Loans, Allowance for Credit Losses and Credit Quality (Notes)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Loans, Allowance for Credit Losses and Credit Quality [Text Block]

LOANS, ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Loans Held for Investment and Allowance for Credit Losses

The following table summarizes the change in allowance for credit losses by loan category, and bifurcates the amount of loans allocated to each loan category for the period indicated:

	Three Months Ended March 31, 2021
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home  Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	21,086	$	45,009	$	5,397	$	5,095	$	14,275	$	22,060	$	470	$	113,392
Charge-offs	(3,331)		—		—		(66)		—		—		(289)		(3,686)
Recoveries	64		57		—		11		1		13		197		343
Provision for credit loss expense	2,388		(718)		(129)		(1,419)		(1,320)		(1,357)		55		(2,500)
Ending balance (1)	$	20,207	$	44,348	$	5,268	$	3,621	$	12,956	$	20,716	$	433	$	107,549
	Three Months Ended March 31, 2020
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home  Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance, pre adoption of ASU 2016-13	$	17,594	$	32,935	$	6,053	$	1,746	$	3,440	$	5,576	$	396	$	67,740
Cumulative effect accounting adjustment (2)	(1,984)		(13,048)		(3,652)		495		9,828		7,012		212		(1,137)
Cumulative effect accounting adjustment (3)	49		337		—		—		423		319		29		1,157
Charge-offs	—		—		—		(109)		—		(138)		(487)		(734)
Recoveries	42		—		—		3		1		58		246		350
Provision for credit loss expense	5,948		9,274		1,346		1,694		1,155		5,083		500		25,000
Ending balance (1)	$	21,649	$	29,498	$	3,747	$	3,829	$	14,847	$	17,910	$	896	$	92,376

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $33.4 million and $25.9 million as of March 31, 2021 and March 31, 2020, respectively.

(2)Represents adjustment needed to reflect the cumulative day one impact pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment represents a $1.1 million decrease to the allowance attributable to the change in accounting methodology for estimating the allowance for credit losses resulting from the Company's adoption of the standard.

(3)Represents adjustment needed to reflect the day one reclassification of the Company's PCI loan balances to PCD and the associated gross-up, pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment represents a $1.2 million increase to the allowance resulting from the day one reclassification.

The balance of allowance for credit losses of $107.5 million as of March 31, 2021 represents a decrease of $5.8 million, or 5.2% compared to December 31, 2020. The decrease in the allowance was driven primarily by $3.3 million of charge-offs and $2.5 million of negative provision. The negative provision reflects improvements in asset quality metrics and overall macro-economic assumptions, as well as an overall reduction in loan balances for the quarter. While management is unable to know with certainty the direct, indirect, and future impacts of the COVID-19 pandemic, it is expected that the pandemic will have a material adverse impact on future losses across a broad range of loan segments.  As such, the allowance for credit losses as of March 31, 2021 reflects increased reserve allocations to loan segments that are considered to have elevated loss exposure associated with the COVID-19 pandemic in comparison to March 31, 2020.  These loan segments primarily include commercial relationships within industries that are subject to mandated closures and capacity limits that will potentially impede the borrowers’ ability to make loan payments, including loans in the following industry sections: Accommodations, Food Services, Retail Trade, Recreation and Entertainment, and Other Services (excluding Public Administration).  In addition to these industry exposures, additional risk of loss was attributable to non-owner occupied real estate borrowers with significant retail

tenant exposure, as well as home equity loans within a junior lien position.  Leveraging actual historical loss given default (LGD) rates combined with stressing of assumptions over probability of default rates over these higher risk segments, qualitative adjustments were made to the initially model-driven calculated loss reserves.

    For the purpose of estimating the allowance for credit losses, management segregated the loan portfolio into the portfolio segments detailed in the above tables.  Each of these loan categories possesses unique risk characteristics that are considered when determining the appropriate level of allowance for each segment.  Some of the characteristics unique to each loan category include:

Commercial Portfolio

•Commercial and Industrial: Loans in this category consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment.  Collateral generally consists of pledges of business assets including, but not limited to: accounts receivable, inventory, plant and equipment, or real estate, if applicable. Repayment sources consist of primarily, operating cash flow, and secondarily, liquidation of assets.

•Commercial Real Estate: Loans in this category consist of mortgage loans to finance investment in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties.  Loans are typically written with amortizing payment structures.  Collateral values are determined based upon third party appraisals and evaluations.  Loan to value ratios at origination are governed by established policy and regulatory guidelines. Repayment sources consist of, primarily, cash flow from operating leases and rents and, secondarily, liquidation of assets.

•Commercial Construction: Loans in this category consist of short-term construction loans, revolving and nonrevolving credit lines and construction/permanent loans to finance the acquisition, development and construction or rehabilitation of real property.  Project types include residential land development, 1-4 family, condominium, and multi-family home construction, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties.  Loans may be written with nonamortizing or hybrid payment structures depending upon the type of project.  Collateral values are determined based upon third party appraisals and evaluations.  Loan to value ratios at origination are governed by established policy and regulatory guidelines.  Repayment sources vary depending upon the type of project and may consist of sale or lease of units, operating cash flows or liquidation of other assets.

•Small Business: Loans in this category consist of revolving, term loan and mortgage obligations extended to sole proprietors and small businesses for purposes of financing working capital and/or capital investment.  Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, or real estate if applicable.  Repayment sources consist primarily of operating cash flows and, secondarily, liquidation of assets.

For the commercial portfolio it is the Company’s policy to obtain personal guarantees for payment from individuals holding material ownership interests in the borrowing entities.

Consumer Portfolio

•Residential Real Estate: Residential mortgage loans held in the Company’s portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral.  Collateral consists of mortgage liens on 1-4 family residential properties.  Residential mortgage loans also include loans to construct owner-occupied 1-4 family residential properties.

•Home Equity: Home equity loans and credit lines are made to qualified individuals and are primarily secured by senior or junior mortgage liens on owner-occupied 1-4 family homes, condominiums or vacation homes. Each home equity loan has a fixed rate and is billed in equal payments comprised of principal and interest. The majority of home equity lines of credit have a variable rate and are billed in interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the then outstanding principal balance plus all accrued interest over a predetermined repayment period, as set forth in the note. Additionally, the Company has the option of renewing each line of credit for additional draw periods.  Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established policy guidelines.

•Other Consumer: Other consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, debt consolidation, personal expenses or overdraft protection.  Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines.  These loans may be secured or unsecured.

Credit Quality

The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as adversely risk-rated, delinquent, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower’s ability to repay the loan based on their current financial condition.

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For the commercial portfolio, the Company utilizes a 10-point credit risk-rating system, which assigns a risk-grade to each loan obligation based on a number of quantitative and qualitative factors associated with a commercial or small business loan transaction. Factors considered include industry and market conditions, position within the industry, earnings trends, operating cash flow, asset/liability values, debt capacity, guarantor strength, management and controls, financial reporting, collateral, and other considerations. The risk-rating categories for the commercial portfolio are defined as follows:

•Pass: Risk-rating “1” through “6” comprises of loans ranging from ‘Substantially Risk Free’ which indicates borrowers are of unquestioned credit standing and the pinnacle of credit quality, well established companies with a very strong financial condition, and loans fully secured by cash collateral, through ‘Acceptable Risk’, which indicates borrowers may exhibit declining earnings, strained cash flow, increasing or above average leverage and/or weakening market fundamentals that indicate below average asset quality, margins and market share. Collateral coverage is protective.

•Potential Weakness: Borrowers exhibit potential credit weaknesses or downward trends deserving management’s close attention. If not checked or corrected, these trends will weaken the Company’s asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.

•Definite Weakness Loss Unlikely: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Loans may be inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. However, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.

•Partial Loss Probable: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.

•Definite Loss: Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.

The Company utilizes a comprehensive, continuous strategy for evaluating and monitoring commercial credit quality. Initially, credit quality is determined at loan origination and is re-evaluated when subsequent actions, such as renewals, modifications or reviews, occur. Actively managed commercial borrowers are required to provide updated financial information at least annually which is carefully evaluated for any changes in credit quality. Larger loan relationships are subject to a full annual credit review by experienced credit professionals, while continuous portfolio monitoring techniques are employed to evaluate changes in credit quality for smaller loan relationships. Any changes in credit quality are reflected in risk-rating changes. Additionally, the Company retains an independent loan review firm to evaluate the credit quality of the commercial loan portfolio. The independent loan review process achieves significant penetration into the commercial loan portfolio and reports the results of these reviews to the Audit Committee of the Board of Directors on a quarterly basis. Commercial loan modifications granted by the Company allowing payment deferrals for qualifying borrowers in accordance with the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") have been assessed for potential downgrades of risk ratings.

For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. As a result, for this portfolio the Company utilizes a pass/default risk-rating system, based on an age analysis (i.e., days past due) associated with each consumer loan. Under this structure, consumer loans less than 90 days past due are assigned a "pass" rating, while any consumer loans 90 days or more past due are assigned a "default" rating. Consumer loan modifications granted by the Company allowing payment deferrals for qualifying borrowers in accordance with the CARES Act have not been categorized as delinquent loans.

The following table details the amortized cost balances of the Company's loan portfolios, presented by credit quality indicator and origination year as of the dates indicated below:

	March 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving converted to Term		Total
	(Dollars in thousands)
Commercial and industrial
Pass (1)	$	420,682	$	724,577	$	127,454	$	88,970	$	25,737	$	27,123	$	589,448	$	—	$	2,003,991
Potential weakness	3,424		14,991		2,636		2,148		4,288		3,205		12,252		—		42,944
Definite weakness - loss unlikely	17,912		663		1,116		1,327		2,768		482		6,927		—		31,195
Partial loss probable	—		—		—		—		—		143		8,398		—		8,541
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	442,018	$	740,231	$	131,206	$	92,445	$	32,793	$	30,953	$	617,025	$	—	$	2,086,671
Commercial real estate
Pass	$	214,573	$	1,043,424	$	687,959	$	432,728	$	524,194	$	966,331	$	16,196	$	—	$	3,885,405
Potential weakness	390		29,218		53,849		31,274		18,981		86,160		13,612		—		233,484
Definite weakness - loss unlikely	3,590		22,536		3,754		3,474		9,892		15,482		—		—		58,728
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	218,553	$	1,095,178	$	745,562	$	467,476	$	553,067	$	1,067,973	$	29,808	$	—	$	4,177,617
Commercial construction
Pass	$	28,323	$	239,954	$	142,076	$	28,189	$	23,313	$	6,628	$	19,934	$	—	$	488,417
Potential weakness	—		17,544		9,691		—		—		—		190		—		27,425
Definite weakness - loss unlikely	—		—		—		520		—		—		—		—		520
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	28,323	$	257,498	$	151,767	$	28,709	$	23,313	$	6,628	$	20,124	$	—	$	516,362
Small business
Pass	$	10,307	$	41,418	$	25,817	$	17,750	$	12,624	$	29,309	$	33,658	$	—	$	170,883
Potential weakness	—		—		389		204		10		202		634		—		1,439
Definite weakness - loss unlikely	—		677		51		59		17		301		758		—		1,863
Partial loss probable	—		—		—		—		—		—		26		—		26
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	10,307	$	42,095	$	26,257	$	18,013	$	12,651	$	29,812	$	35,076	$	—	$	174,211
Residential real estate
Pass	$	80,657	$	212,891	$	126,359	$	133,150	$	130,580	$	554,848	$	—	$	—	$	1,238,485
Default	—		—		—		427		—		2,877		—		—		3,304
Total residential real estate	$	80,657	$	212,891	$	126,359	$	133,577	$	130,580	$	557,725	$	—	$	—	$	1,241,789
Home equity
Pass	$	23,583	$	77,497	$	51,398	$	46,648	$	48,132	$	140,376	$	636,881	$	1,762	$	1,026,277
Default	—		—		—		—		—		210		2,008		—		2,218
Total home equity	$	23,583	$	77,497	$	51,398	$	46,648	$	48,132	$	140,586	$	638,889	$	1,762	$	1,028,495
Other consumer
Pass	$	46	$	540	$	326	$	146	$	620	$	6,800	$	12,939	$	—	$	21,417

Default	—		—		—		—		15		111		3		—		129
Total other consumer	$	46	$	540	$	326	$	146	$	635	$	6,911	$	12,942	$	—	$	21,546
Total	$	803,487	$	2,425,930	$	1,232,875	$	787,014	$	801,171	$	1,840,588	$	1,353,864	$	1,762	$	9,246,691

	March 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving converted to Term		Total
	(Dollars in thousands)
Commercial and industrial
Pass (1)	$	119,886	$	213,925	$	138,376	$	50,323	$	36,685	$	33,576	$	736,304	$	327	$	1,329,402
Potential weakness	362		5,432		1,489		4,909		725		697		21,780		50		35,444
Definite weakness - loss unlikely	495		2,128		26,006		5,589		2,604		1,575		44,932		—		83,329
Partial loss probable	—		—		—		—		—		49		—		—		49
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	120,743	$	221,485	$	165,871	$	60,821	$	40,014	$	35,897	$	803,016	$	377	$	1,448,224
Commercial real estate
Pass	$	260,217	$	943,205	$	586,125	$	651,335	$	468,824	$	945,248	$	48,056	$	2,987	$	3,905,997
Potential weakness	1,809		8,303		33,755		8,506		9,851		42,382		—		—		104,606
Definite weakness - loss unlikely	—		3,612		7,432		20,395		6,993		12,312		—		—		50,744
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	262,026	$	955,120	$	627,312	$	680,236	$	485,668	$	999,942	$	48,056	$	2,987	$	4,061,347
Commercial construction
Pass	$	43,369	$	221,773	$	114,561	$	73,493	$	—	$	6,867	$	44,225	$	325	$	504,613
Potential weakness	—		554		347		19,044		—		—		347		—		20,292
Definite weakness - loss unlikely	—		—		1,887		—		—		—		346		—		2,233
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	43,369	$	222,327	$	116,795	$	92,537	$	—	$	6,867	$	44,918	$	325	$	527,138
Small business
Pass	$	8,414	$	31,651	$	25,184	$	17,848	$	17,594	$	26,734	$	47,109	$	—	$	174,534
Potential weakness	—		12		18		13		753		259		597		—		1,652
Definite weakness - loss unlikely	—		47		133		51		169		598		636		—		1,634
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	8,414	$	31,710	$	25,335	$	17,912	$	18,516	$	27,591	$	48,342	$	—	$	177,820
Residential real estate
Pass	$	39,122	$	204,524	$	260,899	$	210,662	$	283,255	$	523,742	$	—	$	—	$	1,522,204
Default	—		—		427		435		—		5,350		—		—		6,212
Total residential real estate	$	39,122	$	204,524	$	261,326	$	211,097	$	283,255	$	529,092	$	—	$	—	$	1,528,416
Home equity
Pass	$	23,397	$	75,161	$	70,081	$	67,740	$	51,106	$	138,733	$	715,169	$	1,853	$	1,143,240
Default	—		—		—		18		—		579		2,372		61		3,030
Total home equity	$	23,397	$	75,161	$	70,081	$	67,758	$	51,106	$	139,312	$	717,541	$	1,914	$	1,146,270

Other consumer
Pass	$	414	$	705	$	356	$	1,049	$	1,000	$	10,850	$	12,767	$	—	$	27,141
Default	—		—		—		19		—		39		16		—		74
Total other consumer	$	414	$	705	$	356	$	1,068	$	1,000	$	10,889	$	12,783	$	—	$	27,215
Total	$	497,485	$	1,711,032	$	1,267,076	$	1,131,429	$	879,559	$	1,749,590	$	1,674,656	$	5,603	$	8,916,430

(1)Loans originated as part of the Paycheck Protection Program ("PPP") established by the CARES Act are included within commercial and industrial under the 2021 and 2020 vintage year and "pass" category as these loans are 100% guaranteed by the U.S. Government. Outstanding PPP loans totaled $846.3 million as of March 31, 2021, including $506.3 million and $340.0 million originated in 2020 and 2021, respectively.

    For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. However, the Company does supplement performance data with current Fair Isaac Corporation (“FICO”) scores and Loan to Value (“LTV”) estimates. Current FICO data is purchased and appended to all consumer loans on a regular basis. In addition, automated valuation services and broker opinions of value are used to supplement original value data for the residential and home equity portfolios, periodically. The following table shows the weighted average FICO scores and the weighted average combined LTV ratios at the dates indicated below:

	March 31 2021		December 31 2020
Residential portfolio
FICO score (re-scored)(1)	749		749
LTV (re-valued)(2)	56.5	%	57.4	%
Home equity portfolio
FICO score (re-scored)(1)	772		771
LTV (re-valued)(2)(3)	45.9	%	46.0	%

(1)The average FICO scores at March 31, 2021 are based upon rescores from March 2021, as available for previously originated loans, or origination score data for loans booked in March 2021.  The average FICO scores at December 31, 2020 were based upon rescores available from December 2020, as available for previously originated loans, or origination score data for loans booked in December 2020.

(2)The combined LTV ratios for March 31, 2021 are based upon updated automated valuations as of February 2021, when available, and/or the most current valuation data available.  The combined LTV ratios for December 31, 2020 were based upon updated automated valuations as of November 2020, when available, and/or the most current valuation data available as of such date.  The updated automated valuations provide new information on loans that may be available since the previous valuation was obtained.  If no new information is available, the valuation will default to the previously obtained data or most recent appraisal.

(3)For home equity loans and lines in a subordinate lien, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines.

Unfunded Commitments

Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. At March 31, 2021, and December 31, 2020 the Company's estimated reserve for unfunded commitments amounted to $1.0 million and $1.2 million, respectively.

Asset Quality

The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. Delinquent loans are managed by a team of collection specialists and the Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame.  As a general rule, loans 90 days or more past due with respect to principal or interest are classified as nonaccrual loans. The Company also may use discretion regarding other loans 90 days or more delinquent if the loan is well secured and/or in process of collection.

In response to the COVID-19 pandemic, the Company has granted loan modifications to allow deferral of payments for borrowers negatively impacted by the pandemic. The balance of loans with active deferrals as of March 31, 2021 and December 31, 2020 was $220.6 million and $173.6 million, respectively. The majority of these loans with active deferrals continue to be characterized as current loans. In accordance with regulatory guidance, these modifications are not considered to be troubled debt restructures ("TDRs") if they were performing prior to December 31, 2019. Additionally, a majority of these are characterized as current and therefore are not impacting nonaccrual or delinquency totals as of March 31, 2021 and December 31, 2020. The Company does, however, consider all active deferrals when estimating loss reserves. As loans reach their deferral maturity date, consideration of TDR and delinquency status will resume in accordance with the Company's accounting policy.

The following table shows information regarding nonaccrual loans as of the dates indicated:

	Nonaccrual Balances
	March 31, 2021						December 31, 2020
	With Allowance for Credit Losses		Without Allowance for Credit Losses		Total		With Allowance for Credit Losses		Without Allowance for Credit Losses		Total
	(Dollars in thousands)
Commercial and industrial	$	3,606	$	26,179	$	29,785	$	3,804	$	30,925	$	34,729
Commercial real estate	9,635		—		9,635		10,195		—		10,195
Small business	660		—		660		815		10		825
Residential real estate	8,870		4,522		13,392		10,935		4,593		15,528
Home equity	5,592		—		5,592		5,427		—		5,427
Other consumer	136		—		136		156		—		156
Total nonaccrual loans (1)	$	28,499	$	30,701	$	59,200	$	31,332	$	35,528	$	66,860

(1)Included in these amounts were $21.2 million and $22.2 million of nonaccruing TDRs at March 31, 2021 and December 31, 2020, respectively.

    It is the Company's policy to reverse any accrued interest when a loan is put on nonaccrual status, and, as such, the Company did not record any interest income on nonaccrual loans during the three months ended March 31, 2021 and March 31, 2020.

    In accordance with government moratorium orders established in response to the COVID-19 pandemic, new foreclosures pursued by the Company were on hold as of March 31, 2021, and in turn, all loan foreclosures in process as of March 31, 2021 had begun prior to the commencement of the moratorium orders. The following table shows information regarding foreclosed residential real estate property at the dates indicated:

	March 31, 2021		December 31, 2020
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	—	$	—
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	1,628	$	1,750

    The following tables show the age analysis of past due financing receivables as of the dates indicated:

	March 31, 2021
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Amortized Cost >90 Days and  Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	6	$	510	—	$	—	10	$	141	16	$	651	$	2,086,020	$	2,086,671	$	—
Commercial real estate	3	888		—	—		4	511		7	1,399		4,176,218		4,177,617		—
Commercial construction	—	—		—	—		—	—		—	—		516,362		516,362		—
Small business	5	56		1	2		3	36		9	94		174,117		174,211		—
Residential real estate	9	1,252		3	764		28	3,837		40	5,853		1,235,936		1,241,789		—
Home equity	7	425		2	87		27	2,217		36	2,729		1,025,766		1,028,495		—
Other consumer (1)	196	167		1	1		7	130		204	298		21,248		21,546		1
Total	226	$	3,298	7	$	854	79	$	6,872	312	$	11,024	$	9,235,667	$	9,246,691	$	1

	December 31, 2020
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Recorded Investment >90 Days and  Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	2	$	318	1	$	672	8	$	785	11	$	1,775	$	2,101,377	$	2,103,152	$	—
Commercial real estate	3	409		—	—		4	515		7	924		4,173,003		4,173,927		—
Commercial construction	—	—		2	2,794		—	—		2	2,794		551,135		553,929		—
Small business	14	421		6	273		4	59		24	753		174,270		175,023		—
Residential real estate	12	2,150		8	5,507		27	3,648		47	11,305		1,284,878		1,296,183		—
Home equity	10	733		5	203		33	2,633		48	3,569		1,065,221		1,068,790		—
Other consumer (1)	260	137		3	1		6	138		269	276		21,586		21,862		1
Total	301	$	4,168	25	$	9,450	82	$	7,778	408	$	21,396	$	9,371,470	$	9,392,866	$	1

(1)Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances.

Troubled Debt Restructurings

In the course of resolving nonperforming loans, the Bank may choose to restructure the contractual terms of certain loans. The Bank attempts to work out an alternative payment schedule with the borrower in order to avoid foreclosure actions. Any loans that are modified are reviewed by the Bank to identify if a TDR has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two.

The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated:

		March 31, 2021		December 31, 2020
	(Dollars in thousands)
TDRs on accrual status		$	20,262	$	16,983
TDRs on nonaccrual		21,167		22,209
Total TDRs		$	41,429	$	39,192
Additional commitments to lend to a borrower who has been a party to a TDR		$	466	$	263

The Company’s policy is to have any restructured loan which is on nonaccrual status prior to being modified remain on nonaccrual status for six months subsequent to being modified before management considers its return to accrual status. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. Additionally, loans classified as TDRs are adjusted to reflect the changes in value of the recorded investment in the loan, if any, resulting from the granting of a concession. For all residential loan modifications, the borrower must perform during a 90 day trial period before the modification is finalized.

The following table shows the troubled debt restructurings which occurred during the periods indicated and the change in the recorded investment subsequent to the modifications occurring:

	Three Months Ended
	March 31, 2021
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings
Commercial and industrial (1)	1	$	14,148	$	14,148
Commercial real estate (1)	5	3,964		3,964
Small business	1	100		100
Total	7	$	18,212	$	18,212

	Three Months Ended
	March 31, 2020
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings
Commercial and industrial (1)	2	$	268	$	268
Commercial real estate (1)	1	604		604
Small business	1	49		25
Residential real estate	1	177		209
Total	5	$	1,098	$	1,106

(1)The pre-modification and post-modification balances represent the legal principal balance of the loan. During the first quarter of 2021 and 2020 there were two relationships amounting to $14.3 million and $872,000 that related to additional modifications on previously existing TDRs.

The following table shows the Company’s post-modification balance of TDRs listed by type of modification for the periods indicated:

	Three Months Ended
	March 31
	2021		2020
	(Dollars in thousands)
Adjusted interest rate	$	—	$	604
Combination rate and maturity	14,148		—
Court ordered concession	—		25
Extended maturity	4,064		477
Total	$	18,212	$	1,106

The Company considers a loan to have defaulted when it reaches 90 days past due. During the three months ended March 31, 2021 and March 31, 2020 there were no loans modified during the prior twelve months that subsequently defaulted during the respective periods.