Loans and leases and the allowance for credit losses (Tables)

3 Months Ended

Mar. 31, 2012

Loans and leases and the allowance for credit losses [Abstract]

Outstanding principal balance and the carrying amount of loans that is included in the consolidated balance sheet

The outstanding principal balance and the carrying amount of acquired loans that were recorded at fair value at the acquisition date that is included in the consolidated balance sheet is as follows:

	March 31, 2012		December 31, 2011
	(in thousands)
Outstanding principal balance	$	8,850,525		9,203,366
Carrying amount:
Commercial, financial, leasing, etc.		1,259,609		1,331,198
Commercial real estate		3,701,591		3,879,518
Residential real estate		875,088		915,371
Consumer		1,919,740		2,033,700
	$	7,756,028		8,159,787

Summary of changes in accretable yield for acquired loans

	2012
	Purchased impaired			Other acquired			Total
	(in thousands)
Balance at beginning of period	$	30,805			807,960			838,765
Interest income		(7,664	)		(73,723	)		(81,387	)
Reclassifications from (to) nonaccretable balance, net		(576	)		1,000			424
Other (a)		—			12,229			12,229
Balance at end of period	$	22,565			747,466			770,031

(a) Other changes in expected cash flows including changes in interest rates and prepayments.

Summary of current, past due and nonaccrual loans

A summary of current, past due and nonaccrual loans as of March 31, 2012 and December 31, 2011 were as follows:

	Current		30-89 Days past  due		90 Days or more past due and accruing				Purchased impaired (b)		Nonaccrual		Total
					Non- acquired		Acquired (a)
	(in thousands)
March 31, 2012
Commercial, financial, leasing, etc.	$	15,676,591		76,842		1,506		10,982		18,114		154,637		15,938,672
Real estate:
Commercial		20,386,440		139,148		14,436		62,745		185,736		173,443		20,961,948
Residential builder and developer		844,400		41,976		292		17,274		274,814		267,065		1,445,821
Other commercial construction		1,837,187		54,663		2,453		12,096		70,438		101,949		2,078,786
Residential		7,463,049		218,639		249,292		37,609		51,038		175,117		8,194,744
Residential Alt-A		374,450		25,475		—		—		—		101,925		501,850
Consumer:
Home equity lines and loans		6,440,601		45,068		—		14,986		4,344		47,608		6,552,607
Automobile		2,571,414		35,372		—		303		—		23,011		2,630,100
Other		2,543,948		38,235		5,102		9,168		295		20,474		2,617,222
Total	$	58,138,080		675,418		273,081		165,163		604,779		1,065,229		60,921,750
December 31, 2011
Commercial, financial, leasing, etc.	$	15,493,803		37,112		7,601		8,560		23,762		163,598		15,734,436
Real estate:
Commercial		19,658,761		172,641		9,983		54,148		192,804		171,111		20,259,448
Residential builder and developer		845,680		49,353		13,603		21,116		297,005		281,576		1,508,333
Other commercial construction		2,393,304		41,049		968		23,582		78,105		106,325		2,643,333
Residential		6,626,182		256,017		250,472		37,982		56,741		172,681		7,400,075
Residential Alt-A		383,834		34,077		—		—		—		105,179		523,090
Consumer:
Home equity lines and loans		6,570,675		43,516		—		15,409		4,635		47,150		6,681,385
Automobile		2,644,330		48,342		—		601		—		26,835		2,720,108
Other		2,551,225		43,547		5,249		2,340		310		23,126		2,625,797
Total	$	57,167,794		725,654		287,876		163,738		653,362		1,097,581		60,096,005

(a) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(b) Accruing loans that were impaired at acquisition date and recorded at fair value.

Changes in the allowance for credit losses

Changes in the allowance for credit losses for the three months ended March 31, 2012 and 2011 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate						Consumer			Unallocated		Total
				Commercial			Residential
	(in thousands)
2012
Beginning balance	$	234,022			367,637			91,915			143,121			71,595		908,290
Provision for credit losses		10,121			(2,260	)		16,230			23,538			1,371		49,000
Net charge-offs
Charge-offs		(8,037	)		(10,540	)		(12,718	)		(28,981	)		—		(60,276	)
Recoveries		3,167			1,717			1,874			5,234			—		11,992
Net charge-offs		(4,870	)		(8,823	)		(10,844	)		(23,747	)		—		(48,284	)
Ending balance	$	239,273			356,554			97,301			142,912			72,966		909,006
2011
Beginning balance	$	212,579			400,562			86,351			133,067			70,382		902,941
Provision for credit losses		14,942			14,775			15,841			27,764			1,678		75,000
Net charge-offs
Charge-offs		(14,027	)		(24,579	)		(16,167	)		(28,321	)		—		(83,094	)
Recoveries		2,165			349			1,501			4,841			—		8,856
Net charge-offs		(11,862	)		(24,230	)		(14,666	)		(23,480	)		—		(74,238	)
Ending balance	$	215,659			391,107			87,526			137,351			72,060		903,703

Impaired loans and leases

The following tables provide information with respect to impaired loans and leases as of March 31, 2012 and December 31, 2011 and for the three months ended March 31, 2012 and March 31, 2011.

	March 31, 2012						December 31, 2011
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	124,792		150,354		47,303		118,538		145,510		48,674
Real estate:
Commercial		113,600		143,180		19,854		102,886		128,456		17,651
Residential builder and developer		190,289		319,845		44,597		159,293		280,869		52,562
Other commercial construction		17,252		21,467		2,924		20,234		24,639		3,836
Residential		107,537		126,082		4,389		101,882		119,498		4,420
Residential Alt-A		140,126		152,157		23,000		150,396		162,978		25,000
Consumer:
Home equity lines and loans		10,790		12,047		2,709		9,385		10,670		2,306
Automobile		52,363		52,363		10,983		53,710		53,710		11,468
Other		9,155		9,155		2,375		8,401		8,401		2,084
		765,904		986,650		158,134		724,725		934,731		168,001
With no related allowance recorded:
Commercial, financial, leasing, etc.		37,892		45,608		—		53,104		60,778		—
Real estate:
Commercial		65,961		83,706		—		71,636		91,118		—
Residential builder and developer		85,389		100,099		—		133,156		177,277		—
Other commercial construction		85,258		89,439		—		86,652		89,862		—
Residential		18,840		25,511		—		19,686		25,625		—
Residential Alt-A		37,310		65,861		—		34,356		60,942		—
		330,650		410,224		—		398,590		505,602		—
Total:
Commercial, financial, leasing, etc.		162,684		195,962		47,303		171,642		206,288		48,674
Real estate:
Commercial		179,561		226,886		19,854		174,522		219,574		17,651
Residential builder and developer		275,678		419,944		44,597		292,449		458,146		52,562
Other commercial construction		102,510		110,906		2,924		106,886		114,501		3,836
Residential		126,377		151,593		4,389		121,568		145,123		4,420
Residential Alt-A		177,436		218,018		23,000		184,752		223,920		25,000
Consumer:
Home equity lines and loans		10,790		12,047		2,709		9,385		10,670		2,306
Automobile		52,363		52,363		10,983		53,710		53,710		11,468
Other		9,155		9,155		2,375		8,401		8,401		2,084
Total	$	1,096,554		1,396,874		158,134		1,123,315		1,440,333		168,001

Interest income recognized on loans

	Three months ended March 31, 2012						Three months ended March 31, 2011
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	167,724		409		409		170,337		993		988
Real estate:
Commercial		178,315		318		318		189,779		382		339
Residential builder and developer		282,495		341		179		326,815		525		128
Other commercial construction		104,105		170		170		111,232		510		321
Residential		126,376		1,342		878		83,527		997		575
Residential Alt-A		181,018		1,843		546		205,632		1,995		551
Consumer:
Home equity lines and loans		9,998		166		42		12,076		160		25
Automobile		53,289		898		178		58,863		984		296
Other		8,302		93		39		3,031		57		6
Total	$	1,111,622		5,580		2,759		1,161,292		6,603		3,229

Summary of Loan grades

			Real Estate
	Commercial, Financial, Leasing, etc.		Commercial		Residential Builder and Developer		Other Commercial Construction
	(in thousands)
March 31, 2012
Pass	$	14,981,173		19,901,115		1,051,018		1,728,343
Criticized accrual		802,862		887,390		127,738		248,494
Criticized nonaccrual		154,637		173,443		267,065		101,949
Total	$	15,938,672		20,961,948		1,445,821		2,078,786
December 31, 2011
Pass	$	14,869,636		19,089,252		1,085,970		2,254,609
Criticized accrual		701,202		999,085		140,787		282,399
Criticized nonaccrual		163,598		171,111		281,576		106,325
Total	$	15,734,436		20,259,448		1,508,333		2,643,333

Loans and leases receivable allowance by impairment methodology

At March 31, 2012 and December 31, 2011, the allocation of the allowance for credit losses summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial, Leasing, etc.		Real Estate
			Commercial		Residential		Consumer		Total
					(in thousands)
March 31, 2012
Individually evaluated for impairment	$	47,127		66,344		27,389		16,067	$	156,927
Collectively evaluated for impairment		191,970		288,770		68,261		126,348		675,349
Purchased impaired		176		1,440		1,651		497		3,764
Allocated	$	239,273		356,554		97,301		142,912		836,040
Unallocated										72,966
Total									$	909,006
December 31, 2011
Individually evaluated for impairment	$	48,517		71,784		29,420		15,858	$	165,579
Collectively evaluated for impairment		185,048		291,271		60,742		126,613		663,674
Purchased impaired		457		4,582		1,753		650		7,442
Allocated	$	234,022		367,637		91,915		143,121		836,695
Unallocated										71,595
Total									$	908,290

Loans and leases receivable net of deferred income by impairment methodology

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology as of March 31, 2012 and December 31, 2011 was as follows:

	Commercial, Financial, Leasing, etc.		Real Estate
			Commercial		Residential		Consumer		Total
	(in thousands)
March 31, 2012
Individually evaluated for impairment	$	162,494		547,011		303,813		72,308	$	1,085,626
Collectively evaluated for impairment		15,758,064		23,408,556		8,341,743		11,722,982		59,231,345
Purchased impaired		18,114		530,988		51,038		4,639		604,779
Total	$	15,938,672		24,486,555		8,696,594		11,799,929	$	60,921,750
December 31, 2011
Individually evaluated for impairment	$	171,442		561,615		306,320		71,496	$	1,110,873
Collectively evaluated for impairment		15,539,232		23,281,585		7,560,104		11,950,849		58,331,770
Purchased impaired		23,762		567,914		56,741		4,945		653,362
Total	$	15,734,436		24,411,114		7,923,165		12,027,290	$	60,096,005

Loan modification activities that were considered troubled debt restructurings

The table below summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended March 31, 2012:

	Number		Recorded investment				Financial effects of modification
			Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		9	$	2,812	$	2,954	$	142		$	—
Other		1		972		1,098		126			—
Combination of concession types		1		45		44		(1	)		(33	)
Real estate:
Commercial
Principal deferral		2		2,425		2,405		(20	)		—
Residential builder and developer
Principal deferral		5		6,822		6,034		(788	)		—
Combination of concession types		2		2,350		2,726		376			—
Residential
Principal deferral		15		1,505		1,588		83			—
Combination of concession types		18		2,936		3,007		71			(200	)
Residential Alt-A
Principal deferral		3		397		407		10			—
Combination of concession types		8		1,360		1,394		34			(5	)
Consumer:
Home equity lines and loans
Principal deferral		1		117		117		—			—
Interest rate reduction		1		144		144		—			(6	)
Combination of concession types		2		235		235		—			(24	)
Automobile
Principal deferral		153		1,885		1,885		—			—
Interest rate reduction		4		57		57		—			(4	)
Other		10		19		19		—			—
Combination of concession types		112		1,609		1,609		—			(172	)
Other
Principal deferral		52		647		647		—			—
Interest rate reduction		3		23		23		—			(3	)
Other		9		49		49		—			—
Combination of concession types		34		219		219		—			(36	)
Total		445	$	26,628	$	26,661	$	33		$	(483	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

The table below summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended March 31, 2011:

	Number		Recorded investment				Financial effects of modification
			Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
			(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		13	$	1,349	$	1,334	$	(15	)	$	—
Real estate:
Commercial
Principal deferral		9		6,625		6,597		(28	)		—
Residential builder and developer
Principal deferral		1		3,424		3,424		—			—
Other		4		116,002		108,394		(7,608	)		—
Combination of concession types		1		798		790		(8	)		—
Other commercial construction
Principal deferral		1		2,275		2,269		(6	)		—
Residential
Principal deferral		3		124		138		14			—
Interest rate reduction		8		1,059		1,079		20			(50	)
Combination of concession types		30		7,907		7,999		92			(757	)
Residential Alt-A
Combination of concession types		9		1,602		1,638		36			(210	)
Consumer:
Home equity lines and loans
Combination of concession types		2		70		71		1			(36	)
Automobile
Principal deferral		204		3,493		3,493		—			—
Interest rate reduction		4		44		44		—			(3	)
Other		26		107		107		—			—
Combination of concession types		122		2,861		2,861		—			(436	)
Other											—
Principal deferral		10		74		74		—			—
Other		1		11		11		—			—
Combination of concession types		37		126		126		—			(20	)
Total		485	$	147,951	$	140,449	$	(7,502	)	$	(1,512	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.