Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Credit Loss [Abstract]

Aging of the Loan Portfolio

As of June 30, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances:
Commercial
Commercial, industrial and other, excluding PPP loans	$	42,882	$	1,374	$	8,952	$	23,720	$	8,446,936	$	8,523,864
Commercial PPP loans	—		—		—		—		3,335,368		3,335,368
Commercial real estate
Construction and development	9,829		—		1,944		17,313		1,310,962		1,340,048
Non-construction	54,728		—		24,536		58,215		6,723,218		6,860,697
Home equity	7,261		—		—		1,296		458,039		466,596
Residential real estate	19,529		—		1,506		4,400		1,401,994		1,427,429
Premium finance receivables
Commercial insurance loans	16,445		35,638		35,967		46,556		3,865,168		3,999,774
Life insurance loans	15		—		6,386		14,604		5,379,797		5,400,802
Consumer and other	427		156		4		281		47,457		48,325
Total loans, net of unearned income	$	151,116	$	37,168	$	79,295	$	166,385	$	30,968,939	$	31,402,903

As of December 31, 2019			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances:(1)
Commercial
Commercial, industrial and other, excluding PPP loans	$	37,224	$	1,855	$	3,275	$	77,324	$	8,166,242	$	8,285,920
Commercial PPP loans	—		—		—		—		—		—
Commercial real estate
Construction and development	2,112		3,514		5,292		48,964		1,223,567		1,283,449
Non-construction	24,001		11,432		26,254		48,603		6,626,537		6,736,827
Home equity	7,363		—		454		3,533		501,716		513,066
Residential real estate	13,797		5,771		3,089		18,041		1,313,523		1,354,221
Premium finance receivables
Commercial insurance loans	20,590		11,517		12,119		18,783		3,379,018		3,442,027
Life insurance loans	590		—		—		32,559		5,041,453		5,074,602
Consumer and other	231		287		40		344		109,276		110,178
Total loans, net of unearned income	$	105,908	$	34,376	$	50,523	$	248,151	$	26,361,332	$	26,800,290

As of June 30, 2019			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances:(1)
Commercial
Commercial, industrial and other, excluding PPP loans	$	47,604	$	1,939	$	5,283	$	16,102	$	8,199,846	$	8,270,774
Commercial PPP loans	—		—		—		—		—		—
Commercial real estate
Construction and development	2,256		—		577		25,929		971,631		1,000,393
Non-construction	18,619		5,124		10,622		47,058		6,194,428		6,275,851
Home equity	8,489		—		321		2,155		516,405		527,370
Residential real estate	14,236		1,867		1,306		1,832		1,098,937		1,118,178
Premium finance receivables
Commercial insurance loans	13,833		6,940		17,977		16,138		3,313,535		3,368,423
Life insurance loans	590		—		18,580		19,673		4,595,635		4,634,478
Consumer and other	220		235		242		227		108,268		109,192
Total loans, net of unearned income	$	105,847	$	16,105	$	54,908	$	129,114	$	24,998,685	$	25,304,659

(1)

Includes PCD loans and, for periods prior to the adoption of ASU 2016-13, PCI loans. PCI loans represented loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings disclosed in comparative periods are based upon contractually required payments. As a result of the adoption of ASU 2016-13, the Company transitioned all previously classified PCI loans to PCD loans effective January 1, 2020.

Loan Portfolio by Credit Quality Indicator

The table below shows the Company’s loan portfolio by credit quality indicator and year of origination at June 30, 2020:

As of June 30, 2020	Year of Origination														Revolving		Total
(In thousands)	2020		2019		2018		2017		2016		Prior		Revolving		to Term		Loans
Loan Balances:
Commercial, industrial and other
Pass	$	1,072,045	$	1,333,365	$	1,070,718	$	749,203	$	349,600	$	549,941	$	2,434,548	$	7,480	$	7,566,900
Special mention	42,463		132,621		64,833		46,902		73,195		22,074		122,136		—		504,224
Substandard accrual	8,334		109,572		76,045		54,875		26,689		37,065		97,278		—		409,858
Substandard nonaccrual/doubtful	1,266		3,135		8,983		6,248		7,596		11,662		3,992		—		42,882
Total commercial, industrial and other	$	1,124,108	$	1,578,693	$	1,220,579	$	857,228	$	457,080	$	620,742	$	2,657,954	$	7,480	$	8,523,864
Commercial PPP
Pass	$	3,335,368	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,335,368
Special mention	—		—		—		—		—		—		—		—		—
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	3,335,368	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,335,368
Construction and development
Pass	$	97,379	$	445,363	$	352,613	$	180,506	$	86,444	$	65,689	$	22,102	$	—	$	1,250,096
Special mention	—		19,198		25,776		—		—		13,214		—		—		58,188
Substandard accrual	—		1,140		10,161		3,403		4,011		3,220		—		—		21,935
Substandard nonaccrual/doubtful	—		—		1,997		3,082		1,072		3,678		—		—		9,829
Total construction and development	$	97,379	$	465,701	$	390,547	$	186,991	$	91,527	$	85,801	$	22,102	$	—	$	1,340,048
Non-construction
Pass	$	578,157	$	1,047,153	$	945,334	$	835,676	$	701,769	$	1,818,599	$	169,035	$	379	$	6,096,102
Special mention	1,914		75,935		82,827		66,962		98,309		164,795		1,573		—		492,315
Substandard accrual	1,376		24,969		17,159		30,774		21,377		121,063		834		—		217,552
Substandard nonaccrual/doubtful	—		1,127		6,193		3,376		8,753		35,279		—		—		54,728
Total non-construction	$	581,447	$	1,149,184	$	1,051,513	$	936,788	$	830,208	$	2,139,736	$	171,442	$	379	$	6,860,697
Home equity
Pass	$	—	$	—	$	47	$	28	$	43	$	7,701	$	422,478	$	—	$	430,297
Special mention	—		—		—		393		83		5,007		8,975		—		14,458
Substandard accrual	—		—		135		—		239		11,084		2,430		692		14,580
Substandard nonaccrual/doubtful	—		57		—		90		240		5,138		1,736		—		7,261
Total home equity	$	—	$	57	$	182	$	511	$	605	$	28,930	$	435,619	$	692	$	466,596
Residential real estate
Pass	$	108,260	$	404,584	$	165,085	$	168,879	$	136,930	$	388,898	$	—	$	—	$	1,372,636
Special mention	54		2,217		2,238		2,811		2,811		9,105		—		—		19,236
Substandard accrual	—		519		1,286		2,563		5,744		5,916		—		—		16,028
Substandard nonaccrual/doubtful	—		338		757		3,611		2,629		12,194		—		—		19,529
Total residential real estate	$	108,314	$	407,658	$	169,366	$	177,864	$	148,114	$	416,113	$	—	$	—	$	1,427,429
Premium finance receivables - commercial
Pass	$	3,347,679	$	579,537	$	8,624	$	404	$	—	$	—	$	—	$	—	$	3,936,244
Special mention	31,769		11,350		3		—		—		—		—		—		43,122
Substandard accrual	431		3,393		139		—		—		—		—		—		3,963
Substandard nonaccrual/doubtful	2,756		11,807		1,878		4		—		—		—		—		16,445
Total premium finance receivables - commercial	$	3,382,635	$	606,087	$	10,644	$	408	$	—	$	—	$	—	$	—	$	3,999,774
Premium finance receivables - life
Pass	$	253,869	$	488,256	$	572,343	$	591,854	$	733,692	$	2,760,183	$	—	$	—	$	5,400,197
Special mention	—		—		—		590		—		—		—		—		590
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		15		—		—		15
Total premium finance receivables - life	$	253,869	$	488,256	$	572,343	$	592,444	$	733,692	$	2,760,198	$	—	$	—	$	5,400,802

Consumer and other
Pass	$	1,279	$	3,351	$	2,351	$	786	$	581	$	20,530	$	18,219	$	—	$	47,097
Special mention	16		30		1		130		1		353		2		—		533
Substandard accrual	15		8		—		—		—		242		3		—		268
Substandard nonaccrual/doubtful	—		14		4		17		—		392		—		—		427
Total consumer and other	$	1,310	$	3,403	$	2,356	$	933	$	582	$	21,517	$	18,224	$	—	$	48,325
Total loans (1)
Pass	$	8,794,036	$	4,301,609	$	3,117,115	$	2,527,336	$	2,009,059	$	5,611,541	$	3,066,382	$	7,859	$	29,434,937
Special mention	76,216		241,351		175,678		117,788		174,399		214,548		132,686		—		1,132,666
Substandard accrual	10,156		139,601		104,925		91,615		58,060		178,590		100,545		692		684,184
Substandard nonaccrual/doubtful	4,022		16,478		19,812		16,428		20,290		68,358		5,728		—		151,116
Total loans	$	8,884,430	$	4,699,039	$	3,417,530	$	2,753,167	$	2,261,808	$	6,073,037	$	3,305,341	$	8,551	$	31,402,903

(1)

Includes $702.7 million of loans with COVID-19 related modifications that migrated from pass as of March 1, 2020 to special mention or substandard accrual as of June 30, 2020. These loans were qualitatively evaluated as a part of the measurement of the allowance for credit losses as of June 30, 2020.

Held-to-Maturity Debt Securities by Credit Quality Indicator

As of June 30, 2020	Year of Origination												Total
(In thousands)	2020		2019		2018		2017		2016		Prior		Balance
Amortized Cost Balances:
U.S. government agencies
1-4 internal grade	$	124,575	$	284,973	$	101,450	$	—	$	—	$	3,406	$	514,404
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	124,575	$	284,973	$	101,450	$	—	$	—	$	3,406	$	514,404
Municipal
1-4 internal grade	$	—	$	162	$	7,611	$	44,073	$	10,200	$	152,080	$	214,126
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	—	$	162	$	7,611	$	44,073	$	10,200	$	152,080	$	214,126
Total held-to-maturity securities													$	728,530
Less: Allowance for credit losses													(65		)
Held-to-maturity securities, net of allowance for credit losses													$	728,465

Components of Allowance for Credit Losses

	June 30,		December 31,		June 30,
(In thousands)	2020		2019		2019
Allowance for loan losses	$	313,510	156,828		$	160,421
Allowance for unfunded lending-related commitments losses	59,599		1,633		1,480
Allowance for loan losses and unfunded lending-related commitments losses	373,109		158,461		161,901
Allowance for held-to-maturity securities losses	65		—		—
Allowance for credit losses	$	373,174	$	158,461	$	161,901

Summary of Activity in the Allowance for Credit Losses

A summary of activity in the allowance for credit losses, specifically for the loan portfolio (i.e. allowance for loan losses and allowance for unfunded commitment losses), for the three and six months ended June 30, 2020 and 2019 is as follows. Periods prior to January 1, 2020 are presented in accordance with accounting rules effective at that time.

Three months ended June 30, 2020				Commercial Real Estate			Home  Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	107,346		$	112,796		$	12,394		$	12,550		$	7,880		$	446		$	253,412
Other adjustments	—			—			—			—			42			—			42
Charge-offs	(5,686		)	(7,224		)	(239		)	(293		)	(3,434		)	(99		)	(16,975		)
Recoveries	112			493			46			30			833			58			1,572
Provision for credit losses	31,825			91,061			(12		)	(372		)	12,271			285			135,058
Allowance for credit losses at period end	$	133,597		$	197,126		$	12,189		$	11,915		$	17,592		$	690		$	373,109
Individually measured	$	12,689		$	5,023		$	264		$	393		$	—		$	114		$	18,483
Collectively measured	120,908			192,103			11,925			11,522			17,592			576			354,626
Loans at period end
Individually measured	$	48,220		$	83,664		$	22,782		$	28,145		$	—		$	554		$	183,365
Collectively measured	11,811,012			8,117,081			443,814			1,144,670			9,400,576			47,771			30,964,924
Loans held at fair value	—			—			—			254,614			—			—			254,614

Three months ended June 30, 2019	Commercial			Commercial Real Estate			Home  Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(In thousands)
Allowance for credit losses
Allowance for credit losses at beginning of period	$	74,638		$	59,260		$	8,627		$	7,630		$	8,219		$	1,248		$	159,622
Other adjustments	—			(11		)	(13		)	(8		)	21			—			(11		)
Charge-offs	(17,380		)	(326		)	(690		)	(287		)	(5,009		)	(136		)	(23,828		)
Recoveries	289			247			68			140			734			60			1,538
Provision for credit losses	17,346			5,580			(4,361		)	671			4,975			369			24,580
Allowance for credit losses at period end	$	74,893		$	64,750		$	3,631		$	8,146		$	8,940		$	1,541		$	161,901
Individually measured	$	10,588		$	3,979		$	209		$	321		$	—		$	109		$	15,206
Collectively measured	63,891			60,717			3,422			7,762			8,940			1,432			146,164
Loans acquired with deteriorated credit quality (1)	414			54			—			63			—			—			531
Loans at period end
Individually measured	$	63,528		$	33,749		$	18,303		$	21,663		$	—		$	271		$	137,514
Collectively measured	8,182,921			7,115,504			509,067			980,167			7,856,344			106,276			24,750,279
Loans acquired with deteriorated credit quality (1)	24,325			126,991			—			10,267			146,557			2,645			310,785
Loans held at fair value	—			—			—			106,081			—			—			106,081

Six months ended June 30, 2020				Commercial Real Estate			Home  Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	64,920		$	68,511		$	3,878		$	9,800		$	9,647		$	1,705		$	158,461
Cumulative effect adjustment from the adoption of ASU 2016-13	9,039			32,064			9,061			3,002			(4,959		)	(863		)	47,344
Other adjustments	—			—			—			—			(31		)	—			(31		)
Charge-offs	(7,839		)	(7,794		)	(1,240		)	(694		)	(6,618		)	(227		)	(24,412		)
Recoveries	495			756			340			90			1,943			100			3,724
Provision for credit losses	66,982			103,589			150			(283		)	17,610			(25		)	188,023
Allowance for credit losses at period end	$	133,597		$	197,126		12,189			11,915			17,592			690			373,109

Six months ended June 30, 2019				Commercial Real Estate			Home  Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(In thousands)	Commercial
Allowance for credit losses at beginning of period	$	67,826		$	61,661		$	8,507		$	7,194		$	7,715		$	1,261		$	154,164
Other adjustments	—			(35		)	(20		)	(15		)	32			—			(38		)
Charge-offs	(17,883		)	(4,060		)	(778		)	(290		)	(7,219		)	(238		)	(30,468		)
Recoveries	607			727			130			169			1,290			116			3,039
Provision for credit losses	24,343			6,457			(4,208		)	1,088			7,122			402			35,204
Allowance for credit losses at period end	$	74,893		$	64,750		$	3,631		$	8,146		$	8,940		$	1,541		$	161,901

(1)

Prior to January 1, 2020, measurement of any allowance for loan losses on PCI loans were offset by the remaining discount related to the acquired pool. As a result of the adoption of ASU 2016-13, PCI loans transitioned to a classification of PCD. Measurement of any allowance for loan losses on PCD loans is no longer offset by the remaining discount.

Summary of the Post-Modification Balance of TDRs and Loans Restructured in TDRs

The following table presents a summary of all loans restructured in TDRs during the twelve months ended June 30, 2020 and 2019, and such loans that were in payment default under the restructured terms during the respective periods below:

(Dollars in thousands)	As of June 30, 2020			Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	22	$	13,989	7	$	4,252	8	$	5,013
Commercial real estate
Non-construction	17	23,578		6	6,181		6	6,181
Residential real estate and other	144	15,606		12	2,507		13	2,818
Total loans	183	$	53,173	25	$	12,940	27	$	14,012

(Dollars in thousands)	As of June 30, 2019			Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	17	$	22,067	7	$	12,220	7	$	12,220
Commercial real estate
Non-construction	5	1,945		3	984		3	984
Residential real estate and other	90	17,842		7	1,100		8	1,229
Total loans	112	$	41,854	17	$	14,304	18	$	14,433

(1) Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date indicated.

(2) TDRs considered to be in payment default are over 30 days past-due subsequent to the restructuring.

(3)

Balances represent the recorded investment in the loan at the time of the restructuring.

The tables below present a summary of the post-modification balance of loans restructured during the three and six months ended June 30, 2020 and 2019, respectively, which represent TDRs:

Three months ended June 30, 2020 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	7	$	3,431	5	$	443	—	$	—	4	$	3,257	—	$	—
Commercial real estate
Non-construction	1	2,082		—	—		—	—		1	2,082		—	—
Residential real estate and other	21	3,504		21	3,505		10	1,590		—	—		—	—
Total loans	29	$	9,017	26	$	3,948	10	$	1,590	5	$	5,339	—	$	—

Three months ended June 30, 2019 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	5	$	2,455	5	$	2,455	1	$	550	2	$	1,494	—	$	—
Commercial real estate
Non-construction	3	1,273		3	1,273		—	—		—	—		—	—
Residential real estate and other	22	5,761		22	5,761		9	1,942		—	—		—	—
Total loans	30	$	9,489	30	$	9,489	10	$	2,492	2	$	1,494	—	$	—

(1) TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2)

Balances represent the recorded investment in the loan at the time of the restructuring.

Six months ended June 30, 2020 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	12	$	9,033	8	$	4,759	—	$	—	4	$	3,257	1	$	432
Commercial real estate
Non-construction	14	18,135		11	13,511		3	921		6	5,545		—	—
Residential real estate and other	41	5,646		33	5,395		15	2,376		—	—		—	—
Total loans	67	$	32,814	52	$	23,665	18	$	3,297	10	$	8,802	1	$	432

Six months ended June 30, 2019 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	14	$	21,385	7	$	2,963	1	$	550	9	$	19,916	—	$	—
Commercial real estate
Non-construction	4	1,575		3	1,273		—	—		1	302		—	—
Residential real estate and other	42	10,247		42	10,247		15	3,489		—	—		—	—
Total loans	60	$	33,207	52	$	14,483	16	$	4,039	10	$	20,218	—	$	—

(1) TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2) Balances represent the recorded investment in the loan at the time of the restructuring.