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

9 Months Ended

Sep. 30, 2012

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

Summary of loans

	September 30,			December 31,
(in thousands)	2012			2011
Commercial	$	5,554,521		$	4,846,594
Commercial real estate mortgages	2,463,664			2,110,749
Residential mortgages	3,897,690			3,763,218
Real estate construction	242,137			315,609
Equity lines of credit	718,966			741,081
Installment	137,632			132,647
Lease financing	710,041			399,487
Loans and leases, excluding covered loans	13,724,651			12,309,385
Less: Allowance for loan and lease losses	(268,440		)	(262,557		)
Loans and leases, excluding covered loans, net	13,456,211			12,046,828
Covered loans	1,144,337			1,481,854
Less: Allowance for loan losses	(44,978		)	(64,565		)
Covered loans, net	1,099,359			1,417,289
Total loans and leases	$	14,868,988		$	13,791,239
Total loans and leases, net	$	14,555,570		$	13,464,117

Summary of major categories of covered loans

	September 30,			December 31,
(in thousands)	2012			2011
Commercial	$	15,824		$	30,911
Commercial real estate mortgages	1,036,383			1,288,352
Residential mortgages	5,707			14,931
Real estate construction	81,524			140,992
Equity lines of credit	4,083			5,167
Installment	816			1,501
Covered loans	1,144,337			1,481,854
Less: Allowance for loan losses	(44,978		)	(64,565		)
Covered loans, net	$	1,099,359		$	1,417,289

Summary of accretable yield for acquired impaired loans

	For the nine months ended
	September 30,
(in thousands)	2012			2011
Balance, beginning of period	$	436,374		$	562,826
Additions	—			10,871
Accretion	(62,189		)	(80,143		)
Reclassifications (to) from nonaccretable yield	(4,042		)	22,577
Disposals and other	(51,854		)	(46,544		)
Balance, end of period	$	318,289		$	469,587

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 September 30, 2012
Allowance for loan and lease losses:
Beginning balance	$	93,407		$	47,648		$	12,414		$	17,583		$	7,610		$	1,764		$	89,108		$	269,534
Provision for credit losses (2)	6,293			(716		)	1,318			(4,425		)	43			(316		)	(1,106		)	1,091
Charge-offs	(12,163		)	(444		)	(1,030		)	(310		)	(43		)	(134		)	—			(14,124		)
Recoveries	7,227			203			495			3,415			11			588			—			11,939
Net (charge-offs) recoveries	(4,936		)	(241		)	(535		)	3,105			(32		)	454			—			(2,185		)
Ending balance	$	94,764		$	46,691		$	13,197		$	16,263		$	7,621		$	1,902		$	88,002		$	268,440
Nine months ended September 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)	3,360			518			740			(5,454		)	591			(654		)	1,736			837
Charge-offs	(22,382		)	(1,318		)	(2,333		)	(9,769		)	(1,077		)	(959		)	—			(37,838		)
Recoveries	30,821			1,524			761			8,139			83			1,556			—			42,884
Net (charge-offs) recoveries	8,439			206			(1,572		)	(1,630		)	(994		)	597			—			5,046
Ending balance	$	94,764		$	46,691		$	13,197		$	16,263		$	7,621		$	1,902		$	88,002		$	268,440
Ending balance of allowance:
Individually evaluated for impairment	$	1,167		$	1,874		$	185		$	1,467		$	138		$	—		$	—		$	4,831
Collectively evaluated for impairment	93,597			44,817			13,012			14,796			7,483			1,902			88,002			263,609
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding covered loans	$	6,264,562		$	2,463,664		$	3,897,690		$	242,137		$	718,966		$	137,632		$	—		$	13,724,651
Individually evaluated for impairment	34,731			58,217			11,342			56,582			4,496			449			—			165,817
Collectively evaluated for impairment	6,229,831			2,405,447			3,886,348			185,555			714,470			137,183			—			13,558,834

(1)

Includes lease financing loans.

(2)

Provision for credit losses in the allowance rollforward for the three months ended September 30, 2012 includes total provision expense of $2.0 million, net of total transfers to the reserve for off-balance sheet credit commitments of $0.9 million. Provision for credit losses for the nine months ended September 30, 2012 includes total provision expense of $3.0 million, net of total transfers to the reserve for off-balance sheet credit commitments of $2.2 million.

(in thousands)	Commercial (1)			Commercial Real Estate Mortgages			Residential Mortgages			Real Estate Construction			Equity Lines of Credit			Installment			Unallocated		Total
Three months ended September 30, 2011
Allowance for loan and lease losses:
Beginning balance	$	85,717		$	49,060		$	12,873		$	29,455		$	6,668		$	1,951		$	80,209	$	265,933
Provision for credit losses (2)	2,772			(1,604		)	(691		)	2,269			(122		)	417			4,958		7,999
Charge-offs	(6,282		)	(1,231		)	(245		)	(6,434		)	(523		)	(457		)	—		(15,172		)
Recoveries	3,367			779			82			201			11			148			—		4,588
Net charge-offs	(2,915		)	(452		)	(163		)	(6,233		)	(512		)	(309		)	—		(10,584		)
Ending balance	$	85,574		$	47,004		$	12,019		$	25,491		$	6,034		$	2,059		$	85,167	$	263,348
Nine months ended September 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)	5,359			(12,541		)	(3,703		)	(13,503		)	194			(1,467		)	31,864		6,203
Charge-offs	(12,966		)	(4,127		)	(1,267		)	(8,897		)	(1,443		)	(913		)	—		(29,613		)
Recoveries	10,730			11,156			236			7,067			54			508			—		29,751
Net (charge-offs) recoveries	(2,236		)	7,029			(1,031		)	(1,830		)	(1,389		)	(405		)	—		138
Ending balance	$	85,574		$	47,004		$	12,019		$	25,491		$	6,034		$	2,059		$	85,167	$	263,348
Ending balance of allowance:
Individually evaluated for impairment	$	14,364		$	1,375		$	130		$	2,989		$	75		$	—		$	—	$	18,933
Collectively evaluated for impairment	71,210			45,629			11,889			22,502			5,959			2,059			85,167		244,415
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases excluding covered loans	$	5,166,802		$	2,059,114		$	3,742,768		$	335,712		$	728,890		$	130,923		$	—	$	12,164,209
Individually evaluated for impairment	32,036			25,899			10,254			82,565			6,653			653			—		158,060
Collectively evaluated for impairment	5,134,766			2,033,215			3,732,514			253,147			722,237			130,270			—		12,006,149

(1)

Includes lease financing loans.

(2)

Provision for credit losses in the allowance rollforward for the three months ended September 30, 2011 includes total provision for credit losses of $7.5 million and total transfers from the reserve for off-balance sheet credit commitments of $0.5 million. Provision for credit losses for the nine months ended September 30, 2011 includes total provision expense for credit losses of $7.5 million and total transfers to the reserve for off-balance sheet credit commitments of $1.3 million.

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

	For the three months ended September 30,					For the nine months ended September 30,
(in thousands)	2012		2011			2012		2011
Balance, beginning of period	$	24,351	$	23,325		$	23,097	$	21,529
Transfers from (to) allowance for loan and lease losses	909		(499		)	2,163		1,297
Balance, end of period	$	25,260	22,826			$	25,260	22,826

Schedule of impaired loans, excluding covered loans

			Unpaid				For the three months ended September 30, 2012				For the nine months ended September 30, 2012
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
September 30, 2012
With no related allowance recorded:
Commercial	$	28,575	$	39,624	$	—	$	30,476	$	—	$	24,732	$	—
Commercial real estate mortgages	40,825		46,081		—		34,597		34		25,767		158
Residential mortgages:
Fixed	4,199		4,613		—		3,014		—		3,047		—
Variable	3,528		3,968		—		4,893		9		5,010		48
Total residential mortgages	7,727		8,581		—		7,907		9		8,057		48
Real estate construction:
Construction	29,446		42,870		—		34,137		245		29,189		487
Land	19,038		23,606		—		18,987		35		22,763		35
Total real estate construction	48,484		66,476		—		53,124		280		51,952		522
Equity lines of credit	3,297		4,370		—		3,252		—		4,470		—
Installment:													—
Consumer	449		927		—		500		—		552		—
Total installment	449		927		—		500		—		552		—
Lease financing	—		—		—		—		—		7		—
Total with no related allowance	$	129,357	$	166,059	$	—	$	129,856	$	323	$	115,537	$	728
With an allowance recorded:
Commercial	$	6,156	$	6,922	$	1,167	$	8,461	$	—	$	11,286	$	—
Commercial real estate mortgages	17,392		18,962		1,874		17,257		—		13,406		—
Residential mortgages:
Fixed	2,229		2,336		181		2,260		—		1,844		—
Variable	1,386		1,476		4		2,321		4		1,879		4
Total residential mortgages	3,615		3,812		185		4,581		4		3,723		4
Real estate construction:
Land	8,098		18,362		1,467		8,432		—		14,700		—
Total real estate construction	8,098		18,362		1,467		8,432		—		14,700		—
Equity lines of credit	1,199		1,406		138		1,213		—		1,166		—
Total with an allowance	$	36,460	$	49,464	$	4,831	$	39,944	$	4	$	44,281	$	4
Total impaired loans by type:
Commercial	$	34,731	$	46,546	$	1,167	$	38,937	$	—	$	36,018	$	—
Commercial real estate mortgages	58,217		65,043		1,874		51,854		34		39,173		158
Residential mortgages	11,342		12,393		185		12,488		13		11,780		52
Real estate construction	56,582		84,838		1,467		61,556		280		66,652		522
Equity lines of credit	4,496		5,776		138		4,465		—		5,636		—
Installment	449		927		—		500		—		552		—
Lease financing	—		—		—		—		—		7		—
Total impaired loans	$	165,817	$	215,523	$	4,831	$	169,800	$	327	$	159,818	$	732

(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 September 30, 2011				For the nine months ended September 30, 2011
(in thousands)	Recorded Investment		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
September 30, 2011
With no related allowance recorded:
Commercial	$	4,768	$	10,890	$	—	$	4,388	$	—	$	5,618	$	—
Commercial real estate mortgages	16,461		19,655		—		15,536		42		18,265		232
Residential mortgages:
Fixed	4,452		5,258		—		6,143		9		7,367		171
Variable	3,810		4,006		—		3,986		14		3,823		48
Total residential mortgages	8,262		9,264		—		10,129		23		11,190		219
Real estate construction:
Construction	46,895		75,355		—		43,040		266		52,779		671
Land	23,739		28,244		—		17,505		—		20,568		—
Total real estate construction	70,634		103,599		—		60,545		266		73,347		671
Equity lines of credit	5,695		6,786		—		4,058		—		3,603		—
Installment:
Consumer	653		927		—		347		—		194		—
Total installment	653		927		—		347		—		194		—
Lease financing	466		3,545		—		614		—		868		99
Total with no related allowance	$	106,939	$	154,666	$	—	$	95,617	$	331	$	113,085	$	1,221
With an allowance recorded:
Commercial	$	26,802	$	78,485	$	14,364	$	20,635	$	—	$	14,190	$	—
Commercial real estate mortgages	9,438		11,022		1,375		9,299		—		11,259		—
Residential mortgages:
Fixed	528		542		—		534		—		797		—
Variable	1,464		1,476		130		732		—		1,078		—
Total residential mortgages	1,992		2,018		130		1,266		—		1,875		—
Real estate construction:
Construction	—		—		—		—		—		4,417		—
Land	11,931		63,889		2,989		11,053		—		5,527		—
Total real estate construction	11,931		63,889		2,989		11,053		—		9,944		—
Equity lines of credit	958		980		75		1,530		—		1,471		6
Installment:
Commercial	—		—		—		—		—		1,724		—
Total installment	—		—		—		—		—		1,724		—
Lease financing	—		—		—		—		—		214		—
Total with an allowance	$	51,121	$	156,394	$	18,933	$	43,783	$	—	$	40,677	$	6
Total impaired loans by type:
Commercial	$	31,570	$	89,375	$	14,364	$	25,023	$	—	$	19,808	$	—
Commercial real estate mortgages	25,899		30,677		1,375		24,835		42		29,524		232
Residential mortgages	10,254		11,282		130		11,395		23		13,065		219
Real estate construction	82,565		167,488		2,989		71,598		266		83,291		671
Equity lines of credit	6,653		7,766		75		5,588		—		5,074		6
Installment	653		927		—		347		—		1,918		—
Lease financing	466		3,545		—		614		—		1,082		99
Total impaired loans	$	158,060	$	311,060	$	18,933	$	139,400	$	331	$	153,762	$	1,227

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 September 30, 2012
Commercial	6	$	1,624	$	1,538	$	10,528
Residential mortgages:
Fixed	3	1,578		1,078		485
Real estate construction:
Land	1	8,420		8,098		264
Equity lines of credit	1	257		149		—
Total troubled debt restructured loans	11	$	11,879	$	10,863	$	11,277
Nine months ended September 30, 2012
Commercial	15	$	36,785	$	23,219	$	10,528
Commercial real estate mortgages	2	15,832		16,353		—
Residential mortgages:
Fixed	4	2,233		1,078		485
Real estate construction:
Construction	3	14,857		14,226		—
Land	1	8,420		8,098		264
Total real estate construction	4	23,277		22,324		264
Equity lines of credit	1	257		149		—
Total troubled debt restructured loans	26	$	78,384	$	63,123	$	11,277

(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 September 30, 2012					For the nine months ended September 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	1	$	688	$	—	5	$	4,581	$	277
Real estate construction:
Land	—	—		—		2	$	1,372	—
Total loans that subsequently defaulted	1	$	688	$	—	7	$	5,953	$	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
September 30, 2012
Commercial	$	4,993	$	401	$	35	$	18,728	$	24,157	$	5,530,364	$	5,554,521
Commercial real estate mortgages	7,118		—		—		36,580		43,698		2,419,966		2,463,664
Residential mortgages:
Fixed	—		3,325		379		6,530		10,234		1,478,559		1,488,793
Variable	—		—		—		5,150		5,150		2,403,747		2,408,897
Total residential mortgages	—		3,325		379		11,680		15,384		3,882,306		3,897,690
Real estate construction:
Construction	—		—		—		15,080		15,080		151,157		166,237
Land	2,582		—		—		13,883		16,465		59,435		75,900
Total real estate construction	2,582		—		—		28,963		31,545		210,592		242,137
Equity lines of credit	—		950		—		6,946		7,896		711,070		718,966
Installment:
Commercial	—		—		—		—		—		452		452
Consumer	40		23		—		477		540		136,640		137,180
Total installment	40		23		—		477		540		137,092		137,632
Lease financing	—		112		19		120		251		709,790		710,041
Total	$	14,733	$	4,811	$	433	$	103,494	$	123,471	$	13,601,180	$	13,724,651

(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

	September 30, 2012						December 31, 2011
(in thousands)	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	5,413,587	$	140,934	$	5,554,521	$	4,732,663	$	113,931	$	4,846,594
Commercial real estate mortgages	2,330,210		133,454		2,463,664		1,930,001		180,748		2,110,749
Residential mortgages:
Fixed	1,472,865		15,928		1,488,793		1,565,420		16,376		1,581,796
Variable	2,390,863		18,034		2,408,897		2,163,458		17,964		2,181,422
Total residential mortgages	3,863,728		33,962		3,897,690		3,728,878		34,340		3,763,218
Real estate construction:
Construction	110,208		56,029		166,237		147,916		69,945		217,861
Land	44,918		30,982		75,900		43,717		54,031		97,748
Total real estate construction	155,126		87,011		242,137		191,633		123,976		315,609
Equity lines of credit	698,997		19,969		718,966		724,045		17,036		741,081
Installment:
Commercial	452		—		452		601		4		605
Consumer	136,470		710		137,180		130,921		1,121		132,042
Total installment	136,922		710		137,632		131,522		1,125		132,647
Lease financing	704,040		6,001		710,041		396,256		3,231		399,487
Total	$	13,302,610	$	422,041	$	13,724,651	$	11,834,998	$	474,387	$	12,309,385

Summary of the allowance for loan losses on covered loans

	For the three months ended September 30,						For the nine months ended September 30,
(in thousands)	2012			2011			2012			2011
Balance, beginning of period	$	43,147		$	67,629		$	64,565		$	67,389
Provision for losses	18,089			5,147			38,848			25,979
Charge-offs	—			(325		)	—			(325		)
Reduction in allowance due to loan removals	(16,258		)	(10,698		)	(58,435		)	(31,290		)
Balance, end of period	$	44,978		$	61,753		$	44,978		$	61,753