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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Summary of Loans
The following table provides the outstanding balances of loans held for investment at March 31, 2019 and December 31, 2018.
(Dollars in millions)
 
March 31, 2019
 
December 31, 2018
Loans held for investment:
 
 
 
 
Commercial and industrial
 
$
25,303

 
$
24,919

Commercial mortgage
 
15,299

 
15,354

Construction
 
1,691

 
1,613

Lease financing
 
1,322

 
1,249

Total commercial portfolio
 
43,615

 
43,135

Residential mortgage
 
38,439

 
38,439

Home equity and other consumer loans
 
5,533

 
4,933

Total consumer portfolio
 
43,972

 
43,372

Total loans held for investment(1)
 
87,587

 
86,507

Allowance for loan losses
 
(516
)
 
(474
)
Loans held for investment, net
 
$
87,071

 
$
86,033

 
 

(1)
Includes $343 million and $340 million at March 31, 2019 and December 31, 2018, 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 Three Months Ended March 31, 2019
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses, beginning of period
 
$
359

 
$
110

 
$
5

 
$
474

(Reversal of) provision for loan losses
 
32

 
27

 
—

 
59

Loans charged-off
 
(11
)
 
(17
)
 
—

 
(28
)
Recoveries of loans previously charged-off
 
9

 
2

 
—

 
11

Allowance for loan losses, end of period
 
$
389

 
$
122

 
$
5

 
$
516

 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended March 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
 
14

 
6

 
(25
)
 
(5
)
Loans charged-off
 
(6
)
 
(10
)
 
—

 
(16
)
Recoveries of loans previously charged-off
 
3

 
2

 
—

 
5

Allowance for loan losses, end of period
 
$
371

 
$
84

 
$
5

 
$
460
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 March 31, 2019 and December 31, 2018.
 
 
March 31, 2019
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
109

 
$
13

 
$
—

 
$
122

Collectively evaluated for impairment
 
280

 
109

 
5

 
394

Total allowance for loan losses
 
$
389

 
$
122

 
$
5

 
$
516

 
 
 
 
 
 
 
 
 
Loans held for investment:
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
654

 
$
274

 
$
—

 
$
928

Collectively evaluated for impairment
 
42,961

 
43,698

 
—

 
86,659

Total loans held for investment
 
$
43,615

 
$
43,972

 
$
—

 
$
87,587

 
 
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
Summary of Nonaccrual Loans
The following table presents nonaccrual loans as of March 31, 2019 and December 31, 2018.
(Dollars in millions)
 
March 31, 2019
 
December 31, 2018
Commercial and industrial
 
$
478

 
$
269

Commercial mortgage
 
12

 
12

  Total commercial portfolio
 
490

 
281

Residential mortgage
 
124

 
121

Home equity and other consumer loans
 
20

 
19

  Total consumer portfolio
 
144

 
140

        Total nonaccrual loans
 
$
634

 
$
421

Troubled debt restructured loans that continue to accrue interest
 
$
296

 
$
299

Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)
 
$
163

 
$
136
Aging of Balance of Loans Held for Investment
The following tables show the aging of the balance of loans held for investment by class as of March 31, 2019 and December 31, 2018.

 
 
March 31, 2019
 
 
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
 
$
26,381

 
$
220

 
$
24

 
$
244

 
$
26,625

Commercial mortgage
 
15,273

 
22

 
4

 
26

 
15,299

Construction
 
1,685

 
5

 
1

 
6

 
1,691

  Total commercial portfolio
 
43,339

 
247

 
29

 
276

 
43,615

Residential mortgage
 
38,256

 
141

 
42

 
183

 
38,439

Home equity and other consumer loans
 
5,491

 
29

 
13

 
42

 
5,533

  Total consumer portfolio
 
43,747

 
170

 
55

 
225

 
43,972

Total loans held for investment
 
$
87,086

 
$
417

 
$
84

 
$
501

 
$
87,587


 
 
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
Loans in Commercial Portfolio Segment Monitored for Credit Quality Based on Regulatory Risk Ratings
The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings.

 
 
March 31, 2019
 
 
 
 
Criticized
 
 
(Dollars in millions)
 
Pass
 
Special Mention
 
Classified
 
Total
Commercial and industrial
 
$
25,339

 
$
569

 
$
717

 
$
26,625

Commercial mortgage
 
15,018

 
121

 
160

 
15,299

Construction
 
1,518

 
111

 
62

 
1,691

  Total commercial portfolio
 
$
41,875

 
$
801

 
$
939

 
$
43,615


 
 
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
Loans in Consumer Portfolio an Purchased credit-impaired loans
The following tables summarize the loans in the consumer portfolio segment, which exclude $5 million and $6 million of loans covered by FDIC loss share agreements, at March 31, 2019 and December 31, 2018, respectively.
 
 
March 31, 2019
(Dollars in millions)
 
Accrual
 
Nonaccrual
 
Total
Residential mortgage
 
$
38,312

 
$
124

 
$
38,436

Home equity and other consumer loans
 
5,511

 
20

 
5,531

  Total consumer portfolio
 
$
43,823

 
$
144

 
$
43,967


 
 
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
Loans in Consumer Portfolio Segment Based on Refreshed FICO Scores and Refreshed LTV ratios
These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.


 
 
March 31, 2019
 
 
FICO scores
(Dollars in millions)
 
720 and Above
 
Below 720
 
No FICO
Available(1)
 
Total
Residential mortgage
 
$
31,693

 
$
5,950

 
$
403

 
$
38,046

Home equity and other consumer loans
 
3,711

 
1,712

 
53

 
5,476

  Total consumer portfolio
 
$
35,404

 
$
7,662

 
$
456

 
$
43,522

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
 
 
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).
 
 
March 31, 2019
 
 
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
 
$
35,859

 
$
2,106

 
$
8

 
$
73

 
$
38,046

Home equity loans
 
1,914

 
239

 
13

 
24

 
2,190

Total consumer portfolio
 
$
37,773

 
$
2,345

 
$
21

 
$
97

 
$
40,236

Percentage of total
 
94
%
 
6
%
 
—
%
 
—
%
 
100
%
 
 
(1)
Represents loans for which management was not able to obtain refreshed property values.
 
 
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.
Summary of Troubled Debt Restructurings
The following table provides a summary of the Company’s recorded investment in TDRs as of March 31, 2019 and December 31, 2018. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $45 million and $49 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of March 31, 2019 and December 31, 2018, respectively.

(Dollars in millions)
 
March 31, 2019
 
December 31, 2018
Commercial and industrial
 
$
137

 
$
109

Commercial mortgage
 
47

 
46

Construction
 
62

 
63

Total commercial portfolio
 
246

 
218

Residential mortgage
 
192

 
196

Home equity and other consumer loans
 
21

 
21

Total consumer portfolio
 
213

 
217

Total restructured loans
 
$
459

 
$
435
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 three months ended March 31, 2019 and 2018.
 
 
For the Three Months Ended March 31, 2019
(Dollars in millions)
 
Pre-Modification
Outstanding
Recorded
Investment(1)
 
Post-Modification
Outstanding
Recorded
Investment(2)
Commercial and industrial
 
$
41

 
$
41

Commercial mortgage
 
2

 
2

Total commercial portfolio
 
43

 
43

Residential mortgage
 
4

 
4

Home equity and other consumer loans
 
1

 
1

Total consumer portfolio
 
5

 
5

Total
 
$
48

 
$
48

 
 
(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 March 31, 2018
(Dollars in millions)
 
Pre-Modification
Outstanding
Recorded
Investment(1)
 
Post-Modification
Outstanding
Recorded
Investment(2)
Commercial and industrial
 
$
14

 
$
14

Total commercial portfolio
 
14

 
14

Residential mortgage
 
1

 
1

Total consumer portfolio
 
1

 
1

Total
 
$
15

 
$
15

 
 
(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 three months ended March 31, 2019, 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. There were no such defaults during the three months ended March 31, 2018.
(Dollars in millions)
 
For the Three Months Ended March 31, 2019
Commercial and industrial
 
$
—

Commercial mortgage
 
1

   Total commercial portfolio
 
1

Residential mortgage
 
$
—

Home equity and other consumer loans
 
—

 Total consumer portfolio
 
—

Total
 
$
1

 
 
 
 
 
Information about Impaired Loans by Class
The following tables show information about impaired loans by class as of March 31, 2019 and December 31, 2018.
 
 
March 31, 2019
 
 
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
 
$
511

 
$
17

 
$
528

 
$
108

 
$
578

 
$
50

Commercial mortgage
 
22

 
42

 
64

 
1

 
22

 
42

Construction
 
—

 
62

 
62

 
—

 
—

 
62

Total commercial portfolio
 
533

 
121

 
654

 
109

 
600

 
154

Residential mortgage
 
170

 
71

 
241

 
12

 
179

 
85

Home equity and other consumer loans
 
22

 
11

 
33

 
1

 
22

 
20

Total consumer portfolio
 
192

 
82

 
274

 
13

 
201

 
105

Total
 
$
725

 
$
203

 
$
928

 
$
122

 
$
801

 
$
259


 
 
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
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 the three months ended March 31, 2019 and 2018 for the commercial and consumer loans portfolio segments.

 
 
For the Three Months Ended March 31,
 
 
2019
 
2018
(Dollars in millions)
 
Average
Recorded
Investment
 
Recognized
Interest
Income
 
Average
Recorded
Investment
 
Recognized
Interest
Income
Commercial and industrial
 
$
430

 
$
3

 
$
293

 
$
2

Commercial mortgage
 
65

 
2

 
37

 
10

Construction
 
62

 
1

 
128

 
2

Total commercial portfolio
 
557

 
6

 
458

 
14

Residential mortgage
 
244

 
3

 
272

 
4

Home equity and other consumer loans
 
33

 
2

 
41

 
1

Total consumer portfolio
 
277

 
5

 
313

 
5

Total
 
$
834

 
$
11

 
$
771

 
$
19



The following table presents loan transfers from held to investment to held for sale and proceeds from
sales of loans during the three months ended March 31, 2019 and 2018 for the commercial and consumer loans portfolio segments.
 
 
For the Three Months Ended March 31,
 
 
2019
 
2018
(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
Commercial portfolio
 
$
71

 
$
121

 
$
(91
)
 
$
240

Consumer portfolio
 
—

 
—

 
—

 
—

Total
 
$
71

 
$
121

 
$
(91
)
 
$
240