XML 23 R13.htm IDEA: XBRL DOCUMENT v3.21.2
Loans
 9 Months Ended
Sep. 30, 2021
Loans and Leases Receivable Disclosure [Abstract]  
Loans Loans
The following table shows the Company’s loan portfolio by category as of the dates shown:
September 30,December 31,September 30,
(Dollars in thousands)202120202020
Balance:
Commercial$11,187,972 $11,955,967 $12,276,999 
Commercial real estate8,885,714 8,494,132 8,423,142 
Home equity347,662 425,263 446,274 
Residential real estate1,547,736 1,259,598 1,384,810 
Premium finance receivables
Commercial insurance4,616,977 4,054,489 4,060,144 
Life insurance6,655,453 5,857,436 5,488,832 
Consumer and other22,529 32,188 55,354 
    Total loans, net of unearned income$33,264,043 $32,079,073 $32,135,555 
Mix:
Commercial33 %37 %39 %
Commercial real estate27 26 26 
Home equity1 1 1 
Residential real estate5 5 4 
Premium finance receivables
Commercial insurance14 13 13 
Life insurance20 18 17 
Consumer and other0 0 0 
Total loans, net of unearned income100 %100 %100 %

The Company’s loan portfolio is generally comprised of loans to consumers and small to medium-sized businesses, which, for the commercial and commercial real estate portfolios, are located primarily within the geographic market areas that the banks serve. Various niche lending businesses, including lease finance and franchise lending, operate on a national level. Additionally, to provide short-term relief due to macroeconomic deterioration from the COVID-19 pandemic to small businesses within such market areas, the Company originated loans through the Paycheck Protection Program ("PPP"), an expansion of guaranteed lending under Section 7(a) of the Small Business Act within the CARES Act. As of September 30, 2021, the Company's commercial portfolio included approximately $1.1 billion of such PPP loans. The premium finance receivables portfolios are made to customers throughout the United States and Canada. The Company strives to maintain a loan portfolio that is diverse in terms of loan type, industry, borrower and geographic concentrations. Such diversification reduces the exposure to economic downturns that may occur in different segments of the economy or in different industries.

Certain premium finance receivables are recorded net of unearned income. The unearned income portions of such premium finance receivables were $124.0 million at September 30, 2021, $113.1 million at December 31, 2020 and $108.5 million at September 30, 2020.

Total loans, excluding PCD loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $13.1 million at September 30, 2021, $(3.2) million at December 31, 2020 and $(42.3) million at September 30, 2020. Net deferred fees as of September 30, 2021 includes $24.8 million of net deferred fees paid by the Small Business Administration ("SBA") for loans originated under the PPP. As PPP loans share similar characteristics (loan terms), and prepayments are considered probable and can reasonably be estimated due to terms of the program, the Company considers estimated future principal prepayments in recognizing such deferred fees for determining a constant effective yield on the portfolio of loans.

It is the policy of the Company to review each prospective credit in order to determine the appropriateness and, when required, the adequacy of security or collateral necessary to obtain when making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to ensure access to collateral, in the event of default, through adherence to state lending laws and the Company’s credit monitoring procedures.