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Loans and Related Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

Summary Of The Classification Of Portfolio Segments


Commercial						Consumer

• Commercial and industrial						• Home equity
• Commercial real estate						• Residential real estate
• Equipment lease financing						• Automobile
						• Credit card
						• Education
						• Other consumer

Analysis of Loan Portfolio

Table 47: 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 (c)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (d)			Total Loans (e)(f)
December 31, 2020 (a) (b)
Commercial
Commercial and industrial	$	131,245		$	106		$	26		$	30		$	162			$	666					$	132,073
Commercial real estate	28,485			6			1						7				224						28,716
Equipment lease financing	6,345			31			5						36				33						6,414
Total commercial	166,075			143			32			30			205				923						167,203
Consumer
Home equity	23,318			50			21						71				645			$	54		24,088
Residential real estate	20,945			181			78			319			578			(c)	528			509			22,560
Automobile	13,863			134			34			12			180				175						14,218
Credit card	6,074			43			30			60			133				8						6,215
Education	2,785			55			29			77			161			(c)							2,946
Other consumer	4,656			14			10			11			35				7						4,698
Total consumer	71,641			477			202			479			1,158				1,363			563			74,725
Total	$	237,716		$	620		$	234		$	509		$	1,363			$	2,286		$	563		$	241,928
Percentage of total loans	98.27		%	0.26		%	0.10		%	0.21		%	0.56		%		0.94		%	0.23		%	100.00		%

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

(b)The accrued interest associated with our loan portfolio at December 31, 2020 totaled $0.7 billion and is included in Other assets on the Consolidated Balance Sheet.

(c)Past due loan amounts include government insured or guaranteed Residential real estate loans and Education loans totaling $0.4 billion and $0.2 billion, respectively, at December 31, 2020.

(d)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.

(e)Net of unearned income, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans totaling $1.3 billion at December 31, 2020.

(f)Collateral dependent loans totaled $1.5 billion at December 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.


	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
Commercial and industrial	$	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	159,825			155			36			85			276				501									160,602
Consumer
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	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		%	0.28		%	0.11		%	0.24		%	0.63		%		0.68		%	0.07		%	0.72		%	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 $0.4 billion and Education loans totaling $0.2 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 December 31, 2020 and 2019, respectively.

Table 48: Nonperforming Assets


Dollars in millions	December 31 2020			December 31 2019
Nonperforming loans
Commercial	$	923		$	501
Consumer (a)	1,363			1,134
Total nonperforming loans (b)	2,286			1,635
OREO and foreclosed assets	51			117
Total nonperforming assets	$	2,337		$	1,752
Nonperforming loans to total loans	0.94		%	0.68		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.97		%	0.73		%
Nonperforming assets to total assets	0.50		%	0.43		%

(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 ALLL totaled $0.8 billion at December 31, 2020, and is primarily comprised of loans with a valuation that exceeds the amortized cost basis.

Credit Quality Indicators By Loan Class

Table 49: Commercial Credit Quality Indicators (a)


	Term Loans by Origination Year
December 31, 2020 - In millions	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Commercial and industrial
Pass Rated	$	31,680	$	13,340	$	8,209	$	5,956	$	4,242	$	7,141	$	54,775	$	53	$	125,396
Criticized	339		702		578		334		224		351		4,130		19		6,677
Total commercial and industrial	32,019		14,042		8,787		6,290		4,466		7,492		58,905		72		132,073
Commercial real estate
Pass Rated	3,709		6,268		3,426		2,841		2,341		6,792		218				25,595
Criticized	319		548		148		423		400		1,159		124				3,121
Total commercial real estate	4,028		6,816		3,574		3,264		2,741		7,951		342				28,716
Equipment lease financing
Pass Rated	1,429		1,202		942		738		405		1,350						6,066
Criticized	78		92		86		39		22		31						348
Total equipment lease financing	1,507		1,294		1,028		777		427		1,381						6,414
Total commercial	$	37,554	$	22,152	$	13,389	$	10,331	$	7,634	$	16,824	$	59,247	$	72	$	167,203


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

(a)Loans in our commercial 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 December 31, 2020 and 2019.

The following table presents credit quality indicators for the home equity and residential real estate loan classes:

Table 50: Home Equity and Residential Real Estate Credit Quality Indicators


	Term Loans by Origination Year
December 31, 2020 - In millions	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Home equity
Current estimated LTV ratios																	.
Greater than 100%	$	8	$	44	$	18	$	15	$	9	$	88	$	580	$	279	$	1,041
Greater than or equal to 80% to 100%	517		320		59		42		25		158		1,781		591		3,493
Less than 80%	2,909		1,636		513		773		660		3,754		6,433		2,876		19,554
Total home equity	$	3,434	$	2,000	$	590	$	830	$	694	$	4,000	$	8,794	$	3,746	$	24,088
Updated FICO scores
Greater than or equal to 780	$	2,019	$	1,094	$	311	$	525	$	449	$	2,467	$	5,382	$	1,480	$	13,727
720 to 779	1,028		558		153		181		145		777		2,137		941		5,920
660 to 719	334		273		86		84		66		402		985		625		2,855
Less than 660	52		74		39		39		33		345		277		620		1,479
No FICO score available	1		1		1		1		1		9		13		80		107
Total home equity	$	3,434	$	2,000	$	590	$	830	$	694	$	4,000	$	8,794	$	3,746	$	24,088
Residential real estate
Current estimated LTV ratios
Greater than 100%	$	3	$	52	$	26	$	42	$	41	$	160					$	324
Greater than or equal to 80% to 100%	495		422		127		156		124		307						1,631
Less than 80%	7,491		3,656		992		1,706		1,847		3,991						19,683
Government insured or guaranteed loans	7		28		27		38		57		765						922
Total residential real estate	$	7,996	$	4,158	$	1,172	$	1,942	$	2,069	$	5,223					$	22,560
Updated FICO scores
Greater than or equal to 780	$	5,425	$	3,099	$	814	$	1,432	$	1,538	$	2,551					$	14,859
720 to 779	2,268		820		220		340		335		818						4,801
660 to 719	252		161		76		98		92		475						1,154
Less than 660	40		48		33		31		41		485						678
No FICO score available	4		2		2		3		6		129						146
Government insured or guaranteed loans	7		28		27		38		57		765						922
Total residential real estate	$	7,996	$	4,158	$	1,172	$	1,942	$	2,069	$	5,223					$	22,560


	Home equity		Residential real estate
December 31, 2019 - In millions
Current estimated LTV ratios
Greater than or equal to 100%	$	1,243	$	333
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

Table 51: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes


	Term Loans by Origination Year
December 31, 2020 - In millions	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Updated FICO Scores
Automobile
FICO score greater than or equal to 780	$	1,807	$	1,915	$	807	$	452	$	246	$	58					$	5,285
720 to 779	1,098		1,581		789		381		167		44						4,060
660 to 719	617		1,222		684		288		109		31						2,951
Less than 660	192		776		598		240		87		29						1,922
Total automobile	$	3,714	$	5,494	$	2,878	$	1,361	$	609	$	162					$	14,218
Credit card
FICO score greater than or equal to 780													$	1,635	$	3	$	1,638
720 to 779													1,724		11		1,735
660 to 719													1,765		26		1,791
Less than 660													902		51		953
No FICO score available or required (a)													94		4		98
Total credit card													$	6,120	$	95	$	6,215
Education
FICO score greater than or equal to 780	$	34	$	90	$	74	$	59	$	50	$	428					$	735
720 to 779	24		46		38		28		20		190						346
660 to 719	15		15		14		9		6		90						149
Less than 660	3		2		3		2		2		37						49
No FICO score available or required (a)	16		10		6		3				1						36
Total loans using FICO credit metric	92		163		135		101		78		746						1,315
Other internal credit metrics											1,631						1,631
Total education	$	92	$	163	$	135	$	101	$	78	$	2,377					$	2,946
Other consumer
FICO score greater than or equal to 780	$	162	$	187	$	63	$	21	$	5	$	42	$	86	$	1	$	567
720 to 779	197		247		82		22		5		22		123				698
660 to 719	127		210		81		17		3		14		117		1		570
Less than 660	28		86		41		9		2		8		53		1		228
Total loans using FICO credit metric	514		730		267		69		15		86		379		3		2,063
Other internal credit metrics	67		33		37		26		60		75		2,334		3		2,635
Total other consumer	$	581	$	763	$	304	$	95	$	75	$	161	$	2,713	$	6	$	4,698


December 31, 2019 - In millions	Automobile		Credit Card		Education		Other consumer
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 52: Financial Impact and TDRs by Concession Type


	Number of Loans	Pre-TDR Amortized Cost Basis (b)		Post-TDR Amortized Cost Basis (c)
During the year ended December 31, 2020 (a) Dollars in millions				Principal Forgiveness		Rate Reduction		Other		Total
Commercial	73	$	513	$	39	$	56	$	346	$	441
Consumer	12,270	178				88		73		161
Total TDRs	12,343	$	691	$	39	$	144	$	419	$	602

(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.

(c)Represents the amortized cost basis of the TDRs as of the end of the quarter in which the TDR occurs.


			Pre-TDR Recorded Investment (e)		Post-TDR Recorded Investment (f)
During the year ended December 31, 2019 (d) Dollars in millions	Number of Loans				Principal Forgiveness		Rate Reduction		Other		Total
Commercial		75	$	278			$	11	$	241	$	252
Consumer		14,548	172				97		64		161
Total TDRs		14,623	$	450			$	108	$	305	$	413
During the year ended December 31, 2018 (d) Dollars in millions
Commercial		85	$	272	$	2	$	67	$	179	$	248
Consumer		12,096	163		1		86		63		150
Total TDRs		12,181	$	435	$	3	$	153	$	242	$	398

(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 Allowance for Credit Losses

Table 53: Rollforward of Allowance for Credit Losses (a)


At or for the year ended December 31	2020
In millions	Commercial		Consumer		Total
Allowance for loan and lease losses
Beginning balance	$	1,812	$	930	$	2,742
Adoption of ASU 2016-13 (b)	(304)		767		463
Beginning balance, adjusted	1,508		1,697		3,205
Charge-offs	(407)		(785)		(1,192)
Recoveries	94		266		360
Net (charge-offs)	(313)		(519)		(832)
Provision for credit losses	2,139		846		2,985
Other	3				3
Ending balance	$	3,337	$	2,024	$	5,361
Allowance for unfunded lending related commitments (c)
Beginning balance	$	316	$	2	$	318
Adoption of ASU 2016-13 (b)	53		126		179
Beginning balance, adjusted	369		128		497
Provision for (recapture of) credit losses	116		(29)		87
Ending balance	$	485	$	99	$	584
Allowance for credit losses at December 31	$	3,822	$	2,123	$	5,945

(a) Excludes allowances for investment securities and other financial assets, which together totaled $109 million at December 31, 2020.

(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.

A rollforward of the ALLL and associated loan data follows:

Table 55: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data


At or for the year ended December 31	2019						2018
Dollars in millions	Commercial		Consumer		Total		Commercial		Consumer		Total
Allowance for loan and lease losses
January 1	$	1,663	$	966	$	2,629	$	1,582	$	1,029	$	2,611
Charge-offs	(216)		(758)		(974)		(124)		(640)		(764)
Recoveries	78		254		332		99		245		344
Net (charge-offs)	(138)		(504)		(642)		(25)		(395)		(420)
Provision for credit losses	320		453		773		97		311		408
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit	(34)		1		(33)		11		1		12
Other	1		14		15		(2)		20		18
December 31	$	1,812	$	930	$	2,742	$	1,663	$	966	$	2,629
TDRs individually evaluated for impairment	$	40	$	93	$	133	$	25	$	136	$	161
Other loans individually evaluated for impairment	58				58		48				48
Loans collectively evaluated for impairment	1,714		563		2,277		1,590		555		2,145
Purchased impaired loans			274		274				275		275
December 31	$	1,812	$	930	$	2,742	$	1,663	$	966	$	2,629
Loan portfolio
TDRs individually evaluated for impairment	$	361	$	1,303	$	1,664	$	409	$	1,442	$	1,851
Other loans individually evaluated for impairment	220				220		232				232
Loans collectively evaluated for impairment	160,021		75,477		235,498		151,641		69,722		221,363
Fair value option loans (a)			742		742				782		782
Purchased impaired loans			1,719		1,719				2,017		2,017
December 31	$	160,602	$	79,241	$	239,843	$	152,282	$	73,963	$	226,245

(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.

Analysis Of Changes In The Allowance For Credit Losses

The following presents an analysis of changes impacting the ACL related to loans for the year ended December 31, 2020:

Table 54: Analysis of Changes in the Allowance for Credit Losses (a)

In millions

(a) Excludes allowances for investment securities and other financial assets, which together totaled $109 million at December 31, 2020.

(b) Portfolio changes primarily 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.

(c) Economic and qualitative factors primarily represent our evaluation and determination of an economic forecast applied to our loan portfolio, which is based on a three year forecast period and the use of four economic scenarios with associated probability weights, as well as updates to qualitative factor adjustments.