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Loans Held for Sale, Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Loans Held for Sale by Portfolio Segment

The following table presents a summary of the loans held for sale by portfolio segment at the lower of amortized cost or fair value as of March 31, 2020 and December 31, 2019.

(In thousands)	March 31, 2020		December 31, 2019
Commercial and industrial	$	33,023	$	34,767
Commercial real estate		2,913		49,894
Consumer		2,285		2,988
Total loans held for sale⁽¹⁾	$	38,221	$	87,649

(1) $0.1 million and $0.4 million of net accrued interest receivable is excluded from the loan balances above as of March 31, 2020 and December 31, 2019, respectively.

Summary of Total Loans Outstanding by Portfolio Segment and Class of Financing Receivable

The following table presents total loans outstanding by portfolio segment and class of financing receivable as of March 31, 2020 and December 31, 2019. Outstanding balances include originated loans, Acquired Noncredit Impaired (“ANCI”) loans, and Purchase Credit Deteriorated (“PCD”) loans, formerly referred to as acquired credit impaired (“ACI”) loans. See Note 1 for additional information regarding the adoption of the new CECL accounting standard ⁽²⁾.

(In thousands)	March 31, 2020		December 31, 2019
Commercial and industrial
General C&I	$	4,694,114	$	4,517,016
Energy		1,480,497		1,419,957
Restaurant		1,082,602		1,027,421
Healthcare		492,097		474,264
Total commercial and industrial		7,749,310		7,438,658
Commercial real estate
Industrial, retail, and other		1,754,881		1,691,694
Multifamily		692,168		659,902
Office		533,711		535,676
Total commercial real estate		2,980,760		2,887,272
Consumer
Residential		2,576,073		2,568,295
Other		86,048		89,430
Total consumer		2,662,121		2,657,725
Total⁽¹⁾	$	13,392,191	$	12,983,655

⁽¹⁾ $45.3 million and $44.5 million of net accrued interest receivable is excluded from the total loan balances above as of March 31, 2020 and December 31, 2019, respectively.

⁽²⁾ Amounts are not comparable to prior period public filings due to our adoption of CECL on January 1, 2020.

Summary of Allowance for Credit Losses

The following tables provide a summary of the activity in the ACL and the Reserve for Unfunded Commitments for the three months ended March 31, 2020 and 2019.

	For the Three Months Ended March 31, 2020
(In thousands)	Commercial and Industrial			Commercial Real Estate			Consumer			Total Allowance for Credit Losses			Reserve for Unfunded Commitments⁽¹⁾		Total
As of December 31, 2019	$	89,796		$	15,319		$	14,528		$	119,643		$	1,699	$	121,342
Cumulative effect of adoption of CECL		32,951			20,599			22,300			75,850			332		76,182
As of January 1, 2020		122,747			35,918			36,828			195,493			2,031		197,524
Provision for credit losses		63,684			17,798			756			82,238			1,191		83,429
Charge-offs		(31,987	)		(478	)		(633	)		(33,098	)		—		(33,098	)
Recoveries		141			180			292			613			—		613
As of March 31, 2020	$	154,585		$	53,418		$	37,243		$	245,246		$	3,222	$	248,468

Allocation of ending ACL
Loans collectively evaluated	$	135,486		$	53,418		$	37,243		$	226,147
Loans individually evaluated		19,099			—			—			19,099
ACL as of March 31, 2020	$	154,585		$	53,418		$	37,243		$	245,246

Loans (amortized cost)
Loans collectively evaluated	$	7,609,527		$	2,975,416		$	2,659,630		$	13,244,573
Loans individually evaluated		139,783			5,344			2,491			147,618
Loans as of March 31, 2020⁽²⁾	$	7,749,310		$	2,980,760		$	2,662,121		$	13,392,191

(1) The reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets at March 31, 2020 and December 31, 2019.
(2) $45.3 million of net accrued interest receivable is excluded from the loan balances above as of March 31, 2020.

	For the Three Months Ended March 31, 2019
(In thousands)	Commercial and Industrial			Commercial Real Estate			Consumer			Small Business			Total Allowance for Credit Losses
As of December 31, 2018	$	66,316		$	10,452		$	13,703		$	3,907		$	94,378
Provision for credit losses		9,299			102			1,206			603			11,210
Charge-offs		(461	)		(85	)		(234	)		(158	)		(938	)
Recoveries		372			—			15			1			388
As of March 31, 2019⁽¹⁾	$	75,526		$	10,469		$	14,690		$	4,353		$	105,038

Allocation of ending ACL
Loans collectively evaluated for impairment	$	61,020		$	10,462		$	14,625		$	4,294		$	90,401
Loans individually evaluated for impairment		14,506			7			65			59			14,637
ACL as of March 31, 2019⁽¹⁾	$	75,526		$	10,469		$	14,690		$	4,353		$	105,038

Loans
Loans collectively evaluated for impairment	$	7,389,053		$	2,823,249		$	2,637,416		$	758,586		$	13,608,304
Loans individually evaluated for impairment		92,635			6,946			2,102			256			101,939
Loans as of March 31, 2019⁽¹⁾	$	7,481,688		$	2,830,195		$	2,639,518		$	758,842		$	13,710,243

⁽¹⁾ Allowance for credit losses and loan balances as calculated and reported under the incurred loss accounting model and reported at March 31, 2019.

Summary of Credit Quality Indicator and by Origination Year

The following table provides information by each credit quality indicator and by origination year (vintage) as of March 31, 2020. The Company defines origination year (vintage) for the purposes of disclosure as the year of execution of the original loan agreement. Loans that are modified as a TDR are considered to be a continuation of the original loan, therefore the origination date of the original loan is reflected as the vintage date. This presentation is consistent with the vintage determination used in the ACL model. The criticized loans with a 2020 vintage relate to credits in resolution. There were no line-of-credit arrangements converted to term loans during the period.

	Amortized Cost Basis by Origination Year
(In thousands)	2020		2019		2018		2017		2016		2015 and Prior		Revolving Loans		Total
Commercial and industrial
Pass	$	174,633	$	796,988	$	1,155,772	$	713,223	$	397,273	$	738,601	$	3,179,764	$	7,156,254
Special mention		261		7,690		69,934		34,365		39,415		16,712		86,730		255,107
Substandard		583		5,949		76,623		26,435		35,471		58,585		114,862		318,508
Doubtful		—		1,784		3,460		765		—		7,126		6,306		19,441
Total commercial and industrial		175,477		812,411		1,305,789		774,788		472,159		821,024		3,387,662		7,749,310
Commercial real estate
Pass		109,070		406,225		737,092		692,826		274,966		562,834		141,895		2,924,908
Special mention		1,495		346		25,125		945		293		3,221		279		31,704
Substandard		—		210		170		607		7,455		15,694		12		24,148
Doubtful		—		—		—		—		—		—		—		—
Total commercial real estate		110,565		406,781		762,387		694,378		282,714		581,749		142,186		2,980,760
Consumer
Current		79,008		471,638		646,405		356,462		320,817		504,905		252,225		2,631,460
30-59 days past due		—		1,506		4,076		340		1,795		7,443		2,358		17,518
60-89 days past due		—		309		1,134		76		1,075		1,494		221		4,309
90+ days past due		—		147		2,159		8		1,540		4,980		—		8,834
Total consumer		79,008		473,600		653,774		356,886		325,227		518,822		254,804		2,662,121
Total⁽¹⁾	$	365,050	$	1,692,792	$	2,721,950	$	1,826,052	$	1,080,100	$	1,921,595	$	3,784,652	$	13,392,191

(1) $45.3 million of net accrued interest receivable is excluded from the loan balances above as of March 31, 2020.

Past Due Financing Receivables

The following tables provide an aging analysis of past due loans by portfolio segment and class of financing receivable.

	Age Analysis of Past-Due Loans as of March 31, 2020												90+ Days
(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total		Current		Total⁽¹⁾		Past Due and Accruing
Commercial and industrial
General C&I	$	4,903	$	794	$	28,945	$	34,642	$	4,659,472	$	4,694,114	$	13
Energy		—		—		—		—		1,480,497		1,480,497		—
Restaurant		871		8,413		6,634		15,918		1,066,684		1,082,602		24
Healthcare		1,201		52		2,504		3,757		488,340		492,097		—
Total commercial and industrial		6,975		9,259		38,083		54,317		7,694,993		7,749,310		37
Commercial real estate
Industrial, retail, and other		2,486		1,272		1,772		5,530		1,749,350		1,754,880		2
Multifamily		—		—		—		—		692,169		692,169		—
Office		327		—		1,136		1,463		532,248		533,711		—
Total commercial real estate		2,813		1,272		2,908		6,993		2,973,767		2,980,760		2
Consumer
Residential		17,325		4,283		8,826		30,434		2,545,640		2,576,074		1,960
Other		193		26		8		227		85,820		86,047		—
Total consumer		17,518		4,309		8,834		30,661		2,631,460		2,662,121		1,960
Total	$	27,306	$	14,840	$	49,825	$	91,971	$	13,300,220	$	13,392,191	$	1,999

⁽¹⁾ $45.3 million of net accrued interest receivable is excluded from the loan balances above as of March 31, 2020.

	Age Analysis of Past-Due Loans as of December 31, 2019												90+ Days
(In thousands)	30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total		Current		Total⁽¹⁾		Past Due and Accruing
Commercial and industrial
General C&I	$	23,143	$	1,117	$	15,183	$	39,443	$	4,477,573	$	4,517,016	$	85
Energy		—		—		8,166		8,166		1,411,791		1,419,957		—
Restaurant		1,219		1,284		8,021		10,524		1,016,897		1,027,421		108
Healthcare		497		41		4,143		4,681		469,583		474,264		—
Total commercial and industrial		24,859		2,442		35,513		62,814		7,375,844		7,438,658		193
Commercial real estate
Industrial, retail, and other		3,354		133		2,255		5,742		1,685,952		1,691,694		—
Multifamily		—		—		—		—		659,902		659,902		—
Office		253		—		1,219		1,472		534,204		535,676		—
Total commercial real estate		3,607		133		3,474		7,214		2,880,058		2,887,272		—
Consumer
Residential		8,967		6,101		7,292		22,360		2,545,935		2,568,295		887
Other		192		37		54		283		89,147		89,430		40
Total consumer		9,159		6,138		7,346		22,643		2,635,082		2,657,725		927
Total	$	37,625	$	8,713	$	46,333	$	92,671	$	12,890,984	$	12,983,655	$	1,120

⁽¹⁾ $44.5 million of net accrued interest receivable is excluded from the loan balances above as of December 31, 2019.

Summary of Nonaccruing Loans by Portfolio Segment and Class of Financing Receivable

The following table provides information about nonaccruing loans by portfolio segment and class of financing receivable as of and for the three months ended March 31, 2020.

	Nonaccrual Loans - Amortized Cost						90+ Days
(In thousands)	Beginning of the Period⁽¹⁾		End of the Period		No Allowance Recorded		Past Due and Accruing		Interest Income Recognized
Commercial and industrial
General C&I	$	66,589	$	62,517	$	11,580	$	13	$	—
Energy		9,568		19,171		1,137		—		8
Restaurant		53,483		52,603		19,220		24		29
Healthcare		4,833		3,011		1,952		—		—
Total commercial and industrial		134,473		137,302		33,889		37		37
Commercial real estate
Industrial, retail, and other		5,935		6,385		4,301		2		43
Multifamily		—		—		—		—		—
Office		1,245		1,159		1,044		—		—
Total commercial real estate		7,180		7,544		5,345		2		43
Consumer
Residential		15,101		14,799		2,491		1,960		30
Other		24		8		—		—		2
Total consumer		15,125		14,807		2,491		1,960		32
Total⁽²⁾	$	156,778	$	159,653	$	41,725	$	1,999	$	112

(1) Amounts are not comparable to prior period public filings due to our adoption of CECL on January 1, 2020. Prior to this date, pools of individual ACI loans were excluded because they continued to earn interest income from the accretable yield at the pool level. With the adoption of CECL, the pools were discontinued, and performance is based on contractual terms for individual loans. Additionally, prior to January 1, 2020, nonaccrual balances were presented using recorded investment. Upon adoption of CECL, approximately $43.0 million of ACI loans were reclassed to nonaccrual loans.
(2) $45.3 million and $44.5 million of net accrued interest receivable is excluded from the total nonaccrual loan balances above as of March 31, 2020 and December 31, 2019, respectively.

Summary of Information Regarding Loans and Types of Loan Modified into TDRs

The following table provides information regarding loans that were modified into TDRs during the periods indicated.

	For the Three Months Ended March 31,
	2020				2019
(Dollars in thousands)	Number of TDRs		Amortized Cost⁽¹⁾		Number of TDRs		Amortized Cost
Commercial and industrial		7	$	65,691		1	$	24,369
Total		7	$	65,691		1	$	24,369

(1) Less than $0.1 million of net accrued interest receivable is excluded from the loan balances above as of March 31, 2020.

The following table provides information regarding the types of loan modifications that were modified into TDRs during the periods indicated.

	For the Three Months Ended March 31,
	2020				2019
	Number of Loans Modified by:
	Rate Concession		Modified Terms and/or Other Concessions		Rate Concession		Modified Terms and/or Other Concessions
Commercial and industrial		1		6		—		1
Total		1		6		—		1