Loans (Tables)

6 Months Ended

Jun. 30, 2018

The detail of the loan portfolio as of June 30, 2018 and December 31, 2017 was as follows:



	June 30, 2018						December 31, 2017
	Non-PCI Loans		PCI Loans*		Total		Non-PCI Loans		PCI Loans*		Total
	(in thousands)
Loans:
Commercial and industrial	$	3,021,524	$	808,001	$	3,829,525	$	2,549,065	$	192,360	$	2,741,425
Commercial real estate:
Commercial real estate	9,109,645		2,804,185		11,913,830		8,561,851		934,926		9,496,777
Construction	996,702		380,030		1,376,732		809,964		41,141		851,105
Total commercial real estate loans	10,106,347		3,184,215		13,290,562		9,371,815		976,067		10,347,882
Residential mortgage	3,051,429		477,253		3,528,682		2,717,744		141,291		2,859,035
Consumer:
Home equity	358,043		162,806		520,849		373,631		72,649		446,280
Automobile	1,281,303		432		1,281,735		1,208,804		98		1,208,902
Other consumer	768,369		14,994		783,363		723,306		4,750		728,056
Total consumer loans	2,407,715		178,232		2,585,947		2,305,741		77,497		2,383,238
Total loans	$	18,587,015	$	4,647,701	$	23,234,716	$	16,944,365	$	1,387,215	$	18,331,580


*	PCI loans include covered loans (mostly consisting of residential mortgage loans) totaling $31.1 million and $38.7 million at June 30, 2018 and December 31, 2017, respectively.

Estimates of the Contractually Required Payments, the Cash Flows Expected to be Collected, and the Estimated Fair Value of Covered Loans in the Acquisition

The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the PCI loans acquired in the USAB acquisition as of January 1, 2018 (See Note 2 for more details):



	(in thousands)

Contractually required principal and interest	$	4,312,988
Contractual cash flows not expected to be collected (non-accretable difference)	(94,098		)
Expected cash flows to be collected	4,218,890
Interest component of expected cash flows (accretable yield)	(474,208		)
Fair value of acquired loans	$	3,744,682

Changes in Accretable Yield for PCI Loans

The following table presents changes in the accretable yield for PCI loans during the three and six months ended June 30, 2018 and 2017:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(in thousands)
Balance, beginning of period	$	691,086		$	269,831		$	282,009		$	294,514
Acquisition	—			—			474,208			—
Accretion	(60,536		)	(23,553		)	(125,667		)	(48,236		)
Balance, end of period	$	630,550		$	246,278		$	630,550		$	246,278

Past Due, Non-Accrual and Current Loans by Loan Portfolio Class

The following table presents past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis) by loan portfolio class at June 30, 2018 and December 31, 2017:



	Past Due and Non-Accrual Loans
	30-59 Days Past Due Loans		60-89 Days Past Due Loans		Accruing Loans 90 Days or More Past Due		Non-Accrual Loans		Total Past Due Loans		Current Non-PCI Loans		Total Non-PCI Loans
	(in thousands)
June 30, 2018
Commercial and industrial	$	6,780	$	1,533	$	560	$	53,596	$	62,469	$	2,959,055	$	3,021,524
Commercial real estate:
Commercial real estate	4,323		—		27		7,452		11,802		9,097,843		9,109,645
Construction	175		—		—		1,100		1,275		995,427		996,702
Total commercial real estate loans	4,498		—		27		8,552		13,077		10,093,270		10,106,347
Residential mortgage	7,961		1,978		2,324		19,303		31,566		3,019,863		3,051,429
Consumer loans:
Home equity	686		278		—		2,804		3,768		354,275		358,043
Automobile	5,482		545		164		80		6,271		1,275,032		1,281,303
Other consumer	405		37		34		119		595		767,774		768,369
Total consumer loans	6,573		860		198		3,003		10,634		2,397,081		2,407,715
Total	$	25,812	$	4,371	$	3,109	$	84,454	$	117,746	$	18,469,269	$	18,587,015
December 31, 2017
Commercial and industrial	$	3,650	$	544	$	—	$	20,890	$	25,084	$	2,523,981	$	2,549,065
Commercial real estate:
Commercial real estate	11,223		—		27		11,328		22,578		8,539,273		8,561,851
Construction	12,949		18,845		—		732		32,526		777,438		809,964
Total commercial real estate loans	24,172		18,845		27		12,060		55,104		9,316,711		9,371,815
Residential mortgage	12,669		7,903		2,779		12,405		35,756		2,681,988		2,717,744
Consumer loans:
Home equity	1,009		94		—		1,777		2,880		370,751		373,631
Automobile	5,707		987		271		73		7,038		1,201,766		1,208,804
Other consumer	1,693		118		13		20		1,844		721,462		723,306
Total consumer loans	8,409		1,199		284		1,870		11,762		2,293,979		2,305,741
Total	$	48,900	$	28,491	$	3,090	$	47,225	$	127,706	$	16,816,659	$	16,944,365

Impaired Loans by Loan Portfolio Class

The following table presents the information about impaired loans by loan portfolio class at June 30, 2018 and December 31, 2017:



	Recorded Investment With No Related Allowance		Recorded Investment With Related Allowance		Total Recorded Investment		Unpaid Contractual Principal Balance		Related Allowance
	(in thousands)
June 30, 2018
Commercial and industrial	$	10,241	$	76,929	$	87,170	$	92,073	$	24,817
Commercial real estate:
Commercial real estate	22,751		29,705		52,456		56,365		2,972
Construction	1,800		463		2,263		2,263		15
Total commercial real estate loans	24,551		30,168		54,719		58,628		2,987
Residential mortgage	6,226		6,623		12,849		13,838		632
Consumer loans:
Home equity	838		615		1,453		2,115		72
Total consumer loans	838		615		1,453		2,115		72
Total	$	41,856	$	114,335	$	156,191	$	166,654	$	28,508
December 31, 2017
Commercial and industrial	$	9,946	$	75,553	$	85,499	$	90,269	$	11,044
Commercial real estate:
Commercial real estate	28,709		29,771		58,480		62,286		2,718
Construction	1,904		467		2,371		2,394		17
Total commercial real estate loans	30,613		30,238		60,851		64,680		2,735
Residential mortgage	5,654		8,402		14,056		15,332		718
Consumer loans:
Home equity	3,096		664		3,760		4,917		64
Total consumer loans	3,096		664		3,760		4,917		64
Total	$	49,309	$	114,857	$	164,166	$	175,198	$	14,561

Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following tables present by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2018 and 2017:



	Three Months Ended June 30,
	2018				2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(in thousands)
Commercial and industrial	$	87,674	$	212	$	46,283	$	288
Commercial real estate:
Commercial real estate	52,729		563		60,119		483
Construction	2,244		16		2,759		20
Total commercial real estate loans	54,973		579		62,878		503
Residential mortgage	12,914		185		17,555		184
Consumer loans:
Home equity	1,794		33		4,799		34
Total consumer loans	1,794		33		4,799		34
Total	$	157,355	$	1,009	$	131,515	$	1,009



	Six Months Ended June 30,
	2018				2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(in thousands)
Commercial and industrial	$	88,865	$	926	$	38,371	$	596
Commercial real estate:
Commercial real estate	54,104		1,179		57,722		808
Construction	2,230		39		2,728		39
Total commercial real estate loans	56,334		1,218		60,450		847
Residential mortgage	13,502		350		18,974		392
Consumer loans:
Home equity	1,910		66		4,847		74
Total consumer loans	1,910		66		4,847		74
Total	$	160,611	$	2,560	$	122,642	$	1,909

Pre-Modification and Post-Modification Outstanding Recorded Investments and Non-PCI Loans that Subsequently Defaulted

The following tables present loans by loan portfolio class modified as TDRs during the three and six months ended June 30, 2018 and 2017. The pre-modification and post-modification outstanding recorded investments disclosed in the tables below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at June 30, 2018 and 2017, respectively.



	Three Months Ended June 30,
	2018					2017
Troubled Debt Restructurings	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
	($ in thousands)
Commercial and industrial	11	$	8,822	$	8,575	47	$	40,077	$	38,367
Commercial real estate:
Commercial real estate	5	3,975		3,971		5	23,604		23,604
Construction	1	532		491		—	—		—
Total commercial real estate	6	4,507		4,462		5	23,604		23,604
Residential mortgage	2	393		389		2	549		545
Total	19	$	13,722	$	13,426	54	$	64,230	$	62,516



	Six Months Ended June 30,
	2018					2017
Troubled Debt Restructurings	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
	($ in thousands)
Commercial and industrial	15	$	10,554	$	10,170	53	$	46,315	$	43,660
Commercial real estate:
Commercial real estate	6	4,170		4,164		6	23,782		23,777
Construction	2	564		503		1	560		480
Total commercial real estate	8	4,734		4,667		7	24,342		24,257
Residential mortgage	5	980		963		5	1,170		1,167
Consumer	1	88		85		—	—		—
Total	29	$	16,356	$	15,885	65	$	71,827	$	69,084

The non-PCI loans modified as TDRs within the previous 12 months and for which there was a payment default (90 or more days past due) for the three and six months ended June 30, 2018 and 2017 were as follows:



	Three Months Ended June 30,
	2018			2017
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	4	$	3,212	6	$	5,358
Total	4	$	3,212	6	$	5,358



	Six Months Ended June 30,
	2018			2017
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	4	$	3,212	7	$	5,433
Commercial real estate	—	—		1	736
Residential mortgage	—	—		1	153
Total	4	$	3,212	9	$	6,322

Risk Category of Loans

The following table presents the credit exposure by internally assigned risk rating by class of loans (excluding PCI loans) at June 30, 2018 and December 31, 2017 based on the most recent analysis performed:



Credit exposure - by internally assigned risk rating	Pass		Special Mention		Substandard		Doubtful		Total Non-PCI Loans
	(in thousands)
June 30, 2018
Commercial and industrial	$	2,853,692	$	62,369	$	56,095	$	49,368	$	3,021,524
Commercial real estate	9,019,309		35,200		55,136		—		9,109,645
Construction	994,407		523		1,772		—		996,702
Total	$	12,867,408	$	98,092	$	113,003	$	49,368	$	13,127,871
December 31, 2017
Commercial and industrial	$	2,375,689	$	62,071	$	96,555	$	14,750	$	2,549,065
Commercial real estate	8,447,865		48,009		65,977		—		8,561,851
Construction	808,091		360		1,513		—		809,964
Total	$	11,631,645	$	110,440	$	164,045	$	14,750	$	11,920,880

Recorded Investment in Loan Classes Based on Payment Activity

The following table presents the recorded investment in PCI loans by class based on individual loan payment activity as of June 30, 2018 and December 31, 2017:



Credit exposure - by payment activity	Performing Loans		Non-Performing Loans		Total PCI Loans
	(in thousands)
June 30, 2018
Commercial and industrial	$	776,200	$	31,801	$	808,001
Commercial real estate	2,785,190		18,995		2,804,185
Construction	378,495		1,535		380,030
Residential mortgage	470,447		6,806		477,253
Consumer	174,411		3,821		178,232
Total	$	4,584,743	$	62,958	$	4,647,701
December 31, 2017
Commercial and industrial	$	172,105	$	20,255	$	192,360
Commercial real estate	924,574		10,352		934,926
Construction	39,802		1,339		41,141
Residential mortgage	135,745		5,546		141,291
Consumer	76,901		596		77,497
Total	$	1,349,127	$	38,088	$	1,387,215

The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2018 and December 31, 2017:



Credit exposure - by payment activity	Performing Loans		Non-Performing Loans		Total Non-PCI Loans
	(in thousands)
June 30, 2018
Residential mortgage	$	3,032,126	$	19,303	$	3,051,429
Home equity	355,239		2,804		358,043
Automobile	1,281,223		80		1,281,303
Other consumer	768,250		119		768,369
Total	$	5,436,838	$	22,306	$	5,459,144
December 31, 2017
Residential mortgage	$	2,705,339	$	12,405	$	2,717,744
Home equity	371,854		1,777		373,631
Automobile	1,208,731		73		1,208,804
Other consumer	723,286		20		723,306
Total	$	5,009,210	$	14,275	$	5,023,485