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

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Summary of Major Portfolio Segment and Specific Loan Class

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

	December 31,
(In millions)	2023		2022
Loans held for sale	$	53	$	8
Commercial:
Commercial and industrial 1	$	16,684	$	16,377
Leasing	383		386
Owner-occupied	9,219		9,371
Municipal	4,302		4,361
Total commercial	30,588		30,495
Commercial real estate:
Construction and land development	2,669		2,513
Term	10,702		10,226
Total commercial real estate	13,371		12,739
Consumer:
Home equity credit line	3,356		3,377
1-4 family residential	8,415		7,286
Construction and other consumer real estate	1,442		1,161
Bankcard and other revolving plans	474		471
Other	133		124
Total consumer	13,820		12,419
Total loans and leases	$	57,779	$	55,653

1 Commercial and industrial loan balances include Paycheck Protection Program (“PPP”) loans of $77 million and $197 million for the respective periods presented.

Loans Held For Sale

The following schedule presents loans added to, or sold from, the held for sale category during the periods presented:

	Twelve Months Ended December 31,
(In millions)	2023		2022		2021
Loans added to held for sale	$	678	$	659	$	1,700
Loans sold from held for sale	632		716		1,683

Summary of Changes in the Allowance for Credit Losses

Changes in the ACL are summarized as follows:

	December 31, 2023
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan and lease losses
Balance at December 31, 2022	$	300	$	156	$	119	$	575
Adjustment for change in accounting standard	—		(4)		1		(3)
Balance at beginning of year	$	300	$	152	$	120	$	572
Provision for loan losses	27		92		29		148
Gross loan and lease charge-offs	45		3		14		62
Recoveries	20		—		6		26
Net loan and lease charge-offs (recoveries)	25		3		8		36
Balance at end of year	$	302	$	241	$	141	$	684
Reserve for unfunded lending commitments
Balance at beginning of year	$	16	$	33	$	12	$	61
Provision for unfunded lending commitments	3		(16)		(3)		(16)
Balance at end of year	$	19	$	17	$	9	$	45
Total allowance for credit losses
Allowance for loan and lease losses	$	302	$	241	$	141	$	684
Reserve for unfunded lending commitments	19		17		9		45
Total allowance for credit losses	$	321	$	258	$	150	$	729

	December 31, 2022
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan and lease losses
Balance at beginning of year	$	311	$	107	$	95	$	513
Provision for loan losses	29		49		23		101
Gross loan and lease charge-offs	72		—		10		82
Recoveries	32		—		11		43
Net loan and lease charge-offs (recoveries)	40		—		(1)		39
Balance at end of year	$	300	$	156	$	119	$	575
Reserve for unfunded lending commitments
Balance at beginning of year	$	19	$	11	$	10	$	40
Provision for unfunded lending commitments	(3)		22		2		21
Balance at end of year	$	16	$	33	$	12	$	61
Total allowance for credit losses
Allowance for loan and lease losses	$	300	$	156	$	119	$	575
Reserve for unfunded lending commitments	16		33		12		61
Total allowance for credit losses	$	316	$	189	$	131	$	636

Summary of Nonaccrual Loans

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

	December 31, 2023
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance		with allowance				Related allowance
Commercial:
Commercial and industrial	$	11	$	71	$	82	$	30
Leasing	—		2		2		1
Owner-occupied	12		8		20		1
Total commercial	23		81		104		32
Commercial real estate:
Construction and land development	22		—		22		—
Term	37		2		39		1
Total commercial real estate	59		2		61		1
Consumer:
Home equity credit line	1		16		17		5
1-4 family residential	8		32		40		5
Total consumer loans	9		48		57		10
Total	$	91	$	131	$	222	$	43

	December 31, 2022
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance		with allowance				Related allowance
Commercial:
Commercial and industrial	$	8	$	55	$	63	$	27
Owner-occupied	13		11		24		1
Total commercial	21		66		87		28
Commercial real estate:
Term	—		14		14		2
Total commercial real estate	—		14		14		2
Consumer:
Home equity credit line	1		10		11		2
1-4 family residential	9		28		37		3
Total consumer loans	10		38		48		5
Total	$	31	$	118	$	149	$	35

The amount of accrued interest receivables reversed from interest income during the periods presented is summarized by loan portfolio segment as follows:

	Twelve Months Ended December 31,
(In millions)	2023		2022		2021
Commercial	$	10	$	12	$	15
Commercial real estate	3		1		2
Consumer	2		—		—
Total	$	15	$	13	$	17

Summary of Past Due Loans (Accruing and Nonaccruing)

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

	December 31, 2023
(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 current1
Commercial:
Commercial and industrial	$	16,631	$	38	$	15	$	53	$	16,684	$	1	$	65
Leasing	381		2		—		2		383		—		—
Owner-occupied	9,206		11		2		13		9,219		1		18
Municipal	4,301		1		—		1		4,302		—		—
Total commercial	30,519		52		17		69		30,588		2		83
Commercial real estate:
Construction and land development	2,645		2		22		24		2,669		—		—
Term	10,661		14		27		41		10,702		—		3
Total commercial real estate	13,306		16		49		65		13,371		—		3
Consumer:
Home equity credit line	3,334		17		5		22		3,356		—		9
1-4 family residential	8,375		17		23		40		8,415		—		13
Construction and other consumer real estate	1,442		—		—		—		1,442				—
Bankcard and other revolving plans	468		5		1		6		474		1		—
Other	132		1		—		1		133		—		—
Total consumer loans	13,751		40		29		69		13,820		1		22
Total	$	57,576	$	108	$	95	$	203	$	57,779	$	3	$	108

	December 31, 2022
(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 current1
Commercial:
Commercial and industrial	$	16,331	$	24	$	22	$	46	$	16,377	$	4	$	45
Leasing	386		—		—		—		386		—		—
Owner-occupied	9,344		20		7		27		9,371		1		15
Municipal	4,361		—		—		—		4,361		—		—
Total commercial	30,422		44		29		73		30,495		5		60
Commercial real estate:
Construction and land development	2,511		2		—		2		2,513		—		—
Term	10,179		37		10		47		10,226		—		4
Total commercial real estate	12,690		39		10		49		12,739		—		4
Consumer:
Home equity credit line	3,369		5		3		8		3,377		—		6
1-4 family residential	7,258		9		19		28		7,286		—		16
Construction and other consumer real estate	1,161		—		—		—		1,161		—		—
Bankcard and other revolving plans	467		3		1		4		471		1		—
Other	124		—		—		—		124		—		—
Total consumer loans	12,379		17		23		40		12,419		1		22
Total	$	55,491	$	100	$	62	$	162	$	55,653	$	6	$	86

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

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

he amortized cost basis of loans and leases categorized by year of origination and by credit quality classifications as monitored by management, as well as year-to-date gross charge-offs:

	December 31, 2023
	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)	2023		2022		2021		2020		2019		Prior						Total
Commercial:
Commercial and industrial
Pass	$	2,654	$	2,420	$	1,204	$	639	$	494	$	598	$	7,973	$	151	$	16,133
Special Mention	8		98		34		2		20		37		103		—		302
Accruing Substandard	11		18		7		2		19		8		99		3		167
Nonaccrual	5		36		1		2		11		1		21		5		82
Total commercial and industrial	2,678		2,572		1,246		645		544		644		8,196		159		16,684
Gross charge-offs	1		10		6		—		—		2		24		2		45
Leasing
Pass	104		125		47		29		45		18		—		—		368
Special Mention	2		9		1		1		—		—		—		—		13
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		2		—		—		—		—		—		—		2
Total leasing	106		136		48		30		45		18		—		—		383
Gross charge-offs	—		—		—		—		—		—		—		—		—
Owner-occupied
Pass	1,080		1,945		2,020		1,002		721		1,907		212		52		8,939
Special Mention	2		5		17		5		17		15		—		—		61
Accruing Substandard	10		31		29		21		16		90		2		—		199
Nonaccrual	—		1		1		7		3		8		—		—		20
Total owner-occupied	1,092		1,982		2,067		1,035		757		2,020		214		52		9,219
Gross charge-offs	—		—		—		—		—		—		—		—		—
Municipal
Pass	601		1,080		1,069		623		382		512		—		3		4,270
Special Mention	7		—		—		—		—		6		—		—		13
Accruing Substandard	8		—		6		3		1		1		—		—		19
Nonaccrual	—		—		—		—		—		—		—		—		—
Total municipal	616		1,080		1,075		626		383		519		—		3		4,302
Gross charge-offs	—		—		—		—		—		—		—		—		—
Total commercial	4,492		5,770		4,436		2,336		1,729		3,201		8,410		214		30,588
Total commercial gross charge-offs	1		10		6		—		—		2		24		2		45
Commercial real estate:
Construction and land development
Pass	553		938		355		56		7		4		518		127		2,558
Special Mention	—		—		29		30		—		—		—		—		59
Accruing Substandard	23		2		—		5		—		—		—		—		30
Nonaccrual	—		—		—		—		21		—		1		—		22
Total construction and land development	576		940		384		91		28		4		519		127		2,669
Gross charge-offs	—		—		—		—		1		—		—		—		1
Term
Pass	1,861		2,385		1,833		1,449		804		1,438		238		110		10,118
Special Mention	55		108		65		78		44		6		—		—		356
Accruing Substandard	79		18		12		16		5		24		—		35		189
Nonaccrual	—		26		—		—		3		10		—		—		39
Total term	1,995		2,537		1,910		1,543		856		1,478		238		145		10,702
Gross charge-offs	—		2		—		—		—		—		—		—		2
Total commercial real estate	2,571		3,477		2,294		1,634		884		1,482		757		272		13,371
Total commercial real estate gross charge-offs	—		2		—		—		1		—		—		—		3

	December 31, 2023
	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)	2023		2022		2021		2020		2019		Prior						Total
Consumer:
Home equity credit line
Pass	—		—		—		—		—		—		3,237		97		3,334
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		4		1		5
Nonaccrual	—		—		—		—		—		—		15		2		17
Total home equity credit line	—		—		—		—		—		—		3,256		100		3,356
Gross charge-offs	—		—		—		—		—		—		3		—		3
1-4 family residential
Pass	814		2,264		1,823		988		594		1,891		—		—		8,374
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		1		—		—		1
Nonaccrual	—		3		3		3		4		27		—		—		40
Total 1-4 family residential	814		2,267		1,826		991		598		1,919		—		—		8,415
Gross charge-offs	—		—		—		—		—		2		—		—		2
Construction and other consumer real estate
Pass	212		1,002		200		15		7		6		—		—		1,442
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	212		1,002		200		15		7		6		—		—		1,442
Gross charge-offs	—		—		—		—		—		—		—		—		—
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		471		1		472
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		—		—		—
Total bankcard and other revolving plans	—		—		—		—		—		—		473		1		474
Gross charge-offs	—		—		—		—		—		—		9		—		9
Other consumer
Pass	66		37		18		6		4		2		—		—		133
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	66		37		18		6		4		2		—		—		133
Gross charge-offs	—		—		—		—		—		—		—		—		—
Total consumer	1,092		3,306		2,044		1,012		609		1,927		3,729		101		13,820
Total consumer gross charge-offs	—		—		—		—		—		2		12		—		14
Total loans	$	8,155	$	12,553	$	8,774	$	4,982	$	3,222	$	6,610	$	12,896	$	587	$	57,779
Total gross charge-offs	$	1	$	12	$	6	$	—	$	1	$	4	$	36	$	2	$	62

	December 31, 2022
	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)	2022		2021		2020		2019		2018		Prior						Total
Commercial:
Commercial and industrial
Pass	$	3,363	$	1,874	$	979	$	876	$	293	$	264	$	8,054	$	182	$	15,885
Special Mention	1		2		10		52		1		2		50		—		118
Accruing Substandard	26		7		17		78		30		67		84		2		311
Nonaccrual	—		8		5		11		1		2		32		4		63
Total commercial and industrial	3,390		1,891		1,011		1,017		325		335		8,220		188		16,377
Leasing
Pass	160		71		47		66		18		19		—		—		381
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		5		—		—		5
Nonaccrual	—		—		—		—		—		—		—		—		—
Total leasing	160		71		47		66		18		24		—		—		386
Owner-occupied
Pass	2,157		2,285		1,143		874		654		1,679		187		74		9,053
Special Mention	1		15		5		8		3		16		1		—		49
Accruing Substandard	16		33		48		20		55		64		9		—		245
Nonaccrual	1		1		2		4		5		10		1		—		24
Total owner-occupied	2,175		2,334		1,198		906		717		1,769		198		74		9,371
Municipal
Pass	1,230		1,220		816		441		168		437		8		—		4,320
Special Mention	32		6		—		—		—		—		—		—		38
Accruing Substandard	—		—		—		—		—		3		—		—		3
Nonaccrual	—		—		—		—		—		—		—		—		—
Total municipal	1,262		1,226		816		441		168		440		8		—		4,361
Total commercial	6,987		5,522		3,072		2,430		1,228		2,568		8,426		262		30,495
Commercial real estate:
Construction and land development
Pass	548		671		455		81		2		2		617		96		2,472
Special Mention	1		1		—		—		—		—		—		—		2
Accruing Substandard	17		—		—		22		—		—		—		—		39
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and land development	566		672		455		103		2		2		617		96		2,513
Term
Pass	2,861		2,107		1,686		1,012		666		1,229		276		112		9,949
Special Mention	39		21		11		—		4		1		—		—		76
Accruing Substandard	42		2		34		21		53		35		—		—		187
Nonaccrual	—		—		—		4		1		9		—		—		14
Total term	2,942		2,130		1,731		1,037		724		1,274		276		112		10,226
Total commercial real estate	3,508		2,802		2,186		1,140		726		1,276		893		208		12,739

	December 31, 2022
	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)	2022		2021		2020		2019		2018		Prior						Total
Consumer:
Home equity credit line
Pass	—		—		—		—		—		—		3,265		98		3,363
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		3		—		3
Nonaccrual	—		—		—		—		—		—		8		3		11
Total home equity credit line	—		—		—		—		—		—		3,276		101		3,377
1-4 family residential
Pass	1,913		1,503		1,024		638		381		1,788		—		—		7,247
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		2		—		—		2
Nonaccrual	—		2		2		4		3		26		—		—		37
Total 1-4 family residential	1,913		1,505		1,026		642		384		1,816		—		—		7,286
Construction and other consumer real estate
Pass	583		485		64		19		5		5		—		—		1,161
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	583		485		64		19		5		5		—		—		1,161
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		468		2		470
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		1		—		1
Nonaccrual	—		—		—		—		—		—		—		—		—
Total bankcard and other revolving plans	—		—		—		—		—		—		469		2		471
Other consumer
Pass	68		30		12		8		4		2		—		—		124
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	68		30		12		8		4		2		—		—		124
Total consumer	2,564		2,020		1,102		669		393		1,823		3,745		103		12,419
Total loans	$	13,059	$	10,344	$	6,360	$	4,239	$	2,347	$	5,667	$	13,064	$	573	$	55,653

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

The amortized cost of loans to borrowers experiencing financial difficulty that were modified during the period, by loan class and modification type, is summarized in the following schedule:

	Twelve Months Ended December 31, 2023
	Amortized cost associated with the following modification types:
(Dollar amounts in millions)	Interest rate reduction		Maturity or term extension		Principal forgiveness		Payment deferral		Multiple modification types 1		Total 2		Percentage of total loans 3
Commercial:
Commercial and industrial	$	—	$	46	$	—	$	1	$	—	$	47	0.3	%
Owner-occupied	4		9		—		1		—		14		0.2
Municipal	—		8		—		—		—		8		0.2
Total commercial	4		63		—		2		—		69		0.2
Commercial real estate:
Construction and land development	—		27		—		—		—		27		1.0
Term	—		165		—		—		—		165		1.5
Total commercial real estate	—		192		—		—		—		192		1.4
Consumer:
1-4 family residential	—		—		1		—		1		2		—
Bankcard and other revolving plans	—		1		—		—		—		1		0.2
Total consumer loans	—		1		1		—		1		3		—
Total	$	4	$	256	$	1	$	2	$	1	$	264	0.5	%

1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications.

2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $22 million at December 31, 2023.

3 Amounts less than 0.05% are rounded to zero.

The financial impact of loan modifications to borrowers experiencing financial difficulty during the twelve months ended December 31, 2023, is summarized in the following schedule:

	Twelve Months Ended December 31, 2023
	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)
Commercial:
Commercial and industrial	—	%	13
Owner-occupied 1	4.4		18
Municipal	—		12
Total commercial	4.4		14
Commercial real estate:
Construction and land development	—		8
Term	—		18
Total commercial real estate	—		16
Consumer: 1
1-4 family residential	—		103
Bankcard and other revolving plans	—		50
Total consumer loans	—		82
Total weighted average financial impact	4.4	%	16

1 Primarily relates to a small number of loans within each respective loan class.

The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after January 1, 2023 (the date we adopted ASU 2022-02) through December 31, 2023, presented by portfolio segment and loan class.

	December 31, 2023
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total amortized cost of loans
Commercial:
Commercial and industrial	$	44	$	3	$	—	$	3	$	47
Owner-occupied	13		1		—		1		14
Municipal	8		—		—		—		8
Total commercial	65		4		—		4		69
Commercial real estate:
Construction and land development	27		—		—		—		27
Term	156		9		—		9		165
Total commercial real estate	183		9		—		9		192
Consumer:
1-4 family residential	2		—		—		—		2
Bankcard and other revolving plans	1		—		—		—		1
Total consumer loans	3		—		—		—		3
Total	$	251	$	13	$	—	$	13	$	264

Information on TDRs, including their amortized cost on an accruing and nonaccruing basis by loan class, and by modification type, is summarized in the following schedules:

	December 31, 2022
	Amortized cost basis resulting from the following modification types:
(In millions)	Interest rate below market		Maturity or term extension		Principal forgiveness		Payment deferral		Other1		Multiple modification types2		Total
Accruing
Commercial:
Commercial and industrial	$	1	$	12	$	—	$	—	$	9	$	28	$	50
Owner-occupied	—		1		—		2		13		12		28
Total commercial	1		13		—		2		22		40		78
Commercial real estate:
Construction and land development	—		—		—		—		—		8		8
Term	1		27		—		27		28		1		84
Total commercial real estate	1		27		—		27		28		9		92
Consumer:
Home equity credit line	—		1		4		—		—		1		6
1-4 family residential	2		1		2		—		1		15		21
Total consumer loans	2		2		6		—		1		16		27
Total accruing	$	4	$	42	$	6	$	29	$	51	$	65	$	197
Nonaccruing
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	3	$	9	$	3	$	15
Owner-occupied	4		—		—		—		—		4		8
Total commercial	4		—		—		3		9		7		23
Commercial real estate:
Term	—		10		—		—		—		—		10
Total commercial real estate	—		10		—		—		—		—		10
Consumer:
Home equity credit line	—		—		1		—		—		—		1
1-4 family residential	—		1		—		—		1		2		4
Total consumer loans	—		1		1		—		1		2		5
Total nonaccruing	4		11		1		3		10		9		38
Total	$	8	$	53	$	7	$	32	$	61	$	74	$	235

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.

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:

	December 31, 2023
(In millions)	Amortized Cost		Major Types of Collateral	Weighted Average LTV1
Commercial:
Owner-occupied	$	7	Hospital	17%
Commercial real estate:
Construction and land development	22		Office Building	92%
Term	28		Office Building	87%
Total	$	57

	December 31, 2022
(In millions)	Amortized Cost		Major Types of Collateral	Weighted Average LTV1
Commercial:
Owner-occupied	$	2	Land, Warehouse	29%
Commercial real estate:
Term	1		Multi-family	55%
Consumer:
Home equity credit line	1		Single family residential	13%
1-4 family residential	3		Single family residential	41%
Total	$	7

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