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Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 12 Months Ended
Dec. 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 years ended December 31:
             
    Residential      
2015 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
Balance, beginning of period$ 875  104  237  106  1,322 
 Losses charged-off  (298)  (28)  (216)  -  (542) 
 Recoveries of losses previously charged-off  37  11  48  -  96 
 Provision for loan and lease losses  226  13  148  9  396 
Balance, end of period$ 840  100  217  115  1,272 
             
    Residential      
2014 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
Balance, beginning of period$ 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, end of period$ 875  104  237  106  1,322 
             
    Residential      
2013 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
Balance, beginning of period$ 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, end of period$ 1,058  189  225  110  1,582 
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, 2015 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 119a(c) 67  49  -  235 
 Collectively evaluated for impairment  721  33  168  -  922 
 Unallocated  -  -  -  115  115 
Total ALLL$ 840  100  217  115  1,272 
Portfolio loans and leases:(b)           
 Individually evaluated for impairment$ 815a(c) 630  424  -  1,869 
 Collectively evaluated for impairment  55,341  12,917  22,286  -  90,544 
 Loans acquired with deteriorated credit quality  -  2  -  -  2 
Total portfolio loans and leases$ 56,156  13,549  22,710  -  92,415 

  • Includes $5 related to leveraged leases at December 31, 2015.
  • Excludes $167 of residential mortgage loans measured at fair value and includes $801 of leveraged leases, net of unearned income, at December 31, 2015.
  • Includes five restructured loans at December 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 $27 and an ALLL of $15.

             
    Residential      
As of December 31, 2014 ($ in millions) Commercial MortgageConsumerUnallocatedTotal
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 at December 31, 2014.
  • Excludes $108 of residential mortgage loans measured at fair value and includes $874 of leveraged leases, net of unearned income, at December 31, 2014.
  • 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 December 31, 2015 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 38,756  1,633  1,742  -  42,131 
Commercial mortgage owner-occupied loans  3,344  124  191  -  3,659 
Commercial mortgage nonowner-occupied loans   3,105  63  130  -  3,298 
Commercial construction loans  3,201  4  9  -  3,214 
Commercial leases  3,724  93  37  -  3,854 
Total commercial loans and leases$ 52,130  1,917  2,109  -  56,156 

            
    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 December 31:
          
  20152014
($ in millions) PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$ 13,498  51  12,204  77 
Home equity  8,222  79  8,793  93 
Automobile loans  11,491  2  12,036  1 
Credit card  2,226  33  2,360  41 
Other consumer loans and leases  657  -  418  - 
Total residential mortgage and consumer loans and leases(a)$ 36,094  165  35,811  212 

  • Excludes $167 and $108 of loans measured at fair value at December 31, 2015 and 2014, 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:
               
   CurrentPast Due  90 Days Past
  Loans and 30-89 90 Days Total Total LoansDue and Still
As of December 31, 2015 ($ in millions) Leases(c)Days(c)or More(c)Past Dueand LeasesAccruing
Commercial loans and leases:             
 Commercial and industrial loans $ 41,996  55  80  135  42,131  7 
 Commercial mortgage owner-occupied loans  3,610  15  34  49  3,659  - 
 Commercial mortgage nonowner-occupied loans  3,262  9  27  36  3,298  - 
 Commercial construction loans  3,214  -  -  -  3,214  - 
 Commercial leases  3,850  3  1  4  3,854  - 
Residential mortgage loans(a)(b)  13,420  37  92  129  13,549  40 
Consumer loans and leases:             
 Home equity  8,158  82  61  143  8,301  - 
 Automobile loans  11,407  75  11  86  11,493  10 
 Credit card  2,207  29  23  52  2,259  18 
 Other consumer loans and leases   656  1  -  1  657  - 
Total portfolio loans and leases(a)$ 91,780  306  329  635  92,415  75 

  • Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.
  • Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2015, $102 of these loans were 30-89 days past due and $335 were 90 days or more past due. The Bancorp recognized $8 of losses during the year ended December 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans.
  • Includes accrual and nonaccrual loans and leases.

               
   CurrentPast Due  90 Days Past
  Loans and 30-8990 Days Total Total LoansDue and Still
As of December 31, 2014 ($ in millions) Leases(c)Days(c)or More(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 at December 31, 2014.
  • Information includes advances made pursuant to servicing agreements for GNMA mortgage pools 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 during 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.
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class
             
The following tables summarize the Bancorp’s impaired portfolio 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    
    PrincipalRecorded   
2015 ($ in millions)   BalanceInvestmentALLL
With a related ALLL:           
Commercial loans and leases:           
 Commercial and industrial loans     $412 346 84 
 Commercial mortgage owner-occupied loans(b)     28 21 5 
 Commercial mortgage nonowner-occupied loans     75 64 12 
 Commercial construction loans     4 4 2 
 Commercial leases     3 3 1 
Restructured residential mortgage loans     450 444 67 
Restructured consumer loans and leases:           
 Home equity     226 225 32 
 Automobile loans     17 16 2 
 Credit card     61 61 15 
Total impaired portfolio loans and leases with a related ALLL    $1,276 1,184 220 
With no related ALLL:           
Commercial loans and leases:           
 Commercial and industrial loans     $228 182  - 
 Commercial mortgage owner-occupied loans     54 51  - 
 Commercial mortgage nonowner-occupied loans     126 111  - 
 Commercial construction loans     9 5  - 
 Commercial leases     1 1  - 
Restructured residential mortgage loans     210 186  - 
Restructured consumer loans and leases:           
 Home equity     122 119  - 
 Automobile loans     3 3  - 
Total impaired portfolio loans and leases with no related ALLL     753 658  - 
Total impaired portfolio loans and leases    $2,029 1,842a(a)220 

  • Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015.
  • Excludes five restructured loans at December 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 $27, a recorded investment of $27 and an ALLL of $15.

             
       Unpaid    
      PrincipalRecorded   
2014 ($ in millions)     BalanceInvestmentALLL
With a related ALLL:           
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 portfolio loans and leases with a related ALLL    $1,430 1,288 295 
With no related ALLL:           
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 portfolio loans and leases with no related ALLL     1,027 945  - 
Total impaired portfolio loans and leases    $2,457 2,233a(a)295 

  • Includes $869, $485 and $420, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $214, $33 and $63, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2014.
  • 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 ALLL of $10.

                   
The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31:
                   
    2015 2014 2013 
    AverageInterest AverageInterest AverageInterest 
    RecordedIncome RecordedIncome RecordedIncome 
($ in millions)  InvestmentRecognized InvestmentRecognized InvestmentRecognized 
Commercial loans and leases:                 
 Commercial and industrial loans  $ 663  21   786   25  517   16 
 Commercial mortgage owner-occupied loans(a)   92  2   149   4  146   4 
 Commercial mortgage nonowner-occupied loans   224  7   268   8  321   8 
 Commercial construction loans   41  1   92   2  108   4 
 Commercial leases   5  -   13   -  11   - 
Restructured residential mortgage loans   586  23   1,273   54  1,311   53 
Restructured consumer loans and leases:                 
 Home equity   361  13   394   20  429   23 
 Automobile loans   22  1   24   1  29   1 
 Credit card   68  6   62   5  68   4 
 Other consumer loans and leases    -  -   -   -  2   - 
Total average impaired portfolio loans and leases $ 2,062  74   3,061   119  2,942   113 

  • 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 $27 for the year ended December 31, 2015 and $28 for both of the years ended December 31, 2014 and 2013. An immaterial amount of interest income was recognized during the years ended December 31, 2015, 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; 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 presents the Bancorp’s nonperforming loans and leases, by class, and OREO and other repossessed property as of December 31:
       
($ in millions) 20152014
Commercial loans and leases:     
 Commercial and industrial loans $ 259  228 
 Commercial mortgage owner-occupied loans(a)   46  78 
 Commercial mortgage nonowner-occupied loans  35  57 
 Commercial leases  1  4 
Total nonaccrual portfolio commercial loans and leases  341  367 
Residential mortgage loans  51  77 
Consumer loans and leases:     
 Home equity  79  93 
 Automobile loans  2  1 
 Credit card  33  41 
Total nonaccrual portfolio consumer loans and leases  114  135 
Total nonaccrual portfolio loans and leases(b)(c)$ 506  579 
OREO and other repossessed property(d)  141  165 
Total nonperforming portfolio assets(b)(c)(d)$ 647  744 

  • Excludes $20 and $21 of restructured nonaccrual loans at December 31, 2015 and 2014, respectively, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party.
  • Excludes $12 and $39 of nonaccrual loans held for sale at December 31, 2015 and 2014, respectively.
  • Includes $6 and $9 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2015 and 2014, respectively, and $2 and $4 of restructured nonaccrual government insured commercial loans at December 31, 2015 and 2014, respectively.
  • Excludes $14 and $71 of OREO related to government insured loans at December 31, 2015 and 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 were reclassified to other receivables rather than OREO upon foreclosure. At December 31, 2015, the Bancorp had $44 of government guaranteed loans classified as other receivables. Refer to Note 1 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 years ended December 31:
           
    Recorded investmentIncrease  
  Number of loansin loans modified(Decrease)Charge-offs
  modified in a TDRin a TDR to ALLL uponrecognized upon
2015 ($ in millions)(a)during the year(b)during the yearmodificationmodification
Commercial loans and leases:         
 Commercial and industrial loans 77 $ 146  7  3 
 Commercial mortgage owner-occupied loans 18   16  (2)  - 
 Commercial mortgage nonowner-occupied loans 12   7  (1)  - 
Residential mortgage loans 1,089   155  8  - 
Consumer loans and leases:         
 Home equity 267   16  (1)  - 
 Automobile loans 440   7  1  - 
 Credit card 12,569   62  11  7 
Total portfolio loans and leases 14,472 $ 409  23  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 and excludes loans previously modified in a TDR.

           
    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 loans and leases:         
 Commercial and industrial loans 128 $ 230  12  6 
 Commercial mortgage owner-occupied loans 32   54  (1)  - 
 Commercial mortgage nonowner-occupied loans 28   30  (3)  2 
Residential mortgage loans 1,093   160  8  - 
Consumer loans and leases:         
 Home equity 284   12  -  - 
 Automobile loans 608   10  1  - 
 Credit card 8,929   52  10  - 
Total portfolio loans and leases 11,102 $ 548  27  8 

  • 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 and excludes loans previously modified in a TDR.

           
    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 loans and leases:         
 Commercial and industrial loans 146 $ 604  39  44 
 Commercial mortgage owner-occupied loans(c) 65   19  (2)  - 
 Commercial mortgage nonowner-occupied loans 59   72  (7)  - 
 Commercial construction loans 4   34  (2)  - 
 Commercial leases 1   2  (5)  - 
Residential mortgage loans 1,620   249  28  - 
Consumer loans and leases:         
 Home equity 695   37  (1)  - 
 Automobile loans 499   14  1  - 
 Credit card 8,202   50  7  - 
Total portfolio loans and leases 11,291 $ 1,081  58  44 

  • 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 and excludes loans previously modified in a TDR.
  • 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, the 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 TDRs that subsequently defaulted during the years ended December 31, 2015, 2014 and 2013 that was within twelve months of the restructuring date:
       
  Number of Recorded
December 31, 2015 ($ in millions)(a)Contracts Investment
Commercial loans and leases:     
 Commercial and industrial loans 7 $ 11 
 Commercial mortgage owner-occupied loans 3   1 
Residential mortgage loans 156   21 
Consumer loans and leases:     
 Home equity 15   1 
 Automobile loans 8   - 
 Credit card 1,935   8 
Total portfolio loans and leases 2,124 $ 42 

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

       
  Number of Recorded
December 31, 2014 ($ in millions)(a)Contracts Investment
Commercial loans and leases:     
 Commercial and industrial loans 11 $ 36 
 Commercial mortgage owner-occupied loans 3   4 
 Commercial mortgage nonowner-occupied loans 2   1 
Residential mortgage loans 235   32 
Consumer loans and leases:     
 Home equity 30   2 
 Automobile loans 6   - 
 Credit card 2,059   12 
Total portfolio loans and leases 2,346 $ 87 

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

       
  Number of Recorded
December 31, 2013 ($ in millions)(a)Contracts Investment
Commercial loans and leases:     
 Commercial and industrial loans 6 $ 11 
 Commercial mortgage owner-occupied loans 7   1 
Residential mortgage loans 375   58 
Consumer loans and leases:     
 Home equity 65   4 
 Automobile loans 4   - 
 Credit card 1,768   11 
Total portfolio loans and leases 2,225 $ 85 

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