XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.2.2
Allowance for Credit Losses
9 Months Ended
Sep. 30, 2022
Allowance for Credit Losses  
Allowance for Credit Losses

4. Allowance for Credit Losses

​

The Company maintains the allowance for credit losses for loans and leases (the “ACL”) that is deducted from the amortized cost basis of loans and leases to present the net carrying value of loans and leases expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of loans and leases. While management utilizes its best judgment and information available, the ultimate appropriateness of the ACL is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company’s methodology is more fully described in our Annual Report on Form 10-K for the year ended December 31, 2021.

​

The Company also maintains an estimated reserve for unfunded commitments on the unaudited interim consolidated balance sheets. The reserve for unfunded commitments is reduced in the period in which the off-balance sheet financial instruments expire, loan funding occurs, or is otherwise settled.

​

Rollforward of the Allowance for Credit Losses

​

The following presents the activity in the ACL by class of loans and leases for the three and nine months ended September 30, 2022 and 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2022

​

​

Commercial Lending

​

Residential Lending

​

​

​

​

​

​

​

​

Commercial

​

Commercial

​

​

​

​

​

​

​

Home

​

​

​

​

​

​

​

​

and

​

Real

​

​

​

Lease

​

Residential

​

Equity

​

​

​

​

​

​

(dollars in thousands)

    

Industrial

    

Estate

    

Construction

    

Financing

    

Mortgage

    

Line

    

Consumer

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at beginning of period

​

$

15,924

​

$

44,726

​

$

5,367

​

$

1,398

​

$

33,635

​

$

4,734

​

$

43,158

​

$

148,942

Charge-offs

​

​

(328)

​

​

(750)

​

​

—

​

​

—

​

​

(1)

​

​

—

​

​

(3,986)

​

​

(5,065)

Recoveries

​

​

240

​

​

—

​

​

—

​

​

—

​

​

37

​

​

356

​

​

1,653

​

​

2,286

Provision

​

​

(703)

​

​

416

​

​

(643)

​

​

235

​

​

248

​

​

164

​

​

2,283

​

​

2,000

Balance at end of period

​

$

15,133

​

$

44,392

​

$

4,724

​

$

1,633

​

$

33,919

​

$

5,254

​

$

43,108

​

$

148,163

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2022

​

​

Commercial Lending

​

Residential Lending

​

​

​

​

​

​

​

​

Commercial

​

Commercial

​

​

​

​

​

​

​

Home

​

​

​

​

​

​

​

​

and

​

Real

​

​

​

Lease

​

Residential

​

Equity

​

​

​

​

​

​

(dollars in thousands)

  

Industrial

  

Estate

  

Construction

  

Financing

  

Mortgage

    

Line

  

Consumer

  

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at beginning of period

​

$

20,080

​

$

42,951

​

$

9,773

​

$

1,659

​

$

34,364

​

$

5,642

​

$

42,793

​

$

157,262

Charge-offs

​

​

(1,277)

​

​

(750)

​

​

—

​

​

—

​

​

(1)

​

​

(1,163)

​

​

(11,754)

​

​

(14,945)

Recoveries

​

​

594

​

​

14

​

​

—

​

​

60

​

​

245

​

​

575

​

​

5,741

​

​

7,229

Provision

​

​

(4,264)

​

​

2,177

​

​

(5,049)

​

​

(86)

​

​

(689)

​

​

200

​

​

6,328

​

​

(1,383)

Balance at end of period

​

$

15,133

​

$

44,392

​

$

4,724

​

$

1,633

​

$

33,919

​

$

5,254

​

$

43,108

​

$

148,163

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2021

​

​

Commercial Lending

​

Residential Lending

​

​

​

​

​

​

​

​

Commercial

​

Commercial

​

​

​

​

​

​

​

Home

​

​

​

​

​

​

​

​

and

​

Real

​

​

​

Lease

​

Residential

​

Equity

​

​

​

​

​

​

(dollars in thousands)

    

Industrial

    

Estate

    

Construction

    

Financing

    

Mortgage

    

Line

    

Consumer

    

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at beginning of period

​

$

23,063

​

$

47,033

​

$

10,152

​

$

3,067

​

$

34,208

​

$

6,250

​

$

45,375

​

$

169,148

Charge-offs

​

​

(224)

​

​

—

​

​

—

​

​

—

​

​

—

​

​

(235)

​

​

(2,926)

​

​

(3,385)

Recoveries

​

​

121

​

​

15

​

​

—

​

​

—

​

​

215

​

​

27

​

​

2,405

​

​

2,783

Provision

​

​

796

​

​

(3,449)

​

​

(398)

​

​

(833)

​

​

(655)

​

​

(325)

​

​

(2,436)

​

​

(7,300)

Balance at end of period

​

$

23,756

​

$

43,599

​

$

9,754

​

$

2,234

​

$

33,768

​

$

5,717

​

$

42,418

​

$

161,246

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2021

​

​

Commercial Lending

​

Residential Lending

​

​

​

​

​

​

​

​

Commercial

​

Commercial

​

​

​

​

​

​

​

Home

​

​

​

​

​

​

​

​

and

​

Real

​

​

​

Lease

​

Residential

​

Equity

​

​

​

​

​

​

(dollars in thousands)

  

Industrial

  

Estate

  

Construction

  

Financing

  

Mortgage

    

Line

  

Consumer

  

Total

Allowance for credit losses:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at beginning of year

​

$

24,711

​

$

58,123

​

$

10,039

​

$

3,298

​

$

40,461

​

$

7,163

​

$

64,659

​

$

208,454

Charge-offs

​

​

(1,517)

​

​

(66)

​

​

—

​

​

—

​

​

(98)

​

​

(235)

​

​

(13,384)

​

​

(15,300)

Recoveries

​

​

623

​

​

30

​

​

166

​

​

—

​

​

246

​

​

89

​

​

7,857

​

​

9,011

Provision

​

​

(61)

​

​

(14,488)

​

​

(451)

​

​

(1,064)

​

​

(6,841)

​

​

(1,300)

​

​

(16,714)

​

​

(40,919)

Balance at end of period

​

$

23,756

​

$

43,599

​

$

9,754

​

$

2,234

​

$

33,768

​

$

5,717

​

$

42,418

​

$

161,246

​

Rollforward of the Reserve for Unfunded Commitments

​

The following presents the activity in the Reserve for Unfunded Commitments for the three and nine months ended September 30, 2022:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2022

​

​

Commercial Lending

​

Residential Lending

​

​

​

​

​

​

​

​

Commercial

​

Commercial

​

​

​

​

​

​

​

Home

​

​

​

​

​

​

​

​

and

​

Real

​

​

​

Lease

​

Residential

​

Equity

​

​

​

​

​

​

(dollars in thousands)

    

Industrial

    

Estate

    

Construction

    

Financing

    

Mortgage

    

Line

    

Consumer

    

Total

Reserve for unfunded commitments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at beginning of period

​

$

7,640

​

$

3,750

​

$

6,084

​

$

—

​

$

32

​

$

11,423

​

$

29

​

$

28,958

Provision

​

​

478

​

​

(1,397)

​

​

630

​

​

—

​

​

(4)

​

​

1,473

​

​

3

​

​

1,183

Balance at end of period

​

$

8,118

​

$

2,353

​

$

6,714

​

$

—

​

$

28

​

$

12,896

​

$

32

​

$

30,141

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2022

​

​

Commercial Lending

​

Residential Lending

​

​

​

​

​

​

​

​

Commercial

​

Commercial

​

​

​

​

​

​

​

Home

​

​

​

​

​

​

​

​

and

​

Real

​

​

​

Lease

​

Residential

​

Equity

​

​

​

​

​

​

(dollars in thousands)

  

Industrial

  

Estate

  

Construction

  

Financing

  

Mortgage

  

Line

  

Consumer

  

Total

Reserve for unfunded commitments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at beginning of period

​

$

8,615

​

$

2,114

​

$

8,963

​

$

—

​

$

15

​

$

10,546

​

$

69

​

$

30,322

Provision

​

​

(497)

​

​

239

​

​

(2,249)

​

​

—

​

​

13

​

​

2,350

​

​

(37)

​

​

(181)

Balance at end of period

​

$

8,118

​

$

2,353

​

$

6,714

​

$

—

​

$

28

​

$

12,896

​

$

32

​

$

30,141

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2021

​

​

Commercial Lending

​

Residential Lending

​

​

​

​

​

​

​

​

Commercial

​

Commercial

​

​

​

​

​

​

​

Home

​

​

​

​

​

​

​

​

and

​

Real

​

​

​

Lease

​

Residential

​

Equity

​

​

​

​

​

​

(dollars in thousands)

    

Industrial

    

Estate

    

Construction

    

Financing

    

Mortgage

    

Line

    

Consumer

    

Total

Reserve for unfunded commitments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at beginning of period

​

$

12,808

​

$

978

​

$

7,873

​

$

—

​

$

—

​

$

7,521

​

$

42

​

$

29,222

Provision

​

​

446

​

​

255

​

​

902

​

​

—

​

​

—

​

​

1,669

​

​

28

​

​

3,300

Balance at end of period

​

$

13,254

​

$

1,233

​

$

8,775

​

$

—

​

$

—

​

$

9,190

​

$

70

​

$

32,522

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2021

​

​

Commercial Lending

​

Residential Lending

​

​

​

​

​

​

​

​

Commercial

​

Commercial

​

​

​

​

​

​

​

Home

​

​

​

​

​

​

​

​

and

​

Real

​

​

​

Lease

​

Residential

​

Equity

​

​

​

​

​

​

(dollars in thousands)

  

Industrial

  

Estate

  

Construction

  

Financing

  

Mortgage

  

Line

  

Consumer

  

Total

Reserve for unfunded commitments:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance at beginning of period

​

$

11,719

​

$

1,328

​

$

9,037

​

$

—

​

$

2

​

$

8,452

​

$

65

​

$

30,603

Provision

​

​

1,535

​

​

(95)

​

​

(262)

​

​

—

​

​

(2)

​

​

738

​

​

5

​

​

1,919

Balance at end of period

​

$

13,254

​

$

1,233

​

$

8,775

​

$

—

​

$

—

​

$

9,190

​

$

70

​

$

32,522

​

Credit Quality Information

​

The Company performs an internal loan review and grading or scoring procedures on an ongoing basis. The review provides management with periodic information as to the quality of the loan portfolio and effectiveness of the Company’s lending policies and procedures. The objective of the loan review and grading or scoring procedures is to identify, in a timely manner, existing or emerging credit quality issues so that appropriate steps can be initiated to avoid or minimize future losses.

​

Loans and leases subject to grading primarily include: commercial and industrial loans, commercial real estate loans, construction loans and lease financing. Other loans subject to grading include installment loans to businesses or individuals for business and commercial purposes, overdraft lines of credit, commercial credit cards, and other credits as may be determined. Credit quality indicators for internally graded loans and leases are generally updated on an annual basis or on a quarterly basis for those loans and leases deemed to be of potentially higher risk.

​

An internal credit risk rating system is used to determine loan grade and is based on borrower credit risk and transactional risk. The loan grading process is a mechanism used to determine the risk of a particular borrower and is based on the following factors of a borrower: character, earnings and operating cash flow, asset and liability structure, debt capacity, management and controls, borrowing entity, and industry and operating environment.

​

Pass – “Pass” (uncriticized) loans and leases, are not considered to carry greater than normal risk. The borrower has the apparent ability to satisfy obligations to the Company, and therefore no loss in ultimate collection is anticipated.

​

Special Mention – Loans and leases that have potential weaknesses deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for assets or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

​

Substandard – Loans and leases that are inadequately protected by the current financial condition and paying capacity of the obligor or by any collateral pledged. Loans and leases so classified must have a well-defined weakness or weaknesses that jeopardize the collection of the debt. They are characterized by the distinct possibility that the bank may sustain some loss if the deficiencies are not corrected.

​

Doubtful – Loans and leases that have weaknesses found in substandard borrowers with the added provision that the weaknesses make collection of debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

​

Loss – Loans and leases classified as loss are considered uncollectible and of such little value that their continuance as an asset is not warranted. This classification does not mean that the loan or lease has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.

​

Loans that are primarily monitored for credit quality using FICO scores include: residential mortgage loans, home equity lines and consumer loans. FICO scores are calculated primarily based on a consideration of payment history, the current amount of debt, the length of credit history available, a recent history of new sources of credit and the mix of credit type. FICO scores are updated on a monthly, quarterly or bi-annual basis, depending on the product type.

​

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of September 30, 2022 was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Converted

​

​

​

​

​

Term Loans

​

Revolving

​

to Term

​

​

​

​

​

Amortized Cost Basis by Origination Year

​

Loans

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized

​

Amortized

​

​

​

(dollars in thousands)

​

2022

​

2021

​

2020

​

2019

​

2018

​

Prior

​

Cost Basis

​

Cost Basis

​

Total

Commercial Lending

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and Industrial

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Risk rating:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

310,400

​

$

425,853

​

$

55,272

​

$

177,670

​

$

55,923

​

$

151,156

​

$

709,823

​

$

15,997

​

$

1,902,094

Special Mention

​

​

2,179

​

​

274

​

​

1,492

​

​

2,562

​

​

209

​

​

1,776

​

​

31,747

​

​

467

​

​

40,706

Substandard

​

​

655

​

​

719

​

​

872

​

​

1,383

​

​

956

​

​

1,196

​

​

14,728

​

​

89

​

​

20,598

Other (1)

​

​

12,817

​

​

8,707

​

​

10,095

​

​

4,664

​

​

2,355

​

​

1,358

​

​

40,413

​

​

—

​

​

80,409

Total Commercial and Industrial

​

​

326,051

​

​

435,553

​

​

67,731

​

​

186,279

​

​

59,443

​

​

155,486

​

​

796,711

​

​

16,553

​

​

2,043,807

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Risk rating:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

700,785

​

​

696,763

​

​

355,992

​

​

548,364

​

​

449,754

​

​

1,242,315

​

​

66,075

​

​

—

​

​

4,060,048

Special Mention

​

​

183

​

​

—

​

​

559

​

​

14,965

​

​

515

​

​

9,549

​

​

687

​

​

—

​

​

26,458

Substandard

​

​

—

​

​

—

​

​

176

​

​

—

​

​

1,724

​

​

14,749

​

​

2

​

​

—

​

​

16,651

Other (1)

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

153

​

​

—

​

​

—

​

​

153

Total Commercial Real Estate

​

​

700,968

​

​

696,763

​

​

356,727

​

​

563,329

​

​

451,993

​

​

1,266,766

​

​

66,764

​

​

—

​

​

4,103,310

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Risk rating:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

83,233

​

​

225,116

​

​

84,312

​

​

92,856

​

​

116,344

​

​

86,722

​

​

13,443

​

​

—

​

​

702,026

Special Mention

​

​

—

​

​

—

​

​

—

​

​

229

​

​

—

​

​

—

​

​

—

​

​

—

​

​

229

Substandard

​

​

—

​

​

—

​

​

—

​

​

—

​

​

346

​

​

494

​

​

—

​

​

—

​

​

840

Other (1)

​

​

22,424

​

​

25,610

​

​

4,258

​

​

2,247

​

​

3,908

​

​

3,367

​

​

953

​

​

—

​

​

62,767

Total Construction

​

​

105,657

​

​

250,726

​

​

88,570

​

​

95,332

​

​

120,598

​

​

90,583

​

​

14,396

​

​

—

​

​

765,862

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Lease Financing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Risk rating:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

110,563

​

​

25,450

​

​

46,635

​

​

42,307

​

​

6,904

​

​

68,028

​

​

—

​

​

—

​

​

299,887

Special Mention

​

​

—

​

​

434

​

​

2,591

​

​

1,342

​

​

9

​

​

—

​

​

—

​

​

—

​

​

4,376

Substandard

​

​

—

​

​

—

​

​

196

​

​

14

​

​

13

​

​

1,352

​

​

—

​

​

—

​

​

1,575

Total Lease Financing

​

​

110,563

​

​

25,884

​

​

49,422

​

​

43,663

​

​

6,926

​

​

69,380

​

​

—

​

​

—

​

​

305,838

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Commercial Lending

​

$

1,243,239

​

$

1,408,926

​

$

562,450

​

$

888,603

​

$

638,960

​

$

1,582,215

​

$

877,871

​

$

16,553

​

$

7,218,817

(continued)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Converted

​

​

​

​

​

Term Loans

​

Revolving

​

to Term

​

​

​

​

​

Amortized Cost Basis by Origination Year

​

Loans

​

Loans

​

​

​

(continued)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized

​

Amortized

​

​

​

(dollars in thousands)

​

2022

​

2021

​

2020

​

2019

​

2018

​

Prior

​

Cost Basis

​

Cost Basis

​

Total

Residential Lending

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential Mortgage

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FICO:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

740 and greater

​

$

474,234

​

$

1,056,814

​

$

577,378

​

$

244,169

​

$

169,100

​

$

941,705

​

$

—

​

$

—

​

$

3,463,400

680 - 739

​

​

54,037

​

​

122,420

​

​

77,660

​

​

44,519

​

​

21,581

​

​

137,573

​

​

—

​

​

—

​

​

457,790

620 - 679

​

​

7,749

​

​

19,021

​

​

13,776

​

​

4,801

​

​

3,868

​

​

35,926

​

​

—

​

​

—

​

​

85,141

550 - 619

​

​

168

​

​

1,930

​

​

292

​

​

225

​

​

2,060

​

​

7,225

​

​

—

​

​

—

​

​

11,900

Less than 550

​

​

2,053

​

​

1,236

​

​

59

​

​

—

​

​

339

​

​

4,621

​

​

—

​

​

—

​

​

8,308

No Score (3)

​

​

16,029

​

​

14,771

​

​

6,874

​

​

13,004

​

​

16,023

​

​

50,871

​

​

—

​

​

—

​

​

117,572

Other (2)

​

​

19,155

​

​

18,827

​

​

15,436

​

​

9,398

​

​

9,229

​

​

29,468

​

​

5,861

​

​

556

​

​

107,930

Total Residential Mortgage

​

​

573,425

​

​

1,235,019

​

​

691,475

​

​

316,116

​

​

222,200

​

​

1,207,389

​

​

5,861

​

​

556

​

​

4,252,041

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Home Equity Line

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FICO:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

740 and greater

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

781,307

​

​

1,961

​

​

783,268

680 - 739

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

164,166

​

​

2,650

​

​

166,816

620 - 679

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

42,043

​

​

2,124

​

​

44,167

550 - 619

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

8,719

​

​

1,375

​

​

10,094

Less than 550

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

1,157

​

​

487

​

​

1,644

No Score (3)

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

4,642

​

​

—

​

​

4,642

Total Home Equity Line

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

1,002,034

​

​

8,597

​

​

1,010,631

Total Residential Lending

​

​

573,425

​

​

1,235,019

​

​

691,475

​

​

316,116

​

​

222,200

​

​

1,207,389

​

​

1,007,895

​

​

9,153

​

​

5,262,672

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer Lending

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FICO:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

740 and greater

​

​

167,566

​

​

120,725

​

​

59,620

​

​

50,907

​

​

30,750

​

​

12,114

​

​

116,628

​

​

195

​

​

558,505

680 - 739

​

​

80,920

​

​

72,861

​

​

41,177

​

​

36,236

​

​

19,242

​

​

10,311

​

​

68,968

​

​

569

​

​

330,284

620 - 679

​

​

19,673

​

​

32,216

​

​

15,779

​

​

19,379

​

​

11,622

​

​

8,584

​

​

30,441

​

​

1,033

​

​

138,727

550 - 619

​

​

2,159

​

​

5,975

​

​

5,859

​

​

9,266

​

​

6,476

​

​

5,188

​

​

9,803

​

​

983

​

​

45,709

Less than 550

​

​

520

​

​

1,557

​

​

2,631

​

​

4,311

​

​

2,106

​

​

1,991

​

​

2,923

​

​

379

​

​

16,418

No Score (3)

​

​

2,122

​

​

337

​

​

1

​

​

50

​

​

28

​

​

35

​

​

38,831

​

​

237

​

​

41,641

Other (2)

​

​

1,645

​

​

4,197

​

​

358

​

​

1,393

​

​

—

​

​

2,153

​

​

77,855

​

​

—

​

​

87,601

Total Consumer Lending

​

​

274,605

​

​

237,868

​

​

125,425

​

​

121,542

​

​

70,224

​

​

40,376

​

​

345,449

​

​

3,396

​

​

1,218,885

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans and Leases

​

$

2,091,269

​

$

2,881,813

​

$

1,379,350

​

$

1,326,261

​

$

931,384

​

$

2,829,980

​

$

2,231,215

​

$

29,102

​

$

13,700,374

(1)Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.
(2)Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.
(3)No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

​

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of December 31, 2021 was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Converted

​

​

​

​

​

Term Loans

​

Revolving

​

to Term

​

​

​

​

​

Amortized Cost Basis by Origination Year

​

Loans

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized

​

Amortized

​

​

​

(dollars in thousands)

​

2021

​

2020

​

2019

​

2018

​

2017

​

Prior

​

Cost Basis

​

Cost Basis

​

Total

Commercial Lending

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial and Industrial

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Risk rating:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

$

623,098

​

$

129,665

​

$

223,388

​

$

88,409

​

$

29,380

​

$

168,591

​

$

644,947

​

$

40,193

​

$

1,947,671

Special Mention

​

​

397

​

​

4,382

​

​

4,213

​

​

12,552

​

​

974

​

​

5,313

​

​

4,804

​

​

986

​

​

33,621

Substandard

​

​

354

​

​

1,380

​

​

1,951

​

​

1,285

​

​

60

​

​

3,551

​

​

17,893

​

​

1,043

​

​

27,517

Other (1)

​

​

13,277

​

​

7,070

​

​

7,741

​

​

4,453

​

​

1,995

​

​

370

​

​

43,384

​

​

—

​

​

78,290

Total Commercial and Industrial

​

​

637,126

​

​

142,497

​

​

237,293

​

​

106,699

​

​

32,409

​

​

177,825

​

​

711,028

​

​

42,222

​

​

2,087,099

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial Real Estate

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Risk rating:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

693,370

​

​

338,140

​

​

533,887

​

​

487,739

​

​

415,186

​

​

940,732

​

​

78,479

​

​

14,891

​

​

3,502,424

Special Mention

​

​

—

​

​

—

​

​

48,499

​

​

7,470

​

​

25,513

​

​

30,255

​

​

7,600

​

​

—

​

​

119,337

Substandard

​

​

—

​

​

—

​

​

—

​

​

1,776

​

​

164

​

​

15,303

​

​

459

​

​

—

​

​

17,702

Other (1)

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

160

​

​

—

​

​

—

​

​

160

Total Commercial Real Estate

​

​

693,370

​

​

338,140

​

​

582,386

​

​

496,985

​

​

440,863

​

​

986,450

​

​

86,538

​

​

14,891

​

​

3,639,623

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Risk rating:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

154,558

​

​

107,767

​

​

210,314

​

​

155,311

​

​

62,770

​

​

48,021

​

​

22,859

​

​

—

​

​

761,600

Special Mention

​

​

—

​

​

—

​

​

244

​

​

707

​

​

—

​

​

356

​

​

—

​

​

—

​

​

1,307

Substandard

​

​

—

​

​

—

​

​

—

​

​

363

​

​

—

​

​

839

​

​

—

​

​

—

​

​

1,202

Other (1)

​

​

26,835

​

​

8,875

​

​

4,317

​

​

4,308

​

​

2,684

​

​

2,048

​

​

793

​

​

—

​

​

49,860

Total Construction

​

​

181,393

​

​

116,642

​

​

214,875

​

​

160,689

​

​

65,454

​

​

51,264

​

​

23,652

​

​

—

​

​

813,969

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Lease Financing

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Risk rating:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pass

​

​

33,980

​

​

60,650

​

​

48,236

​

​

9,449

​

​

15,009

​

​

57,130

​

​

—

​

​

—

​

​

224,454

Special Mention

​

​

501

​

​

2,702

​

​

1,506

​

​

311

​

​

153

​

​

—

​

​

—

​

​

—

​

​

5,173

Substandard

​

​

—

​

​

270

​

​

140

​

​

16

​

​

871

​

​

470

​

​

—

​

​

—

​

​

1,767

Total Lease Financing

​

​

34,481

​

​

63,622

​

​

49,882

​

​

9,776

​

​

16,033

​

​

57,600

​

​

—

​

​

—

​

​

231,394

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Commercial Lending

​

$

1,546,370

​

$

660,901

​

$

1,084,436

​

$

774,149

​

$

554,759

​

$

1,273,139

​

$

821,218

​

$

57,113

​

$

6,772,085

(continued)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revolving

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Loans

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Converted

​

​

​

​

​

Term Loans

​

Revolving

​

to Term

​

​

​

​

​

Amortized Cost Basis by Origination Year

​

Loans

​

Loans

​

​

​

(continued)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortized

​

Amortized

​

​

​

(dollars in thousands)

​

2021

​

2020

​

2019

​

2018

​

2017

​

Prior

​

Cost Basis

​

Cost Basis

​

Total

Residential Lending

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Residential Mortgage

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FICO:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

740 and greater

​

$

1,101,958

​

$

635,061

​

$

286,993

​

$

198,622

​

$

251,906

​

$

829,175

​

$

—

​

$

—

​

$

3,303,715

680 - 739

​

​

140,997

​

​

81,590

​

​

45,163

​

​

27,315

​

​

32,855

​

​

125,906

​

​

—

​

​

—

​

​

453,826

620 - 679

​

​

15,781

​

​

11,943

​

​

5,268

​

​

10,149

​

​

9,069

​

​

37,404

​

​

—

​

​

—

​

​

89,614

550 - 619

​

​

1,735

​

​

873

​

​

698

​

​

533

​

​

2,033

​

​

7,475

​

​

—

​

​

—

​

​

13,347

Less than 550

​

​

—

​

​

—

​

​

—

​

​

345

​

​

2,603

​

​

2,838

​

​

—

​

​

—

​

​

5,786

No Score (3)

​

​

18,882

​

​

7,938

​

​

15,051

​

​

18,107

​

​

17,333

​

​

42,185

​

​

—

​

​

—

​

​

119,496

Other (2)

​

​

25,625

​

​

16,263

​

​

10,242

​

​

11,297

​

​

16,242

​

​

17,152

​

​

44

​

​

718

​

​

97,583

Total Residential Mortgage

​

​

1,304,978

​

​

753,668

​

​

363,415

​

​

266,368

​

​

332,041

​

​

1,062,135

​

​

44

​

​

718

​

​

4,083,367

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Home Equity Line

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FICO:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

740 and greater

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

671,566

​

​

1,873

​

​

673,439

680 - 739

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

141,889

​

​

3,968

​

​

145,857

620 - 679

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

37,815

​

​

2,500

​

​

40,315

550 - 619

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

9,090

​

​

948

​

​

10,038

Less than 550

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

2,574

​

​

68

​

​

2,642

No Score (3)

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

4,317

​

​

—

​

​

4,317

Total Home Equity Line

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

867,251

​

​

9,357

​

​

876,608

Total Residential Lending

​

​

1,304,978

​

​

753,668

​

​

363,415

​

​

266,368

​

​

332,041

​

​

1,062,135

​

​

867,295

​

​

10,075

​

​

4,959,975

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Consumer Lending

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

FICO:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

740 and greater

​

​

155,929

​

​

83,337

​

​

79,617

​

​

56,707

​

​

24,525

​

​

8,067

​

​

117,843

​

​

209

​

​

526,234

680 - 739

​

​

93,214

​

​

56,327

​

​

55,126

​

​

34,049

​

​

17,527

​

​

6,315

​

​

69,366

​

​

707

​

​

332,631

620 - 679

​

​

41,671

​

​

21,986

​

​

28,491

​

​

19,403

​

​

12,952

​

​

5,324

​

​

31,165

​

​

1,175

​

​

162,167

550 - 619

​

​

7,836

​

​

8,265

​

​

13,265

​

​

10,497

​

​

7,469

​

​

3,244

​

​

10,359

​

​

1,089

​

​

62,024

Less than 550

​

​

2,272

​

​

3,867

​

​

6,646

​

​

3,484

​

​

2,739

​

​

1,175

​

​

3,195

​

​

536

​

​

23,914

No Score (3)

​

​

481

​

​

19

​

​

56

​

​

40

​

​

65

​

​

2

​

​

35,414

​

​

320

​

​

36,397

Other (2)

​

​

4,737

​

​

365

​

​

1,712

​

​

17

​

​

2,182

​

​

31

​

​

77,528

​

​

—

​

​

86,572

Total Consumer Lending

​

​

306,140

​

​

174,166

​

​

184,913

​

​

124,197

​

​

67,459

​

​

24,158

​

​

344,870

​

​

4,036

​

​

1,229,939

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total Loans and Leases

​

$

3,157,488

​

$

1,588,735

​

$

1,632,764

​

$

1,164,714

​

$

954,259

​

$

2,359,432

​

$

2,033,383

​

$

71,224

​

$

12,961,999

(1)Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.
(2)Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.
(3)No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

​

There were no loans and leases graded as Loss as of September 30, 2022 and December 31, 2021.

​

The amortized cost basis of revolving loans that were converted to term loans during the three and nine months ended September 30, 2022 and 2021 was as follows:

​

​

​

​

​

​

​

Three Months Ended

(dollars in thousands)

​

September 30, 2022

Consumer

​

​

314

Total Revolving Loans Converted to Term Loans During the Period

​

$

314

​

​

​

​

​

​

​

​

Nine Months Ended

(dollars in thousands)

​

September 30, 2022

Commercial and industrial

​

$

480

Home equity line

​

​

2,072

Consumer

​

​

1,004

Total Revolving Loans Converted to Term Loans During the Period

​

$

3,556

​

​

​

​

​

​

​

Three Months Ended

(dollars in thousands)

​

September 30, 2021

Commercial and industrial

​

$

195

Home equity line

​

​

560

Consumer

​

​

422

Total Revolving Loans Converted to Term Loans During the Period

​

$

1,177

​

​

​

​

​

​

​

Nine Months Ended

(dollars in thousands)

​

September 30, 2021

Commercial and industrial

​

$

454

Home equity line

​

​

2,177

Consumer

​

​

1,358

Total Revolving Loans Converted to Term Loans During the Period

​

$

3,989

​

Past-Due Status

​

The Company continually updates its aging analysis for loans and leases to monitor the migration of loans and leases into past due categories. The Company considers loans and leases that are delinquent for 30 days or more to be past due. As of September 30, 2022 and December 31, 2021, the aging analysis of the amortized cost basis of the Company’s past due loans and leases was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

September 30, 2022

​

​

Past Due

​

​

​

​

​

Loans and

​

​

​

​

​

​

Greater

​

​

​

​

​

​

​

Leases Past

​

​

​

​

​

​

Than or

​

​

​

​

​

​

​

Due 90 Days

​

​

30-59

​

60-89

​

Equal to

​

​

​

​

​

​

​

or More and

​

​

Days

​

Days

​

90 Days

​

Total

​

​

​

Total Loans

​

Still Accruing

(dollars in thousands)

  

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Current

  

and Leases

​

Interest

Commercial and industrial

​

$

2,447

​

$

858

​

$

2,883

​

$

6,188

​

$

2,037,619

​

$

2,043,807

​

$

1,445

Commercial real estate

​

​

2,000

​

​

657

​

​

727

​

​

3,384

​

​

4,099,926

​

​

4,103,310

​

​

—

Construction

​

​

28

​

​

—

​

​

483

​

​

511

​

​

765,351

​

​

765,862

​

​

390

Lease financing

​

​

—

​

​

—

​

​

—

​

​

—

​

​

305,838

​

​

305,838

​

​

—

Residential mortgage

​

​

373

​

​

3,943

​

​

3,358

​

​

7,674

​

​

4,244,367

​

​

4,252,041

​

​

—

Home equity line

​

​

3,536

​

​

2,888

​

​

1,832

​

​

8,256

​

​

1,002,375

​

​

1,010,631

​

​

1,832

Consumer

​

​

24,196

​

​

5,187

​

​

1,976

​

​

31,359

​

​

1,187,526

​

​

1,218,885

​

​

1,976

Total

​

$

32,580

​

$

13,533

​

$

11,259

​

$

57,372

​

$

13,643,002

​

$

13,700,374

​

$

5,643

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

Past Due

​

​

​

​

​

Loans and

​

​

​

​

​

​

Greater

​

​

​

​

​

​

​

Leases Past

​

​

​

​

​

​

Than or

​

​

​

​

​

​

​

Due 90 Days

​

​

30-59

​

60-89

​

Equal to

​

​

​

​

​

​

​

or More and

​

​

Days

​

Days

​

90 Days

​

Total

​

​

​

Total Loans

​

Still Accruing

(dollars in thousands)

  

Past Due

  

Past Due

  

Past Due

  

Past Due

  

Current

  

and Leases

​

Interest

Commercial and industrial

​

$

1,195

​

$

1,195

​

$

1,318

​

$

3,708

​

$

2,083,391

​

$

2,087,099

​

$

740

Commercial real estate

​

​

631

​

​

—

​

​

—

​

​

631

​

​

3,638,992

​

​

3,639,623

​

​

—

Construction

​

​

162

​

​

—

​

​

—

​

​

162

​

​

813,807

​

​

813,969

​

​

—

Lease financing

​

​

—

​

​

—

​

​

—

​

​

—

​

​

231,394

​

​

231,394

​

​

—

Residential mortgage

​

​

3,030

​

​

1,002

​

​

5,617

​

​

9,649

​

​

4,073,718

​

​

4,083,367

​

​

987

Home equity line

​

​

1,538

​

​

538

​

​

3,681

​

​

5,757

​

​

870,851

​

​

876,608

​

​

3,681

Consumer

​

​

16,534

​

​

3,366

​

​

1,800

​

​

21,700

​

​

1,208,239

​

​

1,229,939

​

​

1,800

Total

​

$

23,090

​

$

6,101

​

$

12,416

​

$

41,607

​

$

12,920,392

​

$

12,961,999

​

$

7,208

​

Nonaccrual Loans and Leases

​

The Company generally places a loan or lease on nonaccrual status when management believes that collection of principal or interest has become doubtful or when a loan or lease becomes 90 days past due as to principal or interest, unless it is well secured and in the process of collection. The Company charges off a loan or lease when facts indicate that the loan or lease is considered uncollectible.

​

The amortized cost basis of loans and leases on nonaccrual status as of September 30, 2022 and December 31, 2021 and the amortized cost basis of loans and leases on nonaccrual status with no ACL as of September 30, 2022 and December 31, 2021 were as follows:

​

​

​

​

​

​

​

​

​

​

September 30, 2022

​

​

Nonaccrual

​

​

​

​

​

Loans

​

​

​

​

​

and Leases

​

​

​

​

​

With No

​

Nonaccrual

​

​

Allowance

​

Loans

(dollars in thousands)

  

for Credit Losses

​

and Leases

Commercial and industrial

​

$

665

​

$

1,528

Commercial real estate

​

​

727

​

​

727

Residential mortgage

​

​

1,579

​

​

6,028

Total Nonaccrual Loans and Leases

​

$

2,971

​

$

8,283

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

​

Nonaccrual

​

​

​

​

​

Loans

​

​

​

​

​

and Leases

​

​

​

​

​

With No

​

Nonaccrual

​

​

Allowance

​

Loans

(dollars in thousands)

  

for Credit Losses

​

and Leases

Commercial and industrial

​

$

—

​

$

718

Commercial real estate

​

​

727

​

​

727

Residential mortgage

​

​

1,192

​

​

5,637

Total Nonaccrual Loans and Leases

​

$

1,919

​

$

7,082

​

For the three and nine months ended September 30, 2022, the Company recognized interest income of $0.1 million and $0.2 million, respectively, on nonaccrual loans and leases, and for the three and nine months ended September 30, 2021, the Company recognized interest income of $0.2 million and $0.4 million, respectively, on nonaccrual loans and leases. Furthermore, for the three and nine months ended September 30, 2022, the amount of accrued interest receivables written off by reversing interest income was $0.3 million and $0.7 million, respectively, and for the three and nine months ended September 30, 2021, the amount of accrued interest receivables written off by reversing interest income was $0.2 million and $0.7 million, respectively.

​

Collateral-Dependent Loans and Leases

​

Collateral-dependent loans and leases are those for which repayment (on the basis of the Company’s assessment as of the reporting date) is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. As of September 30, 2022 and December 31, 2021, the amortized cost basis of collateral-dependent loans were $7.7 million and $7.5 million, respectively. As of both September 30, 2022 and December 31, 2021, these loans were primarily collateralized by residential real estate property. As of both September 30, 2022 and December 31, 2021, the fair value of collateral on substantially all collateral-dependent loans were significantly in excess of their amortized cost basis.

​

Modifications

​

Commercial and industrial loans modified in a TDR may involve temporary interest-only payments, term and amortization extensions, and converting revolving credit lines to term loans. Modifications of commercial real estate and construction loans in a TDR may involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Modifications of construction loans in a TDR may also involve extending the interest-only payment period. Interest continues to accrue on the missed payments and as a result, the effective yield on the loan remains unchanged. Residential real estate loans modified in a TDR may be comprised of loans where monthly payments are lowered to accommodate the borrowers’ financial needs for a period of time, including extended interest-only periods and re-amortization of the balance. Modifications of consumer loans in a TDR may involve temporary or permanent reduced payments, temporary interest-only payments and below-market interest rates.

​

Loans modified in a TDR may already be on nonaccrual status and in some cases, partial charge-offs may have already been taken against the outstanding loan balance. Loans modified in a TDR are evaluated for impairment. As a result, this may have a financial effect of increasing the specific ACL associated with the loan. An ACL for impaired commercial loans, including commercial real estate and construction loans, that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or if the loan is collateral-dependent, the estimated fair value of the collateral, less any selling costs. An ACL for impaired residential real estate loans that have been modified in a TDR is measured based on the estimated fair value of the collateral, less any selling costs. Management exercises significant judgment in developing these estimates.

​

The following presents, by class, information related to loans modified in a TDR during the three and nine months ended September 30, 2022 and 2021:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

September 30, 2022

​

September 30, 2022

​

​

Number of

​

Recorded

​

Related

​

Number of

​

Recorded

​

Related

(dollars in thousands)

  

Contracts(1)

  

Investment(2)

  

ACL

  

Contracts(1)

  

Investment(2)

  

ACL

Commercial and industrial

​

2

​

$

201

​

$

4

​

2

​

$

201

​

$

4

Residential mortgage

​

—

​

​

—

​

​

—

​

1

​

​

252

​

​

32

Consumer

​

50

​

​

387

​

​

114

​

234

​

​

2,286

​

​

424

Total

​

52

​

$

588

​

$

118

​

237

​

$

2,739

​

$

460

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

September 30, 2021

​

September 30, 2021

​

​

Number of

​

Recorded

​

Related

​

Number of

​

Recorded

​

Related

(dollars in thousands)

  

Contracts(1)

  

Investment(2)

  

ACL

  

Contracts(1)

  

Investment(2)

  

ACL

Commercial and industrial

​

—

​

$

—

​

$

—

​

13

​

$

1,946

​

$

127

Commercial real estate

​

—

​

​

—

​

​

—

​

1

​

​

365

​

​

75

Construction

​

—

​

​

—

​

​

—

​

2

​

​

699

​

​

79

Residential mortgage

​

—

​

​

—

​

​

—

​

13

​

​

5,582

​

​

213

Consumer

​

150

​

​

1,950

​

​

247

​

1,671

​

​

15,916

​

​

2,128

Total

​

150

​

$

1,950

​

$

247

​

1,700

​

$

24,508

​

$

2,622

(1)The number of contracts does not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.
(2)The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.

​

The above loans were modified in a TDR through an extension of maturity dates, temporary interest-only payments, temporary payment deferrals, reduced payments, converting revolving credit lines to term loans or below-market interest rates.

​

The Company had commitments to extend credit, standby letters of credit, and commercial letters of credit totaling $7.0 billion and $6.7 billion as of September 30, 2022 and December 31, 2021, respectively. Of the $7.0 billion at September 30, 2022, there were commitments of $0.1 million to lend additional funds related to borrowers who had loan terms modified in a TDR. Of the $6.7 billion at December 31, 2021, there were commitments of $0.2 million to lend additional funds related to borrowers who had loan terms modified in a TDR.

​

The following table presents, by class, loans modified in TDRs that have defaulted in the current period within 12 months of their permanent modification date for the periods indicated. The Company is reporting these defaulted TDRs based on a payment default definition of 30 days past due:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

Three Months Ended

​

Nine Months Ended

​

​

September 30, 2022

​

September 30, 2022

​

September 30, 2021

​

September 30, 2021

​

​

Number of

​

Recorded

​

Number of

​

Recorded

​

Number of

​

Recorded

​

Number of

​

Recorded

(dollars in thousands)

    

Contracts(1)

  

Investment(2)

  

Contracts(1)

  

Investment(2)

  

Contracts(1)

  

Investment(2)

  

Contracts(1)

  

Investment(2)

Commercial and industrial

​

1

​

$

216

​

2

​

$

541

​

2

​

$

265

​

3

​

$

613

Construction

​

—

​

​

—

​

—

​

​

—

​

—

​

​

—

​

1

​

​

359

Commercial real estate

​

—

​

​

—

​

—

​

​

—

​

1

​

​

500

​

1

​

​

500

Residential mortgage

​

—

​

​

—

​

—

​

​

—

​

2

​

​

596

​

3

​

​

884

Consumer

​

123

​

​

1,561

​

219

​

​

2,939

​

230

​

​

3,258

​

314

​

​

4,366

Total

​

124

​

$

1,777

​

221

​

$

3,480

​

235

​

$

4,619

​

322

​

$

6,722

(1)The number of contracts does not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.
(2)The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.

​

Foreclosure Proceedings

​

As of September 30, 2022, there were two residential mortgage loans totaling $0.6 million collateralized by real estate properties that were modified in a TDR that was in process of foreclosure.  As of December 31, 2021, there was one residential mortgage loan of $0.3 million collateralized by real estate property that was modified in a TDR that was in process of foreclosure.

​

Foreclosed Property

​

As of September 30, 2022, residential real estate property held from one foreclosed residential mortgage loan of $0.1 million was included in other real estate owned and repossessed personal property shown in the unaudited interim consolidated balance sheets. As of December 31, 2021, residential real estate property held from one foreclosed residential mortgage loan of $0.2 million was included in other real estate owned and repossessed personal property shown in the unaudited interim consolidated balance sheets.