Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2016

Summary of Loans and Leases, Net of Unearned Income

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

(in thousands)

Originated
Loans

Acquired
Loans

Total
Loans and
Leases

June 30, 2016

Commercial real estate

3,789,036

1,566,589

5,355,625

Commercial and industrial

2,643,116

436,489

3,079,605

Commercial leases

200,350

—

200,350

Total commercial loans and leases

6,632,502

2,003,078

8,635,580

Direct installment

1,733,606

96,600

1,830,206

Residential mortgages

1,217,574

461,072

1,678,646

Indirect installment

1,076,516

301

1,076,817

Consumer lines of credit

1,058,128

231,925

1,290,053

Other

51,826

—

51,826

Total loans and leases, net of unearned income

11,770,152

2,792,976

14,563,128


(in thousands)	Originated Loans		Acquired Loans		Total Loans and Leases
December 31, 2015
Commercial real estate	$	3,531,146	$	577,910	$	4,109,056
Commercial and industrial		2,534,351		67,371		2,601,722
Commercial leases		204,553		—		204,553

Total commercial loans and leases		6,270,050		645,281		6,915,331
Direct installment		1,660,717		45,919		1,706,636
Residential mortgages		1,044,689		351,282		1,395,971
Indirect installment		996,175		554		996,729
Consumer lines of credit		1,021,830		115,425		1,137,255
Other		38,518		—		38,518

Total loans and leases, net of unearned income	$	11,031,979	$	1,158,461	$	12,190,440

Certain Information Relating to Commercial Loans

The following table shows certain information relating to commercial loans:


	June 30,			December 31,
(dollars in thousands)	2016			2015
Commercial construction loans	$	432,429		$	352,322
Percent of total loans and leases		3.0	%		2.9	%

Commercial real estate:
Percent owner-occupied		37.0	%		38.1	%
Percent non-owner-occupied		63.0	%		61.9	%

Summary of Outstanding Principal Balance and Carrying Amount of Acquired Loans

The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheet are as follows:


(in thousands)	June 30, 2016		December 31, 2015
Accounted for under ASC 310-30:
Outstanding balance	$	2,730,575	$	1,258,418
Carrying amount		2,419,551		1,011,139

Accounted for under ASC 310-20:
Outstanding balance		398,107		146,161
Carrying amount		367,775		140,595

Total acquired loans:
Outstanding balance		3,128,682		1,404,579
Carrying amount		2,787,326		1,151,734

Summary of Change in Accretable Yield of Acquired Loans

The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table.


	Six Months Ended
	June 30,
(in thousands)	2016			2015
Balance at beginning of period	$	256,120		$	331,899
Acquisitions		308,311			—
Reduction due to unexpected early payoffs		(35,879	)		(25,735	)
Reclass from non-accretable difference		14,508			15,653
Disposals/transfers		(208	)		(348	)
Accretion		(49,646	)		(31,656	)

Balance at end of period	$	493,206		$	289,813

Summary of Acquisition of Purchased Loans

The following table reflects amounts at acquisition for all purchased loans subject to ASC 310-30 (impaired and non-impaired) acquired from METR and Fifth Third.

(in thousands)

Acquired
Impaired
Loans

Acquired
Performing
Loans

Total

Contractually required cash flows at acquisition

99,611

2,191,476

2,291,087

Non-accretable difference (expected losses and foregone interest)

(52,995

)

(264,233

)

(317,228

)

Cash flows expected to be collected at acquisition

46,616

1,927,243

1,973,859

Accretable yield

(1,063

)

(307,248

)

(308,311

)

Basis in acquired loans at acquisition

45,553

1,619,995

1,665,548

Summary of Non-Performing Assets

Following is a summary of non-performing assets:


(dollars in thousands)	June 30, 2016			December 31, 2015
Non-accrual loans	$	67,475		$	49,897
Troubled debt restructurings		22,542			22,028

Total non-performing loans		90,017			71,925
Other real estate owned (OREO)		48,344			38,918

Total non-performing assets	$	138,361		$	110,843

Asset quality ratios:
Non-performing loans / total loans and leases		0.62	%		0.59	%
Non-performing loans + OREO / total loans and leases + OREO		0.95	%		0.91	%
Non-performing assets / of total assets		0.65	%		0.63	%

Age Analysis of Past Due Loans, by Class

The following tables provide an analysis of the aging of the Corporation’s past due loans by class, segregated by loans and leases originated and loans acquired:


(in thousands)	30-89 Days Past Due		³ 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases
Originated Loans and Leases
June 30, 2016
Commercial real estate	$	9,219	$	1	$	23,797	$	33,017	$	3,756,019	$	3,789,036
Commercial and industrial		9,411		3		27,568		36,982		2,606,134		2,643,116
Commercial leases		1,099		—		1,142		2,241		198,109		200,350

Total commercial loans and leases		19,729		4		52,507		72,240		6,560,262		6,632,502
Direct installment		9,479		3,690		5,743		18,912		1,714,694		1,733,606
Residential mortgages		11,249		1,662		3,072		15,983		1,201,591		1,217,574
Indirect installment		6,067		270		1,613		7,950		1,068,566		1,076,516
Consumer lines of credit		2,141		532		2,063		4,736		1,053,392		1,058,128
Other		41		28		—		69		51,757		51,826

Total originated loans and leases	$	48,706	$	6,186	$	64,998	$	119,890	$	11,650,262	$	11,770,152

December 31, 2015
Commercial real estate	$	11,006	$	1	$	23,503	$	34,510	$	3,496,636	$	3,531,146
Commercial and industrial		5,409		3		14,382		19,794		2,514,557		2,534,351
Commercial leases		924		—		659		1,583		202,970		204,553

Total commercial loans and leases		17,339		4		38,544		55,887		6,214,163		6,270,050
Direct installment		9,254		3,813		4,806		17,873		1,642,844		1,660,717
Residential mortgages		8,135		1,470		2,882		12,487		1,032,202		1,044,689
Indirect installment		9,472		379		1,361		11,212		984,963		996,175
Consumer lines of credit		2,410		1,189		1,181		4,780		1,017,050		1,021,830
Other		73		169		—		242		38,276		38,518

Total originated loans and leases	$	46,683	$	7,024	$	48,774	$	102,481	$	10,929,498	$	11,031,979


(in thousands)	30-89 Days Past Due		³ 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due (1) (2)		Current		Discount			Total Loans
Acquired Loans
June 30, 2016
Commercial real estate	$	24,253	$	26,315	$	893	$	51,461	$	1,602,228	$	(87,100	)	$	1,566,589
Commercial and industrial		2,758		4,821		1,163		8,742		461,688		(33,941	)		436,489

Total commercial loans		27,011		31,136		2,056		60,203		2,063,916		(121,041	)		2,003,078
Direct installment		2,602		1,124		—		3,726		90,263		2,611			96,600
Residential mortgages		11,990		13,963		—		25,953		474,442		(39,323	)		461,072
Indirect installment		11		4		—		15		255		31			301
Consumer lines of credit		1,325		858		421		2,604		234,158		(4,837	)		231,925

Total acquired loans	$	42,939	$	47,085	$	2,477	$	92,501	$	2,863,034	$	(162,559	)	$	2,792,976

December 31, 2015
Commercial real estate	$	6,399	$	12,752	$	931	$	20,082	$	593,128	$	(35,300	)	$	577,910
Commercial and industrial		1,065		616		103		1,784		72,037		(6,450	)		67,371

Total commercial loans		7,464		13,368		1,034		21,866		665,165		(41,750	)		645,281
Direct installment		837		659		—		1,496		43,596		827			45,919
Residential mortgages		5,871		15,136		—		21,007		366,742		(36,467	)		351,282
Indirect installment		32		9		—		41		571		(58	)		554
Consumer lines of credit		830		546		89		1,465		117,443		(3,483	)		115,425

Total acquired loans	$	15,034	$	29,718	$	1,123	$	45,875	$	1,193,517	$	(80,931	)	$	1,158,461

(1)	Past due information for acquired loans is based on the contractual balance outstanding at June 30, 2016 and December 31, 2015.

(2)

Acquired loans are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, as long as the Corporation can reasonably estimate the timing and amount of expected cash flows on such loans. In these instances, the Corporation does not consider acquired contractually delinquent loans to be non-accrual or non-performing and continues to recognize interest income on these loans using the accretion method. Acquired loans are considered non-accrual or non-performing when, due to credit deterioration or other factors, the Corporation determines it is no longer able to reasonably estimate the timing and amount of expected cash flows on such loans. The Corporation does not recognize interest income on acquired loans considered non-accrual or non-performing.

Summary of Commercial Loans and Leases by Credit Quality

The following tables present a summary of the Corporation’s commercial loans and leases by credit quality category, segregated by loans and leases originated and loans acquired:


	Originated Commercial Loan and Lease Credit Quality Categories
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans and Leases
June 30, 2016
Commercial real estate	$	3,612,375	$	106,555	$	69,872	$	234	$	3,789,036
Commercial and industrial		2,387,112		89,891		159,497		6,616		2,643,116
Commercial leases		194,408		2,107		3,835		—		200,350

Total originated commercial loans and leases	$	6,193,895	$	198,553	$	233,204	$	6,850	$	6,632,502

December 31, 2015
Commercial real estate	$	3,416,527	$	52,887	$	61,411	$	321	$	3,531,146
Commercial and industrial		2,335,103		109,539		87,380		2,329		2,534,351
Commercial leases		198,207		2,447		3,899		—		204,553

Total originated commercial loans and leases	$	5,949,837	$	164,873	$	152,690	$	2,650	$	6,270,050

Acquired Loans
June 30, 2016
Commercial real estate	$	1,301,203	$	131,051	$	132,639	$	1,696	$	1,566,589
Commercial and industrial		371,294		21,805		42,874		516		436,489

Total acquired commercial loans	$	1,672,497	$	152,856	$	175,513	$	2,212	$	2,003,078

December 31, 2015
Commercial real estate	$	464,162	$	47,619	$	66,129		—	$	577,910
Commercial and industrial		56,446		3,182		7,743		—		67,371

Total acquired commercial loans	$	520,608	$	50,801	$	73,872		—	$	645,281

Summary of Consumer Loans by Payment Status

Following is a table showing originated consumer loans by payment status:


	Originated Consumer Loan Credit Quality by Payment Status
(in thousands)	Performing		Non- Performing		Total
June 30, 2016
Direct installment	$	1,718,741	$	14,865	$	1,733,606
Residential mortgages		1,204,189		13,385		1,217,574
Indirect installment		1,074,744		1,772		1,076,516
Consumer lines of credit		1,055,118		3,010		1,058,128
Other		51,826		—		51,826

Total originated consumer loans	$	5,104,618	$	33,032	$	5,137,650

December 31, 2015
Direct installment	$	1,646,925	$	13,792	$	1,660,717
Residential mortgages		1,031,926		12,763		1,044,689
Indirect installment		994,661		1,514		996,175
Consumer lines of credit		1,019,783		2,047		1,021,830
Other		38,518		—		38,518

Total originated consumer loans	$	4,731,813	$	30,116	$	4,761,929

Summary of Impaired Loans and Leases, by Class

Following is a summary of information pertaining to originated loans and leases considered to be impaired, by class of loan and lease:


(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Specific Reserve		Recorded Investment With Specific Reserve		Total Recorded Investment		Specific Reserve		Average Recorded Investment
At or for the Six Months Ended June 30, 2016
Commercial real estate	$	32,295	$	22,983	$	2,101	$	25,084	$	234	$	25,319
Commercial and industrial		29,126		12,826		14,699		27,525		6,616		26,023
Commercial leases		1,142		1,142		—		1,142		—		—

Total commercial loans and leases		62,563		36,951		16,800		53,751		6,850		51,342
Direct installment		16,125		14,865		—		14,865		—		14,481
Residential mortgages		13,942		13,385		—		13,385		—		13,093
Indirect installment		4,266		1,772		—		1,772		—		1,636
Consumer lines of credit		3,776		3,010		—		3,010		—		2,947

Total	$	100,672	$	69,983	$	16,800	$	86,783	$	6,850	$	83,499

At or for the Year Ended December 31, 2015
Commercial real estate	$	33,780	$	24,423	$	772	$	25,195	$	321	$	26,143
Commercial and industrial		15,860		9,176		5,543		14,719		2,329		12,298
Commercial leases		659		659		—		659		—		747

Total commercial loans and leases		50,299		34,258		6,315		40,573		2,650		39,188
Direct installment		14,679		13,792		—		13,792		—		13,267
Residential mortgages		13,394		12,763		—		12,763		—		12,896
Indirect installment		3,745		1,514		—		1,514		—		1,401
Consumer lines of credit		2,408		2,047		—		2,047		—		2,198

Total	$	84,525	$	64,374	$	6,315	$	70,689	$	2,650	$	68,950

Additional Allowance for Credit Losses Relating to Acquired Loans

The above tables do not reflect the additional allowance for credit losses relating to acquired loans in the following pools and categories:


(in thousands)	June 30, 2016		December 31, 2015
Commercial real estate	$	2,775	$	3,073
Commercial and industrial		600		695

Total commercial loans		3,375		3,768
Direct installment		1,183		1,557
Residential mortgages		582		659
Indirect installment		221		221
Consumer lines of credit		289		522

Total	$	5,650	$	6,727

Summary of Payment Status of Originated TDRs

Following is a summary of the payment status of originated TDRs:


(in thousands)	June 30, 2016		December 31, 2015
Accruing:
Performing	$	16,762	$	15,165
Non-performing		22,542		22,028
Non-accrual		7,479		8,307

Total TDRs	$	46,783	$	45,500

Reserve for Commercial TDRs Included in Allowance for Credit Losses

The reserve for commercial TDRs included in the allowance for credit losses are as follows:


(in thousands)	June 30, 2016		December 31, 2015
Specific reserves	$	—	$	300
Pooled reserves for individual loans under $500		752		929

Summary of Troubled Debt Restructurings by Class of Loans

The majority of TDRs are the result of interest rate concessions for a limited period of time. Following is a summary of originated loans, by class, that have been restructured:


	Three Months Ended June 30, 2016						Six Months Ended June 30, 2016
(dollars in thousands)	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 estate		—	$	—	$	—		4	$	778	$	749
Commercial and industrial		—		—		—		—		—		—

Total commercial loans		—		—		—		4		778		749
Direct installment		120		1,960		1,832		265		3,984		3,772
Residential mortgages		8		385		390		27		1,420		1,402
Indirect installment		2		6		6		5		17		17
Consumer lines of credit		17		302		298		36		481		473

Total		147	$	2,653	$	2,526		337	$	6,680	$	6,413


	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
(dollars in thousands)	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 estate		—	$	—	$	—		2	$	312	$	176
Commercial and industrial		1		5		4		1		5		4

Total commercial loans		1		5		4		3		317		180
Direct installment		110		1,761		1,729		241		3,310		3,201
Residential mortgages		7		231		234		21		812		846
Indirect installment		5		14		13		10		30		30
Consumer lines of credit		14		250		249		30		520		519

Total		137	$	2,261	$	2,229		305	$	4,989	$	4,776

Summary of Originated Troubled Debt Restructurings by Class of Loans and Leases, Payment Default

Following is a summary of originated TDRs, by class of loans and leases, for which there was a payment default, excluding loans that were either charged-off or cured by period end. Default occurs when a loan is 90 days or more past due and is within 12 months of restructuring (dollars in thousands).


	Three Months Ended June 30, 2016 (1)				Six Months Ended June 30, 2016 (1)
(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial real estate		—	$	—		—	$	—
Commercial and industrial		—		—		—		—

Total commercial loans		—		—		—		—
Direct installment		32		135		57		246
Residential mortgages		3		142		4		193
Indirect installment		2		8		6		8
Consumer lines of credit		1		55		2		65

Total		38	$	340		69	$	512


	Three Months Ended June 30, 2015 (1)				Six Months Ended June 30, 2015 (1)
(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial real estate		—	$	—		—	$	—
Commercial and industrial		1		229		1		229

Total commercial loans		1		229		1		229
Direct installment		27		96		58		182
Residential mortgages		3		114		4		171
Indirect installment		3		7		5		7
Consumer lines of credit		—		—		1		92
Other		—		—		—		—

Total		34	$	446		69	$	681

(1)	The recorded investment is as of period end.