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Loans (Tables)

3 Months Ended

Mar. 31, 2020

Table 40: Analysis of Loan Portfolio



	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)			Total Loans (d)(e)			Accrued Interest Receivable (f)
March 31, 2020 (a)
Commercial Lending
Commercial	$	148,467		$	97		$	22		$	51		$	170			$	494					$	149,131		$	268
Commercial real estate	28,495			6			1						7				42						28,544			68
Equipment lease financing	6,987			42			2						44				30						7,061
Total commercial lending	183,949			145			25			51			221				566						184,736			336
Consumer Lending
Home equity	24,311			65			28						93				617			$	60		25,081			118
Residential real estate	20,934			173			82			300			555			(b)	292			469			22,250			59
Automobile	16,795			177			49			19			245				154						17,194			64
Credit card	6,956			59			37			70			166				10						7,132
Education	3,081			52			30			84			166			(b)							3,247			134
Other consumer	4,961			17			10			10			37				5						5,003			14
Total consumer lending	77,038			543			236			483			1,262				1,078			529			79,907			389
Total	$	260,987		$	688		$	261		$	534		$	1,483			$	1,644		$	529		$	264,643		$	725
Percentage of total loans	98.62		%	.26		%	.10		%	.20		%	.56		%		.62		%	.20		%	100.00		%


(a)	Amounts in table represent loans held for investment and do not include any associated valuation allowance.


(b)	Past due loan amounts include purchased credit deteriorated loans totaling $.1 billion and government insured or guaranteed Residential real estate loans and Education loans totaling $.4 billion and $.2 billion, respectively, at March 31, 2020.


(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, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans totaling $1.3 billion at March 31, 2020.


(e)	Collateral dependent loans totaled $1.1 billion at March 31, 2020. The majority of these loans are within the Home equity and Residential real estate loan classes and are secured by consumer real estate.


(f)	The accrued interest associated with our loan portfolio is included in Other assets on the Consolidated Balance Sheet.



	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 (h)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (i)			Purchased Impaired Loans			Total Loans (j)
December 31, 2019 (g)
Commercial Lending
Commercial	$	124,695		$	102		$	30		$	85		$	217			$	425								$	125,337
Commercial real estate	28,061			4			1						5				44									28,110
Equipment lease financing	7,069			49			5						54				32									7,155
Total commercial lending	159,825			155			36			85			276				501									160,602
Consumer Lending
Home equity	23,791			58			24						82				669						$	543		25,085
Residential real estate	19,640			140			69			315			524			(h)	315			$	166		1,176			21,821
Automobile	16,376			178			47			18			243				135									16,754
Credit card	7,133			60			37			67			164				11									7,308
Education	3,156			55			34			91			180			(h)										3,336
Other consumer	4,898			15			11			9			35				4									4,937
Total consumer lending	74,994			506			222			500			1,228				1,134			166			1,719			79,241
Total	$	234,819		$	661		$	258		$	585		$	1,504			$	1,635		$	166		$	1,719		$	239,843
Percentage of total loans	97.90		%	.28		%	.11		%	.24		%	.63		%		.68		%	.07		%	.72		%	100.00		%


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

(h)

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 accreted interest income over the expected life of the loans. Past due loan amounts include government insured or guaranteed Residential real estate loans totaling $.4 billion and Education loans totaling $.2 billion at December 31, 2019.


(i)	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.


(j)	Net of unearned income, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans totaling $1.1 billion at December 31, 2019.

Nonperforming Assets

The following table presents our nonperforming assets as of March 31, 2020 and December 31, 2019, respectively.

Table 41: Nonperforming Assets



Dollars in millions	March 31 2020			December 31 2019
Nonperforming loans
Total commercial lending	$	566		$	501
Total consumer lending (a)	1,078			1,134
Total nonperforming loans (b)	1,644			1,635
OREO and foreclosed assets	111			117
Total nonperforming assets	$	1,755		$	1,752
Nonperforming loans to total loans	.62		%	.68		%
Nonperforming assets to total loans, OREO and foreclosed assets	.66		%	.73		%
Nonperforming assets to total assets	.39		%	.43		%


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


(b)	Nonperforming loans for which there is no related ACL totaled $.3 billion at March 31, 2020.

Commercial Lending Credit Quality Indicators

Table 42: Commercial Lending Credit Quality Indicators (a)



	Amortized Cost Basis by Origination Year
March 31, 2020 - Dollars in millions	Three Months Ended March 31, 2020			2019			2018			2017			2016			Prior			Revolving Loans			Revolving Loans Converted to Term			Total Loans
Commercial
Pass Rated	$	7,250		$	18,695		$	11,957		$	7,943		$	5,399		$	11,807		$	78,664		$	61		$	141,776
Criticized	16			373			580			435			307			530			5,098			16			7,355
Total commercial	7,266			19,068			12,537			8,378			5,706			12,337			83,762			77			149,131
% of total commercial	4.8		%	12.8		%	8.4		%	5.6		%	3.8		%	8.3		%	56.2		%	.1		%	100.0		%
Commercial real estate
Pass Rated	898			6,812			4,221			3,766			2,973			8,908			203						27,781
Criticized	6			63			27			49			173			359			86						763
Total commercial real estate	904			6,875			4,248			3,815			3,146			9,267			289						28,544
% of total commercial real estate	3.2		%	24.0		%	14.9		%	13.4		%	11.0		%	32.5		%	1.0		%				100.0		%
Equipment lease financing
Pass Rated	334			1,438			1,252			1,038			680			2,059									6,801
Criticized	4			74			88			44			27			23									260
Total equipment lease financing	338			1,512			1,340			1,082			707			2,082									7,061
% of total equipment lease financing	4.8		%	21.4		%	19.0		%	15.3		%	10.0		%	29.5		%							100.0		%
Total commercial lending	$	8,508		$	27,455		$	18,125		$	13,275		$	9,559		$	23,686		$	84,051		$	77		$	184,736
% of total commercial lending	4.6		%	14.9		%	9.8		%	7.2		%	5.2		%	12.8		%	45.5		%	—			100.0		%



December 31, 2019 - Dollars in millions	Pass Rated		Criticized		Total Loans
Commercial	$	119,761	$	5,576	$	125,337
Commercial real estate	27,424		686		28,110
Equipment lease financing	6,891		264		7,155
Total commercial lending	$	154,076	$	6,526	$	160,602

(a)

Loans in our commercial lending portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of March 31, 2020 and December 31, 2019.

Home Equity and Residential Real Estate Asset Quality Indicators

Table 43: Home Equity and Residential Real Estate Loans Credit Quality Indicators



	Amortized Cost Basis by Origination Year
March 31, 2020 – Dollars in millions	Three months ended March 31, 2020			2019			2018			2017			2016			Prior			Revolving Loans			Revolving Loans Converted to Term			Total Loans
Home Equity
Current estimated LTV ratios																									.
Greater than or equal to 100%				$	18		$	27		$	30		$	18		$	144		$	722		$	389		$	1,348
Greater than or equal to 90% to less than 100%				45			37			20			15			87			684			263			1,151
Less than 90%	$	785		2,584			761			1,041			875			4,880			8,502			3,154			22,582
Total home equity	$	785		$	2,647		$	825		$	1,091		$	908		$	5,111		$	9,908		$	3,806		$	25,081
Updated FICO scores
Greater than 660	$	773		$	2,521		$	761		$	1,026		$	856		$	4,609		$	9,339		$	2,871		$	22,756
Less than or equal to 660	12			126			64			64			51			493			555			842			2,207
No FICO score available										1			1			9			14			93			118
Total home equity	$	785		$	2,647		$	825		$	1,091		$	908		$	5,111		$	9,908		$	3,806		$	25,081
% of total home equity	3.1		%	10.6		%	3.3		%	4.3		%	3.6		%	20.4		%	39.5		%	15.2		%	100.0		%
Residential Real Estate
Current estimated LTV ratios
Greater than or equal to 100%				$	3		$	58		$	74		$	68		$	241								$	444
Greater than or equal to 90% to less than 100%	$	4		27			61			64			50			155									361
Less than 90%	1,757			6,236			1,867			2,752			2,697			5,556									20,865
Government insured or guaranteed loans				9			13			17			25			516									580
Total residential real estate	$	1,761		$	6,275		$	1,999		$	2,907		$	2,840		$	6,468								$	22,250
Updated FICO scores
Greater than 660	$	1,757		$	6,198		$	1,945		$	2,844		$	2,732		$	5,166								$	20,642
Less than or equal to 660	2			65			41			41			79			693									921
No FICO score available	2			3						5			4			93									107
Government insured or guaranteed loans				9			13			17			25			516									580
Total residential real estate	$	1,761		$	6,275		$	1,999		$	2,907		$	2,840		$	6,468								$	22,250
% of total residential real estate	7.9		%	28.1		%	9.0		%	13.1		%	12.8		%	29.1		%							100.0		%



	Home equity		Residential real estate
December 31, 2019 - Dollars in millions	Home equity		Residential real estate
Current estimated LTV ratios
Greater than or equal to 125%	$	366	$	112
Greater than or equal to 100% to less than 125%	877		221
Greater than or equal to 90% to less than 100%	1,047		340
Less than 90%	22,068		19,305
No LTV ratio available	184		83
Government insured or guaranteed loans			584
Purchased impaired loans	543		1,176
Total loans	$	25,085	$	21,821
Updated FICO Scores
Greater than 660	$	22,245	$	19,341
Less than or equal to 660	2,019		569
No FICO score available	278		151
Government insured or guaranteed loans			584
Purchased impaired loans	543		1,176
Total loans	$	25,085	$	21,821

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

Table 44: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes



	Amortized Cost Basis by Origination Year
March 31, 2020 – Dollars in millions	Three months ended March 31, 2020			2019			2018			2017			2016			Prior			Revolving Loans			Revolving Loans Converted to Term			Total Loans
Automobile
FICO score greater than 719	$	1,586		$	4,090		$	1,955		$	1,164		$	725		$	275								$	9,795
650 to 719	320			2,112			1,225			571			256			105									4,589
620 to 649	14			525			306			122			47			21									1,035
Less than 620	8			673			633			283			119			59									1,775
Total automobile	$	1,928		$	7,400		$	4,119		$	2,140		$	1,147		$	460								$	17,194
% of total automobile	11.2		%	43.0		%	24.0		%	12.4		%	6.7		%	2.7		%							100.0		%
Credit card
FICO score greater than 719																			$	3,564		$	10		$	3,574
650 to 719																			2,370			27			2,397
620 to 649																			442			12			454
Less than 620																			547			49			596
No FICO score available or required (a)																			108			3			111
Total credit card																			$	7,031		$	101		$	7,132
% total credit card																			98.6		%	1.4		%	100.0		%
Education
FICO score greater than 719	$	7		$	89		$	121		$	94		$	78		$	703								$	1,092
650 to 719	2			14			19			12			9			124									180
620 to 649				1			2			1			1			20									25
Less than 620				1			1			1			1			24									28
No FICO score available or required (a)	3			11			7			6			1			1									29
Total loans using FICO credit metric	12			116			150			114			90			872									1,354
Other internal credit metrics	11			59												1,823									1,893
Total education	$	23		$	175		$	150		$	114		$	90		$	2,695								$	3,247
% total education	.7		%	5.4		%	4.6		%	3.5		%	2.8		%	83.0		%							100.0		%
Other consumer
FICO score greater than 719	$	218		$	623		$	219		$	71		$	25		$	90		$	230		$	1		$	1,477
650 to 719	126			349			158			40			13			26			162			1			875
620 to 649	17			56			29			6			2			4			26						140
Less than 620	5			45			37			12			4			9			44			1			157
No FICO score available or required (a)	1															2			6						9
Total loans using FICO credit metric	367			1,073			443			129			44			131			468			3			2,658
Other internal credit metrics	14			74			49			34			65			88			2,018			3			2,345
Total other consumer	$	381		$	1,147		$	492		$	163		$	109		$	219		$	2,486		$	6		$	5,003
% total other consumer	7.6		%	22.9		%	9.8		%	3.3		%	2.2		%	4.4		%	49.7		%	.1		%	100.0		%




Dollars in millions	Automobile		Credit Card		Education		Other Consumer
December 31, 2019
FICO score greater than 719	$	9,232	$	3,867	$	1,139	$	1,421
650 to 719	4,577		2,326		197		843
620 to 649	1,001		419		25		132
Less than 620	1,603		544		27		143
No FICO score available or required (a)	341		152		15		27
Total loans using FICO credit metric	16,754		7,308		1,403		2,566
Consumer loans using other internal credit metrics					1,933		2,371
Total loans	$	16,754	$	7,308	$	3,336	$	4,937
Weighted-average updated FICO score (b)	726		724		773		727

(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 45: Financial Impact and TDRs by Concession Type



			Pre-TDR Amortized Cost Basis (b)		Post-TDR Amortized Cost Basis (c)
During the three months ended March 31, 2020 Dollars in millions (a)	Number of Loans		Pre-TDR Amortized Cost Basis (b)		Principal Forgiveness		Rate Reduction		Other		Total
Total commercial lending		13	$	62	$	6			$	37	$	43
Total consumer lending		3,567	36				$	22	10		32
Total TDRs		3,580	$	98	$	6	$	22	$	47	$	75

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

(b) Represents the amortized cost basis of the loans as of the quarter end prior to TDR designation.



			Pre-TDR Recorded Investment (e)		Post-TDR Recorded Investment (f)
During the three months ended March 31, 2019 Dollars in millions (d)	Number of Loans		Pre-TDR Recorded Investment (e)		Principal Forgiveness	Rate Reduction		Other		Total
Total commercial lending		22	$	105				$	109	$	109
Total consumer lending		3,814	42			$	24	16		40
Total TDRs		3,836	$	147		$	24	$	125	$	149

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

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

(f) 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.

Rollforward of Unfunded Lending Related Commitments

Table 47: Rollforward of Allowance for Credit Losses - Unfunded Lending Related Commitments



At or for the three months ended March 31, 2020 Dollars in millions	Commercial Lending			Consumer Lending			Total
ACL - unfunded lending related commitments
December 31, 2019 (a)	$	316		$	2		$	318
Adoption of ASU 2016-13 (b)	53			126			179
January 1, 2020	369			128			497
Provision for (recapture of ) credit losses	(25		)	(22		)	(47		)
March 31, 2020	$	344		$	106		$	450
Portfolio segment ACL as a percentage of total ACL for unfunded lending related commitments	76		%	24		%	100		%

(a) Amounts at December 31, 2019 represent the allowance for unfunded loan commitments and letters of credit.

(b) Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2020 and our transition from an incurred loss methodology for our reserves to an expected credit loss methodology.

See Note 8 Commitments for additional information about the underlying commitments related to this allowance.

Analysis Of Changes In The Allowance For Credit Losses

Table 48: Analysis of Changes in the Allowance for Credit Losses (a)

In millions

(a) Excludes allowances for investment securities and other financial assets.

(b) Portfolio changes represent the impact of increases/decreases in loan balances, age and mix due to new originations/purchases, as well as credit quality and net charge-off activity.

Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data

Table 46: Rollforward of Allowance for Credit Losses - Loans and Leases



At or for the three months ended March 31, 2020 Dollars in millions	Commercial Lending			Consumer Lending			Total
ACL - loans and leases
December 31, 2019 (a)	$	1,812		$	930		$	2,742
Adoption of ASU 2016-13 (b)	(304		)	767			463
January 1, 2020	$	1,508		$	1,697		$	3,205
Charge-offs	(83		)	(221		)	(304		)
Recoveries	24			68			92
Net (charge-offs)	(59		)	(153		)	(212		)
Provision for credit losses (c)	531			421			952
Other	(1		)				(1		)
March 31, 2020	$	1,979		$	1,965		$	3,944
Portfolio segment ACL as a percentage of total ACL for loans and leases	50		%	50		%	100		%
Ratio of ACL for loans and leases to total loans	1.07		%	2.46		%	1.49		%

(a) Amounts as of December 31, 2019 represent the ALLL.

(c) The Provision for credit losses on the Consolidated Income Statement includes $952 million related to loans and leases, $9 million related to other financial assets and a recapture of credit losses for unfunded lending related commitments totaling $47 million for the three months ended March 31, 2020. See Table 47 for additional information related to our unfunded lending related commitments.

Table 49: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data



At or for the three months ended March 31, 2019 Dollars in millions	Commercial Lending			Consumer Lending			Total
Allowance for loan and lease losses
January 1, 2019	$	1,663		$	966		$	2,629
Charge-offs	(31		)	(184		)	(215		)
Recoveries	19			60			79
Net (charge-offs)	(12		)	(124		)	(136		)
Provision for credit losses	80			109			189
Net decrease in allowance for unfunded loan commitments and letters of credit	5			1			6
Other				4			4
March 31, 2019	$	1,736		$	956		$	2,692
TDRs individually evaluated for impairment	$	27		$	130		$	157
Other loans individually evaluated for impairment	60						60
Loans collectively evaluated for impairment	1,649			551			2,200
Purchased impaired loans				275			275
March 31, 2019	$	1,736		$	956		$	2,692
Loan portfolio
TDRs individually evaluated for impairment	$	456		$	1,412		$	1,868
Other loans individually evaluated for impairment	190						190
Loans collectively evaluated for impairment	157,796			69,732			227,528
Fair value option loans (a)				758			758
Purchased impaired loans				1,949			1,949
March 31, 2019	$	158,442		$	73,851		$	232,293
Portfolio segment ALLL as a percentage of total ALLL	64		%	36		%	100		%
Ratio of ALLL to total loans	1.10		%	1.29		%	1.16		%

(a) Loans accounted for under the fair value option were not evaluated for impairment as these loans are accounted for at fair value. Accordingly, there was no allowance recorded on those loans.