ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES (Tables)

9 Months Ended

Sep. 30, 2020

Following is a summary of changes in the ACL, by loan and lease class:

TABLE 5.1


(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net Charge- Offs		Provision for Credit Losses		Balance at End of Period
Three Months Ended September 30, 2020
Commercial real estate	$	163	$	(3)	$	1	$	(2)	$	23	$	184
Commercial and industrial	98		(17)		1		(16)		11		93
Commercial leases	17		—		—		—		—		17
Other	1		(1)		—		(1)		1		1
Total commercial loans and leases	279		(21)		2		(19)		35		295
Direct installment	25		—		—		—		(1)		24
Residential mortgages	33		(1)		1		—		(2)		31
Indirect installment	17		(1)		1		—		(5)		12
Consumer lines of credit	11		—		—		—		—		11
Total consumer loans	86		(2)		2		—		(8)		78
Total allowance for credit losses on loans and leases	$	365	$	(23)	$	4	$	(19)	$	27	$	373


(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net Charge- Offs		Provision for Credit Losses		ASC 326 Adoption Impact		Initial ACL on PCD Loans		Balance at End of Period
Nine Months Ended September 30, 2020
Commercial real estate	$	60	$	(8)	$	6	$	(2)	$	48	$	38	$	40	$	184
Commercial and industrial	53		(25)		3		(22)		50		8		4		93
Commercial leases	11		—		—		—		6		—		—		17
Other	9		(3)		—		(3)		4		(9)		—		1
Total commercial loans and leases	133		(36)		9		(27)		108		37		44		295
Direct installment	13		(1)		—		(1)		1		10		1		24
Residential mortgages	22		(1)		1		—		(1)		6		4		31
Indirect installment	19		(6)		3		(3)		(6)		2		—		12
Consumer lines of credit	9		(2)		—		(2)		3		—		1		11
Total consumer loans	63		(10)		4		(6)		(3)		18		6		78
Total allowance on loans and leases	$	196	$	(46)	$	13	$	(33)	$	105	$	55	$	50	$	373

Following is a summary of changes in the ACL, by loan and lease class:

TABLE 5.2


(in millions)	Balance at Beginning of Period		Charge- Offs		Recoveries		Net Charge- Offs		Provision for Credit Losses		Balance at End of Period
Three Months Ended September 30, 2019
Commercial real estate	$	61	$	(1)	$	—	$	(1)	$	(2)	$	58
Commercial and industrial	52		(3)		1		(2)		7		57
Commercial leases	9		—		—		—		1		10
Other	1		—		—		—		1		2
Total commercial loans and leases	123		(4)		1		(3)		7		127
Direct installment	13		—		—		—		(1)		12
Residential mortgages	20		—		—		—		3		23
Indirect installment	18		(3)		1		(2)		2		18
Consumer lines of credit	9		—		—		—		—		9
Total consumer loans	60		(3)		1		(2)		4		62
Total allowance for credit losses on originated loans and leases	183		(7)		2		(5)		11		189
Purchased credit-impaired loans	1		—		—		—		—		1
Other acquired loans	4		(2)		1		(1)		1		4
Total allowance for credit losses on acquired loans	5		(2)		1		(1)		1		5
Total allowance for credit losses	$	188	$	(9)	$	3	$	(6)	$	12	$	194
Nine Months Ended September 30, 2019
Commercial real estate	$	55	$	(3)	$	1	$	(2)	$	5	$	58
Commercial and industrial	49		(7)		3		(4)		12		57
Commercial leases	8		—		—		—		2		10
Other	2		(2)		—		(2)		2		2
Total commercial loans and leases	114		(12)		4		(8)		21		127
Direct installment	14		(1)		—		(1)		(1)		12
Residential mortgages	20		(1)		—		(1)		4		23
Indirect installment	15		(8)		3		(5)		8		18
Consumer lines of credit	10		(1)		—		(1)		—		9
Total consumer loans	59		(11)		3		(8)		11		62
Total allowance on originated loans and leases	173		(23)		7		(16)		32		189
Purchased credit-impaired loans	1		—		—		—		—		1
Other loans acquired in a business combination	6		(9)		2		(7)		5		4
Total allowance on loans acquired in a business combination	7		(9)		2		(7)		5		5
Total allowance for credit losses	$	180	$	(32)	$	9	$	(23)	$	37	$	194

Following is a summary of the individual and collective ACL and corresponding loan and lease balances by class:

TABLE 5.3


	Allowance for Credit Losses				Loans and Leases Outstanding
(in millions)	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Loans and Leases		Individually Evaluated for Impairment		Collectively Evaluated for Impairment
December 31, 2019
Commercial real estate	$	2	$	58	$	7,114	$	13	$	7,101
Commercial and industrial	2		51		5,063		17		5,046
Commercial leases	—		11		432		—		432
Other	—		2		21		—		21
Total commercial loans and leases	4		122		12,630		30		12,600
Direct installment	—		13		1,758		—		1,758
Residential mortgages	—		22		2,995		—		2,995
Indirect installment	—		19		1,922		—		1,922
Consumer lines of credit	—		9		1,092		—		1,092
Total consumer loans	—		63		7,767		—		7,767
Total	$	4	$	185	$	20,397	$	30	$	20,367

The above table excludes loans acquired in a business combination that were pooled into groups of loans for evaluating impairment.