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Loans and Allowance for Credit Losses | 9 Months Ended
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Sep. 30, 2024
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, 2024 |  | December 31, 2023
| (dollars in thousands)
Real estate - commercial mortgage | $ | 9,493,479 |  |  | $ | 8,127,728 |
Commercial and industrial(1) | 4,914,734 |  |  | 4,545,552 |
Real-estate - residential mortgage | 6,302,624 |  |  | 5,325,923 |
Real-estate - home equity | 1,144,402 |  |  | 1,047,184 |
Real-estate - construction | 1,332,954 |  |  | 1,239,075 |
Consumer | 651,717 |  |  | 729,318 |
Leases and other loans(2) | 336,165 |  |  | 336,314 |
Net loans | $ | 24,176,075 |  |  | $ | 21,351,094 |
(1) Includes $2.0 thousand of unearned income at September 30, 2024 and $41.0 thousand at December 31, 2023. (2) Includes unearned income of $34.8 million at September 30, 2024 and $38.0 million at December 31, 2023. Allowance for Credit Losses The ACL consists of reserves against loans that have been 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:
| September 30, 2024 |  | December 31, 2023
| (dollars in thousands)
ACL - loans | $ | 375,961 |  |  | $ | 293,404 |
Reserve for OBS credit exposures(1) | $ | 14,188 |  |  | $ | 17,254 |
(1) Included in other liabilities on the consolidated balance sheets. The following table presents the activity in the ACL - loans balances:
| Three months ended September 30 | Nine months ended September 30
| 2024 |  | 2023 |  | 2024 |  | 2023
| (dollars in thousands)
Balance at beginning of period | $ | 375,941 |  |  | $ | 287,442 |  |  | $ | 293,404 |  |  | 269,366 |
CECL Day 1 Provision(1) | — |  |  | — |  |  | 23,444 |  |  | — |
Initial PCD allowance for credit losses | (1,139) |  |  | — |  |  | 54,767 |  |  | — |
Loans charged off | (13,144) |  |  | (7,279) |  |  | (38,103) |  |  | (28,969) |
Recoveries of loans previously charged off | 2,022 |  |  | 2,181 |  |  | 7,081 |  |  | 7,896 |
Net loans (charged off) recovered | (11,122) |  |  | (5,098) |  |  | (31,022) |  |  | (21,073) |
Provision for credit losses(1) (2) | 12,281 |  |  | 10,395 |  |  | 35,368 |  |  | 44,446 |
Balance at end of period | $ | 375,961 |  |  | $ | 292,739 |  |  | $ | 375,961 |  |  | $ | 292,739 |
Provision for OBS credit exposures(1) | $ | (352) |  |  | $ | (458) |  |  | $ | (3,902) |  |  | $ | (218) |
Reserve for OBS credit exposures | $ | 14,188 |  |  | $ | 16,110 |  |  | $ | 14,188 |  |  | $ | 16,110 |
(1) The sum of these amounts is reflected in the provision for credit losses in the Consolidated Statements of Income. (2) Provision only includes the portion related to net loans. 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 September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2024 | $ | 156,165 |  |  | $ | 94,623 |  |  | $ | 89,714 |  |  | $ | 17,533 |  |  | $ | 14,610 |  |  | $ | 3,296 |  |  | $ | 375,941 |
CECL Day 1 Provision(1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Initial PCD allowance for credit losses | — |  |  | (1,139) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,139) |
Loans charged off | (2,723) |  |  | (6,256) |  |  | (1,131) |  |  | (2,308) |  |  | — |  |  | (726) |  |  | (13,144) |
Recoveries of loans previously charged off | 107 |  |  | 1,008 |  |  | 130 |  |  | 545 |  |  | 103 |  |  | 129 |  |  | 2,022 |
Net loans (charged off) recovered | (2,616) |  |  | (5,248) |  |  | (1,001) |  |  | (1,763) |  |  | 103 |  |  | (597) |  |  | (11,122) |
Provision for loan losses(1) (2) | (10,255) |  |  | 13,128 |  |  | 1,614 |  |  | 1,357 |  |  | 6,284 |  |  | 153 |  |  | 12,281 |
Balance at September 30, 2024 | $ | 143,294 |  |  | $ | 101,364 |  |  | $ | 90,327 |  |  | $ | 17,127 |  |  | $ | 20,997 |  |  | $ | 2,852 |  |  | $ | 375,961 |
Three months ended September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2023 | $ | 72,302 |  |  | $ | 75,189 |  |  | $ | 88,849 |  |  | $ | 28,982 |  |  | $ | 11,144 |  |  | $ | 10,976 |  |  | $ | 287,442 |
Loans charged off | (860) |  |  | (3,220) |  |  | — |  |  | (1,803) |  |  | — |  |  | (1,396) |  |  | (7,279) |
Recoveries of loans previously charged off | 101 |  |  | 620 |  |  | 37 |  |  | 1,023 |  |  | — |  |  | 400 |  |  | 2,181 |
Net loans (charged off) recovered | (759) |  |  | (2,600) |  |  | 37 |  |  | (780) |  |  | — |  |  | (996) |  |  | (5,098) |
Provision for loan and lease losses(1) (2) | 2,403 |  |  | 9,766 |  |  | (2,685) |  |  | 1,873 |  |  | (2,873) |  |  | 1,911 |  |  | 10,395 |
Balance at September 30, 2023 | $ | 73,946 |  |  | $ | 82,355 |  |  | $ | 86,201 |  |  | $ | 30,075 |  |  | $ | 8,271 |  |  | $ | 11,891 |  |  | $ | 292,739 |
Nine months ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2023 | $ | 112,565 |  |  | $ | 74,266 |  |  | $ | 73,286 |  |  | $ | 17,604 |  |  | $ | 12,295 |  |  | $ | 3,388 |  |  | $ | 293,404 |
CECL Day 1 Provision(1) | 6,108 |  |  | 1,484 |  |  | 14,922 |  |  | 444 |  |  | 486 |  |  | — |  |  | 23,444 |
Initial PCD allowance for credit losses | 32,157 |  |  | 19,730 |  |  | 565 |  |  | 357 |  |  | 1,958 |  |  | — |  |  | 54,767 |
Loans charged off | (10,602) |  |  | (16,843) |  |  | (1,417) |  |  | (6,312) |  |  | — |  |  | (2,929) |  |  | (38,103) |
Recoveries of loans previously charged off | 405 |  |  | 3,052 |  |  | 368 |  |  | 2,382 |  |  | 336 |  |  | 538 |  |  | 7,081 |
Net loans (charged off) recovered | (10,197) |  |  | (13,791) |  |  | (1,049) |  |  | (3,930) |  |  | 336 |  |  | (2,391) |  |  | (31,022) |
Provision for loan losses(1) (2) | 2,661 |  |  | 19,675 |  |  | 2,603 |  |  | 2,652 |  |  | 5,922 |  |  | 1,855 |  |  | 35,368 |
Balance at September 30, 2024 | $ | 143,294 |  |  | $ | 101,364 |  |  | $ | 90,327 |  |  | $ | 17,127 |  |  | $ | 20,997 |  |  | $ | 2,852 |  |  | $ | 375,961 |
Nine months ended September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2022 | $ | 69,456 |  |  | $ | 70,116 |  |  | $ | 83,250 |  |  | $ | 26,429 |  |  | $ | 10,743 |  |  | $ | 9,372 |  |  | $ | 269,366 |
Loans charged off | (14,452) |  |  | (5,849) |  |  | (62) |  |  | (5,322) |  |  | — |  |  | (3,284) |  |  | (28,969) |
Recoveries of loans previously charged off | 916 |  |  | 2,694 |  |  | 143 |  |  | 2,643 |  |  | 771 |  |  | 729 |  |  | 7,896 |
Net loans (charged off) recovered | (13,536) |  |  | (3,155) |  |  | 81 |  |  | (2,679) |  |  | 771 |  |  | (2,555) |  |  | (21,073) |
Provision for loan losses(1)(2) | 18,026 |  |  | 15,394 |  |  | 2,870 |  |  | 6,325 |  |  | (3,243) |  |  | 5,074 |  |  | 44,446 |
Balance at September 30, 2023 | $ | 73,946 |  |  | $ | 82,355 |  |  | $ | 86,201 |  |  | $ | 30,075 |  |  | $ | 8,271 |  |  | $ | 11,891 |  |  | $ | 292,739 |
(1) These amounts are reflected in the provision for credit loss in the Consolidated Statements of Income. (2) Provision included in the table only includes the portion related to net loans. The ACL may include qualitative adjustments intended to capture the impact of uncertainties not reflected in the quantitative models. In determining qualitative adjustments, management considers changes in national, regional, and local economic and business conditions and their impact on the lending environment, including underwriting standards and other factors affecting credit losses over the remaining life of each loan. The increase in the ACL - loans as of September 30, 2024 was primarily due to loans acquired in the Republic First Transaction. 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. 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, agricultural land, and vacant land. Commercial and industrial loans may also be secured by real estate. All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of September 30, 2024 and December 31, 2023, 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. As of September 30, 2024 and December 31, 2023, approximately 95% and 78%, 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. Non-accrual Loans The following table presents total non-accrual loans, by class segment:
| September 30, 2024 |  | December 31, 2023
| 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 | $ | 12,683 |  |  | $ | 56,703 |  |  | $ | 69,386 |  |  | $ | 23,338 |  |  | $ | 21,467 |  |  | $ | 44,805 |
Commercial and industrial | 36,493 |  |  | 27,121 |  |  | 63,614 |  |  | 12,410 |  |  | 27,542 |  |  | 39,952 |
Real estate - residential mortgage | 22,413 |  |  | 2,018 |  |  | 24,431 |  |  | 18,806 |  |  | 2,018 |  |  | 20,824 |
Real estate - home equity | 7,961 |  |  | 86 |  |  | 8,047 |  |  | 4,649 |  |  | 104 |  |  | 4,753 |
Real estate - construction | 340 |  |  | — |  |  | 340 |  |  | 341 |  |  | 1,000 |  |  | 1,341 |
Consumer | 209 |  |  | — |  |  | 209 |  |  | 52 |  |  | — |  |  | 52 |
Leases and other loans | 194 |  |  | 9,640 |  |  | 9,834 |  |  | 9,255 |  |  | 638 |  |  | 9,893 |
| $ | 80,293 |  |  | $ | 95,568 |  |  | $ | 175,861 |  |  | $ | 68,851 |  |  | $ | 52,769 |  |  | $ | 121,620 |
As of September 30, 2024 and December 31, 2023, there were $95.6 million and $52.8 million, respectively, of non-accrual loans that did not have a specific valuation allowance within the ACL. 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, 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, which bases the PD 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:
|  | September 30, 2024
|  | (dollars in thousands)
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  |  | Amortized | Amortized |
| 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Cost Basis | Cost Basis | Total
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Pass | $ | 439,628 |  | $ | 927,412 |  | $ | 1,144,947 |  | $ | 1,304,578 |  | $ | 1,039,538 |  | $ | 3,409,730 |  | $ | 75,822 |  | $ | 324 |  | $ | 8,341,979 |
| Special Mention | 2,514 |  | 61,815 |  | 175,721 |  | 209,161 |  | 58,007 |  | 217,361 |  | 11,271 |  | — |  | 735,850 |
| Substandard or Lower | 214 |  | 36,240 |  | 63,601 |  | 77,690 |  | 73,501 |  | 162,421 |  | 1,983 |  | — |  | 415,650 |
| Total real estate - commercial mortgage | 442,356 |  | 1,025,467 |  | 1,384,269 |  | 1,591,429 |  | 1,171,046 |  | 3,789,512 |  | 89,076 |  | 324 |  | 9,493,479 |
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | (126) |  | (84) |  | — |  | — |  | (10,366) |  | — |  | (26) |  | (10,602) |
Commercial and industrial |  |  |  |  |  |  |  |
| Pass | 329,172 |  | 531,373 |  | 543,678 |  | 306,525 |  | 292,198 |  | 774,293 |  | 1,380,049 |  | 6,201 |  | 4,163,489 |
| Special Mention | 13,034 |  | 22,505 |  | 53,936 |  | 45,068 |  | 24,550 |  | 110,455 |  | 151,806 |  | 3,819 |  | 425,173 |
| Substandard or Lower | 9,376 |  | 15,655 |  | 39,900 |  | 6,775 |  | 8,044 |  | 56,206 |  | 168,937 |  | 21,179 |  | 326,072 |
| Total commercial and industrial | 351,582 |  | 569,533 |  | 637,514 |  | 358,368 |  | 324,792 |  | 940,954 |  | 1,700,792 |  | 31,199 |  | 4,914,734 |
Commercial and industrial |  |  |  |  |  |  |  |
| Current period gross charge-offs | (370) |  | (2,093) |  | (268) |  | (606) |  | (280) |  | (5,486) |  | (4,105) |  | (3,635) |  | (16,843) |
Real estate - construction(1) |  |  |  |  |  |  |  |  |
| Pass | 138,942 |  | 430,449 |  | 203,827 |  | 51,226 |  | 6,138 |  | 43,116 |  | 31,078 |  | — |  | 904,776 |
| Special Mention | — |  | 14,619 |  | 87,643 |  | 65,668 |  | 3,282 |  | 527 |  | 2,324 |  | — |  | 174,063 |
| Substandard or Lower | — |  | — |  | 15,387 |  | 4,502 |  | — |  | 22,406 |  | 133 |  | — |  | 42,428 |
| Total real estate - construction | 138,942 |  | 445,068 |  | 306,857 |  | 121,396 |  | 9,420 |  | 66,049 |  | 33,535 |  | — |  | 1,121,267 |
Real estate - construction(1) |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |
| Pass | 907,742 |  | 1,889,234 |  | 1,892,452 |  | 1,662,329 |  | 1,337,874 |  | 4,227,139 |  | 1,486,949 |  | 6,525 |  | 13,410,244 |
| Special Mention | 15,548 |  | 98,939 |  | 317,300 |  | 319,897 |  | 85,839 |  | 328,343 |  | 165,401 |  | 3,819 |  | 1,335,086 |
| Substandard or Lower | 9,590 |  | 51,895 |  | 118,888 |  | 88,967 |  | 81,545 |  | 241,033 |  | 171,053 |  | 21,179 |  | 784,150 |
| Total | $ | 932,880 |  | $ | 2,040,068 |  | $ | 2,328,640 |  | $ | 2,071,193 |  | $ | 1,505,258 |  | $ | 4,796,515 |  | $ | 1,823,403 |  | $ | 31,523 |  | $ | 15,529,480 |
(1) Excludes real estate - construction - other. Included in special mention loans were loans acquired in the Republic First Transaction with a balance of $721.0 million as of September 30, 2024. Included in substandard or lower loans were loans acquired in the Republic First Transaction with a balance of $171.7 million as of September 30, 2024. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period:
|  | December 31, 2023
|  | (dollars in thousands)
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  |  | Amortized | Amortized |
| 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Pass | $ | 783,673 |  | $ | 993,017 |  | $ | 1,203,852 |  | $ | 984,958 |  | $ | 721,857 |  | $ | 2,822,155 |  | $ | 59,253 |  | $ | 31,636 |  | $ | 7,600,401 |
| Special Mention | 2,767 |  | 43,904 |  | 105,185 |  | 7,862 |  | 35,289 |  | 105,786 |  | 1,760 |  | — |  | 302,553 |
| Substandard or Lower | 366 |  | 20,958 |  | 31,304 |  | 49,142 |  | 26,579 |  | 95,621 |  | 804 |  | — |  | 224,774 |
| Total real estate - commercial mortgage | 786,806 |  | 1,057,879 |  | 1,340,341 |  | 1,041,962 |  | 783,725 |  | 3,023,562 |  | 61,817 |  | 31,636 |  | 8,127,728 |
Real estate - commercial mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | (424) |  | — |  | (17,575) |  | (17,999) |
Commercial and industrial |  |  |  |  |  |  |  |
| Pass | 626,386 |  | 590,132 |  | 330,576 |  | 341,218 |  | 272,126 |  | 598,838 |  | 1,443,203 |  | 10,736 |  | 4,213,215 |
| Special Mention | 7,936 |  | 9,548 |  | 16,499 |  | 3,577 |  | 6,817 |  | 18,487 |  | 72,775 |  | 198 |  | 135,837 |
| Substandard or Lower | 247 |  | 25,184 |  | 4,611 |  | 3,843 |  | 18,988 |  | 31,663 |  | 105,230 |  | 6,734 |  | 196,500 |
| Total commercial and industrial | 634,569 |  | 624,864 |  | 351,686 |  | 348,638 |  | 297,931 |  | 648,988 |  | 1,621,208 |  | 17,668 |  | 4,545,552 |
Commercial and industrial |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | (299) |  | — |  | — |  | — |  | (249) |  | (682) |  | (8,016) |  | (9,246) |
Real estate - construction(1) |  |  |  |  |  |  |  |
| Pass | 322,922 |  | 258,080 |  | 261,583 |  | 37,426 |  | 9,510 |  | 34,097 |  | 13,677 |  | — |  | 937,295 |
| Special Mention | — |  | 12,622 |  | 25,898 |  | — |  | — |  | — |  | — |  | — |  | 38,520 |
| Substandard or Lower | — |  | 521 |  | 2,229 |  | — |  | 340 |  | 21,284 |  | 168 |  | 2,229 |  | 26,771 |
| Total real estate - construction | 322,922 |  | 271,223 |  | 289,710 |  | 37,426 |  | 9,850 |  | 55,381 |  | 13,845 |  | 2,229 |  | 1,002,586 |
Real estate - construction(1) |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |
| Pass | 1,732,981 |  | 1,841,229 |  | 1,796,011 |  | 1,363,602 |  | 1,003,493 |  | 3,455,090 |  | 1,516,133 |  | 42,372 |  | 12,750,911 |
| Special Mention | 10,703 |  | 66,074 |  | 147,582 |  | 11,439 |  | 42,106 |  | 124,273 |  | 74,535 |  | 198 |  | 476,910 |
| Substandard or Lower | 613 |  | 46,663 |  | 38,144 |  | 52,985 |  | 45,907 |  | 148,568 |  | 106,202 |  | 8,963 |  | 448,045 |
| Total | $ | 1,744,297 |  | $ | 1,953,966 |  | $ | 1,981,737 |  | $ | 1,428,026 |  | $ | 1,091,506 |  | $ | 3,727,931 |  | $ | 1,696,870 |  | $ | 51,533 |  | $ | 13,675,866 |
(1) 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 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:
|  | September 30, 2024
|  | (dollars in thousands)
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  |  | Amortized | Amortized |
|  | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Cost Basis | Cost Basis | Total
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Performing | $ | 341,970 |  | $ | 726,077 |  | $ | 1,531,033 |  | $ | 1,748,485 |  | $ | 1,041,766 |  | $ | 871,564 |  | $ | — |  | $ | — |  | $ | 6,260,895 |
| Nonperforming | — |  | 1,257 |  | 4,061 |  | 4,491 |  | 3,538 |  | 28,382 |  | — |  | — |  | 41,729 |
| Total real estate - residential mortgage | 341,970 |  | 727,334 |  | 1,535,094 |  | 1,752,976 |  | 1,045,304 |  | 899,946 |  | — |  | — |  | 6,302,624 |
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | (161) |  | (62) |  | (12) |  | (43) |  | (888) |  | — |  | (251) |  | (1,417) |
Consumer and real estate - home equity |  |  |  |  |  |  |  |
| Performing | 170,366 |  | 124,431 |  | 231,555 |  | 70,197 |  | 51,484 |  | 213,316 |  | 899,502 |  | 22,439 |  | 1,783,290 |
| Nonperforming | 6 |  | 210 |  | 754 |  | 1,225 |  | 254 |  | 6,285 |  | 2,002 |  | 2,093 |  | 12,829 |
| Total consumer and real estate - home equity | 170,372 |  | 124,641 |  | 232,309 |  | 71,422 |  | 51,738 |  | 219,601 |  | 901,504 |  | 24,532 |  | 1,796,119 |
Consumer and real estate - home equity |  |  |  |  |  |  |  |
| Current period gross charge-offs | (77) |  | (627) |  | (1,240) |  | (432) |  | (292) |  | (1,804) |  | (3) |  | (1,837) |  | (6,312) |
Leases and other loans |  |  |  |  |  |  |  |
| Performing | 110,852 |  | 101,880 |  | 66,448 |  | 20,029 |  | 13,167 |  | 13,861 |  | — |  | — |  | 326,237 |
| Nonperforming | — |  | — |  | 531 |  | 63 |  | 38 |  | 9,296 |  | — |  | — |  | 9,928 |
| Leases and other loans | 110,852 |  | 101,880 |  | 66,979 |  | 20,092 |  | 13,205 |  | 23,157 |  | — |  | — |  | 336,165 |
Leases and other loans |  |  |  |  |  |  |  |
| Current period gross charge-offs | (830) |  | (694) |  | (222) |  | (237) |  | (125) |  | (510) |  | (135) |  | (176) |  | (2,929) |
Construction - other |  |  |  |  |  |  |  |  |
| Performing | 84,451 |  | 100,710 |  | 22,764 |  | 2,356 |  | — |  | — |  | — |  | — |  | 210,281 |
| Nonperforming | — |  | — |  | 1,406 |  | — |  | — |  | — |  | — |  | — |  | 1,406 |
| Total construction - other | 84,451 |  | 100,710 |  | 24,170 |  | 2,356 |  | — |  | — |  | — |  | — |  | 211,687 |
Construction - other |  |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |  |
| Performing | 707,639 |  | 1,053,098 |  | 1,851,800 |  | 1,841,067 |  | 1,106,417 |  | 1,098,741 |  | 899,502 |  | 22,439 |  | 8,580,703 |
| Nonperforming | 6 |  | 1,467 |  | 6,752 |  | 5,779 |  | 3,830 |  | 43,963 |  | 2,002 |  | 2,093 |  | 65,892 |
| Total | $ | 707,645 |  | $ | 1,054,565 |  | $ | 1,858,552 |  | $ | 1,846,846 |  | $ | 1,110,247 |  | $ | 1,142,704 |  | $ | 901,504 |  | $ | 24,532 |  | $ | 8,646,595 |
|  | December 31, 2023
|  | (dollars in thousands)
|  | Term Loans Amortized Cost Basis by Origination Year | Revolving Loans | Revolving Loans converted to Term Loans |
|  |  | Amortized | Amortized |
|  | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Cost Basis | Cost Basis | Total
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Performing | $ | 623,247 |  | $ | 1,126,656 |  | $ | 1,682,759 |  | $ | 984,050 |  | $ | 260,049 |  | $ | 607,133 |  | $ | — |  | $ | — |  | $ | 5,283,894 |
| Nonperforming | — |  | 1,720 |  | 4,888 |  | 4,701 |  | 6,233 |  | 24,487 |  | — |  | — |  | 42,029 |
| Total real estate - residential mortgage | 623,247 |  | 1,128,376 |  | 1,687,647 |  | 988,751 |  | 266,282 |  | 631,620 |  | — |  | — |  | 5,325,923 |
Real estate - residential mortgage |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | (62) |  | (62) |
Consumer and Real estate - home equity |  |  |  |  |  |  |  |
| Performing | 272,571 |  | 276,373 |  | 85,985 |  | 62,426 |  | 37,667 |  | 204,913 |  | 805,645 |  | 20,044 |  | 1,765,624 |
| Nonperforming | 295 |  | 455 |  | 866 |  | 282 |  | 354 |  | 5,526 |  | 1,439 |  | 1,661 |  | 10,878 |
| Total consumer and real estate - home equity | 272,866 |  | 276,828 |  | 86,851 |  | 62,708 |  | 38,021 |  | 210,439 |  | 807,084 |  | 21,705 |  | 1,776,502 |
Consumer and Real estate - home equity |  |  |  |  |  |  |  |
| Current period gross charge-offs | (119) |  | — |  | — |  | — |  | — |  | (525) |  | (283) |  | (6,587) |  | (7,514) |
Leases and other loans |  |  |  |  |  |  |  |
| Performing | 166,490 |  | 83,641 |  | 27,755 |  | 22,304 |  | 16,246 |  | 9,867 |  | — |  | — |  | 326,303 |
| Nonperforming | — |  | 118 |  | — |  | — |  | — |  | 9,893 |  | — |  | — |  | 10,011 |
| Leases and other loans | 166,490 |  | 83,759 |  | 27,755 |  | 22,304 |  | 16,246 |  | 19,760 |  | — |  | — |  | 336,314 |
Leases and other loans |  |  |  |  |  |  |  |
| Current period gross charge-offs | (471) |  | (521) |  | (246) |  | (128) |  | (82) |  | (656) |  | (765) |  | (1,511) |  | (4,380) |
Construction - other |  |  |  |  |  |  |  |  |
| Performing | 127,382 |  | 93,319 |  | 13,698 |  | 555 |  | — |  | — |  | — |  | — |  | 234,954 |
| Nonperforming | — |  | 1,535 |  | — |  | — |  | — |  | — |  | — |  | — |  | 1,535 |
| Total construction - other | 127,382 |  | 94,854 |  | 13,698 |  | 555 |  | — |  | — |  | — |  | — |  | 236,489 |
Construction - other |  |  |  |  |  |  |  |  |
| Current period gross charge-offs | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total |  |  |  |  |  |  |  |  |
| Performing | 1,189,690 |  | 1,579,989 |  | 1,810,197 |  | 1,069,335 |  | 313,962 |  | 821,913 |  | 805,645 |  | 20,044 |  | 7,610,775 |
| Nonperforming | 295 |  | 3,828 |  | 5,754 |  | 4,983 |  | 6,587 |  | 39,906 |  | 1,439 |  | 1,661 |  | 64,453 |
| Total | $ | 1,189,985 |  | $ | 1,583,817 |  | $ | 1,815,951 |  | $ | 1,074,318 |  | $ | 320,549 |  | $ | 861,819 |  | $ | 807,084 |  | $ | 21,705 |  | $ | 7,675,228 |
The following table presents non-performing assets:
| September 30, 2024 |  | December 31, 2023
| (dollars in thousands)
Non-accrual loans | $ | 175,861 |  |  | $ | 121,620 |
Loans 90 days or more past due and still accruing | 26,286 |  |  | 31,721 |
Total non-performing loans | 202,147 |  |  | 153,341 |
OREO(1) | 2,844 |  |  | 896 |
Total non-performing assets | $ | 204,991 |  |  | $ | 154,237 |
(1) Excludes $15.1 million and $10.9 million of residential mortgage properties for which formal foreclosure proceedings were in process as of September 30, 2024 and December 31, 2023, 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)
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate - commercial mortgage | $ | 37,045 |  |  | $ | 13,818 |  |  | $ | 2,081 |  |  |  |  | $ | 69,386 |  |  | $ | 9,371,149 |  |  | $ | 9,493,479 |
Commercial and industrial(1) | 20,795 |  |  | 5,066 |  |  | 836 |  |  |  |  | 63,614 |  |  | 4,824,423 |  |  | 4,914,734 |
Real estate - residential mortgage | 41,105 |  |  | 9,022 |  |  | 17,296 |  |  |  |  | 24,431 |  |  | 6,210,770 |  |  | 6,302,624 |
Real estate - home equity | 3,893 |  |  | 1,320 |  |  | 3,860 |  |  |  |  | 8,047 |  |  | 1,127,282 |  |  | 1,144,402 |
Real estate - construction | 2,533 |  |  | 832 |  |  | 1,406 |  |  |  |  | 340 |  |  | 1,327,843 |  |  | 1,332,954 |
Consumer | 6,082 |  |  | 1,992 |  |  | 714 |  |  |  |  | 209 |  |  | 642,720 |  |  | 651,717 |
Leases and other loans(1) | 474 |  |  | 373 |  |  | 93 |  |  |  |  | 9,834 |  |  | 325,391 |  |  | 336,165 |
Total | $ | 111,927 |  |  | $ | 32,423 |  |  | $ | 26,286 |  |  |  |  | $ | 175,861 |  |  | $ | 23,829,578 |  |  | $ | 24,176,075 |
(1) 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, 2023 |  |  |  |  |  |  |  |  |  |  |
Real estate - commercial mortgage | $ | 4,408 |  |  | $ | 1,341 |  |  | $ | 1,722 |  |  | $ | 44,805 |  |  | $ | 8,075,452 |  |  | $ | 8,127,728 |
Commercial and industrial(1) | 5,620 |  |  | 1,656 |  |  | 1,068 |  |  | 39,952 |  |  | 4,497,256 |  |  | 4,545,552 |
Real estate - residential mortgage | 49,145 |  |  | 10,838 |  |  | 21,205 |  |  | 20,824 |  |  | 5,223,911 |  |  | 5,325,923 |
Real estate - home equity | 8,142 |  |  | 2,075 |  |  | 5,326 |  |  | 4,753 |  |  | 1,026,888 |  |  | 1,047,184 |
Real estate - construction | 4,185 |  |  | 451 |  |  | 1,535 |  |  | 1,341 |  |  | 1,231,563 |  |  | 1,239,075 |
Consumer | 8,361 |  |  | 1,767 |  |  | 747 |  |  | 52 |  |  | 718,391 |  |  | 729,318 |
Leases and other loans(1) | 146 |  |  | 722 |  |  | 118 |  |  | 9,893 |  |  | 325,435 |  |  | 336,314 |
Total | $ | 80,007 |  |  | $ | 18,850 |  |  | $ | 31,721 |  |  | $ | 121,620 |  |  | $ | 21,098,896 |  |  | $ | 21,351,094 |
(1) Includes unearned income. Loan Modifications to Borrowers Experiencing Financial Difficulty 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 may be provided to a borrower. When principal forgiveness is provided, the amount of principal forgiven is deemed to be uncollectible and the amortized cost basis of the loan is reduced by the amount of the forgiven portion, with a corresponding reduction to the ACL. The following table presents the amortized cost basis of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:
| Term Extension
| 2024 | 2023
| Amortization Cost Basis |  | % of Class of Financing Receivable | Amortization Cost Basis |  | % of Class of Financing Receivable
| (dollars in thousands)
Three months ended September 30 |  |  |  |  |  |
Real estate - commercial mortgage | $ | — |  |  | — | % | $ | 1,120 |  |  | 0.01 | %
Commercial and industrial | — |  |  | — |  | 7 |  |  | — |
Real estate - residential mortgage | 2,976 |  |  | 0.05 |  | 1,933 |  |  | 0.04 |
Real estate - home equity | 256 |  |  | 0.02 |  | — |  |  | — |
Total | $ | 3,232 |  |  |  | $ | 3,060 |  |  |
Nine months ended September 30 |  |  |  |  |  |
Real estate - commercial mortgage | $ | 20,458 |  |  | 0.22 | % | $ | 2,556 |  |  | 0.03 | %
Commercial and industrial | — |  |  | — |  | 66 |  |  | — |
Real estate - residential mortgage | 8,643 |  |  | 0.14 |  | 5,343 |  |  | 0.10 |
Real estate - home equity | 394 |  |  | 0.03 |  | — |  |  | — |
Real estate - construction | 605 |  |  | 0.05 |  | — |  |  | — |
Total | $ | 30,100 |  |  |  | $ | 7,965 |  |  |
| Interest Rate Reduction and Term Extension
| 2024 | 2023
| Amortized Cost Basis |  | % of Class of Financing Receivable | Amortized Cost Basis |  | % of Class of Financing Receivable
| (dollars in thousands)
Three months ended September 30 |  |  |  |  |  |
Real estate - residential mortgage | $ | 622 |  |  | 0.01 | % | $ | — |  |  | — | %
Total | $ | 622 |  |  |  | $ | — |  |  |
Nine months ended September 30 |  |  |  |  |  |
Real estate - residential mortgage | $ | 1,941 |  |  | 0.03 | % | $ | — |  |  | — | %
Total | $ | 1,941 |  |  |  | $ | — |  |  |
The following table presents the financial effect of the modifications made to borrowers experiencing financial difficulty:
| Term Extension |  |  |  |  |  |
| Financial Effect |  |  |  |  |  |
Three months ended September 30, 2024 |  |  |  |  |  |  |
Real estate - residential mortgage | Added a weighted-average 10.22 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Real estate - home equity | Added a weighted-average 12.40 years to the life of loans, which reduced monthly payment amounts for borrowers. |  |  |  |  |  |
Three months ended September 30, 2023 |  |  |  |  |  |  |
Real estate - commercial mortgage | Added a weighted-average 0.50 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Commercial and industrial | Added a weighted-average 0.92 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Real estate - residential mortgage | Added a weighted-average 4.49 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Nine months ended September 30, 2024 |  |  |  |  |  |  |
Real estate - commercial mortgage | Added a weighted-average 2.00 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Real estate - residential mortgage | Added a weighted-average 8.43 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Real estate - home equity | Added a weighted-average 14.31 years to the life of loans, which reduced monthly payment amounts for borrowers. |  |  |  |  |  |
Real estate - construction | Added a weighted-average 0.67 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Nine months ended September 30, 2023 |  |  |  |  |  |  |
Real estate - commercial mortgage | Added a weighted-average 2.43 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Commercial and industrial | Added a weighted-average 3.76 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
Real estate - residential mortgage | Added a weighted-average 4.58 years to the life of loans, which reduced monthly payment amounts for the borrowers. |  |  |  |  |  |
| Interest Rate Reduction(1)
| Financial Effect
Three months ended September 30, 2024 |
Real estate - residential mortgage | Reduced weighted-average interest rate from 4.02% to 2.49%
Nine months ended September 30, 2024 |
Real estate - residential mortgage | Reduced weighted-average interest rate from 2.86% to 1.71%
(1) There were no loan modifications with interest rate reductions for the three months and nine months ended September 30, 2023. During the three months and nine months ended September 30, 2024 and 2023, there were no loans modified due to financial difficulty where there was a principal balance forgiveness. The following table presents the performance of loans that have been modified due to financial difficulty in the previous 12 months:
|  |  | 30-89 |  | 90+ |  | Total
|  |  | Days Past |  | Past Due |  | Past
| Current |  | Due |  | and Accruing |  | Due
September 30, 2024 | (dollars in thousands)
Real estate - commercial mortgage | $ | 20,458 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Real estate - residential mortgage | 7,690 |  |  | 3,633 |  |  | 3,035 |  |  | 6,668 |
Real estate - home equity | 214 |  |  | 173 |  |  | 7 |  |  | 180 |
Real estate - construction | 605 |  |  | — |  |  | — |  |  | — |
Total | $ | 28,967 |  |  | $ | 3,806 |  |  | $ | 3,042 |  |  | $ | 6,848 |
There were no commitments to lend additional funds to borrowers with loan modifications as a result of financial difficulty as of September 30, 2024.

X
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