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LOANS AND LEASES (Tables)

6 Months Ended

Jun. 30, 2019

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
June 30, 2019
Commercial real estate	$	6,601	$	2,231	$	8,832
Commercial and industrial	4,708		320		5,028
Commercial leases	385		—		385
Other	37		—		37
Total commercial loans and leases	11,731		2,551		14,282
Direct installment	1,679		79		1,758
Residential mortgages	2,573		449		3,022
Indirect installment	1,968		—		1,968
Consumer lines of credit	1,099		414		1,513
Total consumer loans	7,319		942		8,261
Total loans and leases, net of unearned income	$	19,050	$	3,493	$	22,543
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)	June 30, 2019			December 31, 2018
Commercial construction, acquisition and development loans	$	1,196		$	1,152
Percent of total loans and leases	5.3		%	5.2		%
Commercial real estate:
Percent owner-occupied	31.7		%	35.1		%
Percent non-owner-occupied	68.3		%	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)	June 30, 2019		December 31, 2018
Accounted for under ASC 310-30:
Outstanding balance	$	3,247	$	3,768
Carrying amount	2,998		3,570
Accounted for under ASC 310-20:
Outstanding balance	504		602
Carrying amount	491		513
Total loans acquired in a business combination:
Outstanding balance	3,751		4,370
Carrying amount	3,489		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



	Six Months Ended June 30,
(in millions)	2019			2018
Balance at beginning of period	$	605		$	708
Reduction due to unexpected early payoffs	(39		)	(94		)
Reclass from non-accretable difference to accretable yield	58			129
Other	—			(2		)
Accretion	(96		)	(116		)
Balance at end of period	$	528		$	625

Summary of Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 4.5



(dollars in millions)	June 30, 2019			December 31, 2018
Non-accrual loans	$	74		$	79
Troubled debt restructurings	19			21
Total non-performing loans	93			100
Other real estate owned	32			35
Total non-performing assets	$	125		$	135
Asset quality ratios:
Non-performing loans / total loans and leases	0.41		%	0.45		%
Non-performing loans + OREO / total loans and leases + OREO	0.55		%	0.61		%
Non-performing assets / total assets	0.37		%	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
June 30, 2019
Commercial real estate	$	7	$	—	$	27	$	34	$	6,567	$	6,601
Commercial and industrial	7		—		17		24		4,684		4,708
Commercial leases	4		—		2		6		379		385
Other	—		—		1		1		36		37
Total commercial loans and leases	18		—		47		65		11,666		11,731
Direct installment	6		1		7		14		1,665		1,679
Residential mortgages	16		2		8		26		2,547		2,573
Indirect installment	10		—		2		12		1,956		1,968
Consumer lines of credit	4		1		4		9		1,090		1,099
Total consumer loans	36		4		21		61		7,258		7,319
Total originated loans and leases	$	54	$	4	$	68	$	126	$	18,924	$	19,050
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
June 30, 2019
Commercial real estate	$	19	$	31	$	3	$	53	$	2,332	$	(154	)	$	2,231
Commercial and industrial	1		4		2		7		336		(23		)	320
Total commercial loans	20		35		5		60		2,668		(177		)	2,551
Direct installment	1		1		—		2		77		—			79
Residential mortgages	12		4		—		16		449		(16		)	449
Consumer lines of credit	7		3		—		10		413		(9		)	414
Total consumer loans	20		8		—		28		939		(25		)	942
Total loans acquired in a business combination	$	40	$	43	$	5	$	88	$	3,607	$	(202	)	$	3,493
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 June 30, 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
June 30, 2019
Commercial real estate	$	6,309	$	146	$	145	$	1	$	6,601
Commercial and industrial	4,419		162		126		1		4,708
Commercial leases	375		4		6		—		385
Other	36		—		1		—		37
Total originated commercial loans and leases	$	11,139	$	312	$	278	$	2	$	11,731
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
June 30, 2019
Commercial real estate	$	1,926	$	147	$	158	$	—	$	2,231
Commercial and industrial	274		17		29		—		320
Total commercial loans acquired in a business combination	$	2,200	$	164	$	187	$	—	$	2,551
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
June 30, 2019
Direct installment	$	1,665	$	14	$	1,679
Residential mortgages	2,557		16		2,573
Indirect installment	1,966		2		1,968
Consumer lines of credit	1,095		4		1,099
Total originated consumer loans	$	7,283	$	36	$	7,319
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
June 30, 2019
Direct installment	$	79	$	—	$	79
Residential mortgages	449		—		449
Consumer lines of credit	413		1		414
Total consumer loans acquired in a business combination	$	941	$	1	$	942
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 Six Months Ended June 30, 2019
Commercial real estate	$	31	$	21	$	6	$	27	$	2	$	24
Commercial and industrial	22		15		—		15		1		17
Commercial leases	2		2		—		2		—		2
Total commercial loans and leases	55		38		6		44		3		43
Direct installment	17		14		—		14		—		14
Residential mortgages	18		16		—		16		—		15
Indirect installment	5		2		—		2		—		2
Consumer lines of credit	7		5		—		5		—		5
Total consumer loans	47		37		—		37		—		36
Total	$	102	$	75	$	6	$	81	$	3	$	79
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)	June 30, 2019		December 31, 2018
Commercial real estate	$	2	$	2
Commercial and industrial	1		4
Total commercial loans	3		6
Direct installment	1		1
Residential mortgages	1		—
Total consumer loans	2		1
Total allowance on loans acquired in a business combination	$	5	$	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
June 30, 2019
Accruing:
Performing	$	19	$	—	$	19
Non-performing	16		3		19
Non-accrual	16		—		16
Total TDRs	$	51	$	3	$	54
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 June 30, 2019					Six Months Ended June 30, 2019
(dollars in millions)	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate	11	$	3	$	4	12	$	4	$	4
Commercial and industrial	2	4		3		13	5		4
Total commercial loans	13	7		7		25	9		8
Direct installment	14	1		1		32	1		1
Residential mortgages	7	—		—		10	1		1
Consumer lines of credit	7	—		—		14	—		—
Total consumer loans	28	1		1		56	2		2
Total	41	$	8	$	8	81	$	11	$	10



	Three Months Ended June 30, 2018					Six Months Ended June 30, 2018
(dollars in millions)	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate	1	$	—	$	—	1	$	—	$	—
Commercial and industrial	13	1		1		13	3		2
Total commercial loans	14	1		1		14	3		2
Direct installment	178	2		2		357	3		3
Residential mortgages	8	—		—		19	1		1
Indirect installment	7	—		—		16	—		—
Consumer lines of credit	22	1		1		41	1		—
Total consumer loans	215	3		3		433	5		4
Total	229	$	4	$	4	447	$	8	$	6

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 June 30, 2019			Six Months Ended June 30, 2019
(dollars in millions)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Commercial real estate	—	$	—	1	$	—
Commercial and industrial	—	—		—	—
Total commercial loans	—	—		1	—
Direct installment	—	$	—	3	$	—
Residential mortgages	—	—		1	—
Consumer lines of credit	—	—		1	—
Total consumer loans	—	—		5	—
Total	—	$	—	6	$	—



	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
(dollars in millions)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Direct installment	41	$	—	78	$	1
Residential mortgages	3	—		6	—
Indirect installment	5	—		9	—
Consumer lines of credit	2	—		3	—
Total consumer loans	51	—		96	1
Total	51	$	—	96	$	1