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Loans and Leases (Tables)
 12 Months Ended
Dec. 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 5.1
(in millions)
Originated
Loans and
Leases
 
Loans Acquired in a Business Combination
 
Total
Loans and
Leases
December 31, 2019
 
 
 
 
 
Commercial real estate
$
7,114

 
$
1,846

 
$
8,960

Commercial and industrial
5,063

 
245

 
5,308

Commercial leases
432

 
—

 
432

Other
21

 
—

 
21

Total commercial loans and leases
12,630

 
2,091

 
14,721

Direct installment
1,758

 
63

 
1,821

Residential mortgages
2,995

 
379

 
3,374

Indirect installment
1,922

 
—

 
1,922

Consumer lines of credit
1,092

 
359

 
1,451

Total consumer loans
7,767

 
801

 
8,568

Total loans and leases, net of unearned income
$
20,397

 
$
2,892

 
$
23,289

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 5.2
December 31
2019
 
2018
(dollars in millions)
 
 
 
Commercial construction, acquisition and development loans
$
1,275

 
$
1,152

Percent of total loans and leases
5.5
%
 
5.2
%
Commercial real estate:
 
 
 
Percent owner-occupied
30.6
%
 
35.1
%
Percent non-owner-occupied
69.4
%
 
64.9
%
Summary of Loans to Related Parties Following is a summary of the activity for these loans to related parties during 2019:
TABLE 5.3
(in millions)
 
Balance at beginning of period
$
16

New loans
1

Repayments
(10
)
Balance at end of period
$
7
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 5.4
December 31
2019
 
2018
(in millions)
 
 
 
Accounted for under ASC 310-30:
 
 
 
Outstanding balance
$
2,684

 
$
3,768

Carrying amount
2,461

 
3,570

Accounted for under ASC 310-20:
 
 
 
Outstanding balance
436

 
602

Carrying amount
425

 
513

Total loans acquired in a business combination:
 
 
 
Outstanding balance
3,120

 
4,370

Carrying amount
2,886

 
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 5.5
Year Ended December 31
2019
 
2018
(in millions)
 
 
 
Balance at beginning of period
$
605

 
$
708

Reduction due to unexpected early payoffs
(102
)
 
(146
)
Reclass from non-accretable difference to accretable yield
97

 
267

Disposals/transfers
(1
)
 
(1
)
Other
(1
)
 
(1
)
Accretion
(179
)
 
(222
)
Balance at end of period
$
419

 
$
605
Summary of Non-Performing Assets
Following is a summary of non-performing assets:
TABLE 5.6
December 31
2019
 
2018
(dollars in millions)
 
 
 
Non-accrual loans
$
81

 
$
79

Troubled debt restructurings
22

 
21

Total non-performing loans
103

 
100

Other real estate owned
26

 
35

Total non-performing assets
$
129

 
$
135

Asset quality ratios:
 
 
 
Non-performing loans / total loans and leases
0.44
%
 
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 5.7
(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
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
10

 
$
—

 
$
26

 
$
36

 
$
7,078

 
$
7,114

Commercial and industrial
9

 
—

 
28

 
37

 
5,026

 
5,063

Commercial leases
5

 
—

 
1

 
6

 
426

 
432

Other
—

 
—

 
1

 
1

 
20

 
21

Total commercial loans and leases
24

 
—

 
56

 
80

 
12,550

 
12,630

Direct installment
7

 
1

 
7

 
15

 
1,743

 
1,758

Residential mortgages
12

 
2

 
8

 
22

 
2,973

 
2,995

Indirect installment
15

 
1

 
3

 
19

 
1,903

 
1,922

Consumer lines of credit
5

 
1

 
3

 
9

 
1,083

 
1,092

Total consumer loans
39

 
5

 
21

 
65

 
7,702

 
7,767

Total originated loans and leases
$
63

 
$
5

 
$
77

 
$
145

 
$
20,252

 
$
20,397

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
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
12

 
$
28

 
$
3

 
$
43

 
$
1,942

 
$
(139
)
 
$
1,846

Commercial and industrial
2

 
3

 
—

 
5

 
259

 
(19
)
 
245

Total commercial loans
14

 
31

 
3

 
48

 
2,201

 
(158
)
 
2,091

Direct installment
3

 
—

 
—

 
3

 
60

 
—

 
63

Residential mortgages
8

 
4

 
—

 
12

 
382

 
(15
)
 
379

Consumer lines of credit
7

 
2

 
1

 
10

 
357

 
(8
)
 
359

Total consumer loans
18

 
6

 
1

 
25

 
799

 
(23
)
 
801

Total loans acquired in a business combination
$
32

 
$
37

 
$
4

 
$
73

 
$
3,000

 
$
(181
)
 
$
2,892

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)
Past due information for loans acquired in a business combination is based on the contractual balance outstanding at December 31, 2019 and 2018.
(2)
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.
Loan, Credit Quality Indicators
We utilize the following categories to monitor credit quality within our commercial loan and lease portfolio:
TABLE 5.8
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 5.9
 
Commercial Loan and Lease Credit Quality Categories
(in millions)
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Originated Loans and Leases
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
Commercial real estate
$
6,821

 
$
171

 
$
121

 
$
1

 
$
7,114

Commercial and industrial
4,768

 
149

 
144

 
2

 
5,063

Commercial leases
423

 
3

 
6

 
—

 
432

Other
20

 
—

 
1

 
—

 
21

Total originated commercial loans and leases
$
12,032

 
$
323

 
$
272

 
$
3

 
$
12,630

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
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
Commercial real estate
$
1,603

 
$
116

 
$
127

 
$
—

 
$
1,846

Commercial and industrial
201

 
19

 
25

 
—

 
245

Total commercial loans acquired in a business combination
$
1,804

 
$
135

 
$
152

 
$
—

 
$
2,091

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 5.10
 
Consumer Loan Credit Quality by Payment Status
(in millions)
Performing    
 
Non-Performing    
 
Total    
Originated Loans
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Direct installment
$
1,745

 
$
13

 
$
1,758

Residential mortgages
2,978

 
17

 
2,995

Indirect installment
1,919

 
3

 
1,922

Consumer lines of credit
1,086

 
6

 
1,092

Total originated consumer loans
$
7,728

 
$
39

 
$
7,767

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
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Direct installment
$
63

 
$
—

 
$
63

Residential mortgages
379

 
—

 
379

Consumer lines of credit
358

 
1

 
359

Total consumer loans acquired in a business combination
$
800

 
$
1

 
$
801

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 5.11
(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 Year Ended
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
30

 
$
25

 
$
2

 
$
27

 
$
2

 
$
26

Commercial and industrial
35

 
21

 
—

 
21

 
2

 
22

Commercial leases
1

 
1

 
—

 
1

 
—

 
1

Total commercial loans and leases
66

 
47

 
2

 
49

 
4

 
49

Direct installment
16

 
13

 
—

 
13

 
—

 
13

Residential mortgages
20

 
18

 
—

 
18

 
—

 
17

Indirect installment
5

 
3

 
—

 
3

 
—

 
3

Consumer lines of credit
7

 
5

 
—

 
5

 
—

 
5

Total consumer loans
48

 
39

 
—

 
39

 
—

 
38

Total
$
114

 
$
86

 
$
2

 
$
88

 
$
4

 
$
87

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 5.12
December 31
2019
 
2018
(in millions)
 
 
 
Commercial real estate
$
4

 
$
2

Commercial and industrial
—

 
4

Total commercial loans
4

 
6

Direct installment
1

 
1

Residential mortgages
2

 
—

Total consumer loans
3

 
1

Total allowance on loans acquired in a business combination
$
7

 
$
7
Summary of Composition of Total TDRs
Following is a summary of the composition of total TDRs:
TABLE 5.13
(in millions)
Originated
 
Acquired
 
Total
December 31, 2019
 
 
 
 
 
Accruing:
 
 
 
 
 
Performing
$
19

 
$
—

 
$
19

Non-performing
18

 
4

 
22

Non-accrual
14

 
1

 
15

Total TDRs
$
51

 
$
5

 
$
56

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 5.14
Year Ended December 31
2019
 
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
20

 
$
5

 
$
5

 
4

 
$
1

 
$
1

Commercial and industrial
23

 
5

 
3

 
10

 
—

 
—

Total commercial loans
43

 
10

 
8

 
14

 
1

 
1

Direct installment
65

 
3

 
3

 
80

 
4

 
4

Residential mortgages
18

 
3

 
3

 
15

 
1

 
1

Consumer lines of credit
27

 
2

 
1

 
26

 
1

 
1

Total consumer loans
110

 
8

 
7

 
121

 
6

 
6

Total
153

 
$
18

 
$
15

 
135

 
$
7

 
$
7
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 5.15
Year Ended December 31
2019
 
2018
(dollars in millions)
Number
of
Contracts
 
Recorded
Investment
 
Number
of
Contracts
 
Recorded
Investment
Commercial real estate
5

 
$
1

 
3

 
$
1

Commercial and industrial
1

 
—

 
1

 
—

Total commercial loans
6

 
1

 
4

 
1

Direct installment
5

 
—

 
7

 
1

Residential mortgages
2

 
—

 
4

 
—

Consumer lines of credit
1

 
—

 
3

 
—

Total consumer loans
8

 
—

 
14

 
1

Total
14

 
$
1

 
18

 
$
2