Loans and Allowance for Credit Losses | Loans and Allowance for Credit Losses Net Loans are summarized as follows: March 31, December 31, 2020 (in thousands) Real estate - commercial mortgage $ 7,142,137 $ 7,105,092 Commercial and industrial (1) 5,675,714 5,670,828 Real-estate - residential mortgage 3,254,058 3,141,915 Real-estate - home equity 1,149,958 1,202,913 Real-estate - construction 1,083,494 1,047,218 Consumer 451,857 466,772 Equipment lease financing and other 252,930 284,377 Overdrafts 1,373 4,806 Gross loans 19,011,521 18,923,921 Unearned income (20,535) (23,101) Net Loans $ 18,990,986 $ 18,900,820 (1) Includes PPP loans totaling $1.7 billion and $1.6 billion as of March 31, 2021 and December 31, 2020, respectively. The Corporation segments its loan portfolio by "portfolio segments," as presented in the table above. Certain portfolio segments are further disaggregated by "class segment" for the purpose of estimating credit losses. Allowance for Credit Losses The Corporation has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. Loans: The ACL for loans is an estimate of the expected losses to be realized over the life of the loans in the portfolio. The ACL is determined for two distinct categories of loans: 1) loans evaluated collectively for expected credit losses and 2) loans evaluated individually for expected credit losses. Loans Evaluated Collectively: Loans evaluated collectively for expected credit losses include loans on accrual status, excluding accruing TDRs, and loans initially evaluated individually, but determined not to have enhanced credit risk characteristics. This category includes loans on non-accrual status and TDRs where the total commitment amount is less than $1 million. The ACL is estimated by applying a PD and LGD to the EAD at the loan level. In order to determine the PD, LGD, and EAD calculation inputs: • Loans are aggregated into pools based on similar risk characteristics. • The PD and LGD rates are determined by historical credit loss experience for each pool of loans. • The loan segment PD rates are estimated using six econometric regression models that use the Corporation’s historical credit loss experience and incorporate reasonable and supportable economic forecasts for various macroeconomic variables that are statistically correlated with expected loss behavior in the loan segment. • The reasonable and supportable forecast for each macroeconomic variable is sourced from an external third party and is applied over the contractual term of the Corporation’s loan portfolio. The Corporation’s economic forecast considers the general health of the economy, the interest rate environment, real estate pricing and market risk. • A single baseline forecast scenario is used for each macroeconomic variable. • The loan segment lifetime LGD rates are estimated using a loss rate approach based on the Corporation’s historical charge-off experience and the balance at the time of loan default. • The LGD rates are adjusted for the Corporation’s recovery experience. • To calculate the EAD, the corporation estimates contractual cash flows over the remaining life of each loan. Certain cash flow assumptions are established for each loan using maturity date, amortization schedule and interest rate. In addition, a prepayment rate is used in determining the EAD estimate. Loans Evaluated Individually: Loans evaluated individually for expected credit losses include loans on non-accrual status and TDRs where the commitment amount equals or exceeds $1.0 million. The required ACL for such loans is determined using either the present value of expected future cash flows, observable market price or the fair value of collateral. Loans evaluated individually may have specific allocations of the ACL assigned if the measured value of the loan using one of the noted techniques is less than its current carrying value. For loans measured using the fair value of collateral, if the analysis determines that sufficient collateral value would be available for repayment of the debt, then no allocations would be assigned to those loans. Collateral could be in the form of real estate or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate. For loans secured by real estate, estimated fair values are determined primarily through appraisals performed by third-party appraisers, discounted to arrive at expected net sale proceeds. For collateral dependent loans, estimated real estate fair values are also net of estimated selling costs. When a real estate secured loan is impaired, a decision is made regarding whether an updated appraisal of the real estate is necessary. This decision is based on various considerations, including: the age of the most recent appraisal; the loan-to-value ratio based on the original appraisal; the condition of the property; the Corporation’s experience and knowledge of the real estate market; the purpose of the loan; market factors; payment status; the strength of any guarantors; and the existence and age of other indications of value such as broker price opinions, among others. The Corporation generally obtains updated appraisals performed by third-party appraisers for impaired loans secured predominantly by real estate every 12 months. When updated appraisals are not obtained for loans secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated an acceptable loan-to-value position and there has not been a significant deterioration in the collateral value since the original appraisal was performed. For loans with principal balances greater than or equal to $1.0 million secured by non-real estate collateral, such as accounts receivable or inventory, estimated fair values are determined based on borrower financial statements, inventory listings, accounts receivable agings or borrowing base certificates. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Liquidation or collection discounts are applied to these assets based upon existing loan evaluation policies. Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification. For commercial loans, commercial mortgages and construction loans to commercial borrowers, an internal risk rating process is used. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk rating categories is a significant component of the ACL methodology for these loans, which bases the PD on this migration. Assigning risk ratings involves judgment. Risk ratings may be changed based on ongoing monitoring procedures, or if specific loan review assessments identify a deterioration or an improvement in the loan. The ACL is reviewed to evaluate its appropriateness in relation to the overall risk profile of the loan portfolio. The Corporation considers risk factors such as: local and national economic conditions; trends in delinquencies and non-accrual loans; the diversity of borrower industry types; and the composition of the portfolio by loan type. Qualitative and Other Adjustments to ACL: In addition to the quantitative credit loss estimates for loans evaluated collectively, qualitative factors that may not be fully captured in the quantitative results are also evaluated. These qualitative factors include changes in lending policy, the nature and volume of the portfolio, overall business conditions in the economy, credit concentrations, specific industry risks, competition, model imprecision and legal and regulatory requirements. Qualitative adjustments are judgmental and are based on management’s knowledge of the portfolio and the markets in which the Corporation operates. Qualitative adjustments are evaluated and approved on a quarterly basis. Additionally, the ACL includes other allowance categories that are not directly incorporated in the quantitative results. These categories include but are not limited to loans-in-process, trade acceptances and overdrafts. OBS Credit Exposures: The ACL for OBS credit exposures is recorded in other liabilities on the consolidated balance sheets. This portion of the ACL represents management’s estimate of expected losses in its unfunded loan commitments and other OBS credit exposures. The ACL specific to unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). The ACL for OBS credit exposures is increased or decreased by charges or reductions to expense, through the provision for credit losses. The following table presents the components of the ACL: March 31, 2021 December 31, 2020 (in thousands) ACL - loans $ 265,986 $ 277,567 ACL - OBS credit exposure 14,273 14,373 Total ACL $ 280,259 $ 291,940 The following table presents the activity in the ACL: Three months ended March 31 2021 2020 (in thousands) Balance at beginning of period $ 291,940 $ 166,209 Impact of adopting CECL on January 1, 2020 (1) — 58,349 Loans charged off (8,202) (14,003) Recoveries of loans previously charged off 2,021 2,887 Net loans charged off (6,181) (11,116) Provision for credit losses (2) (5,500) 44,029 Balance at end of period $ 280,259 $ 257,471 (1) Includes $12.6 million of reserves for OBS credit exposures as of January 1, 2020. (2) Includes $(100,000) and $3.8 million related to OBS credit exposures for the three months ended March 31, 2021 and 2020, respectively. The following table presents the activity in the ACL - loans by portfolio segment: Real Estate - Commercial and Real Estate - Real Estate - Real Estate Consumer Equipment lease financing, other Total (in thousands) Three months ended March 31, 2021 Balance at December 31, 2020 $ 103,425 $ 74,771 $ 14,232 $ 51,995 $ 15,608 $ 10,905 $ 6,633 $ 277,567 Loans charged off (1,837) (4,319) (212) (192) (39) (635) (968) (8,202) Recoveries of loans previously charged off 174 769 51 95 384 389 159 2,021 Net loans recovered (charged off) (1,663) (3,550) (161) (97) 345 (246) (809) (6,181) Provision for loan losses (1) (786) (27) (341) (1,903) (874) (1,247) (222) (5,400) Balance at March 31, 2021 $ 100,976 $ 71,194 $ 13,730 $ 49,995 $ 15,079 $ 9,412 $ 5,602 $ 265,986 Three months ended March 31, 2020 Balance at December 31, 2019 $ 45,610 $ 68,602 $ 17,744 $ 19,771 $ 4,443 $ 3,762 $ 3,690 $ 163,622 Impact of adopting CECL on January 1, 2020 29,361 (18,576) (65) 21,235 4,015 5,969 3,784 45,723 Loans charged off (855) (10,899) (316) (187) — (1,213) (533) (14,003) Recoveries of loans previously charged off 244 1,734 646 85 70 — 108 2,887 Net loans (charged off) recovered (611) (9,165) 330 (102) 70 (1,213) (425) (11,116) Provision for loan losses (1) 15,959 22,745 (2,756) 1,523 (130) 1,347 1,591 40,279 Balance at March 31, 2020 $ 90,319 $ 63,606 $ 15,253 $ 42,427 $ 8,398 $ 9,865 $ 8,640 $ 238,508 (1) Provision included in the table only includes the portion related to Net Loans. Several factors as of the end of the first quarter of 2021 in comparison to the end of the fourth quarter of 2020, including improved economic forecasts and a decrease in specific allocations within the ACL for loans evaluated individually, reduced the level of the ACL determined to be necessary as of March 31, 2021, resulting in the negative provision for credit losses for the three months ended March 31, 2021. The higher provision expense during the first three months of 2020 was largely driven by the overall downturn in economic forecasts due to COVID-19, resulting in higher expected future credit losses under CECL. Qualitative adjustments during the first three months of 2020 increased compared to those at the time of the adoption of CECL on January 1, 2020 primarily as a result of uncertainties related to the economic impact of COVID-19, including consideration for the future performance of loans that received deferrals or forbearances as a result of COVID-19 and the impact COVID-19 had on certain industries where the quantitative models were not fully capturing the appropriate level of risk at that time. PPP loans issued are fully guaranteed by the SBA and, as such, no ACL was recorded against the PPP loan portfolio. Non-accrual Loans All loans individually evaluated for impairment are measured for losses on a quarterly basis. As of March 31, 2021 and December 31, 2020, substantially all of the Corporation’s individually evaluated loans with total commitments greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral, if any. Collateral could be in the form of real estate, in the case of commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate. As of March 31, 2021 and December 31, 2020, approximately 97% and 83%, respectively, of loans evaluated individually for impairment with principal balances greater than or equal to $1.0 million, whose primary collateral consisted of real estate, were measured at estimated fair value using appraisals performed by state certified third-party appraisers that had been updated in the preceding 12 months. The following table presents total non-accrual loans, by class segment: March 31, 2021 December 31, 2020 With a Related Allowance Without a Related Allowance Total With a Related Allowance Without a Related Allowance Total (in thousands) Real estate - commercial mortgage $ 21,107 $ 30,870 $ 51,977 $ 19,909 $ 31,561 $ 51,470 Commercial and industrial 13,012 18,640 31,652 13,937 18,056 31,993 Real estate - residential mortgage 31,203 2,198 33,401 24,590 1,517 26,107 Real estate - home equity 9,368 — 9,368 9,398 190 9,588 Real estate - construction 544 897 1,441 437 958 1,395 Consumer 301 — 301 332 — 332 Equipment lease financing and other 6,462 9,287 15,749 — 16,313 16,313 $ 81,997 $ 61,892 $ 143,889 $ 68,603 $ 68,595 $ 137,198 As of March 31, 2021 and December 31, 2020, there were $61.9 million and $68.6 million, respectively, of non-accrual loans that did not have a related allowance for credit losses. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or the loans were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary. Asset Quality Maintaining an appropriate ACL is dependent on various factors, including the ability to identify potential problem loans in a timely manner. For commercial construction, residential construction, commercial and industrial, and commercial real estate, an internal risk rating process is used. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk rating categories is a significant component of the ACL methodology for these loans, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide a separate assessment of risk rating accuracy. Risk ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff or if specific loan review assessments identify a deterioration or an improvement in the loans. The following is a summary of the Corporation's internal risk rating categories: • Pass : These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk. • Special Mention : These loans have a heightened credit risk, but not to the point of justifying a classification of Substandard. Loans in this category are currently acceptable but, are nevertheless potentially weak. • Substandard or Lower : These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the current period: March 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans (dollars in thousands) Amortized Amortized 2021 2020 2019 2018 2017 Prior Cost Basis Cost Basis Total Real estate - construction (1) Pass $ 14,615 $ 233,770 $ 201,440 $ 218,467 $ 80,686 $ 142,339 $ 36,046 $ — $ 927,363 Special Mention 110 — — — — 13,195 — — 13,305 Substandard or Lower — — 154 — 1,976 3,520 406 — 6,056 Total real estate - construction 14,725 233,770 201,594 218,467 82,662 159,054 36,452 — 946,724 Real estate - construction (1) Current period gross charge-offs — — (39) — — — — — (39) Current period recoveries — — — — — 384 — — 384 Total net (charge-offs) recoveries — — (39) — — 384 — — 345 Commercial and industrial Pass 885,616 1,624,535 481,038 290,788 201,910 726,981 1,205,065 — 5,415,933 Special Mention 143 9,136 20,949 16,337 10,413 30,861 48,939 — 136,778 Substandard or Lower — 2,847 7,167 13,503 10,638 34,805 54,043 — 123,003 Total commercial and industrial 885,759 1,636,518 509,154 320,628 222,961 792,647 1,308,047 — 5,675,714 Commercial and industrial Current period gross charge-offs — — (613) (2,871) (60) (775) — — (4,319) Current period recoveries — — 37 126 36 570 — — 769 Total net (charge-offs) recoveries — — (576) (2,745) (24) (205) — — (3,550) Real estate - commercial mortgage Pass 200,885 993,776 926,352 670,684 767,399 2,800,409 49,207 321 6,409,033 Special Mention — 23,282 30,629 92,800 75,417 248,403 2,406 — 472,937 Substandard or Lower — 1,028 24,008 10,673 46,460 174,421 3,577 — 260,167 Total real estate - commercial mortgage 200,885 1,018,086 980,989 774,157 889,276 3,223,233 55,190 321 7,142,137 Real estate - commercial mortgage Current period gross charge-offs — — — — (1,719) (118) — — (1,837) Current period recoveries — — — — — 174 — — 174 Total net (charge-offs) recoveries — — — — (1,719) 56 — — (1,663) Total Pass $ 1,101,116 $ 2,852,081 $ 1,608,830 $ 1,179,939 $ 1,049,995 $ 3,669,729 $ 1,290,318 $ 321 $ 12,752,329 Special Mention 253 32,418 51,578 109,137 85,830 292,459 51,345 — 623,020 Substandard or Lower — 3,875 31,329 24,176 59,074 212,746 58,026 — 389,226 Total $ 1,101,369 $ 2,888,374 $ 1,691,737 $ 1,313,252 $ 1,194,899 $ 4,174,934 $ 1,399,689 $ 321 $ 13,764,575 (1) Excludes real estate - construction - other. The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and equipment lease financing. For these loans, the most relevant credit quality indicator is delinquency status. The migration of loans through the various delinquency status categories is a significant component of the ACL methodology for those loans, which bases the PD on this migration. The following table summarizes designated internal risk rating categories by portfolio segment and loan class, by origination year, in the prior period: December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans (dollars in thousands) Amortized Amortized 2020 2019 2018 2017 2016 Prior Cost Basis Cost Basis Total Real estate - construction (1) Pass $ 185,883 $ 229,097 $ 217,604 $ 81,086 $ 37,976 $ 110,470 $ 38,026 $ — $ 900,142 Special Mention — — — — 7,047 6,212 — — 13,259 Substandard or Lower — 447 — 2,000 753 1,637 632 — 5,469 Total real estate - construction 185,883 229,544 217,604 83,086 45,776 118,319 38,658 — 918,870 Real estate - construction (1) Current period gross charge-offs — — — — — (17) — — (17) Current period recoveries — — — — 68 5,054 — — 5,122 Total net (charge-offs) recoveries — — — — 68 5,037 — — 5,105 Commercial and industrial Pass 2,283,533 508,541 298,567 214,089 208,549 596,646 1,278,689 — 5,388,614 Special Mention 6,633 23,834 29,167 10,945 11,506 25,960 45,994 — 154,039 Substandard or Lower 3,221 5,947 8,434 11,251 11,192 23,852 64,278 — 128,175 Total commercial and industrial 2,293,387 538,322 336,168 236,285 231,247 646,458 1,388,961 — 5,670,828 Commercial and industrial Current period gross charge-offs — (114) (30) (488) (393) (520) (17,370) — (18,915) Current period recoveries — 43 486 216 162 4,531 5,958 — 11,396 Total net (charge-offs) recoveries — (71) 456 (272) (231) 4,011 (11,412) — (7,519) Real estate - commercial mortgage Pass 973,664 917,510 708,946 794,955 783,094 2,213,343 53,041 404 6,444,957 Special Mention 13,639 40,874 84,047 80,705 89,112 167,424 2,364 — 478,165 Substandard or Lower 1,238 6,681 6,247 39,027 22,605 103,007 2,225 940 181,970 Total real estate - commercial mortgage 988,541 965,065 799,240 914,687 894,811 2,483,774 57,630 1,344 7,105,092 Real estate - commercial mortgage Current period gross charge-offs (60) (21) (36) (2,515) (29) (1,547) (17) — (4,225) Current period recoveries — 6 — — 1 1,020 — — 1,027 Total net (charge-offs) recoveries (60) (15) (36) (2,515) (28) (527) (17) — (3,198) Total Pass $ 3,443,080 $ 1,655,148 $ 1,225,117 $ 1,090,130 $ 1,029,619 $ 2,920,459 $ 1,369,756 $ 404 $ 12,733,713 Special Mention 20,272 64,708 113,214 91,650 107,665 199,596 48,358 — 645,463 Substandard or Lower 4,459 13,075 14,681 52,278 34,550 128,496 67,135 940 315,614 Total $ 3,467,811 $ 1,732,931 $ 1,353,012 $ 1,234,058 $ 1,171,834 $ 3,248,551 $ 1,485,249 $ 1,344 $ 13,694,790 (1) Excludes real estate - construction - other. The Corporation considers the performance of the loan portfolio and its impact on the ACL. For certain loan classes, the Corporation evaluates credit quality based on the aging status of the loan. The following tables present the amortized cost of these loans based on payment activity, by origination year, for the periods shown: March 31, 2021 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans (dollars in thousands) Amortized Amortized 2021 2020 2019 2018 2017 Prior Cost Basis Cost Basis Total Real estate - home equity Performing $ 4,491 $ 29,767 $ 8,140 $ 12,312 $ 9,997 $ 119,037 $ 948,645 $ 4,845 $ 1,137,234 Nonperforming — — 88 23 264 2,597 9,545 207 12,724 Total real estate - home equity 4,491 29,767 8,228 12,335 10,261 121,634 958,190 5,052 1,149,958 Real estate - home equity Current period gross charge-offs — — — — — — (212) — (212) Current period recoveries — — — — — — 51 — 51 Total net (charge-offs) recoveries — — — — — — (161) — (161) Real estate - residential mortgage Performing 358,906 1,240,446 513,892 181,509 292,014 630,996 — — 3,217,763 Nonperforming — 3,927 1,654 3,450 2,945 24,319 — — 36,295 Total real estate - residential mortgage 358,906 1,244,373 515,546 184,959 294,959 655,315 — — 3,254,058 Real estate - residential mortgage Current period gross charge-offs — — (40) (47) — (105) — — (192) Current period recoveries — — — 3 1 — 92 — 96 Total net (charge-offs) recoveries — — (40) (44) 1 (105) 92 — (96) Consumer Performing 27,910 103,924 90,185 85,837 38,190 56,885 48,371 — 451,302 Nonperforming — 127 37 63 35 243 50 — 555 Total consumer 27,910 104,051 90,222 85,900 38,225 57,128 48,421 — 451,857 Consumer Current period gross charge-offs — (95) (94) (111) (79) (229) (27) — (635) Current period recoveries — 33 5 11 19 321 — — 389 Total net (charge-offs) recoveries — (62) (89) (100) (60) 92 (27) — (246) Equipment lease financing and other Performing 25,663 68,641 51,804 36,350 22,506 13,054 — — 218,018 Nonperforming — — — — 15,724 26 — — 15,750 Total leasing and other 25,663 68,641 51,804 36,350 38,230 13,080 — — 233,768 Equipment lease financing and other Current period gross charge-offs — (968) — — — — — — (968) Current period recoveries — 120 39 — — — — — 159 Total net (charge-offs) recoveries — (848) 39 — — — — — (809) Construction - other Performing 17,458 97,829 16,172 4,755 — 16 — — 136,230 Nonperforming — — 364 — 176 — — — 540 Total construction - other 17,458 97,829 16,536 4,755 176 16 — — 136,770 Construction - other Current period gross charge-offs — — — — — — — — — Current period recoveries — — — — — — — — — Total net (charge-offs) recoveries — — — — — — — — — Total Performing $ 434,428 $ 1,540,607 $ 680,193 $ 320,763 $ 362,707 $ 819,988 $ 997,016 $ 4,845 $ 5,160,547 Nonperforming — 4,054 2,143 3,536 19,144 27,185 9,595 207 65,864 Total $ 434,428 $ 1,544,661 $ 682,336 $ 324,299 $ 381,851 $ 847,173 $ 1,006,611 $ 5,052 $ 5,226,411 December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans converted to Term Loans (dollars in thousands) Amortized Amortized 2020 2019 2018 2017 2016 Prior Cost Basis Cost Basis Total Real estate - home equity Performing $ 31,445 $ 8,176 $ 13,906 $ 11,024 $ 11,667 $ 126,749 $ 982,285 $ 5,321 $ 1,190,573 Nonperforming — 88 23 233 221 2,290 9,485 — 12,340 Total real estate - home equity 31,445 8,264 13,929 11,257 11,888 129,039 991,770 5,321 1,202,913 Real estate - home equity Current period gross charge-offs — — — — — (34) (1,159) — (1,193) Current period recoveries — — — — — 138 366 — 504 Total net (charge-offs) recoveries — — — — — 104 (793) — (689) Real estate - residential mortgage Performing 1,255,532 585,878 228,398 341,563 264,990 434,889 — — 3,111,250 Nonperforming 217 2,483 3,177 2,483 722 21,583 — — 30,665 Total real estate - residential mortgage 1,255,749 588,361 231,575 344,046 265,712 456,472 — — 3,141,915 Real estate - residential mortgage Current period gross charge-offs — (68) (101) (190) (7) (254) — — (620) Current period recoveries — 68 16 1 1 405 — — 491 Total net (charge-offs) recoveries — — (85) (189) (6) 151 — — (129) Consumer Performing 114,399 98,587 95,072 43,334 25,804 36,086 52,698 42 466,022 Nonperforming 168 19 124 141 114 150 34 — 750 Total consumer 114,567 98,606 95,196 43,475 25,918 36,236 52,732 42 466,772 Consumer Current period gross charge-offs (134) (542) (524) (444) (489) (769) (498) — (3,400) Current period recoveries — 64 165 159 94 101 1,292 — 1,875 Total net (charge-offs) recoveries (134) (478) (359) (285) (395) (668) 794 — (1,525) Equipment lease financing and other Performing 102,324 65,303 49,453 34,995 15,631 5,040 — — 272,746 Nonperforming — — 30 15,983 142 282 — — 16,437 Total leasing and other 102,324 65,303 49,483 50,978 15,773 5,322 — — 289,183 Equipment lease financing and other Current period gross charge-offs (606) (1,581) — — — — — — (2,187) Current period recoveries 185 349 21 18 11 21 — — 605 Total net (charge-offs) recoveries (421) (1,232) 21 18 11 21 — — (1,582) Construction - other Performing 96,444 24,888 6,822 — 16 — — — 128,170 Nonperforming — — — 178 — — — — 178 Total construction - other 96,444 24,888 6,822 178 16 — — — 128,348 Construction - other Current period gross charge-offs — — — — — — — — — Current period recoveries — — — — — — — — — Total net (charge-offs) recoveries — — — — — — — — — Total Performing $ 1,600,144 $ 782,832 $ 393,651 $ 430,916 $ 318,108 $ 602,764 $ 1,034,983 $ 5,363 $ 5,168,761 Nonperforming 385 2,590 3,354 19,018 1,199 24,305 9,519 — 60,370 Total $ 1,600,529 $ 785,422 $ 397,005 $ 449,934 $ 319,307 $ 627,069 $ 1,044,502 $ 5,363 $ 5,229,131 The following table presents non-performing assets: March 31, December 31, (in thousands) Non-accrual loans $ 143,889 $ 137,198 Loans 90 days or more past due and still accruing 8,559 9,929 Total non-performing loans 152,448 147,127 OREO (1) 3,664 4,178 Total non-performing assets $ 156,112 $ 151,305 (1) Excludes $7.6 million and $8.1 million of residential mortgage properties for which formal foreclosure proceedings were in process as of March 31, 2021 and December 31, 2020, respectively. The following tables present the aging of the amortized cost basis of loans, by class segment: 30-59 60-89 ≥ 90 Days Days Past Days Past Past Due Non- Due Due and Accruing Accrual Current Total (in thousands) March 31, 2021 Real estate – commercial mortgage $ 9,596 $ 1,516 $ 2,187 $ 51,977 $ 7,076,861 $ 7,142,137 Commercial and industrial 1,718 1,894 219 31,652 5,640,231 5,675,714 Real estate – residential mortgage 8,485 933 2,750 33,401 3,208,489 3,254,058 Real estate – home equity 2,795 1,062 3,148 9,368 1,133,585 1,149,958 Real estate – construction 170 — — 1,441 1,081,883 1,083,494 Consumer 1,224 491 255 301 449,586 451,857 Equipment lease financing and other 101 142 — 15,749 217,776 233,768 Total $ 24,089 $ 6,038 $ 8,559 $ 143,889 $ 18,808,411 $ 18,990,986 30-59 Days Past 60-89 ≥ 90 Days Non- Current Total (in thousands) December 31, 2020 Real estate – commercial mortgage $ 14,999 $ 9,273 $ 1,177 $ 51,470 $ 7,028,173 $ 7,105,092 Commercial and industrial 11,285 1,068 616 31,993 5,625,866 5,670,828 Real estate – residential mortgage 22,281 7,675 4,687 26,107 3,081,165 3,141,915 Real estate – home equity 5,622 1,654 2,753 9,588 1,183,296 1,202,913 Real estate – construction 1,938 — 155 1,395 1,043,730 1,047,218 Consumer 3,036 501 417 332 462,486 466,772 Equipment lease financing and other 838 150 124 16,313 248,657 266,082 Total $ 59,999 $ 20,321 $ 9,929 $ 137,198 $ 18,673,373 $ 18,900,820 Collateral-Dependent Loans A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, the Corporation elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, the Corporation records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate, including residential properties, commercial properties, such as retail centers, office buildings, and lodging, agriculture land, and vacant land. Troubled Debt Restructurings The following table presents TDRs, by class segment: March 31, December 31, (in thousands) Real estate - commercial mortgage $ 27,961 $ 28,451 Commercial and industrial 7,041 6,982 Real estate - residential mortgage 18,214 18,602 Real estate - home equity 13,674 14,391 Real estate - construction 154 — Consumer 5 — Total accruing TDRs 67,049 68,426 Non-accrual TDRs (1) 44,986 35,755 Total TDRs $ 112,035 $ 104,181 (1) Included in non-accrual loans in the preceding table detailing non-performing assets. The following table presents TDRs, by class segment, for loans that were modified during the three months ended March 31, 2021 and 2020: Three months ended March 31 2021 2020 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Commercial and industrial 4 $ 1,894 1 $ 74 Real estate - commercial mortgage 2 4,162 1 392 Real estate - residential mortgage 23 7,626 7 660 Real estate - home equity 5 148 8 577 Real estate - construction 1 154 — — Total 35 $ 13,984 17 $ 1,703 Restructured loan modifications may include payment schedule modifications, interest rate concessions, bankruptcies, principal reduction or some combination of these concessions. The restructured loan modifications primarily included maturity date extensions, rate modifications and payment schedule modifications. In accordance with regulatory guidance, payment schedule modifications granted after March 13, 2020 to borrowers impacted by the effects of the COVID-19 pandemic and who were not delinquent at the time of the payment schedule modifications have been excluded from TDRs. As of March 31, 2021 and 2020, payment schedule modifications having a recorded investment of $3.6 billion and $1.0 billion, respectively, were excluded from TDRs based on this regulatory guidance. |