Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

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 June 30, 2022, December 31, 2021 and June 30, 2021:

As of June 30, 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	$	32,436	$	—	$	7,756	$	13,897	$	11,910,927	$	11,965,016
Commercial PPP loans	—		—		9,033		223		72,833		82,089
Commercial real estate
Construction and development	889		—		—		1,144		1,504,285		1,506,318
Non-construction	9,829		—		6,771		33,076		7,851,211		7,900,887
Home equity	1,084		—		154		930		323,658		325,826
Residential real estate, excluding early buy-out loans	8,330		—		534		147		1,956,040		1,965,051
Premium finance receivables
Property and casualty insurance loans	13,303		6,447		15,299		23,313		5,483,085		5,541,447
Life insurance loans	—		—		1,796		65,155		7,541,482		7,608,433
Consumer and other	8		25		8		119		44,020		44,180
Total loans, net of unearned income, excluding early buy-out loans	$	65,879	$	6,472	$	41,351	$	138,004	$	36,687,541	$	36,939,247
Early buy-out loans guaranteed by U.S. government agencies (1)	23,815		50,314		272		—		39,455		113,856
Total loans, net of unearned income	$	89,694	$	56,786	$	41,623	$	138,004	$	36,726,996	$	37,053,103

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 June 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	$	23,232	$	1,244	$	5,204	$	18,468	$	9,514,721	$	9,562,869
Commercial PPP loans	—		—		—		10		1,879,397		1,879,407
Commercial real estate
Construction and development	1,030		—		—		2,207		1,382,012		1,385,249
Non-construction	25,005		—		4,382		17,491		7,246,242		7,293,120
Home equity	3,478		—		301		777		365,250		369,806
Residential real estate, excluding early buy-out loans	23,050		—		1,584		2,139		1,452,734		1,479,507
Premium finance receivables
Property and casualty insurance loans	6,418		3,570		7,759		8,793		4,495,331		4,521,871
Life insurance loans	—		—		—		23,965		6,335,591		6,359,556
Consumer and other	485		178		22		75		8,264		9,024
Total loans, net of unearned income, excluding early buy-out loans	$	82,698	$	4,992	$	19,252	$	73,925	$	32,679,542	$	32,860,409
Early buy-out loans guaranteed by U.S. government agencies (1)	—		—		—		—		50,778		50,778
Total loans, net of unearned income	$	82,698	$	4,992	$	19,252	$	73,925	$	32,730,320	$	32,911,187

(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 June 30, 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	$	1,260,184	$	2,565,443	$	1,279,656	$	758,679	$	558,129	$	963,346	$	4,008,344	$	45,005	$	11,438,786
Special mention	5,275		40,753		38,258		62,110		54,302		42,247		82,418		235		325,598
Substandard accrual	1,993		43,404		26,150		18,264		7,454		8,171		62,689		71		168,196
Substandard nonaccrual/doubtful	—		94		3,594		4,729		12,493		3,555		7,971		—		32,436
Total commercial, industrial and other	$	1,267,452	$	2,649,694	$	1,347,658	$	843,782	$	632,378	$	1,017,319	$	4,161,422	$	45,311	$	11,965,016
Commercial PPP
Pass	$	—	$	63,524	$	17,374	$	—	$	—	$	—	$	—	$	—	$	80,898
Special mention	—		18		680		—		—		—		—		—		698
Substandard accrual	—		—		493		—		—		—		—		—		493
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	—	$	63,542	$	18,547	$	—	$	—	$	—	$	—	$	—	$	82,089
Construction and development
Pass	$	177,013	$	452,444	$	447,683	$	201,983	$	41,299	$	107,465	$	19,842	$	—	$	1,447,729
Special mention	—		1,051		—		3,583		17,951		2,001		—		—		24,586
Substandard accrual	—		—		8,458		310		11,743		12,603		—		—		33,114
Substandard nonaccrual/doubtful	—		—		—		—		—		889		—		—		889
Total construction and development	$	177,013	$	453,495	$	456,141	$	205,876	$	70,993	$	122,958	$	19,842	$	—	$	1,506,318
Non-construction
Pass	$	954,387	$	1,534,813	$	1,061,773	$	871,589	$	667,917	$	2,356,129	$	153,903	$	3,425	$	7,603,936
Special mention	4,405		3,881		7,518		37,670		48,762		93,106		—		—		195,342
Substandard accrual	—		—		—		18,124		26,759		46,897		—		—		91,780
Substandard nonaccrual/doubtful	—		—		—		—		—		9,829		—		—		9,829
Total non-construction	$	958,792	$	1,538,694	$	1,069,291	$	927,383	$	743,438	$	2,505,961	$	153,903	$	3,425	$	7,900,887
Home equity
Pass	$	—	$	—	$	—	$	56	$	—	$	5,352	$	304,216	$	—	$	309,624
Special mention	—		—		—		—		238		61		4,281		—		4,580

Substandard accrual	—		—		—		—		—		8,847		702		989		10,538
Substandard nonaccrual/doubtful	—		—		—		—		43		1,041		—		—		1,084
Total home equity	$	—	$	—	$	—	$	56	$	281	$	15,301	$	309,199	$	989	$	325,826
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	1,021	$	5,575	$	19,486	$	18,474	$	69,300	$	—	$	—	$	113,856
Pass	502,728		839,183		244,861		129,292		53,337		168,254		—		—		1,937,655
Special mention	280		576		169		765		2,046		4,071		—		—		7,907
Substandard accrual	554		1,088		2,936		572		247		5,762		—		—		11,159
Substandard nonaccrual/doubtful	—		93		253		1,858		424		5,702		—		—		8,330
Total residential real estate	$	503,562	$	841,961	$	253,794	$	151,973	$	74,528	$	253,089	$	—	$	—	$	2,078,907
Premium finance receivables - property and casualty
Pass	$	4,519,689	$	899,305	$	13,424	$	4,835	$	302	$	—	$	—	$	—	$	5,437,555
Special mention	77,334		10,917		54		—		—		—		—		—		88,305
Substandard accrual	951		1,333		—		—		—		—		—		—		2,284
Substandard nonaccrual/doubtful	2,540		10,729		34		—		—		—		—		—		13,303
Total premium finance receivables - property and casualty	$	4,600,514	$	922,284	$	13,512	$	4,835	$	302	$	—	$	—	$	—	$	5,541,447
Premium finance receivables - life
Pass	$	170,609	$	654,884	$	982,199	$	854,124	$	732,262	$	4,213,755	$	—	$	—	$	7,607,833
Special mention	—		600		—		—		—		—		—		—		600
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	170,609	$	655,484	$	982,199	$	854,124	$	732,262	$	4,213,755	$	—	$	—	$	7,608,433
Consumer and other
Pass	$	1,347	$	2,141	$	522	$	787	$	928	$	11,500	$	26,724	$	—	$	43,949
Special mention	—		2		1		5		—		120		7		—		135
Substandard accrual	—		6		1		—		—		72		9		—		88
Substandard nonaccrual/doubtful	—		7		—		1		—		—		—		—		8
Total consumer and other	$	1,347	$	2,156	$	524	$	793	$	928	$	11,692	$	26,740	$	—	$	44,180
Total loans
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	1,021	$	5,575	$	19,486	$	18,474	$	69,300	$	—	$	—	$	113,856
Pass	7,585,957		7,011,737		4,047,492		2,821,345		2,054,174		7,825,801		4,513,029		48,430		35,907,965
Special mention	87,294		57,798		46,680		104,133		123,299		141,606		86,706		235		647,751
Substandard accrual	3,498		45,831		38,038		37,270		46,203		82,352		63,400		1,060		317,652
Substandard nonaccrual/doubtful	2,540		10,923		3,881		6,588		12,960		21,016		7,971		—		65,879
Total loans	$	7,679,289	$	7,127,310	$	4,141,666	$	2,988,822	$	2,255,110	$	8,140,075	$	4,671,106	$	49,725	$	37,053,103

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 June 30, 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	$	115,000	$	147,797	$	25,000	$	4,007	$	—	$	2,827	$	294,631
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	115,000	$	147,797	$	25,000	$	4,007	$	—	$	2,827	$	294,631
Municipal
1-4 internal grade	$	—	$	7,045	$	285	$	160	$	7,444	$	164,708	$	179,642
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	—	$	7,045	$	285	$	160	$	7,444	$	164,708	$	179,642
Mortgage-backed securities
1-4 internal grade	$	373,230	$	2,517,475	$	—	$	—	$	—	$	—	$	2,890,705
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	373,230	$	2,517,475	$	—	$	—	$	—	$	—	$	2,890,705
Corporate notes
1-4 internal grade	$	4,961	$	—	$	6,011	$	7,355	$	3,223	$	27,024	$	48,574
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	4,961	$	—	$	6,011	$	7,355	$	3,223	$	27,024	$	48,574
Total held-to-maturity securities													$	3,413,552
Less: Allowance for credit losses													(83)
Held-to-maturity securities, net of allowance for credit losses													$	3,413,469

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.

	June 30,		December 31,		June 30,
(In thousands)	2022		2021		2021
Allowance for loan losses	$	251,769	$	247,835	$	261,089
Allowance for unfunded lending-related commitments losses	60,340		51,818		42,942
Allowance for loan losses and unfunded lending-related commitments losses	312,109		299,653		304,031
Allowance for held-to-maturity securities losses	83		78		90
Allowance for credit losses	$	312,192	$	299,731	$	304,121

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 and six months ended June 30, 2022 and 2021 is as follows.

Three months ended June 30, 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	$	120,911	$	144,906	$	10,566	$	9,429	$	14,722	$	634	$	301,168
Other adjustments	—		—		—		—		(56)		—		(56)
Charge-offs	(8,928)		(40)		(192)		—		(2,903)		(253)		(12,316)
Recoveries	996		553		123		6		1,119		23		2,820
Provision for credit losses	29,940		(1,687)		(3,507)		1,044		(5,380)		83		20,493
Allowance for credit losses at period end	$	142,919	$	143,732	$	6,990	$	10,479	$	7,502	$	487	$	312,109
By measurement method:
Individually measured	$	5,674	$	99	$	105	$	790	$	—	$	—	$	6,668
Collectively measured	137,245		143,633		6,885		9,689		7,502		487		305,441
Loans at period end
Individually measured	$	34,892	$	20,377	$	11,876	$	18,333	$	—	$	79	$	85,557
Collectively measured	12,012,213		9,386,828		313,950		1,937,817		13,149,880		44,101		36,844,789
Loans held at fair value	—		—		—		122,757		—		—		122,757

Three months ended June 30, 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	$	95,640	$	181,792	$	11,382	$	14,242	$	17,477	$	676	$	321,209
Other adjustments	—		—		—		—		33		—		33
Charge-offs	(3,237)		(1,412)		(142)		(3)		(2,077)		(104)		(6,975)
Recoveries	902		514		328		36		3,239		34		5,053
Provision for credit losses	5,202		(22,372)		(361)		1,409		1,227		(394)		(15,289)
Allowance for credit losses at period end	$	98,507	$	158,522	$	11,207	$	15,684	$	19,899	$	212	$	304,031
By measurement method:
Individually measured	$	8,625	$	1,257	$	213	$	1,045	$	—	$	77	$	11,217
Collectively measured	89,882		157,265		10,994		14,639		19,899		135		292,814
Loans at period end
Individually measured	$	30,144	$	35,694	$	18,080	$	29,384	$	—	$	552	$	113,854
Collectively measured	11,412,132		8,642,675		351,726		1,445,561		10,881,427		8,472		32,741,993
Loans held at fair value	—		—		—		55,340		—		—		55,340

Six months ended June 30, 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	—		—		—		—		(34)		—		(34)
Charge-offs	(10,342)		(817)		(389)		(466)		(4,581)		(446)		(17,041)
Recoveries	1,534		585		216		11		2,595		72		5,013
Provision for credit losses	32,420		(619)		(3,536)		2,152		(6,337)		438		24,518
Allowance for credit losses at period end	$	142,919	$	143,732	$	6,990	$	10,479	$	7,502	$	487	$	312,109

Six months ended June 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	—		—		—		—		63		—		63
Charge-offs	(15,018)		(2,392)		(142)		(5)		(5,316)		(218)		(23,091)
Recoveries	1,354		714		429		240		5,021		66		7,824
Provision for credit losses	17,959		(83,403)		(517)		2,990		2,354		(58)		(60,675)
Allowance for credit losses at period end	$	98,507	$	158,522	$	11,207	$	15,684	$	19,899	$	212	$	304,031

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 six months ended June 30, 2022 and 2021, respectively, which represent TDRs:

Three months ended June 30, 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	2	$	186	2	$	185	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	14	2,235		14	2,235		10	1,805		—	—		—	—
Total loans	16	$	2,421	16	$	2,420	10	$	1,805	—	$	—	—	$	—

Three months ended June 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	3	$	395	3	$	395	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	3	2,707		2	2,164		1	543		—	—		—	—
Residential real estate and other	10	1,097		10	1,097		2	616		—	—		—	—
Total loans	16	$	4,199	15	$	3,656	3	$	1,159	—	$	—	—	$	—

(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.

Six months ended June 30, 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	5	$	468	4	$	305	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	22	3,143		22	3,143		17	2,567		—	—		—	—
Total loans	29	$	5,518	27	$	4,626	19	$	3,830	4	$	2,154	—	$	—

Six months ended June 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	5	$	546	5	$	546	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	5	2,944		4	2,401		2	656		1	113		—	—
Residential real estate and other	26	2,835		26	2,835		11	1,906		—	—		—	—
Total loans	36	$	6,325	35	$	5,782	13	$	2,562	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 June 30, 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 June 30, 2022			Three Months Ended June 30, 2022			Six months ended June 30, 2022
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	16	$	4,995	10	$	4,469	11	$	4,711
Commercial real estate
Non-construction	2	1,907		—	—		—	—
Residential real estate and other	39	6,159		2	345		2	345
Total loans	57	$	13,061	12	$	4,814	13	$	5,056

(Dollars in thousands)	As of June 30, 2021			Three Months Ended June 30, 2021			Six months ended June 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	14	$	3,875	4	$	1,371	4	$	1,371
Commercial real estate
Non-construction	9	4,090		2	1,176		3	1,383
Residential real estate and other	70	11,418		5	379		5	379
Total loans	93	$	19,383	11	$	2,926	12	$	3,133

(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.