Credit Quality And Allowance For Credit Losses (Tables)

6 Months Ended

Jun. 30, 2014

Credit Quality And Allowance For Credit Losses [Abstract]

The following table presents an aging analysis of the recorded balance of loans.



	Loans Past Due and Still Accruing
(in millions)	30-59 Days		60-89 Days		90 Days or More		Total		Nonaccrual Loans		Current Loans (c)		Total Loans
June 30, 2014
Business loans:
Commercial	$	12	$	26	$	—	$	38	$	72	$	30,876	$	30,986
Real estate construction:
Commercial Real Estate business line (a)	—		—		—		—		18		1,583		1,601
Other business lines (b)	25		—		—		25		1		312		338
Total real estate construction	25		—		—		25		19		1,895		1,939
Commercial mortgage:
Commercial Real Estate business line (a)	5		2		—		7		57		1,712		1,776
Other business lines (b)	19		8		5		32		99		6,840		6,971
Total commercial mortgage	24		10		5		39		156		8,552		8,747
Lease financing	—		—		—		—		—		822		822
International	—		—		1		1		—		1,351		1,352
Total business loans	61		36		6		103		247		43,496		43,846
Retail loans:
Residential mortgage	9		2		—		11		45		1,719		1,775
Consumer:
Home equity	7		2		1		10		32		1,532		1,574
Other consumer	1		—		—		1		2		684		687
Total consumer	8		2		1		11		34		2,216		2,261
Total retail loans	17		4		1		22		79		3,935		4,036
Total loans	$	78	$	40	$	7	$	125	$	326	$	47,431	$	47,882
December 31, 2013
Business loans:
Commercial	$	36	$	17	$	4	$	57	$	81	$	28,677	$	28,815
Real estate construction:
Commercial Real Estate business line (a)	—		—		—		—		20		1,427		1,447
Other business lines (b)	—		—		—		—		1		314		315
Total real estate construction	—		—		—		—		21		1,741		1,762
Commercial mortgage:
Commercial Real Estate business line (a)	9		1		—		10		51		1,617		1,678
Other business lines (b)	27		6		4		37		105		6,967		7,109
Total commercial mortgage	36		7		4		47		156		8,584		8,787
Lease financing	—		—		—		—		—		845		845
International	—		—		3		3		4		1,320		1,327
Total business loans	72		24		11		107		262		41,167		41,536
Retail loans:
Residential mortgage	15		3		—		18		53		1,626		1,697
Consumer:
Home equity	6		2		—		8		33		1,476		1,517
Other consumer	4		1		5		10		2		708		720
Total consumer	10		3		5		18		35		2,184		2,237
Total retail loans	25		6		5		36		88		3,810		3,934
Total loans	$	97	$	30	$	16	$	143	$	350	$	44,977	$	45,470


(a)	Primarily loans to real estate developers.


(b)	Primarily loans secured by owner-occupied real estate.


(c)	Included purchased credit-impaired (PCI) loans with a total carrying value of $3 million at June 30, 2014 and $5 million at December 31, 2013.

Loans By Credit Quality Indicator

The following table presents loans by credit quality indicator, based on internal risk ratings assigned to each business loan at the time of approval and subjected to subsequent reviews, generally at least annually, and to pools of retail loans with similar risk characteristics.



	Internally Assigned Rating
(in millions)	Pass (a)		Special Mention (b)		Substandard (c)		Nonaccrual (d)		Total
June 30, 2014
Business loans:
Commercial	$	29,547	$	600	$	767	$	72	$	30,986
Real estate construction:
Commercial Real Estate business line (e)	1,560		23		—		18		1,601
Other business lines (f)	337		—		—		1		338
Total real estate construction	1,897		23		—		19		1,939
Commercial mortgage:
Commercial Real Estate business line (e)	1,609		63		47		57		1,776
Other business lines (f)	6,555		129		188		99		6,971
Total commercial mortgage	8,164		192		235		156		8,747
Lease financing	818		2		2		—		822
International	1,334		9		9		—		1,352
Total business loans	41,760		826		1,013		247		43,846
Retail loans:
Residential mortgage	1,721		3		6		45		1,775
Consumer:
Home equity	1,532		3		7		32		1,574
Other consumer	681		3		1		2		687
Total consumer	2,213		6		8		34		2,261
Total retail loans	3,934		9		14		79		4,036
Total loans	$	45,694	$	835	$	1,027	$	326	$	47,882
December 31, 2013
Business loans:
Commercial	$	27,470	$	590	$	674	$	81	$	28,815
Real estate construction:
Commercial Real Estate business line (e)	1,399		13		15		20		1,447
Other business lines (f)	314		—		—		1		315
Total real estate construction	1,713		13		15		21		1,762
Commercial mortgage:
Commercial Real Estate business line (e)	1,474		92		61		51		1,678
Other business lines (f)	6,596		145		263		105		7,109
Total commercial mortgage	8,070		237		324		156		8,787
Lease financing	841		3		1		—		845
International	1,298		7		18		4		1,327
Total business loans	39,392		850		1,032		262		41,536
Retail loans:
Residential mortgage	1,635		3		6		53		1,697
Consumer:
Home equity	1,475		4		5		33		1,517
Other consumer	708		3		7		2		720
Total consumer	2,183		7		12		35		2,237
Total retail loans	3,818		10		18		88		3,934
Total loans	$	43,210	$	860	$	1,050	$	350	$	45,470


(a)	Includes all loans not included in the categories of special mention, substandard or nonaccrual.


(b)	Special mention loans are accruing loans that have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date.

(c)

Substandard loans are accruing loans that have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans also are distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. PCI loans are included in the substandard category. This category is generally consistent with the "substandard" category as defined by regulatory authorities.

(d)

Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies - on page F-58 in the Corporation's 2013 Annual Report. A significant majority of nonaccrual loans are generally consistent with the "substandard" category and the remainder are generally consistent with the "doubtful" category as defined by regulatory authorities.


(e)	Primarily loans to real estate developers.


(f)	Primarily loans secured by owner-occupied real estate.

Schedule Of Nonaccrual, Reduced-Rate Loans And Foreclosed Property

The following table summarizes nonperforming assets.



(in millions)	June 30, 2014		December 31, 2013
Nonaccrual loans	$	326	$	350
Reduced-rate loans (a)	21		24
Total nonperforming loans	347		374
Foreclosed property	13		9
Total nonperforming assets	$	360	$	383


(a)	Reduced-rate business loans totaled $4 million at both June 30, 2014 and December 31, 2013, and reduced-rate retail loans totaled $17 million and $20 million at June 30, 2014 and December 31, 2013, respectively.

Changes In The Allowance For Loan Losses And Related Loan Amounts

The following table details the changes in the allowance for loan losses and related loan amounts.



	2014									2013
(in millions)	Business Loans			Retail Loans			Total			Business Loans			Retail Loans			Total
Three Months Ended June 30
Allowance for loan losses:
Balance at beginning of period	$	530		$	64		$	594		$	544		$	73		$	617
Loan charge-offs	(24		)	(4		)	(28		)	(30		)	(5		)	(35		)
Recoveries on loans previously charged-off	15			4			19			15			3			18
Net loan charge-offs	(9		)	—			(9		)	(15		)	(2		)	(17		)
Provision for loan losses	7			(1		)	6			13			—			13
Balance at end of period	$	528		$	63		$	591		$	542		$	71		$	613

Six Months Ended June 30
Allowance for loan losses:
Balance at beginning of period	$	531		$	67		$	598		$	552		$	77		$	629
Loan charge-offs	(51		)	(7		)	(58		)	(64		)	(9		)	(73		)
Recoveries on loans previously charged-off	31			6			37			27			5			32
Net loan charge-offs	(20		)	(1		)	(21		)	(37		)	(4		)	(41		)
Provision for loan losses	17			(3		)	14			27			(2		)	25
Balance at end of period	$	528		$	63		$	591		$	542		$	71		$	613

As a percentage of total loans	1.21		%	1.55		%	1.23		%	1.30		%	1.91		%	1.35		%

June 30
Allowance for loan losses:
Individually evaluated for impairment	$	39		$	—		$	39		$	56		$	—		$	56
Collectively evaluated for impairment	489			63			552			486			71			557
Total allowance for loan losses	$	528		$	63		$	591		$	542		$	71		$	613
Loans:
Individually evaluated for impairment	$	215		$	45		$	260		$	314		$	42		$	356
Collectively evaluated for impairment	43,631			3,988			47,619			41,390			3,688			45,078
PCI loans (a)	—			3			3			20			5			25
Total loans evaluated for impairment	$	43,846		$	4,036		$	47,882		$	41,724		$	3,735		$	45,459

(a) No allowance for loan losses was required for PCI loans at June 30, 2014 and 2013.

Changes In the Allowance For Credit Losses On Lending-Related Commitments

Changes in the allowance for credit losses on lending-related commitments, included in "accrued expenses and other liabilities" on the consolidated balance sheets, are summarized in the following table.



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2014		2013		2014		2013
Balance at beginning of period	$	37	$	36	$	36	$	32
Provision for credit losses on lending-related commitments	5		—		6		4
Balance at end of period	$	42	$	36	$	42	$	36

Individually Evaluated Impaired Loans

The following table presents additional information regarding individually evaluated impaired loans.



	Recorded Investment In:
(in millions)	Impaired Loans with No Related Allowance		Impaired Loans with Related Allowance		Total Impaired Loans		Unpaid Principal Balance		Related Allowance for Loan Losses
June 30, 2014
Business loans:
Commercial	$	3	$	58	$	61	$	92	$	11
Real estate construction:
Commercial Real Estate business line (a)	—		18		18		21		2
Other business lines (b)	—		—		—		1		—
Total real estate construction	—		18		18		22		2
Commercial mortgage:
Commercial Real Estate business line (a)	7		55		62		106		12
Other business lines (b)	2		70		72		96		14
Total commercial mortgage	9		125		134		202		26
International	2		—		2		2		—
Total business loans	14		201		215		318		39
Retail loans:
Residential mortgage	30		—		30		35		—
Consumer:
Home equity	10		—		10		15		—
Other consumer	5		—		5		5		—
Total consumer	15		—		15		20		—
Total retail loans (c)	45		—		45		55		—
Total individually evaluated impaired loans	$	59	$	201	$	260	$	373	$	39
December 31, 2013
Business loans:
Commercial	$	10	$	64	$	74	$	121	$	26
Real estate construction:
Commercial Real Estate business line (a)	—		20		20		24		3
Other business lines (b)	—		1		1		1		—
Total real estate construction	—		21		21		25		3
Commercial mortgage:
Commercial Real Estate business line (a)	—		60		60		104		12
Other business lines (b)	1		63		64		90		15
Total commercial mortgage	1		123		124		194		27
International	—		4		4		4		1
Total business loans	11		212		223		344		57
Retail loans:
Residential mortgage	35		—		35		42		—
Consumer:
Home equity	12		—		12		17		—
Other consumer	4		—		4		12		—
Total consumer	16		—		16		29		—
Total retail loans (c)	51		—		51		71		—
Total individually evaluated impaired loans	$	62	$	212	$	274	$	415	$	57


(a)	Primarily loans to real estate developers.


(b)	Primarily loans secured by owner-occupied real estate.


(c)	Individually evaluated retail loans had no related allowance for loan losses, primarily due to policy changes which resulted in direct write-downs of restructured retail loans.

Average Individually Evaluated Impaired Loans And Related Interest Recognized

The following table presents information regarding average individually evaluated impaired loans and the related interest recognized. Interest income recognized for the period primarily related to reduced-rate loans.



	Individually Evaluated Impaired Loans
	2014				2013
(in millions)	Average Balance for the Period		Interest Income Recognized for the Period		Average Balance for the Period		Interest Income Recognized for the Period
Three Months Ended June 30
Business loans:
Commercial	$	56	$	—	$	103	$	1
Real estate construction:
Commercial Real Estate business line (a)	17		—		26		—
Commercial mortgage:
Commercial Real Estate business line (a)	63		—		87		—
Other business lines (b)	71		1		119		1
Total commercial mortgage	134		1		206		1
International	2		—		—		—
Total business loans	209		1		335		2
Retail loans:
Residential mortgage	31		—		33		—
Consumer loans:
Home equity	12		—		5		—
Other consumer	4		—		4		—
Total consumer	16		—		9		—
Total retail loans	47		—		42		—
Total individually evaluated impaired loans	$	256	$	1	$	377	$	2
Six Months Ended June 30
Business loans:
Commercial	$	62	$	—	$	108	$	2
Real estate construction:
Commercial Real Estate business line (a)	18		—		26		—
Commercial mortgage:
Commercial Real Estate business line (a)	62		—		91		—
Other business lines (b)	70		2		120		1
Total commercial mortgage	132		2		211		1
Lease financing	—		—		1		—
International	2		—		—		—
Total business loans	214		2		346		3
Retail loans:
Residential mortgage	32		—		35		—
Consumer:
Home equity	12		—		6		—
Other consumer	4		—		4		—
Total consumer	16		—		10		—
Total retail loans	48		—		45		—
Total individually evaluated impaired loans	$	262	$	2	$	391	$	3


(a)	Primarily loans to real estate developers.


(b)	Primarily loans secured by owner-occupied real estate.

Troubled Debt Restructurings By Type Of Modification

The following tables detail the recorded balance at June 30, 2014 and 2013 of loans considered to be TDRs that were restructured during the three- and six-month periods ended June 30, 2014 and 2013, by type of modification. In cases of loans with more than one type of modification, the loans were categorized based on the most significant modification.



	2014						2013
	Type of Modification						Type of Modification
(in millions)	Principal Deferrals (a)		Interest Rate Reductions		Total Modifications		Principal Deferrals (a)			Interest Rate Reductions		AB Note Restructures (b)		Total Modifications
Three Months Ended June 30
Business loans:
Commercial	$	—	$	—	$	—	$	4		$	—	$	9	$	13
Commercial mortgage:
Commercial Real Estate business line (c)	—		—		—		5			—		—		5
Other business lines (d)	—		—		—		5			—		—		5
Total commercial mortgage	—		—		—		10			—		—		10
Total business loans	—		—		—		14			—		9		23
Retail loans:
Residential mortgage	—		—		—		1		(e)	1		—		2
Consumer:
Home equity	—		1		1		1		(e)	1		—		2
Total retail loans	—		1		1		2			2		—		4
Total loans	$	—	$	1	$	1	$	16		$	2	$	9	$	27
Six Months Ended June 30
Business loans:
Commercial	$	1	$	—	$	1	$	11		$	—	$	9	$	20
Commercial mortgage:
Commercial Real Estate business line (c)	—		—		—		21			—		—		21
Other business lines (d)	8		—		8		11			—		10		21
Total commercial mortgage	8		—		8		32			—		10		42
International	1		—		1		—			—		—		—
Total business loans	10		—		10		43			—		19		62
Retail loans:
Residential mortgage	—		—		—		1		(e)	1		—		2
Consumer:
Home equity	—		2		2		2		(e)	1		—		3
Other consumer	—		—		—		1		(e)	—		—		1
Total consumer	—		2		2		3			1		—		4
Total retail loans	—		2		2		4			2		—		6
Total loans	$	10	$	2	$	12	$	47		$	2	$	19	$	68


(a)	Primarily represents loan balances where terms were extended 90 days or more at or above contractual interest rates.


(b)	Loan restructurings whereby the original loan is restructured into two notes: an "A" note, which generally reflects the portion of the modified loan which is expected to be collected; and a "B" note, which is either fully charged off or exchanged for an equity interest.


(c)	Primarily loans to real estate developers.


(d)	Primarily loans secured by owner-occupied real estate.


(e)	Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt.

Troubled Debt Restructuring Subsequent Default

The following table presents information regarding the recorded balance at June 30, 2014 and 2013 of loans modified by principal deferral during the twelve months ended June 30, 2014 and 2013, and those principal deferrals which experienced a subsequent default during the three- and six-month periods ended June 30, 2014 and 2013. For principal deferrals, incremental deterioration in the credit quality of the loan, represented by a downgrade in the risk rating of the loan, for example, due to missed interest payments or a reduction of collateral value, is considered a subsequent default.



	2014							2013
(in millions)	Balance at June 30			Subsequent Default in the Three Months Ended June 30		Subsequent Default in the Six Months Ended June 30		Balance at June 30			Subsequent Default in the Three Months Ended June 30		Subsequent Default in the Six Months Ended June 30
Principal deferrals:
Business loans:
Commercial	$	12		$	—	$	2	$	14		$	11	$	12
Real estate construction:
Commercial Real Estate business line (a)	—			—		—		1			—		—
Commercial mortgage:
Commercial Real Estate business line (a)	17			—		—		27			—		16
Other business lines (b)	11			—		—		19			4		7
Total commercial mortgage	28			—		—		46			4		23
International	1			—		—		—			—		—
Total business loans	41			—		2		61			15		35
Retail loans:
Residential mortgage	2		(c)	—		—		5		(c)	—		—
Consumer:
Home equity	4		(c)	—		—		5		(c)	—		—
Other consumer	1		(c)	—		—		2		(c)	—		—
Total consumer	5			—		—		7			—		—
Total retail loans	7			—		—		12			—		—
Total principal deferrals	$	48		$	—	$	2	$	73		$	15	$	35


(a)	Primarily loans to real estate developers.


(b)	Primarily loans secured by owner-occupied real estate.


(c)	Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt.

Acquired Purchased Credit-Impaired Loans

The carrying amount of acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at June 30, 2014 and December 31, 2013 were as follows.



(in millions)	June 30, 2014		December 31, 2013
Acquired PCI loans:
Carrying amount	$	3	$	5
Outstanding balance (principal and unpaid interest)	18		46

Accretable Yield For Acquired Purchased Credit-Impaired Loans

Changes in the accretable yield for acquired PCI loans for the three- and six-month periods ended June 30, 2014 and 2013 were as follows.



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2014			2013			2014			2013
Balance at beginning of period	$	11		$	12		$	15		$	16
Reclassifications from nonaccretable	4			—			9			—
Accretion	(9		)	(2		)	(18		)	(6		)
Balance at end of period	$	6		$	10		$	6		$	10