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LOANS AND LEASES (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Loans and Leases, Net of Unearned Income

Following is a summary of total loans and leases, net of unearned income:

TABLE 5.1



(in millions)	March 31, 2023		December 31, 2022
Commercial real estate	$	11,528	$	11,526
Commercial and industrial	7,246		7,131
Commercial leases	562		519
Other	176		114
Total commercial loans and leases	19,512		19,290
Direct installment	2,752		2,784
Residential mortgages	5,589		5,297
Indirect installment	1,525		1,553
Consumer lines of credit	1,295		1,331
Total consumer loans	11,161		10,965
Total loans and leases, net of unearned income	$	30,673	$	30,255

Certain Information Relating to Commercial Real Estate Loans

The following table shows occupancy information relating to commercial real estate loans:

TABLE 5.2


(dollars in millions)	March 31, 2023		December 31, 2022
Commercial real estate:
Percent owner-occupied	29.9	%	30.2	%
Percent non-owner-occupied	70.1		69.8

Summary of Loan, Credit Quality Indicators

We use an internal risk rating assigned to a commercial loan or lease at origination, summarized below.

TABLE 5.3


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

Schedule of Financing Receivables, Originated Year

The following table summarize the designated loan rating category by loan class including term loans on an amortized cost basis by origination year and year-to-date gross charge-offs by originating year:

TABLE 5.4


March 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	225	$	1,967	$	2,368	$	1,647	$	1,270	$	2,984	$	245	$	10,706
Special Mention	2		44		33		84		48		268		8		487
Substandard	—		6		7		20		60		221		21		335

Total commercial real estate	227		2,017		2,408		1,751		1,378		3,473		274		11,528
Commercial real estate current period gross charge-offs	—		—		0.1		—		—		6.4		—		6.5
Commercial and Industrial:
Risk Rating:
Pass	359		1,576		1,159		747		489		654		1,742		6,726
Special Mention	4		26		47		10		25		109		34		255
Substandard	7		12		41		8		20		79		98		265

Total commercial and industrial	370		1,614		1,247		765		534		842		1,874		7,246
Commercial and industrial current period gross charge-offs	—		0.2		0.1		0.3		0.6		4.6		—		5.8
Commercial Leases:
Risk Rating:
Pass	105		142		114		66		51		57		—		535
Special Mention	7		2		1		—		—		—		—		10
Substandard	—		2		4		8		2		1		—		17

Total commercial leases	112		146		119		74		53		58		—		562
Commercial leases current period gross charge-offs	—		—		—		—		—		—		—		—
Other Commercial:
Risk Rating:
Pass	57		—		—		—		—		11		108		176



Total other commercial	57		—		—		—		—		11		108		176
Other commercial current period gross charge-offs	—		—		—		—		—		0.8		—		0.8
Total commercial loans and leases	766		3,777		3,774		2,590		1,965		4,384		2,256		19,512


March 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	63		781		863		437		157		439		—		2,740
Past due	—		1		1		—		—		10		—		12
Total direct installment	63		782		864		437		157		449		—		2,752
Direct installment current period gross charge-offs	—		—		0.1		—		—		0.2		—		0.3
Residential Mortgages:
Current	269		1,555		1,582		853		371		919		1		5,550
Past due	—		2		2		3		1		31		—		39
Total residential mortgages	269		1,557		1,584		856		372		950		1		5,589
Residential mortgages current period gross charge-offs	—		—		—		—		—		0.4		—		0.4
Indirect Installment:
Current	117		746		329		149		75		95		—		1,511
Past due	—		4		6		2		1		1		—		14
Total indirect installment	117		750		335		151		76		96		—		1,525
Indirect installment current period gross charge-offs	—		1.0		1.2		0.2		—		0.2		—		2.6
Consumer Lines of Credit:
Current	12		72		17		2		3		128		1,046		1,280
Past due	—		—		—		—		—		13		2		15
Total consumer lines of credit	12		72		17		2		3		141		1,048		1,295
Consumer lines of credit current period gross charge-offs	—		—		—		—		—		0.3		—		0.3
Total consumer loans	461		3,161		2,800		1,446		608		1,636		1,049		11,161
Total loans and leases	$	1,227	$	6,938	$	6,574	$	4,036	$	2,573	$	6,020	$	3,305	$	30,673
Total charge-offs	$	—	$	1.2	$	1.5	$	0.5	$	0.6	$	12.9	$	—	$	16.7

The following table summarize the designated loan rating category by loan class including term loans on an amortized cost basis by origination year:


December 31, 2022	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	1,967	$	2,348	$	1,678	$	1,283	$	700	$	2,447	$	258	$	10,681
Special Mention	43		35		67		74		104		208		5		536
Substandard	3		7		20		47		45		167		20		309

Total commercial real estate	2,013		2,390		1,765		1,404		849		2,822		283		11,526

Commercial and Industrial:
Risk Rating:
Pass	1,635		1,194		760		533		289		453		1,856		6,720
Special Mention	15		43		16		27		48		48		54		251
Substandard	5		12		11		8		38		34		52		160

Total commercial and industrial	1,655		1,249		787		568		375		535		1,962		7,131

Commercial Leases:
Risk Rating:
Pass	187		121		69		59		36		27		—		499
Special Mention	—		1		—		1		—		—		—		2
Substandard	2		5		8		1		1		1		—		18

Total commercial leases	189		127		77		61		37		28		—		519

Other Commercial:
Risk Rating:
Pass	58		—		—		—		—		12		44		114



Total other commercial	58		—		—		—		—		12		44		114

Total commercial loans and leases	3,915		3,766		2,629		2,033		1,261		3,397		2,289		19,290

CONSUMER
Direct Installment:
Current	801		887		453		163		91		374		—		2,769
Past due	—		1		1		1		1		11		—		15
Total direct installment	801		888		454		164		92		385		—		2,784

Residential Mortgages:
Current	1,464		1,587		871		378		128		819		2		5,249
Past due	2		3		3		2		5		33		—		48
Total residential mortgages	1,466		1,590		874		380		133		852		2		5,297

Indirect Installment:
Current	800		357		166		88		80		40		—		1,531
Past due	5		11		3		1		1		1		—		22
Total indirect installment	805		368		169		89		81		41		—		1,553

Consumer Lines of Credit:
Current	74		17		1		3		4		126		1,086		1,311
Past due	—		1		1		—		—		15		3		20
Total consumer lines of credit	74		18		2		3		4		141		1,089		1,331

Total consumer loans	3,146		2,864		1,499		636		310		1,419		1,091		10,965
Total loans and leases	$	7,061	$	6,630	$	4,128	$	2,669	$	1,571	$	4,816	$	3,380	$	30,255

Age Analysis of Past Due Loans, by Class

The following tables provide an analysis of the aging of loans by class.

TABLE 5.5


(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
March 31, 2023
Commercial real estate	$	9	$	—	$	44	$	53	$	11,475	$	11,528	$	11
Commercial and industrial	7		—		41		48		7,198		7,246		12
Commercial leases	1		—		1		2		560		562		—
Other	—		—		—		—		176		176		—
Total commercial loans and leases	17		—		86		103		19,409		19,512		23
Direct installment	6		—		6		12		2,740		2,752		—
Residential mortgages	22		4		13		39		5,550		5,589		—
Indirect installment	11		1		2		14		1,511		1,525		—
Consumer lines of credit	7		2		6		15		1,280		1,295		—
Total consumer loans	46		7		27		80		11,081		11,161		—
Total loans and leases	$	63	$	7	$	113	$	183	$	30,490	$	30,673	$	23


(in millions)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
December 31, 2022
Commercial real estate	$	13	$	—	$	39	$	52	$	11,474	$	11,526	$	15
Commercial and industrial	9		1		44		54		7,077		7,131		11
Commercial leases	3		—		1		4		515		519		—
Other	1		—		—		1		113		114		—
Total commercial loans and leases	26		1		84		111		19,179		19,290		26
Direct installment	7		1		7		15		2,769		2,784		—
Residential mortgages	28		6		14		48		5,249		5,297		—
Indirect installment	20		1		1		22		1,531		1,553		—
Consumer lines of credit	10		3		7		20		1,311		1,331		—
Total consumer loans	65		11		29		105		10,860		10,965		—
Total loans and leases	$	91	$	12	$	113	$	216	$	30,039	$	30,255	$	26

Summary of Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 5.6


(dollars in millions)	March 31, 2023			December 31, 2022
Non-accrual loans	$	113		$	113
Total non-performing loans and leases	113			113
Other real estate owned	6			6
Total non-performing assets	$	119		$	119
Asset quality ratios:
Non-performing loans and leases / total loans and leases	0.37		%	0.37		%
Non-performing assets + 90 days past due / total loans and leases + OREO	0.41			0.44

Summary of Financing Receivable, Modified

The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable, type of concession granted and the financial effect of the modifications made to borrowers experiencing financial difficulty:

TABLE 5.7


(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect
March 31, 2023
Term Extension

Commercial and industrial	$	2.4	0.03	%	The modified loans had an average increase in term of 9 months, extending the maturity date.


Direct installment	0.1		—		The repayment on the loans modified were extended, lowering the monthly repayment.
Residential mortgages	0.1		—		The repayment on the loans modified was extended, lowering the monthly repayment.

Consumer lines of credit	0.2		0.02		The repayment on the loans modified was extended, lowering the monthly repayment.
Total	$	2.8




















Term Extension and Rate Reduction




Direct installment	$	0.1	—	%	The term was extended, with a weighted average yield reduction of 134 bps.
Residential mortgages	0.3		0.01		The term was extended, with a weighted average yield reduction of 113 bps.


Total	$	0.4








































Other
Commercial real estate	$	0.6	0.01	%	Multiple modifications were made with no material financial effect.




Residential mortgages	0.1		—		Multiple modifications were made with no material financial effect.


Total	$	0.7
Total Outstanding Modified	$	3.9

We closely monitor the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

TABLE 5.9


Payment status - amortization cost basis:
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
March 31, 2023
Commercial real estate	$	0.6	$	—	$	—
Commercial and industrial	2.4		—		—


Total commercial loans and leases	3.0		—		—
Direct installment	0.2		—
Residential mortgages	0.2		—		0.3

Consumer lines of credit	0.2		—		—
Total consumer loans	0.6		—		0.3
Total	$	3.6	$	—	$	0.3

Summary of Financing Receivable, Modified, Subsequent Default

Following is a summary of loans modified in a manner that grants a concession to a borrower experiencing financial difficulties, 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 or in non-accrual and is within 12 months of restructuring.

TABLE 5.8


Amortized cost basis of modified financing receivables that subsequently defaulted:
(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
March 31, 2023
Commercial real estate	$	—	$	—	$	0.6	$	0.6
Commercial and industrial	1.6		—		—		1.6


Total commercial loans and leases	1.6		—		0.6		2.2

Residential mortgages	—		0.3		—		0.3

Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	0.1		0.3		—		0.4
Total	$	1.7	$	0.3	$	0.6	$	2.6

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 5.10


	Three Months Ended March 31, 2022
(dollars in millions)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate	2	$	—	$	—


Total commercial loans	2	—		—
Direct installment	13	—		—
Residential mortgages	5	1		1

Consumer lines of credit	3	—		—
Total consumer loans	21	1		1
Total	23	$	1	$	1

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 5.11


	Three Months Ended March 31, 2022
(dollars in millions)	Number of Contracts	Recorded Investment
Commercial real estate	3	$	—

Total commercial loans	3	—
Direct installment	1	—
Residential mortgages	1	—


Total consumer loans	2	—
Total	5	$	—