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Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2021

Net Loans are summarized as follows:


	September 30, 2021		December 31, 2020
	(in thousands)
Real estate - commercial mortgage	$	7,145,115	$	7,105,092
Commercial and industrial (1)	4,454,059		5,670,828
Real-estate - residential mortgage	3,719,684		3,141,915
Real-estate - home equity	1,126,628		1,202,913
Real-estate - construction	1,111,487		1,047,218
Consumer	458,595		466,772
Equipment lease financing and other	266,489		284,377
Overdrafts	5,471		4,806
Gross loans	18,287,528		18,923,921
Unearned income	(18,121)		(23,101)
Net Loans	$	18,269,407	$	18,900,820

(1) Includes PPP loans totaling $0.6 billion and $1.6 billion as of September 30, 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.

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:



	September 30, 2021		December 31, 2020
	(in thousands)
ACL - loans	$	256,727	$	277,567
ACL - OBS credit exposure	14,783		14,373
Total ACL	$	271,510	$	291,940

The following table presents the activity in the ACL:


	Three months ended September 30				Nine months ended September 30
	2021		2020			2021		2020
	(in thousands)
Balance at beginning of period	$	269,805	$	272,920		$	291,940	$	166,209
Impact of adopting CECL on January 1, 2020 (1)	—		—			—		58,348
Loans charged off	(2,234)		(5,489)			(19,958)		(27,539)
Recoveries of loans previously charged off	4,539		7,847			9,128		14,660
Net loans recovered/(charged off)	2,305		2,358			(10,830)		(12,879)
Provision for credit losses (2)	(600)		7,080			(9,600)		70,680
Balance at end of period	$	271,510	$	282,358		$	271,510	$	282,358

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

(2) Includes $10,000 and $850,000 related to OBS credit exposures for the three months ended September 30, 2021 and 2020, respectively, and includes $410,000 and $320,000 related to OBS credit exposure for the nine months ended September 30, 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 September 30, 2021
Balance at June 30, 2021	$	95,381	$	65,404	$	12,593	$	54,188	$	12,654	$	9,401	$	5,411	$	255,032
Loans charged off	(14)		(647)		(58)		(602)		—		(446)		(467)		(2,234)
Recoveries of loans previously charged off	564		2,330		78		86		697		426		358		4,539
Net loans recovered (charged off)	550		1,683		20		(516)		697		(20)		(109)		2,305
Provision for loan losses (1)	234		(4,196)		(202)		2,557		(930)		(324)		2,251		(610)
Balance at September 30, 2021	$	96,165	$	62,891	$	12,411	$	56,229	$	12,421	$	9,057	$	7,553	$	256,727
Three months ended September 30, 2020
Balance at June 30, 2020	$	102,695	$	61,447	$	16,391	$	46,443	$	12,314	$	10,299	$	6,948	$	256,537
Loans charged off	(746)		(2,969)		(393)		(198)		—		(701)		(483)		(5,490)
Recoveries of loans previously charged off	100		2,103		44		95		4,873		447		185		7,847
Net loans recovered (charged off)	(646)		(866)		(349)		(103)		4,873		(254)		(298)		2,357
Provision for loan and lease losses (1)	9,806		(1,743)		256		2,013		(2,177)		260		(484)		7,931
Balance at September 30, 2020	$	111,855	$	58,838	$	16,298	$	48,353	$	15,010	$	10,305	$	6,166	$	266,825
Nine months ended September 30, 2021
Balance at December 31, 2020	$	103,425	$	74,771	$	14,232	$	51,995	$	15,608	$	10,905	$	6,631	$	277,567

Loans charged off	(8,357)		(5,920)		(482)		(1,290)		(39)		(1,999)		(1,871)		(19,958)
Recoveries of loans previously charged off	1,467		3,792		187		286		1,335		1,391		670		9,128
Net loans recovered (charged off)	(6,890)		(2,128)		(295)		(1,004)		1,296		(608)		(1,201)		(10,830)
Provision for loan losses (1)	(370)		(9,752)		(1,526)		5,238		(4,483)		(1,240)		2,123		(10,010)
Balance at September 30, 2021	$	96,165	$	62,891	$	12,411	$	56,229	$	12,421	$	9,057	$	7,553	$	256,727
Nine months ended September 30, 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	(3,925)		(17,348)		(1,138)		(620)		(17)		(2,788)		(1,704)		(27,540)
Recoveries of loans previously charged off	439		6,815		305		292		4,943		1,481		385		14,660
Net loans recovered (charged off)	(3,486)		(10,533)		(833)		(328)		4,926		(1,307)		(1,319)		(12,880)
Provision for loan losses (1)	40,370		19,345		(548)		7,675		1,626		1,881		11		70,360
Balance at September 30, 2020	$	111,855	$	58,838	$	16,298	$	48,353	$	15,010	$	10,305	$	6,166	$	266,825

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

Several factors as of the end of the third quarter of 2021 in comparison to the end of the fourth quarter of 2020, including improved economic conditions, reduced the level of the ACL determined to be necessary as of September 30, 2021, resulting in the negative provision for credit losses for the both the three and nine months ended September 30, 2021. The higher provision expense during the first nine months of 2020 was largely driven by the overall downturn in economic conditions due to COVID-19, resulting in higher expected future credit losses under CECL. Qualitative adjustments during the first nine 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. These uncertainties included 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 did not appear to be 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 September 30, 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 September 30, 2021 and December 31, 2020, approximately 92% 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:


	September 30, 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	$	21,415	$	26,719	$	48,134	$	19,909	$	31,561	$	51,470
Commercial and industrial	14,413		15,024		29,437		13,937		18,056		31,993
Real estate - residential mortgage	34,125		1,256		35,381		24,590		1,517		26,107
Real estate - home equity	8,785		—		8,785		9,398		190		9,588
Real estate - construction	173		786		959		437		958		1,395
Consumer	263		—		263		332		—		332
Equipment lease financing and other	6,462		9,412		15,874		—		16,313		16,313
	$	85,636	$	53,197	$	138,833	$	68,603	$	68,595	$	137,198

As of September 30, 2021 and December 31, 2020, there were $53.2 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:


		September 30, 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	$	128,034	$	293,806	$	151,408	$	144,492	$	33,644	$	125,191	$	51,540	$	—	$	928,115
	Special Mention	4,995		—		5,588		—		—		8,708		—		—		19,291
	Substandard or Lower	—		—		153		—		1,928		1,145		235		—		3,461
	Total real estate - construction	133,029		293,806		157,149		144,492		35,572		135,044		51,775		—		950,867
Real estate - construction(1)
	Current period gross charge-offs	—		—		(39)		—		—		—		—		—		(39)
	Current period recoveries	—		—		39		—		—		1,296		—		—		1,335
	Total net (charge-offs) recoveries	—		—		—		—		—		1,296		—		—		1,296
Commercial and industrial
	Pass	944,250		593,100		440,777		241,747		169,970		621,558		1,134,355		—		4,145,757
	Special Mention	1,334		12,204		30,505		16,791		7,933		42,241		49,972		95		161,075
	Substandard or Lower	419		8,590		15,586		22,916		12,733		36,887		47,329		2,767		147,227
	Total commercial and industrial	946,003		613,894		486,868		281,454		190,636		700,686		1,231,656		2,862		4,454,059
Commercial and industrial
	Current period gross charge-offs	—		(70)		(128)		(110)		(155)		(529)		(4,928)		—		(5,920)
	Current period recoveries	—		—		78		835		335		1,739		805		—		3,792
	Total net (charge-offs) recoveries	—		(70)		(50)		725		180		1,210		(4,123)		—		(2,128)
Real estate - commercial mortgage
	Pass	680,108		959,013		915,762		629,123		725,055		2,467,159		54,023		—		6,430,243
	Special Mention	2,285		26,391		44,713		92,508		79,543		248,743		188		105		494,476
	Substandard or Lower	—		8,197		25,745		14,884		37,701		131,514		2,319		36		220,396
	Total real estate - commercial mortgage	682,393		993,601		986,220		736,515		842,299		2,847,416		56,530		141		7,145,115
Real estate - commercial mortgage
	Current period gross charge-offs	—		—		(14)		(25)		(6,603)		(1,517)		(198)		—		(8,357)
	Current period recoveries	—		—		—		—		27		1,440		—		—		1,467
	Total net (charge-offs) recoveries	—		—		(14)		(25)		(6,576)		(77)		(198)		—		(6,890)
Total
	Pass	$	1,752,392	$	1,845,919	$	1,507,947	$	1,015,362	$	928,669	$	3,213,908	$	1,239,918	$	—	$	11,504,115
	Special Mention	8,614		38,595		80,806		109,299		87,476		299,692		50,160		200		674,842
	Substandard or Lower	419		16,787		41,484		37,800		52,362		169,546		49,883		2,803		371,084
	Total	$	1,761,425	$	1,901,301	$	1,630,237	$	1,162,461	$	1,068,507	$	3,683,146	$	1,339,961	$	3,003	$	12,550,041

(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:


		September 30, 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	$	24,122	$	25,743	$	6,929	$	10,265	$	8,210	$	100,740	$	935,387	$	4,161	$	1,115,557
	Nonperforming	—		—		—		16		233		2,124		8,698		—		11,071
	Total real estate - home equity	24,122		25,743		6,929		10,281		8,443		102,864		944,085		4,161		1,126,628
Real estate - home equity
	Current period gross charge-offs	—		—		(41)		—		—		(171)		(270)		—		(482)
	Current period recoveries	—		—		—		—		—		82		105		—		187
	Total net (charge-offs) recoveries	—		—		(41)		—		—		(89)		(165)		—		(295)
Real estate - residential mortgage
	Performing	1,250,164		1,178,626		385,806		129,589		220,587		517,694		—		—		3,682,466
	Nonperforming	—		6,639		1,701		3,390		2,726		22,762		—		—		37,218
	Total real estate - residential mortgage	1,250,164		1,185,265		387,507		132,979		223,313		540,456		—		—		3,719,684
Real estate - residential mortgage
	Current period gross charge-offs	—		(626)		(148)		(125)		(4)		(387)		—		—		(1,290)
	Current period recoveries	—		—		1		15		—		178		92		—		286
	Total net (charge-offs) recoveries	—		(626)		(147)		(110)		(4)		(209)		92		—		(1,004)
Consumer
	Performing	102,573		87,668		73,606		67,172		29,069		46,371		51,696		—		458,155
	Nonperforming	64		145		21		56		33		96		25		—		440
	Total consumer	102,637		87,813		73,627		67,228		29,102		46,467		51,721		—		458,595
Consumer
	Current period gross charge-offs	(12)		(359)		(239)		(235)		(219)		(195)		(740)		—		(1,999)
	Current period recoveries	—		122		103		86		129		704		247		—		1,391
	Total net (charge-offs) recoveries	(12)		(237)		(136)		(149)		(90)		509		(493)		—		(608)
Equipment lease financing and other
	Performing	71,134		64,931		50,952		35,124		22,960		10,985		—		—		256,086
	Nonperforming	—		—		—		—		15,718		156		—		—		15,874
	Total leasing and other	71,134		64,931		50,952		35,124		38,678		11,141		—		—		271,960
Equipment lease financing and other
	Current period gross charge-offs	(595)		(1,276)		—		—		—		—		—		—		(1,871)
	Current period recoveries	215		320		83		8		14		30		—		—		670
	Total net (charge-offs) recoveries	(380)		(956)		83		8		14		30		—		—		(1,201)
Construction - other
	Performing	80,993		69,823		4,611		5,009		—		11		—		—		160,447
	Nonperforming	—		—		—		—		173		—		—		—		173
	Total construction - other	80,993		69,823		4,611		5,009		173		11		—		—		160,620
Construction - other
	Current period gross charge-offs	—		—		—		—		—		—		—		—		—
	Current period recoveries	—		—		—		—		—		—		—		—		—
	Total net (charge-offs) recoveries	—		—		—		—		—		—		—		—		—
Total
	Performing	$	1,528,986	$	1,426,791	$	521,904	$	247,159	$	280,826	$	675,801	$	987,083	$	4,161	$	5,672,711
	Nonperforming	64		6,784		1,722		3,462		18,883		25,138		8,723		—		64,776
	Total	$	1,529,050	$	1,433,575	$	523,626	$	250,621	$	299,709	$	700,939	$	995,806	$	4,161	$	5,737,487


		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:


	September 30, 2021		December 31, 2020
	(in thousands)
Non-accrual loans	$	138,833	$	137,198
Loans 90 days or more past due and still accruing	11,389		9,929
Total non-performing loans	150,222		147,127
OREO (1)	1,896		4,178
Total non-performing assets	$	152,118	$	151,305

(1) Excludes $7.1 million and $8.1 million of residential mortgage properties for which formal foreclosure proceedings were in process as of September 30, 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)
September 30, 2021
Real estate – commercial mortgage	$	7,495	$	240	$	3,966	$	48,134	$	7,085,280	$	7,145,115
Commercial and industrial	16,134		1,366		3,261		29,437		4,403,861		4,454,059
Real estate – residential mortgage	19,365		2,974		1,695		35,381		3,660,269		3,719,684
Real estate – home equity	3,245		1,194		2,286		8,785		1,111,118		1,126,628
Real estate – construction	360		—		5		959		1,110,163		1,111,487
Consumer	2,412		475		176		263		455,269		458,595
Equipment lease financing and other	306		—		—		15,874		237,659		253,839
Total	$	49,317	$	6,249	$	11,389	$	138,833	$	18,063,619	$	18,269,407


	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:


	September 30, 2021		December 31, 2020
	(in thousands)
Real estate - commercial mortgage	$	14,546	$	28,451
Commercial and industrial	6,577		6,982
Real estate - residential mortgage	13,694		18,602
Real estate - home equity	12,704		14,391
Real estate - construction	153		—
Consumer	5		—

Total accruing TDRs	47,679		68,426
Non-accrual TDRs (1)	59,802		35,755
Total TDRs	$	107,481	$	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 and nine months ended September 30, 2021 and 2020:


	Three months ended September 30						Nine months ended September 30
	2021			2020			2021			2020
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	5	$	852	4	$	3,021	9	$	2,745	18	$	4,399
Real estate - commercial mortgage	4	9,129		5	8,394		9	16,020		12	24,868
Real estate - residential mortgage	5	1,703		8	1,351		42	12,431		48	10,516

Real estate - home equity	6	123		13	1,370		22	870		40	3,556
Real estate - construction	—	—		—	—		1	154		—	—
Consumer	—	—		3	53		—	—		11	238
Total	20	$	11,807	33	$	14,189	83	$	32,220	129	$	43,577

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 September 30, 2021 and 2020, payment schedule modifications since the inception of this guidance having a recorded investment of $3.3 billion and $3.8 billion, respectively, were excluded from TDRs. As of September 30, 2021, $65.1 million in recorded investment remain in active COVID-19 deferral programs.