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LOANS AND LEASES (Tables)

3 Months Ended

Mar. 31, 2024

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)	March 31, 2024		December 31, 2023
Commercial real estate	$	12,447	$	12,305
Commercial and industrial	7,347		7,482
Commercial leases	615		599
Other	140		110
Total commercial loans and leases	20,549		20,496
Direct installment	2,712		2,741
Residential mortgages	6,887		6,640
Indirect installment	1,142		1,149
Consumer lines of credit	1,294		1,297
Total consumer loans	12,035		11,827
Total loans and leases, net of unearned income	$	32,584	$	32,323

Schedule of Certain Information Relating to Commercial Real Estate Loans

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

TABLE 4.2


(dollars in millions)	March 31, 2024		December 31, 2023
Commercial real estate:
Percent owner-occupied	29.0	%	29.0	%
Percent non-owner-occupied	71.0		71.0

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
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 4.4


March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
COMMERCIAL
Commercial Real Estate:
Risk Rating:
Pass	$	278	$	1,534	$	2,150	$	2,222	$	1,396	$	3,670	$	244	$	11,494
Special Mention	—		19		103		100		131		287		17		657
Substandard	4		6		29		46		18		190		3		296

Total commercial real estate	282		1,559		2,282		2,368		1,545		4,147		264		12,447
Commercial real estate current period gross charge-offs	—		0.1		0.1		—		—		6.9		—		7.1
Commercial and Industrial:
Risk Rating:
Pass	282		1,445		1,285		765		507		778		1,754		6,816
Special Mention	—		34		21		67		2		74		33		231
Substandard	—		29		28		66		8		64		105		300

Total commercial and industrial	282		1,508		1,334		898		517		916		1,892		7,347
Commercial and industrial current period gross charge-offs	—		0.3		0.2		0.4		0.6		2.4		—		3.9
Commercial Leases:
Risk Rating:
Pass	73		222		127		76		42		53		—		593
Special Mention	—		—		—		—		1		1		—		2
Substandard	—		7		2		4		6		1		—		20

Total commercial leases	73		229		129		80		49		55		—		615
Commercial leases current period gross charge-offs	—		—		—		—		—		0.2		—		0.2
Other Commercial:
Risk Rating:
Pass	7		53		—		—		—		7		73		140



Total other commercial	7		53		—		—		—		7		73		140
Other commercial current period gross charge-offs	—		—		—		—		—		0.9		—		0.9
Total commercial loans and leases	644		3,349		3,745		3,346		2,111		5,125		2,229		20,549


March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Total
(in millions)
CONSUMER
Direct Installment:
Current	68		326		691		759		379		474		—		2,697
Past due	—		1		2		1		1		10		—		15
Total direct installment	68		327		693		760		380		484		—		2,712
Direct installment current period gross charge-offs	—		—		—		0.1		—		0.1		—		0.2
Residential Mortgages:
Current	283		1,464		1,666		1,493		783		1,138		1		6,828
Past due	—		7		8		5		3		36		—		59
Total residential mortgages	283		1,471		1,674		1,498		786		1,174		1		6,887
Residential mortgages current period gross charge-offs	—		—		—		—		—		—		—		—
Indirect Installment:
Current	101		293		356		214		86		74		—		1,124
Past due	—		2		7		6		2		1		—		18
Total indirect installment	101		295		363		220		88		75		—		1,142
Indirect installment current period gross charge-offs	—		0.5		1.3		0.9		0.1		0.1		—		2.9
Consumer Lines of Credit:
Current	2		36		59		14		2		117		1,049		1,279
Past due	—		—		—		1		1		12		1		15
Total consumer lines of credit	2		36		59		15		3		129		1,050		1,294
Consumer lines of credit current period gross charge-offs	—		—		0.1		—		—		0.2		—		0.3
Total consumer loans	454		2,129		2,789		2,493		1,257		1,862		1,051		12,035
Total loans and leases	$	1,098	$	5,478	$	6,534	$	5,839	$	3,368	$	6,987	$	3,280	$	32,584
Total charge-offs	$	—	$	0.9	$	1.7	$	1.4	$	0.7	$	10.8	$	—	$	15.5


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

Schedule of Age Analysis of Past Due Loans, by Class

The following table provides an analysis of the aging of loans by class.

TABLE 4.5


(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, 2024
Commercial real estate	$	10	$	—	$	38	$	48	$	12,399	$	12,447	$	18
Commercial and industrial	7		—		39		46		7,301		7,347		20
Commercial leases	2		—		3		5		610		615		—
Other	—		1		2		3		137		140		—
Total commercial loans and leases	19		1		82		102		20,447		20,549		38
Direct installment	8		1		6		15		2,697		2,712		—
Residential mortgages	39		11		9		59		6,828		6,887		—
Indirect installment	15		1		2		18		1,124		1,142		—
Consumer lines of credit	6		3		6		15		1,279		1,294		—
Total consumer loans	68		16		23		107		11,928		12,035		—
Total loans and leases	$	87	$	17	$	105	$	209	$	32,375	$	32,584	$	38


(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

Summary of Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 4.6


(dollars in millions)	March 31, 2024			December 31, 2023
Non-accrual loans	$	105		$	107
Total non-performing loans and leases	105			107
Other real estate owned	3			3
Total non-performing assets	$	108		$	110
Asset quality ratios:
Non-performing loans and leases / total loans and leases	0.32		%	0.33		%
Non-performing assets plus 90 days or more past due / total loans and leases plus OREO	0.38			0.38

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 4.7


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






























































































Three Months Ended March 31, 2024
Term Extension




Direct installment	$	0.2	0.01	%	The modified loans had an average increase in term of 114 months, extending the maturity date.
Residential mortgages	0.7		0.01		The modified loans had an average increase in term of 46 months, extending the maturity date.

Consumer lines of credit	0.5		0.04		The modified loans had an average increase in term of 235 months, extending the maturity date.
Total	1.4
Rate Reduction





Residential mortgages	0.1		—		The term was extended, with a weighted average yield reduction of 100 basis points.


Total	0.1










Term Extension and Rate Reduction
Commercial real estate	0.9		0.01		Multiple modifications were made with no material financial effect.




Residential mortgages	0.6		0.01		Multiple modifications were made with no material financial effect.


Total	1.5






























Balloon Payment
Commercial real estate	0.6		—		Multiple modifications were made with no material financial effect.







Total	0.6
Other
Commercial real estate	4.1		0.03		3 to 12 month payment deferrals with no income being earned on these loans.
Commercial and industrial	0.6		0.01		Multiple modifications were made with no material financial effect.






Total	4.7
Total Outstanding Modified	$	8.3


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






























































































Three Months Ended 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 basis points.
Residential mortgages	0.3		0.01		The term was extended, with a weighted average yield reduction of 113 basis points.


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 our modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months:

TABLE 4.9


Payment status - amortization cost basis:
(in millions)	Current		30-89 Days Past Due		90+ Days Past Due
March 31, 2024
Commercial real estate	$	14.9	$	—	$	—
Commercial and industrial	20.0		—		—


Total commercial loans and leases	34.9		—		—
Direct installment	2.0		—		0.2
Residential mortgages	3.1		1.1		0.8

Consumer lines of credit	1.3		0.4		—
Total consumer loans	6.4		1.5		1.0
Total	$	41.3	$	1.5	$	1.0

(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 4.8


Amortized cost basis of modified financing receivables that subsequently defaulted:
(in millions)	Term Extension		Term Extension and Rate Reduction		Balloon Payment		Other		Total Outstanding Modified













Three Months Ended March 31, 2024
Commercial real estate	$	0.3	$	0.9	$	0.6	$	8.7	$	10.5
Commercial and industrial	21.5		0.3		—		0.6		22.4


Total commercial loans and leases	21.8		1.2		0.6		9.3		32.9

Residential mortgages	0.2		—		—		—		0.2


Total consumer loans	0.2		—		—		—		0.2
Total	$	22.0	$	1.2	$	0.6	$	9.3	$	33.1


(in millions)	Term Extension		Term Extension and Rate Reduction		Other		Total Outstanding Modified













Three Months Ended 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