XML 40 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Past Due Loans, Allowance For Credit Losses, Non-Accrual Loans, and TDRS (Tables)
 9 Months Ended
Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Past Due Financing Receivables
The following table presents an aging analysis of the Company's past due loans as of September 30, 2020 and December 31, 2019 with balances presented on an amortized cost basis. The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date.
Aging Analysis of Past Due Loans and Non-performing Loans by Class(1)
(Dollar amounts in thousands)
 Aging Analysis (Accruing and Non-accrual)Non-performing Loans
 Current30-89 Days
Past Due		90 Days or
More Past
Due		Total
Past Due		Total
Loans		Non-
accrual		90 Days or More Past Due, Still Accruing Interest
As of September 30, 2020       
Commercial and industrial$4,583,661 $4,644 $47,266 $51,910 $4,635,571 $49,866 $1,003 
Agricultural370,387 428 6,651 7,079 377,466 13,293 — 
Commercial real estate:  
Office, retail, and industrial1,914,480 2,428 33,498 35,926 1,950,406 35,241 502 
Multi-family865,499 395 2,399 2,794 868,293 2,433 73 
Construction624,789 3,260 3,558 6,818 631,607 6,446 89 
Other commercial real estate1,435,606 6,402 10,986 17,388 1,452,994 17,675 790 
Total commercial real estate4,840,374 12,485 50,441 62,926 4,903,300 61,795 1,454 
Total corporate loans,
excluding PPP loans		9,794,422 17,557 104,358 121,915 9,916,337 124,954 2,457 
PPP loans1,196,538 — — — 1,196,538 — — 
Total corporate loans10,990,960 17,557 104,358 121,915 11,112,875 124,954 2,457 
Home equity817,184 6,014 4,548 10,562 827,746 9,548 19 
1-4 family mortgages2,276,561 4,288 6,706 10,994 2,287,555 9,070 445 
Installment422,916 1,236 860 2,096 425,012 — 860 
Total consumer loans3,516,661 11,538 12,114 23,652 3,540,313 18,618 1,324 
Total loans$14,507,621 $29,095 $116,472 $145,567 $14,653,188 $143,572 $3,781 
As of December 31, 2019       
Commercial and industrial$4,455,381 $11,468 $14,676 $26,144 $4,481,525 $29,995 $2,207 
Agricultural398,676 850 6,090 6,940 405,616 5,954 358 
Commercial real estate:       
Office, retail, and industrial1,830,321 2,943 15,454 18,397 1,848,718 25,857 546 
Multi-family853,762 211 2,580 2,791 856,553 2,697 — 
Construction588,065 4,876 152 5,028 593,093 152 — 
Other commercial real estate1,377,678 3,233 2,797 6,030 1,383,708 4,729 529 
Total commercial real estate4,649,826 11,263 20,983 32,246 4,682,072 33,435 1,075 
Total corporate loans9,503,883 23,581 41,749 65,330 9,569,213 69,384 3,640 
Home equity841,908 4,992 4,554 9,546 851,454 8,443 146 
1-4 family mortgages1,917,648 5,452 3,978 9,430 1,927,078 4,442 1,203 
Installment491,406 1,167 12 1,179 492,585 — 12 
Total consumer loans3,250,962 11,611 8,544 20,155 3,271,117 12,885 1,361 
Total loans$12,754,845 $35,192 $50,293 $85,485 $12,840,330 $82,269 $5,001 
(1) Prior to the adoption of CECL on January 1, 2020, purchased credit impaired ("PCI") loans with an accretable yield were considered current and were not included in past due loan totals. In addition, PCI loans with an accretable yield were excluded from non-accrual loans. Subsequent to adoption, PCD loans, including those previously classified as PCI, are included in past due and non-accrual loan totals. In addition, an allowance for credit losses is established as of the acquisition date or upon the adoption of CECL for loans previously classified as PCI, as PCD loans are no longer recorded net of a credit-related acquisition adjustment.
Allowance for Credit Losses on Financing Receivables A rollforward of the allowance for credit losses by portfolio segment for the quarters and nine months ended September 30, 2020 and 2019 is presented in the table below. PPP loans are excluded from this table as there is no allowance for credit losses associated with these loans due to guarantees.
Allowance for Credit Losses by Portfolio Segment
(Dollar amounts in thousands)
 Commercial,
Industrial, and
Agricultural		Office,
Retail, and
Industrial		Multi-
family		ConstructionOther
Commercial
Real Estate		ConsumerAllowance for
Unfunded
Commitments		Total
Allowance for Credit Losses
Quarter Ended September 30, 2020       
Beginning balance$123,977 $24,441 $5,311 $11,522 $21,862 $52,939 $7,625 $247,677 
Allowance established
for acquired PCD
loans		(1,188)— — — — — — (1,188)
Charge-offs(6,853)(1,344)— (4,889)(1,823)(2,629)— (17,538)
Recoveries1,118 5 — — 70 602 — 1,795 
Net charge-offs(5,735)(1,339)— (4,889)(1,753)(2,027)— (15,743)
Provision for loan
losses and other		8,674 1,636 428 99 3,522 1,568 200 16,127 
Ending balance$125,728 $24,738 $5,739 $6,732 $23,631 $52,480 $7,825 $246,873 
Quarter Ended September 30, 2019       
Beginning balance$66,364 $7,495 $2,159 $1,862 $4,997 $22,852 $1,200 $106,929 
Charge-offs(7,176)(293)— — (184)(3,619)— (11,272)
Recoveries1,205 74 38 2 227 527 — 2,073 
Net charge-offs(5,971)(219)38 2 43 (3,092)— (9,199)
Provision for loan
losses and other		5,002 65 565 (98)1,188 5,776 — 12,498 
Ending balance$65,395 $7,341 $2,762 $1,766 $6,228 $25,536 $1,200 $110,228 
Nine Months Ended September 30, 2020      
Beginning balance$62,830 $7,580 $2,950 $1,697 $6,408 $26,557 $1,200 $109,222 
Adjustment to apply
  recent accounting
  pronouncements(1)
20,159 11,686 397 10,300 11,427 16,235 5,553 75,757 
Allowance established
for acquired PCD
loans		11,452 2,003 — — — 39 872 14,366 
Charge-offs(19,592)(4,774)(19)(7,495)(2,162)(11,660)— (45,702)
Recoveries3,097 20 5 — 226 1,574 — 4,922 
Net charge-offs(16,495)(4,754)(14)(7,495)(1,936)(10,086)— (40,780)
Provision for loan
  losses and other		47,782 8,223 2,406 2,230 7,732 19,735 200 88,308 
Ending balance$125,728 $24,738 $5,739 $6,732 $23,631 $52,480 $7,825 $246,873 
Nine Months Ended September 30, 2019      
Beginning balance$63,276 $7,900 $2,464 $2,173 $4,934 $21,472 $1,200 $103,419 
Charge-offs(20,143)(2,526)(340)(6)(723)(9,735)— (33,473)
Recoveries3,764 235 39 18 293 1,500 — 5,849 
Net charge-offs(16,379)(2,291)(301)12 (430)(8,235)— (27,624)
Provision for loan
  losses and other		18,498 1,732 599 (419)1,724 12,299 — 34,433 
Ending balance$65,395 $7,341 $2,762 $1,766 $6,228 $25,536 $1,200 $110,228 
(1) As a result of accounting guidance adopted in the first quarter of 2020, the increase in allowance for credit losses, net of tax, was recognized as a cumulative-effect adjustment to retained earnings as of January 1, 2020. For further discussion of this guidance, see Note 2, "Recent Accounting Pronouncements and Other Guidance."
Schedule of Loans and The Related Allowance For Credit Losses
The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of September 30, 2020 and December 31, 2019.
Loans and Related Allowance for Credit Losses by Portfolio Segment
(Dollar amounts in thousands)
 LoansAllowance for Credit Losses
 Individually
Evaluated		Collectively
Evaluated
PCD/PCI(1)
TotalIndividually
Evaluated		Collectively
Evaluated
PCD/PCI(1)
Total
As of September 30, 2020        
Commercial, industrial,
 agricultural		$51,289 $4,875,613 $86,135 $5,013,037 $6,457 $105,378 $13,893 $125,728 
Commercial real estate:       
Office, retail, and industrial25,345 1,875,811 49,250 1,950,406 1,105 15,207 8,426 24,738 
Multi-family1,280 860,002 7,011 868,293 — 5,465 274 5,739 
Construction2,977 612,681 15,949 631,607 — 4,722 2,010 6,732 
Other commercial real estate3,145 1,391,948 57,901 1,452,994 88 12,047 11,496 23,631 
Total commercial real estate32,747 4,740,442 130,111 4,903,300 1,193 37,441 22,206 60,840 
Total corporate loans,
excluding PPP loans		84,036 9,616,055 216,246 9,916,337 7,650 142,819 36,099 186,568 
PPP loans— 1,196,538 — 1,196,538 — — — — 
Total corporate loans84,036 10,812,593 216,246 11,112,875 7,650 142,819 36,099 186,568 
Consumer23 3,516,157 24,133 3,540,313 — 51,694 786 52,480 
Allowance for unfunded
commitments		— — — — — 7,825 — 7,825 
Total loans$84,059 $14,328,750 $240,379 $14,653,188 $7,650 $202,338 $36,885 $246,873 
As of December 31, 2019        
Commercial, industrial, and
  agricultural		$34,142 $4,807,114 $45,885 $4,887,141 $3,414 $59,108 $308 $62,830 
Commercial real estate:        
Office, retail, and industrial24,820 1,795,557 28,341 1,848,718 578 6,899 103 7,580 
Multi-family1,995 851,857 2,701 856,553 — 2,854 96 2,950 
Construction123 581,747 11,223 593,093 — 1,681 16 1,697 
Other commercial real estate3,241 1,323,635 56,832 1,383,708 — 4,867 1,541 6,408 
Total commercial real estate30,179 4,552,796 99,097 4,682,072 578 16,301 1,756 18,635 
Total corporate loans64,321 9,359,910 144,982 9,569,213 3,992 75,409 2,064 81,465 
Consumer— 3,248,916 22,201 3,271,117 — 25,424 1,133 26,557 
Allowance for unfunded
commitments		— — — — — 1,200 — 1,200 
Total loans$64,321 $12,608,826 $167,183 $12,840,330 $3,992 $102,033 $3,197 $109,222 
(1)Prior to the adoption of CECL on January 1, 2020, loans that had evidence of credit deterioration since origination and for which it was probable at acquisition that the Company would not collect all contractually required principal and interest payments were classified as PCI.
Impaired Financing Receivables
The following table presents collateral-dependent loans, including PCD loans, without regard to accrual status by primary collateral type and non-accrual loans with no related allowance as of September 30, 2020. PPP loans are excluded from this table as there is no allowance for credit losses associated with these loans due to guarantees.
Collateral-dependent Loans and Non-accrual Loans With No Related Allowance by Class
(Dollar amounts in thousands)

Type of CollateralNon-accrual Loans
With No Related
Allowance
Real
Estate		Blanket
Lien		Equipment
Commercial and industrial$27,238 $39,761 $2,484 $39,507 
Agricultural10,259 2,677 — 2,406 
Commercial real estate:
Office, retail, and industrial43,834 — — 21,756 
Multi-family2,116 — — 1,280 
Construction6,848 — — 3,280 
Other commercial real estate32,805 — — 10,471 
Total commercial real estate85,603 — — 36,787 
Total corporate loans123,100 42,438 2,484 78,700 
Home equity247 — — 123 
1-4 family mortgages2,725 — — 552 
Installment— — — — 
Total consumer loans2,972 — — 675 
Total loans$126,072 $42,438 $2,484 $79,375 
Loans Individually Evaluated
The following table presents loans individually evaluated by class of loan as of September 30, 2020 and December 31, 2019. PCD and PCI loans are excluded from this disclosure.
Loans Individually Evaluated by Class
(Dollar amounts in thousands)
 As of September 30, 2020As of December 31, 2019
 Recorded Investment In Recorded Investment In 
 Loans with
No Specific
Allowance		Loans with
a Specific
Allowance		Unpaid
Principal
Balance		Specific
Allowance		Loans with
No Specific
Allowance		Loans with
a Specific
Allowance		Unpaid
Principal
Balance		Specific
Allowance
Commercial and industrial$36,735 $1,618 $51,829 $299 $12,885 $15,516 $52,559 $2,456 
Agricultural2,407 10,529 18,129 6,158 1,889 3,852 9,293 958 
Commercial real estate:        
Office, retail, and industrial20,308 5,037 29,422 1,105 14,111 10,709 37,007 578 
Multi-family1,280 — 1,279 — 1,995 — 1,995 — 
Construction2,977 — 3,144 — 123 — 123 — 
Other commercial real estate2,231 914 4,207 88 3,241 — 3,495 — 
Total commercial real estate26,796 5,951 38,052 1,193 19,470 10,709 42,620 578 
Total corporate loans65,938 18,098 108,010 7,650 34,244 30,077 104,472 3,992 
Consumer23 — 23 — — — — — 
Total non-accrual loans
individually evaluated		$65,961 $18,098 $108,033 $7,650 $34,244 $30,077 $104,472 $3,992 
Financing Receivable Credit Quality Indicators The following tables present credit quality indicators for corporate and consumer loans on an amortized cost basis as of September 30, 2020 and net loan charge-offs for the nine months ended September 30, 2020. PPP loans are excluded from this table as there is no allowance for credit losses associated with these loans due to guarantees.
Corporate Loan Portfolio by Origination Year
(Dollar amounts in thousands)
 
2020(1)
2019201820172016Prior
Revolving
Loans
Total
Commercial, industrial, agricultural:    
Pass$554,985 $850,903 $810,527 $487,372 $212,757 $424,072 $1,214,399 $4,555,015 
Special Mention(2)
6,498 18,569 41,688 9,943 21,798 17,137 115,293 230,926 
Substandard(3)
337 3,855 62,921 21,842 16,511 23,337 35,134 163,937 
Non-accrual(4)
— 3,900 23,665 9,190 1,197 7,327 17,880 63,159 
Total commercial,
industrial,
agricultural		$561,820 $877,227 $938,801 $528,347 $252,263 $471,873 $1,382,706 $5,013,037 
Commercial, industrial,
agricultural, net loan
charge-offs		$— $586 $1,431 $1,626 $1,934 $1,589 $9,329 $16,495 
Office, retail, and industrial:
Pass$115,443 $263,308 $218,204 $312,063 $287,643 $628,127 $5,664 $1,830,452 
Special Mention(2)
1,425 646 4,392 12,086 24,284 17,765 200 60,798 
Substandard(3)
— — — 283 1,499 22,133 — 23,915 
Non-accrual(4)
— — 131 181 10,238 24,691 — 35,241 
Total office, retail,
and industrial		$116,868 $263,954 $222,727 $324,613 $323,664 $692,716 $5,864 $1,950,406 
Office, retail, and
industrial net loan
charge-offs		$— $333 $155 $5 $1,628 $2,633 $— $4,754 
Multi-family:
Pass$134,824 $171,572 $82,460 $111,504 $87,424 $236,960 $27,511 $852,255 
Special Mention(2)
— 98 — — 5,496 2,170 — 7,764 
Substandard(3)
— — 385 78 — 5,378 — 5,841 
Non-accrual(4)
— — — 1,279 — 1,154 — 2,433 
Total multi-family$134,824 $171,670 $82,845 $112,861 $92,920 $245,662 $27,511 $868,293 
Multi-family net loan
charge-offs		$— $3 $— $1 $— $10 $— $14 
Construction:
Pass$56,790 $129,311 $172,855 $82,528 $57,401 $65,769 $29,494 $594,148 
Special Mention(2)
— — 44 3,655 3,838 1,286 — 8,823 
Substandard(3)
— — — 7,717 10,335 4,138 — 22,190 
Non-accrual(4)
— — — — — 4,787 1,659 6,446 
Total construction$56,790 $129,311 $172,899 $93,900 $71,574 $75,980 $31,153 $631,607 
Construction net loan
charge-offs		$— $118 $— $5,490 $— $1,887 $— $7,495 
Other commercial real estate:
Pass$114,175 $183,856 $227,370 $201,760 $117,615 $381,532 $26,480 $1,252,788 
Special Mention(2)
— 3,863 19,906 7,574 7,874 47,524 243 86,984 
Substandard(3)
— 1,483 22,662 6,400 10,341 54,661 — 95,547 
Non-accrual(4)
— — 671 3,315 1,545 12,051 93 17,675 
Total other
commercial real
estate		$114,175 $189,202 $270,609 $219,049 $137,375 $495,768 $26,816 $1,452,994 
Other commercial real
estate net loan charge-
offs		$— $430 $179 $366 $183 $778 $— $1,936 
(1)Represents year-to-date loans originated during 2020.
(2)Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
(3)Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured, and collection of principal and interest is expected within a reasonable time.
(4)Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.
Consumer Loan Portfolio by Origination Year
(Dollar amounts in thousands)
 
2020(1)
2019201820172016Prior
Revolving
Loans
Total
Home equity:     
Performing$11,158 $12,747 $15,191 $12,661 $10,187 $58,265 $697,989 $818,198 
Non-accrual— 22 238 261 520 7,133 1,374 9,548 
Total home equity$11,158 $12,769 $15,429 $12,922 $10,707 $65,398 $699,363 $827,746 
Home equity net
loan charge-offs		$— $— $1 $(1)$1 $(61)$(21)$(81)
1-4 family mortgages:
Performing$794,744 $670,925 $261,250 $146,737 $176,780 $228,049 $— $2,278,485 
Non-accrual— — 439 83 63 8,485 — 9,070 
Total 1-4 family
mortgages		$794,744 $670,925 $261,689 $146,820 $176,843 $236,534 $— $2,287,555 
1-4 family mortgages
net loan charge-offs		$— $— $32 $— $7 $729 $— $768 
Installment:
Performing$76,270 $169,380 $93,266 $38,384 $14,695 $12,492 $20,525 $425,012 
Non-accrual— — — — — — — — 
Total installment$76,270 $169,380 $93,266 $38,384 $14,695 $12,492 $20,525 $425,012 
Installment net loan
charge-offs		$190 $4,995 $2,835 $885 $85 $373 $36 $9,399 
(1)Represents year-to-date loans originated during 2020.
During the quarter and nine months ended September 30, 2020, $5.2 million and $29.0 million, respectively, of revolving loans converted to term loans.
The following tables present credit quality indicators by class for corporate and consumer loans on an amortized cost basis as of December 31, 2019.
Corporate Credit Quality Indicators by Class
(Dollar amounts in thousands)
Pass
Special
Mention(1)
Substandard(2)
Non-accrual(3)
Total
As of December 31, 2019     
Commercial and industrial$4,324,709 $47,665 $79,156 $29,995 $4,481,525 
Agricultural350,827 32,764 16,071 5,954 405,616 
Commercial real estate:     
Office, retail, and industrial1,747,287 42,230 33,344 25,857 1,848,718 
Multi-family839,615 8,279 5,962 2,697 856,553 
Construction564,495 17,977 10,469 152 593,093 
Other commercial real estate1,295,155 39,788 44,036 4,729 1,383,708 
Total commercial real estate4,446,552 108,274 93,811 33,435 4,682,072 
Total corporate loans$9,122,088 $188,703 $189,038 $69,384 $9,569,213 
(1)Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
(2)Loans categorized as substandard exhibit a well-defined weakness that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured and collection of principal and interest is expected within a reasonable time.
(3)Loans categorized as non-accrual exhibit a well-defined weakness that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.
Consumer Credit Quality Indicators by Class
(Dollar amounts in thousands)
PerformingNon-accrualTotal
As of December 31, 2019   
Home equity$843,011 $8,443 $851,454 
1-4 family mortgages1,922,636 4,442 1,927,078 
Installment492,585 — 492,585 
Total consumer loans$3,258,232 $12,885 $3,271,117 
Troubled Debt Restructuring Activity Rollforward The table below presents TDRs by class as of September 30, 2020 and December 31, 2019. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDRs.
TDRs by Class
(Dollar amounts in thousands)
 As of September 30, 2020As of December 31, 2019
 Accruing
Non-accrual(1)
TotalAccruing
Non-accrual(1)
Total
Commercial and industrial$— $12,982 $12,982 $227 $16,420 $16,647 
Agricultural— — — — — — 
Commercial real estate:      
Office, retail, and industrial— 2,340 2,340 — 3,600 3,600 
Multi-family— 160 160 163 — 163 
Construction— — — — — — 
Other commercial real estate193 — 193 170 — 170 
Total commercial real estate193 2,500 2,693 333 3,600 3,933 
Total corporate loans193 15,482 15,675 560 20,020 20,580 
Home equity31 123 154 36 240 276 
1-4 family mortgages617 232 849 637 — 637 
Installment— — — — 254 254 
Total consumer loans648 355 1,003 673 494 1,167 
Total loans$841 $15,837 $16,678 $1,233 $20,514 $21,747 
(1)These TDRs are included in non-accrual loans in the preceding tables.
A rollforward of the carrying value of TDRs for the quarters and nine months ended September 30, 2020 and 2019 is presented in the following table.
TDR Rollforward
(Dollar amounts in thousands)
Quarters Ended 
 September 30,		Nine Months Ended 
 September 30,
2020201920202019
Accruing
Beginning balance$1,201 $1,441 $1,233 $1,866 
Additions— — — 12 
Net payments(13)(19)(45)(73)
Net transfers to non-accrual(347)— (347)(383)
Ending balance841 1,422 841 1,422 
Non-accrual
Beginning balance12,093 7,841 20,514 6,612 
Additions11,636 — 11,636 — 
Net payments(5,886)(2,753)(8,205)(1,279)
Charge-offs(2,353)— (8,455)(628)
Net transfers from accruing347 — 347 383 
Ending balance15,837 5,088 15,837 5,088 
Total TDRs$16,678 $6,510 $16,678 $6,510