Accrued interest receivable totaled $75.9 million and $71.9 million at September 30, 2024 and December 31, 2023, respectively, and was included within other assets on the consolidated balance sheets. For the three months ended September 30, 2024, the Company wrote-off accrued interest by reversing interest income of $56 thousand and $1.5 million in the Commercial and Personal Banking portfolios, respectively. Similarly, for the nine months ended September 30, 2024, the Company wrote off accrued interest of $491 thousand and $4.6 million in the Commercial and Personal Banking portfolios, respectively. For the three months ended September 30, 2023, the Company reversed interest income of $237 thousand and $1.2 million in the Commercial and Personal Banking portfolios, respectively, and in the nine months ended September 30, 2023, reversed $313 thousand and $3.4 million in the Commercial and Personal Banking portfolios, respectively.

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, various interest rates, unemployment rate, 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. 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 Assumption	September 30, 2024	June 30, 2024

Overall economic forecast	•Economic growth expected to remain steady with only a slight rise in unemployment rate •Inflation expected to move closer to the Federal Reserve's 2% target •Expected the Federal Reserve will cut rates every other meeting in 2025	•Economic growth expected to slightly cool with no significant rise in layoffs or unemployment rate •Inflation expected to moderate •Expectations the Federal Reserve will start cutting rates in September 2024
Reasonable and supportable period and related reversion period	•Reasonable and supportable period of one year •Reversion to historical average loss rates within two quarters using a straight-line method	•Reasonable and supportable period of one year •Reversion to historical average loss rates within two quarters using a straight-line method
Forecasted macro-economic variables	•Unemployment rate is 4.3% during the supportable forecast period •Real GDP growth ranges from 1.8% to 2.2% •BBB corporate yield from 4.9% to 5.0% •Housing Price Index from 320.5 to 328.1	•Unemployment rate ranges from 4.0% to 4.2% during the reasonable and supportable forecast period •Real GDP growth ranges from 1.7% to 2.2% •BBB corporate yield from 5.0% to 5.4% •Housing Price Index from 321.2 to 327.1
Prepayment assumptions	Commercial loans •Pools ranging from 0% to 5% Personal banking loans •Ranging from 7.9% to 22.9% for most loan pools •Consumer credit cards 66.6%	Commercial loans •Pools ranging from 0% to 5% Personal banking loans •Ranging from 7.7% to 22.7% for most loan pools •Consumer credit cards 66.6%
Qualitative factors	Added qualitative factors related to: •Changes in the composition of the loan portfolios •Certain industries experiencing stress or emerging concerns within the portfolio •Loans downgraded to special mention, substandard, or non-accrual status •Certain portfolios where the model assumptions do not capture all identified loss risk	Added qualitative factors related to: •Changes in the composition of the loan portfolios •Certain industries experiencing stress or emerging concerns within the portfolio •Certain portfolios sensitive to unusually high rate of inflation and supply chain issues •Loans downgraded to special mention, substandard, or non-accrual status •Certain portfolios where the model assumptions do not capture all identified loss risk

Updated information on inflation and labor market trends could impact the Federal Reserve's decision on the timing and degree of rate reductions. The market's response to these events along with other economic, political, and social developments regionally, nationally, and even globally could significantly modify economic projections used in the estimation of the allowance for credit losses. The upcoming presidential election could result in policy changes that might also impact the estimation of the allowance for credit losses.


	For the Three Months Ended September 30, 2024						For the Nine Months Ended September 30, 2024
(In thousands)	Commercial		Personal Banking		Total		Commercial		Personal Banking		Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS


Balance at beginning of period	$	107,217	$	51,340	$	158,557	$	108,201	$	54,194	$	162,395
Provision for credit losses on loans	(63)		11,924		11,861		(551)		27,208		26,657
Deductions:
Loans charged off	362		11,395		11,757		1,528		33,262		34,790
Less recoveries on loans	255		1,923		2,178		925		5,652		6,577
Net loan charge-offs (recoveries)	107		9,472		9,579		603		27,610		28,213
Balance September 30, 2024	$	107,047	$	53,792	$	160,839	$	107,047	$	53,792	$	160,839
LIABILITY FOR UNFUNDED LENDING COMMITMENTS


Balance at beginning of period	$	19,363	$	1,342	$	20,705	$	23,909	$	1,337	$	25,246
Provision for credit losses on unfunded lending commitments	(2,715)		(6)		(2,721)		(7,261)		(1)		(7,262)
Balance September 30, 2024	$	16,648	$	1,336	$	17,984	$	16,648	$	1,336	$	17,984
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$	123,695	$	55,128	$	178,823	$	123,695	$	55,128	$	178,823


	For the Three Months Ended September 30, 2023						For the Nine Months Ended September 30, 2023
(In thousands)	Commercial		Personal Banking		Total		Commercial		Personal Banking		Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS


Balance at beginning of period	$	108,024	$	50,661	$	158,685	$	103,293	$	46,843	$	150,136
Provision for credit losses on loans	5,201		8,142		13,343		10,203		24,952		35,155
Deductions:
Loans charged off	2,664		9,262		11,926		3,263		26,549		29,812
Less recoveries on loans	66		2,076		2,142		394		6,371		6,765
Net loan charge-offs (recoveries)	2,598		7,186		9,784		2,869		20,178		23,047
Balance September 30, 2023	$	110,627	$	51,617	$	162,244	$	110,627	$	51,617	$	162,244
LIABILITY FOR UNFUNDED LENDING COMMITMENTS


Balance at beginning of period	$	27,842	$	1,393	$	29,235	$	31,743	$	1,377	$	33,120
Provision for credit losses on unfunded lending commitments	(1,724)		26		(1,698)		(5,625)		42		(5,583)
Balance September 30, 2023	$	26,118	$	1,419	$	27,537	$	26,118	$	1,419	$	27,537
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$	136,745	$	53,036	$	189,781	$	136,745	$	53,036	$	189,781


(In thousands)	Current or Less Than 30 Days Past Due		30 – 89 Days Past Due		90 Days Past Due and Still Accruing		Non-accrual		Total
September 30, 2024
Commercial:
Business	$	6,041,090	$	6,388	$	496	$	354	$	6,048,328
Real estate – construction and land	1,381,108		499		—		—		1,381,607
Real estate – business	3,563,683		8,372		—		14,944		3,586,999
Personal Banking:
Real estate – personal	3,016,598		17,048		8,601		1,144		3,043,391
Consumer	2,076,058		28,424		3,799		—		2,108,281
Revolving home equity	337,653		1,711		1,035		1,977		342,376
Consumer credit card	559,056		7,635		8,055		—		574,746
Overdrafts	4,030		242		—		—		4,272
Total	$	16,979,276	$	70,319	$	21,986	$	18,419	$	17,090,000
December 31, 2023
Commercial:
Business	$	5,985,713	$	29,087	$	614	$	3,622	$	6,019,036
Real estate – construction and land	1,446,764		—		—		—		1,446,764
Real estate – business	3,714,579		4,582		85		60		3,719,306
Personal Banking:
Real estate – personal	2,999,988		14,841		9,559		1,653		3,026,041
Consumer	2,036,353		38,217		3,153		—		2,077,723
Revolving home equity	315,483		1,564		870		1,977		319,894
Consumer credit card	574,805		7,525		7,583		—		589,913
Overdrafts	6,553		249		—		—		6,802
Total	$	17,080,238	$	96,065	$	21,864	$	7,312	$	17,205,479

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.

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.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
September 30, 2024
Business
Risk Rating:
Pass	$	978,443	$	1,039,903	$	689,744	$	436,950	$	184,997	$	390,233	$	2,081,711	$	5,801,981
Special mention	17,777		10,098		9,521		21,123		156		2,187		65,461		126,323
Substandard	2,922		15,055		11,514		2,563		6,100		8,974		72,542		119,670
Non-accrual	1		80		1		—		—		272		—		354
Total Business:	$	999,143	$	1,065,136	$	710,780	$	460,636	$	191,253	$	401,666	$	2,219,714	$	6,048,328
Gross write-offs for the nine months ended September 30, 2024	$	200	$	245	$	40	$	—	$	—	$	17	$	1,026	$	1,528
Real estate-construction
Risk Rating:
Pass	$	261,113	$	440,772	$	546,057	$	92,990	$	3,240	$	2,821	$	29,463	$	1,376,456

Substandard	2,414		2,737		—		—		—		—		—		5,151

Total Real estate-construction:	$	263,527	$	443,509	$	546,057	$	92,990	$	3,240	$	2,821	$	29,463	$	1,381,607
Gross write-offs for the nine months ended September 30, 2024	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate-business
Risk Rating:
Pass	$	504,562	$	676,908	$	811,977	$	460,716	$	378,939	$	398,500	$	94,064	$	3,325,666
Special mention	681		15,500		18,047		14,351		2,217		1,522		—		52,318
Substandard	1,294		24,735		32,143		16,342		4,041		115,414		102		194,071
Non-accrual	—		—		—		—		14,872		72		—		14,944
Total Real estate-business:	$	506,537	$	717,143	$	862,167	$	491,409	$	400,069	$	515,508	$	94,166	$	3,586,999
Gross write-offs for the nine months ended September 30, 2024	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial loans
Risk Rating:
Pass	$	1,744,118	$	2,157,583	$	2,047,778	$	990,656	$	567,176	$	791,554	$	2,205,238	$	10,504,103
Special mention	18,458		25,598		27,568		35,474		2,373		3,709		65,461		178,641
Substandard	6,630		42,527		43,657		18,905		10,141		124,388		72,644		318,892
Non-accrual	1		80		1		—		14,872		344		—		15,298
Total Commercial loans:	$	1,769,207	$	2,225,788	$	2,119,004	$	1,045,035	$	594,562	$	919,995	$	2,343,343	$	11,016,934
Gross write-offs for the nine months ended September 30, 2024	$	200	$	245	$	40	$	—	$	—	$	17	$	1,026	$	1,528


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2023
Business
Risk Rating:
Pass	$	1,609,685	$	839,511	$	555,991	$	273,138	$	215,988	$	257,177	$	2,096,108	$	5,847,598
Special mention	19,639		3,412		19,489		643		412		2,485		43,054		89,134
Substandard	5,256		8,666		6,891		20,854		1,422		10,235		25,358		78,682
Non-accrual	—		130		1,184		—		—		2,308		—		3,622
Total Business:	$	1,634,580	$	851,719	$	583,555	$	294,635	$	217,822	$	272,205	$	2,164,520	$	6,019,036
Gross write-offs for the year ended December 31, 2023	$	—	$	2,260	$	57	$	41	$	—	$	—	$	1,393	$	3,751
Real estate-construction
Risk Rating:
Pass	$	476,489	$	579,933	$	295,841	$	41,418	$	498	$	2,834	$	31,670	$	1,428,683
Special mention	3,068		15,013		—		—		—		—		—		18,081


Total Real estate-construction:	$	479,557	$	594,946	$	295,841	$	41,418	$	498	$	2,834	$	31,670	$	1,446,764
Gross write-offs for the year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real estate- business
Risk Rating:
Pass	$	807,631	$	1,063,189	$	510,397	$	433,030	$	311,457	$	325,738	$	94,432	$	3,545,874
Special mention	16,650		8,619		451		884		9,253		733		—		36,590
Substandard	2,952		18,463		27,914		17,430		11,636		58,387		—		136,782
Non-accrual	—		—		—		—		—		60		—		60
Total Real-estate business:	$	827,233	$	1,090,271	$	538,762	$	451,344	$	332,346	$	384,918	$	94,432	$	3,719,306
Gross write-offs for the year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	134	$	—	$	134
Commercial loans
Risk Rating:
Pass	$	2,893,805	$	2,482,633	$	1,362,229	$	747,586	$	527,943	$	585,749	$	2,222,210	$	10,822,155
Special mention	39,357		27,044		19,940		1,527		9,665		3,218		43,054		143,805
Substandard	8,208		27,129		34,805		38,284		13,058		68,622		25,358		215,464
Non-accrual	—		130		1,184		—		—		2,368		—		3,682
Total Commercial loans:	$	2,941,370	$	2,536,936	$	1,418,158	$	787,397	$	550,666	$	659,957	$	2,290,622	$	11,185,106
Gross write-offs for the year ended December 31, 2023	$	—	$	2,260	$	57	$	41	$	—	$	134	$	1,393	$	3,885


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
September 30, 2024
Real estate-personal
Current to 90 days past due	$	289,567	$	400,647	$	417,239	$	493,672	$	658,047	$	763,703	$	10,771	$	3,033,646
Over 90 days past due	73		1,343		1,545		1,883		1,795		1,962		—		8,601
Non-accrual	—		—		85		113		—		946		—		1,144
Total Real estate-personal:	$	289,640	$	401,990	$	418,869	$	495,668	$	659,842	$	766,611	$	10,771	$	3,043,391
Gross write-offs for the nine months ended September 30, 2024	$	—	$	82	$	96	$	83	$	—	$	22	$	—	$	283
Consumer
Current to 90 days past due	$	331,707	$	408,155	$	255,740	$	184,678	$	84,094	$	67,457	$	772,651	$	2,104,482
Over 90 days past due	585		383		513		161		116		285		1,756		3,799

Total Consumer:	$	332,292	$	408,538	$	256,253	$	184,839	$	84,210	$	67,742	$	774,407	$	2,108,281
Gross write-offs for the nine months ended September 30, 2024	$	482	$	2,173	$	2,089	$	1,017	$	408	$	214	$	1,722	$	8,105
Revolving home equity
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	339,364	$	339,364
Over 90 days past due	—		—		—		—		—		—		1,035		1,035
Non-accrual	—		—		—		—		—		—		1,977		$	1,977
Total Revolving home equity:	$	—	$	—	$	—	$	—	$	—	$	—	$	342,376	$	342,376
Gross write-offs for the nine months ended September 30, 2024	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Consumer credit card
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	566,691	$	566,691
Over 90 days past due	—		—		—		—		—		—		8,055		8,055

Total Consumer credit card:	$	—	$	—	$	—	$	—	$	—	$	—	$	574,746	$	574,746
Gross write-offs for the nine months ended September 30, 2024	$	—	$	—	$	—	$	—	$	—	$	—	$	22,790	$	22,790
Overdrafts
Current to 90 days past due	$	4,272	$	—	$	—	$	—	$	—	$	—	$	—	$	4,272


Total Overdrafts:	$	4,272	$	—	$	—	$	—	$	—	$	—	$	—	$	4,272
Gross write-offs for the nine months ended September 30, 2024	$	2,084	$	—	$	—	$	—	$	—	$	—	$	—	$	2,084
Personal banking loans
Current to 90 days past due	$	625,546	$	808,802	$	672,979	$	678,350	$	742,141	$	831,160	$	1,689,477	$	6,048,455
Over 90 days past due	658		1,726		2,058		2,044		1,911		2,247		10,846		21,490
Non-accrual	—		—		85		113		—		946		1,977		3,121
Total Personal banking loans:	$	626,204	$	810,528	$	675,122	$	680,507	$	744,052	$	834,353	$	1,702,300	$	6,073,066
Gross write-offs for the nine months ended September 30, 2024	$	2,566	$	2,255	$	2,185	$	1,100	$	408	$	236	$	24,512	$	33,262


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2023
Real estate-personal
Current to 90 days past due	$	455,703	$	452,153	$	533,313	$	711,442	$	257,159	$	596,439	$	8,620	$	3,014,829
Over 90 days past due	3,319		1,650		2,222		834		44		1,490		—		9,559
Non-accrual	—		261		167		—		157		1,068		—		1,653
Total Real estate-personal:	$	459,022	$	454,064	$	535,702	$	712,276	$	257,360	$	598,997	$	8,620	$	3,026,041
Gross write-offs for the year ended December 31, 2023	$	—	$	18	$	—	$	—	$	—	$	23	$	—	$	41
Consumer
Current to 90 days past due	$	518,619	$	340,104	$	258,348	$	127,208	$	56,394	$	51,302	$	722,595	$	2,074,570
Over 90 days past due	391		210		194		24		54		421		1,859		3,153

Total Consumer:	$	519,010	$	340,314	$	258,542	$	127,232	$	56,448	$	51,723	$	724,454	$	2,077,723
Gross write-offs for the year ended December 31, 2023	$	926	$	2,891	$	1,939	$	770	$	376	$	370	$	1,051	$	8,323
Revolving home equity
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	317,047	$	317,047
Over 90 days past due	—		—		—		—		—		—		870		870
Non-accrual	—		—		—		—		—		—		1,977		$	1,977
Total Revolving home equity:	$	—	$	—	$	—	$	—	$	—	$	—	$	319,894	$	319,894
Gross write-offs for the year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	11	$	11
Consumer credit card
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	582,330	$	582,330
Over 90 days past due	—		—		—		—		—		—		7,583		7,583

Total Consumer credit card:	$	—	$	—	$	—	$	—	$	—	$	—	$	589,913	$	589,913
Gross write-offs for the year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	24,105	$	24,105
Overdrafts
Current to 90 days past due	$	6,802	$	—	$	—	$	—	$	—	$	—	$	—	$	6,802


Total Overdrafts:	$	6,802	$	—	$	—	$	—	$	—	$	—	$	—	$	6,802
Gross write-offs for the year ended December 31, 2023	$	3,803	$	—	$	—	$	—	$	—	$	—	$	—	$	3,803
Personal banking loans
Current to 90 days past due	$	981,124	$	792,257	$	791,661	$	838,650	$	313,553	$	647,741	$	1,630,592	$	5,995,578
Over 90 days past due	3,710		1,860		2,416		858		98		1,911		10,312		21,165
Non-accrual	—		261		167		—		157		1,068		1,977		3,630
Total Personal banking loans:	$	984,834	$	794,378	$	794,244	$	839,508	$	313,808	$	650,720	$	1,642,881	$	6,020,373
Gross write-offs for the year ended December 31, 2023	$	4,729	$	2,909	$	1,939	$	770	$	376	$	393	$	25,167	$	36,283

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 $167.7 million at September 30, 2024 and $168.9 million at December 31, 2023. The table also excludes consumer loans related to the Company's patient healthcare loan program, which totaled $225.2 million at September 30, 2024 and $211.3 million at December 31, 2023. 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 September 30, 2024 and December 31, 2023 by FICO score.


Personal Banking Loans
	% of Loan Category
	Real Estate - Personal		Consumer		Revolving Home Equity		Consumer Credit Card
September 30, 2024
FICO score:
Under 600	2.3	%	2.4	%	2.0	%	5.0	%
600 - 659	2.3		3.9		3.1		12.1
660 - 719	7.8		13.4		10.3		29.0
720 - 779	20.7		22.3		23.9		26.7
780 and over	66.9		58.0		60.7		27.2
Total	100.0	%	100.0	%	100.0	%	100.0	%
December 31, 2023
FICO score:
Under 600	2.0	%	2.5	%	1.9	%	4.7	%
600 - 659	2.3		4.3		3.3		12.1
660 - 719	8.5		12.9		10.9		29.2
720 - 779	21.9		28.2		22.4		27.0
780 and over	65.3		52.1		61.5		27.0
Total	100.0	%	100.0	%	100.0	%	100.0	%

The Company's modifications of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended. Modifications on personal real estate loans are primarily those placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often modified under debt counseling programs that can reduce the contractual rate or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers.


	For the Three Months Ended September 30, 2024
(Dollars in thousands)	Term Extension		Payment Delay		Interest Rate Reduction		Interest/Fees Forgiven		Other		Total		% of Total Loan Category
September 30, 2024
Commercial:
Business	$	36,892	$	—	$	—	$	—	$	—	$	36,892	0.6	%
Real estate – construction and land	1,915		—		—		—		—		1,915		0.1
Real estate – business	70,091		—		—		—		—		70,091		2.0
Personal Banking:
Real estate – personal	42		4,024		—		—		—		4,066		0.1
Consumer	—		720		30		—		—		750		—

Consumer credit card	—		—		931		—		—		931		0.2

Total	$	108,940	$	4,744	$	961	$	—	$	—	$	114,645	0.7	%

	For the Nine Months Ended September 30, 2024
September 30, 2024
Commercial:
Business	$	54,608	$	—	$	—	$	—	$	—	$	54,608	0.9	%
Real estate – construction and land	1,915		—		—		—		—		1,915		0.1
Real estate – business	117,718		—		—		—		—		117,718		3.3
Personal Banking:
Real estate – personal	42		6,586		—		—		—		6,628		0.2
Consumer	—		720		84		—		44		848		—

Consumer credit card	—		—		2,642		—		—		2,642		0.5

Total	$	174,283	$	7,306	$	2,726	$	—	$	44	$	184,359	1.1	%


	For the Three Months Ended September 30, 2023
(Dollars in thousands)	Term Extension		Payment Delay		Interest Rate Reduction		Interest/Fees Forgiven		Other		Total		% of Total Loan Category
September 30, 2023
Commercial:
Business	$	3,792	$	—	$	—	$	—	$	—	$	3,792	0.1	%

Real estate – business	56,552		—		—		—		—		56,552		1.6
Personal Banking:
Real estate – personal	45		773		—		—		—		818		—
Consumer	—		—		49		—		31		80		—

Consumer credit card	—		—		935		72		—		1,007		0.2

Total	$	60,389	$	773	$	984	$	72	$	31	$	62,249	0.4	%

	For the Nine Months Ended September 30, 2023
September 30, 2023
Commercial:
Business	$	16,705	$	—	$	—	$	—	$	—	$	16,705	0.3	%

Real estate – business	106,034		—		—		—		—		106,034		2.9
Personal Banking:
Real estate – personal	289		3,313		—		—		—		3,602		0.1
Consumer	30		70		69		—		86		255		—

Consumer credit card	—		—		1,967		485		—		2,452		0.4

Total	$	123,058	$	3,383	$	2,036	$	485	$	86	$	129,048	0.8	%

The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical experience on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a change to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are placed on non-accrual status, the Company determines the allowance for credit losses on an individual evaluation, using the same process that it utilizes for other loans on non-accrual status. Modifications made to commercial loans which are not on non-accrual status for borrowers experiencing financial difficulty are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience, and current economic factors. Modifications made to borrowers experiencing financial difficulty for personal banking loans which are not on non-accrual status are collectively evaluated based on loan type, delinquency, historical experience, and current economic factors.

If a loan to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the allowance for credit losses continues to be based on individual evaluation, if that loan is already on non-accrual status. For those loans, the allowance for credit losses is estimated using discounted expected cash flows or the fair value of collateral. If an accruing loan made to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, 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.


	Term Extension
	Three Months Ended September 30, 2024	Three Months Ended September 30, 2023
Commercial:
Business	Extended maturity by a weighted average of 5 months.	Extended maturity by a weighted average of 3 months.
Real estate – construction and land	Extended maturity by a weighted average of 2 months.
Real estate – business	Extended maturity by a weighted average of 11 months.	Extended maturity by a weighted average of 12 months.
Personal Banking:
Real estate – personal	Extended maturity by a weighted average of 2 months.	Extended maturity by a weighted average of 6 months.





	Nine Months Ended September 30, 2024	Nine Months Ended September 30, 2023
Commercial:
Business	Extended maturity by a weighted average of 5 months.	Extended maturity by a weighted average of 8 months.
Real estate – construction and land	Extended maturity by a weighted average of 2 months.
Real estate – business	Extended maturity by a weighted average of 11 months.	Extended maturity by a weighted average of 13 months.
Personal Banking:
Real estate – personal	Extended maturity by a weighted average of 5 months.	Extended maturity by a weighted average of 7 months.
Consumer		Extended maturity by 10 years.


	Payment Delay
	Three Months Ended September 30, 2024	Three Months Ended September 30, 2023




Personal Banking:
Real estate – personal	Deferred certain payments by a weighted average of 15 years.	Deferred certain payments by a weighted average of 22 years.
Consumer	Deferred certain payments by a weighted average of 19 years.



	Nine Months Ended September 30, 2024	Nine Months Ended September 30, 2023





Real estate – personal	Deferred certain payments by a weighted average of 10 years.	Deferred certain payments by a weighted average of 20 years.
Consumer	Deferred certain payments by a weighted average of 19 years.	Deferred certain payments by a weighted average of 71 months.


	Interest Rate Reduction
	Three Months Ended September 30, 2024	Three Months Ended September 30, 2023




Personal Banking:

Consumer	Reduced contractual interest rate from average 21% to 6%.	Reduced contractual interest rate from average 21% to 6%.

Consumer credit card	Reduced contractual interest rate from average 21% to 6%.	Reduced contractual interest rate from average 21% to 6%.


	Nine Months Ended September 30, 2024	Nine Months Ended September 30, 2023




Personal Banking:

Consumer	Reduced contractual interest rate from average 21% to 6%.	Reduced contractual interest rate from average 21% to 6%.

Consumer credit card	Reduced contractual interest rate from average 21% to 6%.	Reduced contractual interest rate from average 21% to 6%.

The following tables provide the amortized cost basis at September 30, 2024 of loans to borrowers experiencing financial difficulty that had a payment default during the three and nine months ended September 30, 2024 and were modified within the 12 months preceding the payment default, as well as the amortized cost basis at September 30, 2023 of loans to borrowers experiencing financial difficulty that had a payment default during the three and nine months ended September 30, 2023 and had been modified on or after January 1, 2023 (the date we adopted ASU 2022-02). For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.


	For the Three Months Ended September 30, 2024										For the Nine Months Ended September 30, 2024
(Dollars in thousands)	Term Extension		Payment Delay		Interest Rate Reduction		Interest/Fees Forgiven		Total			Term Extension		Payment Delay		Interest Rate Reduction		Interest/Fees Forgiven		Total
September 30, 2024
Commercial:
Business	$	14,872	$	—	$	—	$	—	$	14,872		$	14,872	$	—	$	—	$	—	$	14,872


Personal Banking:
Real estate – personal	—		2,600		—		—		2,600			—		3,728		—		—		3,728
Consumer	—		—		13		—		13			—		—		24		—		24

Consumer credit card	—		—		251		—		251			—		—		536		20		556

Total	$	14,872	$	2,600	$	264	$	—	$	17,736		$	14,872	$	3,728	$	560	$	20	$	19,180

	For the Three Months Ended September 30, 2023										For the Nine Months Ended September 30, 2023
(Dollars in thousands)	Term Extension		Payment Delay		Interest Rate Reduction		Interest/Fees Forgiven		Total			Term Extension		Payment Delay		Interest Rate Reduction		Interest/Fees Forgiven		Total
September 30, 2023




Personal Banking:
Real estate – personal	$	—	$	802	$	—	$	—	$	802		$	—	$	1,007	$	—	$	—	$	1,007
Consumer	—		—		19		—		19			—		—		30		—		30

Consumer credit card	—		—		235		157		392			—		—		274		158		432

Total	$	—	$	802	$	254	$	157	$	1,213		$	—	$	1,007	$	304	$	158	$	1,469

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 11. The loans are primarily sold to Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA). At September 30, 2024, the fair value of these loans was $1.6 million, and the unpaid principal balance was $1.6 million.

The Company’s holdings of foreclosed real estate totaled $1.0 million and $270 thousand at September 30, 2024 and December 31, 2023, respectively, and included in those amounts were $792 thousand and $270 thousand at September 30, 2024 and December 31, 2023, respectively, of foreclosed residential real estate properties held as a result of obtaining physical possession. Personal property acquired in repossession, generally autos, totaled $2.3 million and $1.8 million at September 30, 2024 and December 31, 2023. 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.