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

6 Months Ended

Jun. 30, 2023

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 June 30, 2023
	(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	$	36,932	$	76,198	$	9,248	$	3,338	$	20,454	$	12,428	$	533	$	159,131


Charge-offs	(23,190)		—		—		(59)		—		—		(518)		(23,767)
Recoveries	16		—		—		8		—		10		249		283
Provision for (release of) credit losses	1,384		2,198		(210)		319		1,011		(5)		303		5,000
Ending balance (1)	$	15,142	$	78,396	$	9,038	$	3,606	$	21,465	$	12,433	$	567	$	140,647

	Three Months Ended June 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	$	14,169	$	84,436	$	11,867	$	3,159	$	18,388	$	11,750	$	749	$	144,518
Charge-offs	—		—		—		(11)		—		(98)		(435)		(544)
Recoveries	29		—		—		33		—		14		269		345
Provision for (release of) credit losses	(91)		(980)		(157)		(397)		1,362		74		189		—
Ending balance (1)	$	14,107	$	83,456	$	11,710	$	2,784	$	19,750	$	11,740	$	772	$	144,319

	Six Months Ended June 30, 2023
	(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	$	27,559	$	77,799	$	10,762	$	2,834	$	20,973	$	11,504	$	988	$	152,419
Charge-offs	(23,471)		—		—		(87)		—		—		(1,024)		(24,582)
Recoveries	21		—		—		39		—		26		474		560
Provision for (release of) credit losses	11,033		597		(1,724)		820		492		903		129		12,250
Ending balance (1)	$	15,142	$	78,396	$	9,038	$	3,606	$	21,465	$	12,433	$	567	$	140,647

	Six Months Ended June 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	—		—		—		(59)		—		(122)		(1,069)		(1,250)
Recoveries	42		3		—		59		—		40		503		647
Provision for (release of) credit losses	(337)		(33)		(606)		(724)		5,266		(6,164)		598		(2,000)
Ending balance (1)	$	14,107	$	83,456	$	11,710	$	2,784	$	19,750	$	11,740	$	772	$	144,319

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $54.0 million and $39.0 million as of June 30, 2023 and June 30, 2022, 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:


	June 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	255,397	$	206,214	$	117,268	$	98,942	$	49,317	$	120,734	$	819,928	$	—	$	1,667,800
Potential weakness	136		1,331		660		805		653		666		27,334		—		31,585
Definite weakness - loss unlikely	170		6,797		1,282		148		1,086		387		13,964		—		23,834
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	255,703	$	214,342	$	119,210	$	99,895	$	51,056	$	121,787	$	861,226	$	—	$	1,723,219
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	34	$	23,437	$	—	$	23,471



Commercial real estate
Pass	$	508,627	$	1,189,436	$	1,384,305	$	1,318,126	$	662,064	$	2,264,182	$	66,612	$	857	$	7,394,209
Potential weakness	62,601		22,115		72,507		15,215		3,268		131,636		—		—		307,342
Definite weakness - loss unlikely	542		24,678		13,688		20,421		13,911		23,786		—		—		97,026
Partial loss probable	—		14,219		—		—		—		—		—		—		14,219
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	571,770	$	1,250,448	$	1,470,500	$	1,353,762	$	679,243	$	2,419,604	$	66,612	$	857	$	7,812,796
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Commercial construction
Pass	$	112,698	$	489,700	$	247,726	$	48,793	$	48,062	$	4,749	$	25,148	$	—	$	976,876
Potential weakness	16,910		5,023		—		3,866		—		—		—		—		25,799
Definite weakness - loss unlikely	8,659		11,462		—		—		—		—		—		—		20,121
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	138,267	$	506,185	$	247,726	$	52,659	$	48,062	$	4,749	$	25,148	$	—	$	1,022,796
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Small business
Pass	$	26,279	$	53,998	$	41,861	$	28,187	$	14,902	$	24,741	$	43,853	$	—	$	233,821
Potential weakness	—		—		—		157		—		216		305		—		678
Definite weakness - loss unlikely	370		135		137		335		—		551		1,065		—		2,593
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	26,649	$	54,133	$	41,998	$	28,679	$	14,902	$	25,508	$	45,223	$	—	$	237,092
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	87	$	—	$	87



Residential real estate
Pass	$	246,831	$	652,380	$	411,534	$	188,281	$	91,726	$	627,591	$	—	$	—	$	2,218,343
Default	—		—		—		594		—		2,347		—		—		2,941

Total residential real estate	$	246,831	$	652,380	$	411,534	$	188,875	$	91,726	$	629,938	$	—	$	—	$	2,221,284
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Home equity
Pass	$	14,533	$	41,442	$	57,879	$	52,017	$	30,658	$	132,915	$	762,582	$	2,288	$	1,094,314
Default	—		—		—		—		—		—		942		142		1,084

Total home equity	$	14,533	$	41,442	$	57,879	$	52,017	$	30,658	$	132,915	$	763,524	$	2,430	$	1,095,398
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Other consumer (3)
Pass	$	307	$	457	$	1,542	$	1,075	$	559	$	2,445	$	20,940	$	—	$	27,325
Default	—		—		—		—		—		—		1		—		1

Total other consumer	$	307	$	457	$	1,542	$	1,075	$	559	$	2,445	$	20,941	$	—	$	27,326
Current-period gross write-offs	$	1,003	$	—	$	—	$	—	$	—	$	7	$	14	$	—	$	1,024

Total	$	1,254,060	$	2,719,387	$	2,350,389	$	1,776,962	$	916,206	$	3,336,946	$	1,782,674	$	3,287	$	14,139,911
Total current-period gross write-offs	$	1,003	$	—	$	—	$	—	$	—	$	41	$	23,538	$	—	$	24,582


	June 30, 2022
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	220,435	$	188,007	$	136,331	$	79,699	$	98,598	$	26,321	$	751,261	$	—	$	1,500,652
Potential weakness	221		1,022		1,054		872		84		1,017		4,229		—		8,499
Definite weakness - loss unlikely	354		1,283		—		44		407		2,645		27,162		—		31,895
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	221,010	$	190,312	$	137,385	$	80,615	$	99,089	$	29,983	$	782,652	$	—	$	1,541,046

Commercial real estate
Pass	$	543,108	$	1,488,142	$	1,306,131	$	874,026	$	781,208	$	2,122,989	$	131,883	$	516	$	7,248,003
Potential weakness	40,003		63,294		53,347		5,996		68,671		197,553		13,620		2,578		445,062
Definite weakness - loss unlikely	1,113		8,181		4,263		2,904		14,822		67,409		—		—		98,692
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	584,224	$	1,559,617	$	1,363,741	$	882,926	$	864,701	$	2,387,951	$	145,503	$	3,094	$	7,791,757

Commercial construction
Pass	$	362,544	$	369,399	$	269,581	$	65,520	$	28,097	$	11,420	$	33,583	$	3	$	1,140,147
Potential weakness	13,054		—		3,319		—		—		21,304		—		—		37,677
Definite weakness - loss unlikely	—		16,753		—		—		—		—		—		—		16,753
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	375,598	$	386,152	$	272,900	$	65,520	$	28,097	$	32,724	$	33,583	$	3	$	1,194,577

Small business
Pass	$	30,065	$	48,840	$	33,910	$	18,528	$	10,999	$	22,481	$	37,755	$	—	$	202,578
Potential weakness	—		173		415		373		195		141		707		—		2,004
Definite weakness - loss unlikely	103		—		551		13		4		230		470		—		1,371
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	30,168	$	49,013	$	34,876	$	18,914	$	11,198	$	22,852	$	38,932	$	—	$	205,953

Residential real estate
Pass	$	396,321	$	432,105	$	200,912	$	99,019	$	102,471	$	610,183	$	—	$	—	$	1,841,011
Default	—		—		123		—		974		1,949		—		—		3,046

Total residential real estate	$	396,321	$	432,105	$	201,035	$	99,019	$	103,445	$	612,132	$	—	$	—	$	1,844,057

Home equity
Pass	$	28,727	$	63,208	$	58,488	$	33,501	$	30,145	$	130,197	$	717,115	$	2,559	$	1,063,940
Default	—		—		—		122		—		292		1,156		—		1,570

Total home equity	$	28,727	$	63,208	$	58,488	$	33,623	$	30,145	$	130,489	$	718,271	$	2,559	$	1,065,510

Other consumer (3)
Pass	$	379	$	2,862	$	2,317	$	1,671	$	576	$	4,350	$	20,697	$	—	$	32,852
Default	—		—		—		—		—		12		—		—		12

Total other consumer	$	379	$	2,862	$	2,317	$	1,671	$	576	$	4,362	$	20,697	$	—	$	32,864

Total	$	1,636,427	$	2,683,269	$	2,070,742	$	1,182,288	$	1,137,251	$	3,220,493	$	1,739,638	$	5,656	$	13,675,764

(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 Coronavirus Aid, Relief and Economic Security Act (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 $5.7 million and $30.6 million as of June 30, 2023 and 2022, respectively.

(3)Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances and the associated gross write-offs.

Foreclosed Residential Real Estate Property [Table Text Block]

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


	June 30, 2023		December 31, 2022
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	110	$	—
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	2,425	$	1,615

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:


	June 30 2023		December 31 2022
Residential real estate portfolio
FICO score (re-scored)(1)	754		753
LTV (re-valued)(2)	59.5	%	57.0	%
Home equity portfolio
FICO score (re-scored)(1)	771		771
LTV (re-valued)(2)(3)	44.1	%	41.3	%

(1)The average FICO scores at June 30, 2023 are based upon rescores from June 2023, as available for previously originated loans, or origination score data for loans booked in June 2023. The average FICO scores at December 31, 2022 were based upon rescores available from December 2022, as available for previously originated loans, or origination score data for loans booked in December 2022.

(2)The combined LTV ratios for June 30, 2023 are based upon updated automated valuations as of May 2023, when available, and/or the most current valuation data available. The combined LTV ratios for December 31, 2022 were based upon updated automated valuations as of November 2022, 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:


	June 30, 2023
	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	1	$	29	2	$	77	2	$	339	5	$	445	$	1,722,774	$	1,723,219	$	—
Commercial real estate	—	—		3	29,338		5	3,282		8	32,620		7,780,176		7,812,796		—
Commercial construction	—	—		—	—		—	—		—	—		1,022,796		1,022,796		—
Small business	11	365		9	185		7	111		27	661		236,431		237,092		—
Residential real estate	15	2,997		5	695		16	2,245		36	5,937		2,215,347		2,221,284		—
Home equity	18	1,290		6	182		14	1,084		38	2,556		1,092,842		1,095,398		—
Other consumer (1)	370	335		9	63		3	3		382	401		26,925		27,326		—
Total	415	$	5,016	34	$	30,540	47	$	7,064	496	$	42,620	$	14,097,291	$	14,139,911	$	—


	December 31, 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	3	$	49	1	$	175	3	$	23,726	7	$	23,950	$	1,611,153	$	1,635,103	$	—
Commercial real estate	7	2,052		5	4,971		3	2,977		15	10,000		7,750,230		7,760,230		—
Commercial construction	—	—		—	—		—	—		—	—		1,154,413		1,154,413		—
Small business	12	111		3	25		3	5		18	141		218,961		219,102		—
Residential real estate	8	1,654		8	1,105		16	1,725		32	4,484		2,031,040		2,035,524		—
Home equity	19	1,647		3	201		17	965		39	2,813		1,085,937		1,088,750		—
Other consumer (1)	432	421		15	83		4	28		451	532		35,021		35,553		—
Total	481	$	5,934	35	$	6,560	46	$	29,426	562	$	41,920	$	13,886,755	$	13,928,675	$	—

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

(2)The amount of net deferred costs on originated loans included in the ending balance was $6.1 million and $5.0 million at June 30, 2023 and December 31, 2022, respectively.

Financing Receivable, Nonaccrual [Table Text Block]

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


	Nonaccrual Balances
	June 30, 2023						December 31, 2022
	With Allowance for Credit Losses		Without Allowance for Credit Losses		Total		With Allowance for Credit Losses		Without Allowance for Credit Losses		Total (1)
	(Dollars in thousands)
Commercial and industrial	$	2,937	$	298	$	3,235	$	26,395	$	298	$	26,693
Commercial real estate	27,197		2,713		29,910		12,961		2,769		15,730

Small business	344		4		348		99		5		104
Residential real estate	8,179		—		8,179		8,479		—		8,479
Home equity	3,944		—		3,944		3,400		—		3,400
Other consumer	86		—		86		475		—		475
Total nonaccrual loans	$	42,687	$	3,015	$	45,702	$	51,809	$	3,072	$	54,881

(1)Nonaccrual balances at December 31, 2022 included $11.5 million of nonaccruing troubled debt restructures ("TDRs").

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

The following table presents the amortized cost basis of loans modified to borrowers experiencing financial difficulty during the three and six month periods ended June 30, 2023, disaggregated by class of financing receivable and type of modification granted:















	Three Months Ended June 30, 2023			Six Months Ended June 30, 2023
	Term Extension
	Amortized Cost Basis		% of Total Class of Financing Receivable	Amortized Cost Basis		% of Total Class of Financing Receivable
Loan Category	(Dollars in thousands)
Commercial and industrial	$	8,193	0.48%	$	8,193	0.48%
Commercial real estate	15,921		0.20%	18,461		0.24%
Commercial construction	2,369		0.23%	2,369		0.23%
Small business	—		—%	105		0.04%



Total	$	26,483		$	29,128













	Other-Than-Insignificant Payment Delay
	Amortized Cost Basis		% of Total Class of Financing Receivable	Amortized Cost Basis		% of Total Class of Financing Receivable
Loan Category	(Dollars in thousands)
Commercial and industrial	$	—	—%	$	2,805	0.16%
Commercial real estate	—		—%	7,013		0.09%





Total	$	—		$	9,818

	Combination - Interest Rate Reduction and Term Extension
	Amortized Cost Basis		% of Total Class of Financing Receivable	Amortized Cost Basis		% of Total Class of Financing Receivable
Loan Category	(Dollars in thousands)



Small business	$	—	—%	$	44	0.02%



Total	$	—		$	44

	Combination - Term Extension and Other-Than-Insignificant Payment Delay
	Amortized Cost Basis		% of Total Class of Financing Receivable	Amortized Cost Basis		% of Total Class of Financing Receivable
Loan Category	(Dollars in thousands)
Commercial and industrial	$	1,965	0.11%	$	1,965	0.11%
Commercial real estate	6,857		0.09%	6,857		0.09%





Total	$	8,822		$	8,822

The table above is reflective of all modifications during the periods presented, which may in certain instances include multiple modifications of the same loan. As such, the above amounts may not reflect outstanding balances at period end.

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty for the three and six months ending June 30, 2023:


Three Months Ended June 30, 2023
Term Extension
Loan Category						Financial Effect
Commercial and industrial						Added a weighted-average contractual term of 1 month to the life of the loans
Commercial real estate						Added a weighted-average contractual term of 1.9 years to the life of the loans
Commercial construction						Added a weighted-average contractual term of 2 months to the life of the loans

Six Months Ended June 30, 2023
Term Extension
Loan Category						Financial Effect
Commercial and industrial						Added a weighted-average contractual term of 1 month to the life of the loans
Commercial real estate						Added a weighted-average contractual term of 1.8 years to the life of the loans
Commercial construction						Added a weighted-average contractual term of 2 months to the life of the loans
Small business						Added a weighted-average contractual term of 4.3 years to the life of the loans




Interest Rate Reduction
Loan Category						Financial Effect



Small business						Reduced weighted-average contractual interest rate from 10.00% to 6.50%

Troubled Debt Restructurings On Financing Receivables Post Modifications Table Text Block

Financing Receivable, Modified, Subsequent Default

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


		December 31, 2022
	(Dollars in thousands)
TDRs on accrual status		$	11,278
TDRs on nonaccrual		11,520
Total TDRs		$	22,798

There were no new TDRs during the three or six months ended June 30, 2022.

At June 30, 2023, the Company did not have any additional commitments to lend to borrowers experiencing financial difficulty who were party to a loan modification. At December 31, 2022, the Company had additional commitments to lend to borrowers who had been a party to a TDR of $64,000.

Financing Receivable, Modified, Past Due

The following table depicts the performance of loans that have been modified in the last 12 months as of June 30, 2023:


	June 30, 2023
	Payment Status (Amortized Cost Basis)
	Current (1)		30-89 Days Past Due		90+ Days Past Due
	(Dollars in thousands)
Loan Type
Commercial and industrial	$	12,963	$	—	$	—
Commercial real estate	17,211		15,120		—
Commercial construction	2,369		—		—
Small business	149		—		—



Total	$	32,692	$	15,120	$	—

(1)Current amounts above are inclusive of $19.6 million of loans on nonaccrual status as it is the Company's policy for loans to remain current with respect to principal and interest for up to six months prior being restored to accrual status.