Loans, Allowance for Loan and Lease Losses, and Reserve for Off-Balance Sheet Credit Commitments (Tables)

6 Months Ended

Jun. 30, 2012

Loans, Allowance for Loan and Lease Losses, and Reserve for Off-Balance Sheet Credit Commitments

Summary of loans

	June 30,			December 31,
(in thousands)	2012			2011
Commercial	$	5,379,489		$	4,846,594
Commercial real estate mortgages	2,424,333			2,110,749
Residential mortgages	3,822,630			3,763,218
Real estate construction	301,829			315,609
Equity lines of credit	741,270			741,081
Installment	130,200			132,647
Lease financing	707,458			399,487
Loans and leases, excluding covered loans	13,507,209			12,309,385
Less: Allowance for loan and lease losses	(269,534		)	(262,557		)
Loans and leases, excluding covered loans, net	13,237,675			12,046,828
Covered loans	1,260,135			1,481,854
Less: Allowance for loan losses	(43,147		)	(64,565		)
Covered loans, net	1,216,988			1,417,289
Total loans and leases	$	14,767,344		$	13,791,239
Total loans and leases, net	$	14,454,663		$	13,464,117

Summary of major categories of covered loans

	June 30,			December 31,
(in thousands)	2012			2011
Commercial	$	22,772		$	30,911
Commercial real estate mortgages	1,135,071			1,288,352
Residential mortgages	5,766			14,931
Real estate construction	90,196			140,992
Equity lines of credit	5,265			5,167
Installment	1,065			1,501
Covered loans	1,260,135			1,481,854
Less: Allowance for loan losses	(43,147		)	(64,565		)
Covered loans, net	$	1,216,988		$	1,417,289

Summary of accretable yield for acquired impaired loans

	For the six months ended June 30,
(in thousands)	2012			2011
Balance, beginning of period	$	436,374		$	562,826
Additions	—			10,871
Accretion	(43,085		)	(54,558		)
Reclassifications (to) from nonaccretable yield	(10,212		)	13,461
Disposals and other	(36,944		)	(27,127		)
Balance, end of period	$	346,133		$	505,473

Summary of allowance for loan and lease losses on non-covered loans

(in thousands)	Commercial (1)			Commercial Real Estate Mortgages			Residential Mortgages			Real Estate Construction			Equity Lines of Credit			Installment			Unallocated			Total
Three months ended June 30, 2012
Allowance for loan and lease losses:
Beginning balance	$	84,087		$	46,586		$	13,803		$	22,096		$	8,032		$	1,938		$	89,535		$	266,077
Provision for credit losses (2)	1,228			(51		)	(846		)	326			386			100			(427		)	716
Charge-offs	(1,302		)	(181		)	(749		)	(7,858		)	(846		)	(617		)	—			(11,553		)
Recoveries	9,394			1,294			206			3,019			38			343			—			14,294
Net (charge-offs) recoveries	8,092			1,113			(543		)	(4,839		)	(808		)	(274		)	—			2,741
Ending balance	$	93,407		$	47,648		$	12,414		$	17,583		$	7,610		$	1,764		$	89,108		$	269,534
Six months ended June 30, 2012
Allowance for loan and lease losses:
Beginning balance	$	82,965		$	45,967		$	14,029		$	23,347		$	8,024		$	1,959		$	86,266		$	262,557
Provision for credit losses (2)	(2,933		)	1,234			(578		)	(1,029		)	548			(338		)	2,842			(254		)
Charge-offs	(10,219		)	(873		)	(1,303		)	(9,459		)	(1,035		)	(826		)	—			(23,715		)
Recoveries	23,594			1,320			266			4,724			73			969			—			30,946
Net (charge-offs) recoveries	13,375			447			(1,037		)	(4,735		)	(962		)	143			—			7,231
Ending balance	$	93,407		$	47,648		$	12,414		$	17,583		$	7,610		$	1,764		$	89,108		$	269,534
Ending balance of allowance:
Individually evaluated for impairment	$	2,850		$	2,282		$	398		$	1,866		$	154		$	—		$	—		$	7,550
Collectively evaluated for impairment	90,557			45,366			12,016			15,717			7,456			1,764			89,108			261,984
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding covered loans	$	6,086,947		$	2,424,333		$	3,822,630		$	301,829		$	741,270		$	130,200		$	—		$	13,507,209
Individually evaluated for impairment	43,144			45,491			13,634			66,529			4,434			550			—			173,782
Collectively evaluated for impairment	6,043,803			2,378,842			3,808,996			235,300			736,836			129,650			—			13,333,427

(1)

Includes lease financing loans.

(2)

Provision for credit losses in the allowance rollforward for the three months ended June 30, 2012 includes total provision expense of $1.0 million and total transfers to the reserve for off-balance sheet credit commitments of $0.3 million. Provision for credit losses for the six months ended June 30, 2012 includes total provision expense of $1.0 million and total transfers to the reserve for off-balance sheet credit commitments of $1.3 million.

(in thousands)	Commercial (1)			Commercial Real Estate Mortgages			Residential Mortgages			Real Estate Construction			Equity Lines of Credit			Installment			Unallocated		Total
Three months ended June 30, 2011
Allowance for loan and lease losses:
Beginning balance	$	75,661		$	47,519		$	13,527		$	36,693		$	6,445		$	5,445		$	78,066	$	263,356
Provision for credit losses (2)	7,440			272			(401		)	(7,815		)	343			(3,600		)	2,143		(1,618		)
Charge-offs	(3,446		)	(98		)	(375		)	(1,897		)	(128		)	(131		)	—		(6,075		)
Recoveries	6,062			1,367			122			2,474			8			237			—		10,270
Net charge-offs (recoveries)	2,616			1,269			(253		)	577			(120		)	106			—		4,195
Ending balance	$	85,717		$	49,060		$	12,873		$	29,455		$	6,668		$	1,951		$	80,209	$	265,933
Six months ended June 30, 2011
Allowance for loan and lease losses:
Beginning balance	$	82,451		$	52,516		$	16,753		$	40,824		$	7,229		$	3,931		$	53,303	$	257,007
Provision for credit losses (2)	2,587			(10,937		)	(3,012		)	(15,772		)	316			(1,884		)	26,906		(1,796		)
Charge-offs	(6,684		)	(2,897		)	(1,022		)	(2,463		)	(921		)	(455		)	—		(14,442		)
Recoveries	7,363			10,378			154			6,866			44			359			—		25,164
Net charge-offs (recoveries)	679			7,481			(868		)	4,403			(877		)	(96		)	—		10,722
Ending balance	$	85,717		$	49,060		$	12,873		$	29,455		$	6,668		$	1,951		$	80,209	$	265,933
Ending balance of allowance:
Individually evaluated for impairment	$	7,605		$	1,150		$	56		$	1,853		$	404		$	—		$	—	$	11,068
Collectively evaluated for impairment	78,112			47,910			12,817			27,602			6,264			1,951			80,209		254,865
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases excluding covered loans	$	4,800,252		$	1,930,269		$	3,710,765		$	355,014		$	735,899		$	130,924		$	—	$	11,663,123
Individually evaluated for impairment	19,236			23,769			12,536			60,630			4,522			41			—		120,734
Collectively evaluated for impairment	4,781,016			1,906,500			3,698,229			294,384			731,377			130,883			—		11,542,389

(1)	Includes lease financing loans.
(2)	There was no provision for credit losses for the three and six months ended June 30, 2011. Net transfers to the reserve for off-balance sheet credit commitments were $1.6 million and $1.8 million for the three and six months ended June 30, 2011, respectively.

Summary of activity in the reserve for off-balance sheet credit commitments

	For the three months ended June 30,				For the six months ended June 30,
(in thousands)	2012		2011		2012		2011
Balance, beginning of period	$	24,067	$	21,707	$	23,097	$	21,529
Transfers from allowance for loan and lease losses	284		1,618		1,254		1,796
Balance, end of period	$	24,351	23,325		$	24,351	23,325

Schedule of impaired loans, excluding covered loans

			Unpaid				For the three months ended June 30, 2012				For the six months ended June 30, 2012
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest  Income Recognized
June 30, 2012
With no related allowance recorded:
Commercial	$	32,378	$	43,247	$	—	$	30,100	$	—	$	23,451	$	—
Commercial real estate mortgages	28,368		33,107		—		21,188		55		20,748		124
Residential mortgages:
Fixed	1,830		2,518		—		2,248		—		2,663		—
Variable	6,257		6,688		—		6,412		39		5,504		39
Total residential mortgages	8,087		9,206		—		8,660		39		8,167		39
Real estate construction:
Construction	38,828		52,209		—		29,937		126		29,103		242
Land	18,936		22,101		—		21,513		—		24,006		—
Total real estate construction	57,764		74,310		—		51,450		126		53,109		242
Equity lines of credit	3,207		4,245				4,621		—		4,861		—
Installment:
Consumer	550		927		—		550		—		586		—
Total installment	550		927		—		550		—		586		—
Lease financing	—		—		—		—		—		9
Total with no related allowance	$	130,354	$	165,042	$	—	$	116,569	$	220	$	110,931	$	405
With an allowance recorded:
Commercial	$	10,766	$	11,591	$	2,850	$	11,680	$	—	$	12,995	$	—
Commercial real estate mortgages	17,123		18,266		2,282		12,711		—		12,077		—
Residential mortgages:
Fixed	2,291		2,353		236		2,316		—		1,716		—
Variable	3,256		3,951		162		2,341		—		2,044		—
Total residential mortgages	5,547		6,304		398		4,657		—		3,760		—
Real estate construction:
Land	8,765		18,575		1,866		15,658		—		16,900		—
Total real estate construction	8,765		18,575		1,866		15,658		—		16,900		—
Equity lines of credit	1,227		1,421		154		1,086		—		1,155		—
Total with an allowance	$	43,428	$	56,157	$	7,550	$	45,792	$	—	$	46,887	$	—
Total impaired loans by type:
Commercial	$	43,144	$	54,838	$	2,850	$	41,780	$	—	$	36,446	$	—
Commercial real estate mortgages	45,491		51,373		2,282		33,899		55		32,825		124
Residential mortgages	13,634		15,510		398		13,317		39		11,927		39
Real estate construction	66,529		92,885		1,866		67,108		126		70,009		242
Equity lines of credit	4,434		5,666		154		5,707		—		6,016		—
Installment	550		927		—		550		—		586		—
Lease financing	—		—		—		—		—		9		—
Total impaired loans	$	173,782	$	221,199	$	7,550	$	162,361	$	220	$	157,818	$	405

(in thousands)	Recorded Investment		Unpaid Contractual Principal Balance (1)		Related Allowance
December 31, 2011
With no related allowance recorded:
Commercial	$	10,153	$	11,588	$	—
Commercial real estate mortgages	19,867		23,983		—
Residential mortgages:
Fixed	3,493		4,035		—
Variable	3,689		4,000		—
Total residential mortgages	7,182		8,035		—
Real estate construction:
Construction	27,435		40,605		—
Land	28,991		32,335		—
Total real estate construction	56,426		72,940		—
Equity lines of credit	5,341		6,325		—
Installment:
Consumer	658		976		—
Total installment	658		976		—
Lease financing	28		5,225		—
Total with no related allowance	$	99,655	$	129,072	$	—
With an allowance recorded:
Commercial	$	15,627	$	21,377	$	7,135
Commercial real estate mortgages	10,811		11,215		1,551
Residential mortgages:
Fixed	515		535		40
Variable	1,449		1,476		68
Total residential mortgages	1,964		2,011		108
Real estate construction:
Land	19,385		29,381		4,377
Total real estate construction	19,385		29,381		4,377
Equity lines of credit	1,292		1,461		91
Total with an allowance	$	49,079	$	65,445	$	13,262
Total impaired loans by type:
Commercial	$	25,780	$	32,965	$	7,135
Commercial real estate mortgages	30,678		35,198		1,551
Residential mortgages	9,146		10,046		108
Real estate construction	75,811		102,321		4,377
Equity lines of credit	6,633		7,786		91
Installment	658		976		—
Lease financing	28		5,225		—
Total impaired loans	$	148,734	$	194,517	$	13,262

(1) The table has been revised to present unpaid contractual principal balances, whereas the Company had previously disclosed unpaid contractual principal balances that were net of charge-offs.

			Unpaid				For the three months ended June 30, 2011				For the six months ended June 30, 2011
(in thousands)	Recorded Investment		Contractual Principal Balance (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
June 30, 2011
With no related allowance recorded:
Commercial	$	4,007	$	23,764	$	—	$	5,204	$	—	$	5,901	$	—
Commercial real estate mortgages	14,610		21,607		—		16,550		60		18,866		190
Residential mortgages:
Fixed	7,834		8,678		—		7,036		17		8,338		162
Variable	4,163		4,595		—		3,717		24		3,827		34
Total residential mortgages	11,997		13,273		—		10,753		41		12,165		196
Real estate construction:
Construction	39,184		73,136		—		44,221		175		54,740		405
Land	11,271		15,100		—		17,400		—		19,510		—
Total real estate construction	50,455		88,236		—		61,621		175		74,250		405
Equity lines of credit	2,420		2,551		—		2,856		—		2,906		—
Installment:
Consumer	41		41		—		41		—		41		—
Total installment	41		41		—		41		—		41		—
Lease financing	762		6,279		—		935		—		1,002		99
Total with no related allowance	$	84,292	$	155,751	$	—	$	97,960	$	276	$	115,131	$	890
With an allowance recorded:
Commercial	$	14,467	$	46,222	$	7,605	$	10,695	$	—	$	9,986	$	—
Commercial real estate mortgages	9,159		10,960		1,150		8,229		—		11,866		—
Residential mortgages:
Fixed	539		549		56		1,046		—		886		—
Variable	—		—		—		707		—		950		—
Total residential mortgages	539		549		56		1,753		—		1,836		—
Real estate construction:
Construction	—		—		—		4,409		—		5,889		—
Land	10,175		10,700		1,853		5,087		—		3,392		—
Total real estate construction	10,175		10,700		1,853		9,496		—		9,281		—
Equity lines of credit	2,102		2,555		404		1,530		3		1,642		6
Installment:
Commercial	—		—		—		3,448		—		2,299
Total installment	—		—		—		3,448		—		2,299		—
Lease financing	—		—		—		—		—		285
Total with an allowance	$	36,442	$	70,986	$	11,068	$	35,151	$	3	$	37,195	$	6
Total impaired loans by type:
Commercial	$	18,474	$	69,986	$	7,605	$	15,899	$	—	$	15,887	$	—
Commercial real estate mortgages	23,769		32,567		1,150		24,779		60		30,732		190
Residential mortgages	12,536		13,822		56		12,506		41		14,001		196
Real estate construction	60,630		98,936		1,853		71,117		175		83,531		405
Equity lines of credit	4,522		5,106		404		4,386		3		4,548		6
Installment	41		41		—		3,489		—		2,340		—
Lease financing	762		6,279		—		935		—		1,287		99
Total impaired loans	$	120,734	$	226,737	$	11,068	$	133,111	$	279	$	152,326	$	896

(1) The table has been revised to present unpaid contractual principal balances, whereas the Company had previously disclosed unpaid contractual principal balances that were net of charge-offs.

Schedule of troubled debt restructured loans

(in thousands)	Number of Contracts	Pre-Modification Outstanding Principal		Period-End Outstanding Principal		Financial Effects (1)
Three months ended June 30, 2012
Commercial	4	$	18,179	$	18,148	$	—
Commercial real estate mortgages	2	15,832		15,832		—
Real estate construction:
Construction	2	9,325		9,325		—
Total troubled debt restructured loans	8	$	43,336	$	43,305	$	—
Six months ended June 30, 2012
Commercial	9	$	35,161	$	32,351	$	—
Commercial real estate mortgages	2	15,832		15,832		—
Residential mortgages:
Fixed	1	655		—		—
Real estate construction:
Construction	3	14,857		14,458		—
Total troubled debt restructured loans	15	$	66,505	$	62,641	$	—

(1) Financial effects are comprised of charge-offs and specific reserves recognized on TDR loans at modification date.

Schedule of troubled debt restructured loans that have subsequently defaulted

	For the three months ended June 30, 2012					For the six months ended June 30, 2012
(in thousands)	Number of Contracts	Period-End Outstanding Principal		Period-End Specific Reserve		Number of Contracts	Period-End Outstanding Principal		Period-End Specific Reserve
Commercial	2	$	4,327	$	277	3	$	4,341	$	277
Real estate construction:
Land	—	—		—		2	1,371		—
Total loans that subsequently defaulted	2	$	4,327	$	277	5	$	5,712	$	277

Summary of past due loans, excluding covered loans, based upon the length of time the loans have been past due

(in thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days and Accruing		Nonaccrual		Total Past Due and Nonaccrual Loans		Current		Total Loans and Leases
June 30, 2012
Commercial	$	6,864	$	2,218	$	—	$	18,936	$	28,018	$	5,351,471	$	5,379,489
Commercial real estate mortgages	21,290		20,859		—		28,780		70,929		2,353,404		2,424,333
Residential mortgages:
Fixed	—		—		1,244		5,000		6,244		1,493,281		1,499,525
Variable	—		—		—		9,064		9,064		2,314,041		2,323,105
Total residential mortgages	—		—		1,244		14,064		15,308		3,807,322		3,822,630
Real estate construction:
Construction	1,717		—		—		15,126		16,843		219,930		236,773
Land	—		—		—		14,550		14,550		50,506		65,056
Total real estate construction	1,717		—		—		29,676		31,393		270,436		301,829
Equity lines of credit	520		—		322		6,505		7,347		733,923		741,270
Installment:
Commercial	—		—		—		—		—		467		467
Consumer	37		—		—		575		612		129,121		129,733
Total installment	37		—		—		575		612		129,588		130,200
Lease financing	61		158		499		120		838		706,620		707,458
Total	$	30,489	$	23,235	$	2,065	$	98,656	$	154,445	$	13,352,764	$	13,507,209

(in thousands)	30-59 Days  Past Due		60-89 Days Past Due		Greater Than 90 Days and Accruing		Nonaccrual		Total Past Due and Nonaccrual Loans		Current		Total Loans and Leases
December 31, 2011
Commercial	$	6,817	$	1,003	$	—	$	19,888	$	27,708	$	4,818,886	$	4,846,594
Commercial real estate mortgages	5,838		—		—		21,948		27,786		2,082,963		2,110,749
Residential mortgages:
Fixed	662		525		379		5,572		7,138		1,574,658		1,581,796
Variable	—		2,983		—		4,199		7,182		2,174,240		2,181,422
Total residential mortgages	662		3,508		379		9,771		14,320		3,748,898		3,763,218
Real estate construction:
Construction	—		—		—		15,582		15,582		202,279		217,861
Land	—		—		—		35,294		35,294		62,454		97,748
Total real estate construction	—		—		—		50,876		50,876		264,733		315,609
Equity lines of credit	—		—		74		8,669		8,743		732,338		741,081
Installment:
Commercial	—		—		—		4		4		601		605
Consumer	150		—		—		870		1,020		131,022		132,042
Total installment	150		—		—		874		1,024		131,623		132,647
Lease financing	—		—		—		—		—		399,487		399,487
Total	$	13,467	$	4,511	$	453	$	112,026	$	130,457	$	12,178,928	$	12,309,385

Summary of the loan and lease portfolio, excluding covered loans, by loan type and credit quality classification

	June 30, 2012						December 31, 2011
(in thousands)	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	5,224,293	$	155,196	$	5,379,489	$	4,732,663	$	113,931	$	4,846,594
Commercial real estate mortgages	2,269,348		154,985		2,424,333		1,930,001		180,748		2,110,749
Residential mortgages:
Fixed	1,484,559		14,966		1,499,525		1,565,420		16,376		1,581,796
Variable	2,310,241		12,864		2,323,105		2,163,458		17,964		2,181,422
Total residential mortgages	3,794,800		27,830		3,822,630		3,728,878		34,340		3,763,218
Real estate construction:
Construction	177,950		58,823		236,773		147,916		69,945		217,861
Land	33,350		31,706		65,056		43,717		54,031		97,748
Total real estate construction	211,300		90,529		301,829		191,633		123,976		315,609
Equity lines of credit	721,715		19,555		741,270		724,045		17,036		741,081
Installment:
Commercial	467		—		467		601		4		605
Consumer	129,072		661		129,733		130,921		1,121		132,042
Total installment	129,539		661		130,200		131,522		1,125		132,647
Lease financing	703,518		3,940		707,458		396,256		3,231		399,487
Total	$	13,054,513	$	452,696	$	13,507,209	$	11,834,998	$	474,387	$	12,309,385

Summary of the allowance for loan losses on covered loans

	For the three months ended June 30,						For the six months ended June 30,
(in thousands)	2012			2011			2012			2011
Balance, beginning of period	$	61,471		$	82,016		$	64,565		$	67,389
Provision for losses	13,293			1,716			20,759			20,832
Reduction in allowance due to loan removals	(31,617		)	(16,103		)	(42,177		)	(20,592		)
Balance, end of period	$	43,147		$	67,629		$	43,147		$	67,629