Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 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 September 30, 2022, December 31, 2021 and September 30, 2021:

As of September 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	$	44,293	$	237	$	23,209	$	31,640	$	12,116,213	$	12,215,592
Commercial PPP loans	—		—		1,432		3,277		38,949		43,658
Commercial real estate
Construction and development	889		—		—		5,715		1,518,907		1,525,511
Non-construction	9,588		—		6,041		24,256		8,012,788		8,052,673
Home equity	1,320		—		125		848		326,529		328,822
Residential real estate, excluding early buy-out loans	9,787		—		2,149		15		2,074,844		2,086,795
Premium finance receivables
Property and casualty insurance loans	13,026		16,624		15,301		21,128		5,647,261		5,713,340
Life insurance loans	—		1,831		13,628		44,954		7,944,443		8,004,856
Consumer and other	7		31		26		343		47,295		47,702
Total loans, net of unearned income, excluding early buy-out loans	$	78,910	$	18,723	$	61,911	$	132,176	$	37,727,229	$	38,018,949
Early buy-out loans guaranteed by U.S. government agencies (1)	24,020		68,067		489		104		55,984		148,664
Total loans, net of unearned income	$	102,930	$	86,790	$	62,400	$	132,280	$	37,783,213	$	38,167,613

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 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, excluding early buy-out loans	22,633		—		1,540		1,076		1,495,501		1,520,750
Premium finance receivables
Property and casualty 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, excluding early buy-out loans	$	83,940	$	6,101	$	32,863	$	128,764	$	32,985,389	$	33,237,057
Early buy-out loans guaranteed by U.S. government agencies (1)	—		—		—		—		26,986		26,986
Total loans, net of unearned income	$	83,940	$	6,101	$	32,863	$	128,764	$	33,012,375	$	33,264,043

(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 September 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	$	1,871,088	$	2,485,791	$	1,166,137	$	695,054	$	517,699	$	899,602	$	4,088,668	$	46,525	$	11,770,564
Special mention	17,507		47,497		10,996		40,081		39,599		15,177		99,424		90		270,371
Substandard accrual	1,783		41,724		25,692		12,938		6,837		3,681		37,709		—		130,364
Substandard nonaccrual/doubtful	125		370		4,035		29,497		1,224		5,158		3,813		71		44,293
Total commercial, industrial and other	$	1,890,503	$	2,575,382	$	1,206,860	$	777,570	$	565,359	$	923,618	$	4,229,614	$	46,686	$	12,215,592
Commercial PPP
Pass	$	—	$	30,126	$	7,963	$	—	$	—	$	—	$	—	$	—	$	38,089
Special mention	—		2,484		289		—		—		—		—		—		2,773
Substandard accrual	—		2,324		472		—		—		—		—		—		2,796
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total commercial PPP	$	—	$	34,934	$	8,724	$	—	$	—	$	—	$	—	$	—	$	43,658
Construction and development
Pass	$	272,843	$	490,456	$	380,020	$	172,107	$	37,778	$	99,876	$	14,783	$	—	$	1,467,863
Special mention	—		—		12,647		3,554		19,460		84		—		—		35,745
Substandard accrual	—		—		8,407		—		—		12,607		—		—		21,014
Substandard nonaccrual/doubtful	—		—		—		—		—		889		—		—		889
Total construction and development	$	272,843	$	490,456	$	401,074	$	175,661	$	57,238	$	113,456	$	14,783	$	—	$	1,525,511
Non-construction
Pass	$	1,340,763	$	1,521,514	$	1,037,513	$	883,456	$	621,687	$	2,243,859	$	153,330	$	5,325	$	7,807,447
Special mention	4,349		3,954		6,408		15,119		41,036		80,760		—		—		151,626
Substandard accrual	—		—		836		14,286		26,236		42,654		—		—		84,012
Substandard nonaccrual/doubtful	—		—		—		—		114		9,474		—		—		9,588
Total non-construction	$	1,345,112	$	1,525,468	$	1,044,757	$	912,861	$	689,073	$	2,376,747	$	153,330	$	5,325	$	8,052,673
Home equity
Pass	$	—	$	—	$	—	$	56	$	—	$	5,122	$	307,969	$	—	$	313,147
Special mention	—		—		—		—		237		100		3,785		—		4,122

Substandard accrual	—		—		—		—		—		8,520		793		920		10,233
Substandard nonaccrual/doubtful	—		—		—		18		—		1,302		—		—		1,320
Total home equity	$	—	$	—	$	—	$	74	$	237	$	15,044	$	312,547	$	920	$	328,822
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	1,365	$	10,109	$	24,173	$	21,038	$	91,979	$	—	$	—	$	148,664
Pass	654,064		838,127		231,989		123,610		52,724		156,557		—		—		2,057,071
Special mention	1,275		2,454		166		966		1,399		5,068		—		—		11,328
Substandard accrual	679		524		2,903		—		319		4,184		—		—		8,609
Substandard nonaccrual/doubtful	113		362		781		2,210		406		5,915		—		—		9,787
Total residential real estate	$	656,131	$	842,832	$	245,948	$	150,959	$	75,886	$	263,703	$	—	$	—	$	2,235,459
Premium finance receivables - property and casualty
Pass	$	5,416,268	$	172,151	$	9,279	$	2,651	$	53	$	—	$	—	$	—	$	5,600,402
Special mention	92,043		3,822		84		—		—		—		—		—		95,949
Substandard accrual	1,033		2,890		40		—		—		—		—		—		3,963
Substandard nonaccrual/doubtful	9,206		3,814		6		—		—		—		—		—		13,026
Total premium finance receivables - property and casualty	$	5,518,550	$	182,677	$	9,409	$	2,651	$	53	$	—	$	—	$	—	$	5,713,340
Premium finance receivables - life
Pass	$	389,968	$	717,377	$	1,030,974	$	900,998	$	751,341	$	4,214,198	$	—	$	—	$	8,004,856
Special mention	—		—		—		—		—		—		—		—		—
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	389,968	$	717,377	$	1,030,974	$	900,998	$	751,341	$	4,214,198	$	—	$	—	$	8,004,856
Consumer and other
Pass	$	2,179	$	1,822	$	438	$	539	$	390	$	9,029	$	33,084	$	—	$	47,481
Special mention	—		6		—		4		—		115		4		—		129
Substandard accrual	—		4		1		—		—		71		9		—		85
Substandard nonaccrual/doubtful	—		6		—		1		—		—		—		—		7
Total consumer and other	$	2,179	$	1,838	$	439	$	544	$	390	$	9,215	$	33,097	$	—	$	47,702
Total loans
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	1,365	$	10,109	$	24,173	$	21,038	$	91,979	$	—	$	—	$	148,664
Pass	9,947,173		6,257,364		3,864,313		2,778,471		1,981,672		7,628,243		4,597,834		51,850		37,106,920
Special mention	115,174		60,217		30,590		59,724		101,731		101,304		103,213		90		572,043
Substandard accrual	3,495		47,466		38,351		27,224		33,392		71,717		38,511		920		261,076
Substandard nonaccrual/doubtful	9,444		4,552		4,822		31,726		1,744		22,738		3,813		71		78,910
Total loans	$	10,075,286	$	6,370,964	$	3,948,185	$	2,921,318	$	2,139,577	$	7,915,981	$	4,743,371	$	52,931	$	38,167,613

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, 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	$	135,000	$	147,799	$	25,000	$	4,000	$	—	$	2,819	$	314,618
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total U.S. government agencies	$	135,000	$	147,799	$	25,000	$	4,000	$	—	$	2,819	$	314,618
Municipal
1-4 internal grade	$	—	$	7,023	$	275	$	160	$	7,423	$	165,423	$	180,304
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	—	$	7,023	$	275	$	160	$	7,423	$	165,423	$	180,304
Mortgage-backed securities
1-4 internal grade	$	369,719	$	2,477,108	$	—	$	—	$	—	$	—	$	2,846,827
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	369,719	$	2,477,108	$	—	$	—	$	—	$	—	$	2,846,827
Corporate notes
1-4 internal grade	$	4,962	$	—	$	6,010	$	7,334	$	3,203	$	26,894	$	48,403
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	4,962	$	—	$	6,010	$	7,334	$	3,203	$	26,894	$	48,403
Total held-to-maturity securities													$	3,390,152
Less: Allowance for credit losses													(310)
Held-to-maturity securities, net of allowance for credit losses													$	3,389,842

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.

	September 30,		December 31,		September 30,
(In thousands)	2022		2021		2021
Allowance for loan losses	$	246,110	$	247,835	$	248,612
Allowance for unfunded lending-related commitments losses	68,918		51,818		47,443
Allowance for loan losses and unfunded lending-related commitments losses	315,028		299,653		296,055
Allowance for held-to-maturity securities losses	310		78		83
Allowance for credit losses	$	315,338	$	299,731	$	296,138

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 nine months ended September 30, 2022 and 2021 is as follows.

Three months ended September 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	$	142,919	$	143,732	$	6,990	$	10,479	$	7,502	$	487	$	312,109
Other adjustments	—		—		—		—		(105)		—		(105)
Charge-offs	(780)		(24)		(43)		(5)		(6,037)		(635)		(7,524)
Recoveries	2,523		55		38		60		1,648		31		4,355
Provision for credit losses	(9,346)		6,955		70		489		7,424		601		6,193
Allowance for credit losses at period end	$	135,316	$	150,718	$	7,055	$	11,023	$	10,432	$	484	$	315,028
By measurement method:
Individually measured	$	8,866	$	378	$	71	$	727	$	—	$	1	$	10,043
Collectively measured	126,450		150,340		6,984		10,296		10,432		483		304,985
Loans at period end
Individually measured	$	46,547	$	27,882	$	11,421	$	19,440	$	—	$	75	$	105,365
Collectively measured	12,212,703		9,550,302		317,401		2,059,126		13,718,196		47,627		37,905,355
Loans held at fair value	—		—		—		156,893		—		—		156,893

Three months ended September 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	$	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
By measurement method:
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

Nine months ended September 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	—		—		—		—		(139)		—		(139)
Charge-offs	(11,122)		(841)		(432)		(471)		(10,618)		(1,081)		(24,565)
Recoveries	4,057		640		254		71		4,243		103		9,368
Provision for credit losses	23,074		6,336		(3,466)		2,641		1,087		1,039		30,711
Allowance for credit losses at period end	$	135,316	$	150,718	$	7,055	$	11,023	$	10,432	$	484	$	315,028

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

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 nine months ended September 30, 2022 and 2021, respectively, which represent TDRs:

Three months ended September 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	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Commercial real estate
Non-construction	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	7	708		7	708		3	435		—	—		—	—
Total loans	7	$	708	7	$	708	3	$	435	—	$	—	—	$	—

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	—	$	—	—	$	—

(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, 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	29	3,851		29	3,851		20	3,002		—	—		—	—
Total loans	36	$	6,226	34	$	5,334	22	$	4,265	4	$	2,154	—	$	—

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	—	$	—

(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, 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 September 30, 2022			Three Months Ended September 30, 2022			Nine months ended September 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	15	$	4,995	10	$	4,469	11	$	4,710
Commercial real estate
Non-construction	2	1,907		—	—		—	—
Residential real estate and other	39	6,310		3	598		3	598
Total loans	56	$	13,212	13	$	5,067	14	$	5,308

(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

(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.