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

3 Months Ended

Mar. 31, 2021

Summary of Current, Past Due and Nonaccrual Loans

A summary of current, past due and nonaccrual loans as of March 31, 2021 and December 31, 2020 follows:

	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Nonaccrual		Total
	(In thousands)
March 31, 2021
Commercial, financial, leasing, etc.	$	27,327,644		182,686		5,791		295,069	$	27,811,190
Real estate:
Commercial		26,369,232		175,904		26,996		824,079		27,396,211
Residential builder and developer		1,269,858		7,909		—		1,224		1,278,991
Other commercial construction		8,580,462		37,986		6,099		126,225		8,750,772
Residential		14,198,898		191,860		1,041,873		385,508		15,818,139
Residential — limited documentation		1,372,339		16,136		—		143,069		1,531,544
Consumer:
Home equity lines and loans		3,720,689		15,926		—		79,188		3,815,803
Recreational finance		7,228,228		26,821		—		27,218		7,282,267
Automobile		4,178,258		28,970		—		38,219		4,245,447
Other		1,319,323		8,292		3,794		37,307		1,368,716
Total	$	95,564,931		692,490		1,084,553		1,957,106	$	99,299,080

December 31, 2020
Commercial, financial, leasing, etc.	$	27,196,862	60,822	10,053	306,827	$	27,574,564
Real estate:
Commercial		26,688,515	168,917	47,014	775,894		27,680,340
Residential builder and developer		1,246,095	1,693	856	1,094		1,249,738
Other commercial construction		8,523,591	66,365	3,816	114,039		8,707,811
Residential		13,764,836	200,406	792,888	365,729		15,123,859
Residential — limited documentation		1,462,277	19,687	—	147,170		1,629,134
Consumer:
Home equity lines and loans		3,881,885	24,329	—	79,392		3,985,606
Recreational finance		7,002,643	47,161	—	25,519		7,075,323
Automobile		4,007,349	55,498	—	39,404		4,102,251
Other		1,346,868	17,561	4,581	38,231		1,407,241
Total	$	95,120,921	662,439	859,208	1,893,299	$	98,535,867

Summary of Outstanding Loan Balances Related To COVID-19 Modifications Granted

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

A summary of outstanding loan balances for which COVID-19 related modifications were granted as of March 31, 2021 is presented below. These loans meet the criteria described in note 1 of Notes to Financial Statements in the 2020 Annual Report and, accordingly, are not considered past due or otherwise in default of loan terms as of the date presented. Substantially all of the modifications noted below expire during 2021.

	COVID-19 Related Modifications
March 31, 2021	Payment Deferrals⁽¹⁾			Other Forbearances⁽²⁾		Total
	(In thousands)

Commercial, financial, leasing, etc.	$	60,819		$	156,491	$	217,310
Real estate:
Commercial		507,491			361,664		869,155
Other commercial construction		72,452			100,901		173,353
Residential		3,017,626	(3)		—		3,017,626
Residential — limited documentation		296,987			—		296,987
Consumer:
Home equity lines and loans		18,529			—		18,529
Recreational finance		14,161			—		14,161
Automobile		24,882			—		24,882
Other		994			—		994
Total	$	4,013,941		$	619,056	$	4,632,997

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

The following table summarizes the loan grades applied at March 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	$	3,124,732		5,923,267		2,096,560		1,384,745		690,770		1,959,774		10,864,179		18,253	$	26,062,280
Criticized accrual		182,972		335,409		107,197		109,828		54,978		112,406		536,752		14,299		1,453,841
Criticized nonaccrual		684		6,652		30,437		58,718		16,522		68,214		105,392		8,450		295,069
Total commercial, financial, leasing, etc.	$	3,308,388		6,265,328		2,234,194		1,553,291		762,270		2,140,394		11,506,323		41,002	$	27,811,190

Real estate:
Commercial:
Loan grades:
Pass	$	631,465		3,077,590		4,586,114		3,077,605		2,507,906		7,513,879		850,376		—	$	22,244,935
Criticized accrual		720		584,844		556,339		833,519		269,903		2,014,016		67,856		—		4,327,197
Criticized nonaccrual		—		33,509		123,364		46,519		141,610		469,332		9,745		—		824,079
Total commercial real estate	$	632,185		3,695,943		5,265,817		3,957,643		2,919,419		9,997,227		927,977		—	$	27,396,211

Residential builder and developer:
Loan grades:
Pass	$	157,050		429,172		194,524		83,260		8,844		19,738		253,319		—	$	1,145,907
Criticized accrual		—		2,550		107,946		15,097		630		1,847		3,790		—		131,860
Criticized nonaccrual		—		—		518		—		—		706		—		—		1,224
Total residential builder and developer	$	157,050		431,722		302,988		98,357		9,474		22,291		257,109		—	$	1,278,991

Other commercial construction:
Loan grades:
Pass	$	169,597		1,346,451		3,120,357		1,603,206		649,578		484,087		71,183		—	$	7,444,459
Criticized accrual		1,130		22,703		167,294		548,509		301,956		138,496		—		—		1,180,088
Criticized nonaccrual		—		336		78,901		13,435		4,130		24,032		5,391		—		126,225
Total other commercial construction	$	170,727		1,369,490		3,366,552		2,165,150		955,664		646,615		76,574		—	$	8,750,772

The following table summarizes the loan grades applied at December 31, 2020 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
	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
	(In thousands)
Commercial, financial, leasing, etc.:
Loan grades:
Pass	$	7,732,728		2,277,233		1,505,486		930,834		719,796		1,387,695		11,352,416		21,286	$	25,927,474
Criticized accrual		388,326		84,358		113,940		41,587		39,930		73,401		584,751		13,970		1,340,263
Criticized nonaccrual		7,720		27,309		56,227		16,808		19,681		45,471		125,893		7,718		306,827
Total commercial, financial, leasing, etc.	$	8,128,774		2,388,900		1,675,653		989,229		779,407		1,506,567		12,063,060		42,974	$	27,574,564

Real estate:
Commercial:
Loan grades:
Pass	$	3,353,450		4,681,834		3,299,095		2,628,061		2,746,165		5,698,834		875,348		—	$	23,282,787
Criticized accrual		526,037		400,154		579,507		290,885		568,144		1,212,672		44,260		—		3,621,659
Criticized nonaccrual		26,876		121,899		47,144		99,293		197,319		248,949		34,414		—		775,894
Total commercial real estate	$	3,906,363		5,203,887		3,925,746		3,018,239		3,511,628		7,160,455		954,022		—	$	27,680,340

Residential builder and developer:
Loan grades:
Pass	$	506,295		223,880		109,453		15,048		10,976		11,320		236,943		—	$	1,113,915
Criticized accrual		3,690		106,847		14,836		3,421		—		1,885		4,050		—		134,729
Criticized nonaccrual		—		518		—		—		—		576		—		—		1,094
Total residential builder and developer	$	509,985		331,245		124,289		18,469		10,976		13,781		240,993		—	$	1,249,738

Other commercial construction:
Loan grades:
Pass	$	1,050,258		2,998,921		2,048,063		945,339		233,127		294,030		74,611		—	$	7,644,349
Criticized accrual		37,192		148,492		381,091		225,949		144,665		12,034		—		—		949,423
Criticized nonaccrual		335		65,592		13,522		4,213		12,097		12,873		5,407		—		114,039
Total other commercial construction	$	1,087,785		3,213,005		2,442,676		1,175,501		389,889		318,937		80,018		—	$	8,707,811

Summary of loans in Accrual and Nonaccrual Status

. A summary of loans in accrual and nonaccrual status at March 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	$	1,125,233		1,889,481		1,331,314		599,352		1,496,417		7,701,525		55,576		—	$	14,198,898
30-89 days past due		2,270		10,190		5,363		5,116		20,138		148,539		244		—		191,860
Accruing loans past due 90 days or more		—		97,784		28,810		40,613		248,186		626,480		—		—		1,041,873
Nonaccrual		508		19,705		12,889		3,571		5,003		343,638		194		—		385,508
Total residential	$	1,128,011		2,017,160		1,378,376		648,652		1,769,744		8,820,182		56,014		—	$	15,818,139

Residential - limited documentation:
Current	$	—		—		—		—		—		1,372,339		—		—	$	1,372,339
30-89 days past due		—		—		—		—		—		16,136		—		—		16,136
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		143,069		—		—		143,069
Total residential - limited documentation	$	—		—		—		—		—		1,531,544		—		—	$	1,531,544

Consumer:
Home equity lines and loans:
Current	$	74		953		3,777		2,316		2,281		50,886		2,458,179		1,202,223	$	3,720,689
30-89 days past due		—		—		23		—		18		917		258		14,710		15,926
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		6,263		5,714		67,211		79,188
Total home equity lines and loans	$	74		953		3,800		2,316		2,299		58,066		2,464,151		1,284,144	$	3,815,803

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

	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
	(In thousands)
Recreational finance:
Current	$	678,012		2,637,664		1,631,536		841,575		588,596		850,845		—		—	$	7,228,228
30-89 days past due		459		5,467		5,584		4,372		4,709		6,230		—		—		26,821
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		147		2,217		4,494		4,741		4,697		10,922		—		—		27,218
Total recreational finance	$	678,618		2,645,348		1,641,614		850,688		598,002		867,997		—		—	$	7,282,267

Automobile:
Current	$	569,198		1,499,937		996,107		553,269		377,492		182,255		—		—	$	4,178,258
30-89 days past due		632		4,010		7,384		6,231		5,963		4,750		—		—		28,970
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		491		2,248		7,925		9,686		9,595		8,274		—		—		38,219
Total automobile	$	570,321		1,506,195		1,011,416		569,186		393,050		195,279		—		—	$	4,245,447

Other:
Current	$	42,958		145,146		121,021		45,113		27,818		30,171		905,388		1,708	$	1,319,323
30-89 days past due		1,224		455		630		256		114		533		4,823		257		8,292
Accruing loans past due 90 days or more		—		—		—		—		—		336		3,458		—		3,794
Nonaccrual		838		210		562		294		183		215		34,832		173		37,307
Total other	$	45,020		145,811		122,213		45,663		28,115		31,255		948,501		2,138	$	1,368,716

Total loans and leases at March 31, 2021	$	6,690,394		18,077,950		15,326,970		9,890,946		7,438,037		24,310,850		16,236,649		1,327,284	$	99,299,080

A summary of loans in accrual and nonaccrual status at December 31, 2020 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
	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
	(In thousands)
Residential:
Current	$	2,722,862		1,416,259		618,736		1,318,094		718,235		6,898,756		71,894		—	$	13,764,836
30-89 days past due		13,496		7,781		7,258		13,477		7,947		150,447		—		—		200,406
Accruing loans past due 90 days or more		579		15,234		38,145		212,818		45,804		480,308		—		—		792,888
Nonaccrual		3,133		14,439		5,183		6,408		2,900		333,466		200		—		365,729
Total residential	$	2,740,070		1,453,713		669,322		1,550,797		774,886		7,862,977		72,094		—	$	15,123,859

Residential - limited documentation:
Current	$	—		—		—		—		—		1,462,277		—		—	$	1,462,277
30-89 days past due		—		—		—		—		—		19,687		—		—		19,687
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		147,170		—		—		147,170
Total residential - limited documentation	$	—		—		—		—		—		1,629,134		—		—	$	1,629,134

Consumer:
Home equity lines and loans:
Current	$	773		3,983		1,591		2,016		162		51,554		2,569,621		1,252,185	$	3,881,885
30-89 days past due		—		—		—		—		—		1,148		939		22,242		24,329
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		6,148		5,752		67,492		79,392
Total home equity lines and loans	$	773		3,983		1,591		2,016		162		58,850		2,576,312		1,341,919	$	3,985,606

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

	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
	(In thousands)
Recreational finance:
Current	$	2,796,359		1,751,766		907,595		630,151		352,414		564,358		—		—	$	7,002,643
30-89 days past due		9,548		11,255		8,519		6,638		2,938		8,263		—		—		47,161
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		1,854		3,883		4,072		4,194		2,733		8,783		—		—		25,519
Total recreational finance	$	2,807,761		1,766,904		920,186		640,983		358,085		581,404		—		—	$	7,075,323
Automobile:
Current	$	1,595,636		1,106,782		629,338		440,604		171,017		63,972		—		—	$	4,007,349
30-89 days past due		6,461		14,140		12,542		12,899		6,373		3,083		—		—		55,498
Accruing loans past due 90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		1,615		7,144		10,788		10,061		5,991		3,805		—		—		39,404
Total automobile	$	1,603,712		1,128,066		652,668		463,564		183,381		70,860		—		—	$	4,102,251

Other:
Current	$	160,424		137,617		53,702		32,556		4,526		28,970		927,217		1,856	$	1,346,868
30-89 days past due		1,879		1,130		577		2,301		42		557		10,594		481		17,561
Accruing loans past due 90 days or more		—		—		—		—		—		374		4,207		—		4,581
Nonaccrual		1,493		492		339		183		31		501		35,044		148		38,231
Total other	$	163,796		139,239		54,618		35,040		4,599		30,402		977,062		2,485	$	1,407,241

Total loans and leases at December 31, 2020	$	20,949,019		15,628,942		10,466,749		7,893,838		6,013,013		19,233,367		16,963,561		1,387,378	$	98,535,867

Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the three months ended March 31, 2021 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)

Beginning balance	$	405,846			670,719			103,590			556,232			—	$	1,736,387
Provision for credit losses		(72,418	)		99,471			(13,435	)		(38,618	)		—		(25,000	)
Net charge-offs
Charge-offs		(26,945	)		(60,652	)		(2,399	)		(32,929	)		—		(122,925	)
Recoveries		22,511			6,560			2,033			16,640			—		47,744
Net charge-offs		(4,434	)		(54,092	)		(366	)		(16,289	)		—		(75,181	)
Ending balance	$	328,994			716,098			89,789			501,325			—	$	1,636,206

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

Changes in the allowance for credit losses for the three months ended March 31, 2020 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(In thousands)

Beginning balance	$	366,094			322,201			56,033			229,118			77,625		$	1,051,071
Adoption of new accounting standard		(61,474	)		23,656			53,896			194,004			(77,625	)		132,457
Provision for credit losses		66,594			88,666			9,291			85,449			—			250,000
Net charge-offs
Charge-offs		(16,383	)		(1,272	)		(5,102	)		(44,947	)		—			(67,704	)
Recoveries		3,261			438			1,674			13,169			—			18,542
Net charge-offs		(13,122	)		(834	)		(3,428	)		(31,778	)		—			(49,162	)
Ending balance	$	358,092			433,689			115,792			476,793			—		$	1,384,366

Loan and Leases Considered Nonaccrual and Interest Income Recognized on Loans

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

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-month periods ended March 31, 2021 and 2020 follows.

	March 31, 2021						January 1, 2021		Three Months Ended March 31, 2021
	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Interest Income Recognized
	(In thousands)

Commercial, financial, leasing, etc.	$	211,894	$	83,175	$	295,069	$	306,827	$	3,085
Real estate:
Commercial		337,036		487,043		824,079		775,894		1,658
Residential builder and developer		1,224		—		1,224		1,094		33
Other commercial construction		24,186		102,039		126,225		114,039		41
Residential		186,374		199,134		385,508		365,729		4,498
Residential — limited documentation		84,342		58,727		143,069		147,170		79
Consumer:
Home equity lines and loans		44,548		34,640		79,188		79,392		952
Recreational finance		19,657		7,561		27,218		25,519		155
Automobile		33,270		4,949		38,219		39,404		49
Other		2,864		34,443		37,307		38,231		180
Total	$	945,395	$	1,011,711	$	1,957,106	$	1,893,299	$	10,730

	March 31, 2020						January 1, 2020		Three Months Ended March 31, 2020
	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Interest Income Recognized
	(In thousands)

Commercial, financial, leasing, etc.	$	153,924	$	132,723	$	286,647	$	346,743	$	1,738
Real estate:
Commercial		62,675		125,794		188,469		173,796		1,092
Residential builder and developer		3,204		—		3,204		4,708		48
Other commercial construction		12,039		22,896		34,935		35,881		861
Residential		67,221		226,417		293,638		322,504		6,819
Residential — limited documentation		26,444		92,873		119,317		114,667		201
Consumer:
Home equity lines and loans		26,230		36,841		63,071		65,039		1,459
Recreational finance		6,704		6,701		13,405		14,308		152
Automobile		9,802		9,449		19,251		21,293		47
Other		4,182		35,629		39,811		35,394		154
Total	$	372,425	$	689,323	$	1,061,748	$	1,134,333	$	12,571

Loan Modification Activities that were Considered Troubled Debt Restructurings

The table that follows summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the three-month periods ended March 31, 2021 and 2020:

					Post-modification (a)
	Number		Pre- modification Recorded Investment		Principal Deferral		Interest Rate Reduction		Other		Combination of Concession Types		Total
Three Months Ended March 31, 2021	(Dollars in thousands)

Commercial, financial, leasing, etc.		93	$	53,733	$	24,653	$	—	$	—	$	28,504	$	53,157
Real estate:
Commercial		33		26,870		11,160		—		2,214		12,422		25,796
Residential		123		39,583		38,557		—		—		1,117		39,674
Residential — limited documentation		10		1,116		1,059		—		—		—		1,059
Consumer:
Home equity lines and loans		26		1,715		1,486		—		—		174		1,660
Recreational finance		72		2,212		2,212		—		—		—		2,212
Automobile		276		4,969		4,955		—		—		14		4,969
Other		222		1,434		1,434		—		—		—		1,434
Total		855	$	131,632	$	85,516	$	—	$	2,214	$	42,231	$	129,961

Three Months Ended March 31, 2020

Commercial, financial, leasing, etc.		32	$	12,692	$	5,066	$	—	$	—	$	6,987	$	12,053
Real estate:
Commercial		10		39,642		1,355		—		—		35,968		37,323
Residential		27		10,178		3,247		—		—		8,977		12,224
Residential — limited documentation		9		2,980		2,667		—		—		1,232		3,899
Consumer:
Home equity lines and loans		6		738		412		—		—		334		746
Recreational finance		3		90		90		—		—		—		90
Automobile		9		182		182		—		—		—		182
Total		96	$	66,502	$	13,019	$	—	$	—	$	53,498	$	66,517

(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.