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

6 Months Ended

Jun. 30, 2022

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, 2022, and December 31, 2021:

(dollars in thousands)	June 30, 2022		December 31, 2021
Commercial
Commercial and Industrial	$	1,323,830	$	1,361,921
Paycheck Protection Program		31,964		126,779
Commercial Mortgage		3,464,126		3,152,130
Construction		246,177		220,254
Lease Financing		89,535		105,108
Total Commercial		5,155,632		4,966,192
Consumer
Residential Mortgage		4,486,571		4,309,602
Home Equity		2,101,612		1,836,588
Automobile		775,065		736,565
Other ¹		432,693		410,129
Total Consumer		7,795,941		7,292,884
Total Loans and Leases	$	12,951,573	$	12,259,076

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, 2022, and June 30, 2021.

(dollars in thousands)	Commercial			Consumer			Total
Three Months Ended June 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	62,093		$	89,935		$	152,028
Loans and Leases Charged-Off		(233	)		(3,113	)		(3,346	)
Recoveries on Loans and Leases Previously Charged-Off		51			2,664			2,715
Net Loans and Leases Recovered (Charged-Off)		(182	)		(449	)		(631	)
Provision for Credit Losses		(85	)		(2,800	)		(2,885	)
Balance at End of Period	$	61,826		$	86,686		$	148,512
Six Months Ended June 30, 2022
Allowance for Credit Losses:
Balance at Beginning of Period	$	64,950		$	92,871		$	157,821
Loans and Leases Charged-Off		(582	)		(6,672	)		(7,254	)
Recoveries on Loans and Leases Previously Charged-Off		420			4,717			5,137
Net Loans and Leases Recovered (Charged-Off)		(162	)		(1,955	)		(2,117	)
Provision for Credit Losses		(2,962	)		(4,230	)		(7,192	)
Balance at End of Period	$	61,826		$	86,686		$	148,512
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

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, 2022.

		Term Loans by Origination Year
(dollars in thousands)	2022			2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
June 30, 2022
Commercial
Commercial and Industrial
Pass		$	195,226	$	366,345	$	270,290	$	73,028	$	51,830	$	80,125	$	248,467	$	287	$	1,285,598
Special Mention			300		1,761		-		-		126		96		15,204		-		17,487
Classified			-		10,100		1,097		-		1,727		6,765		1,022		34		20,745
Total Commercial and Industrial		$	195,526	$	378,206	$	271,387	$	73,028	$	53,683	$	86,986	$	264,693	$	321	$	1,323,830
Paycheck Protection Program
Pass		$	-	$	14,693	$	17,271	$	-	$	-	$	-	$	-	$	-	$	31,964
Total Paycheck Protection Program		$	-	$	14,693	$	17,271	$	-	$	-	$	-	$	-	$	-	$	31,964
Commercial Mortgage
Pass		$	614,389	$	886,809	$	704,185	$	314,820	$	202,411	$	567,705	$	51,876	$	-	$	3,342,195
Special Mention			-		38,090		31,276		-		31,504		4,773		-		-		105,643
Classified			344		3,704		7,298		632		-		4,310		-		-		16,288
Total Commercial Mortgage		$	614,733	$	928,603	$	742,759	$	315,452	$	233,915	$	576,788	$	51,876	$	-	$	3,464,126
Construction
Pass		$	45,104	$	54,040	$	112,289	$	17,082	$	-	$	595	$	17,067	$	-	$	246,177
Total Construction		$	45,104	$	54,040	$	112,289	$	17,082	$	-	$	595	$	17,067	$	-	$	246,177
Lease Financing
Pass		$	9,007	$	19,723	$	13,618	$	13,190	$	7,816	$	25,397	$	-	$	-	$	88,751
Special Mention			-		-		-		-		784		-		-		-		784
Total Lease Financing		$	9,007	$	19,723	$	13,618	$	13,190	$	8,600	$	25,397	$	-	$	-	$	89,535
Total Commercial		$	864,370	$	1,395,265	$	1,157,324	$	418,752	$	296,198	$	689,766	$	333,636	$	321	$	5,155,632
Consumer
Residential Mortgage
Pass		$	511,952	$	1,338,350	$	1,065,284	$	330,487	$	150,344	$	1,085,392	$	-	$	-	$	4,481,809
Classified			-		-		-		-		838		3,924		-		-		4,762
Total Residential Mortgage		$	511,952	$	1,338,350	$	1,065,284	$	330,487	$	151,182	$	1,089,316	$	-	$	-	$	4,486,571
Home Equity
Pass		$	-	$	-	$	-	$	-	$	-	$	1,594	$	2,061,013	$	34,049	$	2,096,656
Classified			-		-		-		-		-		312		3,980		664		4,956
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	1,906	$	2,064,993	$	34,713	$	2,101,612
Automobile
Pass		$	189,177	$	255,583	$	124,837	$	107,936	$	65,561	$	31,943	$	-	$	-	$	775,037
Classified			-		10		6		-		-		12		-		-		28
Total Automobile		$	189,177	$	255,593	$	124,843	$	107,936	$	65,561	$	31,955	$	-	$	-	$	775,065
Other¹
Pass		$	112,308	$	147,605	$	40,994	$	64,199	$	27,258	$	15,033	$	23,917	$	1,269	$	432,583
Classified			-		-		19		49		17		24		-		1		110
Total Other		$	112,308	$	147,605	$	41,013	$	64,248	$	27,275	$	15,057	$	23,917	$	1,270	$	432,693
Total Consumer		$	813,437	$	1,741,548	$	1,231,140	$	502,671	$	244,018	$	1,138,234	$	2,088,910	$	35,983	$	7,795,941
Total Loans and Leases		$	1,677,807	$	3,136,813	$	2,388,464	$	921,423	$	540,216	$	1,828,000	$	2,422,546	$	36,304	$	12,951,573

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, 2021.

		Term Loans by Origination Year
(dollars in thousands)	2021			2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total Loans and Leases
December 31, 2021
Commercial
Commercial and Industrial
Pass		$	455,984	$	301,646	$	79,826	$	68,026	$	27,246	$	75,321	$	256,240	$	471	$	1,264,760
Special Mention			1,966		32,667		-		-		-		101		27,031		-		61,765
Classified			10,851		1,919		87		1,990		505		17,481		2,509		54		35,396
Total Commercial and Industrial		$	468,801	$	336,232	$	79,913	$	70,016	$	27,751	$	92,903	$	285,780	$	525	$	1,361,921
Paycheck Protection Program
Pass		$	86,484	$	40,295	$	-	$	-	$	-	$	-	$	-	$	-	$	126,779
Total Paycheck Protection Program		$	86,484	$	40,295	$	-	$	-	$	-	$	-	$	-	$	-	$	126,779
Commercial Mortgage
Pass		$	958,719	$	736,155	$	338,160	$	261,991	$	178,436	$	459,337	$	53,386	$	-	$	2,986,184
Special Mention			68,768		39,773		-		30,000		-		6,069		-		-		144,610
Classified			3,740		7,815		640		-		-		9,141		-		-		21,336
Total Commercial Mortgage		$	1,031,227	$	783,743	$	338,800	$	291,991	$	178,436	$	474,547	$	53,386	$	-	$	3,152,130
Construction
Pass		$	67,069	$	94,878	$	40,051	$	-	$	596	$	-	$	17,660	$	-	$	220,254
Special Mention			-		-		-		-		-		-		-		-		-
Total Construction		$	67,069	$	94,878	$	40,051	$	-	$	596	$	-	$	17,660	$	-	$	220,254
Lease Financing
Pass		$	21,637	$	15,075	$	15,697	$	9,902	$	2,004	$	39,937	$	-	$	-	$	104,252
Classified			-		-		-		856		-		-		-		-		856
Total Lease Financing		$	21,637	$	15,075	$	15,697	$	10,758	$	2,004	$	39,937	$	-	$	-	$	105,108
Total Commercial		$	1,675,218	$	1,270,223	$	474,461	$	372,765	$	208,787	$	607,387	$	356,826	$	525	$	4,966,192
Consumer
Residential Mortgage¹
Pass		$	1,392,337	$	1,131,330	$	367,525	$	177,215	$	256,825	$	982,759	$	-	$	-	$	4,307,991
Classified			-		-		294		-		905		412		-		-		1,611
Total Residential Mortgage		$	1,392,337	$	1,131,330	$	367,819	$	177,215	$	257,730	$	983,171	$	-	$	-	$	4,309,602
Home Equity ¹
Pass		$	-	$	-	$	-	$	-	$	-	$	2,986	$	1,795,107	$	35,427	$	1,833,520
Classified			-		-		-		-		-		58		2,649		361		3,068
Total Home Equity		$	-	$	-	$	-	$	-	$	-	$	3,044	$	1,797,756	$	35,788	$	1,836,588
Automobile
Pass		$	301,285	$	152,022	$	138,887	$	91,411	$	33,268	$	18,963	$	-	$	-	$	735,836
Classified			165		85		134		137		120		88		-		-		729
Total Automobile		$	301,450	$	152,107	$	139,021	$	91,548	$	33,388	$	19,051	$	-	$	-	$	736,565
Other ²
Pass		$	172,735	$	49,769	$	92,983	$	44,489	$	16,218	$	6,444	$	25,622	$	1,444	$	409,704
Classified			39		90		183		47		27		17		22		-		425
Total Other		$	172,774	$	49,859	$	93,166	$	44,536	$	16,245	$	6,461	$	25,644	$	1,444	$	410,129
Total Consumer		$	1,866,561	$	1,333,296	$	600,006	$	313,299	$	307,363	$	1,011,727	$	1,823,400	$	37,232	$	7,292,884
Total Loans and Leases		$	3,541,779	$	2,603,519	$	1,074,467	$	686,064	$	516,150	$	1,619,114	$	2,180,226	$	37,757	$	12,259,076

¹	Certain prior period information has been reclassified to conform to current presentations.

²	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, 2022, and December 31, 2021.

(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, 2022
Commercial
Commercial and Industrial	$	83	$	12	$	—	$	85	$	180	$	1,323,650	$	1,323,830	$	63
Paycheck Protection Program		—		—		—		—		—		31,964		31,964		—
Commercial Mortgage		291		—		—		3,462		3,753		3,460,373		3,464,126		3,462
Construction		—		—		—		—		—		246,177		246,177		—
Lease Financing		—		—		—		—		—		89,535		89,535		—
Total Commercial		374		12		—		3,547		3,933		5,151,699		5,155,632		3,525
Consumer
Residential Mortgage		4,340		1,555		2,638		5,179		13,712		4,472,859		4,486,571		271
Home Equity		1,796		629		2,029		4,435		8,889		2,092,723		2,101,612		689
Automobile		9,617		1,149		359		—		11,125		763,940		775,065		—
Other ¹		1,807		757		508		—		3,072		429,621		432,693		—
Total Consumer		17,560		4,090		5,534		9,614		36,798		7,759,143		7,795,941		960
Total	$	17,934	$	4,102	$	5,534	$	13,161	$	40,731	$	12,910,842	$	12,951,573	$	4,485

As of December 31, 2021
Commercial
Commercial and Industrial	$	2,006	$	14	$	—	$	243	$	2,263	$	1,359,658	$	1,361,921	$	151
Paycheck Protection Program		—		—		—		—		—		126,779		126,779		—
Commercial Mortgage		—		—		—		8,205		8,205		3,143,925		3,152,130		8,205
Construction		—		—		—		—		—		220,254		220,254		—
Lease Financing		—		—		—		—		—		105,108		105,108		—
Total Commercial		2,006		14		—		8,448		10,468		4,955,724		4,966,192		8,356
Consumer
Residential Mortgage		2,046		1,263		3,159		3,305		9,773		4,299,829		4,309,602		—
Home Equity		1,791		748		3,456		4,881		10,876		1,825,712		1,836,588		1,544
Automobile		7,804		1,495		729		—		10,028		726,537		736,565		—
Other ¹		2,686		904		426		—		4,016		406,113		410,129		—
Total Consumer		14,327		4,410		7,770		8,186		34,693		7,258,191		7,292,884		1,544
Total	$	16,333	$	4,424	$	7,770	$	16,634	$	45,161	$	12,213,915	$	12,259,076	$	9,900

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, 2022, and December 31, 2021.

	June 30, 2022						December 31, 2021
(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	$	85	$	—	$	85	$	243	$	—	$	243
Commercial Mortgage		—		3,462		3,462		4,661		3,544		8,205
Total Commercial		85		3,462		3,547		4,904		3,544		8,448
Consumer
Residential Mortgage		4,983		196		5,179		2,959		346		3,305
Home Equity		4,435		—		4,435		4,881		—		4,881
Total Consumer		9,418		196		9,614		7,840		346		8,186
Total	$	9,503	$	3,658	$	13,161	$	12,744	$	3,890	$	16,634

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, 2022, and June 30, 2021.

	Loans Modified as a TDR for the Three Months Ended June 30, 2022						Loans Modified as a TDR for the Three Months Ended June 30, 2021
			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		—	$	—	$	—		—	$	—	$	—
Total Commercial		—		—		—		—		—		—
Consumer
Residential Mortgage		1		407		13		7		3,714		120
Home Equity		1		53		—		5		462		9
Automobile		29		625		8		187		3,797		52
Other ²		11		87		3		105		1,010		38
Total Consumer		42		1,172		24		304		8,983		219
Total		42	$	1,172	$	24		304	$	8,983	$	219

	Loans Modified as a TDR for the Six Months Ended June 30, 2022						Loans Modified as a TDR for the Six Months Ended June 30, 2021
			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
Construction		—		—		—		—		—		—
Total Commercial		—		—		—		5		109		2
Consumer
Residential Mortgage		5		1,215		71		7		3,714		120
Home Equity		2		88		5		7		717		36
Automobile ²		56		1,149		15		570		11,670		162
Other ^2,3		32		223		8		320		2,932		111
Total Consumer		95		2,675		99		904		19,033		429
Total		95	$	2,675	$	99		909	$	19,142	$	431

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, 2022, and June 30, 2021, 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, 2022				Three Months Ended June 30, 2021
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
Home Equity		—	$	—		—	$	—
Automobile		6		151		16		296
Other ²		4		29		12		140
Total Consumer		10		180		28		436
Total		10	$	180		28	$	436

	Six Months Ended June 30, 2022				Six Months Ended June 30, 2021
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	$	180		1	$	534
Home Equity		1		80		—		—
Automobile		15		298		23		385
Other ²		14		104		23		216
Total Consumer		31		662		47		1,135
Total		31	$	662		47	$	1,135

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.