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

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Outstanding Principal Balance and Carrying Amount of Loans that is Included in Consolidated Balance Sheet

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

	September 30, 2014		December 31, 2013
	(in thousands)
Outstanding principal balance	$	3,416,175		4,656,811
Carrying amount:
Commercial, financial, leasing, etc.		299,161		580,685
Commercial real estate		1,094,030		1,541,368
Residential real estate		485,365		576,473
Consumer		1,013,238		1,308,926
	$	2,891,794		4,007,452

Summary of Changes in Accretable Yield for Acquired Loans

A summary of changes in the accretable yield for acquired loans for the three months and nine months ended September 30, 2014 and 2013 follows:

	Three months ended September 30
	2014						2013
	Purchased impaired			Other acquired			Purchased impaired			Other acquired
	(in thousands)
Balance at beginning of period	$	26,082			450,970		$	55,149			622,093
Interest income		(4,149	)		(39,019	)		(10,428	)		(60,786	)
Reclassifications from nonaccretable balance, net		129			9,673			172			—
Other (a)		—			1,870			—			6,254
Balance at end of period	$	22,062			423,494		$	44,893			567,561

	Nine months ended September 30
	2014						2013
	Purchased impaired			Other acquired			Purchased impaired			Other acquired
	(in thousands)
Balance at beginning of period	$	37,230			538,633		$	42,252			638,272
Interest income		(15,583	)		(135,105	)		(28,879	)		(190,072	)
Reclassifications from nonaccretable balance, net		415			10,448			31,520			122,519
Other (a)		—			9,518			—			(3,158	)
Balance at end of period	$	22,062			423,494		$	44,893			567,561

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

Summary of Current, Past Due and Nonaccrual Loans

A summary of current, past due and nonaccrual loans as of September 30, 2014 and December 31, 2013 follows:

			30-89		90 Days or more past due and accruing				Purchased
	Current		Days past due		Non- acquired		Acquired (a)		impaired (b)		Nonaccrual		Total
					(in thousands)
September 30, 2014
Commercial, financial, leasing, etc.	$	18,855,986		41,296		3,278		5,422		14,777		191,250	$	19,112,009
Real estate:
Commercial		21,646,276		101,671		36,688		24,196		62,739		173,285		22,044,855
Residential builder and developer		1,211,005		21,432		1,615		13,786		96,917		73,296		1,418,051
Other commercial construction		3,392,260		18,749		3,927		1,516		36,114		27,375		3,479,941
Residential		7,578,177		222,214		263,529		42,286		23,551		183,681		8,313,438
Residential Alt-A		254,188		15,765		—		—		—		80,017		349,970
Consumer:
Home equity lines and loans		5,909,631		36,408		—		28,320		2,564		85,122		6,062,045
Automobile		1,808,300		24,692		—		209		—		17,417		1,850,618
Other		2,869,863		34,863		3,953		16,412		—		16,341		2,941,432
Total	$	63,525,686		517,090		312,990		132,147		236,662		847,784	$	65,572,359

			30-89		90 Days or more past due and accruing				Purchased
	Current		Days past due		Non- acquired		Acquired (a)		impaired (b)		Nonaccrual		Total
					(in thousands)
December 31, 2013
Commercial, financial, leasing, etc.	$	18,489,474		77,538		4,981		6,778		15,706		110,739	$	18,705,216
Real estate:
Commercial		21,236,071		145,749		63,353		35,603		88,034		173,048		21,741,858
Residential builder and developer		1,025,984		8,486		141		7,930		137,544		96,427		1,276,512
Other commercial construction		2,986,598		42,234		—		8,031		57,707		35,268		3,129,838
Residential		7,630,368		295,131		294,649		43,700		29,184		252,805		8,545,837
Residential Alt-A		283,253		18,009		—		—		—		81,122		382,384
Consumer:
Home equity lines and loans		5,972,365		40,537		—		27,754		2,617		78,516		6,121,789
Automobile		1,314,246		29,144		—		366		—		21,144		1,364,900
Other		2,726,522		47,830		5,386		—		—		25,087		2,804,825
Total	$	61,664,881		704,658		368,510		130,162		330,792		874,156	$	64,073,159

(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 were recorded at fair value.

Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the three months ended September 30, 2014 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	292,251			311,254			72,404			165,871			75,886		$	917,666
Provision for credit losses		2,373			8,046			(3,187	)		21,815			(47	)		29,000
Net charge-offs
Charge-offs		(15,921	)		(1,666	)		(4,193	)		(21,312	)		—			(43,092	)
Recoveries		7,849			1,267			2,498			3,445			—			15,059
Net charge-offs		(8,072	)		(399	)		(1,695	)		(17,867	)		—			(28,033	)
Ending balance	$	286,552			318,901			67,522			169,819			75,839		$	918,633

Changes in the allowance for credit losses for the three months ended September 30, 2013 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	268,867			324,264			85,311			174,291			74,332	$	927,065
Provision for credit losses		20,209			12,139			315			14,935			402		48,000
Allowance related to loans securitized and sold		—			—			—			(11,000	)		—		(11,000	)
Net charge-offs
Charge-offs		(30,931	)		(7,701	)		(5,320	)		(20,242	)		—		(64,194	)
Recoveries		5,150			4,751			2,399			4,199			—		16,499
Net charge-offs		(25,781	)		(2,950	)		(2,921	)		(16,043	)		—		(47,695	)
Ending balance	$	263,295			333,453			82,705			162,183			74,734	$	916,370

Changes in the allowance for credit losses for the nine months ended September 30, 2014 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	273,383			324,978			78,656			164,644			75,015	$	916,676
Provision for credit losses		40,527			(4,067	)		(916	)		54,632			824		91,000
Net charge-offs
Charge-offs		(44,872	)		(7,966	)		(17,124	)		(62,407	)		—		(132,369	)
Recoveries		17,514			5,956			6,906			12,950			—		43,326
Net charge-offs		(27,358	)		(2,010	)		(10,218	)		(49,457	)		—		(89,043	)
Ending balance	$	286,552			318,901			67,522			169,819			75,839	$	918,633

Changes in the allowance for credit losses for the nine months ended September 30, 2013 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	246,759			337,101			88,807			179,418			73,775	$	925,860
Provision for credit losses		93,736			914			3,913			43,478			959		143,000
Allowance related to loans securitized and sold		—			—			—			(11,000	)		—		(11,000	)
Net charge-offs
Charge-offs		(86,787	)		(21,493	)		(18,583	)		(62,905	)		—		(189,768	)
Recoveries		9,587			16,931			8,568			13,192			—		48,278
Net charge-offs		(77,200	)		(4,562	)		(10,015	)		(49,713	)		—		(141,490	)
Ending balance	$	263,295			333,453			82,705			162,183			74,734	$	916,370

Impaired Loans and Leases

The following tables provide information with respect to loans and leases that were considered impaired as of September 30, 2014 and December 31, 2013 and for the three months and nine months ended September 30, 2014 and September 30, 2013.

	September 30, 2014						December 31, 2013
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	138,884		168,163		33,805		90,293		112,092		24,614
Real estate:
Commercial		94,124		112,373		16,172		113,570		132,325		19,520
Residential builder and developer		16,306		20,309		1,218		33,311		55,122		4,379
Other commercial construction		12,937		15,302		4,071		86,260		90,515		4,022
Residential		88,879		106,795		4,621		96,508		114,521		7,146
Residential Alt-A		105,489		119,616		9,000		111,911		124,528		14,000
Consumer:
Home equity lines and loans		19,343		20,436		6,030		13,672		14,796		3,312
Automobile		31,843		31,843		8,516		40,441		40,441		11,074
Other		18,743		18,743		5,051		17,660		17,660		4,541
		526,548		613,580		88,484		603,626		702,000		92,608
With no related allowance recorded:
Commercial, financial, leasing, etc.		78,849		82,176		—		28,093		33,095		—
Real estate:
Commercial		88,258		97,806		—		65,271		84,333		—
Residential builder and developer		67,401		103,996		—		72,366		104,768		—
Other commercial construction		14,974		34,212		—		7,369		11,493		—
Residential		18,155		27,999		—		84,144		95,358		—
Residential Alt-A		25,110		45,705		—		28,357		52,211		—
		292,747		391,894		—		285,600		381,258		—
Total:
Commercial, financial, leasing, etc.		217,733		250,339		33,805		118,386		145,187		24,614
Real estate:
Commercial		182,382		210,179		16,172		178,841		216,658		19,520
Residential builder and developer		83,707		124,305		1,218		105,677		159,890		4,379
Other commercial construction		27,911		49,514		4,071		93,629		102,008		4,022
Residential		107,034		134,794		4,621		180,652		209,879		7,146
Residential Alt-A		130,599		165,321		9,000		140,268		176,739		14,000
Consumer:
Home equity lines and loans		19,343		20,436		6,030		13,672		14,796		3,312
Automobile		31,843		31,843		8,516		40,441		40,441		11,074
Other		18,743		18,743		5,051		17,660		17,660		4,541
Total	$	819,295		1,005,474		88,484		889,226		1,083,258		92,608

Interest Income Recognized on Loans

	Three months ended September 30, 2014						Three months ended September 30, 2013
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	228,749		611		611		149,357		516		516
Real estate:
Commercial		189,952		821		821		205,971		716		716
Residential builder and developer		90,493		18		18		130,855		213		188
Other commercial construction		58,500		251		251		95,486		208		208
Residential		104,516		1,328		776		180,995		1,391		865
Residential Alt-A		131,574		1,643		681		147,056		1,763		692
Consumer:
Home equity lines and loans		19,268		219		81		12,810		167		49
Automobile		33,666		528		67		42,957		710		127
Other		18,677		177		44		15,791		161		50
Total	$	875,395		5,596		3,350		981,278		5,845		3,411

	Nine months ended September 30, 2014						Nine months ended September 30, 2013
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	171,227		1,379		1,379		164,877		6,358		6,358
Real estate:
Commercial		194,337		2,616		2,616		200,354		1,428		1,428
Residential builder and developer		94,453		131		131		159,308		871		637
Other commercial construction		74,531		1,694		1,694		97,268		3,322		3,322
Residential		132,606		7,784		6,146		184,719		4,795		3,188
Residential Alt-A		135,374		5,002		1,900		151,992		5,173		1,799
Consumer:
Home equity lines and loans		17,902		540		182		12,633		499		127
Automobile		36,560		1,742		228		45,075		2,226		404
Other		18,229		517		145		15,438		468		153
Total	$	875,219		21,405		14,421		1,031,664		25,140		17,416

Summary of Loan Grades

The following table summarizes the loan grades applied to the various classes of the Company’s commercial and commercial real estate loans.

			Real Estate
	Commercial, Financial, Leasing, etc.		Commercial		Residential Builder and Developer		Other Commercial Construction
	(in thousands)
September 30, 2014
Pass	$	18,283,543		21,236,852		1,293,815		3,285,953
Criticized accrual		637,216		634,718		50,940		166,613
Criticized nonaccrual		191,250		173,285		73,296		27,375
Total	$	19,112,009		22,044,855		1,418,051		3,479,941
December 31, 2013
Pass	$	17,894,592		20,972,257		1,107,144		3,040,106
Criticized accrual		699,885		596,553		72,941		54,464
Criticized nonaccrual		110,739		173,048		96,427		35,268
Total	$	18,705,216		21,741,858		1,276,512		3,129,838

Allocation of Allowance for Credit Losses on Basis of Company's Impairment Methodology

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)
September 30, 2014
Individually evaluated for impairment	$	33,805		21,148		13,602		19,597	$	88,152
Collectively evaluated for impairment		247,951		297,169		52,206		149,430		746,756
Purchased impaired		4,796		584		1,714		792		7,886
Allocated	$	286,552		318,901		67,522		169,819		842,794
Unallocated										75,839
Total									$	918,633
December 31, 2013
Individually evaluated for impairment	$	24,614		27,563		21,127		18,927	$	92,231
Collectively evaluated for impairment		246,096		296,781		55,864		144,210		742,951
Purchased impaired		2,673		634		1,665		1,507		6,479
Allocated	$	273,383		324,978		78,656		164,644		841,661
Unallocated										75,015
Total									$	916,676

Recorded Investment in Loans and Leases on Basis of Company's Impairment Methodology

The recorded investment in loans and leases 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)
September 30, 2014
Individually evaluated for impairment	$	217,733		292,932		237,247		69,929	$	817,841
Collectively evaluated for impairment		18,879,499		26,454,145		8,402,610		10,781,602		64,517,856
Purchased impaired		14,777		195,770		23,551		2,564		236,662
Total	$	19,112,009		26,942,847		8,663,408		10,854,095	$	65,572,359
December 31, 2013
Individually evaluated for impairment	$	118,386		376,339		320,360		71,773	$	886,858
Collectively evaluated for impairment		18,571,124		25,488,584		8,578,677		10,217,124		62,855,509
Purchased impaired		15,706		283,285		29,184		2,617		330,792
Total	$	18,705,216		26,148,208		8,928,221		10,291,514	$	64,073,159

Loan Modification Activities that were Considered Troubled Debt Restructurings

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended September 30, 2014 and 2013:

			Recorded investment				Financial effects of modification
Three months ended September 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		15	$	1,305	$	1,300	$	(5	)	$	—
Real estate:
Commercial
Principal deferral		8		2,081		2,068		(13	)		—
Other		1		650		—		(650	)		—
Combination of concession types		4		483		478		(5	)		(95	)
Residential builder and developer
Principal deferral		1		241		241		—			—
Other commercial construction
Principal deferral		1		145		142		(3	)		—
Residential
Principal deferral		3		98		97		(1	)		—
Combination of concession types		8		1,100		1,136		36			(135	)
Residential Alt-A
Combination of concession types		3		349		369		20			(64	)
Consumer:
Home equity lines and loans
Combination of concession types		5		519		519		—			(67	)
Automobile
Principal deferral		45		1,003		1,003		—			—
Interest rate reduction		3		30		30		—			(2	)
Other		7		96		96		—			—
Combination of concession types		19		348		348		—			(21	)
Other
Principal deferral		6		48		48		—			—
Interest rate reduction		1		2		2		—			—
Combination of concession types		24		511		511		—			(121	)
Total		154	$	9,009	$	8,388	$	(621	)	$	(505	)

(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.

			Recorded investment				Financial effects of modification
Three months ended September 30, 2013	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		14	$	2,407	$	2,266	$	(141	)	$	—
Other		2		1,773		2,067		294			—
Combination of concession types		3		374		374		—			(25	)
Real estate:
Commercial
Principal deferral		10		4,160		4,134		(26	)		—
Other		2		449		475		26			—
Combination of concession types		6		1,868		2,264		396			(156	)
Residential builder and developer
Principal deferral		1		249		241		(8	)		—
Other commercial construction
Principal deferral		1		226		158		(68	)		—
Residential
Principal deferral		6		860		912		52			—
Combination of concession types		14		1,258		1,308		50			(197	)
Residential Alt-A
Principal deferral		5		764		773		9			—
Combination of concession types		4		332		496		164			(252	)
Consumer:
Home equity lines and loans
Principal deferral		2		179		179		—			—
Combination of concession types		9		682		682		—			(79	)
Automobile
Principal deferral		121		1,718		1,718		—			—
Interest rate reduction		2		19		19		—			(2	)
Other		20		42		42		—			—
Combination of concession types		61		551		551		—			(33	)
Other
Principal deferral		9		60		60		—			—
Combination of concession types		18		470		470		—			(86	)
Total		310	$	18,441	$	19,189	$	748		$	(830	)

(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 tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the nine months ended September 30, 2014 and 2013:

			Recorded investment				Financial effects of modification
Nine months ended September 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		66	$	20,673	$	20,499	$	(174	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		5		9,836		9,766		(70	)		(14	)
Real estate:
Commercial
Principal deferral		32		17,452		17,384		(68	)		—
Other		1		650		—		(650	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		6		892		940		48			(208	)
Residential builder and developer
Principal deferral		2		1,639		1,639		—			—
Other commercial construction
Principal deferral		4		6,703		6,611		(92	)		—
Residential
Principal deferral		19		1,842		1,926		84			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		30		4,211		4,287		76			(483	)
Residential Alt-A
Principal deferral		5		828		900		72			—
Combination of concession types		19		3,101		3,134		33			(345	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		41		4,147		4,147		—			(443	)
Automobile
Principal deferral		168		2,599		2,599		—			—
Interest rate reduction		6		90		90		—			(5	)
Other		26		204		204		—			—
Combination of concession types		65		939		939		—			(83	)
Other
Principal deferral		21		141		141		—			—
Interest rate reduction		4		293		293		—			(63	)
Other		1		45		45		—			—
Combination of concession types		57		1,883		1,883		—			(585	)
Total		590	$	98,923	$	98,185	$	(738	)	$	(2,385	)

(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.

			Recorded investment				Financial effects of modification
Nine months ended September 30, 2013	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		53	$	9,283	$	9,070	$	(213	)	$	—
Other		4		50,433		50,924		491			—
Combination of concession types		6		2,206		1,696		(510	)		(25	)
Real estate:
Commercial
Principal deferral		23		38,187		38,027		(160	)		—
Other		2		449		475		26			—
Combination of concession types		8		2,450		2,845		395			(212	)
Residential builder and developer
Principal deferral		16		19,102		18,303		(799	)		—
Other		1		4,039		3,888		(151	)		—
Combination of concession types		3		15,580		15,514		(66	)		(535	)
Other commercial construction
Principal deferral		3		590		521		(69	)		—
Residential
Principal deferral		21		2,642		2,877		235			—
Other		1		195		195		—			—
Combination of concession types		52		72,917		69,734		(3,183	)		(754	)
Residential Alt-A
Principal deferral		6		863		875		12			—
Combination of concession types		17		2,426		2,715		289			(640	)
Consumer:
Home equity lines and loans
Principal deferral		6		359		361		2			—
Interest rate reduction		1		99		99		—			(8	)
Other		1		106		106		—			—
Combination of concession types		19		1,299		1,299		—			(176	)
Automobile
Principal deferral		359		4,933		4,933		—			—
Interest rate reduction		11		159		159		—			(17	)
Other		65		274		274		—			—
Combination of concession types		184		2,148		2,148		—			(162	)
Other
Principal deferral		29		290		290		—			—
Interest rate reduction		1		12		12		—			(2	)
Other		1		12		12		—			—
Combination of concession types		90		2,394		2,394		—			(587	)
Total		983	$	233,447	$	229,746	$	(3,701	)	$	(3,118	)

(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.