Loans and Leases | Loans and Leases The following table summarizes loans and leases by portfolio segment and class: (In thousands) At September 30, At December 31, 2022 Commercial non-mortgage $ 16,508,188 $ 16,392,795 Asset-based 1,632,962 1,821,642 Commercial real estate 13,348,495 12,997,163 Multi-family 7,234,759 6,621,982 Equipment financing 1,431,858 1,628,393 Warehouse lending 118,478 641,976 Commercial portfolio 40,274,740 40,103,951 Residential 8,228,451 7,963,420 Home equity 1,533,046 1,633,107 Other consumer 51,909 63,948 Consumer portfolio 9,813,406 9,660,475 Loans and leases $ 50,088,146 $ 49,764,426 The carrying amount of loans and leases at September 30, 2023, and December 31, 2022, includes net unamortized Non-Accrual and Past Due Loans and Leases The following tables summarize the aging of accrual and non-accrual loans and leases by class: At September 30, 2023 (In thousands) 30-59 Days 60-89 Days 90 or More Days Past Due Non-accrual Total Past Due and Non-accrual Current (1) Total Loans Commercial non-mortgage $ 4,209 $ 1,551 $ 138 $ 110,891 $ 116,789 $ 16,391,399 $ 16,508,188 Asset-based — — — 10,325 10,325 1,622,637 1,632,962 Commercial real estate 1,404 — — 25,376 26,780 13,321,715 13,348,495 Multi-family 2,103 155 — 5,726 7,984 7,226,775 7,234,759 Equipment financing 32,271 765 — 7,972 41,008 1,390,850 1,431,858 Warehouse lending — — — — — 118,478 118,478 Commercial portfolio 39,987 2,471 138 160,290 202,886 40,071,854 40,274,740 Residential 12,920 3,329 — 27,623 43,872 8,184,579 8,228,451 Home equity 8,145 3,372 — 26,042 37,559 1,495,487 1,533,046 Other consumer 451 119 — 110 680 51,229 51,909 Consumer portfolio 21,516 6,820 — 53,775 82,111 9,731,295 9,813,406 Total $ 61,503 $ 9,291 $ 138 $ 214,065 $ 284,997 $ 49,803,149 $ 50,088,146 At December 31, 2022 (In thousands) 30-59 Days 60-89 Days 90 or More Days Past Due Non-accrual Total Past Due and Non-accrual Current Total Loans Commercial non-mortgage $ 8,434 $ 821 $ 645 $ 71,884 $ 81,784 $ 16,311,011 $ 16,392,795 Asset-based 5,921 — — 20,024 25,945 1,795,697 1,821,642 Commercial real estate 1,494 23,492 68 39,057 64,111 12,933,052 12,997,163 Multi-family 1,157 — — 636 1,793 6,620,189 6,621,982 Equipment financing 806 9,988 — 12,344 23,138 1,605,255 1,628,393 Warehouse lending — — — — — 641,976 641,976 Commercial portfolio 17,812 34,301 713 143,945 196,771 39,907,180 40,103,951 Residential 8,246 3,083 — 25,424 36,753 7,926,667 7,963,420 Home equity 5,293 2,820 — 27,924 36,037 1,597,070 1,633,107 Other consumer 1,028 85 13 148 1,274 62,674 63,948 Consumer portfolio 14,567 5,988 13 53,496 74,064 9,586,411 9,660,475 Total $ 32,379 $ 40,289 $ 726 $ 197,441 $ 270,835 $ 49,493,591 $ 49,764,426 The following table provides additional information on non-accrual loans and leases: At September 30, 2023 At December 31, 2022 (In thousands) Non-accrual Non-accrual with No Allowance Non-accrual Non-accrual with No Allowance Commercial non-mortgage $ 110,891 $ 19,274 $ 71,884 $ 12,598 Asset-based 10,325 1,330 20,024 1,491 Commercial real estate 25,376 21,084 39,057 90 Multi-family 5,726 5,726 636 — Equipment financing 7,972 1,543 12,344 2,240 Commercial portfolio 160,290 48,957 143,945 16,419 Residential 27,623 11,440 25,424 10,442 Home equity 26,042 13,995 27,924 15,193 Other consumer 110 5 148 5 Consumer portfolio 53,775 25,440 53,496 25,640 Total $ 214,065 $ 74,397 $ 197,441 $ 42,059 Interest income on non-accrual loans and leases that would have been recognized had the loans and leases been current in accordance with their contractual terms totaled $7.8 million and $7.6 million for the three months ended September 30, 2023, and 2022, respectively, and $18.6 million and $14.1 million for the nine months ended September 30, 2023, and 2022, respectively. Allowance for Credit Losses on Loans and Leases The following table summarizes the change in the ACL on loans and leases by portfolio segment: At or for the three months ended September 30, 2023 2022 (In thousands) Commercial Portfolio Consumer Portfolio Total Commercial Portfolio Consumer Portfolio Total ACL on loans and leases: Balance, beginning of period $ 572,653 $ 56,258 $ 628,911 $ 511,745 $ 59,754 $ 571,499 Provision (benefit) 38,908 (3,069) 35,839 34,513 (3,161) 31,352 Charge-offs (27,360) (3,642) (31,002) (31,356) (1,453) (32,809) Recoveries 292 1,398 1,690 1,413 2,870 4,283 Balance, end of period $ 584,493 $ 50,945 $ 635,438 $ 516,315 $ 58,010 $ 574,325 At or for the nine months ended September 30, 2023 2022 (In thousands) Commercial Portfolio Consumer Portfolio Total Commercial Portfolio Consumer Portfolio Total ACL on loans and leases: Balance, beginning of period $ 533,125 $ 61,616 $ 594,741 $ 257,877 $ 43,310 $ 301,187 Adoption of ASU No. 2022-02 7,704 (1,831) 5,873 — — — Initial allowance for PCD loans and leases (1) — — — 78,376 9,669 88,045 Provision (benefit) 116,489 (7,580) 108,909 230,881 1,267 232,148 Charge-offs (75,715) (5,825) (81,540) (61,361) (3,469) (64,830) Recoveries 2,890 4,565 7,455 10,542 7,233 17,775 Balance, end of period $ 584,493 $ 50,945 $ 635,438 $ 516,315 $ 58,010 $ 574,325 Individually evaluated for credit losses 40,756 6,421 47,177 36,394 13,278 49,672 Collectively evaluated for credit losses $ 543,737 $ 44,524 $ 588,261 $ 479,921 $ 44,732 $ 524,653 (1) Represents the establishment of the initial reserve for PCD loans and leases, which is reported net of $48.3 million of day one charge-offs recognized at the date of acquisition in accordance with GAAP. Credit Quality Indicators To measure credit risk for the commercial portfolio, the Company employs a dual grade credit risk grading system for estimating the PD and LGD. The credit risk grade system assigns a rating to each borrower and to the facility, which together form a Composite Credit Risk Profile. The credit risk grade system categorizes borrowers by common financial characteristics that measure the credit strength of borrowers and facilities by common structural characteristics. The Composite Credit Risk Profile has ten grades, with each grade corresponding to a progressively greater risk of loss. Grades (1) to (6) are considered pass ratings, and grades (7) to (10) are considered criticized, as defined by the regulatory agencies. A (7) "Special Mention" rating has a potential weakness that, if left uncorrected, may result in deterioration of the repayment prospects for the asset. A (8) "Substandard" rating has a well-defined weakness that jeopardizes the full repayment of the debt. A (9) "Doubtful" rating has all of the same weaknesses as a substandard asset with the added characteristic that the weakness makes collection or liquidation in full given current facts, conditions, and values improbable. Assets classified as a (10) "Loss" rating are considered uncollectible and are charged-off. Risk ratings, which are assigned to differentiate risk within the portfolio, are reviewed on an ongoing basis and revised to reflect changes in a borrower's current financial position and outlook, risk profile, and the related collateral and structural position. Loan officers review updated financial information or other loan factors on at least an annual basis for all pass rated loans to assess the accuracy of the risk grade. Criticized loans undergo more frequent reviews and enhanced monitoring. To measure credit risk for the consumer portfolio, the most relevant credit characteristic is the FICO score, which is a widely used credit scoring system that ranges from 300 to 850. A lower FICO score is indicative of higher credit risk and a higher FICO score is indicative of lower credit risk. FICO scores are updated on at least a quarterly basis. The following tables summarize the amortized cost basis of commercial loans and leases by Composite Credit Risk Profile grade and origination year: At September 30, 2023 (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial non-mortgage: Risk rating: Pass $ 1,998,598 $ 4,377,097 $ 1,434,709 $ 765,133 $ 630,440 $ 981,671 $ 5,629,505 $ 15,817,153 Special mention 13,863 87,572 75,247 33,537 11,929 18,921 71,822 312,891 Substandard 49,664 114,769 25,383 35,778 44,531 19,772 88,247 378,144 Total commercial non-mortgage 2,062,125 4,579,438 1,535,339 834,448 686,900 1,020,364 5,789,574 16,508,188 Current period gross write-offs 324 2,007 647 511 241 3,782 — 7,512 Asset-based: Risk rating: Pass 11,188 1,223 — 1,374 7,776 43,633 1,395,893 1,461,087 Special mention — — — — — — 75,025 75,025 Substandard — 3,901 — — 1,330 896 90,723 96,850 Total asset-based 11,188 5,124 — 1,374 9,106 44,529 1,561,641 1,632,962 Current period gross write-offs — — — — 13,189 3,000 — 16,189 Commercial real estate: Risk rating: Pass 1,606,944 3,505,510 1,940,429 1,330,879 1,268,342 3,252,414 167,848 13,072,366 Special mention 825 957 8,044 31,549 23,593 51,125 1,204 117,297 Substandard 23,411 17,455 16,681 15,426 37,360 48,499 — 158,832 Total commercial real estate 1,631,180 3,523,922 1,965,154 1,377,854 1,329,295 3,352,038 169,052 13,348,495 Current period gross write-offs 2,590 — 2,574 3,813 2,754 36,575 — 48,306 Multi-family: Risk rating: Pass 1,214,619 1,913,835 1,020,778 419,684 609,830 1,996,593 1 7,175,340 Special mention — — — 9,251 359 36,135 — 45,745 Substandard — — — 368 — 13,306 — 13,674 Total multi-family 1,214,619 1,913,835 1,020,778 429,303 610,189 2,046,034 1 7,234,759 Current period gross write-offs — — — — — 1,033 — 1,033 Equipment financing: Risk rating: Pass 270,568 321,562 268,145 214,395 211,682 76,550 — 1,362,902 Special mention — 1,436 1,589 — 10,642 6,850 — 20,517 Substandard — 5,887 7,020 9,347 13,727 12,458 — 48,439 Total equipment financing 270,568 328,885 276,754 223,742 236,051 95,858 — 1,431,858 Current period gross write-offs — — — 2,634 — 41 — 2,675 Warehouse lending: Risk rating: Pass — — — — — — 118,478 118,478 Total warehouse lending — — — — — — 118,478 118,478 Current period gross write-offs — — — — — — — — Total commercial portfolio $ 5,189,680 $ 10,351,204 $ 4,798,025 $ 2,866,721 $ 2,871,541 $ 6,558,823 $ 7,638,746 $ 40,274,740 Current period gross write-offs $ 2,914 $ 2,007 $ 3,221 $ 6,958 $ 16,184 $ 44,431 $ — $ 75,715 At December 31, 2022 (In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Commercial non-mortgage: Pass $ 5,154,781 $ 1,952,158 $ 965,975 $ 792,977 $ 593,460 $ 780,200 $ 5,670,532 $ 15,910,083 Special mention 104,277 15,598 21,168 263 14,370 7,770 40,142 203,588 Substandard 28,203 11,704 69,954 36,604 70,634 16,852 41,917 275,868 Doubtful — — — 1 — — 3,255 3,256 Total commercial non-mortgage 5,287,261 1,979,460 1,057,097 829,845 678,464 804,822 5,755,846 16,392,795 Asset-based: Pass 19,659 3,901 9,424 14,413 5,163 55,553 1,551,250 1,659,363 Special mention — — — — — — 80,476 80,476 Substandard — — — 1,491 — — 80,312 81,803 Total asset-based 19,659 3,901 9,424 15,904 5,163 55,553 1,712,038 1,821,642 Commercial real estate: Pass 3,420,635 2,246,672 1,556,185 1,605,869 1,058,730 2,681,052 97,832 12,666,975 Special mention 21,878 8,995 7,264 37,570 47,419 66,652 1,000 190,778 Substandard 519 2,459 216 31,163 47,021 57,997 — 139,375 Doubtful — — — 1 — 34 — 35 Total commercial real estate 3,443,032 2,258,126 1,563,665 1,674,603 1,153,170 2,805,735 98,832 12,997,163 Multi-family: Pass 1,992,980 1,057,705 507,065 694,066 444,564 1,748,337 51,655 6,496,372 Special mention 37,677 — — 95 40,307 726 8,838 87,643 Substandard — — 382 — 12,681 24,904 — 37,967 Total multi-family 2,030,657 1,057,705 507,447 694,161 497,552 1,773,967 60,493 6,621,982 Equipment financing: Pass 388,641 345,792 331,419 308,441 98,874 83,264 — 1,556,431 Special mention — 185 — 11,965 6,775 25 — 18,950 Substandard 314 16,711 18,436 5,016 5,307 7,228 — 53,012 Total equipment financing 388,955 362,688 349,855 325,422 110,956 90,517 — 1,628,393 Warehouse lending: Pass — — — — — — 641,976 641,976 Total warehouse lending — — — — — — 641,976 641,976 Total commercial portfolio $ 11,169,564 $ 5,661,880 $ 3,487,488 $ 3,539,935 $ 2,445,305 $ 5,530,594 $ 8,269,185 $ 40,103,951 The following tables summarize the amortized cost basis of consumer loans by FICO score and origination year: At September 30, 2023 (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Residential: Risk rating: 800+ $ 146,015 $ 783,183 $ 1,080,117 $ 439,900 $ 152,423 $ 927,801 $ — $ 3,529,439 740-799 320,705 774,244 788,042 303,391 106,743 683,795 — 2,976,920 670-739 128,325 307,265 304,316 95,158 48,146 336,117 — 1,219,327 580-669 11,714 48,750 50,865 14,916 11,133 122,544 — 259,922 579 and below 1,322 51,996 8,697 189 116,917 63,722 — 242,843 Total residential 608,081 1,965,438 2,232,037 853,554 435,362 2,133,979 — 8,228,451 Current period gross write-offs — — 3 — — 348 — 351 Home equity: Risk rating: 800+ 20,653 27,163 34,930 25,418 7,914 59,074 409,133 584,285 740-799 20,009 22,878 31,037 15,529 5,887 35,482 351,533 482,355 670-739 13,299 15,757 14,689 5,940 3,418 31,292 250,737 335,132 580-669 2,083 3,261 1,875 1,281 1,266 11,419 66,901 88,086 579 and below 544 787 909 895 556 5,909 33,588 43,188 Total home equity 56,588 69,846 83,440 49,063 19,041 143,176 1,111,892 1,533,046 Current period gross write-offs — 3 81 — — 2,312 — 2,396 Other consumer: Risk rating: 800+ 345 434 1,968 336 509 134 21,869 25,595 740-799 1,172 709 565 838 1,102 447 4,144 8,977 670-739 406 588 383 1,143 1,826 154 9,644 14,144 580-669 55 143 123 246 461 67 1,203 2,298 579 and below 59 91 54 11 43 30 607 895 Total other consumer 2,037 1,965 3,093 2,574 3,941 832 37,467 51,909 Current period gross write-offs 2,354 7 3 203 286 225 — 3,078 Total consumer portfolio $ 666,706 $ 2,037,249 $ 2,318,570 $ 905,191 $ 458,344 $ 2,277,987 $ 1,149,359 $ 9,813,406 Current period gross write-offs $ 2,354 $ 10 $ 87 $ 203 $ 286 $ 2,885 $ — $ 5,825 At December 31, 2022 (In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Total Residential: 800+ $ 527,408 $ 954,568 $ 469,518 $ 160,596 $ 28,361 $ 997,409 $ — $ 3,137,860 740-799 963,026 946,339 311,295 111,913 43,684 689,771 — 3,066,028 670-739 381,515 350,671 103,999 62,365 18,451 384,687 — 1,301,688 580-669 40,959 49,648 14,484 5,836 2,357 138,107 — 251,391 579 and below 52,464 3,693 2,057 84,032 1,299 62,908 — 206,453 Total residential 1,965,372 2,304,919 901,353 424,742 94,152 2,272,882 — 7,963,420 Home equity: 800+ 25,475 35,129 25,612 7,578 12,545 55,352 465,318 627,009 740-799 26,743 35,178 17,621 8,111 7,765 32,270 398,692 526,380 670-739 18,396 16,679 8,175 3,635 7,614 30,060 259,646 344,205 580-669 2,848 3,068 1,520 1,456 1,163 13,607 76,614 100,276 579 and below 426 386 651 661 563 4,736 27,814 35,237 Total home equity 73,888 90,440 53,579 21,441 29,650 136,025 1,228,084 1,633,107 Other consumer: 800+ 495 218 544 1,045 247 56 19,196 21,801 740-799 888 2,624 1,959 2,494 941 364 12,218 21,488 670-739 977 603 2,480 4,238 1,041 118 6,107 15,564 580-669 211 117 337 801 173 54 2,223 3,916 579 and below 169 101 29 116 36 21 707 1,179 Total other consumer 2,740 3,663 5,349 8,694 2,438 613 40,451 63,948 Total consumer portfolio $ 2,042,000 $ 2,399,022 $ 960,281 $ 454,877 $ 126,240 $ 2,409,520 $ 1,268,535 $ 9,660,475 Collateral Dependent Loans and Leases A loan or lease is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is substantially expected to be provided through the operation or sale of collateral. At September 30, 2023, and December 31, 2022, the carrying amount of collateral dependent commercial loans and leases totaled $35.9 million and $43.8 million, respectively, and the carrying amount of collateral dependent consumer loans totaled $41.0 million and $45.2 million, respectively. Commercial non-mortgage, asset-based, and equipment financing loans and leases are generally secured by machinery and equipment, inventory, receivables, or other non-real estate assets, whereas commercial real estate, multi-family, residential, home equity, and other consumer loans are secured by real estate. The ACL for collateral dependent loans and leases is individually assessed based on the fair value of the collateral less costs to sell. At September 30, 2023, and December 31, 2022, the collateral value associated with collateral dependent loans and leases totaled $110.6 million and $108.0 million, respectively. Modifications for Borrowers Experiencing Financial Difficulty On January 1, 2023, the Company adopted ASU 2022-02, which eliminates the accounting guidance for TDRs and enhances the disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. For a description of the Company's accounting policies related to the accounting and reporting of TDRs, for which comparative period information is presented, refer to Note 1: Summary of Significant Accounting Policies of the Company's Annual Report on Form 10-K for the year ended December 31, 2022. In certain circumstances, the Company enters into agreements to modify the terms of loans to borrowers experiencing financial difficulty. A variety of solutions are offered to borrowers experiencing financial difficulty, including loan modifications that may result in principal forgiveness, interest rate reductions, payment delays, term extension, or a combination thereof. The following is a description of each of these types of modifications: • Principal forgiveness – The outstanding principal balance of a loan may be reduced by a specified amount. Principal forgiveness may occur voluntarily as part of a negotiated agreement with a borrower, or involuntarily through a bankruptcy proceeding. • Interest rate reductions – Includes modifications where the contractual interest rate of the loan has been reduced. • Payment delays – Deferral arrangements which allow borrowers to delay a scheduled loan payment to a later date. Deferred loan payments do not affect the original contractual terms of the loan. Modifications that result in only an insignificant payment delay are not disclosed. The Company considers that a three month or less payment delay generally would be considered insignificant. • Term extensions – Extensions of the original contractual maturity date of the loan. • Combination – Combination includes loans that have undergone more than one of the above loan modification types. Significant judgment is required to determine if a borrower is experiencing financial difficulty. These considerations vary by portfolio class. The Company has identified modifications to borrowers experiencing financial difficulty that are included in its disclosures as follows: • Commercial: The Company evaluates modifications of loans to commercial borrowers that are rated substandard or worse, and includes the modifications in its disclosures to the extent that the modification is considered • Consumer: The Company generally evaluates modifications of loans to consumer borrowers subject to its loss mitigation program and includes them in its disclosures to the extent that the modification is considered other-than-insignificant. The following table summarizes the amortized cost basis at September 30, 2023, of loans modified to borrowers experiencing financial difficulty, disaggregated by class and type of concession granted: For the three months ended September 30, 2023 (In thousands) Interest Rate Reduction Term Extension Payment Delay Combination Term Extension and Interest Rate Reduction Combination Term Extension and Payment Delay Combination Term Extension, Interest Rate Reduction, and Principal Forgiveness Total % of Total Class (2) Commercial non-mortgage $ — $ 26,970 $ — $ 940 $ 17,798 $ — $ 45,708 0.3 % Asset-based — 13,317 — — — 896 14,213 0.9 Commercial real estate — 768 — 17,247 506 — 18,521 0.1 Residential 257 138 — — — — 395 — Home equity 118 — 4 308 — — 430 — Total (1) $ 375 $ 41,193 $ 4 $ 18,495 $ 18,304 $ 896 $ 79,267 0.2 % For the nine months ended September 30, 2023 (In thousands) Interest Rate Reduction Term Extension Payment Delay Combination Term Extension and Interest Rate Reduction Combination Term Extension and Payment Delay Combination Term Extension, Interest Rate Reduction, and Principal Forgiveness Total % of Total Class (2) Commercial non-mortgage $ — $ 65,470 $ 9,409 $ 1,253 $ 29,314 $ — $ 105,446 0.6 % Asset-based — 13,317 — — — 896 14,213 0.9 Commercial real estate — 3,928 182 17,247 506 — 21,863 0.2 Equipment financing — — 1,362 — — — 1,362 0.1 Residential 257 1,287 1,600 — — — 3,144 — Home equity 181 105 4 516 — — 806 0.1 Total (1) $ 438 $ 84,107 $ 12,557 $ 19,016 $ 29,820 $ 896 $ 146,834 0.3 % (1) The total amortized cost excludes accrued interest receivable of $0.2 million and $0.3 million for the three and nine months ended September 30, 2023, respectively. (2) Represents the total amortized cost of the loans modified as a percentage of the total period end loan balance by class. The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: For the three months ended September 30, 2023 Financial Effect Interest Rate Reduction: Residential Reduced weighted average interest rate by 2.3% Home equity Reduced weighted average interest rate by 0.3% Term Extension: Commercial non-mortgage Extended term by a weighted average of 1.3 years Asset-based Extended term by a weighted average of 0.4 years Commercial real estate Extended term by a weighted average of 0.8 years Residential Extended term by a weighted average of 4.9 years Payment Delay: Home equity Provided partial payment deferrals for a weighted average of 0.4 years Combination Term Extension and Interest Rate Reduction: Commercial non-mortgage Extended term by a weighted average of 0.6 years and reduced weighted average interest rate by 2.0% Commercial real estate Extended term by a weighted average of 3.0 years and reduced weighted average interest rate by 2.4% Home equity Extended term by a weighted average of 19.6 years and reduced weighted average interest rate by 2.5% Combination Term Extension and Payment Delay: Commercial non-mortgage Extended term by a weighted average of 1.2 years and provided partial payment deferrals for a weighted average of 2.0 years Commercial real estate Extended term by a weighted average of 0.5 years and provided payment deferrals for a weighted average of 0.5 years Combination Term Extension, Interest Rate Reduction, and Principal Forgiveness: Asset-based Extended term by a weighted average of 4.6 years, reduced weighted average interest rate by 10.8%, and provided 1/3 principal forgiveness contingent upon payment For the nine months ended September 30, 2023 Financial Effect Interest Rate Reduction: Residential Reduced weighted average interest rate by 2.3% Home equity Reduced weighted average interest rate by 0.3% Term Extension: Commercial non-mortgage Extended term by a weighted average of 1.1 years Asset-based Extended term by a weighted average of 0.4 years Commercial real estate Extended term by a weighted average of 1.9 years Residential Extended term by a weighted average of 1.8 years Home equity Extended term by a weighted average of 11.5 years Payment Delay: Commercial non-mortgage Provided partial payment deferrals for a weighted average of 0.5 years Commercial real estate Provided payment deferrals for a weighted average of 0.3 years to be received at contractual maturity Equipment financing Provided partial payment deferrals for a weighted average of 0.5 years Residential Provided payment deferrals for a weighted average of 1.0 year Home equity Provided partial payment deferrals for a weighted average of 0.4 years Combination Term Extension and Rate Reduction: Commercial non-mortgage Extended term by a weighted average of 1.4 years and reduced weighted average interest rate by 1.8% Commercial real estate Extended term by a weighted average of 3.0 years and reduced weighted average interest rate by 2.4% Home equity Extended term by a weighted average of 16.8 years and reduced weighted average interest rate by 2.1% Combination Term Extension and Payment Delay: Commercial non-mortgage Extended term by a weighted average of 1.1 years and provided partial payment deferrals for a weighted average of 1.9 years Commercial real estate Extended term by a weighted average of 0.5 years and provided payment deferrals for a weighted average of 0.5 years Combination Term Extension, Interest Rate Reduction, and Principal Forgiveness: Asset-based Extended term by a weighted average of 4.6 years, reduced weighted average interest rate by 10.8%, and provided 1/3 principal forgiveness contingent upon payment The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table summarizes the aging of loans that have been modified in the nine months ended September 30, 2023: At September 30, 2023 (In thousands) Current 30-59 Days 60-89 Days 90+ Days Non-Accrual Total Commercial non-mortgage $ 51,613 $ — $ — $ — $ 53,833 $ 105,446 Asset-based 13,317 — — — 896 14,213 Commercial real estate 4,435 — — — 17,428 21,863 Equipment financing 1,362 — — — — 1,362 Residential 327 — — — 2,817 3,144 Home equity 240 — — — 566 806 Total $ 71,294 $ — $ — $ — $ 75,540 $ 146,834 Loans made to borrowers experiencing financial difficulty that were modified during the three or nine months ended September 30, 2023, and that subsequently defaulted were not significant. For the purposes of this disclosure, a payment default is defined as 90 or more days past due and still accruing. Non-accrual loans that are modified to borrowers experiencing financial difficulty remain on non-accrual status until the borrower has demonstrated performance under the modified terms. Commitments to lend additional funds to borrowers experiencing financial difficulty whose loans had been modified were not significant. Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02 The following table summarizes information related to TDRs: (In thousands) At December 31, 2022 Accrual status $ 110,868 Non-accrual status 83,954 Total TDRs $ 194,822 Additional funds committed to borrowers in TDR status $ 1,724 Specific reserves for TDRs included in the ACL on loans and leases: Commercial portfolio $ 14,578 Consumer portfolio 3,559 The following table summarizes loans and leases modified as TDRs by class and modification type during the three and nine months ended September 30, 2022: Three months ended September 30, 2022 Nine months ended September 30, 2022 (Dollars in thousands) Number of Recorded Investment (1) Number of Recorded Investment (1) Commercial non-mortgage Term extension 1 $ 24 3 $ 121 Combination - Term extension and interest rate reduction 3 322 8 765 Other (2) 15 17,408 16 40,372 Equipment financing Other (2) — — 1 1,157 Residential Extended maturity — — 1 893 Maturity/rate combined 1 124 1 124 Other (2) 1 298 7 3,060 Home equity Adjusted interest rate — — 1 74 Combination - Term extension and interest rate reduction 3 1,515 14 2,239 Other (2) 6 444 30 1,777 Total TDRs 30 $ 20,135 82 $ 50,582 (1) Post-modification balances approximated pre-modification balances. The aggregate amount of charge-offs due to restructurings was not significant. (2) Other included covenant modifications, forbearance, discharges under Chapter 7 bankruptcy, or other concessions. The portion of TDRs deemed to be uncollectible and charged-off totaled zero for the commercial portfolio and $0.1 million for the consumer portfolio for the three months ended September 30, 2022, and $10.0 million for the commercial portfolio and $0.2 million for the consumer portfolio for the nine months ended September 30, 2022. There were 5 loans and leases with an aggregated amortized cost of $0.9 million that were modified as TDRs within the previous 12 months and for which there was a payment default during the three and nine months ended September 30, 2022. |