Business Combination (Tables)

12 Months Ended

Dec. 31, 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(a)		13,411
Bank premises and equipment(a)		266
Operating lease equipment(a)		394
Intangible assets(a)		220
Servicing rights		263
Other assets(a)		750
Total assets acquired	$	17,970
Liabilities
Deposits	$	14,489
Other short-term borrowings(a)		267
Accrued taxes, interest and expenses(a)		265
Other liabilities(a)		194
Long-term debt(a)		727
Total liabilities assumed	$	15,942
Net identifiable assets acquired				2,028
Goodwill			$	1,777

(a)  Fair values have been updated from the estimates reported in the March 31, 2019 quarterly report on Form 10-Q.

Merger-related expenses

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

	For the years ended December 31,
($ in millions)	2019		2018
Salaries, wages and incentives	$	87		1
Employee benefits		3		-
Technology and communications		71		6
Net occupancy expense		13		-
Card and processing expense		1		1
Equipment expense		1		-
Other noninterest expense		46		23
Total	$	222		31

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
	For the years ended December 31,
($ in millions)	2019		2018
Net interest income	$	4,911		4,836
Noninterest income		3,638		3,184
Net income available to common shareholders		2,529		2,282

Acquired loans and leases

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 December 31, 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		(41)
Reclassifications (to) from nonaccretable difference		(14)
Balance as of December 31, 2019	$	147