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Loans, Leases, and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Summary of Major Portfolio Segment and Specific Loan Class

Loans and leases are summarized as follows according to major portfolio segment and specific loan class:


(In millions)	June 30, 2021		December 31, 2020

Loans held for sale	$	66	$	81
Commercial:
Commercial and industrial	$	12,947	$	13,444
PPP	4,461		5,572
Leasing	307		320
Owner-occupied	8,231		8,185
Municipal	3,215		2,951
Total commercial	29,161		30,472
Commercial real estate:
Construction and land development	2,576		2,345
Term	9,532		9,759
Total commercial real estate	12,108		12,104
Consumer:
Home equity credit line	2,727		2,745
1-4 family residential	6,269		6,969
Construction and other consumer real estate	593		630
Bankcard and other revolving plans	415		432
Other	125		124
Total consumer	10,129		10,900

Total loans and leases	$	51,398	$	53,476

Summary of Changes in the Allowance for Credit Losses

Changes in the ACL are summarized as follows:


	Three Months Ended June 30, 2021
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses


Balance at beginning of period	$	362	$	152	$	132	$	646
Provision for loan losses	(43)		(41)		(29)		(113)
Gross loan and lease charge-offs	5		—		3		8
Recoveries	7		—		3		10
Net loan and lease charge-offs (recoveries)	(2)		—		—		(2)
Balance at end of period	$	321	$	111	$	103	$	535

Reserve for unfunded lending commitments


Balance at beginning of period	$	24	$	17	$	8	$	49
Provision for unfunded lending commitments	(3)		(7)		—		(10)
Balance at end of period	$	21	$	10	$	8	$	39
Total allowance for credit losses at end of period
Allowance for loan losses	$	321	$	111	$	103	$	535
Reserve for unfunded lending commitments	21		10		8		39
Total allowance for credit losses	$	342	$	121	$	111	$	574


	Six Months Ended June 30, 2021
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses


Balance at beginning of period	$	464	$	171	$	142	$	777
Provision for loan losses	(137)		(60)		(39)		(236)
Gross loan and lease charge-offs	23		—		6		29
Recoveries	17		—		6		23
Net loan and lease charge-offs (recoveries)	6		—		—		6
Balance at end of period	$	321	$	111	$	103	$	535

Reserve for unfunded lending commitments


Balance at beginning of period	$	30	$	20	$	8	$	58
Provision for unfunded lending commitments	(9)		(10)		—		(19)
Balance at end of period	$	21	$	10	$	8	$	39
Total allowance for credit losses at end of period
Allowance for loan losses	$	321	$	111	$	103	$	535
Reserve for unfunded lending commitments	21		10		8		39
Total allowance for credit losses	$	342	$	121	$	111	$	574


	Three Months Ended June 30, 2020
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses


Balance at beginning of period	$	413	$	128	$	189	$	730
Provision for loan losses	186		16		(41)		161
Gross loan and lease charge-offs	31		—		5		36
Recoveries	3		—		2		5
Net loan and lease charge-offs (recoveries)	28		—		3		31
Balance at end of period	$	571	$	144	$	145	$	860

Reserve for unfunded lending commitments


Balance at beginning of period	$	16	$	23	$	8	$	47
Provision for unfunded lending commitments	11		(3)		(1)		7
Balance at end of period	$	27	$	20	$	7	$	54
Total allowance for credit losses at end of period
Allowance for loan losses	$	571	$	144	$	145	$	860
Reserve for unfunded lending commitments	27		20		7		54
Total allowance for credit losses	$	598	$	164	$	152	$	914


	Six Months Ended June 30, 2020
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses


Balance at beginning of period	$	282	$	69	$	146	$	497
Provision for loan losses	323		75		3		401
Gross loan and lease charge-offs	41		—		8		49
Recoveries	7		—		4		11
Net loan and lease charge-offs (recoveries)	34		—		4		38
Balance at end of period	$	571	$	144	$	145	$	860

Reserve for unfunded lending commitments


Balance at beginning of period	$	11	$	12	$	6	$	29
Provision for unfunded lending commitments	16		8		1		25
Balance at end of period	$	27	$	20	$	7	$	54
Total allowance for credit losses at end of period
Allowance for loan losses	$	571	$	144	$	145	$	860
Reserve for unfunded lending commitments	27		20		7		54
Total allowance for credit losses	$	598	$	164	$	152	$	914

Summary of Nonaccrual Loans

The amortized cost basis of loans on nonaccrual status is summarized as follows:


	June 30, 2021
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance		with allowance				Related allowance

Loans held for sale	$	1	$	—	$	1	$	—

Commercial:
Commercial and industrial	$	32	$	79	$	111	$	20
PPP	—		1		1		—

Owner-occupied	36		33		69		3

Total commercial	68		113		181		23
Commercial real estate:

Term	13		15		28		2
Total commercial real estate	13		15		28		2
Consumer:
Home equity credit line	6		12		18		3
1-4 family residential	13		65		78		5

Bankcard and other revolving plans	—		1		1		—

Total consumer loans	19		78		97		8
Total	$	100	$	206	$	306	$	33


	December 31, 2020
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance		with allowance				Related allowance



Commercial:
Commercial and industrial	$	73	$	67	$	140	$	22


Owner-occupied	38		38		76		4

Total commercial	111		105		216		26
Commercial real estate:

Term	12		19		31		3
Total commercial real estate	12		19		31		3
Consumer:
Home equity credit line	2		14		16		3
1-4 family residential	14		89		103		9

Bankcard and other revolving plans	—		1		1		1

Total consumer loans	16		104		120		13
Total	$	139	$	228	$	367	$	42

The amount of accrued interest receivables written-off by reversing interest income during the period is summarized by loan portfolio segment as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020
Commercial	$	4	$	4	$	7	$	8
Commercial real estate	1		1		1		1
Consumer	—		—		—		—
Total	$	5	$	5	$	8	$	9

Summary of Past Due Loans (Accruing and Nonaccruing)

Past due loans (accruing and nonaccruing) are summarized as follows:


	June 30, 2021
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total loans		Accruing loans 90+ days past due		Nonaccrual loans that are current 1


Commercial:
Commercial and industrial	$	12,907	$	15	$	25	$	40	$	12,947	$	1	$	86
PPP	4,461		—		—		—		4,461		—		—
Leasing	307		—		—		—		307		—		—
Owner-occupied	8,197		11		23		34		8,231		3		45
Municipal	3,215		—		—		—		3,215		—		—
Total commercial	29,087		26		48		74		29,161		4		131
Commercial real estate:
Construction and land development	2,576		—		—		—		2,576		—		—
Term	9,521		2		9		11		9,532		2		21
Total commercial real estate	12,097		2		9		11		12,108		2		21
Consumer:
Home equity credit line	2,718		4		5		9		2,727		—		10
1-4 family residential	6,223		7		39		46		6,269		—		36
Construction and other consumer real estate	593		—		—		—		593		—		—
Bankcard and other revolving plans	412		2		1		3		415		—		—
Other	125		—		—		—		125		—		—
Total consumer loans	10,071		13		45		58		10,129		—		46
Total	$	51,255	$	41	$	102	$	143	$	51,398	$	6	$	198


	December 31, 2020
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total loans		Accruing loans 90+ days past due		Nonaccrual loans that are current 1


Commercial:
Commercial and industrial	$	13,388	$	26	$	30	$	56	$	13,444	$	2	$	109
PPP	5,572		—		—		—		5,572		—		—
Leasing	320		—		—		—		320		—		1
Owner-occupied	8,129		34		22		56		8,185		—		48
Municipal	2,951		—		—		—		2,951		—		—
Total commercial	30,360		60		52		112		30,472		2		158
Commercial real estate:
Construction and land development	2,341		—		4		4		2,345		4		—
Term	9,692		57		10		67		9,759		4		13
Total commercial real estate	12,033		57		14		71		12,104		8		13
Consumer:
Home equity credit line	2,733		8		4		12		2,745		—		9
1-4 family residential	6,891		12		66		78		6,969		—		33
Construction and other consumer real estate	630		—		—		—		630				—
Bankcard and other revolving plans	428		2		2		4		432		2		1
Other	123		1		—		1		124		—		—
Total consumer loans	10,805		23		72		95		10,900		2		43
Total	$	53,198	$	140	$	138	$	278	$	53,476	$	12	$	214

1 Represents nonaccrual loans that are not past due more than 30 days; however, full payment of principal and interest is still not expected.

Summary of Outstanding Loan Balances (Accruing and Nonaccruing) Categorized by Credit Quality Indicators

The following schedule presents the amortized cost basis of loans and leases categorized by year of origination and risk classification as monitored by management. The year of origination is generally represented by the year the loan was either originated or the year in which the loan was renewed or restructured.


	June 30, 2021
	Term loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2021		2020		2019		2018		2017		Prior						Total loans
Commercial:
Commercial and industrial
Pass	$	1,052	$	1,476	$	1,478	$	912	$	418	$	315	$	5,966	$	169	$	11,786
Special Mention	2		56		64		74		32		29		186		1		444
Accruing Substandard	20		38		139		92		34		64		217		2		606
Nonaccrual	1		10		2		4		8		27		39		20		111
Total commercial and industrial	1,075		1,580		1,683		1,082		492		435		6,408		192		12,947
PPP
Pass	2,556		1,904		—		—		—		—		—		—		4,460


Nonaccrual	—		1		—		—		—		—		—		—		1
Total PPP	2,556		1,905		—		—		—		—		—		—		4,461
Leasing
Pass	11		53		79		74		48		26		—		—		291
Special Mention	—		1		6		2		1		6		—		—		16
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total leasing	11		54		85		76		49		32		—		—		307
Owner-occupied
Pass	804		1,568		1,060		1,059		824		2,001		132		76		7,524
Special Mention	8		56		57		55		23		68		8		7		282
Accruing Substandard	55		12		59		54		37		125		13		1		356
Nonaccrual	—		5		14		15		9		23		3		—		69
Total owner-occupied	867		1,641		1,190		1,183		893		2,217		156		84		8,231
Municipal
Pass	548		992		647		313		395		272		—		—		3,167
Special Mention	—		—		—		—		—		34		—		—		34
Accruing Substandard	—		9		—		—		—		5		—		—		14
Nonaccrual	—		—		—		—		—		—		—		—		—
Total municipal	548		1,001		647		313		395		311		—		—		3,215
Total commercial	5,057		6,181		3,605		2,654		1,829		2,995		6,564		276		29,161
Commercial real estate:
Construction and land development
Pass	298		745		708		160		43		3		524		56		2,537
Special Mention	—		—		1		—		—		—		—		—		1
Accruing Substandard	12		—		26		—		—		—		—		—		38
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and land development	310		745		735		160		43		3		524		56		2,576
Term
Pass	1,115		2,047		1,796		1,318		620		1,701		207		202		9,006
Special Mention	7		87		26		82		11		36		—		3		252
Accruing Substandard	8		10		30		99		20		76		1		2		246
Nonaccrual	—		—		5		—		1		22		—		—		28
Total term	1,130		2,144		1,857		1,499		652		1,835		208		207		9,532
Total commercial real estate	1,440		2,889		2,592		1,659		695		1,838		732		263		12,108


	June 30, 2021
	Term loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2021		2020		2019		2018		2017		Prior						Total loans














Consumer:
Home equity credit line
Pass	—		—		—		—		—		—		2,601		105		2,706
Special Mention	—		—		—		—		—		—		1		—		1
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		10		8		18
Total home equity credit line	—		—		—		—		—		—		2,614		113		2,727
1-4 family residential
Pass	591		1,103		834		636		846		2,178		—		—		6,188
Special Mention	—		—		—		—		—		1		—		—		1
Accruing Substandard	—		—		—		—		—		2		—		—		2
Nonaccrual	—		6		8		4		14		46		—		—		78
Total 1-4 family residential	591		1,109		842		640		860		2,227		—		—		6,269
Construction and other consumer real estate
Pass	71		282		176		49		6		8		—		—		592
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		1		—		—		—		—		—		—		1
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	71		283		176		49		6		8		—		—		593
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		410		2		412
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		—		1		1
Total bankcard and other revolving plans	—		—		—		—		—		—		412		3		415
Other consumer
Pass	47		30		24		14		7		3		—		—		125
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	47		30		24		14		7		3		—		—		125
Total consumer	709		1,422		1,042		703		873		2,238		3,026		116		10,129
Total loans	$	7,206	$	10,492	$	7,239	$	5,016	$	3,397	$	7,071	$	10,322	$	655	$	51,398


	December 31, 2020
	Term loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2020		2019		2018		2017		2016		Prior						Total loans
Commercial:
Commercial and industrial
Pass	$	2,585	$	2,743	$	1,903	$	829	$	296	$	228	$	3,298	$	109	$	11,991
Special Mention	79		152		183		98		4		43		110		1		670
Accruing Substandard	123		157		129		44		26		17		141		6		643
Nonaccrual	57		2		10		8		2		15		36		10		140
Total commercial and industrial	2,844		3,054		2,225		979		328		303		3,585		126		13,444
PPP
Pass	5,572		—		—		—		—		—		—		—		5,572



Total PPP	5,572		—		—		—		—		—		—		—		5,572
Leasing
Pass	87		121		44		34		14		5		—		—		305
Special Mention	1		—		2		1		—		6		—		—		10
Accruing Substandard	2		1		1		1		—		—		—		—		5
Nonaccrual	—		—		—		—		—		—		—		—		—
Total leasing	90		122		47		36		14		11		—		—		320
Owner-occupied
Pass	1,588		1,205		1,167		895		585		1,806		161		11		7,418
Special Mention	72		65		60		60		51		41		9		3		361
Accruing Substandard	28		64		61		37		35		98		6		1		330
Nonaccrual	8		11		15		11		6		23		2		—		76
Total owner-occupied	1,696		1,345		1,303		1,003		677		1,968		178		15		8,185
Municipal
Pass	1,031		827		359		419		68		227		3		—		2,934
Special Mention	—		—		—		—		—		8		—		—		8
Accruing Substandard	—		—		—		—		—		9		—		—		9
Nonaccrual	—		—		—		—		—		—		—		—		—
Total municipal	1,031		827		359		419		68		244		3		—		2,951
Total commercial	11,233		5,348		3,934		2,437		1,087		2,526		3,766		141		30,472
Commercial real estate:
Construction and land development
Pass	558		933		267		41		1		6		423		3		2,232
Special Mention	24		43		11		—		—		—		5		—		83
Accruing Substandard	—		30		—		—		—		—		—		—		30
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and land development	582		1,006		278		41		1		6		428		3		2,345
Term
Pass	2,524		1,858		1,639		761		778		1,291		73		20		8,944
Special Mention	110		89		177		42		23		85		—		5		531
Accruing Substandard	41		34		96		30		18		34		—		—		253
Nonaccrual	3		5		—		2		1		20		—		—		31
Total term	2,678		1,986		1,912		835		820		1,430		73		25		9,759
Total commercial real estate	3,260		2,992		2,190		876		821		1,436		501		28		12,104


	December 31, 2020
	Term loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2020		2019		2018		2017		2016		Prior						Total loans














Consumer:
Home equity credit line
Pass	—		—		—		—		—		—		2,606		115		2,721
Special Mention	—		—		—		—		—		—		2		—		2
Accruing Substandard	—		—		—		—		—		—		6		—		6
Nonaccrual	—		—		—		—		—		—		11		5		16
Total home equity credit line	—		—		—		—		—		—		2,625		120		2,745
1-4 family residential
Pass	1,185		1,017		833		1,081		1,174		1,570		—		—		6,860
Special Mention	—		—		—		—		—		2		—		—		2
Accruing Substandard	—		—		1		—		2		1		—		—		4
Nonaccrual	2		12		7		19		15		48		—		—		103
Total 1-4 family residential	1,187		1,029		841		1,100		1,191		1,621		—		—		6,969
Construction and other consumer real estate
Pass	200		296		106		16		1		11		—		—		630
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	200		296		106		16		1		11		—		—		630
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		426		2		428
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		3		—		3
Nonaccrual	—		—		—		—		—		—		—		1		1
Total bankcard and other revolving plans	—		—		—		—		—		—		429		3		432
Other consumer
Pass	51		35		22		10		4		2		—		—		124
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	51		35		22		10		4		2		—		—		124
Total consumer	1,438		1,360		969		1,126		1,196		1,634		3,054		123		10,900
Total loans	$	15,931	$	9,700	$	7,093	$	4,439	$	3,104	$	5,596	$	7,321	$	292	$	53,476

Summary of TDRs (Accruing and Nonaccruing) Categorized by Loan Class and Modification Type

Selected information on TDRs, including the recorded investment on an accruing and nonaccruing basis by loan class and modification type is summarized in the following schedules:


	June 30, 2021
	Recorded investment resulting from the following modification types:
(In millions)	Interest rate below market		Maturity or term extension		Principal forgiveness		Payment deferral		Other 1		Multiple modification types 2		Total
Accruing
Commercial:
Commercial and industrial	$	2	$	—	$	—	$	—	$	12	$	21	$	35
Owner-occupied	5		4		—		8		15		39		71

Total commercial	7		4		—		8		27		60		106
Commercial real estate:
Construction and land development	—		8		—		—		—		—		8
Term	1		26		—		35		96		22		180
Total commercial real estate	1		34		—		35		96		22		188
Consumer:
Home equity credit line	—		1		6		—		—		2		9
1-4 family residential	6		1		3		—		1		16		27


Total consumer loans	6		2		9		—		1		18		36
Total accruing	14		40		9		43		124		100		330
Nonaccruing
Commercial:
Commercial and industrial	17		1		—		2		8		45		73
Owner-occupied	5		—		—		3		—		17		25

Total commercial	22		1		—		5		8		62		98
Commercial real estate:

Term	2		—		—		13		2		5		22
Total commercial real estate	2		—		—		13		2		5		22
Consumer:
Home equity credit line	—		—		2		—		—		—		2
1-4 family residential	1		1		1		—		—		3		6


Total consumer loans	1		1		3		—		—		3		8
Total nonaccruing	25		2		3		18		10		70		128
Total	$	39	$	42	$	12	$	61	$	134	$	170	$	458

1 Includes TDRs that resulted from other modification types including, but not limited to, a legal judgment awarded on different terms, a bankruptcy plan confirmed on different terms, a settlement that includes the delivery of collateral in exchange for debt reduction, etc.

2 Includes TDRs that resulted from a combination of any of the previous modification types.


	December 31, 2020
	Recorded investment resulting from the following modification types:
(In millions)	Interest rate below market		Maturity or term extension		Principal forgiveness		Payment deferral		Other 1		Multiple modification types 2		Total
Accruing
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	3	$	4	$	7
Owner-occupied	5		1		—		4		4		8		22
Total commercial	5		1		—		4		7		12		29
Commercial real estate:

Term	1		—		—		16		94		23		134
Total commercial real estate	1		—		—		16		94		23		134
Consumer:
Home equity credit line	—		1		7		—		—		2		10
1-4 family residential	4		1		3		—		2		15		25


Total consumer loans	4		2		10		—		2		17		35
Total accruing	10		3		10		20		103		52		198
Nonaccruing
Commercial:
Commercial and industrial	—		—		—		3		10		52		65
Owner-occupied	5		—		—		3		—		10		18

Total commercial	5		—		—		6		10		62		83
Commercial real estate:

Term	2		—		—		13		3		2		20
Total commercial real estate	2		—		—		13		3		2		20
Consumer:
Home equity credit line	—		—		2		—		—		—		2
1-4 family residential	1		1		—		—		—		6		8


Total consumer loans	1		1		2		—		—		6		10
Total nonaccruing	8		1		2		19		13		70		113
Total	$	18	$	4	$	12	$	39	$	116	$	122	$	311

2 Includes TDRs that resulted from a combination of any of the previous modification types.

Summary of Collateral-Dependent Loans

Select information on loans for which the repayment is expected to be provided substantially through the operation or sale of the underlying collateral and the borrower is experiencing financial difficulties, including the type of collateral and the extent to which the collateral secures the loans, is summarized as follows:


	June 30, 2021
(Dollar amounts in millions)	Amortized cost		Major types of collateral	Weighted average LTV 1
Commercial:
Commercial and industrial	$	21	Single family residential, Agriculture	49%

Owner-occupied	10		Office building	46%


Commercial real estate:

Term	11		Multi-family, Hotel/Motel, Retail	46%

Consumer:
Home equity credit line	6		Single family residential	41%
1-4 family residential	2		Single family residential	49%

Total	$	50

1 The fair value is based on the most recent appraisal or other collateral evaluation.


	December 31, 2020
(Dollar amounts in millions)	Amortized cost		Major types of collateral	Weighted average LTV 1
Commercial:
Commercial and industrial	$	20	Single family residential, Agriculture	55%

Owner-occupied	10		Office Building	47%


Commercial real estate:

Term	12		Multi-family, Hotel/Motel, Retail	58%

Consumer:
Home equity credit line	3		Single family residential	34%
1-4 family residential	2		Single family residential	60%




Total	$	47

1 The fair value is based on the most recent appraisal or other collateral evaluation.