Credit Quality And Allowance For Credit Losses (Tables)

3 Months Ended

Mar. 31, 2020

Credit Quality And Allowance For Credit Losses [Abstract]

The following table presents an aging analysis of the amortized cost basis 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, 2020
Business loans:
Commercial	$	224	$	22	$	42	$	288	$	173	$	33,788	$	34,249
Real estate construction:
Commercial Real Estate business line (a)	4		1		—		5		—		3,341		3,346
Other business lines (b)	—		—		—		—		—		410		410
Total real estate construction	4		1		—		5		—		3,751		3,756
Commercial mortgage:
Commercial Real Estate business line (a)	1		—		8		9		3		2,167		2,179
Other business lines (b)	59		10		10		79		16		7,424		7,519
Total commercial mortgage	60		10		18		88		19		9,591		9,698
Lease financing	—		—		—		—		1		583		584
International	14		—		4		18		—		1,017		1,035
Total business loans	302		33		64		399		193		48,730		49,322

Retail loans:
Residential mortgage	37		3		—		40		20		1,761		1,821
Consumer:
Home equity	5		1		—		6		22		1,699		1,727
Other consumer	1		—		—		1		—		587		588
Total consumer	6		1		—		7		22		2,286		2,315
Total retail loans	43		4		—		47		42		4,047		4,136
Total loans	$	345	$	37	$	64	$	446	$	235	$	52,777	$	53,458
December 31, 2019
Business loans:
Commercial	$	27	$	7	$	17	$	51	$	148	$	31,274	$	31,473
Real estate construction:
Commercial Real Estate business line (a)	6		—		—		6		—		3,038		3,044
Other business lines (b)	—		7		—		7		—		404		411
Total real estate construction	6		7		—		13		—		3,442		3,455
Commercial mortgage:
Commercial Real Estate business line (a)	9		—		—		9		2		2,165		2,176
Other business lines (b)	16		18		9		43		12		7,328		7,383
Total commercial mortgage	25		18		9		52		14		9,493		9,559
Lease financing	1		—		—		1		—		587		588
International	—		5		—		5		—		1,004		1,009
Total business loans	59		37		26		122		162		45,800		46,084

Retail loans:
Residential mortgage	15		2		—		17		20		1,808		1,845
Consumer:
Home equity	4		5		—		9		17		1,685		1,711
Other consumer	2		3		—		5		—		724		729
Total consumer	6		8		—		14		17		2,409		2,440
Total retail loans	21		10		—		31		37		4,217		4,285
Total loans	$	80	$	47	$	26	$	153	$	199	$	50,017	$	50,369


(a)	Primarily loans to real estate developers.


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

Loans By Credit Quality Indicator and Vintage Year

The following table presents loans by credit quality indicator and vintage year. Credit quality indicator is 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. Vintage year is the year of origination or major modification.



	March 31, 2020																		December 31, 2019
	Vintage Year
(in millions)	2020		2019		2018		2017		2016		Prior		Revolvers		Revolvers Converted to Term		Total		Total
Business loans:
Commercial:
Pass (a)	$	634	$	2,829	$	2,069	$	1,386	$	636	$	1,143	$	23,528	$	13	$	32,238	$	29,785
Special Mention (b)	12		106		72		57		41		47		627		—		962		841
Substandard (c)	3		109		122		24		41		32		544		1		876		699
Nonaccrual (d)	2		11		3		20		10		53		72		2		173		148
Total commercial	651		3,055		2,266		1,487		728		1,275		24,771		16		34,249		31,473
Real estate construction
Pass (a)	98		709		1,140		812		527		220		217		—		3,723		3,424
Special Mention (b)	—		—		—		—		—		—		18		—		18		19
Substandard (c)	—		—		1		14		—		—		—		—		15		12
Total real estate construction	98		709		1,141		826		527		220		235		—		3,756		3,455
Commercial mortgage
Pass (a)	472		1,769		1,274		1,323		975		3,114		481		—		9,408		9,262
Special Mention (b)	6		46		18		13		27		50		5		—		165		159
Substandard (c)	2		7		—		11		8		78		—		—		106		124
Nonaccrual (d)	—		—		2		1		3		13		—		—		19		14
Total commercial mortgage	480		1,822		1,294		1,348		1,013		3,255		486		—		9,698		9,559
Lease financing
Pass (a)	37		147		89		58		18		219		—		—		568		579
Special Mention (b)	—		6		3		2		2		—		—		—		13		7
Substandard (c)	—		1		—		1		—		—		—		—		2		2
Nonaccrual (d)	1		—		—		—		—		—		—		—		1		—
Total lease financing	38		154		92		61		20		219		—		—		584		588
International
Pass (a)	228		185		161		34		1		74		306		—		989		972
Special Mention (b)	—		—		4		4		4		2		26		—		40		29
Substandard (c)	—		—		1		—		—		—		5		—		6		8
Total international	228		185		166		38		5		76		337		—		1,035		1,009
Total business loans	1,495		5,925		4,959		3,760		2,293		5,045		25,829		16		49,322		46,084

Table continues on the following page.



	March 31, 2020																		December 31, 2019
	Vintage Year
(in millions)	2020		2019		2018		2017		2016		Prior		Revolvers		Revolvers Converted to Term		Total		Total
Retail loans:
Residential mortgage
Pass (a)	136		260		170		340		285		606		—		—		1,797		1,823
Special Mention (b)	—		—		4		—		—		—		—		—		4		2
Nonaccrual (d)	—		—		1		1		2		16		—		—		20		20
Total residential mortgage	136		260		175		341		287		622		—		—		1,821		1,845
Consumer:
Home equity
Pass (a)	—		—		—		—		—		21		1,586		90		1,697		1,682
Special Mention (b)	—		—		—		—		—		—		1		—		1		1
Substandard (c)	—		—		—		—		—		—		4		3		7		11
Nonaccrual (d)	—		—		—		—		—		1		15		6		22		17
Total home equity	—		—		—		—		—		22		1,606		99		1,727		1,711
Other consumer
Pass (a)	6		89		28		10		11		64		373		—		581		722
Special Mention (b)	—		—		1		—		—		—		6		—		7		6
Substandard (c)	—		—		—		—		—		—		—		—		—		1
Total other consumer	6		89		29		10		11		64		379		—		588		729
Total consumer	6		89		29		10		11		86		1,985		99		2,315		2,440
Total retail loans	142		349		204		351		298		708		1,985		99		4,136		4,285
Total loans	$	1,637	$	6,274	$	5,163	$	4,111	$	2,591	$	5,753	$	27,814	$	115	$	53,458	$	50,369


(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 page F-51 in the Corporation's 2019 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.

Changes In The Allowance For Loan Losses

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



	2020									2019
(in millions)	Business Loans			Retail Loans			Total			Business Loans			Retail Loans			Total

Three Months Ended March 31
Balance at beginning of period	$	601		$	36		$	637		$	627		$	44		$	671
Cumulative effect of change in accounting principle	(42		)	25			(17		)	—			—			—

Loan charge-offs	(87		)	(2		)	(89		)	(19		)	(1		)	(20		)
Recoveries on loans previously charged-off	5			—			5			8			1			9
Net loan charge-offs	(82		)	(2		)	(84		)	(11		)	—			(11		)
Provision for loan losses	384			(4		)	380			(8		)	(5		)	(13		)
Balance at end of period	$	861		$	55		$	916		$	608		$	39		$	647

As a percentage of total loans	1.75		%	1.35		%	1.71		%	1.33		%	0.88		%	1.29		%

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)	2020		2019
Balance at beginning of period	$	31	$	30
Provision for credit losses on lending-related commitments	31		—
Balance at end of period	$	62	$	30

Nonaccrual Loans

The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans for the three months ended March 31, 2020 and 2019, respectively.



(in millions)	Nonaccrual Loans with No Related Allowance		Nonaccrual Loans with Related Allowance		Total Nonaccrual Loans
March 31, 2020
Business loans:
Commercial	$	25	$	148	$	173
Commercial mortgage:
Commercial Real Estate business line (a)	2		1		3
Other business lines (b)	3		13		16
Total commercial mortgage	5		14		19
Lease financing	—		1		1
Total business loans	30		163		193
Retail loans:
Residential mortgage	20		—		20
Consumer:
Home equity	22		—		22
Total retail loans	42		—		42
Total nonaccrual loans	$	72	$	163	$	235
December 31, 2019
Business loans:
Commercial	$	29	$	119	$	148
Commercial mortgage:
Commercial Real Estate business line (a)	2		—		2
Other business lines (b)	1		11		12
Total commercial mortgage	3		11		14
Total business loans	32		130		162
Retail loans:
Residential mortgage	20		—		20
Consumer:
Home equity	17		—		17
Total retail loans	37		—		37
Total nonaccrual loans	$	69	$	130	$	199


(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 amortized cost basis at March 31, 2020 and 2019 of loans considered to be troubled debt restructurings (TDRs) that were restructured during the three-month periods ended March 31, 2020 and 2019, 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.



	Principal Deferrals (a)
(in millions)	2020		2019
Three Months Ended March 31,
Business loans:
Commercial	$	22	$	12
Commercial mortgage:
Other business lines (b)	2		1
Total loans	$	24	$	13


(a)	Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy.

(b)

Primarily loans secured by owner-occupied real estate.

Troubled Debt Restructuring Subsequent Default

The following table presents information regarding the amortized cost basis at March 31, 2020 and 2019 of loans modified by principal deferral during the twelve-month periods ended March 31, 2020 and 2019.



	Principal Deferrals
(in millions)	2020		2019
March 31
Business loans:
Commercial	$	33	$	26
Commercial mortgage:
Other business lines (a)	2		2
Total business loans	35		28
Retail loans:
Consumer:
Home equity (b)	—		1
Total loans	$	35	$	29

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

(b)

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