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

6 Months Ended

Jun. 30, 2018

Summary of Current, Past Due and Nonaccrual Loans

A summary of current, past due and nonaccrual loans as of June 30, 2018 and December 31, 2017 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)
June 30, 2018
Commercial, financial, leasing, etc.	$	21,615,676		29,906		4,210		31		3		245,031	$	21,894,857
Real estate:
Commercial		25,352,075		212,480		10,621		4,330		10,579		153,552		25,743,637
Residential builder and developer		1,628,793		8,668		—		—		547		5,212		1,643,220
Other commercial construction		6,597,814		140,490		4,000		—		1,053		7,723		6,751,080
Residential		14,456,180		425,894		200,159		8,019		244,865		215,850		15,550,967
Residential — limited documentation		2,488,340		79,179		—		—		95,418		96,808		2,759,745
Consumer:
Home equity lines and loans		4,931,331		29,589		49		6,856		—		66,690		5,034,515
Automobile		3,450,113		69,398		—		—		—		19,564		3,539,075
Other		4,807,912		30,732		3,987		28,169		—		9,554		4,880,354
Total	$	85,328,234		1,026,336		223,026		47,405		352,465		819,984	$	87,797,450

December 31, 2017
Commercial, financial, leasing, etc.	$	21,332,234		167,756		1,322		327		21		240,991	$	21,742,651
Real estate:
Commercial		24,910,381		166,305		4,444		6,016		16,815		184,982		25,288,943
Residential builder and developer		1,618,973		5,159		—		—		1,135		6,451		1,631,718
Other commercial construction		6,407,451		23,467		—		—		4,706		10,088		6,445,712
Residential		15,376,759		474,372		233,437		7,582		282,102		235,834		16,610,086
Residential — limited documentation		2,718,019		83,898		—		—		105,236		96,105		3,003,258
Consumer:
Home equity lines and loans		5,171,345		38,546		—		9,391		—		74,500		5,293,782
Automobile		3,441,371		78,511		—		—		—		23,781		3,543,663
Other		4,349,071		40,929		5,202		24,102		—		9,866		4,429,170
Total	$	85,325,604		1,078,943		244,405		47,418		410,015		882,598	$	87,988,983

(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:

	June 30,		December 31,
	2018		2017
	(In thousands)

Outstanding principal balance	$	1,213,758		1,394,188
Carrying amount:
Commercial, financial, leasing, etc.		27,726		31,105
Commercial real estate		183,126		228,054
Residential real estate		545,438		620,827
Consumer		107,492		123,413
	$	863,782		1,003,399

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 months and six months ended June 30, 2018 and 2017 follows:


	Three Months Ended June 30,
	2018						2017
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)

Balance at beginning of period	$	149,007			118,184		$	143,454		$	181,310
Interest income		(7,969	)		(15,394	)		(10,806	)		(20,923	)
Reclassifications from nonaccretable balance		8,350			10,998			884			1,852
Other (a)		—			3,927			—			860
Balance at end of period	$	149,388			117,715		$	133,532		$	163,099


	Six Months Ended June 30,
	2018						2017
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)

Balance at beginning of period	$	157,918		$	133,162		$	154,233			201,153
Interest income		(17,788	)		(30,506	)		(21,731	)		(46,441	)
Reclassifications from nonaccretable balance		9,258			11,205			1,030			5,035
Other (a)		—			3,854			—			3,352
Balance at end of period	$	149,388		$	117,715		$	133,532			163,099

(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 June 30, 2018 were as follows:

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

Beginning balance	$	326,071			367,717			73,047			173,841			78,995		$	1,019,671
Provision for credit losses		11,250			(10,845	)		5,242			30,801			(1,448	)		35,000
Net charge-offs
Charge-offs		(14,900	)		(4,548	)		(3,966	)		(34,033	)		—			(57,447	)
Recoveries		6,409			1,437			1,800			12,378			—			22,024
Net charge-offs		(8,491	)		(3,111	)		(2,166	)		(21,655	)		—			(35,423	)
Ending balance	$	328,830			353,761			76,123			182,987			77,547		$	1,019,248

Changes in the allowance for credit losses for the three months ended June 30, 2017 were as follows:

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

Beginning balance	$	347,760			360,010			62,012			153,172			78,476		$	1,001,430
Provision for credit losses		13,368			7,638			7,163			24,190			(359	)		52,000
Net charge-offs
Charge-offs		(25,247	)		(1,853	)		(5,899	)		(28,683	)		—			(61,682	)
Recoveries		3,433			434			2,730			9,880			—			16,477
Net charge-offs		(21,814	)		(1,419	)		(3,169	)		(18,803	)		—			(45,205	)
Ending balance	$	339,314			366,229			66,006			158,559			78,117		$	1,008,225

Changes in the allowance for credit losses for the six months ended June 30, 2018 were as follows:

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

Beginning balance	$	328,599			374,085			65,405			170,809			78,300		$	1,017,198
Provision for credit losses		18,480			(16,070	)		15,728			60,615			(753	)		78,000
Net charge-offs
Charge-offs		(29,481	)		(5,914	)		(8,320	)		(70,484	)		—			(114,199	)
Recoveries		11,232			1,660			3,310			22,047			—			38,249
Net charge-offs		(18,249	)		(4,254	)		(5,010	)		(48,437	)		—			(75,950	)
Ending balance	$	328,830			353,761			76,123			182,987			77,547		$	1,019,248

Changes in the allowance for credit losses for the six months ended June 30, 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		42,191			8,900			12,800			43,022			87		107,000
Net charge-offs
Charge-offs		(41,604	)		(7,298	)		(12,158	)		(63,186	)		—		(124,246	)
Recoveries		7,894			1,908			4,237			22,435			—		36,474
Net charge-offs		(33,710	)		(5,390	)		(7,921	)		(40,751	)		—		(87,772	)
Ending balance	$	339,314			366,229			66,006			158,559			78,117	$	1,008,225

Impaired Loans and Leases

Information with respect to loans and leases that were considered impaired as of June 30, 2018 and December 31, 2017 and for the three-month and six-month periods ended June 30, 2018 and 2017 follows.

	June 30, 2018						December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	157,228		180,016		37,589		177,250		194,257		45,488
Real estate:
Commercial		85,588		96,221		9,316		67,199		75,084		9,140
Residential builder and developer		6,085		6,465		211		5,320		5,641		308
Other commercial construction		1,829		17,670		345		4,817		20,357		647
Residential		117,111		139,966		4,068		101,724		122,602		4,000
Residential — limited documentation		76,040		91,851		4,000		77,277		92,439		3,900
Consumer:
Home equity lines and loans		48,436		53,538		8,757		48,847		53,914		8,812
Automobile		12,467		15,396		2,595		13,498		15,737		2,811
Other		3,011		6,036		614		3,220		5,872		656
		507,795		607,159		67,495		499,152		585,903		75,762
With no related allowance recorded:
Commercial, financial, leasing, etc.		112,604		139,843		—		89,126		115,327		—
Real estate:
Commercial		89,024		99,658		—		138,356		149,716		—
Residential builder and developer		4,353		4,471		—		5,057		5,296		—
Other commercial construction		6,021		9,726		—		5,456		9,130		—
Residential		12,665		17,161		—		13,574		18,980		—
Residential — limited documentation		6,831		11,853		—		9,588		16,138		—
		231,498		282,712		—		261,157		314,587		—
Total:
Commercial, financial, leasing, etc.		269,832		319,859		37,589		266,376		309,584		45,488
Real estate:
Commercial		174,612		195,879		9,316		205,555		224,800		9,140
Residential builder and developer		10,438		10,936		211		10,377		10,937		308
Other commercial construction		7,850		27,396		345		10,273		29,487		647
Residential		129,776		157,127		4,068		115,298		141,582		4,000
Residential — limited documentation		82,871		103,704		4,000		86,865		108,577		3,900
Consumer:
Home equity lines and loans		48,436		53,538		8,757		48,847		53,914		8,812
Automobile		12,467		15,396		2,595		13,498		15,737		2,811
Other		3,011		6,036		614		3,220		5,872		656
Total	$	739,293		889,871		67,495		760,309		900,490		75,762

Interest Income Recognized on Impaired Loans

	Three Months Ended June 30, 2018						Three Months Ended June 30, 2017
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)

Commercial, financial, leasing, etc.	$	271,413		1,333		1,333		230,767		805		805
Real estate:
Commercial		168,224		3,811		3,811		200,005		813		813
Residential builder and developer		8,494		—		—		15,577		467		467
Other commercial construction		7,443		53		53		14,213		86		86
Residential		126,185		2,329		937		108,036		1,465		606
Residential — limited documentation		83,776		1,428		317		95,208		1,449		339
Consumer:
Home equity lines and loans		48,644		433		72		46,872		422		91
Automobile		12,636		225		14		15,506		262		21
Other		3,066		88		3		3,468		75		3
Total	$	729,881		9,700		6,540		729,652		5,844		3,231

	Six Months Ended June 30, 2018						Six Months Ended June 30, 2017
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)

Commercial, financial, leasing, etc.	$	271,793		2,116		2,116		251,352		1,283		1,283
Real estate:
Commercial		175,035		6,958		6,958		191,935		1,788		1,788
Residential builder and developer		9,167		1,682		1,682		17,552		896		896
Other commercial construction		8,773		59		59		14,922		933		933
Residential		123,697		4,231		1,839		106,166		3,101		1,380
Residential — limited documentation		84,686		3,156		1,013		96,033		2,949		723
Consumer:
Home equity lines and loans		48,721		847		158		46,327		821		191
Automobile		12,881		449		29		15,931		537		40
Other		3,092		173		6		3,510		147		6
Total	$	737,845		19,671		13,860		743,728		12,455		7,240

Summary of Loan Grades

The following table summarizes the loan grades applied to the various classes of the Company’s commercial loans and commercial real estate loans.

			Real Estate
	Commercial,				Residential		Other
	Financial,				Builder and		Commercial
	Leasing, etc.		Commercial		Developer		Construction
	(In thousands)
June 30, 2018
Pass	$	20,769,679		24,954,015		1,503,766		6,594,613
Criticized accrual		880,147		636,070		134,242		148,744
Criticized nonaccrual		245,031		153,552		5,212		7,723
Total	$	21,894,857		25,743,637		1,643,220		6,751,080
December 31, 2017
Pass	$	20,490,486		24,380,184		1,485,148		6,270,812
Criticized accrual		1,011,174		723,777		140,119		164,812
Criticized nonaccrual		240,991		184,982		6,451		10,088
Total	$	21,742,651		25,288,943		1,631,718		6,445,712

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)
June 30, 2018
Individually evaluated for impairment	$	37,589		9,872		8,068		11,966	$	67,495
Collectively evaluated for impairment		291,241		343,889		54,999		171,021		861,150
Purchased impaired		—		—		13,056		—		13,056
Allocated	$	328,830		353,761		76,123		182,987		941,701
Unallocated										77,547
Total									$	1,019,248
December 31, 2017
Individually evaluated for impairment	$	45,488		10,095		7,900		12,279	$	75,762
Collectively evaluated for impairment		283,111		363,990		47,645		158,530		853,276
Purchased impaired		—		—		9,860		—		9,860
Allocated	$	328,599		374,085		65,405		170,809		938,898
Unallocated										78,300
Total									$	1,017,198

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)
June 30, 2018
Individually evaluated for impairment	$	269,832		192,900		212,647		63,914	$	739,293
Collectively evaluated for impairment		21,625,022		33,932,858		17,757,782		13,390,030		86,705,692
Purchased impaired		3		12,179		340,283		—		352,465
Total	$	21,894,857		34,137,937		18,310,712		13,453,944	$	87,797,450
December 31, 2017
Individually evaluated for impairment	$	266,376		226,205		202,163		65,565	$	760,309
Collectively evaluated for impairment		21,476,254		33,117,512		19,023,843		13,201,050		86,818,659
Purchased impaired		21		22,656		387,338		—		410,015
Total	$	21,742,651		33,366,373		19,613,344		13,266,615	$	87,988,983

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-month and six-month periods ended June 30, 2018 and 2017:

					Post-modification (a)
	Number		Pre- modification Recorded Investment		Principal Deferral		Interest Rate Reduction		Other		Combination of Concession Types		Total
Three Months Ended June 30, 2018	(Dollars in thousands)

Commercial, financial, leasing, etc.	47		$	41,390	$	9,673	$	29	$	6,111	$	25,021	$	40,834
Real estate:
Commercial		28		7,200		7,376		175		394		—		7,945
Residential		30		7,951		2,814		—		—		5,766		8,580
Residential — limited documentation		3		584		200		—		—		458		658
Consumer:
Home equity lines and loans		10		555		—		—		—		559		559
Automobile		19		333		321		—		—		12		333
Total		137	$	58,013	$	20,384	$	204	$	6,505	$	31,816	$	58,909

Three Months Ended June 30, 2017

Commercial, financial, leasing, etc.		63	$	65,613	$	8,172	$	—	$	5,556	$	35,232	$	48,960
Real estate:
Commercial		30		26,045		11,782		—		—		14,276		26,058
Other commercial construction		1		66		66		—		—		—		66
Residential		30		7,956		2,982		—		—		5,486		8,468
Residential — limited documentation		7		1,831		235		—		—		1,660		1,895
Consumer:
Home equity lines and loans		35		3,229		416		—		—		2,818		3,234
Automobile		22		428		380		—		—		48		428
Other		3		54		54		—		—		—		54
Total		191	$	105,222	$	24,087	$	—	$	5,556	$	59,520	$	89,163

					Post-modification (a)
Six Months Ended June 30, 2018	Number		Pre- modification Recorded Investment		Principal Deferral		Interest Rate Reduction		Other		Combination of Concession Types		Total
	(Dollars in thousands)

Commercial, financial, leasing, etc.		103	$	89,384	$	45,346	$	653	$	6,111	$	38,068	$	90,178
Real estate:
Commercial		48		13,980		13,200		175		394		927		14,696
Other commercial construction		1		752		746		—		—		—		746
Residential		77		20,587		9,759		—		—		12,668		22,427
Residential — limited documentation		5		879		467		—		—		576		1,043
Consumer:
Home equity lines and loans		24		1,903		4		—		—		1,907		1,911
Automobile		27		481		469		—		—		12		481
Other		2		49		49		—		—		—		49
Total		287	$	128,015	$	70,040	$	828	$	6,505	$	54,158	$	131,531

Six Months Ended June 30, 2017

Commercial, financial, leasing, etc.		113	$	77,534	$	12,561	$	—	$	6,362	$	37,960	$	56,883
Real estate:
Commercial		50		32,747		14,773		—		—		17,882		32,655
Residential builder and developer		3		12,291		—		—		—		10,879		10,879
Other commercial construction		2		168		168		—		—		—		168
Residential		71		17,336		8,575		—		—		9,841		18,416
Residential — limited documentation		13		3,209		235		—		—		3,185		3,420
Consumer:
Home equity lines and loans		60		5,731		579		—		491		4,666		5,736
Automobile		42		818		763		—		—		55		818
Other		5		80		80		—		—		—		80
Total		359	$	149,914	$	37,734	$	—	$	6,853	$	84,468	$	129,055

(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.