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Loans and Leases (Tables)

12 Months Ended

Dec. 31, 2019

Loans and leases were as follows:



	At December 31,
(In thousands)	2019		2018
Commercial loan and lease portfolio:
Commercial and industrial	$	11,439,602	$	6,298,240
Commercial real estate	9,136,870		2,830,705
Lease financing	2,699,869		2,530,163
Total commercial loan and lease portfolio	23,276,341		11,659,108
Consumer loan portfolio:
Residential mortgage	6,179,805		2,335,835
Consumer installment	1,542,411		2,003,572
Home equity	3,498,907		3,074,505
Total consumer loan portfolio	11,221,123		7,413,912
Total loans and leases⁽¹⁾	$	34,497,464	$	19,073,020

(1)

Loans and leases are reported at historical cost including net direct fees and costs associated with originating and acquiring loans and leases, lease residuals, unearned income and unamortized purchase premiums and discounts. The aggregate amount of these loan and lease adjustments was a net deferred cost of $201.5 million and $1.5 million at December 31, 2019 and 2018, respectively.

Summary of PCI Loans

Information regarding acquired loans and leases included in loans and leases acquired at the Merger Date was as follows:



(In thousands)
PCI loans:
Contractually required payments receivable	$	413,176
Nonaccretable difference	(63,014		)
Expected cash flows	350,162
Accretable yield	38,479
Fair value of PCI loans	$	311,683

Purchased nonimpaired loans and leases:
Unpaid principal balance	$	15,636,020
Fair value discount	(217,098		)
Fair value at acquisition	15,418,922
Total fair value at acquisition	$	15,730,605

The carrying value and changes in accretable yield of all PCI loans were as follows:



	At or For Year Ended December 31,
(In thousands)	2019			2018
Balance of PCI loans, beginning of period	$	3,817		$	11,844
Accretable Yield
Balance, beginning of period	$	961		$	1,051
Addition attributable to the Merger	38,479			—
Accretion recognized in interest income	(11,453		)	(215		)
Net reclassification (to) from nonaccretable difference	10,091			370
Payments received	(10,445		)	(245		)
Balance, end of period	$	27,633		$	961
Balance of PCI loans, end of period	$	246,786		$	3,817

Schedule of Components of Total Lease Income

The components of the net investment in direct financing and sales-type leases were as follows:



(In thousands)	At December 31, 2019
Carrying amount	$	2,794,212
Unguaranteed residual assets	152,030
Net direct fees and costs and unearned income	(246,373		)
Total net investment in direct financing and sales-type leases	$	2,699,869

Schedule of Components of Total Lease Income

The components of total lease income were as follows:



(In thousands)	Year Ended December 31, 2019
Interest income - loans and leases:
Interest income on net investment in direct financing and sales-type leases	$	131,547
Leasing revenue (noninterest income):
Lease income from operating lease payments	100,975
Profit (loss) recorded on commencement date on sales-type	35,694
Gain (losses) on sales of leased equipment	27,049
Leasing Revenue	163,718
Total lease income	$	295,265

Undiscounted Future Minimum Lease Payments Receivable for Direct Financing and Sales-type Leases

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases, and a reconciliation to the carrying amount recorded at December 31, 2019 were as follows:



(In thousands)
2020	$	298,172
2021	432,641
2022	553,109
2023	588,042
2024	528,749
Thereafter	257,911
Equipment under leases not yet commenced	47,141
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	2,705,765
Third-party residual value guarantees	88,447
Total carrying amount of direct financing and sales-type leases	$	2,794,212

Undiscounted Future Minimum Lease Payments Expected to be Received for Operating Leases

Undiscounted future minimum lease payments expected to be received for operating leases at December 31, 2019 were as follows:



(In thousands)
2020	$	75,507
2021	54,274
2022	31,494
2023	14,405
2024	5,283
Thereafter	3,674
Total undiscounted future minimum lease payments	$	184,637

Summary of Net Gains On Sales of Loans

The following table summarizes the net gains on sales of loans and leases. We retain servicing on a majority of loans sold. See "Note 11. Loan Servicing Rights" for further information.



	Year Ended December 31,
(In millions)	2019			2018			2017
Sale proceeds, net	$	2,951,445		$	1,275,960		$	1,899,430
Recorded investment in loans and leases sold, including accrued interest	2,888,408			1,238,018			1,837,500
Loss on transfer of loans to held-for-sale, interest-only strips at initial value and other	(36,729		)	(4,247		)	(16,612		)
Net gains on sales of loans and leases	$	26,308		$	33,695		$	45,318

Interest-only Strips

nterest-only strips on the balance sheet related to loan sales were as follows:



	At December 31,
(In thousands)	2019		2018
Interest-only strips	$	12,813	$	16,835