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LOANS AND LEASES (Tables)
 3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Summary of Loans and Leases, Net of Unearned Income Following is a summary of loans and leases, net of unearned income:
TABLE 4.1
(in millions)
Originated
Loans and
Leases
 
Loans Acquired
in a Business Combination
 
Total
Loans and
Leases
March 31, 2019
 
 
 
 
 
Commercial real estate
$
6,412

 
$
2,423

 
$
8,835

Commercial and industrial
4,509

 
380

 
4,889

Commercial leases
374

 
—

 
374

Other
49

 
—

 
49

Total commercial loans and leases
11,344

 
2,803

 
14,147

Direct installment
1,657

 
87

 
1,744

Residential mortgages
2,755

 
478

 
3,233

Indirect installment
1,950

 
—

 
1,950

Consumer lines of credit
1,106

 
440

 
1,546

Total consumer loans
7,468

 
1,005

 
8,473

Total loans and leases, net of unearned income
$
18,812

 
$
3,808

 
$
22,620

December 31, 2018
 
 
 
 
 
Commercial real estate
$
6,171

 
$
2,615

 
$
8,786

Commercial and industrial
4,140

 
416

 
4,556

Commercial leases
373

 
—

 
373

Other
46

 
—

 
46

Total commercial loans and leases
10,730

 
3,031

 
13,761

Direct installment
1,668

 
96

 
1,764

Residential mortgages
2,612

 
501

 
3,113

Indirect installment
1,933

 
—

 
1,933

Consumer lines of credit
1,119

 
463

 
1,582

Total consumer loans
7,332

 
1,060

 
8,392

Total loans and leases, net of unearned income
$
18,062

 
$
4,091

 
$
22,153
Certain Information Relating to Commercial Real Estate Loans The following table shows certain information relating to commercial real estate loans:
TABLE 4.2
(dollars in millions)
March 31,
2019
 
December 31,
2018
Commercial construction, acquisition and development loans
$
1,242

 
$
1,152

Percent of total loans and leases
5.5
%
 
5.2
%
Commercial real estate:
 
 
 
Percent owner-occupied
32.1
%
 
35.1
%
Percent non-owner-occupied
67.9
%
 
64.9
%
Summary of Outstanding Principal Balance and Carrying Amount of Acquired Loans Acquired In A Business Combination The outstanding balance and the carrying amount of loans acquired in a business combination included in the Consolidated Balance Sheets are as follows:
TABLE 4.3
(in millions)
March 31,
2019
 
December 31,
2018
Accounted for under ASC 310-30:
 
 
 
Outstanding balance
$
3,515

 
$
3,768

Carrying amount
3,252

 
3,570

Accounted for under ASC 310-20:
 
 
 
Outstanding balance
566

 
602

Carrying amount
547

 
513

Total loans acquired in a business combination:
 
 
 
Outstanding balance
4,081

 
4,370

Carrying amount
3,799

 
4,083
Schedule Of Changes In Accretable Yields Of Loans Acquired In A Business Combination The following table provides changes in accretable yield for all loans acquired in business combinations that are accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table.
TABLE 4.4
 
Three Months Ended
March 31,
(in millions)
2019
 
2018
Balance at beginning of period
$
605

 
$
708

Reduction due to unexpected early payoffs
(20
)
 
(26
)
Reclass from non-accretable difference to accretable yield
30

 
64

Accretion
(50
)
 
(59
)
Balance at end of period
$
565

 
$
687
Summary of Non-Performing Assets Following is a summary of non-performing assets:
TABLE 4.5
(dollars in millions)
March 31,
2019
 
December 31,
2018
Non-accrual loans
$
78

 
$
79

Troubled debt restructurings
20

 
21

Total non-performing loans
98

 
100

Other real estate owned
34

 
35

Total non-performing assets
$
132

 
$
135

Asset quality ratios:
 
 
 
Non-performing loans / total loans and leases
0.43
%
 
0.45
%
Non-performing loans + OREO / total loans and leases + OREO
0.58
%
 
0.61
%
Non-performing assets / total assets
0.39
%
 
0.41
%
Age Analysis of Past Due Loans, by Class The following tables provide an analysis of the aging of loans by class segregated by loans and leases originated and loans acquired:
TABLE 4.6
(in millions)
30-89 Days
Past Due
 
> 90 Days
Past Due
and Still
Accruing
 
Non-
Accrual
 
Total
Past Due
 
Current
 
Total
Loans and
Leases
Originated Loans and Leases
 
 
 
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
8

 
$
—

 
$
20

 
$
28

 
$
6,384

 
$
6,412

Commercial and industrial
9

 
—

 
18

 
27

 
4,482

 
4,509

Commercial leases
1

 
—

 
2

 
3

 
371

 
374

Other
—

 
—

 
1

 
1

 
48

 
49

Total commercial loans and leases
18

 
—

 
41

 
59

 
11,285

 
11,344

Direct installment
6

 
1

 
8

 
15

 
1,642

 
1,657

Residential mortgages
13

 
4

 
7

 
24

 
2,731

 
2,755

Indirect installment
9

 
—

 
2

 
11

 
1,939

 
1,950

Consumer lines of credit
5

 
1

 
3

 
9

 
1,097

 
1,106

Total consumer loans
33

 
6

 
20

 
59

 
7,409

 
7,468

Total originated loans and leases
$
51

 
$
6

 
$
61

 
$
118

 
$
18,694

 
$
18,812

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
7

 
$
—

 
$
17

 
$
24

 
$
6,147

 
$
6,171

Commercial and industrial
5

 
—

 
19

 
24

 
4,116

 
4,140

Commercial leases
1

 
—

 
2

 
3

 
370

 
373

Other
—

 
—

 
1

 
1

 
45

 
46

Total commercial loans and leases
13

 
—

 
39

 
52

 
10,678

 
10,730

Direct installment
8

 
—

 
8

 
16

 
1,652

 
1,668

Residential mortgages
16

 
3

 
6

 
25

 
2,587

 
2,612

Indirect installment
11

 
1

 
2

 
14

 
1,919

 
1,933

Consumer lines of credit
5

 
1

 
3

 
9

 
1,110

 
1,119

Total consumer loans
40

 
5

 
19

 
64

 
7,268

 
7,332

Total originated loans and leases
$
53

 
$
5

 
$
58

 
$
116

 
$
17,946

 
$
18,062


(in millions)
30-89
Days
Past Due
 
> 90 Days
Past Due
and Still
Accruing
 
Non-
Accrual
 
Total
Past Due
(1) (2)
 
Current
 
(Discount) Premium
 
Total
Loans
Loans Acquired in a Business Combination
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
14

 
$
37

 
$
3

 
$
54

 
$
2,530

 
$
(161
)
 
$
2,423

Commercial and industrial
1

 
4

 
13

 
18

 
387

 
(25
)
 
380

Total commercial loans
15

 
41

 
16

 
72

 
2,917

 
(186
)
 
2,803

Direct installment
2

 
1

 
—

 
3

 
84

 
—

 
87

Residential mortgages
13

 
5

 
—

 
18

 
476

 
(16
)
 
478

Consumer lines of credit
6

 
2

 
1

 
9

 
440

 
(9
)
 
440

Total consumer loans
21

 
8

 
1

 
30

 
1,000

 
(25
)
 
1,005

Total loans acquired in a business combination
$
36

 
$
49

 
$
17

 
$
102

 
$
3,917

 
$
(211
)
 
$
3,808

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
19

 
$
38

 
$
3

 
$
60

 
$
2,723

 
$
(168
)
 
$
2,615

Commercial and industrial
3

 
4

 
17

 
24

 
420

 
(28
)
 
416

Total commercial loans
22

 
42

 
20

 
84

 
3,143

 
(196
)
 
3,031

Direct installment
3

 
2

 
—

 
5

 
91

 
—

 
96

Residential mortgages
13

 
6

 
—

 
19

 
498

 
(16
)
 
501

Consumer lines of credit
8

 
3

 
1

 
12

 
461

 
(10
)
 
463

Total consumer loans
24

 
11

 
1

 
36

 
1,050

 
(26
)
 
1,060

Total loans acquired in a business combination
$
46

 
$
53

 
$
21

 
$
120

 
$
4,193

 
$
(222
)
 
$
4,091


(1)
Loans acquired in a business combination are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of expected cash flows on such loans. In these instances, we do not consider acquired contractually delinquent loans to be non-accrual or non-performing and continue to recognize interest income on these loans using the accretion method. Loans acquired in a business combination are considered non-accrual or non-performing when, due to credit deterioration or other factors, we determine we are no longer able to reasonably estimate the timing and amount of expected cash flows on such loans. We do not recognize interest income on loans acquired in a business combination considered non-accrual or non-performing.
(2)
Past due information for loans acquired in a business combination is based on the contractual balance outstanding at March 31, 2019 and December 31, 2018.
Loan, Credit Quality Indicators We utilize the following categories to monitor credit quality within our commercial loan and lease portfolio:
TABLE 4.7
Rating
Category
Definition
Pass
in general, the condition of the borrower and the performance of the loan is satisfactory or better
 
 
Special Mention
in general, the condition of the borrower has deteriorated, requiring an increased level of monitoring
 
 
Substandard
in general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected
 
 
Doubtful
in general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable
Summary of Commercial Loans by Credit Quality
The following tables present a summary of our commercial loans and leases by credit quality category, segregated by loans and leases originated and loans acquired:
TABLE 4.8
 
Commercial Loan and Lease Credit Quality Categories
(in millions)
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Originated Loans and Leases
 
 
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
 
 
Commercial real estate
$
6,114

 
$
156

 
$
142

 
$
—

 
$
6,412

Commercial and industrial
4,248

 
167

 
93

 
1

 
4,509

Commercial leases
365

 
2

 
7

 
—

 
374

Other
48

 
—

 
1

 
—

 
49

Total originated commercial loans and leases
$
10,775

 
$
325

 
$
243

 
$
1

 
$
11,344

December 31, 2018
 
 
 
 
 
 
 
 
 
Commercial real estate
$
5,883

 
$
163

 
$
125

 
$
—

 
$
6,171

Commercial and industrial
3,879

 
180

 
81

 
—

 
4,140

Commercial leases
366

 
1

 
6

 
—

 
373

Other
45

 
—

 
1

 
—

 
46

Total originated commercial loans and leases
$
10,173

 
$
344

 
$
213

 
$
—

 
$
10,730

Loans Acquired in a Business Combination
 
 
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
 
 
Commercial real estate
$
2,079

 
$
160

 
$
184

 
$
—

 
$
2,423

Commercial and industrial
325

 
17

 
33

 
5

 
380

Total commercial loans acquired in a business combination
$
2,404

 
$
177

 
$
217

 
$
5

 
$
2,803

December 31, 2018
 
 
 
 
 
 
 
 
 
Commercial real estate
$
2,256

 
$
168

 
$
191

 
$
—

 
$
2,615

Commercial and industrial
355

 
18

 
43

 
—

 
416

Total commercial loans acquired in a business combination
$
2,611

 
$
186

 
$
234

 
$
—

 
$
3,031
Summary of Consumer Loans by Payment Status Following is a table showing consumer loans by payment status:
TABLE 4.9
 
Consumer Loan Credit Quality
by Payment Status
(in millions)
Performing
 
Non-
Performing
 
Total
Originated Loans
 
 
 
 
 
March 31, 2019
 
 
 
 
 
Direct installment
$
1,643

 
$
14

 
$
1,657

Residential mortgages
2,740

 
15

 
2,755

Indirect installment
1,948

 
2

 
1,950

Consumer lines of credit
1,101

 
5

 
1,106

Total originated consumer loans
$
7,432

 
$
36

 
$
7,468

December 31, 2018
 
 
 
 
 
Direct installment
$
1,654

 
$
14

 
$
1,668

Residential mortgages
2,598

 
14

 
2,612

Indirect installment
1,931

 
2

 
1,933

Consumer lines of credit
1,114

 
5

 
1,119

Total originated consumer loans
$
7,297

 
$
35

 
$
7,332

Loans Acquired in a Business Combination
 
 
 
 
 
March 31, 2019
 
 
 
 
 
Direct installment
$
87

 
$
—

 
$
87

Residential mortgages
478

 
—

 
478

Consumer lines of credit
439

 
1

 
440

Total consumer loans acquired in a business combination
$
1,004

 
$
1

 
$
1,005

December 31, 2018
 
 
 
 
 
Direct installment
$
96

 
$
—

 
$
96

Residential mortgages
501

 
—

 
501

Consumer lines of credit
462

 
1

 
463

Total consumer loans acquired in a business combination
$
1,059

 
$
1

 
$
1,060
Summary of Impaired Loans and Leases, by Class Following is a summary of information pertaining to loans and leases considered to be impaired, by class of loan and lease:
TABLE 4.10
(in millions)
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With No
Specific
Reserve
 
Recorded
Investment
With
Specific
Reserve
 
Total
Recorded
Investment
 
Specific
Reserve
 
Average
Recorded
Investment
At or for the Three Months Ended
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
24

 
$
18

 
$
3

 
$
21

 
$
—

 
$
20

Commercial and industrial
44

 
17

 
9

 
26

 
6

 
31

Commercial leases
2

 
2

 
—

 
2

 
—

 
2

Total commercial loans and leases
70

 
37

 
12

 
49

 
6

 
53

Direct installment
17

 
14

 
—

 
14

 
—

 
14

Residential mortgages
16

 
15

 
—

 
15

 
—

 
15

Indirect installment
4

 
2

 
—

 
2

 
—

 
2

Consumer lines of credit
7

 
5

 
—

 
5

 
—

 
5

Total consumer loans
44

 
36

 
—

 
36

 
—

 
36

Total
$
114

 
$
73

 
$
12

 
$
85

 
$
6

 
$
89

At or for the Year Ended
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
20

 
$
16

 
$
1

 
$
17

 
$
—

 
$
18

Commercial and industrial
46

 
20

 
13

 
33

 
4

 
32

Commercial leases
2

 
2

 
—

 
2

 
—

 
4

Total commercial loans and leases
68

 
38

 
14

 
52

 
4

 
54

Direct installment
17

 
14

 
—

 
14

 
—

 
14

Residential mortgages
16

 
14

 
—

 
14

 
—

 
15

Indirect installment
5

 
2

 
—

 
2

 
—

 
2

Consumer lines of credit
7

 
5

 
—

 
5

 
—

 
5

Total consumer loans
45

 
35

 
—

 
35

 
—

 
36

Total
$
113

 
$
73

 
$
14

 
$
87

 
$
4

 
$
90
Additional Allowance For Credit Losses Related To Loans Acquired In A Business Combination Following is a summary of the allowance for credit losses required for loans acquired in a business combination due to changes in credit quality subsequent to the acquisition date:
TABLE 4.11
(in millions)
March 31,
2019
 
December 31,
2018
Commercial real estate
$
2

 
$
2

Commercial and industrial
5

 
4

Total commercial loans
7

 
6

Direct installment
1

 
1

Residential mortgages
1

 
—

Total consumer loans
2

 
1

Total allowance on loans acquired in a business combination
$
9

 
$
7
Summary of the composition of total TDRs Following is a summary of the composition of total TDRs:
TABLE 4.12
(in millions)
Originated
 
Acquired
 
Total
March 31, 2019
 
 
 
 
 
Accruing:
 
 
 
 
 
Performing
$
18

 
$
—

 
$
18

Non-performing
16

 
4

 
20

Non-accrual
9

 
1

 
10

Total TDRs
$
43

 
$
5

 
$
48

December 31, 2018
 
 
 
 
 
Accruing:
 
 
 
 
 
Performing
$
18

 
$
—

 
$
18

Non-performing
17

 
4

 
21

Non-accrual
9

 
—

 
9

Total TDRs
$
44

 
$
4

 
$
48
Summary of Troubled Debt Restructurings by Class of Loans
Following is a summary of TDR loans, by class:
TABLE 4.13
 
Three Months Ended March 31, 2019
(dollars in millions)
Number
of
Contracts
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Commercial real estate
1

 
$
—

 
$
—

Commercial and industrial
12

 
1

 
1

Total commercial loans
13

 
1

 
1

Direct installment
18

 
1

 
1

Residential mortgages
3

 
—

 
—

Consumer lines of credit
8

 
—

 
—

Total consumer loans
29

 
1

 
1

Total
42

 
$
2

 
$
2

 
Three Months Ended March 31, 2018
(dollars in millions)
Number
of
Contracts
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
Commercial real estate
1

 
$
—

 
$
—

Commercial and industrial
1

 
2

 
1

Total commercial loans
2

 
2

 
1

Direct installment
182

 
1

 
1

Residential mortgages
11

 
1

 
1

Indirect installment
9

 
—

 
—

Consumer lines of credit
21

 
—

 
—

Total consumer loans
223

 
2

 
2

Total
225

 
$
4

 
$
3
Summary of Originated Troubled Debt Restructurings by Class of Loans and Leases, Payment Default Following is a summary of originated TDRs, by class, for which there was a payment default, excluding loans that have been paid off and/or sold. Default occurs when a loan is 90 days or more past due and is within 12 months of restructuring.
TABLE 4.14
 
Three Months Ended
March 31, 2019
(dollars in millions)
Number of
Contracts
 
Recorded
Investment
Commercial real estate
1

 
$
—

Commercial and industrial
—

 
—

Total commercial loans
1

 
—

Direct installment
2

 
$
—

Residential mortgages
1

 
—

Consumer lines of credit
2

 
—

Total consumer loans
5

 
—

Total
6

 
$
—


 
Three Months Ended
March 31, 2018
(dollars in millions)
Number of
Contracts
 
Recorded
Investment
Direct installment
45

 
$
1

Residential mortgages
4

 
—

Indirect installment
5

 
—

Consumer lines of credit
1

 
—

Total consumer loans
55

 
1

Total
55

 
$
1