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Loans and Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2014
Loans and Allowance for Loan Losses  
Loans and Allowance for Loan Losses

Note 5—Loans and Allowance for Loan Losses

        The following table provides the outstanding balances of loans at June 30, 2014 and December 31, 2013:

(Dollars in millions)   June 30,
2014		   December 31,
2013		  

Loans held for investment:

              

Commercial and industrial

   $ 25,162   $ 23,528  

Commercial mortgage

     13,549     13,092  

Construction

     1,248     905  

Lease financing

     829     854  
           
​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     40,788     38,379  
           
​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     27,619     25,547  

Home equity and other consumer loans

     3,178     3,280  
           
​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     30,797     28,827  
           
​ ​ ​ ​ ​ ​ ​ ​

Total loans held for investment, before purchased credit-impaired loans

     71,585     67,206  

Purchased credit-impaired loans(1)

     784     1,106  
           
​ ​ ​ ​ ​ ​ ​ ​

Total loans held for investment(2)

     72,369     68,312  

Allowance for loan losses

     (559 )   (568 )
           
​ ​ ​ ​ ​ ​ ​ ​

Loans held for investment, net

   $ 71,810   $ 67,744  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
(1)
Includes $199 million and $251 million as of June 30, 2014 and December 31, 2013, respectively, of loans for which the Company will be reimbursed a substantial portion of any future losses under the terms of the FDIC loss share agreements. Of these FDIC covered loans, $16 million and $15 million as of June 30, 2014 and December 31, 2013, respectively, were not accounted for under accounting guidance for loans acquired with deteriorated credit quality.
(2)
Includes $130 million and $88 million at June 30, 2014 and December 31, 2013, respectively, for net unamortized discounts and premiums and deferred fees and costs.

  • Allowance for Loan Losses

        The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:

 
   For the Three Months Ended June 30, 2014  
(Dollars in millions)   Commercial   Consumer   Purchased
Credit-
Impaired		   Unallocated   Total  

Allowance for loan losses, beginning of period

   $ 479   $ 55   $ 3   $ 20   $ 557  

(Reversal of) provision for loan losses

     7     (3 )   —     5     9  

Loans charged-off

     (8 )   (4 )   —     —     (12 )

Recoveries of loans previously charged-off

     4     1     —     —     5  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Allowance for loan losses, end of period

   $ 482   $ 49   $ 3   $ 25   $ 559  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       


 

 
   For the Three Months Ended June 30, 2013  
(Dollars in millions)   Commercial   Consumer   Purchased
Credit-
Impaired		   Unallocated   Total  

Allowance for loan losses, beginning of period

   $ 486   $ 113   $ 1   $ 38   $ 638  

(Reversal of) provision for loan losses

     (3 )   —     —     —     (3 )

Decrease in allowance covered by FDIC indemnification

     —     —     (2 )   —     (2 )

Loans charged-off

     (12 )   (8 )   —     —     (20 )

Recoveries of loans previously charged-off

     9     1     2     —     12  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Allowance for loan losses, end of period

   $ 480   $ 106   $ 1   $ 38   $ 625  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       


 

 
   For the Six Months Ended June 30, 2014  
(Dollars in millions)   Commercial   Consumer   Purchased
Credit-
Impaired		   Unallocated   Total  

Allowance for loan losses, beginning of period

   $ 421   $ 69   $ 1   $ 77   $ 568  

(Reversal of) provision for loan losses

     58     (15 )   —     (52 )   (9 )

Provision for purchased credit-impaired loan losses not subject to FDIC indemnification

     —     —     2     —     2  

Other

     (1 )   —     —     —     (1 )

Loans charged-off

     (14 )   (7 )   —     —     (21 )

Recoveries of loans previously charged-off

     18     2     —     —     20  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Allowance for loan losses, end of period

   $ 482   $ 49   $ 3   $ 25   $ 559  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       


 

 
   For the Six Months Ended June 30, 2013  
(Dollars in millions)   Commercial   Consumer   Purchased
Credit-
Impaired		   Unallocated   Total  

Allowance for loan losses, beginning of period

   $ 418   $ 124   $ 1   $ 110   $ 653  

(Reversal of) provision for loan losses

     65     1     —     (72 )   (6 )

Loans charged-off

     (15 )   (21 )   (3 )   —     (39 )

Recoveries of loans previously charged-off

     12     2     3     —     17  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Allowance for loan losses, end of period

   $ 480   $ 106   $ 1   $ 38   $ 625  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

        The following tables show the allowance for loan losses and related loan balances by portfolio segment as of June 30, 2014 and December 31, 2013:

 
   June 30, 2014  
(Dollars in millions)   Commercial   Consumer   Purchased
Credit-
Impaired		   Unallocated   Total  

Allowance for loan losses:

                                

Individually evaluated for impairment

   $ 43   $ 20   $ —   $ —   $ 63  

Collectively evaluated for impairment

     439     29     —     25     493  

Purchased credit-impaired loans

     —     —     3     —     3  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total allowance for loan losses

   $ 482   $ 49   $ 3   $ 25   $ 559  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Loans held for investment:

                                

Individually evaluated for impairment

   $ 284   $ 334   $ 2   $ —   $ 620  

Collectively evaluated for impairment

     40,504     30,463     —     —     70,967  

Purchased credit-impaired loans

     —     —     782     —     782  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans held for investment

   $ 40,788   $ 30,797   $ 784   $ —   $ 72,369  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       


 
   December 31, 2013  
(Dollars in millions)   Commercial   Consumer   Purchased
Credit-
Impaired		   Unallocated   Total  

Allowance for loan losses:

                                

Individually evaluated for impairment

   $ 19   $ 20   $ —   $ —   $ 39  

Collectively evaluated for impairment

     402     49     —     77     528  

Purchased credit-impaired loans

     —     —     1     —     1  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total allowance for loan losses

   $ 421   $ 69   $ 1   $ 77   $ 568  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Loans held for investment:

                                

Individually evaluated for impairment

   $ 266   $ 339   $ 3   $ —   $ 608  

Collectively evaluated for impairment

     38,113     28,488     —     —     66,601  

Purchased credit-impaired loans

     —     —     1,103     —     1,103  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans held for investment

   $ 38,379   $ 28,827   $ 1,106   $ —   $ 68,312  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

  • Nonaccrual and Past Due Loans

        The following table presents nonaccrual loans as of June 30, 2014 and December 31, 2013:

(Dollars in millions)   June 30,
2014		   December 31,
2013		  

Commercial and industrial

   $ 161   $ 44  

Commercial mortgage

     47     51  
           
​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     208     95  
           
​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     243     286  

Home equity and other consumer loans

     46     46  
           
​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     289     332  
           
​ ​ ​ ​ ​ ​ ​ ​

Total nonaccrual loans, before purchased credit-impaired loans

     497     427  

Purchased credit-impaired loans

     17     15  
           
​ ​ ​ ​ ​ ​ ​ ​

Total nonaccrual loans

   $ 514   $ 442  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Troubled debt restructured loans that continue to accrue interest

   $ 297   $ 367  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Troubled debt restructured nonaccrual loans (included in the total nonaccrual loans above)

   $ 248   $ 225  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

        The following table shows an aging of the balance of loans held for investment, excluding purchased credit-impaired loans, by class as of June 30, 2014 and December 31, 2013:

 
   June 30, 2014  
 
   Aging Analysis of Loans  
(Dollars in millions)   Current   30 to 89
Days Past
Due		   90 Days
or More
Past Due		   Total Past
Due		   Total  

Commercial and industrial

   $ 25,946   $ 33   $ 12   $ 45   $ 25,991  

Commercial mortgage

     13,444     98     7     105     13,549  

Construction

     1,248     —     —     —     1,248  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     40,638     131     19     150     40,788  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     27,419     120     80     200     27,619  

Home equity and other consumer loans

     3,144     17     17     34     3,178  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     30,563     137     97     234     30,797  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans held for investment, excluding purchased credit-impaired loans

   $ 71,201   $ 268   $ 116   $ 384   $ 71,585  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

 
   December 31, 2013  
 
   Aging Analysis of Loans  
(Dollars in millions)   Current   30 to 89
Days Past
Due		   90 Days
or More
Past Due		   Total Past
Due		   Total  

Commercial and industrial

   $ 24,310   $ 66   $ 6   $ 72   $ 24,382  

Commercial mortgage

     13,004     68     20     88     13,092  

Construction

     891     14     —     14     905  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     38,205     148     26     174     38,379  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     25,342     114     91     205     25,547  

Home equity and other consumer loans

     3,238     23     19     42     3,280  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     28,580     137     110     247     28,827  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans held for investment, excluding purchased credit-impaired loans

   $ 66,785   $ 285   $ 136   $ 421   $ 67,206  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

        Loans 90 days or more past due and still accruing totaled $11 million and $5 million at June 30, 2014 and December 31, 2013, respectively. Purchased credit-impaired loans that were 90 days or more past due and still accruing totaled $103 million and $124 million at June 30, 2014 and December 31, 2013, respectively.

  • Credit Quality Indicators

        Management analyzes the Company's loan portfolios by applying specific monitoring policies and procedures that vary according to the relative risk profile and other characteristics within the various loan portfolios. For further information related to the credit quality indicators the Company uses to monitor the portfolio, see Note 5 to the Consolidated Financial Statements in Part II, Item 8. "Financial Statements and Supplementary Data" in our 2013 Form 10-K.

        The following tables summarize the loans in the commercial portfolio segment and commercial loans within the purchased credit-impaired loans segment monitored for credit quality based on internal ratings, excluding $167 million and $213 million covered by Federal Deposit Insurance Corporation (FDIC) loss share agreements, at June 30, 2014 and December 31, 2013, respectively. The amounts presented reflect unpaid principal balances less charge-offs.

 
   June 30, 2014  
(Dollars in millions)   Pass   Special Mention   Classified   Total  

Commercial and industrial

   $ 24,701   $ 603   $ 439   $ 25,743  

Construction

     1,254     9     —     1,263  

Commercial mortgage

     12,975     182     217     13,374  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     38,930     794     656     40,380  

Purchased credit-impaired loans

     49     127     187     363  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 38,979   $ 921   $ 843   $ 40,743  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   


 

 
   December 31, 2013  
(Dollars in millions)   Pass   Special Mention   Classified   Total  

Commercial and industrial

   $ 23,346   $ 576   $ 313   $ 24,235  

Construction

     879     14     —     893  

Commercial mortgage

     12,562     142     228     12,932  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     36,787     732     541     38,060  

Purchased credit-impaired loans

     48     204     362     614  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 36,835   $ 936   $ 903   $ 38,674  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

        The Company monitors the credit quality of its consumer portfolio segment and consumer loans within the purchased credit-impaired loans segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment and purchased credit-impaired loans segment, which excludes $32 million and $38 million of loans covered by FDIC loss share agreements, at June 30, 2014 and December 31, 2013, respectively:

 
   June 30, 2014  
(Dollars in millions)   Accrual   Nonaccrual   Total  

Residential mortgage

   $ 27,376   $ 243   $ 27,619  

Home equity and other consumer loans

     3,132     46     3,178  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     30,508     289     30,797  

Purchased credit-impaired loans

     222     —     222  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 30,730   $ 289   $ 31,019  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               


 

 
   December 31, 2013  
(Dollars in millions)   Accrual   Nonaccrual   Total  

Residential mortgage

   $ 25,261   $ 286   $ 25,547  

Home equity and other consumer loans

     3,234     46     3,280  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     28,495     332     28,827  

Purchased credit-impaired loans

     242     —     242  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 28,737   $ 332   $ 29,069  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        The Company also monitors the credit quality for substantially all of its consumer portfolio segment using credit scores provided by Fair Isaac Corporation (FICO) and refreshed loan-to-value (LTV) ratios. FICO credit scores are refreshed at least quarterly to monitor the quality of the portfolio. Refreshed LTV measures the principal balance of the loan as a percentage of the estimated current value of the property securing the loan. Home equity loans are evaluated using combined LTV, which measures the principal balance of the combined loans that have liens against the property (including unused credit lines for home equity products) as a percentage of the estimated current value of the property securing the loans. The LTV ratios are refreshed on a quarterly basis, using the most recent home pricing index (HPI) data available for the property location.

        The following tables summarize the loans in the consumer portfolio segment and consumer loans within the purchased credit-impaired loans segment monitored for credit quality based on refreshed FICO scores and refreshed LTV ratios at June 30, 2014 and December 31, 2013. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.

 
   June 30, 2014  
 
   FICO scores  
(Dollars in millions)   720 and above   Below 720   No FICO
Available(1)		   Total  

Residential mortgage

   $ 21,339   $ 5,554   $ 515   $ 27,408  

Home equity and other consumer loans

     2,248     790     80     3,118  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     23,587     6,344     595     30,526  

Purchased credit-impaired loans

     87     123     12     222  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 23,674   $ 6,467   $ 607   $ 30,748  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Percentage of total

     77 %   21 %   2 %   100 %


 

 
   December 31, 2013  
 
   FICO scores  
(Dollars in millions)   720 and above   Below 720   No FICO
Available(1)		   Total  

Residential mortgage

   $ 19,614   $ 5,301   $ 459   $ 25,374  

Home equity and other consumer loans

     2,283     839     81     3,203  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     21,897     6,140     540     28,577  

Purchased credit-impaired loans

     94     135     15     244  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 21,991   $ 6,275   $ 555   $ 28,821  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

Percentage of total

     76 %   22 %   2 %   100 %
(1)
Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

 
   June 30, 2014  
 
   LTV ratios  
(Dollars in millions)   Less than
80 Percent		   80-100 Percent   Greater than
100 Percent		   No LTV
Available(1)		   Total  

Residential mortgage

   $ 25,486   $ 1,733   $ 134   $ 55   $ 27,408  

Home equity loans

     2,445     299     149     51     2,944  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     27,931     2,032     283     106     30,352  

Purchased credit-impaired loans

     150     50     20     —     220  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 28,081   $ 2,082   $ 303   $ 106   $ 30,572  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Percentage of total

     92 %   7 %   1 %   — %   100 %


 

 
   December 31, 2013  
 
   LTV ratios  
(Dollars in millions)   Less than
80 Percent		   80-100 Percent   Greater than
100 Percent		   No LTV
Available(1)		   Total  

Residential mortgage

   $ 23,209   $ 1,884   $ 228   $ 53   $ 25,374  

Home equity loans

     2,487     362     202     52     3,103  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     25,696     2,246     430     105     28,477  

Purchased credit-impaired loans

     152     57     31     —     240  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 25,848   $ 2,303   $ 461   $ 105   $ 28,717  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Percentage of total

     90 %   8 %   2 %   — %   100 %
(1)
Represents loans for which management was not able to obtain refreshed property values.

  • Troubled Debt Restructurings

        The following table provides a summary of the Company's recorded investment in troubled debt restructurings (TDRs) as of June 30, 2014 and December 31, 2013. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $52 million and $43 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of June 30, 2014 and December 31, 2013, respectively.

(Dollars in millions)   June 30,
2014		   December 31,
2013		  

Commercial and industrial

   $ 173   $ 212  

Commercial mortgage

     36     38  
           
​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     209     250  
           
​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     308     315  

Home equity and other consumer loans

     26     24  
           
​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     334     339  
           
​ ​ ​ ​ ​ ​ ​ ​

Total restructured loans, excluding purchased credit-impaired loans(1)

   $ 543   $ 589  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
(1)
Amounts exclude $2 million and $3 million of TDRs covered by FDIC loss share agreements at June 30, 2014 and December 31, 2013, respectively.

        For the second quarter of 2014, TDR modifications in the commercial portfolio segment were primarily composed of interest rate changes, maturity extensions, covenant waivers, conversions from revolving lines of credit to term loans, or some combination thereof. In the consumer portfolio segment, primarily all of the modifications were composed of interest rate reductions and maturity extensions. There were no charge-offs related to TDR modifications for the six months ended June 30, 2014 and for the year ended December 31, 2013. For the commercial and consumer portfolio segments, the allowance for loan losses for TDRs is measured on an individual loan basis or in pools with similar risk characteristics.

        The following table provides the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the three and six months ended June 30, 2014 and 2013:

 
   For the Three Months Ended
June 30, 2014		   For the Six Months Ended
June 30, 2014		  
(Dollars in millions)   Pre-Modification
Outstanding Recorded
Investment(1)		   Post-Modification
Outstanding Recorded
Investment(2)		   Pre-Modification
Outstanding Recorded
Investment(1)		   Post-Modification
Outstanding Recorded
Investment(2)		  

Commercial and industrial

   $ 76   $ 76   $ 80   $ 80  

Commercial mortgage

     7     7     18     18  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     83     83     98     98  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     4     4     10     9  

Home equity and other consumer loans

     2     2     4     4  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     6     6     14     13  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 89   $ 89   $ 112   $ 111  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Represents the recorded investment in the loan immediately prior to the restructuring event.
(2)
Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

 
   For the Three Months Ended
June 30, 2013		   For the Six Months Ended
June 30, 2013		  
(Dollars in millions)   Pre-Modification
Outstanding Recorded
Investment(1)		   Post-Modification
Outstanding Recorded
Investment(2)		   Pre-Modification
Outstanding Recorded
Investment(1)		   Post-Modification
Outstanding Recorded
Investment(2)		  

Commercial and industrial

   $ 49   $ 47   $ 125   $ 121  

Commercial mortgage

     4     4     15     15  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     53     51     140     136  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     30     30     55     54  

Home equity and other consumer loans

     3     2     4     3  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     33     32     59     57  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 86   $ 83   $ 199   $ 193  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   
(1)
Represents the recorded investment in the loan immediately prior to the restructuring event.
(2)
Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

        The following table provides the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the three and six months ended June 30, 2014 and 2013, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due.

(Dollars in millions)   For the Three
Months Ended
June 30,
2014		   For the Six
Months Ended
June 30,
2014		  

Commercial and industrial

   $ 6   $ 6  

Commercial mortgage

     3     3  
           
​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     9     9  
           
​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     2     4  

Home equity and other consumer loans

     —     1  
           
​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     2     5  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 11   $ 14  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           


 

(Dollars in millions)   For the Three
Months Ended
June 30,
2013		   For the Six
Months Ended
June 30,
2013		  

Commercial and industrial

   $ 3   $ 8  
           
​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     3     8  
           
​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     7     9  

Home equity and other consumer loans

     1     1  
           
​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     8     10  
           
​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 11   $ 18  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

        For the consumer portfolio, historical payment defaults and the propensity to redefault are some of the factors considered when determining the allowance for loan losses for situations where impairment is measured using the present value of expected future cash flows discounted at the loan's effective interest rate.

  • Loan Impairment

        Loans that are individually evaluated for impairment include larger nonaccruing loans within the commercial and industrial, construction, commercial mortgage loan portfolios and loans modified in a TDR. When the value of an impaired loan is less than the recorded investment in the loan, the Company records an impairment allowance.

        The following tables show information about impaired loans by class as of June 30, 2014 and December 31, 2013:

 
   June 30, 2014  
 
   Recorded Investment    
   Unpaid Principal Balance  
(Dollars in millions)   With an
Allowance		   Without an
Allowance		   Total   Allowance
for Impaired
Loans		   With an
Allowance		   Without an
Allowance		  

Commercial and industrial

   $ 242   $ 4   $ 246   $ 40   $ 250   $ 7  

Commercial mortgage

     31     7     38     3     35     9  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     273     11     284     43     285     16  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     215     93     308     20     231     107  

Home equity and other consumer loans

     5     21     26     —     6     35  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     220     114     334     20     237     142  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total, excluding purchased credit-impaired loans

     493     125     618     63     522     158  

Purchased credit-impaired loans

     2     —     2     —     2     1  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 495   $ 125   $ 620   $ 63   $ 524   $ 159  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           


 

 
   December 31, 2013  
 
   Recorded Investment    
   Unpaid Principal Balance  
(Dollars in millions)   With an
Allowance		   Without an
Allowance		   Total   Allowance
for Impaired
Loans		   With an
Allowance		   Without an
Allowance		  

Commercial and industrial

   $ 117   $ 104   $ 221   $ 16   $ 121   $ 114  

Commercial mortgage

     33     12     45     3     36     15  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     150     116     266     19     157     129  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     220     95     315     20     236     108  

Home equity and other consumer loans

     4     20     24     —     4     34  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     224     115     339     20     240     142  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total, excluding purchased credit-impaired loans

     374     231     605     39     397     271  

Purchased credit-impaired loans

     2     1     3     —     2     6  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 376   $ 232   $ 608   $ 39   $ 399   $ 277  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during the three and six months ended June 30, 2014 and 2013 for the commercial, consumer and purchased credit-impaired loans portfolio segments.

 
   For the Three Months Ended June 30,   For the Six Months Ended June 30,  
 
   2014   2013   2014   2013  
(Dollars in millions)   Average
Recorded
Investment		   Recognized
Interest
Income		   Average
Recorded
Investment		   Recognized
Interest
Income		   Average
Recorded
Investment		   Recognized
Interest
Income		   Average
Recorded
Investment		   Recognized
Interest
Income		  

Commercial and industrial

   $ 219   $ 1   $ 265   $ 5   $ 219   $ 4   $ 250   $ 8  

Commercial mortgage

     35     —     53     1     37     2     60     1  

Construction

     —     1     2     —     —     1     13     —  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total commercial portfolio

     254     2     320     6     256     7     323     9  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Residential mortgage

     310     3     288     2     312     6     282     5  

Home equity and other consumer loans

     26     —     22     1     25     1     21     1  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total consumer portfolio

     336     3     310     3     337     7     303     6  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total, excluding purchased credit-impaired loans

     590     5     630     9     593     14     626     15  

Purchased credit-impaired loans

     2     —     4     —     2     —     4     —  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 592   $ 5   $ 634   $ 9   $ 595   $ 14   $ 630   $ 15  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

        The Company transferred a net $199 million and $214 million of loans from held for investment to held for sale and sold $190 million and $199 million in loans during the six months ended June 30, 2014 and 2013, respectively.

  • Loans Acquired in Business Combinations

        The Company accounts for certain loans acquired in business combinations in accordance with accounting guidance related to loans acquired with deteriorated credit quality (purchased credit-impaired loans). The following table presents the outstanding balances and carrying amounts of the Company's purchased credit-impaired loans as of June 30, 2014 and December 31, 2013.

(Dollars in millions)   June 30,
2014		   December 31,
2013		  

Total outstanding balance

   $ 1,196   $ 1,733  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

Carrying amount

   $ 768   $ 1,091  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

        The accretable yield for purchased credit-impaired loans for the three and six months ended June 30, 2014 and 2013 was as follows:

 
   For the Three
Months Ended
June 30,		   For the Six
Months Ended
June 30,		  
(Dollars in millions)   2014   2013   2014   2013  

Accretable yield, beginning of period

   $ 382   $ 501   $ 378   $ 590  

Additions

     —     31     —     31  

Accretion

     (118 )   (81 )   (178 )   (160 )

Reclassifications from nonaccretable difference during the period

     83     28     147     18  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Accretable yield, end of period

   $ 347   $ 479   $ 347   $ 479  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​