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Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 12 Months Ended
Dec. 31, 2013
Credit Quality and the Allowance for Loan and Leases Losses  
Summary of Transactions in the ALLL
The following tables summarize transactions in the ALLL by portfolio segment:
             
For the year ended December 31, 2013   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance at January 1$ 1,236  229  278  111  1,854 
 Losses charged off  (284)  (70)  (283)  -  (637) 
 Recoveries of losses previously charged off  64  10  62  -  136 
 Provision for loan and lease losses  42  20  168  (1)  229 
Balance at December 31$ 1,058  189  225  110  1,582 
             
For the year ended December 31, 2012   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance at January 1$ 1,527  227  365  136  2,255 
 Losses charged off  (358)  (129)  (350)  -  (837) 
 Recoveries of losses previously charged off  61  7  65  -  133 
 Provision for loan and lease losses  6  124  198  (25)  303 
Balance at December 31$ 1,236  229  278  111  1,854 
             
For the year ended December 31, 2011   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance at January 1$ 1,989  310  555  150  3,004 
 Losses charged off  (615)  (180)  (519)  -  (1,314) 
 Recoveries of losses previously charged off  61  7  74  -  142 
 Provision for loan and lease losses  92  90  255  (14)  423 
Balance at December 31$ 1,527  227  365  136  2,255 
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 December 31, 2013 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 186a(c) 139  53  -  378 
 Collectively evaluated for impairment  872  50  172  -  1,094 
 Unallocated  -  -  -  110  110 
Total ALLL$ 1,058  189  225  110  1,582 
Loans and leases:(b)           
 Individually evaluated for impairment$ 1,560a(c) 1,325  496  -  3,381 
 Collectively evaluated for impairment  50,486  11,259  23,392  -  85,137 
 Loans acquired with deteriorated credit quality  -  4  -  -  4 
Total portfolio loans and leases$ 52,046  12,588  23,888  -  88,522 

  • Includes $9 related to leveraged leases.
  • Excludes $92 of residential mortgage loans measured at fair value, and includes $881 of leveraged leases, net of unearned income.
  • Includes five restructured nonaccrual loans at December 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 a recorded investment of $28 and an allowance of $11.

 

    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 December 31, 2013 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 36,776  1,118  1,419 3  39,316 
Commercial mortgage owner occupied loans  3,866  209  415  17  4,507 
Commercial mortgage non-owner occupied loans   2,879  248  431  1  3,559 
Commercial construction loans  855  32  152  -  1,039 
Commercial leases  3,546  56  23  -  3,625 
Total$ 47,922  1,663  2,440  21  52,046 

    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 December 31:
          
  20132012
($ in millions) PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$ 12,423  165  11,704  237 
Home equity  9,153  93  9,965  53 
Automobile loans  11,982  2  11,970  2 
Credit card  2,261  33  2,058  39 
Other consumer loans and leases  364  -  289  1 
Total$ 36,183  293  35,986  332 

  • Excludes $92 and $76 of loans measured at fair value at December 31, 2013 and 2012, respectively.
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 recorded investment in portfolio loans and leases by age and class:
               
     Past Due    
   Current  90 Days     90 Days Past
As of December 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 $39,118 53 145 198 39,316  - 
 Commercial mortgage owner occupied loans 4,423 15 69 84 4,507  - 
 Commercial mortgage non-owner occupied loans 3,515 9 35 44 3,559  - 
 Commercial construction loans 1,010  - 29 29 1,039  - 
 Commercial leases 3,620  - 5 5 3,625  - 
Residential mortgage loans(a)(b) 12,284 73 231 304 12,588 66 
Consumer:             
 Home equity 9,058 102 86 188 9,246  - 
 Automobile loans 11,919 55 10 65 11,984 8 
 Credit card 2,225 36 33 69 2,294 29 
 Other consumer loans and leases  362 2  - 2 364  - 
Total portfolio loans and leases(a)$87,534 345 643 988 88,522 103 

  • Excludes $92 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, 2013, $81 of these loans were 30-89 days past due and $378 were 90 days or more past due. The Bancorp recognized $5 million of losses for the year ended December 31, 2013 due to claim denials and curtailments associated with these advances.
  • Includes accrual and nonaccrual loans and leases.

 

     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  - 
 Commercial construction loans 622  - 76 76 698 1 
 Commercial leases 3,546 2 1 3 3,549  - 
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  - 
Total portfolio loans and leases(a)$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 million 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.
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class
The following table summarizes the Bancorp’s impaired loans and leases (by class) that were subject to individual review, which includes all loans and leases restructured in a troubled debt restructuring as December 31:
             
      Unpaid    
2013   PrincipalRecorded   
($ in millions)   BalanceInvestmentAllowance
With a related allowance recorded:           
Commercial:           
 Commercial and industrial loans     $870 759 145 
 Commercial mortgage owner occupied loans(b)     85 74 11 
 Commercial mortgage non-owner occupied loans     154 134 14 
 Commercial construction loans     68 54 5 
 Commercial leases     12 12  - 
Restructured residential mortgage loans     1,081 1,052 139 
Restructured consumer:           
 Home equity     377 373 39 
 Automobile loans     23 23 3 
 Credit card     59 58 11 
Total impaired loans and leases with a related allowance    $2,729 2,539 367 
With no related allowance recorded:           
Commercial:           
 Commercial and industrial loans     $181 177  - 
 Commercial mortgage owner occupied loans     106 98  - 
 Commercial mortgage non-owner occupied loans     154 147  - 
 Commercial construction loans     77 63  - 
 Commercial leases     14 14  - 
Restructured residential mortgage loans     313 273  - 
Restructured consumer:           
 Home equity     43 39  - 
 Automobile loans     3 3  - 
Total impaired loans and leases with no related allowance     891 814  - 
Total impaired loans and leases    $3,620 3,353a(a)367 

  • Includes $869, $1,241 and $444, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $228, $84 and $52, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status.
  • Excludes five restructured nonaccrual loans at December 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 $28, a recorded investment of $28, and an allowance of $11.

   Unpaid    
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 0 
Total impaired loans and leases with a related allowance$2,162 1,967 295 
With no related allowance recorded:       
Commercial:       
 Commercial and industrial loans $207 169 0 
 Commercial mortgage owner occupied loans 107 99 0 
 Commercial mortgage non-owner occupied loans 209 199 0 
 Commercial construction loans 109 67 0 
 Commercial leases 5 5 0 
Restructured residential mortgage loans 326 275 0 
Restructured consumer:       
 Home equity 40 39 0 
 Automobile loans 3 3 0 
Total impaired loans and leases with no related allowance 1,006 856 0 
Total impaired loans and leases$3,168 2,823a(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.

 

The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class for the year ended December 31:
               
     2013 2012 
     AverageInterest AverageInterest 
     RecordedIncome RecordedIncome 
($ in millions)   InvestmentRecognized InvestmentRecognized 
Commercial:             
 Commercial and industrial loans   $517 16  448  4 
 Commercial mortgage owner occupied loans(a)   146 4  156  4 
 Commercial mortgage non-owner occupied loans   321 8  361  10 
 Commercial construction loans   108 4  160  2 
 Commercial leases   11  -  10   - 
Restructured residential mortgage loans   1,311 53  1,276  47 
Restructured consumer:             
 Home equity   429 23  439  24 
 Automobile loans   29 1  38  1 
 Credit card   68 4  80  4 
 Other consumer loans and leases    2  -  1   - 
Total impaired loans and leases  $2,942 113  2,969  96 

  • Excludes five restructured nonaccrual loans at December 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 $28, an average recorded investment of $29, and an allowance of $11.
Summary of the Bancorp's Nonperforming Loans and Leases by Class
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; commercial and credit card TDRs which have not yet met the requirements to be classified as a performing asset; consumer TDRs which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table summarizes the Bancorp’s nonperforming loans and leases, by class, as of December 31:
       
($ in millions) 20132012
Commercial:     
 Commercial and industrial loans $281 330 
 Commercial mortgage owner occupied loans(a)  95 125 
 Commercial mortgage non-owner occupied loans 48 157 
 Commercial construction loans 29 76 
 Commercial leases 5 9 
Total commercial loans and leases 458 697 
Residential mortgage loans 166 237 
Consumer:     
 Home equity 93 53 
 Automobile loans 1 2 
 Credit card 33 39 
 Other consumer loans and leases  0 1 
Total consumer loans and leases 127 95 
Total nonperforming loans and leases(b)(c)$751 1,029 
OREO and other repossessed property(d) 229 257 

  • Excludes $21 of restructured nonaccrual loans at December 31, 2013 associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due the risk being assumed by a third party.
  • Excludes $6 and $29 of nonaccrual loans held for sale at December 31, 2013 and 2012, respectively.
  • Includes $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at both December 31, 2013 and 2012, and $2 and $1 of restructured nonaccrual government insured commercial loans at December 31, 2013 and 2012, respectively.
  • Excludes $77 and $72 of OREO related to government insured loans at December 31, 2013 and 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 year ended December 31:
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
2013 ($ in millions)(a)during the year(b)during the yearmodificationmodification
Commercial:         
 Commercial and industrial loans 146 $604  39 44 
 Commercial mortgage owner occupied loans(c)65  19  (2)  - 
 Commercial mortgage non-owner occupied loans59  72  (7)  - 
 Commercial construction loans4  34  (2)  - 
 Commercial leases1  2  (5)  - 
Residential mortgage loans1,620  249 28  - 
Consumer:         
 Home equity695  37  (1)  - 
 Automobile loans499  14 1  - 
 Credit card8,202  50 7  - 
Total portfolio loans and leases11,291 $1,081 58 44 
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
2012 ($ in millions)(a)during the year(b)during the yearmodificationmodification
Commercial:         
 Commercial and industrial loans 108 $84  (7) 9 
 Commercial mortgage owner occupied loans67  53  (8) 2 
 Commercial mortgage non-owner occupied loans67  91  (7)  - 
 Commercial construction loans17  38  (4)  - 
 Commercial leases8  7 1  - 
Residential mortgage loans1,758  340 35  - 
Consumer:         
 Home equity1,343  82 1  - 
 Automobile loans1,289  23 2  - 
 Credit card11,407  75 11  - 
Total portfolio loans and leases16,064 $793  24 11 

  • 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 year ended December 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 resulted in a $7 increase to the ALLL and a $2 charge-off at modification and has a recorded investment of $28.

 
Summary of Subsequent Defaults
The following table provides a summary of subsequent defaults that occurred during the years ended December 31, 2013 and 2012 and within 12 months of the restructuring date:
       
  Number of Recorded
December 31, 2013 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial and industrial loans 6 $11 
 Commercial mortgage owner occupied loans7  1 
Residential mortgage loans375  58 
Consumer:     
 Home equity65  4 
 Automobile loans4   - 
 Credit card1,768  11 
Total portfolio loans and leases2,225 $85 
       
  Number of Recorded
December 31, 2012 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial and industrial loans 2 $3 
 Commercial mortgage owner occupied loans3  2 
 Commercial mortgage non-owner occupied loans2  1 
 Commercial construction loans2  3 
Residential mortgage loans332  57 
Consumer:     
 Home equity101  7 
 Automobile loans42   - 
 Credit card (revised)1,832  13 
Total portfolio loans and leases2,316 $86 

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