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Loans, Leases and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

The following table presents TDR loans for the periods presented:


	September 30, 2020
	Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial
Tech & Innovation	3	$	12,111
Other commercial and industrial	16	30,270
CRE - owner occupied	3	2,335
CRE - non-owner occupied
Hotel Franchise Finance	2	5,746
Other CRE - non-owned occupied	3	10,295





Total	27	$	60,757

Schedule of Held for Investment Loan Portfolio Composition of Loans, Leases and Allowance for Credit Losses

The Company's primary portfolio segments have changed to align with the methodology applied in estimating the allowance for credit losses under CECL. In addition, as the concept of impaired loans does not exist under CECL, disclosures that related solely to impaired loans have been removed.

The composition of the Company's held for investment loan portfolio is as follows:


	September 30, 2020
	(in thousands)
Commercial and industrial
Tech & Innovation	$	2,277,889
Other commercial and industrial	5,993,712
CRE - owner occupied	1,970,163
CRE - non-owner occupied
Hotel Franchise Finance	1,942,886
Other CRE - non-owned occupied	3,433,932
Residential	2,330,064
Construction and land development	2,267,922
Warehouse lending	3,926,852
Municipal & nonprofit	1,686,690
Other	163,144
Total loans HFI	25,993,254
Allowance for credit losses	(310,560)
Total loans HFI, net of allowance	$	25,682,694


	December 31, 2019
	(in thousands)
Commercial and industrial	$	9,382,043
Commercial real estate - non-owner occupied	5,245,634
Commercial real estate - owner occupied	2,316,913
Construction and land development	1,952,156
Residential real estate	2,147,664
Consumer	57,083
Loans, net of deferred loan fees and costs	21,101,493
Allowance for credit losses	(167,797)
Total loans HFI	$	20,933,696

Contractual Aging of Loan Portfolio by Class of Loans Including Loans Held for Sale and Excluding Deferred Fees/Costs

The following table presents an aging analysis of past due loans by loan portfolio segment:


	September 30, 2020
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial
Tech & Innovation	$	2,277,889	$	—	$	—	$	—	$	—	$	2,277,889
Other commercial and industrial	5,969,739		4,617		2,490		16,866		23,973		5,993,712
CRE - owner occupied	1,970,163		—		—		—		—		1,970,163
CRE - non-owner occupied
Hotel Franchise Finance	1,931,623		—		—		11,263		11,263		1,942,886
Other CRE - non-owned occupied	3,433,932		—		—		—		—		3,433,932
Residential	2,319,530		10,325		209		—		10,534		2,330,064
Construction and land development	2,261,348		6,574		—		—		6,574		2,267,922
Warehouse lending	3,926,852		—		—		—		—		3,926,852
Municipal & nonprofit	1,686,690		—		—		—		—		1,686,690
Other	163,101		38		5		—		43		163,144
Total loans	$	25,940,867	$	21,554	$	2,704	$	28,129	$	52,387	$	25,993,254


	December 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	9,376,377	$	2,501	$	637	$	2,528	$	5,666	$	9,382,043
Commercial real estate
Owner occupied	2,316,165		624		—		124		748		2,316,913
Non-owner occupied	5,007,644		4,661		—		11,913		16,574		5,024,218
Multi-family	221,416		—		—		—		—		221,416
Construction and land development
Construction	1,176,908		—		—		—		—		1,176,908
Land	775,248		—		—		—		—		775,248
Residential real estate	2,134,346		7,627		1,721		3,970		13,318		2,147,664
Consumer	57,083		—		—		—		—		57,083
Total loans	$	21,065,187	$	15,413	$	2,358	$	18,535	$	36,306	$	21,101,493

Summary of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 Days Still Accruing Interest by Loan Class

Loans are placed on nonaccrual status when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due.

The following tables present nonperforming loan balances by loan portfolio segment:


	September 30, 2020
	Nonaccrual with No Allowance for Credit Loss		Nonaccrual with an Allowance for Credit Loss		Total Nonaccrual		Loans Past Due 90 Days or More and Still Accruing
	(in thousands)
Commercial and industrial
Tech & Innovation	$	18,725	$	—	$	18,725	$	—
Other commercial and industrial	26,997		4,614		31,611		16,866
CRE - owner occupied	38,567		—		38,567		—
CRE - non-owner occupied
Hotel Franchise Finance	—		—		—		11,263
Other CRE - non-owned occupied	18,404		10,667		29,071		—
Residential	5,388		—		5,388		—
Construction and land development	—		192		192		—
Warehouse lending	—		—		—		—
Municipal & nonprofit	—		1,952		1,952		—
Other	158		45		203		—
Total	$	108,239	$	17,470	$	125,709	$	28,129

In addition, the Company also has HFS loans totaling $20.8 million that are on nonaccrual status as of September 30, 2020.


	December 31, 2019
		Non-accrual loans					Loans past due 90 days or more and still accruing
			Current			Past Due/ Delinquent			Total Non-accrual
				(in thousands)
Commercial and industrial				$	19,080		$	5,421	$	24,501	$	—
Commercial real estate
Owner occupied				4,418			124		4,542		—
Non-owner occupied				7,265			11,913		19,178		—
Multi-family				—			—		—		—
Construction and land development
Construction				2,147			—		2,147		—
Land				—			—		—		—
Residential real estate				1,231			4,369		5,600		—
Consumer				—			—		—		—
Total				$	34,141		$	21,827	$	55,968	$	—

Loans by Risk Rating

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually to classify the loans as to credit risk. This analysis is performed on a quarterly basis. The risk rating categories are described in "Note 1. Summary of Significant Accounting Policies." The following tables present risk ratings as of September 30, 2020 by loan portfolio segment:


	Term Loan Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
September 30, 2020	2020		2019		2018		2017		2016		Prior
	(in thousands)








Tech & Innovation
Pass	$	524,508	$	315,900	$	132,566	$	1,459	$	1,898	$	—	$	1,236,377	$	2,212,708
Special mention	3,499		8,957		2,651		—		—		—		—		15,107
Substandard	32,412		2,006		—		—		—		—		15,656		50,074
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	560,419	$	326,863	$	135,217	$	1,459	$	1,898	$	—	$	1,252,033	$	2,277,889

Other commercial and industrial
Pass	$	2,067,599	$	920,820	$	469,602	$	289,894	$	113,199	$	123,061	$	1,735,701	$	5,719,876
Special mention	129		51,516		32,172		36,017		6,130		15,885		43,378		185,227
Substandard	18,169		8,420		3,465		31,349		9,876		1,001		16,102		88,382
Doubtful	—		—		—		177		—		—		—		177
Loss	—		50		—		—		—		—		—		50
Total	$	2,085,897	$	980,806	$	505,239	$	357,437	$	129,205	$	139,947	$	1,795,181	$	5,993,712

CRE - owner occupied
Pass	$	173,784	$	327,618	$	322,396	$	423,987	$	167,304	$	376,175	$	74,887	$	1,866,151
Special mention	877		11,412		4,411		17,306		3,309		10,658		—		47,973
Substandard	2,237		7,573		4,926		10,483		6,311		22,460		2,049		56,039
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	176,898	$	346,603	$	331,733	$	451,776	$	176,924	$	409,293	$	76,936	$	1,970,163









Hotel Franchise Finance
Pass	$	156,816	$	754,537	$	464,842	$	140,424	$	—	$	96,306	$	162,567	$	1,775,492
Special mention	—		32,643		55,798		27,389		—		23,914		—		139,744
Substandard	—		—		—		12,774		2,129		12,747		—		27,650
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	156,816	$	787,180	$	520,640	$	180,587	$	2,129	$	132,967	$	162,567	$	1,942,886

Other CRE - non-owned occupied
Pass	$	648,330	$	961,315	$	663,375	$	431,032	$	182,475	$	232,800	$	211,671	$	3,330,998
Special mention	—		13,217		7,031		5,458		4,257		7,288		—		37,251
Substandard	8,350		26,454		—		12,432		6,652		11,795		—		65,683
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	656,680	$	1,000,986	$	670,406	$	448,922	$	193,384	$	251,883	$	211,671	$	3,433,932


	Term Loan Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Total
September 30, 2020	2020		2019		2018		2017		2016		Prior
	(in thousands)
Residential
Pass	$	524,852	$	1,018,264	$	472,941	$	121,970	$	91,138	$	50,087	$	45,392	$	2,324,644
Special mention	—		—		—		—		—		—		—		—
Substandard	—		2,169		1,327		1,134		15		517		258		5,420
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	524,852	$	1,020,433	$	474,268	$	123,104	$	91,153	$	50,604	$	45,650	$	2,330,064

Construction and land development
Pass	$	492,218	$	777,114	$	422,749	$	21,028	$	1,403	$	14,953	$	496,079	$	2,225,544
Special mention	1,463		—		36,476		—		—		—		4,247		42,186
Substandard	—		—		192		—		—		—		—		192
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	493,681	$	777,114	$	459,417	$	21,028	$	1,403	$	14,953	$	500,326	$	2,267,922

Warehouse lending
Pass	$	155,588	$	48,455	$	990	$	1,640	$	78	$	—	$	3,720,101	$	3,926,852
Special mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	155,588	$	48,455	$	990	$	1,640	$	78	$	—	$	3,720,101	$	3,926,852

Municipal & nonprofit
Pass	$	137,047	$	170,963	$	76,133	$	232,816	$	129,957	$	927,762	$	3,535	$	1,678,213
Special mention	—		4,194		2,331		—		—		—		—		6,525
Substandard	—		—		—		1,952		—		—		—		1,952
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	137,047	$	175,157	$	78,464	$	234,768	$	129,957	$	927,762	$	3,535	$	1,686,690

Other
Pass	$	17,738	$	16,175	$	14,671	$	6,909	$	2,177	$	71,880	$	30,133	$	159,683
Special mention	961		—		97		1,691		—		42		35		2,826
Substandard	—		135		189		—		97		196		18		635
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	$	18,699	$	16,310	$	14,957	$	8,600	$	2,274	$	72,118	$	30,186	$	163,144

Total by Risk Category
Pass	$	4,898,480	$	5,311,161	$	3,040,265	$	1,671,159	$	689,629	$	1,893,024	$	7,716,443	$	25,220,161
Special mention	6,929		121,939		140,967		87,861		13,696		57,787		47,660		476,839
Substandard	61,168		46,757		10,099		70,124		25,080		48,716		34,083		296,027
Doubtful	—		—		—		177		—		—		—		177
Loss	—		50		—		—		—		—		—		50
Total	$	4,966,577	$	5,479,907	$	3,191,331	$	1,829,321	$	728,405	$	1,999,527	$	7,798,186	$	25,993,254


	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	9,265,823	$	65,893	$	49,878	$	449	$	—	$	9,382,043
Commercial real estate
Owner occupied	2,265,566		9,579		41,768		—		—		2,316,913
Non-owner occupied	4,913,007		64,161		47,050		—		—		5,024,218
Multi-family	221,416		—		—		—		—		221,416
Construction and land development
Construction	1,157,169		17,592		2,147		—		—		1,176,908
Land	773,868		1,380		—		—		—		775,248
Residential real estate	2,141,336		366		5,962		—		—		2,147,664
Consumer	57,073		10		—		—		—		57,083
Total	$	20,795,258	$	158,981	$	146,805	$	449	$	—	$	21,101,493


	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	20,785,118	$	158,907	$	120,897	$	265	$	—	$	21,065,187
Past due 30 - 59 days	8,263		58		7,092		—		—		15,413
Past due 60 - 89 days	1,481		16		861		—		—		2,358
Past due 90 days or more	396		—		17,955		184		—		18,535
Total	$	20,795,258	$	158,981	$	146,805	$	449	$	—	$	21,101,493

Allowances for Credit Losses

The below tables reflect the activity in the allowance for credit losses for loans held for investment by loan portfolio segment:


	Three Months Ended September 30, 2020
	Balance,		Provision for (Reversal of) Credit Losses		Writeoffs		Recoveries		Balance,
	June 30, 2020								September 30, 2020
	(1)								(1)
	(in thousands)
Commercial and industrial
Tech & Innovation	$	54,559	$	(9,359)	$	6,364	$	—	$	38,836
Other commercial and industrial	109,930		(621)		748		(192)		108,753
CRE - owner occupied	15,587		3,897		83		(5)		19,406
CRE - non-owner occupied
Hotel Franchise Finance	35,864		2,163		—		—		38,027
Other CRE - non-owned occupied	32,672		9,196		1,246		—		40,622
Residential	1,725		16		307		(355)		1,789
Construction and land development	35,792		2,983		—		(6)		38,781
Warehouse lending	743		95		—		—		838
Municipal & nonprofit	17,128		768		—		—		17,896
Other	6,550		(934)		25		(21)		5,612
Total	$	310,550	$	8,204	$	8,773	$	(579)	$	310,560

(1)Includes an estimate of future recoveries.


	Nine Months Ended September 30, 2020
	Balance,		Provision for (Reversal of) Credit Losses		Writeoffs		Recoveries		Balance,
	January 1, 2020								September 30, 2020
	(1)								(1)
	(in thousands)
Commercial and industrial
Tech & Innovation	$	22,394	$	25,556	$	9,114	$	—	$	38,836
Other commercial and industrial	95,784		13,653		2,684		(2,000)		108,753
CRE - owner occupied	10,420		9,100		126		(12)		19,406
CRE - non-owner occupied
Hotel Franchise Finance	14,104		23,923		—		—		38,027
Other CRE - non-owned occupied	10,503		30,684		2,131		(1,566)		40,622
Residential	3,814		(2,103)		307		(385)		1,789
Construction and land development	6,218		32,540		—		(23)		38,781
Warehouse lending	246		592		—		—		838
Municipal & nonprofit	17,397		499		—		—		17,896
Other	6,045		(314)		231		(112)		5,612
Total	$	186,925	$	134,130	$	14,593	$	(4,098)	$	310,560

(1)Includes an estimate of future recoveries.

Accrued interest receivable on loans totaled $120.1 million at September 30, 2020 and is excluded from the estimate of credit losses.


	Three Months Ended September 30, 2019
	June 30, 2019		Charge-offs		Recoveries		Provision for (Reversal of) Credit Losses		September 30, 2019
	(in thousands)
Construction and land development	$	26,091	$	—	$	(17)	$	1,210	$	27,318
Commercial real estate	41,258		139		(8)		4,817		45,944
Residential real estate	12,606		9		(131)		804		13,532
Commercial and industrial	79,635		1,950		(2,549)		(2,815)		77,419
Consumer	819		1		(6)		(16)		808
Total	$	160,409	$	2,099	$	(2,711)	$	4,000	$	165,021


	Nine Months Ended September 30, 2019
	December 31, 2018		Charge-offs		Recoveries		Provision for (Reversal of) Credit Losses		September 30, 2019
	(in thousands)
Construction and land development	$	22,513	$	141	$	(81)	$	4,865	$	27,318
Commercial real estate	34,829		139		(900)		10,354		45,944
Residential real estate	11,276		594		(251)		2,599		13,532
Commercial and industrial	83,118		6,092		(3,521)		(3,128)		77,419
Consumer	981		2		(19)		(190)		808
Total	$	152,717	$	6,968	$	(4,772)	$	14,500	$	165,021

The following tables disaggregate the Company's allowance for credit losses and loan balance by measurement methodology:


	September 30, 2020
	Loans						Allowance
	Collectively Evaluated for Credit Loss		Individually Evaluated for Credit Loss		Total		Collectively Evaluated for Credit Loss		Individually Evaluated for Credit Loss		Total
	(in thousands)
Commercial and industrial
Tech & Innovation	$	2,227,995	$	49,894	$	2,277,889	$	38,836	$	—	$	38,836
Other commercial and industrial	5,906,731		86,981		5,993,712		102,011		6,742		108,753
CRE - owner occupied	1,912,127		58,036		1,970,163		19,406		—		19,406
CRE - non-owner occupied
Hotel Franchise Finance	1,885,451		57,435		1,942,886		35,312		2,715		38,027
Other CRE - non-owned occupied	3,355,259		78,673		3,433,932		40,518		104		40,622
Residential	2,324,676		5,388		2,330,064		1,789		—		1,789
Construction and land development	2,267,922		—		2,267,922		38,781		—		38,781
Warehouse lending	3,926,852		—		3,926,852		838		—		838
Municipal & nonprofit	1,684,738		1,952		1,686,690		17,454		442		17,896
Other	162,518		626		163,144		5,569		43		5,612
Total	$	25,654,269	$	338,985	$	25,993,254	$	300,514	$	10,046	$	310,560


	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2019:
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	11,913	$	6,919	$	—	$	2,147	$	—	$	20,979
Impaired loans with no allowance recorded	17,736		23,625		42,065		5,600		6,274		24		95,324
Total loans individually evaluated for impairment	17,736		35,538		48,984		5,600		8,421		24		116,303
Loans collectively evaluated for impairment	2,296,342		5,159,921		9,333,059		2,142,045		1,943,735		57,059		20,932,161
Loans acquired with deteriorated credit quality	2,835		50,175		—		19		—		—		53,029
Total recorded investment	$	2,316,913	$	5,245,634	$	9,382,043	$	2,147,664	$	1,952,156	$	57,083	$	21,101,493
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	11,949	$	9,844	$	—	$	2,262	$	—	24,055
Impaired loans with no allowance recorded	18,681		24,738		43,848		5,708		6,413		52		99,440
Total loans individually evaluated for impairment	18,681		36,687		53,692		5,708		8,675		52		123,495
Loans collectively evaluated for impairment	2,297,168		5,177,477		9,312,100		2,113,893		1,963,116		57,383		20,921,137
Loans acquired with deteriorated credit quality	3,577		60,191		—		72		—		—		63,840
Total unpaid principal balance	$	2,319,426	$	5,274,355	$	9,365,792	$	2,119,673	$	1,971,791	$	57,435	$	21,108,472
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	1,219	$	1,050	$	—	$	507	$	—	$	2,776
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		1,219		1,050		—		507		—		2,776
Loans collectively evaluated for impairment	13,842		32,114		81,252		13,714		23,387		614		164,923
Loans acquired with deteriorated credit quality	—		98		—		—		—		—		98
Total allowance for credit losses	$	13,842	$	33,431	$	82,302	$	13,714	$	23,894	$	614	$	167,797