Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2021


As of March 31, 2021			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial






Commercial, industrial and other, excluding PPP loans	$	22,459	$	—	$	13,292	$	35,535	$	9,343,939	$	9,415,225
Commercial PPP loans	—		—		—		6		3,292,976		3,292,982
Commercial real estate
Construction and development	2,673		—		499		23,967		1,326,185		1,353,324
Non-construction	31,707		—		7,657		46,201		7,105,890		7,191,455







Home equity	5,536		—		492		780		383,445		390,253
Residential real estate	21,553		—		944		13,768		1,385,708		1,421,973
Premium finance receivables
Commercial insurance loans	9,690		4,592		5,113		16,552		3,922,596		3,958,543
Life insurance loans	—		191		—		14,821		6,096,483		6,111,495

Consumer and other	497		161		8		74		35,243		35,983
Total loans, net of unearned income	$	94,115	$	4,944	$	28,005	$	151,704	$	32,892,465	$	33,171,233


As of December 31, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial






Commercial, industrial and other, excluding PPP loans	$	21,743	$	307	$	6,900	$	44,345	$	9,166,751	$	9,240,046
Commercial PPP loans	—		—		—		36		2,715,885		2,715,921
Commercial real estate
Construction and development	5,633		—		—		5,344		1,360,825		1,371,802
Non-construction	40,474		—		5,178		26,772		7,049,906		7,122,330







Home equity	6,529		—		47		637		418,050		425,263
Residential real estate	26,071		—		1,635		12,584		1,219,308		1,259,598
Premium finance receivables
Commercial insurance loans	13,264		12,792		6,798		18,809		4,002,826		4,054,489
Life insurance loans	—		—		21,003		30,465		5,805,968		5,857,436

Consumer and other	436		264		24		136		31,328		32,188
Total loans, net of unearned income	$	114,150	$	13,363	$	41,585	$	139,128	$	31,770,847	$	32,079,073


As of March 31, 2020			90+ days and still accruing		60-89 days past due		30-59 days past due
(In thousands)	Nonaccrual								Current		Total Loans
Loan Balances (includes PCD):
Commercial






Commercial, industrial and other, excluding PPP loans	$	49,916	$	1,241	$	8,873	$	86,129	$	8,879,727	$	9,025,886
Commercial PPP loans	—		—		—		—		—		—
Commercial real estate
Construction and development	7,422		147		1,859		16,938		1,274,987		1,301,353
Non-construction	55,408		369		8,353		58,130		6,761,918		6,884,178







Home equity	7,243		—		214		2,096		485,102		494,655
Residential real estate	18,965		605		345		28,983		1,328,491		1,377,389
Premium finance receivables
Commercial insurance loans	21,058		16,505		10,327		32,811		3,384,354		3,465,055
Life insurance loans	—		—		2,403		37,374		5,181,862		5,221,639

Consumer and other	403		78		625		207		35,853		37,166
Total loans, net of unearned income	$	160,415	$	18,945	$	32,999	$	262,668	$	27,332,294	$	27,807,321

Loan Portfolio by Credit Quality Indicator

The table below shows the Company’s loan portfolio by credit quality indicator and year of origination at March 31, 2021:


As of March 31, 2021	Year of Origination														Revolving		Total
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving		to Term		Loans
Loan Balances:
Commercial, industrial and other
Pass	$	574,195	$	1,951,426	$	1,158,699	$	840,181	$	611,479	$	742,116	$	2,908,239	$	4,925	$	8,791,260
Special mention	965		27,786		83,315		38,930		33,116		24,760		86,729		36		295,637
Substandard accrual	22,738		19,675		65,902		71,312		25,052		61,313		39,766		111		305,869
Substandard nonaccrual/doubtful	—		1,887		1,770		2,117		2,078		14,074		533		—		22,459
Total commercial, industrial and other	$	597,898	$	2,000,774	$	1,309,686	$	952,540	$	671,725	$	842,263	$	3,035,267	$	5,072	$	9,415,225
Commercial PPP
Pass	$	1,242,766	$	2,049,342	$	—	$	—	$	—	$	—	$	—	$	—	$	3,292,108
Special mention	874		—		—		—		—		—		—		—		874
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	1,243,640	$	2,049,342	$	—	$	—	$	—	$	—	$	—	$	—	$	3,292,982
Construction and development
Pass	$	40,266	$	346,452	$	433,184	$	196,502	$	89,377	$	109,596	$	29,747	$	—	$	1,245,124
Special mention	282		11,935		16,864		21,075		24,465		4,068		—		—		78,689
Substandard accrual	—		—		1,207		21,872		2,929		678		152		—		26,838
Substandard nonaccrual/doubtful	—		—		—		1,571		—		1,102		—		—		2,673
Total construction and development	$	40,548	$	358,387	$	451,255	$	241,020	$	116,771	$	115,444	$	29,899	$	—	$	1,353,324
Non-construction
Pass	$	249,241	$	1,295,535	$	1,030,111	$	816,725	$	772,702	$	2,189,960	$	184,304	$	244	$	6,538,822
Special mention	3,875		9,905		65,413		66,860		69,759		220,549		—		—		436,361
Substandard accrual	—		2,023		42,238		9,358		21,352		109,584		10		—		184,565


Substandard nonaccrual/doubtful	—		—		266		1,221		2,131		28,089		—		—		31,707
Total non-construction	$	253,116	$	1,307,463	$	1,138,028	$	894,164	$	865,944	$	2,548,182	$	184,314	$	244	$	7,191,455
Home equity
Pass	$	—	$	44	$	—	$	47	$	28	$	7,082	$	356,197	$	—	$	363,398
Special mention	—		—		—		—		—		2,103		4,905		245		7,253
Substandard accrual	—		—		—		317		—		11,953		1,053		743		14,066
Substandard nonaccrual/doubtful	—		—		—		—		157		3,799		1,580		—		5,536
Total home equity	$	—	$	44	$	—	$	364	$	185	$	24,937	$	363,735	$	988	$	390,253
Residential real estate
Pass	$	301,904	$	346,823	$	265,543	$	100,023	$	115,609	$	240,205	$	—	$	—	$	1,370,107
Special mention	80		302		237		2,017		2,163		8,467		—		—		13,266
Substandard accrual	291		2,304		1,025		897		2,300		10,230		—		—		17,047
Substandard nonaccrual/doubtful	—		186		1,121		745		5,034		14,467		—		—		21,553
Total residential real estate	$	302,275	$	349,615	$	267,926	$	103,682	$	125,106	$	273,369	$	—	$	—	$	1,421,973
Premium finance receivables - commercial
Pass	$	2,001,412	$	1,896,547	$	27,366	$	2,961	$	54	$	—	$	—	$	—	$	3,928,340
Special mention	8,051		11,093		8		—		—		—		—		—		19,152
Substandard accrual	1		1,267		13		80		—		—		—		—		1,361
Substandard nonaccrual/doubtful	512		7,898		1,252		28		—		—		—		—		9,690
Total premium finance receivables - commercial	$	2,009,976	$	1,916,805	$	28,639	$	3,069	$	54	$	—	$	—	$	—	$	3,958,543
Premium finance receivables - life
Pass	$	112,896	$	636,815	$	658,163	$	620,034	$	678,197	$	3,404,823	$	—	$	—	$	6,110,928
Special mention	—		—		—		—		567		—		—		—		567
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	112,896	$	636,815	$	658,163	$	620,034	$	678,764	$	3,404,823	$	—	$	—	$	6,111,495
Consumer and other
Pass	$	1,204	$	1,955	$	1,749	$	1,389	$	179	$	14,366	$	14,206	$	—	$	35,048
Special mention	3		10		19		—		86		91		6		—		215
Substandard accrual	—		4		1		—		—		215		3		—		223
Substandard nonaccrual/doubtful	—		1		—		104		—		392		—		—		497
Total consumer and other	$	1,207	$	1,970	$	1,769	$	1,493	$	265	$	15,064	$	14,215	$	—	$	35,983
Total loans (1)
Pass	$	4,523,884	$	8,524,939	$	3,574,815	$	2,577,862	$	2,267,625	$	6,708,148	$	3,492,693	$	5,169	$	31,675,135
Special mention	14,130		61,031		165,856		128,882		130,156		260,038		91,640		281		852,014
Substandard accrual	23,030		25,273		110,386		103,836		51,633		193,973		40,984		854		549,969
Substandard nonaccrual/doubtful	512		9,972		4,409		5,786		9,400		61,923		2,113		—		94,115
Total loans	$	4,561,556	$	8,621,215	$	3,855,466	$	2,816,366	$	2,458,814	$	7,224,082	$	3,627,430	$	6,304	$	33,171,233

(1)Includes $164.7 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 March 31, 2021. These loans were further qualitatively evaluated as a part of the measurement of the allowance for credit losses as of March 31, 2021.

Held-to-Maturity Debt Securities by Credit Quality Indicator


As of March 31, 2021	Year of Origination												Total
(In thousands)	2021		2020		2019		2018		2017		Prior		Balance
Amortized Cost Balances:
U.S. government agencies
1-4 internal grade	$	97,786	$	25,000	$	—	$	50,000	$	—	$	3,374	$	176,160
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	97,786	$	25,000	$	—	$	50,000	$	—	$	3,374	$	176,160
Municipal
1-4 internal grade	$	1,377	$	—	$	161	$	7,549	$	43,603	$	145,175	$	197,865
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	1,377	$	—	$	161	$	7,549	$	43,603	$	145,175	$	197,865
Mortgage-backed securities
1-4 internal grade	$	1,737,115	$	—	$	—	$	—	$	—	$	—	$	1,737,115
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	1,737,115	$	—	$	—	$	—	$	—	$	—	$	1,737,115
Corporate notes
1-4 internal grade	$	—	$	13,661	$	7,462	$	3,325	$	3,282	$	27,648	$	55,378
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	—	$	13,661	$	7,462	$	3,325	$	3,282	$	27,648	$	55,378
Total held-to-maturity securities													$	2,166,518
Less: Allowance for credit losses													(99)
Held-to-maturity securities, net of allowance for credit losses													$	2,166,419

Components of Allowance for Credit Losses


	March 31,		December 31,		March 31,
(In thousands)	2021		2020		2020





Allowance for loan losses	$	277,709	$	319,374	$	216,050
Allowance for unfunded lending-related commitments losses	43,500		60,536		37,362
Allowance for loan losses and unfunded lending-related commitments losses	321,209		379,910		253,412
Allowance for held-to-maturity securities losses	99		59		70
Allowance for credit losses	$	321,308	$	379,969	$	253,482

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 months ended March 31, 2021 and 2020 is as follows.


Three months ended March 31, 2021			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	$	94,212	$	243,603	$	11,437	$	12,459	$	17,777	$	422	$	379,910

Other adjustments	—		—		—		—		30		—		30
Charge-offs	(11,781)		(980)		—		(2)		(3,239)		(114)		(16,116)
Recoveries	452		200		101		204		1,782		32		2,771
Provision for credit losses	12,757		(61,031)		(156)		1,581		1,127		336		(45,386)


Allowance for credit losses at period end	$	95,640	$	181,792	$	11,382	$	14,242	$	17,477	$	676	$	321,209
Individually measured	$	5,046	$	2,042	$	338	$	822	$	—	$	81	$	8,329
Collectively measured	90,594		179,750		11,044		13,420		17,477		595		312,880

Loans at period end
Individually measured	$	30,144	$	43,858	$	21,167	$	28,675	$	—	$	560	$	124,404
Collectively measured	12,678,063		8,500,921		369,086		1,341,382		10,070,038		35,423		32,994,913

Loans held at fair value	—		—		—		51,916		—		—		51,916


Three months ended March 31, 2020	Commercial		Commercial Real Estate		Home Equity		Residential Real Estate		Premium Finance Receivables		Consumer and Other		Total Loans
(In thousands)

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	—		—		—		—		(73)		—		(73)

Charge-offs	(2,153)		(570)		(1,001)		(401)		(3,184)		(128)		(7,437)
Recoveries	384		263		294		60		1,110		41		2,152
Provision for credit losses	35,156		12,528		162		89		5,339		(309)		52,965
Allowance for credit losses at period end	$	107,346	$	112,796	$	12,394	$	12,550	$	7,880	$	446	$	253,412
Individually measured	$	12,524	$	9,108	$	290	$	466	$	—	$	104	$	22,492
Collectively measured	94,822		103,688		12,104		12,084		7,880		342		230,920

Loans at period end
Individually measured	$	56,416	$	80,873	$	23,060	$	27,854	$	—	$	537	$	188,740
Collectively measured	8,969,470		8,104,658		471,595		1,207,268		8,686,694		36,629		27,476,314

Loans held at fair value	—		—		—		142,267		—		—		142,267

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

The tables below present a summary of the post-modification balance of loans restructured during the three months ended March 31, 2021 and 2020, respectively, which represent TDRs:


Three months ended March 31, 2021 (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	2	$	151	2	$	151	—	$	—	—	$	—	—	$	—


Commercial real estate
Non-construction	2	237		2	237		1	113		1	113		—	—




Residential real estate and other	16	1,738		16	1,738		9	1,290		—	—		—	—
Total loans	20	$	2,126	20	$	2,126	10	$	1,403	1	$	113	—	$	—


Three months ended March 31, 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	$	5,602	3	$	4,316	—	$	—	—	$	—	1	$	432


Commercial real estate




Non-construction	13	16,053		11	13,511		3	921		5	3,463		—	—
Residential real estate and other	20	2,142		12	1,890		5	786		—	—		—	—
Total loans	38	$	23,797	26	$	19,717	8	$	1,707	5	$	3,463	1	$	432

(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.

The following table presents a summary of all loans restructured in TDRs during the twelve months ended March 31, 2021 and 2020, and such loans that were in payment default under the restructured terms during the respective periods below:


(Dollars in thousands)	As of March 31, 2021			Three Months Ended March 31, 2021			As of March 31, 2020		Three Months Ended March 31, 2020
	Total (1)(3)			Payments in Default (2)(3)			Payments in Default (2)(3)		Payments in Default (2)(3)
	Count	Balance		Count	Balance			Count		Balance		Count	Balance
Commercial
Commercial, industrial and other	18	$	6,910	5	$	1,496		20		$	13,013	8	$	4,836



Commercial real estate


Non-construction	7	3,466		3	3,121			19		22,770		3	758




Residential real estate and other	81	13,825		5	596			145		17,863		11	2,510
Total loans	106	$	24,201	13	$	5,213		184		$	53,646	22	$	8,104

(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.