Loans and Leases

3 Months Ended

Mar. 31, 2020

Loans and leases were as follows:



(In thousands)	At March 31, 2020		At December 31, 2019
Commercial loan and lease portfolio:
Commercial and industrial	$	12,326,943	$	11,439,602
Commercial real estate	9,486,904		9,136,870
Lease financing	2,708,998		2,699,869
Total commercial loan and lease portfolio	24,522,845		23,276,341
Consumer loan portfolio:
Residential mortgage	6,435,314		6,179,805
Consumer installment	1,509,953		1,542,411
Home equity	3,453,502		3,498,907
Total consumer loan portfolio	11,398,769		11,221,123
Total loans and leases⁽¹⁾	$	35,921,614	$	34,497,464


(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 $(177.8) million and $(201.5) million at March 31, 2020 and December 31, 2019, respectively.

Accrued interest receivable for loans and leases was $109.4 million and $106.5 million at March 31, 2020 and December 31, 2019, respectively, and is included in other assets on the Consolidated Statements of Financial Condition.

Acquired Loans and Leases The Corporation acquires loans and leases through business combinations and purchases of loan and lease portfolios. These loans and leases are recorded at fair value at acquisition and the fair value discount or premium is recognized as an adjustment to yield over the remaining life of each loan or lease. The Corporation purchased jumbo residential mortgage loans at fair value of $423.0 million during the three months ended March 31, 2020, none of which qualified as PCD loans.

See "Note 3. Summary of Significant Accounting Policies" for further acquired loans and leases policy information.

Lease Income The components of total lease income were as follows:



	Three Months Ended March 31,
(In thousands)	2020		2019
Interest income - loans and leases:
Interest income on net investment in direct financing and sales-type leases	$	34,156	$	32,384
Leasing revenue (noninterest income):
Lease income from operating lease payments	23,902		25,399
Profit recorded on commencement date on sales-type leases	3,580		7,057
Gains on sales of leased equipment	6,083		5,709
Leasing revenue	33,565		38,165
Total lease income	$	67,721	$	70,549

Loan Sales The following table summarizes the net gains on sales of loans and leases. We retain servicing on a majority of loans sold. See "Note 10. Loan Servicing Rights" for further information.



	Three Months Ended March 31,
(In millions)	2020		2019
Sale proceeds, net	$	555,182	$	274,986
Recorded investment in loans and leases sold, including accrued interest	537,180		267,109
Other	2,588		340
Net gains on sales of loans and leases	$	20,590	$	8,217

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



(In thousands)	At March 31, 2020		At December 31, 2019
Interest-only strips	$	10,951	$	12,813

We recorded $224 thousand of impairment charges on interest-only strips during the three months ended March 31, 2020 and no impairment charges during the three months ended March 31, 2019.

The Corporation's agreements to sell consumer loans typically contain certain representations, warranties and covenants regarding the loans sold or securitized. These representations, warranties and covenants generally relate to, among other things, the ownership of the loan, the validity, priority and perfection of the lien securing the loan, accuracy of information supplied to the buyer or investor, the loan's compliance with the criteria set forth in the agreement, the manner in which the loans will be serviced, payment delinquency and compliance with applicable laws and regulations. These agreements generally require the repurchase of loans or indemnification in the event we breach these representations, warranties or covenants and such breaches are not cured. In addition, some agreements contain a requirement to repurchase loans as a result of early payoffs by the borrower, early payment default of the borrower or the failure to obtain valid title. Losses related to repurchases pursuant to such representations, warranties and covenants were immaterial for the three months ended March 31, 2020 and 2019.