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Loans and Allowance for Credit Losses for Loans (Tables)

9 Months Ended

Sep. 30, 2023

The detail of the loan portfolio as of September 30, 2023 and December 31, 2022 was as follows:


	September 30, 2023		December 31, 2022
	(in thousands)
Loans:



Commercial and industrial	$	9,274,630	$	8,804,830
Commercial real estate:
Commercial real estate	28,041,050		25,732,033
Construction	3,833,269		3,700,835
Total commercial real estate loans	31,874,319		29,432,868
Residential mortgage	5,562,665		5,364,550
Consumer:
Home equity	548,918		503,884
Automobile	1,585,987		1,746,225
Other consumer	1,251,000		1,064,843
Total consumer loans	3,385,905		3,314,952
Total loans	$	50,097,519	$	46,917,200

Past Due, Non-Accrual and Current Loans by Loan Portfolio Class

The following table presents past due, current and non-accrual loans without an allowance for loan losses by loan portfolio class at September 30, 2023 and December 31, 2022:


	Past Due and Non-Accrual Loans
	30-59 Days Past Due Loans		60-89 Days Past Due Loans		90 Days or More Past Due Loans		Non-Accrual Loans		Total Past Due Loans		Current Loans		Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
	(in thousands)
September 30, 2023
Commercial and industrial	$	10,687	$	5,720	$	6,629	$	87,655	$	110,691	$	9,163,939	$	9,274,630	$	6,463
Commercial real estate:
Commercial real estate	8,053		2,620		—		83,338		94,011		27,947,039		28,041,050		77,491
Construction	—		—		3,990		62,788		66,778		3,766,491		3,833,269		15,222
Total commercial real estate loans	8,053		2,620		3,990		146,126		160,789		31,713,530		31,874,319		92,713
Residential mortgage	13,159		9,710		1,348		21,614		45,831		5,516,834		5,562,665		18,589
Consumer loans:
Home equity	506		200		—		2,646		3,352		545,566		548,918		—
Automobile	6,615		979		296		233		8,123		1,577,864		1,585,987		—
Other consumer	8,388		541		95		666		9,690		1,241,310		1,251,000		589
Total consumer loans	15,509		1,720		391		3,545		21,165		3,364,740		3,385,905		589
Total	$	47,408	$	19,770	$	12,358	$	258,940	$	338,476	$	49,759,043	$	50,097,519	$	118,354


	Past Due and Non-Accrual Loans
	30-59 Days Past Due Loans		60-89 Days Past Due Loans		90 Days or More Past Due Loans		Non-Accrual Loans		Total Past Due Loans		Current Loans		Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
	(in thousands)
December 31, 2022
Commercial and industrial	$	11,664	$	12,705	$	18,392	$	98,881	$	141,642	$	8,663,188	$	8,804,830	$	5,659
Commercial real estate:
Commercial real estate	6,638		3,167		2,292		68,316		80,413		25,651,620		25,732,033		66,066
Construction	—		—		3,990		74,230		78,220		3,622,615		3,700,835		16,120
Total commercial real estate loans	6,638		3,167		6,282		142,546		158,633		29,274,235		29,432,868		82,186
Residential mortgage	16,146		3,315		1,866		25,160		46,487		5,318,063		5,364,550		14,224
Consumer loans:
Home equity	955		254		—		2,810		4,019		499,865		503,884		117
Automobile	5,974		630		1		271		6,876		1,739,349		1,746,225		—
Other consumer	2,158		695		46		93		2,992		1,061,851		1,064,843		—
Total consumer loans	9,087		1,579		47		3,174		13,887		3,301,065		3,314,952		117
Total	$	43,535	$	20,766	$	26,587	$	269,761	$	360,649	$	46,556,551	$	46,917,200	$	102,186

Risk Category of Loans

The following table presents the internal loan classification risk by loan portfolio class by origination year based on the most recent analysis performed at September 30, 2023 and December 31, 2022, as well as the gross loan charge-offs by year of origination for the nine months ended September 30, 2023:


	Term Loans
	Amortized Cost Basis by Origination Year
September 30, 2023	2023		2022		2021		2020		2019		Prior to 2019		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	1,172,255	$	1,108,255	$	907,778	$	472,436	$	233,174	$	523,141	$	4,428,488	$	674	$	8,846,201
Special Mention	27,426		81,421		5,947		2,049		3,746		5,801		164,997		1,459		292,846
Substandard	6,098		1,036		2,515		1,088		2,466		6,777		42,057		—		62,037
Doubtful	2,947		561		2,080		(22)		2,664		62,732		2,579		—		73,541
Loss	—		—		—		—		—		5		—		—		5
Total commercial and industrial	$	1,208,726	$	1,191,273	$	918,320	$	475,551	$	242,050	$	598,456	$	4,638,121	$	2,133	$	9,274,630
Commercial real estate
Risk Rating:
Pass	$	3,661,803	$	6,673,482	$	4,764,617	$	2,904,614	$	2,431,372	$	5,668,988	$	596,861	$	3,211	$	26,704,948
Special Mention	102,870		56,307		203,422		134,938		63,402		272,530		6,822		—		840,291
Substandard	49,652		23,334		37,706		51,880		70,853		255,189		7,197		—		495,811


Total commercial real estate	$	3,814,325	$	6,753,123	$	5,005,745	$	3,091,432	$	2,565,627	$	6,196,707	$	610,880	$	3,211	$	28,041,050
Construction
Risk Rating:
Pass	$	525,933	$	616,804	$	290,092	$	19,544	$	18,695	$	16,755	$	2,288,668	$	—	$	3,776,491

Substandard	8,306		12,969		7,405		—		—		17,668		3,501		—		49,849
Doubtful	—		6,929		—		—		—		—		—		—		6,929
Total construction	$	534,239	$	636,702	$	297,497	$	19,544	$	18,695	$	34,423	$	2,292,169	$	—	$	3,833,269
Gross loan charge-offs	$	—	$	7,464	$	26,038	$	6,559	$	4,475	$	5,000	$	38	$	51	$	49,625


	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	1,600,747	$	1,089,386	$	590,406	$	322,564	$	250,031	$	386,085	$	4,307,163	$	144	$	8,546,526
Special Mention	31,557		3,367		19,492		4,732		4,369		3,558		51,021		7		118,103
Substandard	288		1,734		4,121		1,412		4,256		4,879		31,698		—		48,388
Doubtful	886		20,844		—		2,692		—		64,158		3,233		—		91,813

Total commercial and industrial	$	1,633,478	$	1,115,331	$	614,019	$	331,400	$	258,656	$	458,680	$	4,393,115	$	151	$	8,804,830
Commercial real estate
Risk Rating:
Pass	$	6,815,115	$	5,168,127	$	3,246,885	$	2,672,223	$	1,536,327	$	5,027,128	$	452,461	$	3,504	$	24,921,770
Special Mention	93,286		48,007		60,169		45,447		62,111		125,414		8,188		—		442,622
Substandard	15,088		34,475		32,630		34,622		59,337		183,341		7,986		—		367,479
Doubtful	—		—		—		—		—		162		—		—		162

Total commercial real estate	$	6,923,489	$	5,250,609	$	3,339,684	$	2,752,292	$	1,657,775	$	5,336,045	$	468,635	$	3,504	$	25,732,033
Construction
Risk Rating:
Pass	$	942,380	$	512,046	$	61,131	$	22,845	$	8,676	$	20,599	$	2,040,866	$	—	$	3,608,543
Special Mention	—		—		—		—		—		—		14,268		—		14,268
Substandard	12,969		12,601		—		974		—		17,599		20,138		—		64,281
Doubtful	—		—		—		—		—		13,743		—		—		13,743
Total construction	$	955,349	$	524,647	$	61,131	$	23,819	$	8,676	$	51,941	$	2,075,272	$	—	$	3,700,835

The following table presents the amortized cost in those loan classes based on payment activity, by origination year as of September 30, 2023 and December 31, 2022, as well as the gross loan charge-offs by year of origination for the nine months ended September 30, 2023:


	Term Loans
	Amortized Cost Basis by Origination Year
September 30, 2023	2023		2022		2021		2020		2019		Prior to 2019		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	427,681	$	1,308,323	$	1,522,152	$	547,398	$	441,864	$	1,236,520	$	72,547	$	—	$	5,556,485
90 days or more past due	—		—		968		3		2,011		3,198		—		—		6,180
Total residential mortgage	$	427,681	$	1,308,323	$	1,523,120	$	547,401	$	443,875	$	1,239,718	$	72,547	$	—	$	5,562,665
Consumer loans
Home equity
Performing	$	28,808	$	44,166	$	11,447	$	4,111	$	4,425	$	16,141	$	400,726	$	38,373	$	548,197
90 days or more past due	—		—		—		—		—		41		370		310		721
Total home equity	28,808		44,166		11,447		4,111		4,425		16,182		401,096		38,683		548,918
Automobile
Performing	306,205		584,045		396,302		141,124		104,149		53,739		—				1,585,564
90 days or more past due	25		89		92		25		150		42		—		—		423
Total automobile	306,230		584,134		396,394		141,149		104,299		53,781		—		—		1,585,987
Other consumer
Performing	30,659		21,337		4,152		8,333		8,693		23,085		1,154,094		—		1,250,353
90 days or more past due	—		13		—		—		—		38		596		—		647
Total other consumer	30,659		21,350		4,152		8,333		8,693		23,123		1,154,690		—		1,251,000
Total consumer	$	365,697	$	649,650	$	411,993	$	153,593	$	117,417	$	93,086	$	1,555,786	$	38,683	$	3,385,905
Gross loan charge-offs	$	97	$	557	$	314	$	143	$	610	$	1,348	$	124	$	—	$	3,193


	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	1,302,279	$	1,502,622	$	571,390	$	500,197	$	338,062	$	1,073,995	$	66,706	$	—	$	5,355,251
90 days or more past due	—		197		217		1,835		2,876		4,174		—		—		9,299
Total residential mortgage	$	1,302,279	$	1,502,819	$	571,607	$	502,032	$	340,938	$	1,078,169	$	66,706	$	—	$	5,364,550
Consumer loans
Home equity
Performing	$	47,084	$	12,432	$	4,592	$	5,024	$	5,581	$	13,007	$	376,608	$	38,570	$	502,898
90 days or more past due	—		—		—		—		—		—		276		710		986
Total home equity	47,084		12,432		4,592		5,024		5,581		13,007		376,884		39,280		503,884
Automobile
Performing	724,557		525,017		204,578		166,103		80,012		45,415		—		—		1,745,682
90 days or more past due	38		116		36		180		101		72		—		—		543
Total automobile	724,595		525,133		204,614		166,283		80,113		45,487		—		—		1,746,225
Other consumer
Performing	24,140		10,144		8,206		7,435		7,406		15,736		991,737		—		1,064,804
90 days or more past due	—		—		—		—		—		38		1		—		39
Total other consumer	24,140		10,144		8,206		7,435		7,406		15,774		991,738		—		1,064,843
Total consumer	$	795,819	$	547,709	$	217,412	$	178,742	$	93,100	$	74,268	$	1,368,622	$	39,280	$	3,314,952

Financing Receivable, Troubled Debt Restructuring

The following table shows the amortized cost basis of loans to borrowers experiencing financial difficulty at September 30, 2023 that were modified during the three and nine months ended September 30, 2023, disaggregated by class of financing receivable and type of modification. Each of the types of modifications was less than one percent of their respective loan categories.


	Three Months Ended September 30, 2023
	Interest rate reduction		Term extension		Term extension and interest rate reduction		Total
	($ in thousands)
Commercial and industrial	$	920	$	17,670	$	56	$	18,646
Commercial real estate	—		38,345		—		38,345

Home equity	—		31		—		31

Total	$	920	$	56,046	$	56	$	57,022

	Nine Months Ended September 30, 2023
	Interest rate reduction		Term extension		Term extension and interest rate reduction		Total
	($ in thousands)
Commercial and industrial	$	920	$	56,322	$	2,281	$	59,523
Commercial real estate	—		76,394		3,739		80,133
Residential mortgage	—		768		—		768
Home equity	—		31		—		31
Consumer	—		48		—		48
Total	$	920	$	133,563	$	6,020	$	140,503

The following table describes the types of modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023:

Types of Modifications

Commercial and industrial

12 month term extensions; two reductions in interest rate from 1.84 percent and 1.83 percent to 1.00 percent, respectively, and two 12 month term extensions combined with a reduction in interest rate from 9.50 percent to 6.50 percent

Commercial real estate

6 to 36 month term extensions and one term extension combined with a reduction in interest rate from 8.75 percent to 6.00 percent

Residential mortgage

12 month term extensions

Home equity

120 month term extension

Consumer

60 month term extensions

The following tables present the pre- and post-modification amortized cost of TDR loans by loan class during the three and nine months ended September 30, 2022. Post-modification amounts are presented as of September 30, 2022 using the allowance methodology for TDRs prior to the adoption of ASU 2022-02.


	Three Months Ended September 30, 2022
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial	65	$	54,586	$	54,747
Commercial real estate:
Commercial real estate	1	2,187		2,187
Construction	2	11,025		7,811
Total commercial real estate	3	13,212		9,998
Residential mortgage	1	44		44

Total	69	$	67,842	$	64,789


	Nine Months Ended September 30, 2022
Troubled Debt Restructurings			Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
		($ in thousands)
Commercial and industrial			79	$	109,779	$	105,495
Commercial real estate:
Commercial real estate			4	16,259		15,660
Construction			2	11,025		7,811
Total commercial real estate			6	27,284		23,471
Residential mortgage			9	5,135		5,116
Consumer			1	125		123
Total			95	$	142,323	$	134,205

Loans modified as TDRs within the previous 12 months and for which there was a payment default (90 or more days past due) for the three and nine months ended September 30, 2022 were as follows:


	Three Months Ended September 30, 2022			Nine Months Ended September 30, 2022
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	1	$	42,771	1	$	42,771

Commercial real estate	2	5,207		2	5,207


Residential mortgage	1	1,071		1	1,071

Total	4	$	49,049	4	$	49,049

Summary of Collateral Dependent Loans

The following table presents collateral dependent loans by class as of September 30, 2023 and December 31, 2022:


	September 30, 2023		December 31, 2022
	(in thousands)
Collateral dependent loans:
Commercial and industrial *	$	89,898	$	94,433

Commercial real estate	132,508		130,199

Total commercial real estate loans	132,508		130,199
Residential mortgage	20,598		33,865
Home equity	—		195
Consumer	589		—
Total	$	243,593	$	258,692

* Commercial and industrial loans presented in the table above are primarily collateralized by taxi medallions.

Summary of Allowance for Credit Losses

The following table summarizes the ACL for loans at September 30, 2023 and December 31, 2022:


	September 30, 2023		December 31, 2022
	(in thousands)
Components of allowance for credit losses for loans:
Allowance for loan losses	$	442,175	$	458,655
Allowance for unfunded credit commitments	20,170		24,600
Total allowance for credit losses for loans	$	462,345	$	483,255

Summary of Provision for Credit Losses

The following table summarizes the provision for credit losses for loans for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
	(in thousands)
Components of provision for credit losses for loans:
Provision for loan losses	$	11,221	$	1,315	$	29,359	$	42,883
(Credit) provision for unfunded credit commitments	(2,074)		520		(4,430)		6,164
Total provision for credit losses for loans	$	9,147	$	1,835	$	24,929	$	49,047

Summary of Activity in Allowance for Loan Losses

The following table details the activity in the allowance for loan losses by loan portfolio segment for the three and nine months ended September 30, 2023 and 2022:


	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Three Months Ended September 30, 2023
Allowance for loan losses:
Beginning balance	$	128,245	$	239,695	$	44,153	$	24,339	$	436,432


Loans charged-off	(7,487)		(255)		(20)		(1,156)		(8,918)
Charged-off loans recovered	3,043		5		30		362		3,440
Net (charge-offs) recoveries	(4,444)		(250)		10		(794)		(5,478)
Provision (credit) for loan losses	10,187		5,602		458		(5,026)		11,221
Ending balance	$	133,988	$	245,047	$	44,621	$	18,519	$	442,175
Three Months Ended September 30, 2022
Allowance for loan losses:
Beginning balance	$	144,539	$	277,227	$	29,889	$	17,164	$	468,819


Loans charged-off	(5,033)		(4,000)		—		(962)		(9,995)
Charged-off loans recovered	13,236		1,729		163		477		15,605
Net (charge-offs) recoveries	8,203		(2,271)		163		(485)		5,610
Provision (credit) for loan losses	1,309		(7,176)		6,105		1,077		1,315
Ending balance	$	154,051	$	267,780	$	36,157	$	17,756	$	475,744



Nine Months Ended September 30, 2023
Allowance for loan losses:
Beginning balance	$	139,941	$	259,408	$	39,020	$	20,286	$	458,655
Impact of the adoption of ASU No. 2022-02	(739)		(589)		(12)		(28)		(1,368)
Beginning balance, adjusted	$	139,202	$	258,819	$	39,008	$	20,258	$	457,287
Loans charged-off	(37,399)		(12,226)		(169)		(3,024)		(52,818)
Charged-off loans recovered	6,615		33		186		1,513		8,347
Net (charge-offs) recoveries	(30,784)		(12,193)		17		(1,511)		(44,471)
Provision (credit) for loan losses	25,570		(1,579)		5,596		(228)		29,359
Ending balance	$	133,988	$	245,047	$	44,621	$	18,519	$	442,175
Nine Months Ended September 30, 2022
Allowance for loan losses:
Beginning balance	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Allowance for PCD loans *	33,452		36,618		206		43		70,319

Loans charged-off	(11,144)		(4,173)		(27)		(2,513)		(17,857)
Charged-off loans recovered	16,012		2,060		694		2,431		21,197
Net (charge-offs) recoveries	4,868		(2,113)		667		(82)		3,340
Provision for loan losses	12,641		15,785		10,164		4,293		42,883
Ending balance	$	154,051	$	267,780	$	36,157	$	17,756	$	475,744

* Represents the allowance for acquired PCD loans, net of PCD loan charge-offs totaling $62.4 million in the second quarter 2022.

Allocation Of Allowance For Loan Losses Disaggregated Based On Impairment Methodology

The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the allowance measurement methodology at September 30, 2023 and December 31, 2022.


	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
September 30, 2023
Allowance for loan losses:
Individually evaluated for credit losses	$	54,363	$	9,099	$	32	$	—	$	63,494
Collectively evaluated for credit losses	79,625		235,948		44,589		18,519		378,681
Total	$	133,988	$	245,047	$	44,621	$	18,519	$	442,175
Loans:
Individually evaluated for credit losses	$	89,898	$	132,508	$	20,598	$	589	$	243,593
Collectively evaluated for credit losses	9,184,732		31,741,811		5,542,067		3,385,316		49,853,926
Total	$	9,274,630	$	31,874,319	$	5,562,665	$	3,385,905	$	50,097,519
December 31, 2022
Allowance for loan losses:
Individually evaluated for credit losses	$	68,745	$	13,174	$	337	$	4,338	$	86,594
Collectively evaluated for credit losses	71,196		246,234		38,683		15,948		372,061
Total	$	139,941	$	259,408	$	39,020	$	20,286	$	458,655
Loans:
Individually evaluated for credit losses	$	117,644	$	213,522	$	28,869	$	14,058	$	374,093
Collectively evaluated for credit losses	8,687,186		29,219,346		5,335,681		3,300,894		46,543,107
Total	$	8,804,830	$	29,432,868	$	5,364,550	$	3,314,952	$	46,917,200