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Credit Quality And Allowance For Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2019
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
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
58

 
$
16

 
$
19

 
$
93

 
$
114

 
$
31,800

 
$
32,007

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (a)
—

 
—

 
—

 
—

 
—

 
2,888

 
2,888

Other business lines (b)
6

 
—

 
—

 
6

 
—

 
397

 
403

Total real estate construction
6

 
—

 
—

 
6

 
—

 
3,285

 
3,291

Commercial mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (a)
4

 
—

 
—

 
4

 
2

 
1,733

 
1,739

Other business lines (b)
14

 
8

 
5

 
27

 
14

 
7,209

 
7,250

Total commercial mortgage
18

 
8

 
5

 
31

 
16

 
8,942

 
8,989

Lease financing
—

 
—

 
—

 
—

 
2

 
533

 
535

International
15

 
—

 
—

 
15

 
3

 
1,022

 
1,040

Total business loans
97

 
24

 
24

 
145

 
135

 
45,582

 
45,862

Retail loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
19

 
2

 
—

 
21

 
37

 
1,891

 
1,949

Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
Home equity
3

 
1

 
—

 
4

 
19

 
1,740

 
1,763

Other consumer
1

 
—

 
—

 
1

 
—

 
727

 
728

Total consumer
4

 
1

 
—

 
5

 
19

 
2,467

 
2,491

Total retail loans
23

 
3

 
—

 
26

 
56

 
4,358

 
4,440

Total loans
$
120

 
$
27

 
$
24

 
$
171

 
$
191

 
$
49,940

 
$
50,302

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
34

 
$
26

 
$
8

 
$
68

 
$
141

 
$
31,767

 
$
31,976

Real estate construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (a)
6

 
—

 
—

 
6

 
—

 
2,681

 
2,687

Other business lines (b)
6

 
—

 
—

 
6

 
—

 
384

 
390

Total real estate construction
12

 
—

 
—

 
12

 
—

 
3,065

 
3,077

Commercial mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (a)
4

 
—

 
—

 
4

 
2

 
1,737

 
1,743

Other business lines (b)
32

 
5

 
8

 
45

 
18

 
7,300

 
7,363

Total commercial mortgage
36

 
5

 
8

 
49

 
20

 
9,037

 
9,106

Lease financing
—

 
—

 
—

 
—

 
2

 
505

 
507

International
—

 
—

 
—

 
—

 
3

 
1,010

 
1,013

Total business loans
82

 
31

 
16

 
129

 
166

 
45,384

 
45,679

Retail loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
11

 
3

 
—

 
14

 
36

 
1,920

 
1,970

Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
Home equity
4

 
1

 
—

 
5

 
19

 
1,741

 
1,765

Other consumer
1

 
—

 
—

 
1

 
—

 
748

 
749

Total consumer
5

 
1

 
—

 
6

 
19

 
2,489

 
2,514

Total retail loans
16

 
4

 
—

 
20

 
55

 
4,409

 
4,484

Total loans
$
98

 
$
35

 
$
16

 
$
149

 
$
221

 
$
49,793

 
$
50,163

(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
March 31, 2019
 
 
 
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
 
 
Commercial
$
30,669

 
$
590

 
$
634

 
$
114

 
$
32,007

Real estate construction:
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (e)
2,865

 
23

 
—

 
—

 
2,888

Other business lines (f)
399

 
4

 
—

 
—

 
403

Total real estate construction
3,264

 
27

 
—

 
—

 
3,291

Commercial mortgage:
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (e)
1,678

 
14

 
45

 
2

 
1,739

Other business lines (f)
7,003

 
157

 
76

 
14

 
7,250

Total commercial mortgage
8,681

 
171

 
121

 
16

 
8,989

Lease financing
522

 
9

 
2

 
2

 
535

International
986

 
38

 
13

 
3

 
1,040

Total business loans
44,122

 
835

 
770

 
135

 
45,862

Retail loans:
 
 
 
 
 
 
 
 
 
Residential mortgage
1,911

 
1

 
—

 
37

 
1,949

Consumer:
 
 
 
 
 
 
 
 
 
Home equity
1,736

 
—

 
8

 
19

 
1,763

Other consumer
727

 
1

 
—

 
—

 
728

Total consumer
2,463

 
1

 
8

 
19

 
2,491

Total retail loans
4,374

 
2

 
8

 
56

 
4,440

Total loans
$
48,496

 
$
837

 
$
778

 
$
191

 
$
50,302

December 31, 2018
 
 
 
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
 
 
Commercial
$
30,817

 
$
464

 
$
554

 
$
141

 
$
31,976

Real estate construction:
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (e)
2,664

 
23

 
—

 
—

 
2,687

Other business lines (f)
382

 
8

 
—

 
—

 
390

Total real estate construction
3,046

 
31

 
—

 
—

 
3,077

Commercial mortgage:
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (e)
1,682

 
14

 
45

 
2

 
1,743

Other business lines (f)
7,157

 
118

 
70

 
18

 
7,363

Total commercial mortgage
8,839

 
132

 
115

 
20

 
9,106

Lease financing
500

 
3

 
2

 
2

 
507

International
996

 
4

 
10

 
3

 
1,013

Total business loans
44,198

 
634

 
681

 
166

 
45,679

Retail loans:
 
 
 
 
 
 
 
 
 
Residential mortgage
1,931

 
3

 
—

 
36

 
1,970

Consumer:
 
 
 
 
 
 
 
 
 
Home equity
1,738

 
—

 
8

 
19

 
1,765

Other consumer
748

 
1

 
—

 
—

 
749

Total consumer
2,486

 
1

 
8

 
19

 
2,514

Total retail loans
4,417

 
4

 
8

 
55

 
4,484

Total loans
$
48,615

 
$
638

 
$
689

 
$
221

 
$
50,163

(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. This category is generally consistent with the "special mention" category as defined by regulatory authorities.
(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 pages F-52 and F-53 in the Corporation's 2018 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)
March 31, 2019
 
December 31, 2018
Nonaccrual loans
$
191

 
$
221

Reduced-rate loans (a)
7

 
8

Total nonperforming loans
198

 
229

Foreclosed property (b)
1

 
1

Total nonperforming assets
$
199

 
$
230

(a)
There were no reduced-rate business loans at both March 31, 2019 and December 31, 2018. Reduced-rate retail loans were $7 million and $8 million at March 31, 2019 and December 31, 2018, respectively.
(b)
There were no foreclosed residential real estate properties at both March 31, 2019 and December 31, 2018.
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.
 
2019
 
2018
(in millions)
Business Loans
 
Retail Loans
 
Total
 
Business Loans
 
Retail Loans
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
627

 
$
44

 
$
671

 
$
661

 
$
51

 
$
712

Loan charge-offs
(19
)
 
(1
)
 
(20
)
 
(36
)
 
(1
)
 
(37
)
Recoveries on loans previously charged-off
8

 
1

 
9

 
8

 
1

 
9

Net loan charge-offs
(11
)
 
—

 
(11
)
 
(28
)
 
—

 
(28
)
Provision for loan losses
(8
)
 
(5
)
 
(13
)
 
20

 
(6
)
 
14

Balance at end of period
$
608

 
$
39

 
$
647

 
$
653

 
$
45

 
$
698

As a percentage of total loans
1.33
%
 
0.88
%
 
1.29
%
 
1.46
%
 
0.99
%
 
1.42
%
 
 
 
 
 
 
 
 
 
 
 
 
March 31
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
35

 
$
—

 
$
35

 
$
42

 
$
—

 
$
42

Collectively evaluated for impairment
573

 
39

 
612

 
611

 
45

 
656

Total allowance for loan losses
$
608

 
$
39

 
$
647

 
$
653

 
$
45

 
$
698

Loans:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
202

 
$
34

 
$
236

 
$
384

 
$
31

 
$
415

Collectively evaluated for impairment
45,660

 
4,406

 
50,066

 
44,339

 
4,486

 
48,825

Total loans evaluated for impairment
$
45,862

 
$
4,440

 
$
50,302

 
$
44,723

 
$
4,517

 
$
49,240
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 March 31,
(in millions)
2019
 
2018
Balance at beginning of period
$
30

 
$
42

Provision for credit losses on lending-related commitments
—

 
(2
)
Balance at end of period
$
30

 
$
40
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
March 31, 2019
 
 
 
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
 
 
Commercial
$
30

 
$
114

 
$
144

 
$
194

 
$
33

Commercial mortgage:
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (a)
39

 
—

 
39

 
49

 
—

Other business lines (b)
2

 
13

 
15

 
20

 
2

Total commercial mortgage
41

 
13

 
54

 
69

 
2

Lease financing
—

 
1

 
1

 
1

 
—

International
2

 
1

 
3

 
9

 
—

Total business loans
73

 
129

 
202

 
273

 
35

Retail loans:
 
 
 
 
 
 
 
 
 
Residential mortgage
16

 
8

 
24

 
25

 
—

Consumer:
 
 
 
 
 
 
 
 
 
Home equity
9

 
—

 
9

 
11

 
—

Other consumer
1

 
—

 
1

 
1

 
—

Total consumer
10

 
—

 
10

 
12

 
—

Total retail loans (c)
26

 
8

 
34

 
37

 
—

Total individually evaluated impaired loans
$
99

 
$
137

 
$
236

 
$
310

 
$
35

December 31, 2018
 
 
 
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
 
 
Commercial
$
50

 
$
130

 
$
180

 
$
227

 
$
24

Commercial mortgage:
 
 
 
 
 
 
 
 
 
Commercial Real Estate business line (a)
39

 
—

 
39

 
49

 
—

Other business lines (b)
2

 
16

 
18

 
23

 
3

Total commercial mortgage
41

 
16

 
57

 
72

 
3

International
2

 
1

 
3

 
8

 
—

Total business loans
93

 
147

 
240

 
307

 
27

Retail loans:
 
 
 
 
 
 
 
 
 
Residential mortgage
16

 
8

 
24

 
25

 
—

Consumer:
 
 
 
 
 
 
 
 
 
Home equity
11

 
—

 
11

 
13

 
—

Other consumer
1

 
—

 
1

 
1

 
—

Total consumer
12

 
—

 
12

 
14

 
—

Total retail loans (c)
28

 
8

 
36

 
39

 
—

Total individually evaluated impaired loans
$
121

 
$
155

 
$
276

 
$
346

 
$
27

(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 as of March 31, 2019 and 2018. Interest income recognized for the period primarily related to performing restructured loans.
 
Individually Evaluated Impaired Loans
 
2019
 
2018
(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 March 31
 
 
 
 
 
 
 
Business loans:
 
 
 
 
 
 
 
Commercial
$
162

 
$
1

 
$
344

 
$
1

Commercial mortgage:
 
 
 
 
 
 
 
Commercial Real Estate business line (a)
39

 
1

 
40

 
1

Other business lines (b)
16

 
—

 
25

 
—

Total commercial mortgage
55

 
1

 
65

 
1

Lease financing
1

 
—

 
—

 
—

International
3

 
—

 
5

 
—

Total business loans
221

 
2

 
414

 
2

Retail loans:
 
 
 
 
 
 
 
Residential mortgage
24

 
—

 
20

 
—

Consumer loans:
 
 
 
 
 
 
 
Home equity
10

 
—

 
11

 
—

Other consumer
1

 
—

 
1

 
—

Total consumer
11

 
—

 
12

 
—

Total retail loans
35

 
—

 
32

 
—

Total individually evaluated impaired loans
$
256

 
$
2

 
$
446

 
$
2

(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 table details the recorded balance at March 31, 2019 and 2018 of loans considered to be troubled debt restructurings (TDRs) that were restructured during the three-month periods ended March 31, 2019 and 2018, all of which were principal deferrals.
 
Principal Deferrals (a)
(in millions)
2019
2018
Three Months Ended March 31,
 
 
 
Business loans:
 
 
 
Commercial
$
12

 
$
28

Commercial mortgage:
 
 
 
Other business lines (b)
1

 
1

Total business loans
13

 
29

Retail loans:
 
 
 
Consumer:
 
 
 
Home equity (c)
—

 
1

Total loans
$
13

 
$
30

(a)
Primarily represents loan balances where terms were extended 90 days or more at or above contractual interest rates.
(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.
Troubled Debt Restructuring Subsequent Default
The following table presents information regarding the recorded balance at March 31, 2019 and 2018 of loans modified by principal deferral during the twelve-month periods ended March 31, 2019 and 2018.
 
Principal Deferrals
(in millions)
2019
 
2018
March 31
 
 
 
Business loans:
 
 
 
Commercial
$
26

 
$
90

Commercial mortgage:
 
 
 
Commercial Real Estate business line (a)
—

 
37

Other business lines (b)
2

 
2

Total commercial mortgage
2

 
39

Total business loans
28

 
129

Retail loans:
 
 
 
Consumer:
 
 
 
Home equity (c)
1

 
2

Total loans
$
29

 
$
131

(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.