Credit Quality and the Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2021

Receivables [Abstract]

Summary of Transactions in the ALLL

Allowance for Loan and Lease Losses

The following tables summarize transactions in the ALLL by portfolio segment:

For the three months ended March 31, 2021 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
Balance, beginning of period	$	1,456	294	703	2,453
Losses charged off(a)	(35)		(1)	(73)	(109)
Recoveries of losses previously charged off(a)	7		1	30	38
(Benefit from) provision for loan and lease losses	(99)		(47)	(28)	(174)
Balance, end of period	$	1,329	247	632	2,208

(a)The Bancorp recorded $10 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.

For the three months ended March 31, 2020 ($ in millions)	Commercial		Residential Mortgage	Consumer	Unallocated	Total
Balance, beginning of period	$	710	73	298	121	1,202
Impact of adoption of ASU 2016-13(a)	160		196	408	(121)	643
Losses charged off(b)	(61)		(2)	(96)	—	(159)
Recoveries of losses previously charged off(b)	4		1	32	—	37
Provision for (benefit from) loan and lease losses	500		(8)	133	—	625
Balance, end of period	$	1,313	260	775	—	2,348

(a)Includes $31, $1 and $1 in Commercial, Residential Mortgage and Consumer, respectively, related to the initial recognition of an ALLL on PCD loans.

(b)The Bancorp recorded $13 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.

Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment

The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment:

As of March 31, 2021 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
ALLL:(a)
Individually evaluated	$	86	64	44	194
Collectively evaluated	1,243		183	588	2,014
Total ALLL	$	1,329	247	632	2,208
Portfolio loans and leases:(b)(c)
Individually evaluated	$	759	604	306	1,669
Collectively evaluated	68,269		15,019	23,745	107,033
Total portfolio loans and leases	$	69,028	15,623	24,051	108,702

(a)Includes $3 related to commercial leveraged leases at March 31, 2021.

(b)Excludes$153 of residential mortgage loans measured at fair value and includes $321 of commercial leveraged leases, net of unearned income at March 31, 2021.

(c)Includes $37, as of March 31, 2021, of residential mortgage loans previously sold to GNMA for which the Bancorp is deemed to have regained effective control over under ASC Topic 860, but did not exercise its option to repurchase. Refer to Note 14 for further information.

As of December 31, 2020 ($ in millions)	Commercial		Residential Mortgage	Consumer	Total
ALLL:(a)
Individually evaluated	$	114	68	43	225
Collectively evaluated	1,342		226	660	2,228
Total ALLL	$	1,456	294	703	2,453
Portfolio loans and leases:(b)
Individually evaluated	$	962	628	273	1,863
Collectively evaluated	67,701		15,073	23,569	106,343
Purchased credit deteriorated(c)	334		66	15	415
Total portfolio loans and leases	$	68,997	15,767	23,857	108,621

(a)Includes $3 related to commercial leveraged leases at December 31, 2020.

(b)Excludes $161 of residential mortgage loans measured at fair value and includes $323 of commercial leveraged leases, net of unearned income at December 31, 2020.

(c)Includes $39, as of December 31, 2020, of residential mortgage loans previously sold to GNMA for which the Bancorp is deemed to have regained effective control over under ASC Topic 860, but did not exercise its option to repurchase. Refer to Note 14 for further information.

Loan and Leases Balances by Credit Quality Indicator

The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class and vintage:

As of March 31, 2021 ($ in millions)	Term Loans and Leases Amortized Cost Basis by Origination Year							Revolving Loans Amortized Cost Basis	Revolving Loans Converted to Term Loans Amortized Cost Basis
	2021		2020	2019	2018	2017	Prior			Total
Commercial and industrial loans:
Pass	$	1,822	6,472	1,918	884	623	1,068	31,655	—	44,442
Special mention	1		60	39	90	18	23	1,499	—	1,730
Substandard	9		104	77	149	72	116	2,394	—	2,921
Doubtful	—		—	—	—	—	—	1	—	1
Total commercial and industrial loans	$	1,832	6,636	2,034	1,123	713	1,207	35,549	—	49,094
Commercial mortgage owner-occupied loans:
Pass	$	216	998	639	393	275	605	1,024	—	4,150
Special mention	4		55	14	6	4	22	96	—	201
Substandard	43		128	11	32	6	43	138	—	401
Doubtful	—		—	—	—	—	—	—	—	—
Total commercial mortgage owner-occupied loans	$	263	1,181	664	431	285	670	1,258	—	4,752
Commercial mortgage nonowner-occupied loans:
Pass	$	107	783	642	464	239	522	1,466	—	4,223
Special mention	22		105	60	58	8	9	299	—	561
Substandard	37		276	23	64	3	26	516	—	945
Doubtful	—		—	—	—	—	—	—	—	—
Total commercial mortgage nonowner-occupied loans	$	166	1,164	725	586	250	557	2,281	—	5,729
Commercial construction loans:
Pass	$	54	95	48	27	—	12	4,780	—	5,016
Special mention	—		67	—	—	—	—	616	—	683
Substandard	—		3	—	—	—	—	496	—	499
Doubtful	—		—	—	—	—	—	—	—	—
Total commercial construction loans	$	54	165	48	27	—	12	5,892	—	6,198
Commercial leases:
Pass	$	593	560	350	293	339	1,025	—	—	3,160
Special mention	—		6	18	5	—	3	—	—	32
Substandard	1		5	5	15	20	17	—	—	63
Doubtful	—		—	—	—	—	—	—	—	—
Total commercial leases	$	594	571	373	313	359	1,045	—	—	3,255
Total commercial loans and leases:
Pass	$	2,792	8,908	3,597	2,061	1,476	3,232	38,925	—	60,991
Special mention	27		293	131	159	30	57	2,510	—	3,207
Substandard	90		516	116	260	101	202	3,544	—	4,829
Doubtful	—		—	—	—	—	—	1	—	1
Total commercial loans and leases	$	2,909	9,717	3,844	2,480	1,607	3,491	44,980	—	69,028

As of December 31, 2020 ($ in millions)	Term Loans and Leases Amortized Cost Basis by Origination Year							Revolving Loans Amortized Cost Basis	Revolving Loans Converted to Term Loans Amortized Cost Basis
	2020		2019	2018	2017	2016	Prior			Total
Commercial and industrial loans:
Pass	$	7,042	2,144	1,114	700	471	703	31,657	—	43,831
Special mention	66		46	167	46	5	21	2,317	—	2,668
Substandard	119		80	107	60	39	104	2,639	—	3,148
Doubtful	—		2	9	—	—	—	7	—	18
Total commercial and industrial loans	$	7,227	2,272	1,397	806	515	828	36,620	—	49,665
Commercial mortgage owner-occupied loans:
Pass	$	1,047	655	416	288	249	420	1,025	—	4,100
Special mention	58		12	16	7	2	17	64	—	176
Substandard	211		17	33	7	13	30	88	—	399
Doubtful	—		—	—	—	—	—	—	—	—
Total commercial mortgage owner-occupied loans	$	1,316	684	465	302	264	467	1,177	—	4,675
Commercial mortgage nonowner-occupied loans:
Pass	$	902	679	548	247	223	341	1,626	—	4,566
Special mention	252		68	17	8	36	9	416	—	806
Substandard	149		3	49	14	2	25	301	—	543
Doubtful	12		—	—	—	—	—	—	—	12
Total commercial mortgage nonowner-occupied loans	$	1,315	750	614	269	261	375	2,343	—	5,927
Commercial construction loans:
Pass	$	98	49	27	—	9	12	4,721	—	4,916
Special mention	67		—	—	—	—	—	591	—	658
Substandard	8		—	—	—	—	—	233	—	241
Doubtful	—		—	—	—	—	—	—	—	—
Total commercial construction loans	$	173	49	27	—	9	12	5,545	—	5,815
Commercial leases:
Pass	$	622	374	315	369	314	824	—	—	2,818
Special mention	5		16	5	—	—	—	—	—	26
Substandard	7		4	16	21	6	17	—	—	71
Doubtful	—		—	—	—	—	—	—	—	—
Total commercial leases	$	634	394	336	390	320	841	—	—	2,915
Total commercial loans and leases:
Pass	$	9,711	3,901	2,420	1,604	1,266	2,300	39,029	—	60,231
Special mention	448		142	205	61	43	47	3,388	—	4,334
Substandard	494		104	205	102	60	176	3,261	—	4,402
Doubtful	12		2	9	—	—	—	7	—	30
Total commercial loans and leases	$	10,665	4,149	2,839	1,767	1,369	2,523	45,685	—	68,997

The following tables present a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class and vintage, disaggregated by both age and performing versus nonperforming status:

As of March 31, 2021 ($ in millions)	Term Loans Amortized Cost Basis by Origination Year							Revolving Loans Amortized Cost Basis	Revolving Loans Converted to Term Loans Amortized Cost Basis
	2021		2020	2019	2018	2017	Prior			Total
Residential mortgage loans:
Performing:
Current(a)	$	1,194	3,993	1,912	697	1,419	6,262	—	—	15,477
30-89 days past due	—		1	1	1	3	11	—	—	17
90 days or more past due	—		1	5	3	7	57	—	—	73
Total performing	1,194		3,995	1,918	701	1,429	6,330	—	—	15,567
Nonperforming	—		—	—	1	3	52	—	—	56
Total residential mortgage loans(b)	$	1,194	3,995	1,918	702	1,432	6,382	—	—	15,623
Home equity:
Performing:
Current	$	—	9	21	26	3	146	4,488	9	4,702
30-89 days past due	—		—	—	—	—	2	20	—	22
90 days or more past due	—		—	—	—	—	1	—	—	1
Total performing	—		9	21	26	3	149	4,508	9	4,725
Nonperforming	—		—	—	—	—	11	78	1	90
Total home equity	$	—	9	21	26	3	160	4,586	10	4,815
Indirect secured consumer loans:
Performing:
Current	$	2,312	5,909	3,347	1,463	721	445	—	—	14,197
30-89 days past due	1		18	26	18	9	6	—	—	78
90 days or more past due	—		2	2	2	1	1	—	—	8
Total performing	2,313		5,929	3,375	1,483	731	452	—	—	14,283
Nonperforming	—		31	6	7	5	4	—	—	53
Total indirect secured consumer loans	$	2,313	5,960	3,381	1,490	736	456	—	—	14,336
Credit card:
Performing:
Current	$	—	—	—	—	—	—	1,737	—	1,737
30-89 days past due	—		—	—	—	—	—	18	—	18
90 days or more past due	—		—	—	—	—	—	25	—	25
Total performing	—		—	—	—	—	—	1,780	—	1,780
Nonperforming	—		—	—	—	—	—	30	—	30
Total credit card	$	—	—	—	—	—	—	1,810	—	1,810
Other consumer loans:
Performing:
Current	$	312	819	451	402	157	62	869	—	3,072
30-89 days past due	—		2	4	3	2	1	2	—	14
90 days or more past due	—		—	1	—	—	—	—	—	1
Total performing	312		821	456	405	159	63	871	—	3,087
Nonperforming	—		1	—	—	—	1	1	—	3
Total other consumer loans	$	312	822	456	405	159	64	872	—	3,090
Total residential mortgage and consumer loans:
Performing:
Current	$	3,818	10,730	5,731	2,588	2,300	6,915	7,094	9	39,185
30-89 days past due	1		21	31	22	14	20	40	—	149
90 days or more past due	—		3	8	5	8	59	25	—	108
Total performing	3,819		10,754	5,770	2,615	2,322	6,994	7,159	9	39,442
Nonperforming	—		32	6	8	8	68	109	1	232
Total residential mortgage and consumer loans(b)	$	3,819	10,786	5,776	2,623	2,330	7,062	7,268	10	39,674

(a)Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of March 31, 2021, $87 of these loans were 30-89 days past due and $302 were 90 days or more past due. The Bancorp recognized $1 of losses during the three months ended March 31, 2021 due to claim denials and curtailments associated with these insured or guaranteed loans.

(b)Excludes $153 of residential mortgage loans measured at fair value at March 31, 2021.

As of December 31, 2020 ($ in millions)	Term Loans Amortized Cost Basis by Origination Year							Revolving Loans Amortized Cost Basis	Revolving Loans Converted to Term Loans Amortized Cost Basis
	2020		2019	2018	2017	2016	Prior			Total
Residential mortgage loans:
Performing:
Current(a)	$	4,006	2,128	827	1,635	2,301	4,719	—	—	15,616
30-89 days past due	1		1	3	3	1	12	—	—	21
90 days or more past due	—		6	2	7	7	48	—	—	70
Total performing	4,007		2,135	832	1,645	2,309	4,779	—	—	15,707
Nonperforming	1		—	2	2	3	52	—	—	60
Total residential mortgage loans(b)	$	4,008	2,135	834	1,647	2,312	4,831	—	—	15,767
Home equity:
Performing:
Current	$	11	24	30	4	2	153	4,825	10	5,059
30-89 days past due	—		—	—	—	—	3	33	—	36
90 days or more past due	—		—	—	—	—	2	—	—	2
Total performing	11		24	30	4	2	158	4,858	10	5,097
Nonperforming	—		—	—	—	—	10	75	1	86
Total home equity	$	11	24	30	4	2	168	4,933	11	5,183
Indirect secured consumer loans:
Performing:
Current	$	6,626	3,752	1,678	860	372	214	—	—	13,502
30-89 days past due	25		41	31	17	7	4	—	—	125
90 days or more past due	1		2	3	2	1	1	—	—	10
Total performing	6,652		3,795	1,712	879	380	219	—	—	13,637
Nonperforming	1		5	4	3	2	1	—	—	16
Total indirect secured consumer loans	$	6,653	3,800	1,716	882	382	220	—	—	13,653
Credit card:
Performing:
Current	$	—	—	—	—	—	—	1,914	—	1,914
30-89 days past due	—		—	—	—	—	—	30	—	30
90 days or more past due	—		—	—	—	—	—	31	—	31
Total performing	—		—	—	—	—	—	1,975	—	1,975
Nonperforming	—		—	—	—	—	—	32	—	32
Total credit card	$	—	—	—	—	—	—	2,007	—	2,007
Other consumer loans:
Performing:
Current	$	883	546	437	178	32	40	878	1	2,995
30-89 days past due	2		5	4	2	—	—	2	—	15
90 days or more past due	—		2	—	—	—	—	—	—	2
Total performing	885		553	441	180	32	40	880	1	3,012
Nonperforming	—		—	—	—	—	1	1	—	2
Total other consumer loans	$	885	553	441	180	32	41	881	1	3,014
Total residential mortgage and consumer loans:
Performing:
Current	$	11,526	6,450	2,972	2,677	2,707	5,126	7,617	11	39,086
30-89 days past due	28		47	38	22	8	19	65	—	227
90 days or more past due	1		10	5	9	8	51	31	—	115
Total performing	11,555		6,507	3,015	2,708	2,723	5,196	7,713	11	39,428
Nonperforming	2		5	6	5	5	64	108	1	196
Total residential mortgage and consumer loans(b)	$	11,557	6,512	3,021	2,713	2,728	5,260	7,821	12	39,624

(a)Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2020, $103 of these loans were 30-89 days past due and $242 were 90 days or more past due. The Bancorp recognized $1 of losses during the three months ended March 31, 2020 due to claim denials and curtailments associated with these insured or guaranteed loans.

(b)Excludes $161 of residential mortgage loans measured at fair value at December 31, 2020.

Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases

The following tables summarize the Bancorp’s amortized cost basis in portfolio commercial loans and leases, by age and class:

	Current Loans and Leases(a)		Past Due			Total Loans and Leases	90 Days Past Due and Still Accruing
As of March 31, 2021 ($ in millions)			30-89 Days(a)	90 Days or More(a)	Total Past Due
Commercial loans and leases:
Commercial and industrial loans	$	48,892	131	71	202	49,094	8
Commercial mortgage owner-occupied loans	4,720		11	21	32	4,752	7
Commercial mortgage nonowner-occupied loans	5,683		16	30	46	5,729	—
Commercial construction loans	6,186		11	1	12	6,198	1
Commercial leases	3,249		5	1	6	3,255	—
Total portfolio commercial loans and leases	$	68,730	174	124	298	69,028	16

(a)Includes accrual and nonaccrual loans and leases.

	Current Loans and Leases(a)		Past Due			Total Loans and Leases	90 Days Past Due and Still Accruing
As of December 31, 2020 ($ in millions)			30-89 Days(a)	90 Days or More(a)	Total Past Due
Commercial loans and leases:
Commercial and industrial loans	$	49,421	119	125	244	49,665	39
Commercial mortgage owner-occupied loans	4,645		7	23	30	4,675	7
Commercial mortgage nonowner-occupied loans	5,860		31	36	67	5,927	1
Commercial construction loans	5,808		7	—	7	5,815	—
Commercial leases	2,906		7	2	9	2,915	1
Total portfolio commercial loans and leases	$	68,640	171	186	357	68,997	48

(a)Includes accrual and nonaccrual loans and leases.

Summary of the Amortized Cost Basis of the Bancorp's Collateral Dependent Loans

The following table presents the amortized cost basis of the Bancorp’s collateral-dependent loans and leases, by portfolio class:

($ in millions)	March 31, 2021		December 31, 2020
Commercial loans and leases:
Commercial and industrial loans	$	579	810
Commercial mortgage owner-occupied loans	82		101
Commercial mortgage nonowner-occupied loans	74		82
Commercial construction loans	19		19
Commercial leases	4		6
Total commercial loans and leases	758		1,018
Residential mortgage loans	77		80
Consumer loans:
Home equity	69		71
Indirect secured consumer loans	9		9
Other consumer loans	—		—
Total consumer loans	78		80
Total portfolio loans and leases	$	913	1,178

Summary of the Bancorp's Nonperforming Loans and Leases by Class

The following tables present the amortized cost basis of the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property:

As of March 31, 2021 ($ in millions)					For the three months ended March 31, 2021
	With an ALLL		No Related ALLL	Total	Interest Income Recognized
Commercial loans and leases:
Commercial and industrial loans	$	161	198	359	5
Commercial mortgage owner-occupied loans	15		57	72	5
Commercial mortgage nonowner-occupied loans	34		36	70	1
Commercial construction loans	2		—	2	—
Commercial leases	6		—	6	—
Total nonaccrual portfolio commercial loans and leases	218		291	509	11
Residential mortgage loans	5		51	56	7
Consumer loans:
Home equity	60		30	90	2
Indirect secured consumer loans	45		8	53	—
Credit card	30		—	30	1
Other consumer loans	3		—	3	—
Total nonaccrual portfolio consumer loans	138		38	176	3
Total nonaccrual portfolio loans and leases(a)(b)	$	361	380	741	21
OREO and other repossessed property	—		42	42	—
Total nonperforming portfolio assets(a)(b)	$	361	422	783	21

(a)Excludes $2 of nonaccrual loans held for sale and $20 of nonaccrual restructured loans held for sale.

(b)Includes $30 of nonaccrual government insured commercial loans whose repayments are insured by the SBA, of which $16 are restructured nonaccrual government insured commercial loans.

As of December 31, 2020 ($ in millions)					For the three months ended March 31, 2020
	With an ALLL		No Related ALLL	Total	Interest Income Recognized
Commercial loans and leases:
Commercial and industrial loans	$	213	260	473	1
Commercial mortgage owner-occupied loans	20		60	80	—
Commercial mortgage nonowner-occupied loans	34		43	77	—
Commercial construction loans	1		—	1	—
Commercial leases	6		1	7	1
Total nonaccrual portfolio commercial loans and leases	274		364	638	2
Residential mortgage loans	11		49	60	8
Consumer loans:
Home equity	55		31	86	3
Indirect secured consumer loans	8		8	16	—
Credit card	32		—	32	1
Other consumer loans	2		—	2	—
Total nonaccrual portfolio consumer loans	97		39	136	4
Total nonaccrual portfolio loans and leases(a)(b)	$	382	452	834	14
OREO and other repossessed property	—		30	30	—
Total nonperforming portfolio assets(a)(b)	$	382	482	864	14

(a)Excludes $5 of nonaccrual loans held for sale and $1 of nonaccrual restructured loans held for sale.

(b)Includes $29 of nonaccrual government insured commercial loans whose repayments are insured by the SBA, of which $17 are restructured nonaccrual government insured commercial loans.

Summary of Loans Modified in a TDR

The following tables provide a summary of portfolio loans, by class, modified in a TDR by the Bancorp during the three months ended:

March 31, 2021 ($ in millions)	Number of Loans Modified in a TDR During the Period(a)	Amortized Cost Basis of Loans Modified in a TDR During the Period		Increase (Decrease) to ALLL Upon Modification	Charge-offs Recognized Upon Modification
Commercial loans:
Commercial and industrial loans	19	$	6	1	—
Commercial mortgage owner-occupied loans	1	4		—	—
Commercial mortgage nonowner-occupied loans	3	25		—	—
Residential mortgage loans	178	36		1	—
Consumer loans:
Home equity	58	3		(1)	—
Indirect secured consumer loans	1,743	43		1	—
Credit card	1,795	10		3	—
Total portfolio loans	3,797	$	127	5	—

(a)Represents number of loans post-modification and excludes loans previously modified in a TDR.

March 31, 2020 ($ in millions)(a)	Number of Loans Modified in a TDR During the Period(b)	Amortized Cost Basis in Loans Modified in a TDR During the Period		Increase (Decrease) to ALLL Upon Modification	Charge-offs Recognized Upon Modification
Commercial loans:
Commercial and industrial loans	30	$	69	10	—
Commercial mortgage owner-occupied loans	11	7		—	—
Commercial mortgage nonowner-occupied loans	3	8		—	—
Commercial construction	1	—		—	—
Residential mortgage loans	184	24		—	—
Consumer loans:
Home equity	21	2		(1)	—
Indirect secured consumer loans	22	—		—	—
Credit card	1,884	10		4	—
Total portfolio loans	2,156	$	120	13	—

(a)Represents number of loans post-modification and excludes loans previously modified in a TDR.

Summary of Subsequent Defaults

The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2021 and 2020 and were within 12 months of the restructuring date:

March 31, 2021 ($ in millions)(a)	Number of Contracts	Amortized Cost
Commercial loans:
Commercial mortgage nonowner-occupied loans	1	$	25
Residential mortgage loans	35	4
Consumer loans:
Home equity	12	1
Indirect secured consumer loans	26	1
Credit card	23	—
Total portfolio loans	97	$	31

(a)Excludes all loans held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.

March 31, 2020 ($ in millions)(a)	Number of Contracts	Amortized Cost
Commercial loans:
Commercial mortgage owner-occupied loans	2	$	1
Commercial mortgage nonowner-occupied loans	1	5
Residential mortgage loans	47	6
Consumer loans:
Home equity	1	—
Indirect secured consumer loans	3	—
Credit card	201	1
Total portfolio loans	255	$	13

(a)Excludes all loans held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.