XML 46 R35.htm IDEA: XBRL DOCUMENT v3.24.3
Allowance for Credit Losses and Credit Quality of Loans (Tables)
 9 Months Ended
Sep. 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 June 30, 2024
  
$
46,708
    
$
47,918
    
$
25,874
    
$
120,500
  
Charge-offs
    
(1,117
)
    
(4,926
)
    
(34
)
    
(6,077
)
Recoveries
    
275
      
1,789
      
93
      
2,157
  
Provision
    
1,372
      
835
      
713
      
2,920
  
Ending balance as of September 30, 2024
  
$
47,238
    
$
45,616
    
$
26,646
    
$
119,500
  
                                 
Balance as of June 30, 2023
  
$
36,963
    
$
47,883
    
$
15,554
    
$
100,400
  
Allowance for credit loss on PCD acquired loans
     5,300       19       453       5,772  
Charge-offs
    
(138
)
    
(6,167
)
    
(16
)
    
(6,321
)
Recoveries
    
474
      
1,549
      
94
      
2,117
  
Provision
    
4,121
   
3,990
      
4,522
   
12,633
  
Ending balance as of September 30, 2023
  
$
46,720
    
$
47,274
    
$
20,607
    
$
114,601
  

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
    
Total
  
Balance as of December 31, 2023
 
$
45,903
    
$
46,427
    
$
22,070
    
$
114,400
  
Charge-offs
    
(2,401
)
    
(15,835
)
    
(148
)
    
(18,384
)
Recoveries
    
765
      
4,999
      
322
      
6,086
  
Provision
    
2,971
      
10,025
      
4,402
      
17,398
  
Ending balance as of September 30, 2024
  
$
47,238
    
$
45,616
    
$
26,646
    
$
119,500
  
                                 
Balance as of January 1, 2023 (after adoption of ASU 2022-02)
  
$
34,662
    
$
50,951
    
$
14,539
    
$
100,152
  
Allowance for credit loss on PCD acquired loans
     5,300       19       453       5,772  
Charge-offs
    
(514
)
    
(16,346
)
    
(460
)
    
(17,320
)
Recoveries
    
1,112
      
4,367
      
370
      
5,849
  
Provision
    
6,160
      
8,283
      
5,705
   
20,148
  
Ending balance as of September 30, 2023
  
$
46,720
    
$
47,274
    
$
20,607
    
$
114,601
  
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 September 30, 2024
                                          
Commercial loans:
                                          
C&I
  
$
2,485
    
$
97
    
$
-
    
$
2,582
    
$
2,452
    
$
1,455,471
    
$
1,460,505
  
CRE
    
5,439
      
133
      
-
      
5,572
      
18,009
      
3,595,502
      
3,619,083
  
Total commercial loans
  
$
7,924
    
$
230
    
$
-
    
$
8,154
    
$
20,461
    
$
5,050,973
    
$
5,079,588
  
Consumer loans:
                                                        
Auto
  
$
10,200
    
$
1,757
    
$
919
    
$
12,876
    
$
1,679
    
$
1,189,734
    
$
1,204,289
  
Residential solar
    2,973       1,837       1,284       6,094       190       833,375       839,659  
Other consumer
    
1,626
      
1,029
      
754
      
3,409
      
304
      
119,995
      
123,708
  
Total consumer loans
  
$
14,799
    
$
4,623
    
$
2,957
    
$
22,379
    
$
2,173
    
$
2,143,104
    
$
2,167,656
  
Residential
  
$
3,850
    
$
465
    
$
1,024
    
$
5,339
    
$
10,704
    
$
2,643,754
    
$
2,659,797
  
Total loans
  
$
26,573
    
$
5,318
    
$
3,981
    
$
35,872
    
$
33,338
    
$
9,837,831
    
$
9,907,041
  

(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 nine months ended September 30, 2024, the Company recorded $0.2 million in overdrawn deposit accounts reported as 2023 originations and $0.5 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 September 30, 2024
                                                      
C&I
                                                      
By internally assigned grade:
                                                      
Pass
  
$
205,707
    
$
185,044
    
$
210,068
    
$
193,872
    
$
128,275
    
$
106,919
    
$
354,396
    
$
1,006
    
$
1,385,287
  
Special mention
    
-
      
3,627
      
4,333
      
354
      
3,273
      
1,237
      
29,624
      
156
      
42,604
  
Substandard
    
1,574
      
3,590
      
2,234
      
1,465
      
210
      
5,108
      
18,208
      
107
      
32,496
  
Doubtful
    
-
      
86
      
2
      
30
      
-
      
-
      
-
      
-
      
118
  
Total C&I
  
$
207,281
    
$
192,347
    
$
216,637
    
$
195,721
    
$
131,758
    
$
113,264
    
$
402,228
    
$
1,269
    
$
1,460,505
  
Current-period gross charge-offs   $ -     $ (60 )   $ (970 )   $ (46 )   $ -     $ (1,325 )   $ -     $ -     $ (2,401 )
CRE
                                                                        
By internally assigned grade:
                                                                        
Pass
  
$
320,351
    
$
340,273
    
$
531,189
    
$
528,054
    
$
425,647
    
$
954,218
    
$
304,846
    
$
59,356
    
$
3,463,934
  
Special mention
    
1,086
      
5,838
      
13,492
      
5,873
      
5,137
      
18,463
      
2,156
      
1,135
      
53,180
  
Substandard
    
-
      
1,056
      
19,195
      
17,812
      
3,353
      
58,387
      
1,666
      
500
      
101,969
  
Total CRE
  
$
321,437
    
$
347,167
    
$
563,876
    
$
551,739
    
$
434,137
    
$
1,031,068
    
$
308,668
    
$
60,991
    
$
3,619,083
  
Current-period gross charge-offs   $ -     $ -     $ -     $ -     $ -   $ -     $ -     $ -     $ -
Auto
                                                                        
By payment activity:
                                                                        
Performing
  
$
428,158
    
$
356,542
    
$
267,785
    
$
104,174
    
$
24,059
    
$
20,973
    
$
-
    
$
-
    
$
1,201,691
  
Nonperforming
    
330
      
688
      
803
      
537
      
147
      
93
      
-
      
-
      
2,598
  
Total auto
  
$
428,488
    
$
357,230
    
$
268,588
    
$
104,711
    
$
24,206
    
$
21,066
    
$
-
    
$
-
    
$
1,204,289
  
Current-period gross charge-offs   $ (76 )   $ (1,047 )   $ (1,266 )   $ (692 )   $ (74 )   $ (292 )   $ -     $ -     $ (3,447 )
Residential solar
                                                                       
By payment activity:
                                                                        
Performing
  $
2,835
     $
126,251
    
 $
405,550
     $
169,484
     $
58,968
     $
75,097
     $
-
     $
-
     $
838,185
  
Nonperforming
    -
       28
       1,086
       120
       87
       153
       -
       -
       1,474
  
Total residential solar
  $
2,835
     $
126,279
     $
406,636
     $
169,604
     $
59,055
     $
75,250
     $
-
     $
-
     $
839,659
  
Current-period gross charge-offs
  $
-
     $
(441
 )
   $
(3,152
 )
   $
(582
 )
   $
(103
 )
   $
(561
 )
   $
-
     $
-
     $
(4,839
 )
Other consumer
                                                                        
By payment activity:
                                                                        
Performing
  
$
14,484
    
$
7,740
    
$
15,144
    
$
32,682
    
$
13,025
    
$
18,494
    
$
21,058
    
$
23
    
$
122,650
  
Nonperforming
    
-
      
39
      
239
      
419
      
116
      
224
      
1
      
20
      
1,058
  
Total other consumer
  
$
14,484
    
$
7,779
    
$
15,383
    
$
33,101
    
$
13,141
    
$
18,718
    
$
21,059
    
$
43
    
$
123,708
  
Current-period gross charge-offs
  $
(473 )   $ (311 )   $ (1,706 )   $ (3,493 )   $ (831 )   $ (735 )   $ -     $ -     $ (7,549 )
Residential
                                                                        
By payment activity:
                                                                        
Performing
  
$
141,624
    
$
221,221
    
$
369,507
    
$
432,012
    
$
252,908
    
$
956,789
    
$
258,040
    
$
15,968
    
$
2,648,069
  
Nonperforming
    
-
      
796
      
319
      
1,782
      
190
      
8,552
      
-
      
89
      
11,728
  
Total residential
  
$
141,624
    
$
222,017
    
$
369,826
    
$
433,794
    
$
253,098
    
$
965,341
    
$
258,040
    
$
16,057
    
$
2,659,797
  
Current-period gross charge-offs
  $
-     $ (34)     $ -   $ -     $ -     $ (114 )   $ -     $ -     $ (148 )
Total loans
  
$
1,116,149
    
$
1,252,819
    
$
1,840,946
    
$
1,488,670
    
$
915,395
    
$
2,224,707
    
$
989,995
    
$
78,360
    
$
9,907,041
  
Current-period gross charge-offs
  $
(549 )   $ (1,893 )   $ (7,094 )   $ (4,813 )   $ (1,008 )   $ (3,027 )   $ -     $ -      $ (18,384 )

(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 September 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
    
$
576
       0.022 %   $ 254       0.010 %
Total
    
$
576
             $ 254          

   
Three Months Ended September 30, 2023
  
   
Term Extension
  
Interest Rate
Reduction
  
(Dollars in thousands)
  
Amortized
Cost
  
% of Total Class
of Financing
Receivables
  
Amortized
Cost
  
% of Total Class
of Financing
Receivables
  
Residential
    
$
145
       0.006 %   $ 31       0.001 %
Total
    
$
145
             $ 31          

   
Nine Months Ended September 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
    
$
1,054
       0.040 %   $ 284       0.011 %
Total
    
$
1,054
             $ 284          

 
Nine Months Ended September 30, 2023
  
 
Term Extension
  
Interest Rate Reduction
  
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
  
Amortized
Cost
  
% of Total Class
of Financing
Receivables
  
Residential
  
$
386
      
0.015
%
  
$
31
      
0.001
%
  
$
165
      
0.006
%
Total
  
$
386
            
$
31
            
$
165
          
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 September 30, 2024
Loan Type
  
Term Extension
  
Interest Rate Reduction
Residential
  
Added a weighted-average 8.2 years to the life of loans, which reduced monthly payment amounts for the borrowers
  
Interest Rates were reduced by an average of 0.25%



      Three Months Ended September 30, 2023
Loan Type
  
Term Extension
  
Interest Rate Reduction
Residential
  
Added a weighted-average 17 years to the life of loans, which reduced monthly payment amounts for the borrowers
  
Interest Rates were reduced by an average of 1%



    Nine Months Ended September 30, 2024
Loan Type
  
Term Extension
  
Interest Rate Reduction
Residential
  
Added a weighted-average 6.5 years to the life of loans, which reduced monthly payment amounts for the borrowers
  
Interest Rates were reduced by an average of 0.6%


    Nine Months Ended September 30, 2023
Loan Type
  
Term Extension
  
Interest Rate Reduction
Residential
  
Added a weighted-average 15 years to the life of loans, which reduced monthly payment amounts for the borrowers
  
Interest Rates were reduced by an average of 2.25%
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 September 30, 2024
                        
Residential
  
$
1,232
    
$
-
    
$
-
    
$
163
  
Total
  
$
1,232
    
$
-
    
$
-
    
$
163