Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2021

Allowance for Credit Losses

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

	Three Months Ended September 30, 2021
	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	$	23,063	$	47,033	$	10,152	$	3,067	$	34,208	$	6,250	$	45,375	$	169,148
Charge-offs		(224)		—		—		—		—		(235)		(2,926)		(3,385)
Recoveries		121		15		—		—		215		27		2,405		2,783
Increase (decrease) in Provision		796		(3,449)		(398)		(833)		(655)		(325)		(2,436)		(7,300)
Balance at end of period	$	23,756	$	43,599	$	9,754	$	2,234	$	33,768	$	5,717	$	42,418	$	161,246

	Nine Months Ended September 30, 2021
	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	$	24,711	$	58,123	$	10,039	$	3,298	$	40,461	$	7,163	$	64,659	$	208,454
Charge-offs		(1,517)		(66)		—		—		(98)		(235)		(13,384)		(15,300)
Recoveries		623		30		166		—		246		89		7,857		9,011
Decrease in Provision		(61)		(14,488)		(451)		(1,064)		(6,841)		(1,300)		(16,714)		(40,919)
Balance at end of period	$	23,756	$	43,599	$	9,754	$	2,234	$	33,768	$	5,717	$	42,418	$	161,246

	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

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

	Three Months Ended September 30, 2021
	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	$	12,808	$	978	$	7,873	$	—	$	—	$	7,521	$	42	$	29,222
Increase in Provision		446		255		902		—		—		1,669		28		3,300
Balance at end of period	$	13,254	$	1,233	$	8,775	$	—	$	—	$	9,190	$	70	$	32,522

	Nine Months Ended September 30, 2021
	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	$	11,719	$	1,328	$	9,037	$	—	$	2	$	8,452	$	65	$	30,603
Increase (decrease) in Provision		1,535		(95)		(262)		—		(2)		738		5		1,919
Balance at end of period	$	13,254	$	1,233	$	8,775	$	—	$	—	$	9,190	$	70	$	32,522

	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 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, 2021 was as follows:

															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
													Amortized		Amortized
(dollars in thousands)	2021		2020		2019		2018		2017		Prior		Cost Basis		Cost Basis		Total
Commercial Lending
Commercial and Industrial
Risk rating:
Pass	$	633,079	$	172,147	$	162,921	$	128,968	$	31,439	$	194,494	$	578,257	$	21,767	$	1,923,072
Special Mention		5,421		4,709		104,973		4,083		1,069		4,292		23,127		289		147,963
Substandard		371		1,663		2,102		13,874		97		8,285		19,162		1,307		46,861
Other (1)		10,257		7,897		8,955		5,364		2,740		573		41,702		—		77,488
Total Commercial and Industrial		649,128		186,416		278,951		152,289		35,345		207,644		662,248		23,363		2,195,384
Commercial Real Estate
Risk rating:
Pass		493,286		342,433		578,079		522,123		429,840		967,286		59,685		—		3,392,732
Special Mention		—		1,472		48,916		16,054		28,264		56,319		7,604		—		158,629
Substandard		—		—		—		1,907		258		15,578		502		—		18,245
Other (1)		—		—		—		—		—		162		—		—		162
Total Commercial Real Estate		493,286		343,905		626,995		540,084		458,362		1,039,345		67,791		—		3,569,768
Construction
Risk rating:
Pass		57,368		94,127		285,960		151,714		63,031		67,670		58,013		—		777,883
Special Mention		—		—		473		708		—		359		—		—		1,540
Substandard		—		—		—		369		—		850		—		—		1,219
Other (1)		19,268		10,753		4,367		4,955		2,710		2,581		802		—		45,436
Total Construction		76,636		104,880		290,800		157,746		65,741		71,460		58,815		—		826,078
Lease Financing
Risk rating:
Pass		26,419		64,989		53,457		10,371		15,819		58,940		—		—		229,995
Special Mention		523		282		501		182		27		201		—		—		1,716
Substandard		—		2,720		1,506		225		1,037		490		—		—		5,978
Total Lease Financing		26,942		67,991		55,464		10,778		16,883		59,631		—		—		237,689
Total Commercial Lending	$	1,245,992	$	703,192	$	1,252,210	$	860,897	$	576,331	$	1,378,080	$	788,854	$	23,363	$	6,828,919

(continued)

															Revolving
															Loans
															Converted
	Term Loans												Revolving		to Term
	Amortized Cost Basis by Origination Year												Loans		Loans
(continued)													Amortized		Amortized
(dollars in thousands)	2021		2020		2019		2018		2017		Prior		Cost Basis		Cost Basis		Total
Residential Lending
Residential Mortgage
FICO:
740 and greater	$	804,889	$	661,402	$	306,706	$	209,819	$	270,664	$	879,063	$	—	$	—	$	3,132,543
680 - 739		104,415		79,553		52,470		36,440		40,109		141,178		—		—		454,165
620 - 679		14,479		11,825		6,941		5,683		10,341		41,481		—		—		90,750
550 - 619		231		818		193		2,059		1,428		7,378		—		—		12,107
Less than 550		—		—		—		490		2,533		3,127		—		—		6,150
No Score (3)		13,307		8,559		15,727		20,112		18,265		46,312		—		—		122,282
Other (2)		18,701		17,823		10,835		11,779		18,988		17,737		625		147		96,635
Total Residential Mortgage		956,022		779,980		392,872		286,382		362,328		1,136,276		625		147		3,914,632
Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		637,131		2,220		639,351
680 - 739		—		—		—		—		—		—		150,452		3,485		153,937
620 - 679		—		—		—		—		—		—		38,987		1,709		40,696
550 - 619		—		—		—		—		—		—		10,433		1,473		11,906
Less than 550		—		—		—		—		—		—		2,260		70		2,330
No Score (3)		—		—		—		—		—		—		3,854		—		3,854
Total Home Equity Line		—		—		—		—		—		—		843,117		8,957		852,074
Total Residential Lending		956,022		779,980		392,872		286,382		362,328		1,136,276		843,742		9,104		4,766,706
Consumer Lending
FICO:
740 and greater		130,773		88,770		88,797		65,818		30,908		11,516		107,938		245		524,765
680 - 739		72,447		63,996		65,105		41,209		21,461		8,912		68,887		717		342,734
620 - 679		27,131		28,491		33,219		22,225		15,042		6,825		30,956		1,398		165,287
550 - 619		3,181		8,735		15,408		12,262		9,546		4,829		10,150		1,177		65,288
Less than 550		341		3,200		6,116		4,665		3,196		1,757		2,983		578		22,836
No Score (3)		1,155		60		81		46		77		3		34,234		420		36,076
Other (2)		709		368		1,735		30		2,183		38		76,665		—		81,728
Total Consumer Lending		235,737		193,620		210,461		146,255		82,413		33,880		331,813		4,535		1,238,714
Total Loans and Leases	$	2,437,751	$	1,676,792	$	1,855,543	$	1,293,534	$	1,021,072	$	2,548,236	$	1,964,409	$	37,002	$	12,834,339

(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.

The amortized cost basis by year of origination and credit quality indicator of the Company’s loans and leases as of December 31, 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	$	873,639	$	324,030	$	183,329	$	73,000	$	49,886	$	94,360	$	1,058,786	$	28,853	$	2,685,883
Special Mention		20,937		10,370		20,164		2,099		279		8,316		101,183		1,549		164,897
Substandard		23,804		2,023		2,568		677		4,063		8,113		33,775		250		75,273
Other (1)		13,142		13,426		9,246		5,337		1,867		280		50,156		—		93,454
Total Commercial and Industrial		931,522		349,849		215,307		81,113		56,095		111,069		1,243,900		30,652		3,019,507
Commercial Real Estate
Risk rating:
Pass		342,845		611,243		541,104		447,366		295,426		814,398		47,604		323		3,100,309
Special Mention		1,500		63,617		26,187		33,482		37,841		61,279		2,999		—		226,905
Substandard		29		3,964		18,983		3,779		10,615		18,083		9,511		—		64,964
Other (1)		—		—		—		—		—		498		—		—		498
Total Commercial Real Estate		344,374		678,824		586,274		484,627		343,882		894,258		60,114		323		3,392,676
Construction
Risk rating:
Pass		53,931		233,730		202,808		83,792		23,171		41,536		28,386		—		667,354
Special Mention		—		508		707		4,717		—		9,172		—		—		15,104
Substandard		—		—		541		1,840		521		989		—		—		3,891
Other (1)		16,578		16,393		7,775		3,685		1,800		2,656		583		—		49,470
Total Construction		70,509		250,631		211,831		94,034		25,492		54,353		28,969		—		735,819
Lease Financing
Risk rating:
Pass		79,064		60,717		13,669		17,207		3,010		61,266		—		—		234,933
Special Mention		950		892		311		1,300		351		295		—		—		4,099
Substandard		2,708		1,677		327		1,141		—		526		—		—		6,379
Total Lease Financing		82,722		63,286		14,307		19,648		3,361		62,087		—		—		245,411
Total Commercial Lending	$	1,429,127	$	1,342,590	$	1,027,719	$	679,422	$	428,830	$	1,121,767	$	1,332,983	$	30,975	$	7,393,413

(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	$	728,807	$	384,248	$	290,484	$	361,297	$	314,971	$	830,795	$	—	$	—	$	2,910,602
680 - 739		85,151		53,090		44,616		50,703		39,230		144,537		—		—		417,327
620 - 679		15,767		7,604		11,460		9,628		7,982		43,393		—		—		95,834
550 - 619		—		1,971		2,818		2,920		4,474		10,144		—		—		22,327
Less than 550		—		861		593		2,916		594		2,138		—		—		7,102
No Score (3)		13,823		18,861		21,214		21,821		14,355		45,147		—		—		135,221
Other (2)		21,011		15,860		18,540		22,677		9,550		13,426		578		163		101,805
Total Residential Mortgage		864,559		482,495		389,725		471,962		391,156		1,089,580		578		163		3,690,218
Home Equity Line
FICO:
740 and greater		—		—		—		—		—		—		608,282		2,163		610,445
680 - 739		—		—		—		—		—		—		159,886		3,155		163,041
620 - 679		—		—		—		—		—		—		44,005		1,571		45,576
550 - 619		—		—		—		—		—		—		11,644		884		12,528
Less than 550		—		—		—		—		—		—		5,159		330		5,489
No Score (3)		—		—		—		—		—		—		4,545		—		4,545
Total Home Equity Line		—		—		—		—		—		—		833,521		8,103		841,624
Total Residential Lending		864,559		482,495		389,725		471,962		391,156		1,089,580		834,099		8,266		4,531,842
Consumer Lending
FICO:
740 and greater		113,373		122,965		99,678		54,691		24,029		6,034		114,748		275		535,793
680 - 739		83,316		90,853		66,143		36,426		16,358		4,985		76,391		773		375,245
620 - 679		40,469		48,904		33,917		24,705		11,144		3,788		36,622		1,221		200,770
550 - 619		9,125		20,274		17,693		15,126		7,825		2,883		12,980		1,458		87,364
Less than 550		3,017		10,139		9,189		6,517		3,123		1,118		5,261		799		39,163
No Score (3)		339		103		64		109		10		—		33,854		356		34,835
Other (2)		380		1,890		73		2,214		45		6,768		69,302		—		80,672
Total Consumer Lending		250,019		295,128		226,757		139,788		62,534		25,576		349,158		4,882		1,353,842
Total Loans and Leases	$	2,543,705	$	2,120,213	$	1,644,201	$	1,291,172	$	882,520	$	2,236,923	$	2,516,240	$	44,123	$	13,279,097

(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 revolving loans that were converted to term loans

	Three Months Ended
(dollars in thousands)	September 30, 2021
Commercial and industrial	$	195
Home equity line		560
Consumer		422
Total Revolving Loans Converted to Term Loans During the Period	$	1,177

	Nine Months Ended
(dollars in thousands)	September 30, 2021
Commercial and industrial	$	454
Home equity line		2,177
Consumer		1,358
Total Revolving Loans Converted to Term Loans During the Period	$	3,989

	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 aging analyses of past due loans and leases

	September 30, 2021
	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	$	1,243	$	255	$	1,028	$	2,526	$	2,192,858	$	2,195,384	$	439
Commercial real estate		19,359		—		—		19,359		3,550,409		3,569,768		—
Construction		—		—		—		—		826,078		826,078		—
Lease financing		—		—		—		—		237,689		237,689		—
Residential mortgage		4,415		2,086		3,844		10,345		3,904,287		3,914,632		100
Home equity line		2,107		345		3,871		6,323		845,751		852,074		3,871
Consumer		12,904		1,923		1,376		16,203		1,222,511		1,238,714		1,376
Total	$	40,028	$	4,609	$	10,119	$	54,756	$	12,779,583	$	12,834,339	$	5,786

	December 31, 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	$	2,585	$	604	$	2,626	$	5,815	$	3,013,692	$	3,019,507	$	2,108
Commercial real estate		75		2,568		963		3,606		3,389,070		3,392,676		882
Construction		779		376		2,137		3,292		732,527		735,819		93
Lease financing		—		—		—		—		245,411		245,411		—
Residential mortgage		3,382		4,125		3,372		10,879		3,679,339		3,690,218		—
Home equity line		1,375		743		4,818		6,936		834,688		841,624		4,818
Consumer		18,492		5,205		3,266		26,963		1,326,879		1,353,842		3,266
Total	$	26,688	$	13,621	$	17,182	$	57,491	$	13,221,606	$	13,279,097	$	11,167

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

	September 30, 2021
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	—	$	746
Commercial real estate		745		745
Residential mortgage		1,851		7,137
Total Nonaccrual Loans and Leases	$	2,596	$	8,628

	December 31, 2020
	Nonaccrual
	Loans
	and Leases
	With No		Nonaccrual
	Allowance		Loans
(dollars in thousands)	for Credit Losses		and Leases
Commercial and industrial	$	—	$	518
Commercial real estate		—		80
Construction		1,840		2,043
Residential mortgage		1,316		6,441
Total Nonaccrual Loans and Leases	$	3,156	$	9,082

Schedule of information related to loans modified in a TDR

	Three Months Ended					Nine Months Ended
	September 30, 2021					September 30, 2021
	Number of	Recorded		Related		Number of	Recorded		Related
(dollars in thousands)	Contracts	Investment(1)		ACL		Contracts	Investment(1)		ACL
Commercial and industrial	—	$	—	$	—	13	$	1,946	$	127
Commercial real estate	—		—		—	1		365		75
Construction	—		—		—	2		699		79
Residential mortgage	—		—		—	13		5,582		213
Consumer	150		1,950		247	1,671		15,916		2,128
Total	150	$	1,950	$	247	1,700	$	24,508	$	2,622

	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)		ACL
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.

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, 2021			September 30, 2021			September 30, 2020			September 30, 2020
	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	$	265	3	$	613	1	$	500	1	$	500
Construction	—		—	1		359	—		—	—		—
Commercial real estate	1		500	1		500	—		—	—		—
Residential mortgage	2		596	3		884	—		—	—		—
Consumer	230		3,258	314		4,366	—		—	—		—
Total	235	$	4,619	322	$	6,722	1	$	500	1	$	500

(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.