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

9 Months Ended

Sep. 30, 2022

Financing Receivable, Allowance for Credit Loss [Table Text Block]

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 September 30, 2022
	(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	$	14,107	$	83,456	$	11,710	$	2,784	$	19,750	$	11,740	$	772	$	144,319


Charge-offs	—		(62)		—		—		—		—		(679)		(741)
Recoveries	2		330		—		88		—		65		251		735
Provision for (release of) credit losses	6,060		(3,688)		(291)		(248)		852		(154)		469		3,000
Ending balance (1)	$	20,169	$	80,036	$	11,419	$	2,624	$	20,602	$	11,651	$	812	$	147,313

	Three Months Ended September 30, 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	$	17,032	$	44,325	$	4,865	$	3,612	$	12,014	$	20,087	$	422	$	102,357
Charge-offs	(1)		—		—		(83)		—		—		(248)		(332)
Recoveries	1		—		—		50		—		49		121		221
Provision for (release of) credit losses	(1,018)		(6,527)		(397)		88		(967)		(1,268)		89		(10,000)
Ending balance (1)	$	16,014	$	37,798	$	4,468	$	3,667	$	11,047	$	18,868	$	384	$	92,246

	Nine Months Ended September 30, 2022
	(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	$	14,402	$	83,486	$	12,316	$	3,508	$	14,484	$	17,986	$	740	$	146,922
Charge-offs	—		(62)		—		(59)		—		(122)		(1,749)		(1,992)
Recoveries	44		333		—		147		—		105		754		1,383
Provision for (release of) credit losses	5,723		(3,721)		(897)		(972)		6,118		(6,318)		1,067		1,000
Ending balance (1)	$	20,169	$	80,036	$	11,419	$	2,624	$	20,602	$	11,651	$	812	$	147,313

	Nine Months Ended September 30, 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	(3,474)		—		—		(184)		—		(69)		(772)		(4,499)
Recoveries	100		57		—		65		1		107		523		853
Provision for (release of) credit losses	(1,698)		(7,268)		(929)		(1,309)		(3,229)		(3,230)		163		(17,500)
Ending balance (1)	$	16,014	$	37,798	$	4,468	$	3,667	$	11,047	$	18,868	$	384	$	92,246

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $42.7 million and $36.7 million as of September 30, 2022 and September 30, 2021, respectively.

Financing Receivable Credit Quality Indicators [Table Text Block]

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:


	September 30, 2022
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	292,601	$	149,588	$	122,752	$	67,591	$	82,911	$	22,943	$	759,390	$	3,362	$	1,501,138
Potential weakness	1,540		973		1,038		1,844		3,955		715		6,557		—		16,622
Definite weakness - loss unlikely	2,485		935		—		39		—		111		27,019		—		30,589
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	296,626	$	151,496	$	123,790	$	69,474	$	86,866	$	23,769	$	792,966	$	3,362	$	1,548,349




Commercial real estate
Pass	$	922,772	$	1,467,370	$	1,265,711	$	773,102	$	733,621	$	1,976,282	$	47,317	$	1,070	$	7,187,245
Potential weakness	32,579		53,096		41,164		14,147		68,298		205,234		—		—		414,518
Definite weakness - loss unlikely	26,684		2,224		4,722		2,585		17,928		21,836		—		—		75,979
Partial loss probable	—		—		—		—		—		175		—		—		175
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	982,035	$	1,522,690	$	1,311,597	$	789,834	$	819,847	$	2,203,527	$	47,317	$	1,070	$	7,677,917




Commercial construction
Pass	$	388,627	$	392,229	$	231,336	$	57,768	$	26,263	$	7,844	$	21,457	$	632	$	1,126,156
Potential weakness	40,631		—		3,387		—		—		—		—		—		44,018
Definite weakness - loss unlikely	2,138		12,845		—		—		—		—		—		—		14,983
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	431,396	$	405,074	$	234,723	$	57,768	$	26,263	$	7,844	$	21,457	$	632	$	1,185,157




Small business
Pass	$	41,923	$	46,581	$	31,968	$	17,536	$	10,454	$	20,227	$	37,455	$	—	$	206,144
Potential weakness	—		163		394		369		193		129		697		—		1,945
Definite weakness - loss unlikely	194		—		442		7		20		224		591		—		1,478
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	42,117	$	46,744	$	32,804	$	17,912	$	10,667	$	20,580	$	38,743	$	—	$	209,567




Residential real estate
Pass	$	557,643	$	426,721	$	196,538	$	95,689	$	96,828	$	582,830	$	—	$	—	$	1,956,249
Default	—		—		676		466		376		1,487		—		—		3,005

Total residential real estate	$	557,643	$	426,721	$	197,214	$	96,155	$	97,204	$	584,317	$	—	$	—	$	1,959,254




Home equity
Pass	$	37,298	$	61,898	$	56,262	$	32,761	$	27,906	$	124,325	$	741,952	$	3,190	$	1,085,592
Default	—		—		—		122		—		285		1,171		—		1,578

Total home equity	$	37,298	$	61,898	$	56,262	$	32,883	$	27,906	$	124,610	$	743,123	$	3,190	$	1,087,170




Other consumer
Pass	$	383	$	2,498	$	1,969	$	1,370	$	380	$	3,630	$	22,680	$	—	$	32,910
Default	—		14		—		—		—		11		1		—		26

Total other consumer	$	383	$	2,512	$	1,969	$	1,370	$	380	$	3,641	$	22,681	$	—	$	32,936

Total	$	2,347,498	$	2,617,135	$	1,958,359	$	1,065,396	$	1,069,133	$	2,968,288	$	1,666,287	$	8,254	$	13,700,350


	September 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	590,532	$	185,706	$	97,095	$	74,381	$	15,175	$	16,731	$	605,718	$	66	$	1,585,404
Potential weakness	1,338		9,035		3,286		1,672		980		1,632		10,262		—		28,205
Definite weakness - loss unlikely	16,597		332		793		1,034		2,678		214		5,452		—		27,100
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	608,467	$	195,073	$	101,174	$	77,087	$	18,833	$	18,577	$	621,432	$	66	$	1,640,709

Commercial real estate
Pass	$	699,565	$	1,019,453	$	606,645	$	347,874	$	442,306	$	794,263	$	17,068	$	—	$	3,927,174
Potential weakness	22,106		29,091		51,976		14,628		21,350		82,655		13,615		—		235,421
Definite weakness - loss unlikely	9,331		16,336		3,399		13,657		9,762		6,179		—		—		58,664
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	731,002	$	1,064,880	$	662,020	$	376,159	$	473,418	$	883,097	$	30,683	$	—	$	4,221,259

Commercial construction
Pass	$	127,945	$	216,573	$	82,559	$	22,851	$	22,873	$	6,505	$	16,424	$	2,134	$	497,864
Potential weakness	—		12,991		—		—		—		—		—		—		12,991
Definite weakness - loss unlikely	—		4,560		—		—		—		—		—		—		4,560
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	127,945	$	234,124	$	82,559	$	22,851	$	22,873	$	6,505	$	16,424	$	2,134	$	515,415

Small business
Pass	$	40,736	$	38,804	$	22,075	$	14,241	$	10,675	$	21,809	$	32,679	$	—	$	181,019
Potential weakness	14		—		383		200		5		174		627		—		1,403
Definite weakness - loss unlikely	138		637		41		26		10		284		580		—		1,716
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	40,888	$	39,441	$	22,499	$	14,467	$	10,690	$	22,267	$	33,886	$	—	$	184,138

Residential real estate
Pass	$	277,949	$	184,974	$	92,723	$	97,915	$	102,581	$	463,397	$	—	$	—	$	1,219,539
Default	—		123		—		1,024		—		2,163		—		—		3,310

Total residential real estate	$	277,949	$	185,097	$	92,723	$	98,939	$	102,581	$	465,560	$	—	$	—	$	1,222,849

Home equity
Pass	$	58,897	$	68,629	$	42,083	$	37,644	$	41,792	$	117,488	$	628,575	$	3,575	$	998,683
Default	—		—		—		—		—		33		1,717		35		1,785

Total home equity	$	58,897	$	68,629	$	42,083	$	37,644	$	41,792	$	117,521	$	630,292	$	3,610	$	1,000,468

Other consumer
Pass	$	307	$	347	$	244	$	78	$	500	$	5,338	$	16,359	$	—	$	23,173
Default	—		—		—		—		—		—		2		—		2

Total other consumer	$	307	$	347	$	244	$	78	$	500	$	5,338	$	16,361	$	—	$	23,175

Total	$	1,845,455	$	1,787,591	$	1,003,302	$	627,225	$	670,687	$	1,518,865	$	1,349,078	$	5,810	$	8,808,013

(1)Loan origination dates in the tables above reflect the original origination date, or the date of a material modification of a previously originated loan.(2)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 $11.1 million and $383.6 million as of September 30, 2022 and 2021, respectively.

Foreclosed Residential Real Estate Property [Table Text Block]

The following table shows information regarding foreclosed residential real estate property at the dates indicated:


	September 30, 2022		December 31, 2021
	(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	$	1,871	$	1,426

Financing Receivable Credit Quality Indicators For Consumer And Residential Portfolio Table Text Block

The following table shows the weighted average FICO scores and the weighted average combined LTV ratios at the dates indicated below:


	September 30 2022		December 31 2021
Residential real estate portfolio
FICO score (re-scored)(1)	753		749
LTV (re-valued)(2)	54.8	%	54.4	%
Home equity portfolio
FICO score (re-scored)(1)	771		772
LTV (re-valued)(2)(3)	40.9	%	42.4	%

(1)The average FICO scores at September 30, 2022 are based upon rescores from June 2022, as available for previously originated loans, or origination score data for loans booked since June 2022. The average FICO scores at December 31, 2021 were based upon rescores available from December 2021, as available for previously originated loans, or origination score data for loans booked in December 2021.

(2)The combined LTV ratios for September 30, 2022 are based upon updated automated valuations as of August 2022, when available, and/or the most current valuation data available. The combined LTV ratios for December 31, 2021 were based upon updated automated valuations as of November 2021, 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.

Financing Receivable, Past Due [Table Text Block]

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


	September 30, 2022
	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	10	$	322	1	$	182	3	$	558	14	$	1,062	$	1,547,287	$	1,548,349	$	—
Commercial real estate	9	5,419		5	4,491		2	208		16	10,118		7,667,799		7,677,917		—
Commercial construction	—	—		1	1,661		—	—		1	1,661		1,183,496		1,185,157		—
Small business	7	233		3	15		6	29		16	277		209,290		209,567		—
Residential real estate	15	3,146		6	1,202		19	1,804		40	6,152		1,953,102		1,959,254		—
Home equity	14	534		8	775		19	1,577		41	2,886		1,084,284		1,087,170		—
Other consumer (1)	504	510		36	245		8	26		548	781		32,155		32,936		—
Total	559	$	10,164	60	$	8,571	57	$	4,202	676	$	22,937	$	13,677,413	$	13,700,350	$	—


	December 31, 2021
	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	7	$	143	2	$	252	2	$	24	11	$	419	$	1,562,860	$	1,563,279	$	—
Commercial real estate	15	32,845		—	—		4	1,339		19	34,184		7,958,160		7,992,344		—
Commercial construction	—	—		—	—		—	—		—	—		1,165,457		1,165,457		—
Small business	11	136		6	53		4	24		21	213		192,976		193,189		—
Residential real estate	12	2,709		5	714		76	3,922		93	7,345		1,597,341		1,604,686		—
Home equity	15	1,375		6	381		21	1,671		42	3,427		1,036,184		1,039,611		—
Other consumer (1)	458	719		41	277		16	112		515	1,108		27,612		28,720		—
Total	518	$	37,927	60	$	1,677	123	$	7,092	701	$	46,696	$	13,540,590	$	13,587,286	$	—

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

Financing Receivable, Nonaccrual [Table Text Block]

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


	Nonaccrual Balances
	September 30, 2022						December 31, 2021
	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	$	27,374	$	19	$	27,393	$	3,420	$	19	$	3,439
Commercial real estate	15,982		—		15,982		10,870		—		10,870

Small business	50		—		50		44		—		44
Residential real estate	8,891		—		8,891		8,580		602		9,182
Home equity	3,485		—		3,485		3,781		—		3,781
Other consumer	216		—		216		504		—		504
Total nonaccrual loans (1)	$	55,998	$	19	$	56,017	$	27,199	$	621	$	27,820

(1)Included in these amounts were $1.5 million and $2.0 million of nonaccruing TDRs at September 30, 2022 and December 31, 2021, respectively.

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

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


		September 30, 2022		December 31, 2021
	(Dollars in thousands)
TDRs on accrual status		$	11,549	$	14,635
TDRs on nonaccrual		1,538		1,993
Total TDRs		$	13,087	$	16,628
Additional commitments to lend to a borrower who has been a party to a TDR		$	137	$	190

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods [Table Text Block]

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


	Three Months Ended					Nine Months Ended
	September 30, 2022					September 30, 2022
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)					(Dollars in thousands)
Troubled debt restructurings
Commercial and industrial	1	$	68	$	67	1	68		67





Total (1)	1	$	68	$	67	1	68		67

	Three Months Ended					Nine Months Ended
	September 30, 2021					September 30, 2021
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings
Commercial and industrial	—	$	—	$	—	1	$	14,148	$	14,148
Commercial real estate	—	—		—		5	3,964		3,964
Small business	—	—		—		2	189		189



Total (1)	—	$	—	$	—	8	$	18,301	$	18,301

(1)The pre-modification and post-modification balances represent the legal principal balance of the loan. Activity presented in the table above includes $14.3 million of modifications on existing TDRs occurring during the nine months ended September 30, 2021.

Troubled Debt Restructurings On Financing Receivables Post Modifications Table Text Block

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


	Three Months Ended		Nine Months Ended
	September 30		September 30
	2022	2021	2022		2021
	(Dollars in thousands)

Combination rate and maturity	—	—	—		14,148

Extended maturity	67	—	67		4,153
Total	67	—	$	67	$	18,301