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, 2023 (dollars in thousands) Real estate - commercial mortgage $ 9,289,770 $ 8,127,728 Commercial and industrial (1) 4,967,796 4,545,552 Real-estate - residential mortgage 6,248,856 5,325,923 Real-estate - home equity 1,120,878 1,047,184 Real-estate - construction 1,463,799 1,239,075 Consumer 692,086 729,318 Leases and other loans (2) 323,112 336,314 Net loans $ 24,106,297 $ 21,351,094 (1) Includes no unearned income at June 30, 2024 and $41.0 thousand at December 31, 2023. (2) Includes unearned income of $36.6 million at June 30, 2024 and $38.0 million at December 31, 2023. Allowance for Credit Losses The ACL consists of reserves against loans that have been 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: June 30, December 31, (dollars in thousands) ACL - loans $ 375,941 $ 293,404 Reserve for OBS credit exposures (1) $ 14,540 $ 17,254 (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 2024 2023 2024 2023 (dollars in thousands) Balance at beginning of period $ 297,888 $ 278,695 $ 293,404 269,366 CECL Day 1 Provision (1) 23,444 — 23,444 — Initial PCD allowance for credit losses 55,906 — 55,906 — Loans charged off (14,007) (4,787) (24,959) (21,690) Recoveries of loans previously charged off 2,705 2,816 5,059 5,715 Net loans (charged off) recovered (11,302) (1,971) (19,900) (15,975) Provision for credit losses (1) (2) 10,005 10,718 23,087 34,051 Balance at end of period $ 375,941 $ 287,442 $ 375,941 $ 287,442 Provision for OBS credit exposures (1) $ (1,393) $ (971) $ (3,550) $ 240 Reserve for OBS credit exposures $ 14,540 $ 16,568 $ 14,540 $ 16,568 (1) The sum of these amounts are reflected in the provision for credit losses in the Consolidated Statements of Income. (2) Provision 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, 2024 March 31, 2024 $ 114,492 $ 76,883 $ 73,216 $ 16,688 $ 12,966 $ 3,643 $ 297,888 CECL Day 1 Provision (1) 6,108 1,484 14,922 444 486 — 23,444 Initial PCD allowance for credit losses 32,157 20,869 565 357 1,958 — 55,906 Loans charged off (7,853) (2,955) (35) (1,766) — (1,398) (14,007) Recoveries of loans previously charged off 146 796 122 1,161 233 247 2,705 Net loans (charged off) recovered (7,707) (2,159) 87 (605) 233 (1,151) (11,302) Provision for loan losses (1) (2) 11,115 (2,454) 924 649 (1,033) 804 10,005 Balance at June 30, 2024 $ 156,165 $ 94,623 $ 89,714 $ 17,533 $ 14,610 $ 3,296 $ 375,941 Three months ended June 30, 2023 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 and lease losses (1) (2) 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 Six months ended June 30, 2024 Balance at December 31, 2023 $ 112,565 $ 74,266 $ 73,286 $ 17,604 $ 12,295 $ 3,388 $ 293,404 CECL Day 1 Provision (1) 6,108 1,484 14,922 444 486 — 23,444 Initial PCD allowance for credit losses 32,157 20,869 565 357 1,958 — 55,906 Loans charged off (7,879) (10,587) (286) (4,004) — (2,203) (24,959) Recoveries of loans previously charged off 298 2,044 238 1,837 233 409 5,059 Net loans (charged off) recovered (7,581) (8,543) (48) (2,167) 233 (1,794) (19,900) Provision for loan losses (1) (2) 12,916 6,547 989 1,295 (362) 1,702 23,087 Balance at June 30, 2024 $ 156,165 $ 94,623 $ 89,714 $ 17,533 $ 14,610 $ 3,296 $ 375,941 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)(2) 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 (1) These amounts are reflected in the provision for credit loss in the Consolidated Statements of Income. (2) Provision included in the table only includes the portion related to net loans. The ACL may include qualitative adjustments intended to capture the impact of uncertainties not reflected in the quantitative models. In determining qualitative adjustments, management considers changes in national, regional, and local economic and business conditions and their impact on the lending environment, including underwriting standards and other factors affecting credit losses over the remaining life of each loan. The increase in the ACL - loans for the second quarter of 2024 and for the six months ended June 30, 2024, was primarily due to loans acquired in the Republic First Transaction. 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. 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, agricultural land, and vacant land. Commercial and industrial loans may also be secured by real estate. All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of June 30, 2024 and December 31, 2023, 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. As of June 30, 2024 and December 31, 2023, approximately 76% and 78%, respectively, 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. Non-accrual Loans The following table presents total non-accrual loans, by class segment: June 30, 2024 December 31, 2023 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 $ 16,295 $ 29,897 $ 46,192 $ 23,338 $ 21,467 $ 44,805 Commercial and industrial 28,693 28,581 57,274 12,410 27,542 39,952 Real estate - residential mortgage 21,436 3,027 24,463 18,806 2,018 20,824 Real estate - home equity 6,249 90 6,339 4,649 104 4,753 Real estate - construction 340 886 1,226 341 1,000 1,341 Consumer 183 — 183 52 — 52 Leases and other loans 601 9,352 9,953 9,255 638 9,893 $ 73,797 $ 71,833 $ 145,630 $ 68,851 $ 52,769 $ 121,620 As of June 30, 2024 and December 31, 2023, there were $71.8 million and $52.8 million, respectively, of non-accrual loans that did not have a specific valuation allowance within the ACL. 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 PD 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, 2024 (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans Amortized Amortized 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis Total Real estate - commercial mortgage Pass $ 309,982 $ 863,950 $ 1,071,750 $ 1,271,714 $ 1,045,978 $ 3,529,987 $ 67,395 $ — $ 8,160,756 Special Mention 1,226 64,073 156,132 221,347 78,390 222,166 10,166 1,531 755,031 Substandard or Lower 216 10,339 60,790 77,874 63,740 159,103 1,921 — 373,983 Total real estate - commercial mortgage 311,424 938,362 1,288,672 1,570,935 1,188,108 3,911,256 79,482 1,531 9,289,770 Real estate - commercial mortgage Current period gross charge-offs — — (84) — — (7,769) — (26) (7,879) Commercial and industrial Pass 226,274 549,429 588,898 324,519 304,830 812,912 1,449,696 16,778 4,273,336 Special Mention 9,518 23,258 46,588 52,606 25,066 98,739 137,793 408 393,976 Substandard or Lower 8,828 3,716 32,980 7,707 8,213 70,004 167,668 1,368 300,484 Total commercial and industrial 244,620 576,403 668,466 384,832 338,109 981,655 1,755,157 18,554 4,967,796 Commercial and industrial Current period gross charge-offs (370) (1,420) (29) (273) (57) (742) (4,061) (3,635) (10,587) Real estate - construction (1) Pass 53,160 458,484 321,727 161,398 6,181 40,431 26,297 — 1,067,678 Special Mention — 14,371 53,362 48,683 3,023 3,226 2,952 1,280 126,897 Substandard or Lower — — 13,116 11,929 — 26,195 142 — 51,382 Total real estate - construction 53,160 472,855 388,205 222,010 9,204 69,852 29,391 1,280 1,245,957 Real estate - construction (1) Current period gross charge-offs — — — — — — — — — Total Pass 589,416 1,871,863 1,982,375 1,757,631 1,356,989 4,383,330 1,543,388 16,778 13,501,770 Special Mention 10,744 101,702 256,082 322,636 106,479 324,131 150,911 3,219 1,275,904 Substandard or Lower 9,044 14,055 106,886 97,510 71,953 255,302 169,731 1,368 725,849 Total $ 609,204 $ 1,987,620 $ 2,345,343 $ 2,177,777 $ 1,535,421 $ 4,962,763 $ 1,864,030 $ 21,365 $ 15,503,523 (1) Excludes real estate - construction - other. The increase of $799.0 million in special mention loans as of June 30, 2024 was primarily due to loans acquired in the Republic First Transaction with a balance of $776.9 million as of June 30, 2024. The increase of $277.8 million in substandard or lower loans as of June 30, 2024 was primarily due to loans acquired in the Republic First Transaction with a balance of $166.5 million as of June 30, 2024. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period: December 31, 2023 (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans Amortized Amortized 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total Real estate - commercial mortgage Pass $ 783,673 $ 993,017 $ 1,203,852 $ 984,958 $ 721,857 $ 2,822,155 $ 59,253 $ 31,636 $ 7,600,401 Special Mention 2,767 43,904 105,185 7,862 35,289 105,786 1,760 — 302,553 Substandard or Lower 366 20,958 31,304 49,142 26,579 95,621 804 — 224,774 Total real estate - commercial mortgage 786,806 1,057,879 1,340,341 1,041,962 783,725 3,023,562 61,817 31,636 8,127,728 Real estate - commercial mortgage Current period gross charge-offs — — — — — (424) — (17,575) (17,999) Commercial and industrial Pass 626,386 590,132 330,576 341,218 272,126 598,838 1,443,203 10,736 4,213,215 Special Mention 7,936 9,548 16,499 3,577 6,817 18,487 72,775 198 135,837 Substandard or Lower 247 25,184 4,611 3,843 18,988 31,663 105,230 6,734 196,500 Total commercial and industrial 634,569 624,864 351,686 348,638 297,931 648,988 1,621,208 17,668 4,545,552 Commercial and industrial Current period gross charge-offs — (299) — — — (249) (682) (8,016) (9,246) Real estate - construction (1) Pass 322,922 258,080 261,583 37,426 9,510 34,097 13,677 — 937,295 Special Mention — 12,622 25,898 — — — — — 38,520 Substandard or Lower — 521 2,229 — 340 21,284 168 2,229 26,771 Total real estate - construction 322,922 271,223 289,710 37,426 9,850 55,381 13,845 2,229 1,002,586 Real estate - construction (1) Current period gross charge-offs — — — — — — — — — Total Pass 1,732,981 1,841,229 1,796,011 1,363,602 1,003,493 3,455,090 1,516,133 42,372 12,750,911 Special Mention 10,703 66,074 147,582 11,439 42,106 124,273 74,535 198 476,910 Substandard or Lower 613 46,663 38,144 52,985 45,907 148,568 106,202 8,963 448,045 Total $ 1,744,297 $ 1,953,966 $ 1,981,737 $ 1,428,026 $ 1,091,506 $ 3,727,931 $ 1,696,870 $ 51,533 $ 13,675,866 (1) 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 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, 2024 (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans Amortized Amortized 2024 2023 2022 2021 2020 Prior Cost Basis Cost Basis Total Real estate - residential mortgage Performing $ 223,893 $ 693,496 $ 1,541,848 $ 1,779,390 $ 1,063,559 $ 905,637 $ — $ — $ 6,207,823 Nonperforming — 1,265 2,259 3,831 4,809 28,869 — — 41,033 Total real estate - residential mortgage 223,893 694,761 1,544,107 1,783,221 1,068,368 934,506 — — 6,248,856 Real estate - residential mortgage Current period gross charge-offs — — — — — (35) — (251) (286) Consumer and real estate - home equity Performing 160,101 136,412 250,006 77,901 56,063 235,923 872,989 11,614 1,801,009 Nonperforming 3 178 1,116 596 283 7,170 1,708 901 11,955 Total consumer and real estate - home equity 160,104 136,590 251,122 78,497 56,346 243,093 874,697 12,515 1,812,964 Consumer and real estate - home equity Current period gross charge-offs (1) (326) (477) (125) (142) (1,096) — (1,837) (4,004) Leases and other loans Performing 77,600 107,668 71,018 22,699 16,005 18,130 — — 313,120 Nonperforming — — 568 72 41 9,311 — — 9,992 Leases and other loans 77,600 107,668 71,586 22,771 16,046 27,441 — — 323,112 Leases and other loans Current period gross charge-offs (585) (559) (159) (193) (63) (343) (125) (176) (2,203) Construction - other Performing 32,808 135,217 42,100 6,311 — — — — 216,436 Nonperforming — — 1,406 — — — — — 1,406 Total construction - other 32,808 135,217 43,506 6,311 — — — — 217,842 Construction - other Current period gross charge-offs — — — — — — — — — Total Performing 494,402 1,072,793 1,904,972 1,886,301 1,135,627 1,159,690 872,989 11,614 8,538,388 Nonperforming 3 1,443 5,349 4,499 5,133 45,350 1,708 901 64,386 Total $ 494,405 $ 1,074,236 $ 1,910,321 $ 1,890,800 $ 1,140,760 $ 1,205,040 $ 874,697 $ 12,515 $ 8,602,774 December 31, 2023 (dollars in thousands) Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans Amortized Amortized 2023 2022 2021 2020 2019 Prior Cost Basis Cost Basis Total Real estate - residential mortgage Performing $ 623,247 $ 1,126,656 $ 1,682,759 $ 984,050 $ 260,049 $ 607,133 $ — $ — $ 5,283,894 Nonperforming — 1,720 4,888 4,701 6,233 24,487 — — 42,029 Total real estate - residential mortgage 623,247 1,128,376 1,687,647 988,751 266,282 631,620 — — 5,325,923 Real estate - residential mortgage Current period gross charge-offs — — — — — — — (62) (62) Consumer and Real estate - home equity Performing 272,571 276,373 85,985 62,426 37,667 204,913 805,645 20,044 1,765,624 Nonperforming 295 455 866 282 354 5,526 1,439 1,661 10,878 Total consumer and real estate - home equity 272,866 276,828 86,851 62,708 38,021 210,439 807,084 21,705 1,776,502 Consumer and Real estate - home equity Current period gross charge-offs (119) — — — — (525) (283) (6,587) (7,514) Leases and other loans Performing 166,490 83,641 27,755 22,304 16,246 9,867 — — 326,303 Nonperforming — 118 — — — 9,893 — — 10,011 Leases and other loans 166,490 83,759 27,755 22,304 16,246 19,760 — — 336,314 Leases and other loans Current period gross charge-offs (471) (521) (246) (128) (82) (656) (765) (1,511) (4,380) Construction - other Performing 127,382 93,319 13,698 555 — — — — 234,954 Nonperforming — 1,535 — — — — — — 1,535 Total construction - other 127,382 94,854 13,698 555 — — — — 236,489 Construction - other Current period gross charge-offs — — — — — — — — — Total Performing 1,189,690 1,579,989 1,810,197 1,069,335 313,962 821,913 805,645 20,044 7,610,775 Nonperforming 295 3,828 5,754 4,983 6,587 39,906 1,439 1,661 64,453 Total $ 1,189,985 $ 1,583,817 $ 1,815,951 $ 1,074,318 $ 320,549 $ 861,819 $ 807,084 $ 21,705 $ 7,675,228 The following table presents non-performing assets: June 30, December 31, (dollars in thousands) Non-accrual loans $ 145,630 $ 121,620 Loans 90 days or more past due and still accruing 26,962 31,721 Total non-performing loans 172,592 153,341 OREO (1) 1,444 896 Total non-performing assets $ 174,036 $ 154,237 (1) Excludes $24.2 million and $10.9 million of residential mortgage properties for which formal foreclosure proceedings were in process as of June 30, 2024 and December 31, 2023, 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, 2024 Real estate - commercial mortgage $ 14,262 $ 1,126 $ 2,422 $ 46,193 $ 9,225,767 $ 9,289,770 Commercial and industrial (1) 12,191 14,984 1,159 57,274 4,882,188 4,967,796 Real estate - residential mortgage 58,454 13,895 16,571 24,462 6,135,474 6,248,856 Real estate - home equity 7,403 1,776 4,880 6,338 1,100,482 1,120,878 Real estate - construction 10,951 749 1,406 1,226 1,449,467 1,463,799 Consumer 7,274 1,767 485 183 682,377 692,086 Leases and other loans (1) 397 80 39 9,954 312,642 323,112 Total $ 110,932 $ 34,377 $ 26,962 $ 145,630 $ 23,788,397 $ 24,106,297 (1) Includes unearned income. 30-59 Days Past 60-89 ≥ 90 Days Non- Current Total (dollars in thousands) December 31, 2023 Real estate - commercial mortgage $ 4,408 $ 1,341 $ 1,722 $ 44,805 $ 8,075,452 $ 8,127,728 Commercial and industrial (1) 5,620 1,656 1,068 39,952 4,497,256 4,545,552 Real estate - residential mortgage 49,145 10,838 21,205 20,824 5,223,911 5,325,923 Real estate - home equity 8,142 2,075 5,326 4,753 1,026,888 1,047,184 Real estate - construction 4,185 451 1,535 1,341 1,231,563 1,239,075 Consumer 8,361 1,767 747 52 718,391 729,318 Leases and other loans (1) 146 722 118 9,893 325,435 336,314 Total $ 80,007 $ 18,850 $ 31,721 $ 121,620 $ 21,098,896 $ 21,351,094 (1) Includes unearned income. Loan Modifications to Borrowers Experiencing Financial Difficulty 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 borrower. When principal forgiveness is provided, the amount of principal forgiven is deemed to be uncollectible and the amortized cost basis of the loan is reduced by the amount of the forgiven portion, with a corresponding reduction to the ACL. The following table presents the amortized cost basis of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted: Term Extension 2024 2023 Amortization Cost Basis % of Class of Financing Receivable Amortization Cost Basis % of Class of Financing Receivable (dollars in thousands) Three months ended June 30 Real estate - commercial mortgage $ 20,603 0.22 % $ 276 — % Commercial and industrial — — — — Real estate - residential mortgage 2,966 0.05 2,045 0.04 Real estate - home equity 129 0.01 — — Total $ 23,698 $ 2,321 Six months ended June 30 Real estate - commercial mortgage $ 20,603 0.22 % $ 1,478 0.02 % Commercial and industrial — — 75 — Real estate - residential mortgage 5,651 0.09 3,423 0.07 Real estate - home equity 129 0.01 — — Real estate - construction 541 0.04 — — Total $ 26,924 $ 4,976 Interest Rate Reduction and Term Extension 2024 2023 Amortized Cost Basis % of Class of Financing Receivable Amortized Cost Basis % of Class of Financing Receivable (dollars in thousands) Three months ended June 30 Real estate - residential mortgage $ 884 0.01 % $ — — % Total $ 884 $ — Six months ended June 30 Real estate - residential mortgage $ 1,348 0.02 % $ — — % Total $ 1,348 $ — The following table presents the financial effect of the modifications made to borrowers experiencing financial difficulty: Term Extension Financial Effect Three months ended June 30, 2024 Real estate - commercial mortgage Added a weighted-average 2.00 years to the life of loans, which reduced monthly payment amounts for the borrowers. Real estate - residential mortgage Added a weighted-average 8.51 years to the life of loans, which reduced monthly payment amounts for the borrowers. Real estate - home equity Added a weighted-average 17.92 years to the life of loans, which reduced monthly payment amounts for borrowers. 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, 2024 Real estate - commercial mortgage Added a weighted-average 2.00 years to the life of loans, which reduced monthly payment amounts for the borrowers. Real estate - residential mortgage Added a weighted-average 7.44 years to the life of loans, which reduced monthly payment amounts for the borrowers. Real estate - home equity Added a weighted-average 17.92 years to the life of loans, which reduced monthly payment amounts for borrowers. Real estate - construction Added a weighted-average 0.67 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. Interest Rate Reduction (1) Financial Effect Three months ended June 30, 2024 Real estate - residential mortgage Reduced weighted-average interest rate from 3.00% to 1.00% Six months ended June 30, 2024 Real estate - residential mortgage Reduced weighted-average interest rate from 2.36% to 1.37% (1) There were no loan modifications with interest rate reductions for the three months and six months ended June 30, 2023. During the three months and six months ended June 30, 2024 and 2023, there were no loans modified due to financial difficulty where there was a principal balance forgiveness. The following table presents the performance of loans that have been modified due to financial difficulty in the previous 12 months: 30-89 90+ Total Days Past Past Due Past Current Due and Accruing Due June 30, 2024 (dollars in thousands) Real estate - commercial mortgage $ 20,603 $ — $ — $ — Commercial and industrial 9,859 — — — Real estate - residential mortgage 8,776 1,977 1,353 3,330 Real estate - home equity 122 7 — 7 Real estate - construction 541 — — — Total $ 39,901 $ 1,984 $ 1,353 $ 3,337 |