Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Aging of the Company's Loan Portfolio

The tables below show the aging of the Company’s loan portfolio at March 31, 2019, December 31, 2018 and March 31, 2018:



As of March 31, 2019			90+ days and still accruing		60-89 days past due		30-59 days past due
(Dollars in thousands)	Nonaccrual								Current		Total Loans
Loan Balances:
Commercial
Commercial, industrial and other	$	38,858	$	—	$	1,787	$	38,094	$	5,172,214	$	5,250,953
Franchise	15,799		—		—		534		863,573		879,906
Mortgage warehouse lines of credit	—		—		—		—		174,284		174,284
Asset-based lending	1,135		—		—		7,821		1,031,878		1,040,834
Leases	—		—		—		2,796		620,088		622,884
PCI - commercial ⁽¹⁾	—		2,499		—		455		22,376		25,330
Total commercial	55,792		2,499		1,787		49,700		7,884,413		7,994,191
Commercial real estate:
Construction	1,030		—		496		3,877		798,266		803,669
Land	54		—		—		3,888		143,759		147,701
Office	4,482		—		—		3,364		918,529		926,375
Industrial	267		—		1,039		10,643		953,011		964,960
Retail	7,645		—		—		8,149		879,473		895,267
Multi-family	303		—		187		675		1,116,220		1,117,385
Mixed use and other	2,152		—		1,084		17,243		1,987,008		2,007,487
PCI - commercial real estate ⁽¹⁾	—		4,265		2,806		7,033		96,557		110,661
Total commercial real estate	15,933		4,265		5,612		54,872		6,892,823		6,973,505
Home equity	7,885		—		810		4,315		515,438		528,448
Residential real estate, including PCI	15,879		1,481		509		11,112		1,024,543		1,053,524
Premium finance receivables
Commercial insurance loans	14,797		6,558		5,628		20,767		2,941,038		2,988,788
Life insurance loans	—		168		4,788		35,046		4,349,597		4,389,599
PCI - life insurance loans ⁽¹⁾	—		—		—		—		165,770		165,770
Consumer and other, including PCI	326		280		47		350		119,801		120,804
Total loans, net of unearned income	$	110,612	$	15,251	$	19,181	$	176,162	$	23,893,423	$	24,214,629



As of December 31, 2018			90+ days and still accruing		60-89 days past due		30-59 days past due
(Dollars in thousands)	Nonaccrual								Current		Total Loans
Loan Balances:
Commercial
Commercial, industrial and other	$	34,298	$	—	$	1,451	$	21,618	$	5,062,729	$	5,120,096
Franchise	16,051		—		—		8,738		924,190		948,979
Mortgage warehouse lines of credit	—		—		—		—		144,199		144,199
Asset-based lending	635		—		200		3,156		1,022,065		1,026,056
Leases	—		—		—		1,250		564,430		565,680
PCI - commercial ⁽¹⁾	—		3,313		—		99		20,116		23,528
Total commercial	50,984		3,313		1,651		34,861		7,737,729		7,828,538
Commercial real estate
Construction	1,554		—		—		9,424		749,846		760,824
Land	107		—		170		107		141,097		141,481
Office	3,629		—		877		5,077		929,739		939,322
Industrial	285		—		—		16,596		885,367		902,248
Retail	10,753		—		1,890		1,729		878,106		892,478
Multi-family	311		—		77		5,575		970,597		976,560
Mixed use and other	2,490		—		1,617		8,983		2,192,105		2,205,195
PCI - commercial real estate ⁽¹⁾	—		6,241		6,195		4,075		98,633		115,144
Total commercial real estate	19,129		6,241		10,826		51,566		6,845,490		6,933,252
Home equity	7,147		—		131		3,105		541,960		552,343
Residential real estate, including PCI	16,383		1,292		1,692		6,171		976,926		1,002,464
Premium finance receivables
Commercial insurance loans	11,335		7,799		11,382		15,085		2,796,058		2,841,659
Life insurance loans	—		—		8,407		24,628		4,340,856		4,373,891
PCI - life insurance loans ⁽¹⁾	—		—		—		—		167,903		167,903
Consumer and other, including PCI	348		227		87		733		119,246		120,641
Total loans, net of unearned income	$	105,326	$	18,872	$	34,176	$	136,149	$	23,526,168	$	23,820,691


(1)	PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.



As of March 31, 2018			90+ days and still accruing		60-89 days past due		30-59 days past due
(Dollars in thousands)	Nonaccrual								Current		Total Loans
Loan Balances:
Commercial
Commercial, industrial and other	$	10,051	$	—	$	594	$	31,475	$	4,518,760	$	4,560,880
Franchise	2,401		—		44		1,203		931,710		935,358
Mortgage warehouse lines of credit	—		—		—		5,771		157,699		163,470
Asset-based lending	1,194		—		47		12,611		963,883		977,735
Leases	361		—		—		3,170		410,667		414,198
PCI - commercial ⁽¹⁾	—		856		86		3		8,285		9,230
Total commercial	14,007		856		771		54,233		6,991,004		7,060,871
Commercial real estate:
Construction	3,139		—		—		9,576		802,921		815,636
Land	182		—		—		4,527		117,981		122,690
Office	474		—		925		11,466		878,206		891,071
Industrial	1,427		—		823		5,027		898,867		906,144
Retail	12,274		—		—		4,785		878,563		895,622
Multi-family	19		—		—		328		931,008		931,355
Mixed use and other	4,310		—		192		13,626		1,937,328		1,955,456
PCI - commercial real estate ⁽¹⁾	—		3,107		1,623		9,134		101,682		115,546
Total commercial real estate	21,825		3,107		3,563		58,469		6,546,556		6,633,520
Home equity	9,828		—		1,505		4,033		611,181		626,547
Residential real estate, including PCI	17,214		1,437		229		8,808		841,416		869,104
Premium finance receivables
Commercial insurance loans	17,342		8,547		6,543		17,756		2,525,962		2,576,150
Life insurance loans	—		—		5,125		11,420		3,986,181		4,002,726
PCI - life insurance loans ⁽¹⁾	—		—		—		—		187,235		187,235
Consumer and other, including PCI	720		269		216		291		104,485		105,981
Total loans, net of unearned income	$	80,936	$	14,216	$	17,952	$	155,010	$	21,794,020	$	22,062,134


(1)	PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments.

Summary of Performance by Loan Class

The following table presents the recorded investment based on performance of loans by class, per the most recent analysis at March 31, 2019, December 31, 2018 and March 31, 2018:



	Performing						Non-performing						Total
(Dollars in thousands)	March 31, 2019		December 31, 2018		March 31, 2018		March 31, 2019		December 31, 2018		March 31, 2018		March 31, 2019		December 31, 2018		March 31, 2018
Loan Balances:
Commercial
Commercial, industrial and other	$	5,212,095	$	5,085,798	$	4,550,829	$	38,858	$	34,298	$	10,051	$	5,250,953	$	5,120,096	$	4,560,880
Franchise	864,107		932,928		932,957		15,799		16,051		2,401		879,906		948,979		935,358
Mortgage warehouse lines of credit	174,284		144,199		163,470		—		—		—		174,284		144,199		163,470
Asset-based lending	1,039,699		1,025,421		976,541		1,135		635		1,194		1,040,834		1,026,056		977,735
Leases	622,884		565,680		413,837		—		—		361		622,884		565,680		414,198
PCI - commercial ⁽¹⁾	25,330		23,528		9,230		—		—		—		25,330		23,528		9,230
Total commercial	7,938,399		7,777,554		7,046,864		55,792		50,984		14,007		7,994,191		7,828,538		7,060,871
Commercial real estate
Construction	802,639		759,270		812,497		1,030		1,554		3,139		803,669		760,824		815,636
Land	147,647		141,374		122,508		54		107		182		147,701		141,481		122,690
Office	921,893		935,693		890,597		4,482		3,629		474		926,375		939,322		891,071
Industrial	964,693		901,963		904,717		267		285		1,427		964,960		902,248		906,144
Retail	887,622		881,725		883,348		7,645		10,753		12,274		895,267		892,478		895,622
Multi-family	1,117,082		976,249		931,336		303		311		19		1,117,385		976,560		931,355
Mixed use and other	2,005,335		2,202,705		1,951,146		2,152		2,490		4,310		2,007,487		2,205,195		1,955,456
PCI - commercial real estate⁽¹⁾	110,661		115,144		115,546		—		—		—		110,661		115,144		115,546
Total commercial real estate	6,957,572		6,914,123		6,611,695		15,933		19,129		21,825		6,973,505		6,933,252		6,633,520
Home equity	520,563		545,196		616,719		7,885		7,147		9,828		528,448		552,343		626,547
Residential real estate, including PCI	1,037,615		986,081		851,890		15,909		16,383		17,214		1,053,524		1,002,464		869,104
Premium finance receivables
Commercial insurance loans	2,967,433		2,822,525		2,550,261		21,355		19,134		25,889		2,988,788		2,841,659		2,576,150
Life insurance loans	4,389,431		4,373,891		4,002,726		168		—		—		4,389,599		4,373,891		4,002,726
PCI - life insurance loans ⁽¹⁾	165,770		167,903		187,235		—		—		—		165,770		167,903		187,235
Consumer and other, including PCI	120,260		120,184		105,054		544		457		927		120,804		120,641		105,981
Total loans, net of unearned income	$	24,097,043	$	23,707,457	$	21,972,444	$	117,586	$	113,234	$	89,690	$	24,214,629	$	23,820,691	$	22,062,134


(1)	PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. See Note 6 - Loans for further discussion of these purchased loans.

Summary of Activity in the Allowance for Credit Losses

A summary of activity in the allowance for credit losses by loan portfolio for the three months ended March 31, 2019 and 2018 is as follows:



Three months ended March 31, 2019				Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(Dollars in thousands)	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
Allowance for credit losses
Allowance for loan losses at beginning of period	$	67,826		$	60,267		$	8,507		$	7,194		$	7,715		$	1,261		$	152,770
Other adjustments	—			(24		)	(7		)	(7		)	11			—			(27		)
Reclassification from allowance for unfunded lending-related commitments	—			(16		)	—			—			—			—			(16		)
Charge-offs	(503		)	(3,734		)	(88		)	(3		)	(2,210		)	(102		)	(6,640		)
Recoveries	318			480			62			29			556			56			1,501
Provision for credit losses	6,997			877			153			417			2,147			33			10,624
Allowance for loan losses at period end	$	74,638		$	57,850		$	8,627		$	7,630		$	8,219		$	1,248		$	158,212
Allowance for unfunded lending-related commitments at period end	$	—		$	1,410		$	—		$	—		$	—		$	—		$	1,410
Allowance for credit losses at period end	$	74,638		$	59,260		$	8,627		$	7,630		$	8,219		$	1,248		$	159,622
Individually evaluated for impairment	$	11,858		$	517		$	796		$	302		$	—		$	133		$	13,606
Collectively evaluated for impairment	62,317			58,623			7,831			7,267			8,219			1,115			145,372
Loans acquired with deteriorated credit quality	463			120			—			61			—			—			644
Loans at period end
Individually evaluated for impairment	$	75,442		$	30,300		$	15,779		$	22,464		$	—		$	376		$	144,361
Collectively evaluated for impairment	7,893,419			6,832,544			512,669			921,204			7,378,387			117,753			23,655,976
Loans acquired with deteriorated credit quality	25,330			110,661			—			8,785			165,770			2,675			313,221
Loans held at fair value	—			—			—			101,071			—			—			101,071



Three months ended March 31, 2018	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
(Dollars in thousands)	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivables			Consumer and Other			Total Loans
Allowance for credit losses
Allowance for loan losses at beginning of period	$	57,811		$	55,227		$	10,493		$	6,688		$	6,846		$	840		$	137,905
Other adjustments	(1		)	(24		)	—			(3		)	(12		)	—			(40		)
Reclassification from allowance for unfunded lending-related commitments	—			26			—			—			—			—			26
Charge-offs	(2,687		)	(813		)	(357		)	(571		)	(4,721		)	(129		)	(9,278		)
Recoveries	262			1,687			123			40			385			47			2,544
Provision for credit losses	2,251			1,378			(399		)	124			4,835			157			8,346
Allowance for loan losses at period end	$	57,636		$	57,481		$	9,860		$	6,278		$	7,333		$	915		$	139,503
Allowance for unfunded lending-related commitments at period end	$	—		$	1,243		$	—		$	—		$	—		$	—		$	1,243
Allowance for credit losses at period end	$	57,636		$	58,724		$	9,860		$	6,278		$	7,333		$	915		$	140,746
Individually evaluated for impairment	$	2,344		$	3,611		$	749		$	148		$	—		$	25		$	6,877
Collectively evaluated for impairment	54,789			55,042			9,111			6,029			7,333			890			133,194
Loans acquired with deteriorated credit quality	503			71			—			101			—			—			675
Loans at period end
Individually evaluated for impairment	$	33,810		$	38,237		$	10,102		$	20,558		$	—		$	748		$	103,455
Collectively evaluated for impairment	7,017,831			6,479,737			616,445			768,859			6,578,876			103,224			21,564,972
Loans acquired with deteriorated credit quality	9,230			115,546			—			11,725			187,235			2,009			325,745
Loans held at fair value	—			—			—			67,962			—			—			67,962

Summary of Impaired Loans, Including Restructured Loans

A summary of impaired loans, including troubled debt restructurings ("TDRs"), is as follows:



	March 31,		December 31,		March 31,
(Dollars in thousands)	2019		2018		2018
Impaired loans (included in non-performing and TDRs):
Impaired loans with an allowance for loan loss required ⁽¹⁾	$	72,539	$	60,219	$	37,572
Impaired loans with no allowance for loan loss required	71,579		67,050		65,559
Total impaired loans ⁽²⁾	$	144,118	$	127,269	$	103,131
Allowance for loan losses related to impaired loans	$	13,599	$	11,437	$	6,863
TDRs	$	88,362	$	66,102	$	47,676


(1)	These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans.


(2)	Impaired loans are considered by the Company to be non-accrual loans, TDRs or loans with principal and/or interest at risk, even if the loan is current with all payments of principal and interest.

Summary of Impaired Loans by Loan Class

The following tables present impaired loans by loan class for the periods ended as follows:



							For the Three Months Ended
	As of March 31, 2019						March 31, 2019
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	33,360	$	33,623	$	6,919	$	33,641	$	656
Franchise	15,776		16,256		4,702		15,855		243
Asset-based lending	331		331		237		335		7
Leases	1,691		1,691		—		1,701		21
Commercial real estate
Construction	—		—		—		—		—
Land	45		45		9		45		1
Office	3,055		3,120		149		3,070		35
Industrial	—		—		—		—		—
Retail	5,114		5,114		41		5,116		51
Multi-family	1,185		1,185		30		1,185		12
Mixed use and other	1,082		1,118		281		1,085		13
Home equity	6,316		6,694		796		6,335		60
Residential real estate	4,390		4,664		302		4,403		42
Consumer and other	194		241		133		195		3
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	17,411	$	20,125	$	—	$	17,481	$	316
Franchise	5,145		5,147		—		5,147		101
Asset-based lending	934		1,332		—		1,120		24
Leases	794		831		—		810		13
Commercial real estate
Construction	2,146		2,671		—		2,496		33
Land	3,285		3,380		—		3,301		47
Office	1,991		2,006		—		1,993		29
Industrial	295		432		—		304		7
Retail	8,059		11,405		—		10,198		150
Multi-family	303		403		—		306		3
Mixed use and other	3,496		3,812		—		3,528		58
Home equity	9,463		12,658		—		9,560		155
Residential real estate	18,075		20,823		—		18,098		225
Consumer and other	182		276		—		184		3
Total impaired loans, net of unearned income	$	144,118	$	159,383	$	13,599	$	147,492	$	2,308



							For the Twelve Months Ended
	As of December 31, 2018						December 31, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	16,703	$	17,029	$	4,866	$	17,868	$	1,181
Franchise	16,021		16,256		1,375		16,221		909
Asset-based lending	557		557		317		689		50
Leases	1,730		1,730		—		1,812		91
Commercial real estate
Construction	1,554		1,554		550		1,554		76
Land	—		—		—		—		—
Office	573		638		21		587		25
Industrial	—		—		—		—		—
Retail	14,633		14,633		3,413		14,694		676
Multi-family	—		—		—		—		—
Mixed use and other	1,188		1,221		293		1,354		66
Home equity	3,133		3,470		282		3,165		131
Residential real estate	4,011		4,263		204		4,056		159
Consumer and other	116		129		116		119		7
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	18,314	$	21,501	$	—	$	20,547	$	1,143
Franchise	5,152		5,154		—		5,320		403
Asset-based lending	207		601		—		569		51
Leases	845		879		—		936		56
Commercial real estate
Construction	1,117		1,117		—		1,218		52
Land	3,396		3,491		—		3,751		198
Office	3,629		3,642		—		3,651		184
Industrial	322		450		—		363		30
Retail	1,592		1,945		—		1,699		110
Multi-family	1,498		1,595		—		1,529		55
Mixed use and other	3,522		3,836		—		3,611		227
Home equity	9,122		12,383		—		9,323		564
Residential real estate	18,053		20,765		—		18,552		883
Consumer and other	281		407		—		293		20
Total impaired loans, net of unearned income	$	127,269	$	139,246	$	11,437	$	133,481	$	7,347



							For the Three Months Ended
	As of March 31, 2018						March 31, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	5,521	$	5,587	$	1,738	$	5,607	$	83
Franchise	—		—		—		—		—
Asset-based lending	1,107		1,107		475		1,166		20
Leases	2,213		2,221		131		2,247		27
Commercial real estate
Construction	3,097		3,897		599		3,097		50
Land	1,500		1,500		3		1,567		17
Office	1,479		2,078		73		1,483		24
Industrial	63		172		1		63		2
Retail	15,347		15,415		2,512		15,315		166
Multi-family	1,234		1,277		21		1,254		12
Mixed use and other	2,036		2,281		388		2,054		30
Home equity	1,697		1,889		749		1,699		19
Residential real estate	2,253		2,956		148		2,258		33
Consumer and other	25		27		25		25		—
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	5,480	$	6,777	$	—	$	5,650	$	109
Franchise	18,657		18,661		—		18,675		239
Asset-based lending	86		231		—		182		3
Leases	746		746		—		754		11
Commercial real estate
Construction	1,363		1,364		—		1,364		15
Land	2,329		2,434		—		2,339		31
Office	59		754		—		61		11
Industrial	1,427		1,485		—		1,430		20
Retail	2,695		2,992		—		2,710		58
Multi-family	—		84		—		—		1
Mixed use and other	5,284		5,981		—		5,340		80
Home equity	8,405		12,535		—		8,255		151
Residential real estate	18,305		20,983		—		18,630		222
Consumer and other	723		870		—		726		12
Total impaired loans, net of unearned income	$	103,131	$	116,304	$	6,863	$	103,951	$	1,446

Summary of the Post-Modification Balance of TDRs

The tables below present a summary of the post-modification balance of loans restructured during the three months ended March 31, 2019 and 2018, respectively, which represent TDRs:



Three months ended March 31, 2019 (Dollars in thousands)	Total ⁽¹⁾⁽²⁾			Extension at Below Market Terms ⁽²⁾			Reduction of Interest Rate ⁽²⁾			Modification to Interest-only Payments ⁽²⁾			Forgiveness of Debt⁽²⁾
Three months ended March 31, 2019 (Dollars in thousands)	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	8	$	18,854	1	$	432	—	$	—	7	$	18,422	—	$	—
Asset-based lending	1	76		1	76		—	—		—	—		—	—
Commercial real estate
Mixed use and other	1	302		—	—		—	—		1	302		—	—
Residential real estate and other	20	4,486		20	4,486		6	1,547		—	—		—	—
Total loans	30	$	23,718	22	$	4,994	6	$	1,547	8	$	18,724	—	$	—


(1)	TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.


(2)	Balances represent the recorded investment in the loan at the time of the restructuring.



Three months ended March 31, 2018 (Dollars in thousands)	Total ⁽¹⁾⁽²⁾			Extension at Below Market Terms ⁽²⁾			Reduction of Interest Rate ⁽²⁾			Modification to Interest-only Payments ⁽²⁾			Forgiveness of Debt⁽²⁾
Three months ended March 31, 2018 (Dollars in thousands)	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	1	$	96	1	$	96	—	$	—	—	$	—	—	$	—
Commercial real estate
Office	1	59		1	59		—	—		—	—		—	—
Mixed use and other	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	5	835		5	835		2	111		—	—		—	—
Total loans	7	$	990	7	$	990	2	$	111	—	$	—	—	$	—


(1)	TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.


(2)	Balances represent the recorded investment in the loan at the time of the restructuring.

Schedule of Loans Restructured with Payments in Default

The following table presents a summary of all loans restructured in TDRs during the twelve months ended March 31, 2019 and 2018, and such loans which were in payment default under the restructured terms during the respective periods below:



(Dollars in thousands)	As of March 31, 2019			Three Months Ended March 31, 2019			As of March 31, 2018			Three Months Ended March 31, 2018
	Total ⁽¹⁾⁽³⁾			Payments in Default⁽²⁾⁽³⁾			Total ⁽¹⁾⁽³⁾			Payments in Default⁽²⁾⁽³⁾
	Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	11	$	32,199	1	$	77	5	$	3,776	5	$	3,776
Franchise	3	5,157		—	—		—	—		—	—
Asset-based lending	2	206		2	206		—	—		—	—
Leases	1	239		—	—		3	16,256		—	—
Commercial real estate
Office	—	—		—	—		1	59		—	—
Mixed use and other	3	757		3	757		—	—		—	—
Residential real estate and other	74	13,411		9	1,759		15	3,711		5	2,551
Total loans	94	$	51,969	15	$	2,799	24	$	23,802	10	$	6,327


(1)	Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date indicated.


(2)	TDRs considered to be in payment default are over 30 days past-due subsequent to the restructuring.


(3)	Balances represent the recorded investment in the loan at the time of the restructuring.