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LOANS AND LEASES (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Summary of Loans and Leases, Net of Unearned Income
Following is a summary of total loans and leases, net of unearned income:
TABLE 4.1
(in millions)June 30, 2020December 31, 2019
Commercial real estate$9,305  $8,960  
Commercial and industrial7,709  5,308  
Commercial leases497  432  
Other40  21  
Total commercial loans and leases17,551  14,721  
Direct installment1,947  1,821  
Residential mortgages3,520  3,374  
Indirect installment1,767  1,922  
Consumer lines of credit1,377  1,451  
Total consumer loans8,611  8,568  
Total loans and leases, net of unearned income$26,162  $23,289  
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,
2020		December 31,
2019
Commercial real estate:
Percent owner-occupied29.0 %30.6 %
Percent non-owner-occupied71.0  69.4  
Summary of Loan, Credit Quality Indicators We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below.
TABLE 4.3
Rating
Category
Definition
Passin general, the condition of the borrower and the performance of the loan is satisfactory or better
Special Mentionin general, the condition of the borrower has deteriorated, requiring an increased level of monitoring
Substandardin general, the condition of the borrower has significantly deteriorated and the performance of the loan could further deteriorate if deficiencies are not corrected
Doubtfulin general, the condition of the borrower has significantly deteriorated and the collection in full of both principal and interest is highly questionable or improbable
Schedule of Financing Receivables, Originated Year
The following table summarizes designated loan rating category by loan class including term loans on an amortized cost basis by origination year:
TABLE 4.4
(in millions)
June 30, 202020202019201820172016PriorRevolving Loans Amortized Cost BasisTotal
COMMERCIAL
Commercial Real Estate:
Risk Rating:
   Pass$760  $1,848  $1,320  $1,209  $1,056  $2,350  $192  $8,735  
   Special Mention2  10  43  51  44  159  3  312  
   Substandard—  3  12  47  59  132  5  258  
Total commercial real estate762  1,861  1,375  1,307  1,159  2,641  200  9,305  
Commercial and Industrial:
Risk Rating:
   Pass3,249  1,169  727  453  162  420  1,113  7,293  
   Special Mention5  20  59  31  16  31  61  223  
   Substandard1  18  26  20  6  36  86  193  
Total commercial and industrial3,255  1,207  812  504  184  487  1,260  7,709  
Commercial Leases:
Risk Rating:
   Pass122  159  105  67  9  6  —  468  
   Special Mention9  1  4  4  2  2  —  22  
   Substandard1  2  2  1  1  —  —  7  
Total commercial leases132  162  111  72  12  8  —  497  
Other Commercial:
Risk Rating:
   Pass—  —  —  —  —  3  36  39  
   Substandard—  —  —  —  —  1  —  1  
Total other commercial—  —  —  —  —  4  36  40  
Total commercial4,149  3,230  2,298  1,883  1,355  3,140  1,496  17,551  
CONSUMER
Direct Installment:
   Current355  406  251  177  206  534  —  1,929  
   Past due—  —  1  1  2  14  —  18  
Total direct installment355  406  252  178  208  548  —  1,947  
Residential Mortgages:
   Current544  864  433  498  402  748  1  3,490  
   Past due—  3  2  3  3  19  —  30  
Total residential mortgages544  867  435  501  405  767  1  3,520  
Indirect Installment:
   Current199  571  595  242  104  45  —  1,756  
   Past due1  3  3  2  1  1  —  11  
Total indirect installment200  574  598  244  105  46  —  1,767  
Consumer Lines of Credit:
   Current3  9  12  5  6  131  1,198  1,364  
   Past due—  —  —  —  —  12  1  13  
Total consumer lines of credit3  9  12  5  6  143  1,199  1,377  
Total consumer1,102  1,856  1,297  928  724  1,504  1,200  8,611  
Total loans and leases$5,251  $5,086  $3,595  $2,811  $2,079  $4,644  $2,696  $26,162  
Summary of Credit Quality
The following tables present the December 31, 2019 summary of our commercial loans and leases by credit quality category segregated by loans and leases originated and loans acquired:
TABLE 4.5
Commercial Loan and Lease Credit Quality Categories
(in millions)PassSpecial
Mention		SubstandardDoubtfulTotal
Originated Loans and Leases
December 31, 2019
Commercial real estate$6,821  $171  $121  $1  $7,114  
Commercial and industrial4,768  149  144  2  5,063  
Commercial leases423  3  6  —  432  
Other20  —  1  —  21  
Total originated commercial loans
and leases		$12,032  $323  $272  $3  $12,630  
Loans Acquired in a Business Combination
December 31, 2019
Commercial real estate$1,603  $116  $127  $—  $1,846  
Commercial and industrial201  19  25  —  245  
Total commercial loans acquired in a business combination$1,804  $135  $152  $—  $2,091  
Summary of Consumer Loans by Payment Status
Following is a table showing the December 31, 2019 consumer loans by payment status:
TABLE 4.6
Consumer Loan Credit Quality
by Payment Status
(in millions)PerformingNon-
Performing		Total
Originated Loans
December 31, 2019
Direct installment$1,745  $13  $1,758  
Residential mortgages2,978  17  2,995  
Indirect installment1,919  3  1,922  
Consumer lines of credit1,086  6  1,092  
Total originated consumer loans$7,728  $39  $7,767  
Loans Acquired in a Business Combination
December 31, 2019
Direct installment$63  $—  $63  
Residential mortgages379  —  379  
Consumer lines of credit358  1  359  
Total consumer loans acquired in a business combination$800  $1  $801  
Age Analysis of Past Due Loans, by Class
The following tables provide an analysis of the aging of loans by class.
TABLE 4.7
(in millions)30-89 Days
Past Due
> 90 Days
Past Due
and Still
Accruing
Non-
Accrual		Total
Past Due 		CurrentTotal
Loans and
Leases		Non-accrual with No ACL
June 30, 2020
Commercial real estate$18  $—  $77  $95  $9,210  $9,305  $22  
Commercial and industrial11  —  58  69  7,640  7,709  3  
Commercial leases1  —  3  4  493  497  —  
Other1  —  1  2  38  40  —  
Total commercial loans and leases31  —  139  170  17,381  17,551  25  
Direct installment4  1  10  15  1,932  1,947  —  
Residential mortgages17  3  13  33  3,487  3,520  —  
Indirect installment7  1  2  10  1,757  1,767  —  
Consumer lines of credit5  2  6  13  1,364  1,377  —  
Total consumer loans33  7  31  71  8,540  8,611  —  
Total loans and leases$64  $7  $170  $241  $25,921  $26,162  $25  
(in millions)30-89 Days
Past Due
> 90 Days
Past Due
and Still
Accruing
Non-
Accrual		Total
Past Due 		CurrentTotal
Loans and
Leases
Originated Loans and Leases
December 31, 2019
Commercial real estate$10  $—  $26  $36  $7,078  $7,114  
Commercial and industrial9  —  28  37  5,026  5,063  
Commercial leases5  —  1  6  426  432  
Other—  —  1  1  20  21  
Total commercial loans and leases24  —  56  80  12,550  12,630  
Direct installment7  1  7  15  1,743  1,758  
Residential mortgages12  2  8  22  2,973  2,995  
Indirect installment15  1  3  19  1,903  1,922  
Consumer lines of credit5  1  3  9  1,083  1,092  
Total consumer loans39  5  21  65  7,702  7,767  
Total originated loans and leases$63  $5  $77  $145  $20,252  $20,397  
(in millions)30-89
Days
Past Due
> 90 Days
Past Due
and Still
Accruing
Non-
Accrual		Total
Past Due
(1) (2)		Current(Discount) PremiumTotal
Loans
Loans Acquired in a Business Combination
December 31, 2019
Commercial real estate$12  $28  $3  $43  $1,942  $(139) $1,846  
Commercial and industrial2  3  —  5  259  (19) 245  
Total commercial loans14  31  3  48  2,201  (158) 2,091  
Direct installment3  —  —  3  60  —  63  
Residential mortgages8  4  —  12  382  (15) 379  
Consumer lines of credit7  2  1  10  357  (8) 359  
Total consumer loans18  6  1  25  799  (23) 801  
Total loans acquired in a business combination$32  $37  $4  $73  $3,000  $(181) $2,892  

(1) Prior to the adoption of CECL on January 1, 2020, loans acquired in a business combination were considered performing upon acquisition, regardless of whether the customer was contractually delinquent, if we could reasonably estimate the timing and amount of expected cash flows on such loans. In these instances, we did not consider acquired contractually delinquent loans to be non-accrual or non-performing and continued to recognize interest income on these loans using the accretion method. After the adoption of CECL on January 1, 2020, 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 December 31, 2019.
Summary of Non-Performing Assets
Following is a summary of non-performing assets:
TABLE 4.8
(dollars in millions)June 30,
2020		December 31,
2019
Non-accrual loans$170  $81  
Troubled debt restructurings—  22  
Total non-performing loans
170  103  
Other real estate owned 21  26  
Total non-performing assets
$191  $129  
Asset quality ratios:
Non-performing loans / total loans and leases
0.65 %0.44 %
Non-performing assets + 90 days past due + OREO / total loans and leases + OREO
0.75 %0.73 %
Summary of the composition of total TDRs
Following is a summary of the composition of total TDRs:
TABLE 4.9
(in millions)June 30,
2020		December 31,
2019
Accruing$63  $41  
Non-accrual34  15  
Total TDRs$97  $56  
Summary of Troubled Debt Restructurings by Class of Loans
Following is a summary of TDR loans, by class, for loans that were modified during the periods indicated:
TABLE 4.10
Three Months Ended June 30, 2020Six Months Ended June 30, 2020
(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 estate11  $5  $5  16  $6  $5  
Commercial and industrial9  2  1  16  3  2  
Other—  —  —  1  —  —  
Total commercial loans20  7  6  33  9  7  
Direct installment19  1  1  38  3  3  
Residential mortgages2  1  1  16  2  2  
Consumer lines of credit13  —  —  28  1  1  
Total consumer loans34  2  2  82  6  6  
Total54  $9  $8  115  $15  $13  

 Three Months Ended June 30, 2019Six 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 estate11  $3  $4  12  $4  $4  
Commercial and industrial2  4  3  13  5  4  
Total commercial loans13  7  7  25  9  8  
Direct installment14  1  1  32  1  1  
Residential mortgages7  —  —  10  1  1  
Consumer lines of credit7  —  —  14  —  —  
Total consumer loans28  1  1  56  2  2  
Total41  $8  $8  81  $11  $10  
Summary of Troubled Debt Restructurings by Class of Loans and Leases, Payment Default
Following is a summary of 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 4.11
 Three Months Ended
June 30, 2020		Six Months Ended
June 30, 2020
(dollars in millions)Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
Commercial real estate4  $1  8  $3  
Commercial and industrial1  —  2  —  
Total commercial loans5  1  10  3  
Direct installment3  $—  7  $—  
Residential mortgages1  —  2  —  
Consumer lines of credit2  —  2  —  
Total consumer loans6  —  11  —  
Total11  $1  21  $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.
TABLE 4.12
 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  $—  
Total commercial loans—  —  1  —  
Direct installment—  —  3  —  
Residential mortgages—  —  1  —  
Consumer lines of credit—  —  1  —  
Total consumer loans—  —  5  —  
Total—  $—  6  $—