Asset Quality (Tables)

12 Months Ended

Dec. 31, 2018

Table 37: Analysis of Loan Portfolio (a)



	Accruing
Dollars in millions	Current or Less Than 30 Days Past Due			30-59 Days Past Due			60-89 Days Past Due			90 Days Or More Past Due			Total Past Due (b)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (c)			Purchased Impaired Loans			Total Loans (d)
December 31, 2018
Commercial Lending
Commercial	$	116,300		$	82		$	54		$	52		$	188			$	346								$	116,834
Commercial real estate	28,056			6			3						9				75									28,140
Equipment lease financing	7,229			56			12						68				11									7,308
Total commercial lending	151,585			144			69			52			265				432									152,282
Consumer Lending
Home equity	24,556			66			25						91				797						$	679		26,123
Residential real estate	16,216			135			73			363			571			(b)	350			$	182		1,338			18,657
Automobile	14,165			113			29			12			154				100									14,419
Credit card	6,222			46			29			53			128				7									6,357
Education	3,571			69			41			141			251			(b)										3,822
Other consumer	4,552			12			5			8			25				8									4,585
Total consumer lending	69,282			441			202			577			1,220				1,262			182			2,017			73,963
Total	$	220,867		$	585		$	271		$	629		$	1,485			$	1,694		$	182		$	2,017		$	226,245
Percentage of total loans	97.62		%	.26		%	.12		%	.28		%	.66		%		.75		%	.08		%	.89		%	100.00		%
December 31, 2017
Commercial Lending
Commercial	$	109,989		$	45		$	25		$	39		$	109			$	429								$	110,527
Commercial real estate	28,826			27			2						29				123									28,978
Equipment lease financing	7,914			17			1						18				2									7,934
Total commercial lending	146,729			89			28			39			156				554									147,439
Consumer Lending
Home equity	26,561			78			26						104				818						$	881		28,364
Residential real estate	14,389			151			74			486			711			(b)	400			$	197		1,515			17,212
Automobile	12,697			79			20			8			107				76									12,880
Credit card	5,579			43			26			45			114				6									5,699
Education	4,154			90			58			152			300			(b)										4,454
Other consumer	4,371			15			6			7			28				11									4,410
Total consumer lending	67,751			456			210			698			1,364				1,311			197			2,396			73,019
Total	$	214,480		$	545		$	238		$	737		$	1,520			$	1,865		$	197		$	2,396		$	220,458
Percentage of total loans	97.29		%	.25		%	.11		%	.33		%	.69		%		.85		%	.09		%	1.08		%	100.00		%


(a)	Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment does not include any associated valuation allowance.

(b)

Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans. Past due loan amounts include government insured or guaranteed Residential real estate mortgages totaling $.5 billion and $.6 billion at December 31, 2018 and 2017, respectively, and Education loans totaling $.2 billion and $.3 billion at December 31, 2018 and 2017, respectively.


(c)	Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population.


(d)	Net of unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums totaling $1.2 billion at both December 31, 2018 and 2017.

Nonperforming Assets

Table 38: Nonperforming Assets



Dollars in millions	December 31 2018			December 31 2017
Nonperforming loans
Total commercial lending	$	432		$	554
Total consumer lending (a)	1,262			1,311
Total nonperforming loans	1,694			1,865
OREO and foreclosed assets	114			170
Total nonperforming assets	$	1,808		$	2,035
Nonperforming loans to total loans	.75		%	.85		%
Nonperforming assets to total loans, OREO and foreclosed assets	.80		%	.92		%
Nonperforming assets to total assets	.47		%	.53		%
Interest on nonperforming loans (b)
Computed on original terms	$	123		$	114
Recognized prior to nonperforming status	$	17		$	19


(a)	Excludes most consumer loans and lines of credit not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.


(b)	Amounts are for the year ended.

Commercial Lending Asset Quality Indicators

Table 39: Commercial Lending Asset Quality Indicators (a)



In millions	Pass Rated		Criticized		Total Loans
December 31, 2018
Commercial	$	111,276	$	5,558	$	116,834
Commercial real estate	27,682		458		28,140
Equipment lease financing	7,180		128		7,308
Total commercial lending	$	146,138	$	6,144	$	152,282
December 31, 2017
Commercial	$	105,280	$	5,247	$	110,527
Commercial real estate	28,380		598		28,978
Equipment lease financing	7,754		180		7,934
Total commercial lending	$	141,414	$	6,025	$	147,439


(a)	Loans are classified as "Pass" and "Criticized" based on the Regulatory Classification definitions. The "Criticized" classification includes loans that were rated “Special Mention”, “Substandard” or “Doubtful” as of December 31, 2018 and 2017. We use PD and LGD to rate loans in the commercial lending portfolio.

Home Equity and Residential Real Estate Asset Quality Indicators

Table 40: Asset Quality Indicators for Home Equity and Residential Real Estate Loans



	December 31, 2018				December 31, 2017
	Home equity		Residential real estate		Home equity		Residential real estate
In millions
Current estimated LTV ratios
Greater than or equal to 125%	$	461	$	116	$	583	$	150
Greater than or equal to 100% to less than 125%	1,020		255		1,342		303
Greater than or equal to 90% to less than 100%	1,174		335		1,421		382
Less than 90%	22,644		15,922		24,105		14,033
No LTV ratio available	145		6		32		23
Government insured or guaranteed loans			685				806
Purchased impaired loans	679		1,338		881		1,515
Total loans	$	26,123	$	18,657	$	28,364	$	17,212
Updated FICO Scores
Greater than 660	$	22,996	$	15,956	$	24,876	$	14,148
Less than or equal to 660	2,210		585		2,451		630
No FICO score available	238		93		156		113
Government insured or guaranteed loans			685				806
Purchased impaired loans	679		1,338		881		1,515
Total loans	$	26,123	$	18,657	$	28,364	$	17,212

Asset Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loans

Table 41: Asset Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loans



Dollars in millions	Automobile		Credit Card		Education		Other Consumer
December 31, 2018
FICO score greater than 719	$	7,740	$	3,809	$	1,240	$	1,280
650 to 719	4,365		1,759		194		641
620 to 649	1,007		280		26		106
Less than 620	1,027		332		24		105
No FICO score available or required (a)	280		177		57		25
Total loans using FICO credit metric	14,419		6,357		1,541		2,157
Consumer loans using other internal credit metrics					2,281		2,428
Total loans	$	14,419	$	6,357	$	3,822	$	4,585
Weighted-average updated FICO score (b)	726		733		774		732
December 31, 2017
FICO score greater than 719	$	7,825	$	3,457	$	1,315	$	1,226
650 to 719	3,636		1,596		209		507
620 to 649	543		250		31		85
Less than 620	587		272		30		98
No FICO score available or required (a)	242		124		49		23
Total loans using FICO credit metric	12,833		5,699		1,634		1,939
Consumer loans using other internal credit metrics	47				2,820		2,471
Total loans	$	12,880	$	5,699	$	4,454	$	4,410
Weighted-average updated FICO score (b)	738		735		773		737

(a)

Loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.


(b)	Weighted-average updated FICO score excludes accounts with no FICO score available or required.

Financial Impact and TDRs by Concession Type

Table 42: Financial Impact and TDRs by Concession Type (a)



	Number of Loans	Pre-TDR Recorded Investment (b)		Post-TDR Recorded Investment (c)
During the year ended December 31, 2018 Dollars in millions	Number of Loans	Pre-TDR Recorded Investment (b)		Principal Forgiveness		Rate Reduction		Other		Total
Total commercial lending	85	$	272	$	2	$	67	$	179	$	248
Total consumer lending	12,096	163		1		86		63		150
Total TDRs	12,181	$	435	$	3	$	153	$	242	$	398
During the year ended December 31, 2017 Dollars in millions
Total commercial lending	120	$	293	$	18	$	7	$	227	$	252
Total consumer lending	11,993	248				146		97		243
Total TDRs	12,113	$	541	$	18	$	153	$	324	$	495
During the year ended December 31, 2016 Dollars in millions
Total commercial lending	143	$	524			$	57	$	413	$	470
Total consumer lending	11,262	245				157		76		233
Total TDRs	11,405	$	769			$	214	$	489	$	703


(a)	Impact of partial charge-offs at TDR date are included in this table.


(b)	Represents the recorded investment of the loans as of the quarter end prior to TDR designation, and excludes immaterial amounts of accrued interest receivable.


(c)	Represents the recorded investment of the TDRs as of the end of the quarter in which the TDR occurs, and excludes immaterial amounts of accrued interest receivable.

Impaired Loans

Table 43: Impaired Loans



In millions	Unpaid Principal Balance		Recorded Investment		Associated Allowance		Average Recorded Investment (a)
December 31, 2018
Impaired loans with an associated allowance
Total commercial lending	$	440	$	315	$	73	$	349
Total consumer lending	863		817		136		904
Total impaired loans with an associated allowance	1,303		1,132		209		1,253
Impaired loans without an associated allowance
Total commercial lending	413		326				294
Total consumer lending	1,042		625				645
Total impaired loans without an associated allowance	1,455		951				939
Total impaired loans	$	2,758	$	2,083	$	209	$	2,192
December 31, 2017
Impaired loans with an associated allowance
Total commercial lending	$	580	$	353	$	76	$	419
Total consumer lending	1,061		1,014		195		1,072
Total impaired loans with an associated allowance	1,641		1,367		271		1,491
Impaired loans without an associated allowance
Total commercial lending	494		366				330
Total consumer lending	1,019		638				648
Total impaired loans without an associated allowance	1,513		1,004				978
Total impaired loans	$	3,154	$	2,371	$	271	$	2,469


(a)	Average recorded investment is for the years ended December 31, 2018 and 2017.