Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans and leases, net of unearned income Loans and leases, net of unearned income, are summarized as follows: June 30, December 31, 2022 (dollars in thousands) Real estate - commercial mortgage $ 7,846,861 $ 7,693,835 Commercial and industrial 4,602,446 4,477,537 Real-estate - residential mortgage 5,147,262 4,737,279 Real-estate - home equity 1,061,891 1,102,838 Real-estate - construction 1,308,564 1,269,925 Consumer 763,530 699,179 Leases and other loans 346,015 328,331 Gross loans 21,076,569 20,308,924 Unearned income (31,884) (29,377) Net loans $ 21,044,685 $ 20,279,547 The Corporation segments its loan portfolio by "portfolio segments," as presented in the table above. Certain portfolio segments are further disaggregated by "class segment" for the purpose of estimating credit losses. Allowance for Credit Losses The ACL consists of loans evaluated collectively and individually for expected credit losses. The ACL represents an estimate of expected credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to net loans. The ACL is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries. The reserve for OBS credit exposures includes estimated losses on unfunded loan commitments, letters of credit and other OBS credit exposures. The following table summarizes the ACL - loans balance and the reserve for OBS credit exposures balance as of June 30, 2023 and December 31, 2022: June 30, December 31, (dollars in thousands) ACL - loans $ 287,442 $ 269,366 Reserve for OBS credit exposures (1) $ 16,568 $ 16,328 (1) Included in other liabilities on the consolidated balance sheets. The following table presents the activity in the ACL - loans balances: Three months ended June 30 Six months ended June 30 2023 2022 2023 2022 (dollars in thousands) Balance at beginning of period $ 278,695 $ 243,705 $ 269,366 $ 249,001 Loans charged off (4,787) (1,618) (21,690) (3,518) Recoveries of loans previously charged off 2,816 5,367 5,715 8,321 Net loans (charged off) recovered (1,971) 3,749 (15,975) 4,803 Provision for credit losses (1) 10,718 1,110 34,051 (5,240) Balance at end of period $ 287,442 $ 248,564 $ 287,442 $ 248,564 Provision for OBS credit exposures $ (971) $ 390 $ 240 $ (210) Reserve for OBS credit exposures $ 16,568 $ 14,323 $ 16,568 $ 14,323 (1) Provision included in the table only includes the portion related to net loans. The following table presents the activity in the ACL by portfolio segment: Real Estate Commercial and Real Estate Residential Consumer and Home Real Estate Leases and other loans Total (dollars in thousands) Three months ended June 30, 2023 Balance at March 31, 2023 $ 66,256 $ 77,126 $ 86,209 $ 27,303 $ 11,646 $ 10,155 $ 278,695 Loans charged off (230) (2,017) (62) (1,313) — (1,165) (4,787) Recoveries of loans previously charged off 29 988 58 959 569 213 2,816 Net loans (charged off) recovered (201) (1,029) (4) (354) 569 (952) (1,971) Provision for loan losses (1) 6,247 (908) 2,644 2,033 (1,071) 1,773 10,718 Balance at June 30, 2023 $ 72,302 $ 75,189 $ 88,849 $ 28,982 $ 11,144 $ 10,976 $ 287,442 Three months ended June 30, 2022 Balance at March 31, 2022 $ 79,853 $ 66,511 $ 55,892 $ 20,213 $ 13,303 $ 7,933 $ 243,705 Loans charged off — (201) (66) (877) — (474) (1,618) Recoveries of loans previously charged off 3,536 739 92 762 12 226 5,367 Net loans (charged off) recovered 3,536 538 26 (115) 12 (248) 3,749 Provision for loan and lease losses (1) (10,784) 5,070 5,717 2,982 (2,687) 812 1,110 Balance at June 30, 2022 $ 72,605 $ 72,119 $ 61,635 $ 23,080 $ 10,628 $ 8,497 $ 248,564 Six months ended June 30, 2023 Balance at December 31, 2022 $ 69,456 $ 70,116 $ 83,250 $ 26,429 $ 10,743 $ 9,372 $ 269,366 Loans charged off (13,592) (2,629) (62) (3,519) — (1,888) (21,690) Recoveries of loans previously charged off 815 2,074 106 1,620 771 329 5,715 Net loans (charged off) recovered (12,777) (555) 44 (1,899) 771 (1,559) (15,975) Provision for loan losses (1) 15,623 5,628 5,555 4,452 (370) 3,163 34,051 Balance at June 30, 2023 $ 72,302 $ 75,189 $ 88,849 $ 28,982 $ 11,144 $ 10,976 $ 287,442 Six months ended June 30, 2022 Balance at December 31, 2021 $ 87,970 $ 67,056 $ 54,236 $ 19,749 $ 12,941 $ 7,049 $ 249,001 Loans charged off (152) (428) (66) (1,929) — (943) (3,518) Recoveries of loans previously charged off 3,648 2,719 314 1,216 44 380 8,321 Net loans (charged off) recovered 3,496 2,291 248 (713) 44 (563) 4,803 Provision for loan losses (1) (18,861) 2,772 7,151 4,044 (2,357) 2,011 (5,240) Balance at June 30, 2022 $ 72,605 $ 72,119 $ 61,635 $ 23,080 $ 10,628 $ 8,497 $ 248,564 (1) Provision included in the table only includes the portion related to net loans. The ACL - loans includes qualitative adjustments, as appropriate, intended to capture the impact of uncertainties not reflected in the quantitative models. Qualitative adjustments include and consider changes in national, regional and local economic and business conditions, an assessment of the lending environment, including underwriting standards and other factors affecting credit quality. The provision for credit losses for the second quarter of 2023 was recorded to increase the ACL as a result of loan growth and changes to the macroeconomic outlook. Non-accrual Loans All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of June 30, 2023 and December 31, 2022, substantially all of the Corporation's individually evaluated loans with total commitments greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral, if any. Collateral could be in the form of real estate, in the case of commercial mortgages and construction loans, or business assets, such as accounts receivables or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate. As of June 30, 2023 and December 31, 2022, approximately 91% of loans evaluated individually for impairment with principal balances greater than or equal to $1.0 million, whose primary collateral consisted of real estate, were measured at estimated fair value using appraisals performed by state certified third-party appraisers that had been updated in the preceding 12 months. The following table presents total non-accrual loans, by class segment: June 30, 2023 December 31, 2022 With a Related Allowance Without a Related Allowance Total With a Related Allowance Without a Related Allowance Total (dollars in thousands) Real estate - commercial mortgage $ 19,727 $ 34,088 $ 53,815 $ 39,722 $ 30,439 $ 70,161 Commercial and industrial 17,420 12,068 29,488 14,804 12,312 27,116 Real estate - residential mortgage 19,675 2,025 21,700 25,315 979 26,294 Real estate - home equity 5,711 116 5,827 5,975 130 6,105 Real estate - construction 707 392 1,099 866 502 1,368 Consumer 17 — 17 92 — 92 Leases and other loans 9,264 2,070 11,334 4,052 9,255 13,307 $ 72,521 $ 50,759 $ 123,280 $ 90,826 $ 53,617 $ 144,443 As of June 30, 2023 and December 31, 2022, there were $50.8 million and $53.6 million, respectively, of non-accrual loans that did not have a specific valuation allowance for credit losses. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary. Asset Quality Maintaining an appropriate ACL is dependent on various factors, including the ability to identify potential problem loans in a timely manner. For commercial construction, commercial and industrial, and commercial real estate, an internal risk rating process is used. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk categories is a significant component of the ACL methodology for these loans, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide a separate assessment of risk rating accuracy. Risk ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review assessments identify a deterioration or an improvement in a loan. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the current period: June 30, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans (in thousands) Amortized Amortized 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total Real estate - commercial mortgage Pass $ 436,213 $ 1,014,277 $ 1,079,313 $ 931,445 $ 761,840 $ 3,044,060 $ 98,737 $ 3,912 $ 7,369,797 Special Mention — 17,541 70,283 17,725 38,372 149,434 1,012 — 294,367 Substandard or Lower 202 4,889 25,184 45,196 25,257 81,489 480 — 182,697 Total real estate - commercial mortgage 436,415 1,036,707 1,174,780 994,366 825,469 3,274,983 100,229 3,912 7,846,861 Real estate - commercial mortgage Current period gross charge-offs — — — — — (30) — (13,562) (13,592) Commercial and industrial (1) Pass 461,413 652,086 425,486 365,676 292,754 706,510 1,432,210 9,051 4,345,186 Special Mention 392 16,804 11,786 5,392 3,522 16,458 60,230 748 115,332 Substandard or Lower 205 3,221 1,780 3,063 19,248 29,342 84,059 1,010 141,928 Total commercial and industrial 462,010 672,111 439,052 374,131 315,524 752,310 1,576,499 10,809 4,602,446 Commercial and industrial (1) Current period gross charge-offs — — — — — — (502) (2,127) (2,629) Real estate - construction (2) Pass 103,193 218,294 432,924 127,131 18,815 88,431 17,480 — 1,006,268 Special Mention — 26 262 28,037 — 11,263 — — 39,588 Substandard or Lower — 473 — — 2,202 23,259 2,408 — 28,342 Total real estate - construction 103,193 218,793 433,186 155,168 21,017 122,953 19,888 — 1,074,198 Real estate - construction (2) Current period gross charge-offs — — — — — — — — — Total Pass $ 1,000,819 $ 1,884,657 $ 1,937,723 $ 1,424,252 $ 1,073,409 $ 3,839,001 $ 1,548,427 $ 12,963 $ 12,721,251 Special Mention 392 34,371 82,331 51,154 41,894 177,155 61,242 748 449,287 Substandard or Lower 407 8,583 26,964 48,259 46,707 134,090 86,947 1,010 352,967 Total $ 1,001,618 $ 1,927,611 $ 2,047,018 $ 1,523,665 $ 1,162,010 $ 4,150,246 $ 1,696,616 $ 14,721 $ 13,523,505 (1) Loans originated in 2021 and 2020 include $9.8 million of PPP loans that were assigned a rating of Pass based on the existence of a federal government guaranty through the SBA. (2) Excludes real estate - construction - other. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period: December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans (dollars in thousands) Amortized Amortized 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total Real estate - commercial mortgage Pass $ 1,014,575 $ 1,095,725 $ 969,118 $ 810,850 $ 621,689 $ 2,610,511 $ 80,665 $ 307 $ 7,203,440 Special Mention 95 50,367 23,296 33,735 16,205 181,736 947 — 306,381 Substandard or Lower 1,032 3,039 31,042 38,378 23,112 87,168 243 — 184,014 Total real estate - commercial mortgage 1,015,702 1,149,131 1,023,456 882,963 661,006 2,879,415 81,855 307 7,693,835 Real estate - commercial mortgage Current period gross charge-offs — — — — — (53) — (12,420) (12,473) Commercial and industrial (1) Pass 907,390 449,145 397,881 315,605 185,096 604,352 1,387,961 618 4,248,048 Special Mention 11,405 24,479 3,763 8,147 5,218 24,633 56,048 250 133,943 Substandard or Lower 834 418 4,818 13,044 3,081 22,025 51,077 249 95,546 Total commercial and industrial 919,629 474,042 406,462 336,796 193,395 651,010 1,495,086 1,117 4,477,537 Commercial and industrial (1) Current period gross charge-offs — — (36) — (21) (365) (1,192) (776) (2,390) Real estate - construction (2) Pass 159,195 390,993 243,406 28,539 24,421 93,511 47,271 — 987,336 Special Mention — — — — — 21,603 — — 21,603 Substandard or Lower — — 3,852 2,274 — 4,272 203 — 10,601 Total real estate - construction 159,195 390,993 247,258 30,813 24,421 119,386 47,474 — 1,019,540 Real estate - construction (2) Current period gross charge-offs — — — — — — — — — Total Pass $ 2,081,160 $ 1,935,863 $ 1,610,405 $ 1,154,994 $ 831,206 $ 3,308,374 $ 1,515,897 $ 925 $ 12,438,824 Special Mention 11,500 74,846 27,059 41,882 21,423 227,972 56,995 250 461,927 Substandard or Lower 1,866 3,457 39,712 53,696 26,193 113,465 51,523 249 290,161 Total $ 2,094,526 $ 2,014,166 $ 1,677,176 $ 1,250,572 $ 878,822 $ 3,649,811 $ 1,624,415 $ 1,424 $ 13,190,912 (1) Loans originated in 2021 and 2020 include $20.4 million of PPP loans that were assigned a rating of Pass based on the existence of a federal government guaranty through the SBA. (2) Excludes real estate - construction - other. The Corporation considers the performance of the loan portfolio and its impact on the ACL. The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and leases and other loans. For these loans, the most relevant credit quality indicator is delinquency status and the Corporation evaluates credit quality based on the aging status of the loan. The following tables present the amortized cost of these loans based on payment activity, by origination year, for the periods shown: June 30, 2023 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans (dollars in thousands) Amortized Amortized 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total Real estate - residential mortgage Performing $ 413,908 $ 1,030,693 $ 1,715,214 $ 1,020,426 $ 276,538 $ 651,744 $ — $ — $ 5,108,523 Nonperforming — 658 4,680 4,650 5,239 23,512 — — 38,739 Total real estate - residential mortgage 413,908 1,031,351 1,719,894 1,025,076 281,777 675,256 — — 5,147,262 Real estate - residential mortgage Current period gross charge-offs — — — — — — — (62) (62) Consumer and real estate - home equity Performing 169,479 309,613 94,775 66,026 49,842 284,430 814,043 26,745 1,814,953 Nonperforming 60 403 516 418 66 5,301 1,393 2,311 10,468 Total consumer and real estate - home equity 169,539 310,016 95,291 66,444 49,908 289,731 815,436 29,056 1,825,421 Consumer and real estate - home equity Current period gross charge-offs — — — — — (374) — (3,145) (3,519) Leases and other loans Performing 99,355 94,583 33,981 29,249 22,671 22,958 — — 302,797 Nonperforming — — — — — 11,334 — — 11,334 Leases and other loans 99,355 94,583 33,981 29,249 22,671 34,292 — — 314,131 Leases and other loans Current period gross charge-offs (214) (401) (133) (72) (52) (417) — (599) (1,888) Construction - other Performing 31,781 173,436 25,814 3,335 — — — — 234,366 Nonperforming — — — — — — — — — Total construction - other 31,781 173,436 25,814 3,335 — — — — 234,366 Construction - other Current period gross charge-offs — — — — — — — — — Total Performing $ 714,523 $ 1,608,325 $ 1,869,784 $ 1,119,036 $ 349,051 $ 959,132 $ 814,043 $ 26,745 $ 7,460,639 Nonperforming 60 1,061 5,196 5,068 5,305 40,147 1,393 2,311 60,541 Total $ 714,583 $ 1,609,386 $ 1,874,980 $ 1,124,104 $ 354,356 $ 999,279 $ 815,436 $ 29,056 $ 7,521,180 December 31, 2022 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans (dollars in thousands) Amortized Amortized 2022 2021 2020 2019 2018 Prior Cost Basis Cost Basis Total Real estate - residential mortgage Performing $ 933,903 $ 1,708,703 $ 1,054,126 $ 286,167 $ 87,455 $ 620,416 $ — $ — $ 4,690,770 Nonperforming 1,199 5,104 6,597 6,466 4,587 22,556 — — 46,509 Total real estate - residential mortgage 935,102 1,713,807 1,060,723 292,633 92,042 642,972 — — 4,737,279 Real estate - residential mortgage Current period gross charge-offs — — — — — — — (66) (66) Consumer and Real estate - home equity Performing 416,631 109,724 80,422 52,384 45,642 211,127 842,226 34,061 1,792,217 Nonperforming 292 298 174 36 98 6,512 1,722 668 9,800 Total consumer and real estate - home equity 416,923 110,022 80,596 52,420 45,740 217,639 843,948 34,729 1,802,017 Consumer and Real estate - home equity Current period gross charge-offs — (587) (70) (108) (16) (442) (178) (3,011) (4,412) Construction - other Performing 164,924 73,492 10,892 — 1,077 — — — 250,385 Nonperforming — — — — — — — — — Total construction - other 164,924 73,492 10,892 — 1,077 — — — 250,385 Construction - other Current period gross charge-offs — — — — — — — — — Leases and other loans Performing 146,198 39,427 40,024 29,309 15,019 15,670 — — 285,647 Nonperforming — — — — — 13,307 — — 13,307 Leases and other loans 146,198 39,427 40,024 29,309 15,019 28,977 — — 298,954 Leases and other loans Current period gross charge-offs (506) (167) (140) (80) (47) (1,191) — — (2,131) Total Performing $ 1,661,656 $ 1,931,346 $ 1,185,464 $ 367,860 $ 149,193 $ 847,213 $ 842,226 $ 34,061 $ 7,019,019 Nonperforming 1,491 5,402 6,771 6,502 4,685 42,375 1,722 668 69,616 Total $ 1,663,147 $ 1,936,748 $ 1,192,235 $ 374,362 $ 153,878 $ 889,588 $ 843,948 $ 34,729 $ 7,088,635 The following table presents non-performing assets: June 30, December 31, (dollars in thousands) Non-accrual loans $ 123,280 $ 144,443 Loans 90 days or more past due and still accruing (1) 24,415 27,463 Total non-performing loans 147,695 171,906 OREO (2) 3,881 5,790 Total non-performing assets $ 151,576 $ 177,696 (1) Excludes PPP loans which are fully guaranteed by the federal government of $1.0 million and $7.7 million as of June 30, 2023 and December 31, 2022, respectively. (2) Excludes $8.4 million and $6.0 million of residential mortgage properties for which formal foreclosure proceedings were in process as of June 30, 2023 and December 31, 2022, respectively. The following tables present the aging of the amortized cost basis of loans, by class segment: 30-59 60-89 ≥ 90 Days Days Past Days Past Past Due Non- Due Due and Accruing Accrual Current Total (dollars in thousands) June 30, 2023 Real estate – commercial mortgage $ 6,566 $ 2,671 $ 1,233 $ 53,815 $ 7,782,576 $ 7,846,861 Commercial and industrial (1) 3,542 1,977 1,100 29,488 4,566,339 4,602,446 Real estate – residential mortgage 35,456 6,017 17,457 21,700 5,066,632 5,147,262 Real estate – home equity 5,865 1,567 3,902 5,827 1,044,730 1,061,891 Real estate – construction 1,719 — — 1,099 1,305,746 1,308,564 Consumer 6,482 1,382 723 17 754,926 763,530 Leases and other loans (2) 462 375 — 11,334 301,960 314,131 Total $ 60,092 $ 13,989 $ 24,415 $ 123,280 $ 20,822,909 $ 21,044,685 (1) Excludes delinquent PPP loans 30-59 days past due, 60-89 days past due and 90 days or more past due of $0.1 million, $0.0 million and $1.0 million, respectively, which are fully guaranteed by the federal government and are classified as current. (2) Includes unearned income. 30-59 Days Past 60-89 ≥ 90 Days Non- Current Total (dollars in thousands) December 31, 2022 Real estate – commercial mortgage $ 10,753 $ 4,644 $ 2,473 $ 70,161 $ 7,605,804 $ 7,693,835 Commercial and industrial (1) 6,067 2,289 1,172 27,116 4,440,893 4,477,537 Real estate – residential mortgage 57,061 8,209 20,215 26,294 4,625,500 4,737,279 Real estate – home equity 5,666 2,444 2,704 6,105 1,085,919 1,102,838 Real estate – construction 1,762 1,758 — 1,368 1,265,037 1,269,925 Consumer 6,692 1,339 899 92 690,157 699,179 Leases and other loans (2) 348 122 — 13,307 285,177 298,954 Total $ 88,349 $ 20,805 $ 27,463 $ 144,443 $ 19,998,487 $ 20,279,547 (1) Excludes delinquent PPP loans 30-59 days past due, 60-89 days past due and 90 days or more past due of $0.1 million, $0.7 million and $7.7 million, respectively, which are fully guaranteed by the federal government and are classified as current. (2) Includes unearned income. Collateral-Dependent Loans A loan or a lease, is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans and leases deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, the Corporation records a partial charge-off to reduce the collateral-dependent loan's or lease's carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent loans or leases consists of various types of real estate, including residential properties, commercial properties, such as retail centers, office buildings, and lodging, agriculture land, and vacant land. Loan Modifications On January 1, 2023, the Corporation adopted ASU 2022-02. Loan modifications reported below do not include modifications with insignificant payment delays. ASU 2022-02 lists the following factors when considering if the loan modification has insignificant payment delays: (1) the amount of the restructured payments subject to the delay is insignificant relative to the unpaid principal or collateral value of the debt and will result in an insignificant shortfall in the contractual amount due, and (2) the delay in timing of the restructured payment period is insignificant relative to the frequency of payments due under the debt, the debt’s original contractual maturity or the debt’s original expected duration. The ACL incorporates an estimate of lifetime expected credit losses and is recorded upon asset origination or acquisition. The starting point for the estimate of the ACL is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Corporation uses a probability of default/loss given default model to determine the ACL. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The Corporation modifies loans by providing a concession when deemed appropriate. Depending on the circumstances, a term extension, interest rate reduction or principal forgiveness may be granted. In certain instances a combination of concessions may be provided to a customer. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL, a change to the ACL is generally not recorded upon modification. When principal forgiveness is provided, the amortized cost basis of the forgiven portion of the asset is written off against the ACL. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. The following table presents the amortized cost basis during the three months and six months ended June 30, 2023 of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted: Term Extension Three months ended June 30, 2023 Six months ended June 30, 2023 Amortization Cost Basis % of Class of Financing Receivable Amortization Cost Basis % of Class of Financing Receivable (dollars in thousands) Real estate - commercial mortgage $ 276 — % $ 1,478 0.02 % Commercial and industrial — — 75 — Real estate - residential mortgage 2,045 0.04 3,423 0.07 Total $ 2,321 $ 4,976 The following table presents the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months and six months ended June 30, 2023: Term Extension Financial Effect Three months ended June 30, 2023 Real estate - commercial mortgage Added a weighted-average 1.25 years to the life of loans, which reduced monthly payment amounts for the borrowers. Real estate - residential mortgage Added a weighted-average 5.29 years to the life of loans, which reduced monthly payment amounts for the borrowers. Six months ended June 30, 2023 Real estate - commercial mortgage Added a weighted-average 2.05 years to the life of loans, which reduced monthly payment amounts for the borrowers. Commercial and industrial Added a weighted-average 2.88 years to the life of loans, which reduced monthly payment amounts for the borrowers. Real estate - residential mortgage Added a weighted-average 4.64 years to the life of loans, which reduced monthly payment amounts for the borrowers. During the six months ended June 30, 2023, there were no loans modified due to financial difficulty where there was an interest rate reduction or principal balance forgiveness. During the six months ended June 30, 2023, there were no loans modified due to financial difficulty that defaulted in the six months subsequent to modification. The following table presents the performance of loans that have been modified in the last six months as of June 30, 2023. 30-89 90+ Total Days Past Past Due Past Current Due and Accruing Due (dollars in thousands) Real estate - commercial mortgage $ 1,478 $ — $ — $ — Commercial and industrial 75 — — — Real estate - residential mortgage 3,423 — — — Total $ 4,976 $ — $ — $ — |