Business Combination (Tables)

3 Months Ended

Mar. 31, 2020

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 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		13,414	(a)
Bank premises and equipment		266	(a)
Operating lease equipment		394	(a)
Intangible assets		219	(a)
Servicing rights		263
Other assets		750	(a)
Total assets acquired	$	17,972
Liabilities
Deposits	$	14,489
Other short-term borrowings		267	(a)
Accrued taxes, interest and expenses		276	(a)
Other liabilities		194	(a)
Long-term debt		727	(a)
Total liabilities assumed	$	15,953
Net identifiable assets acquired					2,019
Goodwill				$	1,786

(a) Fair values have been updated from the preliminary 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     March 31,
($ in millions)		2020		2019
Compensation and benefits	$		2		35
Technology and communications			3		11
Net occupancy expense			1		-
Marketing expense			-		4
Other noninterest expense			1		26
Total	$		7		76

Unaudited pro forma

($ in millions)		Unaudited Pro Forma Information For the three months ended March 31, 2019
Net interest income	$		1,233
Noninterest income			1,204
Net income available to common shareholders			893

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 final as of March 31, 2020.

($ 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