XML 26 R11.htm IDEA: XBRL DOCUMENT v3.22.0.1
Loans And Allowance For Credit Losses
 12 Months Ended
Dec. 31, 2021
Loans And Allowance For Credit Losses [Abstract]  
Loans And Allowance For Credit Losses Loans and Allowance for Credit Losses
Major classifications within the Company’s held for investment loan portfolio at December 31, 2021 and 2020 are as follows:

(In thousands)20212020
Commercial:
Business
$5,303,535 $6,546,087 
Real estate — construction and land
1,118,266 1,021,595 
Real estate — business
3,058,837 3,026,117 
Personal Banking:
Real estate — personal
2,805,401 2,820,030 
Consumer
2,032,225 1,950,502 
Revolving home equity
275,945 307,083 
Consumer credit card
575,410 655,078 
Overdrafts
6,740 3,149 
Total loans (1)
$15,176,359 $16,329,641 
(1) Accrued interest receivable totaled $25.9 million at December 31, 2021 and was included within other assets on the consolidated balance sheet. For the year ended December 31, 2021, the Company wrote-off accrued interest by reversing interest income of $212 thousand and $4.7 million in the Commercial and Personal Banking portfolios, respectively.

Loans to directors and executive officers of the Parent and the Bank, and to their affiliates, are summarized as follows:

(In thousands)
Balance at January 1, 2021
$35,342 
Additions68,365 
Amounts collected(63,287)
Amounts written off— 
Balance, December 31, 2021
$40,420 

Management believes all loans to directors and executive officers have been made in the ordinary course of business with normal credit terms, including interest rate and collateral considerations, and do not represent more than a normal risk of collection. The activity in the table above includes draws and repayments on several lines of credit with business entities. There were no outstanding loans at December 31, 2021 to principal holders (over 10% ownership) of the Company’s common stock.

The Company’s lending activity is generally centered in Missouri, Kansas, Illinois and other nearby states including Oklahoma, Colorado, Iowa, Ohio, and Texas. The Company maintains a diversified portfolio with limited industry concentrations of credit risk. Loans and loan commitments are extended under the Company’s normal credit standards, controls, and monitoring procedures. Most loan commitments are short or intermediate term in nature. Commercial loan maturities generally range from one to seven years. Collateral is commonly required and would include such assets as marketable securities, cash equivalent assets, accounts receivable, inventory, equipment, other forms of personal property, and real estate. At December 31, 2021, unfunded loan commitments totaled $13.3 billion (which included $5.0 billion in unused approved lines of credit related to credit card loan agreements) which could be drawn by customers subject to certain review and terms of agreement. At December 31, 2021, loans totaling $3.3 billion were pledged at the FHLB as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $1.3 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings.

The Company has a net investment in direct financing and sales type leases to commercial and industrial and tax-exempt entities of $725.6 million and $797.4 million at December 31, 2021 and 2020, respectively, which is included in business loans on the Company’s consolidated balance sheets. This investment includes deferred income of $55.0 million and $66.3 million at December 31, 2021 and 2020, respectively. The net investment in operating leases amounted to $27.0 million and $13.7 million at December 31, 2021 and 2020, respectively, and is included in other assets on the Company’s consolidated balance sheets.
Allowance for credit losses
The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis.

For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, unemployment rate, various interest rates, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (CREPI) and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications unless there is a reasonable expectation that a troubled debt restructuring will be executed. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions.
Key assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, forecasted macro-economic variables, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at December 31, 2021 and 2020 are discussed below.

Key AssumptionDecember 31, 2021December 31, 2020
Overall economic forecast
•Continued recovery from the Global Coronavirus Recession (GCR)
•Assumes improving health conditions
•Assumes gradual easing of supply constraints
•Continued uncertainty regarding the health crisis
•Uncertainty regarding rising inflation
•The recovery from the Global Coronavirus Recession (GCR) continues to be gradual throughout 2021 and 2022
•Assumes no additional systemic lockdown measures
•Considers government stimulus in the beginning of 2021
•Continued uncertainty regarding the health crisis
Reasonable and supportable period and related reversion period
•One year for both commercial and personal banking loans
•Reversion to historical average loss rates within two quarters using a straight-line method
•Two years for both commercial and personal banking loans
•Reversion to historical average loss rates within two quarters using a straight-line method
Forecasted macro-economic variables
•Unemployment rate ranging from 4.1% to 3.7% during the supportable forecast period
•Real GDP growth ranges from 5.0% to 3.4%
•Prime rate of 3.25% through the second quarter of 2022, increasing to 3.5% by the end of 2022
•Unemployment rate ranging from 6.5% to 5.2% during the supportable forecast period
•Real GDP growth ranges from 3.7% to 2.2%
•Prime rate of 3.25%
Prepayment assumptions
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 28.0% to 16.5% for most loan pools
•64.1% for consumer credit cards
Commercial loans
•5% for most loan pools
Personal banking loans
•Ranging from 23.3% to 23.1% for most loan pools
•58.0% for consumer credit cards
Qualitative factors
Added net reserves using qualitative processes related to:
•Loans originated in our expansion markets, loans that are designated as shared national credits, and certain portfolios sensitive to pandemic economic uncertainties
•Changes in the composition of the loan portfolios
•Loans downgraded to special mention, substandard, or non-accrual status
Added net reserves using qualitative processes related to:
•Loans originated in our expansion markets, loans that are designated as shared national credits, and certain portfolios considered to be COVID-19 impacted
•Changes in the composition of the loan portfolios
•Loans downgraded to special mention, substandard, or non-accrual status

The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded.

Sensitivity in the Allowance for Credit Loss model
The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in estimated expected credit losses.

The current forecast used in the model projects a continued recovery of the COVID pandemic-induced recession. This pandemic is unprecedented and information that could be used in the estimation of the allowance for credit losses changes frequently. Trends in health conditions, vaccine distribution, and supply constraints could significantly impact economic projections used in the estimation of the allowance for credit losses and liability for unfunded lending commitments.
A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments during the years ended December 31, 2021 and 2020 follows:

For the Year Ended December 31
(In thousands)CommercialPersonal Banking

Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance December 31, 2020$121,549 $99,285 $220,834 
Provision for credit losses on loans(28,594)(23,629)(52,223)
Deductions:
   Loans charged off968 34,659 35,627 
   Less recoveries on loans5,789 11,271 17,060 
Net loan charge-offs (recoveries)(4,821)23,388 18,567 
Balance December 31, 2021$97,776 $52,268 $150,044 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance December 31, 2020$37,259 $1,048 $38,307 
Provision for credit losses on unfunded lending commitments(13,988)(115)(14,103)
Balance December 31, 2021$23,271 $933 $24,204 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS$121,047 $53,201 $174,248 
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance December 31, 2019$91,760 $68,922 $160,682 
Adoption of ASU 2016-13(29,711)8,672 (21,039)
Balance at December 31, 2019, adjusted62,049 77,594 139,643 
Provision for credit losses on loans63,115 52,934 116,049 
Deductions:
   Loans charged off7,862 42,185 50,047 
   Less recoveries on loans4,247 10,942 15,189 
Net loan charge-offs3,615 31,243 34,858 
Balance December 31, 2020
$121,549 $99,285 $220,834 
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance December 31, 2019$399 $676 $1,075 
Adoption of ASU 2016-1316,057 33 16,090 
Balance at December 31, 2019, adjusted16,456 709 17,165 
Provision for credit losses on unfunded lending commitments20,803 339 21,142 
Balance December 31, 2020
$37,259 $1,048 $38,307 
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND UNFUNDED LENDING COMMITMENTS$158,808 $100,333 $259,141 
Allowance for loan losses
In the table below is a summary of the activity in the allowance for loan losses during 2019, calculated in accordance with the incurred loss methodology applicable to the Company prior to its adoption of CECL on January 1, 2020. The allowance for loan losses under the incurred loss method estimated probable loan losses inherent in the portfolio as of the balance sheet date, and using this methodology, groups of similar loans were evaluated collectively for impairment and certain specific loans were evaluated for impairment individually. The Company’s estimate of the allowance under the incurred loss method was based on various judgments and assumptions made by management and was influenced by several qualitative factors which included historical loan loss experience by loan type, loss emergence periods, trends in delinquencies, collateral valuation, current regional and national economic factors, current loan portfolio composition and characteristics, portfolio risk ratings, and levels of non-performing assets.

(In thousands)
Commercial
Personal Banking
Total
Balance at December 31, 2018
$92,869 $67,063 $159,932 
Provision for loan losses2,816 47,622 50,438 
Deductions:
Loans charged off4,711 57,169 61,880 
Less recoveries786 11,406 12,192 
Net loans charged off3,925 45,763 49,688 
Balance at December 31, 2019
91,760 68,922 160,682 
Delinquent and non-accrual loans
The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at December 31, 2021 and 2020.
(In thousands)
Current or Less Than 30 Days Past Due30 – 89 Days Past Due90 Days Past Due and Still AccruingNon-accrualTotal
December 31, 2021
Commercial:
Business
$5,292,125 $3,621 $477 $7,312 $5,303,535 
Real estate – construction and land
1,117,434 832 — — 1,118,266 
Real estate – business
3,058,566 57 — 214 3,058,837 
Personal Banking:
Real estate – personal
2,796,662 4,125 2,983 1,631 2,805,401 
Consumer
2,005,556 24,458 2,211 — 2,032,225 
Revolving home equity
274,372 772 801 — 275,945 
Consumer credit card
565,335 4,821 5,254 — 575,410 
Overdrafts
6,425 315— — 6,740 
Total
$15,116,475 $39,001 $11,726 $9,157 $15,176,359 
December 31, 2020
Commercial:
Business
$6,517,838 $2,252 $3,473 $22,524 $6,546,087 
Real estate – construction and land
1,021,592 — 3 — 1,021,595 
Real estate – business
3,016,215 7,666 6 2,230 3,026,117 
Personal Banking:
Real estate – personal
2,808,886 6,521 2,837 1,786 2,820,030 
Consumer
1,921,822 25,417 3,263 — 1,950,502 
Revolving home equity
305,037 1,656 390 — 307,083 
Consumer credit card
635,770 7,090 12,218 — 655,078 
Overdrafts
2,896 253— — 3,149 
Total
$16,230,056 $50,855 $22,190 $26,540 $16,329,641 

At December 31, 2021, the Company had $5.3 million of non-accrual business loans that had no allowance for credit loss. The Company did not record any interest income on non-accrual loans during the year ended December 31, 2021.

Credit quality indicators
The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information, including but not limited to, current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.
All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Special Mention, Substandard or Non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

The risk category of loans in the Commercial portfolio as of December 31, 2021 and 2020 are as follows:

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2021
Business
    Risk Rating:
       Pass$1,473,869 $704,157 $554,759 $248,739 $159,238 $270,454 $1,795,073 $5,206,289 
       Special mention1,785 126 17,576 12,050 1,490 3,232 16,545 52,804 
       Substandard836 1,191 8,855 4,936 1 10,775 10,536 37,130 
       Non-accrual430 — 1 1,549 — 5,332 — 7,312 
   Total Business:$1,476,920 $705,474 $581,191 $267,274 $160,729 $289,793 $1,822,154 $5,303,535 
Real estate-construction
    Risk Rating:
       Pass$598,734 $346,507 $66,985 $2,110 $2,655 $2,252 $13,230 $1,032,473 
       Special mention44,649 — — 985 — — — 45,634 
       Substandard485 11,620 — 14,896 13,158 — — 40,159 
    Total Real estate-construction:$643,868 $358,127 $66,985 $17,991 $15,813 $2,252 $13,230 $1,118,266 
Real estate- business
    Risk Rating:
       Pass$775,561 $712,173 $551,697 $230,138 $170,888 $254,489 $76,641 $2,771,587 
       Special mention4,011 30,322 10,500 37,576 2,068 2,103 1 86,581 
       Substandard17,079 62,939 12,930 2,326 58,934 45,265 982 200,455 
       Non-accrual— — — 189 — 25 — 214 
   Total Real-estate business:$796,651 $805,434 $575,127 $270,229 $231,890 $301,882 $77,624 $3,058,837 
Commercial loans
    Risk Rating:
       Pass$2,848,164 $1,762,837 $1,173,441 $480,987 $332,781 $527,195 $1,884,944 $9,010,349 
       Special mention50,445 30,448 28,076 50,611 3,558 5,335 16,546 185,019 
       Substandard18,400 75,750 21,785 22,158 72,093 56,040 11,518 277,744 
       Non-accrual430 — 1 1,738 — 5,357 — 7,526 
   Total Commercial loans:$2,917,439 $1,869,035 $1,223,303 $555,494 $408,432 $593,927 $1,913,008 $9,480,638 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2020
Business
    Risk Rating:
       Pass$2,472,419 $966,068 $438,557 $329,207 $163,357 $281,604 $1,619,680 $6,270,892 
       Special mention28,612 26,746 14,102 1,781 5,091 1,664 41,749 119,745 
       Substandard17,246 21,985 5,076 2,675 3,578 13,390 68,976 132,926 
       Non-accrual12,619 1 5,327 391 502 3,659 25 22,524 
   Total Business:$2,530,896 $1,014,800 $463,062 $334,054 $172,528 $300,317 $1,730,430 $6,546,087 
Real estate-construction
    Risk Rating:
       Pass$483,302 $330,480 $56,747 $3,021 $24,426 $1,692 $27,356 $927,024 
       Special mention29,692 — 1,022 34,532 — — — 65,246 
       Substandard1,154 — 14,989 13,182 — — — 29,325 
    Total Real estate-construction:$514,148 $330,480 $72,758 $50,735 $24,426 $1,692 $27,356 $1,021,595 
Real estate- business
    Risk Rating:
       Pass$890,740 $666,399 $336,850 $241,656 $313,691 $199,534 $67,796 $2,716,666 
       Special mention8,936 21,734 49,580 6,597 17,504 1,309 3,002 108,662 
       Substandard46,882 1,037 4,061 81,435 17,538 45,014 2,592 198,559 
       Non-accrual478 188 1,480 — — 84 — 2,230 
   Total Real-estate business:$947,036 $689,358 $391,971 $329,688 $348,733 $245,941 $73,390 $3,026,117 
Commercial loans
    Risk Rating:
       Pass$3,846,461 $1,962,947 $832,154 $573,884 $501,474 $482,830 $1,714,832 $9,914,582 
       Special mention67,240 48,480 64,704 42,910 22,595 2,973 44,751 293,653 
       Substandard65,282 23,022 24,126 97,292 21,116 58,404 71,568 360,810 
       Non-accrual13,097 189 6,807 391 502 3,743 25 24,754 
   Total Commercial loans:$3,992,080 $2,034,638 $927,791 $714,477 $545,687 $547,950 $1,831,176 $10,593,799 
The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of December 31, 2021 and 2020 below:

Term Loans Amortized Cost Basis by Origination Year
(In thousands)20212020201920182017PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2021
Real estate-personal
       Current to 90 days past due$690,058 $888,631 $354,292 $157,485 $149,391 $551,460 $9,470 $2,800,787 
       Over 90 days past due133 1,150 298 124 97 1,181 — 2,983 
       Non-accrual115 — 251 109 — 1,156 — 1,631 
   Total Real estate-personal:$690,306 $889,781 $354,841 $157,718 $149,488 $553,797 $9,470 $2,805,401 
Consumer
       Current to 90 days past due$571,455 $348,774 $192,076 $79,887 $47,401 $78,088 $712,333 $2,030,014 
       Over 90 days past due283 335 257 250 74 351 661 2,211 
    Total Consumer:$571,738 $349,109 $192,333 $80,137 $47,475 $78,439 $712,994 $2,032,225 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $275,144 $275,144 
       Over 90 days past due— — — — — — 801 801 
   Total Revolving home equity:$— $— $— $— $— $— $275,945 $275,945 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $570,156 $570,156 
       Over 90 days past due— — — — — — 5,254 5,254 
   Total Consumer credit card:$— $— $— $— $— $— $575,410 $575,410 
Overdrafts
       Current to 90 days past due$6,740 $— $— $— $— $— $— $6,740 
    Total Overdrafts:$6,740 $— $— $— $— $— $— $6,740 
Personal banking loans
       Current to 90 days past due$1,268,253 $1,237,405 $546,368 $237,372 $196,792 $629,548 $1,567,103 $5,682,841 
       Over 90 days past due416 1,485 555 374 171 1,532 6,716 11,249 
       Non-accrual115 — 251 109 — 1,156 — 1,631 
   Total Personal banking loans:$1,268,784 $1,238,890 $547,174 $237,855 $196,963 $632,236 $1,573,819 $5,695,721 
Term Loans Amortized Cost Basis by Origination Year
(In thousands)20202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
December 31, 2020
Real estate-personal
       Current to 90 days past due$1,123,918 $488,379 $218,390 $201,971 $227,265 $544,008 $11,476 $2,815,407 
       Over 90 days past due534 375 281 411 388 848 — 2,837 
       Non-accrual29 191 116 45 65 1,340 — 1,786 
   Total Real estate-personal:$1,124,481 $488,945 $218,787 $202,427 $227,718 $546,196 $11,476 $2,820,030 
Consumer
       Current to 90 days past due$536,799 $337,431 $161,337 $115,886 $75,769 $86,831 $633,186 $1,947,239 
       Over 90 days past due212 358 328 220 174 397 1,574 3,263 
    Total Consumer:$537,011 $337,789 $161,665 $116,106 $75,943 $87,228 $634,760 $1,950,502 
Revolving home equity
       Current to 90 days past due$— $— $— $— $— $— $306,693 $306,693 
       Over 90 days past due— — — — — — 390 390 
   Total Revolving home equity:$— $— $— $— $— $— $307,083 $307,083 
Consumer credit card
       Current to 90 days past due$— $— $— $— $— $— $642,860 $642,860 
       Over 90 days past due— — — — — — 12,218 12,218 
   Total Consumer credit card:$— $— $— $— $— $— $655,078 $655,078 
Overdrafts
       Current to 90 days past due$3,149 $— $— $— $— $— $— $3,149 
    Total Overdrafts:$3,149 $— $— $— $— $— $— $3,149 
Personal banking loans
       Current to 90 days past due$1,663,866 $825,810 $379,727 $317,857 $303,034 $630,839 $1,594,215 $5,715,348 
       Over 90 days past due746 733 609 631 562 1,245 14,182 18,708 
       Non-accrual29 191 116 45 65 1,340 — 1,786 
   Total Personal banking loans:$1,664,641 $826,734 $380,452 $318,533 $303,661 $633,424 $1,608,397 $5,735,842 

Collateral-dependent loans
The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of December 31, 2021.

(In thousands)Business AssetsOil & Gas AssetsTotal
Commercial:
  Business$1,604 $2,459 $4,063 
Total$1,604 $2,459 $4,063 

Other Personal Banking loan information
As noted above, the credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided in the table in the above section on "Credit quality indicators." In addition, FICO scores are obtained and updated on a quarterly basis for most of the loans in the Personal Banking portfolio. This is a published credit score designed to measure the risk of default by taking into account various factors from a borrower's financial history and is considered supplementary information utilized by the Company, as management does not consider this information in evaluating the allowance for credit losses on loans. The Bank normally obtains a FICO score at the loan's origination and renewal dates, and updates are obtained on a quarterly basis. Excluded from the table below are certain personal real estate loans for which FICO scores are not obtained because the loans generally pertain to commercial customer activities and are often underwritten with other collateral considerations. These loans totaled $185.6 million at December 31, 2021 and $191.1 million at December 31, 2020. The table also excludes consumer loans related to the Company's patient healthcare loan program, which totaled $186.6 million at December 31, 2021 and $188.1 million at December 31, 2020. As the healthcare loans are guaranteed by the hospital, customer FICO scores are not obtained for these loans. The personal real estate loans and consumer loans excluded below totaled less than 7% of the Personal Banking portfolio. For the remainder of loans in the
Personal Banking portfolio, the table below shows the percentage of balances outstanding at December 31, 2021 and 2020 by FICO score.
Personal Banking Loans
% of Loan Category


Real Estate - PersonalConsumerRevolving Home EquityConsumer Credit Card
December 31, 2021
FICO score:
Under 600
1.0 %1.9 %0.9 %3.4 %
600 – 659
2.4 3.9 2.6 11.3 
660 – 719
7.4 13.8 9.4 29.9 
720 – 779
25.2 25.3 20.4 28.2 
780 and over
64.0 55.1 66.7 27.2 
Total
100.0 %100.0 %100.0 %100.0 %
December 31, 2020
FICO score:
Under 600
0.8 %2.3 %1.3 %5.0 %
600 – 659
1.9 4.2 2.4 12.3 
660 – 719
8.8 14.1 8.6 31.2 
720 – 779
24.5 23.9 22.2 28.0 
780 and over
64.0 55.5 65.5 23.5 
Total
100.0 %100.0 %100.0 %100.0 %
Troubled debt restructurings
Restructured loans are those extended to borrowers who are experiencing financial difficulty and who have been granted a concession. Restructured loans are placed on non-accrual status if the Company does not believe it probable that amounts due under the contractual terms will be collected. Commercial performing restructured loans are primarily comprised of certain business, construction and business real estate loans classified as substandard, but renewed at rates judged to be non-market. These loans are performing in accordance with their modified terms, and because the Company believes it probable that all amounts due under the modified terms of the agreements will be collected, interest on these loans is being recognized on an accrual basis. Troubled debt restructurings also include certain credit card and other small consumer loans under various debt management and assistance programs. Modifications to these loans generally involve removing the available line of credit, placing loans on amortizing status, and lowering the contractual interest rate. Certain personal real estate, revolving home equity, and consumer loans were classified as consumer bankruptcy troubled debt restructurings because they were not reaffirmed by the borrower in bankruptcy proceedings. Interest on these loans is being recognized on an accrual basis, as the borrowers are continuing to make payments. Other consumer loans classified as troubled debt restructurings consist of various other workout arrangements with consumer customers.

Section 4013 of the CARES Act was signed into law on March 27, 2020, and includes a provision that short-term modifications are not troubled debt restructurings, if made on a good-faith basis in response to COVID-19 to borrowers who were current prior to December 31, 2019. The Company elected such option under the CARES Act when determining if a customer’s modification is subject to troubled debt restructuring classification. If it is deemed the modification is not short-term, not COVID-19 related or the customer does not meet the criteria under the guidance to be scoped out of troubled debt restructuring classification, the Company will evaluate the loan modifications under its existing framework and account for the modification as a troubled debt restructuring.

The initial guidance issued under the CARES Act was due to expire on December 31, 2020. During January 2021, the Consolidated Appropriations Act, 2021 was enacted and extended relief offered under the CARES Act related to the accounting and disclosure requirements for troubled debt restructurings as a result of COVID-19. The Company elected to extend its application of this guidance through December 31, 2021.
The table below shows the balances of troubled debt restructurings by accrual status at December 31, 2021 and 2020.

December 31
(In thousands)20212020
Accruing loans:
Commercial
$46,867 $117,740 
Assistance programs
6,146 7,804 
Other consumer
4,787 5,194 
Non-accrual loans
7,087 9,889 
Total troubled debt restructurings
$64,887 $140,627 

The table below shows the balance of troubled debt restructurings by loan classification at December 31, 2021, in addition to the outstanding balances of these restructured loans which the Company considers to have been in default at any time during the past twelve months. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.

(In thousands)December 31, 2021Balance 90 days past due at any time during previous 12 months
Commercial:
Business
$14,753 $— 
Real estate – construction and land
10,296 — 
Real estate – business
27,626 — 
Personal Banking:
Real estate – personal
3,419 682 
Consumer
2,731 171 
Revolving home equity
22 — 
Consumer credit card
6,040 605 
Total troubled debt restructurings
$64,887 $1,458 

For those loans on non-accrual status also classified as restructured, the modification did not create any further financial effect on the Company as those loans were already recorded at net realizable value. For those performing commercial loans classified as restructured, there were no concessions involving forgiveness of principal or interest and, therefore, there was no financial impact to the Company as a result of modification to these loans. However, the effects of modifications to loans under various debt management and assistance programs were estimated to decrease interest income by approximately $784 thousand on an annual, pre-tax basis, compared to amounts contractually owed. Performing consumer loans where the debt was not reaffirmed in bankruptcy did not result in a concession, as no changes to loan terms occurred in that process. Other modifications to consumer loans mainly involve extensions and other small modifications that did not include the forgiveness of principal or interest.

The allowance for credit losses related to troubled debt restructurings on non-accrual status is determined by individual evaluation, including collateral adequacy, using the same process as loans on non-accrual status which are not classified as troubled debt restructurings. Those performing loans classified as troubled debt restructurings are accruing loans which management expects to collect under contractual terms. Performing commercial loans having no other concessions granted other than being renewed at non-market interest rates are judged to have similar risk characteristics as non-troubled debt commercial loans and are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience and current economic factors. Performing personal banking loans classified as troubled debt restructurings resulted from the borrower not reaffirming the debt during bankruptcy and have had no other concession granted, other than the Bank's future limitations on collecting payment deficiencies or in pursuing foreclosure actions. As such, they have similar risk characteristics as non-troubled debt personal banking loans and are evaluated collectively based on loan type, delinquency, historical experience and current economic factors.
If a troubled debt restructuring defaults and is already on non-accrual status, the allowance for credit losses continues to be based on individual evaluation, using discounted expected cash flows or the fair value of collateral. If an accruing, troubled debt restructuring defaults, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin.

The Company had no commitments at December 31, 2021 to lend additional funds to borrowers with restructured loans, compared to commitments of $10.7 million at December 31, 2020.

Loans held for sale
The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company has elected the fair value option for these loans. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in Note 19. The loans are primarily sold to FNMA and FHLMC. At December 31, 2021, the fair value of these loans was $5.6 million, and the unpaid principal balance was $5.4 million.

The Company also designates certain student loan originations as held for sale. The borrowers are credit-worthy students who are attending colleges and universities. The loans are intended to be sold in the secondary market, and the Company maintains contracts with Sallie Mae to sell the loans within 210 days after the last disbursement to the student. These loans are carried at lower of cost or fair value, which at December 31, 2021 totaled $3.0 million.

At December 31, 2021, none of the loans held for sale were on non-accrual status or 90 days past due and still accruing.

Foreclosed real estate/repossessed assets
The Company’s holdings of foreclosed real estate totaled $115 thousand and $93 thousand at December 31, 2021 and 2020, respectively. Personal property acquired in repossession, generally autos, marine and recreational vehicles (RV), totaled $1.1 million and $1.4 million at December 31, 2021 and 2020, respectively. Upon acquisition, these assets are recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. They are subsequently carried at the lower of this cost basis or fair value less estimated selling costs.