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Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2015   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance, beginning of period$ 852  103  241  104  1,300 
 Losses charged-off  (54)  (8)  (50)  -  (112) 
 Recoveries of losses previously charged-off  9  3  14  -  26 
 Provision for loan and lease losses  48  6  26  (1)  79 
Balance, end of period$ 855  104  231  103  1,293 
             
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 six months ended June 30, 2015   Residential      
($ in millions) CommercialMortgageConsumerUnallocatedTotal
Transactions in the ALLL:           
 Balance, beginning of period$ 875  104  237  106  1,322 
 Losses charged-off  (102)  (17)  (108)  -  (227) 
 Recoveries of losses previously charged-off  18  6  26  -  50 
 Provision for loan and lease losses  64  11  76  (3)  148 
Balance, end of period$ 855  104  231  103  1,293 
             
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 
             
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, 2015 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 162i(c) 65  53  -  280 
 Collectively evaluated for impairment  693  39  178  -  910 
 Unallocated  -  -  -  103  103 
Total ALLL$ 855  104  231  103  1,293 
Loans and leases:(b)           
 Individually evaluated for impairment$ 1,099i(c) 603  450  -  2,152 
 Collectively evaluated for impairment  55,441  12,150  22,780  -  90,371 
 Loans acquired with deteriorated credit quality  -  2  -  -  2 
Total portfolio loans and leases$ 56,540  12,755  23,230  -  92,525 

  • Includes $5 related to leveraged leases.
  • Excludes $178 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, 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 $16.

             
    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 June 30, 2015 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 39,780  1,285  1,735  -  42,800 
Commercial mortgage owner-occupied loans  3,485  115  229  -  3,829 
Commercial mortgage nonowner-occupied loans  3,058  39  213  11  3,321 
Commercial construction loans  2,671  18  20  -  2,709 
Commercial leases  3,805  45  31  -  3,881 
Total commercial loans and leases$ 52,799  1,502  2,228  11  56,540 
            

            
    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 commercial loans and leases$ 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:
          
  June 30, 2015December 31, 2014
($ in millions) PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$ 12,693  62  12,204  77 
Home equity  8,459  88  8,793  93 
Automobile loans  11,907  2  12,036  1 
Credit card  2,242  36  2,360  41 
Other consumer loans and leases  496  -  418  - 
Total residential mortgage and consumer loans and leases(a)$ 35,797  188  35,811  212 

  • Excludes $178 and $108 of loans measured at fair value at June 30, 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 June 30, 2015 Loans and  30-89 andTotal Total LoansDue and Still
($ in millions) Leases(c) Days(c)Greater(c)Past Dueand LeasesAccruing
Commercial loans and leases:             
 Commercial and industrial loans $42,683 39 78 117 42,800 2 
 Commercial mortgage owner-occupied loans 3,780 10 39 49 3,829  - 
 Commercial mortgage nonowner-occupied loans 3,296 2 23 25 3,321  - 
 Commercial construction loans 2,709  -  -  - 2,709  - 
 Commercial leases 3,879  2  - 2 3,881  - 
Residential mortgage loans(a) (b) 12,614 35 106 141 12,755 43 
Consumer loans and leases:             
 Home equity 8,398 81 68 149 8,547  - 
 Automobile loans 11,840 59 10 69 11,909 8 
 Credit card 2,229 26 23 49 2,278 17 
 Other consumer loans and leases  495 1  - 1 496  - 
Total portfolio loans and leases(a)$91,923 255 347 602 92,525 70 

  • Excludes $178 of residential mortgage 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 June 30, 2015, $90 of these loans were 30-89 days past due and $342 were 90 days or more past due. The Bancorp recognized $2 and $4 of losses during the three and six months ended June 30, 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 loans and leases:             
 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 loans and leases:             
 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 residential mortgage 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 $2 and $7 of losses during the three and six months ended June 30, 2014, respectively, 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 June 30, 2015  PrincipalRecorded   
($ in millions)  BalanceInvestmentALLL
With a related ALLL recorded:        
Commercial loans and leases:        
 Commercial and industrial loans  $520 471 132 
 Commercial mortgage owner-occupied loans(b)  39 30 7 
 Commercial mortgage nonowner-occupied loans  68 56 4 
 Commercial construction loans  31 31 1 
 Commercial leases  7 7 2 
Restructured residential mortgage loans  418 413 65 
Restructured consumer loans and leases:        
 Home equity  239 238 36 
 Automobile loans  18 18 2 
 Credit card  67 67 15 
Total impaired loans and leases with a related ALLL $1,407 1,331 264 
With no related ALLL recorded:        
Commercial loans and leases:        
 Commercial and industrial loans  $308 237  - 
 Commercial mortgage owner-occupied loans  61 56  - 
 Commercial mortgage nonowner-occupied loans  156 151  - 
 Commercial construction loans  30 30  - 
 Commercial leases  2 2  - 
Restructured residential mortgage loans  220 190  - 
Restructured consumer loans and leases:        
 Home equity  127 123  - 
 Automobile loans  4 4  - 
Total impaired loans and leases with no related ALLL  908 793  - 
Total impaired loans and leases $2,315 2,124a(a)264 

  • Includes $769, $576 and $394, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $175, $27 and $56, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status.
  • Excludes five restructured loans at June 30, 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 $16.

          
    Unpaid    
As of December 31, 2014  PrincipalRecorded   
($ in millions)  BalanceInvestmentALLL
With a related ALLL recorded:        
Commercial loans and leases:        
 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 loans and leases:        
 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 loans and leases:        
 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 loans and leases:        
 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 tables summarize the Bancorp’s average impaired loans and leases by class and interest income by class:
             
     For the three months ended For the six months ended
     June 30, 2015 June 30, 2015
     AverageInterest AverageInterest
     RecordedIncome RecordedIncome
($ in millions)   InvestmentRecognized InvestmentRecognized
Commercial loans and leases:           
 Commercial and industrial loans   $731 6  741 12
 Commercial mortgage owner-occupied loans(a)   98  -  103 1
 Commercial mortgage nonowner-occupied loans   222 2  244 3
 Commercial construction loans   61  -  62 1
 Commercial leases   7  -  6  -
Restructured residential mortgage loans   579 6  563 11
Restructured consumer loans and leases:           
 Home equity   363 3  370 7
 Automobile loans   22  -  23  -
 Credit card   69 1  72 3
Total impaired loans and leases  $2,152 18  2,184 38

  • 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 and an immaterial amount of interest income recognized for the three months and six months ended June 30, 2015.

            
    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 loans and leases:
 Commercial and industrial loans  $744 7 $788 12
 Commercial mortgage owner-occupied loans(a)  146 1  154 2
 Commercial mortgage nonowner-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 loans and leases: 
 Home equity 395 6  401 11
 Automobile loans 24  -  24  -
 Credit card 55 1  56 2
Total impaired loans and leases $3,030 32 $3,117 59

  • 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 and an immaterial amount of interest income recognized for the three and six months ended June 30, 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:
       
   June 30,December 31,
($ in millions) 20152014
Commercial loans and leases:     
 Commercial and industrial loans $178 228 
 Commercial mortgage owner-occupied loans(a)  64 78 
 Commercial mortgage nonowner-occupied loans 42 57 
 Commercial leases 3 4 
Total commercial loans and leases 287 367 
Residential mortgage loans 62 77 
Consumer loans and leases:     
 Home equity 88 93 
 Automobile loans 2 1 
 Credit card 36 41 
Total consumer loans and leases 126 135 
Total nonperforming loans and leases(b) (c)$475 579 
OREO and other repossessed property(d)$151 165a

  • Excludes $21 of restructured nonaccrual loans at both June 30, 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 $1 and $39 of nonaccrual loans held for sale at June 30, 2015 and December 31, 2014, respectively.
  • Includes $9 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at both June 30, 2015 and December 31, 2014 and $4 of restructured nonaccrual government insured commercial loans at both June 30, 2015 and December 31, 2014.
  • Excludes $28 and $71 of OREO related to government insured loans at June 30, 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. At June 30, 2015, the Bancorp had $37 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
June 30, 2015 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial loans and leases:         
 Commercial and industrial loans 27 $70  7  - 
 Commercial mortgage owner-occupied loans6  7  (1)  - 
 Commercial mortgage nonowner-occupied loans5  4  -  - 
Residential mortgage loans254  35 3  - 
Consumer loans and leases:         
 Home equity67  3  (1)  - 
 Automobile loans128  2  -  - 
 Credit card2,981  15 3  3 
Total portfolio loans and leases3,468 $136  11  3 

  • 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.

           
    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 loans and leases:         
 Commercial and industrial loans 44 $100  6  - 
 Commercial mortgage owner-occupied loans4  39  -  - 
 Commercial mortgage nonowner-occupied loans4  1  -  - 
Residential mortgage loans262  39  2  - 
Consumer loans and leases:         
 Home equity71  3  -  - 
 Automobile loans143  2  -  - 
 Credit card1,713  11  2  - 
Total portfolio loans and leases2,241 $195  10  - 

  • 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 tables provide 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, 2015 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial loans and leases:         
 Commercial and industrial loans 48 $88  -  3 
 Commercial mortgage owner-occupied loans13  15  (2)  - 
 Commercial mortgage nonowner-occupied loans11  7  -  - 
Residential mortgage loans554  77 4  - 
Consumer loans and leases:         
 Home equity143  7  (1)  - 
 Automobile loans259  4  -  - 
 Credit card6,648  34 7  3 
Total portfolio loans and leases7,676 $232 8  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.

           
    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 loans and leases:         
 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 loans and leases:         
 Home equity106  4  -  - 
 Automobile loans259  4  -  - 
 Credit card3,664  23 4  - 
Total portfolio loans and leases4,698 $292 9  - 

  • 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 June 30, 2015 and 2014 and within 12 months of the restructuring date:
       
  Number of Recorded
June 30, 2015 ($ in millions)(a)Contracts Investment
Commercial loans and leases:     
 Commercial and industrial loans 4 $ 7 
Residential mortgage loans30  4 
Consumer loans and leases:     
 Home equity3   - 
 Automobile loans4   - 
 Credit card557  3 
Total portfolio loans and leases598 $14 

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

       
  Number of Recorded
June 30, 2014 ($ in millions)(a)Contracts Investment
Commercial loans and leases:     
 Commercial and industrial loans 3 $6 
Residential mortgage loans40  6 
Consumer loans and leases:     
 Home equity10  1 
 Automobile loans2   - 
 Credit card363  3 
Total portfolio loans and leases418 $16 

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

       
The following tables provide a summary of subsequent defaults that occurred during the six months ended June 30, 2015 and 2014 and within 12 months of the restructuring date:
       
  Number of Recorded
June 30, 2015 ($ in millions)(a)Contracts Investment
Commercial loans and leases:     
 Commercial and industrial loans 4 $7 
Residential mortgage loans70  9 
Consumer loans and leases:     
 Home equity8   - 
 Automobile loans8   - 
 Credit card1,145  6 
Total portfolio loans and leases1,235 $22 

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

       
  Number of Recorded
June 30, 2014 ($ in millions)(a)Contracts Investment
Commercial loans and leases:     
 Commercial and industrial loans 9 $20 
 Commercial mortgage owner-occupied loans2  3 
Residential mortgage loans81  12 
Consumer loans and leases:     
 Home equity20  1 
 Automobile loans4   - 
 Credit card870  6 
Total portfolio loans and leases986 $42 

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