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Loans and Allowance for Credit Losses

9 Months Ended

Sep. 30, 2022

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.