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Allowance for credit losses
12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Allowance for credit losses

5.    Allowance for credit losses

Effective January 1, 2020 the Company adopted amended accounting guidance which requires an allowance for credit losses be deducted from the amortized cost basis of financial assets to present the net carrying value at the amount that is expected to be collected over the contractual term of the asset considering relevant information about past events, current conditions, and reasonable and

supportable forecasts that affect the collectability of the reported amount. The new guidance replaced the previous incurred loss model for determining the allowance for credit losses.

Changes in the allowance for credit losses for the years ended December 31, 2021, 2020 and 2019 were as follows:

 

 

Commercial,

Financial,

 

 

Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasing, etc.

 

 

Commercial

 

 

Residential

 

 

Consumer

 

 

Unallocated

 

 

Total

 

 

 

(In thousands)

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

405,846

 

 

$

670,719

 

 

$

103,590

 

 

$

556,232

 

 

$

 

 

$

1,736,387

 

Provision for credit losses

 

 

(40,378

)

 

 

(42,825

)

 

 

(29,817

)

 

 

38,020

 

 

 

 

 

 

(75,000

)

Net charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charge-offs

 

 

(122,651

)

 

 

(101,306

)

 

 

(10,904

)

 

 

(103,293

)

 

 

 

 

 

(338,154

)

Recoveries

 

 

41,082

 

 

 

30,651

 

 

 

8,857

 

 

 

65,403

 

 

 

 

 

 

145,993

 

Net charge-offs

 

 

(81,569

)

 

 

(70,655

)

 

 

(2,047

)

 

 

(37,890

)

 

 

 

 

 

(192,161

)

Ending balance

 

$

283,899

 

 

$

557,239

 

 

$

71,726

 

 

$

556,362

 

 

$

 

 

$

1,469,226

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

366,094

 

 

$

322,201

 

 

$

56,033

 

 

$

229,118

 

 

$

77,625

 

 

$

1,051,071

 

Adoption of new accounting standard

 

 

(61,474

)

 

 

23,656

 

 

 

53,896

 

 

 

194,004

 

 

 

(77,625

)

 

 

132,457

 

Provision for credit losses

 

 

220,544

 

 

 

356,203

 

 

 

(3,172

)

 

 

226,425

 

 

 

 

 

 

800,000

 

Net charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charge-offs

 

 

(135,083

)

 

 

(35,891

)

 

 

(10,283

)

 

 

(152,250

)

 

 

 

 

 

(333,507

)

Recoveries

 

 

15,765

 

 

 

4,550

 

 

 

7,116

 

 

 

58,935

 

 

 

 

 

 

86,366

 

Net charge-offs

 

 

(119,318

)

 

 

(31,341

)

 

 

(3,167

)

 

 

(93,315

)

 

 

 

 

 

(247,141

)

Ending balance

 

$

405,846

 

 

$

670,719

 

 

$

103,590

 

 

$

556,232

 

 

$

 

 

$

1,736,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

330,055

 

 

$

341,655

 

 

$

69,125

 

 

$

200,564

 

 

$

78,045

 

 

$

1,019,444

 

Provision for credit losses

 

 

69,702

 

 

 

(10,726

)

 

 

(8,585

)

 

 

126,029

 

 

 

(420

)

 

 

176,000

 

Net charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charge-offs

 

 

(58,244

)

 

 

(12,664

)

 

 

(12,711

)

 

 

(154,089

)

 

 

 

 

 

(237,708

)

Recoveries

 

 

24,581

 

 

 

3,936

 

 

 

8,204

 

 

 

56,614

 

 

 

 

 

 

93,335

 

Net charge-offs

 

 

(33,663

)

 

 

(8,728

)

 

 

(4,507

)

 

 

(97,475

)

 

 

 

 

 

(144,373

)

Ending balance

 

$

366,094

 

 

$

322,201

 

 

$

56,033

 

 

$

229,118

 

 

$

77,625

 

 

$

1,051,071

 

 

Despite the allocation in the preceding tables, the allowance for credit losses is general in nature and is available to absorb losses from any loan or lease type. Changes in the amount of the allowance for credit losses reflect the outcome of the procedures described herein.

For purposes of determining the level of the allowance for credit losses, the Company evaluates its loan and lease portfolio by type. Accruing loans with similar risk characteristics are generally evaluated collectively. In establishing the allowance for credit losses subsequent to December 31, 2019, the Company utilizes statistically developed models to project principal balances over the remaining contractual lives of the loan portfolios and to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators, including loan grade and borrower repayment performance, can inform the models, which have been statistically developed based on historical correlations of credit losses with prevailing economic metrics, including unemployment, gross domestic product and real estate prices. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. At both December 31, 2021 and 2020, the Company utilized a reasonable and supportable forecast period of two years. Subsequent to

this forecast period the Company reverted, ratably over a one-year period, to historical loss experience to inform its estimate of losses for the remaining contractual life of each portfolio. The Company also considered the impact of portfolio concentrations, changes in underwriting practices, product expansions into new markets, imprecision in its economic forecasts, geopolitical conditions and other risk factors that might influence its loss estimation process. Prior to 2020, the allowance for credit losses was estimated for incurred credit losses inherent in the loan and lease portfolio as of the balance sheet date, but did not consider reasonable and supportable forecasts that could have affected the collectability of the reported amounts.

The Company also estimates losses attributable to specific troubled credits. The amounts of specific loss components in the Company’s loan and lease portfolios are determined through a loan-by-loan analysis of larger balance commercial loans and commercial real estate loans that are in nonaccrual status. Such loss estimates are typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. To the extent that those loans are collateral-dependent, they are evaluated based on the fair value of the loan’s collateral as estimated at or near the financial statement date. As the quality of a loan deteriorates to the point of classifying the loan as “criticized,” the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan, the characteristics of the collateral or the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in values as determined by line of business and/or loan workout personnel. Those adjustments are reviewed and assessed for reasonableness by the Company’s credit department. Accordingly, for real estate collateral securing larger nonaccrual commercial loans and commercial real estate loans, estimated collateral values are based on current appraisals and estimates of value. For non-real estate loans, collateral is assigned a discounted estimated liquidation value and, depending on the nature of the collateral, is verified through field exams or other procedures. In assessing collateral, real estate and non-real estate values are reduced by an estimate of selling costs.

For residential real estate loans, including home equity loans and lines of credit, the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off when the loan becomes 150 days delinquent. That charge-off is based on recent indications of value from external parties that are generally obtained shortly after a loan becomes nonaccrual. Loans to consumers that file for bankruptcy are generally charged-off to estimated net collateral value shortly after the Company is notified of such filings. When evaluating individual home equity loans and lines of credit for charge off and for purposes of estimating losses in determining the allowance for credit losses, the Company gives consideration to the required repayment of any first lien positions related to collateral property. Modified loans, including smaller balance homogenous loans, that are considered to be troubled debt restructurings are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows.

Information with respect to loans and leases that were considered nonaccrual at the beginning and end of the reporting period and the interest income recognized on such loans for the years ended December 31, 2021, 2020 and 2019 follows.

 

 

December 31, 2021

 

 

January 1, 2021

 

Year Ended December 31,

2021

 

 

 

Amortized Cost with Allowance

 

 

Amortized Cost without Allowance

 

 

Total

 

 

Amortized Cost

 

Interest Income Recognized

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial, leasing, etc.

 

$

110,790

 

 

$

110,232

 

 

$

221,022

 

 

$

306,827

 

$

11,865

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

242,078

 

 

 

827,202

 

 

 

1,069,280

 

 

 

775,894

 

 

15,872

 

Residential builder and developer

 

 

613

 

 

 

2,392

 

 

 

3,005

 

 

 

1,094

 

 

973

 

Other commercial construction

 

 

30,229

 

 

 

81,176

 

 

 

111,405

 

 

 

114,039

 

 

596

 

Residential

 

 

198,560

 

 

 

157,298

 

 

 

355,858

 

 

 

365,729

 

 

23,772

 

Residential — limited documentation

 

 

79,777

 

 

 

43,111

 

 

 

122,888

 

 

 

147,170

 

 

528

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

32,269

 

 

 

38,219

 

 

 

70,488

 

 

 

79,392

 

 

3,780

 

Recreational finance

 

 

21,476

 

 

 

6,335

 

 

 

27,811

 

 

 

25,519

 

 

637

 

Automobile

 

 

29,314

 

 

 

4,723

 

 

 

34,037

 

 

 

39,404

 

 

186

 

Other

 

 

44,122

 

 

 

167

 

 

 

44,289

 

 

 

38,231

 

 

531

 

Total

 

$

789,228

 

 

$

1,270,855

 

 

$

2,060,083

 

 

$

1,893,299

 

$

58,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

January 1, 2020

 

Year Ended December 31,

2020

 

 

 

Amortized Cost with Allowance

 

 

Amortized Cost without Allowance

 

 

Total

 

 

Amortized Cost

 

Interest Income Recognized

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial, leasing, etc.

 

$

226,897

 

 

$

79,930

 

 

$

306,827

 

 

$

346,743

 

$

11,269

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

364,110

 

 

 

411,784

 

 

 

775,894

 

 

 

173,796

 

 

7,821

 

Residential builder and developer

 

 

1,094

 

 

 

 

 

 

1,094

 

 

 

4,708

 

 

1,694

 

Other commercial construction

 

 

20,992

 

 

 

93,047

 

 

 

114,039

 

 

 

35,881

 

 

8,457

 

Residential

 

 

159,006

 

 

 

206,723

 

 

 

365,729

 

 

 

322,504

 

 

18,069

 

Residential — limited documentation

 

 

84,568

 

 

 

62,602

 

 

 

147,170

 

 

 

114,667

 

 

634

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

61,031

 

 

 

18,361

 

 

 

79,392

 

 

 

65,039

 

 

4,092

 

Recreational finance

 

 

19,434

 

 

 

6,085

 

 

 

25,519

 

 

 

14,308

 

 

626

 

Automobile

 

 

34,044

 

 

 

5,360

 

 

 

39,404

 

 

 

21,293

 

 

186

 

Other

 

 

3,606

 

 

 

34,625

 

 

 

38,231

 

 

 

35,394

 

 

1,369

 

Total

 

$

974,782

 

 

$

918,517

 

 

$

1,893,299

 

 

$

1,134,333

 

$

54,217

 

 

 

 

December 31, 2019

 

 

January 1, 2019

 

Year Ended December 31,

2019

 

 

 

Amortized Cost with Allowance

 

 

Amortized Cost without Allowance

 

 

Total

 

 

Amortized Cost

 

Interest Income Recognized

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial, leasing, etc.

 

$

206,644

 

 

$

139,913

 

 

$

346,557

 

 

$

234,423

 

$

8,960

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

40,847

 

 

 

117,627

 

 

 

158,474

 

 

 

203,672

 

 

5,850

 

Residential builder and developer

 

 

604

 

 

 

3,378

 

 

 

3,982

 

 

 

4,798

 

 

357

 

Other commercial construction

 

 

12,425

 

 

 

20,345

 

 

 

32,770

 

 

 

22,205

 

 

634

 

Residential

 

 

59,982

 

 

 

175,681

 

 

 

235,663

 

 

 

233,352

 

 

12,630

 

Residential — limited documentation

 

 

26,710

 

 

 

56,717

 

 

 

83,427

 

 

 

84,685

 

 

1,092

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

24,812

 

 

 

38,403

 

 

 

63,215

 

 

 

71,292

 

 

5,987

 

Recreational finance

 

 

9,054

 

 

 

5,165

 

 

 

14,219

 

 

 

11,199

 

 

575

 

Automobile

 

 

14,805

 

 

 

6,488

 

 

 

21,293

 

 

 

23,359

 

 

214

 

Other

 

 

3,391

 

 

 

121

 

 

 

3,512

 

 

 

4,623

 

 

508

 

Total

 

$

399,274

 

 

$

563,838

 

 

$

963,112

 

 

$

893,608

 

$

36,807

 

 

 

The Company utilizes a loan grading system to differentiate risk amongst its commercial loans and commercial real estate loans. Loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more.

Loan officers in different geographic locations with the support of the Company’s credit department personnel review and reassign loan grades based on their detailed knowledge of individual borrowers and their judgment of the impact on such borrowers resulting from changing conditions in their respective regions. Factors considered in assigning loan grades include borrower-specific information related to expected future cash flows and operating results, collateral values, geographic location, financial condition and performance, payment status, and other information. The Company’s policy is that, at least annually, updated financial information be obtained from commercial borrowers associated with pass grade loans and additional analysis is performed. On a quarterly basis, the Company’s centralized credit department reviews all criticized commercial loans and commercial real estate loans greater than $1 million to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing.

The following table summarizes the loan grades applied at December 31, 2021 to the various classes of the Company’s commercial loans and commercial real estate loans by origination year.

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

Revolving Loans Converted to Term

 

 

 

 

 

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Loans

 

 

Loans

 

 

Total

 

 

 

(In thousands)

 

Commercial, financial, leasing, etc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loan grades:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Pass

 

$

4,798,052

 

 

 

1,916,072

 

 

 

1,476,786

 

 

 

951,881

 

 

 

500,615

 

 

 

1,398,775

 

 

 

10,993,461

 

 

 

18,699

 

 

$

22,054,341

 

          Criticized accrual

 

 

196,680

 

 

 

98,595

 

 

 

107,010

 

 

 

73,126

 

 

 

36,232

 

 

 

185,935

 

 

 

484,755

 

 

 

15,628

 

 

 

1,197,961

 

          Criticized nonaccrual

 

 

19,462

 

 

 

23,229

 

 

 

17,114

 

 

 

39,908

 

 

 

20,927

 

 

 

33,698

 

 

 

60,175

 

 

 

6,509

 

 

 

221,022

 

Total commercial,

   financial, leasing, etc.

 

$

5,014,194

 

 

 

2,037,896

 

 

 

1,600,910

 

 

 

1,064,915

 

 

 

557,774

 

 

 

1,618,408

 

 

 

11,538,391

 

 

 

40,836

 

 

$

23,473,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loan grades:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Pass

 

$

3,413,587

 

 

 

2,662,999

 

 

 

3,682,178

 

 

 

2,648,388

 

 

 

2,076,155

 

 

 

5,232,790

 

 

 

728,948

 

 

 

 

 

$

20,445,045

 

          Criticized accrual

 

 

133,133

 

 

 

480,146

 

 

 

685,701

 

 

 

1,068,552

 

 

 

468,530

 

 

 

1,743,798

 

 

 

38,570

 

 

 

 

 

 

4,618,430

 

          Criticized nonaccrual

 

 

21,587

 

 

 

133,560

 

 

 

195,084

 

 

 

83,857

 

 

 

76,628

 

 

 

520,473

 

 

 

38,091

 

 

 

 

 

 

1,069,280

 

Total commercial real

   estate

 

$

3,568,307

 

 

 

3,276,705

 

 

 

4,562,963

 

 

 

3,800,797

 

 

 

2,621,313

 

 

 

7,497,061

 

 

 

805,609

 

 

 

 

 

$

26,132,755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential builder and developer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loan grades:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Pass

 

$

786,983

 

 

 

106,510

 

 

 

75,287

 

 

 

47,587

 

 

 

4,680

 

 

 

12,450

 

 

 

230,017

 

 

 

 

 

$

1,263,514

 

          Criticized accrual

 

 

2,055

 

 

 

5,356

 

 

 

117,258

 

 

 

13,637

 

 

 

630

 

 

 

-

 

 

 

891

 

 

 

 

 

 

139,827

 

          Criticized nonaccrual

 

 

 

 

 

 

 

 

2,910

 

 

 

 

 

 

 

 

 

95

 

 

 

 

 

 

 

 

 

3,005

 

Total residential builder

   and developer

 

$

789,038

 

 

 

111,866

 

 

 

195,455

 

 

 

61,224

 

 

 

5,310

 

 

 

12,545

 

 

 

230,908

 

 

 

 

 

$

1,406,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other commercial construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loan grades:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Pass

 

$

957,947

 

 

 

1,781,603

 

 

 

2,022,276

 

 

 

832,547

 

 

 

152,669

 

 

 

273,556

 

 

 

38,781

 

 

 

 

 

$

6,059,379

 

          Criticized accrual

 

 

24,103

 

 

 

54,191

 

 

 

675,226

 

 

 

583,428

 

 

 

228,739

 

 

 

114,158

 

 

 

 

 

 

 

 

 

1,679,845

 

          Criticized nonaccrual

 

 

 

 

 

 

 

 

71,613

 

 

 

3,303

 

 

 

12,263

 

 

 

19,970

 

 

 

4,256

 

 

 

 

 

 

111,405

 

Total other commercial

   construction

 

$

982,050

 

 

 

1,835,794

 

 

 

2,769,115

 

 

 

1,419,278

 

 

 

393,671

 

 

 

407,684

 

 

 

43,037

 

 

 

 

 

$

7,850,629

 

 

Increases to criticized loans during 2021 were predominantly attributable to effects of the COVID-19 pandemic and the related re-grading of loans.

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company considers repayment performance a significant indicator of credit quality for its residential real estate loan and consumer loan portfolios. A summary of loans in accrual and nonaccrual status at December 31, 2021 for the various classes of the Company’s residential real estate loans and consumer loans by origination year is as follows.

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

Revolving Loans Converted to Term

 

 

 

 

 

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Loans

 

 

Loans

 

 

Total

 

 

 

(In thousands)

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Current

 

$

3,057,118

 

 

 

1,672,090

 

 

 

1,075,896

 

 

 

466,040

 

 

 

1,037,958

 

 

 

5,913,461

 

 

 

72,309

 

 

 

 

 

$

13,294,872

 

          30-89 days past due

 

 

15,245

 

 

 

12,535

 

 

 

9,886

 

 

 

6,132

 

 

 

33,097

 

 

 

162,666

 

 

 

 

 

 

 

 

 

239,561

 

          Accruing loans past due 90

            days or more

 

 

10,924

 

 

 

100,581

 

 

 

28,512

 

 

 

31,996

 

 

 

205,318

 

 

 

542,749

 

 

 

 

 

 

 

 

 

920,080

 

          Nonaccrual

 

 

3,359

 

 

 

19,858

 

 

 

7,119

 

 

 

4,577

 

 

 

5,890

 

 

 

314,792

 

 

 

263

 

 

 

 

 

 

355,858

 

Total residential

 

$

3,086,646

 

 

 

1,805,064

 

 

 

1,121,413

 

 

 

508,745

 

 

 

1,282,263

 

 

 

6,933,668

 

 

 

72,572

 

 

 

 

 

$

14,810,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - limited documentation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Current

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,124,520

 

 

 

 

 

 

 

 

$

1,124,520

 

          30-89 days past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,666

 

 

 

 

 

 

 

 

 

16,666

 

          Accruing loans past due 90

            days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Nonaccrual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

122,888

 

 

 

 

 

 

 

 

 

122,888

 

Total residential - limited

   documentation

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,264,074

 

 

 

 

 

 

 

 

$

1,264,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Current

 

$

304

 

 

 

777

 

 

 

2,793

 

 

 

1,730

 

 

 

1,944

 

 

 

38,015

 

 

 

2,348,279

 

 

 

1,082,775

 

 

$

3,476,617

 

          30-89 days past due

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

 

 

 

698

 

 

 

346

 

 

 

14,421

 

 

 

15,486

 

          Accruing loans past due 90

            days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Nonaccrual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,750

 

 

 

4,951

 

 

 

59,787

 

 

 

70,488

 

Total home equity lines and loans

 

$

304

 

 

 

777

 

 

 

2,793

 

 

 

1,751

 

 

 

1,944

 

 

 

44,463

 

 

 

2,353,576

 

 

 

1,156,983

 

 

$

3,562,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

Revolving Loans Converted to Term

 

 

 

 

 

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Loans

 

 

Loans

 

 

Total

 

 

 

(In thousands)

 

Recreational finance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

$

2,890,111

 

 

 

2,088,342

 

 

 

1,267,929

 

 

 

646,883

 

 

 

445,868

 

 

 

646,040

 

 

 

 

 

 

 

 

$

7,985,173

 

   30-89 days past due

 

 

5,929

 

 

 

8,912

 

 

 

8,317

 

 

 

5,074

 

 

 

5,189

 

 

 

7,123

 

 

 

 

 

 

 

 

 

40,544

 

   Accruing loans past due

        90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonaccrual

 

 

1,341

 

 

 

4,646

 

 

 

4,871

 

 

 

4,918

 

 

 

4,039

 

 

 

7,996

 

 

 

 

 

 

 

 

 

27,811

 

Total recreational finance

 

$

2,897,381

 

 

 

2,101,900

 

 

 

1,281,117

 

 

 

656,875

 

 

 

455,096

 

 

 

661,159

 

 

 

 

 

 

 

 

$

8,053,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automobile:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

$

2,220,061

 

 

 

1,097,684

 

 

 

662,000

 

 

 

341,655

 

 

 

211,774

 

 

 

71,598

 

 

 

 

 

 

 

 

$

4,604,772

 

   30-89 days past due

 

 

8,508

 

 

 

6,615

 

 

 

8,936

 

 

 

7,161

 

 

 

5,715

 

 

 

3,129

 

 

 

 

 

 

 

 

 

40,064

 

   Accruing loans past due

        90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonaccrual

 

 

1,588

 

 

 

4,390

 

 

 

7,847

 

 

 

7,867

 

 

 

6,882

 

 

 

5,463

 

 

 

 

 

 

 

 

 

34,037

 

Total automobile

 

$

2,230,157

 

 

 

1,108,689

 

 

 

678,783

 

 

 

356,683

 

 

 

224,371

 

 

 

80,190

 

 

 

 

 

 

 

 

$

4,678,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

$

244,346

 

 

 

96,945

 

 

 

73,586

 

 

 

24,424

 

 

 

16,924

 

 

 

14,321

 

 

 

1,148,096

 

 

 

1,505

 

 

$

1,620,147

 

   30-89 days past due

 

 

2,937

 

 

 

404

 

 

 

472

 

 

 

255

 

 

 

101

 

 

 

5,712

 

 

 

1,908

 

 

 

434

 

 

 

12,223

 

   Accruing loans past due

        90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,302

 

 

 

 

 

 

 

 

 

3,302

 

   Nonaccrual

 

 

2,051

 

 

 

326

 

 

 

326

 

 

 

193

 

 

 

104

 

 

 

353

 

 

 

40,807

 

 

 

129

 

 

 

44,289

 

Total other

 

$

249,334

 

 

 

97,675

 

 

 

74,384

 

 

 

24,872

 

 

 

17,129

 

 

 

23,688

 

 

 

1,190,811

 

 

 

2,068

 

 

$

1,679,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases at

December 31, 2021

 

$

18,817,411

 

 

 

12,376,366

 

 

 

12,286,933

 

 

 

7,895,140

 

 

 

5,558,871

 

 

 

18,542,940

 

 

 

16,234,904

 

 

 

1,199,887

 

 

$

92,912,452

 

 

 

The following tables summarizes the loan grades applied at December 31, 2020 to the various classes of the Company’s commercial loans and commercial real estate loans by origination year.

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

Revolving Loans Converted to Term

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Loans

 

 

Loans

 

 

Total

 

 

 

(In thousands)

 

Commercial, financial, leasing, etc.:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loan grades:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Pass

 

$

7,732,728

 

 

 

2,277,233

 

 

 

1,505,486

 

 

 

930,834

 

 

 

719,796

 

 

 

1,387,695

 

 

 

11,352,416

 

 

 

21,286

 

 

$

25,927,474

 

          Criticized accrual

 

 

388,326

 

 

 

84,358

 

 

 

113,940

 

 

 

41,587

 

 

 

39,930

 

 

 

73,401

 

 

 

584,751

 

 

 

13,970

 

 

 

1,340,263

 

          Criticized nonaccrual

 

 

7,720

 

 

 

27,309

 

 

 

56,227

 

 

 

16,808

 

 

 

19,681

 

 

 

45,471

 

 

 

125,893

 

 

 

7,718

 

 

 

306,827

 

Total commercial,

   financial, leasing, etc.

 

$

8,128,774

 

 

 

2,388,900

 

 

 

1,675,653

 

 

 

989,229

 

 

 

779,407

 

 

 

1,506,567

 

 

 

12,063,060

 

 

 

42,974

 

 

$

27,574,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loan grades:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Pass

 

$

3,353,450

 

 

 

4,681,834

 

 

 

3,299,095

 

 

 

2,628,061

 

 

 

2,746,165

 

 

 

5,698,834

 

 

 

875,348

 

 

 

 

 

$

23,282,787

 

          Criticized accrual

 

 

526,037

 

 

 

400,154

 

 

 

579,507

 

 

 

290,885

 

 

 

568,144

 

 

 

1,212,672

 

 

 

44,260

 

 

 

 

 

 

3,621,659

 

          Criticized nonaccrual

 

 

26,876

 

 

 

121,899

 

 

 

47,144

 

 

 

99,293

 

 

 

197,319

 

 

 

248,949

 

 

 

34,414

 

 

 

 

 

 

775,894

 

Total commercial real

   estate

 

$

3,906,363

 

 

 

5,203,887

 

 

 

3,925,746

 

 

 

3,018,239

 

 

 

3,511,628

 

 

 

7,160,455

 

 

 

954,022

 

 

 

 

 

$

27,680,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential builder and developer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loan grades:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Pass

 

$

506,295

 

 

 

223,880

 

 

 

109,453

 

 

 

15,048

 

 

 

10,976

 

 

 

11,320

 

 

 

236,943

 

 

 

 

 

$

1,113,915

 

          Criticized accrual

 

 

3,690

 

 

 

106,847

 

 

 

14,836

 

 

 

3,421

 

 

 

 

 

 

1,885

 

 

 

4,050

 

 

 

 

 

 

134,729

 

          Criticized nonaccrual

 

 

 

 

 

518

 

 

 

 

 

 

 

 

 

 

 

 

576

 

 

 

 

 

 

 

 

 

1,094

 

Total residential builder

   and developer

 

$

509,985

 

 

 

331,245

 

 

 

124,289

 

 

 

18,469

 

 

 

10,976

 

 

 

13,781

 

 

 

240,993

 

 

 

 

 

$

1,249,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other commercial construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Loan grades:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Pass

 

$

1,050,258

 

 

 

2,998,921

 

 

 

2,048,063

 

 

 

945,339

 

 

 

233,127

 

 

 

294,030

 

 

 

74,611

 

 

 

 

 

$

7,644,349

 

          Criticized accrual

 

 

37,192

 

 

 

148,492

 

 

 

381,091

 

 

 

225,949

 

 

 

144,665

 

 

 

12,034

 

 

 

 

 

 

 

 

 

949,423

 

          Criticized nonaccrual

 

 

335

 

 

 

65,592

 

 

 

13,522

 

 

 

4,213

 

 

 

12,097

 

 

 

12,873

 

 

 

5,407

 

 

 

 

 

 

114,039

 

Total other commercial

   construction

 

$

1,087,785

 

 

 

3,213,005

 

 

 

2,442,676

 

 

 

1,175,501

 

 

 

389,889

 

 

 

318,937

 

 

 

80,018

 

 

 

 

 

$

8,707,811

 

 

 

A summary of loans in accrual and nonaccrual status at December 31, 2020 for the various classes of the Company’s residential real estate loans and consumer loans by origination year follows.

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

Revolving Loans Converted to Term

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Loans

 

 

Loans

 

 

Total

 

 

 

(In thousands)

 

Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

$

2,722,862

 

 

 

1,416,259

 

 

 

618,736

 

 

 

1,318,094

 

 

 

718,235

 

 

 

6,898,756

 

 

 

71,894

 

 

 

 

 

$

13,764,836

 

   30-89 days past due

 

 

13,496

 

 

 

7,781

 

 

 

7,258

 

 

 

13,477

 

 

 

7,947

 

 

 

150,447

 

 

 

 

 

 

 

 

 

200,406

 

   Accruing loans past due

        90 days or more

 

579

 

 

 

15,234

 

 

 

38,145

 

 

 

212,818

 

 

 

45,804

 

 

 

480,308

 

 

 

 

 

 

 

 

 

792,888

 

   Nonaccrual

 

 

3,133

 

 

 

14,439

 

 

 

5,183

 

 

 

6,408

 

 

 

2,900

 

 

 

333,466

 

 

 

200

 

 

 

 

 

 

365,729

 

Total residential

 

$

2,740,070

 

 

 

1,453,713

 

 

 

669,322

 

 

 

1,550,797

 

 

 

774,886

 

 

 

7,862,977

 

 

 

72,094

 

 

 

 

 

$

15,123,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - limited documentation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,462,277

 

 

 

 

 

 

 

 

$

1,462,277

 

   30-89 days past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,687

 

 

 

 

 

 

 

 

 

19,687

 

   Accruing loans past due

        90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonaccrual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

147,170

 

 

 

 

 

 

 

 

 

147,170

 

Total residential - limited

   documentation

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,629,134

 

 

 

 

 

 

 

 

$

1,629,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

$

773

 

 

 

3,983

 

 

 

1,591

 

 

 

2,016

 

 

 

162

 

 

 

51,554

 

 

 

2,569,621

 

 

 

1,252,185

 

 

$

3,881,885

 

   30-89 days past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,148

 

 

 

939

 

 

 

22,242

 

 

 

24,329

 

   Accruing loans past due

        90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonaccrual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,148

 

 

 

5,752

 

 

 

67,492

 

 

 

79,392

 

Total home equity lines and loans

 

$

773

 

 

 

3,983

 

 

 

1,591

 

 

 

2,016

 

 

 

162

 

 

 

58,850

 

 

 

2,576,312

 

 

 

1,341,919

 

 

$

3,985,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

Revolving Loans Converted to Term

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Loans

 

 

Loans

 

 

Total

 

 

 

(In thousands)

 

Recreational finance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

$

2,796,359

 

 

 

1,751,766

 

 

 

907,595

 

 

 

630,151

 

 

 

352,414

 

 

 

564,358

 

 

 

 

 

 

 

 

$

7,002,643

 

   30-89 days past due

 

9,548

 

 

 

11,255

 

 

 

8,519

 

 

 

6,638

 

 

 

2,938

 

 

 

8,263

 

 

 

 

 

 

 

 

 

47,161

 

   Accruing loans past due

        90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonaccrual

 

1,854

 

 

 

3,883

 

 

 

4,072

 

 

 

4,194

 

 

 

2,733

 

 

 

8,783

 

 

 

 

 

 

 

 

 

25,519

 

Total recreational finance

 

$

2,807,761

 

 

 

1,766,904

 

 

 

920,186

 

 

 

640,983

 

 

 

358,085

 

 

 

581,404

 

 

 

 

 

 

 

 

$

7,075,323

 

Automobile:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

$

1,595,636

 

 

 

1,106,782

 

 

 

629,338

 

 

 

440,604

 

 

 

171,017

 

 

 

63,972

 

 

 

 

 

 

 

 

$

4,007,349

 

   30-89 days past due

 

6,461

 

 

 

14,140

 

 

 

12,542

 

 

 

12,899

 

 

 

6,373

 

 

 

3,083

 

 

 

 

 

 

 

 

 

55,498

 

   Accruing loans past due

        90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonaccrual

 

 

1,615

 

 

 

7,144

 

 

 

10,788

 

 

 

10,061

 

 

 

5,991

 

 

 

3,805

 

 

 

 

 

 

 

 

 

39,404

 

Total automobile

 

$

1,603,712

 

 

 

1,128,066

 

 

 

652,668

 

 

 

463,564

 

 

 

183,381

 

 

 

70,860

 

 

 

 

 

 

 

 

$

4,102,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Current

 

$

160,424

 

 

 

137,617

 

 

 

53,702

 

 

 

32,556

 

 

 

4,526

 

 

 

28,970

 

 

 

927,217

 

 

 

1,856

 

 

$

1,346,868

 

   30-89 days past due

 

1,879

 

 

 

1,130

 

 

 

577

 

 

 

2,301

 

 

 

42

 

 

 

557

 

 

 

10,594

 

 

 

481

 

 

 

17,561

 

   Accruing loans past due

        90 days or more

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

374

 

 

 

4,207

 

 

 

 

 

 

4,581

 

   Nonaccrual

 

 

1,493

 

 

 

492

 

 

 

339

 

 

 

183

 

 

 

31

 

 

 

501

 

 

 

35,044

 

 

 

148

 

 

 

38,231

 

Total other

 

$

163,796

 

 

 

139,239

 

 

 

54,618

 

 

 

35,040

 

 

 

4,599

 

 

 

30,402

 

 

 

977,062

 

 

 

2,485

 

 

$

1,407,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans and leases at

   December 31, 2020

 

$

20,949,019

 

 

 

15,628,942

 

 

 

10,466,749

 

 

 

7,893,838

 

 

 

6,013,013

 

 

 

19,233,367

 

 

 

16,963,561

 

 

 

1,387,378

 

 

$

98,535,867

 

 

The Company’s reserve for off-balance sheet credit exposures was not material at December 31, 2021 and December 31, 2020.