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Loans And Allowance For Credit Losses

12 Months Ended

Dec. 31, 2020

Loans And Allowance For Credit Losses [Abstract]

Loans and Allowance for Credit Losses

Major classifications within the Company’s held for investment loan portfolio at December 31, 2020 and 2019 are as follows:


(In thousands)	2020		2019
Commercial:
Business	$	6,546,087	$	5,565,449
Real estate — construction and land	1,021,595		899,377
Real estate — business	3,026,117		2,833,554
Personal Banking:
Real estate — personal	2,820,030		2,354,760
Consumer	1,950,502		1,964,145
Revolving home equity	307,083		349,251
Consumer credit card	655,078		764,977
Overdrafts	3,149		6,304
Total loans (1)	$	16,329,641	$	14,737,817

(1) Accrued interest receivable totaled $41.9 million at December 31, 2020 and was included within other assets on the consolidated balance sheet. For the year ended December 31, 2020, the Company wrote-off accrued interest by reversing interest income of $329 thousand and $5.7 million in the Commercial and Personal Banking portfolios, respectively.

Loans to directors and executive officers of the Parent and the Bank, and to their affiliates, are summarized as follows:


(In thousands)
Balance at January 1, 2020	$	56,595
Additions	102,182
Amounts collected	(123,883)
Amounts written off	—
Balance, December 31, 2020	$	34,894

Management believes all loans to directors and executive officers have been made in the ordinary course of business with normal credit terms, including interest rate and collateral considerations, and do not represent more than a normal risk of collection. The activity in the table above includes draws and repayments on several lines of credit with business entities. There were no outstanding loans at December 31, 2020 to principal holders (over 10% ownership) of the Company’s common stock.

The Company’s lending activity is generally centered in Missouri, Kansas, Illinois and other nearby states including Oklahoma, Colorado, Iowa, Ohio, Texas, and others. The Company maintains a diversified portfolio with limited industry concentrations of credit risk. Loans and loan commitments are extended under the Company’s normal credit standards, controls, and monitoring features. Most loan commitments are short or intermediate term in nature. Commercial loan maturities generally range from one to seven years. Collateral is commonly required and would include such assets as marketable securities and cash equivalent assets, accounts receivable and inventory, equipment, other forms of personal property, and real estate. At December 31, 2020, unfunded loan commitments totaled $13.0 billion (which included $5.0 billion in unused approved lines of credit related to credit card loan agreements) which could be drawn by customers subject to certain review and terms of agreement. At December 31, 2020, loans totaling $3.9 billion were pledged at the FHLB as collateral for borrowings and letters of credit obtained to secure public deposits. Additional loans of $1.5 billion were pledged at the Federal Reserve Bank as collateral for discount window borrowings.

The Company has a net investment in direct financing and sales type leases to commercial and industrial and tax-exempt entities of $797.4 million and $795.8 million at December 31, 2020 and 2019, respectively, which is included in business loans on the Company’s consolidated balance sheets. This investment includes deferred income of $66.3 million and $71.8 million at December 31, 2020 and 2019, respectively. The net investment in operating leases amounted to $13.7 million and $14.7 million at December 31, 2020 and 2019, respectively, and is included in other assets on the Company’s consolidated balance sheets.

Allowance for credit losses

The allowance for credit losses is measured using an average historical loss model which incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics including borrower type, collateral type and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily large loans on non-accrual status, are evaluated on an individual basis.

For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given a single path economic forecast of key macroeconomic variables including GDP, disposable income, unemployment rate, various interest rates, CPI inflation rate, HPI, CREPI and market volatility. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting back to historical averages using a straight-line method. The forecast adjusted loss rate is applied to the amortized cost of loans over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions (except for contractual extensions at the option of the customer), renewals and modifications unless there is a reasonable expectation that a troubled debt restructuring will be executed. Credit cards and certain similar consumer lines of credit do not have stated maturities and therefore, for these loan classes, remaining contractual lives are determined by estimating future cash flows expected to be received from customers until payments have been fully allocated to outstanding balances. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions.

Key model assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at December 31, 2020 and January 1, 2020 are discussed below.


Key Assumption	December 31, 2020	January 1, 2020 (implementation)

Overall economic forecast	•The recovery from the Global Coronavirus Recession (GCR) continues to be gradual throughout 2021 and 2022 •Assumes no additional systemic lockdown measures •Considers government stimulus in the beginning of 2021 •Continued uncertainty regarding the health crisis	Stable economic environment with slight positive growth projections in overall economic indicators, short-term and long-term, reflecting low unemployment in a late-stage economic cycle.
Reasonable and supportable period and related reversion period	•Two years for both commercial and personal banking loans •Reversion to historical average loss rates within two quarters using a straight-line method	•One year for commercial loans •Two years for personal banking loans •Reversion to historical average loss rates within two quarters using a straight-line method
Forecasted macro-economic variables	•Unemployment rate ranging from 6.5% to 5.2% during the supportable forecast period •Real GDP growth ranges from 3.7% to 2.2% •Prime rate of 3.25%	•Unemployment rate ranging from 3.4% to 3.8% during the supportable forecast period •Real GDP growth ranges from 1.2% to 1.8% •Prime rate ranges of 4.6% to 4.8% •See "Qualitative factors" below for qualitative adjustments made to the forecasted macro-economic variables stated herein
Prepayment assumptions	Commercial loans •5% for most loan pools Personal banking loans •Ranging from 23.1% to 23.3% for most loan pools •58.0% for consumer credit cards	Commercial loans •5% for most loan pools Personal banking loans •Ranging from 14.9% to 25.6% for most loan pools •57.2% for consumer credit cards
Qualitative factors	Added net reserves using qualitative processes related to: •Loans originated in our expansion markets, loans that are designated as shared national credits, and certain portfolios considered to be COVID-19 impacted. •Changes in the composition of the loan portfolios •Loans downgraded to special mention, substandard, or non-accrual status	Added reserves using qualitative processes related to: •Loans originated in our expansion markets •Loans that are designated as shared national credits •Loans downgraded to special mention, substandard, or non-accrual status

The liability for unfunded lending commitments utilizes the same model as the allowance for credit losses on loans, however, the liability for unfunded lending commitments incorporates an assumption for the portion of unfunded commitments that are expected to be funded.

Sensitivity in the Allowance for Credit Loss model

The allowance for credit losses is an estimate that requires significant judgment including projections of the macro-economic environment. The forecasted macro-economic environment continuously changes which can cause fluctuations in estimated expected losses.

The current forecast projects a recovery from the 2020 recession over the next two years. This pandemic is unprecedented and information that could be used in the estimation of the allowance for credit losses changes frequently. Events such as the timing of governmental required business lock downs or possible additional waves of infection could prolong and deepen the projected recession.

A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments during the year ended December 31, 2020 follows:


	For the Year Ended December 31
(In thousands)	Commercial		Personal Banking		Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS
Balance at December 31, 2019	$	91,760	$	68,922	$	160,682
Adoption of ASU 2016-13	(29,711)		8,672		(21,039)
Balance at December 31, 2019, adjusted	$	62,049	$	77,594	$	139,643
Provision for credit losses on loans	63,115		52,934		116,049
Deductions:
Loans charged off	7,862		42,185		50,047
Less recoveries on loans	4,247		10,942		15,189
Net loan charge-offs	3,615		31,243		34,858
Balance December 31, 2020	$	121,549	$	99,285	$	220,834
LIABILITY FOR UNFUNDED LENDING COMMITMENTS
Balance at December 31, 2019	$	399	$	676	$	1,075
Adoption of ASU 2016-13	16,057		33		16,090
Balance at December 31, 2019, adjusted	$	16,456	$	709	$	17,165
Provision for credit losses on unfunded lending commitments	20,803		339		21,142
Balance December 31, 2020	$	37,259	$	1,048	$	38,307
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$	158,808	$	100,333	$	259,141

Allowance for loan losses

In the table below is a summary of the activity in the allowance for loan losses during the previous two years, calculated in accordance with the incurred loss methodology applicable to the Company prior to its adoption of CECL on January 1, 2020. The allowance for loan losses under the incurred loss method estimated probable loan losses inherent in the portfolio as of the balance sheet date, and using this methodology, groups of similar loans were evaluated collectively for impairment and certain specific loans were evaluated for impairment individually. The Company’s estimate of the allowance under the incurred loss method was based on various judgments and assumptions made by management and was influenced by several qualitative factors which included historical loan loss experience by loan type, loss emergence periods, trends in delinquencies, collateral valuation, current regional and national economic factors, current loan portfolio composition and characteristics, portfolio risk ratings, and levels of non-performing assets.


(In thousands)	Commercial		Personal Banking		Total
Balance at December 31, 2017	$	93,704	$	65,828	$	159,532
Provision for loan losses	254		42,440		42,694
Deductions:
Loans charged off	3,164		52,657		55,821
Less recoveries	2,075		11,452		13,527
Net loans charged off	1,089		41,205		42,294
Balance at December 31, 2018	92,869		67,063		159,932
Provision for loan losses	2,816		47,622		50,438
Deductions:
Loans charged off	4,711		57,169		61,880
Less recoveries	786		11,406		12,192
Net loans charged off	3,925		45,763		49,688
Balance at December 31, 2019	91,760		68,922		160,682

Delinquent and non-accrual loans

The Company considers loans past due on the day following the contractual repayment date, if the contractual repayment was not received by the Company as of the end of the business day. The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at December 31, 2020 and 2019.


(In thousands)	Current or Less Than 30 Days Past Due		30 – 89 Days Past Due		90 Days Past Due and Still Accruing		Non-accrual		Total
December 31, 2020
Commercial:
Business	$	6,517,838	$	2,252	$	3,473	$	22,524	$	6,546,087
Real estate – construction and land	1,021,592		—		3		—		1,021,595
Real estate – business	3,016,215		7,666		6		2,230		3,026,117
Personal Banking:
Real estate – personal	2,808,886		6,521		2,837		1,786		2,820,030
Consumer	1,921,822		25,417		3,263		—		1,950,502
Revolving home equity	305,037		1,656		390		—		307,083
Consumer credit card	635,770		7,090		12,218		—		655,078
Overdrafts	2,896		253		—		—		3,149
Total	$	16,230,056	$	50,855	$	22,190	$	26,540	$	16,329,641
December 31, 2019
Commercial:
Business	$	5,545,104	$	12,064	$	792	$	7,489	$	5,565,449
Real estate – construction and land	882,826		13,046		3,503		2		899,377
Real estate – business	2,830,494		2,030		—		1,030		2,833,554
Personal Banking:
Real estate – personal	2,345,243		6,129		1,689		1,699		2,354,760
Consumer	1,928,082		34,053		2,010		—		1,964,145
Revolving home equity	347,258		1,743		250		—		349,251
Consumer credit card	742,659		10,703		11,615		—		764,977
Overdrafts	5,972		332		—		—		6,304
Total	$	14,627,638	$	80,100	$	19,859	$	10,220	$	14,737,817

At December 31, 2020, the Company had $9.4 million of non-accrual business loans that had no allowance for credit loss. The Company did not record any interest income on non-accrual loans during the year ended December 31, 2020.

Credit quality indicators

The following table provides information about the credit quality of the Commercial loan portfolio. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment based on borrower specific information including but not limited to current financial information, historical payment experience, industry information, collateral levels and collateral types. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. A loan is assigned the risk rating at origination and then monitored throughout the contractual term for possible risk rating changes. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.

All loans are analyzed for risk rating updates annually. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Special Mention, Substandard or Non-accrual are subject to quarterly review and monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by a credit review department which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

The risk category of loans in the Commercial portfolio as of December 31, 2020 are as follows:


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Business
Risk Rating:
Pass	$	2,472,419	$	966,068	$	438,557	$	329,207	$	163,357	$	281,604	$	1,619,680	$	6,270,892
Special mention	28,612		26,746		14,102		1,781		5,091		1,664		41,749		119,745
Substandard	17,246		21,985		5,076		2,675		3,578		13,390		68,976		132,926
Non-accrual	12,619		1		5,327		391		502		3,659		25		22,524
Total Business:	$	2,530,896	$	1,014,800	$	463,062	$	334,054	$	172,528	$	300,317	$	1,730,430	$	6,546,087
Real estate-construction
Risk Rating:
Pass	$	483,302	$	330,480	$	56,747	$	3,021	$	24,426	$	1,692	$	27,356	$	927,024
Special mention	29,692		—		1,022		34,532		—		—		—		65,246
Substandard	1,154		—		14,989		13,182		—		—		—		29,325

Total Real estate-construction:	$	514,148	$	330,480	$	72,758	$	50,735	$	24,426	$	1,692	$	27,356	$	1,021,595
Real estate- business
Risk Rating:
Pass	$	890,740	$	666,399	$	336,850	$	241,656	$	313,691	$	199,534	$	67,796	$	2,716,666
Special mention	8,936		21,734		49,580		6,597		17,504		1,309		3,002		108,662
Substandard	46,882		1,037		4,061		81,435		17,538		45,014		2,592		198,559
Non-accrual	478		188		1,480		—		—		84		—		2,230
Total Real-estate business:	$	947,036	$	689,358	$	391,971	$	329,688	$	348,733	$	245,941	$	73,390	$	3,026,117
Commercial loans
Risk Rating:
Pass	$	3,846,461	$	1,962,947	$	832,154	$	573,884	$	501,474	$	482,830	$	1,714,832	$	9,914,582
Special mention	67,240		48,480		64,704		42,910		22,595		2,973		44,751		293,653
Substandard	65,282		23,022		24,126		97,292		21,116		58,404		71,568		360,810
Non-accrual	13,097		189		6,807		391		502		3,743		25		24,754
Total Commercial loans:	$	3,992,080	$	2,034,638	$	927,791	$	714,477	$	545,687	$	547,950	$	1,831,176	$	10,593,799

Information about the credit quality of the Commercial loan portfolio as of December 31, 2019 follows:


	Commercial Loans
(In thousands)	Business		Real Estate -Construction		Real Estate - Business		Total






December 31, 2019
Pass	$	5,393,928	$	856,364	$	2,659,827	$	8,910,119
Special mention	80,089		42,541		92,626		215,256
Substandard	83,943		470		80,071		164,484
Non-accrual	7,489		2		1,030		8,521
Total	$	5,565,449	$	899,377	$	2,833,554	$	9,298,380

The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of December 31, 2020 below:


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Real estate-personal
Current to 90 days past due	$	1,123,918	$	488,379	$	218,390	$	201,971	$	227,265	$	544,008	$	11,476	$	2,815,407
Over 90 days past due	534		375		281		411		388		848		—		2,837
Non-accrual	29		191		116		45		65		1,340		—		1,786
Total Real estate-personal:	$	1,124,481	$	488,945	$	218,787	$	202,427	$	227,718	$	546,196	$	11,476	$	2,820,030
Consumer
Current to 90 days past due	$	536,799	$	337,431	$	161,337	$	115,886	$	75,769	$	86,831	$	633,186	$	1,947,239
Over 90 days past due	212		358		328		220		174		397		1,574		3,263

Total Consumer:	$	537,011	$	337,789	$	161,665	$	116,106	$	75,943	$	87,228	$	634,760	$	1,950,502
Revolving home equity
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	306,693	$	306,693
Over 90 days past due	—		—		—		—		—		—		390		390

Total Revolving home equity:	$	—	$	—	$	—	$	—	$	—	$	—	$	307,083	$	307,083
Consumer credit card
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	642,860	$	642,860
Over 90 days past due	—		—		—		—		—		—		12,218		12,218

Total Consumer credit card:	$	—	$	—	$	—	$	—	$	—	$	—	$	655,078	$	655,078
Overdrafts
Current to 90 days past due	$	3,149	$	—	$	—	$	—	$	—	$	—	$	—	$	3,149


Total Overdrafts:	$	3,149	$	—	$	—	$	—	$	—	$	—	$	—	$	3,149
Personal banking loans
Current to 90 days past due	$	1,663,866	$	825,810	$	379,727	$	317,857	$	303,034	$	630,839	$	1,594,215	$	5,715,348
Over 90 days past due	746		733		609		631		562		1,245		14,182		18,708
Non-accrual	29		191		116		45		65		1,340		—		1,786
Total Personal banking loans:	$	1,664,641	$	826,734	$	380,452	$	318,533	$	303,661	$	633,424	$	1,608,397	$	5,735,842

Collateral-dependent loans

The Company's collateral-dependent loans are comprised of large loans on non-accrual status. The Company requires that collateral-dependent loans are either over-collateralized or carry collateral equal to the amortized cost of the loan. The following table presents the amortized cost basis of collateral-dependent loans as of December 31, 2020.


(In thousands)	Business Assets		Future Revenue Streams		Oil & Gas Assets		Total
Commercial:
Business	$	13,109	$	—	$	2,695	$	15,804

Real estate - business	—		986		—		986






Total	$	13,109	$	986	$	2,695	$	16,790

Other Personal Banking loan information

As noted above, the credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided in the table in the above section on "Credit quality indicators." In addition, FICO scores are obtained and updated on a quarterly basis for most of the loans in the Personal Banking portfolio. This is a published credit score designed to measure the risk of default by taking into account various factors from a borrower's financial history and is considered supplementary information utilized by the Company, as management does not consider this information in evaluating the allowance for credit losses on loans. The bank normally obtains a FICO score at the loan's origination and renewal dates, and updates are obtained on a quarterly basis. Excluded from the table below are certain personal real estate loans for which FICO scores are not obtained because the loans generally pertain to commercial customer activities and are often underwritten with other collateral considerations. These loans totaled $191.1 million at December 31, 2020 and $198.2 million at December 31, 2019. The table also excludes consumer loans related to the Company's patient healthcare loan program, which totaled $188.1 million at December 31, 2020 and $199.2 million at December 31, 2019. As the healthcare loans are guaranteed by the hospital, customer FICO scores are not obtained for these loans. The personal real estate loans and

consumer loans excluded below totaled less than 7% of the Personal Banking portfolio. For the remainder of loans in the Personal Banking portfolio, the table below shows the percentage of balances outstanding at December 31, 2020 and 2019 by FICO score.


	Personal Banking Loans
	% of Loan Category
	Real Estate - Personal		Consumer		Revolving Home Equity		Consumer Credit Card
December 31, 2020
FICO score:
Under 600	0.8	%	2.3	%	1.3	%	5.0	%
600 – 659	1.9		4.2		2.4		12.3
660 – 719	8.8		14.1		8.6		31.2
720 – 779	24.5		23.9		22.2		28.0
780 and over	64.0		55.5		65.5		23.5
Total	100.0	%	100.0	%	100.0	%	100.0	%
December 31, 2019
FICO score:
Under 600	1.0	%	3.0	%	1.7	%	5.6	%
600 – 659	1.9		5.2		1.9		14.3
660 – 719	9.2		15.4		9.0		32.2
720 – 779	25.7		27.0		21.5		26.6
780 and over	62.2		49.4		65.9		21.3
Total	100.0	%	100.0	%	100.0	%	100.0	%

Troubled debt restructurings

Restructured loans are those extended to borrowers who are experiencing financial difficulty and who have been granted a concession. Restructured loans are placed on non-accrual status if the Company does not believe it probable that amounts due under the contractual terms will be collected. Commercial performing restructured loans are primarily comprised of certain business, construction and business real estate loans classified as substandard, but renewed at rates judged to be non-market. These loans are performing in accordance with their modified terms, and because the Company believes it probable that all amounts due under the modified terms of the agreements will be collected, interest on these loans is being recognized on an accrual basis. Troubled debt restructurings also include certain credit card and other small consumer loans under various debt management and assistance programs. Modifications to these loans generally involve removing the available line of credit, placing loans on amortizing status, and lowering the contractual interest rate. Certain personal real estate, revolving home equity, and consumer loans were classified as consumer bankruptcy troubled debt restructurings because they were not reaffirmed by the borrower in bankruptcy proceedings. Interest on these loans is being recognized on an accrual basis, as the borrowers are continuing to make payments. Other consumer loans classified as troubled debt restructurings consist of various other workout arrangements with consumer customers.

Section 4013 of the CARES Act was signed into law on March 27, 2020, and includes a provision that short-term modifications are not troubled debt restructurings, if made on a good-faith basis in response to COVID-19 to borrowers who were current prior to December 31, 2019. The Company follows the guidance under the CARES Act when determining if a customer’s modification is subject to troubled debt restructuring classification. If it is deemed the modification is not short-term, not COVID-19 related or the customer does not meet the criteria under the guidance to be scoped out of troubled debt restructuring classification, the Company will evaluate the loan modifications under its existing framework which requires modifications that result in a concession to a borrower experiencing financial difficulty be accounted for as a troubled debt restructuring.

The initial guidance issued under the CARES Act was due to expire on December 31, 2020. During January 2021, the Consolidated Appropriations Act, 2021 was enacted and extended relief offered under the CARES Act related to the accounting and disclosure requirements for troubled debt restructurings as a result of COVID-19. The Company elected to adopt the extension of this guidance.


		December 31
(In thousands)		2020		2019
Accruing loans:
	Commercial	$	117,740	$	55,934
	Assistance programs	7,804		8,365
	Consumer bankruptcy	2,841		3,592
	Other consumer	2,353		3,621
Non-accrual loans		9,889		7,938
Total troubled debt restructurings		$	140,627	$	79,450

The table below shows the balance of troubled debt restructurings by loan classification at December 31, 2020, in addition to the outstanding balances of these restructured loans which the Company considers to have been in default at any time during the past twelve months. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.


(In thousands)	December 31, 2020		Balance 90 days past due at any time during previous 12 months
Commercial:
Business	$	71,088	$	664
Real estate – construction and land	40		—
Real estate – business	55,306		—
Personal Banking:
Real estate – personal	3,222		242
Consumer	3,365		242
Revolving home equity	28		—
Consumer credit card	7,578		721
Total troubled debt restructurings	$	140,627	$	1,869

For those loans on non-accrual status also classified as restructured, the modification did not create any further financial effect on the Company as those loans were already recorded at net realizable value. For those performing commercial loans classified as restructured, there were no concessions involving forgiveness of principal or interest and, therefore, there was no financial impact to the Company as a result of modification to these loans. No financial impact resulted from those performing loans where the debt was not reaffirmed in bankruptcy, as no changes to loan terms occurred in that process. However, the effects of modifications to loans under various debt management and assistance programs were estimated to decrease interest income by approximately $965 thousand on an annual, pre-tax basis, compared to amounts contractually owed. Other modifications to consumer loans mainly involve extensions and other small modifications that did not include the forgiveness of principal or interest.

The allowance for credit losses related to troubled debt restructurings on non-accrual status is determined by individual evaluation, including collateral adequacy, using the same process as loans on non-accrual status which are not classified as troubled debt restructurings. Those performing loans classified as troubled debt restructurings are accruing loans which management expects to collect under contractual terms. Performing commercial loans having no other concessions granted other than being renewed at non-market interest rates are judged to have similar risk characteristics as non-troubled debt commercial loans and are collectively evaluated based on internal risk rating, loan type, delinquency, historical experience and current economic factors. Performing personal banking loans classified as troubled debt restructurings resulted from the borrower not reaffirming the debt during bankruptcy and have had no other concession granted, other than the Bank's future limitations on collecting payment deficiencies or in pursuing foreclosure actions. As such, they have similar risk characteristics as non-troubled debt personal banking loans and are evaluated collectively based on loan type, delinquency, historical experience and current economic factors.

If a troubled debt restructuring defaults and is already on non-accrual status, the allowance for credit losses continues to be based on individual evaluation, using discounted expected cash flows or the fair value of collateral. If an accruing, troubled

debt restructuring defaults, the loan's risk rating is downgraded to non-accrual status and the loan's related allowance for credit losses is determined based on individual evaluation, or if necessary, the loan is charged off and collection efforts begin.

The Company had commitments of $10.7 million at December 31, 2020 to lend additional funds to borrowers with restructured loans, compared to $4.7 million at December 31, 2019.

Impaired loans

The following Impaired loans disclosures were superseded by ASC 2016-13.

The table below shows the Company’s balances of impaired loans at December 31, 2019. These loans consist of all loans on non-accrual status and other restructured loans whose terms have been modified and classified as troubled debt restructurings. These restructured loans are performing in accordance with their modified terms, and because the Company believes it probable that all amounts due under the modified terms of the agreements will be collected, interest on these loans is being recognized on an accrual basis. They are discussed further in the "Troubled debt restructurings" section above.


(In thousands)	Dec. 31, 2019
Non-accrual loans	$	10,220
Restructured loans (accruing)	71,512
Total impaired loans	$	81,732

The following table shows the balance in the allowance for loan losses and the related loan balance at December 31, 2019 disaggregated on the basis of impairment methodology. Impaired loans evaluated under ASC 310-10-35 include loans on non-accrual status which are individually evaluated for impairment and other impaired loans deemed to have similar risk characteristics, which are collectively evaluated. All other loans are collectively evaluated for impairment under ASC 450-20.


	Impaired Loans				All Other Loans
(In thousands)	Allowance for Loan Losses		Loans Outstanding		Allowance for Loan Losses		Loans Outstanding




December 31, 2019
Commercial	$	1,629	$	64,500	$	90,131	$	9,233,880
Personal Banking	1,117		17,232		67,805		5,422,205
Total	$	2,746	$	81,732	$	157,936	$	14,656,085

The following table provides additional information about impaired loans held by the Company at December 31, 2019, segregated between loans for which an allowance for loan losses has been provided and loans for which no allowance has been provided.


(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance



















December 31, 2019
With no related allowance recorded:
Business	$	7,054	$	13,738	$	—





	$	7,054	$	13,738	$	—
With an allowance recorded:
Business	$	30,437	$	30,487	$	837
Real estate – construction and land	46		51		1
Real estate – business	26,963		27,643		791
Real estate – personal	4,729		5,968		258
Consumer	4,421		4,421		35
Revolving home equity	35		35		1
Consumer credit card	8,047		8,047		823
	$	74,678	$	76,652	$	2,746
Total	$	81,732	$	90,390	$	2,746

Total average impaired loans during 2019 are shown in the table below.


	2019
(In thousands)		Commercial		Personal Banking		Total
Average impaired loans:
Non-accrual loans		$	9,892	$	2,031	$	11,923
Restructured loans (accruing)		49,544		15,667		65,211
Total		$	59,436	$	17,698	$	77,134

The table below shows interest income recognized during the years ended December 31, 2019 and 2018 for impaired loans held at the end of each respective period. This interest all relates to accruing restructured loans, as discussed in the "Troubled debt restructurings" section above.


	Years Ended December 31
(In thousands)	2019		2018
Interest income recognized on impaired loans:
Business	$	1,329	$	2,219
Real estate – construction and land	2		25
Real estate – business	1,456		558
Real estate – personal	136		139
Consumer	286		305
Revolving home equity	3		3
Consumer credit card	828		746
Total	$	4,040	$	3,995

Loans held for sale

The Company designates certain long-term fixed rate personal real estate loans as held for sale, and the Company has elected the fair value option for these loans. The election of the fair value option aligns the accounting for these loans with the related economic hedges discussed in Note 19. The loans are primarily sold to FNMA and FHLMC. At December 31, 2020, the fair value of these loans was $39.4 million, and the unpaid principal balance was $38.0 million.

The Company also designates certain student loan originations as held for sale. The borrowers are credit-worthy students who are attending colleges and universities. The loans are intended to be sold in the secondary market, and the Company maintains contracts with Sallie Mae to sell the loans within 210 days after the last disbursement to the student. These loans are carried at lower of cost or fair value, which at December 31, 2020 totaled $5.7 million.

At December 31, 2020, none of the loans held for sale were on non-accrual status or 90 days past due and still accruing.

Foreclosed real estate/repossessed assets

The Company’s holdings of foreclosed real estate totaled $93 thousand and $365 thousand at December 31, 2020 and 2019, respectively. Personal property acquired in repossession, generally autos and marine and recreational vehicles (RV), totaled $1.4 million and $5.5 million at December 31, 2020 and 2019, respectively. Upon acquisition, these assets are recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. They are subsequently carried at the lower of this cost basis or fair value less estimated selling costs.