Acquisitions and Divestitures (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following schedule details a preliminary allocation of merger consideration to the valuations of the identifiable tangible and intangible assets acquired and liabilities assumed from IBKC as of July 1, 2020.

(Dollars in millions)	IBERIABANK Corporation
Assets:
Cash and due from banks	$	395
Interest-bearing deposits with banks	1,683
Securities available for sale at fair value	3,544
Loans held for sale	320
Loans and leases (a)	25,921
Allowance for loan and lease losses	(284)
Other intangible assets	240
Premises and equipment	311
OREO	9
Other assets	1,153
Total assets acquired	$	33,292
Liabilities:
Deposits	$	28,232
Short-term borrowings	209
Term borrowings	1,200
Other liabilities	616
Total liabilities assumed	$	30,257
Net assets acquired	$	3,035
Consideration paid:
Consideration for outstanding common stock	$	2,243
Consideration for equity awards	28
Consideration for preferred stock	231
Total consideration paid	$	2,502
Preliminary purchase accounting gain	$	(533)

(a)     Includes $1.3 billion of initial net investments in sales-type and direct financing leases.

The following schedule details the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed from Truist Bank as of July 17, 2020.

(Dollars in millions)	Truist Bank
Assets:
Cash and due from banks	$	2,202
Loans and leases	423
Allowance for loan and lease losses	(2)
Other intangible assets	7
Premises and equipment	11
Other assets	27
Total assets acquired	$	2,668
Liabilities:
Deposits	$	2,195
Other liabilities	30
Total liabilities assumed	$	2,225
Net assets acquired	$	443
Consideration paid:
Cash	$	521
Total consideration paid	$	521
Goodwill	$	78

Business Acquisition, Pro Forma Information

The following table presents pro forma information as if the IBKC transaction occurred on January 1, 2019. The pro forma information does not necessarily reflect the results of operations that would have occurred had the two companies combined on January 1, 2019. Furthermore, cost savings and other business synergies related to the transaction are not reflected in the pro forma amounts.

	Pro Forma Information for the Years Ended
(Dollars in millions)	December 31, 2020		December 31, 2019 (a)
Net interest income	$	2,247	$	2,256
Noninterest income	1,071		888
Net income (loss)	677		881

(a) Does not include the impact of CECL which was adopted January 1, 2020.

Schedule of Merger And Integration Expense

Total merger and integration expenses for the IBKC merger recognized for the years ended December 31, 2020 and 2019 are presented in the table below:

(Dollars in millions)	2020		2019
Legal and professional fees (a)	$	41	$	8
Personnel expense (b)	61		3
Contribution expense (c)	20		—
Miscellaneous expense (d)	18		—
Total IBKC merger expense	$	140	$	11

(a)    Primarily comprised of fees for legal, accounting, and merger consultants.

(b)     Primarily comprised of fees for severance and retention.

(c) Comprised of contribution expense related to the establishment of the Louisiana First Horizon Foundation.

(d)     Primarily comprised of fees for travel and entertainment, contract employment and other miscellaneous expenses.

Total other merger and integration expense recognized for the years ended December 31, 2020 and 2019 are presented in the table below:

	Years ended December 31,
(Dollars in millions)	2020		2019
Legal and professional fees (a)	$	2	$	11
Personnel expense (b)	6		1
Contract employment and outsourcing (c)	1		—
Net occupancy expense (d)	1		1
Miscellaneous expense (e)	4		2
All other expense (f)	6		7
Total	$	20	$	22

Certain previously reported amounts have been reclassified to agree with current presentation.

(a)     Primarily comprised of fees for legal, accounting, and merger consultants.

(b)     Primarily comprised of fees for severance and retention.

(c)    Primarily relates to fees for temporary assistance for merger and integration activities.

(d)    Primarily relates to expenses associated with lease exits.

(e)    Consists of fees for operations services, communications and courier, equipment rentals, depreciation and maintenance, supplies, travel and entertainment, computer software, and advertising and public relations.

(f)    Primarily relates to contract termination charges, internal technology development costs, costs of shareholder matters and asset impairments, as well as other miscellaneous expenses.