XML 55 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Credit Quality and the Allowance for Loan and Lease Losses (Tables)
 3 Months Ended
Mar. 31, 2018
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, 2018 ($ in millions)CommercialMortgageConsumerUnallocatedTotal
Balance, beginning of period$753892341201,196
Losses charged-off(35)(4)(64)-(103)
Recoveries of losses previously charged-off6115-22
Provision for (benefit from) loan and lease losses(11)337(6)23
Balance, end of period$713892221141,138
Residential
For the three months ended March 31, 2017 ($ 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$826962041121,238
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment
The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment:
Residential
As of March 31, 2018 ($ in millions)CommercialMortgageConsumerUnallocatedTotal
ALLL:(a)
Individually evaluated for impairment$1136440-217
Collectively evaluated for impairment60025182-807
Unallocated---114114
Total ALLL$713892221141,138
Portfolio loans and leases:(b)
Individually evaluated for impairment$573666308-1,547
Collectively evaluated for impairment56,25614,75919,270-90,285
Loans acquired with deteriorated credit quality-2--2
Total portfolio loans and leases$56,82915,42719,578-91,834

  • Includes $1 related to leveraged leases at March 31, 2018.
  • Excludes $136 of residential mortgage loans measured at fair value and includes $670 of leveraged leases, net of unearned income at March 31, 2018.

Residential
As of December 31, 2017 ($ in millions)Commercial MortgageConsumerUnallocatedTotal
ALLL:(a)
Individually evaluated for impairment$946442-200
Collectively evaluated for impairment65925192-876
Unallocated---120120
Total ALLL$753892341201,196
Portfolio loans and leases:(b)
Individually evaluated for impairment$560665320-1,545
Collectively evaluated for impairment55,83514,78719,664-90,286
Loans acquired with deteriorated credit quality-2--2
Total portfolio loans and leases$56,39515,45419,984-91,833

  • Includes $1 related to leveraged leases at December 31, 2017.
  • Excludes $137 of residential mortgage loans measured at fair value and includes $674 of leveraged leases, net of unearned income at December 31, 2017.
Loan and leases balances by credit quality indicator
The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class:
Special
As of March 31, 2018 ($ in millions)PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$39,3851,0741,173341,635
Commercial mortgage owner-occupied loans3,1508199-3,330
Commercial mortgage nonowner-occupied loans3,079892-3,179
Commercial construction loans4,69274--4,766
Commercial leases3,7767964-3,919
Total commercial loans and leases$54,0821,3161,428356,829

Special
As of December 31, 2017 ($ in millions)PassMentionSubstandardDoubtfulTotal
Commercial and industrial loans$38,8131,1151,235741,170
Commercial mortgage owner-occupied loans3,2077580-3,362
Commercial mortgage nonowner-occupied loans3,1172897-3,242
Commercial construction loans4,553---4,553
Commercial leases3,9227274-4,068
Total commercial loans and leases$53,6121,2901,486756,395

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, 2018December 31, 2017
($ in millions)PerformingNonperformingPerformingNonperforming
Residential mortgage loans(a)$15,3992815,42430
Home equity6,683746,94074
Automobile loans9,01719,1111
Credit card2,162262,27326
Other consumer loans1,61411,559-
Total residential mortgage and consumer loans$34,87513035,307131

(a) Excludes $136 and $137 of residential mortgage loans measured at fair value at March 31, 2018 and December 31, 2017, 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, 2018 ($ in millions)Leases(b)(c)Days(c)or More(c)Past Dueand LeasesAccruing
Commercial loans and leases:
Commercial and industrial loans $41,502468713341,6357
Commercial mortgage owner-occupied loans3,31668143,3301
Commercial mortgage nonowner-occupied loans3,109673703,179-
Commercial construction loans4,766---4,766-
Commercial leases3,914-553,919-
Residential mortgage loans(a)15,304329112315,42762
Consumer loans:
Home equity6,63666551216,757-
Automobile loans8,9278110919,0189
Credit card2,1153934732,18828
Other consumer loans1,60591101,615-
Total portfolio loans and leases$91,19434629464091,834107

  • Excludes $136 of residential mortgage loans measured at fair value at March 31, 2018.
  • 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, 2018, $79 of these loans were 30-89 days past due and $317 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2018 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, 2017 ($ in millions)Leases(b)(c)Days(c)or More(c)Past Dueand LeasesAccruing
Commercial loans and leases:
Commercial and industrial loans $41,0274210114341,1703
Commercial mortgage owner-occupied loans3,35138113,362-
Commercial mortgage nonowner-occupied loans3,235-773,242-
Commercial construction loans4,5521-14,553-
Commercial leases4,0653-34,068-
Residential mortgage loans(a)15,301668715315,45457
Consumer loans:
Home equity6,88870561267,014-
Automobile loans8,992107131209,11210
Credit card2,2303633692,29927
Other consumer loans1,5545-51,559-
Total portfolio loans and leases$91,19533330563891,83397

  • Excludes $137 of residential mortgage loans measured at fair value at December 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 December 31, 2017, $95 of these loans were 30-89 days past due and $290 were 90 days or more past due. The Bancorp recognized $2 of losses during the three months ended March 31, 2017 due to claim denials and curtailments associated with these insured or guaranteed loans.
  • Includes accrual and nonaccrual loans and leases.
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class
The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR:
Unpaid
PrincipalRecorded
As of March 31, 2018 ($ in millions)BalanceInvestmentALLL
With a related ALLL:
Commercial loans and leases:
Commercial and industrial loans $414358109
Commercial mortgage owner-occupied loans431
Commercial mortgage nonowner-occupied loans22-
Commercial leases883
Restructured residential mortgage loans46045764
Restructured consumer loans:
Home equity12913025
Automobile loans651
Credit card494414
Total impaired portfolio loans and leases with a related ALLL$1,0721,007217
With no related ALLL:
Commercial loans:
Commercial and industrial loans $188161-
Commercial mortgage owner-occupied loans1713-
Commercial mortgage nonowner-occupied loans2828-
Restructured residential mortgage loans228209-
Restructured consumer loans:
Home equity129126-
Automobile loans33-
Total impaired portfolio loans with no related ALLL$593540-
Total impaired portfolio loans and leases$1,6651,547(a)217

Includes $249, $654 and $262, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $154, $12 and $46, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at March 31, 2018.

Unpaid
PrincipalRecorded
As of December 31, 2017 ($ in millions)BalanceInvestmentALLL
With a related ALLL:
Commercial loans and leases:
Commercial and industrial loans $43335887
Commercial mortgage owner-occupied loans16147
Commercial mortgage nonowner-occupied loans43-
Commercial leases44-
Restructured residential mortgage loans46946564
Restructured consumer loans:
Home equity17217227
Automobile loans871
Credit card524514
Total impaired portfolio loans and leases with a related ALLL$1,1581,068200
With no related ALLL:
Commercial loans:
Commercial and industrial loans $151131-
Commercial mortgage owner-occupied loans1815-
Commercial mortgage nonowner-occupied loans3535-
Restructured residential mortgage loans218200-
Restructured consumer loans:
Home equity9794-
Automobile loans22-
Total impaired portfolio loans with no related ALLL$521477-
Total impaired portfolio loans and leases$1,6791,545a(a)200

Includes $249, $652 and $275, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $150, $13 and $45, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2017.

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, 2018March 31, 2017
AverageInterestAverageInterest
RecordedIncomeRecordedIncome
($ in millions)InvestmentRecognizedInvestmentRecognized
Commercial loans and leases:
Commercial and industrial loans $49756831
Commercial mortgage owner-occupied loans(a)22-43-
Commercial mortgage nonowner-occupied loans34-891
Commercial leases6-3-
Restructured residential mortgage loans66566546
Restructured consumer loans:
Home equity25832983
Automobile loans9-14-
Credit card481511
Total average impaired portfolio loans and leases$1,539151,83512

Excludes five restructured loans associated with a consolidated VIE in which the Bancorp had no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $26 for the three months ended March 31, 2017. An immaterial amount of interest income was recognized during the three months ended March 31, 2017. Refer to Note 9 for further discussion on the deconsolidation of the VIE associated with these loans in the third quarter of 2017.

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)20182017
Commercial loans and leases:
Commercial and industrial loans $299276
Commercial mortgage owner-occupied loans1119
Commercial mortgage nonowner-occupied loans47
Commercial leases84
Total nonaccrual portfolio commercial loans and leases322306
Residential mortgage loans2830
Consumer loans:
Home equity7474
Automobile loans11
Credit card2626
Other consumer loans1-
Total nonaccrual portfolio consumer loans102101
Total nonaccrual portfolio loans and leases(a)(b)$452437
OREO and other repossessed property5252
Total nonperforming portfolio assets(a)(b)$504489

  • Excludes $24 and $6 of nonaccrual loans held for sale at March 31, 2018 and December 31, 2017, respectively.
  • Includes $5 and $3 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at March 31, 2018 and December 31, 2017, respectively, of which $2 and $3 are restructured nonaccrual government insured commercial loans at both March 31, 2018 and December 31, 2017, respectively.
Summary of Loans Modified in a TDR
The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the three months ended:
Recorded Investment
Number of Loansin Loans ModifiedIncreaseCharge-offs
Modified in a TDRin a TDR to ALLL UponRecognized Upon
March 31, 2018 ($ in millions)(a)During the Period(b)During the PeriodModificationModification
Commercial loans:
Commercial and industrial loans 12$7213-
Commercial mortgage owner-occupied loans2---
Residential mortgage loans247331-
Consumer loans:
Home equity252--
Automobile loans20---
Credit card1,965102-
Total portfolio loans 2,271$11716-

  • 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 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.
Summary of Subsequent Defaults
The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2018 and 2017 and were within twelve months of the restructuring date:
Number ofRecorded
March 31, 2018 ($ in millions)(a)ContractsInvestment
Commercial loans:
Commercial and industrial loans 1$1
Commercial mortgage owner-occupied loans2-
Residential mortgage loans487
Consumer loans:
Home equity2-
Credit card2421
Total portfolio loans295$9

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

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.