Allowance for credit losses (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the years ended December 31, 2023, 2022 and 2021 were as follows:

	Commercial			Real Estate
(Dollars in millions)	and industrial			Commercial			Residential			Consumer			Total
2023
Beginning balance	$	568		$	611		$	115		$	631		$	1,925
Provision for credit losses		132			394			4			115			645
Net charge-offs:
Charge-offs		(132	)		(253	)		(10	)		(175	)		(570	)
Recoveries		52			12			7			58			129
Net charge-offs		(80	)		(241	)		(3	)		(117	)		(441	)
Ending balance	$	620		$	764		$	116		$	629		$	2,129
2022
Beginning balance	$	335		$	506		$	72		$	556		$	1,469
Allowance on acquired PCD loans		48			49			2			—			99
Provision for credit losses (a)		244			93			43			137			517
Net charge-offs:
Charge-offs (b)		(119	)		(60	)		(12	)		(112	)		(303	)
Recoveries		60			23			10			50			143
Net charge-offs		(59	)		(37	)		(2	)		(62	)		(160	)
Ending balance	$	568		$	611		$	115		$	631		$	1,925
2021
Beginning balance	$	469		$	607		$	104		$	556		$	1,736
Provision for credit losses		(58	)		(25	)		(30	)		38			(75	)
Net charge-offs:
Charge-offs		(124	)		(100	)		(11	)		(103	)		(338	)
Recoveries		48			24			9			65			146
Net charge-offs		(76	)		(76	)		(2	)		(38	)		(192	)
Ending balance	$	335		$	506		$	72		$	556		$	1,469

________________________________________________

(a)Includes $242 million related to non-PCD acquired loans recorded on April 1, 2022.

(b)For the year ended December 31, 2022, net charge-offs do not reflect $33 million of charge-offs related to PCD loans acquired on April 1, 2022.

Loan and Leases Considered Nonaccrual and Interest Income Recognized on Loans

Information with respect to loans and leases that were considered nonaccrual at the beginning and end of the reporting period and the interest income recognized on such loans for the years ended December 31, 2023, 2022 and 2021 follows.

	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost			Interest Income Recognized
(Dollars in millions)	December 31, 2023							January 1, 2023		Year Ended December 31, 2023
Commercial and industrial	$	397	$	273	$	670		$	504	$	22
Real estate:
Commercial		288		581		869			1,240		29
Residential builder and developer		3		—		3			1		—
Other commercial construction		71		100		171			125		2
Residential		81		134		215			272		15
Residential — limited documentation		19		36		55			78		2
Consumer:
Home equity lines and loans		42		39		81			85		7
Recreational finance		24		12		36			45		1
Automobile		9		5		14			40		—
Other		52		—		52			49		—
Total	$	986	$	1,180	$	2,166		$	2,439	$	78
(Dollars in millions)	December 31, 2022							January 1, 2022		Year Ended December 31, 2022
Commercial and industrial	$	212	$	292	$	504		$	371	$	26
Real estate:
Commercial		366		874		1,240			919		14
Residential builder and developer		1		—		1			3		2
Other commercial construction		59		66		125			111		4
Residential		147		125		272			356		25
Residential — limited documentation		48		30		78			123		1
Consumer:
Home equity lines and loans		43		42		85			70		4
Recreational finance		37		8		45			28		1
Automobile		35		5		40			34		—
Other		49		—		49			45		—
Total	$	997	$	1,442	$	2,439		$	2,060	$	77
(Dollars in millions)	December 31, 2021							January 1, 2021		Year Ended December 31, 2021
Commercial and industrial	$	153	$	218	$	371		$	433	$	23
Real estate:
Commercial		199		720		919			650		5
Residential builder and developer		1		2		3			1		1
Other commercial construction		30		81		111			114		1
Residential		198		158		356			366		24
Residential — limited documentation		80		43		123			147		—
Consumer:
Home equity lines and loans		32		38		70			79		4
Recreational finance		22		6		28			26		1
Automobile		29		5		34			39		—
Other		45		—		45			38		—
Total	$	789	$	1,271	$	2,060		$	1,893	$	59

Summary of Loan grades applied various classes of Commercial and Industrial Loans and Commercial Real Estate Loans

The following table summarizes the loan grades applied at December 31, 2023 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans by origination year.

	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Loans		Loans		Total
Commercial and industrial:
Loan grades:
Pass	$	8,689	$	8,087	$	4,800	$	2,248	$	2,169	$	4,843	$	22,345	$	70	$	53,251
Criticized accrual		292		279		277		142		127		481		1,460		31		3,089
Criticized nonaccrual		29		68		56		75		36		150		243		13		670
Total commercial and industrial	$	9,010	$	8,434	$	5,133	$	2,465	$	2,332	$	5,474	$	24,048	$	114	$	57,010
Gross charge-offs year ended    December 31, 2023	$	10	$	45	$	18	$	13	$	10	$	19	$	17	$	—	$	132
Real estate:
Commercial:
Loan grades:
Pass	$	2,048	$	1,742	$	1,367	$	2,011	$	3,059	$	8,491	$	440	$	—	$	19,158
Criticized accrual		227		891		465		456		966		2,238		7		—		5,250
Criticized nonaccrual		—		46		3		113		93		611		3		—		869
Total commercial real    estate	$	2,275	$	2,679	$	1,835	$	2,580	$	4,118	$	11,340	$	450	$	—	$	25,277
Gross charge-offs year ended    December 31, 2023	$	—	$	—	$	—	$	—	$	112	$	129	$	—	$	—	$	241
Residential builder and    developer:
Loan grades:
Pass	$	530	$	252	$	41	$	6	$	2	$	12	$	116	$	—	$	959
Criticized accrual		1		18		30		—		59		—		3		—		111
Criticized nonaccrual		—		—		3		—		—		—		—		—		3
Total residential builder    and developer	$	531	$	270	$	74	$	6	$	61	$	12	$	119	$	—	$	1,073
Gross charge-offs year ended    December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	2
Other commercial construction:
Loan grades:
Pass	$	813	$	1,366	$	651	$	373	$	646	$	187	$	30	$	—	$	4,066
Criticized accrual		53		391		390		691		565		326		—		—		2,416
Criticized nonaccrual		—		14		10		46		50		49		2		—		171
Total other commercial    construction	$	866	$	1,771	$	1,051	$	1,110	$	1,261	$	562	$	32	$	—	$	6,653
Gross charge-offs year ended    December 31, 2023	$	—	$	—	$	—	$	—	$	3	$	7	$	—	$	—	$	10

The following table summarizes the loan grades applied at December 31, 2022 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans by origination year.

	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
(Dollars in millions)	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
Commercial and industrial:
Loan grades:
Pass	$	10,217	$	6,582	$	3,110	$	2,989	$	1,752	$	4,615	$	19,794	$	41	$	49,100
Criticized accrual		259		237		234		170		98		527		774		17		2,316
Criticized nonaccrual		21		55		67		51		55		147		101		7		504
Total commercial and industrial	$	10,497	$	6,874	$	3,411	$	3,210	$	1,905	$	5,289	$	20,669	$	65	$	51,920
Real estate:
Commercial:
Loan grades:
Pass	$	2,493	$	1,752	$	2,303	$	3,365	$	2,359	$	8,262	$	521	$	—	$	21,055
Criticized accrual		314		449		424		635		910		1,610		42		—		4,384
Criticized nonaccrual		9		19		155		282		151		601		23		—		1,240
Total commercial real    estate	$	2,816	$	2,220	$	2,882	$	4,282	$	3,420	$	10,473	$	586	$	—	$	26,679
Residential builder and developer:
Loan grades:
Pass	$	682	$	230	$	11	$	22	$	13	$	10	$	150	$	—	$	1,118
Criticized accrual		3		28		10		109		15		—		31		—		196
Criticized nonaccrual		—		1		—		—		—		—		—		—		1
Total residential builder    and developer	$	685	$	259	$	21	$	131	$	28	$	10	$	181	$	—	$	1,315
Other commercial construction:
Loan grades:
Pass	$	1,033	$	1,080	$	1,226	$	1,186	$	367	$	296	$	16	$	—	$	5,204
Criticized accrual		38		145		321		1,025		299		145		—		—		1,973
Criticized nonaccrual		—		10		44		36		11		22		2		—		125
Total other commercial    construction	$	1,071	$	1,235	$	1,591	$	2,247	$	677	$	463	$	18	$	—	$	7,302

Summary of loans in Accrual and Nonaccrual Status

A summary of loans in accrual and nonaccrual status at December 31, 2023 for the various classes of the Company’s residential real estate loans and consumer loans by origination year is as follows:

	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Loans		Loans		Total
Residential:
Current	$	1,726	$	4,709	$	3,732	$	2,543	$	1,215	$	7,060	$	95	$	—	$	21,080
30-89 days past due		18		120		88		52		28		457		—		—		763
Accruing loans past due     90 days or more		1		30		28		17		14		205		—		—		295
Nonaccrual		1		17		10		3		4		179		1		—		215
Total residential	$	1,746	$	4,876	$	3,858	$	2,615	$	1,261	$	7,901	$	96	$	—	$	22,353
Gross charge-offs year ended    December 31, 2023	$	—	$	—	$	1	$	—	$	3	$	4	$	—	$	—	$	8
Residential - limited documentation:
Current	$	—	$	—	$	—	$	—	$	—	$	825	$	—	$	—	$	825
30-89 days past due		—		—		—		—		—		31		—		—		31
Accruing loans past due     90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		55		—		—		55
Total residential - limited    documentation	$	—	$	—	$	—	$	—	$	—	$	911	$	—	$	—	$	911
Gross charge-offs year ended    December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	—	$	2
Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	2	$	2	$	13	$	98	$	3,022	$	1,391	$	4,528
30-89 days past due		—		—		—		—		—		3		—		37		40
Accruing loans past due     90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		5		3		73		81
Total home equity lines and    loans	$	—	$	—	$	2	$	2	$	13	$	106	$	3,025	$	1,501	$	4,649
Gross charge-offs year ended    December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	1	$	5	$	6
Recreational finance:
Current	$	2,653	$	2,338	$	1,857	$	1,286	$	781	$	1,020	$	—	$	—	$	9,935
30-89 days past due		11		16		19		14		11		16		—		—		87
Accruing loans past due     90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		3		5		8		6		5		9		—		—		36
Total recreational finance	$	2,667	$	2,359	$	1,884	$	1,306	$	797	$	1,045	$	—	$	—	$	10,058
Gross charge-offs year ended    December 31, 2023	$	4	$	13	$	14	$	12	$	9	$	16	$	—	$	—	$	68
Automobile:
Current	$	1,063	$	1,096	$	1,047	$	427	$	198	$	87	$	—	$	—	$	3,918
30-89 days past due		8		15		17		9		6		5		—		—		60
Accruing loans past due     90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		2		3		3		2		2		2		—		—		14
Total automobile	$	1,073	$	1,114	$	1,067	$	438	$	206	$	94	$	—	$	—	$	3,992
Gross charge-offs year ended    December 31, 2023	$	2	$	6	$	7	$	3	$	2	$	3	$	—	$	—	$	23
Other:
Current	$	250	$	176	$	118	$	33	$	13	$	18	$	1,392	$	3	$	2,003
30-89 days past due		3		3		2		—		—		1		20		1		30
Accruing loans past due     90 days or more		—		—		—		—		—		—		7		—		7
Nonaccrual		2		1		1		—		—		—		48		—		52
Total other	$	255	$	180	$	121	$	33	$	13	$	19	$	1,467	$	4	$	2,092
Gross charge-offs year ended    December 31, 2023	$	18	$	17	$	7	$	3	$	3	$	10	$	20	$	—	$	78
Total loans and leases at    December 31, 2023	$	18,423	$	21,683	$	15,025	$	10,555	$	10,062	$	27,464	$	29,237	$	1,619	$	134,068
Total gross charge-offs for    the year ended    December 31, 2023	$	34	$	81	$	47	$	31	$	142	$	190	$	40	$	5	$	570

A summary of loans in accrual and nonaccrual status at December 31, 2022 for the various classes of the Company’s residential real estate loans and consumer loans by origination year follows.

	Term Loans by Origination Year												Revolving		Revolving Loans Converted to Term
(Dollars in millions)	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
Residential:
Current	$	5,071	$	4,002	$	2,717	$	1,393	$	754	$	7,524	$	31	$	—	$	21,492
30-89 days past due		60		51		40		22		23		399		1		—		596
Accruing loans past due     90 days or more		12		40		20		14		14		245		—		—		345
Nonaccrual		6		11		3		10		5		231		6		—		272
Total residential	$	5,149	$	4,104	$	2,780	$	1,439	$	796	$	8,399	$	38	$	—	$	22,705
Residential - limited documentation:
Current	$	—	$	—	$	—	$	—	$	—	$	951	$	—	$	—	$	951
30-89 days past due		—		—		—		—		—		22		—		—		22
Accruing loans past due     90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		—		—		78		—		—		78
Total residential - limited    documentation	$	—	$	—	$	—	$	—	$	—	$	1,051	$	—	$	—	$	1,051
Consumer:
Home equity lines and    loans:
Current	$	1	$	2	$	2	$	15	$	23	$	97	$	3,264	$	1,487	$	4,891
30-89 days past due		—		—		—		—		1		2		—		28		31
Accruing loans past due     90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		—		—		—		1		—		6		3		75		85
Total home equity lines and    loans	$	1	$	2	$	2	$	16	$	24	$	105	$	3,267	$	1,590	$	5,007
Recreational finance:
Current	$	2,842	$	2,281	$	1,588	$	964	$	487	$	812	$	—	$	—	$	8,974
30-89 days past due		9		10		12		8		5		11		—		—		55
Accruing loans past due     90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		3		7		9		8		6		12		—		—		45
Total recreational finance	$	2,854	$	2,298	$	1,609	$	980	$	498	$	835	$	—	$	—	$	9,074
Automobile:
Current	$	1,491	$	1,558	$	703	$	379	$	167	$	95	$	—	$	—	$	4,393
30-89 days past due		7		13		7		7		6		4		—		—		44
Accruing loans past due     90 days or more		—		—		—		—		—		—		—		—		—
Nonaccrual		2		11		7		8		6		6		—		—		40
Total automobile	$	1,500	$	1,582	$	717	$	394	$	179	$	105	$	—	$	—	$	4,477
Other:
Current	$	274	$	173	$	58	$	39	$	8	$	23	$	1,374	$	8	$	1,957
30-89 days past due		4		1		—		—		—		1		16		1		23
Accruing loans past due     90 days or more		—		—		—		—		—		—		5		—		5
Nonaccrual		3		1		—		—		—		—		45		—		49
Total other	$	281	$	175	$	58	$	39	$	8	$	24	$	1,440	$	9	$	2,034
Total loans and leases at    December 31, 2022	$	24,854	$	18,749	$	13,071	$	12,738	$	7,535	$	26,754	$	26,199	$	1,664	$	131,564