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

3 Months Ended

Mar. 31, 2023

Allowance for Credit Losses and Credit Quality of Loans [Abstract]

The following tables present the activity in the allowance for credit losses by our portfolio segments:

(In thousands)	Commercial Loans			Consumer Loans			Residential			Total
Balance as of January 1, 2023 (after adoption of ASC 2022-02)	$	34,662		$	50,951		$	14,539		$	100,152
Charge-offs		(169	)		(5,342	)		(339	)		(5,850	)
Recoveries		541			1,377			121			2,039
Provision		1,006			1,834			1,069			3,909
Ending balance as of March 31, 2023	$	36,040		$	48,820		$	15,390		$	100,250

Balance as of December 31, 2021	$	28,941		$	44,253		$	18,806		$	92,000
Charge-offs		(588	)		(3,591	)		(312	)		(4,491	)
Recoveries		93			1,652			150			1,895
Provision		111			1,277			(792	)		596
Ending balance as of March 31, 2022	$	28,557		$	43,591		$	17,852		$	90,000

Past due and Nonperforming Loans by Loan Class

The following table sets forth information with regard to past due and nonperforming loans by loan segment:

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of March 31, 2023
Commercial loans:
C&I	$	2,676	$	181	$	-	$	2,857	$	1,785	$	1,261,122	$	1,265,764
CRE		870		-		-		870		5,243		2,724,001		2,730,114
Total commercial loans	$	3,546	$	181	$	-	$	3,727	$	7,028	$	3,985,123	$	3,995,878
Consumer loans:
Auto	$	6,852	$	885	$	384	$	8,121	$	1,693	$	992,247	$	1,002,061
Residential solar		2,419		773		253		3,445		183		916,456		920,084
Other consumer		3,296		1,870		1,293		6,459		98		234,516		241,073
Total consumer loans	$	12,567	$	3,528	$	1,930	$	18,025	$	1,974	$	2,143,219	$	2,163,218
Residential	$	2,403	$	462	$	398	$	3,263	$	7,282	$	2,094,937	$	2,105,482
Total loans	$	18,516	$	4,171	$	2,328	$	25,015	$	16,284	$	8,223,279	$	8,264,578

(In thousands)	31-60 Days Past Due Accruing		61-90 Days Past Due Accruing		Greater Than 90 Days Past Due Accruing		Total Past Due Accruing		Nonaccrual		Current		Recorded Total Loans
As of December 31, 2022
Commercial loans:
C&I	$	342	$	99	$	4	$	445	$	2,244	$	1,238,468	$	1,241,157
CRE		336		96		-		432		5,780		2,689,196		2,695,408
Total commercial loans	$	678	$	195	$	4	$	877	$	8,024	$	3,927,664	$	3,936,565
Consumer loans:
Auto	$	8,640	$	1,393	$	785	$	10,818	$	1,494	$	950,389	$	962,701
Residential solar		2,858		731		474		4,063		79		852,656		856,798
Other consumer		3,483		1,838		1,789		7,110		94		272,384		279,588
Total consumer loans	$	14,981	$	3,962	$	3,048	$	21,991	$	1,667	$	2,075,429	$	2,099,087
Residential	$	2,496	$	555	$	771	$	3,822	$	7,542	$	2,103,131	$	2,114,495
Total loans	$	18,155	$	4,712	$	3,823	$	26,690	$	17,233	$	8,106,224	$	8,150,147

Credit Quality by Loan Class by Year of Origination (Vintage)

The following tables illustrate the Company’s credit quality by loan class by vintage and beginning in 2023 with the Company’s January 1, 2023 adoption of ASU 2022-02 also includes gross charge-offs by loan class by vintage for the three months ended March 31, 2023. Included in other consumer gross charge-offs, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2022 originations, for the three months ended March 31, 2023.

(In thousands)	2023		2022			2021			2020			2019			Prior			Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of March 31, 2023
C&I
By internally assigned grade:
Pass	$	58,995	$	287,770		$	240,751		$	154,864		$	83,060		$	65,062		$	323,916	$	17,121	$	1,231,539
Special mention		-		956			524			3,925			90			1,439			5,965		-		12,899
Substandard		350		1,902			435			534			2,301			3,489			12,230		32		21,273
Doubtful		-		24			-			-			28			1			-		-		53
Total C&I	$	59,345	$	290,652		$	241,710		$	159,323		$	85,479		$	69,991		$	342,111	$	17,153	$	1,265,764
Current-period gross charge-offs	$	-	$	(1	)	$	(1	)	$	(3	)	$	-		$	(107	)	$	-	$	-	$	(112	)
CRE
By internally assigned grade:
Pass	$	62,072	$	364,540		$	461,622		$	417,952		$	333,603		$	767,943		$	211,630	$	42,648	$	2,662,010
Special mention		-		2,266			6,785			3,394			2,399			9,525			3,590		-		27,959
Substandard		-		309			1,265			5,671			3,298			28,277			1,325		-		40,145
Total CRE	$	62,072	$	367,115		$	469,672		$	427,017		$	339,300		$	805,745		$	216,545	$	42,648	$	2,730,114
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	(57	)	$	-		$	-	$	-	$	(57	)
Auto
By payment activity:
Performing	$	136,896	$	455,757		$	216,248		$	66,132		$	83,483		$	41,468		$	-	$	-	$	999,984
Nonperforming		11		550			660			357			363			136			-		-		2,077
Total Auto	$	136,907	$	456,307		$	216,908		$	66,489		$	83,846		$	41,604		$	-	$	-	$	1,002,061
Current-period gross charge-offs	$	-	$	(318	)	$	(242	)	$	(127	)	$	(77	)	$	(89	)	$	-	$	-	$	(853	)
Residential solar
By payment activity:
Performing	$	83,543	$	476,712		$	189,586		$	72,221		$	52,543		$	45,043		$	-	$	-	$	919,648
Nonperforming		-		198			45			36			54			103			-		-		436
Total Residential solar	$	83,543	$	476,910		$	189,631		$	72,257		$	52,597		$	45,146		$	-	$	-	$	920,084
Current-period gross charge-offs	$	-	$	(272	)	$	(334	)	$	(45	)	$	(26	)	$	(58	)	$	-	$	-	$	(735	)
Other consumer
By payment activity:
Performing	$	3,689	$	41,754		$	95,002		$	31,506		$	23,595		$	26,188		$	17,930	$	18	$	239,682
Nonperforming		-		239			663			285			70			113			5		16		1,391
Total other consumer	$	3,689	$	41,993		$	95,665		$	31,791		$	23,665		$	26,301		$	17,935	$	34	$	241,073
Current-period gross charge-offs	$	-	$	(988	)	$	(2,005	)	$	(472	)	$	(281	)	$	(8	)	$	-	$	-	$	(3,754	)
Residential
By payment activity:
Performing	$	33,490	$	257,316		$	348,907		$	207,985		$	154,174		$	849,898		$	226,644	$	19,388	$	2,097,802
Nonperforming		41		181			384			258			491			6,325			-		-		7,680
Total residential	$	33,531	$	257,497		$	349,291		$	208,243		$	154,665		$	856,223		$	226,644	$	19,388	$	2,105,482
Current-period gross charge-offs	$	-	$	-		$	-		$	-		$	-		$	(339	)	$	-	$	-	$	(339	)
Total loans	$	379,087	$	1,890,474		$	1,562,877		$	965,120		$	739,552		$	1,845,010		$	803,235	$	79,223	$	8,264,578
Current-period gross charge-offs	$	-	$	(1,579	)	$	(2,582	)	$	(647	)	$	(441	)	$	(601	)	$	-	$	-	$	(5,850	)

(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
As of December 31, 2022
C&I
By internally assigned grade:
Pass	$	296,562	$	252,480	$	164,976	$	91,497	$	39,394	$	32,413	$	327,166	$	3,133	$	1,207,621
Special mention		1,044		524		4,531		194		1,108		417		5,234		-		13,052
Substandard		76		459		231		3,098		91		3,969		12,348		163		20,435
Doubtful		-		20		-		28		-		1		-		-		49
Total C&I	$	297,682	$	253,483	$	169,738	$	94,817	$	40,593	$	36,800	$	344,748	$	3,296	$	1,241,157
CRE
By internally assigned grade:
Pass	$	374,313	$	465,990	$	439,012	$	333,568	$	217,141	$	566,783	$	201,563	$	24,735	$	2,623,105
Special mention		605		764		868		2,641		4,649		24,023		850		-		34,400
Substandard		309		-		2,316		3,937		1,822		23,819		713		4,987		37,903
Total CRE	$	375,227	$	466,754	$	442,196	$	340,146	$	223,612	$	614,625	$	203,126	$	29,722	$	2,695,408
Auto
By payment activity:
Performing	$	488,776	$	239,090	$	75,853	$	99,615	$	44,061	$	13,027	$	-	$	-	$	960,422
Nonperforming		590		655		404		385		216		29		-		-		2,279
Total Auto	$	489,366	$	239,745	$	76,257	$	100,000	$	44,277	$	13,056	$	-	$	-	$	962,701
Residential solar
By payment activity:
Performing	$	485,942	$	193,971	$	74,532	$	54,662	$	36,119	$	11,019	$	-	$	-	$	856,245
Nonperforming		320		98		50		25		16		44		-		-		553
Total Residential solar	$	486,262	$	194,069	$	74,582	$	54,687	$	36,135	$	11,063	$	-	$	-	$	856,798
Other consumer
By payment activity:
Performing	$	52,545	$	110,624	$	36,412	$	27,383	$	15,536	$	15,735	$	19,218	$	250	$	277,703
Nonperforming		238		838		395		247		57		87		8		15		1,885
Total other consumer	$	52,783	$	111,462	$	36,807	$	27,630	$	15,593	$	15,822	$	19,226	$	265	$	279,588
Residential
By payment activity:
Performing	$	251,012	$	349,498	$	212,161	$	156,957	$	157,755	$	717,621	$	233,056	$	28,122	$	2,106,182
Nonperforming		267		384		408		555		1,028		5,651		-		20		8,313
Total residential	$	251,279	$	349,882	$	212,569	$	157,512	$	158,783	$	723,272	$	233,056	$	28,142	$	2,114,495
Total loans	$	1,952,599	$	1,615,395	$	1,012,149	$	774,792	$	518,993	$	1,414,638	$	800,156	$	61,425	$	8,150,147

Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

	Three Months Ended March 31, 2023
	Term Extension
(Dollars in thousands)	Amortized Cost		% of Total Class of Financing Receivables
Residential	$	43		0.0020	%
Total	$	43		0.0020	%

Financial Effect of Modifications Made to Borrowers Experiencing Financial Difficulty

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulties:

	Three Months Ended March 31, 2023
Loan Type	Term Extension
Residential	Added a weighted-average 18 years to the life of loan, which reduced monthly payment amounts for the borrowers

Performance of Modified Loans

The following table depicts the performance of loans that have been modified since the adoption of ASU 2022-02 effective January 1, 2023:

	Payment Status (Amortized Cost Basis)
(In thousands)	Current		31-60 Days Past Due		61-90 Days Past Due		Greater than 90 Days Past Due
March 31, 2023
Loan Type
Residential	$	43	$	-	$	-	$	-
Total	$	43	$	-	$	-	$	-

Troubled Debt Restructurings on Financing Receivables

The following table illustrates the recorded investments and number of modifications designated as TDRs, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring:

	Three Months Ended March 31, 2022
(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Residential		2	$	118	$	124
Total TDRs		2	$	118	$	124

The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:

	Three Months Ended March 31, 2022
(Dollars in thousands)	Number of Contracts		Recorded Investment
Consumer loans:
Auto		1	$	11
Total consumer loans		1	$	11
Residential		20	$	900
Total TDRs		21	$	911