Loans and Leases (Tables)

3 Months Ended

Mar. 31, 2013

Loans And Leases, Net Of Deferred Costs And Fees

Loans and Leases, Net of Deferred Costs and Fees
				March 31,		December 31,
				2013		2012
	Commercial, financial, and agricultural			$	2,312,660	$	2,273,611
	Real estate - construction				779,344		847,781
	Real estate secured - residential				4,077,810		4,065,818
	Real estate secured - commercial				3,971,438		3,964,608
	Consumer				859,664		842,552
	Leases				998,787		900,371
			Total loans and leases	$	12,999,703	$	12,894,741

	Originated loans and leases			$	10,998,299	$	10,765,458
	Purchased loans and leases				2,001,404		2,129,283
			Total loans and leases	$	12,999,703	$	12,894,741

	Nonaccrual loans and leases			$	103,351	$	97,767
	Loans and leases contractually past due 90 days
		and still accruing			6,396		8,209
	Troubled debt restructurings				65,773		67,775
	Deferred origination costs, net of fees				18,149		17,763
	All overdrawn deposit accounts, reclassified
		as loans and evaluated for collectability			2,375		15,422

Net Investment In Direct Financing Leases

	A summary of our net investment in direct lease financing is presented below.

Net Investment in Direct Financing Leases
				March 31,		December 31,
				2013		2012
		Minimum lease payments receivable		$	598,443	$	568,110
		Estimated residual value of leases			481,312		409,753
		Unearned income under lease contracts			(80,968)		(77,492)
			Total leases	$	998,787	$	900,371

Credit Quality Indicators Credit Exposure

The following tables present Susquehanna's credit quality indicators by internally assigned grading and by payment activity at March 31, 2013 and December 31, 2012.


Credit Quality Indicators, at March 31, 2013

	Commercial Credit Exposure
		Credit-risk Profile by Internally Assigned Grade

									Real Estate -		Total
							Real Estate -		Secured -		Commercial
					Commercial		Construction ⁽¹⁾		Commercial ⁽²⁾		Credit Exposure
Originated loans and leases
	Grade:
		Pass ⁽³⁾		$	2,040,237	$	444,419	$	3,379,128	$	5,863,784
		Special mention ⁽⁴⁾			64,458		64,428		163,602		292,488
		Substandard ⁽⁵⁾			57,325		46,617		217,962		321,904
			Total	$	2,162,020	$	555,464	$	3,760,692	$	6,478,176
Purchased loans and leases
	Grade:
		Pass ⁽³⁾		$	126,400	$	67,896	$	881,966	$	1,076,262
		Special mention ⁽⁴⁾			6,403		13,867		90,842		111,112
		Substandard ⁽⁵⁾			17,837		41,033		157,375		216,245
			Total	$	150,640	$	122,796	$	1,130,183	$	1,403,619
Total loans and leases
	Grade:
		Pass ⁽³⁾		$	2,166,637	$	512,315	$	4,261,094	$	6,940,046
		Special mention ⁽⁴⁾			70,861		78,295		254,444		403,600
		Substandard ⁽⁵⁾			75,162		87,650		375,337		538,149
			Total	$	2,312,660	$	678,260	$	4,890,875	$	7,881,795


	Other Credit Exposure
		Credit-risk Profile based on Payment Activity

					Real Estate -
					Secured -						Total Other
					Residential		Consumer		Leases		Credit Exposure
Originated loans and leases
	Performing			$	2,649,622	$	849,898	$	997,487	$	4,497,007
	Nonperforming ⁽⁶⁾				21,179		637		1,300		23,116
		Total		$	2,670,801	$	850,535	$	998,787	$	4,520,123

Purchased loans and leases
	Performing			$	577,538	$	9,126	$	0	$	586,664
	Nonperforming ⁽⁶⁾				11,118		3		0		11,121
		Total		$	588,656	$	9,129	$	0	$	597,785

Total loans and leases
	Performing			$	3,227,160	$	859,024	$	997,487	$	5,083,671
	Nonperforming ⁽⁶⁾				32,297		640		1,300		34,237
		Total		$	3,259,457	$	859,664	$	998,787	$	5,117,908

Credit Quality Indicators, at December 31, 2012
	Commercial Credit Exposure
		Credit-risk Profile by Internally Assigned Grade

									Real Estate -		Total
							Real Estate -		Secured -		Commercial
					Commercial		Construction ⁽¹⁾		Commercial ⁽²⁾		Credit Exposure
Originated loans and leases
	Grade:
		Pass ⁽³⁾		$	2,008,548	$	439,296	$	3,388,337	$	5,836,181
		Special mention ⁽⁴⁾			45,733		76,852		141,817		264,402
		Substandard ⁽⁵⁾			60,123		45,102		213,776		319,001
			Total	$	2,114,404	$	561,250	$	3,743,930	$	6,419,584
Purchased loans and leases
	Grade:
		Pass ⁽³⁾		$	135,308	$	95,289	$	918,119	$	1,148,716
		Special mention ⁽⁴⁾			7,685		34,519		82,021		124,225
		Substandard ⁽⁵⁾			16,214		54,162		143,629		214,005
			Total	$	159,207	$	183,970	$	1,143,769	$	1,486,946
Total loans and leases
	Grade:
		Pass ⁽³⁾		$	2,143,856	$	534,585	$	4,306,456	$	6,984,897
		Special mention ⁽⁴⁾			53,418		111,371		223,838		388,627
		Substandard ⁽⁵⁾			76,337		99,264		357,405		533,006
			Total	$	2,273,611	$	745,220	$	4,887,699	$	7,906,530

	Other Credit Exposure
		Credit-risk Profile based on Payment Activity

					Real Estate -
					Secured -						Total Other
					Residential		Consumer		Leases		Credit Exposure
Originated loans and leases
	Performing			$	2,591,349	$	830,495	$	898,781	$	4,320,625
	Nonperforming ⁽⁶⁾				23,082		577		1,590		25,249
		Total		$	2,614,431	$	831,072	$	900,371	$	4,345,874

Purchased loans and leases
	Performing			$	618,796	$	11,469	$	0	$	630,265
	Nonperforming ⁽⁶⁾				12,061		11		0		12,072
		Total		$	630,857	$	11,480	$	0	$	642,337

Total loans and leases
	Performing			$	3,210,145	$	841,964	$	898,781	$	4,950,890
	Nonperforming ⁽⁶⁾				35,143		588		1,590		37,321
		Total		$	3,245,288	$	842,552	$	900,371	$	4,988,211

⁽¹⁾	Includes only construction loans granted to commercial customers. Construction loans for individuals are included in Real Estate – Secured – Residential, below.
⁽²⁾	Includes loans obtained for commercial purposes that are also secured by residential real estate.
⁽³⁾	Includes loans identified as having acceptable risk, which are loans for which the possibility of loss is considered unlikely.
⁽⁴⁾	Includes loans considered potentially weak; however, no loss of principal or interest is anticipated.
⁽⁵⁾	Includes loans that are inadequately protected by the current net-worth and paying capacity of the borrower or by the collateral pledged, if any. Loss of principal or interest is considered reasonably possible or likely.

⁽⁶⁾	Includes loans that are on non-accrual status or past due ninety days or more.

Age Analysis of Past Due Financing Receivables

The following tables detail the age analysis of Susquehanna's past due financing receivables as of March 31, 2013 and December 31, 2012.

Age Analysis of Past Due Financing Receivables, as of March 31, 2013

	Financing Receivables that are Accruing

												Total
		30-59 Days		60-89 Days		Greater than		Total				Financing
		Past Due		Past Due		90 Days		Past Due		Current		Receivables
Commercial		$	4,106	$	783	$	988	$	5,877	$	2,297,241	$	2,303,118
Real estate - construction			1,206		575		382		2,163		758,236		760,399
Real estate secured - residential			19,043		3,863		4,237		27,143		4,020,295		4,047,438
Real estate secured - commercial			9,687		5,427		0		15,114		3,912,983		3,928,097
Consumer			10,336		303		603		11,242		848,385		859,627
Leases			3,465		246		186		3,897		993,776		997,673
	Total	$	47,843	$	11,197	$	6,396	$	65,436	$	12,830,916	$	12,896,352

Originated loans and leases			42,585		10,557		5,490		58,632		10,846,201		10,904,833
Purchased loans and leases			5,258		640		906		6,804		1,984,715		1,991,519
	Total	$	47,843	$	11,197	$	6,396	$	65,436	$	12,830,916	$	12,896,352


	Financing Receivables that are Nonaccruing

												Total
		30-59 Days		60-89 Days		Greater than		Total				Financing
		Past Due		Past Due		90 Days		Past Due		Current		Receivables
Commercial		$	632	$	725	$	4,876	$	6,233	$	3,309	$	9,542
Real estate - construction			0		1,983		15,798		17,781		1,164		18,945
Real estate secured - residential			2,342		330		19,204		21,876		8,496		30,372
Real estate secured - commercial			3,149		1,682		28,171		33,002		10,339		43,341
Consumer			0		0		0		0		37		37
Leases			0		455		216		671		443		1,114
	Total	$	6,123	$	5,175	$	68,265	$	79,563	$	23,788	$	103,351

Originated loans and leases			5,705		4,453		63,155		73,313		20,153		93,466
Purchased loans and leases			418		722		5,110		6,250		3,635		9,885
	Total	$	6,123	$	5,175	$	68,265	$	79,563	$	23,788	$	103,351

Age Analysis of Past Due Financing Receivables, as of December 31, 2012

	Financing Receivables that are Accruing

												Total
		30-59 Days		60-89 Days		Greater than		Total				Financing
		Past Due		Past Due		90 Days		Past Due		Current		Receivables
Commercial		$	5,163	$	762	$	359	$	6,284	$	2,256,863	$	2,263,147
Real estate - construction			8,568		1,614		157		10,339		822,625		832,964
Real estate secured - residential			19,544		4,467		5,547		29,558		4,007,820		4,037,378
Real estate secured - commercial			9,623		13,746		1,394		24,763		3,897,224		3,921,987
Consumer			8,898		1,678		545		11,121		831,388		842,509
Leases			5,445		487		207		6,139		892,850		898,989
	Total	$	57,241	$	22,754	$	8,209	$	88,204	$	12,708,770	$	12,796,974

Originated loans and leases			51,679		21,471		5,720		78,870		10,596,166		10,675,036
Purchased loans and leases			5,562		1,283		2,489		9,334		2,112,604		2,121,938
	Total	$	57,241	$	22,754	$	8,209	$	88,204	$	12,708,770	$	12,796,974


	Financing Receivables that are Nonaccruing

												Total
		30-59 Days		60-89 Days		Greater than		Total				Financing
		Past Due		Past Due		90 Days		Past Due		Current		Receivables
Commercial		$	631	$	649	$	6,068	$	7,348	$	3,116	$	10,464
Real estate - construction			0		405		14,047		14,452		365		14,817
Real estate secured - residential			953		452		19,551		20,956		7,484		28,440
Real estate secured - commercial			2,483		622		30,433		33,538		9,083		42,621
Consumer			0		0		0		0		43		43
Leases			0		656		408		1,064		318		1,382
	Total	$	4,067	$	2,784	$	70,507	$	77,358	$	20,409	$	97,767

Originated loans and leases			4,067		2,379		65,830		72,276		18,146		90,422
Purchased loans and leases			0		405		4,677		5,082		2,263		7,345
	Total	$	4,067	$	2,784	$	70,507	$	77,358	$	20,409	$	97,767

Impaired Loans

Impaired Loans at March 31, 2013
														Average
							Recorded							Recorded
					Unpaid		Investment							Investment		Interest
					Principal		in Impaired			Related		Related		in Impaired		Income
					Balance		Loans			Charge-offs		Allowance		Loans ⁽²⁾		Recognized
Impaired loans without a related reserve:
	Commercial, financial, and agricultural			$	25,675	$	23,787		$	1,888			$	28,801	$	493
	Real estate - construction				24,486		17,715			6,771				17,086		131
	Real estate secured - residential				39,089		37,725			1,364				38,306		500
	Real estate secured - commercial				136,638		117,416			19,222				120,261		1,869
	Consumer				110		110			0				108		3
		Total impaired loans without a
			related reserve		225,998		196,753	⁽¹⁾		29,245				204,562		2,996
Impaired loans with a related reserve:
	Commercial, financial, and agricultural				10,315		10,187			128	$	3,429		4,480		36
	Real estate - construction				25,194		10,675			14,519		732		12,762		4
	Real estate secured - residential				30,255		29,679			576		3,689		29,785		369
	Real estate secured - commercial				41,163		30,812			10,351		4,060		30,723		238
	Consumer				0		0			0		0		0		0
		Total impaired loans with a
			related reserve		106,927		81,353			25,574		11,910		77,750		647
Total impaired loans:
	Commercial, financial, and agricultural				35,990		33,974			2,016		3,429		33,281		529
	Real estate - construction				49,680		28,390			21,290		732		29,848		135
	Real estate secured - residential				69,344		67,404			1,940		3,689		68,091		869
	Real estate secured - commercial				177,801		148,228			29,573		4,060		150,984		2,107
	Consumer				110		110			0		0		108		3
			Total impaired loans	$	332,925	$	278,106		$	54,819	$	11,910	$	282,312	$	3,643

Impaired loans without a related reserve:
	Originated loans and leases			$	73,947	$	45,878		$	28,069			$	55,862	$	794
	Purchased loans and leases				152,051		150,875			1,176				148,700		2,202
		Total impaired loans without a
			related reserve		225,998		196,753			29,245				204,562		2,996
Impaired loans with a related reserve:
	Originated loans and leases				101,223		75,703			25,520	$	10,557		71,875		584
	Purchased loans and leases				5,704		5,650			54		1,353		5,875		63
		Total impaired loans with a
			related reserve		106,927		81,353			25,574		11,910		77,750		647
Total impaired loans:
	Originated loans and leases				175,170		121,581			53,589		10,557		127,737		1,378
	Purchased loans and leases ⁽³⁾				157,755		156,525			1,230		1,353		154,575		2,265
			Total impaired loans	$	332,925	$	278,106		$	54,819	$	11,910	$	282,312	$	3,643

⁽¹⁾	$26,401 of the $196,753 total impaired loans without a related reserve represents loans that had been written down to the fair value of the underlying collateral through direct charge-offs of $29,245.

⁽²⁾	Average recorded investment in impaired loans is calculated on a quarterly basis using daily balances.
⁽³⁾	$5,650 of the $156,525 purchased impaired loans were subsequently impaired after being acquired.

Impaired Loans at December 31, 2012
														Average
							Recorded							Recorded
					Unpaid		Investment							Investment		Interest
					Principal		in Impaired			Related		Related		in Impaired		Income
					Balance		Loans			Charge-offs		Allowance		Loans ⁽²⁾		Recognized
Impaired loans without a related reserve:
	Commercial, financial, and agricultural			$	23,959	$	23,877		$	82			$	24,603	$	233
	Real estate - construction				48,394		32,717			15,677				34,223		882
	Real estate secured - residential				26,298		25,261			1,037				25,417		398
	Real estate secured - commercial				133,903		119,217			14,686				118,424		1,727
	Consumer				114		114			0				114		3
		Total impaired loans without a
			related reserve		232,668		201,186	⁽¹⁾		31,482				202,781		3,243
Impaired loans with a related reserve:
	Commercial, financial, and agricultural				4,240		4,184			56	$	3,267		4,278		47
	Real estate - construction				12,894		5,577			7,317		952		5,883		237
	Real estate secured - residential				32,640		32,375			265		6,633		32,498		333
	Real estate secured - commercial				49,322		39,331			9,991		4,884		40,778		486
	Consumer				0		0			0		0		0		0
		Total impaired loans with a
			related reserve		99,096		81,467			17,629		15,736		83,437		1,103
Total impaired loans:
	Commercial, financial, and agricultural				28,199		28,061			138		3,267		28,881		280
	Real estate - construction				61,288		38,294			22,994		952		40,106		1,119
	Real estate secured - residential				58,938		57,636			1,302		6,633		57,915		731
	Real estate secured - commercial				183,225		158,548			24,677		4,884		159,202		2,213
	Consumer				114		114			0		0		114		3
			Total impaired loans	$	331,764	$	282,653		$	49,111	$	15,736	$	286,218	$	4,346

Impaired loans without a related reserve:
	Originated loans and leases			$	76,120	$	45,560		$	30,560			$	49,975	$	764
	Purchased loans and leases				156,548		155,626			922				152,806		2,479
		Total impaired loans without a
			related reserve		232,668		201,186			31,482				202,781		3,243
Impaired loans with a related reserve:
	Originated loans and leases				92,471		74,842			17,629	$	14,649		76,823		1,033
	Purchased loans and leases				6,625		6,625			0		1,087		6,614		70
		Total impaired loans with a
			related reserve		99,096		81,467			17,629		15,736		83,437		1,103
Total impaired loans:
	Originated loans and leases				168,591		120,402			48,189		14,649		126,798		1,797
	Purchased loans and leases ⁽³⁾				163,173		162,251			922		1,087		159,420		2,549
			Total impaired loans	$	331,764	$	282,653		$	49,111	$	15,736	$	286,218	$	4,346

⁽¹⁾	$28,658 of the $201,186 total impaired loans without a related reserve represents loans that had been written down to the fair value of the underlying collateral through direct charge-offs of $31,482.

⁽²⁾	Average recorded investment in impaired loans is calculated on a quarterly basis using daily balances.
⁽³⁾	$6,625 of the $162,251 purchased impaired loans were subsequently impaired after being acquired.

Troubled Debt Restructurings

	The following table presents Troubled Debt Restructurings (TDR's), by class segment:

			March 31,		December 31,
			2013		2012
		Commercial, financial, and agricultural	$	14,863	$	8,744
		Real estate - construction		937		940
		Real estate secured - residential		20,172		23,224
		Real estate secured - commercial		28,689		33,589
		Consumer		1,112		1,278
		Total performing TDRs		65,773		67,775
		Non-performing TDRs ⁽¹⁾		25,808		24,603
		Total TDRs	$	91,581	$	92,378

		Performing TDRs		72%		73%
		Non-performing TDRs		28%		27%

⁽¹⁾	These loans are included in the 90 day past due and non-accrual categories.

	The following table provides detail of TDR balance and activity for the periods presented:

		Three months ended
		March 31,
		2013		2012
Performing TDRs, beginning of period		$	67,775	$	72,852
	New TDR Status		17,882		14,412
	Paydowns		(2,237)		(46)
	Charge-offs post modification		(121)		0
	Transfer to nonaccrual, past due 90 days or greater		(4,830)		(4,796)
	Cured		(12,341)		(10,371)
	Other, net ⁽¹⁾		(355)		30
Performing TDRs, end of period		$	65,773	$	72,081

Non-performing TDRs ⁽²⁾, end of period		$	25,808	$	18,720

Performing TDRs			72%		79%
Non-performing TDRs			28%		21%

⁽¹⁾	Includes $203 transferred to OREO in 2013.
⁽²⁾	Included in Age Analysis of Past Due Financing Receivables.

			Recorded Investment
								Financial Effect of
				Pre-Modification		Post-Modification		Modification
			Number of	Recorded		Recorded		Recorded
Three months ended March 31, 2013			Loans	Investment		Investment		Investment⁽¹⁾		Interest ⁽²⁾
Troubled Debt Restructurings
	Commercial, financial, and agricultural
		Other ⁽³⁾	16	$	7,493	$	7,493	$	0	$	0
	Real estate - construction
		Other ⁽³⁾	1		20		20		0		0
	Real estate secured - residential
		Other ⁽³⁾	59		5,412		5,412		0		0
		Combination of modification types	7		1,316		1,316		0		(128)
	Real estate secured - commercial
		Other ⁽³⁾	7		1,549		1,549		0		0
		Combination of modification types	1		1,436		1,436		0		(196)
	Consumer
		Other ⁽³⁾	87		656		656		0		0
	Total		178	$	17,882	$	17,882	$	0	$	(324)

Originated loans and leases			170	$	16,149	$	16,149	$	0	$	(281)
Purchased loans and leases			8		1,733		1,733		0		(43)
	Total		178	$	17,882	$	17,882	$	0	$	(324)

⁽¹⁾	Financial effects impacting the recorded investment include principal payments, advances, charge-offs, and capitalized past-due amounts.
⁽²⁾	Represents the present value of interest rate concessions discounted at the effective rate of the original loan.
⁽³⁾	Bankruptcies and maturity date extensions.

					Number of		Recorded
					Loans		Investment
Troubled Debt Restructurings that Subsequently
	Defaulted during the current period
		Commercial, financial, and agricultural			5	$	653
		Real estate - construction			1		20
		Real estate secured - residential			5		404
		Real estate secured - commercial			2		341
		Consumer			18		139
		Total			31	$	1,557

Originated loans and leases					28	$	1,357
Purchased loans and leases					3		200
		Total			31	$	1,557

			Recorded Investment
								Financial Effect of
				Pre-Modification		Post-Modification		Modification
			Number of	Recorded		Recorded		Recorded
Three months ended March 31, 2012			Loans	Investment		Investment		Investment⁽¹⁾		Interest ⁽²⁾
Troubled Debt Restructurings
	Commercial, financial, and agricultural
		Other ⁽³⁾	1	$	310	$	310	$	0	$	0
	Real estate - construction
		Other ⁽³⁾	0		0		0		0		0
	Real estate secured - residential
		Other ⁽³⁾	2		1,006		1,006		0		0
		Combination of modification types	8		2,434		2,434		0		6
	Real estate secured - commercial
		Other ⁽³⁾	4		10,662		10,662		0		0
		Combination of modification types	0		0		0		0		0
	Consumer
		Other ⁽³⁾	0		0		0		0		0
	Total		15	$	14,412	$	14,412	$	0	$	6

Originated loans and leases			7	$	2,541	$	2,541	$	0	$	(74)
Purchased loans and leases			8		11,871		11,871		0		80
	Total		15	$	14,412	$	14,412	$	0	$	6

⁽¹⁾	Financial effects impacting the recorded investment include principal payments, advances, charge-offs, and capitalized past-due amounts.
⁽²⁾	Represents the present value of interest rate concessions discounted at the effective rate of the original loan.
⁽³⁾	Bankruptcies and maturity date extensions.

					Number of		Recorded
					Loans		Investment
Troubled Debt Restructurings that Subsequently
	Defaulted during the current period
		Commercial, financial, and agricultural			0	$	0
		Real estate - construction			1		908
		Real estate secured - residential			3		1,339
		Real estate secured - commercial			0		0
		Consumer			0		0
		Total			4	$	2,247

Originated loans and leases					3	$	1,339
Purchased loans and leases					1		908
		Total			4	$	2,247

Unpaid Principal Balance And The Related Carrying Amount Of Acquired Loans

The unpaid principal balance and the related carrying amount of acquired loans are as follows:

			March 31,		December 31,
			2013		2012
	Credit impaired purchased loans evaluated individually
	for incurred credit losses
	Unpaid principal balance	$	222,596	$	238,538
	Carrying amount		156,525		162,251

	Other purchased loans evaluated collectively for
	incurred credit losses
	Unpaid principal balance		1,851,539		1,976,132
	Carrying amount		1,844,879		1,967,032

	Total purchased loans
	Unpaid principal balance		2,074,135		2,214,670
	Carrying amount		2,001,404		2,129,283

Schedule Of Changes In Accretable Discount Related To The Purchased Credit Impaired Loans

The changes in accretable discount related to the purchased credit impaired loans are as follows:

		Three Months Ended
		March 31,
		2013		2012
Balance - beginning of period		$	62,868	$	4,881
	Tower acquisition		0		54,418
	Accretion to interest income		(6,570)		(2,500)
	Net reclassification from non-accretable to accretable		2,519		0
Balance - end of period		$	58,817	$	56,799