Loans and Leases (Tables)

9 Months Ended

Sep. 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 and
Leases

Acquired
Loans

Total
Loans and
Leases

September 30, 2016

Commercial real estate

3,918,575

1,448,716

5,367,291

Commercial and industrial

2,696,210

392,195

3,088,405

Commercial leases

195,271

—

195,271

Total commercial loans and leases

6,810,056

1,840,911

8,650,967

Direct installment

1,750,189

87,206

1,837,395

Residential mortgages

1,355,476

424,391

1,779,867

Indirect installment

1,150,575

237

1,150,812

Consumer lines of credit

1,088,807

214,416

1,303,223

Other

51,182

—

51,182

Total loans and leases, net of unearned income

12,206,285

2,567,161

14,773,446


(in thousands)	Originated Loans and Leases		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 Regency Consumer Finance Loans

The following table shows certain information relating to the Regency consumer finance loans:


	September 30,			December 31,
(dollars in thousands)	2016			2015

Regency consumer finance loans	$	182,527		$	186,162
Percent of total loans and leases		1.2	%		1.5	%

Certain Information Relating to Commercial Real Estate Loans

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


	September 30,			December 31,
(dollars in thousands)	2016			2015

Commercial construction loans	$	454,239		$	352,322
Percent of total loans and leases		3.1	%		2.9	%
Commercial real estate:
Percent owner-occupied		36.3	%		38.1	%
Percent non-owner-occupied		63.7	%		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 sheets are as follows:


(in thousands)	September 30, 2016		December 31, 2015
Accounted for under ASC 310-30:
Outstanding balance	$	2,534,180	$	1,258,418
Carrying amount		2,206,380		1,011,139
Accounted for under ASC 310-20:
Outstanding balance		372,419		146,161
Carrying amount		354,400		140,595
Total acquired loans:
Outstanding balance		2,906,599		1,404,579
Carrying amount		2,560,780		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.


	Nine Months Ended
	September 30,
(in thousands)	2016			2015
Balance at beginning of period	$	256,120		$	331,899
Acquisitions		308,311			—
Reduction due to unexpected early payoffs		(60,920	)		(35,601	)
Reclass from non-accretable difference		66,807			24,489
Disposals/transfers		(343	)		(509	)
Accretion		(77,180	)		(46,207	)

Balance at end of period	$	492,795		$	274,071

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 loans with deteriorated credit quality) 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)	September 30, 2016			December 31, 2015
Non-accrual loans	$	74,828		$	49,897
Troubled debt restructurings		20,638			22,028

Total non-performing loans		95,466			71,925
Other real estate owned (OREO)		40,523			38,918

Total non-performing assets	$	135,989		$	110,843

Asset quality ratios:
Non-performing loans / total loans and leases		0.65	%		0.59	%
Non-performing loans + OREO / total loans and leases + OREO		0.92	%		0.91	%
Non-performing assets / of total assets		0.63	%		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
September 30, 2016
Commercial real estate	$	7,971	$	1	$	18,186	$	26,158	$	3,892,417	$	3,918,575
Commercial and industrial		5,479		3		36,174		41,656		2,654,554		2,696,210
Commercial leases		1,106		—		3,359		4,465		190,806		195,271

Total commercial loans and leases		14,556		4		57,719		72,279		6,737,777		6,810,056
Direct installment		9,003		3,502		6,368		18,873		1,731,316		1,750,189
Residential mortgages		9,550		2,454		3,106		15,110		1,340,366		1,355,476
Indirect installment		6,468		467		1,741		8,676		1,141,899		1,150,575
Consumer lines of credit		3,467		408		1,564		5,439		1,083,368		1,088,807
Other		27		71		1,000		1,098		50,084		51,182

Total originated loans and leases	$	43,071	$	6,906	$	71,498	$	121,475	$	12,084,810	$	12,206,285

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
September 30, 2016
Commercial real estate	$	14,576	$	25,048	$	1,754	$	41,378	$	1,489,415	$	(82,077	)	$	1,448,716
Commercial and industrial		1,283		2,941		1,153		5,377		418,122		(31,304	)		392,195

Total commercial loans		15,859		27,989		2,907		46,755		1,907,537		(113,381	)		1,840,911
Direct installment		2,712		947		—		3,659		81,332		2,215			87,206
Residential mortgages		8,224		12,625		—		20,849		442,023		(38,481	)		424,391
Indirect installment		4		3		—		7		169		61			237
Consumer lines of credit		2,288		1,020		423		3,731		215,455		(4,770	)		214,416

Total acquired loans	$	29,087	$	42,584	$	3,330	$	75,001	$	2,646,516	$	(154,356	)	$	2,567,161

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 September 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:


	Commercial Loan and Lease Credit Quality Categories
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans and Leases
September 30, 2016
Commercial real estate	$	3,737,877	$	120,184	$	59,964	$	550	$	3,918,575
Commercial and industrial		2,466,207		85,586		135,322		9,095		2,696,210
Commercial leases		186,357		4,446		4,468		—		195,271

Total originated commercial loans and leases	$	6,390,441	$	210,216	$	199,754	$	9,645	$	6,810,056

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
September 30, 2016
Commercial real estate	$	1,249,051	$	75,085	$	123,560	$	1,020	$	1,448,716
Commercial and industrial		336,545		13,110		42,024		516		392,195

Total acquired commercial loans	$	1,585,596	$	88,195	$	165,584	$	1,536	$	1,840,911

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
September 30, 2016
Direct installment	$	1,735,117	$	15,072	$	1,750,189
Residential mortgages		1,342,077		13,399		1,355,476
Indirect installment		1,148,649		1,926		1,150,575
Consumer lines of credit		1,086,167		2,640		1,088,807
Other		51,182		—		51,182

Total originated consumer loans	$	5,363,192	$	33,037	$	5,396,229

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 Nine Months Ended September 30, 2016
Commercial real estate	$	20,836	$	15,057	$	3,214	$	18,271	$	550	$	21,677
Commercial and industrial		41,296		18,654		17,028		35,682		9,095		31,603
Commercial leases		3,359		3,359		—		3,359		—		1,514

Total commercial loans and leases		65,491		37,070		20,242		57,312		9,645		54,794
Direct installment		16,465		15,072		—		15,072		—		14,972
Residential mortgages		14,049		13,399		—		13,399		—		13,164
Indirect installment		4,668		1,926		—		1,926		—		1,846
Consumer lines of credit		3,413		2,640		—		2,640		—		2,825

Total	$	104,086	$	70,107	$	20,242	$	90,349	$	9,645	$	87,601

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)	September 30, 2016		December 31, 2015
Commercial real estate	$	3,631	$	3,073
Commercial and industrial		493		695

Total commercial loans		4,124		3,768
Direct installment		1,110		1,557
Residential mortgages		659		659
Indirect installment		221		221
Consumer lines of credit		267		522

Total	$	6,381	$	6,727

Summary of Payment Status of Originated TDRs

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


(in thousands)	September 30, 2016		December 31, 2015
Accruing:
Performing	$	17,030	$	15,165
Non-performing		20,638		22,028
Non-accrual		9,307		8,307

Total TDRs	$	46,975	$	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)	September 30, 2016		December 31, 2015
Specific reserves	$	608	$	300
Pooled reserves for individual loans under $500		302		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 September 30, 2016						Nine Months Ended September 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	$	737
Commercial and industrial		3		1,504		1,504		3		1,727		1,504

Total commercial loans		3		1,504		1,504		7		2,505		2,241
Direct installment		123		1,029		1,018		388		5,051		4,749
Residential mortgages		9		508		532		36		1,946		1,893
Indirect installment		9		23		22		14		40		40
Consumer lines of credit		20		395		364		56		878		837

Total		164	$	3,459	$	3,440		501	$	10,420	$	9,760


	Three Months Ended September 30, 2015						Nine Months Ended September 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	$	168
Commercial and industrial		—		—		—		1		5		4

Total commercial loans		—		—		—		3		317		172
Direct installment		121		1,757		1,726		361		5,064		4,835
Residential mortgages		10		232		233		31		1,048		1,074
Indirect installment		3		13		10		13		43		40
Consumer lines of credit		10		146		143		40		666		610

Total		144	$	2,148	$	2,112		448	$	7,138	$	6,731

Summary of Originated Troubled Debt Restructurings by Class, Payment Default

Following is a summary of originated TDRs, by class, 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.


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

Total commercial loans		—		—		—		—
Direct installment		26		408		76		377
Residential mortgages		5		189		7		282
Indirect installment		6		19		12		19
Consumer lines of credit		1		25		3		91

Total		38	$	641		98	$	769


	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial real estate		—	$	—		—	$	—
Commercial and industrial		—		—		1		204

Total commercial loans		—		—		1		204
Direct installment		22		87		75		254
Residential mortgages		2		75		5		179
Indirect installment		1		6		6		12
Consumer lines of credit		—		—		1		8
Other		—		—		—		—

Total		25	$	168		88	$	657