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Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 3 Months Ended
Mar. 31, 2016
Credit Quality and the Allowance for Loan and Leases Losses  
Summary of Transactions in the ALLL
              
Allowance for Loan and Lease Losses       
The following tables summarize transactions in the ALLL by portfolio segment:
              
     Residential      
For the three months ended March 31, 2016 ($ in millions)  CommercialMortgageConsumerUnallocatedTotal
Balance, beginning of period $ 840  100  217  115  1,272 
 Losses charged-off   (60)  (4)  (52)  -  (116) 
 Recoveries of losses previously charged-off   6  2  12  -  20 
 Provision for loan and lease losses   81  -  37  1  119 
Balance, end of period $ 867  98  214  116  1,295 
              
     Residential      
For the three months ended March 31, 2015 ($ in millions)  CommercialMortgageConsumerUnallocatedTotal
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 
              
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, 2016 ($ in millions) CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 102 (c) 66  48  -  216 
 Collectively evaluated for impairment  765  32  166  -  963 
 Unallocated  -  -  -  116  116 
Total ALLL$ 867  98  214  116  1,295 
Portfolio loans and leases:(b)           
 Individually evaluated for impairment$ 1,022 (c) 655  415  -  2,092 
 Collectively evaluated for impairment  56,659  13,078  21,614  -  91,351 
 Loans acquired with deteriorated credit quality  -  2  -  -  2 
Total portfolio loans and leases$ 57,681  13,735  22,029  -  93,445 

  • Includes $5 related to leveraged leases at March 31, 2016.
  • Excludes $160 of residential mortgage loans measured at fair value, and includes $812 of leveraged leases, net of unearned income at March 31, 2016.
  • Includes five restructured loans at March 31, 2016 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, 2015 ($ in millions) Commercial MortgageConsumerUnallocatedTotal
ALLL:(a)           
 Individually evaluated for impairment$ 119 (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$ 815 (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.
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, 2016 ($ in millions) PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$ 39,909  1,513  1,987  24  43,433 
Commercial mortgage owner-occupied loans  3,305  128  177  3  3,613 
Commercial mortgage nonowner-occupied loans  3,063  65  123  -  3,251 
Commercial construction loans  3,423  1  4  -  3,428 
Commercial leases  3,848  74  34  -  3,956 
Total commercial loans and leases$ 53,548  1,781  2,325  27  57,681 
            

    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 
            

          
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, 2016December 31, 2015
($ in millions) PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$ 13,691  44  13,498  51 
Home equity  8,032  80  8,222  79 
Automobile loans  11,126  2  11,491  2 
Credit card  2,106  32  2,226  33 
Other consumer loans and leases  651  -  657  - 
Total residential mortgage and consumer loans and leases(a)$ 35,606  158  36,094  165 

  • Excludes $160 and $167 of loans measured at fair value at March 31, 2016 and December 31, 2015, 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:
               
   Current Past Due  90 Days Past
  Loans and  30-89 90 Days Total Total LoansDue and Still
As of March 31, 2016 ($ in millions) Leases(c) Days(c)or More(c)Past Dueand LeasesAccruing
Commercial loans and leases:             
 Commercial and industrial loans $ 43,255  31  147  178  43,433  3 
 Commercial mortgage owner-occupied loans  3,580  6  27  33  3,613  - 
 Commercial mortgage nonowner-occupied loans  3,210  17  24  41  3,251  - 
 Commercial construction loans  3,428  -  -  -  3,428  - 
 Commercial leases  3,952  -  4  4  3,956  - 
Residential mortgage loans(a)(b)  13,613  32  90  122  13,735  44 
Consumer loans and leases:             
 Home equity  7,980  72  60  132  8,112  - 
 Automobile loans  11,060  58  10  68  11,128  8 
 Credit card  2,089  25  24  49  2,138  18 
 Other consumer loans and leases   650  1  -  1  651  - 
Total portfolio loans and leases(a)$ 92,817  242  386  628  93,445  73 

  • Excludes $160 of residential mortgage loans measured at fair value at March 31, 2016.
  • 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 March 31, 2016, $95 of these loans were 30-89 days past due and $315 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2016 due to claim denials and curtailments associated with these insured or guaranteed loans.
  • Includes accrual and nonaccrual loans and leases.

               
   Current Past Due  90 Days Past
  Loans and  30-8990 DaysTotal Total LoansDue and Still
As of December 31, 2015 ($ in millions) Leases(c) Days(c)Greater(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 $2 of losses during the three months ended March 31, 2015 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:
          
    Unpaid    
   PrincipalRecorded   
As of March 31, 2016 ($ in millions)  BalanceInvestmentALLL
With a related ALLL:        
Commercial loans and leases:        
 Commercial and industrial loans  $ 516  441  81 
 Commercial mortgage owner-occupied loans(b)   26  16  3 
 Commercial mortgage nonowner-occupied loans   57  53  2 
 Commercial leases   4  2  1 
Restructured residential mortgage loans   453  440  66 
Restructured consumer loans and leases:        
 Home equity   220  220  32 
 Automobile loans   16  17  2 
 Credit card   58  58  14 
Total impaired portfolio loans and leases with a related ALLL $ 1,350  1,247  201 
With no related ALLL:        
Commercial loans and leases:        
 Commercial and industrial loans  $ 372  320  - 
 Commercial mortgage owner-occupied loans   58  55  - 
 Commercial mortgage nonowner-occupied loans   115  101  - 
 Commercial construction loans   4  4  - 
 Commercial leases   3  3  - 
Restructured residential mortgage loans   230  215  - 
Restructured consumer loans and leases:        
 Home equity   120  117  - 
 Automobile loans   3  3  - 
Total impaired portfolio loans and leases with no related ALLL $ 905  818  - 
Total impaired portfolio loans and leases $ 2,255  2,065a(a) 201 

  • Includes $461, $636 and $362, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $210, $19 and $53, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2016.
  • Excludes five restructured loans at March 31, 2016 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   
As of December 31, 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.

             
The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the three months ended:
             
     March 31, 2016 March 31, 2015
     AverageInterest AverageInterest
     RecordedIncome RecordedIncome
($ in millions)   InvestmentRecognized InvestmentRecognized
Commercial loans and leases:           
 Commercial and industrial loans   $ 645  2   742  5
 Commercial mortgage owner-occupied loans(a)    71  -   112  1
 Commercial mortgage nonowner-occupied loans    165  1   262  2
 Commercial construction loans    7  -   62  -
 Commercial leases    5  -   5  -
Restructured residential mortgage loans    642  6   552  6
Restructured consumer loans and leases:           
 Home equity    340  3   375  3
 Automobile loans    19  -   23  -
 Credit card    60  1   75  2
Total average impaired portfolio loans and leases  $ 1,954  13   2,208  19

  • 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 and $28 at March 31, 2016 and March 31, 2015, respectively, and an immaterial amount of interest income recognized for both the three months ended March 31, 2016 and March 31, 2015.
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 presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of:
       
   March 31,December 31,
($ in millions) 20162015
Commercial loans and leases:     
 Commercial and industrial loans $ 460  259 
 Commercial mortgage owner-occupied loans(a)   41  46 
 Commercial mortgage nonowner-occupied loans  37  35 
 Commercial leases  5  1 
Total nonaccrual portfolio commercial loans and leases  543  341 
Residential mortgage loans  44  51 
Consumer loans and leases:     
 Home equity  80  79 
 Automobile loans  2  2 
 Credit card  32  33 
Total nonaccrual portfolio consumer loans and leases  114  114 
Total nonaccrual portfolio loans and leases(b)(c)$ 701  506 
OREO and other repossessed property  124  141a
Total nonperforming portfolio assets(b)(c)$ 825  647 

  • Excludes $20 of restructured nonaccrual loans at both March 31, 2016 and 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.
  • Excludes $5 and $12 of nonaccrual loans held for sale at March 31, 2016 and December 31, 2015, respectively.
  • Includes $5 and $6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2016 and December 31, 2015, respectively, and $1 and $2 of restructured nonaccrual government insured commercial loans at March 31, 2016 and December 31, 2015, respectively.
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, 2016 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial loans:         
 Commercial and industrial loans 24 $ 56  (2)  - 
 Commercial mortgage owner-occupied loans 7   6  (2)  - 
 Commercial mortgage nonowner-occupied loans 2   -  -  - 
Residential mortgage loans 243   36  2  - 
Consumer loans:         
 Home equity 64   5  -  - 
 Automobile loans 78   1  -  - 
 Credit card 2,592   12  2  1 
Total portfolio loans 3,010 $ 116  -  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 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
March 31, 2015 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial loans:         
 Commercial and industrial loans 21 $ 18  (7)  3 
 Commercial mortgage owner-occupied loans 7   8  (1)  - 
 Commercial mortgage nonowner-occupied loans 6   3  -  - 
Residential mortgage loans 300   42  1  - 
Consumer loans:         
 Home equity 76   4  -  - 
 Automobile loans 131   2  -  - 
 Credit card 3,667   19  4  - 
Total portfolio loans 4,208 $ 96  (3)  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 and excludes loans previously modified in a TDR.
Summary of Subsequent Defaults
       
The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2016 and 2015 that was within twelve months of the restructuring date:
       
  Number of Recorded
March 31, 2016 ($ in millions)(a)Contracts Investment
Commercial loans and leases:     
 Commercial and industrial loans 1 $ - 
 Commercial mortgage nonowner-occupied loans 1   - 
Residential mortgage loans 53   7 
Consumer loans and leases:     
 Home equity 6   1 
 Credit card 423   2 
Total portfolio loans and leases 484 $ 10 

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

       
  Number of Recorded
March 31, 2015 ($ in millions)(a)Contracts Investment
Residential mortgage loans 40 $ 5 
Consumer loans and leases:     
 Home equity 5   - 
 Automobile loans 4   - 
 Credit card 588   3 
Total portfolio loans and leases 637 $ 8 

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