Loans and Leases and the Allowance for Loan and Lease Losses (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019

Loans and Leases and Allowance for Loan and Lease Losses [Abstract]

The Company’s loan and lease portfolio was comprised of the following as of June 30, 2020, and December 31, 2019:



(dollars in thousands)	June 30, 2020		December 31, 2019
Commercial
Commercial and Industrial	$	1,956,939	$	1,379,152
Commercial Mortgage	2,707,534		2,518,051
Construction	245,099		194,170
Lease Financing	113,187		122,454
Total Commercial	5,022,759		4,213,827
Consumer
Residential Mortgage	3,989,393		3,891,100
Home Equity	1,640,887		1,676,073
Automobile	700,702		720,286
Other ¹	451,629		489,606
Total Consumer	6,782,611		6,777,065
Total Loans and Leases	$	11,805,370	$	10,990,892

Comprised of other revolving credit, installment, and lease financing.

Schedule of Portfolio Segment and Balance in Allowance Disaggregated on the Basis of Impairment Measurement Method

The following presents by portfolio segment, the activity in the Allowance for the three and six months ended June 30, 2020, and June 30, 2019.



(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended June 30, 2020
Allowance for Loan and Lease Losses:
Balance at Beginning of Period	$	67,987		$	70,163		$	138,150
Loans and Leases Charged-Off	(656		)	(7,627		)	(8,283		)
Recoveries on Loans and Leases Previously Charged-Off	1,524			1,648			3,172
Net Loans and Leases Recovered (Charged-Off)	868			(5,979		)	(5,111		)
Provision for Credit Losses	3,667			36,733			40,400
Balance at End of Period	$	72,522		$	100,917		$	173,439
Six Months Ended June 30, 2020
Allowance for Credit Losses:
Balance at Beginning of Period (December 31, 2019)	$	73,801		$	36,226		$	110,027
CECL Adoption (Day 1) Impact	(18,789		)	17,052			(1,737		)
Balance at Beginning of Period (January 1, 2020)	55,012			53,278			108,290
Loans and Leases Charged-Off	(1,349		)	(14,111		)	(15,460		)
Recoveries on Loans and Leases Previously Charged-Off	1,853			4,756			6,609
Net Loans and Leases Recovered (Charged-Off)	504			(9,355		)	(8,851		)
Provision for Credit Losses	17,006			56,994			74,000
Balance at End of Period	$	72,522		$	100,917		$	173,439

Three Months Ended June 30, 2019
Allowance for Loan and Lease Losses:
Balance at Beginning of Period	$	67,527		$	38,496		$	106,023
Loans and Leases Charged-Off	(206		)	(4,923		)	(5,129		)
Recoveries on Loans and Leases Previously Charged-Off	401			2,377			2,778
Net Loans and Leases Recovered (Charged-Off)	195			(2,546		)	(2,351		)
Provision for Credit Losses	1,546			2,454			4,000
Balance at End of Period	$	69,268		$	38,404		$	107,672
Six Months Ended June 30, 2019
Allowance for Credit Losses:
Balance at Beginning of Period	$	66,874		$	39,819		$	106,693
Loans and Leases Charged-Off	(2,192		)	(9,765		)	(11,957		)
Recoveries on Loans and Leases Previously Charged-Off	902			5,034			5,936
Net Loans and Leases Recovered (Charged-Off)	(1,290		)	(4,731		)	(6,021		)
Provision for Credit Losses	3,684			3,316			7,000
Balance at End of Period	$	69,268		$	38,404		$	107,672

Schedule of Recorded Investment in Loans and Leases by Class and by Credit Quality Indicator

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of June 30, 2020.



	Term Loans by Origination Year
(dollars in thousands)	YTD June 30, 2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
June 30, 2020
Commercial
Commercial and Industrial
Pass	$	755,648	$	221,992	$	199,600	$	78,712	$	83,437	$	101,529	$	431,950	$	1,163	$	1,874,031
Special Mention	1,358		126		2,046		—		114		194		7,131		—		10,969
Classified	23,031		838		1,620		1,111		1,649		20,163		23,424		103		71,939
Total Commercial and Industrial	$	780,037	$	222,956	$	203,266	$	79,823	$	85,200	$	121,886	$	462,505	$	1,266	$	1,956,939
Commercial Mortgage
Pass	$	433,742	$	568,350	$	385,977	$	280,736	$	319,128	$	543,951	$	73,922	$	—	$	2,605,806
Special Mention	4,543		—		21,517		13,160		1,261		5,453		—		—		45,934
Classified	33,168		4,368		2,789		1,405		4,791		9,273		—		—		55,794
Total Commercial Mortgage	$	471,453	$	572,718	$	410,283	$	295,301	$	325,180	$	558,677	$	73,922	$	—	$	2,707,534
Construction
Pass	$	66,853	$	87,978	$	33,825	$	11,356	$	—	$	1,915	$	42,020	$	—	$	243,947
Special Mention	1,152		—		—		—		—		—		—		—		1,152
Total Construction	$	68,005	$	87,978	$	33,825	$	11,356	$	—	$	1,915	$	42,020	$	—	$	245,099
Lease Financing
Pass	$	9,492	$	22,039	$	15,672	$	5,390	$	11,303	$	47,828	$	—	$	—	$	111,724
Classified	36		75		1,169		54		129		—		—		—		1,463
Total Lease Financing	$	9,528	$	22,114	$	16,841	$	5,444	$	11,432	$	47,828	$	—	$	—	$	113,187
Total Commercial	$	1,329,023	$	905,766	$	664,215	$	391,924	$	421,812	$	730,306	$	578,447	$	1,266	$	5,022,759
Consumer
Residential Mortgage
Pass	$	529,394	$	666,174	$	404,470	$	569,995	$	650,609	$	1,162,732	$	—	$	—	$	3,983,374
Classified	—		—		—		932		—		5,087		—		—		6,019
Total Residential Mortgage	$	529,394	$	666,174	$	404,470	$	570,927	$	650,609	$	1,167,819	$	—	$	—	$	3,989,393
Home Equity
Pass	$	—	$	—	$	—	$	—	$	—	$	5,563	$	1,587,454	$	41,957	$	1,634,974
Classified	—		—		—		—		—		72		4,701		1,140		5,913
Total Home Equity	$	—	$	—	$	—	$	—	$	—	$	5,635	$	1,592,155	$	43,097	$	1,640,887
Automobile
Pass	$	104,123	$	248,977	$	191,876	$	88,540	$	45,333	$	21,721	$	—	$	—	$	700,570
Classified	—		—		14		49		65		4		—		—		132
Total Automobile	$	104,123	$	248,977	$	191,890	$	88,589	$	45,398	$	21,725	$	—	$	—	$	700,702
Other¹
Pass	$	51,410	$	169,940	$	113,204	$	59,637	$	14,852	$	5,078	$	35,615	$	1,596	$	451,332
Classified	—		33		50		92		—		—		83		39		297
Total Other	$	51,410	$	169,973	$	113,254	$	59,729	$	14,852	$	5,078	$	35,698	$	1,635	$	451,629
Total Consumer	$	684,927	$	1,085,124	$	709,614	$	719,245	$	710,859	$	1,200,257	$	1,627,853	$	44,732	$	6,782,611
Total Loans and Leases	$	2,013,950	$	1,990,890	$	1,373,829	$	1,111,169	$	1,132,671	$	1,930,563	$	2,206,300	$	45,998	$	11,805,370

Comprised of other revolving credit, installment, and lease financing.

The following presents by loan class and credit quality indicator, the recorded investment in the Company’s loans and leases as of December 31, 2019.



	December 31, 2019
(dollars in thousands)	Commercial and Industrial		Commercial Mortgage		Construction		Lease Financing		Total Commercial
Pass	$	1,306,040	$	2,463,858	$	188,832	$	120,933	$	4,079,663
Special Mention	37,722		16,453		4,148		—		58,323
Classified	35,390		37,740		1,190		1,521		75,841
Total	$	1,379,152	$	2,518,051	$	194,170	$	122,454	$	4,213,827

(dollars in thousands)	Residential Mortgage		Home Equity		Automobile		Other¹		Total Consumer
Pass	$	3,886,389	$	1,671,468	$	719,337	$	488,113	$	6,765,307
Classified	4,711		4,605		949		1,493		11,758
Total	$	3,891,100	$	1,676,073	$	720,286	$	489,606	$	6,777,065
Total Recorded Investment in Loans and Leases									$	10,990,892

Comprised of other revolving credit, installment, and lease financing.

Schedule of Aging Analysis by Class of Loan and Lease Portfolio

The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of June 30, 2020, and December 31, 2019.



(dollars in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non-Accrual		Total Past Due and Non-Accrual		Current		Total Loans and Leases		Non-Accrual Loans and Leases that are Current ²
As of June 30, 2020
Commercial
Commercial and Industrial	$	293	$	82	$	—	$	459	$	834	$	1,956,105	$	1,956,939	$	373
Commercial Mortgage	—		—		—		8,672		8,672		2,698,862		2,707,534		8,672
Construction	—		—		—		—		—		245,099		245,099		—
Lease Financing	617		—		—		—		617		112,570		113,187		—
Total Commercial	910		82		—		9,131		10,123		5,012,636		5,022,759		9,045
Consumer
Residential Mortgage	4,736		1,921		4,937		5,888		17,482		3,971,911		3,989,393		657
Home Equity	914		703		3,519		5,176		10,312		1,630,575		1,640,887		1,351
Automobile	2,027		299		133		—		2,459		698,243		700,702		—
Other ¹	1,946		1,064		296		—		3,306		448,323		451,629		—
Total Consumer	9,623		3,987		8,885		11,064		33,559		6,749,052		6,782,611		2,008
Total	$	10,533	$	4,069	$	8,885	$	20,195	$	43,682	$	11,761,688	$	11,805,370	$	11,053

As of December 31, 2019
Commercial
Commercial and Industrial	$	12,534	$	148	$	—	$	830	$	13,512	$	1,365,640	$	1,379,152	$	421
Commercial Mortgage	2,998		—		—		9,244		12,242		2,505,809		2,518,051		9,244
Construction	101		51		—		—		152		194,018		194,170		—
Lease Financing	720		—		—		—		720		121,734		122,454		—
Total Commercial	16,353		199		—		10,074		26,626		4,187,201		4,213,827		9,665
Consumer
Residential Mortgage	6,097		2,070		1,839		4,125		14,131		3,876,969		3,891,100		1,429
Home Equity	3,949		2,280		4,125		3,181		13,535		1,662,538		1,676,073		412
Automobile	16,067		4,154		949		—		21,170		699,116		720,286		—
Other ¹	3,498		2,074		1,493		—		7,065		482,541		489,606		—
Total Consumer	29,611		10,578		8,406		7,306		55,901		6,721,164		6,777,065		1,841
Total	$	45,964	$	10,777	$	8,406	$	17,380	$	82,527	$	10,908,365	$	10,990,892	$	11,506


¹	Comprised of other revolving credit, installment, and lease financing.

Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected.

Schedule of Non-Accrual Loans and Leases

The following presents the non-accrual loans and leases as of June 30, 2020, and December 31, 2019.



	June 30, 2020						December 31, 2019
(dollars in thousands)	Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non-accrual loans		Total Non-accrual loans
Commercial
Commercial and Industrial	$	459	$	—	$	459	$	830
Commercial Mortgage	3,543		5,129		8,672		9,244
Total Commercial	4,002		5,129		9,131		10,074
Consumer
Residential Mortgage	5,422		466		5,888		4,125
Home Equity	5,176		—		5,176		3,181
Total Consumer	10,598		466		11,064		7,306
Total	$	14,600	$	5,595	$	20,195	$	17,380

All payments received while on non-accrual status are applied against the principal balance of the loan or lease. The Company does not recognize interest income while loans or leases are on non-accrual status.

Schedule of Loans Modified in a TDR and TDRs that Defaulted During the Period Within 12 mos of Modification Date

The following presents by class, information related to loans modified in a TDR during the three and six months ended June 30, 2020, and June 30, 2019.



	Loans Modified as a TDR for the Three Months Ended June 30, 2020							Loans Modified as a TDR for the Three Months Ended June 30, 2019
			Recorded			Increase in				Recorded			Increase in
Troubled Debt Restructurings	Number of		Investment			Allowance		Number of		Investment			Allowance
(dollars in thousands)	Contracts	(as of period end)¹			(as of period end)			Contracts	(as of period end)¹			(as of period end)
Commercial
Commercial and Industrial	—		$	—		$	—	1		$	99		$	10
Construction	1		1,152			—		—		—			—
Total Commercial	1		1,152			—		1		99			10
Consumer
Residential Mortgage	—		—			—		1		57			—
Home Equity	—		—			—		2		247			—
Automobile	19		305			5		79		1,488			21
Other ²	5		52			2		29		179			5
Total Consumer	24		357			7		111		1,971			26
Total	25		$	1,509		$	7	112		$	2,070		$	36

	Loans Modified as a TDR for the Six Months Ended June 30, 2020							Loans Modified as a TDR for the Six Months Ended June 30, 2019
			Recorded			Increase in				Recorded			Increase in
Troubled Debt Restructurings	Number of		Investment			Allowance		Number of		Investment			Allowance
(dollars in thousands)	Contracts	(as of period end)¹			(as of period end)			Contracts	(as of period end)¹			(as of period end)
Commercial
Commercial and Industrial	2		$	98		$	2	4		$	205		$	14
Commercial Mortgage	—		—			—		1		3,836			—
Construction	1		1,152			—		—		—			—
Total Commercial	3		1,250			2		5		4,041			14
Consumer
Residential Mortgage	—		—			—		1		57			—
Home Equity	—		—			—		2		247			—
Automobile	70		1,172			19		191		3,596			51
Other ²	35		274			11		66		385			10
Total Consumer	105		1,446			30		260		4,285			61
Total	108		$	2,696		$	32	265		$	8,326		$	75


¹	The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included.


²	Comprised of other revolving credit and installment financing.

The following presents by class, all loans modified in a TDR that defaulted during the three and six months ended June 30, 2020, and June 30, 2019, and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification.



	Three Months Ended June 30, 2020			Three Months Ended June 30, 2019
TDRs that Defaulted During the Period,		Recorded		Recorded
Within Twelve Months of their Modification Date	Number of	Investment		Number of	Investment
(dollars in thousands)	Contracts	(as of period end)¹		Contracts	(as of period end)¹
Commercial
Commercial and Industrial	—	$	—	1	$	58
Total Commercial	—	—		1	58

Consumer
Automobile	19	331		9	186
Other ²	2	14		11	63
Total Consumer	21	345		20	249
Total	21	$	345	21	$	307

	Six Months Ended June 30, 2020			Six Months Ended June 30, 2019
TDRs that Defaulted During the Period,		Recorded		Recorded
Within Twelve Months of their Modification Date	Number of	Investment		Number of	Investment
(dollars in thousands)	Contracts	(as of period end)¹		Contracts	(as of period end)¹
Commercial
Commercial and Industrial	—	$	—	1	$	58
Total Commercial	—	—		1	58

Consumer
Automobile	34	636		19	353
Other ²	6	40		20	109
Total Consumer	40	676		39	462
Total	40	$	676	40	$	520


¹	The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included.

Comprised of other revolving credit and installment financing.