Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Aging of the Company's Loan Portfolio

The tables below show the aging of the Company’s loan portfolio by the segmentation noted above at March 31, 2022, December 31, 2021 and March 31, 2021:


As of March 31, 2022			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	$	16,878	$	—	$	1,294	$	31,873	$	11,279,954	$	11,329,999
Commercial PPP loans	—		—		—		16		253,948		253,964
Commercial real estate
Construction and development	1,054		—		—		1,409		1,393,943		1,396,406
Non-construction	11,247		—		2,648		28,732		7,796,041		7,838,668







Home equity	1,747		—		199		545		318,944		321,435

Residential real estate, excluding early buy-out loans	7,262		—		293		18,808		1,723,526		1,749,889


Premium finance receivables
Property and casualty insurance loans	6,707		12,363		8,890		21,278		4,888,170		4,937,408
Life insurance loans	—		—		22,401		15,522		7,316,240		7,354,163

Consumer and other	4		43		5		221		48,246		48,519
Total loans, net of unearned income, excluding early buy-out loans	$	44,899	$	12,406	$	35,730	$	118,404	$	35,019,012	$	35,230,451
Early buy-out loans guaranteed by U.S. government agencies (1)	4,661		28,958		—		185		16,292		50,096
Total loans, net of unearned income	$	49,560	$	41,364	$	35,730	$	118,589	$	35,035,304	$	35,280,547


As of December 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	$	20,399	$	—	$	23,492	$	42,933	$	11,258,961	$	11,345,785
Commercial PPP loans	—		15		770		928		556,570		558,283
Commercial real estate
Construction and development	1,377		—		—		2,809		1,352,018		1,356,204
Non-construction	20,369		—		284		37,634		7,575,795		7,634,082







Home equity	2,574		—		—		1,120		331,461		335,155

Residential real estate, excluding early buy-out loans	16,440		—		982		12,145		1,576,704		1,606,271

Premium finance receivables
Property and casualty insurance loans	5,433		7,210		15,490		22,419		4,804,935		4,855,487
Life insurance loans	—		7		12,614		66,651		6,963,538		7,042,810

Consumer and other	477		137		34		509		23,042		24,199
Total loans, net of unearned income, excluding early buy-out loans	$	67,069	$	7,369	$	53,666	$	187,148	$	34,443,024	$	34,758,276
Early buy-out loans guaranteed by U.S. government agencies (1)	—		—		—		275		30,553		30,828
Total loans, net of unearned income	$	67,069	$	7,369	$	53,666	$	187,423	$	34,473,577	$	34,789,104


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, excluding early buy-out loans	21,553		—		944		13,768		1,333,867		1,370,132

Premium finance receivables
Property and casualty 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, excluding early buy-out loans	$	94,115	$	4,944	$	28,005	$	151,704	$	32,840,624	$	33,119,392
Early buy-out loans guaranteed by U.S. government agencies (1)	—		—		—		—		51,841		51,841
Total loans, net of unearned income	$	94,115	$	4,944	$	28,005	$	151,704	$	32,892,465	$	33,171,233

(1)Early buy-out loans are insured or guaranteed by the FHA or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

Summary of 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, 2022:


	Year of Origination														Revolving		Total
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving		to Term		Loans
Loan Balances:
Commercial, industrial and other
Pass	$	524,863	$	2,714,254	$	1,407,819	$	889,866	$	647,127	$	1,037,167	$	3,616,144	$	8,342	$	10,845,582
Special mention	34		77,940		51,807		61,656		21,183		48,902		105,022		228		366,772
Substandard accrual	—		5,596		10,285		22,157		24,320		11,484		26,925		—		100,767
Substandard nonaccrual/doubtful	—		54		3,427		6,474		1,759		5,092		72		—		16,878
Total commercial, industrial and other	$	524,897	$	2,797,844	$	1,473,338	$	980,153	$	694,389	$	1,102,645	$	3,748,163	$	8,570	$	11,329,999
Commercial PPP
Pass	$	—	$	213,790	$	33,830	$	—	$	—	$	—	$	—	$	—	$	247,620
Special mention	—		158		5,621		—		—		—		—		—		5,779
Substandard accrual	—		—		565		—		—		—		—		—		565
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	—	$	213,948	$	40,016	$	—	$	—	$	—	$	—	$	—	$	253,964
Construction and development
Pass	$	99,285	$	391,288	$	430,778	$	231,618	$	51,795	$	114,022	$	22,404	$	—	$	1,341,190
Special mention	—		282		8,475		3,611		24,748		110		—		—		37,226
Substandard accrual	—		—		—		312		2,052		14,572		—		—		16,936
Substandard nonaccrual/doubtful	—		—		—		—		—		1,054		—		—		1,054
Total construction and development	$	99,285	$	391,570	$	439,253	$	235,541	$	78,595	$	129,758	$	22,404	$	—	$	1,396,406
Non-construction
Pass	$	468,125	$	1,563,953	$	1,103,776	$	962,675	$	715,014	$	2,500,006	$	170,873	$	147	$	7,484,569
Special mention	—		1,842		9,792		49,110		36,694		129,238		—		—		226,676
Substandard accrual	—		—		286		14,676		26,945		74,269		—		—		116,176
Substandard nonaccrual/doubtful	—		—		—		—		270		10,977		—		—		11,247
Total non-construction	$	468,125	$	1,565,795	$	1,113,854	$	1,026,461	$	778,923	$	2,714,490	$	170,873	$	147	$	7,838,668
Home equity
Pass	$	—	$	—	$	—	$	—	$	—	$	5,502	$	298,765	$	—	$	304,267
Special mention	—		—		—		—		240		391		4,452		—		5,083
Substandard accrual	—		—		—		—		—		9,045		757		536		10,338
Substandard nonaccrual/doubtful	—		—		—		107		43		1,597		—		—		1,747
Total home equity	$	—	$	—	$	—	$	107	$	283	$	16,535	$	303,974	$	536	$	321,435
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	241	$	621	$	5,920	$	8,808	$	34,506	$	—	$	—	$	50,096
Pass	236,643		835,324		259,100		143,358		58,132		189,137		—		—		1,721,694
Special mention	—		1,612		173		378		1,296		4,899		—		—		8,358
Substandard accrual	263		1,101		2,184		716		904		7,407		—		—		12,575
Substandard nonaccrual/doubtful	—		—		881		1,856		427		4,098		—		—		7,262
Total residential real estate	$	236,906	$	838,278	$	262,959	$	152,228	$	69,567	$	240,047	$	—	$	—	$	1,799,985
Premium finance receivables - property and casualty
Pass	$	2,451,925	$	2,404,905	$	19,074	$	7,203	$	662	$	—	$	—	$	—	$	4,883,769
Special mention	14,857		23,617		59		—		—		—		—		—		38,533
Substandard accrual	21		8,336		27		—		15		—		—		—		8,399
Substandard nonaccrual/doubtful	89		6,115		503		—		—		—		—		—		6,707
Total premium finance receivables - property and casualty	$	2,466,892	$	2,442,973	$	19,663	$	7,203	$	677	$	—	$	—	$	—	$	4,937,408
Premium finance receivables - life
Pass	$	91,374	$	587,300	$	908,193	$	826,596	$	722,851	$	4,210,182	$	—	$	—	$	7,346,496


Special mention	—		595		—		—		—		7,072		—		—		7,667
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	91,374	$	587,895	$	908,193	$	826,596	$	722,851	$	4,217,254	$	—	$	—	$	7,354,163
Consumer and other
Pass	$	523	$	2,465	$	708	$	990	$	990	$	21,159	$	21,436	$	—	$	48,271
Special mention	—		3		2		8		—		126		9		—		148
Substandard accrual	—		9		1		—		—		76		10		—		96
Substandard nonaccrual/doubtful	—		—		—		—		—		4		—		—		4
Total consumer and other	$	523	$	2,477	$	711	$	998	$	990	$	21,365	$	21,455	$	—	$	48,519
Total loans
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	241	$	621	$	5,920	$	8,808	$	34,506	$	—	$	—	$	50,096
Pass	3,872,738		8,713,279		4,163,278		3,062,306		2,196,571		8,077,175		4,129,622		8,489		34,223,458
Special mention	14,891		106,049		75,929		114,763		84,161		190,738		109,483		228		696,242
Substandard accrual	284		15,042		13,348		37,861		54,236		116,853		27,692		536		265,852
Substandard nonaccrual/doubtful	89		6,169		4,811		8,437		2,499		22,822		72		—		44,899
Total loans	$	3,888,002	$	8,840,780	$	4,257,987	$	3,229,287	$	2,346,275	$	8,442,094	$	4,266,869	$	9,253	$	35,280,547

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 March 31, 2022	Year of Origination												Total
(In thousands)	2022		2021		2020		2019		2018		Prior		Balance
Amortized Cost Balances:
U.S. government agencies
1-4 internal grade	$	85,000	$	147,795	$	25,000	$	4,032	$	—	$	2,834	$	264,661
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	85,000	$	147,795	$	25,000	$	4,032	$	—	$	2,834	$	264,661
Municipal
1-4 internal grade	$	—	$	7,067	$	300	$	160	$	7,465	$	165,556	$	180,548
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	—	$	7,067	$	300	$	160	$	7,465	$	165,556	$	180,548
Mortgage-backed securities
1-4 internal grade	$	379,444	$	2,567,451	$	—	$	—	$	—	$	—	$	2,946,895
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	379,444	$	2,567,451	$	—	$	—	$	—	$	—	$	2,946,895
Corporate notes
1-4 internal grade	$	—	$	—	$	6,012	$	7,377	$	3,244	$	27,151	$	43,784
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	—	$	—	$	6,012	$	7,377	$	3,244	$	27,151	$	43,784
Total held-to-maturity securities													$	3,435,888
Less: Allowance for credit losses													(159)
Held-to-maturity securities, net of allowance for credit losses													$	3,435,729

Schedule 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.


	March 31,		December 31,		March 31,
(In thousands)	2022		2021		2021





Allowance for loan losses	$	250,539	$	247,835	$	277,709
Allowance for unfunded lending-related commitments losses	50,629		51,818		43,500
Allowance for loan losses and unfunded lending-related commitments losses	301,168		299,653		321,209
Allowance for held-to-maturity securities losses	159		78		99
Allowance for credit losses	$	301,327	$	299,731	$	321,308

Summary of Activity in the Allowance for Credit Losses by Loan Portfolio

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, 2022 and 2021 is as follows.


Three months ended March 31, 2022			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	$	119,307	$	144,583	$	10,699	$	8,782	$	15,859	$	423	$	299,653

Other adjustments	—		—		—		—		22		—		22
Charge-offs	(1,414)		(777)		(197)		(466)		(1,678)		(193)		(4,725)
Recoveries	538		32		93		5		1,476		49		2,193
Provision for credit losses	2,480		1,068		(29)		1,108		(957)		355		4,025


Allowance for credit losses at period end	$	120,911	$	144,906	$	10,566	$	9,429	$	14,722	$	634	$	301,168
By measurement method:
Individually measured	$	3,698	$	522	$	127	$	800	$	—	$	5	$	5,152
Collectively measured	117,213		144,384		10,439		8,629		14,722		629		296,016

Loans at period end
Individually measured	$	19,651	$	22,370	$	12,904	$	17,842	$	—	$	79	$	72,846
Collectively measured	11,564,312		9,212,704		308,531		1,724,159		12,291,571		48,440		35,149,717

Loans held at fair value	—		—		—		57,984		—		—		57,984


Three months ended March 31, 2021	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	$	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
By measurement method:
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

Summary of the Post-Modification Balance of Loans Restructured

The tables below present a summary of the post-modification balance of loans restructured during the three and three months ended March 31, 2022 and 2021, respectively, which represent TDRs:


Three months ended March 31, 2022 (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	3	$	282	2	$	120	1	$	85	2	$	247	—	$	—


Commercial real estate
Non-construction	2	1,907		1	1,178		1	1,178		2	1,907		—	—




Residential real estate and other	8	908		8	908		7	762		—	—		—	—
Total loans	13	$	3,097	11	$	2,206	9	$	2,025	4	$	2,154	—	$	—


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	—	$	—

(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, 2022 and 2021, and such loans that were in payment default under the restructured terms during the respective periods below:


(Dollars in thousands)	As of March 31, 2022			Three Months Ended March 31, 2022			As of March 31, 2021		Three months ended March 31, 2021
	Total (1)(3)			Payments in Default (2)(3)			Total (1)(3)		Payments in Default (2)(3)
	Count	Balance		Count	Balance			Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	17	$	5,205	11	$	4,526		18	$	6,910	5	$	1,496



Commercial real estate


Non-construction	5	4,613		2	2,163			7	3,466		3	3,121




Residential real estate and other	35	5,021		1	104			81	13,825		5	596
Total loans	57	$	14,839	14	$	6,793		106	$	24,201	13	$	5,213

(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.