2nd Quarter 2021 Investor Presentation
Allowance for Credit Losses (ACL)
$ in millions
Allowance for Credit Losses on Loans and Loan Coverage
ALLL or
ACL
Loan
Discount
Total
Loan
Coverage
ACL (ALLL)/
Loans
ACL (ALLL)/
Loans excluding PPP (1)
$
ALLL as of 12/31/19
CECL Day 1 Adoption Impact
2020 Provision Expense
$ 68.2
$ 87.3
$ 155.5
0.47%
0.47%
151.4
(87.3)
64.1
82.5
82.5
2020 Net charge-offs
(64.1)
(64.1)
ACL as of 12/31/20
Q1-21 Provision
Q1-21 Net charge-offs
$ 238.0
$
0
$ 238.0
1.85%
1.98%
0.0
0.0
(2.9)
(2.9)
ACL as of 3/31/21
$ 235.1
$
0
$ 235.1
1.93%
2.06%
Q2-21 Recapture of Provision
(10.0)
(10.0)
Q2-21 Net recoveries
2.1
2.1
ACL as of 6/30/21
$227.2
$
0
$227.2
2.00%
2.08%
Reserve for Unfunded Commitments
as of
6/30/20
as of
9/30/20
as of
12/31/20
As of
3/31/21
As of
6/30/21
ACL Methodology as of 6/30/21:
Quantitative allocation: 0.98%
Moody's June 2021 scenarios with management's
weighting: S1 (24%) / Baseline (66%) / S2 (10%)
ā
Unfunded Commitments
$2,616
$2,344
$2,051
$2,039
$2,130
Qualitative allocation: 1.02%
ā
Reserve
$24.4
$24.4
$22.4
$22.4
$22.4
$139MM in individually assessed loans with related
reserves of $22MM
Reserve/Unfunded Balance
0.9%
1.0%
1.1%
1.1%
1.1%
Total ACL / Loans: 2.00%
Management's Provision Expense Outlook
Provision levels will reflect subsequent changes in Moody's Economic Scenario Forecast (noted above), and organic and acquired loan growth.
CECL = Current Expected Credit Losses methodology for estimating ACL
ACL = Allowance for Credit Losses on Loans
$
(1)
Non-GAAP measure that management believes aids in the discussion of results. See Appendix for Non-GAAP reconciliation.
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