XML 85 R35.htm IDEA: XBRL DOCUMENT v2.4.0.8
Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 6 Months Ended
Jun. 30, 2014
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 three months ended June 30, 2014   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance, beginning of period$ 981  180  217  105  1,483 
 Losses charged off  (55)  (11)  (61)  -  (127) 
 Recoveries of losses previously charged off  7  3  16  -  26 
 Provision for loan and lease losses  28  2  49  (3)  76 
Balance, end of period$ 961  174  221  102  1,458 
             
For the three months ended June 30, 2013   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance, beginning of period$ 1,191  212  272  108  1,783 
 Losses charged off  (59)  (18)  (68)  -  (145) 
 Recoveries of losses previously charged off  14  3  16  -  33 
 Provision for loan and lease losses  37  4  27  (4)  64 
Balance, end of period$ 1,183  201  247  104  1,735 
             
For the six months ended June 30, 2014   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance, beginning of period$ 1,058  189  225  110  1,582 
 Losses charged off  (164)  (30)  (124)  -  (318) 
 Recoveries of losses previously charged off  13  7  28  -  48 
 Provision for loan and lease losses  54  8  92  (8)  146 
Balance, end of period$ 961  174  221  102  1,458 
             
For the six months ended June 30, 2013   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance, beginning of period$ 1,236  229  278  111  1,854 
 Losses charged off  (128)  (40)  (145)  -  (313) 
 Recoveries of losses previously charged off  29  5  34  -  68 
 Provision for loan and lease losses  46  7  80  (7)  126 
Balance, end of period$ 1,183  201  247  104  1,735 
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 June 30, 2014 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 204 1(c) 134  54  -  392 
 Collectively evaluated for impairment  757  40  167  -  964 
 Unallocated  -  -  -  102  102 
Total ALLL$ 961  174  221  102  1,458 
Loans and leases:(b)           
 Individually evaluated for impairment$ 1,274 1(c) 1,263  475  -  3,012 
 Collectively evaluated for impairment  52,821  11,286  23,262  -  87,369 
 Loans acquired with deteriorated credit quality  -  4  -  -  4 
Total portfolio loans and leases$ 54,095  12,553  23,737  -  90,385 

  • Includes $7 related to leveraged leases.
  • Excludes $99 of residential mortgage loans measured at fair value, and includes $880 of leveraged leases, net of unearned income.
  • Includes five restructured loans at June 30, 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 $10.

             
    Residential      
As of December 31, 2013 ($ in millions) Commercial MortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 186 1(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 1(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 June 30, 2014 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 38,426  1,363  1,502  8  41,299 
Commercial mortgage owner occupied loans  3,621  204  339  1  4,165 
Commercial mortgage non-owner occupied loans  3,063  199  377  1  3,640 
Commercial construction loans  1,318  51  55  -  1,424 
Commercial leases  3,492  45  30  -  3,567 
Total$ 49,920  1,862  2,303  10  54,095 

            
    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 
            

The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments disaggregated into performing versus nonperforming status as of:
          
  June 30, 2014December 31, 2013
($ in millions) PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$ 12,435  118  12,423  165 
Home equity  8,963  93  9,153  93 
Automobile loans  12,049  1  11,982  2 
Credit card  2,229  32  2,261  33 
Other consumer loans and leases  370  -  364  - 
Total$ 36,046  244  36,183  293 

  • Excludes $99 and $92 of loans measured at fair value at June 30, 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 June 30, 2014 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 $41,188 19 92 111 41,299  - 
 Commercial mortgage owner occupied loans 4,088 8 69 77 4,165  - 
 Commercial mortgage non-owner occupied loans 3,603 3 34 37 3,640  - 
 Commercial construction loans 1,414 2 8 10 1,424  - 
 Commercial leases 3,565  - 2 2 3,567  - 
Residential mortgage loans(a) (b) 12,300 76 177 253 12,553 60 
Consumer:             
 Home equity 8,893 85 78 163 9,056  - 
 Automobile loans 11,993 48 9 57 12,050 8 
 Credit card 2,200 31 30 61 2,261 26 
 Other consumer loans and leases  368 2  - 2 370  - 
Total portfolio loans and leases(a)$89,612 274 499 773 90,385 94 

  • Excludes $99 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 June 30, 2014, $90 of these loans were 30-89 days past due and $333 were 90 days or more past due. The Bancorp recognized $2 and $7 of losses on these insured of guaranteed loans during the three and six months ended June 30, 2014, respectively, 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  30-89andTotal 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 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 on these insured or guaranteed loans 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 June 30, 2014  PrincipalRecorded   
($ in millions)  BalanceInvestmentAllowance
With a related allowance recorded:        
Commercial:        
 Commercial and industrial loans  $640 536 179 
 Commercial mortgage owner occupied loans(b)  56 46 6 
 Commercial mortgage non-owner occupied loans  103 79 5 
 Commercial construction loans  48 45 1 
 Commercial leases   4  4 3 
Restructured residential mortgage loans  1,033 999 134 
Restructured consumer:        
 Home equity  354 354 41 
 Automobile loans  21 20 3 
 Credit card  54 54 10 
 Other consumer loans and leases    4  3  - 
Total impaired loans and leases with a related allowance $2,317 2,140 382 
With no related allowance recorded:        
Commercial:        
 Commercial and industrial loans  $271 223  - 
 Commercial mortgage owner occupied loans  105 94  - 
 Commercial mortgage non-owner occupied loans  189 174  - 
 Commercial construction loans  61 42  - 
 Commercial leases  3 3  - 
Restructured residential mortgage loans  301 264  - 
Restructured consumer:        
 Home equity  44 42  - 
 Automobile loans  3 2  - 
Total impaired loans and leases with no related allowance  977 844  - 
Total impaired loans and leases $3,294 2,9841(a)382 

  • Includes $914, $1,201 and $422, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $202, $62 and $53, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status.
  • Excludes five restructured loans at June 30, 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 $10.

          
    Unpaid    
As of December 31, 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 3,3531(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 six months ended
     June 30, 2014 June 30, 2014
     AverageInterest AverageInterest
     RecordedIncome RecordedIncome
($ in millions)   InvestmentRecognized InvestmentRecognized
Commercial:           
 Commercial and industrial loans   $744 7 $788 12
 Commercial mortgage owner occupied loans(a)   146 1  154 2
 Commercial mortgage non-owner occupied loans   259 2  266 4
 Commercial construction loans   100 1  107 1
 Commercial leases   12  -  17  -
Restructured residential mortgage loans   1,295 14  1,304 27
Restructured consumer:           
 Home equity   395 6  401 11
 Automobile loans   24  -  24  -
 Credit card   55 1  56 2
 Other consumer loans and leases     -  -   -  -
Total impaired loans and leases  $3,030 32 $3,117 59

  • Excludes five restructured loans 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 average recorded investment of $28 and an immaterial amount of interest income recognized for the three and six months ended June 30, 2014.

    For the three months ended For the six months ended
    June 30, 2013 June 30, 2013
    AverageInterest AverageInterest
    RecordedIncome RecordedIncome
($ in millions)  InvestmentRecognized InvestmentRecognized
Commercial:
 Commercial and industrial loans  $318 2 $329 4
 Commercial mortgage owner occupied loans(a)  136 1  138 2
 Commercial mortgage non-owner occupied loans 315 2  328 4
 Commercial construction loans 114  1  112 2
 Commercial leases 10  -  11  -
Restructured residential mortgage loans 1,308 13  1,307 26
Restructured consumer: 
 Home equity 434 5  437 11
 Automobile loans 29  -  31  -
 Credit card 68 1  71 2
 Other consumer loans and leases  2  -  2  -
Total impaired loans and leases $2,734 25 $2,766 51

  • Excludes five restructured loans 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 average recorded investment of $30 and an immaterial amount of interest income recognized for the three and six months ended June 30, 2013.

 
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:
       
   June 30,December 31,
($ in millions) 20142013
Commercial:     
 Commercial and industrial loans $246 281 
 Commercial mortgage owner occupied loans(a)  91 95 
 Commercial mortgage non-owner occupied loans 48 48 
 Commercial construction loans 8 29 
 Commercial leases 3 5 
Total commercial loans and leases 396 458 
Residential mortgage loans 118 166 
Consumer:     
 Home equity 93 93 
 Automobile loans 1 1 
 Credit card 32 33 
Total consumer loans and leases 126 127 
Total nonperforming loans and leases(b) (c)$640 751 
OREO and other repossessed property(d)$192 229 

  • Excludes $21 of restructured nonaccrual loans at both June 30, 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 $5 and $6 of nonaccrual loans held for sale at June 30, 2014 and December 31, 2013, respectively.
  • Includes $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at both June 30, 2014 and December 31, 2013, and $3 and $2 of restructured nonaccrual government insured commercial loans at June 30, 2014 and December 31, 2013, respectively.
  • Excludes $92 and $77 of OREO related to government insured loans at June 30, 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   
  Number of loansin loans modifiedIncreaseCharge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
June 30, 2014 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial:         
 Commercial and industrial loans 44 $100  6  - 
 Commercial mortgage owner occupied loans4  39  -  - 
 Commercial mortgage non-owner occupied loans4  1  -  - 
Residential mortgage loans262  39 2  - 
Consumer:         
 Home equity71  3  -  - 
 Automobile loans143  2  -  - 
 Credit card1,713  11 2  - 
Total portfolio loans and leases2,241 $195  10  - 
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
June 30, 2013 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial:         
 Commercial and industrial loans 43 $112  (1)  - 
 Commercial mortgage owner occupied loans14  5  -  - 
 Commercial mortgage non-owner occupied loans19  37  (3)  - 
 Commercial construction loans 1   1  -  - 
Residential mortgage loans420  68  8  - 
Consumer:         
 Home equity178  11  (1)  - 
 Automobile loans133  3  1  - 
 Credit card2,180  13  2  - 
Total portfolio loans and leases2,988 $250  6  - 

  • Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
  • Represents number of loans post-modification.

The following table provides a summary of loans modified in a TDR by the Bancorp during the six months ended:
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
 modified in a TDRin a TDR to ALLL uponrecognized upon
June 30, 2014 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial:         
 Commercial and industrial loans 66 $119  2  - 
 Commercial mortgage owner-occupied loans20  51  (1)  - 
 Commercial mortgage nonowner-occupied loans11  7  (1)  - 
Residential mortgage loans572  84 5  - 
Consumer:         
 Home equity106  4  -  - 
 Automobile loans259  4  -  - 
 Credit card3,664  23 4  - 
Total portfolio loans and leases4,698 $292  9  - 
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
 modified in a TDRin a TDR to ALLL uponrecognized upon
June 30, 2013 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial:         
 Commercial and industrial loans 63 $121  -  1 
 Commercial mortgage owner-occupied loans(c)24  9  (1)  - 
 Commercial mortgage nonowner-occupied loans34  54  (5)  - 
 Commercial construction loans2  7  (1)  - 
Residential mortgage loans814  129 16  - 
Consumer:         
 Home equity504  27  -  - 
 Automobile loans248  9 1  - 
 Credit card4,492  28 4  - 
Total portfolio loans and leases6,181 $384 14 1 

  • Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
  • Represents number of loans post-modification.
  • Excludes five loans modified in a TDR during the six months ended June 30, 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 June 30, 2014 and 2013 and within 12 months of the restructuring date:
       
  Number of Recorded
June 30, 2014 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial and industrial loans 3 $6 
Residential mortgage loans40  6 
Consumer:     
 Home equity10  1 
 Automobile loans 2   - 
 Credit card363  3 
Total portfolio loans and leases418 $16 
       
  Number of Recorded
June 30, 2013 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial and industrial loans 1 $ - 
 Commercial mortgage owner-occupied loans4  1 
Residential mortgage loans55  8 
Consumer:     
 Home equity20  1 
 Credit card411  2 
Total portfolio loans and leases491 $12 

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

The following table provides a summary of subsequent defaults that occurred during the six months ended June 30, 2014 and 2013 and within 12 months of the restructuring date:
       
  Number of Recorded
June 30, 2014 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial and industrial loans 9 $20 
 Commercial mortgage owner-occupied loans2  3 
Residential mortgage loans81  12 
Consumer:     
 Home equity20  1 
 Automobile loans4   - 
 Credit card870   6 
Total portfolio loans and leases986 $42 
       
  Number of Recorded
June 30, 2013 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial and industrial loans 2 $ - 
 Commercial mortgage owner-occupied loans4  1 
Residential mortgage loans226  37 
Consumer:     
 Home equity34  2 
 Automobile loans3   - 
 Credit card926  6 
Total portfolio loans and leases1,195 $46 

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