
(Dollars in thousands)	December 31, 2022		December 31, 2021
Residential real estate	$	1,446,008	1,051,883
Commercial real estate	9,797,047		8,630,831
Other commercial	2,799,668		2,664,190
Home equity	822,232		736,288
Other consumer	381,857		348,839
Loans receivable	15,246,812		13,432,031
Allowance for credit losses	(182,283)		(172,665)
Loans receivable, net	$	15,064,529	13,259,366
Net deferred origination (fees) costs included in loans receivable	$	(25,882)	(21,667)
Net purchase accounting (discounts) premiums included in loans receivable	$	(17,832)	(25,166)
Accrued interest receivable on loans	$	54,971	49,133

Substantially all of the Company’s loans receivable are with borrowers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of borrowers’ ability to service their obligations is dependent upon the economic performance in the Company’s market areas.

At December 31, 2022, the Company had loans of $10,520,643,000 pledged as collateral for FHLB advances and FRB discount window. The Company is subject to regulatory limits for the amount of loans to any individual borrower and the Company is in compliance with this regulation as of December 31, 2022 and 2021. No borrower had outstanding loans or commitments exceeding 10 percent of the Company’s consolidated stockholders’ equity as of December 31, 2022.

The Company has entered into transactions with its executive officers and directors and their affiliates. The aggregate amount of loans outstanding to such related parties at December 31, 2022 and 2021 was $101,637,000 and $125,034,000, respectively. During 2022, transactions included new loans to such related parties of $21,710,000, repayments of $9,919,000, and further reduced by $35,188,000 due to change in related parties. In management’s opinion, such loans were made in the ordinary course of business and were made on substantially the same terms as those prevailing at the time for comparable transaction with other persons.


	Year ended December 31, 2022
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	172,665	16,458	117,901	24,703	8,566	5,037


Provision for credit losses	17,433		3,162	7,231	(704)	1,943	5,801
Charge-offs	(14,970)		(17)	(2,171)	(4,201)	(85)	(8,496)
Recoveries	7,155		80	2,855	1,656	335	2,229
Balance at end of period	$	182,283	19,683	125,816	21,454	10,759	4,571


	Year ended December 31, 2021
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	158,243	9,604	86,999	49,133	8,182	4,325

Acquisitions	371		—	309	62	—	—
Provision for credit losses	16,380		6,517	28,996	(23,444)	186	4,125
Charge-offs	(11,594)		(38)	(279)	(4,826)	(45)	(6,406)
Recoveries	9,265		375	1,876	3,778	243	2,993
Balance at end of period	$	172,665	16,458	117,901	24,703	8,566	5,037


	Year ended December 31, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	124,490	10,111	69,496	36,129	4,937	3,817
Impact of adopting CECL	3,720		3,584	10,533	(13,759)	3,400	(38)
Acquisitions	49		—	49	—	—	—
Provision for credit losses	37,637		(4,131)	9,324	29,812	(27)	2,659
Charge-offs	(13,808)		(21)	(3,497)	(4,860)	(384)	(5,046)
Recoveries	6,155		61	1,094	1,811	256	2,933
Balance at end of period	$	158,243	9,604	86,999	49,133	8,182	4,325

As a result of the adoption of the current expected credit losses (“CECL”) accounting standard, the Company adjusted the January 1, 2020 ACL balances within each loan segment to reflect the changes from the incurred loss model to the current expected credit loss model which resulted in increases and decreases in each loan segment based on, among other factors, quantitative and qualitative assumptions and the economic forecast to estimate the provision for credit losses over the expected life of the loans. During the year ended December 31, 2022, the ACL increased primarily as a result of organic loan growth. During the year ended December 31, 2021, the ACL increased primarily as a result of the $18,056,000 provision for credit losses recorded as a result of the Alta acquisition. During the year ended December 31, 2020, primarily as a result of the COVID-19 pandemic, there was a significant increase in the overall ACL and increases and decreases within certain loan segments. In addition, during 2020 the acquisition of SBAZ resulted in a $4,794,000 increase in the ACL due to the provision for credit losses recorded subsequent to the acquisition date.

The sizeable charge-offs in the other consumer loan segment is driven by deposit overdraft charge-offs which typically experience high charge-off rates and the amounts were comparable to historical trends. The other segments experience routine charge-offs and recoveries, with occasional large credit relationships charge-offs and recoveries that cause fluctuations from prior periods. During the year ended December 31, 2022, there have been no significant changes to the types of collateral securing collateral-dependent loans.

During the year ended December 31, 2021, the Company acquired loans through the Alta acquisition. Such loans were evaluated at acquisition date and it was determined there were PCD loans totaling $58,576,000 with an ACL of $371,000. There was also a premium associated with such loans of $840,000, which was attributable to changes in interest rates and other factors such as liquidity as of acquisition date.

During the year ended December 31, 2020, the Company acquired loans through the SBAZ acquisition. Such loans were evaluated at acquisition date and it was determined there were PCD loans totaling $3,401,000 with an ACL of $49,000. There was also a discount associated with such loans of $13,000, which was attributable to changes in interest rates and other factors such as liquidity as of acquisition date.


	December 31, 2022
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	16,331	2,796	5,462	4,192	754	3,127
Accruing loans 60-89 days past due	4,636		142	2,865	297	529	803
Accruing loans 90 days or more past due	1,559		215	472	542	138	192
Non-accrual loans with no ACL	31,036		2,236	22,943	3,790	1,234	833
Non-accrual loans with ACL	115		—	—	56	—	59
Total past due and non-accrual loans	53,677		5,389	31,742	8,877	2,655	5,014
Current loans receivable	15,193,135		1,440,619	9,765,305	2,790,791	819,577	376,843
Total loans receivable	$	15,246,812	1,446,008	9,797,047	2,799,668	822,232	381,857


	December 31, 2021
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	38,081	2,132	26,063	5,464	1,582	2,840
Accruing loans 60-89 days past due	12,485		457	9,537	1,652	512	327
Accruing loans 90 days or more past due	17,141		223	15,345	1,383	57	133
Non-accrual loans with no ACL	28,961		2,162	20,040	4,563	1,712	484
Non-accrual loans with ACL	21,571		255	448	20,765	99	4
Total past due and non-accrual loans	118,239		5,229	71,433	33,827	3,962	3,788
Current loans receivable	13,313,792		1,046,654	8,559,398	2,630,363	732,326	345,051
Total loans receivable	$	13,432,031	1,051,883	8,630,831	2,664,190	736,288	348,839

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The collateral on the loans is a significant portion of what secures the collateral-dependent loans and significant changes to the fair value of the collateral can impact the ACL. During 2022, there were no significant changes to collateral which secures the collateral-dependent loans, whether due to general deterioration or other reasons. The following table presents the amortized cost basis of collateral-dependent loans by collateral type:


	December 31, 2022
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Business assets	$	3,172	—	32	3,140	—	—
Residential real estate	5,061		2,407	990	318	1,201	145
Other real estate	33,125		49	32,333	300	75	368
Other	1,155		—	—	530	—	625
Total	$	42,513	2,456	33,355	4,288	1,276	1,138


	December 31, 2021
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Business assets	$	25,182	—	57	25,125	—	—
Residential real estate	4,625		2,369	280	115	1,694	167
Other real estate	32,093		48	30,996	597	116	336
Other	1,525		—	—	1,241	—	284
Total	$	63,425	2,417	31,333	27,078	1,810	787

A restructured loan is considered a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. There were no TDRs that occurred during the years ended December 31, 2022, and December 31, 2021, respectively, that subsequently defaulted. The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented:


	Year ended December 31, 2022
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	11		1	4	6	—	—
Pre-modification recorded balance	$	5,616	31	4,266	1,319	—	—
Post-modification recorded balance	$	6,346	31	4,862	1,453	—	—


	Year ended December 31, 2021
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	12		1	5	3	1	2
Pre-modification recorded balance	$	2,442	210	1,473	554	54	151
Post-modification recorded balance	$	2,442	210	1,473	554	54	151


	Year ended December 31, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	16		1	10	4	1	—
Pre-modification recorded balance	$	14,945	210	13,392	1,304	39	—
Post-modification recorded balance	$	14,945	210	13,392	1,304	39	—
TDRs that subsequently defaulted
Number of loans	1		—	1	—	—	—
Recorded balance	$	145	—	145	—	—	—

The modifications for the loans designated as TDRs during the years ended December 31, 2022, 2021 and 2020 included one or a combination of the following: an extension of the maturity date, a reduction of the interest rate or a reduction in the principal amount.

In addition to the loans designated as TDRs during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $1,253,000, $1,628,000 and $2,278,000 for the years ended December 31, 2022, 2021 and 2020, respectively, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs were in other commercial loan segment for the years ended December 31, 2022 and December 31, 2021, and commercial real estate loan segment for the year ended December 31, 2020. At December 31, 2022 and 2021, the Company had $270,000 and $102,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At December 31, 2022 and 2021, the Company had no OREO secured by residential real estate properties.

There were $437,000 and $1,054,000 of additional unfunded commitments on TDRs outstanding at December 31, 2022 and 2021, respectively. The amount of charge-offs on TDRs during 2022, 2021 and 2020 was $0, $0 and $453,000, respectively.

The Company categorizes commercial real estate and other commercial loans into risk categories based on relevant information about the ability of borrowers to service their obligations. The following tables present the amortized cost in commercial real estate and other commercial loans based on the Company’s internal risk rating. The date of a modification, renewal or extension of a loan is considered for the year of origination if the terms of the loan are as favorable to the Company as the terms are for a comparable loan to other borrowers with similar credit risk.


	December 31, 2022
(Dollars in thousands)	Total		Pass	Special Mention	Substandard	Doubtful/ Loss
Commercial real estate loans
Term loans by origination year
2022	$	2,584,831	2,578,558	—	6,273	—
2021	2,457,790		2,454,696	—	3,094	—
2020	1,274,852		1,269,254	—	5,598	—
2019	744,634		709,246	—	35,388	—
2018	658,268		634,316	—	23,952	—
Prior	1,851,965		1,787,941	1,416	62,576	32
Revolving loans	224,707		224,629	—	78	—

Total	$	9,797,047	9,658,640	1,416	136,959	32
Other commercial loans 1
Term loans by origination year
2022	$	603,393	599,498	371	3,469	55
2021	573,273		569,542	—	2,707	1,024
2020	308,555		304,179	—	4,373	3
2019	191,498		185,748	—	5,748	2
2018	140,122		135,727	—	4,394	1
Prior	404,319		398,523	114	5,322	360
Revolving loans	578,508		567,770	—	10,604	134

Total	$	2,799,668	2,760,987	485	36,617	1,579

______________________________


	December 31, 2021
(Dollars in thousands)	Total		Pass	Special Mention	Substandard	Doubtful/ Loss
Commercial real estate loans
Term loans by origination year
2021	$	2,679,564	2,677,540	—	2,024	—
2020	1,512,845		1,499,895	—	12,950	—
2019	952,039		919,091	—	32,948	—
2018	808,275		788,292	—	19,983	—
2017	665,733		624,018	—	41,715	—
Prior	1,677,875		1,621,819	—	56,030	26
Revolving loans	334,500		332,696	—	1,803	1

Total	$	8,630,831	8,463,351	—	167,453	27
Other commercial loans 1
Term loans by origination year
2021	$	751,151	746,709	—	4,442	—
2020	429,500		420,547	—	8,952	1
2019	235,591		226,614	—	8,974	3
2018	188,009		179,679	—	8,329	1
2017	209,287		207,509	—	1,775	3
Prior	312,852		297,926	—	14,275	651
Revolving loans	537,800		507,258	—	30,526	16

Total	$	2,664,190	2,586,242	—	77,273	675

For residential real estate, home equity and other consumer loan segments, the Company evaluates credit quality primarily on the aging status of the loan. The following tables present the amortized cost in residential real estate, home equity and other consumer loans based on payment performance:


	December 31, 2022
(Dollars in thousands)	Total		Performing	30-89 Days Past Due	Non-Accrual and 90 Days or More Past Due
Residential real estate loans
Term loans by origination year
2022	$	543,469	543,023	446	—
2021	552,748		551,756	992	—
2020	116,810		116,543	136	131
2019	45,055		44,604	451	—
2018	37,252		36,993	—	259
Prior	149,292		146,318	913	2,061
Revolving loans	1,382		1,382	—	—

Total	$	1,446,008	1,440,619	2,938	2,451
Home equity loans
Term loans by origination year
2022	$	60	60	—	—
2021	77		77	—	—
2020	82		82	—	—
2019	225		195	—	30
2018	594		594	—	—
Prior	7,165		6,868	131	166
Revolving loans	814,029		811,701	1,152	1,176

Total	$	822,232	819,577	1,283	1,372
Other consumer loans
Term loans by origination year
2022	$	152,685	149,702	2,825	158
2021	94,210		93,749	421	40
2020	49,257		48,990	212	55
2019	20,432		20,166	96	170
2018	10,598		9,970	91	537
Prior	16,014		15,786	106	122
Revolving loans	38,661		38,480	179	2

Total	$	381,857	376,843	3,930	1,084