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Loans and Allowance for Credit Losses | 9 Months Ended
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Sep. 30, 2022
Receivables [Abstract] |
Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Loans and leases, net of unearned income Loans and leases, net of unearned income are summarized as follows:
| September 30, 2022 |  | December 31, 2021
| (in thousands)
Real estate - commercial mortgage | $ | 7,554,509 |  |  | $ | 7,279,080 |
Commercial and industrial (1) | 4,243,392 |  |  | 4,208,327 |
Real-estate - residential mortgage | 4,574,228 |  |  | 3,846,750 |
Real-estate - home equity | 1,110,103 |  |  | 1,118,248 |
Real-estate - construction | 1,273,097 |  |  | 1,139,779 |
Consumer | 633,666 |  |  | 464,657 |
Equipment lease financing and other | 328,057 |  |  | 283,557 |
Overdrafts | 2,162 |  |  | 1,988 |
Gross loans | 19,719,214 |  |  | 18,342,386 |
Unearned income | (24,015) |  |  | (17,036) |
Net loans | $ | 19,695,199 |  |  | $ | 18,325,350 |
(1) Includes PPP loans totaling $32.1 million and $301.3 million as of September 30, 2022 and December 31, 2021, 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 ACL related to loans consists of loans evaluated collectively and individually for expected credit losses. The ACL related to loans represents an estimate of expected credit losses over the expected life of the loans as of the balance sheet date and is recorded as a reduction to net loans. The ACL for OBS credit exposure includes estimated losses on unfunded loan commitments, letters of credit and other OBS credit exposures and is recorded in other liabilities. The total ACL is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries. The following table presents the components of the ACL:
| September 30, 2022 |  | December 31, 2021
| (in thousands)
ACL - loans | $ | 266,838 |  |  | $ | 249,001 |
ACL - OBS credit exposure(1) | 15,690 |  |  | 14,533 |
Total ACL | $ | 282,528 |  |  | $ | 263,534 |
(1) Included in other liabilities on the Consolidated Balance Sheets. The following table presents the activity in the ACL:
| Three months ended September 30 | Nine months ended September 30
| 2022 |  | 2021 |  | 2022 |  | 2021
| (in thousands) |  |  |  |
Balance at beginning of period | $ | 262,887 |  |  | $ | 269,805 |  |  | $ | 263,534 |  |  | $ | 291,940 |
CECL Day 1 Provision expense | 7,954 |  |  | — |  |  | 7,954 |  |  | — |
Purchased credit deteriorated loans | 1,135 |  |  | — |  |  | 1,135 |  |  | — |
Loans charged off | (3,724) |  |  | (2,234) |  |  | (7,242) |  |  | (19,958) |
Recoveries of loans previously charged off | 3,272 |  |  | 4,539 |  |  | 11,593 |  |  | 9,128 |
Net loans (charged-off) recovered | (452) |  |  | 2,305 |  |  | 4,351 |  |  | (10,830) |
Provision for credit losses (1) | 11,004 |  |  | (600) |  |  | 5,554 |  |  | (9,600) |
Balance at end of period | $ | 282,528 |  |  | $ | 271,510 |  |  | $ | 282,528 |  |  | $ | 271,510 |
(1) Includes $1.4 million and $10 thousand for the three months ended September 30, 2022 and 2021, respectively, and includes $1.2 million and $0.4 million for the nine months ended September 30, 2022 and 2021, respectively, related to OBS credit exposure. The following table presents the activity in the ACL by portfolio segment:
| Real Estate Commercial Mortgage |  | Commercial and Industrial |  | Consumer and Home Equity |  | Real Estate Residential Mortgage |  | Real Estate Construction |  | Equipment lease financing, other and overdrafts |  | Total
| (in thousands)
Three months ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at June 30, 2022 | $ | 72,605 |  |  | $ | 72,119 |  |  | $ | 23,080 |  |  | $ | 61,635 |  |  | $ | 10,628 |  |  | $ | 8,497 |  |  | $ | 248,564 |
CECL Day 1 Provision expense | 4,107 |  |  | — |  |  | 131 |  |  | 3,716 |  |  | — |  |  | — |  |  | 7,954 |
Purchased credit deteriorated loans | 1,051 |  |  | — |  |  | 7 |  |  | 77 |  |  | — |  |  | — |  |  | 1,135 |
Loans charged off | (86) |  |  | (1,783) |  |  | (1,172) |  |  | — |  |  | — |  |  | (683) |  |  | (3,724) |
Recoveries of loans previously charged off | 29 |  |  | 2,213 |  |  | 682 |  |  | 101 |  |  | — |  |  | 247 |  |  | 3,272 |
Net loans recovered (charged off) | (57) |  |  | 430 |  |  | (490) |  |  | 101 |  |  | — |  |  | (436) |  |  | (452) |
Provision for loan losses (1) | 11,144 |  |  | (6,424) |  |  | 1,812 |  |  | 1,880 |  |  | 1,045 |  |  | 180 |  |  | 9,637 |
Balance at September 30, 2022 | $ | 88,850 |  |  | $ | 66,125 |  |  | $ | 24,540 |  |  | $ | 67,409 |  |  | $ | 11,673 |  |  | $ | 8,241 |  |  | $ | 266,838 |
Three months ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at June 30, 2021 | $ | 95,381 |  |  | $ | 65,404 |  |  | $ | 21,994 |  |  | $ | 54,188 |  |  | $ | 12,654 |  |  | $ | 5,411 |  |  | $ | 255,032 |
Loans charged off | (14) |  |  | (647) |  |  | (504) |  |  | (602) |  |  | — |  |  | (467) |  |  | (2,234) |
Recoveries of loans previously charged off | 564 |  |  | 2,330 |  |  | 504 |  |  | 86 |  |  | 697 |  |  | 358 |  |  | 4,539 |
Net loans recovered (charged off) | 550 |  |  | 1,683 |  |  | — |  |  | (516) |  |  | 697 |  |  | (109) |  |  | 2,305 |
Provision for loan and lease losses (1) | 234 |  |  | (4,196) |  |  | (526) |  |  | 2,557 |  |  | (930) |  |  | 2,251 |  |  | (610) |
Balance at September 30, 2021 | $ | 96,165 |  |  | $ | 62,891 |  |  | $ | 21,468 |  |  | $ | 56,229 |  |  | $ | 12,421 |  |  | $ | 7,553 |  |  | $ | 256,727 |
Nine months ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2021 | $ | 87,970 |  |  | $ | 67,056 |  |  | $ | 19,749 |  |  | $ | 54,236 |  |  | $ | 12,941 |  |  | $ | 7,049 |  |  | $ | 249,001 |
CECL Day 1 Provision expense | 4,107 |  |  | — |  |  | 131 |  |  | 3,716 |  |  | — |  |  | — |  |  | 7,954 |
Purchased credit deteriorated loans | 1,051 |  |  | — |  |  | 7 |  |  | 77 |  |  | — |  |  | — |  |  | 1,135 |
Loans charged off | (238) |  |  | (2,211) |  |  | (3,101) |  |  | (66) |  |  | — |  |  | (1,626) |  |  | (7,242) |
Recoveries of loans previously charged off | 3,677 |  |  | 4,932 |  |  | 1,898 |  |  | 415 |  |  | 44 |  |  | 627 |  |  | 11,593 |
Net loans recovered (charged off) | 3,439 |  |  | 2,721 |  |  | (1,203) |  |  | 349 |  |  | 44 |  |  | (999) |  |  | 4,351 |
Provision for loan losses (1) | (7,717) |  |  | (3,652) |  |  | 5,856 |  |  | 9,031 |  |  | (1,312) |  |  | 2,191 |  |  | 4,397 |
Balance at September 30, 2022 | $ | 88,850 |  |  | $ | 66,125 |  |  | $ | 24,540 |  |  | $ | 67,409 |  |  | $ | 11,673 |  |  | $ | 8,241 |  |  | $ | 266,838 |
Nine months ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 | $ | 103,425 |  |  | $ | 74,771 |  |  | $ | 25,137 |  |  | $ | 51,995 |  |  | $ | 15,608 |  |  | $ | 6,631 |  |  | $ | 277,567 |
Loans charged off | (8,357) |  |  | (5,920) |  |  | (2,481) |  |  | (1,290) |  |  | (39) |  |  | (1,871) |  |  | (19,958) |
Recoveries of loans previously charged off | 1,467 |  |  | 3,792 |  |  | 1,578 |  |  | 286 |  |  | 1,335 |  |  | 670 |  |  | 9,128 |
Net loans recovered (charged off) | (6,890) |  |  | (2,128) |  |  | (903) |  |  | (1,004) |  |  | 1,296 |  |  | (1,201) |  |  | (10,830) |
Provision for loan losses (1) | (370) |  |  | (9,752) |  |  | (2,766) |  |  | 5,238 |  |  | (4,483) |  |  | 2,123 |  |  | (10,010) |
Balance at September 30, 2021 | $ | 96,165 |  |  | $ | 62,891 |  |  | $ | 21,468 |  |  | $ | 56,229 |  |  | $ | 12,421 |  |  | $ | 7,553 |  |  | $ | 256,727 |
(1) Provision included in the table only includes the portion related to net loans. Included in the third quarter of 2022 provision for credit losses was a CECL Day 1 Provision of $8.0 million for the acquired Prudential Bancorp loan portfolio. The ACL also included $1.1 million for purchased credit deteriorated loans for the acquired Prudential Bancorp loan portfolio. The ACL includes qualitative adjustments, as appropriate, intended to capture the impact of uncertainties not reflected in the quantitative models. Qualitative adjustments include and consider changes in national, regional and local economic and business conditions, an assessment of the lending environment, including underwriting standards and other factors affecting credit quality. The provision for credit losses for the third quarter of 2022 was recorded to increase the allowance for credit losses as a result of an increase in non-performing loans, as well as increases for the office building portfolio, reflected in the commercial real estate loan portfolio, and the consumer loan, real estate construction and residential mortgage loan portfolios. Non-accrual Loans All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of September 30, 2022 and December 31, 2021, 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, 2022 and December 31, 2021, approximately 89% and 98%, 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, 2022 |  | December 31, 2021
| With a Related Allowance |  | Without a Related Allowance |  | Total |  | With a Related Allowance |  | Without a Related Allowance |  | Total
| (in thousands)
Real estate - commercial mortgage | $ | 58,518 |  |  | $ | 36,186 |  |  | $ | 94,704 |  |  | $ | 20,564 |  |  | $ | 32,251 |  |  | $ | 52,815 |
Commercial and industrial | 11,171 |  |  | 18,633 |  |  | 29,804 |  |  | 12,571 |  |  | 17,570 |  |  | 30,141 |
Real estate - residential mortgage | 31,464 |  |  | — |  |  | 31,464 |  |  | 35,269 |  |  | — |  |  | 35,269 |
Real estate - home equity | 6,960 |  |  | 133 |  |  | 7,093 |  |  | 8,671 |  |  | — |  |  | 8,671 |
Real estate - construction | 185 |  |  | 1,271 |  |  | 1,456 |  |  | 173 |  |  | 728 |  |  | 901 |
Consumer | 101 |  |  | — |  |  | 101 |  |  | 229 |  |  | — |  |  | 229 |
Equipment lease financing and other | 4,327 |  |  | 9,255 |  |  | 13,582 |  |  | 6,247 |  |  | 9,393 |  |  | 15,640 |
| $ | 112,726 |  |  | $ | 65,478 |  |  | $ | 178,204 |  |  | $ | 83,724 |  |  | $ | 59,942 |  |  | $ | 143,666 |
As of September 30, 2022 and December 31, 2021, there were $65.5 million and $59.9 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 table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the current period:
|  | September 30, 2022
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  | (in thousands) | Amortized | Amortized |
| 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Cost Basis | Cost Basis | Total
Real estate - construction(1) |  |  |  |  |  |  |  |  |
| Pass | $ | 102,525 |  | $ | 355,433 |  | $ | 299,312 |  | $ | 48,953 |  | $ | 49,473 |  | $ | 113,662 |  | $ | 37,564 |  | $ | — |  | $ | 1,006,922 |
| Special Mention | — |  | — |  | 2,789 |  | — |  | — |  | 5,463 |  | — |  | — |  | 8,252 |
| Substandard or Lower | — |  | — |  | — |  | 2,310 |  | — |  | 4,633 |  | 208 |  | — |  | 7,151 |
| Total real estate - construction | 102,525 |  | 355,433 |  | 302,101 |  | 51,263 |  | 49,473 |  | 123,758 |  | 37,772 |  | — |  | 1,022,325 |
Real estate - construction(1) |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Current period recoveries | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 44 |  | 44 |
| Total net (charge-offs) recoveries | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 44 |  | 44 |
Commercial and industrial(2) |  |  |  |  |  |  |  |
| Pass | 635,272 |  | 497,464 |  | 419,171 |  | 337,009 |  | 191,715 |  | 641,262 |  | 1,306,921 |  | 962 |  | 4,029,776 |
| Special Mention | 7,762 |  | 10,941 |  | 8,550 |  | 8,819 |  | 4,957 |  | 21,754 |  | 41,119 |  | — |  | 103,902 |
| Substandard or Lower | 791 |  | 4,887 |  | 3,893 |  | 14,400 |  | 6,316 |  | 23,992 |  | 55,435 |  | — |  | 109,714 |
| Total commercial and industrial | 643,825 |  | 513,292 |  | 431,614 |  | 360,228 |  | 202,988 |  | 687,008 |  | 1,403,475 |  | 962 |  | 4,243,392 |
Commercial and industrial |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | (36) |  | — |  | (21) |  | (365) |  | (1,192) |  | (597) |  | (2,211) |
| Current period recoveries | — |  | — |  | 30 |  | 95 |  | 379 |  | 1,618 |  | 747 |  | 2,063 |  | 4,932 |
| Total net (charge-offs) recoveries | — |  | — |  | (6) |  | 95 |  | 358 |  | 1,253 |  | (445) |  | 1,466 |  | 2,721 |
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Pass | 730,581 |  | 1,147,950 |  | 955,537 |  | 808,474 |  | 613,888 |  | 2,680,340 |  | 65,607 |  | — |  | 7,002,377 |
| Special Mention | 96 |  | 29,528 |  | 38,858 |  | 35,957 |  | 18,060 |  | 155,437 |  | 1,200 |  | — |  | 279,136 |
| Substandard or Lower | 94 |  | 1,496 |  | 7,563 |  | 68,248 |  | 28,686 |  | 166,666 |  | 243 |  | — |  | 272,996 |
| Total real estate - commercial mortgage | 730,771 |  | 1,178,974 |  | 1,001,958 |  | 912,679 |  | 660,634 |  | 3,002,443 |  | 67,050 |  | — |  | 7,554,509 |
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | (238) |  | (238) |
| Current period recoveries | — |  | — |  | — |  | — |  | — |  | 4 |  | — |  | 3,673 |  | 3,677 |
| Total net (charge-offs) recoveries | — |  | — |  | — |  | — |  | — |  | 4 |  | — |  | 3,435 |  | 3,439 |
Total |  |  |  |  |  |  |  |
| Pass | $ | 1,468,378 |  | $ | 2,000,847 |  | $ | 1,674,020 |  | $ | 1,194,436 |  | $ | 855,076 |  | $ | 3,435,264 |  | $ | 1,410,092 |  | $ | 962 |  | $ | 12,039,075 |
| Special Mention | 7,858 |  | 40,469 |  | 50,197 |  | 44,776 |  | 23,017 |  | 182,654 |  | 42,319 |  | — |  | 391,290 |
| Substandard or Lower | 885 |  | 6,383 |  | 11,456 |  | 84,958 |  | 35,002 |  | 195,291 |  | 55,886 |  | — |  | 389,861 |
| Total | $ | 1,477,121 |  | $ | 2,047,699 |  | $ | 1,735,673 |  | $ | 1,324,170 |  | $ | 913,095 |  | $ | 3,813,209 |  | $ | 1,508,297 |  | $ | 962 |  | $ | 12,820,226 |
(1) Excludes real estate - construction - other. (2) Loans originated in 2021 and 2020 include $32.1 million of PPP loans that were assigned a rating of Pass based on the existence of a federal government guaranty through the SBA. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period:
|  | December 31, 2021
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  | ( in thousands) | Amortized | Amortized |
| 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Cost Basis | Cost Basis | Total
Real estate - construction(1) |  |  |  |  |  |  |  |
| Pass | $ | 190,030 |  | $ | 315,811 |  | $ | 113,245 |  | $ | 83,886 |  | $ | 17,545 |  | $ | 117,157 |  | $ | 46,409 |  | $ | — |  | $ | 884,083 |
| Special Mention | 5,843 |  | 775 |  | 9,984 |  | 20,200 |  | 15,724 |  | 6,315 |  | — |  | — |  | 58,841 |
| Substandard or Lower | — |  | — |  | — |  | — |  | 1,912 |  | 4,185 |  | 227 |  | — |  | 6,324 |
| Total real estate - construction | 195,873 |  | 316,586 |  | 123,229 |  | 104,086 |  | 35,181 |  | 127,657 |  | 46,636 |  | — |  | 949,248 |
Real estate - construction(1) |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | (39) |  | — |  | — |  | — |  | — |  | — |  | (39) |
| Current period recoveries | — |  | — |  | 39 |  | — |  | — |  | 1,373 |  | — |  | — |  | 1,412 |
| Total net (charge-offs) recoveries | — |  | — |  | — |  | — |  | — |  | 1,373 |  | — |  | — |  | 1,373 |
Commercial and industrial(2) |  |  |  |  |  |  |  |
| Pass | 855,924 |  | 520,802 |  | 396,575 |  | 232,805 |  | 147,675 |  | 581,762 |  | 1,177,857 |  | 339 |  | 3,913,739 |
| Special Mention | 5,386 |  | 8,538 |  | 33,937 |  | 8,301 |  | 10,346 |  | 23,380 |  | 52,386 |  | 95 |  | 142,369 |
| Substandard or Lower | 1,225 |  | 9,775 |  | 19,393 |  | 24,327 |  | 11,912 |  | 34,825 |  | 49,562 |  | 1,200 |  | 152,219 |
| Total commercial and industrial | 862,535 |  | 539,115 |  | 449,905 |  | 265,433 |  | 169,933 |  | 639,967 |  | 1,279,805 |  | 1,634 |  | 4,208,327 |
Commercial and industrial |  |  |  |  |  |  |  |
| Current period gross charge-offs | (2,977) |  | (406) |  | (4,966) |  | (208) |  | (286) |  | (800) |  | (5,694) |  | — |  | (15,337) |
| Current period recoveries | 6 |  | 39 |  | 4,691 |  | 841 |  | 457 |  | 2,342 |  | 1,211 |  | — |  | 9,587 |
| Total net (charge-offs) recoveries | (2,971) |  | (367) |  | (275) |  | 633 |  | 171 |  | 1,542 |  | (4,483) |  | — |  | (5,750) |
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Pass | 1,086,113 |  | 899,172 |  | 826,866 |  | 624,653 |  | 712,223 |  | 2,356,308 |  | 55,370 |  | — |  | 6,560,705 |
| Special Mention | 1,317 |  | 60,732 |  | 96,508 |  | 25,280 |  | 33,595 |  | 169,732 |  | 115 |  | — |  | 387,279 |
| Substandard or Lower | 1,537 |  | 8,516 |  | 28,810 |  | 68,818 |  | 69,793 |  | 151,450 |  | 684 |  | 1,488 |  | 331,096 |
| Total real estate - commercial mortgage | 1,088,967 |  | 968,420 |  | 952,184 |  | 718,751 |  | 815,611 |  | 2,677,490 |  | 56,169 |  | 1,488 |  | 7,279,080 |
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | (14) |  | (25) |  | (6,972) |  | (1,517) |  | (198) |  | — |  | (8,726) |
| Current period recoveries | — |  | — |  | — |  | — |  | 983 |  | 1,491 |  | — |  | — |  | 2,474 |
| Total net (charge-offs) recoveries | — |  | — |  | (14) |  | (25) |  | (5,989) |  | (26) |  | (198) |  | — |  | (6,252) |
Total |  |  |  |  |  |  |  |
| Pass | $ | 2,132,067 |  | $ | 1,735,785 |  | $ | 1,336,686 |  | $ | 941,344 |  | $ | 877,443 |  | $ | 3,055,227 |  | $ | 1,279,636 |  | $ | 339 |  | $ | 11,358,527 |
| Special Mention | 12,546 |  | 70,045 |  | 140,429 |  | 53,781 |  | 59,665 |  | 199,427 |  | 52,501 |  | 95 |  | 588,489 |
| Substandard or Lower | 2,762 |  | 18,291 |  | 48,203 |  | 93,145 |  | 83,617 |  | 190,460 |  | 50,473 |  | 2,688 |  | 489,639 |
| Total | $ | 2,147,375 |  | $ | 1,824,121 |  | $ | 1,525,318 |  | $ | 1,088,270 |  | $ | 1,020,725 |  | $ | 3,445,114 |  | $ | 1,382,610 |  | $ | 3,122 |  | $ | 12,436,655 |
(1) Excludes real estate - construction - other. (2) Loans originated in 2021 and 2020 include $301.3 million of PPP loans that were assigned a rating of Pass based on the existence of a federal government guaranty through the SBA. The Corporation considers the performance of the loan portfolio and its impact on the ACL. 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 and 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, 2022
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  | (in thousands) | Amortized | Amortized |
|  | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Cost Basis | Cost Basis | Total
Consumer and real estate - home equity |  |  |  |  |  |  |  |
| Performing | $ | 323,238 |  | $ | 121,500 |  | $ | 89,432 |  | $ | 59,199 |  | $ | 51,895 |  | $ | 98,043 |  | $ | 847,612 |  | $ | 142,704 |  | $ | 1,733,623 |
| Nonperforming | 152 |  | 209 |  | 32 |  | 167 |  | 112 |  | 2,071 |  | 1,739 |  | 5,664 |  | 10,146 |
| Total consumer and real estate - home equity | 323,390 |  | 121,709 |  | 89,464 |  | 59,366 |  | 52,007 |  | 100,114 |  | 849,351 |  | 148,368 |  | 1,743,769 |
Consumer and real estate - home equity |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | (587) |  | (70) |  | (108) |  | (16) |  | (355) |  | (178) |  | (1,787) |  | (3,101) |
| Current period recoveries | — |  | 44 |  | 88 |  | 29 |  | 16 |  | 516 |  | 248 |  | 957 |  | 1,898 |
| Total net (charge-offs) recoveries | — |  | (543) |  | 18 |  | (79) |  | — |  | 161 |  | 70 |  | (830) |  | (1,203) |
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Performing | 763,300 |  | 1,672,528 |  | 1,077,559 |  | 296,437 |  | 87,861 |  | 634,295 |  | — |  | — |  | 4,531,980 |
| Nonperforming | — |  | 2,610 |  | 5,222 |  | 4,696 |  | 3,983 |  | 25,737 |  | — |  | — |  | 42,248 |
| Total real estate - residential mortgage | 763,300 |  | 1,675,138 |  | 1,082,781 |  | 301,133 |  | 91,844 |  | 660,032 |  | — |  | — |  | 4,574,228 |
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | (66) |  | (66) |
| Current period recoveries | — |  | — |  | 4 |  | — |  | 27 |  | 261 |  | — |  | 123 |  | 415 |
| Total net (charge-offs) recoveries | — |  | — |  | 4 |  | — |  | 27 |  | 261 |  | — |  | 57 |  | 349 |
Equipment lease financing and other |  |  |  |  |  |  |  |
| Performing | 134,364 |  | 45,541 |  | 44,928 |  | 33,309 |  | 17,173 |  | 17,307 |  | — |  | — |  | 292,622 |
| Nonperforming | — |  | — |  | — |  | — |  | — |  | 13,582 |  | — |  | — |  | 13,582 |
| Total leasing and other | 134,364 |  | 45,541 |  | 44,928 |  | 33,309 |  | 17,173 |  | 30,889 |  | — |  | — |  | 306,204 |
Equipment lease financing and other |  |  |  |  |  |  |  |
| Current period gross charge-offs | (304) |  | (108) |  | (72) |  | (50) |  | (21) |  | (1,071) |  | — |  | — |  | (1,626) |
| Current period recoveries | 33 |  | 12 |  | 74 |  | 20 |  | 6 |  | 253 |  | — |  | 229 |  | 627 |
| Total net (charge-offs) recoveries | (271) |  | (96) |  | 2 |  | (30) |  | (15) |  | (818) |  | — |  | 229 |  | (999) |
Construction - other |  |  |  |  |  |  |  |  |
| Performing | 113,328 |  | 118,987 |  | 13,429 |  | — |  | 4,568 |  | — |  | — |  | 460 |  | 250,772 |
| Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Total construction - other | 113,328 |  | 118,987 |  | 13,429 |  | — |  | 4,568 |  | — |  | — |  | 460 |  | 250,772 |
Construction - other |  |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Current period recoveries | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Total net (charge-offs) recoveries | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |  |
| Performing | $ | 1,334,230 |  | $ | 1,958,556 |  | $ | 1,225,348 |  | $ | 388,945 |  | $ | 161,497 |  | $ | 749,645 |  | $ | 847,612 |  | $ | 143,164 |  | $ | 6,808,997 |
| Nonperforming | 152 |  | 2,819 |  | 5,254 |  | 4,863 |  | 4,095 |  | 41,390 |  | 1,739 |  | 5,664 |  | 65,976 |
| Total | $ | 1,334,382 |  | $ | 1,961,375 |  | $ | 1,230,602 |  | $ | 393,808 |  | $ | 165,592 |  | $ | 791,035 |  | $ | 849,351 |  | $ | 148,828 |  | $ | 6,874,973 |
|  | December 31, 2021
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  | (in thousands) | Amortized | Amortized |
|  | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Cost Basis | Cost Basis | Total
Consumer and Real estate - home equity |  |  |  |  |  |  |  |
| Performing | $ | 162,441 |  | $ | 102,918 |  | $ | 73,769 |  | $ | 68,564 |  | $ | 33,254 |  | $ | 135,412 |  | $ | 990,842 |  | $ | 3,999 |  | $ | 1,571,199 |
| Nonperforming | 122 |  | 101 |  | 60 |  | 51 |  | 314 |  | 2,348 |  | 8,512 |  | 198 |  | 11,706 |
| Total consumer and real estate - home equity | 162,563 |  | 103,019 |  | 73,829 |  | 68,615 |  | 33,568 |  | 137,760 |  | 999,354 |  | 4,197 |  | 1,582,905 |
Consumer and Real estate - home equity |  |  |  |  |  |  |  |
| Current period gross charge-offs | (175) |  | (491) |  | (496) |  | (238) |  | (224) |  | (411) |  | (1,274) |  | — |  | (3,309) |
| Current period recoveries | — |  | 223 |  | 131 |  | 131 |  | 167 |  | 1,048 |  | 645 |  | — |  | 2,345 |
| Total net (charge-offs) recoveries | (175) |  | (268) |  | (365) |  | (107) |  | (57) |  | 637 |  | (629) |  | — |  | (964) |
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Performing | 1,548,174 |  | 1,133,602 |  | 344,625 |  | 113,801 |  | 198,164 |  | 468,842 |  | — |  | — |  | 3,807,208 |
| Nonperforming | — |  | 6,753 |  | 2,189 |  | 3,424 |  | 2,844 |  | 24,332 |  | — |  | — |  | 39,542 |
| Total real estate - residential mortgage | 1,548,174 |  | 1,140,355 |  | 346,814 |  | 117,225 |  | 201,008 |  | 493,174 |  | — |  | — |  | 3,846,750 |
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | (626) |  | (148) |  | (125) |  | (4) |  | (387) |  | — |  | — |  | (1,290) |
| Current period recoveries | — |  | — |  | 1 |  | 18 |  | — |  | 264 |  | 92 |  | — |  | 375 |
| Total net (charge-offs) recoveries | — |  | (626) |  | (147) |  | (107) |  | (4) |  | (123) |  | 92 |  | — |  | (915) |
Equipment lease financing and other |  |  |  |  |  |  |  |
| Performing | 97,077 |  | 65,316 |  | 49,591 |  | 34,107 |  | 22,444 |  | 1,369 |  | — |  | — |  | 269,904 |
| Nonperforming | — |  | — |  | — |  | — |  | 15,503 |  | 138 |  | — |  | — |  | 15,641 |
| Total leasing and other | 97,077 |  | 65,316 |  | 49,591 |  | 34,107 |  | 37,947 |  | 1,507 |  | — |  | — |  | 285,545 |
Equipment lease financing and other |  |  |  |  |  |  |  |
| Current period gross charge-offs | (975) |  | (1,276) |  | — |  | — |  | — |  | — |  | — |  | — |  | (2,251) |
| Current period recoveries | 255 |  | 539 |  | 88 |  | 10 |  | 18 |  | 43 |  | — |  | — |  | 953 |
| Total net (charge-offs) recoveries | (720) |  | (737) |  | 88 |  | 10 |  | 18 |  | 43 |  | — |  | — |  | (1,298) |
Construction - other |  |  |  |  |  |  |  |  |
| Performing | 144,652 |  | 40,040 |  | 638 |  | 5,028 |  | — |  | — |  | — |  | — |  | 190,358 |
| Nonperforming | — |  | — |  | — |  | — |  | 173 |  | — |  | — |  | — |  | 173 |
| Total construction - other | 144,652 |  | 40,040 |  | 638 |  | 5,028 |  | 173 |  | — |  | — |  | — |  | 190,531 |
Construction - other |  |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Current period recoveries | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Total net (charge-offs) recoveries | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |  |
| Performing | $ | 1,952,344 |  | $ | 1,341,876 |  | $ | 468,623 |  | $ | 221,500 |  | $ | 253,862 |  | $ | 605,623 |  | $ | 990,842 |  | $ | 3,999 |  | $ | 5,838,669 |
| Nonperforming | 122 |  | 6,854 |  | 2,249 |  | 3,475 |  | 18,834 |  | 26,818 |  | 8,512 |  | 198 |  | 67,062 |
| Total | $ | 1,952,466 |  | $ | 1,348,730 |  | $ | 470,872 |  | $ | 224,975 |  | $ | 272,696 |  | $ | 632,441 |  | $ | 999,354 |  | $ | 4,197 |  | $ | 5,905,731 |
The following table presents non-performing assets:
| September 30, 2022 |  | December 31, 2021
| (in thousands)
Non-accrual loans | $ | 178,204 |  |  | $ | 143,666 |
Loans 90 days or more past due and still accruing(1) | 14,559 |  |  | 8,453 |
Total non-performing loans | 192,763 |  |  | 152,119 |
OREO (2) | 5,877 |  |  | 1,817 |
Total non-performing assets | $ | 198,640 |  |  | $ | 153,936 |
(1) Excludes PPP loans which are fully guaranteed by the federal government of $10.4 million as of September 30, 2022. (2) Excludes $3.4 million and $6.4 million of residential mortgage properties for which formal foreclosure proceedings were in process as of September 30, 2022 and December 31, 2021, 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, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate – commercial mortgage | $ | 9,428 |  |  | $ | 1,884 |  |  | $ | 1,577 |  |  |  |  | $ | 94,704 |  |  | $ | 7,446,916 |  |  | $ | 7,554,509 |
Commercial and industrial(1) | 4,705 |  |  | 228 |  |  | 27 |  |  |  |  | 29,804 |  |  | 4,208,628 |  |  | 4,243,392 |
Real estate – residential mortgage | 45,625 |  |  | 9,825 |  |  | 10,133 |  |  |  |  | 31,464 |  |  | 4,477,181 |  |  | 4,574,228 |
Real estate – home equity | 4,976 |  |  | 815 |  |  | 2,087 |  |  |  |  | 7,093 |  |  | 1,095,132 |  |  | 1,110,103 |
Real estate – construction | 17,181 |  |  | 2,106 |  |  | — |  |  |  |  | 1,456 |  |  | 1,252,354 |  |  | 1,273,097 |
Consumer | 6,308 |  |  | 1,384 |  |  | 735 |  |  |  |  | 101 |  |  | 625,138 |  |  | 633,666 |
Equipment lease financing and other | 70 |  |  | — |  |  | — |  |  |  |  | 13,582 |  |  | 292,552 |  |  | 306,204 |
Total | $ | 88,293 |  |  | $ | 16,242 |  |  | $ | 14,559 |  |  |  |  | $ | 178,204 |  |  | $ | 19,397,901 |  |  | $ | 19,695,199 |
(1) Delinquent PPP loans 30-59 days past due and 60-89 days past due of $2.2 million and $3.4 million, respectively, which are fully guaranteed by the federal government, are classified as current.
| 30-59 Days Past Due |  | 60-89 Days Past Due |  | ≥ 90 Days Past Due and Accruing |  | Non- accrual |  | Current |  | Total
| (in thousands)
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Real estate – commercial mortgage | $ | 1,089 |  |  | $ | 1,750 |  |  | $ | 1,229 |  |  | $ | 52,815 |  |  | $ | 7,222,197 |  |  | $ | 7,279,080 |
Commercial and industrial | 5,457 |  |  | 1,932 |  |  | 488 |  |  | 30,141 |  |  | 4,170,309 |  |  | 4,208,327 |
Real estate – residential mortgage | 22,957 |  |  | 2,920 |  |  | 4,130 |  |  | 35,269 |  |  | 3,781,474 |  |  | 3,846,750 |
Real estate – home equity | 4,369 |  |  | 1,154 |  |  | 2,253 |  |  | 8,671 |  |  | 1,101,801 |  |  | 1,118,248 |
Real estate – construction | 1,318 |  |  | — |  |  | — |  |  | 901 |  |  | 1,137,560 |  |  | 1,139,779 |
Consumer | 3,561 |  |  | 876 |  |  | 353 |  |  | 229 |  |  | 459,638 |  |  | 464,657 |
Equipment lease financing and other | 226 |  |  | 27 |  |  | — |  |  | 15,640 |  |  | 252,616 |  |  | 268,509 |
Total | $ | 38,977 |  |  | $ | 8,659 |  |  | $ | 8,453 |  |  | $ | 143,666 |  |  | $ | 18,125,595 |  |  | $ | 18,325,350 |
Collateral-Dependent Loans A loan 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 loans 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 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. The following table presents TDRs, by class segment:
| September 30, 2022 |  | December 31, 2021
| (in thousands)
Real estate - commercial mortgage | $ | 3,448 |  |  | $ | 3,464 |
Commercial and industrial | 1,837 |  |  | 1,857 |
Real estate - residential mortgage | 12,101 |  |  | 11,948 |
Real estate - home equity | 11,719 |  |  | 12,218 |
Consumer | 2 |  |  | 5 |
Total accruing TDRs | 29,107 |  |  | 29,492 |
Non-accrual TDRs (1) | 40,401 |  |  | 55,945 |
Total TDRs | $ | 69,508 |  |  | $ | 85,437 |
(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, 2022 and 2021:
| Three months ended September 30 |  | Nine months ended September 30
| 2022 |  | 2021 |  | 2022 |  | 2021
| Number of Loans |  | Post-Modification Recorded Investment |  | Number of Loans |  | Post-Modification Recorded Investment |  | Number of Loans |  | Post-Modification Recorded Investment |  | Number of Loans |  | Post-Modification Recorded Investment
| (dollars in thousands)
Commercial and industrial | — |  |  | $ | — |  |  | 5 |  |  | $ | 852 |  |  | 1 |  |  | $ | 82 |  |  | 9 |  |  | $ | 2,745 |
Real estate - commercial mortgage | — |  |  | — |  |  | 4 |  |  | 9,129 |  |  | 1 |  |  | 150 |  |  | 9 |  |  | 16,020 |
Real estate - residential mortgage | — |  |  | — |  |  | 5 |  |  | 1,703 |  |  | 5 |  |  | 293 |  |  | 42 |  |  | 12,431 |
Real estate - home equity | — |  |  | — |  |  | 6 |  |  | 123 |  |  | 5 |  |  | 329 |  |  | 22 |  |  | 870 |
Real estate - construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 154 |
Consumer | 4 |  |  | 155 |  |  | — |  |  | — |  |  | 6 |  |  | 354 |  |  | — |  |  | — |
Total | 4 |  |  | $ | 155 |  |  | 20 |  |  | $ | 11,807 |  |  | 18 |  |  | $ | 1,208 |  |  | 83 |  |  | $ | 32,220 |
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, 2022, $9.0 million in recorded investment remains in active COVID-19 deferral programs.

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