XML 94 R45.htm IDEA: XBRL DOCUMENT

LOANS AND LEASES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Loans and Leases, Net of Unearned Income

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

TABLE 6.1


December 31	2023		2022
(in millions)
Commercial real estate	$	12,305	$	11,526
Commercial and industrial	7,482		7,131
Commercial leases	599		519
Other	110		114
Total commercial loans and leases	20,496		19,290
Direct installment	2,741		2,784
Residential mortgages	6,640		5,297
Indirect installment	1,149		1,553
Consumer lines of credit	1,297		1,331
Total consumer loans	11,827		10,965
Total loans and leases, net of unearned income	$	32,323	$	30,255

Schedule of Certain Information Relating to Commercial Real Estate Loans

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

TABLE 6.2


December 31	2023		2022
(dollars in millions)
Commercial real estate:
Percent owner-occupied	29.0	%	30.2	%
Percent non-owner-occupied	71.0		69.8

Schedule of Loans to Related Parties

Following is a summary of the activity for these related-party loans during 2023:

TABLE 6.3


(in millions)
Balance at beginning of period	$	13
New loans	8
Repayments	(10)
Other	1
Balance at end of period	$	12

Schedule of Loan, Credit Quality Indicators

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

TABLE 6.4


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 summarizes 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 6.5


December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	1,508	$	2,133	$	2,298	$	1,449	$	1,131	$	2,711	$	230	$	11,460
Special Mention	10		66		76		136		105		197		5		595
Substandard	5		27		27		13		59		104		15		250

Total commercial real estate	1,523		2,226		2,401		1,598		1,295		3,012		250		12,305
Commercial real estate current period gross charge-offs	0.2		0.4		0.4		0.7		0.2		10.5		—		12.4
Commercial and Industrial:
Risk Rating:
Pass	1,509		1,369		844		575		370		585		1,773		7,025
Special Mention	12		3		56		2		12		35		35		155
Substandard	34		26		62		9		24		58		89		302

Total commercial and industrial	1,555		1,398		962		586		406		678		1,897		7,482
Commercial and industrial current period gross charge-offs	0.1		0.3		1.0		1.0		2.2		46.6		—		51.2
Commercial Leases:
Risk Rating:
Pass	247		134		82		47		24		41		—		575
Special Mention	—		1		—		—		—		1		—		2
Substandard	7		3		4		7		1		—		—		22

Total commercial leases	254		138		86		54		25		42		—		599
Commercial leases current period gross charge-offs	—		—		—		—		—		—		—		—
Other Commercial:
Risk Rating:
Pass	39		—		—		—		—		8		63		110



Total other commercial	39		—		—		—		—		8		63		110
Other commercial current period gross charge-offs	—		—		—		—		—		4.5		—		4.5
Total commercial loans and leases	3,371		3,762		3,449		2,238		1,726		3,740		2,210		20,496


December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	340		712		784		392		136		364		—		2,728
Past due	—		1		—		1		1		10		—		13
Total direct installment	340		713		784		393		137		374		—		2,741
Direct installment current period gross charge-offs	—		0.2		0.1		0.1		—		0.2		—		0.6
Residential Mortgages:
Current	1,421		1,686		1,516		799		343		819		1		6,585
Past due	3		6		5		3		3		35		—		55
Total residential mortgages	1,424		1,692		1,521		802		346		854		1		6,640
Residential mortgages current period gross charge-offs	—		—		—		—		—		0.7		—		0.7
Indirect Installment:
Current	311		387		238		100		42		49		—		1,127
Past due	2		8		8		2		1		1		—		22
Total indirect installment	313		395		246		102		43		50		—		1,149
Indirect installment current period gross charge-offs	0.4		4.3		3.7		0.6		0.3		1.4		—		10.7
Consumer Lines of Credit:
Current	38		61		14		2		3		117		1,044		1,279
Past due	—		1		1		—		—		13		3		18
Total consumer lines of credit	38		62		15		2		3		130		1,047		1,297
Consumer lines of credit current period gross charge-offs	0.1		—		—		—		—		0.9		—		1.0
Total consumer loans	2,115		2,862		2,566		1,299		529		1,408		1,048		11,827
Total loans and leases	$	5,486	$	6,624	$	6,015	$	3,537	$	2,255	$	5,148	$	3,258	$	32,323
Total charge-offs	$	0.8	$	5.2	$	5.2	$	2.4	$	2.7	$	64.8	$	—	$	81.1

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

TABLE 6.6


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

Schedule of Age Analysis of Past Due Loans, by Class

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

TABLE 6.7


(in millions)	30-89 Days Past Due		≥ 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases		Non-accrual with No ACL
December 31, 2023
Commercial real estate	$	21	$	—	$	42	$	63	$	12,242	$	12,305	$	18
Commercial and industrial	9		—		39		48		7,434		7,482		7
Commercial leases	2		—		3		5		594		599		—
Other	1		1		—		2		108		110		—
Total commercial loans and leases	33		1		84		118		20,378		20,496		25
Direct installment	7		1		5		13		2,728		2,741		—
Residential mortgages	38		7		10		55		6,585		6,640		—
Indirect installment	19		1		2		22		1,127		1,149		—
Consumer lines of credit	10		2		6		18		1,279		1,297		—
Total consumer loans	74		11		23		108		11,719		11,827		—
Total loans and leases	$	107	$	12	$	107	$	226	$	32,097	$	32,323	$	25


(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

Schedule of Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 6.8


December 31	2023			2022
(dollars in millions)
Non-accrual loans	$	107		$	113
Total non-performing loans and leases	107			113
Other real estate owned	3			6
Total non-performing assets	$	110		$	119
Asset quality ratios:
Non-performing loans and leases / total loans and leases	0.33		%	0.37		%
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO	0.38			0.44

Schedule 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 6.9


(dollars in millions)	Amortized Cost Basis		% of Total Class of Financing Receivable		Financial Effect

Twelve Months Ended December 31, 2023
Term Extension
Commercial real estate	$	21.5	0.17	%	The modified loans had an average increase in term of 15 months, extending the maturity date.
Commercial and industrial	20.6		0.28		The modified loans had an average increase in term of 34 months, extending the maturity date.


Direct installment	1.7		0.06		The modified loans had an average increase in term of 90 months, extending the maturity date.
Residential mortgages	3.8		0.06		The modified loans had an average increase in term of 91 months, extending the maturity date.

Consumer lines of credit	0.5		0.04		The repayment on the loans modified was extended, lowering the monthly repayment.
Total	48.1




















Term Extension and Rate Reduction

Commercial and industrial	0.1		—		The term was extended, with a weighted average yield reduction of 462 bps.


Direct installment	0.4		0.01		The modified loans had an average increase in term of 319 months, extending the maturity date.
Residential mortgages	0.8		0.01		The term was extended, with a weighted average yield reduction of 267 bps.

Consumer lines of credit	0.7		0.05		The term was extended, with a weighted average yield reduction of 266 bps.
Total	2.0








































Other
Commercial real estate	8.3		0.07		The modified loans had an average increase in term of 6 months, extending the maturity date.



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

Consumer lines of credit	0.6		0.05		Primarily changed to a payment schedule with a fixed rate reduction of 508 bps.
Total	9.1
Total Outstanding Modified	$	59.2

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 6.11


Payment status - amortization cost basis:
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
December 31, 2023
Commercial real estate	$	20.7	$	9.1	$	—
Commercial and industrial	20.8		—		—


Total commercial loans and leases	41.5		9.1		—
Direct installment	1.9		0.3		—
Residential mortgages	2.8		1.7		0.1

Consumer lines of credit	1.6		0.2		—
Total consumer loans	6.3		2.2		0.1
Total	$	47.8	$	11.3	$	0.1

Following is a summary of TDR loans, by class, for loans that were modified during the periods indicated.

TABLE 6.12


Year Ended December 31	2022
(dollars in millions)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate	12	$	2	$	2
Commercial and industrial	9	1		—

Total commercial loans	21	3		2
Direct installment	42	2		2
Residential mortgages	44	7		7

Consumer lines of credit	14	1		1
Total consumer loans	100	10		10
Total	121	$	13	$	12

Schedule 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 6.10


Amortized cost basis of modified financing receivables that subsequently defaulted:
(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified
December 31, 2023
Commercial real estate	$	0.4	$	—	$	5.2	$	5.6
Commercial and industrial	21.5		0.3		—		21.8


Total commercial loans and leases	21.9		0.3		5.2		27.4
Direct installment	0.1		—		—		0.1
Residential mortgages	0.3		0.3		—		0.6

Consumer lines of credit	0.1		—		—		0.1
Total consumer loans	0.5		0.3		—		0.8
Total	$	22.4	$	0.6	$	5.2	$	28.2

Schedule 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 6.13


Year Ended December 31	2022
(dollars in millions)	Number of Contracts	Recorded Investment
Commercial real estate	5	$	1
Commercial and industrial	2	—
Total commercial loans	7	1
Direct installment	5	—
Residential mortgages	8	1


Total consumer loans	13	1
Total	20	$	2