Loans and Leases and the Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020, and December 31, 2019:

(dollars in thousands)	September 30, 2020		December 31, 2019
Commercial
Commercial and Industrial	$	1,908,482	$	1,379,152
Commercial Mortgage		2,745,611		2,518,051
Construction		250,943		194,170
Lease Financing		111,831		122,454
Total Commercial		5,016,867		4,213,827
Consumer
Residential Mortgage		4,044,228		3,891,100
Home Equity		1,605,486		1,676,073
Automobile		709,937		720,286
Other ¹		417,090		489,606
Total Consumer		6,776,741		6,777,065
Total Loans and Leases	$	11,793,608	$	10,990,892

Schedule of Activity in Allowance by Portfolio Segment

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

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended September 30, 2020
Allowance for Loan and Lease Losses:
Balance at Beginning of Period	$	72,522		$	100,917		$	173,439
Loans and Leases Charged-Off		(171	)		(2,176	)		(2,347	)
Recoveries on Loans and Leases Previously Charged-Off		231			3,573			3,804
Net Loans and Leases Recovered (Charged-Off)		60			1,397			1,457
Provision for Credit Losses		7,685			20,915			28,600
Balance at End of Period	$	80,267		$	123,229		$	203,496
Nine Months Ended September 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		(1,520	)		(16,287	)		(17,807	)
Recoveries on Loans and Leases Previously Charged-Off		2,084			8,329			10,413
Net Loans and Leases Recovered (Charged-Off)		564			(7,958	)		(7,394	)
Provision for Credit Losses		24,691			77,909			102,600
Balance at End of Period	$	80,267		$	123,229		$	203,496
Three Months Ended September 30, 2019
Allowance for Loan and Lease Losses:
Balance at Beginning of Period	$	69,268		$	38,404		$	107,672
Loans and Leases Charged-Off		(239	)		(5,516	)		(5,755	)
Recoveries on Loans and Leases Previously Charged-Off		318			2,451			2,769
Net Loans and Leases Recovered (Charged-Off)		79			(3,065	)		(2,986	)
Provision for Credit Losses		1,023			3,227			4,250
Balance at End of Period	$	70,370		$	38,566		$	108,936
Nine Months Ended September 30, 2019
Allowance for Credit Losses:
Balance at Beginning of Period	$	66,874		$	39,819		$	106,693
Loans and Leases Charged-Off		(2,431	)		(15,281	)		(17,712	)
Recoveries on Loans and Leases Previously Charged-Off		1,220			7,485			8,705
Net Loans and Leases Recovered (Charged-Off)		(1,211	)		(7,796	)		(9,007	)
Provision for Credit Losses		4,707			6,543			11,250
Balance at End of Period	$	70,370		$	38,566		$	108,936

Schedule of Recorded Investment in Loans and Leases by Class and 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 September 30, 2020.

		Term Loans by Origination Year
(dollars in thousands)	YTD September 30, 2020			2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
September 30, 2020
Commercial
Commercial and Industrial
Pass		$	858,458	$	171,894	$	184,256	$	73,712	$	62,461	$	86,296	$	364,123	$	977	$	1,802,177
Special Mention			9,201		510		2,155		162		2,001		147		20,397		-		34,573
Classified			24,114		807		906		938		1,593		20,049		23,187		138		71,732
Total Commercial and Industrial		$	891,773	$	173,211	$	187,317	$	74,812	$	66,055	$	106,492	$	407,707	$	1,115	$	1,908,482
Commercial Mortgage
Pass		$	588,510	$	521,907	$	377,630	$	270,617	$	290,575	$	487,821	$	74,547	$	-	$	2,611,607
Special Mention			5,621		24,850		19,416		15,463		1,252		5,432		-		-		72,034
Classified			41,454		659		4,884		276		4,791		9,906		-		-		61,970
Total Commercial Mortgage		$	635,585	$	547,416	$	401,930	$	286,356	$	296,618	$	503,159	$	74,547	$	-	$	2,745,611
Construction
Pass		$	89,712	$	117,759	$	14,221	$	11,450	$	-	$	-	$	17,801	$	-	$	250,943
Total Construction		$	89,712	$	117,759	$	14,221	$	11,450	$	-	$	-	$	17,801	$	-	$	250,943
Lease Financing
Pass		$	13,214	$	21,089	$	14,549	$	4,783	$	10,509	$	46,291	$	-	$	-	$	110,435
Classified			34		71		1,131		48		112		-		-		-		1,396
Total Lease Financing		$	13,248	$	21,160	$	15,680	$	4,831	$	10,621	$	46,291	$	-	$	-	$	111,831
Total Commercial		$	1,630,318	$	859,546	$	619,148	$	377,449	$	373,294	$	655,942	$	500,055	$	1,115	$	5,016,867
Consumer
Residential Mortgage
Pass		$	894,542	$	629,503	$	345,194	$	516,410	$	601,481	$	1,052,843	$	-	$	-	$	4,039,973
Classified			-		-		-		928		-		3,327		-		-		4,255
Total Residential Mortgage		$	894,542	$	629,503	$	345,194	$	517,338	$	601,481	$	1,056,170	$	-	$	-	$	4,044,228
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	5,337	$	1,557,040	$	38,766	$	1,601,143
Classified			-		-		-		-		-		69		3,212		1,062		4,343
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	5,406	$	1,560,252	$	39,828	$	1,605,486
Automobile
Pass		$	167,991	$	230,969	$	175,173	$	78,461	$	39,677	$	17,509	$	-	$	-	$	709,780
Classified			-		28		23		91		-		15		-		-		157
Total Automobile		$	167,991	$	230,997	$	175,196	$	78,552	$	39,677	$	17,524	$	-	$	-	$	709,937
Other¹
Pass		$	57,497	$	157,529	$	103,895	$	47,942	$	11,616	$	3,933	$	32,845	$	1,575	$	416,832
Classified			18		99		43		36		14		2		17		29		258
Total Other		$	57,515	$	157,628	$	103,938	$	47,978	$	11,630	$	3,935	$	32,862	$	1,604	$	417,090
Total Consumer		$	1,120,048	$	1,018,128	$	624,328	$	643,868	$	652,788	$	1,083,035	$	1,593,114	$	41,432	$	6,776,741
Total Loans and Leases		$	2,750,366	$	1,877,674	$	1,243,476	$	1,021,317	$	1,026,082	$	1,738,977	$	2,093,169	$	42,547	$	11,793,608

¹	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		Other ¹		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

¹	^{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 September 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 September 30, 2020
Commercial
Commercial and Industrial	$	220	$	47	$	—	$	475	$	742	$	1,907,740	$	1,908,482	$	290
Commercial Mortgage		—		—		—		8,615		8,615		2,736,996		2,745,611		8,615
Construction		—		—		—		—		—		250,943		250,943		—
Lease Financing		—		—		—		—		—		111,831		111,831		—
Total Commercial		220		47		—		9,090		9,357		5,007,510		5,016,867		8,905
Consumer
Residential Mortgage		2,695		1,583		6,607		3,543		14,428		4,029,800		4,044,228		—
Home Equity		2,628		1,019		2,571		3,661		9,879		1,595,607		1,605,486		1,396
Automobile		2,769		119		156		—		3,044		706,893		709,937		—
Other ¹		1,856		650		258		—		2,764		414,326		417,090		—
Total Consumer		9,948		3,371		9,592		7,204		30,115		6,746,626		6,776,741		1,396
Total	$	10,168	$	3,418	$	9,592	$	16,294	$	39,472	$	11,754,136	$	11,793,608	$	10,301

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.

²	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 September 30, 2020, and December 31, 2019.

	September 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	$	475	$	—	$	475	$	830
Commercial Mortgage		3,544		5,071		8,615		9,244
Total Commercial		4,019		5,071		9,090		10,074
Consumer
Residential Mortgage		3,202		341		3,543		4,125
Home Equity		3,661		—		3,661		3,181
Total Consumer		6,863		341		7,204		7,306
Total	$	10,882	$	5,412	$	16,294	$	17,380

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

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

	Loans Modified as a TDR for the Three Months Ended September 30, 2020						Loans Modified as a TDR for the Three Months Ended September 30, 2019
			Recorded		Increase in				Recorded		Increase in
Troubled Debt Restructurings			Investment		Allowance				Investment		Allowance
(dollars in thousands)	Number of Contracts		(as of period end)¹		(as of period end)		Number of Contracts		(as of period end)¹		(as of period end)
Commercial
Commercial and Industrial		1	$	92	$	1		1	$	45		—
Total Commercial		1		92		1		1		45		—
Consumer
Home Equity		2		134		—		—		—		—
Automobile		12		227		4		86		1,665		23
Other ²		7		93		4		14		117		3
Total Consumer		21		454		8		100		1,782		26
Total		22	$	546	$	9		101	$	1,827	$	26

	Loans Modified as a TDR for the Nine Months Ended September 30, 2020						Loans Modified as a TDR for the Nine Months Ended September 30, 2019
			Recorded		Increase in				Recorded		Increase in
Troubled Debt Restructurings			Investment		Allowance				Investment		Allowance
(dollars in thousands)	Number of Contracts		(as of period end)¹		(as of period end)		Number of Contracts		(as of period end)¹		(as of period end)
Commercial
Commercial and Industrial		3	$	188	$	3		5	$	244	$	14
Commercial Mortgage		1		1,099		—		1		3,766		—
Total Commercial		4		1,287		3		6		4,010		14
Consumer
Residential Mortgage		—		—		—		1		57		—
Home Equity		2		134		—		2		246		—
Automobile		81		1,346		22		271		5,011		69
Other ²		42		357		15		75		459		12
Total Consumer		125		1,837		37		349		5,773		81
Total		129	$	3,124	$	40		355	$	9,783	$	95

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 nine months ended September 30, 2020, and December 31, 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 September 30, 2020				Three Months Ended September 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
Consumer
Residential Mortgage		—		—		1	$	133
Home Equity		—		—		1		195
Automobile		1		6		9		126
Other ²		—		—		9		72
Total Consumer		1		6		20		526
Total		1	$	6		20	$	526

	Nine Months Ended September 30, 2020				Nine Months Ended September 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	$	55
Total Commercial		—		—		1		55
Consumer
Residential Mortgage		—		—		1		133
Home Equity		—		—		1		195
Automobile		33		591		22		326
Other ²		6		38		24		144
Total Consumer		39		629		48		798
Total		39	$	629		49	$	853

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.