XML 40 R30.htm IDEA: XBRL DOCUMENT v3.23.2
Allowance for Credit Losses and Credit Quality of Loans (Tables)
 6 Months Ended
Jun. 30, 2023
Allowance for Credit Losses and Credit Quality of Loans [Abstract]  
Allowance for Loan Losses by Portfolio
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 March 31, 2023
  
$
36,040
    
$
48,820
    
$
15,390
    
$
100,250
  
Charge-offs
    
(207
)
    
(4,837
)
    
(105
)
    
(5,149
)
Recoveries
    
97
      
1,441
      
155
      
1,693
  
Provision
    
1,033
      
2,459
      
114
      
3,606
  
Ending balance as of June 30, 2023
  
$
36,963
    
$
47,883
    
$
15,554
    
$
100,400
  
                                 
Balance as of March 31, 2022
  
$
28,557
    
$
43,591
    
$
17,852
    
$
90,000
  
Charge-offs
    
(447
)
    
(3,509
)
    
(90
)
    
(4,046
)
Recoveries
    
837
      
2,117
      
302
      
3,256
  
Provision
    
3,411
      
2,741
      
(1,762
)
    
4,390
  
Ending balance as of June 30, 2022
  
$
32,358
    
$
44,940
    
$
16,302
    
$
93,600
  

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
    
Total
  
Balance as of January 1, 2023 (after adoption of ASU 2022-02)
  
$
34,662
    
$
50,951
    
$
14,539
    
$
100,152
  
Charge-offs
    
(376
)
    
(10,179
)
    
(444
)
    
(10,999
)
Recoveries
    
638
      
2,818
      
276
      
3,732
  
Provision
    
2,039
      
4,293
      
1,183
      
7,515
  
Ending balance as of June 30, 2023
  
$
36,963
    
$
47,883
    
$
15,554
    
$
100,400
  
                                 
Balance as of December 31, 2021
  
$
28,941
    
$
44,253
    
$
18,806
    
$
92,000
  
Charge-offs
    
(1,035
)
    
(7,100
)
    
(402
)
    
(8,537
)
Recoveries
    
930
      
3,769
      
452
      
5,151
  
Provision
    
3,522
      
4,018
      
(2,554
)
    
4,986
  
Ending balance as of June 30, 2022
  
$
32,358
    
$
44,940
    
$
16,302
    
$
93,600
  
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 June 30, 2023
                                          
Commercial loans:
                                          
C&I
  
$
377
    
$
132
    
$
44
    
$
553
    
$
3,228
    
$
1,307,131
    
$
1,310,912
  
CRE
    
2,123
      
14,012
      
-
      
16,135
      
4,917
      
2,737,038
      
2,758,090
  
Total commercial loans
  
$
2,500
    
$
14,144
    
$
44
    
$
16,688
    
$
8,145
    
$
4,044,169
    
$
4,069,002
  
Consumer loans:
                                                        
Auto
  
$
6,683
    
$
1,430
    
$
653
    
$
8,766
    
$
986
    
$
1,009,364
    
$
1,019,116
  
Residential solar
    2,384       778       306       3,468       194       922,703       926,365  
Other consumer
    
2,966
      
1,703
      
1,486
      
6,155
      
252
      
207,476
      
213,883
  
Total consumer loans
  
$
12,033
    
$
3,911
    
$
2,445
    
$
18,389
    
$
1,432
    
$
2,139,543
    
$
2,159,364
  
Residential
  
$
1,449
    
$
498
    
$
266
    
$
2,213
    
$
7,354
    
$
2,120,191
    
$
2,129,758
  
Total loans
  
$
15,982
    
$
18,553
    
$
2,755
    
$
37,290
    
$
16,931
    
$
8,303,903
    
$
8,358,124
  

(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 six months ended June 30, 2023. Included in other consumer gross charge-offs, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2022 originations and $0.2 million in overdrawn deposit accounts reported as 2023 originations, for the six months ended June 30, 2023.

(In thousands)
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Revolving
Loans
Amortized
Cost Basis
    
Revolving
Loans
Converted
to Term
    
Total
  
As of June 30, 2023
                                                      
C&I
                                                      
By internally assigned grade:
                                                      
Pass
  
$
129,726
    
$
284,195
    
$
226,716
    
$
143,819
    
$
77,298
    
$
56,009
    
$
338,877
    
$
9,668
    
$
1,266,308
  
Special mention
    
-
      
2,440
      
421
      
3,610
      
40
      
380
      
4,654
      
-
      
11,545
  
Substandard
    
869
      
1,772
      
733
      
587
      
2,452
      
1,819
      
22,502
      
2,188
      
32,922
  
Doubtful
    
-
      
1
      
67
      
50
      
4
      
15
      
-
      
-
      
137
  
Total C&I
  
$
130,595
    
$
288,408
    
$
227,937
    
$
148,066
    
$
79,794
    
$
58,223
    
$
366,033
    
$
11,856
    
$
1,310,912
  
Current-period gross charge-offs
  $
-     $
(1 )   $
(5 )   $
(63 )   $
-     $
(193 )   $
-     $
-     $
(262 )
CRE
                                                                        
By internally assigned grade:
                                                                        
Pass
  
$
144,348
    
$
382,793
    
$
449,149
    
$
412,649
    
$
313,179
    
$
698,047
    
$
229,150
    
$
15,550
    
$
2,644,865
  
Special mention
    
-
      
2,251
      
6,722
      
3,354
      
10,119
      
14,216
      
13,768
      
-
      
50,430
  
Substandard
    
309
      
193
      
6,896
      
5,623
      
3,170
      
45,057
      
1,547
      
-
      
62,795
  
Total CRE
  
$
144,657
    
$
385,237
    
$
462,767
    
$
421,626
    
$
326,468
    
$
757,320
    
$
244,465
    
$
15,550
    
$
2,758,090
  
Current-period gross charge-offs
  $
-     $
-     $
-     $
-     $
(114 )     -     $
-     $
-     $
(114 )
Auto
                                                                        
By payment activity:
                                                                        
Performing
  
$
249,677
    
$
418,275
    
$
193,855
    
$
56,852
    
$
69,477
    
$
29,327
    
$
14
    
$
-
    
$
1,017,477
  
Nonperforming
    
-
      
367
      
765
      
196
      
150
      
161
      
-
      
-
      
1,639
  
Total auto
  
$
249,677
    
$
418,642
    
$
194,620
    
$
57,048
    
$
69,627
    
$
29,488
    
$
14
    
$
-
    
$
1,019,116
  
Current-period gross charge-offs
  $
(30 )   $
(525 )   $
(516 )   $
(204 )   $
(165 )   $
(130 )   $
-     $
-     $
(1,570 )
Residential solar
                                                                       
By Internally Assigned Grade:
                                                                       
Performing
  $
129,390     $
447,725    
 $
185,410     $
69,994     $
50,419     $
42,927     $
-     $
-     $
925,865  
Nonperforming
    -       299       81       -       71       49       -       -       500  
Total residential solar
  $
129,390     $
448,024     $
185,491     $
69,994     $
50,490     $
42,976     $
-     $
-     $
926,365  
Current-period gross charge-offs
  $
-     $
(578 )   $
(428 )   $
(45 )   $
(164 )   $
(139 )   $
-     $
-     $
(1,354 )
Other consumer
                                                                        
By payment activity:
                                                                        
Performing
  
$
7,876
    
$
36,057
    
$
81,241
    
$
27,518
    
$
20,021
    
$
21,995
    
$
17,423
    
$
14
    
$
212,145
  
Nonperforming
    
-
      
414
      
909
      
93
      
84
      
204
      
5
      
29
      
1,738
  
Total other consumer
  
$
7,876
    
$
36,471
    
$
82,150
    
$
27,611
    
$
20,105
    
$
22,199
    
$
17,428
    
$
43
    
$
213,883
  
Current-period gross charge-offs
  $
(223 )   $
(1,818 )   $
(3,700 )   $ (834 )   $
(487 )   $
(193 )   $
-     $
-     $ (7,255 )
Residential
                                                                        
By payment activity:
                                                                        
Performing
  
$
87,959
    
$
264,222
    
$
344,895
    
$
205,768
    
$
151,242
    
$
822,754
    
$
226,997
    
$
18,301
    
$
2,122,138
  
Nonperforming
    
29
      
432
      
237
      
329
      
466
      
6,127
      
-
      
-
      
7,620
  
Total residential
  
$
87,988
    
$
264,654
    
$
345,132
    
$
206,097
    
$
151,708
    
$
828,881
    
$
226,997
    
$
18,301
    
$
2,129,758
  
Current-period gross charge-offs
  $
-     $
-     $
(82 )   $
-     $
-     $
(362 )   $
-     $
-     $
(444 )
Total loans
  
$
750,183
    
$
1,841,436
    
$
1,498,097
    
$
930,442
    
$
698,192
    
$
1,739,087
    
$
854,937
    
$
45,750
    
$
8,358,124
  
Current-period gross charge-offs
  $
(253 )   $
(2,922 )   $
(4,731 )   $
(1,146 )   $
(930 )   $
(1,017 )   $
-     $
-      $ (10,999 )

(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 June 30, 2023
   
Term Extension
  
Combination - Term Extension
and Interest Rate Reduction
(Dollars in thousands)
  
Amortized Cost
    
% of Total Class
of Financing
Receivables
   Amortized Cost    
% of Total Class
of Financing
Receivables
Residential
  
$
199
      
0.009
%
   $ 171       0.008 %
Total
  
$
199
             $ 171          


   
Six Months Ended June 30, 2023
   
Term Extension
  
Combination - Term Extension
and Interest Rate Reduction
(Dollars in thousands)
  
Amortized Cost
    
% of Total Class
of Financing
Receivables
   Amortized Cost    
% of Total Class
of Financing
Receivables
Residential
  
$
242
       0.011 %   $ 171       0.008 %
Total
  
$
242
             $ 171          
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 June 30, 2023
Loan Type
  
Term Extension
  
Interest Rate Reduction
Residential
  
Added a weighted-average 10 years to the
life of loans, which reduced monthly
payment amounts for the borrowers.
  
Interest rates were reduced by an
average of three and a half percent


    Six Months Ended June 30, 2023
Loan Type
  
Term Extension
  
Interest Rate Reduction
Residential
  
Added a weighted-average 14 years to the
life of loans, which reduced monthly payment
amounts for the borrowers.
  
Interest rates were reduced by an
average of three and a half percent
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
  
Three Months Ended June 30, 2023
                        
Loan Type
                        
Residential
  
$
370
    
$
-
    
$
-
    
$
-
  
Total
  
$
370
    
$
-
    
$
-
    
$
-
  


   
Payment Status (Amortized Cost Basis)
  
(In thousands)
  
Current
    
31-60 Days
Past Due
    
61-90 Days
Past Due
    
Greater than 90
Days Past Due
  
Six Months Ended June 30, 2023
                        
Loan Type
                        
Residential
  
$
413
    
$
-
    
$
-
    
$
-
  
Total
  
$
413
    
$
-
    
$
-
    
$
-
  
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 June 30, 2022
     Six Months Ended June 30, 2022  
(Dollars in thousands)
  
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
  
Residential
    
2
    
$
98
    
$
123
       4     $ 216     $ 247  
Total TDRs
    
2
    
$
98
    
$
123
       4     $ 216     $ 247  

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
June 30, 2022
    
Six Months Ended
June 30, 2022
  
(Dollars in thousands)
  
Number of
Contracts
    
Recorded
Investment
    
Number of
Contracts
    
Recorded
Investment
  
Consumer loans:                        
Auto
     -     $ -       1     $ 11  
Total consumer loans
     -     $ -       1     $ 11  
Residential
    
18
    
$
890
       34     $ 1,714  
Total TDRs
    
18
    
$
890
       35     $ 1,725