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Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 12 Months Ended
Dec. 31, 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 year ended December 31, 2014   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance at January 1$ 1,058  189  225  110  1,582 
 Losses charged-off  (299)  (139)  (241)  -  (679) 
 Recoveries of losses previously charged-off  38  13  53  -  104 
 Provision for loan and lease losses  78  41  200  (4)  315 
Balance at December 31$ 875  104  237  106  1,322 
             
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 
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, 2014 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 179a(c) 65  61  -  305 
 Collectively evaluated for impairment  696  39  176  -  911 
 Unallocated  -  -  -  106  106 
Total ALLL$ 875  104  237  106  1,322 
Portfolio loans and leases:(b)           
 Individually evaluated for impairment$ 1,260a(c) 518  483  -  2,261 
 Collectively evaluated for impairment  52,693  11,761  23,259  -  87,713 
 Loans acquired with deteriorated credit quality  -  2  -  -  2 
Total portfolio loans and leases$ 53,953  12,281  23,742  -  89,976 

  • Includes $6 related to leveraged leases.
  • Excludes $108 of residential mortgage loans measured at fair value, and includes $874 of leveraged leases, net of unearned income.
  • Includes five restructured nonaccrual loans at December 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 $10.

 

     Residential      
As of December 31, 2013 ($ in millions) Commercial MortgageConsumerUnallocatedTotal
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 
Portfolio 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 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 tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class:
            
    Special      
As of December 31, 2014 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 38,013  1,352  1,400  -  40,765 
Commercial mortgage owner-occupied loans  3,430  137  267  -  3,834 
Commercial mortgage nonowner-occupied loans   3,198  76  284  7  3,565 
Commercial construction loans  1,966  65  38  -  2,069 
Commercial leases  3,678  9  33  -  3,720 
Total$ 50,285  1,639  2,022  7  53,953 

    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 nonowner-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, by class, disaggregated into performing versus nonperforming status as of December 31:
          
  20142013
($ in millions) PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$ 12,204  77  12,423  165 
Home equity  8,793  93  9,153  93 
Automobile loans  12,036  1  11,982  2 
Credit card  2,360  41  2,261  33 
Other consumer loans and leases  418  -  364  - 
Total$ 35,811  212  36,183  293 

  • Excludes $108 and $92 of loans measured at fair value at December 31, 2014 and 2013, 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, 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 $40,651 29 85 114 40,765  - 
 Commercial mortgage owner-occupied loans 3,774 7 53 60 3,834  - 
 Commercial mortgage nonowner-occupied loans 3,537 11 17 28 3,565  - 
 Commercial construction loans 2,069  -  -  - 2,069  - 
 Commercial leases 3,717 3  - 3 3,720  - 
Residential mortgage loans(a)(b) 12,109 38 134 172 12,281 56 
Consumer:             
 Home equity 8,710 100 76 176 8,886  - 
 Automobile loans 11,953 74 10 84 12,037 8 
 Credit card 2,335 34 32 66 2,401 23 
 Other consumer loans and leases  417 1  - 1 418  - 
Total portfolio loans and leases(a)$89,272 297 407 704 89,976 87 

  • Excludes $108 of loans measured at fair value.
  • Information for current residential mortgage loans includes loans whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2014, $99 of these loans were 30-89 days past due and $373 were 90 days or more past due. The Bancorp recognized $14 of losses for the year ended December 31, 2014 due to claim denials and curtailments associated with these insured or guaranteed 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 nonowner-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 FHA or guaranteed by the VA. 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 insured or guaranteed 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 portfolio loans and leases restructured in a TDR as of December 31:
             
      Unpaid    
2014   PrincipalRecorded   
($ in millions)   BalanceInvestmentALLL
With a related ALLL recorded:           
Commercial:           
 Commercial and industrial loans     $598 486 149 
 Commercial mortgage owner-occupied loans(b)     54 46 14 
 Commercial mortgage nonowner-occupied loans     69 57 4 
 Commercial construction loans     18 15  - 
 Commercial leases     3 3 2 
Restructured residential mortgage loans     388 383 65 
Restructured consumer:           
 Home equity     203 201 42 
 Automobile loans     19 19 3 
 Credit card     78 78 16 
Total impaired loans and leases with a related ALLL    $1,430 1,288 295 
With no related ALLL recorded:           
Commercial:           
 Commercial and industrial loans     $311 276  - 
 Commercial mortgage owner-occupied loans     72 68  - 
 Commercial mortgage nonowner-occupied loans     251 231  - 
 Commercial construction loans     48 48  - 
 Commercial leases     2 2  - 
Restructured residential mortgage loans     155 135  - 
Restructured consumer:           
 Home equity     183 180  - 
 Automobile loans     5 5  - 
Total impaired loans and leases with no related ALLL     1,027 945  - 
Total impaired loans and leases    $2,457 2,233a(a)295 

  • Includes $869, $485 and $420, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $214, $33 and $63, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status.
  • Excludes five restructured nonaccrual loans at December 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 $10.

       Unpaid    
2013     PrincipalRecorded   
($ in millions)     BalanceInvestmentALLL
With a related ALLL recorded:           
Commercial:           
 Commercial and industrial loans     $870 759 145 
 Commercial mortgage owner-occupied loans(b)     85 74 11 
 Commercial mortgage nonowner-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 ALLL    $2,729 2,539 367 
With no related ALLL recorded:           
Commercial:           
 Commercial and industrial loans     $181 177  - 
 Commercial mortgage owner-occupied loans     106 98  - 
 Commercial mortgage nonowner-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 ALLL     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 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 (by class) and interest income (by class) for the year ended December 31:
                   
    2014 2013 2012 
    AverageInterest AverageInterest AverageInterest 
    RecordedIncome RecordedIncome RecordedIncome 
($ in millions)  InvestmentRecognized InvestmentRecognized InvestmentRecognized 
Commercial:                 
 Commercial and industrial loans  $786 25  517  16 448  4 
 Commercial mortgage owner-occupied loans(a)  149 4  146  4 156  4 
 Commercial mortgage nonowner-occupied loans  268 8  321  8 361  10 
 Commercial construction loans  92 2  108  4 160  2 
 Commercial leases  13  -  11   - 10   - 
Restructured residential mortgage loans  1,273 54  1,311  53 1,276  47 
Restructured consumer:                 
 Home equity  394 20  429  23 439  24 
 Automobile loans  24 1  29  1 38  1 
 Credit card  62 5  68  4 80  4 
 Other consumer loans and leases    -  -  2   - 1   - 
Total impaired loans and leases $3,061 119  2,942  113 2,969  96 

  • Excludes five restructured nonaccrual loans at December 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 average recorded investment of $28 for the years ended December 31, 2014 and 2013 and an immaterial amount of interest income recognized for the years ended December 31, 2014 and 2013.
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) 20142013
Commercial:     
 Commercial and industrial loans $228 281 
 Commercial mortgage owner-occupied loans(a)  78 95 
 Commercial mortgage nonowner-occupied loans 57 48 
 Commercial construction loans  - 29 
 Commercial leases 4 5 
Total commercial loans and leases 367 458 
Residential mortgage loans 77 166 
Consumer:     
 Home equity 93 93 
 Automobile loans 1 1 
 Credit card 41 33 
Total consumer loans and leases 135 127 
Total nonperforming loans and leases(b)(c)$579 751 
OREO and other repossessed property(d) 165 229 

  • Excludes $21 of restructured nonaccrual loans at December 31, 2014 and 2013 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party.
  • Excludes $39 and $6 of nonaccrual loans held for sale at December 31, 2014 and 2013, respectively.
  • Includes $9 and $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2014 and 2013, respectively, and $4 and $2 of restructured nonaccrual government insured commercial loans at December 31, 2014 and 2013, respectively.
  • Excludes $71 and $77 of OREO related to government insured loans at December 31, 2014 and 2013, respectively.
Summary of Loans Modified in a TDR
The following tables provide a summary of loans modified in a TDR by the Bancorp during the years ended December 31:
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
2014 ($ in millions)(a)during the year(b)during the yearmodificationmodification
Commercial:         
 Commercial and industrial loans 128 $230  12  6 
 Commercial mortgage owner-occupied loans32  54  (1)  - 
 Commercial mortgage nonowner-occupied loans28  30  (3)  2 
Residential mortgage loans1,093  160 8  - 
Consumer:         
 Home equity284  12  -  - 
 Automobile loans608  10 1  - 
 Credit card8,929  52 10  - 
Total portfolio loans and leases11,102 $548 27  8 
           
    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 nonowner-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 nonowner-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 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 at modification, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon modification.

 
Summary of Subsequent Defaults
The following tables provide a summary of subsequent defaults that occurred during the years ended December 31, 2014 and 2013 and within 12 months of the restructuring date:
       
  Number of Recorded
December 31, 2014 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial and industrial loans 11 $36 
 Commercial mortgage owner-occupied loans3  4 
 Commercial mortgage nonowner-occupied loans2  1 
Residential mortgage loans235  32 
Consumer:     
 Home equity30  2 
 Automobile loans6   - 
 Credit card2,059  12 
Total portfolio loans and leases2,346 $87 
       
  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 nonowner-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.