ASU 2022-02 (dollars in thousands):

	For the quarter ended September 30, 2022					For the nine months ended September 30, 2022
	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance	Number of contracts	Recorded investment at the time of modification		Current recorded investment	Current allowance
Personal Banking:
Residential mortgage loans	2	$	147	144	15	2	$	147	144	15
Home equity loans	5	160		154	23	5	160		154	23
Total Personal Banking	7	307		298	38	7	307		298	38
Commercial Banking:
Commercial real estate loans	1	$	610	609	89	5	$	34,295	26,212	102
Commercial loans	2	332		291	20	6	3,856		294	20
Total Commercial Banking	3	942		900	109	11	38,151		26,506	122
Total	10	$	1,249	1,198	147	18	$	38,458	26,804	160

Schedule of loans with payment default and modified

The following table provides the amortized cost basis of financing receivables that had a payment default during the period and were modified since the adoption of ASU 2022-02 to borrowers experiencing financial difficulty (in thousands):

	Term extension
Commercial Banking:
Commercial real estate loans	$	123
Commercial loans	648
Total Commercial Banking	771
Total	$	771

Schedule of loan delinquencies

The following table provides information related to the amortized cost basis of loan payment delinquencies at September 30, 2023 (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	$	573	5,395	7,695	13,663	3,459,100	3,472,763	—
Home equity loans	4,707		1,341	2,206	8,254	1,250,511	1,258,765	133
Vehicle loans	9,122		2,412	2,274	13,808	2,025,891	2,039,699	57
Consumer loans	752		295	746	1,793	113,627	115,420	500
Total Personal Banking	15,154		9,443	12,921	37,518	6,849,129	6,886,647	690
Commercial Banking:
Commercial real estate loans	3,411		1,328	8,042	12,781	2,540,863	2,553,644	—
Commercial real estate loans - owner occupied	—		260	374	634	368,739	369,373	—
Commercial loans	2,847		981	2,472	6,300	1,494,309	1,500,609	38
Total Commercial Banking	6,258		2,569	10,888	19,715	4,403,911	4,423,626	38
Total loans	$	21,412	12,012	23,809	57,233	11,253,040	11,310,273	728

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 originated loans	$	52,235	13,100	20,606	85,941	10,834,511	10,920,452	744

Schedule of credit quality indicators

The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator and the current period charge-offs by year of origination for each portfolio segment as of September 30, 2023 (in thousands):

	YTD September 30, 2023		2022	2021	2020	2019	Prior	Revolving loans	Revolving loans converted to term loans	Total loans receivable
Personal Banking:
Residential mortgage loans
Pass	$	159,472	673,235	803,613	516,270	249,797	1,056,864	—	—	3,459,251
Substandard	—		1,033	260	872	336	11,011	—	—	13,512
Total residential mortgage loans	159,472		674,268	803,873	517,142	250,133	1,067,875	—	—	3,472,763
Residential mortgage current period charge-offs	—		—	(5)	(130)	—	(788)	—	—	(923)
Home equity loans
Pass	65,795		104,272	110,823	153,431	98,062	210,273	469,459	42,870	1,254,985
Substandard	—		—	—	—	149	1,783	1,050	798	3,780
Total home equity loans	65,795		104,272	110,823	153,431	98,211	212,056	470,509	43,668	1,258,765
Home equity current period charge-offs	—		(53)	(46)	—	(48)	(257)	(142)	(173)	(719)
Vehicle loans
Pass	541,270		746,225	444,934	153,264	81,931	68,201	—	—	2,035,825
Substandard	320		901	1,386	247	564	456	—	—	3,874
Total vehicle loans	541,590		747,126	446,320	153,511	82,495	68,657	—	—	2,039,699
Vehicle current period charge-offs	(324)		(1,385)	(1,425)	(416)	(497)	(684)	—	—	(4,731)
Consumer loans
Pass	20,061		13,137	6,361	2,485	1,727	6,201	63,801	866	114,639
Substandard	45		57	31	8	14	1	506	119	781
Total consumer loans	20,106		13,194	6,392	2,493	1,741	6,202	64,307	985	115,420
Consumer loan current period charge-offs	(2,055)		(340)	(271)	(116)	(150)	(766)	(149)	(13)	(3,860)
Total Personal Banking	786,963		1,538,860	1,367,408	826,577	432,580	1,354,790	534,816	44,653	6,886,647
Business Banking:
Commercial real estate loans
Pass	127,229		437,503	356,152	330,522	225,478	776,377	23,845	25,345	2,302,451
Special mention	—		7,451	26,749	21,732	5,615	34,909	350	—	96,806
Substandard	—		174	1,056	8,108	48,592	95,825	514	118	154,387
Total commercial real estate loans	127,229		445,128	383,957	360,362	279,685	907,111	24,709	25,463	2,553,644
Commercial real estate current period charge-offs	—		—	(492)	—	(51)	(1,013)	—	—	(1,556)
Commercial real estate loans - owner occupied
Pass	17,830		50,716	48,567	14,845	44,834	148,778	2,237	2,214	330,021
Special mention	—		17,631	—	1,690	—	7,808	—	—	27,129
Substandard	—		—	122	1,344	4,736	5,308	—	713	12,223
Total commercial real estate loans - owner occupied	17,830		68,347	48,689	17,879	49,570	161,894	2,237	2,927	369,373
Commercial real estate - owner occupied current period charge-offs	—		—	—	—	—	(68)	—	—	(68)
Commercial loans
Pass	315,190		455,098	77,266	28,754	37,787	56,731	501,722	4,285	1,476,833
Special mention	542		315	58	369	316	68	2,022	—	3,690
Substandard	—		2,496	577	495	2,503	1,025	11,730	1,260	20,086
Total commercial loans	315,732		457,909	77,901	29,618	40,606	57,824	515,474	5,545	1,500,609
Commercial loans current period charge-offs	—		(1,526)	(517)	(430)	(110)	(715)	(60)	(2)	(3,360)
Total Business Banking	460,791		971,384	510,547	407,859	369,861	1,126,829	542,420	33,935	4,423,626
Total loans	$	1,247,754	2,510,244	1,877,955	1,234,436	802,441	2,481,619	1,077,236	78,588	11,310,273

The following table presents the amortized cost basis of our loan portfolio by year of origination and credit quality indicator for each portfolio segment 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 - 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 - owner occupied loans	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

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets subject to amortization

The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):

	September 30, 2023		December 31, 2022
Amortizable intangible assets:
Core deposit intangibles - gross	$	74,899	74,899
Less: accumulated amortization	(68,886)		(66,367)
Core deposit intangibles - net	$	6,013	8,532
Customer and Contract intangible assets - gross	$	12,775	12,775
Less: accumulated amortization	(12,775)		(12,747)
Customer and Contract intangible assets - net	—		28
Total intangible assets - net	$	6,013	8,560

Schedule of the actual aggregate amortization expense as well as estimated aggregate amortization expense, based upon current levels of intangible assets

The following table shows the actual aggregate amortization expense for the quarters ended September 30, 2023 and 2022, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):

For the quarter ended September 30, 2023	$	795
For the quarter ended September 30, 2022	1,047
For the nine months ended September 30, 2023	2,546
For the nine months ended September 30, 2022	3,345
For the year ending December 31, 2023	3,270
For the year ending December 31, 2024	2,452
For the year ending December 31, 2025	1,662
For the year ending December 31, 2026	871
For the year ending December 31, 2027	305

Schedule of the changes in carrying amount of goodwill

The following table provides information for the changes in the carrying amount of goodwill (in thousands):

	Total
Balance at December 31, 2022	$	380,997
Balance at September 30, 2023	$	380,997

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Borrowed Funds (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of borrowed funds

Borrowed funds at September 30, 2023 and December 31, 2022 are presented in the following table:

	September 30, 2023				December 31, 2022
	Amount		Average rate		Amount		Average rate
Term notes payable to the FHLB of Pittsburgh, due within one year	$	375,400	5.65	%	$	500,000	4.55	%
Notes payable to the FHLB of Pittsburgh, due within one year	119,000		5.68	%	51,300		4.45	%
Collateralized borrowings, due within one year	48,587		1.52	%	105,766		0.27	%
Collateral received, due within one year	61,600		5.16	%	24,100		4.17	%
Total borrowed funds	$	604,587			$	681,166

Schedule of capital debt securities and junior subordinated deferrable interest debentures

The following table sets forth a summary of the cumulative trust preferred securities and the junior subordinated debt held by the Trust as of the date listed (dollars in thousands).

	Maturity date	Interest rate	Capital debt securities		September 30, 2023		December 31, 2022
Northwest Bancorp Capital Trust III	December 30, 2035	3-month SOFR plus 1.38%	$	50,000	$	51,547	51,547
Northwest Bancorp Statutory Trust IV	December 15, 2035	3-month SOFR plus 1.38%	50,000		51,547		51,547
LNB Trust II	June 15, 2037	3-month SOFR plus 1.48%	7,875		8,119		8,119
Union National Capital Trust I (1)	January 23, 2034	3-month SOFR plus 2.85%	8,000		7,993		7,975
Union National Capital Trust II (1)	November 23, 2034	3-month SOFR plus 2.00%	3,000		2,789		2,768
MFBC Statutory Trust I (1)	September 15, 2035	3-month SOFR plus 1.70%	5,000		3,762		3,684
Universal Preferred Trust (1)	October 7, 2035	3-month SOFR plus 1.69%	5,000		3,752		3,674
					$	129,509	129,314

(1) Net of discounts due to the fair value adjustment made at the time of acquisition.

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per share

The following table sets forth the computation of basic and diluted EPS (in thousands, except share data and per share amounts): 

	Quarter ended September 30,			Nine months ended September 30,
	2023		2022	2023	2022
Net income	$	39,220	37,304	105,943	99,017
Less: Dividends and undistributed earnings allocated to participating securities	99		166	267	441
Net income available to common shareholders	$	39,121	37,138	105,676	98,576
Weighted average common shares outstanding	126,767,507		126,320,706	126,629,786	126,082,217
Add: Participating shares outstanding	320,177		565,729	320,177	565,729
Total weighted average common shares and dilutive potential shares	127,087,684		126,886,435	126,949,963	126,647,946
Basic earnings per share	$	0.31	0.29	0.83	0.78
Diluted earnings per share	$	0.31	0.29	0.83	0.78

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Pension and Other Post-Retirement Benefits (Tables)

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Schedule of net periodic costs for the defined benefit pension plans and the post retirement healthcare plans

The following table sets forth the net periodic costs for the defined benefit pension plans and post-retirement healthcare plans for the periods indicated (in thousands):

	Quarter ended September 30,
	Pension benefits			Other post-retirement benefits
	2023		2022	2023	2022
Service cost	$	1,560	2,599	—	—
Interest cost	2,245		1,671	7	10
Expected return on plan assets	(3,479)		(3,864)	—	—
Amortization of prior service cost	(564)		(564)	—	—
Amortization of the net loss	20		381	10	2
Net periodic cost	$	(218)	223	17	12

	Nine months ended September 30,
	Pension benefits			Other post-retirement benefits
	2023		2022	2023	2022
Service cost	$	4,680	7,797	—	—
Interest cost	6,735		5,013	21	30
Expected return on plan assets	(10,437)		(11,592)	—	—
Amortization of prior service cost	(1,692)		(1,692)	—	—
Amortization of the net loss	60		1,143	30	6
Net periodic cost	$	(654)	669	51	36

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Disclosures About Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of the carrying amount and estimated fair value of the entity's financial instruments included in the consolidated statement of financial condition

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the Consolidated Statement of Financial Condition at September 30, 2023 (in thousands): 

	Carrying amount		Estimated fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	161,995	161,995	161,995	—	—
Securities available-for-sale	1,010,076		1,010,076	—	1,010,076	—
Securities held-to-maturity	830,106		682,681	—	682,681	—
Loans receivable, net	11,174,840		10,031,968	—	—	10,031,968
Loans held-for-sale	10,592		10,592	—	—	10,592
Accrued interest receivable	42,624		42,624	42,624	—	—
Interest rate lock commitments	664		664	—	—	664
Foreign exchange swaps	203		203	—	203	—
Interest rate swaps designated as hedging instruments	4,603		4,603	—	4,603	—
Interest rate swaps not designated as hedging instruments	57,249		57,249	—	57,249	—
FHLB stock	40,404		40,404	—	—	—
Total financial assets	$	13,333,356	12,043,059	204,619	1,754,812	10,043,224
Financial liabilities:
Savings and checking deposits	$	9,531,544	9,531,544	9,531,544	—	—
Time deposits	2,258,338		2,250,768	—	—	2,250,768
Borrowed funds	604,587		617,832	617,832	—	—
Subordinated debt	114,102		102,456	—	102,456	—
Junior subordinated debentures	129,509		136,461	—	—	136,461
Forward commitments	23		23	—	23	—
Foreign exchange swaps	10		10	—	10	—
Interest rate swaps not designated as hedging instruments	57,275		57,275	—	57,275	—
Risk participation agreements	17		17	—	17	—
Accrued interest payable	7,915		7,915	7,915	—	—
Total financial liabilities	$	12,703,320	12,704,301	10,157,291	159,781	2,387,229

The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the Consolidated Statement of Financial Condition at December 31, 2022 (in thousands): 

	Carrying amount		Estimated fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	$	139,365	139,365	139,365	—	—
Securities available-for-sale	1,218,108		1,218,108	—	1,218,108	—
Securities held-to-maturity	881,249		751,384	—	751,384	—
Loans receivable, net	10,792,503		9,910,852	—	—	9,910,852
Residential mortgage loans held-for-sale	9,913		9,913	—	—	9,913
Accrued interest receivable	35,528		35,528	35,528	—	—
Interest rate lock commitments	559		559	—	—	559
Forward commitments	128		128	—	128	—
Interest rate swaps not designated as hedging instruments	26,642		26,642	—	26,642	—
FHLB stock	40,143		40,143	—	—	—
Total financial assets	$	13,144,138	12,132,622	174,893	1,996,262	9,921,324
Financial liabilities:
Savings and checking accounts	$	10,412,263	10,412,263	10,412,263	—	—
Time deposits	1,052,285		1,059,790	—	—	1,059,790
Borrowed funds	681,166		680,996	680,996	—	—
Subordinated debt	113,840		102,554	—	102,554	—
Junior subordinated debentures	129,314		133,546	—	—	133,546
Foreign exchange swaps	23		23	—	23	—
Interest rate swaps not designated as hedging instruments	45,464		45,464	—	45,464	—
Risk participation agreements	18		18	—	18	—
Accrued interest payable	3,231		3,231	3,231	—	—
Total financial liabilities	$	12,437,604	12,437,885	11,096,490	148,059	1,193,336

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table represents assets and liabilities measured at fair value on a recurring basis at September 30, 2023 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Debt securities:
U.S. government and agencies	$	—	56,526	—	56,526
Government-sponsored enterprises	—		38,906	—	38,906
States and political subdivisions	—		68,071	—	68,071
Corporate	—		7,464	—	7,464
Total debt securities	—		170,967	—	170,967
Residential mortgage-backed securities:
GNMA	—		17,073	—	17,073
FNMA	—		99,874	—	99,874
FHLMC	—		68,926	—	68,926
Non-agency	—		5	—	5
Collateralized mortgage obligations:
GNMA	—		318,652	—	318,652
FNMA	—		148,389	—	148,389
FHLMC	—		186,190	—	186,190
Total mortgage-backed securities	—		839,109	—	839,109
Interest rate lock commitments	—		—	664	664
Foreign exchange swaps	—		203	—	203
Interest rate swaps designated as hedging instruments	—		4,603	—	4,603
Interest rate swaps not designated as hedging instruments	—		57,249	—	57,249
Total assets	$	—	1,072,131	664	1,072,795
Forward commitments	$	—	23	—	23
Foreign exchange swaps	—		10	—	10
Interest rate swaps not designated as hedging instruments	—		57,275	—	57,275
Risk participation agreements	—		17	—	17
Total liabilities	$	—	57,325	—	57,325

The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2022 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Debt securities:
U.S. government and agencies	$	—	60,592	—	60,592
Government-sponsored enterprises	—		39,201	—	39,201
States and political subdivisions	—		111,766	—	111,766
Corporate	—		12,978	—	12,978
Total debt securities	—		224,537	—	224,537
Residential mortgage-backed securities:
GNMA	—		12,434	—	12,434
FNMA	—		117,218	—	117,218
FHLMC	—		74,991	—	74,991
Non-agency	—		6	—	6
Collateralized mortgage obligations:
GNMA	—		364,553	—	364,553
FNMA	—		185,588	—	185,588
FHLMC	—		238,781	—	238,781
Total mortgage-backed securities	—		993,571	—	993,571
Interest rate lock commitments	—		—	559	559
Forward commitments	—		128	—	128
Interest rate swaps not designated as hedging instruments	—		26,642	—	26,642
Total assets	$	—	1,244,878	559	1,245,437
Foreign exchange swaps	$	—	23	—	23
Interest rate swaps not designated as hedging instruments	—		45,464	—	45,464
Risk participation agreements	—		18	—	18
Total liabilities	$	—	45,505	—	45,505

Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis

The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis (in thousands):

	For the quarter ended September 30,			For the nine months ended September 30,
	2023		2022	2023	2022
Beginning balance,	$	761	1,520	559	1,684
Interest rate lock commitments:
Net activity	(97)		(457)	105	(621)
Ending balance	$	664	1,063	664	1,063

Schedule of fair value measurement for nonrecurring assets

The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of September 30, 2023 (in thousands):

	Level 1		Level 2	Level 3	Total assets  at fair value
Loans individually assessed	$	—	—	13,467	13,467
Mortgage servicing rights	—		—	198	198
Real estate owned, net	—		—	363	363
Total assets	$	—	—	14,028	14,028

The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of December 31, 2022 (in thousands): 

	Level 1		Level 2	Level 3	Total assets  at fair value
Loans individually assessed	$	—	—	15,416	15,416
Mortgage servicing rights	—		—	95	95
Real estate owned, net	—		—	413	413
Total assets	$	—	—	15,924	15,924

Schedule of quantitative information about assets measured at fair value on a recurring and nonrecurring basis for Level 3 fair value measurements

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at September 30, 2023 (in thousands): 

	Fair value		Valuation techniques	Significant unobservable inputs	Range  (weighted average)
Loans individually assessed	$	13,467	Appraisal value (1)	Estimated cost to sell	10.0%
Mortgage servicing rights	198		Discounted cash flow	Annual service cost	$90
				Prepayment rate	6.6% to 15.0% (9.9%)
				Expected life (months)	53.1 to 103.5 (75.8)
				Option adjusted spread	720 basis points
				Forward yield curve	5.44% to 5.60%
Real estate owned, net	363		Appraisal value (1)	Estimated cost to sell	15.0%
Loans held for sale	10,592		Quoted prices for similar loans in active markets adjusted by an expected pull-through rate	Estimated pull-through rate	100.0%

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent.

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments

The following table presents information regarding our derivative financial instruments for the periods indicated (in thousands):

	Asset derivatives			Liability derivatives
	Notional amount		Fair value	Notional amount	Fair value
At September 30, 2023
Derivatives designated as hedging instruments:
Interest rate swap agreements	$	175,000	4,603	—	—
Derivatives not designated as hedging instruments:
Interest rate swap agreements	673,255		57,249	673,255	57,275
Foreign exchange swap agreements	7,393		203	760	10
Interest rate lock commitments	35,272		664	—	—
Forward commitments	—		—	6,772	23
Risk participation agreements	—		—	102,385	17
Total Derivatives	$	890,920	62,719	783,172	57,325
At December 31, 2022
Derivatives not designated as hedging instruments:
Interest rate swap agreements	$	651,114	26,642	651,114	45,464
Foreign exchange swap agreements	—		—	2,328	23
Interest rate lock commitments	19,727		559	—	—
Forward commitments	4,909		128	—	—
Risk participation agreements	—		—	114,159	18
Total derivatives	$	675,750	27,329	767,601	45,505

Schedule of gain (loss) on derivative instruments

The following table presents income or expense recognized on derivatives for the periods indicated (in thousands):

	For the quarter ended September 30,			For the nine months ended September 30,
	2023		2022	2023	2022
Hedging derivatives:
Decrease in interest expense	$	627	—	831	—
Non-hedging swap derivatives:
Increase/(decrease) in other income	$	203	93	(127)	207
(Decrease)/increase in mortgage banking income	$	(221)	809	(46)	1,131

Schedule of interest rate products designated as hedging instruments

The following table presents information regarding our derivative financial instruments designated as hedging for the quarter ended September 30, 2023 (in thousands):

	Notional amount		Effective rate		Estimated decrease to interest expense in the next twelve months		Maturity date	Remaining term (in months)
Interest rate products:
Issued May 11, 2023	$	25,000	3.52	%	$	(540)	5/11/2027	43
Issued May 12, 2023	25,000		3.54	%	(528)		5/12/2028	55
Issued May 19, 2023	25,000		3.84	%	(454)		11/19/2027	50
Issued May 31, 2023	25,000		4.08	%	(400)		11/30/2026	38
Issued July 26, 2023	25,000		4.24	%	(348)		7/26/2028	58
Issued July 31, 2023	25,000		4.36	%	(330)		1/31/2028	52
Issued August 9, 2023	25,000		4.32	%	(333)		8/9/2027	46
Total	$	175,000			$	(2,933)

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Changes in Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of changes in accumulated other comprehensive income by component

The following tables show the changes in accumulated other comprehensive income by component for the periods indicated (in thousands): 

	For the quarter ended September 30, 2023
	Unrealized  losses on securities  available-for-sale		Change in  fair value  of interest  rate swaps	Change in  defined benefit  pension plans	Total
Balance as of June 30, 2023	$	(163,272)	1,737	(7,716)	(169,251)
Other comprehensive (loss)/income before reclassification adjustments (1) (2)	(29,715)		1,825	—	(27,890)
Amounts reclassified from accumulated other comprehensive income (3)	—		—	(382)	(382)
Net other comprehensive (loss)/income	(29,715)		1,825	(382)	(28,272)
Balance as of September 30, 2023	$	(192,987)	3,562	(8,098)	(197,523)

	For the quarter ended September 30, 2022
	Unrealized  losses on securities  available-for-sale		Change in  defined benefit  pension plans	Total
Balance as of June 30, 2022	$	(117,056)	(25,574)	(142,630)
Other comprehensive loss before reclassification adjustments (4)	(48,387)		—	(48,387)
Amounts reclassified from accumulated other comprehensive income (5)	—		(131)	(131)
Net other comprehensive loss	(48,387)		(131)	(48,518)
Balance as of September 30, 2022	$	(165,443)	(25,705)	(191,148)

(1)Consists of unrealized holding losses, net of tax of $9,140.

(2)Change in fair value of interest rate swaps, net of tax ($533).

(3)Consists of realized gains, net of tax of $152.

(4)Consists of unrealized holding losses, net of tax $14,705.

(5)Consists of realized gains, net of tax of $50.

	For the nine months ended September 30, 2023
	Unrealized  losses on securities  available-for-sale		Change in  fair value  of interest  rate swaps	Change in  defined benefit  pension plans	Total
Balance as of December 31, 2022	$	(164,206)	—	(6,952)	(171,158)
Other comprehensive (loss)/income before reclassification adjustments (1) (3)	(34,417)		3,562	—	(30,855)
Amounts reclassified from accumulated other comprehensive income (2) (4)	5,636		—	(1,146)	4,490
Net other comprehensive income/(loss)	(28,781)		3,562	(1,146)	(26,365)
Balance as of September 30, 2023	$	(192,987)	3,562	(8,098)	(197,523)

	For the nine months ended September 30, 2022
	Unrealized  losses  on securities  available-for-sale		Change in  defined benefit  pension plans	Total
Balance as of December 31, 2021	$	(12,317)	(25,312)	(37,629)
Other comprehensive loss before reclassification adjustments (5)	(153,124)		—	(153,124)
Amounts reclassified from accumulated other comprehensive income (6) (7)	(2)		(393)	(395)
Net other comprehensive loss	(153,126)		(393)	(153,519)
Balance as of September 30, 2022	$	(165,443)	(25,705)	(191,148)

(1)Consists of unrealized holding losses, net of tax of $9,603.

(2)Consists of realized losses, net of tax of ($1,731).

(3)Change in fair value of interest rate swaps, net of tax ($1,041).

(4)Consists of realized gains, net of tax of $456.

(5)Consists of unrealized holding losses, net of tax $45,555.

(6)Consists of realized losses, net of tax $0.

(7)Consists of realized gains, net of tax of $151.

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Basis of Presentation and Informational Disclosures (Details) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 15, 2023 $ / shares shares	Sep. 30, 2023 USD ($) bank_location	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) bank_location $ / shares shares	Dec. 31, 2022 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of banking locations | bank_location		142		142
Unrecognized tax benefits liability		$ 702		$ 702	$ 473
Stock Related Compensation
Stock-based compensation expense		1,300	$ 944,000
RSUs
Stock Related Compensation
Award granted (in shares) | shares				178,483
Award weighted average grant date fair value (in dollars per share) | $ / shares				$ 10.87
Award vesting period (in years)	3 years
Compensation expense yet to be recognized		3,700		$ 3,700
RSUs | Minimum
Stock Related Compensation
Award vesting period (in years)				2 years
RSUs | Maximum
Stock Related Compensation
Award vesting period (in years)				3 years
RSUs | First vesting
Stock Related Compensation
Award vesting period (in years)	1 year			1 year
RSAs
Stock Related Compensation
Compensation expense yet to be recognized		193		$ 193
RSAs | Common stock
Stock Related Compensation
Compensation expense yet to be recognized		2,500		2,500
PSUs
Stock Related Compensation
Compensation expense yet to be recognized		2,100		2,100
Stock Options
Stock Related Compensation
Compensation expense yet to be recognized		$ 401		$ 401
Employees | RSUs
Stock Related Compensation
Award granted (in shares) | shares	176,623
Award weighted average grant date fair value (in dollars per share) | $ / shares	$ 11.28
Employees | PSUs
Stock Related Compensation
Award granted (in shares) | shares	176,623
Award weighted average grant date fair value (in dollars per share) | $ / shares	$ 10.54
Award vesting period (in years)	3 years
Employees | PSUs | Minimum
Stock Related Compensation
Award vesting (as a percent)	0.00%
Employees | PSUs | Maximum
Stock Related Compensation
Award vesting (as a percent)	15000.00%
Director | RSAs
Stock Related Compensation
Award granted (in shares) | shares	33,048
Award weighted average grant date fair value (in dollars per share) | $ / shares	$ 12.80
Award vesting period (in years)	1 year

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Marketable Securities - Available For Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized cost
Residential mortgage-backed securities	$ 1,262,080	$ 1,431,728
Gross unrealized holding gains
Residential mortgage-backed securities, gross unrealized holding gains	33	105
Gross unrealized holding losses
Residential mortgage-backed securities, gross unrealized holding losses	(252,037)	(213,725)
Fair value
Securities available-for-sale	1,010,076	1,218,108
U.S. government and agencies
Amortized cost
Due after one year through five years	20,000	20,000
Due after ten years	50,166	53,152
Gross unrealized holding gains
Due after one year through five years	0	0
Due after ten years	0	0
Gross unrealized holding losses
Due after one year through five years	(1,750)	(1,799)
Due after ten years	(11,890)	(10,761)
Fair value
Due after one year through five years	18,250	18,201
Due after ten years	38,276	42,391
Government-sponsored enterprises
Amortized cost
Due after one year through five years	45,985	993
Due after five years through ten years	434	45,814
Gross unrealized holding gains
Due after one year through five years	0	0
Due after five years through ten years	0	0
Gross unrealized holding losses
Due after one year through five years	(7,502)	(49)
Due after five years through ten years	(11)	(7,557)
Fair value
Due after one year through five years	38,483	944
Due after five years through ten years	423	38,257
Municipal securities
Amortized cost
Due within one year		506
Due after one year through five years	954	986
Due after five years through ten years	21,976	36,332
Due after ten years	62,990	89,631
Gross unrealized holding gains
Due within one year		0
Due after one year through five years	3	21
Due after five years through ten years	0	0
Due after ten years	0	8
Gross unrealized holding losses
Due within one year		(1)
Due after one year through five years	(9)	(13)
Due after five years through ten years	(3,055)	(2,290)
Due after ten years	(14,788)	(13,414)
Fair value
Due within one year		505
Due after one year through five years	948	994
Due after five years through ten years	18,921	34,042
Due after ten years	48,202	76,225
Corporate debt issues
Amortized cost
Due after five years through ten years	8,464	13,540
Gross unrealized holding gains
Due after five years through ten years	0	0
Gross unrealized holding losses
Due after five years through ten years	(1,000)	(562)
Fair value
Due after five years through ten years	7,464	12,978
Residential mortgage-backed securities - agency
Amortized cost
Due within one year	60
Due after one year through five years	25,302
Due after five years through ten years	27,837
Due after ten years	997,912
Residential mortgage-backed securities	1,051,111	1,170,774
Gross unrealized holding gains
Residential mortgage-backed securities, gross unrealized holding gains	30	76
Gross unrealized holding losses
Residential mortgage-backed securities, gross unrealized holding losses	(212,032)	(177,279)
Fair value
Due within one year	59
Due after one year through five years	23,185
Due after five years through ten years	25,424
Due after ten years	790,441
Securities available-for-sale	839,109	993,571
Fixed rate pass-through
Amortized cost
Residential mortgage-backed securities	213,849	227,122
Gross unrealized holding gains
Residential mortgage-backed securities, gross unrealized holding gains	0	35
Gross unrealized holding losses
Residential mortgage-backed securities, gross unrealized holding losses	(35,305)	(31,171)
Fair value
Securities available-for-sale	178,544	195,986
Variable rate pass-through
Amortized cost
Residential mortgage-backed securities	7,501	8,837
Gross unrealized holding gains
Residential mortgage-backed securities, gross unrealized holding gains	2	10
Gross unrealized holding losses
Residential mortgage-backed securities, gross unrealized holding losses	(169)	(184)
Fair value
Securities available-for-sale	7,334	8,663
Fixed rate agency CMOs
Amortized cost
Residential mortgage-backed securities	805,086	906,962
Gross unrealized holding gains
Residential mortgage-backed securities, gross unrealized holding gains	0	0
Gross unrealized holding losses
Residential mortgage-backed securities, gross unrealized holding losses	(175,985)	(145,284)
Fair value
Securities available-for-sale	629,101	761,678
Variable rate agency CMOs
Amortized cost
Residential mortgage-backed securities	24,675	27,853
Gross unrealized holding gains
Residential mortgage-backed securities, gross unrealized holding gains	28	31
Gross unrealized holding losses
Residential mortgage-backed securities, gross unrealized holding losses	(573)	(640)
Fair value
Securities available-for-sale	$ 24,130	$ 27,244

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Marketable Securities - Held To Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized cost
Amortized cost	$ 830,106	$ 881,249
Gross unrealized holding gains
Gross unrealized holding gains	0	0
Gross unrealized holding losses
Gross unrealized holding losses	(147,425)	(129,865)
Fair value
Fair value	682,681	751,384
Debt issued by government-sponsored enterprises
Amortized cost
Due after one year through five years	49,471	29,478
Due after five years through ten years	74,986	94,977
Gross unrealized holding gains
Due after one year through five years	0	0
Due after five years through ten years	0	0
Gross unrealized holding losses
Due after one year through five years	(6,830)	(3,676)
Due after five years through ten years	(14,901)	(18,157)
Fair value
Due after one year through five years	42,641	25,802
Due after five years through ten years	60,085	76,820
Residential mortgage-backed securities - agency
Amortized cost
Due after one year through five years	20,343
Due after five years through ten years	20,225
Amortized cost	705,649	756,794
Gross unrealized holding gains
Gross unrealized holding gains	0	0
Gross unrealized holding losses
Gross unrealized holding losses	(125,694)	(108,032)
Fair value
Due after one year through five years	17,291
Due after five years through ten years	15,484
Fair value	579,955	648,762
Fixed rate pass-through
Amortized cost
Amortized cost	151,411	163,196
Gross unrealized holding gains
Gross unrealized holding gains	0	0
Gross unrealized holding losses
Gross unrealized holding losses	(27,070)	(24,684)
Fair value
Fair value	124,341	138,512
Variable rate pass-through
Amortized cost
Amortized cost	468	542
Gross unrealized holding gains
Gross unrealized holding gains	0	0
Gross unrealized holding losses
Gross unrealized holding losses	(8)	(12)
Fair value
Fair value	460	530
Fixed rate agency CMOs
Amortized cost
Amortized cost	553,241	592,527
Gross unrealized holding gains
Gross unrealized holding gains	0	0
Gross unrealized holding losses
Gross unrealized holding losses	(98,606)	(83,325)
Fair value
Fair value	454,635	509,202
Variable rate agency CMOs
Amortized cost
Amortized cost	529	529
Gross unrealized holding gains
Gross unrealized holding gains	0	0
Gross unrealized holding losses
Gross unrealized holding losses	(10)	(11)
Fair value
Fair value	$ 519	$ 518

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Marketable Securities - Available-for-sale, by Contractual Maturity (Details) - Residential mortgage-backed securities - agency $ in Thousands	Sep. 30, 2023 USD ($)
Amortized cost
Due within one year	$ 60
Due after one year through five years	25,302
Due after five years through ten years	27,837
Due after ten years	997,912
Total marketable securities available-for-sale	1,051,111
Fair value
Due within one year	59
Due after one year through five years	23,185
Due after five years through ten years	25,424
Due after ten years	790,441
Total marketable securities available-for-sale	$ 839,109

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Marketable Securities - Held To Maturity, by Contractual Maturity (Details) - Residential mortgage-backed securities - agency $ in Thousands	Sep. 30, 2023 USD ($)
Amortized cost
Due after one year through five years	$ 20,343
Due after five years through ten years	20,225
Due after ten years	665,081
Total marketable securities held-to-maturity	705,649
Fair value
Due after one year through five years	17,291
Due after five years through ten years	15,484
Due after ten years	547,180
Total marketable securities held-to-maturity	$ 579,955

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Marketable Securities - Fair Value of and Gross Unrealized Losses on Investment Securities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) position	Dec. 31, 2022 USD ($)
Marketable securities available-for-sale
Less than 12 months - Fair value	$ 34,484	$ 448,576
Less than 12 months - Unrealized loss	(1,808)	(27,487)
12 months or more - Fair value	1,655,118	1,509,214
12 months or more - Unrealized loss	(397,654)	(316,103)
Total - Fair value	1,689,602	1,957,790
Total - Unrealized loss	$ (399,462)	(343,590)
Number of investment positions with unrealized losses | position	548
U.S. government and agencies
Marketable securities available-for-sale
Less than 12 months - Fair value	$ 423	1,735
Less than 12 months - Unrealized loss	(11)	(82)
12 months or more - Fair value	197,736	200,679
12 months or more - Unrealized loss	(42,873)	(41,917)
Total - Fair value	198,159	202,414
Total - Unrealized loss	(42,884)	(41,999)
Municipal securities
Marketable securities available-for-sale
Less than 12 months - Fair value	8,412	60,676
Less than 12 months - Unrealized loss	(526)	(4,047)
12 months or more - Fair value	59,233	44,493
12 months or more - Unrealized loss	(17,326)	(11,671)
Total - Fair value	67,645	105,169
Total - Unrealized loss	(17,852)	(15,718)
Corporate debt issues
Marketable securities available-for-sale
Less than 12 months - Fair value	0	12,979
Less than 12 months - Unrealized loss	0	(562)
12 months or more - Fair value	7,464	0
12 months or more - Unrealized loss	(1,000)	0
Total - Fair value	7,464	12,979
Total - Unrealized loss	(1,000)	(562)
Residential mortgage-backed securities - agency | Agency CMOs
Marketable securities available-for-sale
Less than 12 months - Fair value	25,649	373,186
Less than 12 months - Unrealized loss	(1,271)	(22,796)
12 months or more - Fair value	1,390,685	1,264,042
12 months or more - Unrealized loss	(336,455)	(262,515)
Total - Fair value	1,416,334	1,637,228
Total - Unrealized loss	$ (337,726)	$ (285,311)

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Marketable Securities - Credit Quality of Held To Maturity Securities (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Held-to-maturity securities	$ 830,106
Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Held-to-maturity securities	705,649
U.S. government and agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Held-to-maturity securities	124,457
AA+
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Held-to-maturity securities	830,106
AA+ | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Held-to-maturity securities	705,649
AA+ | U.S. government and agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Held-to-maturity securities	$ 124,457

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Loans Receivable - Summary of Originated and Acquired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	$ 11,310,273		$ 10,920,452
Allowance for credit losses	(124,841)	$ (124,423)	(118,036)	$ (109,819)	$ (98,355)	$ (102,241)
Total loans receivable, net	11,185,432		10,802,416
Loans held-for-sale	10,592		9,913
Unearned income, unamortized premiums and discounts and deferred fees and costs	71,500		76,100
Personal Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	6,886,647		6,964,928
Allowance for credit losses	(50,562)	(50,851)	(48,887)	(41,244)	(37,907)	(31,040)
Personal Banking | Residential mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	3,472,763		3,498,599
Allowance for credit losses	(17,090)	(17,556)	(19,261)	(17,967)	(16,158)	(7,373)
Loans held-for-sale	10,200		9,900
Personal Banking | Home equity loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	1,258,765		1,297,674
Allowance for credit losses	(5,044)	(5,002)	(5,902)	(5,448)	(5,232)	(5,300)
Personal Banking | Vehicle loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	2,039,699		2,056,783
Allowance for credit losses	(27,226)	(27,283)	(23,059)	(17,004)	(15,738)	(15,483)
Personal Banking | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	115,420		111,872
Allowance for credit losses	(1,202)	(1,010)	(665)	(825)	(779)	(2,884)
Commercial Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	4,423,626		3,955,524
Allowance for credit losses	(74,279)	(73,572)	(69,149)	(68,575)	(60,448)	(71,201)
Commercial Banking | Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	2,553,644		2,448,028
Allowance for credit losses	(48,582)	(50,056)	(44,506)	(49,649)	(39,641)	(54,141)
Loans held-for-sale	435		0
Commercial Banking | Commercial real estate loans - owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	369,373		375,527
Allowance for credit losses	(3,479)	(3,498)	(4,004)	(4,087)	(4,095)	(3,883)
Commercial Banking | Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	1,500,609		1,131,969
Allowance for credit losses	(22,218)	$ (20,018)	(20,639)	$ (14,839)	$ (16,712)	$ (13,177)
Originated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	10,620,595		10,089,414
Allowance for credit losses	(116,596)		(107,379)
Total loans receivable, net	10,503,999		9,982,035
Originated | Personal Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	6,527,159		6,529,189
Originated | Personal Banking | Residential mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	3,322,136		3,327,879
Originated | Personal Banking | Home equity loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	1,126,675		1,131,641
Originated | Personal Banking | Vehicle loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	1,969,029		1,965,385
Originated | Personal Banking | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	109,319		104,284
Originated | Commercial Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	4,093,436		3,560,225
Originated | Commercial Banking | Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	2,286,563		2,135,607
Originated | Commercial Banking | Commercial real estate loans - owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	343,714		341,704
Originated | Commercial Banking | Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	1,463,159		1,082,914
Acquired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	689,678		831,038
Allowance for credit losses	(8,245)		(10,657)
Total loans receivable, net	681,433		820,381
Acquired | Personal Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	359,488		435,739
Acquired | Personal Banking | Residential mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	150,627		170,720
Acquired | Personal Banking | Home equity loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	132,090		166,033
Acquired | Personal Banking | Vehicle loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	70,670		91,398
Acquired | Personal Banking | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	6,101		7,588
Acquired | Commercial Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	330,190		395,299
Acquired | Commercial Banking | Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	267,081		312,421
Acquired | Commercial Banking | Commercial real estate loans - owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	25,659		33,823
Acquired | Commercial Banking | Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable, gross	$ 37,450		$ 49,055

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Loans Receivable - Changes in the Allowance for Losses on Loans Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Changes in allowance for losses on allocated loans receivable
Beginning balance	$ 124,423	$ 98,355	$ 118,036	$ 102,241
Current period provision	3,983	7,689	14,863	8,837
Charge-offs	(5,346)	(4,614)	(15,217)	(16,698)
Recoveries	1,781	8,389	6,733	15,439
Ending balance	124,841	109,819	124,841	109,819
Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			426
Off-Balance sheet exposure
Changes in allowance for losses on allocated loans receivable
Beginning balance	15,959	7,450	12,913	2,458
Current period provision	(2,981)	3,585	65	8,577
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	12,978	11,035	12,978	11,035
Off-Balance sheet exposure | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Small business equipment finance loan pool
Changes in allowance for losses on allocated loans receivable
Loans purchased				182,800
One-to-four family jumbo mortgage loan pool
Changes in allowance for losses on allocated loans receivable
Loans purchased				188,300
Personal Banking
Changes in allowance for losses on allocated loans receivable
Beginning balance	50,851	37,907	48,887	31,040
Current period provision	2,251	4,733	7,978	14,096
Charge-offs	(3,576)	(3,042)	(10,233)	(8,700)
Recoveries	1,036	1,646	3,930	4,808
Ending balance	50,562	41,244	50,562	41,244
Personal Banking | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Personal Banking | Off-Balance sheet exposure
Changes in allowance for losses on allocated loans receivable
Beginning balance	68	70	78	41
Current period provision	2	8	(8)	37
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	70	78	70	78
Personal Banking | Off-Balance sheet exposure | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Personal Banking | Residential mortgage loans
Changes in allowance for losses on allocated loans receivable
Beginning balance	17,556	16,158	19,261	7,373
Current period provision	(370)	1,646	(2,047)	11,331
Charge-offs	(171)	(166)	(923)	(1,487)
Recoveries	75	329	799	750
Ending balance	17,090	17,967	17,090	17,967
Personal Banking | Residential mortgage loans | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Personal Banking | Residential mortgage loans | Off-Balance sheet exposure
Changes in allowance for losses on allocated loans receivable
Beginning balance	4	6	4	2
Current period provision	(1)	(2)	(1)	2
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	3	4	3	4
Personal Banking | Residential mortgage loans | Off-Balance sheet exposure | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Personal Banking | Home equity loans
Changes in allowance for losses on allocated loans receivable
Beginning balance	5,002	5,232	5,902	5,300
Current period provision	201	341	(705)	127
Charge-offs	(320)	(535)	(719)	(1,237)
Recoveries	161	410	566	1,258
Ending balance	5,044	5,448	5,044	5,448
Personal Banking | Home equity loans | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Personal Banking | Home equity loans | Off-Balance sheet exposure
Changes in allowance for losses on allocated loans receivable
Beginning balance	64	64	74	39
Current period provision	3	10	(7)	35
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	67	74	67	74
Personal Banking | Home equity loans | Off-Balance sheet exposure | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Personal Banking | Vehicle loans
Changes in allowance for losses on allocated loans receivable
Beginning balance	27,283	15,738	23,059	15,483
Current period provision	984	1,576	7,267	2,159
Charge-offs	(1,524)	(936)	(4,731)	(2,517)
Recoveries	483	626	1,631	1,879
Ending balance	27,226	17,004	27,226	17,004
Personal Banking | Vehicle loans | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Personal Banking | Consumer loans
Changes in allowance for losses on allocated loans receivable
Beginning balance	1,010	779	665	2,884
Current period provision	1,436	1,170	3,463	479
Charge-offs	(1,561)	(1,405)	(3,860)	(3,459)
Recoveries	317	281	934	921
Ending balance	1,202	825	1,202	825
Personal Banking | Consumer loans | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Commercial Banking
Changes in allowance for losses on allocated loans receivable
Beginning balance	73,572	60,448	69,149	71,201
Current period provision	1,732	2,956	6,885	(5,259)
Charge-offs	(1,770)	(1,572)	(4,984)	(7,998)
Recoveries	745	6,743	2,803	10,631
Ending balance	74,279	68,575	74,279	68,575
Commercial Banking | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			426
Commercial Banking | Off-Balance sheet exposure
Changes in allowance for losses on allocated loans receivable
Beginning balance	15,891	7,380	12,835	2,417
Current period provision	(2,983)	3,577	73	8,540
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	12,908	10,957	12,908	10,957
Commercial Banking | Off-Balance sheet exposure | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Commercial Banking | Commercial real estate loans
Changes in allowance for losses on allocated loans receivable
Beginning balance	50,056	39,641	44,506	54,141
Current period provision	(1,110)	5,117	3,587	(6,465)
Charge-offs	(484)	(1,329)	(1,556)	(6,745)
Recoveries	120	6,220	1,619	8,718
Ending balance	48,582	49,649	48,582	49,649
Commercial Banking | Commercial real estate loans | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			426
Commercial Banking | Commercial real estate loans | Off-Balance sheet exposure
Changes in allowance for losses on allocated loans receivable
Beginning balance	7,655	3,463	5,375	881
Current period provision	(2,858)	1,919	(578)	4,501
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	4,797	5,382	4,797	5,382
Commercial Banking | Commercial real estate loans | Off-Balance sheet exposure | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Commercial Banking | Commercial real estate loans - owner occupied
Changes in allowance for losses on allocated loans receivable
Beginning balance	3,498	4,095	4,004	3,883
Current period provision	(30)	(34)	(515)	167
Charge-offs	0	0	(68)	0
Recoveries	11	26	58	37
Ending balance	3,479	4,087	3,479	4,087
Commercial Banking | Commercial real estate loans - owner occupied | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Commercial Banking | Commercial real estate loans - owner occupied | Off-Balance sheet exposure
Changes in allowance for losses on allocated loans receivable
Beginning balance	320	328	379	142
Current period provision	(180)	(41)	(239)	145
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	140	287	140	287
Commercial Banking | Commercial real estate loans - owner occupied | Off-Balance sheet exposure | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Commercial Banking | Commercial loans
Changes in allowance for losses on allocated loans receivable
Beginning balance	20,018	16,712	20,639	13,177
Current period provision	2,872	(2,127)	3,813	1,039
Charge-offs	(1,286)	(243)	(3,360)	(1,253)
Recoveries	614	497	1,126	1,876
Ending balance	22,218	14,839	22,218	14,839
Commercial Banking | Commercial loans | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			0
Commercial Banking | Commercial loans | Off-Balance sheet exposure
Changes in allowance for losses on allocated loans receivable
Beginning balance	7,916	3,589	7,081	1,394
Current period provision	55	1,699	890	3,894
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	$ 7,971	$ 5,288	7,971	$ 5,288
Commercial Banking | Commercial loans | Off-Balance sheet exposure | Cumulative Effect, Period of Adoption, Adjustment
Changes in allowance for losses on allocated loans receivable
Beginning balance			$ 0

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Loans Receivable - Loan Portfolio by Portfolio Segment and by Class of Financing Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	$ 11,310,273		$ 10,920,452
Allowance for credit losses	124,841	$ 124,423	118,036	$ 109,819	$ 98,355	$ 102,241
Nonaccrual loans	76,654		81,236			158,471
Loans 90 days past due and accruing	728		744
TDRs			40,681
Allowance related to TDRs			2,400
Additional commitments to customers with loans classified as TDRs			404
Non-accrual TDRs			29,200	30,406
Personal Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	6,886,647		6,964,928
Allowance for credit losses	50,562	50,851	48,887	41,244	37,907	31,040
Nonaccrual loans	17,289		15,746			20,098
Loans 90 days past due and accruing	690		407
TDRs			7,749
Allowance related to TDRs			1,615
Additional commitments to customers with loans classified as TDRs			0
Personal Banking | Residential mortgage loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	3,472,763		3,498,599
Allowance for credit losses	17,090	17,556	19,261	17,967	16,158	7,373
Nonaccrual loans	9,760		7,574			10,402
Loans 90 days past due and accruing	0		0
TDRs			6,279
Allowance related to TDRs			1,069
Additional commitments to customers with loans classified as TDRs			0
Personal Banking | Home equity loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	1,258,765		1,297,674
Allowance for credit losses	5,044	5,002	5,902	5,448	5,232	5,300
Nonaccrual loans	3,431		4,145			5,758
Loans 90 days past due and accruing	133		0
TDRs			1,470
Allowance related to TDRs			546
Additional commitments to customers with loans classified as TDRs			0
Personal Banking | Vehicle loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	2,039,699		2,056,783
Allowance for credit losses	27,226	27,283	23,059	17,004	15,738	15,483
Nonaccrual loans	3,817		3,771			3,263
Loans 90 days past due and accruing	57		2
TDRs			0
Allowance related to TDRs			0
Additional commitments to customers with loans classified as TDRs			0
Personal Banking | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	115,420		111,872
Allowance for credit losses	1,202	1,010	665	825	779	2,884
Nonaccrual loans	281		256			675
Loans 90 days past due and accruing	500		405
TDRs			0
Allowance related to TDRs			0
Additional commitments to customers with loans classified as TDRs			0
Commercial Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	4,423,626		3,955,524
Allowance for credit losses	74,279	73,572	69,149	68,575	60,448	71,201
Nonaccrual loans	59,365		65,490			138,373
Loans 90 days past due and accruing	38		337
TDRs			32,932
Allowance related to TDRs			785
Additional commitments to customers with loans classified as TDRs			404
Commercial Banking | Commercial real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	2,553,644		2,448,028
Allowance for credit losses	48,582	50,056	44,506	49,649	39,641	54,141
Nonaccrual loans	54,109		62,239			129,666
Loans 90 days past due and accruing	0		0
TDRs			31,980
Allowance related to TDRs			638
Additional commitments to customers with loans classified as TDRs			400
Commercial Banking | Commercial real estate loans - owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	369,373		375,527
Allowance for credit losses	3,479	3,498	4,004	4,087	4,095	3,883
Nonaccrual loans	1,071		624			1,233
Loans 90 days past due and accruing	0		0
TDRs			94
Allowance related to TDRs			31
Additional commitments to customers with loans classified as TDRs			0
Commercial Banking | Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	1,500,609		1,131,969
Allowance for credit losses	22,218	$ 20,018	20,639	$ 14,839	$ 16,712	13,177
Nonaccrual loans	4,185		2,627			$ 7,474
Loans 90 days past due and accruing	$ 38		337
TDRs			858
Allowance related to TDRs			116
Additional commitments to customers with loans classified as TDRs			$ 4

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Loans Receivable - Composition of Impaired Loans by Portfolio Segment and Class of Financing Receivable (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		$ 81,236	$ 158,471
Nonaccrual loans with an allowance	$ 42,878	42,878	38,722
Nonaccrual loans with no allowance	33,776	33,776	42,514
Nonaccrual loans at ending balance	76,654	76,654	81,236
Loans 90 days past due and accruing	728	728	744
Interest income, accrual method	0	0	678,000
Amortized cost basis of collateral-dependent loans	51,562	51,562	58,110
Real estate
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans	51,562	51,562	57,900
Equipment
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			210
Personal Banking
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		15,746	20,098
Nonaccrual loans with an allowance	16,141	16,141	13,892
Nonaccrual loans with no allowance	1,148	1,148	1,854
Nonaccrual loans at ending balance	17,289	17,289	15,746
Loans 90 days past due and accruing	690	690	407
Amortized cost basis of collateral-dependent loans			669
Personal Banking | Real estate
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			669
Personal Banking | Equipment
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			0
Personal Banking | Residential mortgage loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		7,574	10,402
Nonaccrual loans with an allowance	9,760	9,760	7,574
Nonaccrual loans with no allowance	0	0	0
Nonaccrual loans at ending balance	9,760	9,760	7,574
Loans 90 days past due and accruing	0	0	0
Amortized cost basis of collateral-dependent loans			569
Personal Banking | Residential mortgage loans | Real estate
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			569
Personal Banking | Residential mortgage loans | Equipment
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			0
Personal Banking | Home equity loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		4,145	5,758
Nonaccrual loans with an allowance	3,262	3,262	3,887
Nonaccrual loans with no allowance	169	169	258
Nonaccrual loans at ending balance	3,431	3,431	4,145
Loans 90 days past due and accruing	133	133	0
Amortized cost basis of collateral-dependent loans			100
Personal Banking | Home equity loans | Real estate
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			100
Personal Banking | Home equity loans | Equipment
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			0
Personal Banking | Vehicle loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		3,771	3,263
Nonaccrual loans with an allowance	2,838	2,838	2,175
Nonaccrual loans with no allowance	979	979	1,596
Nonaccrual loans at ending balance	3,817	3,817	3,771
Loans 90 days past due and accruing	57	57	2
Personal Banking | Consumer loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		256	675
Nonaccrual loans with an allowance	281	281	256
Nonaccrual loans with no allowance	0	0	0
Nonaccrual loans at ending balance	281	281	256
Loans 90 days past due and accruing	500	500	405
Commercial Banking
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		65,490	138,373
Nonaccrual loans with an allowance	26,737	26,737	24,830
Nonaccrual loans with no allowance	32,628	32,628	40,660
Nonaccrual loans at ending balance	59,365	59,365	65,490
Loans 90 days past due and accruing	38	38	337
Amortized cost basis of collateral-dependent loans	51,562	51,562	57,441
Commercial Banking | Real estate
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans	51,562	51,562	57,231
Commercial Banking | Equipment
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			210
Commercial Banking | Commercial real estate loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		62,239	129,666
Nonaccrual loans with an allowance	21,838	21,838	22,182
Nonaccrual loans with no allowance	32,271	32,271	40,057
Nonaccrual loans at ending balance	54,109	54,109	62,239
Loans 90 days past due and accruing	0	0	0
Amortized cost basis of collateral-dependent loans	51,402	51,402	57,056
Commercial Banking | Commercial real estate loans | Real estate
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans	51,402	51,402	57,056
Commercial Banking | Commercial real estate loans | Equipment
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			0
Commercial Banking | Commercial real estate loans - owner occupied
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		624	1,233
Nonaccrual loans with an allowance	1,071	1,071	624
Nonaccrual loans with no allowance	0	0	0
Nonaccrual loans at ending balance	1,071	1,071	624
Loans 90 days past due and accruing	0	0	0
Commercial Banking | Commercial loans
Composition of impaired loans by portfolio segment and by class of financing receivable
Nonaccrual loans at beginning balance		2,627	7,474
Nonaccrual loans with an allowance	3,828	3,828	2,024
Nonaccrual loans with no allowance	357	357	603
Nonaccrual loans at ending balance	4,185	4,185	2,627
Loans 90 days past due and accruing	38	38	337
Amortized cost basis of collateral-dependent loans	160	160	385
Commercial Banking | Commercial loans | Real estate
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans	$ 160	$ 160	175
Commercial Banking | Commercial loans | Equipment
Composition of impaired loans by portfolio segment and by class of financing receivable
Amortized cost basis of collateral-dependent loans			$ 210

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Loans Receivable - Amortized Cost Basis of Loans Modified (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)
Troubled debt restructurings
Total class of financing receivable	0.00%	0.01%
Committed to lend additional amounts	$ 31	$ 31
Maturity date
Troubled debt restructurings
Loans modified in period	329	1,593
Combination term extension and interest rate reduction
Troubled debt restructurings
Loans modified in period	$ 85	$ 88
Personal Banking
Troubled debt restructurings
Total class of financing receivable	0.01%	0.01%
Personal Banking | Maturity date
Troubled debt restructurings
Loans modified in period	$ 314	$ 733
Personal Banking | Combination term extension and interest rate reduction
Troubled debt restructurings
Loans modified in period	$ 85	$ 88
Personal Banking | Residential mortgage loans
Troubled debt restructurings
Total class of financing receivable	0.01%	0.01%
Personal Banking | Residential mortgage loans | Maturity date
Troubled debt restructurings
Loans modified in period	$ 192	$ 450
Personal Banking | Residential mortgage loans | Combination term extension and interest rate reduction
Troubled debt restructurings
Loans modified in period	$ 0	$ 0
Personal Banking | Home equity loans
Troubled debt restructurings
Total class of financing receivable	0.02%	0.03%
Personal Banking | Home equity loans | Maturity date
Troubled debt restructurings
Loans modified in period	$ 122	$ 283
Personal Banking | Home equity loans | Combination term extension and interest rate reduction
Troubled debt restructurings
Loans modified in period	$ 85	$ 85
Personal Banking | Consumer loans
Troubled debt restructurings
Total class of financing receivable	0.00%	0.00%
Personal Banking | Consumer loans | Maturity date
Troubled debt restructurings
Loans modified in period	$ 0	$ 0
Personal Banking | Consumer loans | Combination term extension and interest rate reduction
Troubled debt restructurings
Loans modified in period	$ 0	$ 3
Commercial Banking
Troubled debt restructurings
Total class of financing receivable	0.00%	0.02%
Commercial Banking | Maturity date
Troubled debt restructurings
Loans modified in period	$ 15	$ 860
Commercial Banking | Combination term extension and interest rate reduction
Troubled debt restructurings
Loans modified in period	$ 0	$ 0
Commercial Banking | Commercial real estate loans
Troubled debt restructurings
Total class of financing receivable	0.00%	0.01%
Commercial Banking | Commercial real estate loans | Maturity date
Troubled debt restructurings
Loans modified in period	$ 0	$ 197
Commercial Banking | Commercial real estate loans | Combination term extension and interest rate reduction
Troubled debt restructurings
Loans modified in period	$ 0	$ 0
Commercial Banking | Commercial loans
Troubled debt restructurings
Total class of financing receivable	0.00%	0.04%
Commercial Banking | Commercial loans | Maturity date
Troubled debt restructurings
Loans modified in period	$ 15	$ 663
Commercial Banking | Commercial loans | Combination term extension and interest rate reduction
Troubled debt restructurings
Loans modified in period	$ 0	$ 0

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Loans Receivable - Financing Receivable Weighted Average Modified Period (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Troubled debt restructurings
Weighted-average term extension in months	135 months	68 months
Weighted-average interest rate reduction	5.00%	17.00%
Personal Banking
Troubled debt restructurings
Weighted-average term extension in months	140 months	126 months
Weighted-average interest rate reduction	5.00%	17.00%
Personal Banking | Residential mortgage loans
Troubled debt restructurings
Weighted-average term extension in months	169 months	149 months
Weighted-average interest rate reduction	0.00%
Personal Banking | Home equity loans
Troubled debt restructurings
Weighted-average term extension in months	112 months	96 months
Weighted-average interest rate reduction	5.00%	5.00%
Personal Banking | Consumer loans
Troubled debt restructurings
Weighted-average term extension in months	0 years	356 months
Weighted-average interest rate reduction	0.00%	12.00%
Commercial Banking
Troubled debt restructurings
Weighted-average term extension in months	23 months	13 months
Weighted-average interest rate reduction	0.00%
Commercial Banking | Commercial real estate loans
Troubled debt restructurings
Weighted-average term extension in months	0 years	25 months
Weighted-average interest rate reduction	0.00%
Commercial Banking | Commercial loans
Troubled debt restructurings
Weighted-average term extension in months	23 months	9 months
Weighted-average interest rate reduction	0.00%

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Loans Receivable - Performance of Loans (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Current
Troubled debt restructurings
Loans modified in period	$ 895
30-59 days delinquent
Troubled debt restructurings
Loans modified in period	15
90 days or greater delinquent
Troubled debt restructurings
Loans modified in period	771
Personal Banking | Current
Troubled debt restructurings
Loans modified in period	821
Personal Banking | Residential mortgage loans | Current
Troubled debt restructurings
Loans modified in period	450
Personal Banking | Home equity loans | Current
Troubled debt restructurings
Loans modified in period	368
Personal Banking | Consumer loans | Current
Troubled debt restructurings
Loans modified in period	3
Commercial Banking | Current
Troubled debt restructurings
Loans modified in period	74
Commercial Banking | 30-59 days delinquent
Troubled debt restructurings
Loans modified in period	15
Commercial Banking | 90 days or greater delinquent
Troubled debt restructurings
Loans modified in period	771
Commercial Banking | Commercial real estate loans | Current
Troubled debt restructurings
Loans modified in period	74
Commercial Banking | Commercial real estate loans | 90 days or greater delinquent
Troubled debt restructurings
Loans modified in period	123
Commercial Banking | Commercial loans | 30-59 days delinquent
Troubled debt restructurings
Loans modified in period	15
Commercial Banking | Commercial loans | 90 days or greater delinquent
Troubled debt restructurings
Loans modified in period	$ 648

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Loans Receivable - Loans Modified with Payment Default (Details) - Maturity date $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Financing Receivable, Modified, Subsequent Default [Line Items]
Loans with payment default and modified	$ 771
Commercial Banking
Financing Receivable, Modified, Subsequent Default [Line Items]
Loans with payment default and modified	771
Commercial Banking | Commercial real estate loans
Financing Receivable, Modified, Subsequent Default [Line Items]
Loans with payment default and modified	123
Commercial Banking | Commercial loans
Financing Receivable, Modified, Subsequent Default [Line Items]
Loans with payment default and modified	$ 648

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Loans Receivable - Roll Forward of Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($) contract	Sep. 30, 2022 USD ($) contract	Dec. 31, 2022 USD ($)
Number of Contracts
Beginning TDR balance (contract) | contract	128	134
New TDRs (contract) | contract	6	8
Re-modified TDRs (contract) | contract	4	10
Net paydowns (contract) | contract	0	0
Ending TDR balance (contract) | contract	127	127
Amount
Beginning TDR balance	$ 54,237	$ 30,288
New TDRs	221	25,626
Re-modified TDRs	977	1,178
Net paydowns	(810)	(1,609)
Ending TDR balance	46,750	46,750
Accruing TDRs	16,344	16,344
Non-accrual TDRs	$ 30,406	$ 30,406	$ 29,200
Residential mortgage loans
Number of Contracts
Charge-offs contract) | contract	0	1
Paid-off loans (contract) | contract	1	2
Amount
Charge-offs	$ 0	$ (3)
Paid-off loans	$ (35)	$ (236)
Home equity loans
Number of Contracts
Paid-off loans (contract) | contract	1	3
Amount
Paid-off loans	$ (11)	$ (88)
Commercial real estate loans
Number of Contracts
Paid-off loans (contract) | contract	1	4
Amount
Paid-off loans	$ (3,349)	$ (3,718)
Commercial real estate loans - owner occupied
Number of Contracts
Paid-off loans (contract) | contract		1
Amount
Paid-off loans		$ (44)
Commercial loans
Number of Contracts
Paid-off loans (contract) | contract	3	4
Amount
Paid-off loans	$ (3,459)	$ (3,466)

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Loans Receivable - Troubled Debt Restructuring (Including Re-Modified TDRs) by Portfolio Segment and by Class of Financing Receivable (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($) contract	Sep. 30, 2022 contract	Sep. 30, 2022 USD ($)	Sep. 30, 2022 shareholder
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | contract	10	18
Recorded investment at the time of modification	$ 1,249		$ 38,458
Current recorded investment	1,198		26,804
Current allowance	$ 147		160
Personal Banking
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	7	7		7
Recorded investment at the time of modification	$ 307		307
Current recorded investment	298		298
Current allowance	$ 38		38
Personal Banking | Residential mortgage loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	2	2		2
Recorded investment at the time of modification	$ 147		147
Current recorded investment	144		144
Current allowance	$ 15		15
Personal Banking | Home equity loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts	5	5		5
Recorded investment at the time of modification	$ 160		160
Current recorded investment	154		154
Current allowance	$ 23		23
Commercial Banking
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | contract	3	11
Recorded investment at the time of modification	$ 942		38,151
Current recorded investment	900		26,506
Current allowance	$ 109		122
Commercial Banking | Commercial real estate loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | contract	1	5
Recorded investment at the time of modification	$ 610		34,295
Current recorded investment	609		26,212
Current allowance	$ 89		102
Commercial Banking | Commercial loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of contracts | contract	2	6
Recorded investment at the time of modification	$ 332		3,856
Current recorded investment	291		294
Current allowance	$ 20		$ 20

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Loans Receivable - Troubled Debt Restructurings by Type of Modification (Details) $ in Thousands	3 Months Ended	9 Months Ended			12 Months Ended
	Sep. 30, 2022 USD ($) contract	Sep. 30, 2022 contract	Sep. 30, 2022 USD ($)	Sep. 30, 2022 shareholder	Sep. 30, 2022 contract
Troubled debt restructurings
Number of contracts | contract	10	18
Total	$ 1,198		$ 26,804
Number of TDRs modified that subsequently defaulted (in contracts) | contract					0
Rate
Troubled debt restructurings
Total			4,166
Maturity date
Troubled debt restructurings
Total	$ 1,198		22,638
Personal Banking
Troubled debt restructurings
Number of contracts	7	7		7
Total	$ 298		298
Personal Banking | Rate
Troubled debt restructurings
Total			0
Personal Banking | Maturity date
Troubled debt restructurings
Total	$ 298		298
Personal Banking | Residential mortgage loans
Troubled debt restructurings
Number of contracts	2	2		2
Total	$ 144		144
Personal Banking | Residential mortgage loans | Rate
Troubled debt restructurings
Total			0
Personal Banking | Residential mortgage loans | Maturity date
Troubled debt restructurings
Total	$ 144		144
Personal Banking | Home equity loans
Troubled debt restructurings
Number of contracts	5	5		5
Total	$ 154		154
Personal Banking | Home equity loans | Rate
Troubled debt restructurings
Total			0
Personal Banking | Home equity loans | Maturity date
Troubled debt restructurings
Total	$ 154		154
Commercial Banking
Troubled debt restructurings
Number of contracts | contract	3	11
Total	$ 900		26,506
Commercial Banking | Rate
Troubled debt restructurings
Total			4,166
Commercial Banking | Maturity date
Troubled debt restructurings
Total	$ 900		22,340
Commercial Banking | Commercial real estate loans
Troubled debt restructurings
Number of contracts | contract	1	5
Total	$ 609		26,212
Commercial Banking | Commercial real estate loans | Rate
Troubled debt restructurings
Total			4,166
Commercial Banking | Commercial real estate loans | Maturity date
Troubled debt restructurings
Total	$ 609		22,046
Commercial Banking | Commercial loans
Troubled debt restructurings
Number of contracts | contract	2	6
Total	$ 291		294
Commercial Banking | Commercial loans | Rate
Troubled debt restructurings
Total			0
Commercial Banking | Commercial loans | Maturity date
Troubled debt restructurings
Total	$ 291		$ 294

XML

Loans Receivable - Loan Delinquencies (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Loan payment delinquencies
Total loans receivable	$ 11,310,273	$ 10,920,452
90 days or greater delinquent and accruing	728	744
Total delinquency
Loan payment delinquencies
Total loans receivable	57,233	85,941
30-59 days delinquent
Loan payment delinquencies
Total loans receivable	21,412	52,235
60-89 days delinquent
Loan payment delinquencies
Total loans receivable	12,012	13,100
90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	23,809	20,606
Current
Loan payment delinquencies
Total loans receivable	11,253,040	10,834,511
Personal Banking
Loan payment delinquencies
Total loans receivable	6,886,647	6,964,928
90 days or greater delinquent and accruing	690	407
Personal Banking | Total delinquency
Loan payment delinquencies
Total loans receivable	37,518	66,097
Personal Banking | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	15,154	45,579
Personal Banking | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	9,443	9,608
Personal Banking | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	12,921	10,910
Personal Banking | Current
Loan payment delinquencies
Total loans receivable	6,849,129	6,898,831
Personal Banking | Residential mortgage loans
Loan payment delinquencies
Total loans receivable	3,472,763	3,498,599
90 days or greater delinquent and accruing	0	0
Personal Banking | Residential mortgage loans | Total delinquency
Loan payment delinquencies
Total loans receivable	13,663	40,624
Personal Banking | Residential mortgage loans | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	573	29,487
Personal Banking | Residential mortgage loans | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	5,395	5,563
Personal Banking | Residential mortgage loans | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	7,695	5,574
Personal Banking | Residential mortgage loans | Current
Loan payment delinquencies
Total loans receivable	3,459,100	3,457,975
Personal Banking | Home equity loans
Loan payment delinquencies
Total loans receivable	1,258,765	1,297,674
90 days or greater delinquent and accruing	133	0
Personal Banking | Home equity loans | Total delinquency
Loan payment delinquencies
Total loans receivable	8,254	9,889
Personal Banking | Home equity loans | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	4,707	6,657
Personal Banking | Home equity loans | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	1,341	975
Personal Banking | Home equity loans | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	2,206	2,257
Personal Banking | Home equity loans | Current
Loan payment delinquencies
Total loans receivable	1,250,511	1,287,785
Personal Banking | Vehicle loans
Loan payment delinquencies
Total loans receivable	2,039,699	2,056,783
90 days or greater delinquent and accruing	57	2
Personal Banking | Vehicle loans | Total delinquency
Loan payment delinquencies
Total loans receivable	13,808	13,918
Personal Banking | Vehicle loans | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	9,122	8,677
Personal Banking | Vehicle loans | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	2,412	2,770
Personal Banking | Vehicle loans | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	2,274	2,471
Personal Banking | Vehicle loans | Current
Loan payment delinquencies
Total loans receivable	2,025,891	2,042,865
Personal Banking | Consumer loans
Loan payment delinquencies
Total loans receivable	115,420	111,872
90 days or greater delinquent and accruing	500	405
Personal Banking | Consumer loans | Total delinquency
Loan payment delinquencies
Total loans receivable	1,793	1,666
Personal Banking | Consumer loans | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	752	758
Personal Banking | Consumer loans | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	295	300
Personal Banking | Consumer loans | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	746	608
Personal Banking | Consumer loans | Current
Loan payment delinquencies
Total loans receivable	113,627	110,206
Commercial Banking
Loan payment delinquencies
Total loans receivable	4,423,626	3,955,524
90 days or greater delinquent and accruing	38	337
Commercial Banking | Total delinquency
Loan payment delinquencies
Total loans receivable	19,715	19,844
Commercial Banking | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	6,258	6,656
Commercial Banking | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	2,569	3,492
Commercial Banking | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	10,888	9,696
Commercial Banking | Current
Loan payment delinquencies
Total loans receivable	4,403,911	3,935,680
Commercial Banking | Commercial real estate loans
Loan payment delinquencies
Total loans receivable	2,553,644	2,448,028
90 days or greater delinquent and accruing	0	0
Commercial Banking | Commercial real estate loans | Total delinquency
Loan payment delinquencies
Total loans receivable	12,781	13,913
Commercial Banking | Commercial real estate loans | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	3,411	3,947
Commercial Banking | Commercial real estate loans | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	1,328	2,377
Commercial Banking | Commercial real estate loans | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	8,042	7,589
Commercial Banking | Commercial real estate loans | Current
Loan payment delinquencies
Total loans receivable	2,540,863	2,434,115
Commercial Banking | Commercial real estate loans - owner occupied
Loan payment delinquencies
Total loans receivable	369,373	375,527
90 days or greater delinquent and accruing	0	0
Commercial Banking | Commercial real estate loans - owner occupied | Total delinquency
Loan payment delinquencies
Total loans receivable	634	339
Commercial Banking | Commercial real estate loans - owner occupied | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	0	61
Commercial Banking | Commercial real estate loans - owner occupied | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	260	0
Commercial Banking | Commercial real estate loans - owner occupied | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	374	278
Commercial Banking | Commercial real estate loans - owner occupied | Current
Loan payment delinquencies
Total loans receivable	368,739	375,188
Commercial Banking | Commercial loans
Loan payment delinquencies
Total loans receivable	1,500,609	1,131,969
90 days or greater delinquent and accruing	38	337
Commercial Banking | Commercial loans | Total delinquency
Loan payment delinquencies
Total loans receivable	6,300	5,592
Commercial Banking | Commercial loans | 30-59 days delinquent
Loan payment delinquencies
Total loans receivable	2,847	2,648
Commercial Banking | Commercial loans | 60-89 days delinquent
Loan payment delinquencies
Total loans receivable	981	1,115
Commercial Banking | Commercial loans | 90 days or greater delinquent
Loan payment delinquencies
Total loans receivable	2,472	1,829
Commercial Banking | Commercial loans | Current
Loan payment delinquencies
Total loans receivable	$ 1,494,309	$ 1,126,377

XML

Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Credit quality indicators
Year one	$ 1,247,754	$ 2,630,339
Year two	2,510,244	2,099,871
Year three	1,877,955	1,415,571
Year four	1,234,436	914,933
Year five	802,441	575,318
Prior	2,481,619	2,274,805
Revolving loans	1,077,236	939,858
Revolving loans converted to term loans	78,588	69,757
Total loans receivable, gross	11,310,273	10,920,452
Revolving loans converted to term loans during the period	13,700	20,700
Special mention and substandard | Minimum
Credit quality indicators
Total loans receivable, gross	1,000
Personal Banking
Credit quality indicators
Year one	786,963	1,761,000
Year two	1,538,860	1,586,953
Year three	1,367,408	953,050
Year four	826,577	516,327
Year five	432,580	255,908
Prior	1,354,790	1,304,430
Revolving loans	534,816	541,954
Revolving loans converted to term loans	44,653	45,306
Total loans receivable, gross	6,886,647	6,964,928
Personal Banking | Residential mortgage loans
Credit quality indicators
Year one	159,472	660,352
Year two	674,268	838,010
Year three	803,873	547,078
Year four	517,142	266,316
Year five	250,133	132,130
Prior	1,067,875	1,054,713
Revolving loans	0	0
Revolving loans converted to term loans	0	0
Total loans receivable, gross	3,472,763	3,498,599
Year one, charge-offs	0
Year two, charge-offs	0
Year three, charge-offs	(5)
Year four, charge-offs	(130)
Year five, charge-offs	0
Prior, charge-offs	(788)
Revolving loans, charge-offs	0
Revolving loans converted to term loans, charge-offs	0
Total loans receivable, charge-offs	(923)
Personal Banking | Residential mortgage loans | Pass
Credit quality indicators
Year one	159,472	659,930
Year two	673,235	837,823
Year three	803,613	546,604
Year four	516,270	265,520
Year five	249,797	131,599
Prior	1,056,864	1,043,394
Revolving loans	0	0
Revolving loans converted to term loans	0	0
Total loans receivable, gross	3,459,251	3,484,870
Personal Banking | Residential mortgage loans | Substandard
Credit quality indicators
Year one	0	422
Year two	1,033	187
Year three	260	474
Year four	872	796
Year five	336	531
Prior	11,011	11,319
Revolving loans	0	0
Revolving loans converted to term loans	0	0
Total loans receivable, gross	13,512	13,729
Personal Banking | Home equity loans
Credit quality indicators
Year one	65,795	114,598
Year two	104,272	126,654
Year three	110,823	173,044
Year four	153,431	110,622
Year five	98,211	50,638
Prior	212,056	202,037
Revolving loans	470,509	475,912
Revolving loans converted to term loans	43,668	44,169
Total loans receivable, gross	1,258,765	1,297,674
Year one, charge-offs	0
Year two, charge-offs	(53)
Year three, charge-offs	(46)
Year four, charge-offs	0
Year five, charge-offs	(48)
Prior, charge-offs	(257)
Revolving loans, charge-offs	(142)
Revolving loans converted to term loans, charge-offs	(173)
Total loans receivable, charge-offs	(719)
Personal Banking | Home equity loans | Pass
Credit quality indicators
Year one	65,795	114,598
Year two	104,272	126,608
Year three	110,823	173,044
Year four	153,431	110,495
Year five	98,062	50,314
Prior	210,273	198,971
Revolving loans	469,459	475,229
Revolving loans converted to term loans	42,870	42,887
Total loans receivable, gross	1,254,985	1,292,146
Personal Banking | Home equity loans | Substandard
Credit quality indicators
Year one	0	0
Year two	0	46
Year three	0	0
Year four	0	127
Year five	149	324
Prior	1,783	3,066
Revolving loans	1,050	683
Revolving loans converted to term loans	798	1,282
Total loans receivable, gross	3,780	5,528
Personal Banking | Vehicle loans
Credit quality indicators
Year one	541,590	966,724
Year two	747,126	612,406
Year three	446,320	228,564
Year four	153,511	135,823
Year five	82,495	70,728
Prior	68,657	42,538
Revolving loans	0	0
Revolving loans converted to term loans	0	0
Total loans receivable, gross	2,039,699	2,056,783
Year one, charge-offs	(324)
Year two, charge-offs	(1,385)
Year three, charge-offs	(1,425)
Year four, charge-offs	(416)
Year five, charge-offs	(497)
Prior, charge-offs	(684)
Revolving loans, charge-offs	0
Revolving loans converted to term loans, charge-offs	0
Total loans receivable, charge-offs	(4,731)
Personal Banking | Vehicle loans | Pass
Credit quality indicators
Year one	541,270	966,432
Year two	746,225	611,310
Year three	444,934	227,897
Year four	153,264	135,134
Year five	81,931	70,071
Prior	68,201	42,166
Revolving loans	0	0
Revolving loans converted to term loans	0	0
Total loans receivable, gross	2,035,825	2,053,010
Personal Banking | Vehicle loans | Substandard
Credit quality indicators
Year one	320	292
Year two	901	1,096
Year three	1,386	667
Year four	247	689
Year five	564	657
Prior	456	372
Revolving loans	0	0
Revolving loans converted to term loans	0	0
Total loans receivable, gross	3,874	3,773
Personal Banking | Consumer loans
Credit quality indicators
Year one	20,106	19,326
Year two	13,194	9,883
Year three	6,392	4,364
Year four	2,493	3,566
Year five	1,741	2,412
Prior	6,202	5,142
Revolving loans	64,307	66,042
Revolving loans converted to term loans	985	1,137
Total loans receivable, gross	115,420	111,872
Year one, charge-offs	(2,055)
Year two, charge-offs	(340)
Year three, charge-offs	(271)
Year four, charge-offs	(116)
Year five, charge-offs	(150)
Prior, charge-offs	(766)
Revolving loans, charge-offs	(149)
Revolving loans converted to term loans, charge-offs	(13)
Total loans receivable, charge-offs	(3,860)
Personal Banking | Consumer loans | Pass
Credit quality indicators
Year one	20,061	19,302
Year two	13,137	9,874
Year three	6,361	4,327
Year four	2,485	3,557
Year five	1,727	2,409
Prior	6,201	5,094
Revolving loans	63,801	65,610
Revolving loans converted to term loans	866	1,037
Total loans receivable, gross	114,639	111,210
Personal Banking | Consumer loans | Substandard
Credit quality indicators
Year one	45	24
Year two	57	9
Year three	31	37
Year four	8	9
Year five	14	3
Prior	1	48
Revolving loans	506	432
Revolving loans converted to term loans	119	100
Total loans receivable, gross	781	662
Commercial Banking
Credit quality indicators
Year one	460,791	869,339
Year two	971,384	512,918
Year three	510,547	462,521
Year four	407,859	398,606
Year five	369,861	319,410
Prior	1,126,829	970,375
Revolving loans	542,420	397,904
Revolving loans converted to term loans	33,935	24,451
Total loans receivable, gross	4,423,626	3,955,524
Commercial Banking | Commercial real estate loans
Credit quality indicators
Year one	127,229	322,050
Year two	445,128	368,132
Year three	383,957	390,267
Year four	360,362	293,154
Year five	279,685	252,021
Prior	907,111	782,899
Revolving loans	24,709	25,570
Revolving loans converted to term loans	25,463	13,935
Total loans receivable, gross	2,553,644	2,448,028
Year one, charge-offs	0
Year two, charge-offs	0
Year three, charge-offs	(492)
Year four, charge-offs	0
Year five, charge-offs	(51)
Prior, charge-offs	(1,013)
Revolving loans, charge-offs	0
Revolving loans converted to term loans, charge-offs	0
Total loans receivable, charge-offs	(1,556)
Commercial Banking | Commercial real estate loans | Pass
Credit quality indicators
Year one	127,229	322,050
Year two	437,503	346,355
Year three	356,152	369,868
Year four	330,522	244,188
Year five	225,478	209,500
Prior	776,377	696,628
Revolving loans	23,845	24,954
Revolving loans converted to term loans	25,345	13,314
Total loans receivable, gross	2,302,451	2,226,857
Commercial Banking | Commercial real estate loans | Special mention
Credit quality indicators
Year one	0	0
Year two	7,451	17,216
Year three	26,749	16,782
Year four	21,732	87
Year five	5,615	1,000
Prior	34,909	15,887
Revolving loans	350	157
Revolving loans converted to term loans	0	15
Total loans receivable, gross	96,806	51,144
Commercial Banking | Commercial real estate loans | Substandard
Credit quality indicators
Year one	0	0
Year two	174	4,561
Year three	1,056	3,617
Year four	8,108	48,879
Year five	48,592	41,521
Prior	95,825	70,384
Revolving loans	514	459
Revolving loans converted to term loans	118	606
Total loans receivable, gross	154,387	170,027
Commercial Banking | Commercial real estate loans - owner occupied
Credit quality indicators
Year one	17,830	63,031
Year two	68,347	51,673
Year three	48,689	18,007
Year four	17,879	54,685
Year five	49,570	48,307
Prior	161,894	133,634
Revolving loans	2,237	2,862
Revolving loans converted to term loans	2,927	3,328
Total loans receivable, gross	369,373	375,527
Year one, charge-offs	0
Year two, charge-offs	0
Year three, charge-offs	0
Year four, charge-offs	0
Year five, charge-offs	0
Prior, charge-offs	(68)
Revolving loans, charge-offs	0
Revolving loans converted to term loans, charge-offs	0
Total loans receivable, charge-offs	(68)
Commercial Banking | Commercial real estate loans - owner occupied | Pass
Credit quality indicators
Year one	17,830	62,905
Year two	50,716	51,673
Year three	48,567	17,989
Year four	14,845	49,600
Year five	44,834	43,570
Prior	148,778	123,278
Revolving loans	2,237	2,477
Revolving loans converted to term loans	2,214	1,460
Total loans receivable, gross	330,021	352,952
Commercial Banking | Commercial real estate loans - owner occupied | Special mention
Credit quality indicators
Year one	0	126
Year two	17,631	0
Year three	0	18
Year four	1,690	0
Year five	0	2,297
Prior	7,808	1,106
Revolving loans	0	385
Revolving loans converted to term loans	0	0
Total loans receivable, gross	27,129	3,932
Commercial Banking | Commercial real estate loans - owner occupied | Substandard
Credit quality indicators
Year one	0	0
Year two	0	0
Year three	122	0
Year four	1,344	5,085
Year five	4,736	2,440
Prior	5,308	9,250
Revolving loans	0	0
Revolving loans converted to term loans	713	1,868
Total loans receivable, gross	12,223	18,643
Commercial Banking | Commercial loans
Credit quality indicators
Year one	315,732	484,258
Year two	457,909	93,113
Year three	77,901	54,247
Year four	29,618	50,767
Year five	40,606	19,082
Prior	57,824	53,842
Revolving loans	515,474	369,472
Revolving loans converted to term loans	5,545	7,188
Total loans receivable, gross	1,500,609	1,131,969
Year one, charge-offs	0
Year two, charge-offs	(1,526)
Year three, charge-offs	(517)
Year four, charge-offs	(430)
Year five, charge-offs	(110)
Prior, charge-offs	(715)
Revolving loans, charge-offs	(60)
Revolving loans converted to term loans, charge-offs	(2)
Total loans receivable, charge-offs	(3,360)
Commercial Banking | Commercial loans | Pass
Credit quality indicators
Year one	315,190	481,797
Year two	455,098	90,320
Year three	77,266	52,833
Year four	28,754	46,966
Year five	37,787	17,250
Prior	56,731	53,107
Revolving loans	501,722	354,402
Revolving loans converted to term loans	4,285	4,032
Total loans receivable, gross	1,476,833	1,100,707
Commercial Banking | Commercial loans | Special mention
Credit quality indicators
Year one	542	628
Year two	315	2,190
Year three	58	506
Year four	369	1,704
Year five	316	227
Prior	68	0
Revolving loans	2,022	2,129
Revolving loans converted to term loans	0	0
Total loans receivable, gross	3,690	7,384
Commercial Banking | Commercial loans | Substandard
Credit quality indicators
Year one	0	1,833
Year two	2,496	603
Year three	577	908
Year four	495	2,097
Year five	2,503	1,605
Prior	1,025	735
Revolving loans	11,730	12,941
Revolving loans converted to term loans	1,260	3,156
Total loans receivable, gross	$ 20,086	$ 23,878

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Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Amortizable intangible assets:
Intangible asset - net	$ 6,013		$ 6,013		$ 8,560
Estimated amortization expense
Amortization expense	795	$ 1,047	2,546	$ 3,345
For the year ending December 31, 2023	3,270		3,270
For the year ending December 31, 2024	2,452		2,452
For the year ending December 31, 2025	1,662		1,662
For the year ending December 31, 2026	871		871
For the year ending December 31, 2027	305		305
Core deposits
Amortizable intangible assets:
Intangible asset - gross	74,899		74,899		74,899
Less: accumulated amortization	(68,886)		(68,886)		(66,367)
Intangible asset - net	6,013		6,013		8,532
Customer and contract
Amortizable intangible assets:
Intangible asset - gross	12,775		12,775		12,775
Less: accumulated amortization	(12,775)		(12,775)		(12,747)
Intangible asset - net	$ 0		$ 0		$ 28

XML

Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0
Changes in the carrying amount of goodwill
Goodwill		$ 380,997	$ 380,997

XML

Borrowed Funds - Schedule of Borrowed Funds (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Borrowed funds	$ 604,587	$ 681,166
Collateralized borrowings, due within one year
Debt Instrument [Line Items]
Borrowed funds	$ 48,587	$ 105,766
Average rate	1.52%	0.27%
Collateral received, due within one year
Debt Instrument [Line Items]
Borrowed funds	$ 61,600	$ 24,100
Average rate	5.16%	4.17%
Federal Home Loan Bank of Pittsburgh | Term notes payable to the FHLB of Pittsburgh, due within one year
Debt Instrument [Line Items]
Borrowed funds	$ 375,400	$ 500,000
Average rate	5.65%	4.55%
Federal Home Loan Bank of Pittsburgh | Notes payable to the FHLB of Pittsburgh, due within one year
Debt Instrument [Line Items]
Borrowed funds	$ 119,000	$ 51,300
Average rate	5.68%	4.45%

XML

Borrowed Funds - Narrative (Details)		9 Months Ended
	Sep. 09, 2020 USD ($)	Sep. 30, 2023 USD ($) business_trust advance	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Total loans receivable, net		$ 11,185,432,000	$ 10,802,416,000
Borrowed funds		604,587,000	681,166,000
Subordinated debt		$ 114,102,000	113,840,000
Number of statutory business trusts owned | business_trust		7
Trust Preferred Investments
Debt Instrument [Line Items]
Maximum period for which interest payment on the subordinated debentures can be deferred (in years)		5 years
Interest deferral		$ 0
Collateralized borrowings, due within one year
Debt Instrument [Line Items]
Borrowed funds		48,587,000	105,766,000
Cash and securities collateral		89,300,000
Collateral received, due within one year
Debt Instrument [Line Items]
Borrowed funds		$ 61,600,000	24,100,000
Subordinated debt
Debt Instrument [Line Items]
Debt issued	$ 125,000,000
Stated rate (as a percent)	4.00%
Repurchase amount			10,200,000
Amount outstanding after repurchase			114,800,000
Debt issuance costs	$ 1,800,000
Debt issuance amortization period (in years)	5 years
Subordinated debt | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.89%
Federal Home Loan Bank of Pittsburgh
Debt Instrument [Line Items]
Number of advances | advance		10
Federal Home Loan Bank of Pittsburgh | Revolving line of credit, FHLB of Pittsburgh
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 250,000,000
Revolving line of credit		119,000,000	51,300,000
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB
Debt Instrument [Line Items]
Borrowed funds		375,400,000	$ 500,000,000
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Debt issued		$ 400,000,000
Stated rate (as a percent)		5.72%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Debt issued		$ 100,000,000
Stated rate (as a percent)		5.65%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Debt issued		$ 100,000,000
Stated rate (as a percent)		5.65%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Debt issued		$ 25,000,000
Stated rate (as a percent)		5.63%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Five
Debt Instrument [Line Items]
Debt issued		$ 25,000,000
Stated rate (as a percent)		5.66%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Six
Debt Instrument [Line Items]
Debt issued		$ 25,000,000
Stated rate (as a percent)		5.63%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Seven
Debt Instrument [Line Items]
Debt issued		$ 25,000,000
Stated rate (as a percent)		5.65%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Eight
Debt Instrument [Line Items]
Debt issued		$ 25,000,000
Stated rate (as a percent)		5.62%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Nine
Debt Instrument [Line Items]
Debt issued		$ 25,000,000
Stated rate (as a percent)		5.63%
Federal Home Loan Bank of Pittsburgh | Term notes payable to FHLB | Debt Instrument, Redemption, Period Ten
Debt Instrument [Line Items]
Debt issued		$ 25,000,000
Stated rate (as a percent)		5.65%
Federal Home Loan Bank of Pittsburgh | Residential First Mortgage and Other Loans
Debt Instrument [Line Items]
Total loans receivable, net		$ 6,049,000,000.000

XML

Borrowed Funds - Schedule of Capital Debt Securities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Junior subordinated debentures	$ 129,509	$ 129,314
Trust Preferred Investments
Debt Instrument [Line Items]
Junior subordinated debentures	129,509	129,314
Trust Preferred Investments | Northwest Bancorp Capital Trust III
Debt Instrument [Line Items]
Capital debt securities	50,000
Junior subordinated debentures	$ 51,547	51,547
Trust Preferred Investments | Northwest Bancorp Capital Trust III | SOFR
Debt Instrument [Line Items]
Interest rate	1.38%
Trust Preferred Investments | Northwest Bancorp Statutory Trust IV
Debt Instrument [Line Items]
Capital debt securities	$ 50,000
Junior subordinated debentures	$ 51,547	51,547
Trust Preferred Investments | Northwest Bancorp Statutory Trust IV | SOFR
Debt Instrument [Line Items]
Interest rate	1.38%
Trust Preferred Investments | LNB Trust II
Debt Instrument [Line Items]
Capital debt securities	$ 7,875
Junior subordinated debentures	$ 8,119	8,119
Trust Preferred Investments | LNB Trust II | SOFR
Debt Instrument [Line Items]
Interest rate	1.48%
Trust Preferred Investments | Union National Capital Trust I
Debt Instrument [Line Items]
Capital debt securities	$ 8,000
Junior subordinated debentures	$ 7,993	7,975
Trust Preferred Investments | Union National Capital Trust I | SOFR
Debt Instrument [Line Items]
Interest rate	2.85%
Trust Preferred Investments | Union National Capital Trust II
Debt Instrument [Line Items]
Capital debt securities	$ 3,000
Junior subordinated debentures	$ 2,789	2,768
Trust Preferred Investments | Union National Capital Trust II | SOFR
Debt Instrument [Line Items]
Interest rate	2.00%
Trust Preferred Investments | MFBC Statutory Trust I
Debt Instrument [Line Items]
Capital debt securities	$ 5,000
Junior subordinated debentures	$ 3,762	3,684
Trust Preferred Investments | MFBC Statutory Trust I | SOFR
Debt Instrument [Line Items]
Interest rate	1.70%
Trust Preferred Investments | Universal Preferred Trust
Debt Instrument [Line Items]
Capital debt securities	$ 5,000
Junior subordinated debentures	$ 3,752	$ 3,674
Trust Preferred Investments | Universal Preferred Trust | SOFR
Debt Instrument [Line Items]
Interest rate	1.69%

XML

Guarantees (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Credit Card
Guarantor Obligations [Line Items]
Derivative, notional amount	$ 3,400
Letter of Credit
Guarantor Obligations [Line Items]
Maximum exposure collateralized	45,900
Maximum potential amount of future payments	28,700
Liability recognized for the obligations	1,000
Letter of Credit | Credit Card
Guarantor Obligations [Line Items]
Maximum exposure collateralized	578
Maximum potential amount of future payments	$ 5,000

XML

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 39,220	$ 37,304	$ 105,943	$ 99,017
Less: Dividends and undistributed earnings allocated to participating securities	99	166	267	441
Net income available to common shareholders basic	39,121	37,138	105,676	98,576
Net income available to common shareholders diluted	$ 39,121	$ 37,138	$ 105,676	$ 98,576
Weighted average common shares outstanding (in shares)	126,767,507	126,320,706	126,629,786	126,082,217
Add: Participating shares outstanding (in shares)	320,177	565,729	320,177	565,729
Total weighted average common shares and dilutive potential shares (in shares)	127,087,684	126,886,435	126,949,963	126,647,946
Basic earnings per share (in dollars per share)	$ 0.31	$ 0.29	$ 0.83	$ 0.78
Diluted earnings per share (in dollars per share)	$ 0.31	$ 0.29	$ 0.83	$ 0.78

XML

Pension and Other Post-Retirement Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pension benefits
Components of net periodic benefit cost
Service cost	$ 1,560	$ 2,599	$ 4,680	$ 7,797
Interest cost	2,245	1,671	6,735	5,013
Expected return on plan assets	(3,479)	(3,864)	(10,437)	(11,592)
Amortization of prior service cost	(564)	(564)	(1,692)	(1,692)
Amortization of the net loss	20	381	60	1,143
Net periodic cost	(218)	223	(654)	669
Other post-retirement benefits
Components of net periodic benefit cost
Service cost	0	0	0	0
Interest cost	7	10	21	30
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	0	0	0	0
Amortization of the net loss	10	2	30	6
Net periodic cost	$ 17	$ 12	$ 51	$ 36

XML

Disclosures About Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Significant unrealized appreciation or depreciation in financial instruments	$ 0	$ 0

XML

Disclosures About Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial assets:
Securities held-to-maturity	$ 682,681	$ 751,384
Accrued interest receivable	42,624	35,528
Financial liabilities:
Subordinated debt	114,102	113,840
Junior subordinated debentures	129,509	129,314
Derivatives not designated as hedging instruments
Financial assets:
Derivative assets	62,719	27,329
Financial liabilities:
Derivative liabilities	57,325	45,505
Level 1
Financial assets:
Cash and cash equivalents	161,995	139,365
Securities available-for-sale	0	0
Securities held-to-maturity	0	0
Loans receivable, net	0	0
Loans held-for-sale	0	0
Accrued interest receivable	42,624	35,528
FHLB stock	0	0
Total financial assets	204,619	174,893
Financial liabilities:
Savings and checking deposits	9,531,544	10,412,263
Time deposits	0	0
Borrowed funds	617,832	680,996
Subordinated debt	0	0
Junior subordinated debentures	0	0
Accrued interest payable	7,915	3,231
Total financial liabilities	10,157,291	11,096,490
Level 1 | Interest rate lock commitments
Financial assets:
Derivative assets	0	0
Level 1 | Forward commitments
Financial assets:
Derivative assets		0
Financial liabilities:
Derivative liabilities	0
Level 1 | Foreign exchange swaps
Financial assets:
Derivative assets	0
Financial liabilities:
Derivative liabilities	0	0
Level 1 | Interest rate swap agreements
Financial assets:
Derivative assets		0
Financial liabilities:
Derivative liabilities		0
Level 1 | Interest rate swap agreements | Derivatives designated as hedging instruments
Financial assets:
Derivative assets	0
Level 1 | Interest rate swap agreements | Derivatives not designated as hedging instruments
Financial assets:
Derivative assets	0
Financial liabilities:
Derivative liabilities	0
Level 1 | Risk participation agreements
Financial liabilities:
Derivative liabilities	0	0
Level 2
Financial assets:
Cash and cash equivalents	0	0
Securities available-for-sale	1,010,076	1,218,108
Securities held-to-maturity	682,681	751,384
Loans receivable, net	0	0
Loans held-for-sale	0	0
Accrued interest receivable	0	0
FHLB stock	0	0
Total financial assets	1,754,812	1,996,262
Financial liabilities:
Savings and checking deposits	0	0
Time deposits	0	0
Borrowed funds	0	0
Subordinated debt	102,456	102,554
Junior subordinated debentures	0	0
Accrued interest payable	0	0
Total financial liabilities	159,781	148,059
Level 2 | Interest rate lock commitments
Financial assets:
Derivative assets	0	0
Level 2 | Forward commitments
Financial assets:
Derivative assets		128
Financial liabilities:
Derivative liabilities	23
Level 2 | Foreign exchange swaps
Financial assets:
Derivative assets	203
Financial liabilities:
Derivative liabilities	10	23
Level 2 | Interest rate swap agreements
Financial assets:
Derivative assets		26,642
Financial liabilities:
Derivative liabilities		45,464
Level 2 | Interest rate swap agreements | Derivatives designated as hedging instruments
Financial assets:
Derivative assets	4,603
Level 2 | Interest rate swap agreements | Derivatives not designated as hedging instruments
Financial assets:
Derivative assets	57,249
Financial liabilities:
Derivative liabilities	57,275
Level 2 | Risk participation agreements
Financial liabilities:
Derivative liabilities	17	18
Level 3
Financial assets:
Cash and cash equivalents	0	0
Securities available-for-sale	0	0
Securities held-to-maturity	0	0
Loans receivable, net	10,031,968	9,910,852
Loans held-for-sale	10,592	9,913
Accrued interest receivable	0	0
FHLB stock	0	0
Total financial assets	10,043,224	9,921,324
Financial liabilities:
Savings and checking deposits	0	0
Time deposits	2,250,768	1,059,790
Borrowed funds	0	0
Subordinated debt	0	0
Junior subordinated debentures	136,461	133,546
Accrued interest payable	0	0
Total financial liabilities	2,387,229	1,193,336
Level 3 | Interest rate lock commitments
Financial assets:
Derivative assets	664	559
Level 3 | Forward commitments
Financial assets:
Derivative assets		0
Financial liabilities:
Derivative liabilities	0
Level 3 | Foreign exchange swaps
Financial assets:
Derivative assets	0
Financial liabilities:
Derivative liabilities	0	0
Level 3 | Interest rate swap agreements
Financial assets:
Derivative assets		0
Financial liabilities:
Derivative liabilities		0
Level 3 | Interest rate swap agreements | Derivatives designated as hedging instruments
Financial assets:
Derivative assets	0
Level 3 | Interest rate swap agreements | Derivatives not designated as hedging instruments
Financial assets:
Derivative assets	0
Financial liabilities:
Derivative liabilities	0
Level 3 | Risk participation agreements
Financial liabilities:
Derivative liabilities	0	0
Carrying amount
Financial assets:
Cash and cash equivalents	161,995	139,365
Securities available-for-sale	1,010,076	1,218,108
Securities held-to-maturity	830,106	881,249
Loans receivable, net	11,174,840	10,792,503
Loans held-for-sale	10,592	9,913
Accrued interest receivable	42,624	35,528
FHLB stock	40,404	40,143
Total financial assets	13,333,356	13,144,138
Financial liabilities:
Savings and checking deposits	9,531,544	10,412,263
Time deposits	2,258,338	1,052,285
Borrowed funds	604,587	681,166
Subordinated debt	114,102	113,840
Junior subordinated debentures	129,509	129,314
Accrued interest payable	7,915	3,231
Total financial liabilities	12,703,320	12,437,604
Carrying amount | Interest rate lock commitments
Financial assets:
Derivative assets	664	559
Carrying amount | Forward commitments
Financial assets:
Derivative assets		128
Financial liabilities:
Derivative liabilities	23
Carrying amount | Foreign exchange swaps
Financial assets:
Derivative assets	203
Financial liabilities:
Derivative liabilities	10	23
Carrying amount | Interest rate swap agreements
Financial assets:
Derivative assets		26,642
Financial liabilities:
Derivative liabilities		45,464
Carrying amount | Interest rate swap agreements | Derivatives designated as hedging instruments
Financial assets:
Derivative assets	4,603
Carrying amount | Interest rate swap agreements | Derivatives not designated as hedging instruments
Financial assets:
Derivative assets	57,249
Financial liabilities:
Derivative liabilities	57,275
Carrying amount | Risk participation agreements
Financial liabilities:
Derivative liabilities	17	18
Estimated fair value
Financial assets:
Cash and cash equivalents	161,995	139,365
Securities available-for-sale	1,010,076	1,218,108
Securities held-to-maturity	682,681	751,384
Loans receivable, net	10,031,968	9,910,852
Loans held-for-sale	10,592	9,913
Accrued interest receivable	42,624	35,528
FHLB stock	40,404	40,143
Total financial assets	12,043,059	12,132,622
Financial liabilities:
Savings and checking deposits	9,531,544	10,412,263
Time deposits	2,250,768	1,059,790
Borrowed funds	617,832	680,996
Subordinated debt	102,456	102,554
Junior subordinated debentures	136,461	133,546
Accrued interest payable	7,915	3,231
Total financial liabilities	12,704,301	12,437,885
Estimated fair value | Interest rate lock commitments
Financial assets:
Derivative assets	664	559
Estimated fair value | Forward commitments
Financial assets:
Derivative assets		128
Financial liabilities:
Derivative liabilities	23
Estimated fair value | Foreign exchange swaps
Financial assets:
Derivative assets	203
Financial liabilities:
Derivative liabilities	10	23
Estimated fair value | Interest rate swap agreements
Financial assets:
Derivative assets		26,642
Financial liabilities:
Derivative liabilities		45,464
Estimated fair value | Interest rate swap agreements | Derivatives designated as hedging instruments
Financial assets:
Derivative assets	4,603
Estimated fair value | Interest rate swap agreements | Derivatives not designated as hedging instruments
Financial assets:
Derivative assets	57,249
Financial liabilities:
Derivative liabilities	57,275
Estimated fair value | Risk participation agreements
Financial liabilities:
Derivative liabilities	$ 17	$ 18

XML

Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	$ 62,719	$ 27,329
Derivative liabilities	57,325	45,505
Level 1
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
Total financial assets	204,619	174,893
Level 2
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	1,010,076	1,218,108
Total financial assets	1,754,812	1,996,262
Level 3
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
Total financial assets	10,043,224	9,921,324
Recurring
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	170,967	224,537
Total mortgage-backed securities	839,109	993,571
Total financial assets	1,072,795	1,245,437
Total liabilities	57,325	45,505
Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
Total mortgage-backed securities	0	0
Total financial assets	0	0
Total liabilities	0	0
Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	170,967	224,537
Total mortgage-backed securities	839,109	993,571
Total financial assets	1,072,131	1,244,878
Total liabilities	57,325	45,505
Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
Total mortgage-backed securities	0	0
Total financial assets	664	559
Total liabilities	0	0
U.S. government and agencies | Recurring
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	56,526	60,592
U.S. government and agencies | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
U.S. government and agencies | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	56,526	60,592
U.S. government and agencies | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
Government-sponsored enterprises | Recurring
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	38,906	39,201
Government-sponsored enterprises | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
Government-sponsored enterprises | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	38,906	39,201
Government-sponsored enterprises | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
States and political subdivisions | Recurring
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	68,071	111,766
States and political subdivisions | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
States and political subdivisions | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	68,071	111,766
States and political subdivisions | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
Corporate | Recurring
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	7,464	12,978
Corporate | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
Corporate | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	7,464	12,978
Corporate | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Securities available-for-sale	0	0
GNMA | Recurring
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	17,073	12,434
Collateralized mortgage obligations	318,652	364,553
GNMA | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	0	0
Collateralized mortgage obligations	0	0
GNMA | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	17,073	12,434
Collateralized mortgage obligations	318,652	364,553
GNMA | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	0	0
Collateralized mortgage obligations	0	0
FNMA | Recurring
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	99,874	117,218
Collateralized mortgage obligations	148,389	185,588
FNMA | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	0	0
Collateralized mortgage obligations	0	0
FNMA | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	99,874	117,218
Collateralized mortgage obligations	148,389	185,588
FNMA | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	0	0
Collateralized mortgage obligations	0	0
FHLMC | Recurring
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	68,926	74,991
Collateralized mortgage obligations	186,190	238,781
FHLMC | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	0	0
Collateralized mortgage obligations	0	0
FHLMC | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	68,926	74,991
Collateralized mortgage obligations	186,190	238,781
FHLMC | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	0	0
Collateralized mortgage obligations	0	0
Non-agency | Recurring
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	5	6
Non-agency | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	0	0
Non-agency | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	5	6
Non-agency | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Residential mortgage-backed securities	0	0
Interest rate lock commitments | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0	0
Interest rate lock commitments | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0	0
Interest rate lock commitments | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	664	559
Interest rate lock commitments | Recurring
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	664	559
Interest rate lock commitments | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0	0
Interest rate lock commitments | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0	0
Interest rate lock commitments | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	664	559
Forward commitments | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		0
Derivative liabilities	0
Forward commitments | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		128
Derivative liabilities	23
Forward commitments | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		0
Derivative liabilities	0
Forward commitments | Recurring
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		128
Derivative liabilities	23
Forward commitments | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		0
Derivative liabilities	0
Forward commitments | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		128
Derivative liabilities	23
Forward commitments | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		0
Derivative liabilities	0
Foreign exchange swaps | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Derivative liabilities	0	0
Foreign exchange swaps | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	203
Derivative liabilities	10	23
Foreign exchange swaps | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Derivative liabilities	0	0
Foreign exchange swaps | Recurring
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	203
Derivative liabilities	10	23
Foreign exchange swaps | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Derivative liabilities	0	0
Foreign exchange swaps | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	203
Derivative liabilities	10	23
Foreign exchange swaps | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Derivative liabilities	0	0
Interest rate swap agreements | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		0
Derivative liabilities		0
Interest rate swap agreements | Level 1 | Derivatives designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Interest rate swap agreements | Level 1 | Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Derivative liabilities	0
Interest rate swap agreements | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		26,642
Derivative liabilities		45,464
Interest rate swap agreements | Level 2 | Derivatives designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	4,603
Interest rate swap agreements | Level 2 | Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	57,249
Derivative liabilities	57,275
Interest rate swap agreements | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative assets		0
Derivative liabilities		0
Interest rate swap agreements | Level 3 | Derivatives designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Interest rate swap agreements | Level 3 | Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Derivative liabilities	0
Interest rate swap agreements | Recurring | Derivatives designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	4,603
Interest rate swap agreements | Recurring | Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	57,249	26,642
Derivative liabilities	57,275	45,464
Interest rate swap agreements | Recurring | Level 1 | Derivatives designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Interest rate swap agreements | Recurring | Level 1 | Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0	0
Derivative liabilities	0	0
Interest rate swap agreements | Recurring | Level 2 | Derivatives designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	4,603
Interest rate swap agreements | Recurring | Level 2 | Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	57,249	26,642
Derivative liabilities	57,275	45,464
Interest rate swap agreements | Recurring | Level 3 | Derivatives designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0
Interest rate swap agreements | Recurring | Level 3 | Derivatives not designated as hedging instruments
Assets and liabilities measured at fair value on a recurring basis
Derivative assets	0	0
Derivative liabilities	0	0
Risk participation agreements | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative liabilities	0	0
Risk participation agreements | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative liabilities	17	18
Risk participation agreements | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative liabilities	0	0
Risk participation agreements | Recurring
Assets and liabilities measured at fair value on a recurring basis
Derivative liabilities	17	18
Risk participation agreements | Recurring | Level 1
Assets and liabilities measured at fair value on a recurring basis
Derivative liabilities	0	0
Risk participation agreements | Recurring | Level 2
Assets and liabilities measured at fair value on a recurring basis
Derivative liabilities	17	18
Risk participation agreements | Recurring | Level 3
Assets and liabilities measured at fair value on a recurring basis
Derivative liabilities	$ 0	$ 0

XML

Disclosures About Fair Value of Financial Instruments - Reconciliation of all Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3)
Balance at the beginning of the period	$ 761	$ 1,520	$ 559	$ 1,684
Interest rate lock commitments:
Net activity	(97)	(457)	105	(621)
Balance at the end of the period	$ 664	$ 1,063	$ 664	$ 1,063

XML

Disclosures About Fair Value of Financial Instruments - Nonrecurring Assets that had Fair Market Values Below the Carrying Amount (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Level 1
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Loans individually assessed	$ 0	$ 0
Total assets	204,619	174,893
Level 2
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Loans individually assessed	0	0
Total assets	1,754,812	1,996,262
Level 3
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Loans individually assessed	10,031,968	9,910,852
Total assets	10,043,224	9,921,324
Nonrecurring
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Mortgage servicing rights	198	95
Real estate owned, net	363	413
Total assets	14,028	15,924
Nonrecurring | Loans individually assessed
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Loans individually assessed	13,467	15,416
Nonrecurring | Level 1
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Mortgage servicing rights	0	0
Real estate owned, net	0	0
Total assets	0	0
Nonrecurring | Level 1 | Loans individually assessed
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Loans individually assessed	0	0
Nonrecurring | Level 2
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Mortgage servicing rights	0	0
Real estate owned, net	0	0
Total assets	0	0
Nonrecurring | Level 2 | Loans individually assessed
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Loans individually assessed	0	0
Nonrecurring | Level 3
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Mortgage servicing rights	198	95
Real estate owned, net	363	413
Total assets	14,028	15,924
Nonrecurring | Level 3 | Loans individually assessed
Fair value measurement for nonrecurring assets that had a fair market value below the carrying amount
Loans individually assessed	$ 13,467	$ 15,416

XML

Disclosures About Fair Value of Financial Instruments - Additional Quantitative Information, Assets Measured at Fair Value, Recurring and Nonrecurring Basis, Level 3 Input (Details)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	$ 198,000	$ 95,000
Real estate owned, net	$ 363,000	413,000
Nonrecurring | Estimated cost to sell | Appraisal value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Real estate owned, net, measurement input	0.150
Nonrecurring | Annual service cost | Discounted cash flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	90
Nonrecurring | Prepayment rate | Discounted cash flow | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	0.066
Nonrecurring | Prepayment rate | Discounted cash flow | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	0.150
Nonrecurring | Prepayment rate | Discounted cash flow | Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	0.099
Nonrecurring | Expected life (months) | Discounted cash flow | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	53.1
Nonrecurring | Expected life (months) | Discounted cash flow | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	103.5
Nonrecurring | Expected life (months) | Discounted cash flow | Weighted average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	75.8
Nonrecurring | Option adjusted spread | Discounted cash flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	0.0720
Nonrecurring | Forward yield curve | Discounted cash flow | Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	0.0544
Nonrecurring | Forward yield curve | Discounted cash flow | Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input	0.0560
Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held for sale	$ 10,592,000
Recurring | Estimated pull-through rate | Quoted prices for similar loans in active markets adjusted by an expected pull-through rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans held for sale, measurement input	1.000
Loans individually assessed | Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans individually assessed	$ 13,467,000	$ 15,416,000
Loans individually assessed | Nonrecurring | Estimated cost to sell | Appraisal value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loans individually assessed, measurement input	0.100

XML

Derivative Financial Instruments - Narrative (Details) - Interest rate swap agreements - Derivatives designated as hedging instruments $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) derivative
Derivative [Line Items]
Number of derivatives | derivative	7
Derivative, notional amount | $	$ 175,000
Minimum
Derivative [Line Items]
Derivative contract maturities (in years)	3 years
Maximum
Derivative [Line Items]
Derivative contract maturities (in years)	5 years

XML

Derivative Financial Instruments - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Derivatives designated as hedging instruments | Interest rate swap agreements
Derivative [Line Items]
Asset derivatives, notional amount	$ 175,000
Asset derivatives, fair value	4,603
Liability derivatives, notional amount	0
Liability derivatives, fair value	0
Derivatives not designated as hedging instruments
Derivative [Line Items]
Asset derivatives, notional amount	890,920	$ 675,750
Asset derivatives, fair value	62,719	27,329
Liability derivatives, notional amount	783,172	767,601
Liability derivatives, fair value	57,325	45,505
Derivatives not designated as hedging instruments | Interest rate swap agreements
Derivative [Line Items]
Asset derivatives, notional amount	673,255	651,114
Asset derivatives, fair value	57,249	26,642
Liability derivatives, notional amount	673,255	651,114
Liability derivatives, fair value	57,275	45,464
Derivatives not designated as hedging instruments | Foreign exchange swaps
Derivative [Line Items]
Asset derivatives, notional amount	7,393	0
Asset derivatives, fair value	203	0
Liability derivatives, notional amount	760	2,328
Liability derivatives, fair value	10	23
Derivatives not designated as hedging instruments | Interest rate lock commitments
Derivative [Line Items]
Asset derivatives, notional amount	35,272	19,727
Asset derivatives, fair value	664	559
Liability derivatives, notional amount	0	0
Liability derivatives, fair value	0	0
Derivatives not designated as hedging instruments | Forward commitments
Derivative [Line Items]
Asset derivatives, notional amount	0	4,909
Asset derivatives, fair value	0	128
Liability derivatives, notional amount	6,772	0
Liability derivatives, fair value	23	0
Derivatives not designated as hedging instruments | Risk participation agreements
Derivative [Line Items]
Asset derivatives, notional amount	0	0
Asset derivatives, fair value	0	0
Liability derivatives, notional amount	102,385	114,159
Liability derivatives, fair value	$ 17	$ 18

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Derivative Financial Instruments - Gain (Loss) on Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Hedging derivatives:
Decrease in interest expense	$ 627	$ 0	$ 831	$ 0
Increase/(decrease) in other income
Non-hedging swap derivatives:
Increase/(decrease) in other income	203	93	(127)	207
(Decrease)/increase in mortgage banking income
Non-hedging swap derivatives:
Increase/(decrease) in other income	$ (221)	$ 809	$ (46)	$ 1,131

XML

Derivative Financial Instruments - Schedule of Key Characteristics of Interest Rate Derivative Transactions (Details) - Derivatives designated as hedging instruments $ in Thousands	Sep. 30, 2023 USD ($)
Interest rate swap agreements
Derivative [Line Items]
Notional amount	$ 175,000
Estimated decrease to interest expense in the next twelve months	(2,933)
Issued May 11, 2023
Derivative [Line Items]
Notional amount	$ 25,000
Effective rate	3.52%
Estimated decrease to interest expense in the next twelve months	$ (540)
Remaining term (in months)	43 months
Issued May 12, 2023
Derivative [Line Items]
Notional amount	$ 25,000
Effective rate	3.54%
Estimated decrease to interest expense in the next twelve months	$ (528)
Remaining term (in months)	55 months
Issued May 19, 2023
Derivative [Line Items]
Notional amount	$ 25,000
Effective rate	3.84%
Estimated decrease to interest expense in the next twelve months	$ (454)
Remaining term (in months)	50 months
Issued May 31, 2023
Derivative [Line Items]
Notional amount	$ 25,000
Effective rate	4.08%
Estimated decrease to interest expense in the next twelve months	$ (400)
Remaining term (in months)	38 months
Issued July 26, 2023
Derivative [Line Items]
Notional amount	$ 25,000
Effective rate	4.24%
Estimated decrease to interest expense in the next twelve months	$ (348)
Remaining term (in months)	58 months
Issued July 31, 2023
Derivative [Line Items]
Notional amount	$ 25,000
Effective rate	4.36%
Estimated decrease to interest expense in the next twelve months	$ (330)
Remaining term (in months)	52 months
Issued August 9, 2023
Derivative [Line Items]
Notional amount	$ 25,000
Effective rate	4.32%
Estimated decrease to interest expense in the next twelve months	$ (333)
Remaining term (in months)	46 months

XML

Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Changes in accumulated other comprehensive income by component
Beginning balance	$ 1,511,501	$ 1,494,539	$ 1,491,486	$ 1,583,571
Other comprehensive (loss)/income before reclassification adjustments	(27,890)	(48,387)	(30,855)	(153,124)
Amounts reclassified from accumulated other comprehensive income	(382)	(131)	4,490	(395)
Other comprehensive loss	(28,272)	(48,518)	(26,365)	(153,519)
Ending balance	1,498,431	1,459,786	1,498,431	1,459,786
Unrealized holding gains (losses), tax	9,140	14,705	9,603	45,555
Reclassification adjustment for gains included in net income, tax	0	0	(1,731)	0
Changes in fair value of interest rate swaps, tax	(533)	0	(1,041)	0
Reclassification adjustments for prior period service costs and net losses included in net income, tax	152	50	456	151
Total
Changes in accumulated other comprehensive income by component
Beginning balance	(169,251)	(142,630)	(171,158)	(37,629)
Other comprehensive loss	(28,272)	(48,518)	(26,365)	(153,519)
Ending balance	(197,523)	(191,148)	(197,523)	(191,148)
Unrealized  losses on securities  available-for-sale
Changes in accumulated other comprehensive income by component
Beginning balance	(163,272)	(117,056)	(164,206)	(12,317)
Other comprehensive (loss)/income before reclassification adjustments	(29,715)	(48,387)	(34,417)	(153,124)
Amounts reclassified from accumulated other comprehensive income	0	0	5,636	(2)
Other comprehensive loss	(29,715)	(48,387)	(28,781)	(153,126)
Ending balance	(192,987)	(165,443)	(192,987)	(165,443)
Change in  fair value  of interest  rate swaps
Changes in accumulated other comprehensive income by component
Beginning balance	1,737		0
Other comprehensive (loss)/income before reclassification adjustments	1,825		3,562
Amounts reclassified from accumulated other comprehensive income	0		0
Other comprehensive loss	1,825		3,562
Ending balance	3,562		3,562
Change in  defined benefit  pension plans
Changes in accumulated other comprehensive income by component
Beginning balance	(7,716)	(25,574)	(6,952)	(25,312)
Other comprehensive (loss)/income before reclassification adjustments	0	0	0	0
Amounts reclassified from accumulated other comprehensive income	(382)	(131)	(1,146)	(393)
Other comprehensive loss	(382)	(131)	(1,146)	(393)
Ending balance	$ (8,098)	$ (25,705)	$ (8,098)	$ (25,705)