Loans (Tables)

9 Months Ended

Sep. 30, 2018

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



	September 30, 2018						December 31, 2017
	Non-PCI Loans		PCI Loans*		Total		Non-PCI Loans		PCI Loans*		Total
	(in thousands)
Loans:
Commercial and industrial	$	3,243,622	$	771,658	$	4,015,280	$	2,549,065	$	192,360	$	2,741,425
Commercial real estate:
Commercial real estate	9,607,279		2,643,952		12,251,231		8,561,851		934,926		9,496,777
Construction	1,022,332		393,927		1,416,259		809,964		41,141		851,105
Total commercial real estate loans	10,629,611		3,037,879		13,667,490		9,371,815		976,067		10,347,882
Residential mortgage	3,331,985		450,987		3,782,972		2,717,744		141,291		2,859,035
Consumer:
Home equity	366,941		154,856		521,797		373,631		72,649		446,280
Automobile	1,288,500		402		1,288,902		1,208,804		98		1,208,902
Other consumer	820,596		14,253		834,849		723,306		4,750		728,056
Total consumer loans	2,476,037		169,511		2,645,548		2,305,741		77,497		2,383,238
Total loans	$	19,681,255	$	4,430,035	$	24,111,290	$	16,944,365	$	1,387,215	$	18,331,580


*	PCI loans include covered loans (mostly consisting of residential mortgage loans) totaling $29.1 million and $38.7 million at September 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)	(103,618		)
Expected cash flows to be collected	4,209,370
Interest component of expected cash flows (accretable yield)	(474,208		)
Fair value of acquired loans	$	3,735,162

Changes in Accretable Yield for PCI Loans

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in thousands)
Balance, beginning of period	$	630,550		$	246,278		$	282,009		$	294,514
Acquisition	—			—			474,208			—
Accretion	(54,367		)	(20,626		)	(180,034		)	(68,862		)
Net increase in expected cash flows	23,983			—			23,983			—
Balance, end of period	$	600,166		$	225,652		$	600,166		$	225,652

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 September 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)
September 30, 2018
Commercial and industrial	$	9,462	$	1,431	$	1,618	$	52,929	$	65,440	$	3,178,182	$	3,243,622
Commercial real estate:
Commercial real estate	3,387		2,502		27		7,103		13,019		9,594,260		9,607,279
Construction	15,576		36		—		—		15,612		1,006,720		1,022,332
Total commercial real estate loans	18,963		2,538		27		7,103		28,631		10,600,980		10,629,611
Residential mortgage	10,058		3,270		1,877		16,083		31,288		3,300,697		3,331,985
Consumer loans:
Home equity	506		265		—		2,060		2,831		364,110		366,941
Automobile	5,950		619		261		72		6,902		1,281,598		1,288,500
Other consumer	987		365		21		116		1,489		819,107		820,596
Total consumer loans	7,443		1,249		282		2,248		11,222		2,464,815		2,476,037
Total	$	45,926	$	8,488	$	3,804	$	78,363	$	136,581	$	19,544,674	$	19,681,255
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 information about impaired loans by loan portfolio class at September 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)
September 30, 2018
Commercial and industrial	$	5,294	$	81,319	$	86,613	$	91,998	$	27,662
Commercial real estate:
Commercial real estate	22,279		28,638		50,917		54,904		2,768
Construction	421		460		881		881		14
Total commercial real estate loans	22,700		29,098		51,798		55,785		2,782
Residential mortgage	6,362		6,420		12,782		13,801		620
Consumer loans:
Home equity	186		620		806		901		79
Total consumer loans	186		620		806		901		79
Total	$	34,542	$	117,457	$	151,999	$	162,485	$	31,143
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 nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,
	2018				2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(in thousands)
Commercial and industrial	$	87,414	$	422	$	70,135	$	300
Commercial real estate:
Commercial real estate	50,809		556		57,712		482
Construction	987		15		3,049		21
Total commercial real estate loans	51,796		571		60,761		503
Residential mortgage	14,112		152		15,630		183
Consumer loans:
Home equity	2,454		17		4,766		49
Total consumer loans	2,454		17		4,766		49
Total	$	155,776	$	1,162	$	151,292	$	1,035



	Nine Months Ended September 30,
	2018				2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(in thousands)
Commercial and industrial	$	88,376	$	1,348	$	49,037	$	896
Commercial real estate:
Commercial real estate	52,993		1,735		57,718		1,290
Construction	1,811		54		2,836		60
Total commercial real estate loans	54,804		1,789		60,554		1,350
Residential mortgage	13,707		502		17,851		575
Consumer loans:
Home equity	2,093		83		4,820		123
Total consumer loans	2,093		83		4,820		123
Total	$	158,980	$	3,722	$	132,262	$	2,944

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 nine months ended September 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 September 30, 2018 and 2017, respectively.



	Three Months Ended September 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	6	$	3,970	$	3,751	10	$	12,522	$	11,655
Commercial real estate:
Commercial real estate	1	233		231		4	5,931		5,929
Construction	—	—		—		2	628		625
Total commercial real estate	1	233		231		6	6,559		6,554
Residential mortgage	—	—		—		2	561		557
Total	7	$	4,203	$	3,982	18	$	19,642	$	18,766



	Nine Months Ended September 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	22	$	14,719	$	13,904	61	$	57,338	$	52,694
Commercial real estate:
Commercial real estate	6	4,207		4,504		7	23,806		23,217
Construction	2	565		285		3	1,188		994
Total commercial real estate	8	4,772		4,789		10	24,994		24,211
Residential mortgage	5	980		952		6	1,514		1,495
Consumer	1	88		83		—	—		—
Total	36	$	20,559	$	19,728	77	$	83,846	$	78,400

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 nine months ended September 30, 2018 and 2017 were as follows:



	Three Months Ended September 30,
	2018			2017
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	4	$	3,645	—	$	—
Residential mortgage	5	1,015		4	1,093
Total	9	$	4,660	4	$	1,093



	Nine Months Ended September 30,
	2018			2017
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	8	$	6,770	7	$	6,430
Commercial real estate	—	—		1	732
Residential mortgage	5	1,015		—	—
Total	13	$	7,785	8	$	7,162

Risk Category of Loans

The following table presents the credit exposure by internally assigned risk rating by class of loans (excluding PCI loans) at September 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)
September 30, 2018
Commercial and industrial	$	3,059,312	$	52,555	$	82,212	$	49,543	$	3,243,622
Commercial real estate	9,518,179		29,334		59,766		—		9,607,279
Construction	1,021,179		545		608		—		1,022,332
Total	$	13,598,670	$	82,434	$	142,586	$	49,543	$	13,873,233
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 those loan classes based on payment activity as of September 30, 2018 and December 31, 2017:



Credit exposure - by payment activity	Performing Loans		Non-Performing Loans		Total Non-PCI Loans
	(in thousands)
September 30, 2018
Residential mortgage	$	3,315,902	$	16,083	$	3,331,985
Home equity	364,881		2,060		366,941
Automobile	1,288,428		72		1,288,500
Other consumer	820,480		116		820,596
Total	$	5,789,691	$	18,331	$	5,808,022
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

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



Credit exposure - by payment activity	Performing Loans		Non-Performing Loans		Total PCI Loans
	(in thousands)
September 30, 2018
Commercial and industrial	$	729,872	$	41,786	$	771,658
Commercial real estate	2,622,330		21,622		2,643,952
Construction	392,873		1,054		393,927
Residential mortgage	443,776		7,211		450,987
Consumer	165,762		3,749		169,511
Total	$	4,354,613	$	75,422	$	4,430,035
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