Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs | PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, IMPAIRED 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 December 31, 2019 and 2018. 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 Current (1) 30-89 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 December 31, 2019 Commercial and industrial $ 4,455,381 $ 11,468 $ 14,676 $ 26,144 $ 4,481,525 $ 29,995 $ 2,207 Agricultural 398,676 850 6,090 6,940 405,616 5,954 358 Commercial real estate: Office, retail, and industrial 1,830,321 2,943 15,454 18,397 1,848,718 25,857 546 Multi-family 853,762 211 2,580 2,791 856,553 2,697 — Construction 588,065 4,876 152 5,028 593,093 152 — Other commercial real estate 1,377,678 3,233 2,797 6,030 1,383,708 4,729 529 Total commercial real estate 4,649,826 11,263 20,983 32,246 4,682,072 33,435 1,075 Total corporate loans 9,503,883 23,581 41,749 65,330 9,569,213 69,384 3,640 Home equity 841,908 4,992 4,554 9,546 851,454 8,443 146 1-4 family mortgages 1,917,648 5,452 3,978 9,430 1,927,078 4,442 1,203 Installment 491,406 1,167 12 1,179 492,585 — 12 Total consumer loans 3,250,962 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 As of December 31, 2018 Commercial and industrial $ 4,085,164 $ 8,832 $ 26,297 $ 35,129 $ 4,120,293 $ 33,507 $ 422 Agricultural 428,357 940 1,631 2,571 430,928 1,564 101 Commercial real estate: Office, retail, and industrial 1,803,059 8,209 9,649 17,858 1,820,917 6,510 4,081 Multi-family 759,402 1,487 3,296 4,783 764,185 3,107 189 Construction 645,774 3,419 144 3,563 649,337 144 — Other commercial real estate 1,353,442 4,921 3,447 8,368 1,361,810 2,854 2,197 Total commercial real estate 4,561,677 18,036 16,536 34,572 4,596,249 12,615 6,467 Total corporate loans 9,075,198 27,808 44,464 72,272 9,147,470 47,686 6,990 Home equity 843,217 6,285 2,105 8,390 851,607 5,393 104 1-4 family mortgages 1,009,925 4,361 2,895 7,256 1,017,181 3,856 1,147 Installment 428,836 1,648 41 1,689 430,525 — 41 Total consumer loans 2,281,978 12,294 5,041 17,335 2,299,313 9,249 1,292 Total loans $ 11,357,176 $ 40,102 $ 49,505 $ 89,607 $ 11,446,783 $ 56,935 $ 8,282 (1) PCI loans with an accretable yield are considered current. Allowance for Credit Losses The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb estimated losses inherent 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 years ended December 31, 2019, 2018, and 2017 is presented in the table below. Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Commercial, Industrial, and Agricultural Office, Retail, and Industrial Multi-family Construction Other Commercial Real Estate Consumer Reserve for Unfunded Commitments Total Allowance for Credit Losses Year Ended December 31, 2019 Beginning balance $ 63,276 $ 7,900 $ 2,464 $ 2,173 $ 4,934 $ 21,472 $ 1,200 $ 103,419 Charge-offs (28,008) (2,800) (340) (10) (800) (14,250) — (46,208) Recoveries 4,815 253 478 19 357 2,062 — 7,984 Net charge-offs (23,193) (2,547) 138 9 (443) (12,188) — (38,224) Provision for loan 22,747 2,227 348 (485) 1,917 17,273 — 44,027 Ending Balance $ 62,830 $ 7,580 $ 2,950 $ 1,697 $ 6,408 $ 26,557 $ 1,200 $ 109,222 Year Ended December 31, 2018 Beginning balance $ 55,791 $ 10,996 $ 2,534 $ 3,481 $ 6,381 $ 16,546 $ 1,000 $ 96,729 Charge-offs (36,477) (2,286) (5) (1) (410) (8,806) — (47,985) Recoveries 2,946 334 3 125 1,532 1,681 — 6,621 Net charge-offs (33,531) (1,952) (2) 124 1,122 (7,125) — (41,364) Provision for loan losses and other 41,016 (1,144) (68) (1,432) (2,569) 12,051 200 48,054 Ending balance $ 63,276 $ 7,900 $ 2,464 $ 2,173 $ 4,934 $ 21,472 $ 1,200 $ 103,419 Year Ended December 31, 2017 Beginning balance $ 40,709 $ 17,595 $ 3,261 $ 3,444 $ 7,739 $ 13,335 $ 1,000 $ 87,083 Charge-offs (22,885) (190) — (38) (755) (6,955) — (30,823) Recoveries 4,150 2,935 39 270 244 1,541 — 9,179 Net charge-offs (18,735) 2,745 39 232 (511) (5,414) — (21,644) Provision for loan 33,817 (9,344) (766) (195) (847) 8,625 — 31,290 Ending balance $ 55,791 $ 10,996 $ 2,534 $ 3,481 $ 6,381 $ 16,546 $ 1,000 $ 96,729 The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of December 31, 2019 and 2018. Loans and Related Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Loans Allowance for Credit Losses Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total As of December 31, 2019 Commercial, industrial, and $ 34,142 $ 4,807,114 $ 45,885 $ 4,887,141 $ 3,414 $ 59,108 $ 308 $ 62,830 Commercial real estate: Office, retail, and industrial 24,820 1,795,557 28,341 1,848,718 578 6,899 103 7,580 Multi-family 1,995 851,857 2,701 856,553 — 2,854 96 2,950 Construction 123 581,747 11,223 593,093 — 1,681 16 1,697 Other commercial real estate 3,241 1,323,635 56,832 1,383,708 — 4,867 1,541 6,408 Total commercial real estate 30,179 4,552,796 99,097 4,682,072 578 16,301 1,756 18,635 Total corporate loans 64,321 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 Reserve for unfunded — — — — — 1,200 — 1,200 Total loans $ 64,321 $ 12,608,826 $ 167,183 $ 12,840,330 $ 3,992 $ 102,033 $ 3,197 $ 109,222 As of December 31, 2018 Commercial, industrial, and $ 32,415 $ 4,514,349 $ 4,457 $ 4,551,221 $ 3,961 $ 58,947 $ 368 $ 63,276 Commercial real estate: Office, retail, and industrial 5,057 1,799,304 16,556 1,820,917 748 5,984 1,168 7,900 Multi-family 3,492 747,030 13,663 764,185 — 2,154 310 2,464 Construction — 644,499 4,838 649,337 — 2,019 154 2,173 Other commercial real estate 1,545 1,305,444 54,821 1,361,810 — 4,180 754 4,934 Total commercial real estate 10,094 4,496,277 89,878 4,596,249 748 14,337 2,386 17,471 Total corporate loans 42,509 9,010,626 94,335 9,147,470 4,709 73,284 2,754 80,747 Consumer — 2,279,780 19,533 2,299,313 — 20,094 1,378 21,472 Reserve for unfunded — — — — — 1,200 — 1,200 Total loans $ 42,509 $ 11,290,406 $ 113,868 $ 11,446,783 $ 4,709 $ 94,578 $ 4,132 $ 103,419 Loans Individually Evaluated for Impairment The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2019 and 2018. PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of December 31, 2019 2018 Recorded Investment In Recorded Investment In Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Commercial and industrial $ 12,885 $ 15,516 $ 52,559 $ 2,456 $ 7,550 $ 23,349 $ 49,102 $ 3,960 Agricultural 1,889 3,852 9,293 958 1,318 198 3,997 1 Commercial real estate: Office, retail, and industrial 14,111 10,709 37,007 578 1,861 3,196 6,141 748 Multi-family 1,995 — 1,995 — 3,492 — 3,492 — Construction 123 — 123 — — — — — Other commercial real estate 3,241 — 3,495 — 1,545 — 1,612 — Total commercial real estate 19,470 10,709 42,620 578 6,898 3,196 11,245 748 Total impaired loans $ 34,244 $ 30,077 $ 104,472 $ 3,992 $ 15,766 $ 26,743 $ 64,344 $ 4,709 The following table presents the average recorded investment and interest income recognized on impaired loans by class for the years ended December 31, 2019, 2018, and 2017. PCI loans are excluded from this disclosure. Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class (Dollar amounts in thousands) Years Ended December 31, 2019 2018 2017 Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) Average Interest Income Recognized (1) Commercial and industrial $ 26,700 $ 115 $ 33,732 $ 225 $ 33,956 $ 1,059 Agricultural 4,374 20 2,026 32 279 101 Commercial real estate: Office, retail, and industrial 17,453 73 8,105 892 13,106 325 Multi-family 3,164 112 2,404 66 441 28 Construction 74 3 — — 7 136 Other commercial real estate 2,662 90 2,179 406 1,615 41 Total commercial real estate 23,352 278 12,688 1,364 15,169 530 Total impaired loans $ 54,427 $ 413 $ 48,445 $ 1,621 $ 49,404 $ 1,690 (1) Recorded using the cash basis of accounting. 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 periodically. The following tables present credit quality indicators by class for corporate and consumer loans as of December 31, 2019 and 2018. 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 Agricultural 350,827 32,764 16,071 5,954 405,616 Commercial real estate: Office, retail, and industrial 1,747,287 42,230 33,344 25,857 1,848,718 Multi-family 839,615 8,279 5,962 2,697 856,553 Construction 564,495 17,977 10,469 152 593,093 Other commercial real estate 1,295,155 39,788 44,036 4,729 1,383,708 Total commercial real estate 4,446,552 108,274 93,811 33,435 4,682,072 Total corporate loans $ 9,122,088 $ 188,703 $ 189,038 $ 69,384 $ 9,569,213 As of December 31, 2018 Commercial and industrial $ 3,952,066 $ 74,878 $ 59,842 $ 33,507 $ 4,120,293 Agricultural 407,542 10,070 11,752 1,564 430,928 Commercial real estate: Office, retail, and industrial 1,735,426 35,853 43,128 6,510 1,820,917 Multi-family 745,131 9,273 6,674 3,107 764,185 Construction 624,446 16,370 8,377 144 649,337 Other commercial real estate 1,294,128 47,736 17,092 2,854 1,361,810 Total commercial real estate 4,399,131 109,232 75,271 12,615 4,596,249 Total corporate loans $ 8,758,739 $ 194,180 $ 146,865 $ 47,686 $ 9,147,470 (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) Performing Non-accrual Total As of December 31, 2019 Home equity $ 843,011 $ 8,443 $ 851,454 1-4 family mortgages 1,922,636 4,442 1,927,078 Installment 492,585 — 492,585 Total consumer loans $ 3,258,232 $ 12,885 $ 3,271,117 As of December 31, 2018 Home equity $ 846,214 $ 5,393 $ 851,607 1-4 family mortgages 1,013,325 3,856 1,017,181 Installment 430,525 — 430,525 Total consumer loans $ 2,290,064 $ 9,249 $ 2,299,313 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 December 31, 2019 and 2018. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDRs. TDRs by Class (Dollar amounts in thousands) As of December 31, 2019 2018 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 227 $ 16,420 $ 16,647 $ 246 $ 5,994 $ 6,240 Agricultural — — — — — — Commercial real estate: Office, retail, and industrial — 3,600 3,600 — — — Multi-family 163 — 163 557 — 557 Construction — — — — — — Other commercial real estate 170 — 170 181 — 181 Total commercial real estate 333 3,600 3,933 738 — 738 Total corporate loans 560 20,020 20,580 984 5,994 6,978 Home equity 36 240 276 113 327 440 1-4 family mortgages 637 — 637 769 291 1,060 Installment — 254 254 — — — Total consumer loans 673 494 1,167 882 618 1,500 Total loans $ 1,233 $ 20,514 $ 21,747 $ 1,866 $ 6,612 $ 8,478 (1) These TDRs are included in non-accrual loans in the preceding tables. TDRs are included in the calculation of the allowance for credit losses in the same manner as impaired loans. There were $2.2 million of specific reserves related to TDRs as of December 31, 2019 and no specific reserves related to TDRs as of December 31, 2018. There were no material restructurings during the year ended December 31, 2018. The following table presents a summary of loans that were restructured during the years ended December 31, 2019 and 2017. Loans Restructured During the Period (Dollar amounts in thousands) Number of Loans Pre-Modification Recorded Investment Funds Disbursed Interest and Escrow Capitalized Charge-offs Post-Modification Recorded Investment Year Ended December 31, 2019 Commercial and industrial 5 $ 13,616 $ — $ — $ 1,424 $ 12,192 Office, retail, and industrial 2 4,473 — — 873 3,600 Multi-family 1 12 — — — 12 Total loans restructured during the period 8 $ 18,101 $ — $ — $ 2,297 $ 15,804 Year Ended December 31, 2017 Commercial and industrial 12 $ 26,733 $ 9,035 $ — $ 6,232 $ 29,536 Office, retail, and industrial 2 3,656 — — — 3,656 Total loans restructured during the period 14 $ 30,389 $ 9,035 $ — $ 6,232 $ 33,192 Accruing TDRs that do not perform in accordance with their modified terms are transferred to non-accrual. No TDRs had payment defaults during the years ended December 31, 2019, 2018, and 2017 where the default occurred within twelve months of the restructure date. A rollforward of the carrying value of TDRs for the years ended December 31, 2019, 2018, and 2017 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Years Ended December 31, 2019 2018 2017 Accruing Beginning balance $ 1,866 $ 1,796 $ 2,291 Additions 12 — 15,819 Net payments (262) (50) (1,923) Returned to performing status — — — Net transfers (to) from non-accrual (383) 120 (14,391) Ending balance 1,233 1,866 1,796 Non-accrual Beginning balance 6,612 24,533 6,297 Additions 18,089 527 14,570 Net payments (1,013) (14,403) (4,380) Charge-offs (3,557) (3,925) (6,345) Transfers to OREO — — — Loans sold — — — Net transfers from (to) accruing 383 (120) 14,391 Ending balance 20,514 6,612 24,533 Total TDRs $ 21,747 $ 8,478 $ 26,329 There were $530,000 and $3.8 million of commitments to lend additional funds to borrowers with TDRs as of December 31, 2019 and 2018, respectively. |