Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020

Allowance for Credit Losses

Schedule of activity in the allowance by class of loans and lease

	Three Months Ended September 30, 2020
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Allowance for credit losses:
Balance at beginning of period	$	21,299	$	53,122	$	5,276	$	3,837	$	33,874	$	7,635	$	67,077	$	192,120
Charge-offs		(598)		—		—		—		—		—		(4,238)		(4,836)
Recoveries		1,699		—		30		—		27		16		3,148		4,920
Increase (decrease) in Provision		(1,129)		(1,389)		(372)		214		8,316		(50)		(1,918)		3,672
Balance at end of period	$	21,271	$	51,733	$	4,934	$	4,051	$	42,217	$	7,601	$	64,069	$	195,876

	Nine Months Ended September 30, 2020
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Unallocated		Total
Allowance for credit losses:
Balance at beginning of period	$	28,975	$	22,325	$	4,844	$	424	$	29,303	$	9,876	$	34,644	$	139	$	130,530
Adoption of ASU No. 2016-13		(16,105)		10,559		(1,803)		207		(2,793)		(4,731)		15,575		(139)		770
Charge-offs		(14,773)		(2,723)		(379)		—		(14)		(8)		(21,742)		—		(39,639)
Recoveries		2,019		—		170		—		179		146		7,687		—		10,201
Increase in Provision		21,155		21,572		2,102		3,420		15,542		2,318		27,905		—		94,014
Balance at end of period	$	21,271	$	51,733	$	4,934	$	4,051	$	42,217	$	7,601	$	64,069	$	—	$	195,876

The following presents the activity in the ACL by class of loans and leases for the three and nine months ended September 30, 2019, presented in accordance with Topic 310, Receivables:

	Three Months Ended September 30, 2019
	Commercial Lending
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Residential		Consumer		Unallocated		Total
Allowance for credit losses:
Balance at beginning of period	$	31,688	$	22,204	$	5,014	$	446	$	43,420	$	33,638	$	2,125	$	138,535
Charge-offs		(514)		—		—		—		(7)		(8,015)		—		(8,536)
Recoveries		241		30		—		—		425		2,269		—		2,965
Increase (decrease) in Provision		(4,098)		(358)		(361)		(54)		241		5,838		(1,208)		—
Balance at end of period	$	27,317	$	21,876	$	4,653	$	392	$	44,079	$	33,730	$	917	$	132,964

	Nine Months Ended September 30, 2019
	Commercial Lending
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Residential		Consumer		Unallocated		Total
Allowance for credit losses:
Balance at beginning of period	$	34,501	$	19,725	$	5,813	$	432	$	44,906	$	35,813	$	528	$	141,718
Charge-offs		(2,514)		—		—		(24)		(7)		(24,118)		—		(26,663)
Recoveries		303		93		—		—		860		7,103		—		8,359
Increase (decrease) in Provision		(4,973)		2,058		(1,160)		(16)		(1,680)		14,932		389		9,550
Balance at end of period	$	27,317	$	21,876	$	4,653	$	392	$	44,079	$	33,730	$	917	$	132,964

Schedule of disaggregation of Allowance and recorded investment in loans by impairment methodology

	December 31, 2019
	Commercial Lending
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Residential		Consumer		Unallocated		Total
Allowance for credit losses:
Individually evaluated for impairment	$	46	$	27	$	—	$	—	$	130	$	—	$	—	$	203
Collectively evaluated for impairment		28,929		22,298		4,844		424		39,049		34,644		139		130,327
Balance at end of period	$	28,975	$	22,325	$	4,844	$	424	$	39,179	$	34,644	$	139	$	130,530
Loans and leases:
Individually evaluated for impairment	$	4,951	$	723	$	—	$	—	$	14,964	$	—	$	—	$	20,638
Collectively evaluated for impairment		2,738,291		3,463,230		519,241		202,483		4,647,211		1,620,556		—		13,191,012
Balance at end of period	$	2,743,242	$	3,463,953	$	519,241	$	202,483	$	4,662,175	$	1,620,556	$	—	$	13,211,650

Schedule of activity in the Liability for Credit Losses for Off-Balance-Sheet Financial Instruments

	Three Months Ended September 30, 2020
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Reserve for unfunded commitments:
Balance at beginning of period	$	8,181	$	1,168	$	5,908	$	—	$	3	$	7,890	$	54	$	23,204
Increase (decrease) in Provision		1,212		(57)		(749)		—		1		996		(3)		1,400
Balance at end of period	$	9,393	$	1,111	$	5,159	$	—	$	4	$	8,886	$	51	$	24,604

	Nine Months Ended September 30, 2020
	Commercial Lending								Residential Lending
	Commercial		Commercial								Home
	and		Real				Lease		Residential		Equity
(dollars in thousands)	Industrial		Estate		Construction		Financing		Mortgage		Line		Consumer		Total
Reserve for unfunded commitments:
Balance at beginning of period	$	—	$	—	$	—	$	—	$	—	$	—	$	600	$	600
Adoption of ASU No. 2016-13		5,390		778		4,119		—		7		6,587		(581)		16,300
Increase (decrease) in Provision		4,003		333		1,040		—		(3)		2,299		32		7,704
Balance at end of period	$	9,393	$	1,111	$	5,159	$	—	$	4	$	8,886	$	51	$	24,604

Schedule of amortized cost basis by year of origination and credit quality indicator

The amortized cost basis by year of origination and credit quality indicator of the Company's loans and leases as of September 30, 2020 was as follows:

															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	999,763	$	330,209	$	202,595	$	76,154	$	52,391	$	92,446	$	1,033,278	$	26,148	$	2,812,984
Special Mention		25,677		7,786		33,794		2,354		306		791		105,339		452		176,499
Substandard		23,836		2,172		2,611		1,395		4,265		9,375		37,883		283		81,820
Doubtful		—		—		—		—		—		195		—		—		195
Other (1)		12,084		15,053		10,998		6,439		2,454		492		51,244		—		98,764
Total Commercial and Industrial		1,061,360		355,220		249,998		86,342		59,416		103,299		1,227,744		26,883		3,170,262
Commercial Real Estate
Risk rating:
Pass		289,941		625,894		544,367		447,473		305,557		880,689		36,258		2		3,130,181
Special Mention		1,487		94,217		30,760		39,438		31,211		58,911		2,999		—		259,023
Substandard		—		10,882		14,594		6,972		10,685		19,240		9,006		—		71,379
Other (1)		—		—		—		—		—		502		—		—		502
Total Commercial Real Estate		291,428		730,993		589,721		493,883		347,453		959,342		48,263		2		3,461,085
Construction
Risk rating:
Pass		32,810		182,503		187,257		91,415		24,053		42,269		26,133		—		586,440
Special Mention		—		515		1,647		4,749		—		9,172		—		—		16,083
Substandard		—		—		538		1,840		525		1,043		—		—		3,946
Other (1)		13,349		23,382		8,804		4,264		1,796		4,222		585		—		56,402
Total Construction		46,159		206,400		198,246		102,268		26,374		56,706		26,718		—		662,871
Lease Financing
Risk rating:
Pass		68,770		66,472		15,044		18,063		4,110		63,537		—		—		235,996
Special Mention		—		940		158		1,376		424		643		—		—		3,541
Substandard		2,703		1,680		359		1,174		—		524		—		—		6,440
Total Lease Financing		71,473		69,092		15,561		20,613		4,534		64,704		—		—		245,977
Total Commercial Lending	$	1,470,420	$	1,361,705	$	1,053,526	$	703,106	$	437,777	$	1,184,051	$	1,302,725	$	26,885	$	7,540,195

(continued)

															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2020		2019		2018		2017		2016		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	457,209	$	410,369	$	319,988	$	390,552	$	341,709	$	919,509	$	—	$	—	$	2,839,336
680 - 739		71,240		54,497		55,179		59,237		44,911		162,726		—		—		447,790
620 - 679		12,653		11,595		9,753		8,559		8,942		48,554		—		—		100,056
550 - 619		1,946		2,316		3,923		5,423		4,506		13,256		—		—		31,370
Less than 550		—		—		534		2,153		953		3,480		—		—		7,120
No Score (3)		14,827		19,364		22,222		22,616		14,954		49,251		—		—		143,234
Other (2)		16,598		17,402		17,874		22,807		11,060		13,653		579		172		100,145
Total Residential Mortgage		574,473		515,543		429,473		511,347		427,035		1,210,429		579		172		3,669,051
Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		617,973		5,600		623,573
680 - 739		—		—		—		—		—		—		163,305		3,799		167,104
620 - 679		—		—		—		—		—		—		47,448		1,295		48,743
550 - 619		—		—		—		—		—		—		13,210		1,464		14,674
Less than 550		—		—		—		—		—		—		4,750		613		5,363
No Score (3)		—		—		—		—		—		—		5,332		—		5,332
Total Home Equity Line		—		—		—		—		—		—		852,018		12,771		864,789
Total Residential Lending		574,473		515,543		429,473		511,347		427,035		1,210,429		852,597		12,943		4,533,840
Consumer Lending
FICO:
740 and greater		102,091		127,590		106,359		61,204		28,613		8,443		105,905		—		540,205
680 - 739		67,228		100,723		77,874		42,470		20,280		7,302		77,445		—		393,322
620 - 679		29,733		60,484		39,213		27,825		13,701		5,148		39,748		—		215,852
550 - 619		5,927		24,376		21,050		18,784		9,388		4,134		16,484		—		100,143
Less than 550		1,558		11,200		11,967		9,579		4,671		1,969		6,590		—		47,534
No Score (3)		3,998		120		105		115		23		—		33,654		—		38,015
Other (2)		886		9,144		89		2,219		47		6,787		71,691		—		90,863
Total Consumer Lending		211,421		333,637		256,657		162,196		76,723		33,783		351,517		—		1,425,934
Total Loans and Leases	$	2,256,314	$	2,210,885	$	1,739,656	$	1,376,649	$	941,535	$	2,428,263	$	2,506,839	$	39,828	$	13,499,969

(1) Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score.

(2) Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating.

(3) No FICO scores are primarily related to loans and leases extended to non-residents.  Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.

Schedule of aging analyses of past due loans and leases

	September 30, 2020
	Past Due												Loans and
					Greater								Leases Past
					Than or								Due 90 Days
	30-59		60-89		Equal to								or More and
	Days		Days		90 Days		Total				Total Loans		Still Accruing
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		and Leases		Interest
Commercial and industrial	$	1,233	$	2,619	$	2,255	$	6,107	$	3,164,155	$	3,170,262	$	1,938
Commercial real estate		149		1,142		1,387		2,678		3,458,407		3,461,085		1,307
Construction		—		—		2,143		2,143		660,728		662,871		100
Lease financing		—		—		—		—		245,977		245,977		—
Residential mortgage		921		568		3,914		5,403		3,663,648		3,669,051		—
Home equity line		2,837		2,537		4,503		9,877		854,912		864,789		4,503
Consumer		17,709		5,940		2,897		26,546		1,399,388		1,425,934		2,897
Total	$	22,849	$	12,806	$	17,099	$	52,754	$	13,447,215	$	13,499,969	$	10,745

As of December 31, 2019, the aging analysis of the Company’s past due loans and leases, presented in accordance with Topic 310, Receivables, was as follows:

	December 31, 2019
	Accruing Loans and Leases
					Greater								Total Non
					Than or						Total		Accruing
	30-59		60-89		Equal to		Total				Accruing		Loans
	Days		Days		90 Days		Past				Loans and		and		Total
(dollars in thousands)	Past Due		Past Due		Past Due		Due		Current		Leases		Leases		Outstanding
Commercial and industrial	$	1,525	$	808	$	1,429	$	3,762	$	2,739,448	$	2,743,210	$	32	$	2,743,242
Commercial real estate		1,664		1,125		1,013		3,802		3,460,121		3,463,923		30		3,463,953
Construction		—		—		2,367		2,367		516,874		519,241		—		519,241
Lease financing		—		—		—		—		202,483		202,483		—		202,483
Residential mortgage		3,258		399		74		3,731		3,759,799		3,763,530		5,406		3,768,936
Home equity line		2,971		394		2,995		6,360		886,879		893,239		—		893,239
Consumer		26,810		7,022		4,272		38,104		1,582,452		1,620,556		—		1,620,556
Total	$	36,228	$	9,748	$	12,150	$	58,126	$	13,148,056	$	13,206,182	$	5,468	$	13,211,650

Schedule of revolving loans that were converted to term loans

	Three Months Ended
(dollars in thousands)	September 30, 2020
Commercial and industrial	$	5
Home equity line		8,843
Total Revolving Loans Converted to Term Loans During the Period	$	8,848

	Nine Months Ended
(dollars in thousands)	September 30, 2020
Commercial and industrial	$	28,527
Residential mortgage		296
Home equity line		12,771
Total Revolving Loans Converted to Term Loans During the Period	$	41,594

Schedule of credit risk profiles by internally assigned grade for loans and leases

	December 31, 2019
	Commercial		Commercial
	and		Real				Lease
(dollars in thousands)	Industrial		Estate		Construction		Financing		Total
Grade:
Pass	$	2,585,908	$	3,327,659	$	515,993	$	201,461	$	6,631,021
Special mention		91,365		106,331		127		1,022		198,845
Substandard		65,969		29,963		3,121		—		99,053
Total	$	2,743,242	$	3,463,953	$	519,241	$	202,483	$	6,928,919

Schedule of credit risk profiles based on payment activity for loans and leases that were not subject to loan grading

	December 31, 2019
(dollars in thousands)	Residential Mortgage		Home Equity Line		Consumer		Consumer - Auto		Credit Cards		Total
Performing	$	3,759,799	$	886,879	$	219,046	$	1,016,142	$	347,264	$	6,229,130
Non-performing and delinquent		9,137		6,360		7,258		24,326		6,520		53,601
Total	$	3,768,936	$	893,239	$	226,304	$	1,040,468	$	353,784	$	6,282,731

Schedule of amortized cost basis of loans and leases on nonaccrual status

	September 30, 2020				January 1, 2020
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual		Nonaccrual
	Allowance		Loans		Loans
(dollars in thousands)	for Credit Losses		and Leases		and Leases
Commercial and industrial	$	—	$	725	$	32
Commercial real estate		6,986		7,067		30
Construction		1,840		2,043		—
Residential mortgage		2,650		7,798		5,406
Total Nonaccrual Loans and Leases	$	11,476	$	17,633	$	5,468

Schedule of total carrying amounts and total unpaid principal balances of impaired loans and leases

	December 31, 2019
			Unpaid
	Recorded		Principal		Related
(dollars in thousands)	Investment		Balance		Allowance
Impaired loans with no related allowance recorded:
Commercial and industrial	$	3,825	$	3,841	$	—
Commercial real estate		30		30		—
Residential mortgage		10,425		10,718		—
Total	$	14,280	$	14,589	$	—
Impaired loans with a related allowance recorded:
Commercial and industrial	$	1,126	$	1,126	$	46
Commercial real estate		693		693		27
Residential mortgage		4,539		4,819		130
Total	$	6,358	$	6,638	$	203
Total impaired loans:
Commercial and industrial	$	4,951	$	4,967	$	46
Commercial real estate		723		723		27
Residential mortgage		14,964		15,537		130
Total	$	20,638	$	21,227	$	203

Schedule of average balances, and of interest income recognized from, impaired loans

	Three Months Ended				Nine Months Ended
	September 30, 2019				September 30, 2019
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(dollars in thousands)	Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded:
Commercial and industrial	$	3,888	$	38	$	3,653	$	123
Commercial real estate		2,946		38		3,524		250
Residential mortgage		8,065		88		8,365		280
Consumer		100		—		50		—
Total	$	14,999	$	164	$	15,592	$	653
Impaired loans with a related allowance recorded:
Commercial and industrial	$	4,673	$	94	$	5,325	$	301
Commercial real estate		706		10		714		30
Residential mortgage		6,608		98		6,882		297
Total	$	11,987	$	202	$	12,921	$	628
Total impaired loans:
Commercial and industrial	$	8,561	$	132	$	8,978	$	424
Commercial real estate		3,652		48		4,238		280
Residential mortgage		14,673		186		15,247		577
Consumer		100		—		50		—
Total	$	26,986	$	366	$	28,513	$	1,281

Schedule of information related to loans modified in a TDR

	Three Months Ended					Nine Months Ended
	September 30, 2020					September 30, 2020
	Number of	Recorded		Related		Number of	Recorded		Related
(dollars in thousands)	Contracts	Investment(1)		Allowance		Contracts	Investment(1)		Allowance
Commercial and industrial	—	$	—	$	—	1	$	500	$	30
Total	—	$	—	$	—	1	$	500	$	30

(1) The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.

	Three Months Ended					Nine Months Ended
	September 30, 2019					September 30, 2019
	Number of	Recorded		Related		Number of	Recorded		Related
(dollars in thousands)	Contracts	Investment(1)		Allowance		Contracts	Investment(1)		Allowance
Commercial and industrial	—	$	—	$	—	4	$	588	$	26
Residential mortgage	1		609		—	2		957		13
Total	1	$	609	$	—	6	$	1,545	$	39

(1) The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.

Schedule of TDRs that defaulted in period within 12 months of their permanent modification date

	Three Months Ended			Nine Months Ended			Three Months Ended			Nine Months Ended
	September 30, 2020			September 30, 2020			September 30, 2019			September 30, 2019
	Number of	Recorded		Number of	Recorded		Number of	Recorded		Number of	Recorded
(dollars in thousands)	Contracts	Investment(1)		Contracts	Investment(1)		Contracts	Investment(1)		Contracts	Investment(1)
Commercial and industrial(2)	1	$	500	1	$	500	2	$	588	4	$	588
Residential mortgage(3)	—		—	—		—	—		—	1		348
Total	1	$	500	1	$	500	2	$	588	5	$	936

(1) The recorded investment balances reflect all partial paydowns and charge-offs since the modification date and do not include TDRs that have been fully paid off, charged off, or foreclosed upon by the end of the period.

(2) For the three and nine months ended September 30, 2020, the maturity date for the commercial and industrial loan that subsequently defaulted was extended. For the three and nine months ended September 30, 2019, the commercial and industrial loans that subsequently defaulted were temporarily modified to interest-only payments.

(3) For the nine months ended September 30, 2019, the maturity date for the residential mortgage loan that subsequently defaulted was extended.