Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 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 $86.0 million and $67.7 million at September 30, 2020 and December 31, 2019, respectively.

	September 30,		December 31,
(in thousands)	2020		2019
Commercial non-real estate	$	10,257,788	$	9,166,947
Commercial real estate - owner occupied		2,779,407		2,738,460
Total commercial and industrial		13,037,195		11,905,407
Commercial real estate - income producing		3,406,554		2,994,448
Construction and land development		1,096,149		1,157,451
Residential mortgages		2,754,388		2,990,631
Consumer		1,945,918		2,164,818
Total loans	$	22,240,204	$	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 nine months ended September 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
	Nine Months Ended September 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		(364,123	)		(1,828	)	$	(365,951	)		(2,211	)		(7	)		(170	)		(13,640	)		(381,979	)
Recoveries		4,831			659		$	5,490			46			549			1,078			4,360			11,523
Net provision for loan losses		401,155			41,336		$	442,491			78,661			12,325			17,613			27,378			578,468
Ending balance - allowance for loan losses	$	148,051		$	66,021		$	214,072		$	104,652		$	29,695		$	51,773		$	48,482		$	448,674
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		(3,786	)		187			(3,599	)		1,599			6,046			(11	)		(3,813	)		222
Ending balance - reserve for unfunded lending commitments		5,960			475			6,435			2,048			21,704			6			1,333			31,526
Total allowance for credit losses	$	154,011		$	66,496		$	220,507		$	106,700		$	51,399		$	51,779		$	49,815		$	480,200
Allowance for loan losses:
Individually evaluated	$	27,304		$	1,344		$	28,648		$	24		$	169		$	416		$	456		$	29,713
Collectively evaluated		120,747			64,677			185,424			104,628			29,526			51,357			48,026			418,961
Allowance for loan losses	$	148,051		$	66,021		$	214,072		$	104,652		$	29,695		$	51,773		$	48,482		$	448,674
Reserve for unfunded lending commitments:
Individually evaluated	$	992		$	—		$	992		$	—		$	—		$	—		$	5		$	997
Collectively evaluated		4,968			475			5,443			2,048			21,704			6			1,328			30,529
Reserve for unfunded lending commitments:	$	5,960		$	475		$	6,435		$	2,048		$	21,704		$	6		$	1,333		$	31,526
Total allowance for credit losses	$	154,011		$	66,496		$	220,507		$	106,700		$	51,399		$	51,779		$	49,815		$	480,200
Loans:
Individually evaluated	$	73,139		$	11,124		$	84,263		$	5,549		$	1,837		$	6,064		$	3,924		$	101,637
Collectively evaluated		10,184,649			2,768,283			12,952,932			3,401,005			1,094,312			2,748,324			1,941,994			22,138,567
Total loans	$	10,257,788		$	2,779,407		$	13,037,195		$	3,406,554		$	1,096,149		$	2,754,388		$	1,945,918		$	22,240,204

				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
	Nine Months Ended September 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		(33,382	)		(137	)		(33,519	)		(10	)		(7	)		(660	)		(13,169	)		(47,365	)
Recoveries		5,662			284			5,946			518			108			433			2,866			9,871
Net provision for loan losses		29,267			545			29,812			7,604			(5,982	)		(2,076	)		9,194			38,552
Ending balance	$	99,299		$	14,449		$	113,748		$	25,750		$	9,766		$	21,479		$	24,829		$	195,572
Ending balance:
Allowance:
Individually evaluated for impairment	$	11,535		$	57		$	11,592		$	49		$	29		$	183		$	365		$	12,218
Amounts related to purchased credit impaired loans		135			172			307			40			144			8,032			300			8,823
Collectively evaluated for impairment		87,629			14,220			101,849			25,661			9,593			13,264			24,164			174,531
Total allowance	$	99,299		$	14,449		$	113,748		$	25,750		$	9,766		$	21,479		$	24,829		$	195,572
Loans:
Individually evaluated for impairment	$	201,979		$	11,109		$	213,088		$	2,781		$	3,385		$	4,301		$	1,583		$	225,138
Purchased credit impaired loans		33,040			45,124			78,164			27,281			23,431			93,450			6,294			228,620
Collectively evaluated for impairment		8,657,985			2,678,146			11,336,131			3,030,506			1,163,902			2,907,207			2,144,448			20,582,194
Total loans	$	8,893,004		$	2,734,379		$	11,627,383		$	3,060,568		$	1,190,718		$	3,004,958		$	2,152,325		$	21,035,952

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.

	September 30,		December 31,
(in thousands)	2020		2019
Commercial non-real estate	$	78,184	$	178,678
Commercial real estate - owner occupied		14,683		7,708
Total commercial and industrial		92,867		186,386
Commercial real estate - income producing		7,028		2,594
Construction and land development		3,234		1,217
Residential mortgages		43,596		39,262
Consumer		24,737		16,374
Total loans	$	171,462	$	245,833

Troubled Debt Restructurings Modified by Portfolio Class

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

	Three Months Ended
($ in thousands)	September 30, 2020						September 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	$	13,083	$	6,271
Commercial real estate - owner occupied		—		—		—		—		—		—
Total commercial and industrial		—		—		—		2		13,083		6,271
Commercial real estate - income producing		—		—		—		1		123		123
Construction and land development		—		—		—		3		323		323
Residential mortgages		5		1,358		1,358		3		297		297
Consumer		2		25		25		4		70		70
Total loans		7	$	1,383	$	1,383		13	$	13,896	$	7,084

	Nine Months Ended
($ in thousands)	September 30, 2020						September 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		10	$	27,220	$	20,408
Commercial real estate - owner occupied		—		—		—		1		167		167
Total commercial and industrial		3		745		745		11		27,387		20,575
Commercial real estate - income producing		—		—		—		1		123		123
Construction and land development		1		15		15		3		323		323
Residential mortgages		14		3,424		3,424		10		2,199		2,199
Consumer		7		89		89		6		116		116
Total loans		25		4,273		4,273		31	$	30,148	$	23,336

Loans Individually Evaluated Disaggregated by Portfolio Class

The tables below present loans that are individually evaluated by portfolio class at September 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.

	September 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	$	20,689	$	52,450	$	125,893	$	27,304
Commercial real estate - owner occupied		6,900		4,224		14,029		1,344
Total commercial and industrial		27,589		56,674		139,922		28,648
Commercial real estate - income producing		5,453		96		7,016		24
Construction and land development		667		1,170		1,838		169
Residential mortgages		2,890		3,174		6,869		416
Consumer		1,592		2,332		3,924		456
Total loans	$	38,191	$	63,446	$	159,569	$	29,713

	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 three and nine months ended September 30, 2020 and 2019. Interest income recognized represents interest on accruing loans modified in a TDR.

	Three Months Ended
	September 30, 2020				September 30, 2019
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial non-real estate	$	81,227	$	37	$	213,291	$	1,062
Commercial real estate - owner occupied		10,553		—		14,439		45
Total commercial and industrial		91,780		37		227,730		1,107
Commercial real estate - income producing		5,886		6		2,331		7
Construction and land development		1,422		3		1,702		2
Residential mortgages		5,887		22		4,195		2
Consumer		3,947		21		1,552		21
Total loans	$	108,922	$	89	$	237,510	$	1,139

	Nine Months Ended
	September 30, 2020				September 30, 2019
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial non-real estate	$	190,622	$	776	$	225,597	$	4,202
Commercial real estate - owner occupied		7,306		—		17,044		196
Total commercial and industrial		197,928		776		242,641		4,398
Commercial real estate - income producing		5,749		18		2,430		21
Construction and land development		1,805		7		597		2
Residential mortgages		5,318		43		4,525		9
Consumer		2,651		67		1,442		55
Total loans	$	213,451	$	911	$	251,635	$	4,485

Aging Analysis of Past Due Loans by Portfolio Class

The tables below present the aging analysis of past due loans by portfolio class at September 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.

September 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	$	6,026	$	14,277	$	65,705	$	86,008	$	10,171,780	$	10,257,788	$	5,110
Commercial real estate - owner occupied		535		2,276		11,708		14,519		2,764,888		2,779,407		113
Total commercial and industrial		6,561		16,553		77,413		100,527		12,936,668		13,037,195		5,223
Commercial real estate - income producing		165		30,238		8,701		39,104		3,367,450		3,406,554		2,490
Construction and land development		1,076		237		3,178		4,491		1,091,658		1,096,149		393
Residential mortgages		3,164		11,779		32,908		47,851		2,706,537		2,754,388		1,818
Consumer		9,451		4,621		12,920		26,992		1,918,926		1,945,918		515
Total	$	20,417	$	63,428	$	135,120	$	218,965	$	22,021,239	$	22,240,204	$	10,439

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 September 30, 2020. The Company defines 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		$	4,980,953	$	3,098,996	$	1,979,152	$	1,508,213	$	1,067,144	$	1,417,583	$	2,385,763	$	82,942	$	16,520,746
Pass-Watch			70,389		101,741		56,681		78,598		53,259		116,413		125,134		5,352		607,567
Special Mention			5,687		13,763		24,805		17,888		31,355		2,268		25,960		2,900		124,626
Substandard			76,243		21,552		24,505		37,104		18,231		50,571		48,004		10,749		286,959
Doubtful			—		—		—		—		—		—		—		—		—
Total Commercial Loans		$	5,133,272	$	3,236,052	$	2,085,143	$	1,641,803	$	1,169,989	$	1,586,835	$	2,584,861	$	101,943	$	17,539,898
Residential Mortgage and Consumer Loans:
Performing		$	351,828	$	501,172	$	489,007	$	629,621	$	536,380	$	901,979	$	1,212,937	$	5,609		4,628,533
Nonperforming			1,244		4,540		6,181		10,422		5,178		35,169		3,039		6,000		71,773
Total Consumer Loans		$	353,072	$	505,712	$	495,188	$	640,043	$	541,558	$	937,148	$	1,215,976	$	11,609	$	4,700,306

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 September 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 examines 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 the 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. While a significant number of these deferrals have expired, our ability to predict future cash flow is limited due to the economic uncertainty, and we expect that further risk rating adjustments may be required.

	September 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	$	9,617,743	$	2,562,635	$	12,180,378	$	3,278,116	$	1,062,252	$	16,520,746
Pass-Watch		368,292		127,688		495,980		83,736		27,851		607,567
Special Mention		85,096		37,299		122,395		2,021		210		124,626
Substandard		186,657		51,785		238,442		42,681		5,836		286,959
Doubtful		—		—		—		—		—		—
Total	$	10,257,788	$	2,779,407	$	13,037,195	$	3,406,554	$	1,096,149	$	17,539,898

	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

	September 30, 2020						December 31, 2019
(in thousands)	Residential mortgage		Consumer		Total		Residential mortgage		Consumer		Total
Performing	$	2,708,484	$	1,920,049	$	4,628,533	$	2,950,854	$	2,147,312	$	5,098,166
Nonperforming		45,904		25,869		71,773		39,777		17,506		57,283
Total	$	2,754,388	$	1,945,918	$	4,700,306	$	2,990,631	$	2,164,818	$	5,155,449