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

9 Months Ended

Sep. 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 September 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	$	15,142	$	78,396	$	9,038	$	3,606	$	21,465	$	12,433	$	567	$	140,647


Charge-offs	—		(5,072)		—		(112)		—		—		(834)		(6,018)
Recoveries	111		—		—		35		—		12		282		440
Provision for (release of) credit losses	1,681		1,078		(208)		385		1,682		101		781		5,500
Ending balance (1)	$	16,934	$	74,402	$	8,830	$	3,914	$	23,147	$	12,546	$	796	$	140,569

	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		736
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

	Nine Months Ended September 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)		(5,072)		—		(199)		—		—		(1,858)		(30,600)
Recoveries	132		—		—		74		—		38		756		1,000
Provision for (release of) credit losses	12,714		1,675		(1,932)		1,205		2,174		1,004		910		17,750
Ending balance (1)	$	16,934	$	74,402	$	8,830	$	3,914	$	23,147	$	12,546	$	796	$	140,569

	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

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $58.1 million and $42.7 million as of September 30, 2023 and September 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:


	September 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	303,838	$	188,559	$	94,714	$	73,366	$	45,741	$	116,052	$	737,335	$	—	$	1,559,605
Potential weakness	6,511		2,417		614		10,278		90		132		46,706		—		66,748
Definite weakness - loss unlikely	1,933		4,707		1,074		132		1,165		806		16,833		—		26,650
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	312,282	$	195,683	$	96,402	$	83,776	$	46,996	$	116,990	$	800,874	$	—	$	1,653,003
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	34	$	23,437	$	—	$	23,471



Commercial real estate
Pass	$	795,830	$	1,160,497	$	1,338,792	$	1,312,240	$	610,009	$	2,188,221	$	68,496	$	858	$	7,474,943
Potential weakness	62,572		37,695		57,987		14,662		2,945		118,830		—		—		294,691
Definite weakness - loss unlikely	30,667		27,504		23,568		4,321		19,211		21,325		—		—		126,596
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	889,069	$	1,225,696	$	1,420,347	$	1,331,223	$	632,165	$	2,328,376	$	68,496	$	858	$	7,896,230
Current-period gross write-offs	$	—	$	5,072	$	—	$	—	$	—	$	—	$	—	$	—	$	5,072



Commercial construction
Pass	$	146,278	$	491,098	$	201,730	$	9,939	$	27,304	$	1,569	$	17,248	$	—	$	895,166
Potential weakness	13,484		—		4,823		—		—		—		—		—		18,307
Definite weakness - loss unlikely	9,440		26,199		16,330		—		—		—		—		—		51,969
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	169,202	$	517,297	$	222,883	$	9,939	$	27,304	$	1,569	$	17,248	$	—	$	965,442
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Small business
Pass	$	40,551	$	52,883	$	40,706	$	26,759	$	13,759	$	23,458	$	43,759	$	—	$	241,875
Potential weakness	—		—		—		155		—		186		295		—		636
Definite weakness - loss unlikely	429		324		126		295		—		615		1,035		—		2,824
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	40,980	$	53,207	$	40,832	$	27,209	$	13,759	$	24,259	$	45,089	$	—	$	245,335
Current-period gross write-offs	$	—	$	—	$	22	$	37	$	—	$	—	$	140	$	—	$	199



Residential real estate
Pass	$	391,121	$	645,593	$	408,752	$	186,334	$	89,911	$	612,878	$	—	$	—	$	2,334,589
Default	219		—		393		135		942		1,824		—		—		3,513

Total residential real estate	$	391,340	$	645,593	$	409,145	$	186,469	$	90,853	$	614,702	$	—	$	—	$	2,338,102
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Home equity
Pass	$	21,729	$	39,251	$	56,216	$	50,724	$	30,039	$	126,897	$	765,079	$	4,190	$	1,094,125
Default	—		—		—		—		—		—		1,289		141		1,430

Total home equity	$	21,729	$	39,251	$	56,216	$	50,724	$	30,039	$	126,897	$	766,368	$	4,331	$	1,095,555
Current-period gross write-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—



Other consumer (3)
Pass	$	538	$	320	$	1,370	$	912	$	410	$	2,154	$	24,843	$	—	$	30,547
Default	—		—		—		—		—		19		2		—		21

Total other consumer	$	538	$	320	$	1,370	$	912	$	410	$	2,173	$	24,845	$	—	$	30,568
Current-period gross write-offs	$	1,836	$	—	$	—	$	—	$	—	$	7	$	15	$	—	$	1,858

Total	$	1,825,140	$	2,677,047	$	2,247,195	$	1,690,252	$	841,526	$	3,214,966	$	1,722,920	$	5,189	$	14,224,235
Total current-period gross write-offs	$	1,836	$	5,072	$	22	$	37	$	—	$	41	$	23,592	$	—	$	30,600


	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 (3)
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

(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 $5.1 million and $11.1 million as of September 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:


	September 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	$	1,667	$	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:


	September 30 2023		December 31 2022
Residential real estate portfolio
FICO score (re-scored)(1)	753		753
LTV (re-valued)(2)	59.4	%	57.0	%
Home equity portfolio
FICO score (re-scored)(1)	770		771
LTV (re-valued)(2)(3)	43.1	%	41.3	%

(1)The average FICO scores at September 30, 2023 are based upon rescores from September 2023, as available for previously originated loans, or origination score data for loans booked in September 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 September 30, 2023 are based upon updated automated valuations as of August 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:


	September 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	$	63	2	$	527	3	$	390	6	$	980	$	1,652,023	$	1,653,003	$	—
Commercial real estate	2	736		1	659		2	11,688		5	13,083		7,883,147		7,896,230		—
Commercial construction	1	7,499		—	—		—	—		1	7,499		957,943		965,442		—
Small business	7	91		4	69		11	204		22	364		244,971		245,335		—
Residential real estate	14	2,405		8	1,446		14	2,067		36	5,918		2,332,184		2,338,102		—
Home equity	11	919		4	185		17	1,431		32	2,535		1,093,020		1,095,555		—
Other consumer (1)	409	691		12	42		4	24		425	757		29,811		30,568		3
Total	445	$	12,404	31	$	2,928	51	$	15,804	527	$	31,136	$	14,193,099	$	14,224,235	$	3


	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 September 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
	September 30, 2023						December 31, 2022
	With Allowance for Credit Losses		Without Allowance for Credit Losses (2)		Total		With Allowance for Credit Losses		Without Allowance for Credit Losses (2)		Total (1)
	(Dollars in thousands)
Commercial and industrial	$	2,655	$	298	$	2,953	$	26,395	$	298	$	26,693
Commercial real estate	12,178		11,689		23,867		12,961		2,769		15,730

Small business	368		4		372		99		5		104
Residential real estate	8,493		—		8,493		8,479		—		8,479
Home equity	3,411		—		3,411		3,400		—		3,400
Other consumer	72		—		72		475		—		475
Total nonaccrual loans	$	27,177	$	11,991	$	39,168	$	51,809	$	3,072	$	54,881

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

(2)Nonaccrual balances reported above without an allowance for credit losses are attributable to loans evaluated on an individual basis where it was determined that there was no risk of loss due to sufficient underlying collateral values.

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

The following tables present the amortized cost basis of loans modified to borrowers experiencing financial difficulty during the periods presented, disaggregated by class of financing receivable and type of modification granted. The amortized cost basis amounts presented in these tables are as of the modification date and, in certain instances, may include multiple modifications of the same loan during the periods presented.















	Three Months Ended September 30, 2023			Nine Months Ended September 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	$	7,915	0.48%	$	16,108	0.97%
Commercial real estate	719		0.01%	19,180		0.24%
Commercial construction	—		—%	2,369		0.25%
Small business	—		—%	105		0.04%



Total	$	8,634		$	37,762













	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	0.17%
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	0.12%
Commercial real estate	—		—%	6,857		0.09%





Total	$	—		$	8,822

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty for the periods indicated:


Three Months Ended September 30, 2023
Term Extension
Loan Category						Financial Effect
Commercial and industrial						Added a weighted-average contractual term of 2 months to the life of the loans
Commercial real estate						Added a weighted-average contractual term of 2.9 years to the life of the loans


Nine Months Ended September 30, 2023
Term Extension
Loan Category						Financial Effect
Commercial and industrial						Added a weighted-average contractual term of 2 months 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





Combination - Interest Rate Reduction and Term Extension
Loan Category						Financial Effect



Small business						Reduced weighted-average contractual interest rate from 10.00% to 6.50% and added a weighted-average contractual term of 4.3 years to the life of the loan

Troubled Debt Restructurings On Financing Receivables Post Modifications Table Text Block

Financing Receivable, Modified, Subsequent Default

he following table and related disclosures show the Company’s total TDRs and other pertinent TDR information as of December 31, 2022 and for the prior applicable periods:



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

During the three and nine months ended September 30, 2022, one new TDR occurred within the commercial and industrial category and was comprised of an extended maturity modification, with a pre-modification outstanding recorded investment of $68,000 and a post-modification outstanding recorded investment of $67,000.

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 amortized cost and payment status of loans that have been modified in the last 12 months as of September 30, 2023:



	Payment Status (Amortized Cost Basis)
	Current		30-89 Days Past Due		90+ Days Past Due		Nonaccrual Status
	(Dollars in thousands)
Loan Type
Commercial and industrial	$	7,409	$	504	$	—	$	2,446
Commercial real estate	16,252		660		—		6,850

Small business	140		—		—		—



Total	$	23,801	$	1,164	$	—	$	9,296