Business Combination (Tables)

9 Months Ended

Sep. 30, 2019

Business Combination

Consideration Paid, Noncontrolling Interest Recognized, and Acquired Identifiable Assets and Liabilities

The following table reflects consideration paid and the noncontrolling interest recognized for MB Financial, Inc.’s net assets and the amounts of acquired identifiable assets and liabilities assumed at their estimated fair value as of the acquisition date:
($ in millions)
Consideration paid
Cash payments					$	469
Fair value of common stock issued						3,121
Stock-based awards						38
Dividend receivable from MB Financial, Inc.						(20)
Total consideration paid					$	3,608
Fair value of noncontrolling interest in acquiree					$	197
Net Identifiable Assets Acquired, at Fair Value:
Assets
Cash and due from banks		$	1,679
Federal funds sold			35
Other short-term investments			53
Available-for-sale debt and other securities			832
Held-to-maturity securities			4
Equity securities			51
Loans and leases held for sale			12
Portfolio loans and leases			13,409	(a)
Bank premises and equipment			250	(a)
Operating lease equipment			416	(a)
Intangible assets			195	(a)
Servicing rights			263
Other assets			723	(a)
Total assets acquired		$	17,922
Liabilities
Deposits		$	14,489
Other short-term borrowings			267	(a)
Accrued taxes, interest and expenses			260	(a)
Other liabilities			196	(a)
Long-term debt			720	(a)
Total liabilities assumed		$	15,932
Net identifiable assets acquired						1,990
Goodwill					$	1,815
(a)	Fair values have been updated from the estimates reported in the March 31, 2019 Form 10-Q.

Merger-Related Expenses

The following table provides a summary of merger-related expenses recorded in noninterest expense:

		For the three months ended		For the nine months ended
		September 30,		September 30,
($ in millions)		2019	2018	2019	2018
Salaries, wages and incentives	$	14	-	85	-
Employee benefits		-	-	3	-
Technology and communications		8	-	68	-
Net occupancy expense		3	-	10	-
Card and processing expense		-	-	1	-
Equipment expense		-	-	1	-
Other noninterest expense		3	1	45	3
Total	$	28	1	213	3

Unaudited Pro Forma

The following table presents unaudited pro forma information as if the acquisition of MB Financial, Inc. had occurred on January 1, 2018.

		Unaudited Pro Forma Information		Unaudited Pro Forma Information
		For the three months ended September 30,		For the nine months ended September 30,
($ in millions)		2019	2018	2019	2018
Net interest income	$	1,222	1,214	3,692	3,583
Noninterest income		738	661	2,600	2,514
Net income attributable to common shareholders		513	469	1,824	1,743

Accounting for Certain Loans Acquired in Transfer Disclosure [Table Text Block]

The following table reflects the contractually required payments receivable, cash flows expected to be collected and estimated fair value of loans identified as PCI loans on the acquisition date of MB Financial, Inc. These fair value estimates are considered preliminary as of September 30, 2019.

($ in millions)		March 22, 2019
Contractually required payments including interest	$	1,139
Less: Nonaccretable difference		81
Cash flows expected to be collected		1,058
Less: Accretable yield		202
Fair value of loans acquired	$	856

A summary of activity related to accretable yield is as follows:
($ in millions)		Accretable Yield
Balance as of December 31, 2018	$	-
Additions		202
Accretion		(30)
Reclassifications (to) from nonaccretable difference		(2)
Balance as of September 30, 2019	$	170