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Loans and Leases | 6 Months Ended
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Jun. 30, 2022
Receivables [Abstract] |
Loans and Leases | LOANS AND LEASES The following tables as of June 30, 2022 include loan and lease balances acquired in the CIT Merger, which were recorded at fair value on the Merger Date. Refer to Note 2 — Business Combinations for further information. Refer to Note 1 — Accounting Policies and Basis of Presentation for updates to our accounting policies related to loans. Unless otherwise noted, loans held for sale are not included in the following tables. Leases in the following tables include finance leases, but exclude operating lease equipment. Loans by Class
dollars in millions | June 30, 2022 |  | December 31, 2021
Commercial |  |  |
Commercial construction | $ | 2,783 |  |  | $ | 1,238 |
Owner occupied commercial mortgage | 13,795 |  |  | 12,099 |
Non-owner occupied commercial mortgage | 9,167 |  |  | 3,041 |
Commercial and industrial | 23,554 |  |  | 5,937 |
Leases | 2,178 |  |  | 271 |
Total commercial | 51,477 |  |  | 22,586 |
Consumer |  |  |
Residential mortgage | 12,441 |  |  | 6,088 |
Revolving mortgage | 1,893 |  |  | 1,818 |
Consumer auto | 1,338 |  |  | 1,332 |
Consumer other | 586 |  |  | 548 |
Total consumer | 16,258 |  |  | 9,786 |
Total loans and leases | $ | 67,735 |  |  | $ | 32,372 |
At June 30, 2022 and December 31, 2021, accrued interest receivable on loans included in other assets was $142 million and $87 million, respectively, and was excluded from the estimate of credit losses. The following table presents selected components of the amortized cost of loans. Components of Amortized Cost
dollars in millions | June 30, 2022 |  | December 31, 2021
Deferred fees, including unearned fees and unamortized costs on non-PCD loans | $ | 48 |  | $ | 32
Net unamortized discount on purchased loans |  |  |
Non-PCD | $ | 77 |  | $ | 11
PCD | 61 |  | 29 |
Total net unamortized discount | $ | 138 |  | $ | 40
The aging of the outstanding loans and leases, by class, at June 30, 2022 and December 31, 2021 is provided in the tables below. Loans and leases less than 30 days past due are considered current, as various grace periods allow borrowers to make payments within a stated period after the due date and still remain in compliance with the respective agreement. Loans and Leases - Delinquency Status
| June 30, 2022
dollars in millions | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater |  | Total Past Due |  | Current |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |
Commercial construction | $ | 1 |  |  | $ | — |  |  | $ | 19 |  |  | $ | 20 |  |  | $ | 2,763 |  |  | $ | 2,783 |
Owner occupied commercial mortgage | 24 |  |  | 3 |  |  | 27 |  |  | 54 |  |  | 13,741 |  |  | 13,795 |
Non-owner occupied commercial mortgage | 7 |  |  | 9 |  |  | 18 |  |  | 34 |  |  | 9,133 |  |  | 9,167 |
Commercial and industrial | 73 |  |  | 26 |  |  | 46 |  |  | 145 |  |  | 23,409 |  |  | 23,554 |
Leases | 37 |  |  | 21 |  |  | 14 |  |  | 72 |  |  | 2,106 |  |  | 2,178 |
Total commercial | 142 |  |  | 59 |  |  | 124 |  |  | 325 |  |  | 51,152 |  |  | 51,477 |
Consumer |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 67 |  |  | 11 |  |  | 87 |  |  | 165 |  |  | 12,276 |  |  | 12,441 |
Revolving mortgage | 8 |  |  | 3 |  |  | 8 |  |  | 19 |  |  | 1,874 |  |  | 1,893 |
Consumer auto | 7 |  |  | 1 |  |  | 1 |  |  | 9 |  |  | 1,329 |  |  | 1,338 |
Consumer other | 3 |  |  | 1 |  |  | 1 |  |  | 5 |  |  | 581 |  |  | 586 |
Total consumer | 85 |  |  | 16 |  |  | 97 |  |  | 198 |  |  | 16,060 |  |  | 16,258 |
Total loans and leases | $ | 227 |  |  | $ | 75 |  |  | $ | 221 |  |  | $ | 523 |  |  | $ | 67,212 |  |  | $ | 67,735 |
| December 31, 2021
dollars in millions | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or Greater |  | Total Past Due |  | Current |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |
Commercial construction | $ | 1 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 1,235 |  |  | $ | 1,238 |
Owner occupied commercial mortgage | 21 |  |  | 1 |  |  | 9 |  |  | 31 |  |  | 12,068 |  |  | 12,099 |
Non-owner occupied commercial mortgage | 3 |  |  | — |  |  | 2 |  |  | 5 |  |  | 3,036 |  |  | 3,041 |
Commercial and industrial | 8 |  |  | 3 |  |  | 5 |  |  | 16 |  |  | 5,921 |  |  | 5,937 |
Leases | — |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 269 |  |  | 271 |
Total commercial | 33 |  |  | 5 |  |  | 19 |  |  | 57 |  |  | 22,529 |  |  | 22,586 |
Consumer |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 24 |  |  | 6 |  |  | 23 |  |  | 53 |  |  | 6,035 |  |  | 6,088 |
Revolving mortgage | 6 |  |  | 2 |  |  | 6 |  |  | 14 |  |  | 1,804 |  |  | 1,818 |
Consumer auto | 6 |  |  | 1 |  |  | 1 |  |  | 8 |  |  | 1,324 |  |  | 1,332 |
Consumer other | 2 |  |  | 2 |  |  | 1 |  |  | 5 |  |  | 543 |  |  | 548 |
Total consumer | 38 |  |  | 11 |  |  | 31 |  |  | 80 |  |  | 9,706 |  |  | 9,786 |
Total loans and leases | $ | 71 |  |  | $ | 16 |  |  | $ | 50 |  |  | $ | 137 |  |  | $ | 32,235 |  |  | $ | 32,372 |
The amortized cost, by class, of loans and leases on non-accrual status, and loans and leases greater than 90 days past due and still accruing at June 30, 2022 and December 31, 2021 are presented below. Loans on Non-Accrual Status (1) (2)
| June 30, 2022 |  | December 31, 2021
dollars in millions | Non-Accrual Loans |  | Loans > 90 Days and Accruing |  | Non-Accrual Loans |  | Loans > 90 Days and Accruing
Commercial |  |  |  |  |  |  |
Commercial construction | $ | 21 |  |  | $ | 19 |  |  | $ | 4 |  |  | $ | — |
Owner occupied commercial mortgage | 42 |  |  | 6 |  |  | 18 |  |  | 5 |
Non-owner occupied commercial mortgage | 120 |  |  | — |  |  | 5 |  |  | — |
Commercial and industrial | 202 |  |  | 24 |  |  | 15 |  |  | 1 |
Leases | 28 |  |  | 6 |  |  | 3 |  |  | — |
Total commercial | 413 |  |  | 55 |  |  | 45 |  |  | 6 |
Consumer |  |  |  |  |  |  |
Residential mortgage | 77 |  |  | 44 |  |  | 54 |  |  | — |
Revolving mortgage | 19 |  |  | — |  |  | 18 |  |  | — |
Consumer auto | 3 |  |  | — |  |  | 3 |  |  | — |
Consumer other | 1 |  |  | 1 |  |  | 1 |  |  | 1 |
Total consumer | 100 |  |  | 45 |  |  | 76 |  |  | 1 |
Total loans and leases | $ | 513 |  |  | $ | 100 |  |  | $ | 121 |  |  | $ | 7 |
(1)Accrued interest that was reversed when the loan went to non-accrual status was $2 million for the six months ended June 30, 2022. (2)Non-accrual loans for which there was no related ACL totaled $51 million at June 30, 2022 and $15 million at December 31, 2021. Other real estate owned (“OREO”) and repossessed assets were $45 million as of June 30, 2022 and $40 million as of December 31, 2021. Credit quality indicators Loans and leases are monitored for credit quality on a recurring basis. Commercial loans and leases and consumer loans have different credit quality indicators as a result of the unique characteristics of the loan classes being evaluated. The credit quality indicators for Non-PCD commercial loans and leases are developed through a review of individual borrowers on an ongoing basis. Commercial loans are evaluated periodically with more frequent evaluations done on criticized loans. The indicators as of the date presented are based on the most recent assessment performed and are defined below: Pass – A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification. Special mention – A special mention asset has potential weaknesses which deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification. Substandard – A substandard asset is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected. Doubtful – An asset classified as doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions and values. Loss – Assets classified as loss are considered uncollectible and of such little value it is inappropriate to be carried as an asset. This classification is not necessarily equivalent to any potential for recovery or salvage value, but rather it is not appropriate to defer a full charge-off even though partial recovery may be affected in the future. Ungraded – Ungraded loans represent loans not included in the individual credit grading process due to their relatively small balances or borrower type. The majority of ungraded loans at June 30, 2022 and December 31, 2021, relate to business credit cards. Business credit card loans are subject to automatic charge-off when they become 120 days past due in the same manner as unsecured consumer lines of credit. The credit quality indicator for consumer loans is based on delinquency status of the borrower as of the date presented. As the borrower becomes more delinquent, the likelihood of loss increases. An exemption is applied to government guaranteed loans as the principal repayments are insured by the Federal Housing Administration (“FHA”) and U.S. Department of Veterans Affairs and thus remain on accrual status regardless of delinquency status. The following table summarizes the commercial loans disaggregated by year of origination and by risk rating. The consumer loan delinquency status by year of origination is also presented below. The tables reflect the amortized cost of the loans and include PCD loans. Commercial Loans - Risk Classifications by Class
June 30, 2022
Risk Classification: | Term Loans by Origination Year |  |  |  | Revolving Converted to Term Loans |  |
dollars in millions | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 & Prior |  | Revolving |  |  | Total
Commercial construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 509 |  |  | $ | 816 |  |  | $ | 696 |  |  | $ | 421 |  |  | $ | 64 |  |  | $ | 84 |  |  | $ | 58 |  |  | $ | — |  |  | $ | 2,648 |
Special Mention | 2 |  |  | — |  |  | 28 |  |  | — |  |  | 28 |  |  | — |  |  | — |  |  | — |  |  | 58 |
Substandard | 2 |  |  | — |  |  | — |  |  | 56 |  |  | 11 |  |  | 5 |  |  | — |  |  | — |  |  | 74 |
Doubtful | — |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial construction | 513 |  |  | 816 |  |  | 724 |  |  | 480 |  |  | 103 |  |  | 89 |  |  | 58 |  |  | — |  |  | 2,783 |
Owner occupied commercial mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 1,451 |  |  | 3,275 |  |  | 3,116 |  |  | 1,986 |  |  | 1,125 |  |  | 2,211 |  |  | 158 |  |  | — |  |  | 13,322 |
Special Mention | 4 |  |  | 6 |  |  | 31 |  |  | 34 |  |  | 18 |  |  | 71 |  |  | 4 |  |  | — |  |  | 168 |
Substandard | 3 |  |  | 24 |  |  | 38 |  |  | 50 |  |  | 68 |  |  | 117 |  |  | 4 |  |  | — |  |  | 304 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total owner occupied commercial mortgage | 1,458 |  |  | 3,305 |  |  | 3,185 |  |  | 2,070 |  |  | 1,211 |  |  | 2,400 |  |  | 166 |  |  | — |  |  | 13,795 |
Non-owner occupied commercial mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 1,131 |  |  | 1,706 |  |  | 1,819 |  |  | 1,648 |  |  | 832 |  |  | 1,212 |  |  | 43 |  |  | — |  |  | 8,391 |
Special Mention | — |  |  | 1 |  |  | 41 |  |  | 115 |  |  | 3 |  |  | 11 |  |  | 1 |  |  | — |  |  | 172 |
Substandard | 4 |  |  | 15 |  |  | 17 |  |  | 321 |  |  | 58 |  |  | 173 |  |  | — |  |  | — |  |  | 588 |
Doubtful | — |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | 11 |  |  | — |  |  | — |  |  | 16 |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total non-owner occupied commercial mortgage | 1,135 |  |  | 1,722 |  |  | 1,877 |  |  | 2,089 |  |  | 893 |  |  | 1,407 |  |  | 44 |  |  | — |  |  | 9,167 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 5,002 |  |  | 4,980 |  |  | 2,506 |  |  | 2,041 |  |  | 1,167 |  |  | 1,210 |  |  | 4,966 |  |  | 48 |  |  | 21,920 |
Special Mention | 49 |  |  | 81 |  |  | 103 |  |  | 82 |  |  | 78 |  |  | 47 |  |  | 18 |  |  | — |  |  | 458 |
Substandard | 51 |  |  | 68 |  |  | 132 |  |  | 149 |  |  | 157 |  |  | 193 |  |  | 274 |  |  | 1 |  |  | 1,025 |
Doubtful | — |  |  | 4 |  |  | 1 |  |  | 1 |  |  | 11 |  |  | 30 |  |  | 12 |  |  | — |  |  | 59 |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 92 |  |  | — |  |  | 92 |
Total commercial and industrial | 5,102 |  |  | 5,133 |  |  | 2,742 |  |  | 2,273 |  |  | 1,413 |  |  | 1,480 |  |  | 5,362 |  |  | 49 |  |  | 23,554 |
Leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 343 |  |  | 583 |  |  | 521 |  |  | 309 |  |  | 136 |  |  | 127 |  |  | — |  |  | — |  |  | 2,019 |
Special Mention | 8 |  |  | 17 |  |  | 18 |  |  | 11 |  |  | 7 |  |  | 1 |  |  | — |  |  | — |  |  | 62 |
Substandard | 11 |  |  | 28 |  |  | 22 |  |  | 16 |  |  | 10 |  |  | 2 |  |  | — |  |  | — |  |  | 89 |
Doubtful | 1 |  |  | 2 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total leases | 363 |  |  | 630 |  |  | 563 |  |  | 338 |  |  | 154 |  |  | 130 |  |  | — |  |  | — |  |  | 2,178 |
Total commercial | $ | 8,571 |  |  | $ | 11,606 |  |  | $ | 9,091 |  |  | $ | 7,250 |  |  | $ | 3,774 |  |  | $ | 5,506 |  |  | $ | 5,630 |  |  | $ | 49 |  |  | $ | 51,477 |
Consumer Loans - Delinquency Status by Class
June 30, 2022
Days Past Due: | Term Loans by Origination Year |  |  |  | Revolving Converted to Term Loans |  |
dollars in millions | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 & Prior |  | Revolving |  |  | Total
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | $ | 1,988 |  |  | $ | 3,784 |  |  | $ | 2,219 |  |  | $ | 877 |  |  | $ | 455 |  |  | $ | 2,934 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 12,276 |
30-59 days | 5 |  |  | 6 |  |  | 3 |  |  | 4 |  |  | 6 |  |  | 43 |  |  | — |  |  | — |  |  | 67 |
60-89 days | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | 9 |  |  | — |  |  | — |  |  | 11 |
90 days or greater | — |  |  | 1 |  |  | 1 |  |  | 3 |  |  | 37 |  |  | 45 |  |  | — |  |  | — |  |  | 87 |
Total residential mortgage | 1,993 |  |  | 3,791 |  |  | 2,224 |  |  | 885 |  |  | 498 |  |  | 3,031 |  |  | 19 |  |  | — |  |  | 12,441 |
Revolving mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,742 |  |  | 132 |  |  | 1,874 |
30-59 days | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |  |  | 3 |  |  | 8 |
60-89 days | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 2 |  |  | 3 |
90 days or greater | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 7 |  |  | 8 |
Total revolving mortgage | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,749 |  |  | 144 |  |  | 1,893 |
Consumer auto |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | 301 |  |  | 484 |  |  | 271 |  |  | 148 |  |  | 85 |  |  | 40 |  |  | — |  |  | — |  |  | 1,329 |
30-59 days | — |  |  | 2 |  |  | 2 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 7 |
60-89 days | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |
90 days or greater | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |
Total consumer auto | 301 |  |  | 487 |  |  | 274 |  |  | 149 |  |  | 86 |  |  | 41 |  |  | — |  |  | — |  |  | 1,338 |
Consumer other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | 86 |  |  | 102 |  |  | 17 |  |  | 8 |  |  | 22 |  |  | 9 |  |  | 337 |  |  | — |  |  | 581 |
30-59 days | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 3 |
60-89 days | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
90 days or greater | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Total consumer other | 86 |  |  | 102 |  |  | 17 |  |  | 8 |  |  | 22 |  |  | 9 |  |  | 342 |  |  | — |  |  | 586 |
Total consumer | $ | 2,380 |  |  | $ | 4,380 |  |  | $ | 2,515 |  |  | $ | 1,042 |  |  | $ | 606 |  |  | $ | 3,081 |  |  | $ | 2,110 |  |  | $ | 144 |  |  | $ | 16,258 |
The following tables represent current credit quality indicators by origination year as of December 31, 2021. Commercial Loans - Risk Classifications by Class
December 31, 2021
Risk Classification: | Term Loans by Origination Year |  |  |  | Revolving Converted to Term Loans |  |
dollars in millions | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 & Prior |  | Revolving |  |  | Total
Commercial construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 540 |  |  | $ | 400 |  |  | $ | 189 |  |  | $ | 29 |  |  | $ | 48 |  |  | $ | 11 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 1,227 |
Special Mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Substandard | 2 |  |  | — |  |  | 1 |  |  | 2 |  |  | 4 |  |  | 1 |  |  | — |  |  | — |  |  | 10 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial construction | 542 |  |  | 400 |  |  | 190 |  |  | 31 |  |  | 52 |  |  | 13 |  |  | 10 |  |  | — |  |  | 1,238 |
Owner occupied commercial mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 3,045 |  |  | 3,022 |  |  | 1,873 |  |  | 1,194 |  |  | 963 |  |  | 1,572 |  |  | 125 |  |  | — |  |  | 11,794 |
Special Mention | 3 |  |  | 35 |  |  | 37 |  |  | 22 |  |  | 13 |  |  | 33 |  |  | 5 |  |  | — |  |  | 148 |
Substandard | 31 |  |  | 16 |  |  | 18 |  |  | 12 |  |  | 18 |  |  | 56 |  |  | 6 |  |  | — |  |  | 157 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total owner occupied commercial mortgage | 3,079 |  |  | 3,073 |  |  | 1,928 |  |  | 1,228 |  |  | 994 |  |  | 1,661 |  |  | 136 |  |  | — |  |  | 12,099 |
Non-owner occupied commercial mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 644 |  |  | 737 |  |  | 578 |  |  | 263 |  |  | 266 |  |  | 412 |  |  | 37 |  |  | — |  |  | 2,937 |
Special Mention | 1 |  |  | — |  |  | — |  |  | 3 |  |  | 3 |  |  | 10 |  |  | — |  |  | — |  |  | 17 |
Substandard | 9 |  |  | 11 |  |  | 24 |  |  | 12 |  |  | 7 |  |  | 22 |  |  | 1 |  |  | — |  |  | 86 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total non-owner occupied commercial mortgage | 654 |  |  | 748 |  |  | 602 |  |  | 278 |  |  | 277 |  |  | 444 |  |  | 38 |  |  | — |  |  | 3,041 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 2,107 |  |  | 1,018 |  |  | 599 |  |  | 257 |  |  | 149 |  |  | 281 |  |  | 1,342 |  |  | 5 |  |  | 5,758 |
Special Mention | 9 |  |  | 7 |  |  | 20 |  |  | 2 |  |  | 4 |  |  | 5 |  |  | 5 |  |  | — |  |  | 52 |
Substandard | 20 |  |  | 7 |  |  | 3 |  |  | 4 |  |  | 2 |  |  | 2 |  |  | 16 |  |  | 1 |  |  | 55 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 72 |  |  | — |  |  | 72 |
Total commercial and industrial | 2,136 |  |  | 1,032 |  |  | 622 |  |  | 263 |  |  | 155 |  |  | 288 |  |  | 1,435 |  |  | 6 |  |  | 5,937 |
Leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | 93 |  |  | 68 |  |  | 38 |  |  | 42 |  |  | 17 |  |  | 8 |  |  | — |  |  | — |  |  | 266 |
Special Mention | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |
Substandard | 2 |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Ungraded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total leases | 95 |  |  | 70 |  |  | 38 |  |  | 43 |  |  | 17 |  |  | 8 |  |  | — |  |  | — |  |  | 271 |
Total commercial | $ | 6,506 |  |  | $ | 5,323 |  |  | $ | 3,380 |  |  | $ | 1,843 |  |  | $ | 1,495 |  |  | $ | 2,414 |  |  | $ | 1,619 |  |  | $ | 6 |  |  | $ | 22,586 |
Consumer Loans - Delinquency Status by Class
December 31, 2021
Days Past Due: | Term Loans by Origination Year |  |  |  | Revolving Converted to Term Loans |  |
dollars in millions | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 & Prior |  | Revolving |  |  | Total
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | $ | 2,139 |  |  | $ | 1,663 |  |  | $ | 627 |  |  | $ | 368 |  |  | $ | 349 |  |  | $ | 867 |  |  | $ | 22 |  |  | $ | — |  |  | $ | 6,035 |
30-59 days | 2 |  |  | 3 |  |  | 2 |  |  | 2 |  |  | 1 |  |  | 14 |  |  | — |  |  | — |  |  | 24 |
60-89 days | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | 4 |  |  | — |  |  | — |  |  | 6 |
90 days or greater | 1 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 1 |  |  | 17 |  |  | — |  |  | — |  |  | 23 |
Total residential mortgage | 2,142 |  |  | 1,667 |  |  | 630 |  |  | 373 |  |  | 352 |  |  | 902 |  |  | 22 |  |  | — |  |  | 6,088 |
Revolving mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,678 |  |  | 126 |  |  | 1,804 |
30-59 days | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | 2 |  |  | 6 |
60-89 days | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 2 |
90 days or greater | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | 4 |  |  | 6 |
Total revolving mortgage | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,684 |  |  | 134 |  |  | 1,818 |
Consumer auto |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | 597 |  |  | 343 |  |  | 198 |  |  | 119 |  |  | 48 |  |  | 19 |  |  | — |  |  | — |  |  | 1,324 |
30-59 days | 1 |  |  | 2 |  |  | 1 |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 6 |
60-89 days | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
90 days or greater | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |
Total consumer auto | 598 |  |  | 345 |  |  | 199 |  |  | 120 |  |  | 48 |  |  | 22 |  |  | — |  |  | — |  |  | 1,332 |
Consumer other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | 131 |  |  | 24 |  |  | 11 |  |  | 4 |  |  | 2 |  |  | 29 |  |  | 342 |  |  | — |  |  | 543 |
30-59 days | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
60-89 days | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 2 |
90 days or greater | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Total consumer other | 132 |  |  | 24 |  |  | 11 |  |  | 4 |  |  | 2 |  |  | 29 |  |  | 346 |  |  | — |  |  | 548 |
Total consumer | $ | 2,872 |  |  | $ | 2,036 |  |  | $ | 840 |  |  | $ | 497 |  |  | $ | 402 |  |  | $ | 953 |  |  | $ | 2,052 |  |  | $ | 134 |  |  | $ | 9,786 |
Purchased loans and leases The following table summarizes PCD loans and leases that BancShares acquired in the CIT Merger. PCD Loans and Leases - CIT Merger
dollars in millions |  | Total PCD from CIT Merger
UPB |  | $ | 3,550 |
Initial PCD ACL |  | (272) |
Fair value discount, net of the PCD Gross-Up |  | (45) |
Purchase price |  | $ | 3,233 |
The recorded fair values of Non-PCD loans acquired in the CIT Merger as of the acquisition date was $29.5 billion, resulting in a PAA discount of $61 million. Troubled Debt Restructuring As part of BancShares’ ongoing risk-management practices, BancShares attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications are made in accordance with internal policies and guidelines to conform to regulatory guidance. BancShares accounts for certain loan modifications or restructurings as troubled debt restructurings (“TDRs”). In general, a modification or restructuring of a loan is considered a TDR if, for economic or legal reasons related to a borrower’s financial difficulties, a concession is granted to the borrower that creditors would not otherwise consider. BancShares may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if is probable that a borrower may default in the foreseeable future. Many aspects of a borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty. Concessions may relate to the contractual interest rate, maturity date, payment structure or other actions. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty, and whether a concession has been granted, are subjective in nature and management’s judgment is required when determining whether a modification is classified as a TDR. In accordance with regulatory guidance discussed below, certain loan modifications that might ordinarily have qualified as TDRs were not accounted for as TDRs. The Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (the “Interagency Statement”) was published by banking regulators in April 2020 to clarify expectations around loan modifications and the determination of TDRs for borrowers experiencing COVID-19-related financial difficulty. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and Interagency Statement offer some practical expedients for evaluating whether loan modifications that occur in response to the COVID-19 pandemic are TDRs. Any loan modification that meets these practical expedients would not automatically be considered a TDR because the borrower is presumed not to be experiencing financial difficulty at the time of the loan modification. BancShares applied this regulatory guidance during its TDR identification process through January 1, 2022 for short-term loan forbearance agreements as a result of COVID-19 and in most cases did not record these as TDRs. Modified loans that meet the definition of a TDR are subject to BancShares’ individually reviewed loans policy. The following table presents amortized cost of TDRs. TDRs
| June 30, 2022
dollars in millions | Accruing |  | Non-Accruing |  | Total
Commercial |  |  |  |  |
Commercial construction | $ | 2 |  |  | $ | 1 |  |  | $ | 3 |
Owner occupied commercial mortgage | 50 |  |  | 8 |  |  | 58 |
Non-owner occupied commercial mortgage | 28 |  |  | 2 |  |  | 30 |
Commercial and industrial | 25 |  |  | 13 |  |  | 38 |
Leases | — |  |  | 1 |  |  | 1 |
Total commercial | 105 |  |  | 25 |  |  | 130 |
Consumer |  |  |  |  |
Residential mortgage | 28 |  |  | 19 |  |  | 47 |
Revolving mortgage | 18 |  |  | 5 |  |  | 23 |
Consumer auto | 2 |  |  | — |  |  | 2 |
Consumer other | 1 |  |  | — |  |  | 1 |
Total consumer | 49 |  |  | 24 |  |  | 73 |
Total TDRs | $ | 154 |  |  | $ | 49 |  |  | $ | 203 |
| December 31, 2021
dollars in millions | Accruing |  | Non-Accruing |  | Total
Commercial |  |  |  |  |
Commercial construction | $ | 2 |  |  | $ | — |  |  | $ | 2 |
Owner occupied commercial mortgage | 57 |  |  | 8 |  |  | 65 |
Non-owner occupied commercial mortgage | 26 |  |  | 3 |  |  | 29 |
Commercial and industrial | 12 |  |  | 9 |  |  | 21 |
Leases | — |  |  | 1 |  |  | 1 |
Total commercial | 97 |  |  | 21 |  |  | 118 |
Consumer |  |  |  |  |
Residential mortgage | 29 |  |  | 18 |  |  | 47 |
Revolving mortgage | 17 |  |  | 7 |  |  | 24 |
Consumer auto | 2 |  |  | — |  |  | 2 |
Consumer other | 1 |  |  | — |  |  | 1 |
Total consumer | 49 |  |  | 25 |  |  | 74 |
Total TDRs | $ | 146 |  |  | $ | 46 |  |  | $ | 192 |
The following table summarizes the loan restructurings during the three and six months ended June 30, 2022 and 2021 that were designated as TDRs. BancShares defines payment default as movement of the TDR to non-accrual status, which is generally 90 days past due, foreclosure or charge-off, whichever occurs first. Restructurings
| Three Months Ended June 30, |  |  |  |
| 2022 |  | 2021 |  |  |  |
dollars in millions (except for number of loans) | Number of Loans |  | Amortized Cost at Period End |  |  |  |  |  | Number of Loans |  | Amortized Cost at Period End |  |  |  |
Loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest only | 6 |  |  | $ | 6 |  |  |  |  |  |  | 4 |  |  | $ | 3 |  |  |  |  |
Loan term extension | 41 |  |  | 4 |  |  |  |  |  |  | 41 |  |  | 4 |  |  |  |  |
Below market rates | 25 |  |  | 3 |  |  |  |  |  |  | 37 |  |  | 8 |  |  |  |  |
Discharge from bankruptcy | 18 |  |  | 2 |  |  |  |  |  |  | 39 |  |  | 7 |  |  |  |  |
Total | 90 |  |  | $ | 15 |  |  |  |  |  |  | 121 |  |  | $ | 22 |  |  |  |  |
| Six Months Ended June 30, |  |  |  |
| 2022 |  | 2021 |  |  |  |
| Number of Loans |  | Amortized Cost at Period End |  |  |  |  |  | Number of Loans |  | Amortized Cost at Period End |  |  |  |
Loans and leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest only | 8 |  |  | $ | 6 |  |  |  |  |  |  | 10 |  |  | $ | 10 |  |  |  |  |
Loan term extension | 76 |  |  | 23 |  |  |  |  |  |  | 66 |  |  | 8 |  |  |  |  |
Below market rates | 45 |  |  | 5 |  |  |  |  |  |  | 90 |  |  | 16 |  |  |  |  |
Discharge from bankruptcy | 42 |  |  | 4 |  |  |  |  |  |  | 84 |  |  | 10 |  |  |  |  |
Total | 171 |  |  | $ | 38 |  |  |  |  |  |  | 250 |  |  | $ | 44 |  |  |  |  |
There were $1 million and $0.4 million of commitments to lend additional funds to borrowers whose loan terms have been modified in TDRs as of June 30, 2022 and December 31, 2021, respectively. After a loan is determined to be a TDR, BancShares continues to track its performance under its most recent restructured terms. TDRs that subsequently defaulted during the three and six months ended June 30, 2022 and 2021, and were classified as TDRs during the applicable 12-month period preceding June 30, 2022 and 2021 were as follows: TDR Defaults
| Three Months Ended June 30,
dollars in millions | 2022 |  | 2021
TDR Defaults | $ | 1 |  |  | $ | 1 |
| Six Months Ended June 30,
| 2022 |  | 2021
TDR Defaults | $ | 3 |  |  | $ | 5 |
Loans Pledged The following table provides information regarding loans pledged as collateral for borrowing capacity through the FHLB of Atlanta and the Federal Reserve Bank (“FRB”) as of June 30, 2022 and December 31, 2021: Loans Pledged
dollars in millions | June 30, 2022 |  | December 31, 2021
FHLB of Atlanta |  |  |
Lendable collateral value of pledged non-PCD loans | $ | 14,097 |  |  | $ | 9,564 |
Less: Advances | 1,785 |  |  | 645 |
Less: Letters of Credit | 750 |  |  | — |
Available borrowing capacity | $ | 11,562 |  |  | $ | 8,919 |
Pledged non-PCD loans (contractual balance) | $ | 20,680 |  |  | $ | 14,507 |
FRB |  |  |
Lendable collateral value of pledged non-PCD loans | $ | 4,190 |  |  | $ | 3,951 |
Less: Advances | — |  |  | — |
Available borrowing capacity | $ | 4,190 |  |  | $ | 3,951 |
Pledged non-PCD loans (contractual balance) | $ | 5,089 |  |  | $ | 4,806 |

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