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Past Due Loans, Allowance For Credit Losses, Non-Accrual Loans, and TDRS
 3 Months Ended
Mar. 31, 2021
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Past Due Loans, Allowance For Credit Losses, Non-Accrual Loans, and TDRS PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, NON-ACCRUAL LOANS, AND TDRS
Past Due and Non-accrual Loans
The following table presents an aging analysis of the Company's past due loans as of March 31, 2021 and December 31, 2020 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
(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 March 31, 2021       
Commercial and industrial$4,505,307 $4,468 $36,542 $41,010 $4,546,317 $62,685 $1,667 
Agricultural352,017 1,264 2,602 3,866 355,883 8,684 — 
Commercial real estate:  
Office, retail, and industrial1,779,661 19,356 28,099 47,455 1,827,116 29,912 1,277 
Multi-family901,334 540 4,250 4,790 906,124 4,504 — 
Construction609,412 — 4,609 4,609 614,021 4,981 — 
Other commercial real estate1,439,517 5,095 18,970 24,065 1,463,582 25,364 724 
Total commercial real estate4,729,924 24,991 55,928 80,919 4,810,843 64,761 2,001 
Total corporate loans,
  excluding PPP loans		9,587,248 30,723 95,072 125,795 9,713,043 136,130 3,668 
PPP loans1,109,442 — — — 1,109,442 — — 
Total corporate loans10,696,690 30,723 95,072 125,795 10,822,485 136,130 3,668 
Home equity681,618 3,367 5,045 8,412 690,030 10,542 794 
1-4 family mortgages3,175,416 3,452 8,198 11,650 3,187,066 11,712 — 
Installment482,487 566 892 1,458 483,945 — 892 
Total consumer loans4,339,521 7,385 14,135 21,520 4,361,041 22,254 1,686 
Total loans$15,036,211 $38,108 $109,207 $147,315 $15,183,526 $158,384 $5,354 
As of December 31, 2020       
Commercial and industrial$4,530,546 $9,254 $38,454 $47,708 $4,578,254 $42,965 $591 
Agricultural359,373 705 3,960 4,665 364,038 10,719 — 
Commercial real estate:       
Office, retail, and industrial1,827,891 3,961 29,916 33,877 1,861,768 34,224 257 
Multi-family867,815 2,510 2,488 4,998 872,813 2,488 — 
Construction606,934 1,154 4,523 5,677 612,611 4,980 1,065 
Other commercial real estate1,448,258 15,015 18,703 33,718 1,481,976 25,824 434 
Total commercial real estate4,750,898 22,640 55,630 78,270 4,829,168 67,516 1,756 
Total corporate loans,
  excluding PPP loans		9,640,817 32,599 98,044 130,643 9,771,460 121,200 2,347 
PPP loans785,563 — — — 785,563 — — 
Total corporate loans10,426,380 32,599 98,044 130,643 10,557,023 121,200 2,347 
Home equity750,263 5,563 5,899 11,462 761,725 10,795 956 
1-4 family mortgages3,009,564 5,296 7,553 12,849 3,022,413 10,530 115 
Installment404,831 4,263 977 5,240 410,071 — 977 
Total consumer loans4,164,658 15,122 14,429 29,551 4,194,209 21,325 2,048 
Total loans$14,591,038 $47,721 $112,473 $160,194 $14,751,232 $142,525 $4,395 
Allowance for Credit Losses
The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb estimated losses expected in the existing loan portfolio. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for the allowance for credit losses. A rollforward of the allowance for credit losses by portfolio segment for the quarters ended March 31, 2021 and 2020 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 because they are fully guaranteed by the U.S. Small Business Administration ("SBA").
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 March 31, 2021       
Beginning balance$119,954 $24,078 $5,709 $6,674 $24,309 $58,293 $8,025 $247,042 
Charge-offs(2,841)(4,477)— — (486)(3,513)— (11,317)
Recoveries738 100 5 — 115 603 — 1,561 
Net charge-offs(2,103)(4,377)5 — (371)(2,910)— (9,756)
Provision for loan
  losses and other		7,947 2,951 (2,144)(759)(2,733)836 — 6,098 
Ending balance$125,798 $22,652 $3,570 $5,915 $21,205 $56,219 $8,025 $243,384 
Quarter Ended March 31, 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		12,262 2,003 — — — 39 — 14,304 
Charge-offs(7,066)(338)(10)(1,808)(308)(4,400)— (13,930)
Recoveries1,159 9 5 — 144 499 — 1,816 
Net charge-offs(5,907)(329)(5)(1,808)(164)(3,901)— (12,114)
Provision for loan
  losses and other		24,389 4,916 347 1,108 883 7,889 — 39,532 
Ending balance$113,733 $25,856 $3,689 $11,297 $18,554 $46,819 $6,753 $226,701 
(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.
The allowance for credit losses increased from December 31, 2019 primarily due to the adoption of current expected credit losses ("CECL") and the estimated impact of the pandemic on the allowance for credit losses, which considers multiple macroeconomic scenarios of stressed GDP, unemployment, and housing price index, detailed portfolio reviews of elevated risk sectors, and the effects of governmental responses to the pandemic.
The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of March 31, 2021 and December 31, 2020.
Loans and Related Allowance for Credit Losses by Portfolio Segment
(Dollar amounts in thousands)
 LoansAllowance for Credit Losses
 Individually
Evaluated		Collectively
Evaluated		PCDTotalIndividually
Evaluated		Collectively
Evaluated		PCDTotal
As of March 31, 2021        
Commercial, industrial,
  agricultural		$64,832 $4,776,188 $61,180 $4,902,200 $16,013 $102,104 $7,681 $125,798 
Commercial real estate:       
Office, retail, and industrial22,290 1,762,299 42,527 1,827,116 672 14,953 7,027 22,652 
Multi-family3,448 896,005 6,671 906,124 — 3,316 254 3,570 
Construction1,154 596,719 16,148 614,021 — 4,201 1,714 5,915 
Other commercial real estate13,841 1,397,674 52,067 1,463,582 204 10,190 10,811 21,205 
Total commercial real estate40,733 4,652,697 117,413 4,810,843 876 32,660 19,806 53,342 
Total corporate loans,
  excluding PPP loans		105,565 9,428,885 178,593 9,713,043 16,889 134,764 27,487 179,140 
PPP loans— 1,109,442 — 1,109,442 — — — — 
Total corporate loans105,565 10,538,327 178,593 10,822,485 16,889 134,764 27,487 179,140 
Consumer— 4,339,885 21,156 4,361,041 — 55,627 592 56,219 
Allowance for unfunded
  commitments		— — — — — 8,025 — 8,025 
Total loans$105,565 $14,878,212 $199,749 $15,183,526 $16,889 $198,416 $28,079 $243,384 
As of December 31, 2020        
Commercial, industrial, and
  agricultural		$45,650 $4,826,017 $70,625 $4,942,292 $3,536 $107,763 $8,655 $119,954 
Commercial real estate:       
Office, retail, and industrial26,384 1,792,618 42,766 1,861,768 1,123 15,106 7,849 24,078 
Multi-family1,279 864,677 6,857 872,813 — 5,438 271 5,709 
Construction1,154 595,550 15,907 612,611 — 4,535 2,139 6,674 
Other commercial real estate13,736 1,414,541 53,699 1,481,976 171 12,651 11,487 24,309 
Total commercial real estate42,553 4,667,386 119,229 4,829,168 1,294 37,730 21,746 60,770 
Total corporate loans,
  excluding PPP loans		88,203 9,493,403 189,854 9,771,460 4,830 145,493 30,401 180,724 
PPP loans— 785,563 — 785,563 — — — — 
Total corporate loans88,203 10,278,966 189,854 10,557,023 4,830 145,493 30,401 180,724 
Consumer— 4,172,042 22,167 4,194,209 — 57,567 726 58,293 
Allowance for unfunded
  commitments		— — — — — 8,025 — 8,025 
Total loans$88,203 $14,451,008 $212,021 $14,751,232 $4,830 $211,085 $31,127 $247,042 
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 March 31, 2021 and December 31, 2020. PPP loans are excluded from this table as there is no allowance for credit losses associated with these loans because they are fully guaranteed by the SBA.
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
As of March 31, 2021
Commercial and industrial$26,385 $41,417 $1,607 $12,266 
Agricultural7,789 645 — 5,239 
Commercial real estate:
Office, retail, and industrial35,344 — — 20,313 
Multi-family4,251 — — 3,448 
Construction5,368 — — 1,842 
Other commercial real estate38,477 — — 20,149 
Total commercial real estate83,440 — — 45,752 
Total corporate loans117,614 42,062 1,607 63,257 
Home equity206 — — 99 
1-4 family mortgages1,700 — — 606 
Installment— — — — 
Total consumer loans1,906 — — 705 
Total loans$119,520 $42,062 $1,607 $63,962 
As of December 31, 2020
Commercial and industrial$27,007 $35,632 $2,555 $36,686 
Agricultural8,583 1,737 — 5,213 
Commercial real estate:
Office, retail, and industrial42,790 — — 23,508 
Multi-family2,097 — — 1,279 
Construction5,370 — — 1,831 
Other commercial real estate40,430 — — 20,158 
Total commercial real estate90,687 — — 46,776 
Total corporate loans126,277 37,369 2,555 88,675 
Home equity211 — — 99 
1-4 family mortgages2,807 — — 578 
Installment— — — — 
Total consumer loans3,018 — — 677 
Total loans$129,295 $37,369 $2,555 $89,352 
Loans Individually Evaluated
The following table presents loans individually evaluated by class of loan as of March 31, 2021 and December 31, 2020. PCD loans are excluded from this disclosure.
Loans Individually Evaluated by Class
(Dollar amounts in thousands)
 As of March 31, 2021As of December 31, 2020
 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$9,330 $47,068 $61,205 $14,695 $33,643 $1,687 $40,055 $398 
Agricultural5,239 3,195 13,626 1,318 5,213 5,107 14,972 3,138 
Commercial real estate:        
Office, retail, and industrial18,756 3,534 29,177 672 21,537 4,847 30,474 1,123 
Multi-family3,448 — 3,458 — 1,279 — 1,279 — 
Construction1,154 — 1,154 — 1,154 — 1,507 — 
Other commercial real estate12,977 864 14,512 204 12,822 914 14,240 171 
Total commercial real estate36,335 4,398 48,301 876 36,792 5,761 47,500 1,294 
Total corporate loans50,904 54,661 123,132 16,889 75,648 12,555 102,527 4,830 
Consumer— — — — — — — — 
Total non-accrual loans
  individually evaluated		$50,904 $54,661 $123,132 $16,889 $75,648 $12,555 $102,527 $4,830 
Interest income recognized on non-accrual loans using the cash basis of accounting for the quarters ended March 31, 2021 and 2020 was $277,000 and $278,000, respectively.
Credit Quality Indicators
Corporate loans and commitments are assessed for credit risk and assigned ratings based on various characteristics, such as the borrower's cash flow, leverage, and collateral. Ratings for commercial credits are reviewed at least annually or more often if events or circumstances arise that could impact the rating. The following tables present credit quality indicators for corporate and consumer loans on an amortized cost basis as of March 31, 2021 and net loan charge-offs for the three months ended March 31, 2021. PPP loans are excluded from this table as there is no allowance for credit losses associated with these loans because they are fully guaranteed by the SBA. For a summary of credit quality indicators as of December 31, 2020, see Note 7, "Past Due Loans, Allowance for Credit Losses, Impaired Loans, and TDRs," in the Company's 2020 10-K.
Corporate Loan Portfolio by Origination Year
(Dollar amounts in thousands)
 
2021(1)
2020201920182017Prior
Revolving
Loans
Total
Commercial, industrial, agricultural:    
Pass$233,288 $708,511 $767,805 $691,360 $409,388 $533,186 $1,145,746 $4,489,284 
Special Mention(2)
1,350 3,181 42,072 50,693 3,558 25,695 45,697 172,246 
Substandard(3)
545 3,209 20,388 64,431 16,944 38,406 25,378 169,301 
Non-accrual(4)
— 457 3,967 23,314 3,417 12,691 27,523 71,369 
Total commercial,
  industrial,
  agricultural		$235,183 $715,358 $834,232 $829,798 $433,307 $609,978 $1,244,344 $4,902,200 
Commercial, industrial,
  agricultural, net loan
  charge-offs		$— $(6)$412 $(20)$1,187 $286 $244 $2,103 
Office, retail, and industrial:
Pass$33,342 $165,674 $230,623 $181,415 $257,201 $826,112 $11,036 $1,705,403 
Special Mention(2)
— 636 2,940 5,573 7,030 32,658 — 48,837 
Substandard(3)
— — — 7,900 3,344 31,720 — 42,964 
Non-accrual(4)
— — — 131 172 29,609 — 29,912 
Total office, retail,
  and industrial		$33,342 $166,310 $233,563 $195,019 $267,747 $920,099 $11,036 $1,827,116 
Office, retail, and
  industrial net loan
  charge-offs		$— $— $262 $— $1,023 $3,092 $— $4,377 
Multi-family:
Pass$27,958 $152,216 $162,665 $79,970 $124,297 $288,768 $19,825 $855,699 
Special Mention(2)
— — — 9,935 — 30,483 — 40,418 
Substandard(3)
— — — 381 74 5,048 — 5,503 
Non-accrual(4)
— — — — 1,254 3,250 — 4,504 
Total multi-family$27,958 $152,216 $162,665 $90,286 $125,625 $327,549 $19,825 $906,124 
Multi-family net loan
  charge-offs		$— $— $— $— $— $(5)$— $(5)
Construction:
Pass$17,156 $105,018 $102,168 $191,422 $75,003 $89,710 $22,032 $602,509 
Special Mention(2)
— — — 41 — 159 — 200 
Substandard(3)
— — — — 1,850 4,481 — 6,331 
Non-accrual(4)
— — — — 1,154 2,182 1,645 4,981 
Total construction$17,156 $105,018 $102,168 $191,463 $78,007 $96,532 $23,677 $614,021 
Construction net loan
  charge-offs		$— $— $— $— $— $— $— $— 
Other commercial real estate:
Pass$77,158 $172,817 $179,855 $196,736 $162,093 $409,341 $27,855 $1,225,855 
Special Mention(2)
— — — 13,743 28,455 51,664 — 93,862 
Substandard(3)
— — 3,111 30,369 16,641 68,138 242 118,501 
Non-accrual(4)
— — — 764 1,570 22,859 171 25,364 
Total other
  commercial real
  estate		$77,158 $172,817 $182,966 $241,612 $208,759 $552,002 $28,268 $1,463,582 
Other commercial real
  estate net loan charge-
  offs		$— $— $— $— $— $371 $— $371 
(1)Represents year-to-date loans originated during 2021.
(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)
 
2021(1)
2020201920182017Prior
Revolving
Loans
Total
Home equity:     
Performing$2,449 $11,893 $10,023 $12,281 $9,923 $57,923 $574,996 $679,488 
Non-accrual— 4 22 481 230 7,449 2,356 10,542 
Total home equity$2,449 $11,897 $10,045 $12,762 $10,153 $65,372 $577,352 $690,030 
Home equity net
  loan charge-offs		$— $— $— $26 $34 $14 $(6)$68 
1-4 family mortgages:
Performing$120,509 $1,885,394 $552,401 $178,549 $104,707 $333,794 $— $3,175,354 
Non-accrual— 452 391 628 640 9,601 — 11,712 
Total 1-4 family
  mortgages		$120,509 $1,885,846 $552,792 $179,177 $105,347 $343,395 $— $3,187,066 
1-4 family mortgages
  net loan charge-offs		$— $— $— $2 $— $205 $— $207 
Installment:
Performing$32,256 $117,324 $137,077 $99,806 $47,668 $27,059 $22,755 $483,945 
Non-accrual— — — — — — — — 
Total installment$32,256 $117,324 $137,077 $99,806 $47,668 $27,059 $22,755 $483,945 
Installment net loan
  charge-offs		$— $466 $1,271 $775 $184 $(69)$8 $2,635 
(1)Represents year-to-date loans originated during 2021.
During the quarters ended March 31, 2021 and 2020, $11.4 million and $7.0 million, respectively, of revolving loans converted to term loans.
TDRs
TDRs are generally performed at the request of the individual borrower and may include forgiveness of principal, reduction in interest rates, changes in payments, and maturity date extensions. The table below presents TDRs by class as of March 31, 2021 and December 31, 2020. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDRs.
TDRs by Class
(Dollar amounts in thousands)
 As of March 31, 2021As of December 31, 2020
 Accruing
Non-accrual(1)
TotalAccruing
Non-accrual(1)
Total
Commercial and industrial$— $7,518 $7,518 $— $8,859 $8,859 
Agricultural— — — — — — 
Commercial real estate:      
Office, retail, and industrial— — — — 2,340 2,340 
Multi-family— 156 156 — 160 160 
Construction— — — — — — 
Other commercial real estate174 — 174 184 — 184 
Total commercial real estate174 156 330 184 2,500 2,684 
Total corporate loans174 7,674 7,848 184 11,359 11,543 
Home equity30 114 144 31 116 147 
1-4 family mortgages594 223 817 598 228 826 
Installment— — — — — — 
Total consumer loans624 337 961 629 344 973 
Total loans$798 $8,011 $8,809 $813 $11,703 $12,516 
(1)These TDRs are included in non-accrual loans in the preceding tables.
In March of 2020, the CARES Act was enacted by the U.S. government in response to the economic disruption caused by the pandemic. The Company's banking regulators issued the "Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus" that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the pandemic. Additionally, the CARES Act as amended by the 2021 Consolidated Appropriations Act, which was signed into law in December 2020, provides that a qualified loan modification is exempt from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of January 1, 2022 or the date that is 60 days after the date on which the national emergency concerning the pandemic declared by the President of the United States terminates. As of March 31, 2021, the Company has eligible modifications with outstanding balances totaling $70.1 million.
TDRs are included in the calculation of the allowance for credit losses in the same manner as non-accrual loans. As of March 31, 2021 and December 31, 2020 there were $257,000 and $140,000 of specific allowances, respectively, related to TDRs.
There were no material restructurings during the quarters ended March 31, 2021 and 2020.
Accruing TDRs that do not perform in accordance with their modified terms are transferred to non-accrual. There were no material TDRs that defaulted within twelve months of the restructure date during the quarters ended March 31, 2021 and 2020.
A rollforward of the carrying value of TDRs for the quarters ended March 31, 2021 and 2020 is presented in the following table.
TDR Rollforward
(Dollar amounts in thousands)
Quarters Ended 
 March 31,
20212020
Accruing
Beginning balance$813 $1,233 
Additions— — 
Net payments(15)(17)
Net transfers to non-accrual— — 
Ending balance798 1,216 
Non-accrual
Beginning balance11,703 20,514 
Additions— 934 
Net payments(2,665)(658)
Charge-offs(1,027)(2,873)
Net transfers from accruing— — 
Ending balance8,011 17,917 
Total TDRs$8,809 $19,133 
There were no commitments to lend additional funds to borrowers with TDRs as of March 31, 2021 and December 31, 2020.