Loans

12 Months Ended

Dec. 31, 2022

Loans and Leases Receivable Disclosure [Abstract]

Loans

Loans

The following table shows the Company’s loan portfolio by category as of the dates shown:

(Dollars in thousands)	December 31, 2022			December 31, 2021
Balance:
Commercial	$	12,549,164		$	11,904,068
Commercial real estate	9,950,947			8,990,286
Home equity	332,698			335,155
Residential real estate	2,372,383			1,637,099
Premium finance receivables—property & casualty	5,849,459			4,855,487
Premium finance receivables—life insurance	8,090,998			7,042,810
Consumer and other	50,836			24,199
Total loans, net of unearned income	$	39,196,485		$	34,789,104
Mix:
Commercial	32		%	34		%
Commercial real estate	25			26
Home equity	1			1
Residential real estate	6			5
Premium finance receivables—property & casualty	15			14
Premium finance receivables—life insurance	21			20
Consumer and other	0			0
Total loans, net of unearned income	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. 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 $224.5 million and $135.5 million at December 31, 2022 and 2021, respectively.

Total loans, excluding PCD loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $71.8 million at December 31, 2022 and $50.8 million at December 31, 2021.

Certain real estate loans, including mortgage loans held-for-sale, commercial, consumer, and home equity loans with balances totaling approximately $8.2 billion and $8.0 billion at December 31, 2022 and 2021, respectively, were pledged as collateral to secure the availability of borrowings from certain federal agency banks. At December 31, 2022, approximately $7.8 billion of these pledged loans are included in a blanket pledge of qualifying loans to the FHLB. The remaining $409.1 million of pledged loans was used to secure potential borrowings at the FRB discount window. At December 31, 2022 and 2021, the banks had outstanding borrowings of $2.3 billion and $1.2 billion, respectively, from the FHLB in connection with these collateral arrangements. See Note (11) “Federal Home Loan Bank Advances” for a summary of these borrowings.

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 assure access to collateral, in the event of default, through adherence to state lending laws and the Company’s credit monitoring procedures.