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Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 3 Months Ended
Mar. 31, 2015
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 March 31, 2015    Residential      
($ in millions)  CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:            
 Balance, beginning of period $ 875  104  237 106  1,322 
 Losses charged-off   (48)  (9)  (58)  -  (115) 
 Recoveries of losses previously charged-off   9  3  12  -  24 
 Provision for loan and lease losses   16  5  50  (2)  69 
Balance, end of period $ 852  103  241  104  1,300 
              
For the three months ended March 31, 2014    Residential      
($ in millions)  CommercialMortgageConsumerUnallocatedTotal
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 
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, 2015 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 175i(c) 64  56  -  295 
 Collectively evaluated for impairment  677  39  185  -  901 
 Unallocated  -  -  -  104  104 
Total ALLL$ 852  103  241  104  1,300 
Loans and leases:(b)           
 Individually evaluated for impairment$ 1,192i(c) 569  464  -  2,225 
 Collectively evaluated for impairment  54,157  11,872  22,862  -  88,891 
 Loans acquired with deteriorated credit quality  -  2  -  -  2 
Total portfolio loans and leases$ 55,349  12,443  23,326  -  91,118 

  • Includes $6 related to leveraged leases.
  • Excludes $126 of residential mortgage loans measured at fair value, and includes $873 of leveraged leases, net of unearned income.
  • Includes five restructured loans at March 31, 2015 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 ALLL of $10.

             
    Residential      
As of December 31, 2014 ($ in millions) Commercial MortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 179i(c) 65  61 -  305 
 Collectively evaluated for impairment  696  39  176 -  911 
 Unallocated - - -  106  106 
Total ALLL$ 875  104  237  106  1,322 
Loans and leases:(b)           
 Individually evaluated for impairment$ 1,260i(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 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 ALLL of $10.
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 March 31, 2015 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 39,390  1,293  1,369  -  42,052 
Commercial mortgage owner-occupied loans  3,447  108  255  -  3,810 
Commercial mortgage nonowner-occupied loans  3,092  94  213  -  3,399 
Commercial construction loans  2,217  48  37  -  2,302 
Commercial leases  3,720  31  35  -  3,786 
Total$ 51,866  1,574  1,909  -  55,349 

            
    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 
            

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:
          
  March 31, 2015December 31, 2014
($ in millions) PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$ 12,372  71  12,204  77 
Home equity  8,624  90  8,793  93 
Automobile loans  11,871  2  12,036  1 
Credit card  2,253  38  2,360  41 
Other consumer loans and leases  448  -  418  - 
Total$ 35,568  201  35,811  212 

  • Excludes $126 and $108 of loans measured at fair value at March 31, 2015 and December 31, 2014, 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, 2015 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 $41,949 33 70 103 42,052 2 
 Commercial mortgage owner-occupied loans 3,755 14 41 55 3,810 1 
 Commercial mortgage nonowner-occupied loans 3,368 5 26 31 3,399  - 
 Commercial construction loans 2,302  -  -  - 2,302  - 
 Commercial leases 3,783  - 3 3 3,786  - 
Residential mortgage loans(a) (b) 12,293 31 119 150 12,443 48 
Consumer:             
 Home equity 8,561 82 71 153 8,714  - 
 Automobile loans 11,813 51 9 60 11,873 7 
 Credit card 2,239 25 27 52 2,291 20 
 Other consumer loans and leases  447 1  - 1 448  - 
Total portfolio loans and leases(a)$90,510 242 366 608 91,118 78 

  • Excludes $126 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 March 31, 2015, $79 of these loans were 30-89 days past due and $375 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2015, respectively, 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, 2014 Loans and  30-89andTotal 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 $5 of losses during the three months ended March 31, 2014 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 loans and leases restructured in a TDR:
          
    Unpaid    
As of March 31, 2015  PrincipalRecorded   
($ in millions)  BalanceInvestmentALLL
With a related ALLL recorded:        
Commercial:        
 Commercial and industrial loans  $640 540 150 
 Commercial mortgage owner-occupied loans(b)  48 41 7 
 Commercial mortgage nonowner-occupied loans  90 72 5 
 Commercial construction loans  30 30  - 
 Commercial leases  3 3 3 
Restructured residential mortgage loans  412 407 64 
Restructured consumer:        
 Home equity  249 248 37 
 Automobile loans  20 20 2 
 Credit card  71 71 17 
Total impaired loans and leases with a related ALLL $1,563 1,432 285 
With no related ALLL recorded:        
Commercial:        
 Commercial and industrial loans  $246 214  - 
 Commercial mortgage owner-occupied loans  73 68  - 
 Commercial mortgage nonowner-occupied loans  174 164  - 
 Commercial construction loans  31 31  - 
 Commercial leases  1 1  - 
Restructured residential mortgage loans  187 162  - 
Restructured consumer:        
 Home equity  126 122  - 
 Automobile loans  3 3  - 
Total impaired loans and leases with no related ALLL  841 765  - 
Total impaired loans and leases $2,404 2,197a(a)285 

  • Includes $774, $538 and $405, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $205, $31 and $59, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status.
  • Excludes five restructured loans at March 31, 2015 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, 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 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.

The following table summarizes the Bancorp’s average impaired loans and leases by class and interest income by class for the three months ended:
             
     March 31, 2015 March 31, 2014
     AverageInterest AverageInterest
     RecordedIncome RecordedIncome
($ in millions)   InvestmentRecognized InvestmentRecognized
Commercial:           
 Commercial and industrial loans   $742 5  832 5
 Commercial mortgage owner-occupied loans(a)   112 1  162 1
 Commercial mortgage nonowner-occupied loans   262 2  273 2
 Commercial construction loans   62  -  114  -
 Commercial leases   5  -  22  -
Restructured residential mortgage loans   552 6  1,312 13
Restructured consumer:           
 Home equity   375 3  406 5
 Automobile loans   23  -  24  -
 Credit card   75 2  57 1
Total impaired loans and leases  $2,208 19  3,202 27

  • Excludes five restructured nonaccrual 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 at March 31, 2015 and March 31, 2014 and an immaterial amount of interest income recognized for the three months ended March 31, 2015 and March 31, 2014.
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) 20152014
Commercial:     
 Commercial and industrial loans $197 228 
 Commercial mortgage owner-occupied loans(a)  72 78 
 Commercial mortgage nonowner-occupied loans 53 57 
 Commercial leases 3 4 
Total commercial loans and leases 325 367 
Residential mortgage loans 71 77 
Consumer:     
 Home equity 90 93 
 Automobile loans 2 1 
 Credit card 38 41 
Total consumer loans and leases 130 135 
Total nonperforming loans and leases(b) (c)$526 579 
OREO and other repossessed property(d)$165 165a

  • Excludes $21 of restructured nonaccrual loans at both March 31, 2015 and 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.
  • Excludes $2 and $39 of nonaccrual loans held for sale at March 31, 2015 and December 31, 2014, respectively.
  • Includes $9 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2015 and December 31, 2014 and $4 of restructured nonaccrual government insured commercial loans at March 31, 2015 and December 31, 2014.
  • Excludes $42 and $71 of OREO related to government insured loans at March 31, 2015 and December 31, 2014, respectively. The Bancorp has historically excluded government guaranteed loans classified in OREO from its nonperforming asset disclosures. Upon the prospective adoption on January 1, 2015 of ASU 2014-14 “Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure,” government guaranteed loans meeting certain criteria will be reclassified to other receivables rather than OREO upon foreclosure. As of March 31, 2015, the Bancorp had $21 of government guaranteed loans classified as other receivables. Refer to Note 3 for further information on the adoption of this amended guidance.
Summary of Loans Modified in a TDR
The following tables provide a summary of loans (by class) 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, 2015 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial:         
 Commercial and industrial loans 21 $18  (7)  3 
 Commercial mortgage owner-occupied loans7  8  (1)  - 
 Commercial mortgage nonowner-occupied loans6  3  -  - 
Residential mortgage loans300  42 1  - 
Consumer:         
 Home equity76  4  -  - 
 Automobile loans131  2  -  - 
 Credit card3,667  19 4  - 
Total portfolio loans and leases4,208 $96  (3)  3 
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
March 31, 2014 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial:         
 Commercial and industrial loans 22 $19  (4)  - 
 Commercial mortgage owner-occupied loans16  12  (1)  - 
 Commercial mortgage nonowner-occupied loans7  6  (1)  - 
Residential mortgage loans310  45  3  - 
Consumer:         
 Home equity35  1  -  - 
 Automobile loans116  2  -  - 
 Credit card1,951  12  2  - 
Total portfolio loans and leases2,457 $97  (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.
Summary of Subsequent Defaults
The following tables provide a summary of subsequent defaults of TDRs that occurred during the three months ended March 31, 2015 and 2014 and within 12 months of the restructuring date:
       
  Number of Recorded
March 31, 2015 ($ in millions)(a)Contracts Investment
Residential mortgage loans40 $5 
Consumer:     
 Home equity5   - 
 Automobile loans4   - 
 Credit card588  3 
Total portfolio loans and leases637 $8 
       
  Number of Recorded
March 31, 2014 ($ in millions)(a)Contracts Investment
Commercial:     
 Commercial and industrial loans 6 $14 
 Commercial mortgage owner-occupied loans2  3 
Residential mortgage loans41  6 
Consumer:     
 Home equity10   - 
 Automobile loans2   - 
 Credit card507  3 
Total portfolio loans and leases568 $26 

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