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ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of Allowance for Loan Losses and Loan Balances

The following table provides the activity of allowance for credit losses and loan balances for the three and nine months ended September 30, 2020 under the CECL model in accordance with ASC 326 (as adopted on January 1, 2020):


(Dollars in thousands)	Commercial and Industrial(1)		Owner-occupied Commercial		Commercial Mortgages		Construction		Residential(2)		Consumer(3)		Total
Three months ended September 30, 2020
Allowance for credit losses
Beginning balance	$	144,225	$	8,956	$	38,397	$	10,126	$	9,171	$	21,317	$	232,192

Charge-offs	(2,254)		—		(4)		—		—		(374)		(2,632)
Recoveries	223		8		6		—		26		187		450
Provision (credit)	6,335		1,420		(4,140)		104		(743)		(260)		2,716
Ending balance	$	148,529	$	10,384	$	34,259	$	10,230	$	8,454	$	20,870	$	232,726
Nine months ended September 30, 2020
Allowance for credit losses
Beginning balance, prior to adoption of ASC 326	$	22,849	$	4,616	$	7,452	$	3,891	$	1,381	$	7,387	$	47,576
Impact of adopting ASC 326(4)	19,747		(1,472)		1,662		681		7,522		7,715		35,855
Charge-offs	(7,390)		(336)		(55)		—		(175)		(1,955)		(9,911)
Recoveries	4,038		133		38		5		141		735		5,090
Provision (credit)	109,285		7,443		25,162		5,653		(415)		6,988		154,116
Ending balance	$	148,529	$	10,384	$	34,259	$	10,230	$	8,454	$	20,870	$	232,726
Period-end allowance allocated to:
Loans evaluated on an individual basis	$	16	$	—	$	—	$	—	$	—	$	—	$	16
Loans evaluated on a collective basis	148,513		10,384		34,259		10,230		8,454		20,870		232,710

Ending balance	$	148,529	$	10,384	$	34,259	$	10,230	$	8,454	$	20,870	$	232,726
Period-end loan balances:
Loans evaluated on an individual basis	$	14,946	$	5,132	$	4,878	$	83	$	5,307	$	2,503	$	32,849
Loans evaluated on a collective basis	3,115,408		1,339,362		2,162,630		666,234		839,688		1,166,388		9,289,710


Ending balance	$	3,130,354	$	1,344,494	$	2,167,508	$	666,317	$	844,995	$	1,168,891	$	9,322,559

(1)Includes commercial small business leases and PPP loans.

(2)Period-end loan balance excludes reverse mortgages at fair value of $12.5 million.

(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

(4)The impact of adopting ASC 326 includes $0.1 million for the initial allowance on loans purchased with credit deterioration.

The following table provides the activity of the allowance for loan and lease losses and loan balances for the three and nine months ended September 30, 2019 under the incurred loss model:


(Dollars in thousands)	Commercial and Industrial(1)		Owner - occupied Commercial		Commercial Mortgages		Construction		Residential(2)		Consumer		Total
Three months ended September 30, 2019
Allowance for loan and lease losses
Beginning balance	$	22,004	$	4,480	$	6,544	$	2,984	$	1,358	$	7,994	$	45,364
Charge-offs	(1,441)		(12)		2		—		(3)		(1,042)		(2,496)
Recoveries	297		4		120		2		(60)		319		682
Provision (credit)	3,595		23		97		(105)		43		327		3,980
Provision (credit) for acquired loans	49		9		(26)		—		(8)		117		141
Ending balance	$	24,504	$	4,504	$	6,737	$	2,881	$	1,330	$	7,715	$	47,671
Nine months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	14,211	$	5,057	$	6,806	$	3,712	$	1,428	$	8,325	$	39,539
Charge-offs	(15,185)		(20)		(153)		(42)		(288)		(2,686)		(18,374)
Recoveries	858		85		547		4		(76)		1,118		2,536
Provision (credit)	24,286		(614)		(533)		(787)		118		656		23,126
Provision (credit) for acquired loans	334		(4)		70		(6)		148		302		844
Ending balance	$	24,504	$	4,504	$	6,737	$	2,881	$	1,330	$	7,715	$	47,671
Period-end allowance allocated to:
Individually evaluated for impairment	$	3,534	$	156	$	—	$	—	$	478	$	180	$	4,348
Collectively evaluated for impairment	20,969		4,269		6,690		2,873		813		7,534		43,148
Acquired loans individually evaluated for impairment	1		79		47		8		39		1		175
Ending balance	$	24,504	$	4,504	$	6,737	$	2,881	$	1,330	$	7,715	$	47,671
Period-end loan balances:
Individually evaluated for impairment(3)	$	21,135	$	9,263	$	2,325	$	—	$	12,031	$	7,502	$	52,256
Collectively evaluated for impairment	1,657,748		935,306		1,019,723		375,664		138,121		887,193		5,013,755
Acquired nonimpaired loans	605,804		322,030		1,237,282		138,251		876,089		241,633		3,421,089
Acquired impaired loans	1,664		6,809		12,655		487		7,655		2,545		31,815
Ending balance(4)	$	2,286,351	$	1,273,408	$	2,271,985	$	514,402	$	1,033,896	$	1,138,873	$	8,518,915

(1)Includes commercial small business leases.

(2)Period-end loan balance excludes reverse mortgages at fair value of $17.7 million.

(3)The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.1 million for the period ending September 30, 2019. Accruing troubled debt restructured loans are considered impaired loans.

(4)Ending loan balances do not include net deferred fees.

Summary of Nonaccrual and Past Due Loans


	September 30, 2020
(Dollars in thousands)	30–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans(1)			Total Loans
Commercial and industrial(2)	$	17,314		$	1,040		$	18,354		$	3,097,310		$	14,690		$	3,130,354
Owner-occupied commercial	3,073			3,171			6,244			1,334,228			4,022			1,344,494
Commercial mortgages	15,290			1,399			16,689			2,149,167			1,652			2,167,508
Construction	2,799			—			2,799			663,518			—			666,317
Residential(3)	2,673			—			2,673			839,240			3,082			844,995
Consumer(4)	10,282			6,276			16,558			1,149,944			2,389			1,168,891
Total	$	51,431		$	11,886		$	63,317		$	9,233,407		$	25,835		$	9,322,559
% of Total Loans	0.55		%	0.13		%	0.68		%	99.04		%	0.28		%	100		%

(1)Nonaccrual loans with an allowance totaled $15 thousand.

(2)Includes commercial small business leases and PPP loans.

(3)Residential accruing current balances excludes reverse mortgages at fair value of $12.5 million.

(4)Includes $15.0 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.

The following table shows nonaccrual and past due loans presented at unpaid principal balance at the date indicated under the incurred loss model:


	December 31, 2019
(Dollars in thousands)	30–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial and industrial(1)	$	6,289		$	2,038		$	8,327		$	2,214,506		$	1,564		$	11,031		$	2,235,428
Owner-occupied commercial	1,498			831			2,329			1,283,320			6,757			4,060			1,296,466
Commercial mortgages	4,999			99			5,098			2,207,582			8,670			1,626			2,222,976
Construction	—			—			—			580,591			491			—			581,082
Residential(2)	6,733			437			7,170			980,893			7,326			4,490			999,879
Consumer(3)	13,164			12,745			25,909			1,098,980			2,127			1,715			1,128,731
Total(4)	$	32,683		$	16,150		$	48,833		$	8,365,872		$	26,935		$	22,922		$	8,464,562
% of Total Loans	0.39		%	0.19		%	0.58		%	98.83		%	0.32		%	0.27		%	100		%

(1)Includes commercial small business leases.

(2)Residential accruing current balances excludes reverse mortgages, at fair value of $16.6 million.

(3)Includes $22.3 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.

(4)Balances in the table above include a total of $3.2 billion acquired non-impaired loans.

Schedule Of Collateral Dependent Loans

The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at September 30, 2020 under the CECL model:


	September 30, 2020
(Dollars in thousands)	Property		Equipment and other
Commercial and industrial(1)	$	10,824	$	3,866
Owner-occupied commercial	4,022		—
Commercial mortgages	1,652		—
Construction	—		—
Residential(2)	3,082		—
Consumer(3)	2,389		—
Total	$	21,969	$	3,866

(1)Includes commercial small business leases.

(2)Excludes reverse mortgages at fair value.

(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

Analysis of Impaired Loans

The following table provides an analysis of the Company's impaired loans at December 31, 2019 under the incurred loss model:


	December 31, 2019
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve(1)		Loans with Related Reserve(2)		Related Reserve		Contractual Principal Balances(2)		Average Loan Balances
Commercial and industrial	$	11,900	$	9,979	$	1,921	$	1,185	$	14,653	$	17,033
Owner-occupied commercial	5,596		3,919		1,677		233		6,083		7,869
Commercial mortgages	4,888		1,753		3,135		65		5,215		4,607
Construction	435		—		435		24		488		1,686
Residential	14,119		8,858		5,261		557		16,721		12,031
Consumer	7,584		5,876		1,708		178		8,444		7,729
Total	$	44,522	$	30,385	$	14,137	$	2,242	$	51,604	$	50,955

(1)Reflects loan balances at or written down to their remaining book balance.

(2)The above includes acquired impaired loans totaling $7.9 million in the ending loan balance and $9.0 million in the contractual principal balance.

Schedule of Commercial Credit Exposure

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of September 30, 2020 under the CECL model.


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
(Dollars in thousands)
Commercial and industrial(1):
Risk Rating
Pass(2)	$	1,360,120	$	460,904	$	275,565	$	182,326	$	105,960	$	148,327	$	5,893	$	139,851	$	2,678,946
Special mention	3,514		42,224		29,414		10,445		8,145		29,059		—		24,220		147,021
Substandard or Lower	75,455		70,069		62,398		53,471		11,080		23,318		65		8,531		304,387
	$	1,439,089	$	573,197	$	367,377	$	246,242	$	125,185	$	200,704	$	5,958	$	172,602	$	3,130,354
Owner-occupied commercial:
Risk Rating
Pass	$	162,465	$	236,745	$	96,951	$	151,118	$	135,794	$	298,133	$	—	$	134,165	$	1,215,371
Special mention	83		7,974		653		17,670		3,599		3,328		—		3,451		36,758
Substandard or Lower	4,556		20,219		15,077		14,076		9,127		22,304		—		7,006		92,365
	$	167,104	$	264,938	$	112,681	$	182,864	$	148,520	$	323,765	$	—	$	144,622	$	1,344,494
Commercial mortgages:
Risk Rating
Pass	$	277,281	$	299,727	$	247,892	$	306,437	$	301,239	$	462,444	$	—	$	122,592	$	2,017,612
Special mention	8,479		7,211		22,309		21,450		1,906		6,519		—		1,861		69,735
Substandard or Lower	26,260		19,239		1,911		1,833		2,636		26,211		—		2,071		80,161
	$	312,020	$	326,177	$	272,112	$	329,720	$	305,781	$	495,174	$	—	$	126,524	$	2,167,508
Construction:
Risk Rating
Pass	$	123,965	$	209,675	$	214,989	$	24,828	$	7,711	$	3,864	$	—	$	66,591	$	651,623
Special mention	—		—		—		3,503		—		—		—		616		4,119
Substandard or Lower	—		8,743		—		—		—		83		—		1,749		10,575
	$	123,965	$	218,418	$	214,989	$	28,331	$	7,711	$	3,947	$	—	$	68,956	$	666,317
Residential(3):
Risk Rating
Performing	$	21,380	$	32,628	$	89,647	$	103,019	$	163,476	$	429,538	$	—	$	—	$	839,688
Nonperforming(4)	112		—		—		—		92		5,103		—		—		5,307
	$	21,492	$	32,628	$	89,647	$	103,019	$	163,568	$	434,641	$	—	$	—	$	844,995
Consumer(5):
Risk Rating
Performing	$	171,357	$	152,211	$	275,702	$	71,871	$	50,878	$	62,148	$	374,550	$	7,439	$	1,166,156
Nonperforming(6)	—		—		642		236		—		—		1,478		379		2,735
	$	171,357	$	152,211	$	276,344	$	72,107	$	50,878	$	62,148	$	376,028	$	7,818	$	1,168,891

(1)Includes commercial small business leases.

(2)Includes $954.2 million of PPP loans.

(3)Excludes reverse mortgages at fair value.

(4)Includes troubled debt restructured mortgages performing in accordance with the loans' modified terms and are accruing interest.

(5)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

(6)Includes troubled debt restructured home equity installment loans performing in accordance with the loans' modified terms and are accruing interest.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for loan and lease loss, as of December 31, 2019 under the incurred loss model.

Commercial Credit Exposure


	December 31, 2019
	Commercial and Industrial(1)		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial(2)
(Dollars in thousands)									Amount		%
Risk Rating:
Special mention	$	12,287	$	—	$	40,478	$	—	$	52,765
Substandard:
Accrual	78,809		32,679		23,017		—		134,505
Nonaccrual	9,852		4,037		1,626		—		15,515
Doubtful	1,179		23		—		—		1,202
Total Special Mention and Substandard	102,127		36,739		65,121		—		203,987		3	%
Acquired impaired	1,564		6,757		8,670		491		17,482		—	%
Pass	2,131,737		1,252,970		2,149,185		580,591		6,114,483		97	%
Total	$	2,235,428	$	1,296,466	$	2,222,976	$	581,082	$	6,335,952	100	%

(1)Includes commercial small business leases.

(2)Includes $2.2 billion of acquired non-impaired loans as of December 31, 2019.

Schedule of Consumer Credit Exposure

Retail Credit Exposure


	Residential(2)		Consumer			Total Retail(3)
	December 31, 2019		December 31, 2019		December 31, 2019
(Dollars in thousands)						Amount		Percent
Nonperforming(1)	$	12,858	$	7,374		$	20,232	1	%
Acquired impaired loans	7,326		2,127			9,453		—	%
Performing	979,695		1,119,230			2,098,925		99	%
Total	$	999,879	$	1,128,731		$	2,128,610	100	%

(1)Includes $14.0 million as of December 31, 2019 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest.

(2)Residential performing loans excludes $16.6 million of reverse mortgages at fair value as of December 31, 2019.

(3)Total includes $1.1 billion in acquired non-impaired loans as of December 31, 2019.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents the balance of TDRs as of the indicated dates:



(Dollars in thousands)	September 30, 2020		December 31, 2019
Performing TDRs	$	15,670	$	14,281
Nonperforming TDRs	4,136		5,896
Total TDRs	$	19,806	$	20,177

Approximately $0.2 million and $0.6 million in related reserves have been established for these loans at September 30, 2020 and December 31, 2019, respectively.

The following tables present information regarding the types of loan modifications made for the three and nine months ended September 30, 2020 and 2019:


	Three months ended September 30, 2020					Nine months ended September 30, 2020
	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total
Commercial and industrial	—	—	—	—	—	1	—	—	—	1
Owner-occupied commercial	—	—	—	—	—	3	—	—	—	3
Commercial mortgages	—	—	—	—	—	—	1	—	—	1
Construction	—	—	—	—	—	—	—	—	—	—
Residential	—	—	1	1	2	—	—	5	3	8
Consumer	—	—	1	2	3	—	—	8	5	13
Total	—	—	2	3	5	4	1	13	8	26


	Three months ended September 30, 2019					Nine months ended September 30, 2019
	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total
Commercial and industrial	—	—	—	—	—	—	1	—	2	3
Owner-occupied commercial	—	—	—	—	—	—	—	—	2	2
Commercial mortgages	—	—	—	—	—	1	—	—	1	2
Construction	—	—	—	—	—	—	—	—	—	—
Residential	—	—	1	—	1	4	—	2	—	6
Consumer	—	2	1	2	5	5	3	2	2	12
Total	—	2	2	2	6	10	4	4	7	25

(1)Other includes underwriting exceptions.

Principal balances are generally not forgiven when a loan is modified as a TDR. Nonaccruing restructured loans remain in nonaccrual status until there has been a period of sustained repayment performance, which is typically six months, and repayment is reasonably assured.

The following table presents loans modified as TDRs during the three and nine months ended September 30, 2020 and 2019.


	Three Months Ended September 30,								Nine Months Ended September 30,
	2020				2019				2020				2019
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification		Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	—	$	—	$	—	$	—	$	16	$	16	$	1,335	$	1,335
Owner-occupied commercial	—		—		—		—		1,206		1,206		1,413		1,413
Commercial mortgages	—		—		—		—		99		99		504		504
Construction	—		—		—		—		—		—		—		—
Residential	404		404		253		253		1,522		1,522		670		670
Consumer	928		928		500		500		1,321		1,321		1,807		1,807
Total	$	1,332	$	1,332	$	753	$	753	$	4,164	$	4,164	$	5,729	$	5,729