Loans

6 Months Ended

Jun. 30, 2024

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Loans

The period end loan composition was as follows:


($ in thousands)	Jun 30, 2024		Dec 31, 2023


Commercial and industrial	$	9,970,412	$	9,731,555
Commercial real estate — owner occupied	1,102,146		1,061,700
Commercial and business lending	11,072,558		10,793,255
Commercial real estate — investor	5,001,392		5,124,245
Real estate construction	2,255,637		2,271,398
Commercial real estate lending	7,257,029		7,395,644
Total commercial	18,329,587		18,188,898
Residential mortgage	7,840,073		7,864,891
Auto finance	2,556,009		2,256,162
Home equity	634,142		628,526
Other consumer	258,460		277,740
Total consumer	11,288,684		11,027,319
Total loans	$	29,618,271	$	29,216,218

Accrued interest receivable on loans totaled $136 million at June 30, 2024, and $132 million at December 31, 2023, and is included in interest receivable on the consolidated balance sheets. Interest accrued but not received is reversed against interest income when a loan is placed on nonaccrual. The amount of accrued interest reversed was $1 million for the three months ended June 30, 2024 and $2 million for the six months ended June 30, 2024, compared to $1 million for both the three and six months ended June 30, 2023.

The following table presents loans by credit quality indicator by origination year at June 30, 2024:


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		YTD 2024		2023		2022		2021		2020		Prior		Total














Commercial and industrial:
Risk rating:
Pass	$	894	$	1,892,814	$	945,926	$	1,686,429	$	2,640,605	$	1,440,357	$	327,541	$	669,712	$	9,603,384
Special mention	15		33,301		200		10,597		3,565		26,148		—		—		73,811
Substandard	4,450		33,557		58,653		17,654		74,835		70,837		15,389		1,101		272,027
Nonaccrual	550		—		628		4,291		13,591		2,680		—		—		21,190
Commercial and industrial	$	5,910	$	1,959,672	$	1,005,407	$	1,718,971	$	2,732,596	$	1,540,022	$	342,931	$	670,813	$	9,970,412
Commercial real estate - owner occupied:
Risk rating:
Pass	$	—	$	10,090	$	94,971	$	195,479	$	180,063	$	230,991	$	129,599	$	207,113	$	1,048,306

Substandard	—		1,082		11,518		18,592		2,332		4,456		6,136		7,874		51,989
Nonaccrual	—		—		291		1,559		—		—		—		—		1,851
Commercial real estate - owner occupied	$	—	$	11,172	$	106,780	$	215,630	$	182,396	$	235,446	$	135,735	$	214,987	$	1,102,146
Commercial and business lending:
Risk rating:
Pass	$	894	$	1,902,904	$	1,040,896	$	1,881,908	$	2,820,669	$	1,671,348	$	457,140	$	876,825	$	10,651,690
Special mention	15		33,301		200		10,597		3,565		26,148		—		—		73,811
Substandard	4,450		34,639		70,171		36,246		77,167		75,293		21,526		8,974		324,016
Nonaccrual	550		—		919		5,850		13,591		2,680		—		—		23,041
Commercial and business lending	$	5,910	$	1,970,844	$	1,112,187	$	1,934,601	$	2,914,992	$	1,775,468	$	478,666	$	885,799	$	11,072,558
Commercial real estate - investor:
Risk rating:
Pass	$	—	$	127,015	$	640,800	$	1,015,192	$	1,267,257	$	838,190	$	384,729	$	479,713	$	4,752,897
Special mention	—		327		—		—		2,480		4,790		—		4,721		12,318
Substandard	—		—		40,381		76,079		36,228		23,571		—		11,669		187,928
Nonaccrual	—		—		18,374		24,115		—		5,760		—		—		48,249
Commercial real estate - investor	$	—	$	127,342	$	699,555	$	1,115,386	$	1,305,965	$	872,312	$	384,729	$	496,103	$	5,001,392
Real estate construction:
Risk rating:
Pass	$	—	$	23,785	$	113,941	$	453,799	$	1,121,881	$	463,239	$	26,048	$	11,480	$	2,214,172
Special mention	—		—		—		—		27,953		—		—		—		27,953
Substandard	—		—		—		—		13,495		—		—		—		13,495
Nonaccrual	—		—		—		—		—		—		—		16		16
Real estate construction	$	—	$	23,785	$	113,941	$	453,799	$	1,163,329	$	463,239	$	26,048	$	11,496	$	2,255,637
Commercial real estate lending:
Risk rating:
Pass	$	—	$	150,800	$	754,741	$	1,468,991	$	2,389,137	$	1,301,429	$	410,777	$	491,193	$	6,967,069
Special mention	—		327		—		—		30,433		4,790		—		4,721		40,271
Substandard	—		—		40,381		76,079		49,724		23,571		—		11,669		201,424
Nonaccrual	—		—		18,374		24,115		—		5,760		—		16		48,265
Commercial real estate lending	$	—	$	151,127	$	813,496	$	1,569,185	$	2,469,294	$	1,335,551	$	410,777	$	507,599	$	7,257,029
Total commercial:
Risk rating:
Pass	$	894	$	2,053,704	$	1,795,638	$	3,350,899	$	5,209,806	$	2,972,777	$	867,918	$	1,368,018	$	17,618,759
Special mention	15		33,628		200		10,597		33,999		30,938		—		4,721		114,082
Substandard	4,450		34,639		110,552		112,324		126,891		98,864		21,526		20,643		525,439
Nonaccrual	550		—		19,293		29,966		13,591		8,440		—		16		71,306
Total commercial	$	5,910	$	2,121,971	$	1,925,683	$	3,503,786	$	5,384,286	$	3,111,019	$	889,443	$	1,393,398	$	18,329,587


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		YTD 2024		2023		2022		2021		2020		Prior		Total
Residential mortgage:
Risk rating:
Pass	$	—	$	—	$	59,996	$	442,905	$	1,665,096	$	2,058,192	$	1,366,320	$	2,178,474	$	7,770,983
Special mention	—		—		—		—		—		—		—		287		287
Substandard	—		—		—		458		92		—		—		196		745
Nonaccrual	—		—		982		1,621		10,987		9,853		8,214		36,402		68,058
Residential mortgage	$	—	$	—	$	60,978	$	444,983	$	1,676,175	$	2,068,045	$	1,374,533	$	2,215,359	$	7,840,073
Auto finance:
Risk rating:
Pass	$	—	$	—	$	650,646	$	1,035,480	$	798,751	$	61,750	$	114	$	225	$	2,546,966
Special mention	—		—		101		674		1,072		170		—		—		2,018
Substandard	—		—		—		36		2		—		—		—		39
Nonaccrual	—		—		82		1,767		4,617		519		—		—		6,986
Auto finance	$	—	$	—	$	650,830	$	1,037,958	$	804,442	$	62,440	$	114	$	225	$	2,556,009
Home equity:
Risk rating:
Pass	$	5,512	$	532,317	$	261	$	1,660	$	28,051	$	5,925	$	2,051	$	54,824	$	625,089
Special mention	246		226		—		59		37		75		18		603		1,018
Substandard	—		—		—		8		—		—		—		32		40
Nonaccrual	698		161		30		10		576		174		219		6,827		7,996
Home equity	$	6,456	$	532,704	$	291	$	1,737	$	28,664	$	6,174	$	2,288	$	62,285	$	634,142
Other consumer:
Risk rating:
Pass	$	72	$	186,582	$	6,751	$	4,511	$	2,586	$	1,254	$	679	$	53,504	$	255,867
Special mention	4		726		—		—		11		14		1		4		757
Substandard	—		1,759		—		—		—		—		—		—		1,759
Nonaccrual	5		49		—		8		7		4		—		9		77
Other consumer	$	81	$	189,115	$	6,751	$	4,519	$	2,605	$	1,272	$	681	$	53,518	$	258,460
Total consumer:
Risk rating:
Pass	$	5,584	$	718,898	$	717,655	$	1,484,555	$	2,494,485	$	2,127,121	$	1,369,163	$	2,287,027	$	11,198,905
Special mention	250		952		101		734		1,120		259		20		893		4,080
Substandard	—		1,759		—		502		94		—		—		228		2,583
Nonaccrual	704		209		1,094		3,406		16,186		10,550		8,433		43,238		83,117
Total consumer	$	6,537	$	721,819	$	718,850	$	1,489,197	$	2,511,886	$	2,137,930	$	1,377,616	$	2,331,386	$	11,288,684
Total loans:
Risk rating:
Pass	$	6,478	$	2,772,602	$	2,513,293	$	4,835,454	$	7,704,291	$	5,099,898	$	2,237,081	$	3,655,045	$	28,817,664
Special mention	265		34,580		301		11,331		35,119		31,197		20		5,614		118,162
Substandard	4,450		36,398		110,552		112,826		126,985		98,864		21,526		20,871		528,022
Nonaccrual	1,254		209		20,387		33,372		29,777		18,990		8,433		43,255		154,423
Total loans	$	12,447	$	2,843,790	$	2,644,533	$	4,992,983	$	7,896,172	$	5,248,950	$	2,267,059	$	3,724,785	$	29,618,271

(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination.

The following table presents loans by credit quality indicator by origination year at December 31, 2023:


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		2023		2022		2021		2020		2019		Prior		Total







Commercial and industrial:
Risk rating:
Pass	$	1,380	$	1,693,249	$	1,736,617	$	2,877,173	$	1,824,362	$	398,046	$	383,695	$	449,006	$	9,362,149
Special mention	—		21,779		4,017		46,610		8,525		3,529		—		25,341		109,801
Substandard	804		81,924		10,515		39,748		47,279		17,732		94		291		197,582
Nonaccrual	6,414		—		13,317		14,188		33,891		627		—		—		62,022
Commercial and industrial	$	8,598	$	1,796,951	$	1,764,466	$	2,977,719	$	1,914,057	$	419,934	$	383,789	$	474,638	$	9,731,555
Commercial real estate - owner occupied:
Risk rating:
Pass	$	—	$	15,393	$	204,039	$	188,003	$	239,218	$	136,535	$	135,730	$	92,339	$	1,011,259
Special mention	—		271		—		—		6,150		2,635		—		1,293		10,349
Substandard	—		292		14,735		2,791		6,416		8,537		3,086		2,841		38,699
Nonaccrual	—		—		1,394		—		—		—		—		—		1,394
Commercial real estate - owner occupied	$	—	$	15,957	$	220,168	$	190,794	$	251,783	$	147,708	$	138,816	$	96,473	$	1,061,700
Commercial and business lending:
Risk rating:
Pass	$	1,380	$	1,708,642	$	1,940,657	$	3,065,177	$	2,063,580	$	534,581	$	519,426	$	541,345	$	10,373,408
Special mention	—		22,050		4,017		46,610		14,675		6,164		—		26,634		120,150
Substandard	804		82,216		25,250		42,539		53,695		26,269		3,180		3,132		236,281
Nonaccrual	6,414		—		14,710		14,188		33,891		627		—		—		63,416
Commercial and business lending	$	8,598	$	1,812,909	$	1,984,635	$	3,168,514	$	2,165,840	$	567,642	$	522,606	$	571,111	$	10,793,255
Commercial real estate - investor:
Risk rating:
Pass	$	—	$	155,109	$	1,263,866	$	1,247,434	$	1,080,425	$	471,371	$	358,996	$	239,230	$	4,816,433
Special mention	—		502		4,248		25,474		26,208		—		29,772		6,014		92,218
Substandard	—		—		106,002		69,584		15,000		983		—		24,025		215,595

Commercial real estate - investor	$	—	$	155,611	$	1,374,116	$	1,342,492	$	1,121,633	$	472,355	$	388,768	$	269,269	$	5,124,245
Real estate construction:
Risk rating:
Pass	$	—	$	23,307	$	422,277	$	1,176,608	$	547,825	$	87,680	$	5,740	$	7,954	$	2,271,392


Nonaccrual	—		—		—		—		—		—		—		6		6
Real estate construction	$	—	$	23,307	$	422,277	$	1,176,608	$	547,825	$	87,680	$	5,740	$	7,960	$	2,271,398
Commercial real estate lending:
Risk rating:
Pass	$	—	$	178,416	$	1,686,143	$	2,424,042	$	1,628,250	$	559,052	$	364,737	$	247,184	$	7,087,824
Special mention	—		502		4,248		25,474		26,208		—		29,772		6,014		92,218
Substandard	—		—		106,002		69,584		15,000		983		—		24,025		215,595
Nonaccrual	—		—		—		—		—		—		—		6		6
Commercial real estate lending	$	—	$	178,918	$	1,796,393	$	2,519,100	$	1,669,458	$	560,035	$	394,508	$	277,230	$	7,395,644


					Term Loans Amortized Cost Basis by Origination Year(a)
($ in thousands)	Rev Loans Converted to Term(a)		Rev Loans Amortized Cost Basis		2023		2022		2021		2020		2019		Prior		Total
Total commercial:
Risk rating:
Pass	$	1,380	$	1,887,058	$	3,626,800	$	5,489,219	$	3,691,830	$	1,093,633	$	884,162	$	788,529	$	17,461,232
Special mention	—		22,552		8,265		72,084		40,882		6,164		29,772		32,648		212,368
Substandard	804		82,216		131,253		112,123		68,695		27,253		3,180		27,157		451,876
Nonaccrual	6,414		—		14,710		14,188		33,891		627		—		6		63,422
Total commercial	$	8,598	$	1,991,827	$	3,781,028	$	5,687,614	$	3,835,298	$	1,127,677	$	917,114	$	848,341	$	18,188,898
Residential mortgage:
Risk rating:
Pass	$	—	$	—	$	352,321	$	1,617,409	$	2,110,577	$	1,414,186	$	647,778	$	1,650,542	$	7,792,813
Special mention	—		—		—		—		—		—		95		57		152
Substandard	—		—		490		93		—		—		174		26		784
Nonaccrual	—		—		1,425		9,567		9,259		10,397		6,628		33,865		71,142
Residential mortgage	$	—	$	—	$	354,236	$	1,627,070	$	2,119,836	$	1,424,583	$	654,675	$	1,684,490	$	7,864,891
Auto finance:
Risk rating:
Pass	$	—	$	—	$	1,218,820	$	952,839	$	75,209	$	163	$	456	$	132	$	2,247,618
Special mention	—		—		619		1,850		205		—		—		—		2,674
Substandard	—		—		—		73		—		—		—		—		73
Nonaccrual	—		—		1,032		4,332		430		—		3		—		5,797
Auto finance	$	—	$	—	$	1,220,471	$	959,094	$	75,844	$	163	$	458	$	132	$	2,256,162
Home equity:
Risk rating:
Pass	$	8,703	$	521,000	$	1,678	$	29,863	$	6,084	$	2,327	$	4,891	$	53,350	$	619,192
Special mention	179		200		—		87		—		29		15		378		708
Substandard	10		75		10		—		—		—		33		—		118
Nonaccrual	1,302		160		29		495		132		144		368		7,180		8,508
Home equity	$	10,195	$	521,434	$	1,717	$	30,445	$	6,217	$	2,500	$	5,308	$	60,907	$	628,526
Other consumer:
Risk rating:
Pass	$	121	$	196,632	$	6,419	$	3,732	$	2,658	$	1,127	$	460	$	64,121	$	275,149
Special mention	26		843		9		—		3		20		—		6		881
Substandard	—		1,582		—		—		—		—		—		—		1,582
Nonaccrual	27		71		10		1		6		2		8		29		128
Other consumer	$	174	$	199,129	$	6,438	$	3,733	$	2,668	$	1,149	$	468	$	64,156	$	277,740
Total consumer:
Risk rating:
Pass	$	8,824	$	717,632	$	1,579,238	$	2,603,843	$	2,194,529	$	1,417,802	$	653,584	$	1,768,145	$	10,934,773
Special mention	205		1,043		628		1,936		208		49		110		441		4,416
Substandard	10		1,656		500		166		—		—		207		26		2,556
Nonaccrual	1,330		231		2,496		14,396		9,827		10,544		7,007		41,073		85,574
Total consumer	$	10,369	$	720,563	$	1,582,862	$	2,620,341	$	2,204,564	$	1,428,395	$	660,909	$	1,809,685	$	11,027,319
Total loans:
Risk rating:
Pass	$	10,204	$	2,604,690	$	5,206,038	$	8,093,062	$	5,886,359	$	2,511,435	$	1,537,747	$	2,556,674	$	28,396,005
Special mention	205		23,595		8,893		74,020		41,091		6,213		29,882		33,089		216,784
Substandard	814		83,872		131,753		112,289		68,695		27,253		3,387		27,183		454,432
Nonaccrual	7,744		231		17,206		28,584		43,718		11,170		7,007		41,080		148,997
Total loans	$	18,966	$	2,712,389	$	5,363,890	$	8,307,956	$	6,039,862	$	2,556,071	$	1,578,023	$	2,658,026	$	29,216,218

(a) Revolving loans converted to term loans are those converted during the reporting period and are also reported in their year of origination.

The following table presents gross charge offs by origination year for the six months ended June 30, 2024:


			Gross Charge Offs by Origination Year
($ in thousands)	Rev Loans Amortized Cost Basis		2024		2023		2022		2021		2020		Prior		Total
Commercial and industrial	$	1,930	$	128	$	8,172	$	553	$	22,921	$	3	$	—	$	33,708
Commercial real estate-owner occupied	—		—		—		—		—		—		3		3
Commercial and business lending	1,930		128		8,172		553		22,921		3		3		33,710
Commercial real estate-investor	—		—		—		—		4,569		—		—		4,569

Commercial real estate lending	—		—		—		—		4,569		—		—		4,569
Total commercial	1,930		128		8,172		553		27,490		3		3		38,279
Residential mortgage	—		—		58		60		7		32		267		423
Auto finance	—		53		1,549		3,100		294		—		—		4,996
Home equity	93		—		—		9		—		8		37		147
Other consumer	3,281		3		41		44		28		38		29		3,463
Total consumer	3,374		56		1,648		3,213		329		78		332		9,029
Total gross charge offs	$	5,304	$	184	$	9,820	$	3,766	$	27,819	$	81	$	335	$	47,308

The following table presents gross charge offs by origination year for the year ended December 31, 2023:


			Gross Charge Offs by Origination Year
($ in thousands)	Rev Loans Amortized Cost Basis		2023		2022		2021		2020		2019		Prior		Total
Commercial and industrial	$	4,130	$	717	$	9,594	$	25,270	$	5,958	$	—	$	18	$	45,687
Commercial real estate-owner occupied	—		—		—		—		—		25		—		25
Commercial and business lending	4,130		717		9,594		25,270		5,958		25		18		45,713
Commercial real estate-investor	—		—		—		—		—		—		252		252
Real estate construction	—		—		—		—		—		—		25		25
Commercial real estate lending	—		—		—		—		—		—		277		277
Total commercial	4,130		717		9,594		25,270		5,958		25		295		45,989
Residential mortgage	—		2		32		42		148		5		723		952
Auto finance	—		795		4,524		626		—		5		—		5,950
Home equity	53		21		3		31		—		22		294		424
Other consumer	4,884		—		72		124		131		72		170		5,453
Total consumer	4,937		818		4,630		823		279		105		1,187		12,779
Total gross charge offs	$	9,068	$	1,535	$	14,224	$	26,093	$	6,237	$	130	$	1,482	$	58,768

Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, and appropriate policies for ACLL, nonaccrual loans, and charge offs.

For commercial loans, management has determined the pass credit quality indicator to include credits exhibiting acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits performing in accordance with the original contractual terms.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that warrant specific attention from management. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Accruing loan modifications could be pass or special mention, depending on the risk rating on the loan. Substandard loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses, which may jeopardize liquidation of the debt, and are characterized by the distinct possibility the Corporation will sustain some loss if the deficiencies are not corrected. Management has determined commercial loan relationships in nonaccrual status, and commercial and consumer loan relationships with their terms restructured in a loan modification, meet the criteria to be individually evaluated. Commercial loans classified as special mention, substandard, and nonaccrual are reviewed at a minimum on a quarterly basis, while pass credits, which are performing rated credits, are generally reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted.

The recorded investment of consumer loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $20 million at June 30, 2024 and $16 million at December 31, 2023.

The following table presents loans by past due status at June 30, 2024:


	Accruing
($ in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Nonaccrual(a)(b)		Total


Commercial and industrial	$	9,946,786	$	1,830	$	222	$	384	$	21,190	$	9,970,412
Commercial real estate - owner occupied	1,100,295		—		—		—		1,851		1,102,146
Commercial and business lending	11,047,081		1,830		222		384		23,041		11,072,558
Commercial real estate - investor	4,952,120		1,023		—		—		48,249		5,001,392
Real estate construction	2,255,621		—		—		—		16		2,255,637
Commercial real estate lending	7,207,741		1,023		—		—		48,265		7,257,029
Total commercial	18,254,821		2,853		222		384		71,306		18,329,587
Residential mortgage	7,761,641		10,087		287		—		68,058		7,840,073
Auto finance	2,533,170		13,796		2,018		39		6,986		2,556,009
Home equity	622,452		2,677		1,018		—		7,996		634,142
Other consumer	254,457		1,175		820		1,931		77		258,460
Total consumer	11,171,720		27,735		4,143		1,970		83,117		11,288,684
Total loans	$	29,426,541	$	30,587	$	4,365	$	2,354	$	154,423	$	29,618,271

(a) Of the total nonaccrual loans, $63 million, or 41%, were current with respect to payment at June 30, 2024.

(b) No interest income was recognized on nonaccrual loans for the three and six months ended June 30, 2024. In addition, there were $13 million of nonaccrual loans for which there was no related ACLL at June 30, 2024.

The following table presents loans by past due status at December 31, 2023:


	Accruing
($ in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Nonaccrual(a)(b)		Total


Commercial and industrial	$	9,663,587	$	5,374	$	191	$	380	$	62,022	$	9,731,555
Commercial real estate - owner occupied	1,059,948		—		358		—		1,394		1,061,700
Commercial and business lending	10,723,536		5,374		549		380		63,416		10,793,255
Commercial real estate - investor	5,086,117		—		18,697		19,432		—		5,124,245
Real estate construction	2,271,392		—		—		—		6		2,271,398
Commercial real estate lending	7,357,509		—		18,697		19,432		6		7,395,644
Total commercial	18,081,044		5,374		19,246		19,812		63,422		18,188,898
Residential mortgage	7,780,304		13,294		152		—		71,142		7,864,891
Auto finance	2,232,906		14,712		2,674		73		5,797		2,256,162
Home equity	615,810		3,500		708		—		8,508		628,526
Other consumer	273,644		1,233		932		1,803		128		277,740
Total consumer	10,902,664		32,739		4,467		1,876		85,574		11,027,319
Total loans	$	28,983,708	$	38,113	$	23,712	$	21,689	$	148,997	$	29,216,218

(a) Of the total nonaccrual loans, $80 million, or 53%, were current with respect to payment at December 31, 2023.

(b) No interest income was recognized on nonaccrual loans for the year ended December 31, 2023. In addition, there were $23 million of nonaccrual loans for which there was no related ACLL at December 31, 2023.

Loan Modifications

The following tables show the composition of loan modifications made to borrowers experiencing financial difficulty by the loan portfolio and type of concessions granted during the three and six months ended June 30, 2024 and June 30, 2023. Each of the types of concessions granted comprised less than 1% of their respective classes of loan portfolios at June 30, 2024.


	Interest Rate Concession
	Amortized Cost
	Three Months Ended Jun 30,				Six Months Ended Jun 30,
($ in thousands)	2024		2023		2024		2023
Commercial and industrial	$	161	$	122	$	298	$	168

Auto	139		21		144		80
Home equity	—		47		—		78
Other consumer	631		489		1,110		988
Total loans modified	$	930	$	679	$	1,552	$	1,314


	Term Extension
	Amortized Cost
	Three Months Ended Jun 30,				Six Months Ended Jun 30,
($ in thousands)	2024		2023		2024		2023

Residential mortgage	$	—	$	—	$	—	$	208
Home equity	—		27		—		27

Total loans modified	$	—	$	27	$	—	$	235


	Combination - Interest Rate Concession and Term Extension
	Amortized Cost
	Three Months Ended Jun 30,				Six Months Ended Jun 30,
($ in thousands)	2024		2023		2024		2023

Residential mortgage	$	—	$	356	$	641	$	519
Home equity	—		77		30		168

Total loans modified	$	—	$	432	$	670	$	687

The following tables summarize, by loan portfolio, the financial effect of the Corporation's loan modifications on the modified loans as of June 30, 2024 and June 30, 2023:


	Interest Rate Concession
	Financial Effect, Weighted Average Contractual Interest Rate (Decrease) Increase(a)
	Three Months Ended Jun 30,				Six Months Ended Jun 30,
Loan Type	2024		2023		2024		2023
Commercial and industrial	(19)	%	(18)	%	(17)	%	(17)	%
Residential mortgage	—	%	2	%	3	%	2	%
Auto	(8)	%	(9)	%	(8)	%	(4)	%
Home equity	—	%	2	%	(3)	%	—	%
Other consumer	(22)	%	(21)	%	(22)	%	(20)	%
Weighted average of total loans modified	(18)	%	(11)	%	(13)	%	(11)	%

(a) Due to market conditions, some interest rate concessions on floating rate loans may involve an increase in rate that was lower in comparison to the rate of increase for floating rate loans not modified.

Term Extension

Financial Effect, Weighted Average Term Increase(a)

Three Months Ended Jun 30,

Six Months Ended Jun 30,

Loan Type

2024

2023

2024

2023

Residential mortgage

0 months

29 months

158 months

50 months

Home equity

0 months

113 months

64 months

110 months

Weighted average of total loans modified

0 months

48 months

153 months

63 months

(a) During the three months ended June 30, 2024, there were no term extensions. During the three months ended June 30, 2023, term extensions changed the weighted average term on modified loans from 204 to 252 months. During the six months ended June 30, 2024 and June 30, 2023, term extensions changed the weighted average term on modified loans from 254 to 407 months and 223 to 285 months, respectively.

The Corporation closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the twelve months ended June 30, 2024:


	Payment Status (Amortized Cost Basis)
($ in thousands)	Current		30-89 Days Past Due		90+ Days Past Due
Commercial and industrial	$	410	$	—	$	—
Residential mortgage	902		24		55
Auto	107		41		—
Home equity	139		—		—
Other consumer	1,615		—		—
Total loans modified	$	3,173	$	65	$	55

The following table depicts the performance of loans that have been modified in the six months ended June 30, 2023:


	Payment Status (Amortized Cost Basis)
($ in thousands)	Current		30-89 Days Past Due		90+ Days Past Due
Commercial and industrial	$	168	$	—	$	—
Residential mortgage	519		208		—
Auto	80		—		—
Home equity	264		—		9
Other consumer	988		—		—
Total loans modified	$	2,019	$	208	$	9

The following table provides the amortized cost of loan modifications by loan portfolio and type of concession that were modified in the previous twelve months and subsequently had a payment default during the six months ended June 30, 2024:


	Amortized Cost of Loan Modifications that Subsequently Defaulted
($ in thousands)	Interest Rate Concession		Term Extension		Combination Interest Rate Reduction and Term Extension

Auto	$	6	$	—	$	—

Total loans modified	$	6	$	—	$	—

The following table provides the amortized cost of loan modifications by loan portfolio and type of concession that were modified in the previous six months and subsequently had a payment default during the six months ended June 30, 2023:


	Amortized Cost of Loan Modifications that Subsequently Defaulted
($ in thousands)	Interest Rate Concession		Term Extension		Combination Interest Rate Reduction and Term Extension
Residential mortgage	$	—	$	201	$	128
Home equity	—		—		60
Total loans modified	$	—	$	201	$	187

The nature and extent of the impairment of modified loans, including those which have experienced a subsequent payment default, are considered in the determination of an appropriate level of the ACLL.

Allowance for Credit Losses on Loans

The ACLL is comprised of the allowance for loan losses and the allowance for unfunded commitments. The level of the ACLL represents management’s estimate of an amount appropriate to provide for expected lifetime credit losses in the loan portfolio at the balance sheet date. The expected lifetime credit losses are the product of multiplying the Corporation's estimates of probability of default, loss given default, and the individual loan level exposure at default on an undiscounted basis. A main factor in the determination of the ACLL is the economic forecast. The forecast the Corporation used for June 30, 2024 was the Moody's baseline scenario from May 2024, which was reviewed against the June 2024 baseline scenario with no material updates made, over a two year reasonable and supportable period with straight-line reversion to the historical losses over the second year of the period. The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). See Note 11 for additional information on the change in the allowance for unfunded commitments.

The following table presents a summary of the changes in the ACLL by portfolio segment for the six months ended June 30, 2024:


($ in thousands)	Dec 31, 2023		Charge offs		Recoveries		Net Charge offs		Provision for credit losses		Jun 30, 2024		ACLL / Loans
Allowance for loan losses


Commercial and industrial	$	128,263	$	(33,708)	$	1,394	$	(32,314)	$	29,942	$	125,891
Commercial real estate — owner occupied	10,610		(3)		6		4		463		11,077
Commercial and business lending	138,873		(33,710)		1,400		(32,310)		30,405		136,968
Commercial real estate — investor	67,858		(4,569)		—		(4,569)		8,274		71,563
Real estate construction	53,554		—		58		58		2,285		55,897
Commercial real estate lending	121,412		(4,569)		58		(4,511)		10,559		127,459
Total commercial	260,285		(38,279)		1,458		(36,821)		40,963		264,427
Residential mortgage	37,808		(423)		72		(351)		(2,915)		34,542
Auto finance	24,961		(4,996)		1,422		(3,574)		6,383		27,770
Home equity	15,403		(147)		596		449		240		16,092
Other consumer	12,638		(3,463)		509		(2,954)		3,329		13,013
Total consumer	90,809		(9,029)		2,600		(6,429)		7,037		91,417
Total loans	$	351,094	$	(47,308)	$	4,058	$	(43,251)	$	48,000	$	355,844
Allowance for unfunded commitments


Commercial and industrial	$	13,319	$	—	$	—	$	—	$	(182)	$	13,137
Commercial real estate — owner occupied	149		—		—		—		20		169
Commercial and business lending	13,468		—		—		—		(162)		13,306
Commercial real estate — investor	480		—		—		—		113		593
Real estate construction	17,024		—		—		—		(1,241)		15,783
Commercial real estate lending	17,504		—		—		—		(1,128)		16,376
Total commercial	30,972		—		—		—		(1,290)		29,682


Home equity	2,629		—		—		—		(146)		2,483
Other consumer	1,174		—		—		—		436		1,610
Total consumer	3,803		—		—		—		290		4,093
Total loans	$	34,776	$	—	$	—	$	—	$	(1,000)	$	33,776
Allowance for credit losses on loans


Commercial and industrial	$	141,582	$	(33,708)	$	1,394	$	(32,314)	$	29,760	$	139,028	1.39	%
Commercial real estate — owner occupied	10,759		(3)		6		4		483		11,246		1.02	%
Commercial and business lending	152,341		(33,710)		1,400		(32,310)		30,243		150,274		1.36	%
Commercial real estate — investor	68,338		(4,569)		—		(4,569)		8,387		72,156		1.44	%
Real estate construction	70,578		—		58		58		1,043		71,680		3.18	%
Commercial real estate lending	138,916		(4,569)		58		(4,511)		9,430		143,835		1.98	%
Total commercial	291,257		(38,279)		1,458		(36,821)		39,673		294,109		1.60	%
Residential mortgage	37,808		(423)		72		(351)		(2,915)		34,542		0.44	%
Auto finance	24,961		(4,996)		1,422		(3,574)		6,383		27,770		1.09	%
Home equity	18,032		(147)		596		449		93		18,575		2.93	%
Other consumer	13,812		(3,463)		509		(2,954)		3,765		14,623		5.66	%
Total consumer	94,613		(9,029)		2,600		(6,429)		7,327		95,510		0.85	%
Total loans	$	385,870	$	(47,308)	$	4,058	$	(43,251)	$	47,000	$	389,620	1.32	%

The following table presents a summary of the changes in the ACLL by portfolio segment for the year ended December 31, 2023:


($ in thousands)	Dec 31, 2022		Charge offs		Recoveries		Net Charge offs		Provision for credit losses		Dec 31, 2023		ACLL / Loans
Allowance for loan losses


Commercial and industrial	$	119,076	$	(45,687)	$	3,015	$	(42,672)	$	51,859	$	128,263
Commercial real estate — owner occupied	9,475		(25)		11		(15)		1,150		10,610
Commercial and business lending	128,551		(45,713)		3,026		(42,687)		53,009		138,873
Commercial real estate — investor	54,398		(252)		3,016		2,763		10,697		67,858
Real estate construction	45,589		(25)		80		55		7,910		53,554
Commercial real estate lending	99,986		(277)		3,095		2,819		18,607		121,412
Total commercial	228,538		(45,989)		6,121		(39,868)		71,616		260,285
Residential mortgage	38,298		(952)		541		(411)		(79)		37,808
Auto finance	19,619		(5,950)		1,241		(4,709)		10,051		24,961
Home equity	14,875		(424)		1,262		837		(310)		15,403
Other consumer	11,390		(5,453)		978		(4,475)		5,723		12,638
Total consumer	84,182		(12,779)		4,021		(8,758)		15,384		90,809
Total loans	$	312,720	$	(58,768)	$	10,142	$	(48,626)	$	87,000	$	351,094
Allowance for unfunded commitments


Commercial and industrial	$	12,997	$	—	$	—	$	—	$	321	$	13,319
Commercial real estate — owner occupied	103		—		—		—		46		149
Commercial and business lending	13,101		—		—		—		367		13,468
Commercial real estate — investor	710		—		—		—		(230)		480
Real estate construction	20,583		—		—		—		(3,558)		17,024
Commercial real estate lending	21,292		—		—		—		(3,788)		17,504
Total commercial	34,393		—		—		—		(3,421)		30,972


Home equity	2,699		—		—		—		(70)		2,629
Other consumer	1,683		—		—		—		(509)		1,174
Total consumer	4,382		—		—		—		(579)		3,803
Total loans	$	38,776	$	—	$	—	$	—	$	(4,000)	$	34,776
Allowance for credit losses on loans


Commercial and industrial	$	132,073	$	(45,687)	$	3,015	$	(42,672)	$	52,181	$	141,582	1.45	%
Commercial real estate — owner occupied	9,579		(25)		11		(15)		1,195		10,759		1.01	%
Commercial and business lending	141,652		(45,713)		3,026		(42,687)		53,376		152,341		1.41	%
Commercial real estate — investor	55,108		(252)		3,016		2,763		10,467		68,338		1.33	%
Real estate construction	66,171		(25)		80		55		4,351		70,578		3.11	%
Commercial real estate lending	121,279		(277)		3,095		2,819		14,819		138,916		1.88	%
Total commercial	262,931		(45,989)		6,121		(39,868)		68,195		291,257		1.60	%
Residential mortgage	38,298		(952)		541		(411)		(79)		37,808		0.48	%
Auto finance	19,619		(5,950)		1,241		(4,709)		10,051		24,961		1.11	%
Home equity	17,574		(424)		1,262		837		(380)		18,032		2.87	%
Other consumer	13,073		(5,453)		978		(4,475)		5,214		13,812		4.97	%
Total consumer	88,565		(12,779)		4,021		(8,758)		14,805		94,613		0.86	%
Total loans	$	351,496	$	(58,768)	$	10,142	$	(48,626)	$	83,000	$	385,870	1.32	%