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Loans and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2021

Net Loans are summarized as follows:


	March 31, 2021		December 31, 2020
	(in thousands)
Real estate - commercial mortgage	$	7,142,137	$	7,105,092
Commercial and industrial (1)	5,675,714		5,670,828
Real-estate - residential mortgage	3,254,058		3,141,915
Real-estate - home equity	1,149,958		1,202,913
Real-estate - construction	1,083,494		1,047,218
Consumer	451,857		466,772
Equipment lease financing and other	252,930		284,377
Overdrafts	1,373		4,806
Gross loans	19,011,521		18,923,921
Unearned income	(20,535)		(23,101)
Net Loans	$	18,990,986	$	18,900,820

(1) Includes PPP loans totaling $1.7 billion and $1.6 billion as of March 31, 2021 and December 31, 2020, respectively.

The Corporation segments its loan portfolio by "portfolio segments," as presented in the table above. Certain portfolio segments are further disaggregated by "class segment" for the purpose of estimating credit losses.

Allowance for Credit Losses

The Corporation has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income.

Loans: The ACL for loans is an estimate of the expected losses to be realized over the life of the loans in the portfolio. The ACL is determined for two distinct categories of loans: 1) loans evaluated collectively for expected credit losses and 2) loans evaluated individually for expected credit losses.

Loans Evaluated Collectively: Loans evaluated collectively for expected credit losses include loans on accrual status, excluding accruing TDRs, and loans initially evaluated individually, but determined not to have enhanced credit risk characteristics. This category includes loans on non-accrual status and TDRs where the total commitment amount is less than $1 million. The ACL is estimated by applying a PD and LGD to the EAD at the loan level. In order to determine the PD, LGD, and EAD calculation inputs:

•Loans are aggregated into pools based on similar risk characteristics.

•The PD and LGD rates are determined by historical credit loss experience for each pool of loans.

•The loan segment PD rates are estimated using six econometric regression models that use the Corporation’s historical credit loss experience and incorporate reasonable and supportable economic forecasts for various macroeconomic variables that are statistically correlated with expected loss behavior in the loan segment.

•The reasonable and supportable forecast for each macroeconomic variable is sourced from an external third party and is applied over the contractual term of the Corporation’s loan portfolio. The Corporation’s economic forecast considers the general health of the economy, the interest rate environment, real estate pricing and market risk.

•A single baseline forecast scenario is used for each macroeconomic variable.

•The loan segment lifetime LGD rates are estimated using a loss rate approach based on the Corporation’s historical charge-off experience and the balance at the time of loan default.

•The LGD rates are adjusted for the Corporation’s recovery experience.

•To calculate the EAD, the corporation estimates contractual cash flows over the remaining life of each loan. Certain cash flow assumptions are established for each loan using maturity date, amortization schedule and interest rate. In addition, a prepayment rate is used in determining the EAD estimate.

Loans Evaluated Individually: Loans evaluated individually for expected credit losses include loans on non-accrual status and TDRs where the commitment amount equals or exceeds $1.0 million. The required ACL for such loans is determined using either the present value of expected future cash flows, observable market price or the fair value of collateral.

Loans evaluated individually may have specific allocations of the ACL assigned if the measured value of the loan using one of the noted techniques is less than its current carrying value. For loans measured using the fair value of collateral, if the analysis determines that sufficient collateral value would be available for repayment of the debt, then no allocations would be assigned to those loans. Collateral could be in the form of real estate or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate.

For loans secured by real estate, estimated fair values are determined primarily through appraisals performed by third-party appraisers, discounted to arrive at expected net sale proceeds. For collateral dependent loans, estimated real estate fair values are also net of estimated selling costs. When a real estate secured loan is impaired, a decision is made regarding whether an updated appraisal of the real estate is necessary. This decision is based on various considerations, including: the age of the most recent appraisal; the loan-to-value ratio based on the original appraisal; the condition of the property; the Corporation’s experience and knowledge of the real estate market; the purpose of the loan; market factors; payment status; the strength of any guarantors; and the existence and age of other indications of value such as broker price opinions, among others. The Corporation generally obtains updated appraisals performed by third-party appraisers for impaired loans secured predominantly by real estate every 12 months.

When updated appraisals are not obtained for loans secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated an acceptable loan-to-value position and there has not been a significant deterioration in the collateral value since the original appraisal was performed.

For loans with principal balances greater than or equal to $1.0 million secured by non-real estate collateral, such as accounts receivable or inventory, estimated fair values are determined based on borrower financial statements, inventory listings, accounts receivable agings or borrowing base certificates. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Liquidation or collection discounts are applied to these assets based upon existing loan evaluation policies.

Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification. For commercial loans, commercial mortgages and construction loans to commercial borrowers, an internal risk rating process is used. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk rating categories is a significant component of the ACL methodology for these loans, which bases the PD on this migration. Assigning risk ratings involves judgment. Risk ratings may be changed based on ongoing monitoring procedures, or if specific loan review assessments identify a deterioration or an improvement in the loan.

The ACL is reviewed to evaluate its appropriateness in relation to the overall risk profile of the loan portfolio. The Corporation considers risk factors such as: local and national economic conditions; trends in delinquencies and non-accrual loans; the diversity of borrower industry types; and the composition of the portfolio by loan type.

Qualitative and Other Adjustments to ACL: In addition to the quantitative credit loss estimates for loans evaluated collectively, qualitative factors that may not be fully captured in the quantitative results are also evaluated. These qualitative factors include changes in lending policy, the nature and volume of the portfolio, overall business conditions in the economy, credit concentrations, specific industry risks, competition, model imprecision and legal and regulatory requirements. Qualitative adjustments are judgmental and are based on management’s knowledge of the portfolio and the markets in which the Corporation operates. Qualitative adjustments are evaluated and approved on a quarterly basis. Additionally, the ACL includes other allowance categories that are not directly incorporated in the quantitative results. These categories include but are not limited to loans-in-process, trade acceptances and overdrafts.

OBS Credit Exposures: The ACL for OBS credit exposures is recorded in other liabilities on the consolidated balance sheets. This portion of the ACL represents management’s estimate of expected losses in its unfunded loan commitments and other OBS credit exposures. The ACL specific to unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). The ACL for OBS credit exposures is increased or decreased by charges or reductions to expense, through the provision for credit losses.

The following table presents the components of the ACL:



	March 31, 2021		December 31, 2020
	(in thousands)
ACL - loans	$	265,986	$	277,567
ACL - OBS credit exposure	14,273		14,373
Total ACL	$	280,259	$	291,940

The following table presents the activity in the ACL:


	Three months ended March 31
	2021		2020
	(in thousands)
Balance at beginning of period	$	291,940	$	166,209
Impact of adopting CECL on January 1, 2020 (1)	—		58,349
Loans charged off	(8,202)		(14,003)
Recoveries of loans previously charged off	2,021		2,887
Net loans charged off	(6,181)		(11,116)
Provision for credit losses (2)	(5,500)		44,029
Balance at end of period	$	280,259	$	257,471

(1) Includes $12.6 million of reserves for OBS credit exposures as of January 1, 2020.

(2) Includes $(100,000) and $3.8 million related to OBS credit exposures for the three months ended March 31, 2021 and 2020, respectively.

The following table presents the activity in the ACL - loans by portfolio segment:


	Real Estate - Commercial Mortgage		Commercial and Industrial		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Equipment lease financing, other and overdrafts		Total
	(in thousands)
Three months ended March 31, 2021
Balance at December 31, 2020	$	103,425	$	74,771	$	14,232	$	51,995	$	15,608	$	10,905	$	6,633	$	277,567
Loans charged off	(1,837)		(4,319)		(212)		(192)		(39)		(635)		(968)		(8,202)
Recoveries of loans previously charged off	174		769		51		95		384		389		159		2,021
Net loans recovered (charged off)	(1,663)		(3,550)		(161)		(97)		345		(246)		(809)		(6,181)
Provision for loan losses (1)	(786)		(27)		(341)		(1,903)		(874)		(1,247)		(222)		(5,400)
Balance at March 31, 2021	$	100,976	$	71,194	$	13,730	$	49,995	$	15,079	$	9,412	$	5,602	$	265,986







Three months ended March 31, 2020
Balance at December 31, 2019	$	45,610	$	68,602	$	17,744	$	19,771	$	4,443	$	3,762	$	3,690	$	163,622
Impact of adopting CECL on January 1, 2020	29,361		(18,576)		(65)		21,235		4,015		5,969		3,784		45,723
Loans charged off	(855)		(10,899)		(316)		(187)		—		(1,213)		(533)		(14,003)
Recoveries of loans previously charged off	244		1,734		646		85		70		—		108		2,887
Net loans (charged off) recovered	(611)		(9,165)		330		(102)		70		(1,213)		(425)		(11,116)
Provision for loan losses (1)	15,959		22,745		(2,756)		1,523		(130)		1,347		1,591		40,279
Balance at March 31, 2020	$	90,319	$	63,606	$	15,253	$	42,427	$	8,398	$	9,865	$	8,640	$	238,508

(1) Provision included in the table only includes the portion related to Net Loans.

Several factors as of the end of the first quarter of 2021 in comparison to the end of the fourth quarter of 2020, including improved economic forecasts and a decrease in specific allocations within the ACL for loans evaluated individually, reduced the level of the ACL determined to be necessary as of March 31, 2021, resulting in the negative provision for credit losses for the three months ended March 31, 2021. The higher provision expense during the first three months of 2020 was largely driven by the overall downturn in economic forecasts due to COVID-19, resulting in higher expected future credit losses under CECL.

Qualitative adjustments during the first three months of 2020 increased compared to those at the time of the adoption of CECL on January 1, 2020 primarily as a result of uncertainties related to the economic impact of COVID-19, including consideration for the future performance of loans that received deferrals or forbearances as a result of COVID-19 and the impact COVID-19 had on certain industries where the quantitative models were not fully capturing the appropriate level of risk at that time. PPP loans issued are fully guaranteed by the SBA and, as such, no ACL was recorded against the PPP loan portfolio.

Non-accrual Loans

All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of March 31, 2021 and December 31, 2020, substantially all of the Corporation’s individually evaluated loans with total commitments greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral, if any. Collateral could be in the form of real estate, in the case of commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate.

As of March 31, 2021 and December 31, 2020, approximately 97% and 83%, respectively, of loans evaluated individually for impairment with principal balances greater than or equal to $1.0 million, whose primary collateral consisted of real estate, were measured at estimated fair value using appraisals performed by state certified third-party appraisers that had been updated in the preceding 12 months.

The following table presents total non-accrual loans, by class segment:


	March 31, 2021						December 31, 2020
	With a Related Allowance		Without a Related Allowance		Total		With a Related Allowance		Without a Related Allowance		Total
	(in thousands)
Real estate - commercial mortgage	$	21,107	$	30,870	$	51,977	$	19,909	$	31,561	$	51,470
Commercial and industrial	13,012		18,640		31,652		13,937		18,056		31,993
Real estate - residential mortgage	31,203		2,198		33,401		24,590		1,517		26,107
Real estate - home equity	9,368		—		9,368		9,398		190		9,588
Real estate - construction	544		897		1,441		437		958		1,395
Consumer	301		—		301		332		—		332
Equipment lease financing and other	6,462		9,287		15,749		—		16,313		16,313
	$	81,997	$	61,892	$	143,889	$	68,603	$	68,595	$	137,198

As of March 31, 2021 and December 31, 2020, there were $61.9 million and $68.6 million, respectively, of non-accrual loans that did not have a related allowance for credit losses. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

Asset Quality

Maintaining an appropriate ACL is dependent on various factors, including the ability to identify potential problem loans in a timely manner. For commercial construction, residential construction, commercial and industrial, and commercial real estate, an internal risk rating process is used. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk rating categories is a significant component of the ACL methodology for these loans, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide a separate assessment of risk rating accuracy. Risk ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff or if specific loan review assessments identify a deterioration or an improvement in the loans.

The following is a summary of the Corporation's internal risk rating categories:

•Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.

•Special Mention: These loans have a heightened credit risk, but not to the point of justifying a classification of Substandard. Loans in this category are currently acceptable but, are nevertheless potentially weak.

•Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the current period:


		March 31, 2021
		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans converted to Term Loans
		(dollars in thousands)												Amortized		Amortized
		2021		2020		2019		2018		2017		Prior		Cost Basis		Cost Basis		Total
Real estate - construction(1)
	Pass	$	14,615	$	233,770	$	201,440	$	218,467	$	80,686	$	142,339	$	36,046	$	—	$	927,363
	Special Mention	110		—		—		—		—		13,195		—		—		13,305
	Substandard or Lower	—		—		154		—		1,976		3,520		406		—		6,056
	Total real estate - construction	14,725		233,770		201,594		218,467		82,662		159,054		36,452		—		946,724
Real estate - construction(1)
	Current period gross charge-offs	—		—		(39)		—		—		—		—		—		(39)
	Current period recoveries	—		—		—		—		—		384		—		—		384
	Total net (charge-offs) recoveries	—		—		(39)		—		—		384		—		—		345
Commercial and industrial
	Pass	885,616		1,624,535		481,038		290,788		201,910		726,981		1,205,065		—		5,415,933
	Special Mention	143		9,136		20,949		16,337		10,413		30,861		48,939		—		136,778
	Substandard or Lower	—		2,847		7,167		13,503		10,638		34,805		54,043		—		123,003
	Total commercial and industrial	885,759		1,636,518		509,154		320,628		222,961		792,647		1,308,047		—		5,675,714
Commercial and industrial
	Current period gross charge-offs	—		—		(613)		(2,871)		(60)		(775)		—		—		(4,319)
	Current period recoveries	—		—		37		126		36		570		—		—		769
	Total net (charge-offs) recoveries	—		—		(576)		(2,745)		(24)		(205)		—		—		(3,550)
Real estate - commercial mortgage
	Pass	200,885		993,776		926,352		670,684		767,399		2,800,409		49,207		321		6,409,033
	Special Mention	—		23,282		30,629		92,800		75,417		248,403		2,406		—		472,937
	Substandard or Lower	—		1,028		24,008		10,673		46,460		174,421		3,577		—		260,167
	Total real estate - commercial mortgage	200,885		1,018,086		980,989		774,157		889,276		3,223,233		55,190		321		7,142,137
Real estate - commercial mortgage
	Current period gross charge-offs	—		—		—		—		(1,719)		(118)		—		—		(1,837)
	Current period recoveries	—		—		—		—		—		174		—		—		174
	Total net (charge-offs) recoveries	—		—		—		—		(1,719)		56		—		—		(1,663)
Total
	Pass	$	1,101,116	$	2,852,081	$	1,608,830	$	1,179,939	$	1,049,995	$	3,669,729	$	1,290,318	$	321	$	12,752,329
	Special Mention	253		32,418		51,578		109,137		85,830		292,459		51,345		—		623,020
	Substandard or Lower	—		3,875		31,329		24,176		59,074		212,746		58,026		—		389,226
	Total	$	1,101,369	$	2,888,374	$	1,691,737	$	1,313,252	$	1,194,899	$	4,174,934	$	1,399,689	$	321	$	13,764,575

(1) Excludes real estate - construction - other.

The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and equipment lease financing. For these loans, the most relevant credit quality indicator is delinquency status. The migration of loans through the various delinquency status categories is a significant component of the ACL methodology for those loans, which bases the PD on this migration.

The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period:


		December 31, 2020
		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans converted to Term Loans
		(dollars in thousands)												Amortized		Amortized
		2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
Real estate - construction(1)
	Pass	$	185,883	$	229,097	$	217,604	$	81,086	$	37,976	$	110,470	$	38,026	$	—	$	900,142
	Special Mention	—		—		—		—		7,047		6,212		—		—		13,259
	Substandard or Lower	—		447		—		2,000		753		1,637		632		—		5,469
	Total real estate - construction	185,883		229,544		217,604		83,086		45,776		118,319		38,658		—		918,870
Real estate - construction(1)
	Current period gross charge-offs	—		—		—		—		—		(17)		—		—		(17)
	Current period recoveries	—		—		—		—		68		5,054		—		—		5,122
	Total net (charge-offs) recoveries	—		—		—		—		68		5,037		—		—		5,105
Commercial and industrial
	Pass	2,283,533		508,541		298,567		214,089		208,549		596,646		1,278,689		—		5,388,614
	Special Mention	6,633		23,834		29,167		10,945		11,506		25,960		45,994		—		154,039
	Substandard or Lower	3,221		5,947		8,434		11,251		11,192		23,852		64,278		—		128,175
	Total commercial and industrial	2,293,387		538,322		336,168		236,285		231,247		646,458		1,388,961		—		5,670,828
Commercial and industrial
	Current period gross charge-offs	—		(114)		(30)		(488)		(393)		(520)		(17,370)		—		(18,915)
	Current period recoveries	—		43		486		216		162		4,531		5,958		—		11,396
	Total net (charge-offs) recoveries	—		(71)		456		(272)		(231)		4,011		(11,412)		—		(7,519)
Real estate - commercial mortgage
	Pass	973,664		917,510		708,946		794,955		783,094		2,213,343		53,041		404		6,444,957
	Special Mention	13,639		40,874		84,047		80,705		89,112		167,424		2,364		—		478,165
	Substandard or Lower	1,238		6,681		6,247		39,027		22,605		103,007		2,225		940		181,970
	Total real estate - commercial mortgage	988,541		965,065		799,240		914,687		894,811		2,483,774		57,630		1,344		7,105,092
Real estate - commercial mortgage
	Current period gross charge-offs	(60)		(21)		(36)		(2,515)		(29)		(1,547)		(17)		—		(4,225)
	Current period recoveries	—		6		—		—		1		1,020		—		—		1,027
	Total net (charge-offs) recoveries	(60)		(15)		(36)		(2,515)		(28)		(527)		(17)		—		(3,198)
Total
	Pass	$	3,443,080	$	1,655,148	$	1,225,117	$	1,090,130	$	1,029,619	$	2,920,459	$	1,369,756	$	404	$	12,733,713
	Special Mention	20,272		64,708		113,214		91,650		107,665		199,596		48,358		—		645,463
	Substandard or Lower	4,459		13,075		14,681		52,278		34,550		128,496		67,135		940		315,614
	Total	$	3,467,811	$	1,732,931	$	1,353,012	$	1,234,058	$	1,171,834	$	3,248,551	$	1,485,249	$	1,344	$	13,694,790

(1) Excludes real estate - construction - other.

The Corporation considers the performance of the loan portfolio and its impact on the ACL. For certain loan classes, the Corporation evaluates credit quality based on the aging status of the loan. The following tables present the amortized cost of these loans based on payment activity, by origination year, for the periods shown:


		March 31, 2021
		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans converted to Term Loans
		(dollars in thousands)												Amortized		Amortized
		2021		2020		2019		2018		2017		Prior		Cost Basis		Cost Basis		Total
Real estate - home equity
	Performing	$	4,491	$	29,767	$	8,140	$	12,312	$	9,997	$	119,037	$	948,645	$	4,845	$	1,137,234
	Nonperforming	—		—		88		23		264		2,597		9,545		207		12,724
	Total real estate - home equity	4,491		29,767		8,228		12,335		10,261		121,634		958,190		5,052		1,149,958
Real estate - home equity
	Current period gross charge-offs	—		—		—		—		—		—		(212)		—		(212)
	Current period recoveries	—		—		—		—		—		—		51		—		51
	Total net (charge-offs) recoveries	—		—		—		—		—		—		(161)		—		(161)
Real estate - residential mortgage
	Performing	358,906		1,240,446		513,892		181,509		292,014		630,996		—		—		3,217,763
	Nonperforming	—		3,927		1,654		3,450		2,945		24,319		—		—		36,295
	Total real estate - residential mortgage	358,906		1,244,373		515,546		184,959		294,959		655,315		—		—		3,254,058
Real estate - residential mortgage
	Current period gross charge-offs	—		—		(40)		(47)		—		(105)		—		—		(192)
	Current period recoveries	—		—		—		3		1		—		92		—		96
	Total net (charge-offs) recoveries	—		—		(40)		(44)		1		(105)		92		—		(96)
Consumer
	Performing	27,910		103,924		90,185		85,837		38,190		56,885		48,371		—		451,302
	Nonperforming	—		127		37		63		35		243		50		—		555
	Total consumer	27,910		104,051		90,222		85,900		38,225		57,128		48,421		—		451,857
Consumer
	Current period gross charge-offs	—		(95)		(94)		(111)		(79)		(229)		(27)		—		(635)
	Current period recoveries	—		33		5		11		19		321		—		—		389
	Total net (charge-offs) recoveries	—		(62)		(89)		(100)		(60)		92		(27)		—		(246)
Equipment lease financing and other
	Performing	25,663		68,641		51,804		36,350		22,506		13,054		—		—		218,018
	Nonperforming	—		—		—		—		15,724		26		—		—		15,750
	Total leasing and other	25,663		68,641		51,804		36,350		38,230		13,080		—		—		233,768
Equipment lease financing and other
	Current period gross charge-offs	—		(968)		—		—		—		—		—		—		(968)
	Current period recoveries	—		120		39		—		—		—		—		—		159
	Total net (charge-offs) recoveries	—		(848)		39		—		—		—		—		—		(809)
Construction - other
	Performing	17,458		97,829		16,172		4,755		—		16		—		—		136,230
	Nonperforming	—		—		364		—		176		—		—		—		540
	Total construction - other	17,458		97,829		16,536		4,755		176		16		—		—		136,770
Construction - other
	Current period gross charge-offs	—		—		—		—		—		—		—		—		—
	Current period recoveries	—		—		—		—		—		—		—		—		—
	Total net (charge-offs) recoveries	—		—		—		—		—		—		—		—		—
Total
	Performing	$	434,428	$	1,540,607	$	680,193	$	320,763	$	362,707	$	819,988	$	997,016	$	4,845	$	5,160,547
	Nonperforming	—		4,054		2,143		3,536		19,144		27,185		9,595		207		65,864
	Total	$	434,428	$	1,544,661	$	682,336	$	324,299	$	381,851	$	847,173	$	1,006,611	$	5,052	$	5,226,411


		December 31, 2020
		Term Loans Amortized Cost Basis by Origination Year												Revolving Loans		Revolving Loans converted to Term Loans
		(dollars in thousands)												Amortized		Amortized
		2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
Real estate - home equity
	Performing	$	31,445	$	8,176	$	13,906	$	11,024	$	11,667	$	126,749	$	982,285	$	5,321	$	1,190,573
	Nonperforming	—		88		23		233		221		2,290		9,485		—		12,340
	Total real estate - home equity	31,445		8,264		13,929		11,257		11,888		129,039		991,770		5,321		1,202,913
Real estate - home equity
	Current period gross charge-offs	—		—		—		—		—		(34)		(1,159)		—		(1,193)
	Current period recoveries	—		—		—		—		—		138		366		—		504
	Total net (charge-offs) recoveries	—		—		—		—		—		104		(793)		—		(689)
Real estate - residential mortgage
	Performing	1,255,532		585,878		228,398		341,563		264,990		434,889		—		—		3,111,250
	Nonperforming	217		2,483		3,177		2,483		722		21,583		—		—		30,665
	Total real estate - residential mortgage	1,255,749		588,361		231,575		344,046		265,712		456,472		—		—		3,141,915
Real estate - residential mortgage
	Current period gross charge-offs	—		(68)		(101)		(190)		(7)		(254)		—		—		(620)
	Current period recoveries	—		68		16		1		1		405		—		—		491
	Total net (charge-offs) recoveries	—		—		(85)		(189)		(6)		151		—		—		(129)
Consumer
	Performing	114,399		98,587		95,072		43,334		25,804		36,086		52,698		42		466,022
	Nonperforming	168		19		124		141		114		150		34		—		750
	Total consumer	114,567		98,606		95,196		43,475		25,918		36,236		52,732		42		466,772
Consumer
	Current period gross charge-offs	(134)		(542)		(524)		(444)		(489)		(769)		(498)		—		(3,400)
	Current period recoveries	—		64		165		159		94		101		1,292		—		1,875
	Total net (charge-offs) recoveries	(134)		(478)		(359)		(285)		(395)		(668)		794		—		(1,525)
Equipment lease financing and other
	Performing	102,324		65,303		49,453		34,995		15,631		5,040		—		—		272,746
	Nonperforming	—		—		30		15,983		142		282		—		—		16,437
	Total leasing and other	102,324		65,303		49,483		50,978		15,773		5,322		—		—		289,183
Equipment lease financing and other
	Current period gross charge-offs	(606)		(1,581)		—		—		—		—		—		—		(2,187)
	Current period recoveries	185		349		21		18		11		21		—		—		605
	Total net (charge-offs) recoveries	(421)		(1,232)		21		18		11		21		—		—		(1,582)
Construction - other
	Performing	96,444		24,888		6,822		—		16		—		—		—		128,170
	Nonperforming	—		—		—		178		—		—		—		—		178
	Total construction - other	96,444		24,888		6,822		178		16		—		—		—		128,348
Construction - other
	Current period gross charge-offs	—		—		—		—		—		—		—		—		—
	Current period recoveries	—		—		—		—		—		—		—		—		—
	Total net (charge-offs) recoveries	—		—		—		—		—		—		—		—		—
Total
	Performing	$	1,600,144	$	782,832	$	393,651	$	430,916	$	318,108	$	602,764	$	1,034,983	$	5,363	$	5,168,761
	Nonperforming	385		2,590		3,354		19,018		1,199		24,305		9,519		—		60,370
	Total	$	1,600,529	$	785,422	$	397,005	$	449,934	$	319,307	$	627,069	$	1,044,502	$	5,363	$	5,229,131

The following table presents non-performing assets:


	March 31, 2021		December 31, 2020
	(in thousands)
Non-accrual loans	$	143,889	$	137,198
Loans 90 days or more past due and still accruing	8,559		9,929
Total non-performing loans	152,448		147,127
OREO (1)	3,664		4,178
Total non-performing assets	$	156,112	$	151,305

(1) Excludes $7.6 million and $8.1 million of residential mortgage properties for which formal foreclosure proceedings were in process as of March 31, 2021 and December 31, 2020, respectively.

The following tables present the aging of the amortized cost basis of loans, by class segment:


	30-59		60-89		≥ 90 Days
	Days Past		Days Past		Past Due		Non-
	Due		Due		and Accruing		Accrual		Current		Total
	(in thousands)
March 31, 2021
Real estate – commercial mortgage	$	9,596	$	1,516	$	2,187	$	51,977	$	7,076,861	$	7,142,137
Commercial and industrial	1,718		1,894		219		31,652		5,640,231		5,675,714
Real estate – residential mortgage	8,485		933		2,750		33,401		3,208,489		3,254,058
Real estate – home equity	2,795		1,062		3,148		9,368		1,133,585		1,149,958
Real estate – construction	170		—		—		1,441		1,081,883		1,083,494
Consumer	1,224		491		255		301		449,586		451,857
Equipment lease financing and other	101		142		—		15,749		217,776		233,768
Total	$	24,089	$	6,038	$	8,559	$	143,889	$	18,808,411	$	18,990,986


	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Current		Total
	(in thousands)
December 31, 2020
Real estate – commercial mortgage	$	14,999	$	9,273	$	1,177	$	51,470	$	7,028,173	$	7,105,092
Commercial and industrial	11,285		1,068		616		31,993		5,625,866		5,670,828
Real estate – residential mortgage	22,281		7,675		4,687		26,107		3,081,165		3,141,915
Real estate – home equity	5,622		1,654		2,753		9,588		1,183,296		1,202,913
Real estate – construction	1,938		—		155		1,395		1,043,730		1,047,218
Consumer	3,036		501		417		332		462,486		466,772
Equipment lease financing and other	838		150		124		16,313		248,657		266,082
Total	$	59,999	$	20,321	$	9,929	$	137,198	$	18,673,373	$	18,900,820

Collateral-Dependent Loans

A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, the Corporation records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists

of various types of real estate, including residential properties, commercial properties, such as retail centers, office buildings, and lodging, agriculture land, and vacant land.

Troubled Debt Restructurings

The following table presents TDRs, by class segment:


	March 31, 2021		December 31, 2020
	(in thousands)
Real estate - commercial mortgage	$	27,961	$	28,451
Commercial and industrial	7,041		6,982
Real estate - residential mortgage	18,214		18,602
Real estate - home equity	13,674		14,391
Real estate - construction	154		—
Consumer	5		—

Total accruing TDRs	67,049		68,426
Non-accrual TDRs (1)	44,986		35,755
Total TDRs	$	112,035	$	104,181

(1)Included in non-accrual loans in the preceding table detailing non-performing assets.

The following table presents TDRs, by class segment, for loans that were modified during the three months ended March 31, 2021 and 2020:


	Three months ended March 31
	2021			2020
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	4	$	1,894	1	$	74
Real estate - commercial mortgage	2	4,162		1	392
Real estate - residential mortgage	23	7,626		7	660

Real estate - home equity	5	148		8	577
Real estate - construction	1	154		—	—

Total	35	$	13,984	17	$	1,703

Restructured loan modifications may include payment schedule modifications, interest rate concessions, bankruptcies, principal reduction or some combination of these concessions. The restructured loan modifications primarily included maturity date extensions, rate modifications and payment schedule modifications.

In accordance with regulatory guidance, payment schedule modifications granted after March 13, 2020 to borrowers impacted by the effects of the COVID-19 pandemic and who were not delinquent at the time of the payment schedule modifications have been excluded from TDRs. As of March 31, 2021 and 2020, payment schedule modifications having a recorded investment of $3.6 billion and $1.0 billion, respectively, were excluded from TDRs based on this regulatory guidance.