Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020



As of September 30, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
Loan Balances:
Commercial
Commercial, industrial and other, excluding PPP loans	$	42,036	$	—	$	2,168	$	48,271	$	8,805,511	$	8,897,986
Commercial PPP loans	—		—		—		—		3,379,013		3,379,013
Commercial real estate
Construction and development	10,980		—		—		12,150		1,310,019		1,333,149
Non-construction	57,835		—		8,299		41,312		6,982,547		7,089,993
Home equity	6,329		—		70		1,148		438,727		446,274
Residential real estate	22,069		—		814		2,443		1,359,484		1,384,810
Premium finance receivables
Commercial insurance loans	21,080		12,177		7,495		18,839		4,000,553		4,060,144
Life insurance loans	—		—		30,791		61,893		5,396,148		5,488,832
Consumer and other	422		175		273		493		53,991		55,354
Total loans, net of unearned income	$	160,751	$	12,352	$	49,910	$	186,549	$	31,725,993	$	32,135,555



As of December 31, 2019			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		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 September 30, 2019			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
Loan Balances:⁽¹⁾
Commercial
Commercial, industrial and other, excluding PPP loans	$	43,931	$	382	$	12,860	$	51,487	$	8,086,942	$	8,195,602
Commercial PPP loans	—		—		—		—		—		—
Commercial real estate
Construction and development	2,024		576		88		7,050		1,032,473		1,042,211
Non-construction	19,533		4,416		9,541		26,048		6,346,918		6,406,456
Home equity	7,920		—		95		3,100		501,188		512,303
Residential real estate	13,447		3,244		1,868		1,433		1,198,674		1,218,666
Premium finance receivables
Commercial insurance loans	15,950		10,612		8,853		16,972		3,397,563		3,449,950
Life insurance loans	590		—		17,753		27,795		4,749,358		4,795,496
Consumer and other	224		117		55		272		88,819		89,487
Total loans, net of unearned income	$	103,619	$	19,347	$	51,113	$	134,157	$	25,401,935	$	25,710,171

(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 September 30, 2020:



As of September 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	$	1,380,874	$	1,246,209	$	978,844	$	688,865	$	349,659	$	554,865	$	2,755,857	$	17,970	$	7,973,143
Special mention	38,670		115,731		75,859		69,144		53,537		21,993		128,730		138		503,802
Substandard accrual	15,054		134,060		74,803		43,066		13,169		31,280		66,437		1,136		379,005
Substandard nonaccrual/doubtful	1,254		1,027		4,483		6,143		7,517		12,285		9,045		282		42,036
Total commercial, industrial and other	$	1,435,852	$	1,497,027	$	1,133,989	$	807,218	$	423,882	$	620,423	$	2,960,069	$	19,526	$	8,897,986
Commercial PPP
Pass	$	3,379,013	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,379,013
Special mention	—		—		—		—		—		—		—		—		—
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	3,379,013	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3,379,013
Construction and development
Pass	$	176,894	$	454,031	$	255,974	$	157,559	$	82,421	$	63,379	$	22,358	$	—	$	1,212,616
Special mention	—		20,058		48,593		13,842		2,741		6,862		—		—		92,096
Substandard accrual	—		1,194		9,848		3,562		—		2,853		—		—		17,457
Substandard nonaccrual/doubtful	—		—		3,312		2,917		1,072		3,679		—		—		10,980
Total construction and development	$	176,894	$	475,283	$	317,727	$	177,880	$	86,234	$	76,773	$	22,358	$	—	$	1,333,149
Non-construction
Pass	$	940,359	$	1,024,971	$	957,701	$	797,355	$	684,954	$	1,736,025	$	180,231	$	7,007	$	6,328,603
Special mention	2,379		88,103		78,047		69,884		91,313		164,465		737		2,765		497,693
Substandard accrual	1,135		19,448		26,611		24,928		20,523		112,350		867		—		205,862
Substandard nonaccrual/doubtful	—		1,107		6,031		3,602		8,138		38,957		—		—		57,835
Total non-construction	$	943,873	$	1,133,629	$	1,068,390	$	895,769	$	804,928	$	2,051,797	$	181,835	$	9,772	$	7,089,993
Home equity
Pass	$	47	$	—	$	47	$	28	$	37	$	6,012	$	406,565	$	171	$	412,907
Special mention	—		—		—		393		83		3,615		7,852		565		12,508
Substandard accrual	—		—		134		—		248		12,037		1,118		993		14,530
Substandard nonaccrual/doubtful	—		56		190		90		227		4,113		1,529		124		6,329
Total home equity	$	47	$	56	$	371	$	511	$	595	$	25,777	$	417,064	$	1,853	$	446,274
Residential real estate
Pass	$	171,033	$	367,779	$	142,761	$	149,854	$	122,718	$	373,499	$	—	$	—	$	1,327,644
Special mention	314		1,570		2,686		2,770		2,440		8,558		—		—		18,338
Substandard accrual	1,425		516		1,359		2,537		5,422		5,500		—		—		16,759
Substandard nonaccrual/doubtful	—		962		1,892		3,618		3,347		12,250		—		—		22,069
Total residential real estate	$	172,772	$	370,827	$	148,698	$	158,779	$	133,927	$	399,807	$	—	$	—	$	1,384,810
Premium finance receivables - commercial
Pass	$	3,898,133	$	103,562	$	6,077	$	116	$	—	$	—	$	—	$	—	$	4,007,888
Special mention	25,295		1,674		4		—		—		—		—		—		26,973
Substandard accrual	2,291		1,803		109		—		—		—		—		—		4,203
Substandard nonaccrual/doubtful	9,435		11,057		587		1		—		—		—		—		21,080
Total premium finance receivables - commercial	$	3,935,154	$	118,096	$	6,777	$	117	$	—	$	—	$	—	$	—	$	4,060,144
Premium finance receivables - life
Pass	$	408,171	$	533,284	$	565,371	$	616,055	$	733,758	$	2,631,613	$	—	$	—	$	5,488,252
Special mention	—		—		—		580		—		—		—		—		580
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	408,171	$	533,284	$	565,371	$	616,635	$	733,758	$	2,631,613	$	—	$	—	$	5,488,832



Consumer and other
Pass	$	1,781	$	2,618	$	2,149	$	663	$	531	$	26,768	$	19,847	$	—	$	54,357
Special mention	24		26		—		127		—		147		2		—		326
Substandard accrual	10		6		—		—		—		230		3		—		249
Substandard nonaccrual/doubtful	1		12		3		17		—		389		—		—		422
Total consumer and other	$	1,816	$	2,662	$	2,152	$	807	$	531	$	27,534	$	19,852	$	—	$	55,354
Total loans ⁽¹⁾
Pass	$	10,356,305	$	3,732,454	$	2,908,924	$	2,410,495	$	1,974,078	$	5,392,161	$	3,384,858	$	25,148	$	30,184,423
Special mention	66,682		227,162		205,189		156,740		150,114		205,640		137,321		3,468		1,152,316
Substandard accrual	19,915		157,027		112,864		74,093		39,362		164,250		68,425		2,129		638,065
Substandard nonaccrual/doubtful	10,690		14,221		16,498		16,388		20,301		71,673		10,574		406		160,751
Total loans	$	10,453,592	$	4,130,864	$	3,243,475	$	2,657,716	$	2,183,855	$	5,833,724	$	3,601,178	$	31,151	$	32,135,555

(1)

Includes $236.3 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 September 30, 2020. These loans were qualitatively evaluated as a part of the measurement of the allowance for credit losses as of September 30, 2020.

Held-to-Maturity Debt Securities by Credit Quality Indicator



As of September 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	$	119,995	$	101,450	$	—	$	—	$	3,395	$	349,415
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	124,575	$	119,995	$	101,450	$	—	$	—	$	3,395	$	349,415
Municipal
1-4 internal grade	$	—	$	162	$	7,590	$	43,863	$	10,172	$	149,128	$	210,915
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	—	$	162	$	7,590	$	43,863	$	10,172	$	149,128	$	210,915
Total held-to-maturity securities													$	560,330
Less: Allowance for credit losses													(63		)
Held-to-maturity securities, net of allowance for credit losses													$	560,267

Components of Allowance for Credit Losses



	September 30,		December 31,		September 30,
(In thousands)	2020		2019		2019
Allowance for loan losses	$	325,959	$	156,828	$	161,763
Allowance for unfunded lending-related commitments losses	62,949		1,633		1,510
Allowance for loan losses and unfunded lending-related commitments losses	388,908		158,461		163,273
Allowance for held-to-maturity securities losses	63		—		—
Allowance for credit losses	$	388,971	$	158,461	$	163,273

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 nine months ended September 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 September 30, 2020				Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(In thousands)	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
Allowance for credit losses at beginning of period	$	133,597		$	197,126		$	12,189		$	11,915		$	17,592		$	690		$	373,109
Other adjustments	—			—			—			—			55			—			55
Charge-offs	(5,270		)	(1,529		)	(138		)	(83		)	(4,640		)	(103		)	(11,763		)
Recoveries	428			175			111			25			1,720			20			2,479
Provision for credit losses	(15,861		)	38,238			(485		)	(67		)	3,129			74			25,028
Allowance for credit losses at period end	$	112,894		$	234,010		$	11,677		$	11,790		$	17,856		$	681		$	388,908
Individually measured	$	10,642		$	4,741		$	196		$	680		$	—		$	108		$	16,367
Collectively measured	102,252			229,269			11,481			11,110			17,856			573			372,541
Loans at period end
Individually measured	$	49,900		$	79,661		$	22,962		$	30,596		$	—		$	548		$	183,667
Collectively measured	12,227,099			8,343,481			423,312			1,100,699			9,548,976			54,806			31,698,373
Loans held at fair value	—			—			—			253,515			—			—			253,515



Three months ended September 30, 2019	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(In thousands)	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
Allowance for credit losses at beginning of period	$	74,893		$	64,750		$	3,631		$	8,146		$	8,940		$	1,541		$	161,901
Other adjustments	—			—			—			—			(13		)	—			(13		)
Charge-offs	(6,775		)	(809		)	(1,594		)	(25		)	(1,866		)	(117		)	(11,186		)
Recoveries	367			385			183			203			563			36			1,737
Provision for credit losses	4,642			2,122			1,500			1,087			1,742			(259		)	10,834
Allowance for credit losses at period end	$	73,127		$	66,448		$	3,720		$	9,411		$	9,366		$	1,201		$	163,273
Individually measured	$	10,606		$	3,600		$	313		$	315		$	—		$	106		$	14,940
Collectively measured	62,160			62,795			3,407			9,037			9,366			1,095			147,860
Loans acquired with deteriorated credit quality ⁽¹⁾	361			53			—			59			—			—			473
Loans at period end
Individually measured	$	58,030		$	32,155		$	18,702		$	21,889		$	—		$	274		$	131,050
Collectively measured	8,122,040			7,299,229			493,601			1,070,795			8,104,538			86,887			25,177,090
Loans acquired with deteriorated credit quality ⁽¹⁾	15,532			117,283			—			9,960			140,908			2,326			286,009
Loans held at fair value	—			—			—			116,022			—			—			116,022


(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.



Nine months ended September 30, 2020				Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(In thousands)	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
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	—			—			—			—			24			—			24
Charge-offs	(13,109		)	(9,323		)	(1,378		)	(777		)	(11,258		)	(330		)	(36,175		)
Recoveries	924			931			451			115			3,663			119			6,203
Provision for credit losses	51,120			141,827			(335		)	(350		)	20,739			50			213,051
Allowance for credit losses at period end	$	112,894		$	234,010		$	11,677		$	11,790		$	17,856		$	681		$	388,908



Nine months ended September 30, 2019				Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(In thousands)	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
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		)	19			—			(51		)
Charge-offs	(24,658		)	(4,869		)	(2,372		)	(315		)	(9,085		)	(355		)	(41,654		)
Recoveries	974			1,112			313			372			1,853			152			4,776
Provision for credit losses	28,985			8,579			(2,708		)	2,175			8,864			143			46,038
Allowance for credit losses at period end	$	73,127		$	66,448		$	3,720		$	9,411		$	9,366		$	1,201		$	163,273

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 September 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 September 30, 2020			Three Months Ended September 30, 2020			Nine Months Ended September 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	$	11,476	7	$	4,607	7	$	4,607
Commercial real estate
Non-construction	18	19,432		13	14,595		13	14,595
Residential real estate and other	112	16,265		11	2,131		14	2,582
Total loans	152	$	47,173	31	$	21,333	34	$	21,784



(Dollars in thousands)	As of September 30, 2019			Three Months Ended September 30, 2019			Nine Months Ended September 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	20	$	25,041	5	$	1,949	8	$	13,554
Commercial real estate
Non-construction	7	7,137		2	682		3	984
Residential real estate and other	130	19,041		11	3,914		12	4,154
Total loans	157	$	51,219	18	$	6,545	23	$	18,692


(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 nine months ended September 30, 2020 and 2019, respectively, which represent TDRs:



Three months ended September 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	5	$	1,013	5	$	1,013	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	3	1,045		3	1,045		—	—		1	207		—	—
Residential real estate and other	28	5,538		21	5,281		13	1,829		1	190		—	—
Total loans	36	$	7,596	29	$	7,339	13	$	1,829	2	$	397	—	$	—



Three months ended September 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	$	3,526	2	$	2,721	—	$	—	3	$	807	—	$	—
Commercial real estate
Non-construction	3	5,192		2	5,192		—	—		2	5,191		—	—
Residential real estate and other	60	4,879		59	4,568		9	1,048		1	311		—	—
Total loans	68	$	13,597	63	$	12,481	9	$	1,048	6	$	6,309	—	$	—


(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.



Nine months ended September 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⁾
Nine months ended September 30, 2020 (Dollars in thousands)	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	17	$	10,046	13	$	5,772	—	$	—	4	$	3,257	1	$	432
Commercial real estate
Non-construction	17	19,180		14	14,556		3	921		7	5,752		—	—
Residential real estate and other	69	11,184		54	10,676		28	4,205		1	190		—	—
Total loans	103	$	40,410	81	$	31,004	31	$	5,126	12	$	9,199	1	$	432



Nine months ended September 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⁾
Nine months ended September 30, 2019 (Dollars in thousands)	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	19	$	24,911	9	$	5,684	1	$	550	12	$	20,723	—	$	—
Commercial real estate
Non-construction	6	6,767		5	6,465		—	—		3	5,493		—	—
Residential real estate and other	102	15,126		101	14,815		24	4,537		1	311		—	—
Total loans	127	$	46,804	115	$	26,964	25	$	5,087	16	$	26,527	—	$	—


(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.