XML 37 R27.htm IDEA: XBRL DOCUMENT

Loans And Allowance For Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

Summary Classification Of Held For Investment Loan Portfolio

Major classifications within the Company’s held for investment loan portfolio at June 30, 2022 and December 31, 2021 are as follows:


(In thousands)	June 30, 2022		December 31, 2021
Commercial:
Business	$	5,441,592	$	5,303,535
Real estate – construction and land	1,266,260		1,118,266
Real estate – business	3,215,578		3,058,837
Personal Banking:
Real estate – personal	2,836,835		2,805,401
Consumer	2,089,592		2,032,225
Revolving home equity	271,854		275,945
Consumer credit card	558,102		575,410
Overdrafts	6,814		6,740
Total loans	$	15,686,627	$	15,176,359

CECL Model Inputs

Key assumptions in the Company’s allowance for credit loss model include the economic forecast, the reasonable and supportable period, forecasted macro-economic variables, prepayment assumptions and qualitative factors applied for portfolio composition changes, underwriting practices, or significant unique events or conditions. The assumptions utilized in estimating the Company’s allowance for credit losses at June 30, 2022 and March 31, 2022 are discussed below.


Key Assumption	June 30, 2022	March 31, 2022

Overall economic forecast	•Positive economic momentum faced with continued COVID challenges, supply constraints and high inflation •Continued monetary policy tightening to rein in inflation •Uncertainties related to supply chain issues and the timing and likelihood of a recession	•Improving health situation supports positive economic momentum in the short term •Projects significant monetary policy tightening to rein in inflation •Projects continued high inflation •Uncertainties related to supply chain issues
Reasonable and supportable period and related reversion period	•One year for commercial and personal banking loans •Reversion to historical average loss rates within two quarters using straight-line method	•One year for commercial and personal banking loans •Reversion to historical average loss rates within two quarters using straight-line method
Forecasted macro-economic variables	•Unemployment rate ranging from 3.5% to 3.7% during the supportable forecast period •Real GDP growth ranging from 1.5% to 2.7% •Prime rate from 4.9% to 6.2%	•Unemployment rate ranging from 3.6% to 3.4% during the supportable forecast period •Real GDP growth ranging from 2.6% to 3.7% •Prime rate from 4.0% to 5.2%
Prepayment assumptions	Commercial loans •5% for most loan pools Personal banking loans •Ranging from 28.5% to 16.5% for most loan pools •67.0% for consumer credit cards	Commercial loans •5% for most loan pools Personal banking loans •Ranging from 28.3% to 16.5% for most loan pools •66.0% for consumer credit cards
Qualitative factors	Added qualitative factors related to: •Certain portfolios sensitive to pandemic economic uncertainties •Changes in the composition of the loan portfolios •Uncertainty related to unusually high rate of inflation, geopolitical environment, and supply chain issues •Loans downgraded to special mention, substandard, or non-accrual status	Added qualitative factors related to: •Certain portfolios sensitive to pandemic economic uncertainties •Changes in the composition of the loan portfolios •Uncertainty related to unusually high rate of inflation, geopolitical environment, and supply chain issues •Loans downgraded to special mention, substandard, or non-accrual status

Summary Of Activity In The Allowance For Credit Losses

A summary of the activity in the allowance for credit losses on loans and the liability for unfunded lending commitments during the six months ended June 30, 2022 and 2021, respectively, follows:


	For the Three Months Ended June 30, 2022						For the Six Months Ended June 30, 2022
(In thousands)	Commercial		Personal Banking		Total		Commercial		Personal Banking		Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS


Balance at beginning of period	$	94,827	$	39,883	$	134,710	$	97,776	$	52,268	$	150,044
Provision for credit losses on loans	4,716		2,571		7,287		1,837		(5,236)		(3,399)
Deductions:
Loans charged off	207		6,533		6,740		384		13,818		14,202
Less recoveries on loans	189		2,593		2,782		296		5,300		5,596
Net loan charge-offs (recoveries)	18		3,940		3,958		88		8,518		8,606
Balance June 30, 2022	$	99,525	$	38,514	$	138,039	$	99,525	$	38,514	$	138,039
LIABILITY FOR UNFUNDED LENDING COMMITMENTS


Balance at beginning of period	$	23,780	$	1,252	$	25,032	$	23,271	$	933	$	24,204
Provision for credit losses on unfunded lending commitments	(163)		38		(125)		346		357		703
Balance June 30, 2022	$	23,617	$	1,290	$	24,907	$	23,617	$	1,290	$	24,907
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$	123,142	$	39,804	$	162,946	$	123,142	$	39,804	$	162,946


	For the Three Months Ended June 30, 2021						For the Six Months Ended June 30, 2021
(In thousands)	Commercial		Personal Banking		Total		Commercial		Personal Banking		Total
ALLOWANCE FOR CREDIT LOSSES ON LOANS


Balance at beginning of period	$	119,623	$	80,904	$	200,527	$	121,549	$	99,285	$	220,834
Provision for credit losses on loans	(26,579)		(854)		(27,433)		(28,488)		(9,300)		(37,788)
Deductions:
Loans charged off	270		8,598		8,868		502		21,307		21,809
Less recoveries on loans	5,264		2,905		8,169		5,479		5,679		11,158
Net loan charge-offs	(4,994)		5,693		699		(4,977)		15,628		10,651
Balance June 30, 2021	$	98,038	$	74,357	$	172,395	$	98,038	$	74,357	$	172,395
LIABILITY FOR UNFUNDED LENDING COMMITMENTS


Balance at beginning of period	$	41,513	$	917	$	42,430	$	37,259	$	1,048	$	38,307
Provision for credit losses on unfunded lending commitments	(18,163)		(59)		(18,222)		(13,909)		(190)		(14,099)
Balance June 30, 2021	$	23,350	$	858	$	24,208	$	23,350	$	858	$	24,208
ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LIABILITY FOR UNFUNDED LENDING COMMITMENTS	$	121,388	$	75,215	$	196,603	$	121,388	$	75,215	$	196,603

Aging Information On Past Due And Nonaccrual Loans

The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at June 30, 2022 and December 31, 2021.


(In thousands)	Current or Less Than 30 Days Past Due		30 – 89 Days Past Due		90 Days Past Due and Still Accruing		Non-accrual		Total
June 30, 2022
Commercial:
Business	$	5,432,582	$	2,278	$	418	$	6,314	$	5,441,592
Real estate – construction and land	1,266,203		57		—		—		1,266,260
Real estate – business	3,212,739		2,313		359		167		3,215,578
Personal Banking:
Real estate – personal	2,821,955		9,762		3,682		1,436		2,836,835
Consumer	2,069,092		18,001		2,499		—		2,089,592
Revolving home equity	270,572		464		818		—		271,854
Consumer credit card	549,589		4,385		4,128		—		558,102
Overdrafts	6,305		504		5		—		6,814
Total	$	15,629,037	$	37,764	$	11,909	$	7,917	$	15,686,627
December 31, 2021
Commercial:
Business	$	5,292,125	$	3,621	$	477	$	7,312	$	5,303,535
Real estate – construction and land	1,117,434		832		—		—		1,118,266
Real estate – business	3,058,566		57		—		214		3,058,837
Personal Banking:
Real estate – personal	2,796,662		4,125		2,983		1,631		2,805,401
Consumer	2,005,556		24,458		2,211		—		2,032,225
Revolving home equity	274,372		772		801		—		275,945
Consumer credit card	565,335		4,821		5,254		—		575,410
Overdrafts	6,425		315		—		—		6,740
Total	$	15,116,475	$	39,001	$	11,726	$	9,157	$	15,176,359

Risk Category of Loans in Commercial Portfolio

The risk category of loans in the Commercial portfolio as of June 30, 2022 and December 31, 2021 are as follows:


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
June 30, 2022
Business
Risk Rating:
Pass	$	668,983	$	1,026,985	$	562,836	$	456,621	$	206,448	$	337,860	$	2,129,662	$	5,389,395
Special mention	2,202		648		232		972		74		7,336		2,043		13,507
Substandard	2,298		880		1,028		4,249		4,077		10,352		9,492		32,376
Non-accrual	267		82		—		4		1,433		4,528		—		6,314
Total Business:	$	673,750	$	1,028,595	$	564,096	$	461,846	$	212,032	$	360,076	$	2,141,197	$	5,441,592
Real estate-construction
Risk Rating:
Pass	$	329,256	$	606,428	$	190,785	$	58,550	$	536	$	2,278	$	18,310	$	1,206,143
Special mention	—		—		—		—		967		—		—		967
Substandard	—		19,487		11,580		—		14,908		13,175		—		59,150

Total Real estate-construction:	$	329,256	$	625,915	$	202,365	$	58,550	$	16,411	$	15,453	$	18,310	$	1,266,260
Real estate-business
Risk Rating:
Pass	$	587,973	$	686,505	$	596,190	$	485,665	$	184,182	$	341,348	$	86,789	$	2,968,652
Special mention	—		3,492		646		8,891		4,970		2,079		—		20,078
Substandard	1,534		31,028		61,741		12,844		33,504		85,069		961		226,681
Non-accrual	—		—		—		—		157		10		—		167
Total Real estate-business:	$	589,507	$	721,025	$	658,577	$	507,400	$	222,813	$	428,506	$	87,750	$	3,215,578
Commercial loans
Risk Rating:
Pass	$	1,586,212	$	2,319,918	$	1,349,811	$	1,000,836	$	391,166	$	681,486	$	2,234,761	$	9,564,190
Special mention	2,202		4,140		878		9,863		6,011		9,415		2,043		34,552
Substandard	3,832		51,395		74,349		17,093		52,489		108,596		10,453		318,207
Non-accrual	267		82		—		4		1,590		4,538		—		6,481
Total Commercial loans:	$	1,592,513	$	2,375,535	$	1,425,038	$	1,027,796	$	451,256	$	804,035	$	2,247,257	$	9,923,430


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2021
Business
Risk Rating:
Pass	$	1,473,869	$	704,157	$	554,759	$	248,739	$	159,238	$	270,454	$	1,795,073	$	5,206,289
Special mention	1,785		126		17,576		12,050		1,490		3,232		16,545		52,804
Substandard	836		1,191		8,855		4,936		1		10,775		10,536		37,130
Non-accrual	430		—		1		1,549		—		5,332		—		7,312
Total Business:	$	1,476,920	$	705,474	$	581,191	$	267,274	$	160,729	$	289,793	$	1,822,154	$	5,303,535
Real estate-construction
Risk Rating:
Pass	$	598,734	$	346,507	$	66,985	$	2,110	$	2,655	$	2,252	$	13,230	$	1,032,473
Special mention	44,649		—		—		985		—		—		—		45,634
Substandard	485		11,620		—		14,896		13,158		—		—		40,159

Total Real estate-construction:	$	643,868	$	358,127	$	66,985	$	17,991	$	15,813	$	2,252	$	13,230	$	1,118,266
Real estate- business
Risk Rating:
Pass	$	775,561	$	712,173	$	551,697	$	230,138	$	170,888	$	254,489	$	76,641	$	2,771,587
Special mention	4,011		30,322		10,500		37,576		2,068		2,103		1		86,581
Substandard	17,079		62,939		12,930		2,326		58,934		45,265		982		200,455
Non-accrual	—		—		—		189		—		25		—		214
Total Real-estate business:	$	796,651	$	805,434	$	575,127	$	270,229	$	231,890	$	301,882	$	77,624	$	3,058,837
Commercial loans
Risk Rating:
Pass	$	2,848,164	$	1,762,837	$	1,173,441	$	480,987	$	332,781	$	527,195	$	1,884,944	$	9,010,349
Special mention	50,445		30,448		28,076		50,611		3,558		5,335		16,546		185,019
Substandard	18,400		75,750		21,785		22,158		72,093		56,040		11,518		277,744
Non-accrual	430		—		1		1,738		—		5,357		—		7,526
Total Commercial loans:	$	2,917,439	$	1,869,035	$	1,223,303	$	555,494	$	408,432	$	593,927	$	1,913,008	$	9,480,638

Risk Category of Loans in Personal Banking Portfolio

The credit quality of Personal Banking loans is monitored primarily on the basis of aging/delinquency, and this information is provided as of June 30, 2022 and December 31, 2021 below:


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
June 30, 2022
Real estate-personal
Current to 90 days past due	$	287,827	$	635,806	$	824,919	$	310,349	$	143,554	$	618,438	$	10,824	$	2,831,717
Over 90 days past due	—		349		1,258		127		140		1,808		—		3,682
Non-accrual	—		—		—		174		106		1,156		—		1,436
Total Real estate-personal:	$	287,827	$	636,155	$	826,177	$	310,650	$	143,800	$	621,402	$	10,824	$	2,836,835
Consumer
Current to 90 days past due	$	315,284	$	454,310	$	275,200	$	142,639	$	54,300	$	84,426	$	760,934	$	2,087,093
Over 90 days past due	26		403		158		183		352		373		1,004		2,499

Total Consumer:	$	315,310	$	454,713	$	275,358	$	142,822	$	54,652	$	84,799	$	761,938	$	2,089,592
Revolving home equity
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	271,036	$	271,036
Over 90 days past due	—		—		—		—		—		—		818		818

Total Revolving home equity:	$	—	$	—	$	—	$	—	$	—	$	—	$	271,854	$	271,854
Consumer credit card
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	553,974	$	553,974
Over 90 days past due	—		—		—		—		—		—		4,128		4,128

Total Consumer credit card:	$	—	$	—	$	—	$	—	$	—	$	—	$	558,102	$	558,102
Overdrafts
Current to 90 days past due	$	6,809	$	—	$	—	$	—	$	—	$	—	$	—	$	6,809
Over 90 days past due	5		—		—		—		—		—		—		5

Total Overdrafts:	$	6,814	$	—	$	—	$	—	$	—	$	—	$	—	$	6,814
Personal banking loans
Current to 90 days past due	$	609,920	$	1,090,116	$	1,100,119	$	452,988	$	197,854	$	702,864	$	1,596,768	$	5,750,629
Over 90 days past due	31		752		1,416		310		492		2,181		5,950		11,132
Non-accrual	—		—		—		174		106		1,156		—		1,436
Total Personal banking loans:	$	609,951	$	1,090,868	$	1,101,535	$	453,472	$	198,452	$	706,201	$	1,602,718	$	5,763,197


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
December 31, 2021
Real estate-personal
Current to 90 days past due	$	690,058	$	888,631	$	354,292	$	157,485	$	149,391	$	551,460	$	9,470	$	2,800,787
Over 90 days past due	133		1,150		298		124		97		1,181		—		2,983
Non-accrual	115		—		251		109		—		1,156		—		1,631
Total Real estate-personal:	$	690,306	$	889,781	$	354,841	$	157,718	$	149,488	$	553,797	$	9,470	$	2,805,401
Consumer
Current to 90 days past due	$	571,455	$	348,774	$	192,076	$	79,887	$	47,401	$	78,088	$	712,333	$	2,030,014
Over 90 days past due	283		335		257		250		74		351		661		2,211

Total Consumer:	$	571,738	$	349,109	$	192,333	$	80,137	$	47,475	$	78,439	$	712,994	$	2,032,225
Revolving home equity
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	275,144	$	275,144
Over 90 days past due	—		—		—		—		—		—		801		801

Total Revolving home equity:	$	—	$	—	$	—	$	—	$	—	$	—	$	275,945	$	275,945
Consumer credit card
Current to 90 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	570,156	$	570,156
Over 90 days past due	—		—		—		—		—		—		5,254		5,254

Total Consumer credit card:	$	—	$	—	$	—	$	—	$	—	$	—	$	575,410	$	575,410
Overdrafts
Current to 90 days past due	$	6,740	$	—	$	—	$	—	$	—	$	—	$	—	$	6,740


Total Overdrafts:	$	6,740	$	—	$	—	$	—	$	—	$	—	$	—	$	6,740
Personal banking loans
Current to 90 days past due	$	1,268,253	$	1,237,405	$	546,368	$	237,372	$	196,792	$	629,548	$	1,567,103	$	5,682,841
Over 90 days past due	416		1,485		555		374		171		1,532		6,716		11,249
Non-accrual	115		—		251		109		—		1,156		—		1,631
Total Personal banking loans:	$	1,268,784	$	1,238,890	$	547,174	$	237,855	$	196,963	$	632,236	$	1,573,819	$	5,695,721

Amortized Cost Basis of Collateral-Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans as of June 30, 2022 and December 31, 2021.


(In thousands)	Business Assets		Oil & Gas Assets		Total
June 30, 2022
Commercial:
Business	$	1,465	$	2,194	$	3,659








Total	$	1,465	$	2,194	$	3,659
December 31, 2021
Commercial:
Business	$	1,604	$	2,459	$	4,063








Total	$	1,604	$	2,459	$	4,063

Summary Of Loans In The Personal Banking Portfolio Percentage Of Balances Outstanding

For the remainder of loans in the Personal Banking portfolio, the table below shows the percentage of balances outstanding at June 30, 2022 and December 31, 2021 by FICO score.


Personal Banking Loans
	% of Loan Category
	Real Estate - Personal		Consumer		Revolving Home Equity		Consumer Credit Card
June 30, 2022
FICO score:
Under 600	1.2	%	1.7	%	1.5	%	3.3	%
600 - 659	2.6		4.0		2.5		11.3
660 - 719	7.9		13.5		8.6		29.5
720 - 779	23.4		24.1		22.2		28.1
780 and over	64.9		56.7		65.2		27.8
Total	100.0	%	100.0	%	100.0	%	100.0	%
December 31, 2021
FICO score:
Under 600	1.0	%	1.9	%	0.9	%	3.4	%
600 - 659	2.4		3.9		2.6		11.3
660 - 719	7.4		13.8		9.4		29.9
720 - 779	25.2		25.3		20.4		28.2
780 and over	64.0		55.1		66.7		27.2
Total	100.0	%	100.0	%	100.0	%	100.0	%

Additional Information about Troubled Debt Restructurings


(In thousands)		June 30, 2022		December 31, 2021
Accruing restructured loans:
	Commercial	$	126,456	$	46,867
	Assistance programs	5,571		6,146

	Other consumer	4,347		4,787
Non-accrual loans		6,006		7,087
Total troubled debt restructurings		$	142,380	$	64,887

Outstanding Balance Of Loans Classified As Troubled Debt Restructurings

The table below shows the balance of troubled debt restructurings by loan classification at June 30, 2022, in addition to the outstanding balances of these restructured loans which the Company considers to have been in default at any time during the past twelve months. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.


(In thousands)	June 30, 2022		Balance 90 days past due at any time during previous 12 months
Commercial:
Business	$	15,955	$	—
Real estate - construction and land	10,100		—
Real estate - business	105,350		—
Personal Banking:
Real estate - personal	2,964		661
Consumer	20		—
Revolving home equity	2,499		267
Consumer credit card	5,492		387
Total troubled debt restructurings	$	142,380	$	1,315