Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2021

The tables below show the aging of the Company’s loan portfolio by the segmentation noted above at September 30, 2021, December 31, 2020 and September 30, 2020:


As of September 30, 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	$	26,468	$	—	$	9,768	$	24,086	$	10,045,662	$	10,105,984
Commercial PPP loans	—		—		—		1,138		1,080,850		1,081,988
Commercial real estate
Construction and development	1,030		—		—		12,631		1,330,054		1,343,715
Non-construction	22,676		—		5,395		67,187		7,446,741		7,541,999







Home equity	3,449		164		340		867		342,842		347,662
Residential real estate	22,633		—		1,540		1,076		1,522,487		1,547,736
Premium finance receivables
Commercial insurance loans	7,300		5,811		10,642		14,614		4,578,610		4,616,977
Life insurance loans	—		—		5,162		7,040		6,643,251		6,655,453

Consumer and other	384		126		16		125		21,878		22,529
Total loans, net of unearned income	$	83,940	$	6,101	$	32,863	$	128,764	$	33,012,375	$	33,264,043


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 September 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 (includes PCD):
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

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, 2021:


As of September 30, 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	$	1,876,457	$	1,567,410	$	1,005,156	$	711,177	$	481,140	$	620,202	$	3,301,541	$	10,236	$	9,573,319
Special mention	18,468		52,692		67,528		42,470		31,785		22,358		106,454		5,841		347,596
Substandard accrual	17,805		5,246		21,901		33,886		8,712		41,590		28,641		820		158,601
Substandard nonaccrual/doubtful	5,227		3,803		5,008		4,206		2,189		5,503		532		—		26,468
Total commercial, industrial and other	$	1,917,957	$	1,629,151	$	1,099,593	$	791,739	$	523,826	$	689,653	$	3,437,168	$	16,897	$	10,105,984
Commercial PPP
Pass	$	909,139	$	171,213	$	—	$	—	$	—	$	—	$	—	$	—	$	1,080,352
Special mention	—		1,356		—		—		—		—		—		—		1,356
Substandard accrual	—		280		—		—		—		—		—		—		280
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	909,139	$	172,849	$	—	$	—	$	—	$	—	$	—	$	—	$	1,081,988
Construction and development
Pass	$	214,644	$	403,619	$	326,654	$	131,600	$	79,752	$	88,452	$	24,382	$	2,688	$	1,271,791
Special mention	282		8,475		12,144		17,685		23,435		3,234		—		—		65,255
Substandard accrual	—		—		316		2,558		2,132		478		155		—		5,639
Substandard nonaccrual/doubtful	—		—		—		—		—		1,030		—		—		1,030
Total construction and development	$	214,926	$	412,094	$	339,114	$	151,843	$	105,319	$	93,194	$	24,537	$	2,688	$	1,343,715
Non-construction
Pass	$	1,039,349	$	1,215,988	$	997,258	$	796,708	$	752,951	$	2,053,618	$	185,418	$	4,979	$	7,046,269
Special mention	3,517		10,307		51,203		61,392		44,193		155,150		—		—		325,762
Substandard accrual	—		1,960		33,544		20,725		21,345		69,718		—		—		147,292


Substandard nonaccrual/doubtful	—		—		—		112		169		22,395		—		—		22,676
Total non-construction	$	1,042,866	$	1,228,255	$	1,082,005	$	878,937	$	818,658	$	2,300,881	$	185,418	$	4,979	$	7,541,999
Home equity
Pass	$	8	$	—	$	—	$	—	$	28	$	7,050	$	319,725	$	—	$	326,811
Special mention	—		—		—		—		—		614		5,355		242		6,211
Substandard accrual	—		—		—		184		67		9,341		949		650		11,191
Substandard nonaccrual/doubtful	—		—		—		47		81		2,794		527		—		3,449
Total home equity	$	8	$	—	$	—	$	231	$	176	$	19,799	$	326,556	$	892	$	347,662
Residential real estate
Pass	$	672,993	$	299,739	$	193,715	$	79,703	$	87,361	$	162,230	$	—	$	—	$	1,495,741
Special mention	884		269		459		2,123		1,848		8,331		—		—		13,914
Substandard accrual	1,129		2,234		731		887		2,033		8,434		—		—		15,448
Substandard nonaccrual/doubtful	—		994		1,554		859		4,807		14,419		—		—		22,633
Total residential real estate	$	675,006	$	303,236	$	196,459	$	83,572	$	96,049	$	193,414	$	—	$	—	$	1,547,736
Premium finance receivables - commercial
Pass	$	4,453,036	$	106,802	$	13,179	$	1,429	$	49	$	—	$	—	$	—	$	4,574,495
Special mention	31,671		1,693		9		—		1		—		—		—		33,374
Substandard accrual	1,153		608		2		45		—		—		—		—		1,808
Substandard nonaccrual/doubtful	4,620		2,601		67		12		—		—		—		—		7,300
Total premium finance receivables - commercial	$	4,490,480	$	111,704	$	13,257	$	1,486	$	50	$	—	$	—	$	—	$	4,616,977
Premium finance receivables - life
Pass	$	340,318	$	782,936	$	734,280	$	673,416	$	699,250	$	3,424,672	$	—	$	—	$	6,654,872
Special mention	—		—		—		—		581		—		—		—		581
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	340,318	$	782,936	$	734,280	$	673,416	$	699,831	$	3,424,672	$	—	$	—	$	6,655,453
Consumer and other
Pass	$	2,769	$	1,120	$	1,254	$	1,230	$	84	$	4,595	$	10,647	$	—	$	21,699
Special mention	—		4		17		—		80		82		6		—		189
Substandard accrual	—		3		1		—		—		250		3		—		257
Substandard nonaccrual/doubtful	—		4		—		100		—		280		—		—		384
Total consumer and other	$	2,769	$	1,131	$	1,272	$	1,330	$	164	$	5,207	$	10,656	$	—	$	22,529
Total loans (1)
Pass	$	9,508,713	$	4,548,827	$	3,271,496	$	2,395,263	$	2,100,615	$	6,360,819	$	3,841,713	$	17,903	$	32,045,349
Special mention	54,822		74,796		131,360		123,670		101,923		189,769		111,815		6,083		794,238
Substandard accrual	20,087		10,331		56,495		58,285		34,289		129,811		29,748		1,470		340,516
Substandard nonaccrual/doubtful	9,847		7,402		6,629		5,336		7,246		46,421		1,059		—		83,940
Total loans	$	9,593,469	$	4,641,356	$	3,465,980	$	2,582,554	$	2,244,073	$	6,726,820	$	3,984,335	$	25,456	$	33,264,043

(1)Includes $37.5 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, 2021. These loans were further qualitatively evaluated as a part of the measurement of the allowance for credit losses as of September 30, 2021.

Held-to-Maturity Debt Securities by Credit Quality Indicator

For purposes of the table below, the Company has converted any issuer rating from an NRSRO into the Company’s internal ratings based on Investment Policy and review by the Company’s management.


As of September 30, 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	$	97,790	$	25,000	$	—	$	50,000	$	—	$	3,353	$	176,143
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	97,790	$	25,000	$	—	$	50,000	$	—	$	3,353	$	176,143
Municipal
1-4 internal grade	$	1,371	$	—	$	161	$	7,508	$	43,358	$	138,264	$	190,662
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	1,371	$	—	$	161	$	7,508	$	43,358	$	138,264	$	190,662
Mortgage-backed securities
1-4 internal grade	$	2,318,309	$	—	$	—	$	—	$	—	$	—	$	2,318,309
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	2,318,309	$	—	$	—	$	—	$	—	$	—	$	2,318,309
Corporate notes
1-4 internal grade	$	—	$	13,578	$	7,419	$	3,285	$	3,237	$	24,172	$	51,691
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	—	$	13,578	$	7,419	$	3,285	$	3,237	$	24,172	$	51,691
Total held-to-maturity securities													$	2,736,805
Less: Allowance for credit losses													(83)
Held-to-maturity securities, net of allowance for credit losses													$	2,736,722

Components of Allowance for Credit Losses

As significant judgment is required, the review of the appropriateness of the allowance for credit losses is performed quarterly by various committees with participation by the Company's executive management.


	September 30,		December 31,		September 30,
(In thousands)	2021		2020		2020





Allowance for loan losses	$	248,612	$	319,374	$	325,959
Allowance for unfunded lending-related commitments losses	47,443		60,536		62,949
Allowance for loan losses and unfunded lending-related commitments losses	296,055		379,910		388,908
Allowance for held-to-maturity securities losses	83		59		63
Allowance for credit losses	$	296,138	$	379,969	$	388,971

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, 2021 and 2020 is as follows.


Three months ended September 30, 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	$	98,507	$	158,522	$	11,207	$	15,684	$	19,899	$	212	$	304,031

Other adjustments			—		—		—		(65)		—		(65)
Charge-offs	(1,352)		(406)		(59)		(10)		(1,390)		(112)		(3,329)
Recoveries	816		373		313		5		1,728		92		3,327
Provision for credit losses	11,811		(18,454)		(522)		593		(1,597)		260		(7,909)


Allowance for credit losses at period end	$	109,782	$	140,035	$	10,939	$	16,272	$	18,575	$	452	$	296,055
Individually measured	$	8,222	$	1,308	$	221	$	940	$	—	$	68	$	10,759
Collectively measured	101,560		138,727		10,718		15,332		18,575		384		285,296

Loans at period end
Individually measured	$	31,001	$	32,091	$	16,486	$	28,966	$	—	$	467	$	109,011
Collectively measured	11,156,971		8,853,623		331,176		1,487,791		11,272,430		22,062		33,124,053

Loans held at fair value	—		—		—		30,979		—		—		30,979


Three months ended September 30, 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	$	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


Nine months ended September 30, 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	—		—		—		—		(2)		—		(2)
Charge-offs	(16,370)		(2,798)		(201)		(15)		(6,706)		(330)		(26,420)
Recoveries	2,170		1,087		742		245		6,749		158		11,151
Provision for credit losses	29,770		(101,857)		(1,039)		3,583		757		202		(68,584)


Allowance for credit losses at period end	$	109,782	$	140,035	$	10,939	$	16,272	$	18,575	$	452	$	296,055


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

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

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 and nine months ended September 30, 2021 and 2020, respectively, which represent TDRs:


Three months ended September 30, 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	1	$	1	1	$	1	—	$	—	—	$	—	—	$	—


Commercial real estate
Non-construction	—	—		—	—		—	—		—	—		—	—




Residential real estate and other	8	558		7	441		2	202		—	—		—	—
Total loans	9	$	559	8	$	442	2	$	202	—	$	—	—	$	—


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	—	$	—

(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, 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	6	$	547	6	$	547	—	$	—	—	$	—	—	$	—

Commercial real estate
Non-construction	5	2,944		4	2,401		2	656		1	113		—	—




Residential real estate and other	34	3,393		33	3,276		13	2,108		—	—		—	—
Total loans	45	$	6,884	43	$	6,224	15	$	2,764	1	$	113	—	$	—


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)
	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

(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 September 30, 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 September 30, 2021			Three Months Ended September 30, 2021			Nine months ended September 30, 2021
	Total (1)(3)			Payments in Default (2)(3)			Payments in Default (2)(3)
	Count	Balance		Count	Balance			Count	Balance
Commercial
Commercial, industrial and other	10	$	2,863	1	$	199		4	$	1,524



Commercial real estate


Non-construction	6	3,045		3	2,275			3	2,275




Residential real estate and other	50	6,437		2	116			2	116
Total loans	66	$	12,345	6	$	2,590		9	$	3,915


(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

(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.