Loans and Leases |
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| Loans and Leases | Loans and Leases The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. The Bancorp’s commercial loan and lease portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses that are expected to be incurred over the remaining contractual terms of the related loans and leases. For further information on credit quality and the ALLL, refer to Note 7. The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of:
Portfolio loans and leases are recorded net of unearned income, which totaled $398 million and $384 million as of March 31, 2026 and December 31, 2025, respectively. The amortized cost basis of loans and leases excludes accrued interest receivable of $775 million and $534 million at March 31, 2026 and December 31, 2025, respectively, which is presented as a component of other assets in the Condensed Consolidated Balance Sheets. Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred direct loan origination fees and costs associated with loans and valuation adjustments associated with loans measured at fair value. These items totaled a net discount of $355 million and $216 million as of March 31, 2026 and December 31, 2025, respectively, of which $838 million and $872 million of net discount was related to solar energy installation loans, respectively. The Bancorp’s FHLB and FRB borrowings are primarily secured by loans. The Bancorp had loans of $16.1 billion and $14.9 billion as of March 31, 2026 and December 31, 2025, respectively, pledged to the FHLB, and loans of $80.2 billion and $60.1 billion as of March 31, 2026 and December 31, 2025, respectively, pledged to the FRB. The following table presents a summary of net charge-offs:
(a)Excludes net charge-offs of $94 which were taken immediately at the time of the Comerica acquisition. The following table presents the income recognized related to leases where the Bancorp is the lessor:
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