LOANS AND LEASES

3 Months Ended

Mar. 31, 2021

NOTE 3 - LOANS AND LEASES

Loans held for investment are reported at the amount of their outstanding principal, net of charge-offs, unearned income, deferred loan origination fees and costs, and unamortized premiums or discounts on purchased loans.

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 and industrial, commercial real estate, leases, residential mortgages, home equity, automobile, education and other retail.

The following table presents loans and leases, excluding LHFS.


(in millions)	March 31, 2021	December 31, 2020
Commercial and industrial (1)	$44,058	$44,173
Commercial real estate	14,553	14,652
Leases	1,802	1,968
Total commercial	60,413	60,793
Residential mortgages	19,202	19,539
Home equity	11,854	12,149
Automobile	12,344	12,153
Education	12,691	12,308
Other retail	5,691	6,148
Total retail loans	61,782	62,297
Total loans and leases	$122,195	$123,090

(1) Includes $5.1 billion and $4.2 billion of PPP loans fully guaranteed by the SBA as of March 31, 2021 and December 31, 2020, respectively.

Accrued interest receivable on loans and leases held for investment totaled $444 million and $449 million as of March 31, 2021 and December 31, 2020, respectively, and is included in other assets in the Consolidated Balance Sheets.

During the three months ended March 31, 2021 and 2020, the Company purchased $301 million and $218 million of education loans, respectively, and $177 million and $272 million of other retail loans, respectively.

During the three months ended March 31, 2021 and 2020, the Company sold $326 million and $191 million of commercial loans, respectively. During the three months ended March 31, 2020, the company sold $1.5 billion of residential mortgage loans as compared to none in the same period in 2021.

Loans pledged as collateral for FHLB borrowed funds, primarily residential mortgages and home equity products, totaled $25.3 billion and $25.5 billion at March 31, 2021 and December 31, 2020, respectively. Loans pledged as collateral to support the contingent ability to borrow at the FRB discount window, if necessary, were primarily comprised of education, auto, commercial and industrial, and commercial real estate loans, and totaled $40.7 billion and $40.0 billion at March 31, 2021 and December 31, 2020, respectively.

Interest income on direct financing and sales-type leases was $13 million and $18 million for the three months ended March 31, 2021 and 2020, respectively, and is reported within interest and fees on loans and leases in the Consolidated Statements of Operations.

The following table presents the composition of LHFS.


	March 31, 2021			December 31, 2020
(in millions)	Residential Mortgages(1)	Commercial(2)	Total		Residential Mortgages(1)	Commercial(2)	Total
Loans held for sale at fair value	$4,208	$96	$4,304		$3,416	$148	$3,564
Other loans held for sale	—	75	75		—	439	439

(1) Residential mortgage LHFS are originated for sale.

(2) Commercial LHFS at fair value consist of loans managed by the Company’s commercial secondary loan desk. Other commercial LHFS generally consist of loans associated with the Company’s syndication business.