
(Dollars in thousands)	March 31, 2023		December 31, 2022
Residential real estate	$	1,508,403	1,446,008
Commercial real estate	9,992,019		9,797,047
Other commercial	2,804,104		2,799,668
Home equity	829,844		822,232
Other consumer	384,242		381,857
Loans receivable	15,518,612		15,246,812
Allowance for credit losses	(186,604)		(182,283)
Loans receivable, net	$	15,332,008	15,064,529
Net deferred origination (fees) costs included in loans receivable	$	(25,349)	(25,882)
Net purchase accounting (discounts) premiums included in loans receivable	$	(16,811)	(17,832)
Accrued interest receivable on loans	$	58,053	54,971

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 markets.


	Three Months ended March 31, 2023
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	182,283	19,683	125,816	21,454	10,759	4,571


Provision for credit losses	6,260		293	4,704	(121)	(230)	1,614
Charge-offs	(3,293)		(5)	(347)	(772)	(4)	(2,165)
Recoveries	1,354		3	80	603	45	623
Balance at end of period	$	186,604	19,974	130,253	21,164	10,570	4,643


	Three Months ended March 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	4,344		(249)	3,927	(1,003)	559	1,110
Charge-offs	(2,694)		—	—	(799)	—	(1,895)
Recoveries	1,844		18	344	981	48	453
Balance at end of period	$	176,159	16,227	122,172	23,882	9,173	4,705

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 three months ended March 31, 2023, there have been no significant changes to the types of collateral securing collateral-dependent loans.


	March 31, 2023
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	17,031	4,338	3,842	3,559	2,354	2,938
Accruing loans 60-89 days past due	7,962		140	5,432	988	751	651
Accruing loans 90 days or more past due	3,545		54	2,623	475	194	199
Non-accrual loans with no ACL	28,153		2,036	21,966	2,109	1,227	815
Non-accrual loans with ACL	250		—	—	69	—	181
Total past due and non-accrual loans	56,941		6,568	33,863	7,200	4,526	4,784
Current loans receivable	15,461,671		1,501,835	9,958,156	2,796,904	825,318	379,458
Total loans receivable	$	15,518,612	1,508,403	9,992,019	2,804,104	829,844	384,242


	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

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:


	March 31, 2023
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Business assets	$	3,290	—	21	3,269	—	—
Residential real estate	3,661		2,214	91	49	1,195	112
Other real estate	34,262		45	33,922	201	70	24
Other	810		—	—	31	—	779
Total	$	42,023	2,259	34,034	3,550	1,265	915


	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

On January 1, 2023, the Company adopted FASB ASU 2022-02, Financial Instruments - Credit Losses Troubled Debt Restructurings and Vintage Disclosures, which changed the disclosures and classifications of loans previously considered TDRs. The following disclosures for loan modifications made to borrowers experiencing financial difficulty (“MBFD”) are presented in accordance with ASC Topic 310, whereas prior periods are presented in accordance with the prior guidance as disclosed in the Company’s 2022 Annual Report Form 10-K. The following tables shows the amortized cost basis at the end of the period of the loans modified to borrowers experiencing financial difficulty by segment:


		March 31, 2023
	Term Extension			Principal Forgiveness				Combination - Term Extension and Interest Rate Reduction
(Dollars in thousands)		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Amortized Cost Basis		% of Total Class of Financing Receivable		Total

Commercial real estate		$	4,981	—	%	$	—	—	%	$	35	—	%	$	5,016
Other commercial		1,568		0.1	%	—		—	%	25		—	%	$	1,593

Other consumer		18		—	%	10		—	%	—		—	%	$	28
Total		$	6,567			$	10			$	60			$	6,637

The implementation of FASB ASU 2022-02, Financial Instruments - Credit Losses Trouble Deb Restructings and Vintage Disclosures, eliminated the guidance and disclosure requirements related to TDRs. The following tables represent disclosures for the prior period that are no longer required as of January 1, 2023, but are included in this Form 10-Q since the Company is required to disclose comparative information with respected to restructured loans. A restructured loan was 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. 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:


	Three Months ended March 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	3		1	—	2	—	—
Pre-modification recorded balance	$	87	31	—	56	—	—
Post-modification recorded balance	$	87	31	—	56	—	—

The modifications for the loans designated as TDRs during the three months ended March 31, 2022 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 prior periods provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $77,000 for the three months ended March 31, 2022, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs were in consumer for the three months ended March 31, 2022. At December 31, 2022, the Company had $270,000, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process. At December 31, 2022, the Company did not have any OREO secured by residential real estate properties.

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 and the gross charge-offs. 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.


	March 31, 2023
(Dollars in thousands)	Gross Charge-Offs		Total	Pass	Special Mention	Substandard	Doubtful/ Loss
Commercial real estate loans
Term loans by origination year
2023 (year-to-date)	$	—	461,073	461,073	—	—	—
2022	300		2,541,603	2,534,386	—	6,912	305
2021	—		2,406,658	2,403,479	—	3,179	—
2020	—		1,228,836	1,224,116	—	4,720	—
2019	—		728,604	693,522	—	35,082	—
Prior	47		2,394,798	2,316,087	1,412	77,268	31
Revolving loans	—		230,447	230,209	—	237	1

Total	$	347	9,992,019	9,862,872	1,412	127,398	337
Other commercial loans
Term loans by origination year
2023 (year-to-date)	$	755	60,778	60,004	—	774	—
2022	—		628,411	626,914	17	1,479	1
2021	—		567,517	564,433	—	2,123	961
2020	2		292,021	288,377	—	3,641	3
2019	—		183,443	178,084	—	5,357	2
Prior	15		524,802	516,219	108	8,434	41
Revolving loans	—		547,132	543,827	—	3,305	—

Total	$	772	2,804,104	2,777,858	125	25,113	1,008


	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
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

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:


	March 31, 2023
(Dollars in thousands)	Gross Charge-Offs		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
2023 (year-to-date)	$	—	34,038	34,038	—	—
2022	5		594,723	592,734	1,989	—
2021	—		540,013	539,632	381	—
2020	—		112,360	112,360	—	—
2019	—		44,792	44,000	792	—
Prior	—		179,783	176,377	1,316	2,090
Revolving loans	—		2,694	2,694	—	—

Total	$	5	1,508,403	1,501,835	4,478	2,090
Home equity loans
Term loans by origination year
2023 (year-to-date)	$	—	—	—	—	—
2022	—		61	61	—	—
2021	—		80	80	—	—
2020	—		26	26	—	—
2019	—		221	191	—	30
Prior	—		7,196	6,893	135	168
Revolving loans	4		822,260	818,067	2,970	1,223

Total	$	4	829,844	825,318	3,105	1,421
Other consumer loans
Term loans by origination year
2023 (year-to-date)	$	2,011	40,877	39,490	1,359	28
2022	13		131,626	130,497	875	254
2021	47		85,679	84,915	675	89
2020	34		44,976	44,746	180	50
2019	25		17,849	17,487	205	157
Prior	35		24,027	23,266	154	607
Revolving loans	—		39,208	39,057	141	10

Total	$	2,165	384,242	379,458	3,589	1,195