XML 20 R14.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Loans and Leases and the Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2024
Loans And Leases And Allowance For Loan And Lease Losses [Abstract]  
Loans and Leases and the Allowance for Credit Losses

Note 4. Loans and Leases and the Allowance for Credit Losses

Loans and Leases

The Company’s loan and lease portfolio was comprised of the following as of March 31, 2024, and December 31, 2023:

 

(dollars in thousands)

 

March 31,
2024

 

 

December 31,
2023

 

Commercial

 

 

 

 

 

 

Commercial and Industrial

 

$

1,669,482

 

 

$

1,652,699

 

Paycheck Protection Program

 

 

10,177

 

 

 

11,369

 

Commercial Mortgage

 

 

3,715,032

 

 

 

3,749,016

 

Construction

 

 

323,069

 

 

 

304,463

 

Lease Financing

 

 

57,817

 

 

 

59,939

 

Total Commercial

 

 

5,775,577

 

 

 

5,777,486

 

Consumer

 

 

 

 

 

 

Residential Mortgage

 

 

4,616,900

 

 

 

4,684,171

 

Home Equity

 

 

2,240,946

 

 

 

2,264,827

 

Automobile

 

 

825,854

 

 

 

837,830

 

Other1

 

 

394,560

 

 

 

400,712

 

Total Consumer

 

 

8,078,260

 

 

 

8,187,540

 

Total Loans and Leases

 

$

13,853,837

 

 

$

13,965,026

 

 

1.
Comprised of other revolving credit, installment, and lease financing.

Most of the Company’s lending activity is with customers located in the State of Hawaii. A substantial portion of the Company’s real estate loans are secured by real estate located in the State of Hawaii.

Net gain related to sales of residential mortgage loans, recorded as a component of mortgage banking income were less than $0.1 million for the three months ended March 31, 2024, and March 31, 2023, respectively.

The Company elected to exclude AIR from the amortized cost basis of loans disclosed throughout this footnote. As of March 31, 2024, and December 31, 2023, AIR for loans totaled $48.4 million, and is included in the “accrued interest receivable” line item on the Company’s consolidated statements of condition.

Allowance for Credit Losses (the “Allowance”)

The following presents by portfolio segment, the activity in the Allowance for the three months ended March 31, 2024, and March 31, 2023.

 

(dollars in thousands)

 

Commercial

 

 

Consumer

 

 

Total

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses:

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

 

$

74,074

 

 

$

72,329

 

 

$

146,403

 

Loans and Leases Charged-Off

 

 

(360

)

 

 

(3,395

)

 

 

(3,755

)

Recoveries on Loans and Leases Previously Charged-Off

 

 

116

 

 

 

1,358

 

 

 

1,474

 

Net Loans and Leases Recovered (Charged-Off)

 

 

(244

)

 

 

(2,037

)

 

 

(2,281

)

Provision for Credit Losses

 

 

1,257

 

 

 

2,285

 

 

 

3,542

 

Balance at End of Period

 

$

75,087

 

 

$

72,577

 

 

$

147,664

 

Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

Allowance for Credit Losses:

 

 

 

 

 

 

 

 

 

Balance at Beginning of Period

 

$

63,900

 

 

$

80,539

 

 

$

144,439

 

Loans and Leases Charged-Off

 

 

(261

)

 

 

(4,048

)

 

 

(4,309

)

Recoveries on Loans and Leases Previously Charged-Off

 

 

50

 

 

 

1,591

 

 

 

1,641

 

Net Loans and Leases Recovered (Charged-Off)

 

 

(211

)

 

 

(2,457

)

 

 

(2,668

)

Provision for Credit Losses

 

 

(4,918

)

 

 

6,724

 

 

 

1,806

 

Balance at End of Period

 

$

58,771

 

 

$

84,806

 

 

$

143,577

 

Credit Quality Indicators

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company uses an internal credit risk rating system that categorizes loans and leases into pass, special mention, or classified categories. Credit risk ratings are applied individually to those classes of loans and leases that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans and leases to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans and leases that are underwritten and structured using standardized criteria and characteristics are typically monitored and risk-rated collectively. These are typically loans and leases to individuals in the classes which comprise the consumer portfolio segment.

The following are the definitions of the Company’s credit quality indicators:

Pass:

Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated, are generally contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan or lease agreement. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered Pass if the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered Pass if: a) the home equity loan is in first lien position and the current loan-to-value ratio is 60% or less; or b) the first mortgage is with the Company and the current combined loan-to-value ratio is 60% or less.

 

 

Special Mention:

Loans and leases in all classes within the commercial portfolio segment that have potential weaknesses that warrant management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The Special Mention credit quality indicator is not used for the consumer portfolio segment.

 

 

Classified:

Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or applicable collateral, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest (excluding residential mortgage and home equity loans which meet the criteria for being considered Pass). Residential mortgage and home equity loans may be current as to principal and interest, but may be considered Classified for a period of generally up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from Classified status.

 

For Pass rated credits in the commercial portfolio, most risk ratings are certified at a minimum annually. For Special Mention or Classified credits in the commercial portfolio, risk ratings are reviewed for appropriateness on an ongoing basis, monthly, or at a minimum, quarterly. The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of March 31, 2024.

 

 

 

Term Loans by Origination Year

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

20242

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Revolving
Loans

 

 

Revolving
Loans
Converted
to Term
Loans

 

 

Total Loans
and Leases

 

March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

117,709

 

 

$

324,140

 

 

$

277,302

 

 

$

202,960

 

 

$

142,257

 

 

$

99,409

 

 

$

397,661

 

 

$

360

 

 

$

1,561,798

 

Special Mention

 

 

-

 

 

 

58

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

45,184

 

 

 

-

 

 

 

45,242

 

Classified

 

 

13

 

 

 

11,395

 

 

 

6,595

 

 

 

8,791

 

 

 

6,611

 

 

 

8,978

 

 

 

20,048

 

 

 

11

 

 

 

62,442

 

Total Commercial and Industrial

 

$

117,722

 

 

$

335,593

 

 

$

283,897

 

 

$

211,751

 

 

$

148,868

 

 

$

108,387

 

 

$

462,893

 

 

$

371

 

 

$

1,669,482

 

Paycheck Protection Program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,951

 

 

$

8,226

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

10,177

 

Total Paycheck Protection Program

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,951

 

 

$

8,226

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

10,177

 

Commercial Mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

117,064

 

 

$

683,702

 

 

$

1,001,935

 

 

$

661,193

 

 

$

424,648

 

 

$

630,355

 

 

$

41,647

 

 

$

-

 

 

$

3,560,544

 

Special Mention

 

 

-

 

 

 

65,190

 

 

 

1,950

 

 

 

13,684

 

 

 

-

 

 

 

11,066

 

 

 

-

 

 

 

-

 

 

 

91,890

 

Classified

 

 

468

 

 

 

5,168

 

 

 

18,746

 

 

 

5,922

 

 

 

18,979

 

 

 

13,315

 

 

 

-

 

 

 

-

 

 

 

62,598

 

Total Commercial Mortgage

 

$

117,532

 

 

$

754,060

 

 

$

1,022,631

 

 

$

680,799

 

 

$

443,627

 

 

$

654,736

 

 

$

41,647

 

 

$

-

 

 

$

3,715,032

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

43,335

 

 

$

84,894

 

 

$

127,090

 

 

$

30,921

 

 

$

-

 

 

$

15,915

 

 

$

17,166

 

 

$

-

 

 

$

319,321

 

Special Mention

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,324

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,324

 

Classified

 

 

-

 

 

 

-

 

 

 

2,424

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,424

 

Total Construction

 

$

43,335

 

 

$

84,894

 

 

$

129,514

 

 

$

30,921

 

 

$

1,324

 

 

$

15,915

 

 

$

17,166

 

 

$

-

 

 

$

323,069

 

Lease Financing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

3,549

 

 

$

9,292

 

 

$

11,544

 

 

$

12,776

 

 

$

7,710

 

 

$

11,674

 

 

$

-

 

 

$

-

 

 

$

56,545

 

Classified

 

 

-

 

 

 

574

 

 

 

47

 

 

 

109

 

 

 

87

 

 

 

455

 

 

 

-

 

 

 

-

 

 

 

1,272

 

Total Lease Financing

 

$

3,549

 

 

$

9,866

 

 

$

11,591

 

 

$

12,885

 

 

$

7,797

 

 

$

12,129

 

 

$

-

 

 

$

-

 

 

$

57,817

 

Total Commercial

 

$

282,138

 

 

$

1,184,413

 

 

$

1,447,633

 

 

$

938,307

 

 

$

609,842

 

 

$

791,167

 

 

$

521,706

 

 

$

371

 

 

$

5,775,577

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

25,834

 

 

$

289,895

 

 

$

782,706

 

 

$

1,229,968

 

 

$

960,845

 

 

$

1,325,079

 

 

$

-

 

 

$

-

 

 

$

4,614,327

 

Classified

 

 

-

 

 

 

-

 

 

 

-

 

 

 

426

 

 

 

448

 

 

 

1,699

 

 

 

-

 

 

 

-

 

 

 

2,573

 

Total Residential Mortgage

 

$

25,834

 

 

$

289,895

 

 

$

782,706

 

 

$

1,230,394

 

 

$

961,293

 

 

$

1,326,778

 

 

$

-

 

 

$

-

 

 

$

4,616,900

 

Home Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

42

 

 

$

2,190,048

 

 

$

49,092

 

 

$

2,239,182

 

Classified

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,060

 

 

 

704

 

 

 

1,764

 

Total Home Equity

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

42

 

 

$

2,191,108

 

 

$

49,796

 

 

$

2,240,946

 

Automobile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

58,778

 

 

$

240,008

 

 

$

278,365

 

 

$

135,597

 

 

$

56,266

 

 

$

56,324

 

 

$

-

 

 

$

-

 

 

$

825,338

 

Classified

 

 

-

 

 

 

67

 

 

 

201

 

 

 

83

 

 

 

27

 

 

 

138

 

 

 

-

 

 

 

-

 

 

 

516

 

Total Automobile

 

$

58,778

 

 

$

240,075

 

 

$

278,566

 

 

$

135,680

 

 

$

56,293

 

 

$

56,462

 

 

$

-

 

 

$

-

 

 

$

825,854

 

Other1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

33,148

 

 

$

93,435

 

 

$

130,583

 

 

$

81,064

 

 

$

10,593

 

 

$

44,101

 

 

$

763

 

 

$

-

 

 

$

393,687

 

Classified

 

 

-

 

 

 

134

 

 

 

288

 

 

 

232

 

 

 

39

 

 

 

180

 

 

 

-

 

 

 

-

 

 

 

873

 

Total Other

 

$

33,148

 

 

$

93,569

 

 

$

130,871

 

 

$

81,296

 

 

$

10,632

 

 

$

44,281

 

 

$

763

 

 

$

-

 

 

$

394,560

 

Total Consumer

 

$

117,760

 

 

$

623,539

 

 

$

1,192,143

 

 

$

1,447,370

 

 

$

1,028,218

 

 

$

1,427,563

 

 

$

2,191,871

 

 

$

49,796

 

 

$

8,078,260

 

Total Loans and Leases

 

$

399,898

 

 

$

1,807,952

 

 

$

2,639,776

 

 

$

2,385,677

 

 

$

1,638,060

 

 

$

2,218,730

 

 

$

2,713,577

 

 

$

50,167

 

 

$

13,853,837

 

 

1.
Comprised of other revolving credit, installment, and lease financing.
2.
Loans reported as Classified in the 2024 column represent renewal of loans that originated in an earlier period.

For the three months ended March 31, 2024, $3.4 million of revolving loans were converted to term loans.

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2023.

 

 

 

Term Loans by Origination Year

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

20232

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans

 

 

Revolving
Loans
Converted
to Term
Loans

 

 

Total Loans
and Leases

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

319,451

 

 

$

294,142

 

 

$

229,286

 

 

$

148,575

 

 

$

40,696

 

 

$

77,789

 

 

$

380,524

 

 

$

450

 

 

$

1,490,913

 

Special Mention

 

 

50,792

 

 

 

5,555

 

 

 

-

 

 

 

-

 

 

 

657

 

 

 

-

 

 

 

39,278

 

 

 

-

 

 

 

96,282

 

Classified

 

 

11,790

 

 

 

5,846

 

 

 

8,928

 

 

 

6,625

 

 

 

-

 

 

 

9,199

 

 

 

23,103

 

 

 

13

 

 

 

65,504

 

Total Commercial and Industrial

 

$

382,033

 

 

$

305,543

 

 

$

238,214

 

 

$

155,200

 

 

$

41,353

 

 

$

86,988

 

 

$

442,905

 

 

$

463

 

 

$

1,652,699

 

Paycheck Protection Program

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

-

 

 

$

-

 

 

$

2,199

 

 

$

9,170

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

11,369

 

Total Paycheck Protection Program

 

$

-

 

 

$

-

 

 

$

2,199

 

 

$

9,170

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

11,369

 

Commercial Mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

788,558

 

 

$

1,043,472

 

 

$

679,258

 

 

$

432,896

 

 

$

244,767

 

 

$

419,225

 

 

$

41,292

 

 

$

-

 

 

$

3,649,468

 

Special Mention

 

 

30,356

 

 

 

18,636

 

 

 

-

 

 

 

3,875

 

 

 

-

 

 

 

9,153

 

 

 

-

 

 

 

-

 

 

 

62,020

 

Classified

 

 

5,829

 

 

 

155

 

 

 

3,724

 

 

 

13,112

 

 

 

535

 

 

 

14,173

 

 

 

-

 

 

 

-

 

 

 

37,528

 

Total Commercial Mortgage

 

$

824,743

 

 

$

1,062,263

 

 

$

682,982

 

 

$

449,883

 

 

$

245,302

 

 

$

442,551

 

 

$

41,292

 

 

$

-

 

 

$

3,749,016

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

77,163

 

 

$

149,183

 

 

$

50,996

 

 

$

-

 

 

$

16,009

 

 

$

-

 

 

$

9,777

 

 

$

-

 

 

$

303,128

 

Special Mention

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,335

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,335

 

Total Construction

 

$

77,163

 

 

$

149,183

 

 

$

50,996

 

 

$

1,335

 

 

$

16,009

 

 

$

-

 

 

$

9,777

 

 

$

-

 

 

$

304,463

 

Lease Financing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

9,867

 

 

$

13,409

 

 

$

13,795

 

 

$

8,493

 

 

$

5,385

 

 

$

7,650

 

 

$

-

 

 

$

-

 

 

$

58,599

 

Classified

 

 

600

 

 

 

51

 

 

 

117

 

 

 

94

 

 

 

-

 

 

 

478

 

 

 

-

 

 

 

-

 

 

 

1,340

 

Total Lease Financing

 

$

10,467

 

 

$

13,460

 

 

$

13,912

 

 

$

8,587

 

 

$

5,385

 

 

$

8,128

 

 

$

-

 

 

$

-

 

 

$

59,939

 

Total Commercial

 

$

1,294,406

 

 

$

1,530,449

 

 

$

988,303

 

 

$

624,175

 

 

$

308,049

 

 

$

537,667

 

 

$

493,974

 

 

$

463

 

 

$

5,777,486

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

297,532

 

 

$

796,979

 

 

$

1,249,917

 

 

$

977,377

 

 

$

303,098

 

 

$

1,057,267

 

 

$

-

 

 

$

-

 

 

$

4,682,170

 

Classified

 

 

-

 

 

 

-

 

 

 

426

 

 

 

-

 

 

 

-

 

 

 

1,575

 

 

 

-

 

 

 

-

 

 

 

2,001

 

Total Residential Mortgage

 

$

297,532

 

 

$

796,979

 

 

$

1,250,343

 

 

$

977,377

 

 

$

303,098

 

 

$

1,058,842

 

 

$

-

 

 

$

-

 

 

$

4,684,171

 

Home Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

43

 

 

$

2,215,970

 

 

$

46,794

 

 

$

2,262,807

 

Classified

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,229

 

 

 

791

 

 

 

2,020

 

Total Home Equity

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

43

 

 

$

2,217,199

 

 

$

47,585

 

 

$

2,264,827

 

Automobile

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

250,380

 

 

$

301,968

 

 

$

149,915

 

 

$

64,734

 

 

$

46,396

 

 

$

24,038

 

 

$

-

 

 

$

-

 

 

$

837,431

 

Classified

 

 

84

 

 

 

108

 

 

 

11

 

 

 

46

 

 

 

72

 

 

 

78

 

 

 

-

 

 

 

-

 

 

 

399

 

Total Automobile

 

$

250,464

 

 

$

302,076

 

 

$

149,926

 

 

$

64,780

 

 

$

46,468

 

 

$

24,116

 

 

$

-

 

 

$

-

 

 

$

837,830

 

Other1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

102,563

 

 

$

141,421

 

 

$

92,312

 

 

$

13,074

 

 

$

16,897

 

 

$

32,519

 

 

$

1,277

 

 

$

-

 

 

$

400,063

 

Classified

 

 

65

 

 

 

224

 

 

 

165

 

 

 

22

 

 

 

93

 

 

 

80

 

 

 

-

 

 

 

-

 

 

 

649

 

Total Other

 

$

102,628

 

 

$

141,645

 

 

$

92,477

 

 

$

13,096

 

 

$

16,990

 

 

$

32,599

 

 

$

1,277

 

 

$

-

 

 

$

400,712

 

Total Consumer

 

$

650,624

 

 

$

1,240,700

 

 

$

1,492,746

 

 

$

1,055,253

 

 

$

366,556

 

 

$

1,115,600

 

 

$

2,218,476

 

 

$

47,585

 

 

$

8,187,540

 

Total Loans and Leases

 

$

1,945,030

 

 

$

2,771,149

 

 

$

2,481,049

 

 

$

1,679,428

 

 

$

674,605

 

 

$

1,653,267

 

 

$

2,712,450

 

 

$

48,048

 

 

$

13,965,026

 

 

1.
Comprised of other revolving credit, installment, and lease financing.
2.
Loans reported as Special Mention or Classified in the 2023 column represent renewal of loans that originated in an earlier period.

For the year ended December 31, 2023, $13.2 million of revolving loans were converted to term loans.

 

Aging Analysis

Loans and leases are considered to be past due once becoming 30 days delinquent. For the consumer portfolio, this generally represents two missed monthly payments. The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of March 31, 2024, and December 31, 2023.

 

(dollars in thousands)

 

30 - 59
Days
Past Due

 

 

60 - 89
Days
Past Due

 

 

Past Due
90 Days
or More

 

 

Non-
Accrual

 

 

Total
Past Due
and Non-
Accrual

 

 

Current

 

 

Total
Loans and
Leases

 

 

Non-
Accrual
Loans
and Leases
that are
Current 2

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

8,373

 

 

$

78

 

 

$

—

 

 

$

13

 

 

 

8,464

 

 

 

1,661,018

 

 

$

1,669,482

 

 

$

13

 

Paycheck Protection Program

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,177

 

 

 

10,177

 

 

 

—

 

Commercial Mortgage

 

 

230

 

 

 

—

 

 

 

—

 

 

 

2,714

 

 

 

2,944

 

 

 

3,712,088

 

 

 

3,715,032

 

 

 

2,714

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

323,069

 

 

 

323,069

 

 

 

—

 

Lease Financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

57,817

 

 

 

57,817

 

 

 

—

 

Total Commercial

 

 

8,603

 

 

 

78

 

 

 

—

 

 

 

2,727

 

 

 

11,408

 

 

 

5,764,169

 

 

 

5,775,577

 

 

 

2,727

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

3,110

 

 

 

3,828

 

 

 

3,378

 

 

 

3,199

 

 

 

13,515

 

 

 

4,603,385

 

 

 

4,616,900

 

 

 

691

 

Home Equity

 

 

5,063

 

 

 

1,751

 

 

 

1,580

 

 

 

3,240

 

 

 

11,634

 

 

 

2,229,312

 

 

 

2,240,946

 

 

 

1,490

 

Automobile

 

 

9,403

 

 

 

1,321

 

 

 

517

 

 

 

—

 

 

 

11,241

 

 

 

814,613

 

 

 

825,854

 

 

 

—

 

Other 1

 

 

2,055

 

 

 

1,097

 

 

 

872

 

 

 

—

 

 

 

4,024

 

 

 

390,536

 

 

 

394,560

 

 

 

—

 

Total Consumer

 

 

19,631

 

 

 

7,997

 

 

 

6,347

 

 

 

6,439

 

 

 

40,414

 

 

 

8,037,846

 

 

 

8,078,260

 

 

 

2,181

 

Total

 

$

28,234

 

 

$

8,075

 

 

$

6,347

 

 

$

9,166

 

 

$

51,822

 

 

$

13,802,015

 

 

$

13,853,837

 

 

$

4,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

6,748

 

 

$

514

 

 

$

—

 

 

$

39

 

 

$

7,301

 

 

$

1,645,398

 

 

$

1,652,699

 

 

$

36

 

Paycheck Protection Program

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

11,369

 

 

 

11,369

 

 

 

—

 

Commercial Mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,884

 

 

 

2,884

 

 

 

3,746,132

 

 

 

3,749,016

 

 

 

2,884

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

304,463

 

 

 

304,463

 

 

 

—

 

Lease Financing

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

59,939

 

 

 

59,939

 

 

 

—

 

Total Commercial

 

 

6,748

 

 

 

514

 

 

 

—

 

 

 

2,923

 

 

 

10,185

 

 

 

5,767,301

 

 

 

5,777,486

 

 

 

2,920

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

4,547

 

 

 

317

 

 

 

3,814

 

 

 

2,935

 

 

 

11,613

 

 

 

4,672,558

 

 

 

4,684,171

 

 

 

867

 

Home Equity

 

 

4,210

 

 

 

1,967

 

 

 

1,734

 

 

 

3,791

 

 

 

11,702

 

 

 

2,253,125

 

 

 

2,264,827

 

 

 

1,101

 

Automobile

 

 

13,242

 

 

 

1,478

 

 

 

399

 

 

 

—

 

 

 

15,119

 

 

 

822,711

 

 

 

837,830

 

 

 

—

 

Other 1

 

 

1,968

 

 

 

1,019

 

 

 

648

 

 

 

—

 

 

 

3,635

 

 

 

397,077

 

 

 

400,712

 

 

 

—

 

Total Consumer

 

 

23,967

 

 

 

4,781

 

 

 

6,595

 

 

 

6,726

 

 

 

42,069

 

 

 

8,145,471

 

 

 

8,187,540

 

 

 

1,968

 

Total

 

$

30,715

 

 

$

5,295

 

 

$

6,595

 

 

$

9,649

 

 

$

52,254

 

 

$

13,912,772

 

 

$

13,965,026

 

 

$

4,888

 

 

 

1.
Comprised of other revolving credit, installment, and lease financing.
2.
Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected.

 

Non-Accrual Loans and Leases

The following presents the non-accrual loans and leases as of March 31, 2024, and December 31, 2023.

 

 

 

March 31, 2024

 

 

December 31, 2023

 

(dollars in thousands)

 

Non-accrual
loans with a
related ACL

 

 

Non-accrual
loans without
a related ACL

 

 

Total Non-
accrual loans

 

 

Non-accrual
loans with a
related ACL

 

 

Non-accrual
loans without
a related ACL

 

 

Total Non-
accrual loans

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

13

 

 

$

—

 

 

$

13

 

 

$

39

 

 

$

—

 

 

$

39

 

Commercial Mortgage

 

 

—

 

 

 

2,714

 

 

 

2,714

 

 

 

—

 

 

 

2,884

 

 

 

2,884

 

Total Commercial

 

 

13

 

 

 

2,714

 

 

 

2,727

 

 

 

39

 

 

 

2,884

 

 

 

2,923

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

3,199

 

 

 

—

 

 

 

3,199

 

 

 

2,935

 

 

 

—

 

 

 

2,935

 

Home Equity

 

 

3,240

 

 

 

—

 

 

 

3,240

 

 

 

3,791

 

 

 

—

 

 

 

3,791

 

Total Consumer

 

 

6,439

 

 

 

—

 

 

 

6,439

 

 

 

6,726

 

 

 

—

 

 

 

6,726

 

Total

 

$

6,452

 

 

$

2,714

 

 

$

9,166

 

 

$

6,765

 

 

$

2,884

 

 

$

9,649

 

 

All payments received while on non-accrual status are applied against the principal balance of the loan or lease. The Company does not recognize interest income while loans or leases are on non-accrual status.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearances, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:

 

Loan Classes

Modification Types

Commercial:

Term extension, interest rate reductions, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.

 

Residential Mortgage/
Home Equity:

Forbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term.

Residential Mortgage/
Home Equity:

Term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement.

Automobile/
Direct Installment:

Term extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement.

 

 

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during three months ended March 31, 2024 and March 31, 2023.

 

 

 

 

Payment

 

 

 

 

 

 

% of

 

 

 

 

Delay

 

 

 

 

 

 

Total

 

 

 

 

and

 

 

 

 

 

 

Class of

 

 

Term

 

Term

 

Payment

 

 

 

 

Loans and

 

(dollars in thousands)

Extension

 

Extension

 

Delay

 

Total

 

 

Leases

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

25

 

$

4,841

 

$

—

 

$

4,866

 

 

 

0.29

%

Total Commercial

 

25

 

 

4,841

 

 

—

 

 

4,866

 

 

 

0.08

%

Consumer

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

—

 

 

—

 

 

15,261

 

 

15,261

 

 

 

0.33

%

Home Equity

 

—

 

 

—

 

 

610

 

 

610

 

 

 

0.03

%

Automobile

 

4,314

 

 

875

 

 

—

 

 

5,189

 

 

 

0.63

%

Other1

 

455

 

 

116

 

 

—

 

 

571

 

 

 

0.14

%

Total Consumer

 

4,769

 

 

991

 

 

15,871

 

 

21,631

 

 

 

0.27

%

Total Loans and Leases

$

4,794

 

$

5,832

 

$

15,871

 

$

26,497

 

 

 

0.19

%

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

—

 

$

7,091

 

$

—

 

$

7,091

 

 

 

0.50

%

Total Commercial

 

—

 

 

7,091

 

 

—

 

 

7,091

 

 

 

0.13

%

Consumer

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

137

 

 

—

 

 

—

 

 

137

 

 

 

0.00

%

Home Equity

 

141

 

 

—

 

 

—

 

 

141

 

 

 

0.01

%

Automobile

 

1,815

 

 

—

 

 

—

 

 

1,815

 

 

 

0.21

%

Other1

 

175

 

 

—

 

 

—

 

 

175

 

 

 

0.04

%

Total Consumer

 

2,268

 

 

—

 

 

—

 

 

2,268

 

 

 

0.03

%

Total Loans and Leases

$

2,268

 

$

7,091

 

$

—

 

$

9,359

 

 

 

0.07

%

 

1.
Comprised of other revolving credit, installment, and lease financing.

 

The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and March 31, 2023.

 

 

Weighted-Average

 

 

Weighted-Average

 

 

 

Months of

 

 

Payment

 

(dollars in thousands)

 

Term Extension

 

 

Deferral

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

Commercial and Industrial

 

$

12

 

 

$

593

 

Consumer

 

 

 

 

 

 

Residential Mortgage

 

 

—

 

 

 

17

 

Home Equity

 

 

—

 

 

 

3

 

Automobile

 

 

22

 

 

 

2

 

Other1

 

 

18

 

 

 

1

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2023

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

Commercial and Industrial

 

$

6

 

 

$

1,159

 

Consumer

 

 

 

 

 

 

Residential Mortgage

 

 

58

 

 

 

—

 

Home Equity

 

 

64

 

 

 

—

 

Automobile

 

 

23

 

 

 

—

 

Other1

 

 

23

 

 

 

—

 

1 Comprised of other revolving credit, installment and lease financing.

 

The following table presents the loan modifications made to borrowers experiencing financial difficulty that defaulted during the three months ended March 31, 2024. There were no loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2023, that subsequently defaulted.

 

 

Term

 

 

 

 

(dollars in thousands)

Extension

 

 

Total

 

Three Months Ended March 31, 2024

 

 

 

 

 

Consumer

 

 

 

 

 

Automobile

$

514

 

 

$

514

 

Other1

 

253

 

 

 

253

 

 Total Consumer

 

767

 

 

 

767

 

Total Loans and Leases

$

767

 

 

$

767

 

 

1.
Comprised of other revolving credit, installment, and lease financing.

 

The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty as of March 31, 2024 and March 31, 2023.

 

(dollars in thousands)

 

Current

 

 

30 - 59
Days
Past Due

 

 

60 - 89
Days
Past Due

 

 

Past Due
90 Days
or More

 

 

Non-
Accrual

 

Total

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

4,841

 

 

$

24

 

 

$

—

 

 

$

—

 

 

$

—

 

$

4,865

 

 Total Commercial

 

 

4,841

 

 

 

24

 

 

 

—

 

 

 

—

 

 

 

—

 

 

4,865

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

15,261

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

15,261

 

Home Equity

 

 

610

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

610

 

Automobile

 

 

5,055

 

 

 

134

 

 

 

—

 

 

 

—

 

 

 

—

 

 

5,189

 

Other1

 

 

517

 

 

 

9

 

 

 

46

 

 

 

—

 

 

 

—

 

 

572

 

 Total Consumer

 

 

21,443

 

 

 

143

 

 

 

46

 

 

 

—

 

 

 

—

 

 

21,632

 

Total Loans and Leases

 

 

26,284

 

 

$

167

 

 

$

46

 

 

$

—

 

 

$

—

 

$

26,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

 

$

7,091

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

$

7,091

 

 Total Commercial

 

 

7,091

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

7,091

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

137

 

 

137

 

Home Equity

 

 

141

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

141

 

Automobile

 

 

1,815

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

1,815

 

Other1

 

 

175

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

175

 

 Total Consumer

 

 

2,131

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

137

 

 

2,268

 

Total Loans and Leases

 

 

9,222

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

137

 

$

9,359

 

 

1.
Comprised of other revolving credit, installment, and lease financing.

 

The following table presents by loan class and year of origination, the gross charge-offs recorded during the three months ended March 31, 2024 and March 31, 2023.

 

(dollars in thousands)

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Total
Loans and
Leases

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

—

 

 

$

282

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

78

 

 

$

360

 

Total Commercial

 

—

 

 

 

282

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

78

 

 

 

360

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Equity

 

—

 

 

 

—

 

 

 

35

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

35

 

Automobile

 

—

 

 

 

264

 

 

 

363

 

 

 

119

 

 

 

54

 

 

 

248

 

 

 

1,048

 

Other1

 

—

 

 

 

668

 

 

 

653

 

 

 

448

 

 

 

117

 

 

 

426

 

 

 

2,312

 

Total Consumer

 

—

 

 

 

932

 

 

 

1,051

 

 

 

567

 

 

 

171

 

 

 

674

 

 

 

3,395

 

Total

$

—

 

 

$

1,214

 

 

$

1,051

 

 

$

567

 

 

$

171

 

 

$

752

 

 

$

3,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Total
Loans and
Leases

 

As of March 31, 2023 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and Industrial

$

—

 

 

$

189

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

72

 

 

$

261

 

Total Commercial

 

—

 

 

 

189

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

72

 

 

 

261

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home Equity

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

50

 

 

 

50

 

Automobile

 

—

 

 

 

314

 

 

 

507

 

 

 

228

 

 

 

191

 

 

 

423

 

 

 

1,663

 

Other1

 

—

 

 

 

820

 

 

 

565

 

 

 

120

 

 

 

395

 

 

 

435

 

 

 

2,335

 

Total Consumer

 

—

 

 

 

1,134

 

 

 

1,072

 

 

 

348

 

 

 

586

 

 

 

908

 

 

 

4,048

 

Total

$

—

 

 

$

1,323

 

 

$

1,072

 

 

$

348

 

 

$

586

 

 

$

980

 

 

$

4,309

 

 

1.
Comprised of other revolving credit, installment, and lease financing.
2.
Certain prior period information has been reclassified to conform to current presentation.

Foreclosure Proceedings

Consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure totaled $4.6 million as of March 31, 2024.