| Financing Receivables | Loans and Allowance for Credit Losses Major classifications within the Company’s held for investment loan portfolio at March 31, 2024 and December 31, 2023 are as follows: (In thousands) March 31, 2024 December 31, 2023 Commercial: Business $ 5,994,974 $ 6,019,036 Real estate – construction and land 1,497,647 1,446,764 Real estate – business 3,711,602 3,719,306 Personal Banking: Real estate – personal 3,039,885 3,026,041 Consumer 2,119,308 2,077,723 Revolving home equity 322,523 319,894 Consumer credit card 564,388 589,913 Overdrafts 48,513 6,802 Total loans $ 17,298,840 $ 17,205,479 Accrued interest receivable totaled $72.8 million and $71.9 million at March 31, 2024 and December 31, 2023, respectively, and was included within other assets on the consolidated balance sheets. For the three months ended March 31, 2024, the Company wrote-off accrued interest by reversing interest income of $94 thousand and $1.6 million in the Commercial and Personal Banking portfolios, respectively. Similarly, for the three months ended March 31, 2023, the Company reversed interest income of $34 thousand and $1.1 million in the Commercial and Personal Banking portfolios, respectively. At March 31, 2024, loans of $3.6 billion were pledged at the Federal Home Loan Bank as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $2.9 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings. Allowance for credit losses The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis. For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, various interest rates, unemployment rate, consumer price index (CPI) inflation rate, housing price index (HPI), commercial real estate price index (CREPI) and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast-adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions. Key assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, forecasted macro-economic variables, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at March 31, 2024 and December 31, 2023 are discussed below. Key Assumption March 31, 2024 December 31, 2023 Overall economic forecast • Economic strength is visible in the strong labor market • Fiscal policy is forecasted to be a modest drag on GDP • There are expectations that the Federal Reserve will start cutting rates in 2nd quarter 2024 • The US economy is projected to slow at the start of 2024, but not enter a recession • Impacts of tighter monetary and fiscal policy creates uncertainty • Consumer spending is expected to decrease Reasonable and supportable period and related reversion period • Reasonable and supportable period of one year • Reversion to historical average loss rates within two quarters using a straight-line method • Reasonable and supportable period of one year • Reversion to historical average loss rates within two quarters using a straight-line method Forecasted macro-economic variables • Unemployment rate ranges from 3.9% to 4.1% during the reasonable and supportable forecast period • Real GDP growth ranges from 1.5% to 3.0% • BBB corporate yield from 4.7% to 5.1% • Housing Price Index from 312.1 to 316.6 • Unemployment rate ranges from 4.1% to 4.5% during the reasonable and supportable forecast period • Real GDP growth ranges from .46% to 2.1% • BBB corporate yield from 5.3% to 5.9% • Housing Price Index from 305.4 to 307.4 Prepayment assumptions Commercial loans • pools ranging from 0% to 5% Personal banking loans • Ranging from 6.2% to 21.6% for most loan pools • Consumer credit cards 66.6% Commercial loans • 5% for most loan pools Personal banking loans • Ranging from 6.5% to 23.5% for most loan pools • Consumer credit cards 66.9% Qualitative factors Added qualitative factors related to: • Changes in the composition of the loan portfolios • Certain stressed industries within the portfolio • Certain portfolios sensitive to unusually high rate of inflation and supply chain issues • Loans downgraded to special mention, substandard, or non-accrual status • Certain portfolios where the model assumptions do not capture all identified loss risk Added qualitative factors related to: • Changes in the composition of the loan portfolios • Certain stressed industries within the portfolio • Certain portfolios sensitive to unusually high rate of inflation and supply chain issues • Loans downgraded to special mention, substandard, or non-accrual status The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded. Sensitivity in the Allowance for Credit Loss model The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in the estimate of expected credit losses. The current forecast projects low unemployment and positive GDP. It is expected the Federal Reserve will start cutting rates in the 2nd quarter of 2024. Updated information on inflation and labor market trends could impact the Federal Reserve's decision on the timing and degree of rate reductions. The market's response to these events along with other economic, political, and social developments regionally, nationally, and even globally could significantly modify economic projections used in the estimation of the allowance for credit losses. Potential changes in any one economic variable may or may not affect the overall allowance because a variety of economic variables and inputs are considered in estimating the allowance, and changes in those variables and inputs may not occur at the same rate, may not be consistent across product types, and may have offsetting impacts to other changing variables and inputs. A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments for the three months ended March 31, 2024 and 2023, respectively, follows: For the Three Months Ended March 31, 2024 (In thousands) Commercial Personal Banking Total ALLOWANCE FOR CREDIT LOSSES ON LOANS Balance at beginning of period $ 108,201 $ 54,194 $ 162,395 Provision for credit losses on loans (2,855) 9,802 6,947 Deductions: Loans charged off 316 10,849 11,165 Less recoveries on loans 434 1,854 2,288 Net loan charge-offs (recoveries) (118) 8,995 8,877 Balance March 31, 2024 $ 105,464 $ 55,001 $ 160,465 LIABILITY FOR UNFUNDED LENDING COMMITMENTS Balance at beginning of period $ 23,909 $ 1,337 $ 25,246 Provision for credit losses on unfunded lending commitments (2,273) 113 (2,160) Balance March 31, 2024 $ 21,636 $ 1,450 $ 23,086 ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS $ 127,100 $ 56,451 $ 183,551 For the Three Months Ended March 31, 2023 (In thousands) Commercial Personal Banking Total ALLOWANCE FOR CREDIT LOSSES ON LOANS Balance at beginning of period $ 103,293 $ 46,843 $ 150,136 Provision for credit losses on loans 5,548 10,400 15,948 Deductions: Loans charged off 292 8,756 9,048 Less recoveries on loans 66 2,215 2,281 Net loan charge-offs (recoveries) 226 6,541 6,767 Balance March 31, 2023 $ 108,615 $ 50,702 $ 159,317 LIABILITY FOR UNFUNDED LENDING COMMITMENTS Balance at beginning of period $ 31,743 $ 1,377 $ 33,120 Provision for credit losses on unfunded lending commitments (4,638) 146 (4,492) Balance March 31, 2023 $ 27,105 $ 1,523 $ 28,628 ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS $ 135,720 $ 52,225 $ 187,945 Delinquent and non-accrual loans The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at March 31, 2024 and December 31, 2023. (In thousands) Current or Less Than 30 Days Past Due 30 – 89 Days Past Due 90 Days Past Due and Still Accruing Non-accrual Total March 31, 2024 Commercial: Business $ 5,991,756 $ 1,644 $ 536 $ 1,038 $ 5,994,974 Real estate – construction and land 1,497,325 322 — — 1,497,647 Real estate – business 3,710,321 35 — 1,246 3,711,602 Personal Banking: Real estate – personal 3,015,760 13,911 8,691 1,523 3,039,885 Consumer 2,094,997 21,409 2,902 — 2,119,308 Revolving home equity 318,682 1,432 432 1,977 322,523 Consumer credit card 549,407 7,261 7,720 — 564,388 Overdrafts 48,282 231 — — 48,513 Total $ 17,226,530 $ 46,245 $ 20,281 $ 5,784 $ 17,298,840 December 31, 2023 Commercial: Business $ 5,985,713 $ 29,087 $ 614 $ 3,622 $ 6,019,036 Real estate – construction and land 1,446,764 — — — 1,446,764 Real estate – business 3,714,579 4,582 85 60 3,719,306 Personal Banking: Real estate – personal 2,999,988 14,841 9,559 1,653 3,026,041 Consumer 2,036,353 38,217 3,153 — 2,077,723 Revolving home equity 315,483 1,564 870 1,977 319,894 Consumer credit card 574,805 7,525 7,583 — 589,913 Overdrafts 6,553 249 — — 6,802 Total $ 17,080,238 $ 96,065 $ 21,864 $ 7,312 $ 17,205,479 At March 31, 2024, the Company had $3.7 million in non-accrual loans that had no allowance for credit loss, compared to $4.3 million in non-accrual loans that had no allowance for credit loss at December 31, 2023. The Company did not record any interest income on non-accrual loans during the three months ended March 31, 2024 and 2023, respectively. Credit quality indicators The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information including, but not limited to, current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment. All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Special Mention, Substandard or Non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan. The risk category of loans in the Commercial portfolio as of March 31, 2024 and December 31, 2023 are as follows: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total March 31, 2024 Business Risk Rating: Pass $ 344,128 $ 1,385,556 $ 790,788 $ 506,163 $ 219,920 $ 443,229 $ 2,088,966 $ 5,778,750 Special mention 4,215 8,618 3,448 33,270 531 2,494 34,499 87,075 Substandard 35 16,793 15,722 8,131 20,194 10,792 56,444 128,111 Non-accrual — 48 108 27 — 855 — 1,038 Total Business: $ 348,378 $ 1,411,015 $ 810,066 $ 547,591 $ 240,645 $ 457,370 $ 2,179,909 $ 5,994,974 Gross write-offs for the three months ended March 31, 2024 $ — $ — $ — $ — $ — $ — $ 316 $ 316 Real estate-construction Risk Rating: Pass $ 148,846 $ 421,041 $ 578,146 $ 248,045 $ 44,049 $ 3,224 $ 36,498 $ 1,479,849 Special mention 582 — — — — — — 582 Substandard — — 17,216 — — — — 17,216 Total Real estate-construction: $ 149,428 $ 421,041 $ 595,362 $ 248,045 $ 44,049 $ 3,224 $ 36,498 $ 1,497,647 Gross write-offs for the three months ended March 31, 2024 $ — $ — $ — $ — $ — $ — $ — $ — Real estate-business Risk Rating: Pass $ 125,646 $ 731,463 $ 1,007,351 $ 495,444 $ 436,286 $ 582,000 $ 120,880 $ 3,499,070 Special mention 1,000 35,879 27,599 14,696 1,094 10,356 — 90,624 Substandard — 4,744 15,342 15,088 16,161 69,327 — 120,662 Non-accrual — — 1,204 — — 42 — 1,246 Total Real estate-business: $ 126,646 $ 772,086 $ 1,051,496 $ 525,228 $ 453,541 $ 661,725 $ 120,880 $ 3,711,602 Gross write-offs for the three months ended March 31, 2024 $ — $ — $ — $ — $ — $ — $ — $ — Commercial loans Risk Rating: Pass $ 618,620 $ 2,538,060 $ 2,376,285 $ 1,249,652 $ 700,255 $ 1,028,453 $ 2,246,344 $ 10,757,669 Special mention 5,797 44,497 31,047 47,966 1,625 12,850 34,499 178,281 Substandard 35 21,537 48,280 23,219 36,355 80,119 56,444 265,989 Non-accrual — 48 1,312 27 — 897 — 2,284 Total Commercial loans: $ 624,452 $ 2,604,142 $ 2,456,924 $ 1,320,864 $ 738,235 $ 1,122,319 $ 2,337,287 $ 11,204,223 Gross write-offs for the three months ended March 31, 2024 $ — $ — $ — $ — $ — $ — $ 316 $ 316 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total December 31, 2023 Business Risk Rating: Pass $ 1,609,685 $ 839,511 $ 555,991 $ 273,138 $ 215,988 $ 257,177 $ 2,096,108 $ 5,847,598 Special mention 19,639 3,412 19,489 643 412 2,485 43,054 89,134 Substandard 5,256 8,666 6,891 20,854 1,422 10,235 25,358 78,682 Non-accrual — 130 1,184 — — 2,308 — 3,622 Total Business: $ 1,634,580 $ 851,719 $ 583,555 $ 294,635 $ 217,822 $ 272,205 $ 2,164,520 $ 6,019,036 Gross write-offs for the year ended December 31, 2023 $ — $ 2,260 $ 57 $ 41 $ — $ — $ 1,393 $ 3,751 Real estate-construction Risk Rating: Pass $ 476,489 $ 579,933 $ 295,841 $ 41,418 $ 498 $ 2,834 $ 31,670 $ 1,428,683 Special mention 3,068 15,013 — — — — — 18,081 Total Real estate-construction: $ 479,557 $ 594,946 $ 295,841 $ 41,418 $ 498 $ 2,834 $ 31,670 $ 1,446,764 Gross write-offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ — $ — $ — Real estate- business Risk Rating: Pass $ 807,631 $ 1,063,189 $ 510,397 $ 433,030 $ 311,457 $ 325,738 $ 94,432 $ 3,545,874 Special mention 16,650 8,619 451 884 9,253 733 — 36,590 Substandard 2,952 18,463 27,914 17,430 11,636 58,387 — 136,782 Non-accrual — — — — — 60 — 60 Total Real-estate business: $ 827,233 $ 1,090,271 $ 538,762 $ 451,344 $ 332,346 $ 384,918 $ 94,432 $ 3,719,306 Gross write-offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ 134 $ — $ 134 Commercial loans Risk Rating: Pass $ 2,893,805 $ 2,482,633 $ 1,362,229 $ 747,586 $ 527,943 $ 585,749 $ 2,222,210 $ 10,822,155 Special mention 39,357 27,044 19,940 1,527 9,665 3,218 43,054 143,805 Substandard 8,208 27,129 34,805 38,284 13,058 68,622 25,358 215,464 Non-accrual — 130 1,184 — — 2,368 — 3,682 Total Commercial loans: $ 2,941,370 $ 2,536,936 $ 1,418,158 $ 787,397 $ 550,666 $ 659,957 $ 2,290,622 $ 11,185,106 Gross write-offs for the year ended December 31, 2023 $ — $ 2,260 $ 57 $ 41 $ — $ 134 $ 1,393 $ 3,885 The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of March 31, 2024 and December 31, 2023 below. Term Loans Amortized Cost Basis by Origination Year (In thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total March 31, 2024 Real estate-personal Current to 90 days past due $ 91,591 $ 438,966 $ 443,124 $ 526,377 $ 695,433 $ 825,842 $ 8,338 $ 3,029,671 Over 90 days past due 2,129 353 1,263 1,394 1,387 2,165 — 8,691 Non-accrual — — 227 167 — 1,129 — 1,523 Total Real estate-personal: $ 93,720 $ 439,319 $ 444,614 $ 527,938 $ 696,820 $ 829,136 $ 8,338 $ 3,039,885 Gross write-offs for the three months ended March 31, 2024 $ — $ — $ 33 $ — $ — $ 3 $ — $ 36 Consumer Current to 90 days past due $ 134,876 $ 478,401 $ 310,901 $ 231,786 $ 110,884 $ 91,872 $ 757,686 $ 2,116,406 Over 90 days past due — 255 410 196 79 647 1,315 2,902 Total Consumer: $ 134,876 $ 478,656 $ 311,311 $ 231,982 $ 110,963 $ 92,519 $ 759,001 $ 2,119,308 Gross write-offs for the three months ended March 31, 2024 $ — $ 563 $ 521 $ 438 $ 135 $ 126 $ 695 $ 2,478 Revolving home equity Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 320,114 $ 320,114 Over 90 days past due — — — — — — 432 432 Non-accrual — — — — — — 1,977 $ 1,977 Total Revolving home equity: $ — $ — $ — $ — $ — $ — $ 322,523 $ 322,523 Gross write-offs for the three months ended March 31, 2024 $ — $ — $ — $ — $ — $ — $ — $ — Consumer credit card Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 556,668 $ 556,668 Over 90 days past due — — — — — — 7,720 7,720 Total Consumer credit card: $ — $ — $ — $ — $ — $ — $ 564,388 $ 564,388 Gross write-offs for the three months ended March 31, 2024 $ — $ — $ — $ — $ — $ — $ 7,596 $ 7,596 Overdrafts Current to 90 days past due $ 48,513 $ — $ — $ — $ — $ — $ — $ 48,513 Total Overdrafts: $ 48,513 $ — $ — $ — $ — $ — $ — $ 48,513 Gross write-offs for the three months ended March 31, 2024 $ 739 $ — $ — $ — $ — $ — $ — $ 739 Personal banking loans Current to 90 days past due $ 274,980 $ 917,367 $ 754,025 $ 758,163 $ 806,317 $ 917,714 $ 1,642,806 $ 6,071,372 Over 90 days past due 2,129 608 1,673 1,590 1,466 2,812 9,467 19,745 Non-accrual — — 227 167 — 1,129 1,977 3,500 Total Personal banking loans: $ 277,109 $ 917,975 $ 755,925 $ 759,920 $ 807,783 $ 921,655 $ 1,654,250 $ 6,094,617 Gross write-offs for the three months ended March 31, 2024 $ 739 $ 563 $ 554 $ 438 $ 135 $ 129 $ 8,291 $ 10,849 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total December 31, 2023 Real estate-personal Current to 90 days past due $ 455,703 $ 452,153 $ 533,313 $ 711,442 $ 257,159 $ 596,439 $ 8,620 $ 3,014,829 Over 90 days past due 3,319 1,650 2,222 834 44 1,490 — 9,559 Non-accrual — 261 167 — 157 1,068 — 1,653 Total Real estate-personal: $ 459,022 $ 454,064 $ 535,702 $ 712,276 $ 257,360 $ 598,997 $ 8,620 $ 3,026,041 Gross write-offs for the year ended December 31, 2023 $ — $ 18 $ — $ — $ — $ 23 $ — $ 41 Consumer Current to 90 days past due $ 518,619 $ 340,104 $ 258,348 $ 127,208 $ 56,394 $ 51,302 $ 722,595 $ 2,074,570 Over 90 days past due 391 210 194 24 54 421 1,859 3,153 Total Consumer: $ 519,010 $ 340,314 $ 258,542 $ 127,232 $ 56,448 $ 51,723 $ 724,454 $ 2,077,723 Gross write-offs for the year ended December 31, 2023 $ 926 $ 2,891 $ 1,939 $ 770 $ 376 $ 370 $ 1,051 $ 8,323 Revolving home equity Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 317,047 $ 317,047 Over 90 days past due — — — — — — 870 870 Non-accrual — — — — — — 1,977 $ 1,977 Total Revolving home equity: $ — $ — $ — $ — $ — $ — $ 319,894 $ 319,894 Gross write-offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ — $ 11 $ 11 Consumer credit card Current to 90 days past due $ — $ — $ — $ — $ — $ — $ 582,330 $ 582,330 Over 90 days past due — — — — — — 7,583 7,583 Total Consumer credit card: $ — $ — $ — $ — $ — $ — $ 589,913 $ 589,913 Gross write-offs for the year ended December 31, 2023 $ — $ — $ — $ — $ — $ — $ 24,105 $ 24,105 Overdrafts Current to 90 days past due $ 6,802 $ — $ — $ — $ — $ — $ — $ 6,802 Total Overdrafts: $ 6,802 $ — $ — $ — $ — $ — $ — $ 6,802 Gross write-offs for the year ended December 31, 2023 $ 3,803 $ — $ — $ — $ — $ — $ — $ 3,803 Personal banking loans Current to 90 days past due $ 981,124 $ 792,257 $ 791,661 $ 838,650 $ 313,553 $ 647,741 $ 1,630,592 $ 5,995,578 Over 90 days past due 3,710 1,860 2,416 858 98 1,911 10,312 21,165 Non-accrual — 261 167 — 157 1,068 1,977 3,630 Total Personal banking loans: $ 984,834 $ 794,378 $ 794,244 $ 839,508 $ 313,808 $ 650,720 $ 1,642,881 $ 6,020,373 Gross write-offs for the year ended December 31, 2023 $ 4,729 $ 2,909 $ 1,939 $ 770 $ 376 $ 393 $ 25,167 $ 36,283 Collateral-dependent loans The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of March 31, 2024 and December 31, 2023. (In thousands) Business Assets Real Estate Oil & Gas Assets Total March 31, 2024 Commercial: Real estate - business $ — $ 1,203 $ — $ 1,203 Personal Banking: Revolving home equity — 1,977 — 1,977 Total $ — $ 3,180 $ — $ 3,180 December 31, 2023 Commercial: Business $ 1,183 $ — $ 1,238 $ 2,421 Personal Banking: Revolving home equity — 1,977 — 1,977 Total $ 1,183 $ 1,977 $ 1,238 $ 4,398 Other Personal Banking loan information As noted above, the credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided in the table in the above section on "Credit quality indicators." In addition, FICO scores are obtained and updated on a quarterly basis for most of the loans in the Personal Banking portfolio. This is a published credit score designed to measure the risk of default by taking into account various factors from a borrower's financial history and is considered supplementary information utilized by the Company, as management does not consider this information in evaluating the allowance for credit losses on loans. The Bank normally obtains a FICO score at the loan's origination and renewal dates, and updates are obtained on a quarterly basis. Excluded from the table below are certain personal real estate loans for which FICO scores are not obtained because the loans generally pertain to commercial customer activities and are often underwritten with other collateral considerations. These loans totaled $168.8 million at March 31, 2024 and $168.9 million at December 31, 2023. The table also excludes consumer loans related to the Company's patient healthcare loan program, which totaled $210.4 million at March 31, 2024 and $211.3 million at December 31, 2023. As the healthcare loans are guaranteed by the hospital, customer FICO scores are not obtained for these loans. The personal real estate loans and consumer loans excluded below totaled less than 7% of the Personal Banking portfolio. For the remainder of loans in the Personal Banking portfolio, the table below shows the percentage of balances outstanding at March 31, 2024 and December 31, 2023 by FICO score. Personal Banking Loans % of Loan Category Real Estate - Personal Consumer Revolving Home Equity Consumer Credit Card March 31, 2024 FICO score: Under 600 2.0 % 2.8 % 2.0 % 5.0 % 600 - 659 2.5 4.1 3.3 12.2 660 - 719 8.5 13.0 11.7 30.4 720 - 779 21.6 24.2 22.2 27.0 780 and over 65.4 55.9 60.8 25.4 Total 100.0 % 100.0 % 100.0 % 100.0 % December 31, 2023 FICO score: Under 600 2.0 % 2.5 % 1.9 % 4.7 % 600 - 659 2.3 4.3 3.3 12.1 660 - 719 8.5 12.9 10.9 29.2 720 - 779 21.9 28.2 22.4 27.0 780 and over 65.3 52.1 61.5 27.0 Total 100.0 % 100.0 % 100.0 % 100.0 % Modifications for borrowers experiencing financial difficulty When borrowers are experiencing financial difficulty, the Company may agree to modify the contractual terms of a loan to a borrower in order to assist the borrower in repaying principal and interest owed to the Company. The Company's modifications of loans to borrowers experiencing financial difficulty are generally in the form of term extensions, repayment plans, payment deferrals, forbearance agreements, interest rate reductions, forgiveness of interest and/or fees, or any combination thereof. Commercial loans modified to borrowers experiencing financial difficulty are primarily loans that are substandard or non-accrual, where the maturity date was extended. Modifications on personal real estate loans are primarily those placed on forbearance plans, repayment plans, or deferral plans where monthly payments are suspended for a period of time or past due amounts are paid off over a certain period of time in the future or set up as a balloon payment at maturity. Modifications to certain credit card and other small consumer loans are often modified under debt counseling programs that can reduce the contractual rate or, in certain instances, forgive certain fees and interest charges. Other consumer loans modified to borrowers experiencing financial difficulty consist of various other workout arrangements with consumer customers. The following tables present the amortized cost at March 31, 2024 of loans that were modified during the three months ended March 31, 2024 and the amortized cost of at March 31, 2023 of loans that were modified during the three months ended March 31, 2023. For the Three Months Ended March 31, 2024 (Dollars in thousands) Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category March 31, 2024 Commercial: Business $ 11,648 $ — $ — $ — $ — $ 11,648 0.2 % Real estate – business 17,004 — — — — 17,004 0.5 Personal Banking: Real estate – personal 526 2,706 — — — 3,232 0.1 Consumer — — 31 — — 31 — Consumer credit card — — 945 — — 945 0.2 Total $ 29,178 $ 2,706 $ 976 $ — $ — $ 32,860 0.2 % For the Three Months Ended March 31, 2023 (Dollars in thousands) Term Extension Payment Delay Interest Rate Reduction Interest/Fees Forgiven Other Total % of Total Loan Category March 31, 2023 Commercial: Business $ 3,104 $ — $ — $ — $ — $ 3,104 0.1 % Real estate – business 23,039 — — — — 23,039 0.7 Personal Banking: Real estate – personal — 1,666 — — — 1,666 0.1 Consumer — 58 16 — 55 129 — Consumer credit card — — 618 275 — 893 0.2 Total $ 26,143 $ 1,724 $ 634 $ 275 $ 55 $ 28,831 0.2 % The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical experience on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a change to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are placed on non-accrual status, the Company determines the allowance for credit losses on an individual evaluation, using the same process that it utilizes for other loans on non-accrual status. Modifications made to commercial loans which are not on non-accrual status for borrowers experiencing financial difficulty are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience, and current economic factors. Modifications made to borrowers experiencing financial difficulty for personal banking loans which are not on non-accrual status are collectively evaluated based on loan type, delinquency, historical experience, and current economic factors. If a loan to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the allowance for credit losses continues to be based on individual evaluation, if that loan is already on non-accrual status. For those loans, the allowance for credit losses is estimated using discounted expected cash flows or the fair value of collateral. If an accruing loan made to a borrower experiencing financial difficulty is modified and subsequently deemed uncollectible, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin. The following tables summarize the financial impact of loan modifications and payment deferrals during the three months ended March 31, 2024 and March 31, 2023. Term Extension Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Commercial: Business Extended maturity by a weighted average of 6 months. Extended maturity by a weighted average of 12 months. Real estate – business Extended maturity by a weighted average of 8 months. Extended maturity by a weighted average of 17 months. Personal Banking: Real estate – personal Extended maturity by a weighted average of 6 months. Payment Delay Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Personal Banking: Real estate – personal Deferred certain payments by a weighted average of 8 years. Deferred past due monthly payments to maturity as a balloon payment. Deferral delayed payments a weighted average of 27 years. Consumer Deferred past due monthly payments to maturity as a balloon payment. Deferral delayed payments a weighted average of 11 years Interest Rate Reduction Three Months Ended March 31, 2024 Three Months Ended March |
