Credit Quality And Allowance For Credit Losses (Tables)
|
9 Months Ended |
Sep. 30, 2016 |
|---|
| Credit Quality And Allowance For Credit Losses [Abstract] |
|
| Aging Analysis Of Loans |
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 | | Total Loans | September 30, 2016 | | | | | | | | | | | | | | Business loans: | | | | | | | | | | | | | | Commercial | $ | 68 |
| | $ | 17 |
| | $ | 21 |
| | $ | 106 |
| | $ | 508 |
| | $ | 30,538 |
| | $ | 31,152 |
| Real estate construction: | | | | | | | | | | | | | | Commercial Real Estate business line (a) | 12 |
| | — |
| | — |
| | 12 |
| | — |
| | 2,370 |
| | 2,382 |
| Other business lines (b) | 11 |
| | — |
| | — |
| | 11 |
| | — |
| | 350 |
| | 361 |
| Total real estate construction | 23 |
| | — |
| | — |
| | 23 |
| | — |
| | 2,720 |
| | 2,743 |
| Commercial mortgage: | | | | | | | | | | | | | | Commercial Real Estate business line (a) | 5 |
| | 1 |
| | — |
| | 6 |
| | 8 |
| | 2,171 |
| | 2,185 |
| Other business lines (b) | 15 |
| | 8 |
| | 6 |
| | 29 |
| | 36 |
| | 6,763 |
| | 6,828 |
| Total commercial mortgage | 20 |
| | 9 |
| | 6 |
| | 35 |
| | 44 |
| | 8,934 |
| | 9,013 |
| Lease financing | — |
| | — |
| | — |
| | — |
| | 6 |
| | 642 |
| | 648 |
| International | 1 |
| | — |
| | — |
| | 1 |
| | 19 |
| | 1,283 |
| | 1,303 |
| Total business loans | 112 |
| | 26 |
| | 27 |
| | 165 |
| | 577 |
| | 44,117 |
| | 44,859 |
| Retail loans: | | | | | | | | | | | | | | Residential mortgage | 13 |
| | 1 |
| | 9 |
| | 23 |
| | 23 |
| | 1,828 |
| | 1,874 |
| Consumer: | | | | | | | | | | | | | | Home equity | 6 |
| | 2 |
| | — |
| | 8 |
| | 27 |
| | 1,757 |
| | 1,792 |
| Other consumer | 1 |
| | — |
| | 12 |
| | 13 |
| | 4 |
| | 732 |
| | 749 |
| Total consumer | 7 |
| | 2 |
| | 12 |
| | 21 |
| | 31 |
| | 2,489 |
| | 2,541 |
| Total retail loans | 20 |
| | 3 |
| | 21 |
| | 44 |
| | 54 |
| | 4,317 |
| | 4,415 |
| Total loans | $ | 132 |
| | $ | 29 |
| | $ | 48 |
| | $ | 209 |
| | $ | 631 |
| | $ | 48,434 |
| | $ | 49,274 |
| December 31, 2015 | | | | | | | | | | | | | | Business loans: | | | | | | | | | | | | | | Commercial | $ | 46 |
| | $ | 12 |
| | $ | 13 |
| | $ | 71 |
| | $ | 238 |
| | $ | 31,350 |
| | $ | 31,659 |
| Real estate construction: | | | | | | | | | | | | | | Commercial Real Estate business line (a) | 5 |
| | — |
| | — |
| | 5 |
| | — |
| | 1,676 |
| | 1,681 |
| Other business lines (b) | 3 |
| | — |
| | — |
| | 3 |
| | 1 |
| | 316 |
| | 320 |
| Total real estate construction | 8 |
| | — |
| | — |
| | 8 |
| | 1 |
| | 1,992 |
| | 2,001 |
| Commercial mortgage: | | | | | | | | | | | | | | Commercial Real Estate business line (a) | 7 |
| | — |
| | 1 |
| | 8 |
| | 16 |
| | 2,080 |
| | 2,104 |
| Other business lines (b) | 7 |
| | 5 |
| | 3 |
| | 15 |
| | 44 |
| | 6,814 |
| | 6,873 |
| Total commercial mortgage | 14 |
| | 5 |
| | 4 |
| | 23 |
| | 60 |
| | 8,894 |
| | 8,977 |
| Lease financing | — |
| | — |
| | — |
| | — |
| | 6 |
| | 718 |
| | 724 |
| International | 2 |
| | — |
| | — |
| | 2 |
| | 8 |
| | 1,358 |
| | 1,368 |
| Total business loans | 70 |
| | 17 |
| | 17 |
| | 104 |
| | 313 |
| | 44,312 |
| | 44,729 |
| Retail loans: | | | | | | | | | | | | | | Residential mortgage | 26 |
| | 1 |
| | — |
| | 27 |
| | 27 |
| | 1,816 |
| | 1,870 |
| Consumer: | | | | | | | | | | | | | | Home equity | 5 |
| | 3 |
| | — |
| | 8 |
| | 27 |
| | 1,685 |
| | 1,720 |
| Other consumer | 7 |
| | — |
| | — |
| | 7 |
| | — |
| | 758 |
| | 765 |
| Total consumer | 12 |
| | 3 |
| | — |
| | 15 |
| | 27 |
| | 2,443 |
| | 2,485 |
| Total retail loans | 38 |
| | 4 |
| | — |
| | 42 |
| | 54 |
| | 4,259 |
| | 4,355 |
| Total loans | $ | 108 |
| | $ | 21 |
| | $ | 17 |
| | $ | 146 |
| | $ | 367 |
| | $ | 48,571 |
| | $ | 49,084 |
|
| | (a) | Primarily loans to real estate developers. |
| | (b) | Primarily loans secured by owner-occupied real estate. |
|
| 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 | September 30, 2016 | | | | | | | | | | Business loans: | | | | | | | | | | Commercial | $ | 28,406 |
| | $ | 965 |
| | $ | 1,273 |
| | $ | 508 |
| | $ | 31,152 |
| Real estate construction: | | | | | | | | | | Commercial Real Estate business line (e) | 2,382 |
| | — |
| | — |
| | — |
| | 2,382 |
| Other business lines (f) | 358 |
| | 3 |
| | — |
| | — |
| | 361 |
| Total real estate construction | 2,740 |
| | 3 |
| | — |
| | — |
| | 2,743 |
| Commercial mortgage: | | | | | | | | | | Commercial Real Estate business line (e) | 2,141 |
| | 16 |
| | 20 |
| | 8 |
| | 2,185 |
| Other business lines (f) | 6,529 |
| | 136 |
| | 127 |
| | 36 |
| | 6,828 |
| Total commercial mortgage | 8,670 |
| | 152 |
| | 147 |
| | 44 |
| | 9,013 |
| Lease financing | 625 |
| | 11 |
| | 6 |
| | 6 |
| | 648 |
| International | 1,230 |
| | 20 |
| | 34 |
| | 19 |
| | 1,303 |
| Total business loans | 41,671 |
| | 1,151 |
| | 1,460 |
| | 577 |
| | 44,859 |
| Retail loans: | | | | | | | | | | Residential mortgage | 1,838 |
| | 3 |
| | 10 |
| | 23 |
| | 1,874 |
| Consumer: | | | | | | | | | | Home equity | 1,760 |
| | 2 |
| | 3 |
| | 27 |
| | 1,792 |
| Other consumer | 744 |
| | 1 |
| | — |
| | 4 |
| | 749 |
| Total consumer | 2,504 |
| | 3 |
| | 3 |
| | 31 |
| | 2,541 |
| Total retail loans | 4,342 |
| | 6 |
| | 13 |
| | 54 |
| | 4,415 |
| Total loans | $ | 46,013 |
| | $ | 1,157 |
| | $ | 1,473 |
| | $ | 631 |
| | $ | 49,274 |
| December 31, 2015 | | | | | | | | | | Business loans: | | | | | | | | | | Commercial | $ | 29,117 |
| | $ | 1,293 |
| | $ | 1,011 |
| | $ | 238 |
| | $ | 31,659 |
| Real estate construction: | | | | | | | | | | Commercial Real Estate business line (e) | 1,681 |
| | — |
| | — |
| | — |
| | 1,681 |
| Other business lines (f) | 318 |
| | 1 |
| | — |
| | 1 |
| | 320 |
| Total real estate construction | 1,999 |
| | 1 |
| | — |
| | 1 |
| | 2,001 |
| Commercial mortgage: | | | | | | | | | | Commercial Real Estate business line (e) | 2,031 |
| | 31 |
| | 26 |
| | 16 |
| | 2,104 |
| Other business lines (f) | 6,536 |
| | 172 |
| | 121 |
| | 44 |
| | 6,873 |
| Total commercial mortgage | 8,567 |
| | 203 |
| | 147 |
| | 60 |
| | 8,977 |
| Lease financing | 693 |
| | 17 |
| | 8 |
| | 6 |
| | 724 |
| International | 1,245 |
| | 59 |
| | 56 |
| | 8 |
| | 1,368 |
| Total business loans | 41,621 |
| | 1,573 |
| | 1,222 |
| | 313 |
| | 44,729 |
| Retail loans: | | | | | | | | | | Residential mortgage | 1,828 |
| | 2 |
| | 13 |
| | 27 |
| | 1,870 |
| Consumer: | | | | | | | | | | Home equity | 1,687 |
| | 1 |
| | 5 |
| | 27 |
| | 1,720 |
| Other consumer | 755 |
| | 3 |
| | 7 |
| | — |
| | 765 |
| Total consumer | 2,442 |
| | 4 |
| | 12 |
| | 27 |
| | 2,485 |
| Total retail loans | 4,270 |
| | 6 |
| | 25 |
| | 54 |
| | 4,355 |
| Total loans | $ | 45,891 |
| | $ | 1,579 |
| | $ | 1,247 |
| | $ | 367 |
| | $ | 49,084 |
|
| | (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. 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 2015 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) | September 30, 2016 | | December 31, 2015 | Nonaccrual loans | $ | 631 |
| | $ | 367 |
| Reduced-rate loans (a) | 8 |
| | 12 |
| Total nonperforming loans | 639 |
| | 379 |
| Foreclosed property (b) | 21 |
| | 12 |
| Total nonperforming assets | $ | 660 |
| | $ | 391 |
|
| | (a) | There were no reduced-rate business loans at both September 30, 2016 and December 31, 2015. Reduced-rate retail loans were $8 million and $12 million at September 30, 2016 and December 31, 2015, respectively. |
| | (b) | Included $5 million and $9 million of foreclosed residential real estate properties at September 30, 2016 and December 31, 2015, 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. | | | | | | | | | | | | | | | | | | | | | | | | | | 2016 | | 2015 | (in millions) | Business Loans | | Retail Loans | | Total | | Business Loans | | Retail Loans | | Total | | | | | | | | | | | | | Three Months Ended September 30 | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | Balance at beginning of period | $ | 682 |
| | $ | 47 |
| | $ | 729 |
| | $ | 563 |
| | $ | 55 |
| | $ | 618 |
| Loan charge-offs | (34 | ) | | (1 | ) | | (35 | ) | | (31 | ) | | (3 | ) | | (34 | ) | Recoveries on loans previously charged-off | 18 |
| | 1 |
| | 19 |
| | 10 |
| | 1 |
| | 11 |
| Net loan charge-offs | (16 | ) | | — |
| | (16 | ) | | (21 | ) | | (2 | ) | | (23 | ) | Provision for loan losses | 12 |
| | 2 |
| | 14 |
| | 25 |
| | 3 |
| | 28 |
| Foreign currency translation adjustment | — |
| | — |
| | — |
| | (1 | ) | | — |
| | (1 | ) | Balance at end of period | $ | 678 |
| | $ | 49 |
| | $ | 727 |
| | $ | 566 |
| | $ | 56 |
| | $ | 622 |
| | | | | | | | | | | | | Nine Months Ended September 30 | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | Balance at beginning of period | $ | 579 |
| | $ | 55 |
| | $ | 634 |
| | $ | 534 |
| | $ | 60 |
| | $ | 594 |
| Loan charge-offs | (161 | ) | | (5 | ) | | (166 | ) | | (83 | ) | | (9 | ) | | (92 | ) | Recoveries on loans previously charged-off | 53 |
| | 3 |
| | 56 |
| | 38 |
| | 5 |
| | 43 |
| Net loan charge-offs | (108 | ) | | (2 | ) | | (110 | ) | | (45 | ) | | (4 | ) | | (49 | ) | Provision for loan losses | 206 |
| | (4 | ) | | 202 |
| | 79 |
| | — |
| | 79 |
| Foreign currency translation adjustment | 1 |
| | — |
| | 1 |
| | (2 | ) | | — |
| | (2 | ) | Balance at end of period | $ | 678 |
| | $ | 49 |
| | $ | 727 |
| | $ | 566 |
| | $ | 56 |
| | $ | 622 |
| | | | | | | | | | | | | As a percentage of total loans | 1.51 | % | | 1.10 | % | | 1.48 | % | | 1.27 | % | | 1.29 | % | | 1.27 | % | | | | | | | | | | | | | September 30 | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | Individually evaluated for impairment | $ | 115 |
| | $ | 1 |
| | $ | 116 |
| | $ | 47 |
| | $ | — |
| | $ | 47 |
| Collectively evaluated for impairment | 563 |
| | 48 |
| | 611 |
| | 519 |
| | 56 |
| | 575 |
| Total allowance for loan losses | $ | 678 |
| | $ | 49 |
| | $ | 727 |
| | $ | 566 |
| | $ | 56 |
| | $ | 622 |
| Loans: | | | | | | | | | | | | Individually evaluated for impairment | $ | 677 |
| | $ | 29 |
| | $ | 706 |
| | $ | 338 |
| | $ | 51 |
| | $ | 389 |
| Collectively evaluated for impairment | 44,182 |
| | 4,386 |
| | 48,568 |
| | 44,233 |
| | 4,318 |
| | 48,551 |
| Purchased credit impaired (PCI) loans (a) | — |
| | — |
| | — |
| | — |
| | 2 |
| | 2 |
| Total loans evaluated for impairment | $ | 44,859 |
| | $ | 4,415 |
| | $ | 49,274 |
| | $ | 44,571 |
| | $ | 4,371 |
| | $ | 48,942 |
|
| | (a) | No allowance for loan losses was required for PCI loans at September 30, 2015. |
|
| 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 September 30, | | Nine Months Ended September 30, | (in millions) | 2016 | | 2015 | | 2016 | | 2015 | Balance at beginning of period | $ | 43 |
| | $ | 50 |
| | $ | 45 |
| | $ | 41 |
| Charge-offs on lending related commitments (a) | — |
| | — |
| | (11 | ) | | (1 | ) | Provision for credit losses on lending-related commitments | 2 |
| | (2 | ) | | 11 |
| | 8 |
| Balance at end of period | $ | 45 |
| | $ | 48 |
| | $ | 45 |
| | $ | 48 |
|
(a) Charge-offs result from the sale of unfunded lending-related commitments. |
| 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 | September 30, 2016 | | | | | | | | | | Business loans: | | | | | | | | | | Commercial | $ | 141 |
| | $ | 482 |
| | $ | 623 |
| | $ | 704 |
| | $ | 106 |
| Commercial mortgage: | | | | | | | | | | Commercial Real Estate business line (a) | — |
| | 6 |
| | 6 |
| | 15 |
| | 1 |
| Other business lines (b) | 4 |
| | 25 |
| | 29 |
| | 43 |
| | 3 |
| Total commercial mortgage | 4 |
| | 31 |
| | 35 |
| | 58 |
| | 4 |
| International | 3 |
| | 16 |
| | 19 |
| | 26 |
| | 5 |
| Total business loans | 148 |
| | 529 |
| | 677 |
| | 788 |
| | 115 |
| Retail loans: | | | | | | | | | | Residential mortgage | 12 |
| | — |
| | 12 |
| | 13 |
| | — |
| Consumer: | | | | | | | | | | Home equity | 12 |
| | — |
| | 12 |
| | 16 |
| | — |
| Other consumer | 2 |
| | 3 |
| | 5 |
| | 6 |
| | 1 |
| Total consumer | 14 |
| | 3 |
| | 17 |
| | 22 |
| | 1 |
| Total retail loans (c) | 26 |
| | 3 |
| | 29 |
| | 35 |
| | 1 |
| Total individually evaluated impaired loans | $ | 174 |
| | $ | 532 |
| | $ | 706 |
| | $ | 823 |
| | $ | 116 |
| December 31, 2015 | | | | | | | | | | Business loans: | | | | | | | | | | Commercial | $ | 82 |
| | $ | 252 |
| | $ | 334 |
| | $ | 398 |
| | $ | 45 |
| Commercial mortgage: | | | | | | | | | | Commercial Real Estate business line (a) | 7 |
| | 8 |
| | 15 |
| | 38 |
| | 1 |
| Other business lines (b) | 2 |
| | 32 |
| | 34 |
| | 55 |
| | 5 |
| Total commercial mortgage | 9 |
| | 40 |
| | 49 |
| | 93 |
| | 6 |
| International | — |
| | 10 |
| | 10 |
| | 17 |
| | 2 |
| Total business loans | 91 |
| | 302 |
| | 393 |
| | 508 |
| | 53 |
| Retail loans: | | | | | | | | | | Residential mortgage | 13 |
| | — |
| | 13 |
| | 13 |
| | — |
| Consumer: | | | | | | | | | | Home equity | 12 |
| | — |
| | 12 |
| | 16 |
| | — |
| Other consumer | 6 |
| | — |
| | 6 |
| | 10 |
| | — |
| Total consumer | 18 |
| | — |
| | 18 |
| | 26 |
| | — |
| Total retail loans (c) | 31 |
| | — |
| | 31 |
| | 39 |
| | — |
| Total individually evaluated impaired loans | $ | 122 |
| | $ | 302 |
| | $ | 424 |
| | $ | 547 |
| | $ | 53 |
|
| | (a) | Primarily loans to real estate developers. |
| | (b) | Primarily loans secured by owner-occupied real estate. |
| | (c) | Individually evaluated retail loans generally have no related allowance for loan losses, primarily due to policy which results in direct write-downs of most 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 performing restructured loans. | | | | | | | | | | | | | | | | | | Individually Evaluated Impaired Loans | | 2016 | | 2015 | (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 September 30 | | | | | | | | Business loans: | | | | | | | | Commercial | $ | 606 |
| | $ | 2 |
| | $ | 236 |
| | $ | 1 |
| Commercial mortgage: | | | | | | | | Commercial Real Estate business line (a) | 7 |
| | — |
| | 15 |
| | — |
| Other business lines (b) | 30 |
| | — |
| | 37 |
| | 1 |
| Total commercial mortgage | 37 |
| | — |
| | 52 |
| | 1 |
| International | 19 |
| | — |
| | 10 |
| | — |
| Total business loans | 662 |
| | 2 |
| | 298 |
| | 2 |
| Retail loans: | | | | | | | | Residential mortgage | 11 |
| | — |
| | 23 |
| | — |
| Consumer loans: | | | | | | | | Home equity | 12 |
| | — |
| | 12 |
| | — |
| Other consumer | 4 |
| | — |
| | 7 |
| | — |
| Total consumer | 16 |
| | — |
| | 19 |
| | — |
| Total retail loans | 27 |
| | — |
| | 42 |
| | — |
| Total individually evaluated impaired loans | $ | 689 |
| | $ | 2 |
| | $ | 340 |
| | $ | 2 |
| Nine Months Ended September 30 | | | | | | | | Business loans: | | | | | | | | Commercial | $ | 559 |
| | $ | 8 |
| | $ | 172 |
| | $ | 3 |
| Commercial mortgage: | | | | | | | | Commercial Real Estate business line (a) | 9 |
| | — |
| | 17 |
| | — |
| Other business lines (b) | 31 |
| | — |
| | 41 |
| | 1 |
| Total commercial mortgage | 40 |
| | — |
| | 58 |
| | 1 |
| International | 19 |
| | — |
| | 5 |
| | — |
| Total business loans | 618 |
| | 8 |
| | 235 |
| | 4 |
| Retail loans: | | | | | | | | Residential mortgage | 12 |
| | — |
| | 23 |
| | — |
| Consumer: | | | | | | | | Home equity | 12 |
| | — |
| | 12 |
| | — |
| Other consumer | 4 |
| | — |
| | 6 |
| | — |
| Total consumer | 16 |
| | — |
| | 18 |
| | — |
| Total retail loans | 28 |
| | — |
| | 41 |
| | — |
| Total individually evaluated impaired loans | $ | 646 |
| | $ | 8 |
| | $ | 276 |
| | $ | 4 |
|
| | (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 September 30, 2016 and 2015 of loans considered to be troubled debt restructurings (TDRs) that were restructured during the three- and nine-month periods ended September 30, 2016 and 2015, 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2016 | | 2015 | | Type of Modification | | | Type of Modification | | (in millions) | Principal Deferrals (a) | Interest Rate Reductions | AB Note Restructures (b) | Total Modifications | | Principal Deferrals (a) | Interest Rate Reductions | Total Modifications | Three Months Ended September 30 | | | | | | | | | | | | | Business loans: | | | | | | | | | | | | | Commercial | $ | 70 |
| | $ | — |
| | $ | 40 |
| $ | 110 |
| | $ | 100 |
| | $ | — |
| | $ | 100 |
| Commercial mortgage: | | | | | | | | | | | | | Commercial Real Estate business line (c) | — |
| | — |
| | — |
| — |
| | 7 |
| | — |
| | 7 |
| Other business lines (d) | — |
| | — |
| | — |
| — |
| | 3 |
| | — |
| | 3 |
| Total commercial mortgage | — |
| | — |
| | — |
| — |
| | 10 |
| | — |
| | 10 |
| International | — |
| | — |
| | — |
| — |
| | 2 |
| | — |
| | 2 |
| Total business loans | 70 |
| | — |
| | 40 |
| 110 |
| | 112 |
| | — |
| | 112 |
| Retail loans: | | | | | | | | | | | | | Residential mortgage | — |
| | — |
| | — |
| — |
| | 18 |
|
| — |
| | 18 |
| Consumer: | | | | | | | | | | | | | Home equity | — |
|
| — |
| | — |
| — |
| | 1 |
| | 1 |
| | 2 |
| Total retail loans | — |
| | — |
| | — |
| — |
| | 19 |
| | 1 |
| | 20 |
| Total loans | $ | 70 |
| | $ | — |
| | $ | 40 |
| $ | 110 |
| | $ | 131 |
| | $ | 1 |
| | $ | 132 |
| Nine Months Ended September 30 | | | | | | | | | | | | | Business loans: | | | | | | | | | | | | | Commercial | $ | 150 |
| | $ | — |
| | $ | 49 |
| $ | 199 |
| | $ | 102 |
| | $ | — |
| | $ | 102 |
| Commercial mortgage: | | | | | | | | | | | | | Commercial Real Estate business line (c) | — |
| | — |
| | — |
| — |
| | 9 |
| | — |
| | 9 |
| Other business lines (d) | 2 |
| | — |
| | — |
| 2 |
| | 7 |
| | — |
| | 7 |
| Total commercial mortgage | 2 |
| | — |
| | — |
| 2 |
| | 16 |
| | — |
| | 16 |
| International | — |
| | — |
| | 3 |
| 3 |
| | 2 |
| | — |
| | 2 |
| Total business loans | 152 |
| | — |
| | 52 |
| 204 |
| | 120 |
| | — |
| | 120 |
| Retail loans: | | | | | | | | | | | | | Residential mortgage | — |
| | — |
| | — |
| — |
| | 18 |
| | — |
| | 18 |
| Consumer: | | | | | | | | | | | | | Home equity | 1 |
| | 1 |
| | — |
| 2 |
| | 1 |
| | 1 |
| | 2 |
| Total retail loans | 1 |
| | 1 |
| | — |
| 2 |
|
| 19 |
| | 1 |
| | 20 |
| Total loans | $ | 153 |
| | $ | 1 |
| | $ | 52 |
| $ | 206 |
| | $ | 139 |
| | $ | 1 |
| | $ | 140 |
|
| | (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 generally fully charged off. |
| | (c) | Primarily loans to real estate developers. |
| | (d) | Primarily loans secured by owner-occupied real estate. |
|
| Troubled Debt Restructuring Subsequent Default |
The following table presents information regarding the recorded balance at September 30, 2016 and 2015 of loans modified by principal deferral during the twelve-month periods ended September 30, 2016 and 2015, and those principal deferrals which experienced a subsequent default during the three- and nine-month periods ended September 30, 2016 and 2015. 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. | | | | | | | | | | | | | | | | | | | | | | | | 2016 | | 2015 | (in millions) | Balance at September 30 | Subsequent Default in the Three Months Ended September 30 | Subsequent Default in the Nine Months Ended September 30 | | Balance at September 30 | Subsequent Default in the Three Months Ended September 30 | Subsequent Default in the Nine Months Ended September 30 | Principal deferrals: | | | | | | | | | | Business loans: | | | | | | | | | | Commercial | $ | 229 |
| | $ | — |
| $ | 13 |
| | $ | 108 |
| | $ | 1 |
| $ | 3 |
| Commercial mortgage: | | | | | | | | | | Commercial Real Estate business line (a) | — |
| | — |
| — |
| | 9 |
| | — |
| — |
| Other business lines (b) | 4 |
| | — |
| 1 |
| | 7 |
| | — |
| 1 |
| Total commercial mortgage | 4 |
| | — |
| 1 |
| | 16 |
| | — |
| 1 |
| International | — |
| | — |
| — |
| | 2 |
| | — |
| — |
| Total business loans | 233 |
| | — |
| 14 |
| | 126 |
| | 1 |
| 4 |
| Retail loans: | | | | | | | | | | Residential mortgage | — |
| | — |
| — |
| | 18 |
| (c) | — |
| — |
| Consumer: | | | | | | | | | | Home equity | 1 |
| (c) | — |
| — |
| | 1 |
| (c) | — |
| — |
| Total retail loans | 1 |
| | — |
| — |
| | 19 |
| | — |
| — |
| Total principal deferrals | $ | 234 |
| | $ | — |
| $ | 14 |
| | $ | 145 |
| | $ | 1 |
| $ | 4 |
|
| | (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. |
|