XML 44 R33.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Allowance for Credit Losses and Credit Quality of Loans (Tables)
 6 Months Ended
Jun. 30, 2024
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, 2024
  
$
44,472
    
$
47,419
    
$
23,409
    
$
115,300
  
Charge-offs
    
(299
)
    
(5,328
)
    
-
   
(5,627
)
Recoveries
    
292
      
1,559
      
77
      
1,928
  
Provision
    
2,243
      
4,268
      
2,388
      
8,899
  
Ending balance as of June 30, 2024
  
$
46,708
    
$
47,918
    
$
25,874
    
$
120,500
  
                                 
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
  

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
    
Total
  
Balance as of December 31, 2023
 
$
45,903
    
$
46,427
    
$
22,070
    
$
114,400
  
Charge-offs
    
(1,284
)
    
(10,909
)
    
(114
)
    
(12,307
)
Recoveries
    
490
      
3,210
      
229
      
3,929
  
Provision
    
1,599
      
9,190
      
3,689
      
14,478
  
Ending balance as of June 30, 2024
  
$
46,708
    
$
47,918
    
$
25,874
    
$
120,500
  
                                 
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
  
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, 2024
                                          
Commercial loans:
                                          
C&I
  
$
929
    
$
1,149
    
$
12
    
$
2,090
    
$
2,586
    
$
1,454,003
    
$
1,458,679
  
CRE
    
790
      
238
      
-
      
1,028
      
18,357
      
3,534,517
      
3,553,902
  
Total commercial loans
  
$
1,719
    
$
1,387
    
$
12
    
$
3,118
    
$
20,943
    
$
4,988,520
    
$
5,012,581
  
Consumer loans:
                                                        
Auto
  
$
9,653
    
$
1,735
    
$
995
    
$
12,383
    
$
2,079
    
$
1,179,800
    
$
1,194,262
  
Residential solar
    4,038       1,356       1,043       6,437       122       855,324       861,883  
Other consumer
    
1,523
      
960
      
787
      
3,270
      
259
      
134,602
      
138,131
  
Total consumer loans
  
$
15,214
    
$
4,051
    
$
2,825
    
$
22,090
    
$
2,460
    
$
2,169,726
    
$
2,194,276
  
Residential
  
$
3,312
    
$
903
    
$
496
    
$
4,711
    
$
11,352
    
$
2,631,427
    
$
2,647,490
  
Total loans
  
$
20,245
    
$
6,341
    
$
3,333
    
$
29,919
    
$
34,755
    
$
9,789,673
    
$
9,854,347
  

(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, 2023
                                          
Commercial loans:
                                          
C&I
  
$
414
    
$
33
    
$
1
    
$
448
    
$
3,441
    
$
1,393,616
    
$
1,397,505
  
CRE
    
803
      
835
      
-
      
1,638
      
18,126
      
3,413,984
      
3,433,748
  
Total commercial loans
  
$
1,217
    
$
868
    
$
1
    
$
2,086
    
$
21,567
    
$
4,807,600
    
$
4,831,253
  
Consumer loans:
                                                        
Auto
  
$
10,115
    
$
2,011
    
$
1,067
    
$
13,193
    
$
2,106
    
$
1,084,143
    
$
1,099,442
  
Residential solar     3,074       1,301       915       5,290       245       912,220       917,755  
Other consumer
    
2,343
      
1,811
      
1,124
      
5,278
      
215
      
164,867
      
170,360
  
Total consumer loans
  
$
15,532
    
$
5,123
    
$
3,106
    
$
23,761
    
$
2,566
    
$
2,161,230
    
$
2,187,557
  
Residential
  
$
3,836
    
$
399
    
$
554
    
$
4,789
    
$
10,080
    
$
2,617,034
    
$
2,631,903
  
Total loans
  
$
20,585
    
$
6,390
    
$
3,661
    
$
30,636
    
$
34,213
    
$
9,585,864
    
$
9,650,713
  
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 includes gross charge-offs by loan class by vintage. Included in other consumer gross charge-offs for the six months ended June 30, 2024, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2023 originations and $0.2 million in overdrawn deposit accounts reported as 2024 originations. Included in other consumer gross charge-offs for the year ended December 31, 2023, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2022 originations and $0.8 million in overdrawn deposit accounts reported as 2023 originations.

(In thousands)
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Revolving
Loans
Amortized
Cost Basis
    
Revolving
Loans
Converted
to Term
    
Total
  
As of June 30, 2024
                                                      
C&I
                                                      
By internally assigned grade:
                                                      
Pass
  
$
149,845
    
$
199,272
    
$
219,561
    
$
207,165
    
$
136,993
    
$
115,577
    
$
338,577
    
$
13,847
    
$
1,380,837
  
Special mention
    
557
      
4,909
      
5,531
      
434
      
4,003
      
1,892
      
25,194
      
370
      
42,890
  
Substandard
    
332
      
3,800
      
2,295
      
1,631
      
250
      
5,997
      
20,381
      
137
      
34,823
  
Doubtful
    
-
      
99
      
1
      
19
      
-
      
10
      
-
      
-
      
129
  
Total C&I
  
$
150,734
    
$
208,080
    
$
227,388
    
$
209,249
    
$
141,246
    
$
123,476
    
$
384,152
    
$
14,354
    
$
1,458,679
  
Current-period gross charge-offs   $ -     $ (58 )   $ (915 )   $ (4 )   $ -     $ (307 )   $ -     $ -     $ (1,284 )
CRE
                                                                        
By internally assigned grade:
                                                                        
Pass
  
$
231,892
    
$
358,866
    
$
492,938
    
$
523,952
    
$
432,230
    
$
975,497
    
$
311,534
    
$
54,559
    
$
3,381,468
  
Special mention
    
947
      
9,375
      
10,017
      
7,754
      
4,035
      
31,354
      
4,288
      
-
      
67,770
  
Substandard
    
-
      
2,163
      
18,890
      
17,926
      
3,290
      
61,121
      
1,274
      
-
      
104,664
  
Total CRE
  
$
232,839
    
$
370,404
    
$
521,845
    
$
549,632
    
$
439,555
    
$
1,067,972
    
$
317,096
    
$
54,559
    
$
3,553,902
  
Current-period gross charge-offs   $ -     $ -     $ -     $ -     $ -   $ -     $ -     $ -     $ -
Auto
                                                                        
By payment activity:
                                                                        
Performing
  
$
318,277
    
$
392,472
    
$
299,349
    
$
120,481
    
$
29,789
    
$
30,820
    
$
-
    
$
-
    
$
1,191,188
  
Nonperforming
    
151
      
1,004
      
847
      
732
      
158
      
182
      
-
      
-
      
3,074
  
Total auto
  
$
318,428
    
$
393,476
    
$
300,196
    
$
121,213
    
$
29,947
    
$
31,002
    
$
-
    
$
-
    
$
1,194,262
  
Current-period gross charge-offs   $ (21 )   $ (591 )   $ (913 )   $ (499 )   $ (35 )   $ (225 )   $ -     $ -     $ (2,284 )
Residential solar
                                                                       
By payment activity:
                                                                        
Performing
  $
1,803
     $
132,249
    
 $
413,160
     $
173,286
     $
61,333
     $
78,887
     $
-
     $
-
     $
860,718
  
Nonperforming
    -
       123
       742
       160
       60
       80
       -
       -
       1,165
  
Total residential solar
  $
1,803
     $
132,372
     $
413,902
     $
173,446
     $
61,393
     $
78,967
     $
-
     $
-
     $
861,883
  
Current-period gross charge-offs
  $
-
     $
(143
 )
   $
(2,036
 )
   $
(251
 )
   $
(34
 )
   $
(492
 )
   $
-
     $
-
     $
(2,956
 )
Other consumer
                                                                        
By payment activity:
                                                                        
Performing
  
$
10,904
    
$
9,020
    
$
18,664
    
$
39,443
    
$
15,264
    
$
21,743
    
$
22,044
    
$
3
    
$
137,085
  
Nonperforming
    
-
      
12
      
127
      
422
      
167
      
297
      
13
      
8
      
1,046
  
Total other consumer
  
$
10,904
    
$
9,032
    
$
18,791
    
$
39,865
    
$
15,431
    
$
22,040
    
$
22,057
    
$
11
    
$
138,131
  
Current-period gross charge-offs
  $
(191 )   $ (270 )   $ (1,383 )   $ (2,749 )   $ (574 )   $ (502 )   $ -     $ -     $ (5,669 )
Residential
                                                                        
By payment activity:
                                                                        
Performing
  
$
86,396
    
$
250,760
    
$
335,011
    
$
442,457
    
$
258,291
    
$
989,436
    
$
253,709
    
$
19,582
    
$
2,635,642
  
Nonperforming
    
-
      
832
      
866
      
1,923
      
293
      
7,905
      
29
      
-
      
11,848
  
Total residential
  
$
86,396
    
$
251,592
    
$
335,877
    
$
444,380
    
$
258,584
    
$
997,341
    
$
253,738
    
$
19,582
    
$
2,647,490
  
Current-period gross charge-offs
  $
-     $ -     $ -   $ -     $ -     $ (114 )   $ -     $ -     $ (114 )
Total loans
  
$
801,104
    
$
1,364,956
    
$
1,817,999
    
$
1,537,785
    
$
946,156
    
$
2,320,798
    
$
977,043
    
$
88,506
    
$
9,854,347
  
Current-period gross charge-offs
  $
(212 )   $ (1,062 )   $ (5,247 )   $ (3,503 )   $ (643 )   $ (1,640 )   $ -     $ -      $ (12,307 )

(In thousands)
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Revolving
Loans
Amortized
Cost Basis
    
Revolving
Loans
Converted
to Term
    
Total
  
As of December 31, 2023
                                                      
C&I
                                                      
By internally assigned grade:
                                                      
Pass
  
$
229,249
    
$
270,796
    
$
241,993
    
$
158,051
    
$
74,469
    
$
63,826
    
$
299,248
    
$
2,923
    
$
1,340,555
  
Special mention
    
420
      
1,672
      
277
      
3,524
      
87
      
1,854
      
19,489
      
-
      
27,323
  
Substandard
    
1,496
      
2,461
      
1,609
      
282
      
2,266
      
5,632
      
14,266
      
1,607
      
29,619
  
Doubtful
    
-
      
1
      
2
      
-
      
4
      
1
      
-
      
-
      
8
  
Total C&I
  
$
231,165
    
$
274,930
    
$
243,881
    
$
161,857
    
$
76,826
    
$
71,313
    
$
333,003
    
$
4,530
    
$
1,397,505
  
Current-period gross charge-offs   $ (24 )   $ (3,021 )   $ (5 )   $ (86 )   $ -     $ (600 )   $ -     $ -     $ (3,736 )
CRE
                                                                        
By internally assigned grade:
                                                                        
Pass
  
$
353,161
    
$
518,201
    
$
561,897
    
$
452,110
    
$
327,804
    
$
739,189
    
$
294,039
    
$
33,705
    
$
3,280,106
  
Special mention
    
3,577
      
4,472
      
10,711
      
7,055
      
9,967
      
39,460
      
2,970
      
-
      
78,212
  
Substandard
    
370
      
731
      
21,807
      
1,146
      
2,996
      
37,418
      
10,962
      
-
      
75,430
  
Total CRE
  
$
357,108
    
$
523,404
    
$
594,415
    
$
460,311
    
$
340,767
    
$
816,067
    
$
307,971
    
$
33,705
    
$
3,433,748
  
Current-period gross charge-offs   $ -     $ -     $ -     $ -     $ (114 )   $ (304 )   $ -     $ -     $ (418 )
Auto
                                                                        
By payment activity:
                                                                        
Performing
  
$
474,369
    
$
363,516
    
$
157,251
    
$
42,644
    
$
45,406
    
$
13,071
    
$
12
    
$
-
    
$
1,096,269
  
Nonperforming
    
532
      
1,241
      
830
      
190
      
306
      
74
      
-
      
-
      
3,173
  
Total auto
  
$
474,901
    
$
364,757
    
$
158,081
    
$
42,834
    
$
45,712
    
$
13,145
    
$
12
    
$
-
    
$
1,099,442
  
Current-period gross charge-offs   $ (102 )   $ (1,183 )   $ (1,066 )   $ (340 )   $ (301 )   $ (295 )   $ -     $ -     $ (3,287 )
Residential solar                                                                        
By payment activity:
                                                                       
Performing
  $ 155,425
     $ 430,855
     $ 178,839
     $ 65,382
     $ 46,554
     $ 39,540
     $ -
     $ -
     $ 916,595
  
Nonperforming
    -
       837
       205
       18
       47
       53
       -
       -
       1,160
  
Total residential solar
  $ 155,425
     $ 431,692
     $ 179,044
     $ 65,400
     $ 46,601
     $ 39,593
     $ -
     $ -
     $ 917,755
  
Current-period gross charge-offs   $ (150
 )
   $ (1,930
 )
   $ (923
 )
   $ (45
 )
   $ (558
 )
   $ (345
 )
   $ -
     $ -
     $ (3,951
 )
Other consumer
                                                                        
By payment activity:
                                                                        
Performing
  
$
13,089
    
$
27,394
    
$
57,876
    
$
21,087
    
$
14,548
    
$
15,964
    
$
19,042
    
$
21
    
$
169,021
  
Nonperforming
    
-
      
244
      
685
      
144
      
56
      
161
      
4
      
45
      
1,339
  
Total other consumer
  
$
13,089
    
$
27,638
    
$
58,561
    
$
21,231
    
$
14,604
    
$
16,125
    
$
19,046
    
$
66
    
$
170,360
  
Current-period gross charge-offs   $ (885 )   $ (3,744 )   $ (7,511 )   $ (1,329 )   $ (832 )   $ (568 )   $ -     $ -     $ (14,869 )
Residential
                                                                        
By payment activity:
                                                                        
Performing
  
$
212,799
    
$
366,860
    
$
453,206
    
$
267,845
    
$
167,860
    
$
876,563
    
$
260,836
    
$
15,300
    
$
2,621,269
  
Nonperforming
    
134
      
430
      
1,121
      
385
      
591
      
7,460
      
-
      
513
      
10,634
  
Total residential
  
$
212,933
    
$
367,290
    
$
454,327
    
$
268,230
    
$
168,451
    
$
884,023
    
$
260,836
    
$
15,813
    
$
2,631,903
  
Current-period gross charge-offs   $ -     $ -     $ (81 )   $ (30 )   $ -     $ (406 )   $ -     $ -     $ (517 )
Total loans
  
$
1,444,621
    
$
1,989,711
    
$
1,688,309
    
$
1,019,863
    
$
692,961
    
$
1,840,266
    
$
920,868
    
$
54,114
    
$
9,650,713
  
Current-period gross charge-offs   $ (1,161 )   $ (9,878 )   $ (9,586 )   $ (1,830 )   $ (1,805 )   $ (2,518 )   $ -     $ -     $ (26,778 )
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, 2024
  
   
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
    
$
184
       0.007 %   $ 30       0.001 %
Total
    
$
184
             $ 30          

   
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, 2024
  
   
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
    
$
478
       0.018 %   $ 30       0.001 %
Total
    
$
478
             $ 30          

   
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, 2024
Loan Type
  
Term Extension
  
Interest Rate Reduction
Residential
  
Added a weighted-average 5.3 years to the
life of loans, which reduced monthly
payment amounts for the borrowers
  
Interest Rates were reduced by an
average of one percent



      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, 2024
Loan Type
  
Term Extension
  
Interest Rate Reduction
Residential
  
Added a weighted-average 6.3 years to the
life of loans, which reduced monthly
payment amounts for the borrowers
  
Interest Rates were reduced by an
average of one 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
Financing Receivables with Payment Default that were Modified to Borrowers Experiencing Financial Difficulty
The following table depicts the financing receivables that had a payment default that were modified to borrowers experiencing financial difficulty in the previous 12 months:

   
Three and Six Months Ended
  
     June 30, 2024  
 
(In thousands)
  
Amortized Cost Basis of
Modified Financing Receivables
that Subsequently Defaulted
  
 
Term Extension
  
Residential
    
$
171
  
Total
    
$
171
  
Performance of Modified Loans

The following table depicts the performance of loans that have been modified to borrowers experiencing financial difficulty that were modified in the prior twelve months:



   
Payment Status (Amortized Cost Basis)
  
(In thousands)
  
Current
    
31-60 Days
Past Due
    
61-90 Days
Past Due
    
Greater than 90
Days Past Due
  
As of June 30, 2024
                        
Residential
  
$
567
    
$
120
    
$
-
    
$
78
  
Total
  
$
567
    
$
120
    
$
-
    
$
78