Loans and the Allowance for Credit Losses

3 Months Ended

Mar. 31, 2020

Loans and the Allowance for Credit Losses

NOTE 5. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES

The recorded investment in loans is presented in the Consolidated Balance Sheets net of deferred loan fees and costs, and discounts on purchased loans. Net deferred loan costs were $5.0 million and $4.8 million at March 31, 2020 and December 31, 2019, respectively. The unaccreted discount on purchased loans from acquisitions was $52.5 million at March 31, 2020, including $27.8 million related to OLBK, and $51.9 million at December 31, 2019. Wesbanco made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses because the Company has a robust policy in place to reverse or write-off accrued interest in a timely manner. Wesbanco made an accounting policy election to reverse accrued interest deemed uncollectible as a reversal of interest income.

	March 31,		December 31,
(unaudited, in thousands)	2020		2019
Commercial real estate:
Land and construction	$	676,726	$	777,151
Improved property		4,927,679		4,947,857
Total commercial real estate		5,604,405		5,725,008
Commercial and industrial		1,801,751		1,644,699
Residential real estate		1,929,590		1,873,647
Home equity		650,754		649,678
Consumer		363,096		374,953
Total portfolio loans		10,349,596		10,267,985
Loans held for sale		48,021		43,013
Total loans	$	10,397,617	$	10,310,998

On January 1, 2020, Wesbanco adopted ASU 2016-13 (Topic 326), Measurement of Credit Losses on Financial Instruments. Upon adoption, the Company recognized $41.4 million as an increase to the allowance for credit losses, which represents the difference in the incurred allowance as of December 31, 2019 and the CECL allowance as of January 1, 2020. This adjustment includes a $6.7 million increase to the allowance related to PCD loans as of January 1, 2020. See Note 1, “Summary of Significant Accounting Policies” for the Company’s revised accounting policies related to Loans and Allowance for Credit Losses and adoption of this standard.

The allowance for credit losses under CECL is calculated utilizing the PD / LGD, which is then discounted. PD is the probability the asset will default within a given time frame and LGD is the percentage of the asset not expected to be collected due to default. The primary macroeconomic drivers of the quantitative model include forecasts of national unemployment and interest rates, as well as modeling adjustments for changes in prepayment speeds, loan risk grades, portfolio mix, concentrations and loan growth. For the calculation as of March 31, 2020, the one-year forecast was based upon nationally-recognized published economic data through March 31, 2020, and is primarily driven by the national unemployment and interest rate spread forecasts. As of quarter-end, national unemployment was projected to peak at 8.7% in the second quarter, and subsequently decreases to an average of 6.5% over the remainder of the forecast period. The quantitative results were adjusted downward due to the expanded definition of unemployment and unprecedented government stimulus, which was not considered in the quantitative model. The calculation utilized a one-year reversion period. Wesbanco made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses because the Company has a robust policy in place to reverse or write-off accrued interest when loans are placed on non-accrual. As of March 31, 2020, accrued interest receivable for loans was $33.5 million.

The following tables summarize changes in the allowance for credit losses applicable to each category of the loan portfolio:

	Allowance for Credit Losses By Category
	For the Three Months Ended March 31, 2020 and 2019
(unaudited, in thousands)	Commercial Real Estate - Land and Construction			Commercial Real Estate- Improved Property			Commercial & Industrial			Residential Real Estate			Home Equity			Consumer			Deposit Overdrafts			Total
Balance at December 31, 2019
Allowance for credit losses - loans	$	4,949		$	20,293		$	14,116		$	4,311		$	4,422		$	2,951		$	1,387		$	52,429
Allowance for credit losses - loan commitments		235			22			311			15			250			41			—			874
Total beginning allowance for credit losses - loans and loan commitments		5,184			20,315			14,427			4,326			4,672			2,992			1,387			53,303
Impact of adopting ASC 326		1,524			13,078			22,357			5,630			(3,936	)		2,576			213			41,442
Provision for credit losses:
Provision for loan losses		2,564			20,585			5,632			237			646			(1,241	)		(351	)		28,072
Provision for loan commitments		2,274			—			(582	)		49			2			—			—			1,743
Total provision for credit losses - loans and loan commitments		4,838			20,585			5,050			286			648			(1,241	)		(351	)		29,815
Charge-offs		(1	)		(1,398	)		(2,714	)		(386	)		(443	)		(856	)		(328	)		(6,126	)
Recoveries		8			293			107			272			172			415			143			1,410
Net charge-offs		7			(1,105	)		(2,607	)		(114	)		(271	)		(441	)		(185	)		(4,716	)
Balance at March 31, 2020
Allowance for credit losses - loans		6,442			52,873			39,227			9,684			1,096			3,886			1,064			114,272
Allowance for credit losses - loan commitments		5,111			—			—			444			17			—			—			5,572
Total ending allowance for credit losses - loans and loan commitments	$	11,553		$	52,873		$	39,227		$	10,128		$	1,113		$	3,886		$	1,064		$	119,844

Balance at December 31, 2018
Allowance for loan losses	$	4,039		$	20,848		$	12,114		$	3,822		$	4,356		$	2,797		$	972		$	48,948
Allowance for loan commitments		169			33			262			12			226			39			—			741
Total beginning allowance for credit losses		4,208			20,881			12,376			3,834			4,582			2,836			972			49,689
Provision for credit losses:
Provision for loan losses		(6	)		(909	)		1,050			122			223			233			575			1,288
Provision for loan commitments		25			(9	)		1,181			(1	)		22			1			—			1,219
Total provision for credit losses		19			(918	)		2,231			121			245			234			575			2,507
Charge-offs		—			(222	)		(635	)		(320	)		(357	)		(661	)		(441	)		(2,636	)
Recoveries		12			198			378			121			47			411			99			1,266
Net charge-offs		12			(24	)		(257	)		(199	)		(310	)		(250	)		(342	)		(1,370	)
Balance at March 31, 2019
Allowance for loan losses		4,045			19,915			12,907			3,745			4,269			2,780			1,205			48,866
Allowance for loan commitments		194			24			1,443			11			248			40			—			1,960
Total ending allowance for credit losses	$	4,239		$	19,939		$	14,350		$	3,756		$	4,517		$	2,820		$	1,205		$	50,826

The following tables present the allowance for credit losses and recorded investments in loans by category:

	Allowance for Credit Losses and Recorded Investment in Loans
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial and Industrial		Residential Real Estate		Home Equity		Consumer		Deposit Over- drafts		Total
March 31, 2020
Allowance for credit losses:
Loans individually-evaluated	$	692	$	3,952	$	2,084	$	—	$	—	$	—	$	—	$	6,728
Loans collectively-evaluated		5,750		48,921		37,143		9,684		1,096		3,886		1,064		107,544
Loan commitments		5,111		—		—		444		17		—		—		5,572
Total allowance for credit losses - loans and commitments	$	11,553	$	52,873	$	39,227	$	10,128	$	1,113	$	3,886	$	1,064	$	119,844

Portfolio loans:
Individually-evaluated for credit losses⁽¹⁾	$	1,541	$	17,998	$	4,527	$	—	$	—	$	—	$	—	$	24,066
Collectively-evaluated for credit losses		675,185		4,909,681		1,797,224		1,929,590		650,754		363,096		—		10,325,530
Total portfolio loans	$	676,726	$	4,927,679	$	1,801,751	$	1,929,590	$	650,754	$	363,096	$	—	$	10,349,596

December 31, 2019
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	—	$	93	$	10	$	14	$	6	$	1	$	—	$	124
Allowance for loans collectively evaluated for impairment		4,949		20,200		14,106		4,297		4,416		2,950		1,387		52,305
Allowance for loan commitments		235		22		311		15		250		41		—		874
Total allowance for credit losses	$	5,184	$	20,315	$	14,427	$	4,326	$	4,672	$	2,992	$	1,387	$	53,303

Portfolio loans:
Individually evaluated for impairment ⁽¹⁾	$	—	$	3,907	$	11,961	$	4,392	$	704	$	53	$	—	$	21,017
Collectively evaluated for impairment		777,033		4,935,383		1,631,855		1,865,151		648,221		374,812		—		10,232,455
Acquired with deteriorated credit quality		118		8,567		883		4,104		753		88		—		14,513
Total portfolio loans	$	777,151	$	4,947,857	$	1,644,699	$	1,873,647	$	649,678	$	374,953	$	—	$	10,267,985

⁽¹⁾	^{Commercial loans greater than $1 million that are reported as non-accrual or as a TDR are individually evaluated for credit loss.}

Wesbanco has transitioned to a more objective internal loan grading system to reflect the credit quality of commercial loans. Commercial loan risk grades are determined based on an evaluation of the relevant characteristics of each loan, assigned at inception and adjusted thereafter at any time to reflect changes in the risk profile throughout the life of each loan. The primary factors used to determine the risk grade are the sufficiency, reliability and sustainability of the primary source of repayment and overall financial strength of the borrower. The rating system more heavily weights the debt service coverage, leverage and loan to value factors to derive the risk grade. Other factors that are considered at a lesser weighting include management, industry or property type risks, payment history, collateral or guarantees.

Commercial real estate – land and construction consists of loans to finance investments in vacant land, land development, construction of residential housing, and construction of commercial buildings. Commercial real estate – improved property consists of loans for the purchase or refinance of all types of improved owner-occupied and investment properties. Factors that are considered in assigning the risk grade vary depending on the type of property financed. The risk grade assigned to construction and development loans is based on the overall viability of the project, the experience and financial capacity of the developer or builder to successfully complete the project, project specific and market absorption rates and comparable property values, and the amount of pre-sales for residential housing construction or pre-leases for commercial investment property. The risk grade assigned to commercial investment property loans is based primarily on the adequacy of the net operating income generated by the property to service the debt, the loan to appraised value, the type, quality, industry and mix of tenants, and the terms of leases. The risk grade assigned to owner-occupied commercial real estate is based primarily on global debt service coverage and the leverage of the business, but may also consider the industry in which the business operates, the business’ specific competitive advantages or disadvantages, collateral margins and the quality and experience of management.

Commercial and industrial (“C&I”) loans consist of revolving lines of credit to finance accounts receivable, inventory and other general business purposes; term loans to finance fixed assets other than real estate, and letters of credit to support trade, insurance or governmental requirements for a variety of businesses. Most C&I borrowers are privately-held companies with annual sales up to $100 million. Primary factors that are considered in risk rating C&I loans include debt service coverage and leverage. Other factors including operating trends, collateral coverage along with management experience are also considered.

Pass loans are those that exhibit a history of positive financial results that are at least comparable to the average for their industry or type of real estate. The primary source of repayment is acceptable and these loans are expected to perform satisfactorily during most economic cycles. Pass loans typically have no significant external factors that are expected to adversely affect these borrowers more than others in the same industry or property type. Any minor unfavorable characteristics of these loans are outweighed or mitigated by other positive factors including but not limited to adequate secondary or tertiary sources of repayment.

Criticized loans, considered as compromised, have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the bank's credit position at some future date. Criticized loans are not adversely classified by the banking regulators and do not expose the bank to sufficient risk to warrant adverse classification.

Classified loans, considered as substandard and doubtful, are equivalent to the classifications used by banking regulators. Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. These loans may or may not be reported as non-accrual. Doubtful loans have all the weaknesses inherent in those classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. These loans are reported as non-accrual.

The following tables summarize commercial loans by their assigned risk grade:

	Commercial Loans by Internally Assigned Risk Grade
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of March 31, 2020
Pass	$	672,042	$	4,777,861	$	1,740,290	$	7,190,193
Criticized - compromised		1,661		78,112		41,028		120,801
Classified - substandard		3,023		71,706		20,433		95,162
Classified - doubtful		—		—		—		—
Total	$	676,726	$	4,927,679	$	1,801,751	$	7,406,156

As of December 31, 2019
Pass	$	769,537	$	4,807,003	$	1,570,689	$	7,147,229
Criticized - compromised		4,338		65,612		49,009		118,959
Classified - substandard		3,276		75,242		13,231		91,749
Classified - doubtful		—		—		11,770		11,770
Total	$	777,151	$	4,947,857	$	1,644,699	$	7,369,707

Residential real estate, home equity and consumer loans are not assigned internal risk grades other than as required by regulatory guidelines that are based primarily on the age of past due loans. Wesbanco primarily evaluates the credit quality of residential real estate, home equity and consumer loans based on repayment performance and historical loss rates. The aggregate amount of residential real estate, home equity and consumer loans classified as substandard in accordance with regulatory guidelines was $28.7 million at March 31, 2020 and $28.3 million at December 31, 2019, of which $5.4 and $5.1 million were accruing, for each period, respectively. The aggregate amount of residential real estate, home equity and consumer loans classified as substandard as well as unfunded commercial loan commitments are not included in the tables above.

Acquired OLBK Loans —In conjunction with the OLBK acquisition, Wesbanco acquired loans with a book value of $2,570.0 million as of November 22, 2019 (prior to the adoption of CECL on January 1, 2020). These loans were recorded at the preliminary fair value of $2,514.3 million, with $2,543.8 million categorized as ASC 310-20 loans. The fair market value adjustment on these loans of $55.6 million at acquisition date is expected to be recognized into interest income on a level yield basis over the remaining expected life of the loans. Loans acquired with deteriorated credit quality (ASC 310-30) with a book value of $26.2 million were recorded at the preliminary fair value of $19.2 million, of which $4.0 million were accounted for under the cost recovery method as cash flows could not be reasonably estimated, and therefore they are categorized as non-accrual. Upon adoption of CECL on January 1, 2020, $6.1 million of credit mark on OLBK PCD loans was reclassified to allowance for credit loss. At March 31, 2020, the allowance for credit losses on individually analyzed OLBK-acquired loans was $6.0 million. The carrying amount of loans acquired with deteriorated credit quality at March 31, 2020 was $21.3 million, while the outstanding customer balance was $21.8 million, and included $2.6 million of non-performing loans. Certain acquired under performing loans with an acquired book value of $56.6 million were sold during the first quarter of 2020 for $36.7 million of which $8.9 million were classified as held for sale as March 31, 2020. The acquisition date fair value of the acquired loans was adjusted to the sale price resulting in no recognized gain or loss.

The following tables summarize the age analysis of all categories of loans:

	Age Analysis of Loans
(unaudited, in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		90 Days or More Past Due and Accruing (1)
As of March 31, 2020
Commercial real estate:
Land and construction	$	674,429	$	825	$	645	$	827	$	2,297	$	676,726	$	804
Improved property		4,901,283		7,418		5,935		13,043		26,396		4,927,679		5,589
Total commercial real estate		5,575,712		8,243		6,580		13,870		28,693		5,604,405		6,393
Commercial and industrial		1,791,414		4,677		610		5,050		10,337		1,801,751		2,623
Residential real estate		1,908,239		5,409		2,209		13,733		21,351		1,929,590		3,583
Home equity		642,906		2,839		859		4,150		7,848		650,754		894
Consumer		359,109		2,442		690		855		3,987		363,096		794
Total portfolio loans		10,277,380		23,610		10,948		37,658		72,216		10,349,596		14,287
Loans held for sale		48,021		—		—		—		—		48,021		—
Total loans	$	10,325,401	$	23,610	$	10,948	$	37,658	$	72,216	$	10,397,617	$	14,287

Nonperforming loans included above are as follows:
Non-accrual loans	$	9,560	$	1,035	$	511	$	23,261		24,807	$	34,367
TDRs accruing interest ⁽¹⁾		5,117		55		152		110		317		5,434
Total non-performing	$	14,677	$	1,090	$	663	$	23,371	$	25,124	$	39,801

As of December 31, 2019
Commercial real estate:
Land and construction	$	776,153	$	529	$	121	$	348	$	998	$	777,151	$	26
Improved property		4,921,721		10,207		5,639		10,290		26,136		4,947,857		4,709
Total commercial real estate		5,697,874		10,736		5,760		10,638		27,134		5,725,008		4,735
Commercial and industrial		1,635,232		2,519		2,813		4,135		9,467		1,644,699		1,793
Residential real estate		1,850,806		4,421		5,372		13,048		22,841		1,873,647		3,643
Home equity		641,026		3,323		621		4,708		8,652		649,678		985
Consumer		370,934		2,537		965		517		4,019		374,953		457
Total portfolio loans		10,195,872		23,536		15,531		33,046		72,113		10,267,985		11,613
Loans held for sale		43,013		—		—		—		—		43,013		—
Total loans	$	10,238,885	$	23,536	$	15,531	$	33,046	$	72,113	$	10,310,998	$	11,613

Impaired loans included above are as follows:
Non-accrual loans	$	21,061	$	897	$	1,559	$	21,396		23,852	$	44,913
TDRs accruing interest ⁽¹⁾		5,113		151		130		37		318		5,431
Total impaired	$	26,174	$	1,048	$	1,689	$	21,433	$	24,170	$	50,344

⁽¹⁾	Loans 90 days or more past due and accruing interest exclude TDRs 90 days or more past due and accruing interest.

The following tables summarize nonperforming loans:

	Nonperforming Loans
	March 31, 2020						December 31, 2019
	Unpaid						Unpaid
	Principal		Recorded		Related		Principal		Recorded		Related
(unaudited, in thousands)	Balance (1)		Investment		Allowance		Balance (1)		Investment		Allowance
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	238	$	205	$	—	$	616	$	580	$	—
Improved property		8,750		6,772		—		5,097		4,229		—
Commercial and industrial		3,973		2,827		—		15,182		14,313		—
Residential real estate		23,767		20,987		—		17,753		15,952		—
Home equity		7,118		6,012		—		6,523		5,610		—
Consumer		541		366		—		546		413		—
Total nonperforming loans without a specific allowance		44,387		37,169		—		45,717		41,097		—
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—
Improved property		2,632		2,632		193		4,207		3,907		93
Commercial and industrial		—		—		—		193		191		10
Residential real estate		—		—		—		4,772		4,392		14
Home equity		—		—		—		724		704		6
Consumer		—		—		—		104		53		1
Total nonperforming loans with a specific allowance		2,632		2,632		193		10,000		9,247		124
Total nonperforming loans	$	47,019	$	39,801	$	193	$	55,717	$	50,344	$	124

⁽¹⁾	^{The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off and fair market value adjustments on acquired impaired loans.}

	Nonperforming Loans
	For the Three Months Ended
	March 31, 2020				March 31, 2019
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(unaudited, in thousands)	Investment		Recognized		Investment		Recognized
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	393	$	—	$	143	$	—
Improved property		5,501		20		8,277		—
Commercial and industrial		8,570		3		3,246		—
Residential real estate		18,470		55		13,774		—
Home equity		5,811		6		4,780		—
Consumer		390		1		450		—
Total nonperforming loans without a specific allowance		39,135		85		30,670		—
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—
Improved property		3,270		—		1,067		14
Commercial and industrial		96		—		154		3
Residential real estate		2,196		—		2,539		58
Home equity		352		—		398		8
Consumer		27		—		52		1
Total nonperforming loans with a specific allowance		5,941		—		4,210		84
Total nonperforming loans	$	45,076	$	85	$	34,880	$	84

The following tables present the recorded investment in non-accrual loans and TDRs:

	Non-accrual Loans ⁽¹⁾
	March 31,		December 31,
(unaudited, in thousands)	2020		2019
Commercial real estate:
Land and construction	$	205	$	580
Improved property		8,151		6,815
Total commercial real estate		8,356		7,395
Commercial and industrial		2,655		14,313
Residential real estate		17,376		16,867
Home equity		5,643		5,903
Consumer		337		435
Total	$	34,367	$	44,913

⁽¹⁾

At March 31, 2020, there were two borrowers with loans greater than $1.0 million totaling $4.3 million, as compared to two borrowers with loans greater than $1.0 million totaling $14.2 million at December 31, 2019. Total non-accrual loans include loans that are also restructured. Such loans are also set forth in the following table as non-accrual TDRs.

	TDRs
	March 31, 2020						December 31, 2019
(unaudited, in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Commercial real estate:
Land and construction	$	—	$	—	$	—	$	—	$	—	$	—
Improved property		1,253		180		1,433		1,321		191		1,512
Total commercial real estate		1,253		180		1,433		1,321		191		1,512
Commercial and industrial		172		13		185		191		—		191
Residential real estate		3,611		1,055		4,666		3,477		909		4,386
Home equity		369		311		680		411		293		704
Consumer		29		12		41		31		29		60
Total	$	5,434	$	1,571	$	7,005	$	5,431	$	1,422	$	6,853

As of March 31, 2020 and December 31, 2019, there were no TDRs greater than $1.0 million. The concessions granted in the majority of loans reported as accruing and non-accrual TDRs are extensions of the maturity date or the amortization period, reductions in the interest rate below the prevailing market rate for loans with comparable characteristics, and/or permitting interest-only payments for longer than six months. Wesbanco had unfunded commitments to debtors whose loans were classified as impaired of $0.3 million and $3.3 million as of March 31, 2020 and December 31, 2019, respectively.

The following tables present details related to loans identified as TDRs during the three months ended March 31, 2020 and 2019, respectively:

	New TDRs (1)
	For the Three Months Ended
	March 31, 2020						March 31, 2019
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
(unaudited, dollars in thousands)	Modifications		Investment		Investment		Modifications		Investment		Investment
Commercial real estate:
Land and construction		—	$	—	$	—		—	$	—	$	—
Improved Property		—		—		—		—		—		—
Total commercial real estate		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		—		—
Residential real estate		2		332		330		4		194		192
Home equity		—		—		—		2		187		185
Consumer		—		—		—		2		19		18
Total		2	$	332	$	330		8	$	400	$	395

⁽¹⁾	^{Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.}

The following table summarizes TDRs which defaulted (defined as past due 90 days) during the three months ended March 31, 2020 and 2019, respectively, that were restructured within the last twelve months prior to March 31, 2020 and 2019, respectively:

	Defaulted TDRs ⁽¹⁾
	For the Three Months Ended
	March 31, 2020				March 31, 2019
	Number of		Recorded		Number of		Recorded
(unaudited, dollars in thousands)	Defaults		Investment		Defaults		Investment
Commercial real estate:
Land and construction		—	$	—		—	$	—
Improved property		—		—		—		—
Total commercial real estate		—		—		—		—
Commercial and industrial		1		13		—		—
Residential real estate		1		155		1		58
Home equity		—		—		—		—
Consumer		—		—		—		—
Total		2	$	168		1	$	58

⁽¹⁾	^{Excludes loans that were either charged-off or cured by period end. The recorded investment is as of March 31, 2020 and 2019, respectively.}

TDRs that default are placed on non-accrual status unless they are both well-secured and in the process of collection. The loans in the table above were not accruing interest.

The following table summarizes amortized cost basis loan balances by year of origination and credit quality indicator:

	Loans As of March 31, 2020
	Amortized Cost Basis by Origination Year
(unaudited, in thousands)	2020		2019			2018			2017			2016			Prior			Revolving Loans Amortized Cost Basis			Revolving Loans Converted to Term			Total
Commercial real estate: land and construction
Risk rating:
Pass	$	45,030	$	226,205		$	193,697		$	65,923		$	20,998		$	48,284		$	71,905		$	-		$	672,042
Criticized - compromised		-		-			42			211			83			1,176			149			-		$	1,661
Classified - substandard		-		-			871			-			317			1,765			70			-		$	3,023
Classified - doubtful		-		-			-			-			-			-			-			-		$	-
Total	$	45,030	$	226,205		$	194,610		$	66,134		$	21,398		$	51,225		$	72,124		$	-		$	676,726
Commercial real estate: land and construction
Current-period net write-offs	$	-	$	-		$	-		$	-		$	-		$	7		$	-		$	-		$	7

Commercial real estate: improved property
Risk rating:
Pass	$	191,722	$	749,290		$	623,215		$	641,275		$	739,260		$	1,723,158		$	109,941		$	-		$	4,777,861
Criticized - compromised		-		2,788			3,995			22,493			12,200			36,321			315			-		$	78,112
Classified - substandard		-		71			4,094			7,914			10,549			49,078			-			-		$	71,706
Classified - doubtful		-		-			-			-			-			-			-			-		$	-
Total	$	191,722	$	752,149		$	631,304		$	671,682		$	762,009		$	1,808,557		$	110,256		$	-		$	4,927,679
Commercial real estate: improved property
Current-period net write-offs	$	-	$	-		$	-		$	12		$	(1,219	)	$	102		$	-		$	-		$	(1,105	)

Commercial and industrial
Risk rating:
Pass	$	61,827	$	291,133		$	220,651		$	183,752		$	106,337		$	337,917		$	538,512		$	161		$	1,740,290
Criticized - compromised		30		1,789			2,132			2,897			978			10,401			22,801			-		$	41,028
Classified - substandard		-		1,047			1,527			2,173			1,568			7,489			6,629			-		$	20,433
Classified - doubtful		-		-			-			-			-			-			-			-		$	-
Total	$	61,857	$	293,969		$	224,310		$	188,822		$	108,883		$	355,807		$	567,942		$	161		$	1,801,751
Commercial and industrial
Current-period net write-offs	$	-	$	-		$	(727	)	$	(170	)	$	(30	)	$	(276	)	$	(1,404	)	$	-		$	(2,607	)

Residential real estate
Loan delinquency:
Current	$	58,725	$	320,536		$	248,330		$	166,863		$	218,233		$	891,597		$	3,955		$	-		$	1,908,239
30-59 days past due		-		-			217			-			248			4,944			-			-			5,409
60-89 days past due		-		-			700			-			109			1,400			-			-			2,209
90 days or more past due		-		66			240			-			1,172			12,255			-			-			13,733
Total	$	58,725	$	320,602		$	249,487		$	166,863		$	219,762		$	910,196		$	3,955		$	-		$	1,929,590
Residential real estate
Current-period net write-offs	$	-	$	(24	)	$	(8	)	$	-		$	(19	)	$	(63	)	$	-		$	-		$	(114	)

Home equity
Loan delinquency:
Current	$	5,675	$	5,276		$	6,006		$	1,633		$	1,414		$	59,756		$	549,310		$	13,836		$	642,906
30-59 days past due		-		10			-			11			-			933			1,829			56			2,839
60-89 days past due		-		-			-			3			57			305			245			249			859
90 days or more past due		-		-			17			-			89			2,337			940			767			4,150
Total	$	5,675	$	5,286		$	6,023		$	1,647		$	1,560		$	63,331		$	552,324		$	14,908		$	650,754
Home equity
Current-period net write-offs	$	-	$	-		$	-		$	-		$	-		$	60		$	(302	)	$	(29	)	$	(271	)

Consumer
Loan delinquency:
Current	$	22,559	$	124,073		$	57,611		$	34,864		$	22,298		$	72,797		$	24,705		$	202		$	359,109
30-59 days past due		3		271			373			491			290			1,008			6			-			2,442
60-89 days past due		-		89			193			154			48			201			5			-			690
90 days or more past due		-		185			42			231			77			300			20			-			855
Total	$	22,562	$	124,618		$	58,219		$	35,740		$	22,713		$	74,306		$	24,736		$	202		$	363,096
Consumer
Current-period net write-offs	$	-	$	(219	)	$	(136	)	$	(76	)	$	(64	)	$	54		$	-		$	-		$	(441	)

The following table summarizes other real estate owned and repossessed assets included in other assets:

	March 31,		December 31,
(unaudited, in thousands)	2020		2019
Other real estate owned	$	1,032	$	4,062
Repossessed assets		51		116
Total other real estate owned and repossessed assets	$	1,083	$	4,178

Residential real estate included in other real estate owned at March 31, 2020 and December 31, 2019 was $0.7 million and $0.6 million, respectively. At March 31, 2020 and December 31, 2019, formal foreclosure proceedings were in process on residential real estate loans totaling $6.6 million and $8.1 million, respectively.