Loans and leases and the allowance for credit losses (Tables)

3 Months Ended

Mar. 31, 2017

Summary of Current, Past Due and Nonaccrual Loans

A summary of current, past due and nonaccrual loans as of March 31, 2017 and December 31, 2016 follows:

	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More (a)		Accruing Loans Acquired at a Discount Past Due 90 days or More (b)		Purchased Impaired (c)		Nonaccrual		Total
	(In thousands)
March 31, 2017
Commercial, financial, leasing, etc.	$	21,986,926		38,046		6,695		387		1,825		261,497	$	22,295,376
Real estate:
Commercial		25,088,525		185,331		17,322		13,618		26,391		183,113		25,514,300
Residential builder and developer		1,714,177		15,185		—		1,972		12,798		13,573		1,757,705
Other commercial construction		5,747,834		23,973		—		—		13,879		13,963		5,799,649
Residential		17,004,912		431,427		251,308		11,116		362,283		237,685		18,298,731
Residential — limited documentation		3,086,264		91,177		—		—		135,759		112,560		3,425,760
Consumer:
Home equity lines and loans		5,398,590		32,939		—		12,238		—		79,962		5,523,729
Automobile		3,049,712		48,751		—		—		—		16,109		3,114,572
Other		3,519,996		25,876		4,694		24,401		—		8,213		3,583,180
Total	$	86,596,936		892,705		280,019		63,732		552,935		926,675	$	89,313,002

December 31, 2016
Commercial, financial, leasing, etc.	$	22,287,857		53,503		6,195		417		641		261,434	$	22,610,047
Real estate:
Commercial		25,076,684		183,531		7,054		12,870		31,404		176,201		25,487,744
Residential builder and developer		1,884,989		4,667		5		1,952		14,006		16,707		1,922,326
Other commercial construction		5,985,118		77,701		922		198		14,274		18,111		6,096,324
Residential		17,631,377		485,468		281,298		11,537		378,549		229,242		19,017,471
Residential — limited documentation		3,239,344		88,366		—		—		139,158		106,573		3,573,441
Consumer:
Home equity lines and loans		5,502,091		44,565		—		12,678		—		81,815		5,641,149
Automobile		2,869,232		56,158		—		1		—		18,674		2,944,065
Other		3,491,629		31,286		5,185		21,491		—		11,258		3,560,849
Total	$	87,968,321		1,025,245		300,659		61,144		578,032		920,015	$	90,853,416

(a)	Excludes loans acquired at a discount.

(b)	Loans acquired at a discount that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(c)	Accruing loans acquired at a discount that were impaired at acquisition date and recorded at fair value.

Outstanding Principal Balance and Carrying Amount of Loans and Included in Consolidated Balance Sheet

The outstanding principal balance and the carrying amount of loans acquired at a discount that were recorded at fair value at the acquisition date and included in the consolidated balance sheet were as follows:

	March 31,		December 31,
	2017		2016
	(In thousands)

Outstanding principal balance	$	2,089,909		2,311,699
Carrying amount:
Commercial, financial, leasing, etc.		55,671		59,928
Commercial real estate		415,047		456,820
Residential real estate		765,986		799,802
Consumer		369,803		487,721
	$	1,606,507		1,804,271

Summary of Changes in Accretable Yield for Acquired Loans

A summary of changes in the accretable yield for loans acquired at a discount for the three-month periods ended March 31, 2017 and 2016 follows:


	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)

Balance at beginning of period	$	154,233			201,153		$	184,618			296,434
Interest income		(10,925	)		(25,518	)		(14,062	)		(37,862	)
Reclassifications from nonaccretable balance		146			3,183			629			5,664
Other (a)		—			2,492			—			4,781
Balance at end of period	$	143,454			181,310		$	171,185			269,017

(a)	Other changes in expected cash flows including changes in interest rates and prepayment assumptions.

Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the three months ended March 31, 2017 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)

Beginning balance	$	330,833			362,719			61,127			156,288			78,030	$	988,997
Provision for credit losses		28,823			1,262			5,637			18,832			446		55,000
Net charge-offs
Charge-offs		(16,357	)		(5,445	)		(6,259	)		(34,503	)		—		(62,564	)
Recoveries		4,461			1,474			1,507			12,555			—		19,997
Net charge-offs		(11,896	)		(3,971	)		(4,752	)		(21,948	)		—		(42,567	)
Ending balance	$	347,760			360,010			62,012			153,172			78,476	$	1,001,430

Changes in the allowance for credit losses for the three months ended March 31, 2016 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(In thousands)

Beginning balance	$	300,404			326,831			72,238			178,320			78,199		$	955,992
Provision for credit losses		24,364			4,013			1,218			19,893			(488	)		49,000
Net charge-offs
Charge-offs		(6,149	)		(1,272	)		(6,972	)		(44,319	)		—			(58,712	)
Recoveries		5,247			2,413			1,887			6,925			—			16,472
Net (charge-offs) recoveries		(902	)		1,141			(5,085	)		(37,394	)		—			(42,240	)
Ending balance	$	323,866			331,985			68,371			160,819			77,711		$	962,752

Impaired Loans and Leases

The following tables provide information with respect to loans and leases that were considered impaired as of March 31, 2017 and December 31, 2016 and for the three-month periods ended March 31, 2017 and 2016.

	March 31, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	177,001		196,338		64,056		168,072		184,432		48,480
Real estate:
Commercial		64,746		80,482		10,541		71,862		86,666		11,620
Residential builder and developer		6,870		7,031		403		7,396		8,361		506
Other commercial construction		2,203		2,673		398		2,475		2,731		448
Residential		91,077		111,477		3,738		86,680		105,944		3,457
Residential — limited documentation		81,922		97,658		5,000		82,547		97,718		6,000
Consumer:
Home equity lines and loans		46,132		50,262		8,389		44,693		48,965		8,027
Automobile		16,087		16,602		3,508		16,982		18,272		3,740
Other		3,522		3,670		725		3,791		5,296		776
		489,560		566,193		96,758		484,498		558,385		83,054
With no related allowance recorded:
Commercial, financial, leasing, etc.		92,546		127,252		—		100,805		124,786		—
Real estate:
Commercial		126,437		139,103		—		113,276		121,846		—
Residential builder and developer		11,748		18,863		—		14,368		21,124		—
Other commercial construction		12,029		31,072		—		15,933		35,281		—
Residential		14,946		22,209		—		16,823		24,161		—
Residential — limited documentation		14,466		22,941		—		15,429		24,590		—
		272,172		361,440		—		276,634		351,788		—
Total:
Commercial, financial, leasing, etc.		269,547		323,590		64,056		268,877		309,218		48,480
Real estate:
Commercial		191,183		219,585		10,541		185,138		208,512		11,620
Residential builder and developer		18,618		25,894		403		21,764		29,485		506
Other commercial construction		14,232		33,745		398		18,408		38,012		448
Residential		106,023		133,686		3,738		103,503		130,105		3,457
Residential — limited documentation		96,388		120,599		5,000		97,976		122,308		6,000
Consumer:
Home equity lines and loans		46,132		50,262		8,389		44,693		48,965		8,027
Automobile		16,087		16,602		3,508		16,982		18,272		3,740
Other		3,522		3,670		725		3,791		5,296		776
Total	$	761,732		927,633		96,758		761,132		910,173		83,054

Interest Income Recognized on Impaired Loans

	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)

Commercial, financial, leasing, etc.	$	271,825		478		478		296,584		611		611
Real estate:
Commercial		182,857		975		975		182,454		1,474		1,474
Residential builder and developer		20,051		429		429		33,750		42		42
Other commercial construction		16,328		847		847		16,868		38		38
Residential		103,875		1,636		774		96,788		1,372		882
Residential — limited documentation		97,121		1,500		384		107,473		1,472		630
Consumer:
Home equity lines and loans		45,542		399		100		26,019		246		85
Automobile		16,504		275		19		21,962		339		36
Other		3,598		72		3		17,717		178		27
Total	$	757,701		6,611		4,009		799,615		5,772		3,825

Summary of Loan Grades

			Real Estate
	Commercial,				Residential		Other
	Financial,				Builder and		Commercial
	Leasing, etc.		Commercial		Developer		Construction
	(In thousands)
March 31, 2017
Pass	$	21,036,982		24,589,201		1,660,537		5,609,985
Criticized accrual		996,897		741,986		83,595		175,701
Criticized nonaccrual		261,497		183,113		13,573		13,963
Total	$	22,295,376		25,514,300		1,757,705		5,799,649
December 31, 2016
Pass	$	21,398,581		24,570,269		1,789,071		5,912,351
Criticized accrual		950,032		741,274		116,548		165,862
Criticized nonaccrual		261,434		176,201		16,707		18,111
Total	$	22,610,047		25,487,744		1,922,326		6,096,324

Allocation of Allowance for Credit Losses on Basis of Company's Impairment Methodology

The allocation of the allowance for credit losses summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(In thousands)
March 31, 2017
Individually evaluated for impairment	$	64,056		11,342		8,738		12,622	$	96,758
Collectively evaluated for impairment		283,704		346,795		49,902		140,550		820,951
Purchased impaired		—		1,873		3,372		—		5,245
Allocated	$	347,760		360,010		62,012		153,172		922,954
Unallocated										78,476
Total									$	1,001,430
December 31, 2016
Individually evaluated for impairment	$	48,480		12,500		9,457		12,543	$	82,980
Collectively evaluated for impairment		282,353		348,301		47,993		143,745		822,392
Purchased impaired		—		1,918		3,677		—		5,595
Allocated	$	330,833		362,719		61,127		156,288		910,967
Unallocated										78,030
Total									$	988,997

Recorded Investment in Loans and Leases on Basis of Company's Impairment Methodology

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(In thousands)
March 31, 2017
Individually evaluated for impairment	$	269,547		224,033		202,411		65,741	$	761,732
Collectively evaluated for impairment		22,024,004		32,794,553		21,024,038		12,155,740		87,998,335
Purchased impaired		1,825		53,068		498,042		—		552,935
Total	$	22,295,376		33,071,654		21,724,491		12,221,481	$	89,313,002
December 31, 2016
Individually evaluated for impairment	$	268,877		224,630		201,479		65,466	$	760,452
Collectively evaluated for impairment		22,340,529		33,222,080		21,871,726		12,080,597		89,514,932
Purchased impaired		641		59,684		517,707		—		578,032
Total	$	22,610,047		33,506,394		22,590,912		12,146,063	$	90,853,416

Loan Modification Activities that were Considered Troubled Debt Restructurings

The table that follows summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended March 31, 2017 and 2016:

					Post-modification (a)
	Number		Pre- modification recorded investment		Principal Deferral		Other		Combination of Concession Types		Total
Three Months Ended March 31, 2017	(Dollars in thousands)

Commercial, financial, leasing, etc.	50		$	11,921	$	4,389	$	806	$	2,728	$	7,923
Real estate:
Commercial	20			6,702		2,991		—		3,606		6,597
Residential builder and developer	3			12,291		—		—		10,879		10,879
Other commercial construction	1			102		102		—		—		102
Residential	41			9,380		5,593		—		4,355		9,948
Residential — limited documentation	6			1,378		-		—		1,525		1,525
Consumer:
Home equity lines and loans	25			2,502		163		491		1,848		2,502
Automobile	20			390		383		—		7		390
Other	2			26		26		—		—		26
Total		168	$	44,692	$	13,647	$	1,297	$	24,948	$	39,892

Three Months Ended March 31, 2016

Commercial, financial, leasing, etc.		31	$	17,728	$	12,721	$	—	$	5,952	$	18,673
Real estate:
Commercial		21		7,416		3,448		—		3,924		7,372
Residential		27		4,302		2,191		—		2,369		4,560
Residential — limited documentation		6		1,437		138		—		1,379		1,517
Consumer:
Home equity lines and loans		26		2,831		335		—		2,496		2,831
Automobile		72		644		521		38		85		644
Other		36		546		374		25		147		546
Total		219	$	34,904	$	19,728	$	63	$	16,352	$	36,143

(a)	Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages. The present value of interest rate concessions, discounted at the effective rate of the original loan, was not material.