Loans and Leases and the Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2021

Loans And Leases And Allowance For Loan And Lease Losses [Abstract]

The Company’s loan and lease portfolio was comprised of the following as of September 30, 2021, and December 31, 2020:

(dollars in thousands)	September 30, 2021		December 31, 2020
Commercial
Commercial and Industrial	$	1,325,446	$	1,357,610
PPP ¹		268,480		517,683
Commercial Mortgage		2,994,520		2,854,829
Construction		296,052		259,798
Lease Financing		107,526		110,766
Total Commercial		4,992,024		5,100,686
Consumer
Residential Mortgage		4,272,540		4,130,513
Home Equity		1,680,229		1,604,538
Automobile		727,234		708,800
Other ²		400,723		395,483
Total Consumer		7,080,726		6,839,334
Total Loans and Leases	$	12,072,750	$	11,940,020

¹	^{The PPP amounts presented, which are reported net of deferred costs and fees, were previously included as a component of the Commercial and Industrial loan class.}

²	^{Comprised of other revolving credit, installment, and lease financing.}

Schedule of Activity in Allowance by Portfolio Segment

The following presents by portfolio segment, the activity in the Allowance for the three and nine months ended September 30, 2021, and September 30, 2020.

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended September 30, 2021
Allowance for Credit Losses:
Balance at Beginning of Period	$	78,639		$	101,746		$	180,385
Loans and Leases Charged-Off		(196	)		(3,249	)		(3,445	)
Recoveries on Loans and Leases Previously Charged-Off		118			2,134			2,252
Net Loans and Leases Recovered (Charged-Off)		(78	)		(1,115	)		(1,193	)
Provision for Credit Losses		(9,894	)		(1,378	)		(11,272	)
Balance at End of Period	$	68,667		$	99,253		$	167,920
Nine Months Ended September 30, 2021
Allowance for Credit Losses:
Balance at Beginning of Period	$	84,847		$	131,405		$	216,252
Loans and Leases Charged-Off		(900	)		(13,145	)		(14,045	)
Recoveries on Loans and Leases Previously Charged-Off		374			8,378			8,752
Net Loans and Leases Recovered (Charged-Off)		(526	)		(4,767	)		(5,293	)
Provision for Credit Losses		(15,654	)		(27,385	)		(43,039	)
Balance at End of Period	$	68,667		$	99,253		$	167,920
Three Months Ended September 30, 2020
Allowance for Credit Losses:
Balance at Beginning of Period	$	72,522		$	100,917		$	173,439
Loans and Leases Charged-Off		(171	)		(2,176	)		(2,347	)
Recoveries on Loans and Leases Previously Charged-Off		231			3,573			3,804
Net Loans and Leases Recovered (Charged-Off)		60			1,397			1,457
Provision for Credit Losses		7,685			20,915			28,600
Balance at End of Period	$	80,267		$	123,229		$	203,496
Nine Months Ended September 30, 2020
Allowance for Credit Losses:
Balance at Beginning of Period (December 31, 2020)	$	73,801		$	36,226		$	110,027
CECL Adoption (Day 1) Impact		(18,789	)		17,052			(1,737	)
Balance at Beginning of Period (January 1, 2020)		55,012			53,278			108,290
Loans and Leases Charged-Off		(1,520	)		(16,287	)		(17,807	)
Recoveries on Loans and Leases Previously Charged-Off		2,084			8,329			10,413
Net Loans and Leases Recovered (Charged-Off)		564			(7,958	)		(7,394	)
Provision for Credit Losses		24,691			77,909			102,600
Balance at End of Period	$	80,267		$	123,229		$	203,496

Schedule of Recorded Investment in Loans and Leases by Class and Credit Quality Indicator

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of September 30, 2021.

		Term Loans by Origination Year
(dollars in thousands)	YTD September 30, 2021			2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
September 30, 2021
Commercial
Commercial and Industrial
Pass		$	335,503	$	341,306	$	91,475	$	80,521	$	31,948	$	89,088	$	257,097	$	589	$	1,227,527
Special Mention			2,008		33,200		-		-		-		153		25,343		26		60,730
Classified			188		2,024		88		2,055		573		18,409		13,785		67		37,189
Total Commercial and Industrial		$	337,699	$	376,530	$	91,563	$	82,576	$	32,521	$	107,650	$	296,225	$	682	$	1,325,446
PPP
Pass		$	196,837	$	71,643	$	-	$	-	$	-	$	-	$	-	$	-	$	268,480
Total PPP		$	196,837	$	71,643	$	-	$	-	$	-	$	-	$	-	$	-	$	268,480
Commercial Mortgage
Pass		$	608,445	$	774,572	$	362,497	$	264,407	$	196,531	$	554,832	$	61,212	$	-	$	2,822,496
Special Mention			39,129		69,618		-		30,286		-		6,122		-		-		145,155
Classified			1,589		10,566		644		-		4,784		9,286		-		-		26,869
Total Commercial Mortgage		$	649,163	$	854,756	$	363,141	$	294,693	$	201,315	$	570,240	$	61,212	$	-	$	2,994,520
Construction
Pass		$	101,403	$	118,076	$	61,403	$	-	$	894	$	-	$	14,276	$	-	$	296,052
Total Construction		$	101,403	$	118,076	$	61,403	$	-	$	894	$	-	$	14,276	$	-	$	296,052
Lease Financing
Pass		$	18,997	$	15,935	$	16,836	$	10,749	$	2,586	$	41,531	$	-	$	-	$	106,634
Special Mention			-		-		-		892		-		-		-		-		892
Total Lease Financing		$	18,997	$	15,935	$	16,836	$	11,641	$	2,586	$	41,531	$	-	$	-	$	107,526
Total Commercial		$	1,304,099	$	1,436,940	$	532,943	$	388,910	$	237,316	$	719,421	$	371,713	$	682	$	4,992,024
Consumer
Residential Mortgage
Pass		$	1,120,627	$	1,173,498	$	403,404	$	201,297	$	285,312	$	1,083,359	$	-	$	-	$	4,267,497
Classified			-		-		294		-		2,281		2,468		-		-		5,043
Total Residential Mortgage		$	1,120,627	$	1,173,498	$	403,698	$	201,297	$	287,593	$	1,085,827	$	-	$	-	$	4,272,540
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	3,282	$	1,636,803	$	34,308	$	1,674,393
Classified			-		-		-		-		-		113		4,920		803		5,836
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	3,395	$	1,641,723	$	35,111	$	1,680,229
Automobile
Pass		$	233,401	$	166,682	$	155,905	$	105,933	$	40,967	$	23,952	$	-	$	-	$	726,840
Classified			26		53		87		55		17		156		-		-		394
Total Automobile		$	233,427	$	166,735	$	155,992	$	105,988	$	40,984	$	24,108	$	-	$	-	$	727,234
Other¹
Pass		$	127,788	$	54,794	$	105,858	$	55,663	$	21,442	$	6,949	$	26,151	$	1,485	$	400,130
Classified			-		93		244		95		78		10		70		3		593
Total Other		$	127,788	$	54,887	$	106,102	$	55,758	$	21,520	$	6,959	$	26,221	$	1,488	$	400,723
Total Consumer		$	1,481,842	$	1,395,120	$	665,792	$	363,043	$	350,097	$	1,120,289	$	1,667,944	$	36,599	$	7,080,726
Total Loans and Leases		$	2,785,941	$	2,832,060	$	1,198,735	$	751,953	$	587,413	$	1,839,710	$	2,039,657	$	37,281	$	12,072,750

¹	Comprised of other revolving credit, installment, and lease financing.

The following presents by credit quality indicator, loan class, and year of origination, the amortized cost basis of the Company’s loans and leases as of December 31, 2020.

		Term Loans by Origination Year
(dollars in thousands)	2020			2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
December 31, 2020
Commercial
Commercial and Industrial
Pass		$	426,780	$	149,024	$	149,468	$	49,385	$	52,354	$	68,269	$	342,339	$	847	$	1,238,466
Special Mention			11,702		42		-		-		110		95		32,319		52		44,320
Classified			32,208		1,734		2,266		777		19		19,166		18,529		125		74,824
Total Commercial and Industrial		$	470,690	$	150,800	$	151,734	$	50,162	$	52,483	$	87,530	$	393,187	$	1,024	$	1,357,610
PPP
Pass		$	517,683	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	517,683
Total PPP		$	517,683	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	517,683
Commercial Mortgage
Pass		$	847,676	$	458,472	$	350,363	$	245,157	$	267,860	$	425,157	$	76,869	$	-	$	2,671,554
Special Mention			66,523		28,418		291		7,117		8,665		5,035		-		-		116,049
Classified			49,640		655		2,783		274		4,742		9,132		-		-		67,226
Total Commercial Mortgage		$	963,839	$	487,545	$	353,437	$	252,548	$	281,267	$	439,324	$	76,869	$	-	$	2,854,829
Construction
Pass		$	106,508	$	105,731	$	11,275	$	8,133	$	-	$	-	$	28,151	$	-	$	259,798
Total Construction		$	106,508	$	105,731	$	11,275	$	8,133	$	-	$	-	$	28,151	$	-	$	259,798
Lease Financing
Pass		$	19,906	$	20,132	$	13,785	$	4,202	$	9,657	$	41,755	$	-	$	-	$	109,437
Classified			33		67		1,092		42		95		-		-		-		1,329
Total Lease Financing		$	19,939	$	20,199	$	14,877	$	4,244	$	9,752	$	41,755	$	-	$	-	$	110,766
Total Commercial		$	2,078,659	$	764,275	$	531,323	$	315,087	$	343,502	$	568,609	$	498,207	$	1,024	$	5,100,686
Consumer
Residential Mortgage
Pass		$	1,300,831	$	576,452	$	295,522	$	454,165	$	545,798	$	954,120	$	-	$	-	$	4,126,888
Classified			-		294		-		1,032		-		2,299		-		-		3,625
Total Residential Mortgage		$	1,300,831	$	576,746	$	295,522	$	455,197	$	545,798	$	956,419	$	-	$	-	$	4,130,513
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	4,449	$	1,556,671	$	37,559	$	1,598,679
Classified			-		-		-		-		-		88		4,693		1,078		5,859
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	4,537	$	1,561,364	$	38,637	$	1,604,538
Automobile
Pass		$	219,218	$	213,914	$	158,216	$	68,776	$	33,899	$	13,850	$	-	$	-	$	707,873
Classified			101		245		171		113		161		136		-		-		927
Total Automobile		$	219,319	$	214,159	$	158,387	$	68,889	$	34,060	$	13,986	$	-	$	-	$	708,800
Other¹
Pass		$	71,042	$	145,549	$	92,993	$	39,770	$	9,225	$	2,189	$	32,070	$	1,485	$	394,323
Classified			51		419		375		167		42		21		85		-		1,160
Total Other		$	71,093	$	145,968	$	93,368	$	39,937	$	9,267	$	2,210	$	32,155	$	1,485	$	395,483
Total Consumer		$	1,591,243	$	936,873	$	547,277	$	564,023	$	589,125	$	977,152	$	1,593,519	$	40,122	$	6,839,334
Total Loans and Leases		$	3,669,902	$	1,701,148	$	1,078,600	$	879,110	$	932,627	$	1,545,761	$	2,091,726	$	41,146	$	11,940,020

¹	Comprised of other revolving credit, installment, and lease financing.

Schedule of Aging Analysis by Class of Loan and Lease Portfolio

The following presents by class, an aging analysis of the Company’s loan and lease portfolio as of September 30, 2021, and December 31, 2020.

(dollars in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		Past Due 90 Days or More		Non- Accrual		Total Past Due and Non- Accrual		Current		Total Loans and Leases		Non- Accrual Loans and Leases that are Current ²
As of September 30, 2021
Commercial
Commercial and Industrial	$	130	$	1,887	$	—	$	209	$	2,226	$	1,323,220	$	1,325,446	$	172
PPP		—		—		—		—		—		268,480		268,480		—
Commercial Mortgage		—		—		—		8,309		8,309		2,986,211		2,994,520		8,309
Construction		—		—		—		—		—		296,052		296,052		—
Lease Financing		—		—		—		—		—		107,526		107,526		—
Total Commercial		130		1,887		—		8,518		10,535		4,981,489		4,992,024		8,481
Consumer
Residential Mortgage		1,074		3,253		4,776		4,348		13,451		4,259,089		4,272,540		528
Home Equity		2,219		689		2,946		5,422		11,276		1,668,953		1,680,229		1,234
Automobile		6,427		1,110		395		—		7,932		719,302		727,234		—
Other ¹		2,067		743		593		—		3,403		397,320		400,723		—
Total Consumer		11,787		5,795		8,710		9,770		36,062		7,044,664		7,080,726		1,762
Total	$	11,917	$	7,682	$	8,710	$	18,288	$	46,597	$	12,026,153	$	12,072,750	$	10,243

As of December 31, 2020
Commercial
Commercial and Industrial	$	191	$	59	$	—	$	441	$	691	$	1,356,919	$	1,357,610	$	285
PPP		—		—		—		—		—		517,683		517,683		—
Commercial Mortgage		—		—		—		8,527		8,527		2,846,302		2,854,829		4,983
Construction		—		—		—		—		—		259,798		259,798		—
Lease Financing		—		—		—		—		—		110,766		110,766		—
Total Commercial		191		59		—		8,968		9,218		5,091,468		5,100,686		5,268
Consumer
Residential Mortgage		4,049		2,083		5,274		3,223		14,629		4,115,884		4,130,513		2,100
Home Equity		3,423		3,378		3,187		3,958		13,946		1,590,592		1,604,538		987
Automobile		6,358		2,215		925		—		9,498		699,302		708,800		—
Other ¹		2,556		1,612		1,160		—		5,328		390,155		395,483		—
Total Consumer		16,386		9,288		10,546		7,181		43,401		6,795,933		6,839,334		3,087
Total	$	16,577	$	9,347	$	10,546	$	16,149	$	52,619	$	11,887,401	$	11,940,020	$	8,355

¹	Comprised of other revolving credit, installment, and lease financing.

²	Represents non-accrual loans that are not past due 30 days or more; however, full payment of principal and interest is still not expected.

Schedule of Non-Accrual Loans and Leases

The following presents the non-accrual loans and leases as of September 30, 2021, and December 31, 2020.

	September 30, 2021						December 31, 2020
(dollars in thousands)	Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans		Non-accrual loans with a related ACL		Non-accrual loans without a related ACL		Total Non- accrual loans
Commercial
Commercial and Industrial	$	209	$	—	$	209	$	441	$	—	$	441
Commercial Mortgage		4,765		3,544		8,309		8,527		—		8,527
Total Commercial		4,974		3,544		8,518		8,968		—		8,968
Consumer
Residential Mortgage		3,989		359		4,348		3,096		127		3,223
Home Equity		5,422		—		5,422		3,958		—		3,958
Total Consumer		9,411		359		9,770		7,054		127		7,181
Total	$	14,385	$	3,903	$	18,288	$	16,022	$	127	$	16,149

Schedule of Loans Modified in TDR and TDRs that Defaulted During the Period Within 12 months of Modification Date

The following presents by class, information related to loans modified in a TDR during the three and nine months ended September 30, 2021, and September 30, 2020.

	Loans Modified as a TDR for the Three Months Ended September 30, 2021						Loans Modified as a TDR for the Three Months Ended September 30, 2020
			Recorded		Increase in				Recorded		Increase in
Troubled Debt Restructurings			Investment		Allowance				Investment		Allowance
(dollars in thousands)	Number of Contracts		(as of period end)¹		(as of period end)		Number of Contracts		(as of period end)¹		(as of period end)
Commercial
Commercial and Industrial		2	$	153	$	2		—	$	—	$	—
Construction		—		—		—		1		92		1
Total Commercial		2		153		2		1		92		1
Consumer
Residential Mortgage		2		796		21		—		—		—
Home Equity		2		779		46		2		134		—
Automobile		71		1,632		22		12		227		4
Other ²		51		439		16		7		93		4
Total Consumer		126		3,646		105		21		454		8
Total		128	$	3,799	$	107		22	$	546	$	9

¹	The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included.

²	Comprised of other revolving credit and installment financing.

	Loans Modified as a TDR for the Nine Months Ended September 30, 2021						Loans Modified as a TDR for the Nine Months Ended September 30, 2020
			Recorded		Increase in				Recorded		Increase in
Troubled Debt Restructurings			Investment		Allowance				Investment		Allowance
(dollars in thousands)	Number of Contracts		(as of period end)¹		(as of period end)		Number of Contracts		(as of period end)¹		(as of period end)
Commercial
Commercial and Industrial		7	$	258	$	4		3	$	188	$	3
Construction		—		—		—		1		1,099		—
Total Commercial		7		258		4		4		1,287		3
Consumer
Residential Mortgage		14		5,785		584		—		—		—
Home Equity		9		1,488		80		2		134		—
Automobile		331		6,902		95		81		1,346		22
Other ²		144		1,321		48		42		357		15
Total Consumer		498		15,496		807		125		1,837		37
Total		505	$	15,754	$	811		129	$	3,124	$	40

¹ The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included.

²	Comprised of other revolving credit and installment financing.

The following presents by class, all loans modified in a TDR that defaulted during the three and nine months ended September 30, 2021, and September 30, 2020, and within twelve months of their modification date. A TDR is considered to be in default once it becomes 60 days or more past due following a modification.

	Three Months Ended September 30, 2021				Three Months Ended September 30, 2020
TDRs that Defaulted During the Period,			Recorded				Recorded
Within Twelve Months of their Modification Date	Number of		Investment		Number of		Investment
(dollars in thousands)	Contracts		(as of period end)¹		Contracts		(as of period end)¹
Consumer
Automobile		8	$	157		1	$	6
Other ²		5		27		0		0
Total Consumer		13		184		1		6
Total		13	$	184		1	$	6

	Nine Months Ended September 30, 2021				Nine Months Ended September 30, 2020
TDRs that Defaulted During the Period,			Recorded				Recorded
Within Twelve Months of their Modification Date	Number of		Investment		Number of		Investment
(dollars in thousands)	Contracts		(as of period end)¹		Contracts		(as of period end)¹
Consumer
Residential Mortgage		1	$	528		—	$	—
Automobile		12		213		33		591
Other ²		12		112		6		38
Total Consumer		25		853		39		629
Total		25	$	853		39	$	629

¹	The period end balances reflect all paydowns and charge-offs since the modification date. TDRs fully paid-off, charged-off, or foreclosed upon by period end are not included.

²	Comprised of other revolving credit and installment financing.