Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31, 2023, December 31, 2022 and March 31, 2022:

As of March 31, 2023			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	$	47,950	$	—	$	10,755	$	95,593	$	12,422,687	$	12,576,985
Commercial real estate
Construction and development	5,404		—		4,438		19,616		1,567,595		1,597,053
Non-construction	5,792		—		16,101		53,064		8,567,068		8,642,025
Home equity	1,190		—		116		1,118		334,592		337,016
Residential real estate, excluding early buy-out loans	11,333		104		74		19,183		2,278,699		2,309,393
Premium finance receivables
Property and casualty insurance loans	18,543		9,215		14,287		32,545		5,664,290		5,738,880
Life insurance loans	—		1,066		21,552		52,975		8,050,209		8,125,802
Consumer and other	6		87		10		379		41,683		42,165
Total loans, net of unearned income, excluding early buy-out loans	$	90,218	$	10,472	$	67,333	$	274,473	$	38,926,823	$	39,369,319
Early buy-out loans guaranteed by U.S. government agencies (1)	29,245		36,920		—		1,485		128,502		196,152
Total loans, net of unearned income	$	119,463	$	47,392	$	67,333	$	275,958	$	39,055,325	$	39,565,471

As of December 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	$	35,579	$	462	$	21,128	$	56,696	$	12,435,299	$	12,549,164
Commercial real estate
Construction and development	416		—		361		14,390		1,471,763		1,486,930
Non-construction	5,971		—		1,883		16,285		8,439,878		8,464,017
Home equity	1,487		—		—		2,152		329,059		332,698
Residential real estate, excluding early buy-out loans	10,171		—		4,364		9,982		2,183,078		2,207,595
Premium finance receivables
Property and casualty insurance loans	13,470		15,841		14,926		40,557		5,764,665		5,849,459
Life insurance loans	—		17,245		5,260		68,725		7,999,768		8,090,998
Consumer and other	6		49		18		224		50,539		50,836
Total loans, net of unearned income, excluding early buy-out loans	$	67,100	$	33,597	$	47,940	$	209,011	$	38,674,049	$	39,031,697
Early buy-out loans guaranteed by U.S. government agencies (1)	31,279		47,450		984		1,584		83,491		164,788
Total loans, net of unearned income	$	98,379	$	81,047	$	48,924	$	210,595	$	38,757,540	$	39,196,485

(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.

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	$	16,878	$	—	$	1,294	$	31,889	$	11,533,902	$	11,583,963
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

(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, 2023:

	Year of Origination														Revolving		Total
(In thousands)	2023		2022		2021		2020		2019		Prior		Revolving		to Term		Loans
Loan Balances:
Commercial, industrial and other
Pass	$	752,119	$	2,576,073	$	2,081,628	$	940,341	$	603,016	$	1,213,066	$	3,872,419	$	3,497	$	12,042,159
Special mention	402		55,314		92,315		9,462		23,220		10,695		149,012		268		340,688
Substandard accrual	—		13,415		40,397		2,401		12,670		40,814		36,035		456		146,188
Substandard nonaccrual/doubtful	—		550		5,479		10,985		28,490		2,215		231		—		47,950
Total commercial, industrial and other	$	752,521	$	2,645,352	$	2,219,819	$	963,189	$	667,396	$	1,266,790	$	4,057,697	$	4,221	$	12,576,985
Construction and development
Pass	$	42,635	$	506,714	$	512,801	$	204,113	$	111,497	$	119,478	$	12,626	$	369	$	1,510,233
Special mention	—		—		1,475		16,480		23,494		14,360		—		—		55,809
Substandard accrual	—		2,337		—		8,301		—		14,969		—		—		25,607
Substandard nonaccrual/doubtful	—		4,190		798		—		—		416		—		—		5,404
Total construction and development	$	42,635	$	513,241	$	515,074	$	228,894	$	134,991	$	149,223	$	12,626	$	369	$	1,597,053
Non-construction
Pass	$	472,528	$	1,862,370	$	1,441,054	$	1,002,397	$	814,910	$	2,637,342	$	184,246	$	649	$	8,415,496
Special mention	—		4,351		11,872		2,140		29,868		74,174		1,439		—		123,844
Substandard accrual	—		—		3,163		22,041		16,827		54,862		—		—		96,893
Substandard nonaccrual/doubtful	—		—		—		—		—		5,792		—		—		5,792
Total non-construction	$	472,528	$	1,866,721	$	1,456,089	$	1,026,578	$	861,605	$	2,772,170	$	185,685	$	649	$	8,642,025
Home equity
Pass	$	—	$	—	$	—	$	—	$	56	$	5,633	$	317,387	$	—	$	323,076
Special mention	—		—		—		—		—		1,430		2,193		—		3,623
Substandard accrual	—		—		—		—		—		8,214		869		44		9,127
Substandard nonaccrual/doubtful	—		—		77		116		18		880		99		—		1,190
Total home equity	$	—	$	—	$	77	$	116	$	74	$	16,157	$	320,548	$	44	$	337,016
Residential real estate
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	—	$	769	$	9,250	$	19,430	$	166,703	$	—	$	—	$	196,152
Pass	95,403		815,003		825,881		225,297		118,840		196,150		—		—		2,276,574

Special mention	40		3,816		718		1,992		542		4,488		—		—		11,596
Substandard accrual	323		1,204		1,825		1,182		1,100		4,256		—		—		9,890
Substandard nonaccrual/doubtful	—		284		1,100		759		1,665		7,525		—		—		11,333
Total residential real estate	$	95,766	$	820,307	$	830,293	$	238,480	$	141,577	$	379,122	$	—	$	—	$	2,505,545
Premium finance receivables - property and casualty
Pass	$	2,826,947	$	2,757,313	$	35,647	$	5,270	$	906	$	—	$	—	$	—	$	5,626,083
Special mention	42,025		49,190		969		17		—		—		—		—		92,201
Substandard accrual	205		1,700		148		—		—		—		—		—		2,053
Substandard nonaccrual/doubtful	777		16,975		779		12		—		—		—		—		18,543
Total premium finance receivables - property and casualty	$	2,869,954	$	2,825,178	$	37,543	$	5,299	$	906	$	—	$	—	$	—	$	5,738,880
Premium finance receivables - life
Pass	$	49,164	$	550,396	$	830,917	$	1,056,414	$	936,674	$	4,699,645	$	—	$	—	$	8,123,210
Special mention	—		—		1,156		1,436		—		—		—		—		2,592
Substandard accrual	—		—		—		—		—		—		—		—		—
Substandard nonaccrual/doubtful	—		—		—		—		—		—		—		—		—
Total premium finance receivables - life	$	49,164	$	550,396	$	832,073	$	1,057,850	$	936,674	$	4,699,645	$	—	$	—	$	8,125,802
Consumer and other
Pass	$	750	$	2,469	$	1,414	$	200	$	433	$	5,306	$	31,392	$	—	$	41,964
Special mention	—		6		1		—		2		133		3		—		145
Substandard accrual	—		2		—		—		—		40		8		—		50
Substandard nonaccrual/doubtful	—		—		6		—		—		—		—		—		6
Total consumer and other	$	750	$	2,477	$	1,421	$	200	$	435	$	5,479	$	31,403	$	—	$	42,165
Total loans
Early buy-out loans guaranteed by U.S. government agencies	$	—	$	—	$	769	$	9,250	$	19,430	$	166,703	$	—	$	—	$	196,152
Pass	4,239,546		9,070,338		5,729,342		3,434,032		2,586,332		8,876,620		4,418,070		4,515		38,358,795
Special mention	42,467		112,677		108,506		31,527		77,126		105,280		152,647		268		630,498
Substandard accrual	528		18,658		45,533		33,925		30,597		123,155		36,912		500		289,808
Substandard nonaccrual/doubtful	777		21,999		8,239		11,872		30,173		16,828		330		—		90,218
Total loans	$	4,283,318	$	9,223,672	$	5,892,389	$	3,520,606	$	2,743,658	$	9,288,586	$	4,607,959	$	5,283	$	39,565,471
Current period gross write offs	$	478	$	4,893	$	1,194	$	337	$	318	$	131	$	—	$	—	$	7,351

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, 2023	Year of Origination												Total
(In thousands)	2023		2022		2021		2020		2019		Prior		Balance
Amortized Cost Balances:
U.S. government agencies
1-4 internal grade	$	—	$	160,000	$	147,804	$	25,000	$	4,000	$	2,804	$	339,608
5-7 internal grade													—
8-10 internal grade													—
Total U.S. government agencies	$	—	$	160,000	$	147,804	$	25,000	$	4,000	$	2,804	$	339,608
Municipal
1-4 internal grade	$	—	$	1,042	$	6,978	$	264	$	618	$	165,818	$	174,720
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total municipal	$	—	$	1,042	$	6,978	$	264	$	618	$	165,818	$	174,720
Mortgage-backed securities
1-4 internal grade	$	5,065	$	606,922	$	2,422,478	$	—	$	—	$	—	$	3,034,465
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total mortgage-backed securities	$	5,065	$	606,922	$	2,422,478	$	—	$	—	$	—	$	3,034,465
Corporate notes
1-4 internal grade	$	—	$	14,964	$	—	$	6,009	$	7,291	$	29,797	$	58,061
5-7 internal grade	—		—		—		—		—		—		—
8-10 internal grade	—		—		—		—		—		—		—
Total corporate notes	$	—	$	14,964	$	—	$	6,009	$	7,291	$	29,797	$	58,061
Total held-to-maturity securities													$	3,606,854
Less: Allowance for credit losses													(463)
Held-to-maturity securities, net of allowance for credit losses													$	3,606,391

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)	2023		2022		2022
Allowance for loan losses	$	287,972	$	270,173	$	250,539
Allowance for unfunded lending-related commitments losses	87,826		87,275		50,629
Allowance for loan losses and unfunded lending-related commitments losses	375,798		357,448		301,168
Allowance for held-to-maturity securities losses	463		488		159
Allowance for credit losses	$	376,261	$	357,936	$	301,327

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 three months ended March 31, 2023 and 2022 is as follows.

Three months ended March 31, 2023			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	$	142,769	$	184,352	$	7,573	$	11,585	$	10,671	$	498	$	357,448
Cumulative effect adjustment from the adoption of ASU 2022-02	111		1,356		(33)		(692)		—		(1)		741
Other adjustments	—		—		—		—		4		—		4
Charge-offs	(2,543)		(5)		—		—		(4,650)		(153)		(7,351)
Recoveries	392		100		35		4		1,323		32		1,886
Provision for credit losses	8,772		8,977		153		537		4,607		24		23,070
Allowance for credit losses at period end	$	149,501	$	194,780	$	7,728	$	11,434	$	11,955	$	400	$	375,798
By measurement method:
Individually measured	$	11,281	$	1,621	$	—	$	—	$	—	$	1	$	12,903
Collectively measured	138,220		193,159		7,728		11,434		11,955		399		362,895
Loans at period end
Individually measured	$	47,950	$	11,196	$	1,190	$	11,280	$	—	$	6	$	71,622
Collectively measured	12,529,035		10,227,882		335,826		2,286,733		13,864,682		42,159		39,286,317
Loans held at fair value	—		—		—		207,532		—		—		207,532

Three months ended March 31, 2022	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	$	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

Summary of the Post-Modification Balance of Loans Experiencing Financial Difficulties

The table below presents a summary of the balance immediately following the modification of loans to borrowers experiencing financial difficulties during the three months ended March 31, 2023:

Three months ended March 31, 2023  (Dollars in thousands)	Total (1)		Percentage of Total Class of Loan		Extension of Term (1)		Reduction of  Interest Rate (1)			Delay in Contractual Payments (1)		Extension of Term and Reduction of Interest Rate (1)
Commercial
Commercial, industrial and other	$	37,474	0.3	%	$	1,938	$	221		$	35,265	$	50
Commercial real estate
Non-construction	1,333		—		467		827			39		—
Home equity	203		0.1		203		—			—		—
Residential real estate	1,708		0.1		1,253		271			—		184
Premium finance receivables
Property and casualty insurance loans	11		0.0		3		—			—		8
Total loans	$	40,729	0.1	%	$	3,864	$	1,319		$	35,304	$	242
Weighted average magnitude of modifications:
Duration of extension and delayed payment terms					27 months					17 months
Reduction of interest rate							275		bps

(1)Balances represent the recorded investment in the loan at the time of the restructuring.

Summary of Loans for Borrowers Experiencing Financial Difficulties Modified

The following table presents a summary of all loans for borrowers experiencing financial difficulties modified during the three months ended March 31, 2023, and such loans that were in payment default under the restructured terms during the respective periods below:

(Dollars in thousands)	As of March 31, 2023		Three Months Ended March 31, 2023
	Total (2)		Payments in Default  (1)(2)
Commercial
Commercial, industrial and other	$	37,474	$	2
Commercial real estate
Non-construction	1,333		828
Home equity	203		104
Residential real estate	1,708		—
Premium finance receivables
Property and casualty insurance loans	11		11
Total loans	$	40,729	$	945

(1)Modified loans considered to be in payment default are over 30 days past due subsequent to the restructuring.

(2)Balances represent the recorded investment in the loan at the time of the restructuring.

Summary of the Post-Modification Balance of Loans Restructured

The table below presents a summary of the balance immediately following the modification of loans restructured during the three months ended March 31, 2022 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	—	$	—

(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 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
	Total (1)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	17	$	5,205	11	$	4,526
Commercial real estate
Non-construction	5	4,613		2	2,163
Residential real estate and other	35	5,021		1	104
Total loans	57	$	14,839	14	$	6,793

(1)Total TDRs represent all loans restructured om 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.