XML 40 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Past Due Loans, Allowance For Credit Losses, Non-Accrual Loans, and TDRS (Tables)
 6 Months Ended
Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Past Due Financing Receivables
The following table presents an aging analysis of the Company's past due loans as of June 30, 2020 and December 31, 2019 with balances presented on an amortized cost basis. The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date.
Aging Analysis of Past Due Loans and Non-performing Loans by Class(1)
(Dollar amounts in thousands)
 Aging Analysis (Accruing and Non-accrual)Non-performing Loans
 Current30-89 Days
Past Due		90 Days or
More Past
Due		Total
Past Due		Total
Loans		Non-
accrual		90 Days or More Past Due, Still Accruing Interest
As of June 30, 2020       
Commercial and industrial$4,750,932  $20,550  $18,074  $38,624  $4,789,556  $28,349  $1,090  
Agricultural373,910  —  7,214  7,214  381,124  8,494  —  
Commercial real estate:  
Office, retail, and industrial1,982,798  4,973  32,547  37,520  2,020,318  35,915  596  
Multi-family870,430  1,538  2,893  4,431  874,861  3,121  —  
Construction658,892  801  27,370  28,171  687,063  27,282  88  
Other commercial real estate1,458,874  5,145  11,918  17,063  1,475,937  18,372  25  
Total commercial real estate4,970,994  12,457  74,728  87,185  5,058,179  84,690  709  
Total corporate loans,
excluding PPP loans		10,095,836  33,007  100,016  133,023  10,228,859  121,533  1,799  
PPP loans1,179,403  —  —  —  1,179,403  —  —  
Total corporate loans11,275,239  33,007  100,016  133,023  11,408,262  121,533  1,799  
Home equity885,678  2,641  4,548  7,189  892,867  9,129  187  
1-4 family mortgages2,164,611  4,928  5,783  10,711  2,175,322  8,498  —  
Installment454,996  956  1,255  2,211  457,207  —  1,255  
Total consumer loans3,505,285  8,525  11,586  20,111  3,525,396  17,627  1,442  
Total loans$14,780,524  $41,532  $111,602  $153,134  $14,933,658  $139,160  $3,241  
As of December 31, 2019       
Commercial and industrial$4,455,381  $11,468  $14,676  $26,144  $4,481,525  $29,995  $2,207  
Agricultural398,676  850  6,090  6,940  405,616  5,954  358  
Commercial real estate:       
Office, retail, and industrial1,830,321  2,943  15,454  18,397  1,848,718  25,857  546  
Multi-family853,762  211  2,580  2,791  856,553  2,697  —  
Construction588,065  4,876  152  5,028  593,093  152  —  
Other commercial real estate1,377,678  3,233  2,797  6,030  1,383,708  4,729  529  
Total commercial real estate4,649,826  11,263  20,983  32,246  4,682,072  33,435  1,075  
Total corporate loans9,503,883  23,581  41,749  65,330  9,569,213  69,384  3,640  
Home equity841,908  4,992  4,554  9,546  851,454  8,443  146  
1-4 family mortgages1,917,648  5,452  3,978  9,430  1,927,078  4,442  1,203  
Installment491,406  1,167  12  1,179  492,585  —  12  
Total consumer loans3,250,962  11,611  8,544  20,155  3,271,117  12,885  1,361  
Total loans$12,754,845  $35,192  $50,293  $85,485  $12,840,330  $82,269  $5,001  
(1) Prior to the adoption of CECL on January 1, 2020, purchased credit impaired ("PCI") loans with an accretable yield were considered current and were not included in past due loan totals. In addition, PCI loans with an accretable yield were excluded from non-accrual loans. Subsequent to adoption, PCD loans, including those previously classified as PCI, are included in past due and non-accrual loan totals. In addition, an allowance for credit losses is established as of the acquisition date or upon the adoption of CECL for loans previously classified as PCI, as PCD loans are no longer recorded net of a credit-related acquisition adjustment.
Allowance for Credit Losses on Financing Receivables A rollforward of the allowance for credit losses by portfolio segment for the quarters and six months ended June 30, 2020 and 2019 is presented in the table below. PPP loans are excluded from this table as there is no allowance for credit losses associated with these loans due to guarantees.
Allowance for Credit Losses by Portfolio Segment
(Dollar amounts in thousands)
 Commercial,
Industrial, and
Agricultural		Office,
Retail, and
Industrial		Multi-
family		ConstructionOther
Commercial
Real Estate		ConsumerAllowance for
Unfunded
Commitments		Total
Allowance for Credit Losses
Quarter Ended June 30, 2020       
Beginning balance$113,733  $25,856  $3,689  $11,297  $18,554  $46,819  $6,753  $226,701  
Allowance established
for acquired PCD
loans		378  —  —  —  —  —  872  1,250  
Charge-offs(5,673) (3,092) (9) (798) (31) (4,631) —  (14,234) 
Recoveries820  6  —  —  12  473  —  1,311  
Net charge-offs(4,853) (3,086) (9) (798) (19) (4,158) —  (12,923) 
Provision for loan
losses and other		14,719  1,671  1,631  1,023  3,327  10,278  —  32,649  
Ending balance$123,977  $24,441  $5,311  $11,522  $21,862  $52,939  $7,625  $247,677  
Quarter Ended June 30, 2019       
Beginning balance$64,685  $7,679  $2,216  $2,131  $4,930  $21,938  $1,200  $104,779  
Charge-offs(6,516) (1,605) —  —  (329) (2,974) —  (11,424) 
Recoveries1,258  151  —  10  45  619  —  2,083  
Net charge-offs(5,258) (1,454) —  10  (284) (2,355) —  (9,341) 
Provision for loan
losses and other		6,937  1,270  (57) (279) 351  3,269  —  11,491  
Ending balance$66,364  $7,495  $2,159  $1,862  $4,997  $22,852  $1,200  $106,929  
Six Months Ended June 30, 2020      
Beginning balance$62,830  $7,580  $2,950  $1,697  $6,408  $26,557  $1,200  $109,222  
Adjustment to apply
  recent accounting
  pronouncements(1)
20,159  11,686  397  10,300  11,427  16,235  5,553  75,757  
Allowance established
for acquired PCD
loans		12,640  2,003  —  —  —  39  872  15,554  
Charge-offs(12,739) (3,430) (19) (2,606) (339) (9,031) —  (28,164) 
Recoveries1,979  15  5  —  156  972  —  3,127  
Net charge-offs(10,760) (3,415) (14) (2,606) (183) (8,059) —  (25,037) 
Provision for loan
  losses and other		39,108  6,587  1,978  2,131  4,210  18,167  —  72,181  
Ending balance$123,977  $24,441  $5,311  $11,522  $21,862  $52,939  $7,625  $247,677  
Six Months Ended June 30, 2019      
Beginning balance$63,276  $7,900  $2,464  $2,173  $4,934  $21,472  $1,200  $103,419  
Charge-offs(12,967) (2,233) (340) (6) (539) (6,116) —  (22,201) 
Recoveries2,559  161  1  16  66  973  —  3,776  
Net charge-offs(10,408) (2,072) (339) 10  (473) (5,143) —  (18,425) 
Provision for loan
  losses and other		13,496  1,667  34  (321) 536  6,523  —  21,935  
Ending balance$66,364  $7,495  $2,159  $1,862  $4,997  $22,852  $1,200  $106,929  
(1) As a result of accounting guidance adopted in the first quarter of 2020, the increase in allowance for credit losses, net of tax, was recognized as a cumulative-effect adjustment to retained earnings as of January 1, 2020. For further discussion of this guidance, see Note 2, "Recent Accounting Pronouncements and Other Guidance."
Schedule of Loans and The Related Allowance For Credit Losses
The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of June 30, 2020 and December 31, 2019.
Loans and Related Allowance for Credit Losses by Portfolio Segment
(Dollar amounts in thousands)
 LoansAllowance for Credit Losses
 Individually
Evaluated		Collectively
Evaluated
PCD/PCI(1)
TotalIndividually
Evaluated		Collectively
Evaluated
PCD/PCI(1)
Total
As of June 30, 2020        
Commercial, industrial,
 agricultural		$25,190  $5,049,876  $95,614  $5,170,680  $4,805  $102,735  $16,437  $123,977  
Commercial real estate:       
Office, retail, and industrial25,165  1,956,597  38,556  2,020,318  885  14,964  8,592  24,441  
Multi-family1,785  871,545  1,531  874,861  —  5,126  185  5,311  
Construction18,611  646,355  22,097  687,063  —  4,624  6,898  11,522  
Other commercial real estate3,806  1,410,080  62,051  1,475,937  44  10,332  11,486  21,862  
Total commercial real estate49,367  4,884,577  124,235  5,058,179  929  35,046  27,161  63,136  
Total corporate loans,
excluding PPP loans		74,557  9,934,453  219,849  10,228,859  5,734  137,781  43,598  187,113  
PPP loans—  1,179,403  —  1,179,403  —  —  —  —  
Total corporate loans74,557  11,113,856  219,849  11,408,262  5,734  137,781  43,598  187,113  
Consumer23  3,502,015  23,358  3,525,396  —  52,103  836  52,939  
Allowance for unfunded
commitments		—  —  —  —  —  7,625  —  7,625  
Total loans$74,580  $14,615,871  $243,207  $14,933,658  $5,734  $197,509  $44,434  $247,677  
As of December 31, 2019        
Commercial, industrial, and
  agricultural		$34,142  $4,807,114  $45,885  $4,887,141  $3,414  $59,108  $308  $62,830  
Commercial real estate:        
Office, retail, and industrial24,820  1,795,557  28,341  1,848,718  578  6,899  103  7,580  
Multi-family1,995  851,857  2,701  856,553  —  2,854  96  2,950  
Construction123  581,747  11,223  593,093  —  1,681  16  1,697  
Other commercial real estate3,241  1,323,635  56,832  1,383,708  —  4,867  1,541  6,408  
Total commercial real estate30,179  4,552,796  99,097  4,682,072  578  16,301  1,756  18,635  
Total corporate loans64,321  9,359,910  144,982  9,569,213  3,992  75,409  2,064  81,465  
Consumer—  3,248,916  22,201  3,271,117  —  25,424  1,133  26,557  
Allowance for unfunded
commitments		—  —  —  —  —  1,200  —  1,200  
Total loans$64,321  $12,608,826  $167,183  $12,840,330  $3,992  $102,033  $3,197  $109,222  
(1)Prior to the adoption of CECL on January 1, 2020, loans that had evidence of credit deterioration since origination and for which it was probable at acquisition that the Company would not collect all contractually required principal and interest payments were classified as PCI.
Impaired Financing Receivables
The following table presents collateral-dependent loans, including PCD loans, without regard to accrual status by primary collateral type and non-accrual loans with no related allowance as of June 30, 2020. PPP loans are excluded from this table as there is no allowance for credit losses associated with these loans due to guarantees.
Collateral-dependent Loans and Non-accrual Loans With No Related Allowance by Class
(Dollar amounts in thousands)

Type of CollateralNon-accrual Loans
With No Related
Allowance
Real
Estate		Blanket
Lien		Equipment
Commercial and industrial$6,870  $45,235  $3,169  $6,338  
Agricultural3,417  4,719  —  4,485  
Commercial real estate:
Office, retail, and industrial44,538  —  —  17,293  
Multi-family2,606  —  —  1,785  
Construction28,779  —  —  19,043  
Other commercial real estate33,845  —  —  11,789  
Total commercial real estate109,768  —  —  49,910  
Total corporate loans120,055  49,954  3,169  60,733  
Home equity244  —  —  123  
1-4 family mortgages2,665  —  —  527  
Installment—  —  —  —  
Total consumer loans2,909  —  —  650  
Total loans$122,964  $49,954  $3,169  $61,383  
Loans Individually Evaluated
The following table presents loans individually evaluated by class of loan as of June 30, 2020 and December 31, 2019. PCD and PCI loans are excluded from this disclosure.
Loans Individually Evaluated by Class
(Dollar amounts in thousands)
 As of June 30, 2020As of December 31, 2019
 Recorded Investment In Recorded Investment In 
 Loans with
No Specific
Allowance		Loans with
a Specific
Allowance		Unpaid
Principal
Balance		Specific
Allowance		Loans with
No Specific
Allowance		Loans with
a Specific
Allowance		Unpaid
Principal
Balance		Specific
Allowance
Commercial and industrial$4,884  $12,170  $37,153  $3,018  $12,885  $15,516  $52,559  $2,456  
Agricultural4,485  3,651  13,032  1,787  1,889  3,852  9,293  958  
Commercial real estate:        
Office, retail, and industrial15,839  9,326  28,730  885  14,111  10,709  37,007  578  
Multi-family1,785  —  1,785  —  1,995  —  1,995  —  
Construction18,611  —  18,611  —  123  —  123  —  
Other commercial real estate3,357  449  4,103  44  3,241  —  3,495  —  
Total commercial real estate39,592  9,775  53,229  929  19,470  10,709  42,620  578  
Total corporate loans48,961  25,596  103,414  5,734  34,244  30,077  104,472  3,992  
Consumer23  —  23  —  —  —  —  —  
Total non-accrual loans
individually evaluated		$48,984  $25,596  $103,437  $5,734  $34,244  $30,077  $104,472  $3,992  
Financing Receivable Credit Quality Indicators The following tables present credit quality indicators for corporate and consumer loans on an amortized cost basis as of June 30, 2020 and net loan charge-offs for the six months ended June 30, 2020. PPP loans are excluded from this table as there is no allowance for credit losses associated with these loans due to guarantees.
Corporate Loan Portfolio by Origination Year
(Dollar amounts in thousands)
 
2020(1)
2019201820172016Prior
Revolving
Loans
Total
Commercial, industrial, agricultural:    
Pass$461,644  $887,292  $924,776  $519,875  $238,751  $469,442  $1,364,316  $4,866,096  
Special Mention(2)
3,508  6,520  31,435  4,676  8,527  17,568  80,597  152,831  
Substandard(3)
384  4,376  26,729  17,862  16,583  15,804  33,172  114,910  
Non-accrual(4)
—  1,771  2,381  8,505  4,806  6,682  12,698  36,843  
Total commercial,
industrial,
agricultural		$465,536  $899,959  $985,321  $550,918  $268,667  $509,496  $1,490,783  $5,170,680  
Commercial, industrial,
agricultural, net loan
charge-offs		$—  $250  $946  $1,058  $617  $1,853  $6,036  $10,760  
Office, retail, and industrial:
Pass$95,291  $266,479  $225,938  $348,121  $302,430  $677,880  $5,491  $1,921,630  
Special Mention(2)
1,173  655  3,280  5,091  15,439  12,914  —  38,552  
Substandard(3)
—  —  —  337  1,514  22,370  —  24,221  
Non-accrual(4)
—  —  132  —  10,238  25,545  —  35,915  
Total office, retail,
and industrial		$96,464  $267,134  $229,350  $353,549  $329,621  $738,709  $5,491  $2,020,318  
Office, retail, and
industrial net loan
charge-offs		$—  $333  $156  $—  $1,628  $1,298  $—  $3,415  
Multi-family:
Pass$125,328  $174,802  $84,791  $101,492  $101,846  $239,713  $36,111  $864,083  
Special Mention(2)
—  —  —  —  358  1,416  —  1,774  
Substandard(3)
—  —  387  81  —  5,415  —  5,883  
Non-accrual(4)
—  —  —  1,785  237  1,099  —  3,121  
Total multi-family$125,328  $174,802  $85,178  $103,358  $102,441  $247,643  $36,111  $874,861  
Multi-family net loan
charge-offs		$—  $3  $—  $1  $—  $10  $—  $14  
Construction:
Pass$33,890  $151,849  $171,480  $101,781  $71,001  $70,950  $33,016  $633,967  
Special Mention(2)
—  —  45  3,032  14,221  1,228  —  18,526  
Substandard(3)
—  —  —  —  —  7,288  —  7,288  
Non-accrual(4)
—  —  —  —  —  25,591  1,691  27,282  
Total construction$33,890  $151,849  $171,525  $104,813  $85,222  $105,057  $34,707  $687,063  
Construction net loan
charge-offs		$—  $118  $—  $798  $—  $1,690  $—  $2,606  
Other commercial real estate:
Pass$61,056  $195,768  $269,526  $226,064  $125,249  $466,436  $27,553  $1,371,652  
Special Mention(2)
—  3,532  7,589  6,887  11,219  15,463  —  44,690  
Substandard(3)
—  —  —  1,400  4,224  35,599  —  41,223  
Non-accrual(4)
—  —  674  4,150  1,078  12,377  93  18,372  
Total other
commercial real
estate		$61,056  $199,300  $277,789  $238,501  $141,770  $529,875  $27,646  $1,475,937  
Other commercial real
estate net loan charge-
offs		$—  $38  $1  $—  $183  $(39) $—  $183  
(1)Represents year-to-date loans originated during 2020.
(2)Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
(3)Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured, and collection of principal and interest is expected within a reasonable time.
(4)Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.
Consumer Loan Portfolio by Origination Year
(Dollar amounts in thousands)
 
2020(1)
2019201820172016Prior
Revolving
Loans
Total
Home equity:     
Performing$8,231  $48,696  $27,783  $13,809  $11,878  $57,053  $716,288  $883,738  
Non-accrual—  22  125  264  482  6,801  1,435  9,129  
Total home equity$8,231  $48,718  $27,908  $14,073  $12,360  $63,854  $717,723  $892,867  
Home equity net
loan charge-offs		$—  $—  $1  $—  $1  $42  $(14) $30  
1-4 family mortgages:
Performing$597,506  $676,898  $311,884  $158,230  $181,912  $240,394  $—  $2,166,824  
Non-accrual—  —  438  83  63  7,914  —  8,498  
Total 1-4 family
mortgages		$597,506  $676,898  $312,322  $158,313  $181,975  $248,308  $—  $2,175,322  
1-4 family mortgages
net loan charge-offs		$—  $—  $4  $—  $7  $735  $—  $746  
Installment:
Performing$59,971  $185,919  $107,220  $45,108  $17,563  $20,662  $20,764  $457,207  
Non-accrual—  —  —  —  —  —  —  —  
Total installment$59,971  $185,919  $107,220  $45,108  $17,563  $20,662  $20,764  $457,207  
Installment net loan
charge-offs		$44  $3,757  $2,200  $775  $85  $393  $29  $7,283  
(1)Represents year-to-date loans originated during 2020.
During the quarter and six months ended June 30, 2020, $16.8 million and $23.8 million, respectively, of revolving loans converted to term loans.
The following tables present credit quality indicators by class for corporate and consumer loans on an amortized cost basis as of December 31, 2019.
Corporate Credit Quality Indicators by Class
(Dollar amounts in thousands)
Pass
Special
Mention(1)
Substandard(2)
Non-accrual(3)
Total
As of December 31, 2019     
Commercial and industrial$4,324,709  $47,665  $79,156  $29,995  $4,481,525  
Agricultural350,827  32,764  16,071  5,954  405,616  
Commercial real estate:     
Office, retail, and industrial1,747,287  42,230  33,344  25,857  1,848,718  
Multi-family839,615  8,279  5,962  2,697  856,553  
Construction564,495  17,977  10,469  152  593,093  
Other commercial real estate1,295,155  39,788  44,036  4,729  1,383,708  
Total commercial real estate4,446,552  108,274  93,811  33,435  4,682,072  
Total corporate loans$9,122,088  $188,703  $189,038  $69,384  $9,569,213  
(1)Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
(2)Loans categorized as substandard exhibit a well-defined weakness that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured and collection of principal and interest is expected within a reasonable time.
(3)Loans categorized as non-accrual exhibit a well-defined weakness that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.
Consumer Credit Quality Indicators by Class
(Dollar amounts in thousands)
PerformingNon-accrualTotal
As of December 31, 2019   
Home equity$843,011  $8,443  $851,454  
1-4 family mortgages1,922,636  4,442  1,927,078  
Installment492,585  —  492,585  
Total consumer loans$3,258,232  $12,885  $3,271,117  
Troubled Debt Restructuring Activity Rollforward The table below presents TDRs by class as of June 30, 2020 and December 31, 2019. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDRs.
TDRs by Class
(Dollar amounts in thousands)
 As of June 30, 2020As of December 31, 2019
 Accruing
Non-accrual(1)
TotalAccruing
Non-accrual(1)
Total
Commercial and industrial$188  $9,336  $9,524  $227  $16,420  $16,647  
Agricultural—  —  —  —  —  —  
Commercial real estate:      
Office, retail, and industrial—  2,340  2,340  —  3,600  3,600  
Multi-family160  —  160  163  —  163  
Construction—  —  —  —  —  —  
Other commercial real estate198  —  198  170  —  170  
Total commercial real estate358  2,340  2,698  333  3,600  3,933  
Total corporate loans546  11,676  12,222  560  20,020  20,580  
Home equity31  179  210  36  240  276  
1-4 family mortgages624  238  862  637  —  637  
Installment—  —  —  —  254  254  
Total consumer loans655  417  1,072  673  494  1,167  
Total loans$1,201  $12,093  $13,294  $1,233  $20,514  $21,747  
(1)These TDRs are included in non-accrual loans in the preceding tables.
A rollforward of the carrying value of TDRs for the quarters and six months ended June 30, 2020 and 2019 is presented in the following table.
TDR Rollforward
(Dollar amounts in thousands)
Quarters Ended 
 June 30,		Six Months Ended 
 June 30,
2020201920202019
Accruing
Beginning balance$1,216  $1,844  $1,233  $1,866  
Additions—  —  —  12  
Net payments(15) (20) (32) (54) 
Net transfers to non-accrual—  (383) —  (383) 
Ending balance1,201  1,441  1,201  1,441  
Non-accrual
Beginning balance17,917  9,375  20,514  6,612  
Additions—  —  934  —  
Net (payments) advances(2,595) (1,447) (3,253) 1,474  
Charge-offs(3,229) (470) (6,102) (628) 
Net transfers from accruing—  383  —  383  
Ending balance12,093  7,841  12,093  7,841  
Total TDRs$13,294  $9,282  $13,294  $9,282