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Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 3 Months Ended
Mar. 31, 2013
Summary of Transactions in the ALLL
The following tables summarize transactions in the ALLL by portfolio segment:
              
              
              
For the three months ended March 31, 2013    Residential      
($ in millions)  CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:            
 Balance, beginning of period $ 1,236  229  278 111  1,854 
 Losses charged off   (68)  (22)  (78) 0  (168) 
 Recoveries of losses previously charged off   14  2  19 0  35 
 Provision for loan and lease losses   9  3  53  (3)  62 
Balance, end of period $ 1,191  212  272  108  1,783 
              
For the three months ended March 31, 2012    Residential      
($ in millions)  CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:            
 Balance, beginning of period $ 1,527  227  365  136  2,255 
 Losses charged off   (117)  (38)  (98)  -   (253) 
 Recoveries of losses previously charged off   15  1  17  -   33 
 Provision for loan and lease losses   (1)  43  57  (8)  91 
Balance, end of period $ 1,424  233  341  128  2,126 
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:
             
    Residential      
As of March 31, 2013 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 75  132  64  -   271 
 Collectively evaluated for impairment  1,116  79  208  -   1,403 
 Loans acquired with deteriorated credit quality  -   1  -   -   1 
 Unallocated  -   -   -   108  108 
Total ALLL$ 1,191  212  272  108  1,783 
Loans and leases:(b)           
 Individually evaluated for impairment$ 901  1,312  545  -   2,758 
 Collectively evaluated for impairment  48,883  10,692  23,255  -   82,830 
 Loans acquired with deteriorated credit quality  1  6  -   -   7 
Total portfolio loans and leases$ 49,785  12,010  23,800  -   85,595 

  • Includes $11 related to leveraged leases.
  • Excludes $81 of residential mortgage loans measured at fair value, and includes $866 of leveraged leases, net of unearned income.

             
    Residential      
As of December 31, 2012 ($ in millions) Commercial MortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 95  137  62 -  294 
 Collectively evaluated for impairment  1,140  91  216 -  1,447 
 Loans acquired with deteriorated credit quality  1  1 - -  2 
 Unallocated - - -  111  111 
Total ALLL$ 1,236  229  278  111  1,854 
Loans and leases:(b)           
 Individually evaluated for impairment$ 980  1,298  544 -  2,822 
 Collectively evaluated for impairment  48,407  10,637  23,833 -  82,877 
 Loans acquired with deteriorated credit quality  1  6  -  -  7 
Total portfolio loans and leases$ 49,388  11,941  24,377  -   85,706 

  • Includes $11 related to leveraged leases.
  • Excludes $76 of residential mortgage loans measured at fair value, and includes $862 of leveraged leases, net of unearned income.
Loan and leases balances by credit quality indicator
The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class:
            
    Special      
As of March 31, 2013 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 34,228  1,205  1,287 37  36,757 
Commercial mortgage owner occupied loans  3,152  295  522  1  3,970 
Commercial mortgage non-owner occupied loans  3,671  403  704  18  4,796 
Commercial construction loans  447  54  172  21  694 
Commercial leases  3,495  27  46  -   3,568 
Total$ 44,993  1,984  2,731  77  49,785 

            
    Special      
As of December 31, 2012 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 33,521  1,113  1,379  25  36,038 
Commercial mortgage owner occupied loans  3,934  338  603  1  4,876 
Commercial mortgage non-owner occupied loans  2,958  449  815  5  4,227 
Commercial construction loans  444  59  195  -  698 
Commercial leases  3,483  48  18  -  3,549 
Total$ 44,340  2,007  3,010  31  49,388 
            

The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments disaggregated into performing versus nonperforming status as of:
          
  March 31, 2013December 31, 2012
($ in millions) PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$ 11,789  221  11,704  237 
Home equity  9,677  50  9,965  53 
Automobile loans  11,739  2  11,970  2 
Credit card  2,004  39  2,058  39 
Other consumer loans and leases  289  -   289  1 
Total$ 35,498  312  35,986  332 

  • Excludes $81 and $76 of loans measured at fair value at March 31, 2013 and December 31, 2012, respectively.
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases
Age Analysis of Past Due Loans and Leases     
The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases by age and class:
               
     Past Due    
   Current   90 Days     90 Days Past
As of March 31, 2013 Loans and  30-89 andTotal Total LoansDue and Still
($ in millions) Leases(c) Days(c)Greater(c)Past Dueand LeasesAccruing
Commercial:             
 Commercial and industrial loans $36,507 73 177 250 36,757 1 
 Commercial mortgage owner occupied loans 3,858 25 87 112 3,970 0 
 Commercial mortgage non-owner occupied loans 4,710 10 76 86 4,796 0 
 Commercial construction loans 625  - 69 69 694 0 
 Commercial leases 3,562 5 1 6 3,568 0 
Residential mortgage loans(a) (b) 11,647 73 290 363 12,010 74 
Consumer:             
 Home equity 9,511 113 103 216 9,727 53 
 Automobile loans 11,682 50 9 59 11,741 7 
 Credit card 1,976 33 34 67 2,043 29 
 Other consumer loans and leases  287 2  - 2 289 0 
Total portfolio loans and leases(a) (d)$84,365 384 846 1,230 85,595 164 

  • Excludes $81 of loans measured at fair value.
  • Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of March 31, 2013, $71 of these loans were 30-89 days past due and $414 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during the three months ended March 31, 2013 due to claim denials and curtailments associated with these advances.
  • Includes accrual and nonaccrual loans and leases.
  • Includes an immaterial amount of government insured commercial loans 30-89 days and 90 days past due and accruing whose repayments are insured by the SBA at March 31, 2013.

               
     Past Due    
   Current   90 Days     90 Days Past
As of December 31, 2012 Loans and  30-89andTotal Total LoansDue and Still
($ in millions) Leases(c) Days(c)Greater(c)Past Dueand LeasesAccruing
Commercial:             
 Commercial and industrial loans $35,826 46 166 212 36,038 1 
 Commercial mortgage owner occupied loans 4,752 29 95 124 4,876 22 
 Commercial mortgage non-owner occupied loans 4,094 21 112 133 4,227 0 
 Commercial construction loans 622 0 76 76 698 1 
 Commercial leases 3,546 2 1 3 3,549 0 
Residential mortgage loans(a) (b) 11,547 87 307 394 11,941 75 
Consumer:             
 Home equity 9,782 126 110 236 10,018 58 
 Automobile loans 11,900 62 10 72 11,972 8 
 Credit card 2,025 38 34 72 2,097 30 
 Other consumer loans and leases  287 2 1 3 290 0 
Total portfolio loans and leases(a) (d)$84,381 413 912 1,325 85,706 195 

  • Excludes $76 of loans measured at fair value.
  • Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2012, $80 of these loans were 30-89 days past due and $414 were 90 days or more past due. The Bancorp recognized $2 of losses for the year ended December 31, 2012 due to claim denials and curtailments associated with these advances.
  • Includes accrual and nonaccrual loans and leases.
  • Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012.

 
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class
The following tables summarize the Bancorp’s impaired loans and leases (by class) that were subject to individual review:
          
    Unpaid    
As of March 31, 2013  PrincipalRecorded   
($ in millions)  BalanceInvestmentAllowance
With a related allowance recorded:        
Commercial:        
 Commercial and industrial loans  $223 168 54 
 Commercial mortgage owner occupied loans(b)  62 52 6 
 Commercial mortgage non-owner occupied loans  191 137 14 
 Commercial construction loans  70 44 1 
 Commercial leases   2  2  - 
Restructured residential mortgage loans  1,047 1,009 132 
Restructured consumer:        
 Home equity  407 404 49 
 Automobile loans  28 28 4 
 Credit card  72 71 11 
 Other consumer loans and leases   2 2  - 
Total impaired loans with a related allowance $2,104 1,917 271 
With no related allowance recorded:        
Commercial:        
 Commercial and industrial loans  $189 147  - 
 Commercial mortgage owner occupied loans  95 87  - 
 Commercial mortgage non-owner occupied loans  198 185  - 
 Commercial construction loans  99 71  - 
 Commercial leases  9 9  - 
Restructured residential mortgage loans  355 303  - 
Restructured consumer:        
 Home equity  40 37  - 
 Automobile loans  3 3  - 
Total impaired loans with no related allowance  988 842  - 
Total impaired loans $3,092 2,759 (a)271 

  • Includes $441, $1,201 and $482, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $159, $111 and $63, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status.
  • Excludes five restructured nonaccrual loans at March 31, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $29, a recorded investment of $29, and an allowance of $11.

          
    Unpaid    
As of December 31, 2012  PrincipalRecorded   
($ in millions)  BalanceInvestmentAllowance
With a related allowance recorded:        
Commercial:        
 Commercial and industrial loans  $263 194 65 
 Commercial mortgage owner occupied loans  54 43 5 
 Commercial mortgage non-owner occupied loans  215 160 16 
 Commercial construction loans  48 37 5 
 Commercial leases  8 8 5 
Restructured residential mortgage loans  1,067 1,023 137 
Restructured consumer:        
 Home equity  400 396 46 
 Automobile loans  31 30 4 
 Credit card  74 74 12 
 Other consumer loans and leases   2 2  - 
Total impaired loans with a related allowance $2,162 1,967 295 
With no related allowance recorded:        
Commercial:        
 Commercial and industrial loans  $207 169  - 
 Commercial mortgage owner occupied loans  107 99  - 
 Commercial mortgage non-owner occupied loans  209 199  - 
 Commercial construction loans  109 67  - 
 Commercial leases  5 5  - 
Restructured residential mortgage loans  326 275  - 
Restructured consumer:        
 Home equity  40 39  - 
 Automobile loans  3 3  - 
Total impaired loans with no related allowance  1,006 856  - 
Total impaired loans and leases $3,168 2,823 (a)295 

  • Includes $431, $1,175 and $480, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $177, $123 and $64, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status.
Summarizes the Bancorp's Average Impaired Loans and Leases and Interest Income by Class
The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class:
              
     For the three months ended For the three months ended
     March 31, 2013 March 31, 2012
     AverageInterest AverageInterest
     RecordedIncome RecordedIncome
($ in millions)   InvestmentRecognized InvestmentRecognized
Commercial:            
 Commercial and industrial loans   $339 2 $494 1 
 Commercial mortgage owner occupied loans(a)   140 1  139 1 
 Commercial mortgage non-owner occupied loans   341 2  320 2 
 Commercial construction loans   110 1  202 1 
 Commercial leases   11  -  11  - 
Restructured residential mortgage loans   1,306 13  1,262 12 
Restructured consumer:            
 Home equity   439 6  444 6 
 Automobile loans   32  -  41  - 
 Credit card   73 1  80 1 
 Other consumer loans and leases     2  -   -  - 
Total impaired loans and leases  $2,793 26 $2,993 24 

  • Excludes five restructured nonaccrual loans at March 31, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $30 and an immaterial amount of interest income recognized.
Summary of the Bancorp's Nonperforming Loans and Leases by Class
       
Nonperforming Assets
The following table summarizes the Bancorp’s nonperforming loans and leases, by class, as of:
       
   March 31,December 31,
($ in millions) 20132012
Commercial:     
 Commercial and industrial loans $312 330 
 Commercial mortgage owner occupied loans(a)  132 125 
 Commercial mortgage non-owner occupied loans 117 157 
 Commercial construction loans 69 76 
 Commercial leases 9 9 
Total commercial loans and leases 639 697 
Residential mortgage loans 221 237 
Consumer:     
 Home equity 50 53 
 Automobile loans 2 2 
 Credit card 39 39 
 Other consumer loans and leases  0 1 
Total consumer loans and leases 91 95 
Total nonperforming loans and leases(b) (c)$951 1,029 
OREO and other repossessed property(d) 259 257 

  • Excludes $22 million of restructured nonaccrual loans at March 31, 2013 associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.
  • Excludes $19 and $29 of nonaccrual loans held for sale at March 31, 2013 and December 31, 2012, respectively.
  • Includes $13 and $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2013 and December 31, 2012, respectively, and $1 of restructured nonaccrual government insured commercial loans at March 31, 2013 and December 31, 2012.
  • Excludes $65 and $72 of OREO related to government insured loans at March 31, 2013 and December 31, 2012, respectively.

 

 
Summary of Loans Modified in a TDR
The following table provides a summary of loans modified in a TDR by the Bancorp during the three months ended:
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
March 31, 2013 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial:         
 Commercial and industrial loans 20 $9  1 1 
 Commercial mortgage owner occupied loans(c)10  4  (1)  - 
 Commercial mortgage non-owner occupied loans15  17  (1)  - 
 Commercial construction loans1   6  (1)  - 
Residential mortgage loans394  61 8  - 
Consumer:         
 Home equity326  17 0  - 
 Automobile loans115  7 0  - 
 Credit card2,312  14 2  - 
Total portfolio loans and leases3,193 $135  8 1 
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
March 31, 2012 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial:         
 Commercial and industrial loans 30 $15  (3)  - 
 Commercial mortgage owner occupied loans27  8  (2)  - 
 Commercial mortgage non-owner occupied loans30  51  1  - 
 Commercial construction loans11  36  -  - 
Residential mortgage loans480  78  7  - 
Consumer:         
 Home equity311  19  1  - 
 Automobile loans339  5  1  - 
 Credit card2,741  18  2  - 
Total portfolio loans and leases3,969 $230  7  - 

  • Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.
  • Represents number of loans post-modification.
  • Excludes five loans modified in a TDR during the three months ended March 31, 2013 associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR has a recorded investment of $29, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon modification.

 
Summary of Subsequent Defaults
The following table provides a summary of subsequent defaults of TDRs that occurred during the three months ended March 31, 2013 and 2012 and within 12 months of the restructuring date:
       
  Number of Recorded
March 31, 2013 ($ in millions)(a)Contracts Investment
Residential mortgage loans42 $8 
Consumer:     
 Home equity14  1 
 Automobile loans3   - 
 Credit card515   3 
Total portfolio loans and leases574 $12 
       
  Number of Recorded
March 31, 2012 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial mortgage non-owner occupied loans1 $1 
 Commercial construction loans2  3 
Residential mortgage loans64  11 
Consumer:     
 Home equity31  2 
 Automobile loans12   - 
 Credit card577   4 
Total portfolio loans and leases687 $21 

  • Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.