Loans

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Loans

Loans

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

(Dollars in thousands)	December 31, 2023			December 31, 2022
Balance:
Commercial	$	12,832,053		$	12,549,164
Commercial real estate	11,344,164			9,950,947
Home equity	343,976			332,698
Residential real estate	2,769,666			2,372,383
Premium finance receivables—property & casualty	6,903,529			5,849,459
Premium finance receivables—life insurance	7,877,943			8,090,998
Consumer and other	60,500			50,836
Total loans, net of unearned income	$	42,131,831		$	39,196,485
Mix:
Commercial	30		%	32		%
Commercial real estate	27			25
Home equity	1			1
Residential real estate	7			6
Premium finance receivables—property & casualty	16			15
Premium finance receivables—life insurance	19			21
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 $285.4 million and $224.5 million at December 31, 2023 and 2022, respectively.

Total loans, excluding PCD loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $84.2 million at December 31, 2023 and $71.8 million at December 31, 2022.

Certain real estate loans, including mortgage loans held-for-sale, commercial, consumer, and home equity loans with balances totaling approximately $21.1 billion and $8.2 billion at December 31, 2023 and 2022, respectively, were pledged as collateral to secure the availability of borrowings from certain federal agency banks. At December 31, 2023, approximately $12.8 billion of these pledged loans are included in a pledge of qualifying loans to the FHLB. The remaining $8.3 billion of pledged loans was used to secure potential borrowings at the FRB discount window. At December 31, 2023 and 2022, the banks had outstanding borrowings of $2.3 billion 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.