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

3 Months Ended

Mar. 31, 2014

Credit Quality and the Allowance for Loan and Leases Losses

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



For the three months ended March 31, 2014				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	1,058	189	225	110	1,582
	Losses charged off		(110)	(19)	(61)	-	(190)
	Recoveries of losses previously charged off		5	4	13	-	22
	Provision for loan and lease losses		28	6	40	(5)	69
Balance, end of period		$	981	180	217	105	1,483

For the three months ended March 31, 2013				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	1,236	229	278	111	1,854
	Losses charged off		(68)	(22)	(78)	-	(168)
	Recoveries of losses previously charged off		14	2	19	-	35
	Provision for loan and lease losses		9	3	53	(3)	62
Balance, end of period		$	1,191	212	272	108	1,783

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, 2014 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	182	^(c)	140	51	-	373
	Collectively evaluated for impairment		799		40	166	-	1,005
	Unallocated		-		-	-	105	105
Total ALLL		$	981		180	217	105	1,483
Loans and leases:^(b)
	Individually evaluated for impairment	$	1,306	^(c)	1,310	483	-	3,099
	Collectively evaluated for impairment		52,038		11,209	23,252	-	86,499
	Loans acquired with deteriorated credit quality		-		4	-	-	4
Total portfolio loans and leases		$	53,344		12,523	23,735	-	89,602

Includes $8 related to leveraged leases.
Excludes $103 of residential mortgage loans measured at fair value, and includes $878 of leveraged leases, net of unearned income.
Includes five restructured loans at March 31, 2014 associated with a consolidated VIE 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, 2013 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	186	^(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	$	1,560	^(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 loans at December 31, 2013 associated with a consolidated VIE 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.

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, 2014 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	38,061	1,175	1,313	42	40,591
Commercial mortgage owner occupied loans		3,825	196	375	2	4,398
Commercial mortgage non-owner occupied loans		2,913	242	405	-	3,560
Commercial construction loans		1,078	37	103	-	1,218
Commercial leases		3,500	47	30	-	3,577
Total	$	49,377	1,697	2,226	44	53,344


			Special
As of December 31, 2013 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
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

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, 2014		December 31, 2013
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans^(a)	$	12,382	141	12,423	165
Home equity		9,031	94	9,153	93
Automobile loans		12,087	1	11,982	2
Credit card		2,144	33	2,261	33
Other consumer loans and leases		345	-	364	-
Total	$	35,989	269	36,183	293

Excludes $103 and $92 of loans measured at fair value at March 31, 2014 and December 31, 2013, 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, 2014			Loans and	30-89	and	Total	Total Loans	Due and Still
($ in millions)			Leases^(c)	Days^(c)	Greater^(c)	Past Due	and Leases	Accruing
Commercial:
	Commercial and industrial loans	$	40,402	35	154	189	40,591	1
	Commercial mortgage owner occupied loans		4,321	10	67	77	4,398	-
	Commercial mortgage non-owner occupied loans		3,524	4	32	36	3,560	-
	Commercial construction loans		1,199	15	4	19	1,218	-
	Commercial leases		3,573	2	2	4	3,577	-
Residential mortgage loans^{(a) (b)}			12,255	71	197	268	12,523	56
Consumer:
	Home equity		8,947	99	79	178	9,125	-
	Automobile loans		12,037	42	9	51	12,088	7
	Credit card		2,111	31	35	66	2,177	30
	Other consumer loans and leases		344	1	-	1	345	-
Total portfolio loans and leases^(a)		$	88,713	310	579	889	89,602	94

Excludes $103 of loans measured at fair value.
Information for current residential mortgage loans includes loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of March 31, 2014, $75 of these loans were 30-89 days past due and $347 were 90 days or more past due. The Bancorp recognized $5 of losses during the three months ended March 31, 2014 due to claim denials and curtailments associated with these loans.
Includes accrual and nonaccrual loans and leases.


				Past Due
			Current		90 Days			90 Days Past
As of December 31, 2013			Loans and	30-89	and	Total	Total Loans	Due and Still
($ in millions)			Leases^(c)	Days^(c)	Greater^(c)	Past Due	and Leases	Accruing
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 loans 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 of losses for the year ended December 31, 2013 due to claim denials and curtailments associated with these loans.
Includes accrual and nonaccrual loans and leases.

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, which includes all loans and leases restructured in a troubled debt restructuring:

			Unpaid
As of March 31, 2014			Principal	Recorded
($ in millions)			Balance	Investment		Allowance
With a related allowance recorded:
Commercial:
	Commercial and industrial loans	$	663	531		140
	Commercial mortgage owner occupied loans^(b)		85	71		11
	Commercial mortgage non-owner occupied loans		105	82		12
	Commercial construction loans		76	60		5
	Commercial leases		3	3		3
Restructured residential mortgage loans			1,074	1,044		140
Restructured consumer:
	Home equity		366	363		36
	Automobile loans		22	21		3
	Credit card		57	57		12
Total impaired loans and leases with a related allowance		$	2,451	2,232		362
With no related allowance recorded:
Commercial:
	Commercial and industrial loans	$	242	198		-
	Commercial mortgage owner occupied loans		90	82		-
	Commercial mortgage non-owner occupied loans		191	185		-
	Commercial construction loans		64	52		-
	Commercial leases		14	14		-
Restructured residential mortgage loans			300	266		-
Restructured consumer:
	Home equity		43	39		-
	Automobile loans		3	3		-
Total impaired loans and leases with no related allowance			947	839		-
Total impaired loans and leases		$	3,398	3,071	^(a)	362

Includes $847, $1,237 and $430, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $209, $73 and $53, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status.
Excludes five restructured loans at March 31, 2014 associated with a consolidated VIE 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
As of December 31, 2013			Principal	Recorded
($ in millions)			Balance	Investment		Allowance
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	3,353	^(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 loans at December 31, 2013 associated with a consolidated VIE 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.

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, 2014			March 31, 2013
			Average	Interest		Average	Interest
			Recorded	Income		Recorded	Income
($ in millions)			Investment	Recognized		Investment	Recognized
Commercial:
	Commercial and industrial loans	$	832	5	$	339	2
	Commercial mortgage owner occupied loans^(a)		162	1		140	1
	Commercial mortgage non-owner occupied loans		273	2		341	2
	Commercial construction loans		114	-		110	1
	Commercial leases		22	-		11	-
Restructured residential mortgage loans			1,312	13		1,306	13
Restructured consumer:
	Home equity		406	5		439	6
	Automobile loans		24	-		32	-
	Credit card		57	1		73	1
	Other consumer loans and leases		-	-		2	-
Total impaired loans and leases		$	3,202	27	$	2,793	26

Excludes five restructured loans 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 $28 and $30 at March 31, 2014 and 2013, respectively.

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


Nonperforming Assets
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans 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:

			March 31,	December 31,
($ in millions)			2014	2013
Commercial:
	Commercial and industrial loans	$	297	281
	Commercial mortgage owner occupied loans^(a)		87	95
	Commercial mortgage non-owner occupied loans		59	48
	Commercial construction loans		17	29
	Commercial leases		4	5
Total commercial loans and leases			464	458
Residential mortgage loans			141	166
Consumer:
	Home equity		94	93
	Automobile loans		1	1
	Credit card		33	33
Total consumer loans and leases			128	127
Total nonperforming loans and leases^{(b) (c)}		$	733	751
OREO and other repossessed property^(d)			213	229

Excludes $21 of restructured nonaccrual loans at both March 31, 2014 and December 31, 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party.
Excludes $3 and $6 of nonaccrual loans held for sale at March 31, 2014 and December 31, 2013, respectively.
Includes $9 and $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2014 and December 31, 2013, respectively, and $2 of restructured nonaccrual government insured commercial loans at both March 31, 2014 and December 31, 2013, respectively.
Excludes $85 and $77 of OREO related to government insured loans at March 31, 2014 and December 31, 2013, 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 investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
March 31, 2014 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	22	$	19	(4)	-
	Commercial mortgage owner occupied loans	16		12	(1)	-
	Commercial mortgage non-owner occupied loans	7		6	(1)	-
Residential mortgage loans		310		45	3	-
Consumer:
	Home equity	35		1	-	-
	Automobile loans	116		2	-	-
	Credit card	1,951		12	2	-
Total portfolio loans and leases		2,457	$	97	(1)	-

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
March 31, 2013 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	20	$	9	1	1
	Commercial mortgage owner occupied loans^(c)	10		4	(1)	-
	Commercial mortgage non-owner occupied loans	15		17	(1)	-
	Commercial construction loans	1		6	(1)	-
Residential mortgage loans		394		61	8	-
Consumer:
	Home equity	326		17	-	-
	Automobile loans	115		7	-	-
	Credit card	2,312		14	2	-
Total portfolio loans and leases		3,193	$	135	8	1

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 VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR had 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, 2014 and 2013 and within 12 months of the restructuring date:

		Number of		Recorded
March 31, 2014 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	6	$	14
	Commercial mortgage owner-occupied loans	2		3
Residential mortgage loans		41		6
Consumer:
	Home equity	10		-
	Automobile loans	2		-
	Credit card	507		3
Total portfolio loans and leases		568	$	26

		Number of		Recorded
March 31, 2013 ($ in millions)^(a)		Contracts		Investment
Residential mortgage loans		42	$	8
Consumer:
	Home equity	14		1
	Automobile loans	3		-
	Credit card	515		3
Total portfolio loans and leases		574	$	12

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