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Loans and leases and the allowance for credit losses (Tables)

9 Months Ended

Sep. 30, 2022

Summary of Current, Past Due and Nonaccrual Loans

A summary of current, past due and nonaccrual loans as of September 30, 2022 and December 31, 2021 follows:


	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Nonaccrual		Total
	(In thousands)
September 30, 2022
Commercial, financial, leasing, etc.	$	37,938,053		481,091		20,639		368,166	$	38,807,949
Real estate:
Commercial		35,880,425		227,399		38,470		1,406,200		37,552,494
Residential builder and developer		1,377,505		62		—		1,930		1,379,497
Other commercial construction		6,981,412		157,175		1,900		66,187		7,206,674
Residential		20,709,362		580,357		411,731		285,395		21,986,845
Residential — limited documentation		974,779		17,274		—		95,382		1,087,435
Consumer:
Home equity lines and loans		4,959,845		25,370		—		78,208		5,063,423
Recreational finance		8,738,849		41,758		—		38,718		8,819,325
Automobile		4,282,895		35,550		—		40,318		4,358,763
Other		1,897,867		12,730		3,763		48,822		1,963,182
Total	$	123,740,992		1,578,766		476,503		2,429,326	$	128,225,587


December 31, 2021
Commercial, financial, leasing, etc.	$	23,101,810	142,208	8,284	221,022	$	23,473,324
Real estate:
Commercial		24,712,643	319,099	31,733	1,069,280		26,132,755
Residential builder and developer		1,400,437	2,904	—	3,005		1,406,346
Other commercial construction		7,722,049	17,175	—	111,405		7,850,629
Residential		13,294,872	239,561	920,080	355,858		14,810,371
Residential — limited documentation		1,124,520	16,666	—	122,888		1,264,074
Consumer:
Home equity lines and loans		3,476,617	15,486	—	70,488		3,562,591
Recreational finance		7,985,173	40,544	—	27,811		8,053,528
Automobile		4,604,772	40,064	—	34,037		4,678,873
Other		1,620,147	12,223	3,302	44,289		1,679,961
Total	$	89,043,040	845,930	963,399	2,060,083	$	92,912,452

Summary of Loan grades applied various classes of Commercial and Real Estate Loans

The following table summarizes the loan grades applied at September 30, 2022 to the various classes of the Company’s commercial loans and commercial real estate loans by origination year.


	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Commercial, financial, leasing, etc.:
Loan grades:
Pass	$	5,781,789		5,344,496		2,395,097		2,002,268		984,260		2,170,726		17,905,476		33,403	$	36,617,515
Criticized accrual		183,126		255,935		159,898		119,906		67,885		302,787		715,190		17,541		1,822,268
Criticized nonaccrual		15,954		47,840		42,491		43,953		37,789		64,076		110,414		5,649		368,166
Total commercial, financial, leasing, etc.	$	5,980,869		5,648,271		2,597,486		2,166,127		1,089,934		2,537,589		18,731,080		56,593	$	38,807,949

Real estate:
Commercial:
Loan grades:
Pass	$	3,169,811		3,566,811		3,480,606		4,628,815		3,534,628		11,778,026		852,233		45,264	$	31,056,194
Criticized accrual		116,303		325,114		532,354		1,028,855		1,040,898		1,987,906		58,670		—		5,090,100
Criticized nonaccrual		9,313		9,119		199,654		185,468		187,115		791,882		23,649		—		1,406,200
Total commercial real estate	$	3,295,427		3,901,044		4,212,614		5,843,138		4,762,641		14,557,814		934,552		45,264	$	37,552,494

Residential builder and developer:
Loan grades:
Pass	$	561,314		367,867		33,935		31,596		18,574		9,878		169,941		—	$	1,193,105
Criticized accrual		—		23,263		11,294		107,408		14,514		62		27,921		—		184,462
Criticized nonaccrual		—		654		—		518		—		758		—		—		1,930
Total residential builder and developer	$	561,314		391,784		45,229		139,522		33,088		10,698		197,862		—	$	1,379,497

Other commercial construction:
Loan grades:
Pass	$	526,338		1,079,329		1,388,737		1,431,834		401,870		327,992		23,584		618	$	5,180,302
Criticized accrual		46,282		163,004		249,622		971,447		386,480		136,358		6,992		—		1,960,185
Criticized nonaccrual		—		—		—		25,352		10,588		27,814		2,433		—		66,187
Total other commercial construction	$	572,620		1,242,333		1,638,359		2,428,633		798,938		492,164		33,009		618	$	7,206,674

The following table summarizes the loan grades applied at December 31, 2021 to the various classes of the Company’s commercial loans and commercial real estate loans by origination year.


	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
	(In thousands)
Commercial, financial, leasing, etc.:
Loan grades:
Pass	$	4,798,052		1,916,072		1,476,786		951,881		500,615		1,398,775		10,993,461		18,699	$	22,054,341
Criticized accrual		196,680		98,595		107,010		73,126		36,232		185,935		484,755		15,628		1,197,961
Criticized nonaccrual		19,462		23,229		17,114		39,908		20,927		33,698		60,175		6,509		221,022
Total commercial, financial, leasing, etc.	$	5,014,194		2,037,896		1,600,910		1,064,915		557,774		1,618,408		11,538,391		40,836	$	23,473,324

Real estate:
Commercial:
Loan grades:
Pass	$	3,413,587		2,662,999		3,682,178		2,648,388		2,076,155		5,232,790		728,948		—	$	20,445,045
Criticized accrual		133,133		480,146		685,701		1,068,552		468,530		1,743,798		38,570		—		4,618,430
Criticized nonaccrual		21,587		133,560		195,084		83,857		76,628		520,473		38,091		—		1,069,280
Total commercial real estate	$	3,568,307		3,276,705		4,562,963		3,800,797		2,621,313		7,497,061		805,609		—	$	26,132,755

Residential builder and developer:
Loan grades:
Pass	$	786,983		106,510		75,287		47,587		4,680		12,450		230,017		—	$	1,263,514
Criticized accrual		2,055		5,356		117,258		13,637		630		—		891		—		139,827
Criticized nonaccrual		—		—		2,910		—		—		95		—		—		3,005
Total residential builder and developer	$	789,038		111,866		195,455		61,224		5,310		12,545		230,908		—	$	1,406,346

Other commercial construction:
Loan grades:
Pass	$	957,947		1,781,603		2,022,276		832,547		152,669		273,556		38,781		—	$	6,059,379
Criticized accrual		24,103		54,191		675,226		583,428		228,739		114,158		—		—		1,679,845
Criticized nonaccrual		—		—		71,613		3,303		12,263		19,970		4,256		—		111,405
Total other commercial construction	$	982,050		1,835,794		2,769,115		1,419,278		393,671		407,684		43,037		—	$	7,850,629

Summary of loans in Accrual and Nonaccrual Status

A summary of loans in accrual and nonaccrual status at September 30, 2022 for the various classes of the Company’s residential real estate loans and consumer loans by origination year follows.


	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Residential:
Current	$	4,057,196		4,049,835		2,734,863		1,345,076		760,442		7,731,831		30,119		—	$	20,709,362
30-89 days past due		35,387		53,249		28,996		76,049		15,744		363,807		7,125		—		580,357
Accruing loans past due 90 days or more		6,137		39,753		27,044		12,697		17,304		308,796		—		—		411,731
Nonaccrual		2,741		7,978		2,831		7,899		2,954		260,243		749		—		285,395
Total residential	$	4,101,461		4,150,815		2,793,734		1,441,721		796,444		8,664,677		37,993		—	$	21,986,845

Residential - limited documentation:
Current	$	—		—		—		—		—		974,779		—		—	$	974,779
30-89 days past due		—		—		—		—		—		17,274		—		—		17,274
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		95,382		—		—		95,382
Total residential - limited documentation	$	—		—		—		—		—		1,087,435		—		—	$	1,087,435

Consumer:
Home equity lines and loans:
Current	$	179		2,205		2,506		16,700		25,043		104,764		3,323,628		1,484,820	$	4,959,845
30-89 days past due		—		—		—		27		—		993		1,376		22,974		25,370
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		3		15		—		—		—		6,311		8,748		63,131		78,208
Total home equity lines and loans	$	182		2,220		2,506		16,727		25,043		112,068		3,333,752		1,570,925	$	5,063,423

Recreational finance:
Current	$	2,270,380		2,397,260		1,673,217		1,016,693		517,571		863,728		—		—	$	8,738,849
30-89 days past due		3,636		7,922		9,136		6,797		4,199		10,068		—		—		41,758
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		862		5,310		7,946		6,905		5,821		11,874		—		—		38,718
Total recreational finance	$	2,274,878		2,410,492		1,690,299		1,030,395		527,591		885,670		—		—	$	8,819,325

Automobile:
Current	$	1,040,034		1,698,621		780,755		433,718		202,662		127,105		—		—	$	4,282,895
30-89 days past due		3,753		9,992		6,091		6,354		4,641		4,719		—		—		35,550
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		557		8,573		7,837		8,418		6,710		8,223		—		—		40,318
Total automobile	$	1,044,344		1,717,186		794,683		448,490		214,013		140,047		—		—	$	4,358,763

Other:
Current	$	210,244		192,316		66,148		42,643		11,594		25,864		1,338,436		10,622	$	1,897,867
30-89 days past due		2,558		1,083		338		441		161		114		7,598		437		12,730
Accruing loans past due 90 days or more		—		—		—		—		—		8		3,755		—		3,763
Nonaccrual		1,405		742		304		277		79		245		45,668		102		48,822
Total other	$	214,207		194,141		66,790		43,361		11,834		26,231		1,395,457		11,161	$	1,963,182

Total loans and leases at June 30, 2022	$	18,045,302		19,658,286		13,841,700		13,558,114		8,259,526		28,514,393		24,663,705		1,684,561	$	128,225,587

A summary of loans in accrual and nonaccrual status at December 31, 2021 for the various classes of the Company’s residential real estate loans and consumer loans by origination year follows.


	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
	(In thousands)
Residential:
Current	$	3,057,118		1,672,090		1,075,896		466,040		1,037,958		5,913,461		72,309		—	$	13,294,872
30-89 days past due		15,245		12,535		9,886		6,132		33,097		162,666		—		—		239,561
Accruing loans past due 90 days or more		10,924		100,581		28,512		31,996		205,318		542,749		—		—		920,080
Nonaccrual		3,359		19,858		7,119		4,577		5,890		314,792		263		—		355,858
Total residential	$	3,086,646		1,805,064		1,121,413		508,745		1,282,263		6,933,668		72,572		—	$	14,810,371

Residential - limited documentation:
Current	$	—		—		—		—		—		1,124,520		—		—	$	1,124,520
30-89 days past due		—		—		—		—		—		16,666		—		—		16,666
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		122,888		—		—		122,888
Total residential - limited documentation	$	—		—		—		—		—		1,264,074		—		—	$	1,264,074

Consumer:
Home equity lines and loans:
Current	$	304		777		2,793		1,730		1,944		38,015		2,348,279		1,082,775	$	3,476,617
30-89 days past due		—		—		—		21		—		698		346		14,421		15,486
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		5,750		4,951		59,787		70,488
Total home equity lines and loans	$	304		777		2,793		1,751		1,944		44,463		2,353,576		1,156,983	$	3,562,591

Recreational finance:
Current	$	2,890,111		2,088,342		1,267,929		646,883		445,868		646,040		—		—	$	7,985,173
30-89 days past due		5,929		8,912		8,317		5,074		5,189		7,123		—		—		40,544
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		1,341		4,646		4,871		4,918		4,039		7,996		—		—		27,811
Total recreational finance	$	2,897,381		2,101,900		1,281,117		656,875		455,096		661,159		—		—	$	8,053,528

Automobile:
Current	$	2,220,061		1,097,684		662,000		341,655		211,774		71,598		—		—	$	4,604,772
30-89 days past due		8,508		6,615		8,936		7,161		5,715		3,129		—		—		40,064
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		1,588		4,390		7,847		7,867		6,882		5,463		—		—		34,037
Total automobile	$	2,230,157		1,108,689		678,783		356,683		224,371		80,190		—		—	$	4,678,873

Other:
Current	$	244,346		96,945		73,586		24,424		16,924		14,321		1,148,096		1,505	$	1,620,147
30-89 days past due		2,937		404		472		255		101		5,712		1,908		434		12,223
Accruing loans past due 90 days or more		—		—		—		—		—		3,302		—		—		3,302
Nonaccrual		2,051		326		326		193		104		353		40,807		129		44,289
Total other	$	249,334		97,675		74,384		24,872		17,129		23,688		1,190,811		2,068	$	1,679,961

Total loans and leases at December 31, 2021	$	18,817,411		12,376,366		12,286,933		7,895,140		5,558,871		18,542,940		16,234,904		1,199,887	$	92,912,452

Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the three months ended September 30, 2022 and 2021 were as follows:


	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Total
	(In thousands)
Three Months Ended September 30, 2022
Beginning balance	$	414,473			708,393			124,326			576,598		$	1,823,790
Provision for credit losses		43,343			26,949			(11,169	)		55,877			115,000
Net charge-offs
Charge-offs		(37,396	)		(35,213	)		(2,572	)		(26,086	)		(101,267	)
Recoveries		22,022			401			2,234			13,411			38,068
Net charge-offs		(15,374	)		(34,812	)		(338	)		(12,675	)		(63,199	)
Ending balance	$	442,442			700,530			112,819			619,800		$	1,875,591


	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Total
	(In thousands)
Three Months Ended September 30, 2021
Beginning balance	$	314,852			679,963			77,869			502,444		$	1,575,128
Provision for credit losses		(292	)		(42,016	)		(3,522	)		25,830			(20,000	)
Net charge-offs
Charge-offs		(26,598	)		(14,242	)		(1,925	)		(21,508	)		(64,273	)
Recoveries		3,785			2,362			1,903			16,119			24,169
Net charge-offs		(22,813	)		(11,880	)		(22	)		(5,389	)		(40,104	)
Ending balance	$	291,747			626,067			74,325			522,885		$	1,515,024

Changes in the allowance for credit losses for the nine months ended September 30, 2022 and 2021 were as follows:


	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Total
	(In thousands)
Nine Months Ended September 30, 2022
Beginning balance	$	283,899			557,239			71,726			556,362		$	1,469,226
Allowance on acquired PCD loans		41,003			55,812			1,833			352			99,000
Provision for credit losses (a)		167,985			116,288			40,719			102,008			427,000
Net charge-offs
Charge-offs (b)		(94,555	)		(45,809	)		(9,407	)		(78,148	)		(227,919	)
Recoveries		44,110			17,000			7,948			39,226			108,284
Net charge-offs		(50,445	)		(28,809	)		(1,459	)		(38,922	)		(119,635	)
Ending balance	$	442,442			700,530			112,819			619,800		$	1,875,591

4. Loans and leases and the allowance for credit losses, continued


	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Total
	(In thousands)
Nine Months Ended September 30, 2021
Beginning balance	$	405,846			670,719			103,590			556,232		$	1,736,387
Provision for credit losses		(57,610	)		32,650			(29,026	)		(6,014	)		(60,000	)
Net charge-offs
Charge-offs		(93,638	)		(87,417	)		(6,586	)		(79,926	)		(267,567	)
Recoveries		37,149			10,115			6,347			52,593			106,204
Net charge-offs		(56,489	)		(77,302	)		(239	)		(27,333	)		(161,363	)
Ending balance	$	291,747			626,067			74,325			522,885		$	1,515,024

(a)

Includes $242 million related to non-PCD acquired loans for the nine months ended September 30, 2022.

(b)

For the nine months ended September 30, 2022, net charge-offs do not reflect $33 million of charge-offs related to PCD acquired loans.

Loan and Leases Considered Nonaccrual and Interest Income Recognized on Loans

Information with respect to loans and leases that were considered nonaccrual at the beginning and end of the reporting period and the interest income recognized on such loans for the three months and nine months ended September 30, 2022 and 2021 follows.


	September 30, 2022						June 30, 2022		January 1, 2022		Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Amortized Cost		Interest Income Recognized		Interest Income Recognized
	(In thousands)

Commercial, financial, leasing, etc.	$	207,841	$	160,325	$	368,166	$	442,496	$	221,022	$	4,708	$	20,423
Real estate:
Commercial		394,502		1,011,698		1,406,200		1,476,658		1,069,280		7,059		14,944
Residential builder and developer		1,930		—		1,930		518		3,005		—		1,687
Other commercial construction		25,235		40,952		66,187		73,046		111,405		22		3,398
Residential		160,704		124,691		285,395		331,376		355,858		8,059		21,397
Residential — limited documentation		61,297		34,085		95,382		112,608		122,888		229		456
Consumer:
Home equity lines and loans		38,324		39,884		78,208		79,445		70,488		669		3,291
Recreational finance		31,295		7,423		38,718		33,414		27,811		166		488
Automobile		36,075		4,243		40,318		36,266		34,037		35		110
Other		48,741		81		48,822		47,178		44,289		84		268
Total	$	1,005,944	$	1,423,382	$	2,429,326	$	2,633,005	$	2,060,083	$	21,031	$	66,462

4. Loans and leases and the allowance for credit losses, continued


	September 30, 2021						June 30, 2021		January 1, 2021		Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Amortized Cost		Interest Income Recognized		Interest Income Recognized
	(In thousands)

Commercial, financial, leasing, etc.	$	171,040	$	109,149	$	280,189	$	330,040	$	306,827	$	4,646	$	10,661
Real estate:
Commercial		332,014		820,856		1,152,870		1,081,546		775,894		2,256		4,518
Residential builder and developer		594		—		594		14,552		1,094		206		239
Other commercial construction		36,750		121,949		158,699		133,758		114,039		255		570
Residential		196,918		156,508		353,426		372,144		365,729		6,809		17,603
Residential — limited documentation		81,538		44,991		126,529		136,683		147,170		100		336
Consumer:
Home equity lines and loans		38,582		32,892		71,474		76,711		79,392		979		2,924
Recreational finance		18,428		5,479		23,907		23,276		25,519		164		478
Automobile		27,258		3,744		31,002		31,090		39,404		46		143
Other		43,330		243		43,573		42,257		38,231		110		433
Total	$	946,452	$	1,295,811	$	2,242,263	$	2,242,057	$	1,893,299	$	15,571	$	37,905

Loan Modification Activities that were Considered Troubled Debt Restructurings

The tables that follow summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three-month and nine-month periods ended September 30, 2022 and 2021:


					Post-modification (a)
	Number		Pre- modification Recorded Investment		Principal Deferral		Interest Rate Reduction		Other		Combination of Concession Types		Total
Three Months Ended September 30, 2022	(Dollars in thousands)

Commercial, financial, leasing, etc.		70	$	32,451	$	11,237	$	446	$	229	$	21,519	$	33,431
Real estate:
Commercial		14		22,951		7,222		—		122		15,543		22,887
Residential		57		14,380		11,094		—		—		3,470		14,564
Residential — limited documentation		2		155		155		—		—		—		155
Consumer:
Home equity lines and loans		25		1,700		1,504		—		—		196		1,700
Recreational finance		167		6,937		6,937		—		—		—		6,937
Automobile		474		9,755		9,755		—		—		—		9,755
Other		30		371		371		—		—		—		371
Total		839	$	88,700	$	48,275	$	446	$	351	$	40,728	$	89,800


Three Months Ended September 30, 2021

Commercial, financial, leasing, etc.		62	$	49,884	$	6,051	$	—	$	40,242	$	3,479	$	49,772
Real estate:
Commercial		15		53,198		30,311		—		262		22,599		53,172
Residential		64		14,443		12,281		—		—		1,984		14,265
Residential — limited documentation		4		828		828		—		—		—		828
Consumer:
Home equity lines and loans		22		1,349		1,246		—		—		103		1,349
Recreational finance		67		2,565		2,565		—		—		—		2,565
Automobile		146		2,711		2,711		—		—		—		2,711
Other		15		123		123		—		—		—		123
Total		395	$	125,101	$	56,116	$	—	$	40,504	$	28,165	$	124,785

(a)

Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages. The present value of interest rate concessions, discounted at the effective rate of the original loan, was not material.

4. Loans and leases and the allowance for credit losses, continued


					Post-modification (a)
	Number		Pre- modification Recorded Investment		Principal Deferral		Interest Rate Reduction		Other		Combination of Concession Types		Total
Nine Months Ended September 30, 2022	(Dollars in thousands)

Commercial, financial, leasing, etc.		147	$	79,437	$	49,671	$	455	$	983	$	30,262	$	81,371
Real estate:
Commercial		44		33,349		13,052		—		2,223		17,728		33,003
Residential		221		56,912		40,821		—		—		18,469		59,290
Residential — limited documentation		7		1,231		1,049		—		—		193		1,242
Consumer:
Home equity lines and loans		93		6,483		6,089		—		—		461		6,550
Recreational finance		514		19,138		19,131		—		—		—		19,131
Automobile		1,537		29,789		29,759		—		—		—		29,759
Other		128		1,170		1,170		—		—		—		1,170
Total		2,691	$	227,509	$	160,742	$	455	$	3,206	$	67,113	$	231,516

Nine Months Ended September 30, 2021

Commercial, financial, leasing, etc.		244	$	174,366	$	42,143	$	—	$	40,464	$	90,770	$	173,377
Real estate:
Commercial		83		223,209		48,841		—		30,832		141,456		221,129
Other commercial construction		3		542		532		—		—		—		532
Residential		304		88,067		80,411		—		—		7,391		87,802
Residential — limited documentation		17		2,349		2,292		—		—		—		2,292
Consumer:
Home equity lines and loans		64		5,034		4,702		—		—		277		4,979
Recreational finance		173		5,896		5,896		—		—		—		5,896
Automobile		516		9,182		9,168		—		—		14		9,182
Other		338		2,393		2,393		—		—		—		2,393
Total		1,742	$	511,038	$	196,378	$	—	$	71,296	$	239,908	$	507,582

(a)