Allowance for Credit Losses and Credit Quality

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Allowance for Credit Losses and Credit Quality

Allowance for Credit Losses and Credit Quality

Effective January 1, 2020, the Corporation adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and related ASUs on a modified retrospective basis.

Allowance for Credit Losses The rollforwards of the allowance for credit losses ("ACL") were as follows:

(In thousands)	Consumer Loan Portfolio		Commercial Loan and Lease Portfolio		Total Allowance for Loan and Lease Losses		Reserve for Unfunded Lending Commitments(1)		Total Allowance for Credit Losses
Three months ended March 31, 2021
Balance, beginning of period	$	136,894	$	388,974	$	525,868	$	23,313	$	549,181
Charge-offs	(8,340)		(47,278)		(55,618)		—		(55,618)
Recoveries	7,879		4,477		12,356		—		12,356
Net (charge-offs) recoveries	(461)		(42,801)		(43,262)		—		(43,262)
Provision for credit losses	9,276		12,684		21,960		(1,404)		20,556
Other(2)	(2,230)		2,309		79		—		79
Balance, end of period	$	143,479	$	361,166	$	504,645	$	21,909	$	526,554
Three months ended March 31, 2020
Balance, beginning of period	$	28,572	$	84,480	$	113,052	$	3,528	$	116,580
Impact of CECL adoption	107,337		98,655		205,992		14,707		220,699
Adjusted balance, beginning of period	135,909		183,135		319,044		18,235		337,279
Charge-offs	(5,848)		(8,881)		(14,729)		—		(14,729)
Recoveries	4,708		4,544		9,252		—		9,252
Net (charge-offs) recoveries	(1,140)		(4,337)		(5,477)		—		(5,477)
Provision for credit losses	40,288		52,702		92,990		3,953		96,943
Other(2)	—		(174)		(174)		—		(174)
Balance, end of period	$	175,057	$	231,326	$	406,383	$	22,188	$	428,571

(1)Reserve for unfunded lending commitments ("RULC") is recognized within other liabilities.

(2)Primarily includes the allowance for purchased financial assets with credit deterioration ("PCD") and the transfer of the allowance to loans and leases held-for-sale.

Management considers our ACL of $526.6 million, or 1.45% of total loans and leases, appropriate to cover current credit losses expected to be incurred in the loan and lease portfolios over the remaining expected life of each financial asset at March 31, 2021, including loans and leases which are not currently known to require specific allowances. The ACL was $549.2 million, or 1.59% of total loans and leases, at December 31, 2020. The decrease in the ACL as a percentage of total loans and leases from December 31, 2020 was primarily due to continued improvement in both current and forecasted macro-economic conditions and benefit from nonaccrual loan sale recoveries. The provision for credit losses related to loans and leases for the three months ended March 31, 2021 was primarily due to loan and lease growth, which included the purchase of commercial loans and leases as a part of the CEC business combination. PPP loans totaling $1.9 billion at March 31, 2021, are individually guaranteed by the Small Business Administration and therefore the accounting under CECL does not require reserves to be recorded on such loans.

PCD Loan Activity

For PCD loans and leases, the initial estimate of expected credit losses is recognized in the allowance for loan and lease losses ("ALLL") on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans and leases purchased as part of the CEC business combination with credit deterioration at acquisition:

(In thousands)
Three months ended March 31, 2021
Par value	$	70,263
ALLL at acquisition	(2,383)
Non-credit premium (discount)	(1,020)
Purchase price	$	66,860

Accruing and Nonaccrual Loans and Leases The Corporation's key credit quality indicator is the receivable's payment performance status, defined as accruing or not accruing. Nonaccrual loans and leases are those which management believes have a higher risk of loss. Delinquent balances are determined based on the contractual terms of the loan or lease. Loans and leases that are over 90 days delinquent are a leading indicator for future charge-off trends and are generally placed on nonaccrual status. In addition, loans and leases that have requested payment deferral under the Coronavirus Aid, Relief and Economic Security ("CARES") Act of greater than 180 days are generally placed on nonaccrual status. The Corporation's accruing and nonaccrual loans and leases were as follows:

(In thousands)	Current		30-89 Days Delinquent and Accruing		90 Days or More Delinquent and Accruing		Total  Accruing		Nonaccrual		Total
At March 31, 2021
Commercial loan and lease portfolio:
Commercial and industrial	$	12,588,529	$	25,413	$	2,772	$	12,616,714	$	239,987	$	12,856,701
Commercial real estate	9,662,431		30,490		—		9,692,921		188,420		9,881,341
Lease financing	2,824,770		33,164		4,734		2,862,668		93,958		2,956,626
Total commercial loan and lease portfolio	25,075,730		89,067		7,506		25,172,303		522,365		25,694,668
Consumer loan portfolio:
Residential mortgage	6,421,403		11,171		1,874		6,434,448		76,533		6,510,981
Home equity	2,781,347		9,798		56		2,791,201		72,941		2,864,142
Consumer installment	1,142,579		2,587		—		1,145,166		6,062		1,151,228
Total consumer loan portfolio	10,345,329		23,556		1,930		10,370,815		155,536		10,526,351
Total	$	35,421,059	$	112,623	$	9,436	$	35,543,118	$	677,901	$	36,221,019
At December 31, 2020
Commercial loan and lease portfolio:
Commercial and industrial	$	11,119,453	$	42,033	$	1,458	$	11,162,944	$	259,439	$	11,422,383
Commercial real estate	9,453,743		94,383		22		9,548,148		154,439		9,702,587
Lease financing	2,695,356		27,118		3,935		2,726,409		90,822		2,817,231
Total commercial loan and lease portfolio	23,268,552		163,534		5,415		23,437,501		504,700		23,942,201
Consumer loan portfolio:
Residential mortgage	6,065,379		17,048		1,965		6,084,392		97,653		6,182,045
Home equity	3,008,450		30,840		63		3,039,353		69,383		3,108,736
Consumer installment	1,224,059		3,801		—		1,227,860		5,566		1,233,426
Total consumer loan portfolio	10,297,888		51,689		2,028		10,351,605		172,602		10,524,207
Total	$	33,566,440	$	215,223	$	7,443	$	33,789,106	$	677,302	$	34,466,408

Further details of the Corporation's nonaccrual loans and leases were as follows:

	At March 31, 2021				At December 31, 2020
(In thousands)	Total nonaccrual		Nonaccrual with no ACL		Total nonaccrual		Nonaccrual with no ACL
Commercial loan and lease portfolio:
Commercial and industrial	$	239,987	$	45,371	$	259,439	$	55,773
Commercial real estate	188,420		150,882		154,439		79,203
Lease financing	93,958		—		90,822		—
Total commercial loan and lease portfolio	522,365		196,253		504,700		134,976
Consumer loan portfolio:
Residential mortgage	76,533		—		97,653		49
Home equity	72,941		358		69,383		23
Consumer installment	6,062		3,505		5,566		3,531
Total consumer loan portfolio	155,536		3,863		172,602		3,603
Total	$	677,901	$	200,116	$	677,302	$	138,579

Loans and leases that are 90 days or more delinquent and accruing by year of origination were as follows:

			Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Revolving Loans and Leases Converted to Term Loans and Leases
At March 31, 2021	2021		2020		2019		2018		2017		2016 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial	$	—	$	420	$	163	$	—	$	4	$	262	$	1,923	$	—	$	2,772
Commercial real estate	—		—		—		—		—		—		—		—		—
Lease financing	—		1,693		1,085		1,022		674		260		—		—		4,734
Total commercial loan and lease portfolio	—		2,113		1,248		1,022		678		522		1,923		—		7,506
Consumer loan portfolio:
Residential mortgage	—		85		312		—		202		1,275		—		—		1,874
Home equity	—		—		—		—		56		—		—		—		56
Consumer installment	—		—		—		—		—		—		—		—		—
Total consumer loan portfolio	—		85		312		—		258		1,275		—		—		1,930
Total 90 days or more delinquent and accruing	$	—	$	2,198	$	1,560	$	1,022	$	936	$	1,797	$	1,923	$	—	$	9,436

			Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Revolving Loans and Leases Converted to Term Loans and Leases
At December 31, 2020	2020		2019		2018		2017		2016		2015 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial	$	874	$	50	$	94	$	13	$	—	$	52	$	375	$	—	$	1,458
Commercial real estate	—		—		—		—		—		22		—		—		22
Lease financing	1,286		975		680		463		392		139		—		—		3,935
Total commercial loan and lease portfolio	2,160		1,025		774		476		392		213		375		—		5,415
Consumer loan portfolio:
Residential mortgage	85		134		—		—		—		1,746		—		—		1,965
Home equity	—		—		—		—		—		27		36		—		63
Consumer installment	—		—		—		—		—		—		—		—		—
Total consumer loan portfolio	85		134		—		—		—		1,773		36		—		2,028
Total 90 days or more delinquent and accruing	$	2,245	$	1,159	$	774	$	476	$	392	$	1,986	$	411	$	—	$	7,443

Nonaccrual loans and leases by year of origination were as follows:

			Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Revolving Loans and Leases Converted to Term Loans and Leases
At March 31, 2021	2021		2020		2019		2018		2017		2016 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial	$	121	$	27,464	$	58,160	$	51,542	$	25,885	$	39,613	$	37,191	$	11	$	239,987
Commercial real estate	—		4,309		25,233		13,738		57,547		87,593		—		—		188,420
Lease financing	—		3,606		29,189		26,513		16,047		16,758		—		1,845		93,958
Total commercial loan and lease portfolio	121		35,379		112,582		91,793		99,479		143,964		37,191		1,856		522,365
Consumer loan portfolio:
Residential mortgage	—		3,253		7,744		11,920		2,996		50,620		—		—		76,533
Home equity	22		847		934		445		432		5,594		63,920		747		72,941
Consumer installment	—		87		238		340		514		4,690		193		—		6,062
Total consumer loan portfolio	22		4,187		8,916		12,705		3,942		60,904		64,113		747		155,536
Total nonaccrual loans and leases	$	143	$	39,566	$	121,498	$	104,498	$	103,421	$	204,868	$	101,304	$	2,603	$	677,901

			Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases		Revolving Loans and Leases Converted to Term Loans and Leases
At December 31, 2020	2020		2019		2018		2017		2016		2015 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial	$	26,109	$	61,595	$	60,686	$	29,360	$	17,669	$	23,644	$	40,364	$	12	$	259,439
Commercial real estate	5,194		4,835		14,452		53,934		21,667		54,357		—		—		154,439
Lease financing	3,190		27,412		26,348		15,184		8,601		8,145		—		1,942		90,822
Total commercial loan and lease portfolio	34,493		93,842		101,486		98,478		47,937		86,146		40,364		1,954		504,700
Consumer loan portfolio:
Residential mortgage	2,631		9,177		16,391		4,172		2,812		62,470		—		—		97,653
Home equity	889		1,449		530		379		223		5,149		59,826		938		69,383
Consumer installment	33		267		181		281		575		4,060		169		—		5,566
Total consumer loan portfolio	3,553		10,893		17,102		4,832		3,610		71,679		59,995		938		172,602
Total nonaccrual loans and leases	$	38,046	$	104,735	$	118,588	$	103,310	$	51,547	$	157,825	$	100,359	$	2,892	$	677,302

The average balance of nonaccrual loans and leases and interest income recognized on nonaccrual loans and leases were as follows:

	Three Months Ended March 31,
	2021				2020
(In thousands)	Average Loan and Lease Balance		Interest Income Recognized		Average Loan and Lease Balance		Interest Income Recognized
Commercial loan and lease portfolio:
Commercial and industrial	$	249,713	$	2,116	$	68,985	$	1,709
Commercial real estate	171,429		3,040		38,383		1,784
Lease financing	92,390		19		12,063		51
Total commercial loan and lease portfolio	513,532		5,175		119,431		3,544
Consumer loan portfolio:
Residential mortgage	87,093		1,304		50,278		638
Home equity	71,162		1,387		39,505		156
Consumer installment	5,814		66		852		25
Total consumer loan portfolio	164,069		2,757		90,635		819
Total nonaccrual loans and leases	$	677,601	$	7,932	$	210,066	$	4,363

In addition to the receivable's payment performance status, credit quality is also analyzed using credit risk classifications, which vary based on the size and type of credit risk exposure and additionally measure liquidity, debt capacity, coverage and payment behavior as shown in the borrower's financial statements. The credit risk classifications also measure the quality of the borrower's management group and the repayment support offered by any guarantors. Loan and lease credit risk classifications are derived from standard regulatory rating definitions, which include: pass, special mention, substandard, doubtful and loss. Substandard and doubtful loans and leases have well-defined weaknesses, but may never result in a loss.

The amortized cost basis of loans and leases by credit risk classifications and year of origination was as follows:

	Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases(1)		Revolving Loans and Leases Converted to Term Loans and Leases(2)
At March 31, 2021	2021		2020		2019		2018		2017		2016 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial
Pass	$	1,289,456	$	3,069,589	$	1,924,724	$	1,033,717	$	527,205	$	618,661	$	3,541,892	$	51,531	$	12,056,775
Special mention	6,898		16,592		87,857		75,921		42,692		10,888		147,237		754		388,839
Substandard	2,501		36,312		98,860		61,460		33,431		76,814		101,429		280		411,087
Total commercial and industrial	1,298,855		3,122,493		2,111,441		1,171,098		603,328		706,363		3,790,558		52,565		12,856,701
Commercial real estate
Pass	304,562		1,373,808		2,274,851		1,767,581		1,169,172		2,021,114		—		—		8,911,088
Special mention	81		17,878		88,125		83,486		214,000		175,698		—		—		579,268
Substandard	1,739		60,777		43,251		86,540		82,812		115,866		—		—		390,985
Total commercial real estate	306,382		1,452,463		2,406,227		1,937,607		1,465,984		2,312,678		—		—		9,881,341
Lease financing
Pass	247,246		970,143		686,909		389,597		205,845		115,862		32,369		148,755		2,796,726
Special mention	848		14,307		8,802		5,459		4,670		2,461		—		4,586		41,133
Substandard	1,023		10,122		35,382		30,848		18,302		18,751		—		4,339		118,767
Total lease financing	249,117		994,572		731,093		425,904		228,817		137,074		32,369		157,680		2,956,626
Total commercial	1,854,354		5,569,528		5,248,761		3,534,609		2,298,129		3,156,115		3,822,927		210,245		25,694,668
Consumer loan portfolio:
Residential mortgage
Pass	710,828		2,207,173		860,827		510,015		361,669		1,780,396		—		—		6,430,908
Substandard	—		3,338		8,056		11,920		3,198		53,561		—		—		80,073
Total residential mortgage	710,828		2,210,511		868,883		521,935		364,867		1,833,957		—		—		6,510,981
Home equity
Pass	1,362		20,638		44,156		42,176		34,373		135,924		2,503,856		7,331		2,789,816
Substandard	22		847		934		445		488		6,923		63,920		747		74,326
Total home equity	1,384		21,485		45,090		42,621		34,861		142,847		2,567,776		8,078		2,864,142
Consumer installment
Pass	65,000		183,103		335,641		171,972		155,700		212,480		20,871		62		1,144,829
Substandard	—		134		403		340		514		4,815		193		—		6,399
Total consumer installment	65,000		183,237		336,044		172,312		156,214		217,295		21,064		62		1,151,228
Total consumer	777,212		2,415,233		1,250,017		736,868		555,942		2,194,099		2,588,840		8,140		10,526,351
Total loans and leases	$	2,631,566	$	7,984,761	$	6,498,778	$	4,271,477	$	2,854,071	$	5,350,214	$	6,411,767	$	218,385	$	36,221,019

(1)This balance includes $32.4 million of leased equipment that has been provided to lessees under certain master lease agreements. Under these agreements, the total amount of equipment included in each lease is provided over time, and additional amounts are required to be provided to the respective lessees in future accounting periods.

(2)This balance includes $210.2 million of leased equipment that has been provided to lessees under certain master lease agreements. Under these agreements, the total amount of equipment included in each lease was provided over time, and all equipment required by the lease has been provided to the respective lessees in current or previous accounting periods.

	Amortized Cost Basis
(In thousands)	Term Loans and Leases by Origination Year												Revolving Loans and Leases(1)		Revolving Loans and Leases Converted to Term Loans and Leases(2)
December 31, 2020	2020		2019		2018		2017		2016		2015 and Prior						Total
Commercial loan and lease portfolio:
Commercial and industrial
Pass	$	3,282,275	$	1,877,468	$	994,081	$	547,940	$	357,567	$	316,557	$	3,286,687	$	48,079	$	10,710,654
Special mention	13,377		66,485		46,174		34,959		4,661		6,733		94,338		858		267,585
Substandard	28,908		69,510		94,227		48,246		52,944		29,295		120,738		276		444,144
Total commercial and industrial	3,324,560		2,013,463		1,134,482		631,145		415,172		352,585		3,501,763		49,213		11,422,383
Commercial real estate
Pass	1,361,117		2,193,489		1,877,374		1,211,426		683,612		1,480,027		—		—		8,807,045
Special mention	17,745		78,236		53,087		197,935		79,540		104,473		—		—		531,016
Substandard	6,995		53,079		31,930		124,728		57,221		90,573		—		—		364,526
Total commercial real estate	1,385,857		2,324,804		1,962,391		1,534,089		820,373		1,675,073		—		—		9,702,587
Lease financing
Pass	1,013,374		715,327		393,644		226,818		109,992		30,620		23,806		167,726		2,681,307
Special mention	4,050		9,871		3,897		4,870		1,484		1,001		—		8,911		34,084
Substandard	6,440		29,040		27,579		16,150		9,360		8,635		7		4,629		101,840
Total lease financing	1,023,864		754,238		425,120		247,838		120,836		40,256		23,813		181,266		2,817,231
Total commercial	5,734,281		5,092,505		3,521,993		2,413,072		1,356,381		2,067,914		3,525,576		230,479		23,942,201
Consumer loan portfolio:
Residential mortgage
Pass	2,011,791		1,047,735		604,127		435,617		439,816		1,539,779		—		—		6,078,865
Special mention	—		—		—		—		—		112		—		—		112
Substandard	3,292		9,311		17,268		4,601		3,814		64,782		—		—		103,068
Total residential mortgage	2,015,083		1,057,046		621,395		440,218		443,630		1,604,673		—		—		6,182,045
Home equity
Pass	23,066		51,448		48,092		39,834		29,071		126,147		2,703,354		7,753		3,028,765
Special mention	—		—		—		—		—		—		—		—		—
Substandard	940		1,469		579		515		424		8,354		66,590		1,100		79,971
Total home equity	24,006		52,917		48,671		40,349		29,495		134,501		2,769,944		8,853		3,108,736
Consumer installment
Pass	206,994		371,924		192,067		185,051		119,663		127,252		24,043		67		1,227,061
Special mention	—		—		—		—		—		—		—		—		—
Substandard	247		1,179		680		887		909		2,086		377		—		6,365
Total consumer installment	207,241		373,103		192,747		185,938		120,572		129,338		24,420		67		1,233,426
Total consumer	2,246,330		1,483,066		862,813		666,505		593,697		1,868,512		2,794,364		8,920		10,524,207
Total loans and leases	$	7,980,611	$	6,575,571	$	4,384,806	$	3,079,577	$	1,950,078	$	3,936,426	$	6,319,940	$	239,399	$	34,466,408

(1)This balance includes $23.8 million of leased equipment that has been provided to lessees under certain master lease agreements. Under these agreements, the total amount of equipment included in each lease is provided over time, and additional amounts are required to be provided to the respective lessees in future accounting periods.

(2)This balance includes $230.5 million of leased equipment that has been provided to lessees under certain master lease agreements. Under these agreements, the total amount of equipment included in each lease was provided over time, and all equipment required by the lease has been provided to the respective lessees in current or previous accounting periods.

Troubled Debt Restructurings In certain circumstances, the Corporation may consider modifying the terms of a loan for economic or legal reasons related to the customer's financial difficulties. If the Corporation grants a concession, the modified loan would generally be classified as a TDR. However, Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications provide banks the option to temporarily suspend the application of TDR accounting guidance for loans modified due to the effects of COVID-19 when certain conditions are met. TDRs typically involve a deferral of the principal balance of the loan, a reduction of the stated interest rate of the loan or, in certain limited circumstances, a reduction of the principal balance of the loan or the loan's accrued interest.

The following table presents the recorded investment of loan modifications first classified as TDRs during the periods presented:

	Three Months Ended March 31,
	2021				2020
(In thousands)	Pre-modification Investment		Post-modification Investment		Pre-modification Investment		Post-modification Investment
Commercial loan and lease portfolio:
Commercial and industrial	$	2,491	$	2,491	$	5,751	$	5,751
Commercial real estate	1,700		1,700		106		106
Total commercial loan and lease portfolio	4,191		4,191		5,857		5,857
Consumer loan portfolio:
Residential mortgage	1,126		1,126		3,222		3,157
Home equity	334		334		997		996
Consumer installment	44		44		376		353
Total consumer loan portfolio	1,504		1,504		4,595		4,506
Total	$	5,695	$	5,695	$	10,452	$	10,363

The following table presents TDR loans:

	At March 31, 2021						At December 31, 2020
(In thousands)	Accruing TDR Loans		Nonaccrual TDR Loans		Total TDR Loans		Accruing TDR Loans		Nonaccrual TDR Loans		Total TDR Loans
Commercial loan and lease portfolio	$	12,121	$	21,554	$	33,675	$	35,697	$	23,575	$	59,272
Consumer loan portfolio	17,154		19,700		36,854		16,658		22,804		39,462
Total	$	29,275	$	41,254	$	70,529	$	52,355	$	46,379	$	98,734

Commitments to lend additional funds to borrowers whose terms have been modified in TDRs were $1.3 million and $2.6 million at March 31, 2021 and December 31, 2020, respectively.

Loan modifications to troubled borrowers are no longer disclosed as TDR loans in the calendar years after modification if the loans were modified to an interest rate equal to or greater than the yields of new loan originations with comparable risk at the time of restructuring and if the loan is performing based on the restructured terms; however, these loans do not share similar risk characteristics with other loans and follow the Corporation's loan reserve policies for individually evaluated loans.

The following table summarizes the TDR loans that defaulted during the periods presented that were modified during the respective reporting period or within one year of the beginning of the respective reporting period. The Corporation considers a loan to have defaulted when under the modified terms it becomes 90 or more days delinquent, has been transferred to nonaccrual status, has been charged down or has been transferred to other real estate owned or repossessed and returned assets.

	Three Months Ended March 31,
(In thousands)	2021		2020
Defaulted TDR loan balances modified during the applicable period
Commercial loan and lease portfolio:
Commercial and industrial	$	1,515	$	—
Commercial real estate	1,228		—
Total commercial loan and lease portfolio	2,743		—
Consumer loan portfolio:
Residential mortgage	197		630
Home equity	198		59
Consumer installment	34		—
Total consumer loan portfolio	429		689
Defaulted TDR loan balances	$	3,172	$	689

Other Real Estate Owned and Repossessed and Returned Assets Other real estate owned and repossessed and returned assets were as follows:

(In thousands)	At March 31, 2021		At December 31, 2020
Other real estate owned	$	32,115	$	33,192
Repossessed and returned assets	8,501		8,932
Consumer loans in process of foreclosure	24,173		14,790

Other real estate owned and repossessed and returned assets were written down $816 thousand and $842 thousand and during the three months ended March 31, 2021 and March 31, 2020, respectively. Other real estate owned and repossessed and returned assets are included in other assets on the Consolidated Statements of Financial Condition.