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

9 Months Ended

Sep. 30, 2022

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, 2022, and December 31, 2021:

(dollars in thousands)	September 30, 2022		December 31, 2021
Commercial
Commercial and Industrial	$	1,368,966	$	1,361,921
Paycheck Protection Program		22,955		126,779
Commercial Mortgage		3,591,943		3,152,130
Construction		236,498		220,254
Lease Financing		73,989		105,108
Total Commercial		5,294,351		4,966,192
Consumer
Residential Mortgage		4,585,723		4,309,602
Home Equity		2,185,484		1,836,588
Automobile		820,640		736,565
Other ¹		435,408		410,129
Total Consumer		8,027,255		7,292,884
Total Loans and Leases	$	13,321,606	$	12,259,076

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

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, 2022, and September 30, 2021.

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended September 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	61,826		$	86,686		$	148,512
Loans and Leases Charged-Off		(147	)		(2,718	)		(2,865	)
Recoveries on Loans and Leases Previously Charged-Off		45			1,673			1,718
Net Loans and Leases Recovered (Charged-Off)		(102	)		(1,045	)		(1,147	)
Provision for Credit Losses		157			(1,086	)		(929	)
Balance at End of Period	$	61,881		$	84,555		$	146,436
Nine Months Ended September 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	64,950		$	92,871		$	157,821
Loans and Leases Charged-Off		(729	)		(9,390	)		(10,119	)
Recoveries on Loans and Leases Previously Charged-Off		465			6,390			6,855
Net Loans and Leases Recovered (Charged-Off)		(264	)		(3,000	)		(3,264	)
Provision for Credit Losses		(2,805	)		(5,316	)		(8,121	)
Balance at End of Period	$	61,881		$	84,555		$	146,436
Three Months Ended September 30, 2021
Allowance for Credit Losses:
Balance at Beginning of Period	$	78,639		$	101,746		$	180,385
Loans and Leases Charged-Off		(196	)		(3,249	)		(3,445	)
Recoveries on Loans and Leases Previously Charged-Off		118			2,134			2,252
Net Loans and Leases Recovered (Charged-Off)		(78	)		(1,115	)		(1,193	)
Provision for Credit Losses		(9,894	)		(1,378	)		(11,272	)
Balance at End of Period	$	68,667		$	99,253		$	167,920
Nine Months Ended September 30, 2021
Allowance for Credit Losses:
Balance at Beginning of Period	$	84,847		$	131,405		$	216,252
Loans and Leases Charged-Off		(900	)		(13,145	)		(14,045	)
Recoveries on Loans and Leases Previously Charged-Off		374			8,378			8,752
Net Loans and Leases Recovered (Charged-Off)		(526	)		(4,767	)		(5,293	)
Provision for Credit Losses		(15,654	)		(27,385	)		(43,039	)
Balance at End of Period	$	68,667		$	99,253		$	167,920

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, 2022.

		Term Loans by Origination Year
(dollars in thousands)	2022			2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
September 30, 2022
Commercial
Commercial and Industrial
Pass		$	274,968	$	382,203	$	240,451	$	71,445	$	49,597	$	76,600	$	234,231	$	212	$	1,329,707
Special Mention			287		-		-		-		111		94		18,087		-		18,579
Classified			-		9,482		1,064		-		1,686		6,378		2,045		25		20,680
Total Commercial and Industrial		$	275,255	$	391,685	$	241,515	$	71,445	$	51,394	$	83,072	$	254,363	$	237	$	1,368,966
Paycheck Protection Program
Pass		$	-	$	7,410	$	15,545	$	-	$	-	$	-	$	-	$	-	$	22,955
Total Paycheck Protection Program		$	-	$	7,410	$	15,545	$	-	$	-	$	-	$	-	$	-	$	22,955
Commercial Mortgage
Pass		$	943,746	$	824,641	$	711,566	$	285,509	$	133,164	$	513,977	$	58,187	$	-	$	3,470,790
Special Mention			29,854		37,949		31,175		-		1,493		-		-		-		100,471
Classified			690		3,172		7,264		628		-		8,928		-		-		20,682
Total Commercial Mortgage		$	974,290	$	865,762	$	750,005	$	286,137	$	134,657	$	522,905	$	58,187	$	-	$	3,591,943
Construction
Pass		$	51,288	$	65,884	$	94,072	$	16,957	$	-	$	594	$	7,703	$	-	$	236,498
Total Construction		$	51,288	$	65,884	$	94,072	$	16,957	$	-	$	594	$	7,703	$	-	$	236,498
Lease Financing
Pass		$	12,892	$	18,675	$	12,879	$	10,876	$	8,225	$	10,442	$	-	$	-	$	73,989
Total Lease Financing		$	12,892	$	18,675	$	12,879	$	10,876	$	8,225	$	10,442	$	-	$	-	$	73,989
Total Commercial		$	1,313,725	$	1,349,416	$	1,114,016	$	385,415	$	194,276	$	617,013	$	320,253	$	237	$	5,294,351
Consumer
Residential Mortgage
Pass		$	694,780	$	1,319,910	$	1,048,413	$	325,127	$	142,493	$	1,055,000	$	-	$	-	$	4,585,723
Total Residential Mortgage		$	694,780	$	1,319,910	$	1,048,413	$	325,127	$	142,493	$	1,055,000	$	-	$	-	$	4,585,723
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	985	$	2,146,118	$	33,833	$	2,180,936
Classified			-		-		-		-		-		189		2,477		1,882		4,548
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	1,174	$	2,148,595	$	35,715	$	2,185,484
Automobile
Pass		$	299,115	$	234,767	$	111,893	$	95,422	$	54,835	$	24,140	$	-	$	-	$	820,172
Classified			58		131		54		75		77		73		-		-		468
Total Automobile		$	299,173	$	234,898	$	111,947	$	95,497	$	54,912	$	24,213	$	-	$	-	$	820,640
Other¹
Pass		$	153,897	$	135,469	$	36,000	$	50,763	$	21,507	$	12,860	$	23,277	$	1,121	$	434,894
Classified			15		177		16		160		82		33		20		11		514
Total Other		$	153,912	$	135,646	$	36,016	$	50,923	$	21,589	$	12,893	$	23,297	$	1,132	$	435,408
Total Consumer		$	1,147,865	$	1,690,454	$	1,196,376	$	471,547	$	218,994	$	1,093,280	$	2,171,892	$	36,847	$	8,027,255
Total Loans and Leases		$	2,461,590	$	3,039,870	$	2,310,392	$	856,962	$	413,270	$	1,710,293	$	2,492,145	$	37,084	$	13,321,606

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

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 December 31, 2021.

		Term Loans by Origination Year
(dollars in thousands)	2021			2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
December 31, 2021
Commercial
Commercial and Industrial
Pass		$	455,984	$	301,646	$	79,826	$	68,026	$	27,246	$	75,321	$	256,240	$	471	$	1,264,760
Special Mention			1,966		32,667		-		-		-		101		27,031		-		61,765
Classified			10,851		1,919		87		1,990		505		17,481		2,509		54		35,396
Total Commercial and Industrial		$	468,801	$	336,232	$	79,913	$	70,016	$	27,751	$	92,903	$	285,780	$	525	$	1,361,921
Paycheck Protection Program
Pass		$	86,484	$	40,295	$	-	$	-	$	-	$	-	$	-	$	-	$	126,779
Total Paycheck Protection Program		$	86,484	$	40,295	$	-	$	-	$	-	$	-	$	-	$	-	$	126,779
Commercial Mortgage
Pass		$	958,719	$	736,155	$	338,160	$	261,991	$	178,436	$	459,337	$	53,386	$	-	$	2,986,184
Special Mention			68,768		39,773		-		30,000		-		6,069		-		-		144,610
Classified			3,740		7,815		640		-		-		9,141		-		-		21,336
Total Commercial Mortgage		$	1,031,227	$	783,743	$	338,800	$	291,991	$	178,436	$	474,547	$	53,386	$	-	$	3,152,130
Construction
Pass		$	67,069	$	94,878	$	40,051	$	-	$	596	$	-	$	17,660	$	-	$	220,254
Special Mention			-		-		-		-		-		-		-		-		-
Total Construction		$	67,069	$	94,878	$	40,051	$	-	$	596	$	-	$	17,660	$	-	$	220,254
Lease Financing
Pass		$	21,637	$	15,075	$	15,697	$	9,902	$	2,004	$	39,937	$	-	$	-	$	104,252
Classified			-		-		-		856		-		-		-		-		856
Total Lease Financing		$	21,637	$	15,075	$	15,697	$	10,758	$	2,004	$	39,937	$	-	$	-	$	105,108
Total Commercial		$	1,675,218	$	1,270,223	$	474,461	$	372,765	$	208,787	$	607,387	$	356,826	$	525	$	4,966,192
Consumer
Residential Mortgage¹
Pass		$	1,392,337	$	1,131,330	$	367,525	$	177,215	$	256,825	$	982,759	$	-	$	-	$	4,307,991
Classified			-		-		294		-		905		412		-		-		1,611
Total Residential Mortgage		$	1,392,337	$	1,131,330	$	367,819	$	177,215	$	257,730	$	983,171	$	-	$	-	$	4,309,602
Home Equity ¹
Pass		$	-	$	-	$	-	$	-	$	-	$	2,986	$	1,795,107	$	35,427	$	1,833,520
Classified			-		-		-		-		-		58		2,649		361		3,068
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	3,044	$	1,797,756	$	35,788	$	1,836,588
Automobile
Pass		$	301,285	$	152,022	$	138,887	$	91,411	$	33,268	$	18,963	$	-	$	-	$	735,836
Classified			165		85		134		137		120		88		-		-		729
Total Automobile		$	301,450	$	152,107	$	139,021	$	91,548	$	33,388	$	19,051	$	-	$	-	$	736,565
Other ²
Pass		$	172,735	$	49,769	$	92,983	$	44,489	$	16,218	$	6,444	$	25,622	$	1,444	$	409,704
Classified			39		90		183		47		27		17		22		-		425
Total Other		$	172,774	$	49,859	$	93,166	$	44,536	$	16,245	$	6,461	$	25,644	$	1,444	$	410,129
Total Consumer		$	1,866,561	$	1,333,296	$	600,006	$	313,299	$	307,363	$	1,011,727	$	1,823,400	$	37,232	$	7,292,884
Total Loans and Leases		$	3,541,779	$	2,603,519	$	1,074,467	$	686,064	$	516,150	$	1,619,114	$	2,180,226	$	37,757	$	12,259,076

¹	Certain prior period information has been reclassified to conform to current presentations.

²	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, 2022, and December 31, 2021.

(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, 2022
Commercial
Commercial and Industrial	$	132	$	75	$	—	$	49	$	256	$	1,368,710	$	1,368,966	$	49
Paycheck Protection Program		—		—		—		—		—		22,955		22,955		—
Commercial Mortgage		—		—		—		3,396		3,396		3,588,547		3,591,943		3,396
Construction		—		—		—		—		—		236,498		236,498		—
Lease Financing		—		—		—		—		—		73,989		73,989		—
Total Commercial		132		75		—		3,445		3,652		5,290,699		5,294,351		3,445
Consumer
Residential Mortgage		1,693		888		3,279		4,945		10,805		4,574,918		4,585,723		878
Home Equity		1,772		643		1,061		4,438		7,914		2,177,570		2,185,484		896
Automobile		9,498		1,374		467		—		11,339		809,301		820,640		—
Other ¹		1,829		775		513		—		3,117		432,291		435,408		—
Total Consumer		14,792		3,680		5,320		9,383		33,175		7,994,080		8,027,255		1,774
Total	$	14,924	$	3,755	$	5,320	$	12,828	$	36,827	$	13,284,779	$	13,321,606	$	5,219

As of December 31, 2021
Commercial
Commercial and Industrial	$	2,006	$	14	$	—	$	243	$	2,263	$	1,359,658	$	1,361,921	$	151
Paycheck Protection Program		—		—		—		—		—		126,779		126,779		—
Commercial Mortgage		—		—		—		8,205		8,205		3,143,925		3,152,130		8,205
Construction		—		—		—		—		—		220,254		220,254		—
Lease Financing		—		—		—		—		—		105,108		105,108		—
Total Commercial		2,006		14		—		8,448		10,468		4,955,724		4,966,192		8,356
Consumer
Residential Mortgage		2,046		1,263		3,159		3,305		9,773		4,299,829		4,309,602		—
Home Equity		1,791		748		3,456		4,881		10,876		1,825,712		1,836,588		1,544
Automobile		7,804		1,495		729		—		10,028		726,537		736,565		—
Other ¹		2,686		904		426		—		4,016		406,113		410,129		—
Total Consumer		14,327		4,410		7,770		8,186		34,693		7,258,191		7,292,884		1,544
Total	$	16,333	$	4,424	$	7,770	$	16,634	$	45,161	$	12,213,915	$	12,259,076	$	9,900

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, 2022, and December 31, 2021.

	September 30, 2022						December 31, 2021
(dollars in thousands)	Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans		Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans
Commercial
Commercial and Industrial	$	49	$	—	$	49	$	243	$	—	$	243
Commercial Mortgage		—		3,396		3,396		4,661		3,544		8,205
Total Commercial		49		3,396		3,445		4,904		3,544		8,448
Consumer
Residential Mortgage		4,869		76		4,945		2,959		346		3,305
Home Equity		4,438		—		4,438		4,881		—		4,881
Total Consumer		9,307		76		9,383		7,840		346		8,186
Total	$	9,356	$	3,472	$	12,828	$	12,744	$	3,890	$	16,634

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, 2022, and September 30, 2021.

	Loans Modified as a TDR for the Three Months Ended September 30, 2022						Loans Modified as a TDR for the Three Months Ended September 30, 2021
			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	$	213	$	16		2	$	153	$	2
Total Commercial		1		213		16		2		153		2
Consumer
Residential Mortgage		—		—		—		2		796		21
Home Equity		1		197		—		2		779		46
Automobile		40		793		11		71		1,632		22
Other ²		10		57		2		51		439		16
Total Consumer		51		1,047		13		126		3,646		105
Total		52	$	1,260	$	29		128	$	3,799	$	107

	Loans Modified as a TDR for the Nine Months Ended September 30, 2022						Loans Modified as a TDR for the Nine Months Ended September 30, 2021
			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	$	213	$	16		7	$	258	$	4
Total Commercial		1		213		16		7		258		4
Consumer
Residential Mortgage		5		1,205		71		14		5,785		584
Home Equity		3		282		5		9		1,488		80
Automobile ²		93		1,807		24		331		6,902		95
Other ^2,3		39		254		9		144		1,321		48
Total Consumer		140		3,548		109		498		15,496		807
Total		141	$	3,761	$	125		505	$	15,754	$	811

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, 2022, and September 30, 2021, 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, 2022				Three Months Ended September 30, 2021
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
Automobile		5	$	61		8	$	157
Other ²		4		27		5		27
Total Consumer		9		88		13		184
Total		9	$	88		13	$	184

	Nine Months Ended September 30, 2022				Nine Months Ended September 30, 2021
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	$	181		1	$	528
Home Equity		1		65		—		—
Automobile		14		228		12		213
Other ²		13		92		12		112
Total Consumer		29		566		25		853
Total		29	$	566		25	$	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.