Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

Recorded Investment in Commercial Loan Classes by Internally Assigned Risk Ratings

The following table presents loan balances by year of origination and internally assigned risk rating for our portfolio segments as of December 31, 2020:


	Risk Rating
(dollars in thousands)	2020		2019		2018		2017		2016		2015 and Prior		Revolving		Revolving-Term		Total

Commercial Real Estate
Pass	$	334,086	$	422,800	$	394,963	$	277,724	$	307,321	$	615,217	$	46,330	—		$	2,398,441
Special Mention	—		35,499		10,200		22,502		55,174		75,022		—		—		198,397
Substandard	—		17,259		12,781		19,914		50,700		83,792		1,500		—		185,946
Doubtful	—		645		—		—		1,989		6,529		—		—		9,163
Total Commercial Real Estate	334,086		476,203		417,944		320,140		415,184		780,560		47,830		—		2,791,947

Commercial and Industrial
Pass	454,131		199,453		140,049		68,607		27,645		206,782		383,082		—		1,479,749
Special Mention	3,697		8,211		2,628		697		768		1,046		23,527		—		40,574
Substandard	—		7,793		2,613		8,544		75		13,781		2,022		—		34,828
Doubtful	—		—		—		4,401		—		—		—		—		4,401
Total Commercial and Industrial	457,828		215,457		145,290		82,249		28,488		221,609		408,631		—		1,559,552

Commercial Construction
Pass	131,235		224,794		59,649		2,420		6,346		4,555		12,778		—		441,777
Special Mention	1,578		2,533		3,886		—		—		8,593		—		—		16,590
Substandard	—		3,580		—		501		—		3,629		—		—		7,710
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	132,813		230,907		63,535		2,921		6,346		16,777		12,778		—		466,077

Business Banking
Pass	296,254		154,335		123,207		86,552		77,238		266,042		103,571		291		1,107,490
Special Mention	—		1,060		1,147		1,602		1,084		6,866		637		123		12,519
Substandard	103		1,078		3,896		3,209		3,880		25,871		1,341		680		40,058
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	296,357		156,473		128,250		91,363		82,202		298,779		105,549		1,094		1,160,067

Consumer Real Estate
Pass	120,736		122,171		67,700		63,653		73,805		243,939		438,888		22,667		1,153,559
Special Mention	—		—		1,489		—		—		150		132		—		1,771
Substandard	—		373		742		1,480		2,449		6,958		—		—		12,002
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	120,736		122,544		69,931		65,133		76,254		251,047		439,020		22,667		1,167,332

Other consumer
Pass	18,849		13,162		6,784		3,395		2,082		687		26,647		2,767		74,373
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	15		—		—		—		—		3,367		744		2,386		6,512
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	18,864		13,162		6,784		3,395		2,082		4,054		27,391		5,153		80,885







Total Loan Balance	$	1,360,684	$	1,214,746	$	831,734	$	565,201	$	610,556	$	1,572,826	$	1,041,199	$	28,914	$	7,225,860

The following table presents loan balances by year of origination and performing and nonperforming status for our portfolio segments as of December 31, 2020:


(dollars in thousands)	2020		2019		2018		2017		2016		2015 and Prior		Revolving		Revolving-Term		Total

Commercial Real Estate
Performing	$	334,086	$	459,799	$	417,944	$	313,465	$	394,972	$	722,782	$	47,830	$	—	$	2,690,879
Nonperforming	—		16,404		—		6,675		20,212		57,778		—		—		101,070
Total Commercial Real Estate	334,086		476,203		417,944		320,140		415,184		780,560		47,830		—		2,791,947

Commercial and Industrial
Performing	457,828		214,144		143,706		69,411		28,426		220,701		408,350		—		1,542,566
Nonperforming	—		1,313		1,584		12,838		62		908		281		—		16,985
Total Commercial and Industrial	457,828		215,457		145,290		82,249		28,488		221,609		408,631		—		1,559,552

Commercial Construction
Performing	132,813		230,907		63,535		2,921		6,346		16,393		12,778		—		465,692
Nonperforming	—		—		—		—		—		384		—		—		384
Total Commercial Construction	132,813		230,907		63,535		2,921		6,346		16,777		12,778		—		466,077

Business Banking
Performing	296,327		156,164		126,432		90,414		80,106		286,970		105,494		1,037		1,142,944
Nonperforming	30		309		1,818		949		2,096		11,809		55		57		17,123
Total Business Banking	296,357		156,473		128,250		91,363		82,202		298,779		105,549		1,094		1,160,067

Consumer Real Estate
Performing	120,736		122,315		69,225		63,647		74,690		245,331		438,702		21,572		1,156,216
Nonperforming	—		229		706		1,486		1,564		5,716		318		1,096		11,116
Total Consumer Real Estate	120,736		122,544		69,931		65,133		76,254		251,047		439,020		22,667		1,167,332

Other Consumer
Performing	18,864		13,162		6,784		3,395		2,082		3,958		27,391		5,153		80,789
Nonperforming	—		—		—		—		—		96		—		—		96
Total Other Consumer	18,864		13,162		6,784		3,395		2,082		4,054		27,391		5,153		80,885

Performing	1,360,654		1,196,491		827,625		543,253		586,622		1,496,135		1,040,544		27,762		7,079,086
Nonperforming	30		18,254		4,108		21,948		23,934		76,691		654		1,153		146,774
Total Loan Balance	$	1,360,684	$	1,214,746	$	831,734	$	565,201	$	610,556	$	1,572,826	$	1,041,199	$	28,914	$	7,225,860

The following table presents collateral-dependent loans by class of loan:


	December 31, 2020
	Type of Collateral
(dollars in thousands)	Real Estate	Blanket Lien	Investment/Cash	Other
Commercial real estate	$100,450	$—	$—	$—
Commercial and industrial	1,040	15,080	—	—
Commercial construction	3,552	—	—	—
Business banking	3,085	1,619	—	689
Consumer real estate	398	—	—	—

Total	$108,525	$16,699	$—	$689

The following table presents the recorded investment in commercial loan classes by internally assigned risk ratings as of the date presented:


	December 31, 2019
(dollars in thousands)	Commercial Real Estate		% of Total		Commercial and Industrial		% of Total		Commercial Construction		% of Total		Total		% of Total
Pass	$	3,270,437	95.7	%	$	1,636,314	95.1	%	$	347,324	92.5	%	$	5,254,056	95.3	%
Special mention	57,285		1.7	%	36,484		2.1	%	10,109		2.7	%	103,878		1.9	%
Substandard	86,772		2.5	%	47,980		2.8	%	17,899		4.8	%	152,651		2.8	%
Doubtful	2,023		0.1	%	55		—	%	133		—	%	2,211		—	%
Total	$	3,416,518	100.0	%	$	1,720,833	100.0	%	$	375,445	100.0	%	$	5,512,796	100.0	%

Age Analysis of Past Due Loans Segregated by Class of Loans

The following tables present the age analysis of past due loans segregated by class of loans as of the dates presented:


	December 31, 2020(2)
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due(1)		Non- performing		Total Past Due Loans		Total Loans
Commercial real estate	$	2,690,877	$	—	$	—	$	—	$	101,070	$	101,070	$	2,791,947
Commercial and industrial	1,542,567		—		—		—		16,985		16,985		1,559,552
Commercial construction	462,094		19		3,580		—		384		3,983		466,077
Business banking	1,140,581		1,614		379		371		17,122		19,486		1,160,067
Consumer real estate	1,153,028		1,087		1,968		132		11,117		14,304		1,167,332
Other consumer	80,583		168		37		—		96		302		80,885
Total	$	7,069,730	$	2,888	$	5,965	$	503	$	146,774	$	156,130	$	7,225,860

(1) Represents acquired loans that were recorded at fair value at the acquisition date and remain performing at December 31, 2020.

(2) We had 52 loans that were modified totaling $195.6 million under the CARES Act at December 31, 2020. These customers were not considered past due as a result of their delayed payments. Upon exiting the loan modification deferral program, the measurement of loan delinquency will resume where it left off upon entry into the program. Due to the modification program, this delinquency table may not accurately reflect the credit risk associated with these loans.


	December 31, 2019
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days + Past Due		Non- performing		Total Past Due Loans		Total Loans
Commercial real estate	$	3,025,505	$	7,749	$	71	$	911	$	25,356	$	34,087	$	3,059,592
Commercial and industrial	1,466,460		126		1,589		1,443		10,911		14,069		1,480,529
Commercial construction	367,204		956		1,163		—		737		2,856		370,060
Business banking	830,735		5,093		1,099		—		9,863		16,055		846,790
Consumer real estate	1,283,591		2,620		1,758		1,175		6,063		11,616		1,295,207
Other consumer	81,866		1,448		305		228		1,127		3,108		84,974
Total	$	7,055,361	$	17,992	$	5,985	$	3,757	$	54,057	$	81,791	$	7,137,152

Schedule of Nonperforming Assets

The following table is a summary of nonperforming assets as of the dates presented:


	December 31,
(dollars in thousands)	2020		2019
Nonperforming Assets
Nonaccrual loans	$	117,485	$	45,145
Nonaccrual TDRs	29,289		8,912
Total nonaccrual loans	146,774		54,057
OREO	2,155		3,525
Total Nonperforming Assets	$	148,929	$	57,582

The following table presents loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan:


								December 31, 2020
	December 31, 2020							For the twelve months ended
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance	Past Due 90+ Days Still Accruing		Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	25,356	$	101,070	$60,401	$	—	$22
Commercial and industrial	10,911		16,985		6,436	—		101
Commercial construction	737		384		285	—		—
Business banking	9,863		17,122		3,890	371		275
Consumer real estate	6,063		11,117		398	132		423
Other consumer	1,127		96		—	—		4
Total	$	54,057	$	146,774	$71,410	$	503	$826

(1) Represents only cash payments received and applied to interest on nonaccrual loans.

Schedule of Allowance for Credit Loss

The following table presents activity in the ACL for year ended December 31, 2020:


	Twelve Months Ended December 31, 2020
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial (2)		Commercial Construction		Business Banking(1)		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	30,577	$	15,681	$	7,900	$	—	$	6,337	$	1,729	$	62,224
Impact of CECL adoption	4,810		7,853		(3,376)		12,898		4,525		636		27,346
Provision for credit losses on loans	56,489		65,288		2,986		5,303		(368)		1,723		131,421
Charge-offs	(26,460)		(74,282)		(454)		(2,612)		(667)		(1,890)		(106,365)
Recoveries	240		1,560		183		328		187		488		2,986
Net (Charge-offs)/Recoveries	(26,220)		(72,722)		(271)		(2,284)		(480)		(1,402)		(103,379)
Balance at End of Period	$	65,656	$	16,100	$	7,239	$	15,917	$	10,014	$	2,686	$	117,612

(1) In connection with our adoption of ASU 2016-13, we made changes to our loan portfolio segments to align with the methodology applied in determining the

allowance under CECL. Our new segmentation breaks out business banking loans from our other loan segments: CRE, C&I, commercial construction, consumer real estate and other consumer. The business banking allowance balance at the beginning of period is included in the other segments and reclassified to business banking through the impact of CECL adoption line.

(2) During the three months ended June 30, 2020, we experienced a pre-tax loss of $58.7 million related to a customer fraud resulting from a check kiting scheme.

Recorded Investment in Consumer Loan Classes by Performing and Nonperforming Status

The following table presents the recorded investment in consumer loan classes by performing and nonperforming status as of the date presented:


	December 31, 2019
(dollars in thousands)	Residential Mortgage		% of Total		Home Equity		% of Total		Installment and other consumer		% of Total		Consumer Construction		% of Total		Total		% of Total
Performing	$	991,066	99.2	%	$	535,709	99.5	%	$	78,993	99.9	%	$	8,390	100.0	%	$	1,614,158	99.4	%
Nonperforming	7,519		0.8	%	2,639		0.5	%	40		0.1	%	—		—	%	10,198		0.6	%
Total	$	998,585	100.0	%	$	538,348	100.0	%	$	79,033	100.0	%	$	8,390	100.0	%	$	1,624,356	100.0	%

Investments in Loans Considered to be Impaired and Related Information on Impaired Loans

The following table presents investments in loans considered to be impaired and related information on those impaired loans as of December 31, 2019:


	December 31, 2019
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With a related allowance recorded:
Commercial real estate	$	13,011	$	14,322	$	2,023
Commercial and industrial	10,001		10,001		55
Commercial construction	489		489		113
Consumer real estate	—		—		—
Other consumer	9		9		9
Total with a Related Allowance Recorded	23,510		24,821		2,200
Without a related allowance recorded:
Commercial real estate	34,909		40,201		—
Commercial and industrial	7,605		10,358		—
Commercial construction	1,425		2,935		—
Consumer real estate	7,884		8,445		—
Other consumer	4		11		—
Total without a Related Allowance Recorded	51,827		61,950		—
Total:
Commercial real estate	47,920		54,523		2,023
Commercial and industrial	17,606		20,359		55
Commercial construction	1,914		3,424		113
Consumer real estate	7,884		8,445		—
Other consumer	13		20		9
Total	$	75,337	$	86,771	$	2,200

The following table summarizes average recorded investment and interest income recognized on loans considered to be impaired for the year presented:


	For the Year Ended
	December 31, 2019
(dollars in thousands)	Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Commercial real estate	$	14,018	$	—
Commercial and industrial	10,135		576
Commercial construction	489		—
Consumer real estate	—		—
Other consumer	13		1
Total with a Related Allowance Recorded	24,655		577
Without a related allowance recorded:
Commercial real estate	35,739		943
Commercial and industrial	5,565		368
Commercial construction	1,831		131
Consumer real estate	8,190		397
Other consumer	7		—
Total without a Related Allowance Recorded	51,332		1,839
Total:
Commercial real estate	49,757		943
Commercial and industrial	15,700		944
Commercial construction	2,320		131
Consumer real estate	8,190		397
Other consumer	20		1
Total	$	75,987	$	2,416

Summary of Allowance for Loan Losses

The following table details activity in the ALL for the period presented:


	2019
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Consumer Real Estate		Other Consumer		Total
Balance at beginning of year	$	33,707	$	11,596	$	7,983	$	6,187	$	1,523	$	60,996
Charge-offs	(3,664)		(8,928)		(406)		(1,353)		(1,838)		(16,189)
Recoveries	137		1,388		5		637		377		2,544
Net (Charge-offs)	(3,527)		(7,540)		(401)		(716)		(1,461)		(13,645)
Provision for loan losses	397		11,625		318		866		1,667		14,873
Balance at End of Year	$	30,577	$	15,681	$	7,900	$	6,337	$	1,729	$	62,224

Summary of Allowance for Loan Losses and Recorded Investments

The following table presents the ALL and recorded investments in loans by category as of December 31:


	2019
	Allowance for Loan Losses						Portfolio Loans
(dollars in thousands)	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Commercial real estate	$	2,023	$	28,554	$	30,577	$	47,920	$	3,368,598	$	3,416,518
Commercial and industrial	55		15,626		15,681		17,606		1,703,227		1,720,833
Commercial construction	113		7,787		7,900		1,914		373,531		375,445
Consumer real estate	—		6,337		6,337		7,884		1,537,439		1,545,323
Other consumer	9		1,720		1,729		13		79,020		79,033
Total	$	2,200	$	60,024	$	62,224	$	75,337	$	7,061,815	$	7,137,152