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 $6.6 million at December 31, 2023 and $7.4 million at December 31, 2022 and a discount related to purchase accounting fair value adjustments of $3.1 million at December 31, 2023 and $4.5 million at December 31, 2022. The following table summarizes the composition of originated and acquired loans as of the dates presented: (dollars in thousands) December 31, 2023 December 31, 2022 Commercial real estate $ 2,659,135 $ 2,538,839 Commercial and industrial 1,436,183 1,510,392 Commercial construction 350,583 381,963 Business banking 1,360,765 1,205,944 Consumer real estate 1,731,778 1,421,953 Other consumer 114,897 124,878 Total Portfolio Loans $ 7,653,341 $ 7,183,969 Loans held for sale 153 16 Total Loans (1) $ 7,653,494 $ 7,183,985 (1) Excludes interest receivable of $35.3 million at December 31, 2023 and $28.3 million at December 31, 2022. Interest receivable is included in other assets 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: Twelve Months Ended December 31, 2023 (dollars in thousands) Term Extension Term Extension and Interest Rate Reduction Total % of Portfolio Segment Commercial real estate $ 13,836 $ — $ 13,836 0.52 % Commercial industrial 16,877 — 16,877 1.18 % Commercial construction — — — — % Business banking 120 — 120 0.01 % Consumer real estate 61 189 250 0.01 % Total (1) $ 30,894 $ 189 $ 31,083 0.41 % (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: Twelve Months Ended December 31, 2023 Weighted-Average Term Extension (in months) Weighted-Average Interest Rate Reduction Commercial real estate 4 — Commercial industrial 5 — Commercial construction — — Business banking 19 — Consumer real estate 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: December 31, 2023 (dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Commercial real estate $ 13,836 $ — $ — $ — $ 13,836 Commercial industrial 16,468 — — 409 16,877 Commercial construction — — — — — Business banking 120 — — — 120 Consumer real estate 250 — — — 250 Total $ 30,674 $ — $ — $ 409 $ 31,083 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 twelve months ended December 31, 2023. Additionally, we had three commitments to lend an additional $1.6 million to borrowers experiencing financial difficulty that had a modification during 2023. Troubled Debt Restructurings Prior to the adoption of ASU 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures , 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 were returned to accruing status when 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 table presents the TDRs by portfolio segment and type of concession for the periods presented: Twelve Months Ended December 31, 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 2 — 154 — — — 154 203 Consumer real estate 23 1,436 — 610 — — 2,046 2,558 Other consumer 2 11 — — — — 11 15 Total 27 $ 1,447 $ 154 $ 610 $ — $ — $ 2,211 $ 2,776 (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 December 31, 2022, we had 16 commitments to lend an additional $0.4 million on TDRs. Defaulted TDRs were defined as loans having a payment default of 90 days or more after the restructuring takes place that were restructured within the last 12 months prior to defaulting. There were no TDRs that defaulted during 2022. The following table is a summary of nonperforming assets as of the dates presented: Nonperforming Assets (dollars in thousands) December 31, 2023 December 31, 2022 Nonperforming Assets Nonaccrual Loans $ 22,947 $ 19,052 OREO 75 3,065 Total Nonperforming Assets $ 23,022 $ 22,117 The following table presents a summary of the aggregate amount of loans to certain officers and directors of S&T or any affiliates of such persons as of the dates presented: December 31, (dollars in thousands) 2023 2022 Balance at beginning of year $ 4,128 $ 6,157 New loans 936 1,085 Repayments or no longer considered a related party (881) (3,114) Balance at End of Year $ 4,183 $ 4,128 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) CRE, 2) 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: December 31, 2023 Risk Rating (dollars in thousands) 2023 2022 2021 2020 2019 2018 and Prior Revolving Revolving-Term Total Commercial Real Estate Pass $ 276,677 $ 323,463 $ 433,308 $ 237,901 $ 383,799 $ 781,465 $ 32,418 $ — $ 2,469,031 Special mention — 1,006 6,000 — 24,887 75,428 — — 107,321 Substandard — — — 2,355 10,685 69,743 — — 82,783 Doubtful — — — — — — — — — Total Commercial Real Estate 276,677 324,469 439,308 240,256 419,371 926,636 32,418 — 2,659,135 Year-to-date Gross Charge-offs — — — — — 1,706 — — 1,706 Commercial and Industrial Pass 171,672 231,114 185,884 53,101 47,063 183,165 482,490 — 1,354,489 Special mention 189 620 10,242 — — 8,848 4,126 — 24,025 Substandard — 244 14,510 1,595 5,795 1,892 33,633 — 57,669 Doubtful — — — — — — — — — Total Commercial and Industrial 171,861 231,978 210,636 54,696 52,858 193,905 520,249 — 1,436,183 Year-to-date Gross Charge-offs — — — — 3,412 15,842 — — 19,254 Commercial Construction Pass 75,596 154,456 82,313 14,845 151 4,054 14,208 — 345,623 Special mention — — — — — — — — — Substandard — — — — 4,576 384 — — 4,960 Doubtful — — — — — — — — — Total Commercial Construction 75,596 154,456 82,313 14,845 4,727 4,438 14,208 — 350,583 Year-to-date Gross Charge-offs — — — — 451 — — — 451 Business Banking Pass 270,129 262,535 204,874 87,346 96,371 321,360 96,618 523 1,339,756 Special mention — 55 251 224 33 3,508 37 172 4,280 Substandard — 16 2,486 448 3,170 9,898 99 612 16,729 Doubtful — — — — — — — — — Total Business Banking 270,129 262,606 207,611 88,018 99,574 334,766 96,754 1,307 1,360,765 Year-to-date Gross Charge-offs — 67 43 1 88 1,073 34 — 1,306 Consumer Real Estate Pass 311,887 334,879 147,652 101,999 67,402 183,283 551,368 22,206 1,720,676 Special mention — — — — — 189 — — 189 Substandard — 583 198 42 488 6,322 712 2,568 10,913 Doubtful — — — — — — — — — Total Consumer Real Estate 311,887 335,462 147,850 102,041 67,890 189,794 552,080 24,774 1,731,778 Year-to-date Gross Charge-offs — 1 — 5 1 43 75 296 421 Other Consumer Pass 11,286 11,965 6,483 3,842 1,062 526 76,426 3,109 114,699 Special mention — — — — — — — — — Substandard — — 24 5 20 146 — 3 198 Doubtful — — — — — — — — — Total Other Consumer 11,286 11,965 6,507 3,847 1,082 672 76,426 3,112 114,897 Year-to-date Gross Charge-offs 830 146 175 19 37 5 — 288 1,500 Pass 1,117,247 1,318,412 1,060,514 499,034 595,848 1,473,853 1,253,528 25,838 7,344,274 Special mention 189 1,681 16,493 224 24,920 87,973 4,163 172 135,815 Substandard — 843 17,218 4,445 24,734 88,385 34,444 3,183 173,252 Doubtful — — — — — — — — — Total Loan Balance $ 1,117,436 $ 1,320,936 $ 1,094,225 $ 503,703 $ 645,502 $ 1,650,211 $ 1,292,135 $ 29,193 $ 7,653,341 Current Year-to-date Gross Charge-offs $ 830 $ 214 $ 218 $ 25 $ 3,989 $ 18,669 $ 109 $ 584 $ 24,638 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: December 31, 2023 (dollars in thousands) 2023 2022 2021 2020 2019 2018 and Prior Revolving Revolving-Term Total Commercial Real Estate Accrual $ 276,677 $ 324,469 $ 439,308 $ 240,256 $ 419,371 $ 920,316 $ 32,418 $ — $ 2,652,815 Nonaccrual — — — — — 6,320 — — 6,320 Total Commercial Real Estate 276,677 324,469 439,308 240,256 419,371 926,636 32,418 — 2,659,135 Commercial and Industrial Accrual 171,861 231,978 210,636 54,696 52,858 193,257 520,019 — 1,435,305 Nonaccrual — — — — — 648 230 — 878 Total Commercial and Industrial 171,861 231,978 210,636 54,696 52,858 193,905 520,249 — 1,436,183 Commercial Construction Accrual 75,596 154,456 82,313 14,845 151 4,054 14,208 — 345,623 Nonaccrual — — — — 4,576 384 — — 4,960 Total Commercial Construction 75,596 154,456 82,313 14,845 4,727 4,438 14,208 — 350,583 Business Banking Accrual 270,129 262,606 207,611 87,979 99,354 330,902 96,754 1,283 1,356,618 Nonaccrual — — — 39 220 3,864 — 24 4,147 Total Business Banking 270,129 262,606 207,611 88,018 99,574 334,766 96,754 1,307 1,360,765 Consumer Real Estate Accrual 311,887 335,086 147,689 101,518 67,577 186,909 551,858 22,942 1,725,466 Nonaccrual — 376 161 523 313 2,885 222 1,832 6,312 Total Consumer Real Estate 311,887 335,462 147,850 102,041 67,890 189,794 552,080 24,774 1,731,778 Other Consumer Accrual 11,286 11,965 6,499 3,656 1,082 541 76,426 3,112 114,567 Nonaccrual — — 8 191 — 131 — — 330 Total Other Consumer 11,286 11,965 6,507 3,847 1,082 672 76,426 3,112 114,897 Accrual 1,117,436 1,320,560 1,094,056 502,950 640,393 1,635,979 1,291,683 27,337 7,630,394 Nonaccrual — 376 169 753 5,109 14,232 452 1,856 22,947 Total Loan Balance $ 1,117,436 $ 1,320,936 $ 1,094,225 $ 503,703 $ 645,502 $ 1,650,211 $ 1,292,135 $ 29,193 $ 7,653,341 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: December 31, 2023 (dollars in thousands) Current 30-59 Days 60-89 Days Nonaccrual Total Past Total Loans Commercial real estate $ 2,649,412 $ — $ 3,403 $ 6,320 $ 9,723 $ 2,659,135 Commercial and industrial 1,435,301 4 — 878 882 1,436,183 Commercial construction 345,623 — — 4,960 4,960 350,583 Business banking 1,351,048 3,525 2,045 4,147 9,717 1,360,765 Consumer real estate 1,719,751 3,352 2,363 6,312 12,027 1,731,778 Other consumer 114,138 366 63 330 759 114,897 Total $ 7,615,273 $ 7,247 $ 7,874 $ 22,947 $ 38,068 $ 7,653,341 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: December 31, 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 $ 6,320 $ 5,940 $ 46 Commercial and industrial 283 878 — 38 Commercial construction 384 4,960 4,576 — Business banking 4,490 4,147 — 209 Consumer real estate 6,526 6,312 — 308 Other consumer 269 330 — 2 Total $ 19,052 $ 22,947 $ 10,516 $ 603 (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. The following table presents collateral-dependent loans as of December 31, 2023: December 31, 2023 Type of Collateral (dollars in thousands) Real Estate Business Other Commercial real estate $ 5,940 $ — $ — Commercial and industrial — — — Commercial construction 4,576 — — Business banking — — — Consumer real estate — — — Total $ 10,516 $ — $ — 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: Twelve Months Ended December 31, 2023 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Loans 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) (2,803) 18,366 (648) 1,088 2,493 744 19,240 Charge-offs (1,706) (19,254) (451) (1,306) (421) (1,500) (24,638) Recoveries 967 9,641 2 278 208 360 11,456 Net (Charge-offs)/ Recoveries (739) (9,613) (449) (1,028) (213) (1,140) (13,182) Balance at End of Period $ 37,886 $ 34,538 $ 5,382 $ 12,858 $ 14,663 $ 2,639 $ 107,966 (1) Excludes the provision for credits losses for unfunded commitments. Twelve Months Ended December 31, 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) (9,064) 4,797 908 3,644 3,536 1,538 5,359 Charge-offs (827) (5,797) — (3,314) (304) (1,375) (11,617) Recoveries 619 6,983 1 879 140 400 9,022 Net (Charge-offs)/Recoveries (208) 1,186 1 (2,435) (164) (975) (2,595) Balance at End of Period $ 41,428 $ 25,710 $ 6,264 $ 12,547 $ 12,105 $ 3,286 $ 101,340 (1) Excludes the provision for credits losses for unfunded commitments. |