LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans and Loans Held for Sale Loans are presented net of unearned income. Unearned income consisted of net deferred loan fees and costs of $7.1 million at September 30, 2023 and $7.5 million at December 31, 2022 and a discount related to purchase accounting fair value adjustments of $3.6 million at September 30, 2023 and $4.7 million at December 31, 2022. The following table summarizes the composition of originated and acquired loans as of the dates presented: (dollars in thousands) September 30, 2023 December 31, 2022 Commercial real estate $ 2,591,189 $ 2,538,839 Commercial and industrial 1,424,141 1,510,392 Commercial construction 372,839 381,963 Business banking 1,363,314 1,205,944 Consumer real estate 1,649,056 1,421,953 Other consumer 115,379 124,878 Total Portfolio Loans $ 7,515,918 $ 7,183,969 Loans held for sale 257 16 Total Loans (1) $ 7,516,175 $ 7,183,985 (1) Excludes interest receivable of $34.2 million at September 30, 2023 and $28.3 million at December 31, 2022. Interest receivable is included in other assets in the Consolidated Balance Sheets. Modifications to Borrowers Experiencing Financial Difficulty The following table presents the amortized cost of loans to borrowers experiencing financial difficulty by portfolio segment and type of modification during the periods presented: Three Months Ended September 30, 2023 (dollars in thousands) Term Extension Term Extension and Interest Rate Reduction Total % of Portfolio Segment Commercial real estate $ — $ — $ — — % Commercial industrial 6,347 — 6,347 0.45 % Commercial construction — — — — % Business banking — — — — % Consumer real estate — — — — % Total (1) $ 6,347 $ — $ 6,347 0.08 % (1) Excludes loans that were fully paid off or fully charged-off by period end. Nine Months Ended September 30, 2023 (dollars in thousands) Term Extension Term Extension and Interest Rate Reduction Total % of Portfolio Segment Commercial real estate $ 13,505 $ — $ 13,505 0.52 % Commercial industrial 6,892 — 6,892 0.48 % Commercial construction 1,610 — 1,610 0.43 % Business banking 658 — 658 0.05 % Consumer real estate 62 191 253 0.02 % Total (1) $ 22,727 $ 191 $ 22,918 0.30 % (1) Excludes loans that were fully paid off or fully charged-off by period end. The following table describes the effect of loan modifications made to borrowers experiencing financial difficulty during the periods presented: Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Weighted-Average Weighted-Average Weighted-Average Weighted-Average Commercial real estate 0 — 7 — Commercial industrial 2 — 6 — Commercial construction 0 — 5 — Business banking 0 — 5 — Consumer real estate 0 — 168 2% We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table presents the aging analysis of modifications to borrowers experiencing financial difficulty in the last 12 months as of the date presented: September 30, 2023 (dollars in thousands) Current 30-59 Days 60-89 Days 90+ Days Past Due Total Commercial real estate $ 13,505 $ — $ — $ — $ 13,505 Commercial and industrial 6,447 — — 445 6,892 Commercial construction — 1,610 — — 1,610 Business banking 658 — — — 658 Consumer real estate 191 — 62 — 253 Total $ 20,801 $ 1,610 $ 62 $ 445 $ 22,918 A payment default is defined as a loan having a payment past due 90 days or more after a modification took place. There were no loans that were modified within the last 12 months that had a payment default during the three and nine months ended September 30, 2023. Additionally, we had one commitment to lend an additional $0.2 million to borrowers experiencing financial difficulty that had a modification during the three and nine months ended September 30, 2023. The effect of modifications made to borrowers experiencing financial difficulty is already included in the ACL because of the measurement methodologies used to estimate the ACL, therefore, a change to the ACL is generally not recorded upon modification. If principal forgiveness is provided, that portion of the loan will be charged-off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. An assessment of whether the borrower is experiencing financial difficulty is made on the date of a modification. Troubled Debt Restructurings Prior to the adoption of ASU 2022-02, we evaluated all substandard commercial and consumer loans that had experienced a forbearance or modification of existing terms to determine if they should be designated as troubled debt restructurings, or TDRs. TDRs returned to accruing status if the ultimate collectability of all contractual amounts due, according to the restructured agreement, was not in doubt and there was a period of a minimum of six months of satisfactory payment performance by the borrower either immediately before or after the restructuring. There was one $0.2 million TDR returned to accruing status during 2022. The following table summarizes TDRs as of the date presented: December 31, 2022 (dollars in thousands) Accruing Nonaccruing Total Commercial real estate $ — $ — $ — Commercial and industrial 626 — 626 Commercial construction 1,655 — 1,655 Business banking 438 1,087 1,525 Consumer real estate 6,168 1,798 7,966 Other consumer 4 9 13 Total $ 8,891 $ 2,894 $ 11,785 The following tables present the TDRs by portfolio segment and type of concession for the periods presented: Three Months Ended September 30, 2022 Number Type of Modification Total Post-Modification Outstanding Recorded Investment (2) Total Pre-Modification Outstanding Recorded Investment (2) (dollars in thousands) Bankruptcy (1) Other Extend Modify Modify Commercial real estate — $ — $ — $ — $ — $ — $ — $ — Commercial industrial — — — — — — — — Commercial construction — — — — — — — — Business banking — — — — — — — — Consumer real estate 6 172 — — — — 172 173 Other consumer 1 9 — — — — 9 12 Total 7 $ 181 $ — $ — $ — $ — $ 181 $ 185 (1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. Nine Months Ended September 30, 2022 Number Type of Modification Total Post-Modification Outstanding Recorded Investment (2) Total Pre-Modification Outstanding Recorded Investment (2) (dollars in thousands) Bankruptcy (1) Other Extend Modify Modify Commercial real estate — $ — $ — $ — $ — $ — $ — $ — Commercial industrial — — — — — — — — Commercial construction — — — — — — — — Business banking — — — — — — — — Consumer real estate 21 1,204 — 862 — — 2,066 2,530 Other consumer 2 11 — — — — 11 15 Total 23 $ 1,215 $ — $ 862 $ — $ — $ 2,077 $ 2,545 (1) Bankruptcy is consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. (2) Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. As of September 30, 2022, we had 16 commitments to lend an additional $0.4 million on TDRs. Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring took place that were restructured within the last 12 months prior to defaulting. There was one TDR totaling $0.1 million that defaulted during the three months ended September 30, 2022 and two TDRs totaling $0.2 million that defaulted during the nine months ended September 30, 2022. The following table is a summary of nonperforming assets as of the dates presented: Nonperforming Assets (dollars in thousands) September 30, 2023 December 31, 2022 Nonperforming Assets Nonaccrual Loans $ 12,677 $ 19,052 OREO 3,715 3,065 Total Nonperforming Assets $ 16,392 $ 22,117 Allowance for Credit Losses We maintain an ACL at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) Commercial Real Estate, or CRE, 2) Commercial and Industrial, or C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer. The following are key risks within each portfolio segment: CRE —Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee, if the project is not owner-occupied. C&I —Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the company is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. Commercial Construction —Loans made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While these loans are generally confined to the construction/development period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer. Business Banking —Commercial purpose loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. The business banking portfolio is monitored by utilizing a standard and closely managed process focusing on behavioral and performance criteria. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and business. Consumer Real Estate —Loans secured by first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt. Other Consumer —Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, unsecured loans and lines of credit. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values. Management monitors various credit quality indicators for the commercial, business banking and consumer loan portfolios, including changes in risk ratings, nonperforming status and delinquency on a monthly basis. We monitor the commercial loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans within the pass rating generally have a lower risk of loss than loans risk rated as special mention or substandard. Our risk ratings are consistent with regulatory guidance and are as follows: Pass —The loan is currently performing and is of high quality. Special Mention —A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date. Substandard —A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified doubtful 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. The following tables present loan balances by year of origination and internally assigned risk rating for our portfolio segments as of the dates presented: September 30, 2023 Risk Rating (dollars in thousands) 2023 2022 2021 2020 2019 2018 and Prior Revolving Revolving-Term Total Commercial Real Estate Pass $ 221,775 $ 268,261 $ 416,345 $ 242,965 $ 377,358 $ 785,748 $ 35,469 $ — $ 2,347,921 Special mention — — 6,000 1,107 38,236 106,995 — — 152,338 Substandard — — — 1,267 10,776 78,887 — — 90,930 Doubtful — — — — — — — — — Total Commercial Real Estate 221,775 268,261 422,345 245,339 426,370 971,630 35,469 — 2,591,189 Year-to-date Gross Charge-offs — — — — — — — — — Commercial and Industrial Pass 143,170 234,153 199,719 56,549 53,214 173,188 478,363 — 1,338,356 Special mention — 651 11,698 1,689 — 8,461 15,359 — 37,858 Substandard — 254 13,476 — 6,059 2,691 25,447 — 47,927 Doubtful — — — — — — — — — Total Commercial and Industrial 143,170 235,058 224,893 58,238 59,273 184,340 519,169 — 1,424,141 Year-to-date Gross Charge-offs — — — — 3,412 11,808 3,033 — 18,253 Commercial Construction Pass 44,519 188,037 97,525 13,266 2,575 4,368 12,475 — 362,765 Special mention — — — — — — — — — Substandard — — — — 8,240 1,834 — — 10,074 Doubtful — — — — — — — — — Total Commercial Construction 44,519 188,037 97,525 13,266 10,815 6,202 12,475 — 372,839 Year-to-date Gross Charge-offs — — — — — — — — — Business Banking Pass 230,663 270,093 213,953 90,386 99,541 337,456 98,434 781 1,341,307 Special mention — — 263 227 — 3,307 37 179 4,013 Substandard — 17 2,513 554 3,220 10,706 114 870 17,994 Doubtful — — — — — — — — — Total Business Banking 230,663 270,110 216,729 91,167 102,761 351,469 98,585 1,830 1,363,314 Year-to-date Gross Charge-offs — 67 43 1 88 1,018 35 — 1,252 Consumer Real Estate Pass 225,529 326,499 149,042 101,799 67,478 192,173 553,737 22,393 1,638,650 Special mention — — — — — 116 — — 116 Substandard — 208 200 139 506 6,186 610 2,441 10,290 Doubtful — — — — — — — — — Total Consumer Real Estate 225,529 326,707 149,242 101,938 67,984 198,475 554,347 24,834 1,649,056 Year-to-date Gross Charge-offs — 1 — 5 1 43 75 99 224 Other Consumer Pass 10,284 13,136 7,503 3,483 1,523 728 75,803 2,703 115,163 Special mention — — — — — — — — — Substandard — — 26 4 21 149 — 16 216 Doubtful — — — — — — — — — Total Other Consumer 10,284 13,136 7,529 3,487 1,544 877 75,803 2,719 115,379 Year-to-date Gross Charge-offs 551 116 148 8 28 5 — 173 1,029 Pass 875,940 1,300,179 1,084,087 508,448 601,689 1,493,661 1,254,281 25,877 7,144,162 Special mention — 651 17,961 3,023 38,236 118,879 15,396 179 194,325 Substandard — 479 16,215 1,964 28,822 100,453 26,171 3,327 177,431 Doubtful — — — — — — — — — Total Loan Balance $ 875,940 $ 1,301,309 $ 1,118,263 $ 513,435 $ 668,747 $ 1,712,993 $ 1,295,848 $ 29,383 $ 7,515,918 Current Year-to-date Gross Charge-offs $ 551 $ 184 $ 191 $ 14 $ 3,529 $ 12,874 $ 3,143 $ 272 $ 20,758 December 31, 2022 Risk Rating (dollars in thousands) 2022 2021 2020 2019 2018 2017 and Prior Revolving Revolving-Term Total Commercial Real Estate Pass $ 292,732 $ 360,423 $ 267,743 $ 422,872 $ 227,006 $ 704,600 $ 21,666 $ — $ 2,297,042 Special mention — — — 13,187 20,090 101,112 — — 134,389 Substandard — — 1,306 13,434 14,845 77,823 — — 107,408 Doubtful — — — — — — — — — Total Commercial Real Estate 292,732 360,423 269,049 449,493 261,941 883,535 21,666 — 2,538,839 Commercial and Industrial Pass 253,324 264,012 88,544 63,190 62,874 138,250 559,777 — 1,429,971 Special mention — 25,436 — 5,103 1,885 7,132 19,280 — 58,836 Substandard 372 — — 5,705 1,152 1,891 12,465 — 21,585 Doubtful — — — — — — — — — Total Commercial and Industrial 253,696 289,448 88,544 73,998 65,911 147,273 591,522 — 1,510,392 Commercial Construction Pass 120,655 159,737 40,762 6,338 3,953 2,297 27,284 — 361,026 Special mention — 10,954 — 8,104 — — — — 19,058 Substandard — — — — — 1,879 — — 1,879 Doubtful — — — — — — — — — Total Commercial Construction 120,655 170,691 40,762 14,442 3,953 4,176 27,284 — 381,963 Business Banking Pass 287,520 233,499 87,926 107,819 80,549 276,843 104,354 645 1,179,155 Special mention — 157 146 — 2,790 3,945 793 95 7,926 Substandard 159 67 3,077 1,912 1,550 11,391 124 551 18,831 Doubtful — — — — — 32 — — 32 Total Business Banking 287,679 233,723 91,149 109,731 84,889 292,211 105,271 1,291 1,205,944 Consumer Real Estate Pass 296,900 148,790 91,477 74,155 30,658 191,228 552,994 21,547 1,407,749 Special mention — — — — — 882 — — 882 Substandard 48 213 136 428 1,373 8,059 655 2,410 13,322 Doubtful — — — — — — — — — Total Consumer Real Estate 296,948 149,003 91,613 74,583 32,031 200,169 553,649 23,957 1,421,953 Other Consumer Pass 20,046 10,819 5,427 3,242 1,013 724 82,125 1,404 124,800 Special mention — — — — — — — — — Substandard 8 — — 28 21 — — 21 78 Doubtful — — — — — — — — — Total Other Consumer 20,054 10,819 5,427 3,270 1,034 724 82,125 1,425 124,878 Pass 1,271,177 1,177,280 581,879 677,616 406,053 1,313,942 1,348,200 23,596 6,799,743 Special Mention — 36,547 146 26,394 24,765 113,071 20,073 95 221,091 Substandard 587 280 4,519 21,507 18,941 101,043 13,244 2,982 163,103 Doubtful — — — — — 32 — — 32 Total Loan Balance $ 1,271,764 $ 1,214,107 $ 586,544 $ 725,517 $ 449,759 $ 1,528,088 $ 1,381,517 $ 26,673 $ 7,183,969 We monitor the delinquent status of the commercial and consumer portfolios on a monthly basis. Loans are considered nonaccrual when interest and principal are 90 days or more past due or management has determined that a material deterioration in the borrower’s financial condition exists. The risk of loss is generally highest for nonaccrual loans. The following tables present loan balances by year of origination and accrual and nonaccrual status for our portfolio segments as of the dates presented: September 30, 2023 (dollars in thousands) 2023 2022 2021 2020 2019 2018 and Prior Revolving Revolving-Term Total Commercial Real Estate Accrual $ 221,775 $ 268,261 $ 422,345 $ 245,339 $ 426,370 $ 970,368 $ 35,469 $ — $ 2,589,927 Nonaccrual — — — — — 1,262 — — 1,262 Total Commercial Real Estate 221,775 268,261 422,345 245,339 426,370 971,630 35,469 — 2,591,189 Commercial and Industrial Accrual 143,170 235,058 224,893 58,238 59,273 183,651 518,939 — 1,423,222 Nonaccrual — — — — — 689 230 — 919 Total Commercial and Industrial 143,170 235,058 224,893 58,238 59,273 184,340 519,169 — 1,424,141 Commercial Construction Accrual 44,519 188,037 97,525 13,266 10,815 5,818 12,475 — 372,455 Nonaccrual — — — — — 384 — — 384 Total Commercial Construction 44,519 188,037 97,525 13,266 10,815 6,202 12,475 — 372,839 Business Banking Accrual 230,663 270,110 216,729 91,128 102,469 347,909 98,585 1,711 1,359,304 Nonaccrual — — — 39 292 3,560 — 119 4,010 Total Business Banking 230,663 270,110 216,729 91,167 102,761 351,469 98,585 1,830 1,363,314 Consumer Real Estate Accrual 225,529 326,331 149,205 101,895 67,487 195,678 554,139 23,024 1,643,288 Nonaccrual — 376 37 43 497 2,797 208 1,810 5,768 Total Consumer Real Estate 225,529 326,707 149,242 101,938 67,984 198,475 554,347 24,834 1,649,056 Other Consumer Accrual 10,284 13,136 7,522 3,291 1,544 746 75,803 2,719 115,045 Nonaccrual — — 7 196 — 131 — — 334 Total Other Consumer 10,284 13,136 7,529 3,487 1,544 877 75,803 2,719 115,379 Accrual 875,940 1,300,933 1,118,219 513,157 667,958 1,704,170 1,295,410 27,454 7,503,241 Nonaccrual — 376 44 278 789 8,823 438 1,929 12,677 Total Loan Balance $ 875,940 $ 1,301,309 $ 1,118,263 $ 513,435 $ 668,747 $ 1,712,993 $ 1,295,848 $ 29,383 $ 7,515,918 December 31, 2022 (dollars in thousands) 2022 2021 2020 2019 2018 2017 and Prior Revolving Revolving-Term Total Commercial Real Estate Accrual $ 292,732 $ 360,423 $ 269,049 $ 449,493 $ 261,941 $ 876,435 $ 21,666 $ — $ 2,531,739 Nonaccrual — — — — — 7,100 — — 7,100 Total Commercial Real Estate 292,732 360,423 269,049 449,493 261,941 883,535 21,666 — 2,538,839 Commercial and Industrial Accrual 253,696 289,448 88,544 73,998 65,858 147,273 591,292 — 1,510,109 Nonaccrual — — — — 53 — 230 — 283 Total Commercial and Industrial 253,696 289,448 88,544 73,998 65,911 147,273 591,522 — 1,510,392 Commercial Construction Accrual 120,655 170,691 40,762 14,442 3,953 3,792 27,284 — 381,579 Nonaccrual — — — — — 384 — — 384 Total Commercial Construction 120,655 170,691 40,762 14,442 3,953 4,176 27,284 — 381,963 Business Banking Accrual 287,679 233,656 91,149 109,479 83,689 289,435 105,172 1,195 1,201,454 Nonaccrual — 67 — 252 1,200 2,776 99 96 4,490 Total Business Banking 287,679 233,723 91,149 109,731 84,889 292,211 105,271 1,291 1,205,944 Consumer Real Estate Accrual 296,948 148,868 91,085 73,947 31,646 196,384 553,441 23,108 1,415,427 Nonaccrual — 135 528 636 385 3,785 208 849 6,526 Total Consumer Real Estate 296,948 149,003 91,613 74,583 32,031 200,169 553,649 23,957 1,421,953 Other Consumer Accrual 20,054 10,819 5,303 3,270 1,034 593 82,125 1,411 124,609 Nonaccrual — — 124 — — 131 — 14 269 Total Other Consumer 20,054 10,819 5,427 3,270 1,034 724 82,125 1,425 124,878 Accrual 1,271,764 1,213,905 585,892 724,629 448,121 1,513,912 1,380,980 25,714 7,164,917 Nonaccrual — 202 652 888 1,638 14,176 537 959 19,052 Total Loan Balance $ 1,271,764 $ 1,214,107 $ 586,544 $ 725,517 $ 449,759 $ 1,528,088 $ 1,381,517 $ 26,673 $ 7,183,969 The following tables present the age analysis of past due loans segregated by class of loans as of the dates presented: September 30, 2023 (dollars in thousands) Current 30-59 Days 60-89 Days Nonaccrual Total Past Total Loans Commercial real estate $ 2,589,832 $ — $ 95 $ 1,262 $ 1,357 $ 2,591,189 Commercial and industrial 1,423,222 — — 919 919 1,424,141 Commercial construction 366,269 6,186 — 384 6,570 372,839 Business banking 1,356,627 1,826 851 4,010 6,687 1,363,314 Consumer real estate 1,638,157 2,104 3,027 5,768 10,899 1,649,056 Other consumer 114,792 212 41 334 587 115,379 Total $ 7,488,899 $ 10,328 $ 4,014 $ 12,677 $ 27,019 $ 7,515,918 December 31, 2022 (dollars in thousands) Current 30-59 Days 60-89 Days Nonaccrual Total Past Total Loans Commercial real estate $ 2,523,315 $ 8,424 $ — $ 7,100 $ 15,524 $ 2,538,839 Commercial and industrial 1,505,805 4,304 — 283 4,587 1,510,392 Commercial construction 381,579 — — 384 384 381,963 Business banking 1,199,586 1,583 285 4,490 6,358 1,205,944 Consumer real estate 1,409,907 3,617 1,903 6,526 12,046 1,421,953 Other consumer 124,384 165 60 269 494 124,878 Total $ 7,144,576 $ 18,093 $ 2,248 $ 19,052 $ 39,393 $ 7,183,969 The following tables present loans on nonaccrual status by class of loan for the year-to-date periods presented: September 30, 2023 (dollars in thousands) Beginning of Period Nonaccrual End of Period Nonaccrual Nonaccrual With No Related Allowance Interest Income Recognized on Nonaccrual (1) Commercial real estate $ 7,100 $ 1,262 $ — $ 5 Commercial and industrial 283 919 — 1 Commercial construction 384 384 — — Business banking 4,490 4,010 — 37 Consumer real estate 6,526 5,768 — 93 Other consumer 269 334 — — Total $ 19,052 $ 12,677 $ — $ 136 (1) Represents only cash payments received and applied to interest on nonaccrual loans. December 31, 2022 (dollars in thousands) Beginning of Period Nonaccrual End of Period Nonaccrual Nonaccrual With No Related Allowance Interest Income Recognized on Nonaccrual (1) Commercial real estate $ 31,488 $ 7,100 $ 5,649 $ 580 Commercial and industrial 15,239 283 — 148 Commercial construction 2,471 384 — 171 Business banking 9,641 4,490 933 228 Consumer real estate 7,294 6,526 — 257 Other consumer 158 269 — 1 Total $ 66,291 $ 19,052 $ 6,582 $ 1,385 (1) Represents only cash payments received and applied to interest on nonaccrual loans. There were no collateral-dependent loans as of September 30, 2023. The following table presents collateral-dependent loans by class of loans as of December 31, 2022: December 31, 2022 Type of Collateral (dollars in thousands) Real Estate Business Other Commercial real estate $ 5,649 $ — $ — Commercial and industrial — 626 — Commercial construction 1,655 — — Business banking 260 1,112 154 Consumer real estate 561 — — Total $ 8,125 $ 1,738 $ 154 The following tables present activity in the ACL for the periods presented: Three Months Ended September 30, 2023 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Allowance for credit losses on loans: Balance at beginning of period $ 40,837 $ 28,328 $ 6,739 $ 13,616 $ 13,418 $ 2,819 $ 105,757 Provision for credit losses on loans (1) (1,081) 6,068 93 (15) 896 198 6,159 Charge-offs — (3,033) — (590) (107) (347) (4,077) Recoveries 1 161 — 90 42 73 367 Net Recoveries/(Charge-offs) 1 (2,872) — (500) (65) (274) (3,710) Balance at End of Period $ 39,757 $ 31,524 $ 6,832 $ 13,101 $ 14,249 $ 2,743 $ 108,206 (1) Excludes the provision for credits losses for unfunded commitments. Three Months Ended September 30, 2022 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Allowance for credit losses on loans: Balance at beginning of period $ 45,314 $ 21,516 $ 6,583 $ 12,157 $ 9,673 $ 2,842 $ 98,085 Provision for credit losses on loans (1) (2,997) 3,806 (1,159) 950 1,075 634 2,309 Charge-offs (628) — — (178) (161) (272) (1,239) Recoveries 145 6 — 242 39 97 529 Net (Charge-offs)/Recoveries (483) 6 — 64 (122) (175) (710) Balance at End of Period $ 41,834 $ 25,338 $ 5,424 $ 13,171 $ 10,626 $ 3,301 $ 99,694 (1) Excludes the provision for credit losses for unfunded commitments. Nine Months Ended September 30, 2023 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Allowance for credit losses on loans: Balance at beginning of period $ 41,428 $ 25,710 $ 6,264 $ 12,547 $ 12,105 $ 3,286 $ 101,340 Impact of ASU 2022-02 — 75 215 251 278 (251) 568 Provision for credit losses on loans (1) (2,636) 14,424 351 1,325 1,934 462 15,860 Charge-offs — (18,253) — (1,252) (224) (1,029) (20,758) Recoveries 965 9,568 2 230 156 275 11,196 Net Recoveries/(Charge-offs) 965 (8,685) 2 (1,022) (68) (754) (9,562) Balance at End of Period $ 39,757 $ 31,524 $ 6,832 $ 13,101 $ 14,249 $ 2,743 $ 108,206 (1) Excludes the provision for credits losses for unfunded commitments. Nine Months Ended September 30, 2022 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Allowance for credit losses on loans: Balance at beginning of period $ 50,700 $ 19,727 $ 5,355 $ 11,338 $ 8,733 $ 2,723 $ 98,576 Provision for credit losses on loans (1) (8,471) 4,573 68 3,158 2,083 1,393 2,804 Charge-offs (827) (5,797) — (1,924) (299) (1,052) (9,899) Recoveries 432 6,835 1 599 109 237 8,213 Net (Charge-offs)/Recoveries (395) 1,038 1 (1,325) (190) (815) (1,686) Balance at End of Period $ 41,834 $ 25,338 $ 5,424 $ 13,171 $ 10,626 $ 3,301 $ 99,694 (1) Excludes the provision for credits losses for unfunded commitments. |