Allowance for Credit Losses | Allowance for Credit Losses The following tables present the changes in the allowance for loan and lease losses in loans and leases by portfolio segment for the periods indicated: Three Months Ended June 30, 2023 Commercial Commercial Consumer Total (In Thousands) Balance at March 31, 2023 $ 82,692 $ 32,761 $ 5,412 $ 120,865 Charge-offs — (1,685) (5) (1,690) Recoveries 6 577 10 593 Provision (credit) for loan and lease losses excluding unfunded commitments 1,603 3,981 465 6,049 Balance at June 30, 2023 $ 84,301 $ 35,634 $ 5,882 $ 125,817 Three Months Ended June 30, 2022 Commercial Commercial Consumer Total (In Thousands) Balance at March 31, 2022 $ 69,031 $ 23,503 $ 2,929 $ 95,463 Charge-offs — (1,533) — (1,533) Recoveries 6 279 6 291 Provision (credit) for loan and lease losses excluding unfunded commitments 990 (2,144) 121 (1,033) Balance at June 30, 2022 $ 70,027 $ 20,105 $ 3,056 $ 93,188 Six Months Ended June 30, 2023 Commercial Commercial Consumer Total (In Thousands) Balance at December 31, 2022 $ 68,154 $ 26,604 $ 3,724 $ 98,482 Charge-offs — (2,525) (16) (2,541) Recoveries 12 960 21 993 Provision (credit) for loan and lease losses excluding unfunded commitments 16,135 10,595 2,153 28,883 Balance at June 30, 2023 $ 84,301 $ 35,634 $ 5,882 $ 125,817 The table above excludes the establishment of the initial reserve for PCD loans and leases of $2.3 million, net of $2.3 million of day one charge-offs recognized at the date of the acquisition in accordance with GAAP. Six Months Ended June 30, 2022 Commercial Commercial Consumer Total (In Thousands) Balance at December 31, 2021 $ 69,213 $ 27,055 $ 2,816 $ 99,084 Charge-offs (37) (3,833) (7) (3,877) Recoveries 11 632 44 687 Provision (credit) for loan and lease losses excluding unfunded commitments 840 (3,749) 203 (2,706) Balance at June 30, 2022 $ 70,027 $ 20,105 $ 3,056 $ 93,188 The allowance for credit losses for unfunded credit commitments, which is included in other liabilities, was $22.8 million, and $20.6 million at June 30, 2023 and December 31, 2022, respectively. Provision for Credit Losses The provision (credit) for credit losses are set forth below for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (In Thousands) Provision (credit) for loan and lease losses: Commercial real estate $ 1,603 $ 990 $ 16,135 $ 840 Commercial 3,981 (2,144) 10,595 (3,749) Consumer 465 121 2,153 203 Total (credit) provision for loan and lease losses 6,049 (1,033) 28,883 (2,706) Unfunded commitments (323) 1,206 2,187 2,715 Total provision (credit) for credit losses $ 5,726 $ 173 $ 31,070 $ 9 Allowance for Loan and Lease Losses Methodology Management has established a methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses expected on the loan and lease portfolio and unfunded commitments. Additions to the allowance for credit losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized. To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. Commercial real estate ("CRE"), commercial and industrial ("C&I"), and retail lifetime loss rate models calculate the expected losses over the life of the loan based on exposure at default loan attributes and reasonable, supportable economic forecasts. The exposure at default considers the current unpaid balance, prepayment assumptions and expected utilization assumptions. The expected loss estimates for two small commercial portfolios are based on historical loss rates. Key assumptions used in the models include portfolio segmentation, prepayments, and the expected utilization of unfunded commitments, among others. The portfolios are segmented by loan level attributes such as loan type, loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development and incorporate adjustments for reasonable and supportable forecasts. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a loan equivalency ("LEQ") factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes available . The ACL estimate incorporates reasonable and supportable forecasts of various macro-economic variables over the remaining life of loans and leases. The development of the reasonable and supportable forecast assume each macro-economic variable will revert to long-term expectations, with reversion characteristics unique to specific economic indicators and forecasts. Reversion towards long-term expectations generally begins two Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of gross domestic product ("GDP"), interest rates, property price indices, and employment measures. Scenario weighting and model parameters are reviewed for each calculation and updated to reflect facts and circumstances as of the financial statement date. The forecasts utilized at June 30, 2023 reflect the immediate and longer-term effects of a rising interest rate environment and inflationary conditions. As of June 30, 2023, management applied qualitative adjustments to the CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models. These adjustments addressed model limitations, were based on historical loss patterns, and targeted specific risks within the certain portfolios. A general qualitative adjustment was applied to all models to account for general economic uncertainty by placing a greater probability on negative economic forecasts. Additional qualitative adjustments were applied to the commercial, multifamily, and commercial real estate (includes owner occupied, non-owner occupied, and construction) portfolios based on the Company’s historical loss experience and the loss experience of the Company’s peer group. High risk segments of the Eastern Funding portfolios also received additional qualitative adjustments based on recent loss history and expected liquidation values. These qualitative adjustments resulted in additions to reserves for all portfolios, as compared to the model output. Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary. The general allowance for loan and lease losses was $111.0 million as of June 30, 2023, compared to $95.4 million as of December 31, 2022. The increase in the general allowance was primarily driven by the acquisition of PCSB Bank during the year, which contributed $14.8 million of the $15.6 million increase, and secondarily by loan growth during the year. The specific allowance for loan and lease losses was $14.8 million as of June 30, 2023, compared to $3.1 million as of December 31, 2022. The specific allowance increased by $11.7 million during the six months ended June 30, 2023 primarily due to specific reserves on two C&I accounts totaling $6 million, as well as specific reserve increases totaling $2.9 million for commercial real estate loans and $2.2 million in equipment financing loans. As of June 30, 2023, management believes that the methodology for calculating the allowance is sound and that the allowance provides a reasonable basis for determining and reporting on expected losses over the lifetime of the Company’s loan portfolios. Credit Quality Assessment At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the credit quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, adversely risk-rated, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a modified loan. The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk. The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows: 1 -4 Rating—Pass Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral. 5 Rating—Other Assets Especially Mentioned ("OAEM") Borrowers exhibit potential credit weaknesses or downward trends deserving management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned. 6 Rating—Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation. 7 Rating—Doubtful Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. 8 Rating—Definite Loss Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted. Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets. Credit Quality Information The following table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of June 30, 2023. June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Commercial Real Estate June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Pass $ 241,350 $ 656,424 $ 786,618 $ 388,710 $ 469,881 $ 1,298,263 $ 69,618 $ 12,105 $ 3,922,969 OAEM — — 2,565 3,431 — 42,051 — — 48,047 Substandard — — — — 14,757 11,254 — — 26,011 Total 241,350 656,424 789,183 392,141 484,638 1,351,568 69,618 12,105 3,997,027 Multi-Family Mortgage Pass 6,834 198,059 238,086 169,934 208,360 490,643 6,355 36,623 1,354,894 OAEM — — — — 1,333 — — — 1,333 Substandard — — — — — 2,248 — — 2,248 Total 6,834 198,059 238,086 169,934 209,693 492,891 6,355 36,623 1,358,475 Construction Pass 15,760 185,066 70,667 9,651 10,810 910 6,200 — 299,064 OAEM — 1,744 10,633 — — — — — 12,377 Substandard — — — — 1,501 2,327 — — 3,828 Total 15,760 186,810 81,300 9,651 12,311 3,237 6,200 — 315,269 Commercial Pass 53,121 145,185 131,871 41,850 26,089 79,057 318,473 3,809 799,455 OAEM — — 94 2,569 1,385 — 12,676 249 16,973 Substandard 1,004 — 4,635 1,182 13,190 29 8,420 301 28,761 Doubtful — — — — — 1 — 2 3 Total 54,125 145,185 136,600 45,601 40,664 79,087 339,569 4,361 845,192 Current-period gross writeoffs — — — — 7 85 — — 92 Equipment Financing Pass 231,217 433,296 242,641 152,274 111,885 99,376 13,746 2,867 1,287,302 OAEM — 2,746 1,391 1,339 506 66 — — 6,048 Substandard 46 3,124 1,823 1,126 2,539 2,315 — — 10,973 Doubtful — 562 1,265 — — 15 — — 1,842 Total 231,263 439,728 247,120 154,739 114,930 101,772 13,746 2,867 1,306,165 Current-period gross writeoffs — 514 845 108 273 694 — — 2,434 Condominium Association Pass 1,234 6,484 7,475 7,336 5,118 11,640 2,183 200 41,670 June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Total 1,234 6,484 7,475 7,336 5,118 11,640 2,183 200 41,670 Other Consumer Pass 310 389 816 10 26 2,104 44,078 1 47,734 Total 310 389 816 10 26 2,104 44,078 1 47,734 Current-period gross writeoffs 4 — 1 — 11 7 — — 23 Total Pass 549,826 1,624,903 1,478,174 769,765 832,169 1,981,993 460,653 55,605 7,753,088 OAEM — 4,490 14,683 7,339 3,224 42,117 12,676 249 84,778 Substandard 1,050 3,124 6,458 2,308 31,987 18,173 8,420 301 71,821 Doubtful — 562 1,265 — 562 16 — 2 2,407 Total $ 550,876 $ 1,633,079 $ 1,500,580 $ 779,412 $ 867,942 $ 2,042,299 $ 481,749 $ 56,157 $ 7,912,094 As of June 30, 2023, there were no loans categorized as definite loss. For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model. At June 30, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Residential Credit Scores Over 700 $ 36,092 $ 175,692 $ 220,158 $ 123,651 $ 90,123 $ 283,544 $ 4,707 $ 443 $ 934,410 661 - 700 3,415 14,883 10,791 9,000 5,969 21,900 — — 65,958 600 and below 1,506 13,978 5,049 8,199 3,201 23,132 — — 55,065 Data not available * 405 3,178 — 179 1,471 21,759 — — 26,992 Total $ 41,418 $ 207,731 $ 235,998 $ 141,029 $ 100,764 $ 350,335 $ 4,707 $ 443 $ 1,082,425 Home Equity Credit Scores Over 700 $ 3,875 $ 3,979 $ 1,837 $ 960 $ 1,341 $ 8,170 $ 277,118 $ 5,590 $ 302,870 661 - 700 126 512 43 — 16 894 20,017 1,020 22,628 600 and below 180 95 — 34 43 307 14,359 1,308 16,326 Data not available * 25 14 — — — 223 4,320 436 5,018 Total $ 4,206 $ 4,600 $ 1,880 $ 994 $ 1,400 $ 9,594 $ 315,814 $ 8,354 $ 346,842 _______________________________________________________________________________ * Primarily represents loans made to trusts and purchase mortgages. The following tables present the recorded investment in loans in each class as of December 31, 2022, by credit quality indicator. December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Commercial Real Estate Pass $ 475,105 $ 622,952 $ 290,913 $ 362,339 $ 210,954 $ 971,274 $ 55,464 $ 9,167 $ 2,998,168 OAEM — 2,600 112 14,805 2,841 25,875 — — 46,233 Substandard — — — — — 2,345 — — 2,345 Total 475,105 625,552 291,025 377,144 213,795 999,494 55,464 9,167 3,046,746 Multi-Family Mortgage Pass 162,139 226,502 132,893 114,109 142,271 324,415 4,823 36,662 1,143,814 Substandard — — — — — 6,783 — — 6,783 Total 162,139 226,502 132,893 114,109 142,271 331,198 4,823 36,662 1,150,597 December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Construction Pass 82,650 73,995 13,787 16,421 3,306 — 6,456 — 196,615 OAEM 842 8,641 — — — — — — 9,483 Substandard — — — — — 707 — — 707 Total 83,492 82,636 13,787 16,421 3,306 707 6,456 — 206,805 Commercial Pass 178,212 116,674 48,713 22,809 29,350 52,866 273,467 1,071 723,162 OAEM — 109 — 14,821 — — 2,187 — 17,117 Substandard — 3,835 1,215 494 — 30 6,461 632 12,667 Doubtful — — — — — 1 — 1 2 Total 178,212 120,618 49,928 38,124 29,350 52,897 282,115 1,704 752,948 Equipment Financing Pass 443,323 282,398 185,007 140,931 76,595 60,980 13,236 1,301 1,203,771 OAEM 1,019 1,453 184 455 13 — — — 3,124 Substandard 608 784 1,514 2,597 2,503 1,669 — — 9,675 Doubtful — — — — 2 13 — — 15 Total 444,950 284,635 186,705 143,983 79,113 62,662 13,236 1,301 1,216,585 Condominium Association Pass 5,821 7,743 8,810 5,858 1,603 12,227 4,823 23 46,908 Substandard — — — — — 58 — — 58 Total 5,821 7,743 8,810 5,858 1,603 12,285 4,823 23 46,966 Other Consumer Pass 411 393 15 13 1,503 750 53,418 1 56,504 Substandard — — — — — — 1 — 1 Total 411 393 15 13 1,503 750 53,419 1 56,505 Total Pass 1,347,661 1,330,657 680,138 662,480 465,582 1,422,512 411,687 48,225 6,368,942 OAEM 1,861 12,803 296 30,081 2,854 25,875 2,187 — 75,957 Substandard 608 4,619 2,729 3,091 2,503 11,592 6,462 632 32,236 December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Doubtful — — — — 2 14 — 1 17 Total $ 1,350,130 $ 1,348,079 $ 683,163 $ 695,652 $ 470,941 $ 1,459,993 $ 420,336 $ 48,858 $ 6,477,152 As of December 31, 2022, there were no loans categorized as definite loss. At December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Residential Credit Scores Over 700 $ 108,125 $ 176,341 $ 95,484 $ 61,763 $ 38,949 $ 132,359 $ 4,942 $ 348 $ 618,311 661 - 700 15,018 21,450 17,611 11,388 8,308 29,999 — — 103,774 600 and below 6,133 3,754 5,275 2,833 2,264 14,688 — — 34,947 Data not available * 28,097 6,661 712 3,316 — 48,796 — — 87,582 Total $ 157,373 $ 208,206 $ 119,082 $ 79,300 $49,521 $ 225,842 $ 4,942 $ 348 $ 844,614 Home Equity Credit Scores Over 700 $ 3,833 $ 1,399 $ 1,128 $ 1,209 $ 984 $ 6,862 $ 247,188 $ 2,304 $ 264,907 661 - 700 787 92 35 249 272 1,329 41,050 296 44,110 600 and below 89 87 48 93 — 360 8,744 595 10,016 Data not available * 6 6 — — — 1,029 2,279 269 3,589 Total $ 4,715 $ 1,584 $ 1,211 $ 1,551 $ 1,256 $ 9,580 $ 299,261 $ 3,464 $ 322,622 _______________________________________________________________________________ * Primarily represents loans made to trusts and purchase mortgages. Age Analysis of Past Due Loans and Leases The following table presents an age analysis of the amortized cost basis in loans and leases as of June 30, 2023. At June 30, 2023 Past Due Past 31-60 61-90 Greater Total Current Total Loans Non-accrual Non-accrual (In Thousands) Commercial real estate loans: Commercial real estate $ 6,505 $ 18,560 $ 189 $ 25,254 $ 3,971,773 $ 3,997,027 $ — $ 8,737 $ — Multi-family mortgage 744 — — 744 1,357,731 1,358,475 — — — Construction — — 2,208 2,208 313,061 315,269 — 3,828 3,828 Total commercial real estate loans 7,249 18,560 2,397 28,206 5,642,565 5,670,771 — 12,565 3,828 Commercial loans and leases: Commercial 596 911 399 1,906 843,286 845,192 — 16,023 2,661 Equipment financing 6,513 3,594 5,979 16,086 1,290,079 1,306,165 488 12,809 1,217 Condominium association — — — — 41,670 41,670 — — — Total commercial loans and leases 7,109 4,505 6,378 17,992 2,175,035 2,193,027 488 28,832 3,878 Consumer loans: Residential mortgage 983 1,157 2,000 4,140 1,078,285 1,082,425 — 4,343 1,738 Home equity 629 27 174 830 346,012 346,842 2 583 — Other consumer — — — — 47,734 47,734 — — — Total consumer loans 1,612 1,184 2,174 4,970 1,472,031 1,477,001 2 4,926 1,738 Total loans and leases $ 15,970 $ 24,249 $ 10,949 $ 51,168 $ 9,289,631 $ 9,340,799 $ 490 $ 46,323 $ 9,444 The Company did not recognize any interest income on nonaccrual loans for the three months ended June 30, 2023. The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2022. At December 31, 2022 Past Due Loans and Non-accrual 31-60 61-90 Greater Total Current Total Loans Non-accrual (In Thousands) Commercial real estate loans: Commercial real estate $ 2,495 $ 199 $ 408 $ 3,102 $ 3,043,644 $ 3,046,746 $ — $ 607 $ 262 Multi-family mortgage — 180 — 180 1,150,417 1,150,597 — — — Construction 707 — — 707 206,098 206,805 — 707 707 Total commercial real estate loans 3,202 379 408 3,989 4,400,159 4,404,148 — 1,314 969 Commercial loans and leases: Commercial 740 — 343 1,083 751,865 752,948 — 464 — Equipment financing 5,103 1,764 6,205 13,072 1,203,513 1,216,585 28 9,653 399 Condominium association 2,072 — — 2,072 44,894 46,966 — 58 — Total commercial loans and leases 7,915 1,764 6,548 16,227 2,000,272 2,016,499 28 10,175 399 Consumer loans: Residential mortgage 677 70 1,466 2,213 842,401 844,614 1 2,680 1,091 Home equity 443 — 155 598 322,024 322,622 4 723 — Other consumer 1 5 2 8 56,497 56,505 — 2 — Total consumer loans 1,121 75 1,623 2,819 1,220,922 1,223,741 5 3,405 1,091 Total loans and leases $ 12,238 $ 2,218 $ 8,579 $ 23,035 $ 7,621,353 $ 7,644,388 $ 33 $ 14,894 $ 2,459 Impaired Loans and Leases A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The loans and leases risk-rated "substandard" or worse are considered impaired. The Company has also defined the population of impaired loans to include nonaccrual loans and modified loans. Impaired loans and leases which do not share similar risk characteristics with other loans are individually evaluated for credit losses. Specific reserves are established for loans and leases with deterioration in the present value of expected future cash flows or, in the case of collateral-dependent loans and leases, any increase in the loan or lease amortized cost basis over the fair value of the underlying collateral discounted for estimated selling costs. In contrast, the loans and leases which share similar risk characteristics and are not included in the individually evaluated population are collectively evaluated for credit losses. The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated. At June 30, 2023 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Individually evaluated $ 2,954 $ 11,849 $ 42 $ 14,845 Collectively evaluated 81,347 23,785 5,840 110,972 Total $ 84,301 $ 35,634 $ 5,882 $ 125,817 Loans and Leases: Individually evaluated $ 33,433 $ 33,226 $ 4,363 $ 71,022 Collectively evaluated 5,637,338 2,159,801 1,472,638 9,269,777 Total $ 5,670,771 $ 2,193,027 $ 1,477,001 $ 9,340,799 At December 31, 2022 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Individually evaluated $ 62 $ 2,982 $ 68 $ 3,112 Collectively evaluated 68,092 23,622 3,656 95,370 Total loans and leases $ 68,154 $ 26,604 $ 3,724 $ 98,482 Loans and Leases: Individually evaluated $ 11,039 $ 14,346 $ 3,863 $ 29,248 Collectively evaluated 4,393,109 2,002,153 1,219,878 7,615,140 Total loans and leases $ 4,404,148 $ 2,016,499 $ 1,223,741 $ 7,644,388 Loan Modifications In January 2023, the Company adopted ASU 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”), which eliminated the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. This guidance was applied on a prospective basis. Upon adoption of this guidance, the Company estimates the reserve for modifications to borrowers experiencing financial difficulty in a manner similar to the process for non-modified loans. The following tables present the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated.The loans presented in the following tables relate to two customer relationships. Three Months Ended June 30, 2023 Number of Loans Amortized Cost % of Total Class of Loans and Leases Financial Effect (In thousands) Maturity Extension C&I 7 $ 12,938 0.88 % All 7 loans were given 6-month maturity extensions and restructured payment plans to assist borrowers. The financial effect was deemed "de minimis." Combination C&I 2 627 0.04 % Both loans were given 6-month maturity extensions and restructured delayed payment plans to assist borrowers. The financial effect was deemed "de minimis." Total 9 $ 13,565 0.92 % Six Months Ended June 30, 2023 Number of Loans Amortized Cost % of Total Class of Loans and Leases Financial Effect (In thousands) Maturity Extension C&I 24 $ 19,061 1.29 % All 24 loans were given 6-month maturity extensions and restructured payment plans to assist borrowers. The financial effect was deemed "de minimis." Combination C&I 2 627 0.04 % Both loans were given 6-month maturity extensions and restructured delayed payment plans to assist borrowers. The financial effect was deemed "de minimis." Total 26 $ 19,688 1.33 % The following tables present the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the periods indicated. Three Months Ended June 30, 2023 Current 30-60 Days Past Due 61-90 Days Past Due 90+ Days Past Due Modified Paid Off Charged Off (In thousands) Total Modifications $ 13,565 — — — — — — Six Months Ended June 30, 2023 Current 30-60 Days Past Due 61-90 Days Past Due 90+ Days Past Due Modified Paid Off Charged Off (In thousands) Total Modifications $ 19,688 — — — — — — The following table sets forth information regarding TDR loans and leases at the dates indicated: At December 31, 2022 (In Thousands) Troubled debt restructurings: On accrual $ 16,385 On nonaccrual 3,527 Total troubled debt restructurings $ 19,912 Total TDR loans and leases at December 31, 2022 were $19.9 million. The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios that were modified during the periods indicated, are as follows. At and for the Three Months Ended June 30, 2022 Amortized Cost Specific Defaulted (1) Number of At At End of Nonaccrual Number of Amortized Cost (Dollars in Thousands) Equipment financing 6 $ 8 $ 333 $ — $ 180 3 $ 295 Total loans and leases 6 $ 8 $ 333 $ — $ 180 3 $ 295 ______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. At and for the Six Months Ended June 30, 2022 Amortized Cost Specific Defaulted (1) Number of At At End of Nonaccrual Number of Amortized Cost (Dollars in Thousands) Equipment financing 17 561 851 — 366 5 361 Total loans and leases 17 $ 561 $ 851 $ — $ 366 5 $ 361 The following table sets forth the Company's end-of-period amortized cost basis for TDRs that were modified during the periods indicated, by type of modification. Three Months Ended June 30, Six Months Ended 2022 2022 (In Thousands) Loans with one modification: Extended maturity $ 44 $ 292 Combination maturity, principal, interest rate 289 559 Total loans with modifications $ 333 $ 851 The TDR loans and leases that were modified for the three months ended June 30, 2022 were $0.3 million. The net charge-offs for performing and nonperforming TDR loans and leases for the six months ended June 30, 2022 were $0.1 million. The commitments to lend funds to debtors owing receivables whose terms had been modified in TDRs was as of June 30, 2022 were $0.5 million. |