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Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 3 Months Ended
Mar. 31, 2017
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, 2017 ($ in millions)CommercialMortgageConsumerUnallocatedTotal
Balance, beginning of period$831962141121,253
Losses charged-off(46)(6)(55)-(107)
Recoveries of losses previously charged-off4113-18
Provision for loan and lease losses37532-74
Balance, end of period$826962041121,238
Residential
For the three months ended March 31, 2016 ($ in millions)CommercialMortgageConsumerUnallocatedTotal
Balance, beginning of period$8401002171151,272
Losses charged-off(60)(4)(52)-(116)
Recoveries of losses previously charged-off6212-20
Provision for loan and lease losses81-371119
Balance, end of period$867982141161,295
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment
The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment:
Residential
As of March 31, 2017 ($ in millions)CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)
Individually evaluated for impairment$113(c)6842-223
Collectively evaluated for impairment71328162-903
Unallocated---112112
Total ALLL$826962041121,238
Portfolio loans and leases:(b)
Individually evaluated for impairment$786(c)656354-1,796
Collectively evaluated for impairment55,58714,53719,565-89,689
Loans acquired with deteriorated credit quality-2--2
Total portfolio loans and leases$56,37315,19519,919-91,487

  • Includes $2 related to leveraged leases at March 31, 2017.
  • Excludes $141 of residential mortgage loans measured at fair value, and includes $703 of leveraged leases, net of unearned income at March 31, 2017.
  • Includes five restructured loans at March 31, 2017 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 $26 and an ALLL of $18.

Residential
As of December 31, 2016 ($ in millions)Commercial MortgageConsumerUnallocatedTotal
ALLL:(a)
Individually evaluated for impairment$118(c) 6844-230
Collectively evaluated for impairment71328170-911
Unallocated---112112
Total ALLL$831962141121,253
Portfolio loans and leases:(b)
Individually evaluated for impairment$904(c) 652371-1,927
Collectively evaluated for impairment55,54814,25320,224-90,025
Loans acquired with deteriorated credit quality-3--3
Total portfolio loans and leases$56,45214,90820,595-91,955

  • Includes $2 related to leveraged leases at December 31, 2016.
  • Excludes $143 of residential mortgage loans measured at fair value, and includes $701 of leveraged leases, net of unearned income at December 31, 2016.
  • Includes five restructured loans at December 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 $26 and an ALLL of $18.
Loan and leases balances by credit quality indicator
The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class:
Special
As of March 31, 2017 ($ in millions)PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$38,1871,2551,630241,074
Commercial mortgage owner-occupied loans3,22674110-3,410
Commercial mortgage nonowner-occupied loans3,4292560-3,514
Commercial construction loans4,23845--4,283
Commercial leases4,0075629-4,092
Total commercial loans and leases$53,0871,4551,829256,373

Special
As of December 31, 2016 ($ in millions)PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$38,8441,2041,6042441,676
Commercial mortgage owner-occupied loans3,1687211733,360
Commercial mortgage nonowner-occupied loans3,466469-3,539
Commercial construction loans3,9021--3,903
Commercial leases3,8945426-3,974
Total commercial loans and leases$53,2741,3351,8162756,452

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, 2017December 31, 2016
($ in millions)PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$15,1603514,87434
Home equity7,399707,62273
Automobile loans9,57029,9812
Credit card2,043272,20928
Other consumer loans and leases808-680-
Total residential mortgage and consumer loans and leases(a)$34,98013435,366137

(a) Excludes $141 and $143 of loans measured at fair value at March 31, 2017 and December 31, 2016, 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:
CurrentPast Due90 Days Past
Loans and 30-89 90 Days Total Total LoansDue and Still
As of March 31, 2017 ($ in millions)Leases(c)Days(c)or More(c)Past Dueand LeasesAccruing
Commercial loans and leases:
Commercial and industrial loans $40,930469814441,0743
Commercial mortgage owner-occupied loans3,388319223,410-
Commercial mortgage nonowner-occupied loans3,5061783,514-
Commercial construction loans4,283---4,283-
Commercial leases4,090-224,092-
Residential mortgage loans(a)(b)15,087278110815,19545
Consumer loans and leases:
Home equity7,35164541187,469-
Automobile loans9,503609699,5726
Credit card2,0182725522,07021
Other consumer loans and leases 8071-1808-
Total portfolio loans and leases(a)$90,96322929552491,48775

  • Excludes $141 of residential mortgage loans measured at fair value at March 31, 2017.
  • 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, 2017, $77 of these loans were 30-89 days past due and $302 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2017 due to claim denials and curtailments associated with these insured or guaranteed loans.
  • Includes accrual and nonaccrual loans and leases.

CurrentPast Due90 Days Past
Loans and 30-8990 DaysTotal Total LoansDue and Still
As of December 31, 2016 ($ in millions)Leases(c)Days(c)or More(c)Past Dueand LeasesAccruing
Commercial loans and leases:
Commercial and industrial loans $41,495879418141,6764
Commercial mortgage owner-occupied loans3,332622283,360-
Commercial mortgage nonowner-occupied loans3,5302793,539-
Commercial construction loans3,9021-13,903-
Commercial leases3,972-223,974-
Residential mortgage loans(a)(b)14,790378111814,90849
Consumer loans and leases:
Home equity7,57068571257,695-
Automobile loans9,8868512979,9839
Credit card2,1832826542,23722
Other consumer loans and leases 6791-1680-
Total portfolio loans and leases(a)$91,33931530161691,95584

  • Excludes $143 of residential mortgage loans measured at fair value at December 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 December 31, 2016, $110 of these loans were 30-89 days past due and $312 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2016 due to claim denials and curtailments associated with these insured or guaranteed loans.
  • Includes accrual and nonaccrual loans and leases.
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class
The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR:
Unpaid
PrincipalRecorded
As of March 31, 2017 ($ in millions)BalanceInvestmentALLL
With a related ALLL:
Commercial loans and leases:
Commercial and industrial loans $44939286
Commercial mortgage owner-occupied loans(b)19133
Commercial mortgage nonowner-occupied loans16156
Restructured residential mortgage loans47246868
Restructured consumer loans and leases:
Home equity19219129
Automobile loans11111
Credit card494912
Total impaired portfolio loans and leases with a related ALLL$1,2081,139205
With no related ALLL:
Commercial loans and leases:
Commercial and industrial loans $264242-
Commercial mortgage owner-occupied loans2822-
Commercial mortgage nonowner-occupied loans7474-
Commercial leases22-
Restructured residential mortgage loans209188-
Restructured consumer loans and leases:
Home equity104101-
Automobile loans32-
Total impaired portfolio loans and leases with no related ALLL$684631-
Total impaired portfolio loans and leases$1,8921,770a(a)205

  • Includes $277, $642 and $308, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $251, $14 and $46, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2017.
  • Excludes five restructured loans at March 31, 2017 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 $26, a recorded investment of $26 and an ALLL of $18.

Unpaid
PrincipalRecorded
As of December 31, 2016 ($ in millions)BalanceInvestmentALLL
With a related ALLL:
Commercial loans and leases:
Commercial and industrial loans $44041494
Commercial mortgage owner-occupied loans(b)24165
Commercial mortgage nonowner-occupied loans761
Commercial leases22-
Restructured residential mortgage loans47146568
Restructured consumer loans and leases:
Home equity20220130
Automobile loans12122
Credit card525212
Total impaired portfolio loans and leases with a related ALLL$1,2101,168212
With no related ALLL:
Commercial loans and leases:
Commercial and industrial loans $394320-
Commercial mortgage owner-occupied loans3635-
Commercial mortgage nonowner-occupied loans9383-
Commercial leases22-
Restructured residential mortgage loans207187-
Restructured consumer loans and leases:
Home equity107104-
Automobile loans32-
Total impaired portfolio loans and leases with no related ALLL$842733-
Total impaired portfolio loans and leases$2,0521,901a(a)212

  • Includes $322, $635 and $323, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $192, $17 and $48, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016.
  • Excludes five restructured loans at December 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 $26, a recorded investment of $26 and an ALLL of $18.

The following tables summarize the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class:
For the three months endedFor the three months ended
March 31, 2017March 31, 2016
AverageInterestAverageInterest
RecordedIncomeRecordedIncome
($ in millions)InvestmentRecognizedInvestmentRecognized
Commercial loans and leases:
Commercial and industrial loans $68316452
Commercial mortgage owner-occupied loans(a)43-71-
Commercial mortgage nonowner-occupied loans8911651
Commercial construction loans--7-
Commercial leases3-5-
Restructured residential mortgage loans65466426
Restructured consumer loans and leases:
Home equity29833403
Automobile loans14-19-
Credit card511601
Total average impaired portfolio loans and leases$1,835121,95413

(a) 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 $26 and $27 at March 31, 2017 and March 31, 2016, respectively, and an immaterial amount of interest income recognized for the both the three months ended March 31, 2017 and March 31, 2016.

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)20172016
Commercial loans and leases:
Commercial and industrial loans $484478
Commercial mortgage owner-occupied loans(a) 2832
Commercial mortgage nonowner-occupied loans99
Commercial leases24
Total nonaccrual portfolio commercial loans and leases523523
Residential mortgage loans3534
Consumer loans and leases:
Home equity7073
Automobile loans22
Credit card2728
Total nonaccrual portfolio consumer loans and leases99103
Total nonaccrual portfolio loans and leases(b)(c)$657660
OREO and other repossessed property6478a
Total nonperforming portfolio assets(b)(c)$721738

  • Excludes $19 of restructured nonaccrual loans at both March 31, 2017 and December 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.
  • Excludes $9 and $13 of nonaccrual loans held for sale at March 31, 2017 and December 31, 2016, respectively.
  • Includes $4 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at both March 31, 2017 and December 31, 2016 and an immaterial amount and $1 of restructured nonaccrual government insured commercial loans at March 31, 2017 and December 31, 2016, respectively.
Summary of Loans Modified in a TDR
The following tables provide a summary of loans, by class, modified in a TDR by the Bancorp during the three months ended:
Recorded investment
Number of loansin loans modifiedIncreaseCharge-offs
modified in a TDRin a TDR to ALLL uponrecognized upon
March 31, 2017 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial loans:
Commercial and industrial loans 33$9712
Commercial mortgage owner-occupied loans52--
Commercial mortgage nonowner-occupied loans1---
Residential mortgage loans203292-
Consumer loans:
Home equity312--
Automobile loans30---
Credit card1,75671-
Total portfolio loans2,059$13742

  • 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, 2016 ($ in millions)(a)during the period(b)during the periodmodificationmodification
Commercial loans:
Commercial and industrial loans 24$56(2)-
Commercial mortgage owner-occupied loans76(2)-
Commercial mortgage nonowner-occupied loans2---
Residential mortgage loans243362-
Consumer loans:
Home equity645--
Automobile loans781--
Credit card2,5921221
Total portfolio loans3,010$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.
Summary of Subsequent Defaults
The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2017 and 2016 and were within twelve months of the restructuring date:
Number ofRecorded
March 31, 2017 ($ in millions)(a)ContractsInvestment
Commercial loans:
Commercial and industrial loans 2$1
Residential mortgage loans579
Consumer loans:
Home equity51
Credit card4502
Total portfolio loans514$13

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

Number ofRecorded
March 31, 2016 ($ in millions)(a)ContractsInvestment
Commercial loans:
Commercial and industrial loans 1$-
Commercial mortgage nonowner-occupied loans1-
Residential mortgage loans537
Consumer loans:
Home equity61
Credit card4232
Total portfolio loans484$10

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.