Loans

6 Months Ended

Jun. 30, 2024

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


	June 30,			December 31,			June 30,
(Dollars in thousands)	2024			2023			2023
Balance:
Commercial	$	14,154,462		$	12,832,053		$	12,600,471
Commercial real estate	11,947,197			11,344,164			10,608,811
Home equity	356,313			343,976			336,974
Residential real estate	3,067,335			2,769,666			2,643,240

Premium finance receivables—property & casualty	7,100,753			6,903,529			6,762,698
Premium finance receivables—life insurance	7,962,115			7,877,943			8,039,273
Consumer and other	87,356			60,500			31,941
Total loans, net of unearned income	$	44,675,531		$	42,131,831		$	41,023,408
Mix:
Commercial	31		%	30		%	31		%
Commercial real estate	27			27			26
Home equity	1			1			1
Residential real estate	7			7			6

Premium finance receivables—property & casualty	16			16			16
Premium finance receivables—life insurance	18			19			20
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 franchise lending and insurance agency 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 $248.3 million at June 30, 2024, $285.4 million at December 31, 2023 and $281.7 million at June 30, 2023.

Total loans, excluding purchased credit deteriorated (“PCD”) loans, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $89.6 million at June 30, 2024, $84.2 million at December 31, 2023 and $72.8 million at June 30, 2023.

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.