XML 138 R12.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Loans and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Loans and Allowance for Credit Losses
NOTE 4 – LOANS AND LEASES AND ALLOWANCE FOR CREDIT LOSSES
Loans and leases, net of unearned income
Loans and leases, net of unearned income are summarized as follows as of December 31:
 
2019
 
2018
 
(in thousands)
Real estate – commercial mortgage
$
6,700,776

 
$
6,434,285

Commercial – industrial, financial and agricultural
4,446,701

 
4,404,548

Real estate – residential mortgage
2,641,465

 
2,251,044

Real estate – home equity
1,314,944

 
1,452,137

Real estate – construction
971,079

 
916,599

Consumer
463,164

 
419,186

Equipment lease financing
322,625

 
311,866

Overdrafts
3,582

 
2,774

Loans and leases, gross of unearned income
16,864,336

 
16,192,439

Unearned income
(26,810
)
 
(26,639
)
Loans and leases, net of unearned income
$
16,837,526

 
$
16,165,800



The Corporation has extended credit to officers and directors of the Corporation and to their associates. These related-party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and do not involve more than the normal risk of collection. The aggregate dollar amount of these loans, including unadvanced commitments, was $90.1 million and $116.4 million as of December 31, 2019 and 2018, respectively. During 2019, additions totaled $4.2 million and repayments totaled $30.5 million for related-party loans.
Allowance for Credit Losses
The following table presents the components of the allowance for credit losses as of December 31:
 
2019
 
2018
 
2017
 
(in thousands)
Allowance for loan and lease losses
$
163,622

 
$
160,537

 
$
169,910

Reserve for unfunded lending commitments
2,587

 
8,873

 
6,174

Allowance for credit losses
$
166,209

 
$
169,410

 
$
176,084



The following table presents the activity in the allowance for credit losses for the years ended December 31:
 
2019
 
2018
 
2017
 
(in thousands)
Balance at beginning of year
$
169,410

 
$
176,084

 
$
171,325

Loans and leases charged off
(53,189
)
 
(66,076
)
 
(33,290
)
Recoveries of loans and leases previously charged off
17,163

 
12,495

 
14,744

Net loans and leases charged off
(36,026
)
 
(53,581
)
 
(18,546
)
Provision for credit losses
32,825

 
46,907

 
23,305

Balance at end of year
$
166,209

 
$
169,410

 
$
176,084

The following tables present the activity in the allowance for loan and lease losses by portfolio segment for the years ended December 31 and loans and leases, net of unearned income, and their related allowance for loan and lease losses, by portfolio segment, as of December 31:
 
Real Estate -
Commercial
Mortgage
 
Commercial -
Industrial,
Financial and
Agricultural
 
Real Estate -
Home
Equity
 
Real Estate -
Residential
Mortgage
 
Real Estate -
Construction
 
Consumer
 
Equipment lease financing and other
 
Total
 
(in thousands)
Balance at December 31, 2017
$
58,793

 
$
66,280

 
$
18,127

 
$
16,088

 
$
6,620

 
$
2,045

 
$
1,957

 
$
169,910

Loans and leases charged off
(2,045
)
 
(52,441
)
 
(3,087
)
 
(1,574
)
 
(1,368
)
 
(3,040
)
 
(2,521
)
 
(66,076
)
Recoveries of loans and leases previously charged off
1,622

 
4,994

 
1,127

 
620

 
1,829

 
1,266

 
1,037

 
12,495

Net loans and leases (charged off) recovered
(423
)
 
(47,447
)
 
(1,960
)
 
(954
)
 
461

 
(1,774
)
 
(1,484
)
 
(53,581
)
Provision for loan and lease losses (1)
(5,481
)
 
40,035

 
2,744

 
3,787

 
(2,020
)
 
2,946

 
2,197

 
44,208

Balance at December 31, 2018
52,889

 
58,868

 
18,911

 
18,921

 
5,061

 
3,217

 
2,670

 
160,537

Loans and leases charged off
(1,837
)
 
(42,410
)
 
(1,291
)
 
(1,545
)
 
(143
)
 
(3,403
)
 
(2,560
)
 
(53,189
)
Recoveries of loans and leases previously charged off
2,202

 
8,721

 
688

 
989

 
2,591

 
1,306

 
666

 
17,163

Net loans and leases (charged off) recovered
365

 
(33,689
)
 
(603
)
 
(556
)
 
2,448

 
(2,097
)
 
(1,894
)
 
(36,026
)
Provision for loan and lease losses (1)
(7,644
)
 
43,423

 
(564
)
 
1,406

 
(3,066
)
 
2,642

 
2,914

 
39,111

Balance at December 31, 2019
$
45,610

 
$
68,602

 
$
17,744

 
$
19,771

 
$
4,443

 
$
3,762

 
$
3,690

 
$
163,622

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses at December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
39,683

 
$
58,487

 
$
7,938

 
$
10,562

 
$
4,066

 
$
3,756

 
$
3,690

 
$
128,182

Individually evaluated for impairment
5,927

 
10,115

 
9,806

 
9,209

 
377

 
6

 
—

 
35,440

 
$
45,610

 
$
68,602

 
$
17,744

 
$
19,771

 
$
4,443

 
$
3,762

 
$
3,690

 
$
163,622

Loans and leases, net of unearned income
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
6,654,280

 
$
4,393,402

 
$
1,292,872

 
$
2,603,239

 
$
967,461

 
$
463,156

 
$
282,869

 
$
16,657,279

Individually evaluated for impairment
46,496

 
53,299

 
22,072

 
38,226

 
3,618

 
8

 
16,528

 
180,247

 
$
6,700,776

 
$
4,446,701

 
$
1,314,944

 
$
2,641,465

 
$
971,079

 
$
463,164

 
$
299,397

 
$
16,837,526

Allowance for loan and lease losses at December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
45,634

 
$
46,355

 
$
8,541

 
$
9,527

 
$
4,268

 
$
3,210

 
$
2,670

 
$
120,205

Individually evaluated for impairment
7,255

 
12,513

 
10,370

 
9,394

 
793

 
7

 
—

 
40,332

 
$
52,889

 
$
58,868

 
$
18,911

 
$
18,921

 
$
5,061

 
$
3,217

 
$
2,670

 
$
160,537

Loans and leases, net of unearned income
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
6,388,212

 
$
4,349,255

 
$
1,428,764

 
$
2,212,274

 
$
909,209

 
$
419,175

 
$
268,733

 
$
15,975,622

Individually evaluated for impairment
46,073

 
55,293

 
23,373

 
38,770

 
7,390

 
11

 
19,268

 
190,178

 
$
6,434,285

 
$
4,404,548

 
$
1,452,137

 
$
2,251,044

 
$
916,599

 
$
419,186

 
$
288,001

 
$
16,165,800



(1)
For the year ended December 31, 2019, the provision for loan and lease losses excluded a $6.3 million decrease in the reserve for unfunded lending commitments. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $32.8 million for the year ended December 31, 2019. For the year ended December 31, 2018, the provision for loan losses excluded a $2.7 million increase in the reserve for unfunded lending commitments. The total provision for credit losses was $46.9 million for the year ended December 31, 2018.

N/A – Not applicable.
Impaired Loans

The following table presents total impaired loans and leases by class segment as of December 31: 
 
2019
 
2018
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Related
Allowance
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
25,005

 
$
22,702

 
$
—

 
$
25,095

 
$
23,481

 
$
—

Commercial
53,533

 
30,208

 
—

 
33,493

 
26,585

 
—

Real estate - residential mortgage
4,494

 
4,332

 
—

 
3,149

 
3,149

 
—

Real estate - construction
6,338

 
2,487

 
—

 
8,980

 
5,083

 
—

Equipment lease financing
19,269

 
16,528

 
—

 
19,269

 
19,268

 
—

 
108,639

 
76,257

 
 
 
89,986

 
77,566

 
 
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
29,581

 
23,794

 
5,927

 
29,005

 
22,592

 
7,255

Commercial
37,992

 
23,091

 
10,115

 
37,706

 
28,708

 
12,513

Real estate - home equity
25,039

 
22,072

 
9,806

 
26,599

 
23,373

 
10,370

Real estate - residential mortgage
38,483

 
33,894

 
9,209

 
39,972

 
35,621

 
9,394

Real estate - construction
3,875

 
1,131

 
377

 
5,984

 
2,307

 
793

Consumer
8

 
8

 
6

 
11

 
11

 
7

 
134,978

 
103,990

 
35,440

 
139,277

 
112,612

 
40,332

Total
$
243,617

 
$
180,247

 
$
35,440

 
$
229,263

 
$
190,178

 
$
40,332


As of December 31, 2019 and 2018, there were $76.3 million and $77.6 million, respectively, of impaired loans and leases that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans and leases exceeded their carrying amount, or the loans and leases have been charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.
The following table presents average impaired loans and leases, by class segment, for the years ended December 31:
 
2019
 
2018
 
2017
 
Average
Recorded
Investment
 
Interest Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest Income
Recognized (1)
 
(in thousands)
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
$
26,163

 
$
368

 
$
25,258

 
$
368

 
$
22,793

 
$
281

Commercial
25,777

 
122

 
33,395

 
259

 
31,357

 
182

Real estate - residential mortgage
3,875

 
94

 
3,727

 
91

 
4,631

 
107

Real estate - construction
3,559

 
—

 
6,943

 
—

 
7,255

 
12

Equipment lease financing
17,814

 
—

 
—

 
—

 
—

 
—

 
77,188

 
584

 
69,323

 
718

 
66,036

 
582

With a related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Real estate - commercial mortgage
25,428

 
351

 
24,300

 
345

 
27,193

 
338

Commercial
25,717

 
126

 
24,888

 
185

 
24,112

 
137

Real estate - home equity
23,004

 
845

 
24,426

 
794

 
21,704

 
534

Real estate - residential mortgage
34,407

 
829

 
36,387

 
896

 
39,093

 
903

Real estate - construction
1,573

 
—

 
2,683

 
—

 
6,160

 
11

Consumer
9

 
—

 
16

 
1

 
33

 
2

Equipment lease financing
83

 
—

 
3,854

 
—

 
285

 
—

 
110,221

 
2,151

 
116,554

 
2,221

 
118,580

 
1,925

Total
$
187,409

 
$
2,735

 
$
185,877

 
$
2,939

 
$
184,616

 
$
2,507



(1)
All impaired loans and leases, excluding accruing TDRs, were non-accrual loans and leases. Interest income recognized for the years ended December 31, 2019, 2018 and 2017 represents amounts earned on accruing TDRs.

Credit Quality Indicators and Non-performing Assets

The following table presents internal credit risk ratings for the indicated loan class segments as of December 31:

Pass
 
Special Mention
 
Substandard or Lower
 
Total

2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018

(dollars in thousands)
Real estate - commercial mortgage
$
6,429,407

 
$
6,129,463

 
$
137,163

 
$
170,827

 
$
134,206

 
$
133,995

 
$
6,700,776

 
$
6,434,285

Commercial - secured
3,830,847

 
3,902,484

 
171,442

 
193,470

 
195,884

 
129,026

 
4,198,173

 
4,224,980

Commercial -unsecured
234,987

 
171,589

 
9,665

 
4,016

 
3,876

 
3,963

 
248,528

 
179,568

Total commercial - industrial, financial and agricultural
4,065,834

 
4,074,073

 
181,107

 
197,486

 
199,760

 
132,989

 
4,446,701

 
4,404,548

Construction - commercial residential
100,808

 
104,079

 
2,897

 
6,912

 
3,461

 
6,881

 
107,166

 
117,872

Construction - commercial
765,562

 
723,030

 
1,322

 
1,163

 
2,676

 
2,533

 
769,560

 
726,726

Total construction (excluding construction - other)
866,370

 
827,109

 
4,219

 
8,075

 
6,137

 
9,414

 
876,726

 
844,598

Total
$
11,361,611

 
$
11,030,645

 
$
322,489

 
$
376,388

 
$
340,103

 
$
276,398

 
$
12,024,203

 
$
11,683,431

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of Total
94.5
%
 
94.4
%
 
2.7
%
 
3.2
%
 
2.8
%
 
2.4
%
 
100.0
%
 
100.0
%

The following table presents delinquency and non-performing status for loans and leases that did not have internal credit risk ratings, by class segment, as of December 31:
 
Performing
 
Delinquent (1)
 
Non-performing (2)
 
Total
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
(dollars in thousands)
Real estate - home equity
$
1,292,035

 
$
1,431,666

 
$
12,341

 
$
10,702

 
$
10,568

 
$
9,769

 
$
1,314,944

 
$
1,452,137

Real estate - residential mortgage
2,584,763

 
2,202,955

 
34,291

 
28,988

 
22,411

 
19,101

 
2,641,465

 
2,251,044

Real estate - construction - other
92,649

 
71,511

 
895

 
—

 
809

 
490

 
94,353

 
72,001

Consumer - direct
63,582

 
55,629

 
465

 
338

 
190

 
66

 
64,237

 
56,033

Consumer - indirect
393,974

 
359,405

 
4,685

 
3,405

 
268

 
343

 
398,927

 
363,153

Total consumer
457,556

 
415,034

 
5,150

 
3,743

 
458

 
409

 
463,164

 
419,186

Equipment lease financing
278,743

 
267,112

 
4,012

 
1,302

 
16,642

 
19,587

 
299,397

 
288,001

Total
$
4,705,746

 
$
4,388,278

 
$
56,689

 
$
44,735

 
$
50,888

 
$
49,356

 
$
4,813,323

 
$
4,482,369

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% of Total
97.8
%
 
97.9
%
 
1.2
%
 
1.0
%
 
1.0
%
 
1.1
%
 
100.0
%
 
100.0
%
 
(1)Includes all accruing loans and leases 30 days to 89 days past due.
(2)Includes all accruing loans and leases 90 days or more past due and all non-accrual loans.
The following table presents total non-performing assets as of December 31:
 
2019
 
2018
 
(in thousands)
Non-accrual loans and leases
$
125,098

 
$
128,572

Loans and leases 90 days or more past due and still accruing
16,057

 
11,106

Total non-performing loans and leases
141,155

 
139,678

OREO
6,831

 
10,518

Total non-performing assets
$
147,986

 
$
150,196



The following table presents past due status and non-accrual loans and leases, by portfolio segment and class segment, as of December 31:

 
2019
 
30-59
Days Past
Due
 
60-89
Days Past
Due
 
≥ 90 Days Past Due and Accruing
 
Non-
accrual
 
Current
 
Total
 
(in thousands)
Real estate - commercial mortgage
$
10,912

 
$
1,543

 
$
4,113

 
$
33,166

 
$
6,651,042

 
$
6,700,776

Commercial - secured
2,062

 
2,296

 
986

 
47,506

 
4,145,323

 
4,198,173

Commercial - unsecured
240

 
334

 
399

 
600

 
246,955

 
248,528

Total Commercial - industrial, financial and agricultural
2,302

 
2,630

 
1,385

 
48,106

 
4,392,278

 
4,446,701

Real estate - home equity
9,635

 
2,706

 
3,564

 
7,004

 
1,292,035

 
1,314,944

Real estate - residential mortgage
26,982

 
7,309

 
5,735

 
16,676

 
2,584,763

 
2,641,465

Construction - commercial
—

 
900

 
—

 
19

 
768,641

 
769,560

Construction - commercial residential
820

 
—

 
64

 
3,414

 
102,868

 
107,166

Construction - other
895

 
—

 
624

 
185

 
92,649

 
94,353

Total Real estate - construction
1,715

 
900

 
688

 
3,618

 
964,158

 
971,079

Consumer - direct
278

 
187

 
190

 
—

 
63,582

 
64,237

Consumer - indirect
3,950

 
735

 
268

 
—

 
393,974

 
398,927

Total Consumer
4,228

 
922

 
458

 
—

 
457,556

 
463,164

Equipment lease financing
552

 
3,460

 
114

 
16,528

 
278,743

 
299,397

         Total
$
56,326

 
$
19,470

 
$
16,057

 
$
125,098

 
$
16,620,575

 
$
16,837,526


 
2018
 
30-59
Days Past
Due
 
60-89
Days Past
Due
 
≥ 90 Days Past Due and Accruing
 
Non-
accrual
 
Current
 
Total
 
(in thousands)
Real estate - commercial mortgage
$
12,206

 
$
1,500

 
$
1,765

 
$
30,388

 
$
6,388,426

 
$
6,434,285

Commercial - secured
5,227

 
938

 
1,068

 
49,299

 
4,168,448

 
4,224,980

Commercial - unsecured
1,598

 
—

 
51

 
851

 
177,068

 
179,568

Total Commercial - industrial, financial and agricultural
6,825

 
938

 
1,119

 
50,150

 
4,345,516

 
4,404,548

Real estate - home equity
7,144

 
3,558

 
3,061

 
6,708

 
1,431,666

 
1,452,137

Real estate - residential mortgage
20,796

 
8,192

 
4,433

 
14,668

 
2,202,955

 
2,251,044

Construction - commercial
—

 
—

 
—

 
19

 
726,707

 
726,726

Construction - commercial residential
2,489

 
—

 
—

 
6,881

 
108,502

 
117,872

Construction - other
—

 
—

 
—

 
490

 
71,511

 
72,001

Total Real estate - construction
2,489

 
—

 
—

 
7,390

 
906,720

 
916,599

Consumer - direct
267

 
71

 
66

 
—

 
55,629

 
56,033

Consumer - indirect
2,908

 
497

 
343

 
—

 
359,405

 
363,153

Total Consumer
3,175

 
568

 
409

 
—

 
415,034

 
419,186

Equipment lease financing
1,005

 
297

 
319

 
19,268

 
267,112

 
288,001

         Total
$
53,640

 
$
15,053

 
$
11,106

 
$
128,572

 
$
15,957,429

 
$
16,165,800



The following table presents TDRs as of December 31:
 
2019
 
2018
 
(in thousands)
Real-estate - residential mortgage
$
21,551

 
$
24,102

Real estate - home equity
15,068

 
16,665

Real-estate - commercial mortgage
13,330

 
15,685

Commercial
5,193

 
5,143

Consumer
8

 
10

Total accruing TDRs
55,150

 
61,605

Non-accrual TDRs (1)
20,825

 
28,659

Total TDRs
$
75,975

 
$
90,264

 
(1)Included within non-accrual loans in the preceding table.

The following table presents TDRs by class segment and type of concession for loans that were modified during the years ended December 31:

 
2019
 
2018
 
2017
Number of Loans
 
Post-Modification Recorded Investment
 
Number of Loans
 
Post-Modification Recorded Investment
 
Number of Loans
 
Post-Modification Recorded Investment
 
(dollars in thousands)
 
Commercial
16

 
$
5,378

 
8

 
$
4,226

 
24

 
$
15,548

 
Real estate - commercial mortgage
2

 
263

 
6

 
8,261

 
10

 
2,911

 
Real estate - home equity
59

 
2,706

 
96

 
5,087

 
97

 
7,656

 
Real estate - residential mortgage
6

 
2,252

 
7

 
801

 
10

 
1,904

 
Real estate - construction
—

 
—

 
—

 
—

 
2

 
1,615

        Total
83

 
$
10,599

 
117

 
$
18,375

 
143

 
$
29,634



The following table presents TDRs, by class segment, that were modified during the years ended December 31, 2019, 2018 and 2017 that had a post-modification payment default during their respective year of modification. A payment default is defined as a single missed scheduled payment:
 
2019
 
2018
 
2017
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(dollars in thousands)
Real estate -construction
—

 
—

 
2

 
448

 
4

 
2,152

Real estate - residential mortgage
2

 
521

 
5

 
717

 
5

 
577

Commercial
5

 
442

 
1

 
2,163

 
6

 
1,571

Real estate - home equity
18

 
1,003

 
30

 
1,635

 
25

 
1,575

        Total
25

 
$
1,966

 
38

 
$
4,963

 
40

 
$
5,875