Allowance for Credit Losses and Credit Quality

12 Months Ended

Dec. 31, 2020

Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]

Allowance for Credit Losses and Credit Quality

Allowance for Credit Losses and Credit Quality

Effective January 1, 2020, the Corporation adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and related ASUs on a modified retrospective basis. Financial information at December 31, 2020 reflects this adoption, and historical financial information disclosed is in accordance with ASC Topic 310 and ASC Topic 450.

Allowance for Credit Losses The rollforwards of the allowance for credit losses were as follows:

(In thousands)	Consumer Loan Portfolio		Commercial Loan and Lease Portfolio		Total Allowance for Loans and Leases		Reserve for Unfunded Lending Commitments(1)		Total Allowance for Credit Losses
Year ended December 31, 2020
Balance, beginning of period	$	28,572	$	84,480	$	113,052	$	3,528	$	116,580
Impact of CECL adoption	107,337		98,655		205,992		14,707		220,699
Adjusted balance, beginning of period	135,909		183,135		319,044		18,235		337,279
Charge-offs	(23,270)		(63,245)		(86,515)		—		(86,515)
Recoveries	15,527		25,905		41,432		—		41,432
Net (charge-offs) recoveries	(7,743)		(37,340)		(45,083)		—		(45,083)
Provision for credit losses(2)	8,773		243,300		252,073		5,078		257,151
Other	(45)		(121)		(166)		—		(166)
Balance, end of period	$	136,894	$	388,974	$	525,868	$	23,313	$	549,181
Year ended December 31, 2019
Balance, beginning of period	$	80,017	$	77,429	$	157,446	$	1,428	$	158,874
Charge-offs	(50,480)		(47,455)		(97,935)		—		$	(97,935)
Recoveries	23,653		6,731		30,384		—		30,384
Net (charge-offs) recoveries	(26,827)		(40,724)		(67,551)		—		(67,551)
Provision for credit losses(2)	17,492		47,790		65,282		233		65,515
Other(3)	(42,110)		(15)		(42,125)		—		(42,125)
Addition due to merger	—		—		—		1,867		1,867
Balance, end of period	$	28,572	$	84,480	$	113,052	$	3,528	$	116,580
Year ended December 31, 2018
Balance, beginning of period	$	98,085	$	72,956	$	171,041	$	1,479	$	172,520
Charge-offs	(64,520)		(20,208)		(84,728)		—		$	(84,728)
Recoveries	26,487		3,216		29,703		—		$	29,703
Net (charge-offs) recoveries	(38,033)		(16,992)		(55,025)		—		(55,025)
Provision for credit losses(2)	24,851		21,917		46,768		(51)		$	46,717
Other(3)	(4,886)		(452)		(5,338)		—		(5,338)
Balance, end of period	$	80,017	$	77,429	$	157,446	$	1,428	$	158,874

(1)RULC is recognized within other liabilities.

(2)As a result of the adoption of CECL, effective January 1, 2020, the provision for credit losses includes the provision for unfunded lending commitments that was previously included within other noninterest expense.

(3)Primarily includes the transfer of the allowance for credit losses to loans and leases held-for-sale.

Management considers our ACL of $549.2 million, or 1.59% of total loans and leases, appropriate to cover current credit losses expected to be incurred in the loan and lease portfolios over the remaining expected life of each financial asset at December 31, 2020, including loans and leases which are not currently known to require specific allowances. The increase in ACL and the ACL as a percentage of total loans and leases from December 31, 2019 was primarily due to the adoption of CECL at January 1, 2020, and the impact of COVID-19. During 2020 the COVID-19 pandemic had a negative impact on current and forecasted macroeconomic conditions and created uncertainty around the performance of certain sectors that have been more heavily impacted, including motor coach, shuttle bus, hotel, retail commercial real estate, franchise, retail trade and fitness. In the fourth quarter of 2020, we began to see improvement in current and forecasted macro-economic conditions, however, these improvements were offset by continued uncertainty around the performance of sectors more heavily impacted by COVID-19. PPP loans are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans.

The following tables provide additional disclosures previously required by ASC Topic 310 related to the Corporation's December 31, 2019 balances.

The allowance for loan and lease losses and loans and leases outstanding by type of allowance methodology was as follows:

	At December 31, 2019
(In thousands)	Consumer Loan Portfolio		Commercial Loan and Lease Portfolio		Total Loans and Leases
Allowance for loan and lease losses
Collectively evaluated for impairment	$	26,430	$	75,756	$	102,186
Individually evaluated for impairment	1,468		5,769		7,237
Loans acquired with deteriorated credit quality	674		2,955		3,629
Total	$	28,572	$	84,480	$	113,052
Loans and leases outstanding
Collectively evaluated for impairment	$	11,087,534	$	22,986,607	$	34,074,141
Individually evaluated for impairment	60,694		115,843		176,537
Loans acquired with deteriorated credit quality	72,895		173,891		246,786
Total	$	11,221,123	$	23,276,341	$	34,497,464

Information on impaired loans and leases at December 31, 2019 was as follows:

	At December 31, 2019
(In thousands)	Unpaid Contractual Balance		Loan and Lease Balance		Related Allowance Recorded
Impaired loans and leases with an allowance recorded:
Commercial loan and lease portfolio:
Commercial and industrial	$	20,069	$	20,090	$	2,844
Commercial real estate	4,225		3,962		333
Lease financing	10,956		10,956		2,592
Total commercial loan and lease portfolio	35,250		35,008		5,769
Consumer loan portfolio:
Residential mortgage	24,297		22,250		1,030
Home equity	9,418		8,791		438
Total consumer loan portfolio	33,715		31,041		1,468
Total impaired loans and leases with an allowance recorded	68,965		66,049		7,237
Impaired loans and leases without an allowance recorded:
Commercial loan and lease portfolio:
Commercial and industrial	55,889		39,098		—
Commercial real estate	69,143		41,737		—
Total commercial loan and lease portfolio	125,032		80,835		—
Consumer loan portfolio:
Residential mortgage	31,142		22,594		—
Home equity	24,709		6,179		—
Consumer installment	2,095		880		—
Total consumer loan portfolio	57,946		29,653		—
Total impaired loans and leases without an allowance recorded	182,978		110,488		—
Total impaired loans and leases	$	251,943	$	176,537	$	7,237

Accruing and Nonaccrual Loans and Leases  The Corporation's key credit quality indicator is the receivable's payment performance status, defined as accruing or not accruing. Nonaccrual loans and leases are those which management believes have a higher risk of loss. Delinquent balances are determined based on the contractual terms of the loan or lease. Loans and leases that are over 90 days delinquent are a leading indicator for future charge-off trends and are generally placed on nonaccrual status. In addition, loans and leases that have requested payment deferral under the CARES Act of greater than 180 days are generally placed on nonaccrual status. The Corporation's accruing and nonaccrual loans and leases were as follows:

(In thousands)	Current		30-89 Days Delinquent and Accruing		90 Days or More Delinquent  and Accruing		Total Accruing		Nonaccrual(1)		Total
At December 31, 2020
Commercial loan and lease portfolio:
Commercial and industrial	$	11,119,453	$	42,033	$	1,458	$	11,162,944	$	259,439	$	11,422,383
Commercial real estate	9,453,743		94,383		22		9,548,148		154,439		9,702,587
Lease financing	2,695,356		27,118		3,935		2,726,409		90,822		2,817,231
Total commercial loan and lease portfolio	23,268,552		163,534		5,415		23,437,501		504,700		23,942,201
Consumer loan portfolio:
Residential mortgage	6,065,379		17,048		1,965		6,084,392		97,653		6,182,045
Home equity	3,008,450		30,840		63		3,039,353		69,383		3,108,736
Consumer installment	1,224,059		3,801		—		1,227,860		5,566		1,233,426
Total consumer loan portfolio	10,297,888		51,689		2,028		10,351,605		172,602		10,524,207
Total	$	33,566,440	$	215,223	$	7,443	$	33,789,106	$	677,302	$	34,466,408
At December 31, 2019
Commercial loan and lease portfolio:
Commercial and industrial	$	11,283,832	$	29,780	$	331	$	11,313,943	$	53,812	$	11,367,755
Commercial real estate	8,993,360		10,291		1,440		9,005,091		29,735		9,034,826
Lease financing	2,662,354		24,657		1,901		2,688,912		10,957		2,699,869
Total commercial loan and lease portfolio	22,939,546		64,728		3,672		23,007,946		94,504		23,102,450
Consumer loan portfolio:
Residential mortgage	6,056,817		17,245		559		$	6,074,621	38,577		$	6,113,198
Home equity	3,434,771		22,568		—		3,457,339		35,863		3,493,202
Consumer installment	1,536,714		4,292		108		1,541,114		714		1,541,828
Total consumer loan portfolio	11,028,302		44,105		667		11,073,074		75,154		11,148,228
Purchased credit impaired loans(1)	217,206		3,843		25,737		246,786		$	—	246,786
Total	$	34,185,054	$	112,676	$	30,076	$	34,327,806	$	169,658	$	34,497,464

(1)Prior to the adoption of CECL as of January 1, 2020, purchased credit impaired loans were not classified as nonaccrual loans because they were recorded at their net realizable value based on the principal and interest expected to be collected on the loans. At January 1, 2020, $73.4 million of previous purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL.

The Corporation's nonaccrual loans and leases were as follows:

	At December 31,
	2020				2019
(In thousands)	Total nonaccrual		Nonaccrual with no ACL		Total nonaccrual
Commercial loan and lease portfolio:
Commercial and industrial	$	259,439	$	55,773	$	53,812
Commercial real estate	154,439		79,203		29,735
Lease financing	90,822		—		10,957
Total commercial loan and lease portfolio	504,700		134,976		94,504
Consumer loan portfolio:
Residential mortgage	97,653		49		38,577
Home equity	69,383		23		35,863
Consumer installment	5,566		3,531		714
Total consumer loan portfolio	172,602		3,603		75,154
Total	$	677,302	$	138,579	$	169,658

Loans and leases that are 90 days or more delinquent and accruing by year of origination were as follows:

			Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Revolving Loans and Leases Converted to Term Loans and Leases
At December 31, 2020	2020		2019		2018		2017		2016		2015 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial	$	874	$	50	$	94	$	13	$	—	$	52	$	375	$	—	$	1,458
Commercial real estate	—		—		—		—		—		22		—		—		22
Lease financing	1,286		975		680		463		392		139		—		—		3,935
Total commercial loan and lease portfolio	2,160		1,025		774		476		392		213		375		—		5,415
Consumer loan portfolio:
Residential mortgage	85		134		—		—		—		1,746		—		—		1,965
Home equity	—		—		—		—		—		27		36		—		63
Consumer installment	—		—		—		—		—		—		—		—		—
Total consumer loan portfolio	85		134		—		—		—		1,773		36		—		2,028
Total 90 days or more delinquent and accruing	$	2,245	$	1,159	$	774	$	476	$	392	$	1,986	$	411	$	—	$	7,443

Nonaccrual loans and leases by year of origination were as follows:

			Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Revolving Loans and Leases Converted to Term Loans and Leases
At December 31, 2020	2020		2019		2018		2017		2016		2015 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial	$	26,109	$	61,595	$	60,686	$	29,360	$	17,669	$	23,644	$	40,364	$	12	$	259,439
Commercial real estate	5,194		4,835		14,452		53,934		21,667		54,357		—		—		154,439
Lease financing	3,190		27,412		26,348		15,184		8,601		8,145		—		1,942		90,822
Total commercial loan and lease portfolio	34,493		93,842		101,486		98,478		47,937		86,146		40,364		1,954		504,700
Consumer loan portfolio:
Residential mortgage	2,631		9,177		16,391		4,172		2,812		62,470		—		—		97,653
Home equity	889		1,449		530		379		223		5,149		59,826		938		69,383
Consumer installment	33		267		181		281		575		4,060		169		—		5,566
Total consumer loan portfolio	3,553		10,893		17,102		4,832		3,610		71,679		59,995		938		172,602
Total nonaccrual loans and leases	$	38,046	$	104,735	$	118,588	$	103,310	$	51,547	$	157,825	$	100,359	$	2,892	$	677,302

The average balance of nonaccrual loans and leases and interest income recognized on nonaccrual loans and leases were as follows:

	Year Ended December 31,
	2020				2019				2018
(In thousands)	Average Loan and Lease Balance(1)		Interest Income Recognized(1)		Average Loan and Lease Balance		Interest Income Recognized		Average Loan and Lease Balance		Interest Income Recognized
Commercial loan and lease portfolio:
Commercial and industrial	$	156,626	$	10,288	$	39,937	$	1,844	$	18,510	$	324
Commercial real estate	92,087		11,562		17,127		2,435		5,652		—
Lease financing	50,889		244		9,474		152		9,120		76
Total commercial loan and lease portfolio	299,602		22,094		66,538		4,431		33,282		400
Consumer loan portfolio:
Residential mortgage	68,115		3,342		35,843		640		47,529		680
Home equity	52,623		6,034		30,759		406		7,974		—
Consumer installment	3,140		299		4,648		37		23,465		271
Total consumer loan portfolio	123,878		9,675		71,250		1,083		78,968		951
Total nonaccrual loans and leases	$	423,480	$	31,769	$	137,788	$	5,514	$	112,250	$	1,351

(1)At January 1, 2020, $73.4 million of previously purchased credit impaired loans were reclassified to nonaccrual loans as a result of the adoption of CECL. Beginning January 1, 2020, interest income, including the related purchase accounting accretion and amortization is included related to these loans.

In addition to the receivables payment performance status, credit quality is also analyzed using risk categories, which vary based on the size and type of credit risk exposure and additionally measure liquidity, debt capacity, coverage and payment behavior as shown in the borrower's financial statements. The risk categories also measure the quality of the borrower's management and the repayment support offered by any guarantors. Loan and lease credit classifications are derived from standard regulatory rating definitions, which include: pass, special mention, substandard, doubtful and loss. Substandard and doubtful loans and leases have well-defined weaknesses, but may never result in a loss.

The amortized cost basis of loans and leases by credit risk classifications and year of origination was as follows:

	Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases(1)		Revolving Loans and Leases Converted to Term Loans and Leases(2)
At December 31, 2020	2020		2019		2018		2017		2016		2015 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial
Pass	$	3,282,275	$	1,877,468	$	994,081	$	547,940	$	357,567	$	316,557	$	3,286,687	$	48,079	$	10,710,654
Special mention	13,377		66,485		46,174		34,959		4,661		6,733		94,338		858		267,585
Substandard	28,908		69,510		94,227		48,246		52,944		29,295		120,738		276		444,144
Total commercial and industrial	3,324,560		2,013,463		1,134,482		631,145		415,172		352,585		3,501,763		49,213		11,422,383
Commercial real estate
Pass	1,361,117		2,193,489		1,877,374		1,211,426		683,612		1,480,027		—		—		8,807,045
Special mention	17,745		78,236		53,087		197,935		79,540		104,473		—		—		531,016
Substandard	6,995		53,079		31,930		124,728		57,221		90,573		—		—		364,526
Total commercial real estate	1,385,857		2,324,804		1,962,391		1,534,089		820,373		1,675,073		—		—		9,702,587
Lease financing
Pass	1,013,374		715,327		393,644		226,818		109,992		30,620		23,806		167,726		2,681,307
Special mention	4,050		9,871		3,897		4,870		1,484		1,001		—		8,911		34,084
Substandard	6,440		29,040		27,579		16,150		9,360		8,635		7		4,629		101,840
Total lease financing	1,023,864		754,238		425,120		247,838		120,836		40,256		23,813		181,266		2,817,231
Total commercial	5,734,281		5,092,505		3,521,993		2,413,072		1,356,381		2,067,914		3,525,576		230,479		23,942,201
Consumer loan portfolio:
Residential mortgage
Pass	2,011,791		1,047,735		604,127		435,617		439,816		1,539,779		—		—		6,078,865
Special mention	—		—		—		—		—		112		—		—		112
Substandard	3,292		9,311		17,268		4,601		3,814		64,782		—		—		103,068
Total residential mortgage	2,015,083		1,057,046		621,395		440,218		443,630		1,604,673		—		—		6,182,045
Home equity
Pass	23,066		51,448		48,092		39,834		29,071		126,147		2,703,354		7,753		3,028,765
Substandard	940		1,469		579		515		424		8,354		66,590		1,100		79,971
Total home equity	24,006		52,917		48,671		40,349		29,495		134,501		2,769,944		8,853		3,108,736
Consumer installment
Pass	206,994		371,924		192,067		185,051		119,663		127,252		24,043		67		1,227,061
Substandard	247		1,179		680		887		909		2,086		377		—		6,365
Total consumer installment	207,241		373,103		192,747		185,938		120,572		129,338		24,420		67		1,233,426
Total consumer	2,246,330		1,483,066		862,813		666,505		593,697		1,868,512		2,794,364		8,920		10,524,207
Total loans and leases	$	7,980,611	$	6,575,571	$	4,384,806	$	3,079,577	$	1,950,078	$	3,936,426	$	6,319,940	$	239,399	$	34,466,408

(1)This balance includes $23.8 million of leased equipment that has been provided to lessees under certain master lease agreements. Under these agreements, the total amount of equipment included in each lease is provided over time, and additional amounts are required to be provided to the respective lessees in future accounting periods.

(2)This balance includes $230.5 million of leased equipment that has been provided to lessees under certain master lease agreements. Under these agreements, the total amount of equipment included in each lease was provided over time, and all equipment required by the lease has been provided to the respective lessees in current or previous accounting periods.

The recorded investment of loans and leases by credit risk categories as of December 31, 2019 was as follows:

(In thousands)	Pass		Special Mention		Substandard		Total
At December 31, 2019
Commercial loan and lease portfolio:
Commercial and industrial	$	10,930,939	$	315,097	$	193,566	$	11,439,602
Commercial real estate	8,891,361		170,114		75,395		9,136,870
Lease financing	2,646,874		28,091		24,904		2,699,869
Total commercial loan and lease portfolio	22,469,174		513,302		293,865		23,276,341
Consumer loan portfolio:
Residential mortgage	6,135,096		565		44,144		6,179,805
Home equity	3,457,292		456		41,159		3,498,907
Consumer installment	1,541,524		—		887		1,542,411
Total consumer loan portfolio	11,133,912		1,021		86,190		11,221,123
Total loans and leases	$	33,603,086	$	514,323	$	380,055	$	34,497,464

Troubled Debt Restructurings In certain circumstances, the Corporation may consider modifying the terms of a loan for economic or legal reasons related to the customer's financial difficulties. If the Corporation grants a concession, the modified loan would generally be classified as a TDR. However, Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications provide banks the option to temporarily suspend the application of TDR accounting guidance for loans modified due to the effects of COVID-19 when certain conditions are met. See "Note 2. Summary of Significant Accounting Policies" of the Notes to Consolidated Financial Statements for information regarding recent updated guidance on TDR accounting provided by the CARES Act and Interagency guidance. TDRs typically involve a deferral of the principal balance of the loan, a reduction of the stated interest rate of the loan or, in certain limited circumstances, a reduction of the principal balance of the loan or the loan's accrued interest.

The following table presents the recorded investment of loan modifications first classified as TDRs during the periods presented:

	Year Ended December 31,
	2020				2019				2018
(In thousands)	Pre-modification Investment		Post-modification Investment		Pre-modification Investment		Post-modification Investment		Pre-modification Investment		Post-modification Investment
Commercial loan and lease portfolio:
Commercial and industrial	$	4,136	$	3,956	$	5,347	$	5,347	$	7,253	$	7,253
Commercial real estate	41,902		41,902		35,997		35,997		5,228		5,228
Total commercial loan and lease portfolio	46,038		45,858		41,344		41,344		12,481		12,481
Consumer loan portfolio:
Residential mortgage	11,550		11,485		6,053		5,912		5,333		5,259
Home equity	5,269		5,210		4,144		4,089		2,182		2,181
Consumer installment	533		442		217		183		1,052		1,052
Total consumer loan portfolio	17,352		17,137		10,414		10,184		8,567		8,492
Total	$	63,390	$	62,995	$	51,758	$	51,528	$	21,048	$	20,973

The following table presents TDR loans:

	At December 31,
	2020						2019
(In thousands)	Accruing TDR Loans		Nonaccrual TDR Loans		Total TDR Loans		Accruing TDR Loans		Nonaccrual TDR Loans		Total TDR Loans
Commercial loan and lease portfolio	$	35,697	$	23,575	$	59,272	$	12,986	$	5,356	$	18,342
Consumer loan portfolio	16,658		22,804		39,462		12,403		14,875		27,278
Total	$	52,355	$	46,379	$	98,734	$	25,389	$	20,231	$	45,620

Commitments to lend additional funds to borrowers whose terms have been modified in TDRs were $2.6 million at December 31, 2020 and $638 thousand at December 31, 2019.

Loan modifications to troubled borrowers are no longer disclosed as TDR loans in the calendar years after modification if the loans were modified to an interest rate equal to or greater than the yields of new loan originations with comparable risk at the time of restructuring and if the loan is performing based on the restructured terms; however, these loans are still considered impaired and follow the Corporation's impaired loan reserve policies.

The following table summarizes the TDR loans that defaulted during the periods presented that were modified during the respective reporting period or within one year of the beginning of the respective reporting period. The Corporation considers a loan to have defaulted when under the modified terms it becomes 90 or more days delinquent, has been transferred to nonaccrual status, has been charged down or has been transferred to other real estate owned or repossessed and returned assets.

	Year Ended December 31,
(In thousands)	2020		2019		2018
Defaulted TDR loan balances modified during the applicable period
Commercial loan and lease portfolio:
Commercial and industrial	$	827	$	956	$	4,697
Commercial real estate	1,593		—		—
Total commercial loan and lease portfolio	2,420		956		4,697
Consumer loan portfolio:
Residential mortgage	1,756		1,325		3,258
Home equity	1,372		401		558
Consumer installment	44		1,555		1,436
Total consumer loan portfolio	3,172		3,281		5,252
Defaulted TDR loan balances	$	5,592	$	4,237	$	9,949

Other Real Estate Owned and Repossessed and Returned Assets Other real estate owned, repossessed and returned assets and consumer real estate loans in process of foreclosure were as follows:

	At December 31,
(In thousands)	2020		2019
Other real estate owned	$	33,192	$	34,256
Repossessed and returned assets	8,932		8,045
Consumer real estate loans in process of foreclosure	14,790		17,758

Other real estate owned and repossessed and returned assets were written down $2.6 million, $7.7 million and $3.4 million in 2020, 2019 and 2018, respectively.