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LOANS AND LEASES (Tables)
6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Financial Receivable Credit Quality Indicators
The following table sets forth the Company's loan portfolio at June 30, 2023 by risk attribute and origination date as well as current period gross chargeoffs:
(Dollars in thousands)20232022202120202019PriorTerm TotalRevolvingTotal
Commercial & industrial
Pass$833,285 $268,639 $495,831 $319,741 $186,836 $335,945 $2,440,277 $884,609 $3,324,886 
Special mention10,798 1,082 1,924 3,676 3,314 1,831 22,625 19,277 41,902 
Substandard2,825 18,645 13,489 9,947 6,232 51,138 15,236 66,374 
Doubtful
Total$846,908 $288,366 $511,244 $333,364 $196,382 $337,776 $2,514,040 $919,122 $3,433,162 
YTD Gross chargeoffs$$109 $2,001 $99 $19 $874 $3,102 $$3,102 
Lease financing
Pass$147,479 $26,870 $21,925 $10,690 $8,092 $138,416 $353,472 $$353,472 
Special mention01,413001,08302,49602,496
Substandard4,68570014104,83304,833
Total$152,164 $28,290 $21,925 $10,690 $9,316 $138,416 $360,801 $$360,801 
YTD Gross chargeoffs$$$103 $$$$103 $$103 
Construction real estate
Pass$118,653 $111,676 $192,647 $79,544 $5,675 $9,403 $517,598 $18,866 $536,464 
Special mention
Substandard
Total$118,653 $111,676 $192,647 $79,544 $5,675 $9,403 $517,598 $18,866 $536,464 
YTD Gross chargeoffs$$$$$$$$$
Commercial real estate - investor
Pass$648,427 $674,753 $435,322 $279,742 $690,004 $224,645 $2,952,893 $19,801 $2,972,694 
Special mention8,960 45,506 16,021 17,073 53 87,613 241 87,854 
Substandard27,805 6,524 3,959 38,288 38,288 
Doubtful
(Dollars in thousands)20232022202120202019PriorTerm TotalRevolvingTotal
Total$657,387 $748,064 $451,343 $303,339 $694,016 $224,645 $3,078,794 $20,042 $3,098,836 
YTD Gross chargeoffs$0 $$$$$$$$
Commercial real estate - owner
Pass$169,544 $282,338 $143,543 $152,263 $94,983 $63,126 $905,797 $8,191 $913,988 
Special mention546 14,717 1,169 1,120 5,356 22,908 22,908 
Substandard9,864 416 840 958 12,078 650 12,728 
Total$170,090 $306,919 $145,128 $154,223 $101,297 $63,126 $940,783 $8,841 $949,624 
YTD Gross chargeoffs$$$$2,643 $$71 $2,714 $$2,714 
Residential real estate
Performing$345,978 $232,432 $267,097 $195,475 $105,808 $59,786 $1,206,576 $$1,206,576 
Nonperforming969 7,132 1,659 2,451 2,620 77 14,908 14,908 
Total$346,947 $239,564 $268,756 $197,926 $108,428 $59,863 $1,221,484 $$1,221,484 
YTD Gross chargeoffs$$$$$19 $$20 $$20 
Home equity
Performing$24,616 $27,441 $30,996 $35,778 $10,845 $11,754 $141,430 $581,946 $723,376 
Nonperforming54 370 192 62 683 4,652 5,335 
Total$24,670 $27,811 $31,188 $35,840 $10,845 $11,759 $142,113 $586,598 $728,711 
YTD Gross chargeoffs$$$$$$105 $112 $$112 
Installment
Performing$49,396 $4,693 $30,774 $5,355 $2,601 $12,317 $105,136 $58,340 $163,476 
Nonperforming648 31 654 11 38 1,390 350 1,740 
Total$50,044 $4,724 $31,428 $5,363 $2,612 $12,355 $106,526 $58,690 $165,216 
YTD Gross chargeoffs$$1,516 $1,394 $111 $$13 $3,039 $$3,039 
Credit cards
Performing$$$$$$$$55,731 $55,731 
Nonperforming180 180 
Total$$$$$$$$55,911 $55,911 
YTD Gross chargeoffs$$$$$$$$491 $491 
The following table sets forth the Company's loan portfolio at December 31, 2022 by risk attribute and origination date:
(Dollars in thousands)20222021202020192018PriorTerm TotalRevolvingTotal
Commercial & industrial
Pass$879,836 $561,890 $348,123 $209,758 $112,282 $206,656 $2,318,545 $971,080 $3,289,625 
Special mention2,740 13,821 4,125 14,047 8,523 5,544 48,800 18,055 66,855 
Substandard2,335 5,176 11,886 8,016 3,331 13,812 44,556 9,236 53,792 
Total$884,911 $580,887 $364,134 $231,821 $124,136 $226,012 $2,411,901 $998,371 $3,410,272 
Lease financing
Pass$167,035 $25,638 $13,705 $12,797 $9,402 $2,930 $231,507 $$231,507 
Special mention007000070070 
Substandard4,363001641194,54704,547
Total$171,398 $25,638 $13,775 $12,961 $9,413 $2,939 $236,124 $$236,124 
Construction real estate
Pass$89,116 $276,639 $96,823 $4,902 $390 $353 $468,223 $23,266 $491,489 
Special mention14,395 6,166 20,561 20,561 
Substandard
Total$89,116 $291,034 $96,823 $4,902 $6,556 $353 $488,784 $23,266 $512,050 
Commercial real estate - investor
Pass$643,174 $470,085 $301,510 $719,699 $300,772 $508,639 $2,943,879 $26,153 $2,970,032 
Special mention13,090 23,111 9,297 26,079 13,804 85,381 861 86,242 
Substandard6,950 4,025 17,178 9,631 37,790 37,790 
Total$643,174 $490,125 $324,627 $733,021 $344,029 $532,074 $3,067,050 $27,014 $3,094,064 
Commercial real estate - owner
Pass$165,411 $155,041 $170,587 $101,137 $112,063 $211,377 $915,616 $11,125 $926,741 
Special mention1,479 14,040 15,519 15,519 
Substandard525 844 5,114 3,501 6,451 16,435 16,435 
Doubtful
Total$165,411 $155,566 $171,431 $107,730 $115,564 $231,868 $947,570 $11,125 $958,695 
Residential real estate
Performing$320,676 $274,816 $205,948 $110,745 $51,583 $114,642 $1,078,410 $$1,078,410 
Nonperforming414 1,615 1,286 2,554 1,755 6,231 13,855 13,855 
Total$321,090 $276,431 $207,234 $113,299 $53,338 $120,873 $1,092,265 $$1,092,265 
Home equity
Performing$26,411 $33,414 $38,226 $11,733 $8,051 $24,985 $142,820 $585,712 $728,532 
Nonperforming136 298 78 104 430 1,051 4,208 5,259 
Total$26,416 $33,550 $38,524 $11,811 $8,155 $25,415 $143,871 $589,920 $733,791 
Installment
Performing$100,256 $38,694 $7,244 $3,915 $2,861 $3,242 $156,212 $51,854 $208,066 
Nonperforming650 794 18 20 42 1,530 299 1,829 
Total$100,906 $39,488 $7,262 $3,921 $2,881 $3,284 $157,742 $52,153 $209,895 
Credit cards
Performing$$$$$$$$51,287 $51,287 
Nonperforming528 528 
Total$$$$$$$$51,815 $51,815 
Grand Total$2,402,422 $1,892,719 $1,223,810 $1,219,466 $664,072 $1,142,818 $8,545,307 $1,753,664 $10,298,971 
Loan Delinquency, including Nonaccrual Loans
Loan delinquency, including loans classified as nonaccrual, was as follows:
 As of June 30, 2023
(Dollars in thousands)30 – 59
days
past due
60 – 89
days
past due
> 89 days
past due
Total
past
due
CurrentTotal> 89 days
past due
and still
accruing
Loans       
Commercial & industrial$2,216 $6,849 $3,285 $12,350 $3,420,812 $3,433,162 $
Lease financing4,751 2,840 1,453 9,044 351,757 360,801 693 
Construction real estate536,464 536,464 
Commercial real estate-investor11 6,524 6,535 3,092,301 3,098,836 
Commercial real estate-owner197 24 5,258 5,479 944,145 949,624 
Residential real estate4,389 2,111 2,049 8,549 1,212,935 1,221,484 
Home equity1,715 1,152 1,768 4,635 724,076 728,711 
Installment746 536 340 1,622 163,594 165,216 
Credit card316 206 182 704 55,207 55,911 180 
Total$14,341 $13,718 $20,859 $48,918 $10,501,291 $10,550,209 $873 

 As of December 31, 2022
(Dollars in thousands)30 – 59
days
past due
60 – 89
days
past due
> 89 days
past due
Total
past
due
CurrentTotal> 89 days
past due
and still
accruing
Loans       
Commercial & industrial$5,375 $72 $501 $5,948 $3,404,324 $3,410,272 $
Lease financing5,212 1,052 843 7,107 229,017 236,124 742 
Construction real estate512,050 512,050 
Commercial real estate-investor3,094,064 3,094,064 
Commercial real estate-owner26 5,216 44 5,286 953,409 958,695 
Residential real estate4,254 2,074 3,260 9,588 1,082,677 1,092,265 
Home equity1,725 729 1,209 3,663 730,128 733,791 
Installment874 490 414 1,778 208,117 209,895 
Credit card261 150 116 527 51,288 51,815 115 
Total$17,727 $9,783 $6,387 $33,897 $10,265,074 $10,298,971 $857 
Schedule of Amortized Cost Basis and Financial Effect of Loan Modifications to Borrowers Experiencing Financial Difficulty
The following table provides the amortized cost basis of FDM as of June 30, 2023 by class of loan and type of modification:
June 30, 2023
(Dollars in thousands)Principal forgivenessPayment delayTerm extensionInterest rate reductionCombination: Term extension and interest rate reductionTotalPercent of total class of loans
Commercial & industrial$$$4,805 $$$4,805 0.14 %
Residential real estate1,028 102 57 1,187 0.10 %
Home equity169 15 1840.03 %
Total$$1,028 $5,076 $$72 $6,176 0.06 %

The following table provides the financial effect of FDM as of June 30, 2023:
June 30, 2023
(Dollars in thousands)Principal forgivenessWeighted average interest rate reductionWeighted average term extension
Residential real estate$2.00 %8.3 years
Home equity0.31 %22.6 years
Total$1.65 %11.2 years
Financing Modifications Modifications Payment Status
The Company closely monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following table provides the performance of loans that have been modified since the January 1, 2023 adoption date of ASU 2022-02:
Payment status as of
June 30, 2023
(Dollars in thousands)Current30 – 59 days past due60 – 89 days past due> 89 days past due
Commercial & industrial$4,805 $$$
Residential real estate970 217 
Home equity184 
Total$5,959 $$217 $
Financing Receivable, Nonaccrual The following table provides information on nonperforming loans:
June 30, 2023December 31, 2022
(Dollars in thousands)Nonaccrual loans with a related ACLNonaccrual loans with no related ACLTotal nonaccrualNonaccrual loans with a related ACLNonaccrual loans with no related ACLTotal nonaccrual
Nonaccrual loans (1)
  
Commercial & industrial$13,170 $8,338 $21,508 $6,692 $1,550 $8,242 
Lease financing4,685 148 4,833 178 178 
Construction real estate
Commercial real estate11,876 11,876 5,216 570 5,786 
Residential real estate11,697 11,697 10,691 10,691 
Home equity3,239 3,239 3,123 3,123 
Installment568 568 603 603 
Total nonaccrual loans$17,855 $35,866 $53,721 $11,908 $16,715 $28,623 
(1) Nonaccrual loans include nonaccrual TDR of $10.0 million as of December 31, 2022.

Three months endedSix months ended
June 30,June 30,
(Dollars in thousands)2023202220232022
Interest income effect on nonperforming loans 
Gross amount of interest that would have been recorded under original terms$1,285 $815 $2,001 $1,588 
Interest included in income
Nonaccrual loans284 268 592 558 
Troubled debt restructurings111 162 
Total interest included in income284 379 592 720 
Net impact on interest income$1,001 $436 $1,409 $868 
Schedule of Collateral Dependent Loans The following table presents the amortized cost basis of collateral dependent loans by class of loan.
June 30, 2023
Type of Collateral
(Dollar in thousands)Business
assets
Commercial real estateEquipmentLandResidential real estateOtherTotal
Class of loan
Commercial & industrial$11,158 $$10,139 $$$211 $21,508 
Lease financing04,833 4,833 
Commercial real estate-investor06,524 13 6,537 
Commercial real estate-owner03,413 1,894 32 5,339 
Residential real estate011,697 11,697 
Home equity00003,239 3,239 
Installment0000568 568 
Total$11,158 $9,937 $16,866 $32 $14,949 $779 $53,721 
December 31, 2022
Type of Collateral
(Dollar in thousands)Business
assets
Commercial real estateEquipmentLandResidential real estateOtherTotal
Class of loan
Commercial & industrial$8,205 $$$$$37 $8,242 
Lease financing0178 178 
Commercial real estate-investor0353 22 375 
Commercial real estate-owner03,399 1,893 119 5,411 
Residential real estate010,691 10,691 
Home equity00003,123 3,123 
Installment0000603 603 
Total$8,205 $3,752 $2,071 $119 $13,836 $640 $28,623 
Components of lease investments
The components of the Company's net investments in direct financing and sales-type leases, which are included in Lease financing on the Consolidated Balance Sheets are as follows:
(Dollar in thousands)June 30, 2023December 31, 2022
Direct financing leases
Lease receivables$27,037 $35,081 
Unguaranteed residual values13,535 16,058 
Sales-type leases
Lease receivables318,510 184,985 
Unguaranteed residual values1,719 
Total net investment in direct financing and sales-type leases$360,801 $236,124 
Sales-type and Direct Financing Leases, Lease Receivable, Maturity
The remaining maturities of lease receivables were as follows:
(Dollars in thousands)Direct financing and Sales-type
Remainder of 2023$37,262 
202471,228 
202564,960 
202661,894 
202769,256 
Thereafter86,797 
Total lease payments391,397 
Less: unearned interest income(45,850)
Net lease receivables$345,547 
Changes in Other Real Estate Owned
Changes in OREO were as follows:
Three months endedSix months ended
 June 30,June 30,
(Dollars in thousands)2023202220232022
Balance at beginning of period$191 $72 $191 $98 
Additions
Commercial & industrial
Residential real estate319 64 319 136 
Total additions319 64 319 136 
Disposals  
Commercial & industrial(98)
Residential real estate(85)(72)(85)(72)
Total disposals(85)(72)(85)(170)
Valuation adjustment  
Commercial & industrial
Residential real estate(144)(42)(144)(42)
Total valuation adjustment(144)(42)(144)(42)
Balance at end of period$281 $22 $281 $22