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v3.23.1

Loans and Allowance for Credit Losses | 3 Months Ended
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Mar. 31, 2023
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:
| March 31, 2023 |  | December 31, 2022
| (dollars in thousands)
Real estate - commercial mortgage | $ | 7,746,920 |  |  | $ | 7,693,835 |
Commercial and industrial | 4,600,696 |  |  | 4,477,537 |
Real-estate - residential mortgage | 4,880,919 |  |  | 4,737,279 |
Real-estate - home equity | 1,074,712 |  |  | 1,102,838 |
Real-estate - construction | 1,326,754 |  |  | 1,269,925 |
Consumer | 730,775 |  |  | 699,179 |
Leases and other loans | 340,595 |  |  | 328,331 |
Gross loans | 20,701,371 |  |  | 20,308,924 |
Unearned income | (31,183) |  |  | (29,377) |
Net loans | $ | 20,670,188 |  |  | $ | 20,279,547 |
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 consists of loans evaluated collectively and individually for expected credit losses. The ACL 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 is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries. The reserve for OBS credit exposures includes estimated losses on unfunded loan commitments, letters of credit and other OBS credit exposures. The following table summarizes the ACL - loans balance and the reserve for OBS credit exposures balance as of March 31, 2023 and December 31, 2022:
| March 31, 2023 |  | December 31, 2022
| (dollars in thousands)
ACL - loans | $ | 278,695 |  |  | $ | 269,366 |
Reserve for OBS credit exposures(1) | $ | 17,539 |  |  | $ | 16,328 |
(1) Included in other liabilities on the consolidated balance sheets. The following table presents the activity in the ACL - loans balances:
| Three months ended March 31 |
| 2023 |  | 2022 |  |  |  |
| (dollars in thousands) |  |  |  |
Balance at beginning of period | $ | 269,366 |  |  | $ | 249,001 |  |  |  |  |
Loans charged off | (16,903) |  |  | (1,900) |  |  |  |  |
Recoveries of loans previously charged off | 2,899 |  |  | 2,954 |  |  |  |  |
Net loans (charged-off) recovered | (14,004) |  |  | 1,054 |  |  |  |  |
Provision for credit losses | 23,333 |  |  | (6,350) |  |  |  |  |
Balance at end of period | $ | 278,695 |  |  | $ | 243,705 |  |  |  |  |
Provision for OBS credit exposures | $ | 1,211 |  |  | $ | (600) |  |  |  |  |
Reserve for OBS credit exposures | $ | 17,539 |  |  | $ | 13,933 |  |  |  |  |
The following table presents the activity in the ACL by portfolio segment:
| Real Estate Commercial Mortgage |  | Commercial and Industrial |  | Real Estate Residential Mortgage |  | Consumer and Home Equity |  | Real Estate Construction |  | Leases and other loans |  | Total
| (dollars in thousands)
Three months ended March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2022 | $ | 69,456 |  |  | $ | 70,116 |  |  | $ | 83,250 |  |  | $ | 26,429 |  |  | $ | 10,743 |  |  | $ | 9,372 |  |  | $ | 269,366 |
Loans charged off | (13,362) |  |  | (612) |  |  | — |  |  | (2,206) |  |  | — |  |  | (723) |  |  | (16,903) |
Recoveries of loans previously charged off | 786 |  |  | 1,086 |  |  | 48 |  |  | 661 |  |  | 202 |  |  | 116 |  |  | 2,899 |
Net loans (charged off) recovered | (12,576) |  |  | 474 |  |  | 48 |  |  | (1,545) |  |  | 202 |  |  | (607) |  |  | (14,004) |
Provision for loan losses(1) | 9,376 |  |  | 6,536 |  |  | 2,911 |  |  | 2,419 |  |  | 701 |  |  | 1,390 |  |  | 23,333 |
Balance at March 31, 2023 | $ | 66,256 |  |  | $ | 77,126 |  |  | $ | 86,209 |  |  | $ | 27,303 |  |  | $ | 11,646 |  |  | $ | 10,155 |  |  | $ | 278,695 |
Three months ended March 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2021 | $ | 87,970 |  |  | $ | 67,056 |  |  | $ | 54,236 |  |  | $ | 19,749 |  |  | $ | 12,941 |  |  | $ | 7,049 |  |  | $ | 249,001 |
Loans charged off | (152) |  |  | (227) |  |  | — |  |  | (1,052) |  |  | — |  |  | (469) |  |  | (1,900) |
Recoveries of loans previously charged off | 112 |  |  | 1,980 |  |  | 222 |  |  | 454 |  |  | 32 |  |  | 154 |  |  | 2,954 |
Net loans (charged off) recovered | (40) |  |  | 1,753 |  |  | 222 |  |  | (598) |  |  | 32 |  |  | (315) |  |  | 1,054 |
Provision for loan and lease losses(1) | (8,077) |  |  | (2,298) |  |  | 1,434 |  |  | 1,062 |  |  | 330 |  |  | 1,199 |  |  | (6,350) |
Balance at March 31, 2022 | $ | 79,853 |  |  | $ | 66,511 |  |  | $ | 55,892 |  |  | $ | 20,213 |  |  | $ | 13,303 |  |  | $ | 7,933 |  |  | $ | 243,705 |
(1) Provision included in the table only includes the portion related to net loans. The ACL - loans 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 first quarter of 2023 was recorded to increase the allowance for credit losses as a result of loan growth and changes to the macroeconomic outlook. Non-accrual Loans All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of March 31, 2023 and December 31, 2022, substantially all of the Corporation's individually evaluated loans with total commitments greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral, if any. Collateral could be in the form of real estate, in the case of commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate. As of March 31, 2023 and December 31, 2022, approximately 85% and 91%, respectively, of loans evaluated individually for impairment with principal balances greater than or equal to $1.0 million, whose primary collateral consisted of real estate, were measured at estimated fair value using appraisals performed by state certified third-party appraisers that had been updated in the preceding 12 months. The following table presents total non-accrual loans, by class segment:
| March 31, 2023 |  | December 31, 2022
| With a Related Allowance |  | Without a Related Allowance |  | Total |  | With a Related Allowance |  | Without a Related Allowance |  | Total
| (dollars in thousands)
Real estate - commercial mortgage | $ | 18,878 |  |  | $ | 39,531 |  |  | $ | 58,409 |  |  | $ | 39,722 |  |  | $ | 30,439 |  |  | $ | 70,161 |
Commercial and industrial | 16,090 |  |  | 15,789 |  |  | 31,879 |  |  | 14,804 |  |  | 12,312 |  |  | 27,116 |
Real estate - residential mortgage | 23,450 |  |  | 977 |  |  | 24,427 |  |  | 25,315 |  |  | 979 |  |  | 26,294 |
Real estate - home equity | 5,912 |  |  | 122 |  |  | 6,034 |  |  | 5,975 |  |  | 130 |  |  | 6,105 |
Real estate - construction | 831 |  |  | 447 |  |  | 1,278 |  |  | 866 |  |  | 502 |  |  | 1,368 |
Consumer | 25 |  |  | — |  |  | 25 |  |  | 92 |  |  | — |  |  | 92 |
Leases and other loans | 2,995 |  |  | 9,256 |  |  | 12,251 |  |  | 4,052 |  |  | 9,255 |  |  | 13,307 |
| $ | 68,181 |  |  | $ | 66,122 |  |  | $ | 134,303 |  |  | $ | 90,826 |  |  | $ | 53,617 |  |  | $ | 144,443 |
As of March 31, 2023 and December 31, 2022, there were $66.1 million and $53.6 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 categories is a significant component of the ACL methodology for these loans, under both the CECL and incurred loss models, 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 a loan. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the current period:
|  | March 31, 2023
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  | (in thousands) | Amortized | Amortized |
| 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Pass | $ | 173,387 |  | $ | 1,015,881 |  | $ | 1,077,823 |  | $ | 943,188 |  | $ | 799,374 |  | $ | 3,170,784 |  | $ | 73,033 |  | $ | 305 |  | $ | 7,253,775 |
| Special Mention | — |  | 14,438 |  | 65,362 |  | 19,804 |  | 34,352 |  | 169,568 |  | 2,728 |  | — |  | 306,252 |
| Substandard or Lower | — |  | 2,668 |  | 19,190 |  | 48,655 |  | 24,531 |  | 91,606 |  | 243 |  | — |  | 186,893 |
| Total real estate - commercial mortgage | 173,387 |  | 1,032,987 |  | 1,162,375 |  | 1,011,647 |  | 858,257 |  | 3,431,958 |  | 76,004 |  | 305 |  | 7,746,920 |
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | (30) |  | — |  | (13,332) |  | (13,362) |
Commercial and industrial(1) |  |  |  |  |  |  |  |
| Pass | 379,383 |  | 689,276 |  | 444,738 |  | 379,630 |  | 301,392 |  | 748,118 |  | 1,394,101 |  | 6,517 |  | 4,343,155 |
| Special Mention | 150 |  | 17,426 |  | 16,457 |  | 4,958 |  | 9,500 |  | 31,125 |  | 65,596 |  | 243 |  | 145,455 |
| Substandard or Lower | 206 |  | 1,259 |  | 754 |  | 4,001 |  | 13,042 |  | 22,863 |  | 69,675 |  | 286 |  | 112,086 |
| Total commercial and industrial | 379,739 |  | 707,961 |  | 461,949 |  | 388,589 |  | 323,934 |  | 802,106 |  | 1,529,372 |  | 7,046 |  | 4,600,696 |
Commercial and industrial(1) |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | (53) |  | (559) |  | (612) |
Real estate - construction(2) |  |  |  |  |  |  |  |  |
| Pass | 49,829 |  | 165,351 |  | 425,549 |  | 218,594 |  | 23,387 |  | 103,958 |  | 39,917 |  | — |  | 1,026,585 |
| Special Mention | — |  | 1,218 |  | — |  | — |  | — |  | 29,283 |  | — |  | — |  | 30,501 |
| Substandard or Lower | — |  | 305 |  | 2,079 |  | — |  | 2,238 |  | 4,148 |  | 2,284 |  | — |  | 11,054 |
| Total real estate - construction | 49,829 |  | 166,874 |  | 427,628 |  | 218,594 |  | 25,625 |  | 137,389 |  | 42,201 |  | — |  | 1,068,140 |
Real estate - construction(2) |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |
| Pass | $ | 602,599 |  | $ | 1,870,508 |  | $ | 1,948,110 |  | $ | 1,541,412 |  | $ | 1,124,153 |  | $ | 4,022,860 |  | $ | 1,507,051 |  | $ | 6,822 |  | $ | 12,623,515 |
| Special Mention | 150 |  | 33,082 |  | 81,819 |  | 24,762 |  | 43,852 |  | 229,976 |  | 68,324 |  | 243 |  | 482,208 |
| Substandard or Lower | 206 |  | 4,232 |  | 22,023 |  | 52,656 |  | 39,811 |  | 118,617 |  | 72,202 |  | 286 |  | 310,033 |
| Total | $ | 602,955 |  | $ | 1,907,822 |  | $ | 2,051,952 |  | $ | 1,618,830 |  | $ | 1,207,816 |  | $ | 4,371,453 |  | $ | 1,647,577 |  | $ | 7,351 |  | $ | 13,415,756 |
(1) Loans originated in 2021 and 2020 include $9.8 million of PPP loans that were assigned a rating of Pass based on the existence of a federal government guaranty through the SBA. (2) Excludes real estate - construction - other. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period:
|  | December 31, 2022
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  | (dollars in thousands) | Amortized | Amortized |
| 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Cost Basis | Cost Basis | Total
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Pass | $ | 1,014,575 |  | $ | 1,095,725 |  | $ | 969,118 |  | $ | 810,850 |  | $ | 621,689 |  | $ | 2,610,511 |  | $ | 80,665 |  | $ | 307 |  | $ | 7,203,440 |
| Special Mention | 95 |  | 50,367 |  | 23,296 |  | 33,735 |  | 16,205 |  | 181,736 |  | 947 |  | — |  | 306,381 |
| Substandard or Lower | 1,032 |  | 3,039 |  | 31,042 |  | 38,378 |  | 23,112 |  | 87,168 |  | 243 |  | — |  | 184,014 |
| Total real estate - commercial mortgage | 1,015,702 |  | 1,149,131 |  | 1,023,456 |  | 882,963 |  | 661,006 |  | 2,879,415 |  | 81,855 |  | 307 |  | 7,693,835 |
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | (53) |  | — |  | (12,420) |  | (12,473) |
Commercial and industrial(1) |  |  |  |  |  |  |  |
| Pass | 907,390 |  | 449,145 |  | 397,881 |  | 315,605 |  | 185,096 |  | 604,352 |  | 1,387,961 |  | 618 |  | 4,248,048 |
| Special Mention | 11,405 |  | 24,479 |  | 3,763 |  | 8,147 |  | 5,218 |  | 24,633 |  | 56,048 |  | 250 |  | 133,943 |
| Substandard or Lower | 834 |  | 418 |  | 4,818 |  | 13,044 |  | 3,081 |  | 22,025 |  | 51,077 |  | 249 |  | 95,546 |
| Total commercial and industrial | 919,629 |  | 474,042 |  | 406,462 |  | 336,796 |  | 193,395 |  | 651,010 |  | 1,495,086 |  | 1,117 |  | 4,477,537 |
Commercial and industrial(1) |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | (36) |  | — |  | (21) |  | (365) |  | (1,192) |  | (776) |  | (2,390) |
Real estate - construction(2) |  |  |  |  |  |  |  |
| Pass | 159,195 |  | 390,993 |  | 243,406 |  | 28,539 |  | 24,421 |  | 93,511 |  | 47,271 |  | — |  | 987,336 |
| Special Mention | — |  | — |  | — |  | — |  | — |  | 21,603 |  | — |  | — |  | 21,603 |
| Substandard or Lower | — |  | — |  | 3,852 |  | 2,274 |  | — |  | 4,272 |  | 203 |  | — |  | 10,601 |
| Total real estate - construction | 159,195 |  | 390,993 |  | 247,258 |  | 30,813 |  | 24,421 |  | 119,386 |  | 47,474 |  | — |  | 1,019,540 |
Real estate - construction(2) |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |
| Pass | $ | 2,081,160 |  | $ | 1,935,863 |  | $ | 1,610,405 |  | $ | 1,154,994 |  | $ | 831,206 |  | $ | 3,308,374 |  | $ | 1,515,897 |  | $ | 925 |  | $ | 12,438,824 |
| Special Mention | 11,500 |  | 74,846 |  | 27,059 |  | 41,882 |  | 21,423 |  | 227,972 |  | 56,995 |  | 250 |  | 461,927 |
| Substandard or Lower | 1,866 |  | 3,457 |  | 39,712 |  | 53,696 |  | 26,193 |  | 113,465 |  | 51,523 |  | 249 |  | 290,161 |
| Total | $ | 2,094,526 |  | $ | 2,014,166 |  | $ | 1,677,176 |  | $ | 1,250,572 |  | $ | 878,822 |  | $ | 3,649,811 |  | $ | 1,624,415 |  | $ | 1,424 |  | $ | 13,190,912 |
(1) Loans originated in 2021 and 2020 include $20.4 million of PPP loans that were assigned a rating of Pass based on the existence of a federal government guaranty through the SBA. (2) Excludes real estate - construction - other. 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 leases and other loans. 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:
|  | March 31, 2023
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  | (dollars in thousands) | Amortized | Amortized |
|  | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Performing | $ | 139,551 |  | $ | 961,137 |  | $ | 1,732,158 |  | $ | 1,041,054 |  | $ | 282,030 |  | $ | 678,413 |  | $ | — |  | $ | — |  | $ | 4,834,343 |
| Nonperforming | — |  | 706 |  | 6,089 |  | 7,630 |  | 5,335 |  | 26,816 |  | — |  | — |  | 46,576 |
| Total real estate - residential mortgage | 139,551 |  | 961,843 |  | 1,738,247 |  | 1,048,684 |  | 287,365 |  | 705,229 |  | — |  | — |  | 4,880,919 |
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Consumer and real estate - home equity |  |  |  |  |  |  |  |
| Performing | 148,247 |  | 309,812 |  | 95,136 |  | 66,377 |  | 49,877 |  | 162,289 |  | 947,347 |  | 17,419 |  | 1,796,504 |
| Nonperforming | — |  | 204 |  | 155 |  | 67 |  | 31 |  | 2,013 |  | 6,460 |  | 53 |  | 8,983 |
| Total consumer and real estate - home equity | 148,247 |  | 310,016 |  | 95,291 |  | 66,444 |  | 49,908 |  | 164,302 |  | 953,807 |  | 17,472 |  | 1,805,487 |
Consumer and real estate - home equity |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | (325) |  | — |  | (1,881) |  | (2,206) |
Leases and other loans |  |  |  |  |  |  |  |
| Performing | 75,403 |  | 99,125 |  | 36,559 |  | 32,785 |  | 25,955 |  | 26,891 |  | — |  | — |  | 296,718 |
| Nonperforming | — |  | 443 |  | — |  | — |  | — |  | 12,251 |  | — |  | — |  | 12,694 |
| Leases and other loans | 75,403 |  | 99,568 |  | 36,559 |  | 32,785 |  | 25,955 |  | 39,142 |  | — |  | — |  | 309,412 |
Leases and other loans |  |  |  |  |  |  |  |
| Current period gross charge-offs | (59) |  | (251) |  | (60) |  | (45) |  | (21) |  | (287) |  | — |  | — |  | (723) |
Construction - other |  |  |  |  |  |  |  |  |
| Performing | 8,997 |  | 202,286 |  | 38,473 |  | 8,858 |  | — |  | — |  | — |  | — |  | 258,614 |
| Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Total construction - other | 8,997 |  | 202,286 |  | 38,473 |  | 8,858 |  | — |  | — |  | — |  | — |  | 258,614 |
Construction - other |  |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |  |
| Performing | $ | 372,198 |  | $ | 1,572,360 |  | $ | 1,902,326 |  | $ | 1,149,074 |  | $ | 357,862 |  | $ | 867,593 |  | $ | 947,347 |  | $ | 17,419 |  | $ | 7,186,179 |
| Nonperforming | — |  | 1,353 |  | 6,244 |  | 7,697 |  | 5,366 |  | 41,080 |  | 6,460 |  | 53 |  | 68,253 |
| Total | $ | 372,198 |  | $ | 1,573,713 |  | $ | 1,908,570 |  | $ | 1,156,771 |  | $ | 363,228 |  | $ | 908,673 |  | $ | 953,807 |  | $ | 17,472 |  | $ | 7,254,432 |
|  | December 31, 2022
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  | (dollars in thousands) | Amortized | Amortized |
|  | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Cost Basis | Cost Basis | Total
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Performing | $ | 933,903 |  | $ | 1,708,703 |  | $ | 1,054,126 |  | $ | 286,167 |  | $ | 87,455 |  | $ | 620,416 |  | $ | — |  | $ | — |  | $ | 4,690,770 |
| Nonperforming | 1,199 |  | 5,104 |  | 6,597 |  | 6,466 |  | 4,587 |  | 22,556 |  | — |  | — |  | 46,509 |
| Total real estate - residential mortgage | 935,102 |  | 1,713,807 |  | 1,060,723 |  | 292,633 |  | 92,042 |  | 642,972 |  | — |  | — |  | 4,737,279 |
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | (66) |  | (66) |
Consumer and Real estate - home equity |  |  |  |  |  |  |  |
| Performing | 416,631 |  | 109,724 |  | 80,422 |  | 52,384 |  | 45,642 |  | 211,127 |  | 842,226 |  | 34,061 |  | 1,792,217 |
| Nonperforming | 292 |  | 298 |  | 174 |  | 36 |  | 98 |  | 6,512 |  | 1,722 |  | 668 |  | 9,800 |
| Total consumer and real estate - home equity | 416,923 |  | 110,022 |  | 80,596 |  | 52,420 |  | 45,740 |  | 217,639 |  | 843,948 |  | 34,729 |  | 1,802,017 |
Consumer and Real estate - home equity |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | (587) |  | (70) |  | (108) |  | (16) |  | (442) |  | (178) |  | (3,011) |  | (4,412) |
Construction - other |  |  |  |  |  |  |  |  |
| Performing | 164,924 |  | 73,492 |  | 10,892 |  | — |  | 1,077 |  | — |  | — |  | — |  | 250,385 |
| Nonperforming | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
| Total construction - other | 164,924 |  | 73,492 |  | 10,892 |  | — |  | 1,077 |  | — |  | — |  | — |  | 250,385 |
Construction - other |  |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Leases and other loans |  |  |  |  |  |  |  |
| Performing | 146,198 |  | 39,427 |  | 40,024 |  | 29,309 |  | 15,019 |  | 15,670 |  | — |  | — |  | 285,647 |
| Nonperforming | — |  | — |  | — |  | — |  | — |  | 13,307 |  | — |  | — |  | 13,307 |
| Leases and other loans | 146,198 |  | 39,427 |  | 40,024 |  | 29,309 |  | 15,019 |  | 28,977 |  | — |  | — |  | 298,954 |
Leases and other loans |  |  |  |  |  |  |  |
| Current period gross charge-offs | (506) |  | (167) |  | (140) |  | (80) |  | (47) |  | (1,191) |  | — |  | — |  | (2,131) |
Total |  |  |  |  |  |  |  |  |
| Performing | $ | 1,661,656 |  | $ | 1,931,346 |  | $ | 1,185,464 |  | $ | 367,860 |  | $ | 149,193 |  | $ | 847,213 |  | $ | 842,226 |  | $ | 34,061 |  | $ | 7,019,019 |
| Nonperforming | 1,491 |  | 5,402 |  | 6,771 |  | 6,502 |  | 4,685 |  | 42,375 |  | 1,722 |  | 668 |  | 69,616 |
| Total | $ | 1,663,147 |  | $ | 1,936,748 |  | $ | 1,192,235 |  | $ | 374,362 |  | $ | 153,878 |  | $ | 889,588 |  | $ | 843,948 |  | $ | 34,729 |  | $ | 7,088,635 |
The following table presents non-performing assets:
| March 31, 2023 |  | December 31, 2022
| (dollars in thousands)
Non-accrual loans | $ | 134,303 |  |  | $ | 144,443 |
Loans 90 days or more past due and still accruing(1) | 30,336 |  |  | 27,463 |
Total non-performing loans | 164,639 |  |  | 171,906 |
OREO(2) | 3,304 |  |  | 5,790 |
Total non-performing assets | $ | 167,943 |  |  | $ | 177,696 |
(1) Excludes PPP loans which are fully guaranteed by the federal government of $1.6 million and $7.7 million as of March 31, 2023 and December 31, 2022, respectively. (2) Excludes $9.6 million and $6.0 million of residential mortgage properties for which formal foreclosure proceedings were in process as of March 31, 2023 and December 31, 2022, 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
| (dollars in thousands)
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate – commercial mortgage | $ | 19,251 |  |  | $ | 1,887 |  |  | $ | 2,913 |  |  |  |  | $ | 58,409 |  |  | $ | 7,664,460 |  |  | $ | 7,746,920 |
Commercial and industrial(1) | 6,428 |  |  | 1,279 |  |  | 1,676 |  |  |  |  | 31,879 |  |  | 4,559,434 |  |  | 4,600,696 |
Real estate – residential mortgage | 34,483 |  |  | 5,779 |  |  | 22,149 |  |  |  |  | 24,427 |  |  | 4,794,081 |  |  | 4,880,919 |
Real estate – home equity | 6,442 |  |  | 2,441 |  |  | 2,316 |  |  |  |  | 6,034 |  |  | 1,057,479 |  |  | 1,074,712 |
Real estate – construction | 13,074 |  |  | 751 |  |  | 231 |  |  |  |  | 1,278 |  |  | 1,311,420 |  |  | 1,326,754 |
Consumer | 5,840 |  |  | 1,400 |  |  | 608 |  |  |  |  | 25 |  |  | 722,902 |  |  | 730,775 |
Leases and other loans(2) | 871 |  |  | 64 |  |  | 443 |  |  |  |  | 12,251 |  |  | 295,783 |  |  | 309,412 |
Total | $ | 86,389 |  |  | $ | 13,601 |  |  | $ | 30,336 |  |  |  |  | $ | 134,303 |  |  | $ | 20,405,559 |  |  | $ | 20,670,188 |
(1) Excludes delinquent PPP loans 30-59 days past due, 60-89 days past due and 90 days or more past due of $1.2 million, $0.1 million and $1.6 million, respectively, which are fully guaranteed by the federal government and are classified as current. (2) Includes unearned income.
| 30-59 Days Past Due |  | 60-89 Days Past Due |  | ≥ 90 Days Past Due and Accruing |  | Non- accrual |  | Current |  | Total
| (dollars in thousands)
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Real estate – commercial mortgage | $ | 10,753 |  |  | $ | 4,644 |  |  | $ | 2,473 |  |  | $ | 70,161 |  |  | $ | 7,605,804 |  |  | $ | 7,693,835 |
Commercial and industrial(1) | 6,067 |  |  | 2,289 |  |  | 1,172 |  |  | 27,116 |  |  | 4,440,893 |  |  | 4,477,537 |
Real estate – residential mortgage | 57,061 |  |  | 8,209 |  |  | 20,215 |  |  | 26,294 |  |  | 4,625,500 |  |  | 4,737,279 |
Real estate – home equity | 5,666 |  |  | 2,444 |  |  | 2,704 |  |  | 6,105 |  |  | 1,085,919 |  |  | 1,102,838 |
Real estate – construction | 1,762 |  |  | 1,758 |  |  | — |  |  | 1,368 |  |  | 1,265,037 |  |  | 1,269,925 |
Consumer | 6,692 |  |  | 1,339 |  |  | 899 |  |  | 92 |  |  | 690,157 |  |  | 699,179 |
Leases and other loans(2) | 348 |  |  | 122 |  |  | — |  |  | 13,307 |  |  | 285,177 |  |  | 298,954 |
Total | $ | 88,349 |  |  | $ | 20,805 |  |  | $ | 27,463 |  |  | $ | 144,443 |  |  | $ | 19,998,487 |  |  | $ | 20,279,547 |
(1) Excludes delinquent PPP loans 30-59 days past due, 60-89 days past due and 90 days or more past due of $0.1 million, $0.7 million and $7.7 million, respectively, which are fully guaranteed by the federal government and are classified as current. (2) Includes unearned income. Collateral-Dependent Loans A loan or a lease, 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 and leases 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 collateral-dependent loan's or lease's carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent loans or leases 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. Loan Modifications On January 1, 2023, the Corporation adopted ASU 2022-02. Loan modifications reported below do not include modifications with insignificant payment delays. ASU 2022-02 lists the following factors when considering if the loan modification has insignificant payment delays: (1) the amount of the restructured payments subject to the delay is insignificant relative to the unpaid principal or collateral value of the debt and will result in an insignificant shortfall in the contractual amount due, and (2) the delay in timing of the restructured payment period is insignificant relative to the frequency of payments due under the debt, the debt’s original contractual maturity or the debt’s original expected duration. The ACL incorporates an estimate of lifetime expected credit losses and is recorded upon asset origination or acquisition. The starting point for the estimate of the ACL is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Corporation uses a probability of default/loss given default model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The Corporation modifies loans by providing a concession when deemed appropriate. Depending on the circumstances, a term extension, interest rate reduction or principal forgiveness may be granted. In certain instances a combination of concessions maybe be provided to a customer. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL, a change to the ACL is generally not recorded upon modification. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the ACL. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the ACL. The following table presents the amortized cost basis during the three months ended March 31, 2023 of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:
| Term Extension
| Three months ended March 31, 2023 |  |  |  |  |  |
| Amortization Cost Basis |  | % of Class of Financing Receivable |  |  |  |  |  |  |  |  |  |  |  |
| (dollars in thousands)
Real estate - commercial mortgage | $ | 1,426 |  |  | 0.02 | % |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | 6,227 |  |  | 0.14 |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - residential mortgage | 1,182 |  |  | 0.02 |  |  |  |  |  |  |  |  |  |  |  |  |
Total | $ | 8,835 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The following table presents the financial effect of the modifications made to borrowers experiencing financial difficulty as of March 31, 2023.
| Term Extension
| Financial Effect
Real estate - commercial mortgage | Added a weighted-average 1.91 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Commercial and industrial | Added a weighted-average 0.77 years to the life of loans, which reduced monthly payment amounts for the borrowers.
Real estate - residential mortgage | Added a weighted-average 3.51 years to the life of loans, which reduced monthly payment amounts for the borrowers.
During the first quarter of 2023, there were no loans modified due to financial difficulty where there was an interest rate reduction or principal balance forgiveness. During the first quarter of 2023, there were no loans modified due to financial difficulty that defaulted in the three months subsequent to modification. The following table presents the performance of loans that have been modified in the last three months as of March 31, 2023.
|  |  | 30-89 |  | 90+ |  | Total
|  |  | Days Past |  | Past Due |  | Past
| Current |  | Due |  | and Accruing |  | Due
| (dollars in thousands)
Real estate - commercial mortgage | $ | 1,426 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Commercial and industrial | 6,227 |  |  | — |  |  | — |  |  | — |
Real estate - residential mortgage | 1,182 |  |  | — |  |  | — |  |  | — |
Total | $ | 8,835 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
There were no commitments to lend additional funds to borrowers with loan modifications as a result of financial difficulty as of March 31, 2023.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent + Details
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