Loans and the Allowance for Credit Losses | NOTE 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 $ 11.8 million and $ 11.5 million at March 31, 2024 and December 31, 2023 , respectively. The unaccreted discount on purchased loans from acquisitions was $ 12.7 million at March 31, 2024 and $ 13.5 million at December 31, 2023. March 31, December 31, (unaudited, in thousands) 2024 2023 Commercial real estate: Land and construction $ 1,087,649 $ 1,055,865 Improved property 5,667,284 5,509,583 Total commercial real estate 6,754,933 6,565,448 Commercial and industrial 1,683,172 1,670,659 Residential real estate 2,469,357 2,438,574 Home equity 740,973 734,219 Consumer 224,732 229,561 Total portfolio loans 11,873,167 11,638,461 Loans held for sale 12,472 16,354 Total loans $ 11,885,639 $ 11,654,815 Allowance for Credit Losses The allowance for credit losses under the current expected credit losses methodology ("CECL") is calculated utilizing the probability of default ("PD")/ loss given default ("LGD"), which is then discounted to net present value. PD is the probability the asset will default within a given time frame and LGD is the percentage of the asset not expected to be collected due to default. The primary macroeconomic drivers of the quantitative model include forecasts of national unemployment and interest rates, as well as modeling adjustments for changes in prepayment speeds, loan risk grades, portfolio mix, concentrations and loan growth. At March 31, 2024 , the primary drivers of the allowance model calculation were loan growth, macroeconomic variables, prepayment speeds, qualitative factors for distressed industries, the current rate environment and changes in risk grading. The forecast was based upon a probability weighted approach which is designed to incorporate loss projections from a baseline, upside and downside economy. Due to the nonlinearity of credit losses to the economy, the asymmetry is best captured by evaluating multiple economic scenarios through a probability weighted approach. At quarter-end, national unemployment was projected to be 4.3 %, and subsequently increase to an average of 4.7 % over the remainder of the forecast period. In addition to the quantitative and qualitative changes noted above, the allowance is reflective of $ 5.9 million in net charge-offs recorded during the first quarter of 2024. Accrued interest receivable for loans was $ 63.2 million and $ 62.2 million at March 31, 2024 and December 31, 2023 , respectively. Wesbanco made an accounting policy election to exclude accrued interest from the measurement of the allowance for credit losses because the Company has a policy in place to reverse or write-off accrued interest when loans are placed on non-accrual. However, Wesbanco does have a $ 0.1 million reserve on the accrued interest related to loan modifications allowed under the Coronavirus Aid, Relief and Economic Security ("CARES") Act due to the timing and nature of these modifications. Accrued interest related to COVID-19 loan modifications as permitted under the CARES Act was $ 15.1 million and $ 15.6 million at March 31, 2024 and December 31, 2023, respectively. The following tables summarize changes in the allowance for credit losses applicable to each category of the loan portfolio: Allowance for Credit Losses By Category For the Three Months Ended March 31, 2024 and 2023 (unaudited, in thousands) Commercial Commercial Commercial Residential Home Consumer Deposit Total Balance at December 31, 2023 Allowance for credit $ 7,123 $ 59,351 $ 36,644 $ 21,218 $ 1,017 $ 3,956 $ 1,366 $ 130,675 Allowance for credit 6,894 — 429 1,276 5 — — 8,604 Total beginning allowance for credit 14,017 59,351 37,073 22,494 1,022 3,956 1,366 139,279 Provision for credit losses: Provision for loan losses 858 ( 3,621 ) 5,806 650 25 538 194 4,450 Provision for loan commitments ( 568 ) — 124 9 6 — — ( 429 ) Total provision for credit 290 ( 3,621 ) 5,930 659 31 538 194 4,021 Charge-offs ( 813 ) ( 58 ) ( 4,810 ) ( 135 ) ( 216 ) ( 1,098 ) ( 453 ) ( 7,583 ) Recoveries — 432 401 34 198 455 128 1,648 Net (charge-offs) recoveries ( 813 ) 374 ( 4,409 ) ( 101 ) ( 18 ) ( 643 ) ( 325 ) ( 5,935 ) Balance at March 31, 2024 Allowance for credit 7,168 56,104 38,041 21,767 1,024 3,851 1,235 129,190 Allowance for credit 6,326 — 553 1,285 11 — — 8,175 Total ending allowance for credit $ 13,494 $ 56,104 $ 38,594 $ 23,052 $ 1,035 $ 3,851 $ 1,235 $ 137,365 Balance at December 31, 2022 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 beginning allowance for credit 12,762 52,659 31,540 20,423 4,362 3,127 1,285 126,158 Provision for credit losses: Provision for loan losses ( 1,440 ) 2,508 ( 2,783 ) 4,407 141 97 ( 103 ) 2,827 Provision for loan commitments ( 51 ) — 797 ( 10 ) 23 — — 759 Total provision for credit ( 1,491 ) 2,508 ( 1,986 ) 4,397 164 97 ( 103 ) 3,586 Charge-offs ( 222 ) ( 1,355 ) ( 320 ) 13 ( 258 ) ( 776 ) ( 401 ) ( 3,319 ) Recoveries 73 276 134 75 80 622 140 1,400 Net (charge-offs) recoveries ( 149 ) ( 1,079 ) ( 186 ) 88 ( 178 ) ( 154 ) ( 261 ) ( 1,919 ) Balance at March 31, 2023 Allowance for credit 5,148 54,088 28,571 22,703 4,197 3,070 921 118,698 Allowance for credit 5,974 — 797 2,205 151 — — 9,127 Total ending allowance for credit $ 11,122 $ 54,088 $ 29,368 $ 24,908 $ 4,348 $ 3,070 $ 921 $ 127,825 (1) Deposit overdrafts of $ 4.1 million and $ 3.6 million are included in total portfolio loans for the periods ending March 31, 2024 and March 31, 2023, respectively. (2) The total provision for credit losses - loans and loan commitments is reported in the consolidated statements of income in the provision for credit losses line item, which also includes the provision for credit losses on held-to-maturity securities. For more information on the provision relating to held-to-maturity securities, please see Note 3, "Securities." 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 (unaudited, in thousands) Commercial Commercial Commercial Residential Home Consumer Deposit Total March 31, 2024 Allowance for credit losses: Loans individually-evaluated $ — $ 5,591 $ — $ — $ — $ — $ — $ 5,591 Loans collectively-evaluated 7,168 50,513 38,041 21,767 1,024 3,851 1,235 123,599 Loan commitments (2) 6,326 — 553 1,285 11 — — 8,175 Total allowance for credit $ 13,494 $ 56,104 $ 38,594 $ 23,052 $ 1,035 $ 3,851 $ 1,235 $ 137,365 Portfolio loans: Individually-evaluated for credit $ — $ 36,701 $ 45 $ — $ — $ — $ — $ 36,746 Collectively-evaluated for credit 1,087,649 5,630,583 1,683,127 2,469,357 740,973 224,732 — 11,836,421 Total portfolio loans $ 1,087,649 $ 5,667,284 $ 1,683,172 $ 2,469,357 $ 740,973 $ 224,732 $ — $ 11,873,167 December 31, 2023 Allowance for credit losses: Loans individually-evaluated $ — $ 5,745 $ — $ — $ — $ — $ — $ 5,745 Loans collectively-evaluated 7,123 53,606 36,644 21,218 1,017 3,956 1,366 124,930 Loan commitments (2) 6,894 — 429 1,276 5 — — 8,604 Total allowance for credit $ 14,017 $ 59,351 $ 37,073 $ 22,494 $ 1,022 $ 3,956 $ 1,366 $ 139,279 Portfolio loans: Individually-evaluated for credit $ — $ 36,929 $ 116 $ — $ — $ — $ — $ 37,045 Collectively-evaluated for credit 1,055,865 5,472,654 1,670,543 2,438,574 734,219 229,561 — 11,601,416 Total portfolio loans $ 1,055,865 $ 5,509,583 $ 1,670,659 $ 2,438,574 $ 734,219 $ 229,561 $ — $ 11,638,461 (1) Deposit overdrafts of $ 4.1 million and $ 4.7 million are included in total portfolio loans for the periods ending March 31, 2024 and December 31, 2023, respectively. (2) For additional detail relating to loan commitments, see Note 11, "Commitments and Contingent Liabilities." Commercial Loan Risk Grades 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. Commercial and industrial (“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, including guarantees. 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 (unaudited, in thousands) Commercial Commercial Commercial Total As of March 31, 2024 Pass $ 1,084,975 $ 5,491,663 $ 1,588,033 $ 8,164,671 Criticized - compromised 2,457 103,648 65,431 171,536 Classified - substandard 217 71,973 29,708 101,898 Classified - doubtful — — — — Total $ 1,087,649 $ 5,667,284 $ 1,683,172 $ 8,438,105 As of December 31, 2023 Pass $ 1,053,359 $ 5,337,394 $ 1,586,683 $ 7,977,436 Criticized - compromised 2,497 107,473 73,204 183,174 Classified - substandard 9 64,716 10,772 75,497 Classified - doubtful — — — — Total $ 1,055,865 $ 5,509,583 $ 1,670,659 $ 8,236,107 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 was $ 21.3 million at March 31, 2024 and $ 20.0 million at December 31, 2023 , of which $ 4.9 million and $ 4.6 million were accruing, for each period, respectively. These loans are not included in the tables above. In addition, $ 62.8 million and $ 21.2 million of unfunded commercial loan commitments are also not included in the tables above at March 31, 2024 and December 31, 2023, respectively. Past Due and Nonperforming Loans The following tables summarize the age analysis of all categories of loans: Age Analysis of Loans (unaudited, in thousands) Current 30-59 60-89 90 Days Total Total 90 Days Due and As of March 31, 2024 Commercial real estate: Land and construction $ 1,087,649 $ — $ — $ — $ — $ 1,087,649 $ — Improved property 5,651,347 2,852 1,226 11,859 15,937 5,667,284 408 Total commercial real estate 6,738,996 2,852 1,226 11,859 15,937 6,754,933 408 Commercial and industrial 1,679,157 1,440 633 1,942 4,015 1,683,172 135 Residential real estate 2,458,403 3,160 478 7,316 10,954 2,469,357 3,151 Home equity 730,521 4,869 2,249 3,334 10,452 740,973 1,223 Consumer 220,302 2,905 1,019 506 4,430 224,732 491 Total portfolio loans 11,827,379 15,226 5,605 24,957 45,788 11,873,167 5,408 Loans held for sale 12,472 — — — — 12,472 — Total loans $ 11,839,851 $ 15,226 $ 5,605 $ 24,957 $ 45,788 $ 11,885,639 $ 5,408 Nonperforming loans included above are as follows: Non-accrual loans $ 11,054 $ 1,612 $ 704 $ 19,549 $ 21,865 $ 32,919 As of December 31, 2023 Commercial real estate: Land and construction $ 1,055,865 $ — $ — $ — $ - $ 1,055,865 $ — Improved property 5,490,946 4,416 3,627 10,594 18,637 5,509,583 1,899 Total commercial real estate 6,546,811 4,416 3,627 10,594 18,637 6,565,448 1,899 Commercial and industrial 1,663,985 640 1,255 4,779 6,674 1,670,659 3,184 Residential real estate 2,429,200 1,572 2,471 5,331 9,374 2,438,574 2,602 Home equity 724,293 4,691 1,198 4,037 9,926 734,219 1,407 Consumer 223,989 3,833 1,178 561 5,572 229,561 546 Total portfolio loans 11,588,278 15,152 9,729 25,302 50,183 11,638,461 9,638 Loans held for sale 16,354 — — — — 16,354 — Total loans $ 11,604,632 $ 15,152 $ 9,729 $ 25,302 $ 50,183 $ 11,654,815 $ 9,638 Nonperforming loans included above are as follows: Non-accrual loans $ 9,138 $ 1,300 $ 706 $ 15,664 $ 17,670 $ 26,808 The following tables summarize nonperforming loans: Nonperforming Loans March 31, 2024 December 31, 2023 Unpaid Unpaid Principal Recorded Related Principal Recorded Related (unaudited, in thousands) Balance (1) Investment Allowance Balance (1) Investment Allowance With no related specific allowance recorded: Commercial real estate: Land and construction $ 1,023 $ 210 $ — $ — $ — $ — Improved property 14,871 13,523 — 11,248 9,557 — Commercial and industrial 3,660 2,765 — 2,492 1,841 — Residential real estate 16,367 11,679 — 15,128 10,582 — Home equity 6,420 4,669 — 6,521 4,777 — Consumer 119 73 — 104 51 — Total nonperforming loans without a specific allowance 42,460 32,919 — 35,493 26,808 — Total nonperforming loans with a specific allowance — — — — — — Total nonperforming loans $ 42,460 $ 32,919 $ — $ 35,493 $ 26,808 $ — (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 Three Months Ended March 31, 2024 March 31, 2023 Average Interest Average Interest Recorded Income Recorded Income (unaudited, in thousands) Investment Recognized Investment Recognized With no related specific allowance recorded: Commercial real estate: Land and construction $ 105 $ — $ 56 $ — Improved property 11,540 — 17,401 — Commercial and industrial 2,303 — 3,161 — Residential real estate 11,131 — 14,447 — Home equity 4,723 — 5,118 — Consumer 62 — 134 — Total nonperforming loans without a specific allowance 29,864 — 40,317 — With a specific allowance recorded: Commercial real estate: Land and construction — — — — Improved property — — — — Total nonperforming loans with a specific allowance — — — — Total nonperforming loans $ 29,864 $ — $ 40,317 $ — The following table presents the recorded investment in non-accrual loans: Non-accrual Loans (1) March 31, December 31, (unaudited, in thousands) 2024 2023 Commercial real estate: Land and construction $ 210 $ — Improved property 13,523 9,557 Total commercial real estate 13,733 9,557 Commercial and industrial 2,765 1,841 Residential real estate 11,679 10,582 Home equity 4,669 4,777 Consumer 73 51 Total $ 32,919 $ 26,808 (1) At March 31, 2024 , there were four borrowers with a loan balance greater than $ 1.0 million, which totaled $ 10.9 million, as compared to two borrowers with a loan balance greater than $ 1.0 million totaling $ 7.2 million at December 31, 2023 . Total non-accrual loans may include loans that are also restructured for borrowers experiencing financial difficulty. Such loans are also set forth in the following tables. Modifications for Borrowers Experiencing Financial Difficulty (following the adoption of ASU 2022-02) Tables in the following section exclude the financial effects of modifications for loans that were paid off or are otherwise no longer in the loan portfolio as of period end. The following table displays the details of portfolio loans that were modified during the three months ended March 31, 2024 and 2023 presented by loan category: For the Three Months Ended March 31, 2024 (unaudited, in thousands) Term Payment Total % of Commercial real estate - land and construction $ — $ — $ — - Commercial real estate - improved property 24,989 — 24,989 0.4 Commercial and industrial — 41 41 0.0 Residential real estate — 579 579 0.0 Home equity — 350 350 0.0 Consumer — 124 124 0.1 Total $ 24,989 $ 1,094 $ 26,083 0.2 For the Three Months Ended March 31, 2023 (unaudited, in thousands) Term Payment Total Percent of Commercial real estate - land and construction $ 6,000 $ — $ 6,000 0.8 Commercial real estate - improved property 3,738 — 3,738 0.1 Commercial and industrial 6,843 — 6,843 0.5 Residential real estate — 101 101 0.0 Home equity 8 283 291 0.0 Consumer — 34 34 0.0 Total $ 16,589 $ 418 $ 17,007 0.2 Unfunded loan commitments on modifications for borrowers experiencing financial difficulty ("MBEFDs") totaled $ 0.7 million for loans modified during the three months ended March 31, 2024 and $ 1.8 million for loans modified during the twelve months ended December 31, 2023 . These commitments are not included in the tables above. The following table summarizes the financial impacts of loan modifications and payment deferrals made to portfolio loans during the three months ended March 31, 2024 and 2023, presented by loan category: For the Three Months Ended March 31, 2024 For the Three Months Ended March 31, 2023 (unaudited, in thousands) Weighted-Average Weighted-Average Commercial real estate - land and construction — 3 Commercial real estate - improved property 9 34 Commercial and industrial — 4 Residential real estate — — Home equity — 120 Consumer — — There have been no MBEFDs which defaulted (defined as 90 days past due) after the loan was modified during the three months ended March 31, 2024 and 2023. The following table presents an aging analysis of portfolio loans by loan category that were modified during the twelve months prior to March 31, 2024. March 31, 2024 (unaudited, in thousands) 30-59 Days 60-89 Days 90 Days Total Current Total Commercial real estate - land and construction $ — $ — $ — $ — $ — $ — Commercial real estate - improved property — — — — 29,041 29,041 Commercial and industrial — — 41 41 8,531 8,572 Residential real estate 37 68 170 275 1,200 1,475 Home equity 14 — 233 247 1,016 1,263 Consumer 39 33 9 81 380 461 Total modified loans (1) $ 90 $ 101 $ 453 $ 644 $ 40,168 $ 40,812 (1) Represents balance at period end. The following tables summarize amortized cost basis loan balances by year of origination and credit quality indicator: Loans As of March 31, 2024 Amortized Cost Basis by Origination Year (unaudited, in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: land and construction Risk rating: Pass $ 24,606 $ 331,376 $ 379,849 $ 152,158 $ 24,478 $ 60,384 $ 62,496 $ 49,628 $ 1,084,975 Criticized - compromised — — — — — 14 280 2,163 2,457 Classified - substandard — 210 — — — 7 — — 217 Classified - doubtful — — — — — — — — — Total $ 24,606 $ 331,586 $ 379,849 $ 152,158 $ 24,478 $ 60,405 $ 62,776 $ 51,791 $ 1,087,649 Current-period gross charge-offs $ — $ 813 $ — $ — $ — $ — $ — $ — $ 813 Commercial real estate: improved property Risk rating: Pass $ 107,508 $ 500,262 $ 1,090,763 $ 576,509 $ 618,834 $ 2,165,451 $ 115,578 $ 316,758 $ 5,491,663 Criticized - compromised — 12,928 11,434 8,319 4,380 39,434 1,697 25,456 103,648 Classified - substandard — 1,906 5,493 776 2,326 61,438 — 34 71,973 Classified - doubtful — — — — — — — — — Total $ 107,508 $ 515,096 $ 1,107,690 $ 585,604 $ 625,540 $ 2,266,323 $ 117,275 $ 342,248 $ 5,667,284 Current-period gross charge-offs $ — $ — $ — $ — $ — $ 58 $ — $ — $ 58 Commercial and industrial Risk rating: Pass $ 60,297 $ 217,013 $ 226,435 $ 135,148 $ 68,852 $ 275,734 $ 546,174 $ 58,380 $ 1,588,033 Criticized - compromised — 1,276 1,174 254 1,387 38,277 15,626 7,437 65,431 Classified - substandard — 405 875 741 239 2,343 24,145 960 29,708 Classified - doubtful — — — — — — — — — Total $ 60,297 $ 218,694 $ 228,484 $ 136,143 $ 70,478 $ 316,354 $ 585,945 $ 66,777 $ 1,683,172 Current-period gross charge-offs $ — $ 274 $ 126 $ — $ 53 $ 325 $ — $ 4,032 $ 4,810 Residential real estate Loan delinquency: Current $ 34,392 $ 278,392 $ 393,426 $ 435,283 $ 182,098 $ 527,391 $ — $ 607,421 $ 2,458,403 30-59 days past due — — — — 339 2,728 — 93 3,160 60-89 days past due — — — — — 478 — — 478 90 days or more past due — — 791 34 168 5,087 — 1,236 7,316 Total $ 34,392 $ 278,392 $ 394,217 $ 435,317 $ 182,605 $ 535,684 $ — $ 608,750 $ 2,469,357 Current-period gross charge-offs $ — $ — $ — $ — $ — $ 77 $ — $ 58 $ 135 Home equity Loan delinquency: Current $ 11,894 $ 993 $ 1,676 $ 1,059 $ 1,840 $ 21,352 $ 689,877 $ 1,830 $ 730,521 30-59 days past due — 59 251 80 57 841 3,425 156 4,869 60-89 days past due — 700 217 — 14 1,308 3 7 2,249 90 days or more past due — — 222 177 657 1,954 — 324 3,334 Total $ 11,894 $ 1,752 $ 2,366 $ 1,316 $ 2,568 $ 25,455 $ 693,305 $ 2,317 $ 740,973 Current-period gross charge-offs $ — $ 20 $ 62 $ — $ 35 $ 72 $ 20 $ 7 $ 216 Consumer Loan delinquency: Current $ 19,019 $ 76,043 $ 52,536 $ 19,109 $ 10,962 $ 18,694 $ 23,939 $ — $ 220,302 30-59 days past due 86 709 950 779 183 193 5 — 2,905 60-89 days past due — 281 519 64 73 82 — — 1,019 90 days or more past due — 156 109 64 70 107 — — 506 Total $ 19,105 $ 77,189 $ 54,114 $ 20,016 $ 11,288 $ 19,076 $ 23,944 $ — $ 224,732 Current-period gross charge-offs $ — $ 189 $ 587 $ 213 $ 52 $ 57 $ — $ — $ 1,098 Loans As of December 31, 2023 Amortized Cost Basis by Origination Year (in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Commercial real estate: land and construction Risk rating: Pass $ 290,954 $ 349,549 $ 145,043 $ 54,172 $ 48,655 $ 35,917 $ 82,288 $ 46,781 $ 1,053,359 Criticized - compromised — — — — — 16 299 2,182 2,497 Classified - substandard — — — — — 9 — — 9 Classified - doubtful — — — — — — — — — Total $ 290,954 $ 349,549 $ 145,043 $ 54,172 $ 48,655 $ 35,942 $ 82,587 $ 48,963 $ 1,055,865 Current-period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ 222 $ 222 Commercial real estate: improved property Risk rating: Pass $ 494,142 $ 1,076,535 $ 603,354 $ 581,540 $ 514,523 $ 1,706,804 $ 103,467 $ 257,029 $ 5,337,394 Criticized - compromised — 16,270 8,630 4,387 5,185 44,861 2,373 25,767 107,473 Classified - substandard 1,921 517 417 2,416 23,472 35,939 — 34 64,716 Classified - doubtful — — — — — — — — — Total $ 496,063 $ 1,093,322 $ 612,401 $ 588,343 $ 543,180 $ 1,787,604 $ 105,840 $ 282,830 $ 5,509,583 Current-period gross charge-offs $ — $ — $ 372 $ — $ — $ 1,505 $ — $ — $ 1,877 Commercial and industrial Risk rating: Pass $ 238,427 $ 234,520 $ 136,998 $ 78,836 $ 39,259 $ 252,826 $ 541,400 $ 64,417 $ 1,586,683 Criticized - compromised 1,094 834 3,169 1,490 7,334 31,526 20,626 7,131 73,204 Classified - substandard 33 149 315 265 825 1,916 5,797 1,472 10,772 Classified - doubtful — — — — — — — — — Total $ 239,554 $ 235,503 $ 140,482 $ 80,591 $ 47,418 $ 286,268 $ 567,823 $ 73,020 $ 1,670,659 Current-period gross charge-offs $ 98 $ 205 $ 603 $ 353 $ 20 $ 463 $ — $ 541 $ 2,283 Residential real estate Loan delinquency: Current $ 277,790 $ 429,835 $ 445,322 $ 185,139 $ 86,149 $ 456,818 $ — $ 548,147 $ 2,429,200 30-59 days past due — — — — — 1,572 — — 1,572 60-89 days past due — — — 341 — 2,130 — — 2,471 90 days or more past due — 799 34 — 263 4,207 — 28 5,331 Total $ 277,790 $ 430,634 $ 445,356 $ 185,480 $ 86,412 $ 464,727 $ — $ 548,175 $ 2,438,574 Current-period gross charge-offs $ — $ — $ — $ — $ 5 $ 387 $ — $ — $ 392 Home equity Loan delinquency: Current $ 12,675 $ 1,235 $ 1,467 $ 1,571 $ 1,614 $ 22,484 $ 681,848 $ 1,399 $ 724,293 30-59 days past due 34 193 85 73 44 947 3,315 — 4,691 60-89 days past due 119 318 16 68 76 524 — 77 1,198 90 days or more past due — 213 — 737 230 2,527 — 330 4,037 Total $ 12,828 $ 1,959 $ 1,568 $ 2,449 $ 1,964 $ 26,482 $ 685,163 $ 1,806 $ 734,219 Current-period gross charge-offs $ — $ 139 $ 57 $ 29 $ 79 $ 615 $ 6 $ — $ 925 Consumer Loan delinquency: Current $ 84,526 $ 57,661 $ 21,592 $ 13,189 $ 10,958 $ 12,143 $ 23,916 $ 4 $ 223,989 30-59 days past due 699 1,526 952 343 162 119 32 — 3,833 60-89 days past due 191 616 195 112 5 59 — — 1,178 90 days or more past due 64 203 114 63 9 108 — — 561 Total $ 85,480 $ 60,006 $ 22,853 $ 13,707 $ 11,134 $ 12,429 $ 23,948 $ 4 $ 229,561 Current-period gross charge-offs $ 251 $ 1,921 $ 901 $ 301 $ 100 $ 247 $ 4 $ — $ 3,725 The following table summarizes other real estate owned and repossessed assets included in other assets: March 31, December 31, (unaudited, in thousands) 2024 2023 Other real estate owned $ 1,210 $ 1,207 Repossessed assets 264 290 Total other real estate owned and repossessed assets $ 1,474 $ 1,497 There were no residential real estate loans included in other real estate owned at both March 31, 2024 and December 31, 2023. At March 31, 2024 and December 31, 2023 , formal foreclosure proceedings were in process on residential real estate loans totaling $ 4.2 million and $ 4.0 million, respectively. |