Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Summary of Loan Classes and Aging of Past Due Loans

This table provides a summary of loan classes and an aging of past due loans at June 30, 2020 and December 31, 2019 (in thousands):

	June 30, 2020
	30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Non- Accrual Loans		Total Past Due		Current		Total Loans
Loans
Commercial and industrial	$	12,505	$	680	$	39,982	$	53,167	$	6,947,002	$	7,000,169
Specialty lending		—		—		538		538		413,168		413,706
Commercial real estate		5,490		2,360		35,531		43,381		5,525,306		5,568,687
Consumer real estate		1,316		—		5,148		6,464		1,624,096		1,630,560
Consumer		870		78		208		1,156		154,625		155,781
Credit cards		1,266		1,470		815		3,551		336,936		340,487
Leases and other		—		—		23		23		195,684		195,707
Total loans	$	21,447	$	4,588	$	82,245	$	108,280	$	15,196,817	$	15,305,097

	December 31, 2019
	30-89 Days Past Due and Accruing		Greater than 90 Days Past Due and Accruing		Non- Accrual Loans		Total Past Due		Current		Total Loans
Loans
Commercial:
Commercial	$	10,491	$	250	$	25,592	$	36,333	$	5,805,669	$	5,842,002
Asset-based		—		—		—		—		292,231		292,231
Factoring		—		—		—		—		170,560		170,560
Commercial – credit card		760		52		24		836		181,402		182,238
Real estate:
Real estate – construction		3,933		—		95		4,028		838,318		842,346
Real estate – commercial		3,365		36		24,030		27,431		4,301,293		4,328,724
Real estate – residential		485		—		2,748		3,233		930,043		933,276
Real estate – HELOC		544		—		2,798		3,342		474,809		478,151
Consumer:
Consumer – credit card		1,835		1,681		803		4,319		222,423		226,742
Consumer – other		81		50		257		388		133,086		133,474
Leases		—		—		—		—		1,978		1,978
Total loans	$	21,494	$	2,069	$	56,347	$	79,910	$	13,351,812	$	13,431,722

Summary of Amortized Cost of Nonaccrual Loans with No Related Allowance

The following table provides the amortized cost of nonaccrual loans with no related allowance for credit losses by loan class at June 30, 2020 (in thousands):

	June 30, 2020
	Non- Accrual Loans		Amortized Cost of Non-Accrual Loans with no related Allowance
Loans
Commercial and industrial	$	39,982	$	19,683
Specialty lending		538		538
Commercial real estate		35,531		29,812
Consumer real estate		5,148		5,148
Consumer		208		208
Credit cards		815		815
Leases and other		23		23
Total loans	$	82,245	$	56,227

Summary of Amortized Cost Balance of Each of Loan Classes Disaggregated by Collateral Type and Origination Year

The following table provides a summary of the amortized cost balance of each of the Company’s loan classes disaggregated by collateral type and origination year as of June 30, 2020 (in thousands):

	June 30, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans
Loan Segment and Type	Amortized Cost Basis by Origination Year - Term Loans
	2020		2019		2018		2017		2016		Prior						Total
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	2,747,391	$	888,198	$	604,472	$	239,238	$	209,719	$	133,629	$	1,958,136	$	5,668	$	6,786,451
Agriculture		4,139		10,436		2,675		6,078		3,076		1,021		141,231		—		168,656
Overdrafts		—		—		—		—		—		—		45,062		—		45,062
Total Commercial and industrial		2,751,530		898,634		607,147		245,316		212,795		134,650		2,144,429		5,668		7,000,169
Specialty lending:
Asset-based lending		10,549		58,741		—		—		—		—		227,790		—		297,080
Factoring		—		—		—		—		—		—		116,626		—		116,626
Total Specialty lending		10,549		58,741		—		—		—		—		344,416		—		413,706
Commercial real estate:
Owner-occupied		316,187		371,127		272,386		209,485		147,403		244,285		21,619		26,545		1,609,037
Non-owner-occupied		348,982		509,523		274,344		239,342		271,723		198,205		37,887		204,242		2,084,248
Farmland		197,996		58,802		44,180		46,725		58,669		56,551		44,248		—		507,171
5+ Multi-family		108,935		61,089		47,415		42,479		110,554		11,162		1,582		—		383,216
1-4 Family construction		—		—		—		—		—		—		39,126		—		39,126
General construction		11,539		3,805		5,824		520		527		2,885		918,393		2,396		945,889
Total Commercial real estate		983,639		1,004,346		644,149		538,551		588,876		513,088		1,062,855		233,183		5,568,687
Consumer real estate:
HELOC		38,600		16,301		9,158		446		84		2,791		362,728		—		430,108
First lien: 1-4 family		418,194		342,737		101,371		115,564		96,794		102,244		353		1,037		1,178,294
Junior lien: 1-4 family		5,259		8,291		3,183		2,034		1,150		1,950		291		—		22,158
Total Consumer real estate		462,053		367,329		113,712		118,044		98,028		106,985		363,372		1,037		1,630,560
Consumer:
Revolving line		—		—		—		—		—		—		94,333		—		94,333
Auto		7,377		12,530		4,308		2,456		1,212		729		—		—		28,612
Other		2,556		4,107		2,860		549		1,173		306		21,285		—		32,836
Total Consumer		9,933		16,637		7,168		3,005		2,385		1,035		115,618		—		155,781
Credit cards:
Consumer		—		—		—		—		—		—		194,434		—		194,434
Commercial		—		—		—		—		—		—		146,053		—		146,053
Total Credit cards		—		—		—		—		—		—		340,487		—		340,487
Leases and other:
Leases		—		557		—		833		—		752		—		—		2,142
Other		9,854		11,964		8,572		3,092		1,530		5,791		152,762		—		193,565
Total Leases and other		9,854		12,521		8,572		3,925		1,530		6,543		152,762		—		195,707
Total loans	$	4,227,558	$	2,358,208	$	1,380,748	$	908,841	$	903,614	$	762,301	$	4,523,939	$	239,888	$	15,305,097

Summary of Amortized Cost Balance by Collateral Type and Risk Rating

The following table provides a summary of the amortized cost balance by collateral type and risk rating as of June 30, 2020 (in thousands):

	June 30, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans
Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
	2020		2019		2018		2017		2016		Prior						Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	2,620,382	$	869,081	$	584,919	$	220,917	$	183,502	$	129,250	$	1,758,732	$	5,668	$	6,372,451
Watch – Pass		41,238		6,332		6,268		5,700		23,522		2,412		62,846		—		148,318
Special Mention		21,713		8,949		3,434		4,179		758		780		43,558		—		83,371
Substandard		64,058		3,747		9,851		2,796		1,937		1,149		92,722		—		176,260
Doubtful		—		89		—		5,646		—		38		278		—		6,051
Total Equipment/Accounts Receivable/Inventory	$	2,747,391	$	888,198	$	604,472	$	239,238	$	209,719	$	133,629	$	1,958,136	$	5,668	$	6,786,451
Agriculture
Non-watch list – Pass	$	3,948	$	8,102	$	2,258	$	2,783	$	2,255	$	979	$	89,194	$	—	$	109,519
Watch – Pass		170		580		399		113		751		17		24,319		—		26,349
Special Mention		21		435		—		190		—		—		2,855		—		3,501
Substandard		—		1,319		18		2,992		70		25		24,863		—		29,287
Doubtful		—		—		—		—		—		—		—		—		—
Total Agriculture	$	4,139	$	10,436	$	2,675	$	6,078	$	3,076	$	1,021	$	141,231	$	—	$	168,656

The following table provides a summary of the amortized cost balance by risk rating for asset-based loans as of June 30, 2020 (in thousands):

	June 30, 2020
Risk	Asset-based lending
In-margin	$	284,115
Out-of-margin		12,965
Total	$	297,080

The following table provides a summary of the amortized cost balance by risk rating for factoring loans as of June 30, 2020 (in thousands):

	June 30, 2020
Risk	Factoring
Tier 1	$	2,851
Tier 2		68,157
Evaluated for impairment		45,618
Total	$	116,626

	June 30, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans
Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
	2020		2019		2018		2017		2016		Prior						Total
Owner-occupied
Non-watch list – Pass	$	303,899	$	364,413	$	258,991	$	177,588	$	143,569	$	228,164	$	13,424	$	26,545	$	1,516,593
Watch – Pass		107		6,324		4,922		—		—		8,723		—		—		20,076
Special Mention		2,519		—		4,870		—		1,650		1,917		43		—		10,999
Substandard		9,662		390		3,603		31,897		1,560		5,481		8,152		—		60,745
Doubtful		—		—		—		—		624		—		—		—		624
Total Owner-occupied	$	316,187	$	371,127	$	272,386	$	209,485	$	147,403	$	244,285	$	21,619	$	26,545	$	1,609,037
Non-owner-occupied
Non-watch list – Pass	$	347,954	$	509,222	$	274,344	$	231,879	$	269,758	$	186,626	$	37,887	$	204,242	$	2,061,912
Watch – Pass		—		301		—		7,463		1,965		10,193		—		—		19,922
Special Mention		850		—		—		—		—		1,330		—		—		2,180
Substandard		178		—		—		—		—		56		—		—		234
Doubtful		—		—		—		—		—		—		—		—		—
Total Non-owner-occupied	$	348,982	$	509,523	$	274,344	$	239,342	$	271,723	$	198,205	$	37,887	$	204,242	$	2,084,248
Farmland
Non-watch list – Pass	$	164,615	$	37,579	$	22,949	$	32,439	$	42,892	$	22,318	$	22,223	$	—	$	345,015
Watch – Pass		19,455		9,325		15,251		6,018		9,160		18,282		18,028		—		95,519
Special Mention		—		—		—		1,257		1,149		508		695		—		3,609
Substandard		13,926		11,898		5,980		7,011		5,468		15,443		3,302		—		63,028
Doubtful		—		—		—		—		—		—		—		—		—
Total Farmland	$	197,996	$	58,802	$	44,180	$	46,725	$	58,669	$	56,551	$	44,248	$	—	$	507,171
5+ Multi-family
Non-watch list – Pass	$	102,688	$	58,634	$	47,415	$	41,137	$	110,554	$	11,162	$	1,582	$	—	$	373,172
Watch – Pass		—		—		—		1,342		—		—		—		—		1,342
Special Mention		—		2,455		—		—		—		—		—		—		2,455
Substandard		6,247		—		—		—		—		—		—		—		6,247
Doubtful		—		—		—		—		—		—		—		—		—
Total 5+ Multi-family	$	108,935	$	61,089	$	47,415	$	42,479	$	110,554	$	11,162	$	1,582	$	—	$	383,216
1-4 Family construction
Non-watch list – Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	39,126	$	—	$	39,126
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family construction	$	—	$	—	$	—	$	—	$	—	$	—	$	39,126	$	—	$	39,126
General construction
Non-watch list – Pass	$	11,236	$	3,713	$	5,664	$	520	$	527	$	2,885	$	915,011	$	2,396	$	941,952
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		303		—		—		—		—		—		—		—		303
Substandard		—		—		160		—		—		—		3,382		—		3,542
Doubtful		—		92		—		—		—		—		—		—		92
Total General construction	$	11,539	$	3,805	$	5,824	$	520	$	527	$	2,885	$	918,393	$	2,396	$	945,889

The following table provides a summary of the amortized cost balance by collateral type and risk rating as of June 30, 2020 (in thousands):

	June 30, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans
Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
	2020		2019		2018		2017		2016		Prior						Total
HELOC
Performing	$	38,600	$	16,282	$	9,131	$	446	$	84	$	2,742	$	359,396	$	—	$	426,681
Non-performing		—		19		27		—		—		49		3,332		—		3,427
Total HELOC	$	38,600	$	16,301	$	9,158	$	446	$	84	$	2,791	$	362,728	$	—	$	430,108
First lien: 1-4 family
Performing	$	418,194	$	342,605	$	101,371	$	115,267	$	96,208	$	101,665	$	353	$	1,037	$	1,176,700
Non-performing		—		132		—		297		586		579		—		—		1,594
Total First lien: 1-4 family	$	418,194	$	342,737	$	101,371	$	115,564	$	96,794	$	102,244	$	353	$	1,037	$	1,178,294
Junior lien: 1-4 family
Performing	$	5,259	$	8,291	$	3,135	$	2,011	$	1,108	$	1,935	$	291	$	—	$	22,030
Non-performing		—		—		48		23		42		15		—		—		128
Total Junior lien: 1-4 family	$	5,259	$	8,291	$	3,183	$	2,034	$	1,150	$	1,950	$	291	$	—	$	22,158

The following table provides a summary of the amortized cost balance by collateral type and risk rating as of June 30, 2020 (in thousands):

	June 30, 2020
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans
Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
	2020		2019		2018		2017		2016		Prior						Total
Revolving line
Performing	$	—	$	—	$	—	$	—	$	—	$	—	$	94,210	$	—	$	94,210
Non-performing		—		—		—		—		—		—		123		—		123
Total Revolving line	$	—	$	—	$	—	$	—	$	—	$	—	$	94,333	$	—	$	94,333
Auto
Performing	$	7,377	$	12,470	$	4,304	$	2,456	$	1,212	$	729	$	—	$	—	$	28,548
Non-performing		—		60		4		—		—		—		—		—		64
Total Auto	$	7,377	$	12,530	$	4,308	$	2,456	$	1,212	$	729	$	—	$	—	$	28,612
Other
Performing	$	2,539	$	4,107	$	2,860	$	545	$	1,173	$	306	$	21,285	$	—	$	32,815
Non-performing		17		—		—		4		—		—		—		—		21
Total Other	$	2,556	$	4,107	$	2,860	$	549	$	1,173	$	306	$	21,285	$	—	$	32,836

The following table provides a summary of the amortized cost balance of consumer credit cards by risk rating as of June 30, 2020 (in thousands):

	June 30, 2020
Risk	Consumer
Transactor accounts	$	51,350
Revolver accounts (by FICO score):
Less than 600		8,673
600-619		3,359
620-639		5,628
640-659		9,868
660-679		17,452
680-699		19,268
700-719		18,669
720-739		17,759
740-759		14,248
760-779		9,732
780-799		6,742
800-819		5,299
820-839		3,933
840+		2,454
Total	$	194,434

The following table provides a summary of the amortized cost balance of commercial credit cards by risk rating as of June 30, 2020 (in thousands):

	June 30, 2020
Risk	Commercial
Current	$	140,108
Past Due		5,945
Total	$	146,053

	June 30, 2020
Risk	Leases		Other
Non-watch list – Pass	$	2,142	$	192,719
Watch – Pass		—		600
Special Mention		—		—
Substandard		—		246
Doubtful		—		—
Total	$	2,142	$	193,565

Credit Risk Profile by Risk Rating and Based on Payment Activity

This table provides an analysis of the credit risk profile of each loan class at December 31, 2019 (in thousands):

Credit Exposure

Credit Risk Profile by Risk Rating

	December 31, 2019
	Commercial		Asset-based		Factoring		Real estate – construction		Real estate – commercial
Non-watch list – Pass	$	5,380,205	$	230,526	$	127,310	$	837,836	$	4,078,673
Watch – Pass		257,040		—		—		175		110,530
Special Mention		91,020		34,640		1,376		307		28,020
Substandard		113,737		27,065		41,874		4,028		111,501
Total	$	5,842,002	$	292,231	$	170,560	$	842,346	$	4,328,724

Credit Exposure

Credit Risk Profile Based on Payment Activity

	December 31, 2019
	Commercial – credit card		Real estate – residential		Real estate – HELOC		Consumer – credit card		Consumer – other		Leases
Performing	$	182,214	$	926,312	$	468,228	$	225,939	$	132,414	$	1,978
Non-performing		24		6,964		9,923		803		1,060		—
Total	$	182,238	$	933,276	$	478,151	$	226,742	$	133,474	$	1,978

Rollforward of Allowance for Credit/Loan Losses by Portfolio Segment

This table provides a rollforward of the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2020 (in thousands):

	Three Months Ended June 30, 2020
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	122,532		$	3,549		$	35,395		$	4,177		$	1,127		$	18,823		$	2,308		$	187,911		$	3,235		$	191,146
Charge-offs		(1,121	)		—			(2,858	)		(206	)		(158	)		(2,004	)		(11	)		(6,358	)		—			(6,358	)
Recoveries		241			—			55			34			118			369			—			817			—			817
Provision		(7,042	)		(2,620	)		23,242			1,947			519			2,397			(513	)		17,930			70			18,000
Ending balance - ACL	$	114,610		$	929		$	55,834		$	5,952		$	1,606		$	19,585		$	1,784		$	200,300		$	3,305		$	203,605
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	2,263		$	53		$	257		$	102		$	22		$	—		$	211		$	2,908		$	70		$	2,978
Provision		3,154			28			146			212			11			—			(38	)		3,513			(13	)		3,500
Ending balance - ACL on off-balance sheet	$	5,417		$	81		$	403		$	314		$	33		$	—		$	173		$	6,421		$	57		$	6,478

	Six Months Ended June 30, 2020
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	63,313		$	2,545		$	15,951		$	2,623		$	543		$	15,739		$	1,074		$	101,788		$	—		$	101,788
ASU 2016-13 adjustment		3,677			148			926			152			31			914			62			5,910			3,120			9,030
Charge-offs		(2,436	)		—			(8,920	)		(219	)		(406	)		(4,130	)		(11	)		(16,122	)		—			(16,122	)
Recoveries		1,717			—			76			48			215			853			—			2,909			—			2,909
Provision		48,339			(1,764	)		47,801			3,348			1,223			6,209			659			105,815			185			106,000
Ending balance - ACL	$	114,610		$	929		$	55,834		$	5,952		$	1,606		$	19,585		$	1,784		$	200,300		$	3,305		$	203,605
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	2,263		$	53		$	257		$	102		$	22		$	—		$	211		$	2,908		$	70		$	2,978
Provision		3,154			28			146			212			11			—			(38	)		3,513			(13	)		3,500
Ending balance - ACL on off-balance sheet	$	5,417		$	81		$	403		$	314		$	33		$	—		$	173		$	6,421		$	57		$	6,478

This table provides a rollforward of the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2019 (in thousands):

	Three Months Ended June 30, 2019
	Commercial			Real estate			Consumer			Leases			Total
Allowance for loan losses:
Beginning balance	$	80,332		$	14,390		$	8,928		$	11		$	103,661
Charge-offs		(12,170	)		(151	)		(2,122	)		—			(14,443	)
Recoveries		380			865			629			—			1,874
Provision		7,466			2,153			1,382			(1	)		11,000
Ending balance	$	76,008		$	17,257		$	8,817		$	10		$	102,092

	Six Months Ended June 30, 2019
	Commercial			Real estate			Consumer			Leases			Total
Allowance for loan losses:
Beginning balance	$	80,888		$	13,664		$	9,071		$	12		$	103,635
Charge-offs		(23,333	)		(265	)		(4,589	)		—			(28,187	)
Recoveries		1,006			938			1,350			—			3,294
Provision		17,447			2,920			2,985			(2	)		23,350
Ending balance	$	76,008		$	17,257		$	8,817		$	10		$	102,092
Ending balance: individually evaluated for impairment	$	2,672		$	79		$	—		$	—		$	2,751
Ending balance: collectively evaluated for impairment		73,336			17,178			8,817			10			99,341
Loans:
Ending balance: loans	$	6,356,633		$	6,183,167		$	355,736		$	4,733		$	12,900,269
Ending balance: individually evaluated for impairment		28,143			20,675			—			—			48,818
Ending balance: collectively evaluated for impairment		6,328,490			6,162,492			355,736			4,733			12,851,451

Summary of Amortized Cost Balance of Financial Assets Considered Collateral Dependent

This table provides the amortized cost balance of financial assets considered collateral dependent as of June 30, 2020 (in thousands):

	June 30, 2020
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	33,471	$	6,971	$	13,172
Agriculture		6,511		—		6,511
Total Commercial and industrial		39,982		6,971		19,683
Specialty lending:
Asset-based lending		466		—		466
Factoring		72		—		72
Total Specialty lending		538		—		538
Commercial real estate:
Owner-occupied		23,059		11		20,722
Non-owner-occupied		—		—		—
Farmland		9,203		—		9,203
5+ Multi-family		—		—		—
1-4 Family construction		—		—		—
General construction		3,474		582		92
Total Commercial real estate		35,736		593		30,017
Consumer real estate:
HELOC		3,426		—		3,426
First lien: 1-4 family		2,015		—		2,015
Junior lien: 1-4 family		214		—		214
Total Consumer real estate		5,655		—		5,655
Consumer:
Revolving line		123		—		123
Auto		64		—		64
Other		21		—		21
Total Consumer		208		—		208
Leases and other:
Leases		—		—		—
Other		23		—		23
Total Leases and other		23		—		23
Total loans	$	82,142	$	7,564	$	56,124

Analysis of Impaired Loans

The following disclosure is presented under previously applicable GAAP.

This table provides an analysis of impaired loans by class at December 31, 2019 (in thousands):

	December 31, 2019
	Unpaid Principal Balance		Recorded Investment with No Allowance		Recorded Investment with Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial:
Commercial	$	32,301	$	20,986	$	856	$	21,842	$	271	$	31,271
Asset-based		948		948		—		948		—		190
Factoring		2,979		2,979		—		2,979		—		3,917
Commercial – credit card		—		—		—		—		—		—
Real estate:
Real estate – construction		97		95		—		95		—		19
Real estate – commercial		28,258		19,314		4,928		24,242		387		19,826
Real estate – residential		1,751		1,617		93		1,710		80		846
Real estate – HELOC		—		—		—		—		—		—
Consumer:
Consumer – credit card		—		—		—		—		—		—
Consumer – other		—		—		—		—		—		70
Leases		—		—		—		—		—		—
Total	$	66,334	$	45,939	$	5,877	$	51,816	$	738	$	56,139