Loans and Leases

9 Months Ended

Sep. 30, 2020

Loans and leases were as follows:



(In thousands)	At September 30, 2020		At December 31, 2019
Commercial loan and lease portfolio:
Commercial and industrial	$	11,557,237	$	11,439,602
Commercial real estate	9,627,330		9,136,870
Lease financing	2,724,686		2,699,869
Total commercial loan and lease portfolio	23,909,253		23,276,341
Consumer loan portfolio:
Residential mortgage	5,790,251		6,179,805
Home equity	3,302,983		3,498,907
Consumer installment	1,341,204		1,542,411
Total consumer loan portfolio	10,434,438		11,221,123
Total loans and leases⁽¹⁾	$	34,343,691	$	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 $(174.2) million and $(201.5) million at September 30, 2020 and December 31, 2019, respectively.

Accrued interest receivable for loans and leases was $91.6 million and $106.5 million at September 30, 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 their 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 September 30,				Nine Months Ended September 30,
(In thousands)	2020		2019		2020		2019
Interest income - loans and leases:
Interest income on net investment in direct financing and sales-type leases	$	32,696	$	32,833	$	100,655	$	98,116
Leasing revenue (noninterest income):
Lease income from operating lease payments	23,542		25,492		71,243		76,388
Profit recorded on commencement date on sales-type leases	4,503		7,983		13,690		22,289
Gains on sales of leased equipment	3,860		6,115		17,709		18,355
Leasing revenue	31,905		39,590		102,642		117,032
Total lease income	$	64,601	$	72,423	$	203,297	$	215,148

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



	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2020			2019			2020			2019
Sale proceeds, net	$	667,807		$	472,800		$	1,802,193		$	1,066,576
Recorded investment in loans and leases sold, including accrued interest	635,149			458,697			1,727,687			1,033,961
Other	(9,168		)	(20,087		)	(1,392		)	(19,241		)
Net gains on sales of loans and leases	$	23,490		$	(5,984	)	$	73,114		$	13,374

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



(In thousands)	At September 30, 2020		At December 31, 2019
Interest-only strips	$	9,555	$	12,813

The Corporation recorded no impairment charges during the three months ended September 30, 2020 and $224 thousand of impairment charges on interest-only strips for the nine months ended September 30, 2020, and $22 thousand and $43 thousand of impairment charges for the three and nine months ended September 30, 2019, respectively.

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 of the purchaser in the event these representations are breached, 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 and nine months ended September 30, 2020 and 2019.