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Loans and Leases and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of major classifications of loan and lease portfolio
Major classifications of the loan and lease portfolio (collectively referred to as the “loan portfolio” or “loans”) are summarized as of the dates indicated as follows (in thousands).
September 30, 2020December 31, 2019
Owner occupied commercial real estate$2,008,674 $1,720,227 
Income producing commercial real estate2,493,625 2,007,950 
Commercial & industrial (1)
3,104,868 1,220,657 
Commercial construction981,371 976,215 
Equipment financing823,022 744,544 
Total commercial9,411,560 6,669,593 
Residential mortgage1,269,548 1,117,616 
Home equity lines of credit706,877 660,675 
Residential construction263,266 236,437 
Consumer147,659 128,232 
Total loans11,798,910 8,812,553 
Less allowance for credit losses - loans(134,256)(62,089)
Loans, net$11,664,654 $8,750,464 
(1) Commercial and industrial loans as of September 30, 2020 included $1.32 billion of PPP loans.
Schedule of net investment in leases
At September 30, 2020 and December 31, 2019, equipment financing assets included leases of $36.6 million and $37.4 million, respectively. The components of the net investment in leases, which included both sales-type and direct financing, are presented below (in thousands). 
 September 30, 2020December 31, 2019
Minimum future lease payments receivable$38,769 $39,709 
Estimated residual value of leased equipment3,361 3,631 
Initial direct costs678 842 
Security deposits(782)(989)
Purchase accounting premium149 273 
Unearned income(5,531)(6,088)
Net investment in leases$36,644 $37,378 
Schedule of minimum future lease payments expected to be received from lease contracts
Minimum future lease payments expected to be received from equipment financing lease contracts as of September 30, 2020 were as follows (in thousands): 
Year 
Remainder of 2020$3,986 
202114,203 
202210,461 
20236,495 
20242,760 
Thereafter864 
Total$38,769 
Schedule of changes in the balance of the accretable yield for PCI loans
The following table presents changes in the balance of the accretable yield for PCI loans for the periods indicated (in thousands): 
September 30, 2019
 Three Months EndedNine Months Ended
Balance at beginning of period$26,308 $26,868 
Additions due to acquisitions— 1,300 
Accretion(4,950)(14,037)
Reclassification from nonaccretable difference1,159 5,627 
Changes in expected cash flows that do not affect nonaccretable difference329 3,088 
Balance at end of period$22,846 $22,846 
Schedule of loans by aging category and accrual status
The following table presents the aging of the amortized cost basis in loans by aging category and accrual status as of September 30, 2020 (in thousands). Short-term deferrals related to the COVID-19 crisis are not reported as past due during the deferral period.
 Accruing
Current LoansLoans Past Due
30 - 59 Days60 - 89 Days> 90 DaysNonaccrual LoansTotal Loans
Owner occupied commercial real estate$1,996,903 $585 $111 $— $11,075 $2,008,674 
Income producing commercial real estate2,479,614 996 785 — 12,230 2,493,625 
Commercial & industrial3,099,387 1,882 65 — 3,534 3,104,868 
Commercial construction979,169 339 — — 1,863 981,371 
Equipment financing817,583 1,416 886 — 3,137 823,022 
Total commercial9,372,656 5,218 1,847 — 31,839 9,411,560 
Residential mortgage1,252,937 2,481 266 — 13,864 1,269,548 
Home equity lines of credit702,457 1,532 246 — 2,642 706,877 
Residential construction262,002 712 73 — 479 263,266 
Consumer147,177 202 20 — 260 147,659 
Total loans$11,737,229 $10,145 $2,452 $— $49,084 $11,798,910 

The following table presents the aging of recorded investment in loans, including accruing and nonaccrual loans, as of December 31, 2019 (in thousands).
 Loans Past Due - Accruing and Nonaccrual  
30 - 59 Days60 - 89 Days
> 90 Days (1)
TotalCurrent LoansPCI LoansTotal
Owner occupied commercial real estate$2,913 $2,007 $6,079 $10,999 $1,700,682 $8,546 $1,720,227 
Income producing commercial real estate562 706 401 1,669 1,979,053 27,228 2,007,950 
Commercial & industrial2,140 491 2,119 4,750 1,215,581 326 1,220,657 
Commercial construction1,867 557 96 2,520 966,833 6,862 976,215 
Equipment financing2,065 923 3,045 6,033 734,526 3,985 744,544 
Total commercial9,547 4,684 11,740 25,971 6,596,675 46,947 6,669,593 
Residential mortgage5,655 2,212 2,171 10,038 1,097,999 9,579 1,117,616 
Home equity lines of credit1,697 421 1,385 3,503 655,762 1,410 660,675 
Residential construction325 125 402 852 235,211 374 236,437 
Consumer 668 181 27 876 127,020 336 128,232 
Total loans$17,892 $7,623 $15,725 $41,240 $8,712,667 $58,646 $8,812,553 
(1) Excluding PCI loans, substantially all loans more than 90 days past due were on nonaccrual status at December 31, 2019.
Schedule of nonaccrual loans by loan class
The following table presents nonaccrual loans by loan class for the periods indicated (in thousands). 
CECLIncurred Loss
 September 30, 2020December 31, 2019
Nonaccrual loans with no allowanceNonaccrual loans with an allowanceTotal Nonaccrual LoansNonaccrual
Loans
Owner occupied commercial real estate$8,335 $2,740 $11,075 $10,544 
Income producing commercial real estate7,181 5,049 12,230 1,996 
Commercial & industrial1,213 2,321 3,534 2,545 
Commercial construction1,428 435 1,863 2,277 
Equipment financing111 3,026 3,137 3,141 
Total commercial18,268 13,571 31,839 20,503 
Residential mortgage1,964 11,900 13,864 10,567 
Home equity lines of credit1,066 1,576 2,642 3,173 
Residential construction181 298 479 939 
Consumer219 41 260 159 
Total$21,698 $27,386 $49,084 $35,341 
Schedule of risk category of loans by vintage year or class of loans
Based on the most recent analysis performed, the amortized cost of loans by risk category by vintage year as of the date indicated is as follows (in thousands).
As of September 30, 2020
Term Loans by Origination YearRevolversRevolvers converted to term loansTotal
20202019201820172016Prior
Owner occupied commercial real estate:
Pass$536,362 $407,134 $258,280 $218,505 $213,644 $228,141 $54,615 $11,174 $1,927,855 
Watch4,552 4,916 1,019 3,987 11,021 3,719 620 59 29,893 
Substandard5,790 8,091 8,669 13,647 2,652 8,756 2,049 1,272 50,926 
Total owner occupied commercial real estate546,704 420,141 267,968 236,139 227,317 240,616 57,284 12,505 2,008,674 
Income producing commercial real estate:
Pass630,081 509,098 480,546 280,614 229,065 205,567 32,717 9,243 2,376,931 
Watch22,380 2,986 5,670 1,459 23,550 10,806 — 1,749 68,600 
Substandard8,781 8,117 7,775 5,529 15,232 2,562 — 98 48,094 
Total income producing commercial real estate661,242 520,201 493,991 287,602 267,847 218,935 32,717 11,090 2,493,625 
Commercial & industrial
Pass1,658,045 342,311 285,481 130,740 103,886 55,855 466,479 5,834 3,048,631 
Watch1,068 1,949 1,183 522 697 31 10,461 100 16,011 
Substandard7,743 3,782 6,155 3,302 1,190 1,442 15,769 843 40,226 
Total commercial & industrial1,666,856 348,042 292,819 134,564 105,773 57,328 492,709 6,777 3,104,868 
Commercial construction
Pass245,348 236,060 244,892 103,853 73,063 13,586 20,576 7,310 944,688 
Watch1,479 585 13,940 11,789 13 83 — — 27,889 
Substandard3,428 601 374 346 2,754 272 — 1,019 8,794 
Total commercial construction250,255 237,246 259,206 115,988 75,830 13,941 20,576 8,329 981,371 
Equipment financing:
Pass311,697 298,146 146,957 48,264 13,336 950 — — 819,350 
Substandard116 1,168 1,797 413 146 32 — — 3,672 
Total equipment financing311,813 299,314 148,754 48,677 13,482 982 — — 823,022 
Residential mortgage:
Pass325,928 229,881 150,863 140,749 138,321 258,641 19 7,264 1,251,666 
Substandard1,810 1,852 3,383 1,261 772 8,485 — 319 17,882 
Total residential mortgage327,738 231,733 154,246 142,010 139,093 267,126 19 7,583 1,269,548 
Home equity lines of credit
Pass— — — — — — 684,273 18,743 703,016 
Substandard— — — — — — 338 3,523 3,861 
Total home equity lines of credit— — — — — — 684,611 22,266 706,877 
Residential construction
Pass157,893 75,907 5,167 5,026 3,851 14,663 — 70 262,577 
Substandard— 85 55 37 141 371 — — 689 
Total residential construction157,893 75,992 5,222 5,063 3,992 15,034 — 70 263,266 
Consumer
Pass43,495 31,411 17,547 6,074 4,517 2,193 41,840 68 147,145 
Watch— — — — — — 87 — 87 
Substandard2 84 36 110 86 105 — 4 427 
Total consumer43,497 31,495 17,583 6,184 4,603 2,298 41,927 72 147,659 
Total loans
Pass3,908,849 2,129,948 1,589,733 933,825 779,683 779,596 1,300,519 59,706 11,481,859 
Watch29,479 10,436 21,812 17,757 35,281 14,639 11,168 1,908 142,480 
Substandard27,670 23,780 28,244 24,645 22,973 22,025 18,156 7,078 174,571 
Total loans$3,965,998 $2,164,164 $1,639,789 $976,227 $837,937 $816,260 $1,329,843 $68,692 $11,798,910 
Based on the most recent analysis performed, the risk category of loans by class of loans as of the date indicated is as follows (in thousands).
As of December 31, 2019
 PassWatchSubstandardDoubtful /
Loss		Total
Owner occupied commercial real estate$1,638,398 $24,563 $48,720 $— $1,711,681 
Income producing commercial real estate1,914,524 40,676 25,522 — 1,980,722 
Commercial & industrial1,156,366 16,385 47,580 — 1,220,331 
Commercial construction960,251 2,298 6,804 — 969,353 
Equipment financing737,418 — 3,141 — 740,559 
Total commercial6,406,957 83,922 131,767 — 6,622,646 
Residential mortgage1,093,902 — 14,135 — 1,108,037 
Home equity lines of credit654,619 — 4,646 — 659,265 
Residential construction234,791 — 1,272 — 236,063 
Consumer127,507 8 381 — 127,896 
Total loans, excluding PCI loans8,517,776 83,930 152,201 — 8,753,907 
Owner occupied commercial real estate3,238 2,797 2,511 — 8,546 
Income producing commercial real estate19,648 6,305 1,275 — 27,228 
Commercial & industrial104 81 141 — 326 
Commercial construction3,628 590 2,644 — 6,862 
Equipment financing3,952 — 33 — 3,985 
Total commercial30,570 9,773 6,604 — 46,947 
Residential mortgage8,112 — 1,467 — 9,579 
Home equity lines of credit1,350 — 60 — 1,410 
Residential construction348 — 26 — 374 
Consumer303 — 33 — 336 
Total PCI loans40,683 9,773 8,190 — 58,646 
Total loan portfolio$8,558,459 $93,703 $160,391 $— $8,812,553 
Schedule of loans modified under the terms of a TDR, including TDR loans that defaulted
Loans modified under the terms of a TDR during the three and nine months ended September 30, 2020 and 2019 are presented in the following table. In addition, the table presents loans modified under the terms of a TDR that defaulted (became 90 days or more delinquent or otherwise in default of modified terms) during the periods presented and were initially restructured within one year prior to default (dollars in thousands).
 New TDRs
 Post-Modification Amortized Cost by Type of ModificationTDRs Modified Within the Previous Twelve Months That Have Subsequently Defaulted
Number of
 Contracts
Rate  
Reduction		StructureOtherTotalNumber of  
Contracts		Amortized Cost
Three Months Ended September 30, 2020       
Owner occupied commercial real estate4 $— $375 $— $375 — $— 
Income producing commercial real estate2 — — 1,617 1,617 — — 
Commercial & industrial2 — 193 — 193 — — 
Commercial construction6 — 577 70 647 — — 
Equipment financing7 — 247 — 247 9 290 
Total commercial21 — 1,392 1,687 3,079 9 290 
Residential mortgage25 — 3,200 — 3,200 — — 
Home equity lines of credit4 — 164 — 164 — — 
Residential construction3 — 123 — 123 — — 
Consumer3 — 11 — 11 — — 
Total loans56 $— $4,890 $1,687 $6,577 9 $290 
Nine Months Ended September 30, 2020
Owner occupied commercial real estate7 $— $375 $1,536 $1,911 — $— 
Income producing commercial real estate5 — 67 1,782 1,849 1 5,998 
Commercial & industrial3 — 193 15 208 2 633 
Commercial construction7 — 832 70 902 — — 
Equipment financing143 — 4,152 — 4,152 15 600 
Total commercial165 — 5,619 3,403 9,022 18 7,231 
Residential mortgage36 — 4,122 — 4,122 — — 
Home equity lines of credit4 — 164 — 164 — — 
Residential construction3 — 123 — 123 — — 
Consumer6 — 11 18 29 1 3 
Total loans214 $— $10,039 $3,421 $13,460 19 $7,234 
Three Months Ended September 30, 2019       
Owner occupied commercial real estate— $— $— $— $— — $— 
Income producing commercial real estate— — — — — — — 
Commercial & industrial— — — — — — — 
Commercial construction— — — — — — — 
Equipment financing2 — 93 — 93 — — 
Total commercial2 — 93 — 93 — — 
Residential mortgage2 — 609 — 609 — — 
Home equity lines of credit— — — — — — — 
Residential construction— — — — — — — 
Consumer direct3 — — 21 21 — — 
Indirect auto4 — — 101 101 — — 
Total loans11 $— $702 $122 $824 — $— 
Nine Months Ended September 30, 2019
Owner occupied commercial real estate2 $— $610 $— $610 — $— 
Income producing commercial real estate1 — 169 — 169 — — 
Commercial & industrial1 — — 7 7 — — 
Commercial construction— — — — — — — 
Equipment financing3 — 113 — 113 — — 
Total commercial7 — 892 7 899 — — 
Residential mortgage11 — 1,784 — 1,784 1 135 
Home equity lines of credit1 — 50 — 50 — — 
Residential construction1 — — 21 21 1 13 
Consumer direct3 — — 21 21 — — 
Indirect auto15 — — 262 262 — — 
Total loans38 $— $2,726 $311 $3,037 2 $148 
Schedule of balance and activity in the ACL by portfolio segment
The following table presents the balance and activity in the ACL by portfolio segment for the periods indicated (in thousands).
Three Months Ended September 30,
CECLIncurred Loss
20202019
Beginning Balance
Initial ACL -PCD loans (1)
Charge-OffsRecoveries(Release) ProvisionEnding BalanceBeginning BalanceCharge-OffsRecoveries(Release) ProvisionEnding Balance
Owner occupied commercial real estate$14,592 $1,779 $— $725 $2,278 $19,374 $11,545 $— $39 $(165)$11,419 
Income producing commercial real estate21,699 1,208 (3,033)1,248 13,916 35,038 11,020 (472)41 473 11,062 
Commercial & industrial8,589 7,680 (303)408 5,150 21,524 5,308 (898)207 773 5,390 
Commercial construction14,514 74 (487)658 92 14,851 10,318 — 247 (158)10,407 
Equipment financing20,305 — (2,418)425 (3,136)15,176 6,935 (1,376)202 1,485 7,246 
Residential mortgage12,826 195 (13)48 4,506 17,562 8,290 (264)106 82 8,214 
Home equity lines of credit8,687 209 (44)169 (300)8,721 4,794 (287)204 (28)4,683 
Residential construction1,997 — (26)26 (229)1,768 2,365 (13)18 181 2,551 
Consumer460 7 (432)511 (304)242 855 (645)226 441 877 
Indirect auto— — — — — — 774 (125)67 (51)665 
Total allowance for loan losses103,669 11,152 (6,756)4,218 21,973 134,256 62,204 (4,080)1,357 3,033 62,514 
Allowance for unfunded commitments12,100 — — — (180)11,920 3,391 — — 67 3,458 
Total allowance for credit losses$115,769 $11,152 $(6,756)$4,218 $21,793 $146,176 $65,595 $(4,080)$1,357 $3,100 $65,972 

(1) Represents the initial ACL related to PCD loans acquired in the Three Shores transaction.
Nine Months Ended September 30,
CECLIncurred Loss
20202019
Dec. 31, 2019
Balance		Adoption of CECLJan. 1, 2020
Balance
Initial ACL - PCD loans (1)
Charge-OffsRecoveries(Release) ProvisionEnding BalanceBeginning
Balance		Charge-
Offs		Recoveries(Release)
Provision		Ending
Balance
Owner occupied commercial real estate$11,404 $(1,616)$9,788 $1,779 $(6)$2,225 $5,588 $19,374 $12,207 $(5)$166 $(949)$11,419 
Income producing commercial real estate12,306 (30)12,276 1,208 (8,033)1,430 28,157 35,038 11,073 (977)127 839 11,062 
Commercial & industrial5,266 4,012 9,278 7,680 (8,118)1,075 11,609 21,524 4,802 (3,833)645 3,776 5,390 
Commercial construction9,668 (2,583)7,085 74 (726)916 7,502 14,851 10,337 (70)804 (664)10,407 
Equipment financing7,384 5,871 13,255 — (6,366)1,201 7,086 15,176 5,452 (3,810)466 5,138 7,246 
Residential mortgage8,081 1,569 9,650 195 (347)379 7,685 17,562 8,295 (433)388 (36)8,214 
Home equity lines of credit4,575 1,919 6,494 209 (162)468 1,712 8,721 4,752 (653)466 118 4,683 
Residential construction2,504 (1,771)733 — (80)97 1,018 1,768 2,433 (263)91 290 2,551 
Consumer901 (491)410 7 (1,782)1,028 579 242 853 (1,721)672 1,073 877 
Indirect auto— — — — — — — — 999 (502)151 17 665 
Total allowance for credit losses - loans62,089 6,880 68,969 11,152 (25,620)8,819 70,936 134,256 61,203 (12,267)3,976 9,602 62,514 
Allowance for unfunded commitments3,458 1,871 5,329 — — — 6,591 11,920 3,410 — — 48 3,458 
Total allowance for credit losses$65,547 $8,751 $74,298 $11,152 $(25,620)$8,819 $77,527 $146,176 $64,613 $(12,267)$3,976 $9,650 $65,972 

(1) Represents the initial ACL related to PCD loans acquired in the Three Shores transaction.
The following tables represent the recorded investment in loans by portfolio segment and the balance of the allowance assigned to each segment based on the method of evaluating the loans for impairment as of December 31, 2019 (in thousands).
 Loans OutstandingAllowance for Credit Losses
 Individually
evaluated
for impairment		Collectively
evaluated for
impairment		PCIEnding
Balance		Individually
evaluated
for impairment		Collectively
evaluated for
impairment		PCIEnding
Balance
Owner occupied commercial real estate$19,233 $1,692,448 $8,546 $1,720,227 $816 $10,483 $105 $11,404 
Income producing commercial real estate18,134 1,962,588 27,228 2,007,950 770 11,507 29 12,306 
Commercial & industrial1,449 1,218,882 326 1,220,657 21 5,193 52 5,266 
Commercial construction3,675 965,678 6,862 976,215 55 9,613 — 9,668 
Equipment financing1,027 739,532 3,985 744,544 — 7,240 144 7,384 
Residential mortgage15,991 1,092,046 9,579 1,117,616 782 7,296 3 8,081 
Home equity lines of credit992 658,273 1,410 660,675 16 4,541 18 4,575 
Residential construction1,256 234,807 374 236,437 47 2,456 1 2,504 
Consumer214 127,682 336 128,232 5 885 11 901 
Total$61,971 $8,691,936 $58,646 $8,812,553 2,512 59,214 363 62,089 
Allowance for unfunded commitments— 3,458 — 3,458 
Total allowance for credit losses$2,512 $62,672 $363 $65,547 
Schedule of loans individually evaluated for impairment under Incurred Loss by class
The following table presents additional detail on loans individually evaluated for impairment under Incurred Loss by class as of December 31, 2019 (in thousands).
 December 31, 2019
 Unpaid Principal BalanceRecorded InvestmentAllowance for Loan Losses Allocated
With no related allowance recorded:   
Owner occupied commercial real estate$9,527 $8,118 $— 
Income producing commercial real estate5,159 4,956 — 
Commercial & industrial1,144 890 — 
Commercial construction2,458 2,140 — 
Equipment financing1,027 1,027 — 
Total commercial19,315 17,131 — 
Residential mortgage7,362 6,436 — 
Home equity lines of credit1,116 861 — 
Residential construction731 626 — 
Consumer66 53 — 
Total with no related allowance recorded28,590 25,107 — 
With an allowance recorded:
Owner occupied commercial real estate11,136 11,115 816 
Income producing commercial real estate13,591 13,178 770 
Commercial & industrial559 559 21 
Commercial construction1,535 1,535 55 
Equipment financing— — — 
Total commercial26,821 26,387 1,662 
Residential mortgage9,624 9,555 782 
Home equity lines of credit146 131 16 
Residential construction643 630 47 
Consumer161 161 5 
Total with an allowance recorded37,395 36,864 2,512 
Total$65,985 $61,971 $2,512 
Schedule of average balances of impaired loans and income recognized on impaired loans under Incurred Loss
The average balances of impaired loans and income recognized on impaired loans while they were considered impaired under Incurred Loss are presented below for the period indicated (in thousands). 
 Three Months Ended September 30, 2019Nine Months Ended September 30, 2019
Average BalanceInterest Revenue
Recognized During Impairment		Cash Basis Interest Revenue ReceivedAverage BalanceInterest Revenue
Recognized During Impairment		Cash Basis Interest Revenue Received
Owner occupied commercial real estate$18,759 $288 $290 $18,302 $846 $882 
Income producing commercial real estate10,906 144 153 12,941 523 529 
Commercial & industrial2,133 48 54 1,921 74 89 
Commercial construction3,316 38 39 3,029 113 114 
Equipment financing66 3 3 29 3 3 
Total commercial35,180 521 539 36,222 1,559 1,617 
Residential mortgage16,669 195 203 16,134 553 561 
Home equity lines of credit301 4 2 288 11 7 
Residential construction1,298 22 25 1,352 70 72 
Consumer204 4 4 197 11 11 
Indirect auto1,069 14 14 1,121 42 42 
Total$54,721 $760 $787 $55,314 $2,246 $2,310