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

3 Months Ended

Mar. 31, 2013

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

Summary of loans

	March 31,			December 31,
(in thousands)	2013			2012
Commercial	$	6,452,477		$	6,211,353
Commercial real estate mortgages	2,937,457			2,829,694
Residential mortgages	4,027,741			3,962,205
Real estate construction	247,114			222,780
Home equity loans and lines of credit	696,679			711,750
Installment	137,545			142,793
Lease financing	717,893			737,720
Loans and leases, excluding covered loans	15,216,906			14,818,295
Less: Allowance for loan and lease losses	(282,328		)	(277,888		)
Loans and leases, excluding covered loans, net	14,934,578			14,540,407
Covered loans	951,917			1,031,004
Less: Allowance for loan losses	(42,354		)	(44,781		)
Covered loans, net	909,563			986,223
Total loans and leases	$	16,168,823		$	15,849,299
Total loans and leases, net	$	15,844,141		$	15,526,630

Summary of major categories of covered loans

	March 31,			December 31,
(in thousands)	2013			2012
Commercial	$	9,611		$	10,561
Commercial real estate mortgages	863,161			931,758
Residential mortgages	5,619			5,652
Real estate construction	69,380			78,554
Home equity loans and lines of credit	3,499			3,790
Installment	647			689
Covered loans	951,917			1,031,004
Less: Allowance for loan losses	(42,354		)	(44,781		)
Covered loans, net	$	909,563		$	986,223

Summary of accretable yield for acquired impaired loans

	March 31,
(in thousands)	2013			2012
Balance, beginning of period	$	295,813		$	436,374
Accretion	(16,198		)	(22,225		)
Reclassifications from (to) nonaccretable yield	2,063			(21,468		)
Disposals and other	(13,290		)	(16,213		)
Balance, end of period	$	268,388		$	376,468

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			Home Equity Loans and Lines of Credit			Installment			Unallocated		Total
Three months ended March 31, 2013
Allowance for loan and lease losses:
Beginning balance	$	104,156		$	48,240		$	10,499		$	13,130		$	7,243		$	1,847		$	92,773	$	277,888
Provision for credit losses (2)	6,068			4,251			(3,201		)	(5,920		)	(2,303		)	(771		)	1,508		(368		)
Charge-offs	(1,362		)	(45		)	(105		)	—			(240		)	(271		)	—		(2,023		)
Recoveries	3,535			48			37			2,666			128			417			—		6,831
Net (charge-offs) recoveries	2,173			3			(68		)	2,666			(112		)	146			—		4,808
Ending balance	$	112,397		$	52,494		$	7,230		$	9,876		$	4,828		$	1,222		$	94,281	$	282,328
Ending balance of allowance:
Individually evaluated for impairment	$	869		$	1,148		$	—		$	867		$	—		$	—		$	—	$	2,884
Collectively evaluated for impairment	111,528			51,346			7,230			9,009			4,828			1,222			94,281		279,444
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding covered loans	$	7,170,370		$	2,937,457		$	4,027,741		$	247,114		$	696,679		$	137,545		$	—	$	15,216,906
Individually evaluated for impairment	26,639			42,747			7,963			44,346			2,140			—			—		123,835
Collectively evaluated for impairment	7,143,731			2,894,710			4,019,778			202,768			694,539			137,545			—		15,093,071
Three months ended March 31, 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)	(4,161		)	1,285			268			(1,355		)	162			(438		)	3,269		(970		)
Charge-offs	(8,917		)	(692		)	(554		)	(1,601		)	(189		)	(209		)	—		(12,162		)
Recoveries	14,200			26			60			1,705			35			626			—		16,652
Net (charge-offs) recoveries	5,283			(666		)	(494		)	104			(154		)	417			—		4,490
Ending balance	$	84,087		$	46,586		$	13,803		$	22,096		$	8,032		$	1,938		$	89,535	$	266,077
Ending balance of allowance:
Individually evaluated for impairment	$	3,335		$	1,019		$	331		$	9,395		$	38		$	—		$	—	$	14,118
Collectively evaluated for impairment	80,752			45,567			13,472			12,701			7,994			1,938			89,535		251,959
Loans and leases, excluding covered loans
Ending balance of loans and leases:
Loans and leases, excluding covered loans	$	5,573,782		$	2,213,114		$	3,805,807		$	313,409		$	715,997		$	125,793		$	—	$	12,747,902
Individually evaluated for impairment	40,415			22,306			13,000			67,686			6,980			550			—		150,937
Collectively evaluated for impairment	5,533,367			2,190,808			3,792,807			245,723			709,017			125,243			—		12,596,965

(1)   Includes lease financing loans.

(2) Provision for credit losses in the allowance rollforward for the three months ended March 31, 2013 and 2012 includes total transfers from the reserve for off-balance sheet credit commitments of $0.4 million and $1.0 million, respectively. There was no other provision for credit losses recognized for the three months ended March 31, 2013 and 2012.

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

	For the three months ended March 31,
(in thousands)	2013		2012
Balance, beginning of period	$	24,837	$	23,097
Transfers from allowance for loan and lease losses	368		970
Balance, end of period	$	25,205	24,067

Schedule of impaired loans, excluding covered loans

			Unpaid				For the three months ended March 31, 2013
			Contractual				Average		Interest
	Recorded		Principal		Related		Recorded		Income
(in thousands)	Investment		Balance		Allowance		Investment		Recognized
March 31, 2013
With no related allowance recorded:
Commercial	$	19,066	$	19,602	$	—	$	18,914	$	419
Commercial real estate mortgages	29,403		34,927		—		36,142		235
Residential mortgages:
Fixed	3,917		4,246		—		3,699		18
Variable	4,046		4,354		—		4,456		14
Total residential mortgages	7,963		8,600		—		8,155		32
Real estate construction:
Construction	19,332		29,787		—		19,547		330
Land	12,164		24,071		—		18,956		34
Total real estate construction	31,496		53,858		—		38,503		364
Home equity loans and lines of credit	2,140		3,373		—		2,851		—
Installment:
Consumer	—		—		—		225		—
Total installment	—		—		—		225		—
Total with no related allowance	$	90,068	$	120,360	$	—	$	104,790	$	1,050
With an allowance recorded:
Commercial	$	7,573	$	7,608	$	869	$	7,544	$	46
Commercial real estate mortgages	13,344		13,689		1,148		11,773		168
Residential mortgages:
Fixed	—		—		—		232		—
Total residential mortgages	—		—		—		232		—
Real estate construction:
Land	12,850		13,165		867		6,425		213
Total real estate construction	12,850		13,165		867		6,425		213
Home equity loans and lines of credit	—		—		—		450		—
Total with an allowance	$	33,767	$	34,462	$	2,884	$	26,424	$	427
Total impaired loans by type:
Commercial	$	26,639	$	27,210	$	869	$	26,458	$	465
Commercial real estate mortgages	42,747		48,616		1,148		47,915		403
Residential mortgages	7,963		8,600		—		8,387		32
Real estate construction	44,346		67,023		867		44,928		577
Home equity loans and lines of credit	2,140		3,373		—		3,301		—
Installment	—		—		—		225		—
Total impaired loans	$	123,835	$	154,822	$	2,884	$	131,214	$	1,477

(in thousands)	Recorded Investment		Unpaid Contractual Principal Balance		Related Allowance
December 31, 2012
With no related allowance recorded:
Commercial	$	18,761	$	24,135	$	—
Commercial real estate mortgages	42,882		49,110		—
Residential mortgages:
Fixed	3,482		3,757		—
Variable	4,865		5,437		—
Total residential mortgages	8,347		9,194		—
Real estate construction:
Construction	19,762		33,267		—
Land	25,748		41,016		—
Total real estate construction	45,510		74,283		—
Home equity loans and lines of credit	3,562		4,660		—
Installment:
Consumer	449		927		—
Total installment	449		927		—
Total with no related allowance	$	119,511	$	162,309	$	—
With an allowance recorded:
Commercial	$	7,516	$	8,038	$	952
Commercial real estate mortgages	10,203		10,783		1,326
Residential mortgages:
Fixed	463		507		9
Total residential mortgages	463		507		9
Home equity loans and lines of credit	899		965		116
Total with an allowance	$	19,081	$	20,293	$	2,403
Total impaired loans by type:
Commercial	$	26,277	$	32,173	$	952
Commercial real estate mortgages	53,085		59,893		1,326
Residential mortgages	8,810		9,701		9
Real estate construction	45,510		74,283		—
Home equity loans and lines of credit	4,461		5,625		116
Installment	449		927		—
Total impaired loans	$	138,592	$	182,602	$	2,403

			Unpaid				For the three months ended March 31, 2012
			Contractual				Average		Interest
	Recorded		Principal		Related		Recorded		Income
(in thousands)	Investment		Balance		Allowance		Investment		Recognized
March 31, 2012
With no related allowance recorded:
Commercial	$	27,822	$	36,069	$	—	$	18,988	$	—
Commercial real estate mortgages	14,008		19,022		—		16,938		69
Residential mortgages:
Fixed	2,666		3,194		—		3,080		—
Variable	6,567		7,240		—		5,128		—
Total residential mortgages	9,233		10,434		—		8,208		—
Real estate construction:
Construction	21,045		34,381		—		24,240		116
Land	24,090		27,340		—		26,541		—
Total real estate construction	45,135		61,721		—		50,781		116
Home equity loans and lines of credit	6,035		7,185		—		5,688		—
Installment:
Consumer	550		927		—		604		—
Total installment	550		927		—		604		—
Lease financing	—		—		—		14		—
Total with no related allowance	$	102,783	$	135,358	$	—	$	101,221	$	185
With an allowance recorded:
Commercial	$	12,593	$	17,643	$	3,335	$	14,110	$	—
Commercial real estate mortgages	8,298		8,715		1,019		9,555		—
Residential mortgages:
Fixed	2,341		2,367		287		1,428		—
Variable	1,426		1,476		44		1,438		—
Total residential mortgages	3,767		3,843		331		2,866		—
Real estate construction:
Land	22,551		34,312		9,395		20,968		—
Total real estate construction	22,551		34,312		9,395		20,968		—
Home equity loans and lines of credit	945		985		38		1,119		—
Total with an allowance	$	48,154	$	65,498	$	14,118	$	48,618	$	—
Total impaired loans by type:
Commercial	$	40,415	$	53,712	$	3,335	$	33,098	$	—
Commercial real estate mortgages	22,306		27,737		1,019		26,493		69
Residential mortgages	13,000		14,277		331		11,074		—
Real estate construction	67,686		96,033		9,395		71,749		116
Home equity loans and lines of credit	6,980		8,170		38		6,807		—
Installment	550		927		—		604		—
Lease financing	—		—		—		14		—
Total impaired loans	$	150,937	$	200,856	$	14,118	$	149,839	$	185

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 March 31, 2013
Commercial	4	$	1,727	$	1,704	$	—
Home equity loans and lines of credit	1	345		345		—
Total troubled debt restructured loans	5	2,072		2,049		—
Three months ended March 31, 2012
Commercial	5	$	16,982	$	16,903	$	—
Residential mortgages:
Fixed	1	655		655		—
Real estate construction:
Construction	1	5,532		5,532		—
Total troubled debt restructured loans	7	$	23,169	$	23,090	$	—

(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

(in thousands)	Number of Contracts	Period-End Outstanding Principal		Period-End Specific Reserve
Three months ended March 31, 2013
Commercial	2	$	1,886	$	—
Home equity loans and lines of credit	1	145		—
Total loans that subsequently defaulted	3	$	2,031	$	—
Three months ended March 31, 2012
Commercial	1	$	26	$	10
Real estate construction:
Land	2	6,339		3,318
Total loans that subsequently defaulted	3	$	6,365	$	3,328

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
March 31, 2013
Commercial	$	7,929	$	347	$	—	$	7,292	$	15,568	$	6,436,909	$	6,452,477
Commercial real estate mortgages	16,960		—		—		23,066		40,026		2,897,431		2,937,457
Residential mortgages:
Fixed	—		233		1,033		4,579		5,845		1,436,801		1,442,646
Variable	—		—		—		4,557		4,557		2,580,538		2,585,095
Total residential mortgages	—		233		1,033		9,136		10,402		4,017,339		4,027,741
Real estate construction:
Construction	—		—		—		14,602		14,602		178,677		193,279
Land	3,537		—		—		25,006		28,543		25,292		53,835
Total real estate construction	3,537		—		—		39,608		43,145		203,969		247,114
Home equity loans and lines of credit	3,749		—		630		4,103		8,482		688,197		696,679
Installment:
Commercial	—		—		—		—		—		503		503
Consumer	138		17		—		70		225		136,817		137,042
Total installment	138		17		—		70		225		137,320		137,545
Lease financing	4,071		6		25		—		4,102		713,791		717,893
Total	$	36,384	$	603	$	1,688	$	83,275	$	121,950	$	15,094,956	$	15,216,906

(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, 2012
Commercial	$	6,207	$	4,219	$	602	$	9,087	$	20,115	$	6,191,238	$	6,211,353
Commercial real estate mortgages	16,968		3,249		—		33,198		53,415		2,776,279		2,829,694
Residential mortgages:
Fixed	—		1,969		379		4,902		7,250		1,458,224		1,465,474
Variable	—		—		—		4,701		4,701		2,492,030		2,496,731
Total residential mortgages	—		1,969		379		9,603		11,951		3,950,254		3,962,205
Real estate construction:
Construction	—		—		—		15,067		15,067		150,548		165,615
Land	—		859		—		25,815		26,674		30,491		57,165
Total real estate construction	—		859		—		40,882		41,741		181,039		222,780
Home equity loans and lines of credit	3,407		480		—		6,424		10,311		701,439		711,750
Installment:
Commercial	—		—		—		—		—		437		437
Consumer	58		35		—		473		566		141,790		142,356
Total installment	58		35		—		473		566		142,227		142,793
Lease financing	2,633		2		—		120		2,755		734,965		737,720
Total	$	29,273	$	10,813	$	981	$	99,787	$	140,854	$	14,677,441	$	14,818,295

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

	March 31, 2013						December 31, 2012
(in thousands)	Nonclassified		Classified		Total		Nonclassified		Classified		Total
Commercial	$	6,322,914	$	129,563	$	6,452,477	$	6,073,459	$	137,894	$	6,211,353
Commercial real estate mortgages	2,821,000		116,457		2,937,457		2,705,469		124,225		2,829,694
Residential mortgages:
Fixed	1,419,798		22,848		1,442,646		1,449,270		16,204		1,465,474
Variable	2,569,427		15,668		2,585,095		2,479,449		17,282		2,496,731
Total residential mortgages	3,989,225		38,516		4,027,741		3,928,719		33,486		3,962,205
Real estate construction:
Construction	148,050		45,229		193,279		119,189		46,426		165,615
Land	24,989		28,846		53,835		27,492		29,673		57,165
Total real estate construction	173,039		74,075		247,114		146,681		76,099		222,780
Home equity loans and lines of credit	667,718		28,961		696,679		685,011		26,739		711,750
Installment:
Commercial	503		—		503		437		—		437
Consumer	136,925		117		137,042		141,662		694		142,356
Total installment	137,428		117		137,545		142,099		694		142,793
Lease financing	714,292		3,601		717,893		733,803		3,917		737,720
Total	$	14,825,616	$	391,290	$	15,216,906	$	14,415,241	$	403,054	$	14,818,295

Summary of the allowance for loan losses on covered loans

	For the three months ended March 31,
(in thousands)	2013			2012
Balance, beginning of period	$	44,781		$	64,565
Provision for losses	9,892			7,466
Reduction in allowance due to loan removals	(12,319		)	(10,560		)
Balance, end of period	$	42,354		$	61,471