Loans

9 Months Ended

Sep. 30, 2023

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


	September 30,			December 31,			September 30,
(Dollars in thousands)	2023			2022			2022
Balance:
Commercial	$	12,725,473		$	12,549,164		$	12,259,250
Commercial real estate	10,946,180			9,950,947			9,578,184
Home equity	343,258			332,698			328,822
Residential real estate	2,707,603			2,372,383			2,235,459
Premium finance receivables
Property and casualty insurance	6,722,747			5,849,459			5,713,340
Life insurance	7,931,808			8,090,998			8,004,856
Consumer and other	68,963			50,836			47,702
Total loans, net of unearned income	$	41,446,032		$	39,196,485		$	38,167,613
Mix:
Commercial	31		%	32		%	32		%
Commercial real estate	26			25			25
Home equity	1			1			1
Residential real estate	7			6			6
Premium finance receivables
Property and casualty insurance	16			15			15
Life insurance	19			21			21
Consumer and other	0			0			0
Total loans, net of unearned income	100		%	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 $264.5 million at September 30, 2023, $224.5 million at December 31, 2022 and $180.1 million at September 30, 2022.

Total loans, excluding purchased credit deteriorated (“PCD”) loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $67.6 million at September 30, 2023, $71.8 million at December 31, 2022 and $73.1 million at September 30, 2022.

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