Loans and the Allowance for Credit Losses | NO TE 4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES The recorded investment in loans is presented in the Consolidated Balance Sheets net of deferred loan fees and costs, and discounts on purchased loans. Net deferred loan costs were $ 9.6 million and $ 3.3 million at December 31, 2022 and 2021 , respectively, including $ 0.2 million and $ 6.1 million, respectively, of net deferred income from SBA Payroll Protection Program ("PPP") loans. The un-accreted discount on purchased loans from acquisitions was $ 18.0 million at December 31, 2022 and $ 25.9 million at December 31, 2021. December 31, December 31, (in thousands) 2022 2021 Commercial real estate: Land and construction $ 943,887 $ 833,880 Improved property 5,117,457 4,705,088 Total commercial real estate 6,061,344 5,538,968 Commercial and industrial 1,571,280 1,427,645 Commercial and industrial - PPP 8,115 162,675 Residential real estate 2,140,584 1,721,378 Home equity 695,065 605,682 Consumer 226,340 277,130 Total portfolio loans 10,702,728 9,733,478 Loans held for sale 8,249 25,277 Total loans $ 10,710,977 $ 9,758,755 As of December 31, 2022 , accrued interest receivable for loans was $ 51.8 million. Wesbanco made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses because the Company has a robust policy in place to reverse or write-off accrued interest when loans are placed on non-accrual. However, Wesbanco does have a $ 0.2 million reserve on the accrued interest related to loan modifications allowed under the CARES Act due to the timing and nature of these modifications. As of December 31, 2022 , accrued interest related to COVID-19 loan modifications as permitted under the CARES Act was $ 17.0 million. The following tables summarize changes in the allowance for credit losses applicable to each category of the loan portfolio: For the Year Ended December 31, 2022 (in thousands) Commercial Commercial Commercial Residential Home Consumer Deposit Total Balance at beginning of year: Allowance for credit $ 7,310 $ 65,355 $ 26,875 $ 15,401 $ 724 $ 3,737 $ 2,220 $ 121,622 Allowance for credit 4,180 201 1,497 1,576 49 272 — 7,775 Total beginning allowance for 11,490 65,556 28,372 16,977 773 4,009 2,220 129,397 Provision for credit losses: Provision for loan losses ( 625 ) ( 12,939 ) 4,736 2,717 3,526 44 333 ( 2,208 ) Provision for loan commitments 1,845 ( 201 ) ( 1,497 ) 639 79 ( 272 ) — 593 Total provision for credit 1,220 ( 13,140 ) 3,239 3,356 3,605 ( 228 ) 333 ( 1,615 ) Charge-offs ( 73 ) ( 795 ) ( 1,068 ) ( 500 ) ( 358 ) ( 3,476 ) ( 1,622 ) ( 7,892 ) Recoveries 125 1,038 997 590 342 2,822 354 6,268 Net recoveries (charge-offs) 52 243 ( 71 ) 90 ( 16 ) ( 654 ) ( 1,268 ) ( 1,624 ) Balance at end of period: Allowance for credit 6,737 52,659 31,540 18,208 4,234 3,127 1,285 117,790 Allowance for credit 6,025 — — 2,215 128 — — 8,368 Total ending allowance for credit $ 12,762 $ 52,659 $ 31,540 $ 20,423 $ 4,362 $ 3,127 $ 1,285 $ 126,158 For the Year Ended December 31, 2021 (in thousands) Commercial Commercial Commercial Residential Home Consumer Deposit Total Balance at beginning of year: Allowance for credit $ 10,841 $ 110,652 $ 37,850 $ 17,851 $ 1,487 $ 6,507 $ 639 $ 185,827 Allowance for credit 6,508 712 1,275 955 45 19 — 9,514 Total beginning allowance for 17,349 111,364 39,125 18,806 1,532 6,526 639 195,341 Provision for credit losses: Provision for loan losses ( 3,698 ) ( 44,831 ) ( 10,749 ) ( 2,708 ) ( 899 ) ( 2,286 ) 2,694 ( 62,477 ) Provision for loan commitments ( 2,328 ) ( 511 ) 222 621 4 253 — ( 1,739 ) Total provision for credit ( 6,026 ) ( 45,342 ) ( 10,527 ) ( 2,087 ) ( 895 ) ( 2,033 ) 2,694 ( 64,216 ) Charge-offs ( 22 ) ( 1,825 ) ( 2,521 ) ( 873 ) ( 414 ) ( 2,995 ) ( 1,486 ) ( 10,136 ) Recoveries 189 1,359 2,295 1,131 550 2,511 373 8,408 Net recoveries (charge-offs) 167 ( 466 ) ( 226 ) 258 136 ( 484 ) ( 1,113 ) ( 1,728 ) Balance at end of period: Allowance for credit 7,310 65,355 26,875 15,401 724 3,737 2,220 121,622 Allowance for credit 4,180 201 1,497 1,576 49 272 — 7,775 Total ending allowance for credit $ 11,490 $ 65,556 $ 28,372 $ 16,977 $ 773 $ 4,009 $ 2,220 $ 129,397 For the Year Ended December 31, 2020 (in thousands) Commercial Commercial Commercial Residential Home Consumer Deposit Total Balance at beginning of year: Allowance for credit $ 4,949 $ 20,293 $ 14,116 $ 4,311 $ 4,422 $ 2,951 $ 1,387 $ 52,429 Allowance for credit 235 22 311 15 250 41 — 874 Total beginning allowance for 5,184 20,315 14,427 4,326 4,672 2,992 1,387 53,303 Impact of adopting ASC 326 1,524 13,078 22,357 5,630 ( 3,936 ) 2,576 213 41,442 Provision for credit losses: Provision for loan losses 6,929 78,210 3,918 9,065 1,234 2,980 ( 376 ) 101,960 Provision for loan commitments 3,671 712 693 560 30 19 — 5,685 Total provision for credit 10,600 78,922 4,611 9,625 1,264 2,999 ( 376 ) 107,645 Charge-offs ( 51 ) ( 1,747 ) ( 3,727 ) ( 1,415 ) ( 969 ) ( 3,615 ) ( 1,011 ) ( 12,535 ) Recoveries 92 796 1,457 640 501 1,574 426 5,486 Net recoveries (charge-offs) 41 ( 951 ) ( 2,270 ) ( 775 ) ( 468 ) ( 2,041 ) ( 585 ) ( 7,049 ) Balance at end of period: Allowance for credit 10,841 110,652 37,850 17,851 1,487 6,507 639 185,827 Allowance for credit 6,508 712 1,275 955 45 19 — 9,514 Total ending allowance for credit $ 17,349 $ 111,364 $ 39,125 $ 18,806 $ 1,532 $ 6,526 $ 639 $ 195,341 The following tables present the allowance for credit losses and recorded investments in loans by category, as of each period-end: Allowance for Credit Losses and Recorded Investment in Loans (in thousands) Commercial Commercial Commercial Residential Home Consumer Deposit Total December 31, 2022 Allowance for credit losses: Loans individually-evaluated $ — $ 2,988 $ 130 $ — $ — $ — $ — $ 3,118 Loans collectively-evaluated 6,737 49,671 31,410 18,208 4,234 3,127 1,285 114,672 Loan commitments (1) 6,025 — — 2,215 128 — — 8,368 Total allowance for credit $ 12,762 $ 52,659 $ 31,540 $ 20,423 $ 4,362 $ 3,127 $ 1,285 $ 126,158 Portfolio loans: Individually-evaluated for credit (1) $ 24,629 $ 25,369 $ 401 $ — $ — $ — $ — $ 50,399 Collectively-evaluated for credit 919,258 5,092,088 1,578,994 2,140,584 695,065 226,340 — 10,652,329 Total portfolio loans $ 943,887 $ 5,117,457 $ 1,579,395 $ 2,140,584 $ 695,065 $ 226,340 $ — $ 10,702,728 December 31, 2021 Allowance for credit losses: Loans individually-evaluated $ 381 $ 8,560 $ 333 $ — $ — $ — $ — $ 9,274 Loans collectively-evaluated 6,929 56,795 26,542 15,401 724 3,737 2,220 112,348 Loan commitments (1) 4,180 201 1,497 1,576 49 272 — 7,775 Total allowance for credit $ 11,490 $ 65,556 $ 28,372 $ 16,977 $ 773 $ 4,009 $ 2,220 $ 129,397 Portfolio loans: Individually-evaluated for credit (1) $ 1,248 $ 66,635 $ 576 $ — $ — $ — $ — $ 68,459 Collectively-evaluated for credit 832,632 4,638,453 1,589,744 1,721,378 605,682 277,130 — 9,665,019 Total portfolio loans $ 833,880 $ 4,705,088 $ 1,590,320 $ 1,721,378 $ 605,682 $ 277,130 $ — $ 9,733,478 (1) For additional detail relating to loan commitments, see Footnote 18, "Commitments and Contingent Liabilities". Commercial loan risk grades are determined based on an evaluation of the relevant characteristics of each loan, assigned at inception and adjusted thereafter at any time to reflect changes in the risk profile throughout the life of each loan. The primary factors used to determine the risk grade are the sufficiency, reliability and sustainability of the primary source of repayment and overall financial strength of the borrower. The rating system more heavily weights the debt service coverage, leverage and loan to value factors to derive the risk grade. Other factors that are considered at a lesser weighting include management, industry or property type risks, payment history, collateral or guarantees. Commercial real estate – land and construction consists of loans to finance investments in vacant land, land development, construction of residential housing, and construction of commercial buildings. Commercial real estate – improved property consists of loans for the purchase or refinance of all types of improved owner-occupied and investment properties. Factors that are considered in assigning the risk grade vary depending on the type of property financed. The risk grade assigned to construction and development loans is based on the overall viability of the project, the experience and financial capacity of the developer or builder to successfully complete the project, project specific and market absorption rates and comparable property values, and the amount of pre-sales for residential housing construction or pre-leases for commercial investment property. The risk grade assigned to commercial investment property loans is based primarily on the adequacy of the net operating income generated by the property to service the debt (“debt service coverage”), the loan to appraised value, the type, quality, industry and mix of tenants, and the terms of leases. The risk grade assigned to owner-occupied commercial real estate is based primarily on global debt service coverage and the leverage of the business, but may also consider the industry in which the business operates, the business’ specific competitive advantages or disadvantages, collateral margins and the quality and experience of management. C&I loans consist of revolving lines of credit to finance accounts receivable, inventory and other general business purposes; term loans to finance fixed assets other than real estate, and letters of credit to support trade, insurance or governmental requirements for a variety of businesses. Most C&I borrowers are privately-held companies with annual sales up to $ 100 million. Primary factors that are considered in risk rating C&I loans include debt service coverage and leverage. Other factors including operating trends, collateral coverage along with management experience are also considered. Pass loans are those that exhibit a history of positive financial results that are at least comparable to the average for their industry or type of real estate. The primary source of repayment is acceptable and these loans are expected to perform satisfactorily during most economic cycles. Pass loans typically have no significant external factors that are expected to adversely affect these borrowers more than others in the same industry or property type. Any minor unfavorable characteristics of these loans are outweighed or mitigated by other positive factors including but not limited to adequate secondary or tertiary sources of repayment. Criticized loans, considered as compromised, have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the bank's credit position at some future date. Criticized loans are not adversely classified by the banking regulators and do not expose the bank to sufficient risk to warrant adverse classification. Classified loans, considered as substandard and doubtful, are equivalent to the classifications used by banking regulators. Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. These loans may or may not be reported as non-accrual. Doubtful loans have all the weaknesses inherent in those classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. These loans are reported as non-accrual. The following tables summarize commercial loans by their assigned risk grade: Commercial Loans by Internally Assigned Risk Grade (in thousands) Commercial Commercial Commercial Total As of December 31, 2022 Pass $ 911,804 $ 4,940,135 $ 1,538,300 $ 7,390,239 Criticized—compromised 1,329 121,393 25,223 147,945 Classified—substandard 30,754 55,929 15,872 102,555 Classified—doubtful — — — — Total $ 943,887 $ 5,117,457 $ 1,579,395 $ 7,640,739 As of December 31, 2021 Pass $ 823,316 $ 4,400,872 $ 1,540,569 $ 6,764,757 Criticized—compromised 7,955 222,830 17,733 248,518 Classified—substandard 2,609 81,386 32,018 116,013 Classified—doubtful — — — — Total $ 833,880 $ 4,705,088 $ 1,590,320 $ 7,129,288 Residential real estate, home equity and consumer loans are not assigned internal risk grades other than as required by regulatory guidelines that are based primarily on the age of past due loans. Wesbanco primarily evaluates the credit quality of residential real estate, home equity and consumer loans based on repayment performance and historical loss rates. The aggregate amount of residential real estate, home equity and consumer loans classified as substandard in accordance with regulatory guidelines were $ 24.8 million at December 31, 2022 and $ 30.2 million at December 31, 2021 , of which $ 5.9 million and $ 7.4 million were accruing, for each period, respectively. These loans are not included in the tables above. In addition, $ 25.0 million and $ 21.7 million of unfunded criticized and classified commercial loan commitments are not included in the tables above for December 31, 2022 and 2021, respectively. The following tables summarize the age analysis of all categories of loans. Age Analysis of Loans (in thousands) Current 30-59 Days 60-89 Days 90 Days Total Total 90 Days As of December 31, 2022 Commercial real estate: Land and construction $ 942,236 $ — $ 910 $ 741 $ 1,651 $ 943,887 $ 629 Improved property 5,099,342 2,147 331 15,637 18,115 5,117,457 84 Total commercial real estate 6,041,578 2,147 1,241 16,378 19,766 6,061,344 713 Commercial and industrial 1,574,311 1,427 519 3,138 5,084 1,579,395 1,586 Residential real estate 2,129,095 853 3,536 7,100 11,489 2,140,584 1,551 Home equity 686,762 3,885 621 3,797 8,303 695,065 1,063 Consumer 222,153 2,910 704 573 4,187 226,340 530 Total portfolio loans 10,653,899 11,222 6,621 30,986 48,829 10,702,728 5,443 Loans held for sale 8,249 — — — — 8,249 — Total loans $ 10,662,148 $ 11,222 $ 6,621 $ 30,986 $ 48,829 $ 10,710,977 $ 5,443 Nonperforming loans included above are as follows: Non-accrual loans $ 10,337 $ 1,495 $ 870 $ 25,483 27,848 $ 38,185 TDRs accruing interest (1) 3,131 7 32 60 99 3,230 Total non-performing $ 13,468 $ 1,502 $ 902 $ 25,543 $ 27,947 $ 41,415 As of December 31, 2021 Commercial real estate: Land and construction $ 833,755 $ — $ — $ 125 $ 125 $ 833,880 $ 51 Improved property 4,681,028 6,377 7,728 9,955 24,060 4,705,088 3,042 Total commercial real estate 5,514,783 6,377 7,728 10,080 24,185 5,538,968 3,093 Commercial and industrial 1,583,347 2,275 1,213 3,485 6,973 1,590,320 559 Residential real estate 1,702,587 2,331 3,254 13,206 18,791 1,721,378 2,840 Home equity 599,189 2,240 602 3,651 6,493 605,682 685 Consumer 273,577 1,532 1,208 813 3,553 277,130 627 Total portfolio loans 9,673,483 14,755 14,005 31,235 59,995 9,733,478 7,804 Loans held for sale 25,277 — — — — 25,277 — Total loans $ 9,698,760 $ 14,755 $ 14,005 $ 31,235 $ 59,995 $ 9,758,755 $ 7,804 Nonperforming loans included above are as follows: Non-accrual loans $ 11,174 $ 914 $ 564 $ 23,090 24,568 $ 35,742 TDRs accruing interest (1) 3,275 3 127 341 471 3,746 Total non-performing $ 14,449 $ 917 $ 691 $ 23,431 $ 25,039 $ 39,488 (1) Loans 90 days or more past due and accruing interest exclude TDRs 90 days or more past due and accruing interest. The following tables summarize nonperforming loans: Nonperforming Loans December 31, 2022 December 31, 2021 (in thousands) Unpaid Recorded Related Unpaid Recorded Related With no related specific allowance recorded: Commercial real estate: Land and construction $ 112 $ 112 $ — $ 74 $ 73 $ — Improved property 18,367 16,601 — 9,846 8,089 — Commercial and industrial 4,102 3,112 — 6,528 5,256 — Residential real estate 21,084 16,057 — 25,492 20,065 — Home equity 6,970 5,374 — 6,985 5,440 — Consumer 316 159 — 869 565 — Total nonperforming loans without a specific allowance 50,951 41,415 — 49,794 39,488 — Total nonperforming loans with a specific allowance — — — — — — Total nonperforming loans $ 50,951 $ 41,415 $ — $ 49,794 $ 39,488 $ — (1) The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off and fair market value adjustments on acquired nonperforming loans. Nonperforming Loans For the Year For the Year For the Year (in thousands) Average Interest Average Interest Average Interest With no related specific allowance recorded: Commercial real estate: Land and construction $ 79 $ 2 $ 176 $ — $ 571 $ — Improved property 9,324 99 7,207 32 7,193 61 Commercial and industrial 4,233 12 4,077 11 5,256 7 Residential real estate 17,873 247 20,971 155 19,651 168 Home equity 5,298 37 5,561 13 5,806 22 Consumer 406 5 420 3 377 2 Total nonperforming loans without a specific allowance 37,213 402 38,413 214 38,854 260 With a specific allowance recorded: Commercial real estate: Land and construction — — — — — — Improved property — — 1,669 — 2,672 — Commercial and industrial — — — — 38 — Residential real estate — — — — 878 — Home equity — — — — 141 — Consumer — — — — 11 — Total nonperforming loans with a specific allowance — — 1,669 — 3,740 — Total nonperforming loans $ 37,213 $ 402 $ 40,082 $ 214 $ 42,594 $ 260 The following tables present the recorded investment in non-accrual loans and TDRs: Non-accrual Loans (1) (in thousands) December 31, 2022 December 31, 2021 Commercial real estate: Land and construction $ 112 $ 73 Improved property 16,254 7,715 Total commercial real estate 16,366 7,788 Commercial and industrial 2,946 5,064 Residential real estate 13,695 17,190 Home equity 5,044 5,163 Consumer 134 537 Total $ 38,185 $ 35,742 (1) At December 31, 2022 , there were three borrowers with loan balances greater than $ 1.0 million totaling $ 11.8 million, as compared to three borrowers with a loan balance greater than $ 1.0 million totaling $ 4.1 million at December 31, 2021. Total non-accrual loans include loans that are also TDRs. Such loans are also set forth in the following table as non-accrual TDRs. TDRs December 31, 2022 December 31, 2021 (in thousands) Accruing Non-Accrual Total Accruing Non-Accrual Total Commercial real estate: Land and construction $ — $ — $ — $ — $ — $ — Improved property 347 29 376 374 133 507 Total commercial real estate 347 29 376 374 133 507 Commercial and industrial 166 — 166 192 — 192 Residential real estate 2,362 1,464 3,826 2,875 1,156 4,031 Home equity 330 218 548 277 258 535 Consumer 25 — 25 28 — 28 Total $ 3,230 $ 1,711 $ 4,941 $ 3,746 $ 1,547 $ 5,293 As of December 31, 2022 and December 31, 2021 , there were no TDRs greater than $ 1.0 million. The concessions granted in the majority of loans reported as accruing and non-accrual TDRs are extensions of the maturity date or the amortization period, reductions in the interest rate below the prevailing market rate for loans with comparable characteristics, and/or permitting interest-only payments for longer than six months . Wesbanco had unfunded commitments to debtors whose loans were classified as nonperforming of $ 0.1 million as of both December 31, 2022 and 2021. The following table presents details related to loans identified as TDRs during the years ended December 31, 2022 and 2021: New TDRs (1) New TDRs (1) (dollars in thousands) Number of Pre- Post- Number of Pre- Post- Commercial real estate: Land and construction 1 $ 84 $ — — $ — $ — Improved property 2 1,286 — — — — Total commercial real estate 3 1,370 — — — — Commercial and industrial — — — 1 178 172 Residential real estate — — — 1 103 100 Home equity — — — 1 57 54 Consumer — — — — — — Total 3 $ 1,370 $ — 3 $ 338 $ 326 (1) Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end. The following table summarizes TDRs which defaulted (defined as past due 90 days) during the years ended December 31, 2022 and 2021 that were restructured within the last twelve months prior to December 31, 2022 and 2021: Defaulted TDRs (1) Defaulted TDRs (1) (dollars in thousands) Number of Recorded Number of Recorded Commercial real estate: Land and construction — $ — — $ — Improved property — — — — Total commercial real estate — — — — Commercial and industrial — — — — Residential real estate — — 1 234 Home equity — — — — Consumer — — — — Total — $ — 1 $ 234 (1) Excludes loans that were either charged-off or cured by period end. The recorded investment is as of December 31, 2022 and 2021 . TDRs that default are placed on non-accrual status unless they are both well-secured and in the process of collection. The loans in the table above were not accruing interest. Section 4013 of the CARES Act allows financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time during the COVID-19 pandemic. These customers must meet certain criteria, such as they were in good standing and not more than 30 days past due either as of December 31, 2019, or as of the implementation of the modification program under the Interagency Statement, as well as other requirements noted in the regulatory agencies’ revised statement. Based on this guidance, Wesbanco does not classify the COVID-19 loan modifications as TDRs, nor are the customers considered past due with regard to their delayed payments. Upon exiting the loan modification deferral program, the measurement of loan delinquency will resume where it left off upon entry into the program. Under the CARES Act, Wesbanco has modified approximately 3,600 loans totaling $ 2.2 billion, of which $ 0.8 million remain in their deferral period as of December 31, 2022 . Wesbanco originally offered three to six months of deferred payments to commercial and retail customers impacted by the COVID-19 pandemic depending on the type of loan and the industry for commercial loans. In the fourth quarter of 2020, Wesbanco offered up to an additional twelve months of deferred payments to certain commercial loan customers, predominantly in the hospitality industry, based on specific criteria related to the borrower, the underlying property and the potential for guarantors / co-borrowers. The following table summarizes the recognition of interest income on nonperforming loans: For the years ended December 31, (in thousands) 2022 2021 2020 Average nonperforming loans $ 37,213 $ 40,082 $ 42,594 Amount of contractual interest income on nonperforming loans 2,722 1,213 2,827 Amount of interest income recognized on nonperforming loans 402 214 260 The following table summarizes amortized cost basis loan balances by year of origination and credit quality indicator. Loans As of December 31, 2022 Amortized Cost Basis by Origination Year (in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: land and construction Risk rating: Pass $ 159,769 $ 136,131 $ 138,171 $ 155,141 $ 61,823 $ 51,381 $ 117,237 $ 92,151 $ 911,804 Criticized - compromised 559 265 — — 24 31 — 450 1,329 Classified - substandard — — 6,001 — — 124 — 24,629 30,754 Classified - doubtful — — — — — — — — — Total $ 160,328 $ 136,396 $ 144,172 $ 155,141 $ 61,847 $ 51,536 $ 117,237 $ 117,230 $ 943,887 Commercial real estate: improved property Risk rating: Pass $ 1,082,984 $ 620,205 $ 613,663 $ 528,004 $ 371,880 $ 1,551,478 $ 72,327 $ 99,594 $ 4,940,135 Criticized - compromised 10,554 354 2,877 7,659 13,551 85,332 1,066 — 121,393 Classified - substandard — 658 275 15,489 9,761 29,712 34 — 55,929 Classified - doubtful — — — — — — — — — Total $ 1,093,538 $ 621,217 $ 616,815 $ 551,152 $ 395,192 $ 1,666,522 $ 73,427 $ 99,594 $ 5,117,457 Commercial and industrial Risk rating: Pass $ 280,510 $ 184,805 $ 116,890 $ 72,142 $ 103,660 $ 232,062 $ 526,025 $ 22,206 $ 1,538,300 Criticized - compromised 917 1,192 270 8,278 264 2,524 7,654 4,124 25,223 Classified - substandard 93 3,209 976 2,157 97 2,854 1,066 5,420 15,872 Classified - doubtful — — — — — — — — — Total $ 281,520 $ 189,206 $ 118,136 $ 82,577 $ 104,021 $ 237,440 $ 534,745 $ 31,750 $ 1,579,395 Residential real estate Loan delinquency: Current $ 541,659 $ 556,928 $ 211,496 $ 97,160 $ 52,135 $ 478,977 $ — $ 190,740 $ 2,129,095 30-59 days past due — — — — — 853 — — 853 60-89 days past due — 442 349 65 — 2,680 — — 3,536 90 days or more past due — — — 285 119 6,654 — 42 7,100 Total $ 541,659 $ 557,370 $ 211,845 $ 97,510 $ 52,254 $ 489,164 $ — $ 190,782 $ 2,140,584 Home equity Loan delinquency: Current $ 10,718 $ 1,459 $ 1,133 $ 1,774 $ 1,088 $ 25,203 $ 644,430 $ 957 $ 686,762 30-59 days past due 80 61 180 67 34 1,165 2,260 38 3,885 60-89 days past due — 15 — 50 88 458 — 10 621 90 days or more past due — — 572 93 257 2,425 16 434 3,797 Total $ 10,798 $ 1,535 $ 1,885 $ 1,984 $ 1,467 $ 29,251 $ 646,706 $ 1,439 $ 695,065 Consumer Loan delinquency: Current $ 84,817 $ 36,123 $ 25,071 $ 25,535 $ 8,488 $ 16,337 $ 25,755 $ 27 $ 222,153 30-59 days past due 980 937 488 159 98 217 31 — 2,910 60-89 days past due 184 293 94 47 29 57 — — 704 90 days or more past due 183 208 69 32 2 79 — — 573 Total $ 86,164 $ 37,561 $ 25,722 $ 25,773 $ 8,617 $ 16,690 $ 25,786 $ 27 $ 226,340 Loans As of December 31, 2021 Amortized Cost Basis by Origination Year (in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: land and construction Risk rating: Pass $ 135,179 $ 217,389 $ 198,974 $ 117,157 $ 27,186 $ 29,696 $ 35,059 $ 62,676 $ 823,316 Criticized - compromised 85 6,236 — 33 — 219 856 526 7,955 Classified - substandard — 73 — — — 1,280 — 1,256 2,609 Classified - doubtful — — — — — — — — — Total $ 135,264 $ 223,698 $ 198,974 $ 117,190 $ 27,186 $ 31,195 $ 35,915 $ 64,458 $ 833,880 Commercial real estate: improved property Risk rating: Pass $ 713,697 $ 660,856 $ 589,674 $ 405,689 $ 404,241 $ 1,539,275 $ 58,933 $ 28,507 $ 4,400,872 Criticized - compromised 7,755 15,195 52,859 17,697 14,490 99,687 1,414 13,733 222,830 Classified - substandard 9,355 2,686 4,855 3,730 11,010 49,667 34 49 81,386 Classified - doubtful — — — — — — — — — Total $ 730,807 $ 678,737 $ 647,388 $ 427,116 $ 429,741 $ 1,688,629 $ 60,381 $ 42,289 $ 4,705,088 Commercial and industrial Risk rating: Pass $ 406,495 $ 159,878 $ 99,472 $ 136,146 $ 89,049 $ 223,514 $ 409,789 $ 16,226 $ 1,540,569 Criticized - compromised 590 551 693 2,558 1,645 1,278 5,389 5,029 17,733 Classified - substandard 134 236 18,465 766 2,139 1,419 3,723 5,136 32,018 Classified - doubtful — — — — — — — — — Total $ 407,219 $ 160,665 $ 118,630 $ 139,470 $ 92,833 $ 226,211 $ 418,901 $ 26,391 $ 1,590,320 Residential real estate Loan delinquency: Current $ 599,244 $ 292,653 $ 116,147 $ 71,253 $ 56,917 $ 536,444 $ — $ 29,929 $ 1,702,587 30-59 days past due 1,127 — — 69 105 1,030 — — 2,331 60-89 days past due 563 91 — 271 43 2,286 — — 3,254 90 days or more past due 1,933 673 895 88 762 8,802 — 53 13,206 Total $ 602,867 $ 293,417 $ 117,042 $ 71,681 $ 57,827 $ 548,562 $ — $ 29,982 $ 1,721,378 Home equity Loan delinquency: Current $ 10,076 $ 835 $ 649 $ 379 $ 566 $ 18,064 $ 567,478 $ 1,142 $ 599,189 30-59 days past due — 84 45 128 50 628 1,247 58 2,240 60-89 days past due — — 132 15 188 267 — — 602 90 days or more past due 187 88 119 112 234 2,550 — 361 3,651 Total $ 10,263 $ 1,007 $ 945 $ 634 $ 1,038 $ 21,509 $ 568,725 $ 1,561 $ 605,682 Consumer Loan delinquency: Current $ 60,907 $ 43,871 $ 50,317 $ 19,289 $ 11,084 $ 32,343 $ 55,739 $ 27 $ 273,577 30-59 days past due 435 370 214 136 85 241 51 — 1,532 60-89 days past due 413 375 82 19 33 286 — — 1,208 90 days or more past due 115 141 222 65 1 265 4 — 813 Total $ 61,870 $ 44,757 $ 50,835 $ 19,509 $ 11,203 $ 33,135 $ 55,794 $ 27 $ 277,130 The following table summarizes other real estate owned and repossessed assets included in other assets: December 31, (in thousands) 2022 2021 Other real estate owned $ 1,397 $ — Repossessed assets 89 — Total other real estate owned and repossessed assets $ 1,486 $ — Residential real estate included in other real estate owned was $ 0 at both December 31, 2022 and December 31, 2021. At December 31, 2022 and 2021 , formal foreclosure proceedings were in process on residential real estate loans totaling $ 4.9 million and $ 4.0 million, respectively. Previously, a s a result of provisions of the CARES Act, certain residential real estate loans were temporarily suspended from entering foreclosure proceedings, which included $ 0.8 million of loans as of December 31, 2021 . Since this moratorium had substantially ended during the first quarter of 2022, there are currently no loans suspended from entering foreclosure proceedings. |