XML 42 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and Allowance for Credit Losses (Tables)
3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Composition of Loan Portfolio

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:

 

    March 31, 2018             December 31, 2017  
(Dollars in Millions)   Amount      Percent
of Total
            Amount      Percent
of Total
 

Commercial

              

Commercial

  $ 92,511        33.3        $ 91,958        32.8

Lease financing

    5,586        2.0                5,603        2.0  

Total commercial

    98,097        35.3            97,561        34.8  

Commercial Real Estate

              

Commercial mortgages

    28,982        10.4            29,367        10.5  

Construction and development

    11,158        4.0                11,096        4.0  

Total commercial real estate

    40,140        14.4            40,463        14.5  

Residential Mortgages

              

Residential mortgages

    47,583        17.1            46,685        16.6  

Home equity loans, first liens

    12,894        4.7                13,098        4.7  

Total residential mortgages

    60,477        21.8            59,783        21.3  

Credit Card

    20,901        7.5            22,180        7.9  

Other Retail

              

Retail leasing

    8,048        2.9            7,988        2.8  

Home equity and second mortgages

    16,030        5.8            16,327        5.8  

Revolving credit

    3,061        1.1            3,183        1.1  

Installment

    9,089        3.3            8,989        3.2  

Automobile

    18,762        6.7            18,934        6.8  

Student (a)

    327        .1                1,903        .7  

Total other retail

    55,317        19.9                57,324        20.4  

Total loans, excluding covered loans

    274,932        98.9            277,311        98.9  

Covered Loans

    2,979        1.1                3,121        1.1  

Total loans

  $ 277,911        100.0            $ 280,432        100.0

 

(a) Effective March 31, 2018, the Company transferred all of its federally guaranteed student loans to loans held for sale.
Changes in Accretable Balance for Purchased Impaired Loans

Changes in the accretable balance for purchased impaired loans were as follows:

 

Three Months Ended March 31

(Dollars in Millions)

  2018     2017  

Balance at beginning of period

  $ 350     $ 698  

Accretion

    (91     (90

Disposals

    (12     (23

Reclassifications from nonaccretable difference (a)

    10       53  

Other

          (1

Balance at end of period

  $ 257     $ 637  

 

(a) Primarily relates to changes in expected credit performance.
Activity in Allowance for Credit Losses by Portfolio Class

Activity in the allowance for credit losses by portfolio class was as follows:

 

(Dollars in Millions)   Commercial     Commercial
Real Estate
    Residential
Mortgages
    Credit
Card
    Other
Retail
    Total Loans,
Excluding
Covered Loans
    Covered
Loans
    Total
Loans
 

Balance at December 31, 2017

  $ 1,372     $ 831     $ 449     $ 1,056     $ 678     $ 4,386     $ 31     $ 4,417  

Add

               

Provision for credit losses

    74       (8     1       219       60       346       (5     341  

Deduct

               

Loans charged-off

    94       3       13       248       95       453             453  

Less recoveries of loans charged-off

    (34     (6     (6     (37     (29     (112           (112

Net loans charged-off

    60       (3     7       211       66       341             341  

Other changes (a)

                                               

Balance at March 31, 2018

  $ 1,386     $ 826     $ 443     $ 1,064     $ 672     $ 4,391     $ 26     $ 4,417  

Balance at December 31, 2016

  $ 1,450     $ 812     $ 510     $ 934     $ 617     $ 4,323     $ 34     $ 4,357  

Add

               

Provision for credit losses

    54       28       (13     211       65       345             345  

Deduct

               

Loans charged-off

    96       3       17       212       89       417             417  

Less recoveries of loans charged-off

    (21     (5     (5     (22     (29     (82           (82

Net loans charged-off

    75       (2     12       190       60       335             335  

Other changes (a)

                                        (1     (1

Balance at March 31, 2017

  $ 1,429     $ 842     $ 485     $ 955     $ 622     $ 4,333     $ 33     $ 4,366  

 

(a) Includes net changes in credit losses to be reimbursed by the FDIC and reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset, and the impact of any loan sales.
Additional Detail of Allowance for Credit Losses and Related Loan Balances by Portfolio Class

Additional detail of the allowance for credit losses by portfolio class was as follows:

 

(Dollars in Millions)   Commercial     Commercial
Real Estate
    Residential
Mortgages
    Credit
Card
    Other
Retail
    Total Loans,
Excluding
Covered Loans
    Covered
Loans
    Total
Loans
 

Allowance Balance at March 31, 2018 Related to

               

Loans individually evaluated for impairment (a)

  $ 28     $ 3     $     $     $     $ 31     $     $ 31  

TDRs collectively evaluated for impairment

    12       5       138       60       16       231             231  

Other loans collectively evaluated for impairment

    1,346       815       305       1,004       656       4,126             4,126  

Loans acquired with deteriorated credit quality

          3                         3       26       29  

Total allowance for credit losses

  $ 1,386     $ 826     $ 443     $ 1,064     $ 672     $ 4,391     $ 26     $ 4,417  

Allowance Balance at December 31, 2017 Related to

               

Loans individually evaluated for impairment (a)

  $ 23     $ 4     $     $     $     $ 27     $     $ 27  

TDRs collectively evaluated for impairment

    14       4       139       60       19       236       1       237  

Other loans collectively evaluated for impairment

    1,335       818       310       996       659       4,118             4,118  

Loans acquired with deteriorated credit quality

          5                         5       30       35  

Total allowance for credit losses

  $ 1,372     $ 831     $ 449     $ 1,056     $ 678     $ 4,386     $ 31     $ 4,417  

 

(a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs.

Additional detail of loan balances by portfolio class was as follows:

 

(Dollars in Millions)   Commercial      Commercial
Real Estate
     Residential
Mortgages
     Credit
Card
     Other
Retail
     Total Loans,
Excluding
Covered Loans
     Covered
Loans (b)
     Total
Loans
 

March 31, 2018

                      

Loans individually evaluated for impairment (a)

  $ 327      $ 50      $      $      $      $ 377      $      $ 377  

TDRs collectively evaluated for impairment

    154        151        3,339        234        181        4,059        36        4,095  

Other loans collectively evaluated for impairment

    97,616        39,881        57,137        20,667        55,136        270,437        977        271,414  

Loans acquired with deteriorated credit quality

           58        1                      59        1,966        2,025  

Total loans

  $ 98,097      $ 40,140      $ 60,477      $ 20,901      $ 55,317      $ 274,932      $ 2,979      $ 277,911  

December 31, 2017

                      

Loans individually evaluated for impairment (a)

  $ 337      $ 71      $      $      $      $ 408      $      $ 408  

TDRs collectively evaluated for impairment

    148        145        3,524        230        186        4,233        36        4,269  

Other loans collectively evaluated for impairment

    97,076        40,174        56,258        21,950        57,138        272,596        1,073        273,669  

Loans acquired with deteriorated credit quality

           73        1                      74        2,012        2,086  

Total loans

  $ 97,561      $ 40,463      $ 59,783      $ 22,180      $ 57,324      $ 277,311      $ 3,121      $ 280,432  

 

(a) Represents loans greater than $5 million classified as nonperforming or TDRs.
(b) Includes expected reimbursements from the FDIC under loss sharing agreements.
Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:

 

    Accruing                
(Dollars in Millions)   Current      30-89 Days
Past Due
     90 Days or
More Past Due
     Nonperforming      Total  

March 31, 2018

             

Commercial

  $ 97,494      $ 241      $ 61      $ 301      $ 98,097  

Commercial real estate

    39,979        38        4        119        40,140  

Residential mortgages (a)

    59,769        146        132        430        60,477  

Credit card

    20,356        275        270               20,901  

Other retail

    54,730        320        99        168        55,317  

Total loans, excluding covered loans

    272,328        1,020        566        1,018        274,932  

Covered loans

    2,790        47        136        6        2,979  

Total loans

  $ 275,118      $ 1,067      $ 702      $ 1,024      $ 277,911  

December 31, 2017

             

Commercial

  $ 97,005      $ 250      $ 57      $ 249      $ 97,561  

Commercial real estate

    40,279        36        6        142        40,463  

Residential mortgages (a)

    59,013        198        130        442        59,783  

Credit card

    21,593        302        284        1        22,180  

Other retail

    56,685        376        95        168        57,324  

Total loans, excluding covered loans

    274,575        1,162        572        1,002        277,311  

Covered loans

    2,917        50        148        6        3,121  

Total loans

  $ 277,492      $ 1,212      $ 720      $ 1,008      $ 280,432  

 

(a) At March 31, 2018, $376 million of loans 30–89 days past due and $1.9 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $385 million and $1.9 billion at December 31, 2017, respectively.
Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:

 

           Criticized         
(Dollars in Millions)   Pass      Special
Mention
     Classified (a)      Total
Criticized
     Total  

March 31, 2018

             

Commercial

  $ 95,757      $ 1,290      $ 1,050      $ 2,340      $ 98,097  

Commercial real estate

    38,990        556        594        1,150        40,140  

Residential mortgages (b)

    59,855        18        604        622        60,477  

Credit card

    20,631               270        270        20,901  

Other retail

    55,005        10        302        312        55,317  

Total loans, excluding covered loans

    270,238        1,874        2,820        4,694        274,932  

Covered loans

    2,932               47        47        2,979  

Total loans

  $ 273,170      $ 1,874      $ 2,867      $ 4,741      $ 277,911  

Total outstanding commitments

  $ 586,609      $ 3,129      $ 3,616      $ 6,745      $ 593,354  

December 31, 2017

             

Commercial

  $ 95,297      $ 1,130      $ 1,134      $ 2,264      $ 97,561  

Commercial real estate

    39,162        648        653        1,301        40,463  

Residential mortgages (b)

    59,141        16        626        642        59,783  

Credit card

    21,895               285        285        22,180  

Other retail

    57,009        6        309        315        57,324  

Total loans, excluding covered loans

    272,504        1,800        3,007        4,807        277,311  

Covered loans

    3,072               49        49        3,121  

Total loans

  $ 275,576      $ 1,800      $ 3,056      $ 4,856      $ 280,432  

Total outstanding commitments

  $ 584,072      $ 3,142      $ 3,987      $ 7,129      $ 591,201  

 

(a) Classified rating on consumer loans primarily based on delinquency status.
(b) At March 31, 2018, $1.9 billion of GNMA loans 90 days or more past due and $1.6 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.9 billion and $1.7 billion at December 31, 2017, respectively.
Summary of Impaired Loans, which Include Nonaccrual and TDR Loans, by Portfolio Class

A summary of impaired loans, which include all nonaccrual and TDR loans, by portfolio class was as follows:

 

(Dollars in Millions)   Period-end
Recorded
Investment (a)
     Unpaid
Principal
Balance
     Valuation
Allowance
     Commitments
to Lend
Additional
Funds
 

March 31, 2018

          

Commercial

  $ 540      $ 833      $ 42      $ 214  

Commercial real estate

    254        573        9         

Residential mortgages

    1,881        2,118        109        1  

Credit card

    234        234        60         

Other retail

    299        383        19        4  

Total loans, excluding GNMA and covered loans

    3,208        4,141        239        219  

Loans purchased from GNMA mortgage pools

    1,566        1,566        30         

Covered loans

    38        46        1         

Total

  $ 4,812      $ 5,753      $ 270      $ 219  

December 31, 2017

          

Commercial

  $ 550      $ 915      $ 44      $ 199  

Commercial real estate

    280        596        11         

Residential mortgages

    1,946        2,339        116        1  

Credit card

    230        230        60         

Other retail

    302        400        22        4  

Total loans, excluding GNMA and covered loans

    3,308        4,480        253        204  

Loans purchased from GNMA mortgage pools

    1,681        1,681        25         

Covered loans

    38        44        1         

Total

  $ 5,027      $ 6,205      $ 279      $ 204  

 

(a) Substantially all loans classified as impaired at March 31, 2018 and December 31, 2017, had an associated allowance for credit losses.
Impaired Loans Average Recorded Investment and Interest Income Recognized

Additional information on impaired loans follows:

 

    2018              2017  

Three Months Ended March 31

(Dollars in Millions)

  Average
Recorded
Investment
     Interest
Income
Recognized
             Average
Recorded
Investment
     Interest
Income
Recognized
 

Commercial

  $ 545      $ 1           $ 817      $ 1  

Commercial real estate

    267        2             278        2  

Residential mortgages

    1,914        20             2,240        29  

Credit card

    232        1             225        1  

Other retail

    300        4                 280        4  

Total loans, excluding GNMA and covered loans

    3,258        28             3,840        37  

Loans purchased from GNMA mortgage pools

    1,624        12             1,646        18  

Covered loans

    38                        36         

Total

  $ 4,920      $ 40               $ 5,522      $ 55  
Summary of Loans Modified as TDRs

The following table provides a summary of loans modified as TDRs during the periods presented by portfolio class:

 

    2018              2017  

Three Months Ended March 31

(Dollars in Millions)

  Number
of Loans
     Pre-Modification
Outstanding
Loan Balance
     Post-Modification
Outstanding
Loan Balance
             Number
of Loans
     Pre-Modification
Outstanding
Loan Balance
     Post-Modification
Outstanding
Loan Balance
 

Commercial

    623      $ 81      $ 75             830      $ 137      $ 128  

Commercial real estate

    29        16        16             23        9        8  

Residential mortgages

    148        17        16             356        40        41  

Credit card

    8,546        43        43             9,405        45        46  

Other retail

    559        11        10                 622        11        9  

Total loans, excluding GNMA and covered loans

    9,905        168        160             11,236        242        232  

Loans purchased from GNMA mortgage pools

    888        117        113             2,929        387        378  

Covered loans

                                  4        1        1  

Total loans

    10,793      $ 285      $ 273                 14,169      $ 630      $ 611  
Summary of Loans Modified as TDRs in the Past Twelve Months that have Subsequently Defaulted

The following table provides a summary of TDR loans that defaulted (fully or partially charged-off or became 90 days or more past due) during the periods presented that were modified as TDRs within 12 months previous to default:

 

    2018              2017  

Three Months Ended March 31

(Dollars in Millions)

  Number
of Loans
     Amount
Defaulted
             Number
of Loans
     Amount
Defaulted
 

Commercial

    239      $ 9             173      $ 8  

Commercial real estate

    8        4             8        2  

Residential mortgages

    56        4             72        9  

Credit card

    2,036        9             2,047        9  

Other retail

    77        1                 129        2  

Total loans, excluding GNMA and covered loans

    2,416        27             2,429        30  

Loans purchased from GNMA mortgage pools

    232        31             218        30  

Covered loans

    1                                

Total loans

    2,649      $ 58                 2,647      $ 60  
Carrying Amount of Covered Assets

The carrying amount of the covered assets consisted of purchased impaired loans, purchased nonimpaired loans and other assets as shown in the following table:

 

    March 31, 2018              December 31, 2017  
(Dollars in Millions)   Purchased
Impaired
Loans
     Purchased
Nonimpaired
Loans
     Other      Total              Purchased
Impaired
Loans
     Purchased
Nonimpaired
Loans
     Other      Total  

Residential mortgage loans

  $ 1,966      $ 374      $      $ 2,340           $ 2,012      $ 400      $      $ 2,412  

Other retail loans

           137               137                    151               151  

Losses reimbursable by the FDIC (a)

                  327        327                           320        320  

Unamortized changes in FDIC asset (b)

                  175        175                               238        238  

Covered loans

    1,966        511        502        2,979             2,012        551        558        3,121  

Foreclosed real estate

                  20        20                               21        21  

Total covered assets

  $ 1,966      $ 511      $ 522      $ 2,999               $ 2,012      $ 551      $ 579      $ 3,142  

 

(a) Relates to loss sharing agreements with remaining terms up through the fourth quarter of 2019.
(b) Represents decreases in expected reimbursements by the FDIC as a result of decreases in expected losses on the covered loans. These amounts are amortized as a reduction in interest income on covered loans over the shorter of the expected life of the respective covered loans or the remaining contractual term of the indemnification agreements.