LOANS AND LEASES

The Company’s loans and leases are disclosed in portfolio segments and classes. The Company’s loan and lease portfolio segments are commercial and retail. The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, education, credit cards and other retail. The Company’s SBO portfolio consists of purchased home equity loans and lines that were originally serviced by others, which the Company services a portion of internally. A summary of the loans and leases portfolio is presented below:



(in millions)	September 30, 2018		December 31, 2017
Commercial		$39,770		$37,562
Commercial real estate	12,630		11,308
Leases	3,005		3,161
Total commercial loans and leases	55,405		52,031
Residential mortgages	18,493		17,045
Home equity loans	1,131		1,392
Home equity lines of credit	12,863		13,483
Home equity loans serviced by others	429		542
Home equity lines of credit serviced by others	114		149
Automobile	12,255		13,204
Education	8,712		8,134
Credit cards	1,911		1,848
Other retail	3,407		2,789
Total retail loans	59,315		58,586
Total loans and leases ^{(1) (2)}		$114,720		$110,617

⁽¹⁾ Excluded from the table above are loans held for sale totaling $1.3 billion and $718 million as of September 30, 2018 and December 31, 2017, respectively.

⁽²⁾Mortgage loans serviced for others by the Company’s subsidiaries are not included above, and amounted to $67.5 billion and $20.3 billion at September 30, 2018 and December 31, 2017, respectively.

Loans held for sale at fair value as of September 30, 2018 totaled $1.3 billion and consisted of residential mortgages originated for sale of $1.1 billion and loans in the commercial trading portfolio of $163 million. Loans held for sale at fair value as of December 31, 2017 totaled $497 million and consisted of residential mortgages originated for sale of $326 million and loans in the commercial trading portfolio of $171 million. Other loans held for sale totaled $27 million and $221 million as of September 30, 2018 and December 31, 2017, respectively, and consisted of commercial loans associated with the Company’s syndication business.

Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages and home equity loans, totaled $25.3 billion and $24.9 billion at September 30, 2018 and December 31, 2017, respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, was primarily comprised of auto and commercial loans, and totaled $18.7 billion and $18.1 billion at September 30, 2018 and December 31, 2017, respectively.

During the three months ended September 30, 2018 and 2017, the Company purchased $98 million and $63 million of education loans, respectively. During the nine months ended September 30, 2018, the Company purchased $321 million of education loans. During the nine months ended September 30, 2017, the Company purchased $795 million of education loans and $153 million of automobile loans.

The Company had no loan portfolio sales during the three months ended September 30, 2018 and 2017. During the nine months ended September 30, 2018, the Company sold $553 million of commercial loans. During the nine months ended September 30, 2017, the Company sold $596 million of commercial loans and $206 million of residential mortgage loans.