Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Accounts Notes And Loans Receivable [Line Items]

Loans, net of unearned income, by portfolio are presented at amortized cost basis in the table below. Amortized cost does not include accrued interest, which is reflected in the accrued interest line item in the Consolidated Balance Sheets, totaling $94.6 million and $67.7 million at June 30, 2020 and December 31, 2019, respectively.

	June 30,		December 31,
(in thousands)	2020		2019
Commercial non-real estate	$	10,465,280	$	9,166,947
Commercial real estate - owner occupied		2,762,259		2,738,460
Total commercial and industrial		13,227,539		11,905,407
Commercial real estate - income producing		3,350,299		2,994,448
Construction and land development		1,128,959		1,157,451
Residential mortgages		2,877,316		2,990,631
Consumer		2,044,264		2,164,818
Total loans	$	22,628,377	$	21,212,755

Allowance for Credit Losses by Portfolio Class

The following tables show activity in the allowance for credit losses by portfolio class for the six months ended June 30, 2020 and 2019, as well as the corresponding recorded investment in loans at the end of each period. Effective January 1, 2020, the Company adopted the provisions of ASC 326 (CECL) using a modified retrospective basis. The difference between the December 31, 2019 incurred allowance and the CECL allowance is reflected as a cumulative effect of change in accounting principle in the table below. For further discussion of the day one impact of the CECL adoption, refer to Note 16 – Recent Accounting Pronouncements

				Commercial			Total			Commercial
	Commercial			real estate-			commercial			real estate-			Construction
	non-real			owner			and			income			and land			Residential
(in thousands)	estate			occupied			industrial			producing			development			mortgages			Consumer			Total
	Six Months Ended June 30, 2020
Allowance for credit losses
Allowance for loan losses:
Beginning balance	$	106,432		$	10,977		$	117,409		$	20,869		$	9,350		$	20,331		$	23,292		$	191,251
Cumulative effect of change in accounting principle		(244	)		14,877			14,633			7,287			7,478			12,921			7,092			49,411
Charge-offs		(339,566	)		(1,706	)	$	(341,272	)		(1,501	)		(5	)		(141	)		(10,736	)		(353,655	)
Recoveries		3,299			107		$	3,406			46			451			761			2,543			7,207
Net provision for loan losses		375,050			37,211		$	412,261			71,210			13,965			23,479			27,509			548,424
Ending balance - allowance for loan losses	$	144,971		$	61,466		$	206,437		$	97,911		$	31,239		$	57,351		$	49,700		$	442,638
Reserve for unfunded lending commitments:
Beginning balance	$	3,974		$	—		$	3,974		$	—		$	—		$	—		$	—		$	3,974
Cumulative effect of change in accounting principle		5,772			288			6,060			449			15,658			17			5,146			27,330
Provision for losses on unfunded commitments		(2,900	)		427			(2,473	)		649			10,455			5			(3,369	)		5,267
Ending balance - reserve for unfunded lending commitments		6,846			715			7,561			1,098			26,113			22			1,777			36,571
Total allowance for credit losses	$	151,817		$	62,181		$	213,998		$	99,009		$	57,352		$	57,373		$	51,477		$	479,209

Allowance for loan losses:
Individually evaluated	$	12,619		$	1,237		$	13,856		$	457		$	55		$	477		$	377		$	15,222
Collectively evaluated		132,352			60,229			192,581			97,454			31,184			56,874			49,323			427,416
Allowance for loan losses	$	144,971		$	61,466		$	206,437		$	97,911		$	31,239		$	57,351		$	49,700		$	442,638
Reserve for unfunded lending commitments:
Individually evaluated	$	751		$	—		$	751		$	—		$	—		$	—		$	—		$	751
Collectively evaluated		6,095			715			6,810			1,098			26,113			22			1,777			35,820
Reserve for unfunded lending commitments:	$	6,846		$	715		$	7,561		$	1,098		$	26,113		$	22		$	1,777		$	36,571
Total allowance for credit losses	$	151,817		$	62,181		$	213,998		$	99,009		$	57,352		$	57,373		$	51,477		$	479,209
Loans:
Individually evaluated	$	89,314		$	9,982		$	99,296		$	6,222		$	1,007		$	5,710		$	3,970		$	116,205
Collectively evaluated		10,375,966			2,752,277			13,128,243			3,344,077			1,127,952			2,871,606			2,040,294			22,512,172
Total loans	$	10,465,280		$	2,762,259		$	13,227,539		$	3,350,299		$	1,128,959		$	2,877,316		$	2,044,264		$	22,628,377

				Commercial			Total			Commercial
	Commercial			real estate-			commercial			real estate-			Construction
	non-real			owner			and			income			and land			Residential
(in thousands)	estate			occupied			industrial			producing			development			mortgages			Consumer			Total
	Six Months Ended June 30, 2019
Allowance for loan losses:
Beginning balance	$	97,752		$	13,757		$	111,509		$	17,638		$	15,647		$	23,782		$	25,938		$	194,514
Charge-offs		(21,653	)		(71	)		(21,724	)		(10	)		-			(439	)		(8,167	)		(30,340	)
Recoveries		2,730			221			2,951			2			97			266			2,004			5,320
Net provision for loan losses		17,698			328			18,026			7,781			(4,079	)		(551	)		4,954			26,131
Ending balance	$	96,527		$	14,235		$	110,762		$	25,411		$	11,665		$	23,058		$	24,729		$	195,625
Ending balance:
Allowance:
Individually evaluated for impairment	$	8,486		$	142		$	8,628		$	93		$	1		$	146		$	253		$	9,121
Amounts related to purchased credit impaired loans		138			172			310			105			151			8,695			313			9,574
Collectively evaluated for impairment		87,903			13,921			101,824			25,213			11,513			14,217			24,163			176,930
Total allowance	$	96,527		$	14,235		$	110,762		$	25,411		$	11,665		$	23,058		$	24,729		$	195,625
Loans:
Individually evaluated for impairment	$	224,603		$	17,769		$	242,372		$	1,880		$	19		$	4,089		$	1,521		$	249,881
Purchased credit impaired loans		6,313			5,581			11,894			4,702			1,482			98,472			3,444			119,994
Collectively evaluated for impairment		8,328,202			2,496,620			10,824,822			2,888,886			1,142,561			2,865,710			2,083,958			19,805,937
Total loans	$	8,559,118		$	2,519,970		$	11,079,088		$	2,895,468		$	1,144,062		$	2,968,271		$	2,088,923		$	20,175,812

Composition of Nonaccrual Loans by Portfolio Class

The following table shows the composition of nonaccrual loans by portfolio class. Prior to the adoption of CECL, purchased credit impaired loans accounted for in pools with an accretable yield were considered to be performing. Such loans totaled $17.5 million at December 31, 2019.

	June 30,		December 31,
(in thousands)	2020		2019
Commercial non-real estate	$	93,471	$	178,678
Commercial real estate - owner occupied		14,120		7,708
Total commercial and industrial		107,591		186,386
Commercial real estate - income producing		7,180		2,594
Construction and land development		2,498		1,217
Residential mortgages		42,237		39,262
Consumer		24,473		16,374
Total loans	$	183,979	$	245,833

Troubled Debt Restructurings Modified by Portfolio Class

The tables below detail by portfolio class TDRs that were modified during the six months ended June 30, 2020 and 2019:

	Three Months Ended
($ in thousands)	June 30, 2020						June 30, 2019
			Pre- Modification		Post- Modification				Pre- Modification		Post- Modification
	Number		Outstanding		Outstanding		Number		Outstanding		Outstanding
	of		Recorded		Recorded		of		Recorded		Recorded
Troubled Debt Restructurings:	Contracts		Investment		Investment		Contracts		Investment		Investment
Commercial non-real estate		2	$	350	$	350		1	$	334	$	334
Commercial real estate - owner occupied		—		—		—		—		—		—
Total commercial and industrial		2		350		350		1		334		334
Commercial real estate - income producing		—		—		—		—		—		—
Construction and land development		1		15		15		—		—		—
Residential mortgages		8		1,810		1,810		2		638		638
Consumer		2		30		30		—		—		—
Total loans		13	$	2,205	$	2,205		3	$	972	$	972

	Six Months Ended
($ in thousands)	June 30, 2020						June 30, 2019
Troubled Debt Restructurings:	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial non-real estate		3	$	745	$	745		8	$	14,137	$	14,137
Commercial real estate - owner occupied		—		—		—		1		167		167
Total commercial and industrial		3		745		745		9		14,304		14,304
Commercial real estate - income producing		—		—		—		—		—		—
Construction and land development		1		15		15		—		—		—
Residential mortgages		9		2,066		2,066		7		1,902		1,902
Consumer		5		64		64		2		46		46
Total loans		18		2,890		2,890		18	$	16,252	$	16,252

Loans Individually Evaluated Disaggregated by Portfolio Class

The tables below present loans that are individually evaluated by portfolio class at June 30, 2020 and December 31, 2019. Loans individually evaluated include nonaccrual loans, TDRs and other loans that do not share common characteristics with loans evaluated on a collective basis that have aggregate relationship balances of $1 million or more.

	June 30, 2020
(in thousands)	Recorded investment without an allowance		Recorded investment with an allowance		Unpaid principal balance		Related allowance for loan loss
Commercial non-real estate	$	42,426	$	46,888	$	150,630	$	12,619
Commercial real estate - owner occupied		3,177		6,805		12,764		1,237
Total commercial and industrial		45,603		53,693		163,394		13,856
Commercial real estate - income producing		1,332		4,890		7,018		457
Construction and land development		667		340		1,007		55
Residential mortgages		1,921		3,789		6,251		477
Consumer		1,567		2,403		3,970		377
Total loans	$	51,090	$	65,115	$	181,640	$	15,222

	December 31, 2019
(in thousands)	Recorded investment without an allowance		Recorded investment with an allowance		Unpaid principal balance		Related allowance for loan loss
Commercial non-real estate	$	134,191	$	98,247	$	270,078	$	21,733
Commercial real estate - owner occupied		2,665		1,716		7,793		104
Total commercial and industrial		136,856		99,963		277,871		21,837
Commercial real estate - income producing		373		1,525		1,959		18
Construction and land development		—		277		322		21
Residential mortgages		3,383		1,791		5,709		217
Consumer		479		1,004		1,906		292
Total loans	$	141,091	$	104,560	$	287,767	$	22,385

The tables below present the average balances and interest income for individually evaluated loans for the six months ended June 30, 2020 and 2019. Interest income recognized represents interest on accruing loans modified in a TDR.

	Three Months Ended
	June 30, 2020				June 30, 2019
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial non-real estate	$	247,526	$	217	$	228,055	$	1,444
Commercial real estate - owner occupied		7,083		—		17,371		71
Total commercial and industrial		254,609		217		245,426		1,515
Commercial real estate - income producing		6,761		6		2,274		7
Construction and land development		2,179		2		19		—
Residential mortgages		5,168		17		4,743		2
Consumer		2,625		23		1,515		18
Total loans	$	271,342	$	265	$	253,977	$	1,542

	Six Months Ended
	June 30, 2020				June 30, 2019
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial non-real estate	$	245,320	$	739	$	231,750	$	3,140
Commercial real estate - owner occupied		5,683		-		18,346		151
Total commercial and industrial		251,003		739		250,096		3,291
Commercial real estate - income producing		5,680		12		2,480		14
Construction and land development		1,996		4		45		—
Residential mortgages		5,034		21		4,690		7
Consumer		2,004		46		1,386		34
Total loans	$	265,717	$	822	$	258,697	$	3,346

Aging Analysis of Past Due Loans by Portfolio Class

The tables below present the aging analysis of past due loans by portfolio class at June 30, 2020 and December 31, 2019. Prior to the adoption of CECL, purchased credit impaired loans accounted for in pools under ASC 310-30 with an accretable yield were considered to be current in the table below as of December 31, 2019. These loans totaled $6.1 million for 30-59 days past due, $2.0 million for 60-89 days past due and $8.3 million for both greater than 90 days past due and greater than 90 days past due and still accruing at December 31, 2019.

June 30, 2020	30-59 days past due		60-89 days past due		Greater than 90 days past due		Total past due		Current		Total Loans		Recorded investment > 90 days and still accruing
(in thousands)
Commercial non-real estate	$	3,940	$	3,079	$	80,668	$	87,687	$	10,377,593	$	10,465,280	$	2,497
Commercial real estate - owner occupied		1,265		1,012		12,409		14,686		2,747,573		2,762,259		117
Total commercial and industrial		5,205		4,091		93,077		102,373		13,125,166		13,227,539		2,614
Commercial real estate - income producing		1,519		593		7,720		9,832		3,340,467		3,350,299		663
Construction and land development		476		2,060		2,338		4,874		1,124,085		1,128,959		406
Residential mortgages		3,942		11,119		30,769		45,830		2,831,486		2,877,316		626
Consumer		9,245		5,874		14,712		29,831		2,014,433		2,044,264		921
Total	$	20,387	$	23,737	$	148,616	$	192,740	$	22,435,637	$	22,628,377	$	5,230

December 31, 2019	30-59 days past due		60-89 days past due		Greater than 90 days past due		Total past due		Current		Total Loans		Recorded investment > 90 days and still accruing
(in thousands)
Commercial non-real estate	$	20,893	$	13,445	$	100,806	$	135,144	$	9,031,803		9,166,947	$	1,537
Commercial real estate - owner occupied		4,862		556		7,268		12,686		2,725,774		2,738,460		830
Total commercial and industrial		25,755		14,001		108,074		147,830		11,757,577		11,905,407		2,367
Commercial real estate - income producing		738		703		2,910		4,351		2,990,097		2,994,448		450
Construction and land development		5,747		680		2,480		8,907		1,148,544		1,157,451		2,042
Residential mortgages		32,867		8,584		23,577		65,028		2,925,603		2,990,631		85
Consumer		18,586		6,215		9,901		34,702		2,130,116		2,164,818		1,638
Total	$	83,693	$	30,183	$	146,942	$	260,818	$	20,951,937	$	21,212,755	$	6,582

Credit Quality Indicators by Segments and Portfolio Class

The following table presents credit quality disclosures of amortized cost by class and vintage for term loans and by revolving and revolving converted to amortizing at June 30, 2020. We define vintage as the later of origination, renewal or restructure date.

	Term Loans
	Amortized Cost Basis by Origination Year
		2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
Commercial Loans:
Pass		$	4,296,564	$	3,327,755	$	2,146,064	$	1,672,980	$	1,187,467	$	1,605,845	$	2,518,581	$	100,625	$	16,855,881
Pass-Watch			52,823		53,406		64,528		86,433		45,023		85,315		102,437		12,810		502,775
Special Mention			1,598		4,372		5,798		26,179		13,687		16,091		11,882		1,242		80,849
Substandard			32,647		36,746		56,298		15,284		19,411		42,952		51,322		12,632		267,292
Doubtful			—		—		—		—		—		—		—		—		—
Total Commercial Loans		$	4,383,632	$	3,422,279	$	2,272,688	$	1,800,876	$	1,265,588	$	1,750,203	$	2,684,222	$	127,309	$	17,706,797
Residential Mortgage and Consumer Loans:
Performing		$	277,534	$	506,177	$	531,553	$	698,878	$	583,723	$	1,004,835	$	1,242,586	$	5,459		4,850,745
Nonperforming			954		4,275		6,360		10,315		5,546		35,972		3,409		4,004		70,835
Total Consumer Loans		$	278,488	$	510,452	$	537,913	$	709,193	$	589,269	$	1,040,807	$	1,245,995	$	9,463	$	4,921,580

Changes in Carrying Amount of Purchased Credit Impaired Loans and Related Accretable Yield

Changes in the carrying amount of purchased credit impaired loans and related accretable yield are presented in the following table for the year ended December 31, 2019.

	December 31, 2019
(in thousands)	Carrying Amount of Loans			Accretable Yield
Balance at beginning of period	$	129,596		$	37,294
Additions		120,562			6,246
Payments received, net		(48,076	)		(4,601	)
Accretion		13,163			(13,163	)
Decrease in expected cash flows based on actual cash flows and changes in cash flow assumptions		—			4,170
Balance at end of period	$	215,245		$	29,946

Total Commercial [Member]

Accounts Notes And Loans Receivable [Line Items]

Credit Quality Indicators by Segments and Portfolio Class

The following tables present the credit quality indicators by segments and portfolio class of loans held for investment at June 30, 2020 and December 31, 2019. The Company routinely assesses the ratings of loans in its portfolio through an established and comprehensive portfolio management process. In addition, the Company often looks at portfolios of loans to determine if there are areas of risk not specifically identified in its loan by loan approach. As a result, several loans were downgraded to pass-watch in 2020 in reaction to economic downturn caused by the pandemic and other environmental factors. In alignment with regulatory guidance, the Company has been working with its customers to manage through this period of severe uncertainty and economic stress, including providing various types of loan deferrals. As these deferrals expire and more information becomes available concerning individual borrower circumstances, further risk rating adjustments may be required.

	June 30, 2020
(in thousands)	Commercial non-real estate		Commercial real estate - owner- occupied		Total commercial and industrial		Commercial real estate - income producing		Construction and land development		Total commercial
Grade:
Pass	$	9,954,470	$	2,564,962	$	12,519,432	$	3,239,192	$	1,097,257	$	16,855,881
Pass-Watch		263,198		136,658		399,856		78,302		24,617		502,775
Special Mention		60,022		9,160		69,182		10,079		1,588		80,849
Substandard		187,590		51,479		239,069		22,726		5,497		267,292
Doubtful		—		—		—		—		—		—
Total	$	10,465,280	$	2,762,259	$	13,227,539	$	3,350,299	$	1,128,959	$	17,706,797

	December 31, 2019
(in thousands)	Commercial non-real estate		Commercial real estate - owner- occupied		Total commercial and industrial		Commercial real estate - income producing		Construction and land development		Total commercial
Grade:
Pass	$	8,492,113	$	2,517,448	$	11,009,561		2,883,553	$	1,120,997	$	15,014,111
Pass-Watch		220,850		146,266		367,116		69,765		25,621		462,502
Special Mention		71,654		14,651		86,305		14,995		283		101,583
Substandard		382,330		60,095		442,425		26,135		10,550		479,110
Doubtful		—		—		—		—		—		—
Total	$	9,166,947	$	2,738,460	$	11,905,407	$	2,994,448	$	1,157,451	$	16,057,306

Residential Mortgage and Consumer [Member]

Accounts Notes And Loans Receivable [Line Items]

Credit Quality Indicators by Segments and Portfolio Class

	June 30, 2020						December 31, 2019
(in thousands)	Residential mortgage		Consumer		Total		Residential mortgage		Consumer		Total
Performing	$	2,832,131	$	2,018,614	$	4,850,745	$	2,950,854	$	2,147,312	$	5,098,166
Nonperforming		45,185		25,650		70,835		39,777		17,506		57,283
Total	$	2,877,316	$	2,044,264	$	4,921,580	$	2,990,631	$	2,164,818	$	5,155,449