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

6 Months Ended

Jun. 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 June 30, 2021, and December 31, 2020:

(dollars in thousands)	June 30, 2021		December 31, 2020
Commercial
Commercial and Industrial	$	1,257,305	$	1,357,610
PPP		513,513		517,683
Commercial Mortgage		2,944,435		2,854,829
Construction		277,393		259,798
Lease Financing		110,500		110,766
Total Commercial		5,103,146		5,100,686
Consumer
Residential Mortgage		4,264,180		4,130,513
Home Equity		1,594,781		1,604,538
Automobile		714,729		708,800
Other ¹		364,542		395,483
Total Consumer		6,938,232		6,839,334
Total Loans and Leases	$	12,041,378	$	11,940,020

¹	^{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 six months ended June 30, 2021, and June 30, 2020.

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended June 30, 2021
Allowance for Credit Losses:
Balance at Beginning of Period	$	82,811		$	115,532		$	198,343
Loans and Leases Charged-Off		(456	)		(3,853	)		(4,309	)
Recoveries on Loans and Leases Previously Charged-Off		144			2,981			3,125
Net Loans and Leases Recovered (Charged-Off)		(312	)		(872	)		(1,184	)
Provision for Credit Losses		(3,860	)		(12,914	)		(16,774	)
Balance at End of Period	$	78,639		$	101,746		$	180,385
Six Months Ended June 30, 2021
Allowance for Credit Losses:
Balance at Beginning of Period	$	84,847		$	131,405		$	216,252
Loans and Leases Charged-Off		(704	)		(9,896	)		(10,600	)
Recoveries on Loans and Leases Previously Charged-Off		256			6,244			6,500
Net Loans and Leases Recovered (Charged-Off)		(448	)		(3,652	)		(4,100	)
Provision for Credit Losses		(5,760	)		(26,007	)		(31,767	)
Balance at End of Period	$	78,639		$	101,746		$	180,385
Three Months Ended June 30, 2020
Allowance for Credit Losses:
Balance at Beginning of Period	$	67,987		$	70,163		$	138,150
Loans and Leases Charged-Off		(656	)		(7,627	)		(8,283	)
Recoveries on Loans and Leases Previously Charged-Off		1,524			1,648			3,172
Net Loans and Leases Recovered (Charged-Off)		868			(5,979	)		(5,111	)
Provision for Credit Losses		3,667			36,733			40,400
Balance at End of Period	$	72,522		$	100,917		$	173,439
Six Months Ended June 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		(1,349	)		(14,111	)		(15,460	)
Recoveries on Loans and Leases Previously Charged-Off		1,853			4,756			6,609
Net Loans and Leases Recovered (Charged-Off)		504			(9,355	)		(8,851	)
Provision for Credit Losses		17,006			56,994			74,000
Balance at End of Period	$	72,522		$	100,917		$	173,439

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 June 30, 2021.

		Term Loans by Origination Year
(dollars in thousands)	YTD June 30, 2021			2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
June 30, 2021
Commercial
Commercial and Industrial
Pass		$	155,952	$	397,887	$	110,322	$	88,056	$	38,839	$	97,488	$	264,104	$	606	$	1,153,254
Special Mention			2,046		11,189		-		-		-		167		34,424		35		47,861
Classified			188		1,492		95		13,058		643		18,809		21,826		79		56,190
Total Commercial and Industrial		$	158,186	$	410,568	$	110,417	$	101,114	$	39,482	$	116,464	$	320,354	$	720	$	1,257,305
PPP
Pass		$	273,933	$	239,580	$	-	$	-	$	-	$	-	$	-	$	-	$	513,513
Total PPP		$	273,933	$	239,580	$	-	$	-	$	-	$	-	$	-	$	-	$	513,513
Commercial Mortgage
Pass		$	366,072	$	819,888	$	384,925	$	334,830	$	213,563	$	603,288	$	76,580	$	-	$	2,799,146
Special Mention			2,082		66,902		28,340		288		-		13,532		-		-		111,144
Classified			2,433		13,456		647		-		5,058		12,551		-		-		34,145
Total Commercial Mortgage		$	370,587	$	900,246	$	413,912	$	335,118	$	218,621	$	629,371	$	76,580	$	-	$	2,944,435
Construction
Pass		$	58,780	$	122,752	$	66,038	$	11,281	$	895	$	-	$	17,647	$	-	$	277,393
Total Construction		$	58,780	$	122,752	$	66,038	$	11,281	$	895	$	-	$	17,647	$	-	$	277,393
Lease Financing
Pass		$	16,191	$	17,249	$	18,115	$	11,671	$	3,039	$	43,308	$	-	$	-	$	109,573
Special Mention			-		-		-		927		-		-		-		-		927
Total Lease Financing		$	16,191	$	17,249	$	18,115	$	12,598	$	3,039	$	43,308	$	-	$	-	$	110,500
Total Commercial		$	877,677	$	1,690,395	$	608,482	$	460,111	$	262,037	$	789,143	$	414,581	$	720	$	5,103,146
Consumer
Residential Mortgage
Pass		$	850,707	$	1,218,829	$	452,181	$	225,001	$	332,560	$	1,181,550	$	-	$	-	$	4,260,828
Classified			-		-		294		397		909		1,752		-		-		3,352
Total Residential Mortgage		$	850,707	$	1,218,829	$	452,475	$	225,398	$	333,469	$	1,183,302	$	-	$	-	$	4,264,180
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	3,524	$	1,550,205	$	33,831	$	1,587,560
Classified			-		-		-		-		-		116		5,839		1,266		7,221
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	3,640	$	1,556,044	$	35,097	$	1,594,781
Automobile
Pass		$	156,177	$	181,983	$	173,776	$	122,448	$	49,436	$	30,631	$	-	$	-	$	714,451
Classified			11		64		68		7		22		106		-		-		278
Total Automobile		$	156,188	$	182,047	$	173,844	$	122,455	$	49,458	$	30,737	$	-	$	-	$	714,729
Other¹
Pass		$	51,802	$	60,646	$	119,677	$	68,058	$	26,288	$	8,372	$	27,833	$	1,431	$	364,107
Classified			-		34		172		120		56		19		32		2		435
Total Other		$	51,802	$	60,680	$	119,849	$	68,178	$	26,344	$	8,391	$	27,865	$	1,433	$	364,542
Total Consumer		$	1,058,697	$	1,461,556	$	746,168	$	416,031	$	409,271	$	1,226,070	$	1,583,909	$	36,530	$	6,938,232
Total Loans and Leases		$	1,936,374	$	3,151,951	$	1,354,650	$	876,142	$	671,308	$	2,015,213	$	1,998,490	$	37,250	$	12,041,378

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 June 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 June 30, 2021
Commercial
Commercial and Industrial	$	195	$	1,990	$	—	$	258	$	2,443	$	1,254,862	$	1,257,305	$	217
PPP		—		—		—		—		—		513,513		513,513		—
Commercial Mortgage		—		—		—		8,413		8,413		2,936,022		2,944,435		4,869
Construction		—		—		—		—		—		277,393		277,393		—
Lease Financing		—		—		—		—		—		110,500		110,500		—
Total Commercial		195		1,990		—		8,671		10,856		5,092,290		5,103,146		5,086
Consumer
Residential Mortgage		5,587		2,194		4,069		2,437		14,287		4,249,893		4,264,180		932
Home Equity		1,031		440		4,498		5,534		11,503		1,583,278		1,594,781		1,154
Automobile		5,828		755		277		—		6,860		707,869		714,729		—
Other ¹		1,645		852		434		—		2,931		361,611		364,542		—
Total Consumer		14,091		4,241		9,278		7,971		35,581		6,902,651		6,938,232		2,086
Total	$	14,286	$	6,231	$	9,278	$	16,642	$	46,437	$	11,994,941	$	12,041,378	$	7,172

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 June 30, 2021, and December 31, 2020.

	June 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	$	258	$	—	$	258	$	441	$	—	$	441
Commercial Mortgage		8,413		—		8,413		8,527		—		8,527
Total Commercial		8,671		—		8,671		8,968		—		8,968
Consumer
Residential Mortgage		2,314		123		2,437		3,096		127		3,223
Home Equity		5,534		—		5,534		3,958		—		3,958
Total Consumer		7,848		123		7,971		7,054		127		7,181
Total	$	16,519	$	123	$	16,642	$	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 six months ended June 30, 2021, and June 30, 2020.

	Loans Modified as a TDR for the Three Months Ended June 30, 2021						Loans Modified as a TDR for the Three Months Ended June 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
Construction		—		—		—		1		1,152		—
Total Commercial		—		—		—		1		1,152		—
Consumer
Residential Mortgage		7		3,714		120		—		—		—
Home Equity		5		462		9		—		—		—
Automobile		187		3,797		52		19		305		5
Other ²		105		1,010		38		5		52		2
Total Consumer		304		8,983		219		24		357		7
Total		304	$	8,983	$	219		25	$	1,509	$	7

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 Six Months Ended June 30, 2021						Loans Modified as a TDR for the Six Months Ended June 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		5	$	109	$	2		2	$	98	$	2
Construction		—		—		—		1		1,152		—
Total Commercial		5		109		2		3		1,250		2
Consumer
Residential Mortgage		7		3,714		120		—		—		—
Home Equity		7		717		36		—		—		—
Automobile		570		11,670		162		70		1,172		19
Other ²		320		2,932		111		35		274		11
Total Consumer		904		19,033		429		105		1,446		30
Total		909	$	19,142	$	431		108	$	2,696	$	32

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 six months ended June 30, 2021, and June 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 June 30, 2021				Three Months Ended June 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		16	$	296		19	$	331
Other ²		12		140		2		14
Total Consumer		28		436		21		345
Total		28	$	436		21	$	345

	Six Months Ended June 30, 2021				Six Months Ended June 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	$	534		—	$	—
Automobile		23		385		34		636
Other ²		23		216		6		40
Total Consumer		47		1,135		40		676
Total		47	$	1,135		40	$	676

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.