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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Summary of Loans
The following table provides the outstanding balances of loans held for investment at December 31, 2018 and 2017.
 
 
December 31,
(Dollars in millions)
 
2018
 
2017
Loans held for investment:
 
 

 
 

Commercial and industrial
 
$
24,919

 
$
23,281

Commercial mortgage
 
15,354

 
14,320

Construction
 
1,613

 
1,775

Lease financing
 
1,249

 
1,533

Total commercial portfolio
 
43,135

 
40,909

Residential mortgage
 
38,439

 
35,643

Home equity and other consumer loans
 
4,933

 
3,462

Total consumer portfolio
 
43,372

 
39,105

Total loans held for investment(1)
 
86,507

 
80,014

Allowance for loan losses
 
(474
)
 
(476
)
Loans held for investment, net
 
$
86,033

 
$
79,538

 
 

(1)Includes $340 million and $301 million at December 31, 2018 and December 31, 2017, respectively, for net unamortized (discounts)
and premiums and deferred (fees) and costs.
Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment
The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:
 
 
For the Year Ended December 31, 2018
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses, beginning of period
 
$
360

 
$
86

 
$
30

 
$
476

(Reversal of) provision for loan losses
 
51

 
58

 
(25
)
 
84

Loans charged-off
 
(79
)
 
(41
)
 
—

 
(120
)
Recoveries of loans previously charged-off
 
27

 
7

 
—

 
34

Allowance for loan losses, end of period
 
$
359

 
$
110

 
$
5

 
$
474


 
 
For the Year Ended December 31, 2017
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses, beginning of period
 
$
556

 
$
83

 
$
—

 
$
639

(Reversal of) provision for loan losses
 
(132
)
 
37

 
30

 
(65
)
Other
 
2

 
—

 
—

 
2

Loans charged-off
 
(116
)
 
(39
)
 
—

 
(155
)
Recoveries of loans previously charged-off
 
50

 
5

 
—

 
55

Allowance for loan losses, end of period
 
$
360

 
$
86

 
$
30

 
$
476


 
 
For the Year Ended December 31, 2016
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses, beginning of period
 
$
654

 
$
49

 
$
20

 
$
723

(Reversal of) provision for loan losses
 
134

 
44

 
(20
)
 
158

Other
 
2

 
—

 
—

 
2

Loans charged-off
 
(259
)
 
(12
)
 
—

 
(271
)
Recoveries of loans previously charged-off
 
25

 
2

 
—

 
27

Allowance for loan losses, end of period
 
$
556

 
$
83

 
$
—

 
$
639
Allowance for Loan Losses and Related Loan Balances by Portfolio Segment
The following tables show the allowance for loan losses and related loan balances by portfolio segment as of December 31, 2018 and 2017.
 
 
December 31, 2018
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses:
 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
62

 
$
13

 
$
—

 
$
75

Collectively evaluated for impairment
 
297

 
97

 
5

 
399

Total allowance for loan losses
 
$
359

 
$
110

 
$
5

 
$
474

Loans held for investment:
 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
450

 
$
280

 
$
—

 
$
730

Collectively evaluated for impairment
 
42,685

 
43,092

 
—

 
85,777

Total loans held for investment
 
$
43,135

 
$
43,372

 
$
—

 
$
86,507

 
 
December 31, 2017
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
58

 
$
15

 
$
—

 
$
73

Collectively evaluated for impairment
 
302

 
71

 
30

 
403

Total allowance for loan losses
 
$
360

 
$
86

 
$
30

 
$
476

Loans held for investment:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
544

 
$
321

 
$
—

 
$
865

Collectively evaluated for impairment
 
40,365

 
38,784

 
—

 
79,149

Total loans held for investment
 
$
40,909

 
$
39,105

 
$
—

 
$
80,014
Summary of Nonaccrual Loans
The following table presents nonaccrual loans as of December 31, 2018 and 2017.
 
 
December 31,
(Dollars in millions)
 
2018
 
2017
Commercial and industrial
 
$
269

 
$
319

Commercial mortgage
 
12

 
20

Total commercial portfolio
 
281

 
339

Residential mortgage
 
121

 
104

Home equity and other consumer loans
 
19

 
22

Total consumer portfolio
 
140

 
126

Total nonaccrual loans
 
$
421

 
$
465

Troubled debt restructured loans that continue to accrue interest
 
$
299

 
$
348

Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)
 
$
136

 
$
229
Aging of Balance of Loans Held for Investment, Excluding Purchased Credit-Impaired Loans
The following tables show the aging of the balance of loans held for investment by class as of December 31, 2018 and 2017.
 
 
December 31, 2018
 
 
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
 
$
26,114

 
$
18

 
$
36

 
$
54

 
$
26,168

Commercial mortgage
 
15,333

 
17

 
4

 
21

 
15,354

Construction
 
1,593

 
20

 
—

 
20

 
1,613

Total commercial portfolio
 
43,040

 
55

 
40

 
95

 
43,135

Residential mortgage
 
38,218

 
175

 
46

 
221

 
38,439

Home equity and other consumer loans
 
4,893

 
28

 
12

 
40

 
4,933

Total consumer portfolio
 
43,111

 
203

 
58

 
261

 
43,372

Total loans held for investment
 
$
86,151

 
$
258

 
$
98

 
$
356

 
$
86,507

 
 
December 31, 2017
 
 
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
 
$
24,734

 
$
17

 
$
63

 
$
80

 
$
24,814

Commercial mortgage
 
14,298

 
16

 
6

 
22

 
14,320

Construction
 
1,775

 
—

 
—

 
—

 
1,775

Total commercial portfolio
 
40,807

 
33

 
69

 
102

 
40,909

Residential mortgage
 
35,453

 
151

 
39

 
190

 
35,643

Home equity and other consumer loans
 
3,427

 
23

 
12

 
35

 
3,462

Total consumer portfolio
 
38,880

 
174

 
51

 
225

 
39,105

Total loans held for investment
 
$
79,687

 
$
207

 
$
120

 
$
327

 
$
80,014
Loans in Commercial Portfolio Segment and Commercial Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Internal Ratings
The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings.
 
 
December 31, 2018
 
 
 
 
Criticized
 
 
(Dollars in millions)
 
Pass
 
Special Mention
 
Classified
 
Total
Commercial and industrial
 
$
25,191

 
$
355

 
$
622

 
$
26,168

Commercial mortgage
 
15,138

 
105

 
111

 
15,354

Construction
 
1,542

 
8

 
63

 
1,613

Total commercial portfolio
 
$
41,871

 
$
468

 
$
796

 
$
43,135


 
 
December 31, 2017
 
 
 
 
Criticized
 
 
(Dollars in millions)
 
Pass
 
Special Mention
 
Classified
 
Total
Commercial and industrial
 
$
23,632

 
$
435

 
$
747

 
$
24,814

Commercial mortgage
 
14,081

 
80

 
159

 
14,320

Construction
 
1,632

 
15

 
128

 
1,775

Total commercial portfolio
 
$
39,345

 
$
530

 
$
1,034

 
$
40,909
Loans in Consumer Portfolio an Purchased credit-impaired loans
The Company monitors the credit quality of its consumer portfolio segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment, which exclude $6 million and $8 million of loans covered by FDIC loss share agreements, at December 31, 2018 and 2017, respectively.
 
 
December 31, 2018
(Dollars in millions)
 
Accrual
 
Nonaccrual
 
Total
Residential mortgage
 
$
38,314

 
$
121

 
$
38,435

Home equity and other consumer loans
 
4,912

 
19

 
4,931

Total consumer portfolio
 
$
43,226

 
$
140

 
$
43,366

 
 
December 31, 2017
(Dollars in millions)
 
Accrual
 
Nonaccrual
 
Total
Residential mortgage
 
$
35,534

 
$
104

 
$
35,638

Home equity and other consumer loans
 
3,437

 
22

 
3,459

Total consumer portfolio
 
$
38,971

 
$
126

 
$
39,097
Loans in Consumer Portfolio Segment and Consumer Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Refreshed FICO Scores and Refreshed LTV ratios
The following tables summarize the loans in the consumer portfolio segment based on refreshed FICO scores and refreshed LTV ratios at December 31, 2018 and 2017. These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.
 
 
December 31, 2018
 
 
FICO scores
(Dollars in millions)
 
720 and Above
 
Below 720
 
No FICO
Available(1)
 
Total
Residential mortgage
 
$
31,589

 
$
6,022

 
$
434

 
$
38,045

Home equity and other consumer loans
 
3,349

 
1,448

 
52

 
4,849

Total consumer portfolio
 
$
34,938

 
$
7,470

 
$
486

 
$
42,894

Percentage of total
 
82
%
 
17
%
 
1
%
 
100
%
 
 

(1)
Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).
 
 
December 31, 2017
 
 
FICO scores
(Dollars in millions)
 
720 and Above
 
Below 720
 
No FICO
Available(1)
 
Total
Residential mortgage
 
$
28,786

 
$
6,082

 
$
411

 
$
35,279

Home equity and other consumer loans
 
2,404

 
918

 
84

 
3,406

Total consumer portfolio
 
$
31,190

 
$
7,000

 
$
495

 
$
38,685

Percentage of total
 
81
%
 
18
%
 
1
%
 
100
%
 
 

(1)
Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).
 
 
December 31, 2018
 
 
LTV ratios
(Dollars in millions)
 
Less than or Equal to 80
Percent
 
Greater than 80 and Less than 100 Percent
 
Greater than or Equal to 100
Percent
 
No LTV
Available(1)
 
Total
Residential mortgage
 
$
36,604

 
$
1,361

 
$
4

 
$
75

 
$
38,044

Home equity loans
 
1,966

 
221

 
12

 
24

 
2,223

Total consumer portfolio
 
$
38,570

 
$
1,582

 
$
16

 
$
99

 
$
40,267

Percentage of total
 
96
%
 
4
%
 
—
%
 
—
%
 
100
%
 
 

(1)
Represents loans for which management was not able to obtain refreshed property values.
 
 
December 31, 2017
 
 
LTV ratios
(Dollars in millions)
 
Less than or Equal to 80
Percent
 
Greater than 80 and Less than 100 Percent
 
Greater than or Equal to 100
Percent
 
No LTV
Available(1)
 
Total
Residential mortgage
 
$
34,472

 
$
771

 
$
4

 
$
32

 
$
35,279

Home equity loans
 
2,052

 
248

 
24

 
33

 
2,357

Total consumer portfolio
 
$
36,524

 
$
1,019

 
$
28

 
$
65

 
$
37,636

Percentage of total
 
97
%
 
3
%
 
—
%
 
—
%
 
100
%
 
 

(1)
Represents loans for which management was not able to obtain refreshed property values.
Summary of Troubled Debt Restructurings
The following table provides a summary of the Company's recorded investment in TDRs as of December 31, 2018 and 2017. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $49 million and $66 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of December 31, 2018 and 2017, respectively.

 
 
December 31,
(Dollars in millions)
 
2018
 
2017
Commercial and industrial
 
$
109

 
$
202

Commercial mortgage
 
46

 
7

Construction
 
63

 
128

Total commercial portfolio
 
218

 
337

Residential mortgage
 
196

 
215

Home equity and other consumer loans
 
21

 
25

Total consumer portfolio
 
217

 
240

Total restructured loans
 
$
435

 
$
577
Pre- and Post-Modification Outstanding Recorded Investment Amounts of Troubled Debt Restructurings
The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the years ended December 31, 2018 and 2017.
 
 
For the Year Ended 
 December 31, 2018
 
For the Year Ended 
 December 31, 2017
(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
 
$
165

 
$
165

 
$
186

 
$
186

Commercial mortgage
 
4

 
4

 
5

 
5

Construction
 
—

 
—

 
152

 
131

Total commercial portfolio
 
169

 
169

 
343

 
322

Residential mortgage
 
9

 
9

 
16

 
16

Home equity and other consumer loans
 
2

 
2

 
3

 
3

Total consumer portfolio
 
11

 
11

 
19

 
19

Total
 
$
180

 
$
180

 
$
362

 
$
341

 
 

(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.
Recorded Investment Amounts of Troubled Debt Restructurings
The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the years ended December 31, 2018 and 2017, 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.
 
 
December 31,
(Dollars in millions)
 
2018
 
2017
Commercial and industrial
 
$
—

 
$
19

Commercial mortgage
 
—

 
1

Total commercial portfolio
 
—

 
20

Residential mortgage
 
3

 
3

Home equity and other consumer loans
 
—

 
—

Total consumer portfolio
 
3

 
3

Total
 
$
3

 
$
23
Information about Impaired Loans by Class
The following tables show information about impaired loans by class as of December 31, 2018 and 2017.
 
 
December 31, 2018
 
 
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
 
$
299

 
$
22

 
$
321

 
$
61

 
$
372

 
$
39

Commercial mortgage
 
25

 
41

 
66

 
1

 
25

 
41

Construction
 
—

 
63

 
63

 
—

 
—

 
63

Total commercial portfolio
 
324

 
126

 
450

 
62

 
397

 
143

Residential mortgage
 
175

 
71

 
246

 
12

 
184

 
85

Home equity and other consumer loans
 
22

 
12

 
34

 
1

 
22

 
21

Total consumer portfolio
 
197

 
83

 
280

 
13

 
206

 
106

Total
 
$
521

 
$
209

 
$
730

 
$
75

 
$
603

 
$
249



 
 
December 31, 2017
 
 
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
 
$
287

 
$
93

 
$
380

 
$
57

 
$
348

 
$
102

Commercial mortgage
 
33

 
3

 
36

 
1

 
33

 
3

Construction
 
—

 
128

 
128

 
—

 
—

 
128

Total commercial portfolio
 
320

 
224

 
544

 
58

 
381

 
233

Residential mortgage
 
218

 
59

 
277

 
15

 
234

 
69

Home equity and other consumer loans
 
29

 
15

 
44

 
—

 
30

 
24

Total consumer portfolio
 
247

 
74

 
321

 
15

 
264

 
93

Total
 
$
567

 
$
298

 
$
865

 
$
73

 
$
645

 
$
326
Average Investment in Impaired Loans and Interest Income Recognized for Impaired Loans
The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during 2018, 2017 and 2016 for the commercial and consumer loans portfolio segments.
 
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
(Dollars in millions)
 
Average
Recorded
Investment
 
Recognized
Interest
Income
 
Average
Recorded
Investment
 
Recognized
Interest
Income
 
Average
Recorded
Investment
 
Recognized
Interest
Income
Commercial and industrial
 
$
309

 
$
12

 
$
463

 
$
18

 
$
531

 
$
4

Commercial mortgage
 
60

 
27

 
58

 
41

 
17

 
1

Construction
 
95

 
8

 
45

 
5

 
—

 
—

Total commercial portfolio
 
464

 
47

 
566

 
64

 
548

 
5

Residential mortgage
 
261

 
13

 
304

 
14

 
258

 
8

Home equity and other consumer loans
 
38

 
4

 
52

 
6

 
31

 
2

Total consumer portfolio
 
299

 
17

 
356

 
20

 
289

 
10

Total
 
$
763

 
$
64

 
$
922

 
$
84

 
$
837

 
$
15

The following table presents loan transfers from held to investment to held for sale and proceeds from sales of loans during 2018, 2017 and 2016 for the commercial and consumer loans portfolio segments.
 
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
(Dollars in millions)
 
Transfer of loans from held for investment to held for sale, net
 
Proceeds from sale
 
Transfer of loans from held for investment to held for sale, net
 
Proceeds from sale
 
Transfer of loans from held for investment to held for sale, net
 
Proceeds from sale
Commercial portfolio
 
$
47

 
$
638

 
$
780

 
$
926

 
$
1,632

 
$
1,182

Consumer portfolio
 
(3
)
 
—

 
(4
)
 
—

 
344

 
344

Total
 
$
44

 
$
638

 
$
776

 
$
926

 
$
1,976

 
$
1,526
Outstanding Balances and Carrying Amounts of Purchased Credit-Impaired Loans