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Loans (Tables)

6 Months Ended

Jun. 30, 2019

Accounts, Notes, Loans and Financing Receivable [Line Items]



(Dollars in millions)	June 30, 2019		December 31, 2018
Commercial loans:
C&I ¹		$72,971		$71,137
CRE	8,655		7,265
Commercial construction	2,365		2,538
Total commercial LHFI	83,991		80,940
Consumer loans:
Residential mortgages - guaranteed	439		459
Residential mortgages - nonguaranteed ²	28,794		28,836
Residential home equity products	8,902		9,468
Residential construction	156		184
Guaranteed student	7,202		7,229
Other direct	11,817		10,615
Indirect	13,598		12,419
Credit cards	1,690		1,689
Total consumer LHFI	72,598		70,899
LHFI		$156,589		$151,839
LHFS ³		$2,229		$1,468

¹Includes $4.1 billion of sales-type, direct financing, and leveraged leases at both June 30, 2019 and December 31, 2018. Includes $862 million and $796 million of installment loans at June 30, 2019 and December 31, 2018, respectively.

²Includes $127 million and $163 million of LHFI measured at fair value at June 30, 2019 and December 31, 2018, respectively.

³Includes $1.7 billion and $1.2 billion of LHFS measured at fair value at June 30, 2019 and December 31, 2018, respectively.

Loan Purchases, sales, and transfers [Table Text Block]



LHFI Purchases, Sales, and Transfers
	Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	2019		2018		2019		2018
Non-routine LHFI purchases ^{1, 2}:
Consumer loans		$85		$—		$258		$—
Routine LHFI purchases ^{2, 3}:
Consumer loans	471		548		916		1,023
LHFI sales ^{4, 5}:
Commercial loans	177		37		217		72
Consumer loans	432		100		432		100
Transfers from:
LHFI to LHFS					713		327
LHFS to LHFI					12		18
LHFI to OREO					23		33

¹Purchases are episodic in nature and are conducted based on specific business strategies.

²Represents UPB of loans purchased.

³ Purchases are routine in nature and are conducted in the normal course of business.

⁴Excludes sales of loans originated for sale and loans recorded at fair value conducted in the normal course of business.

⁵ Net gain on loan sales totaled $45 million for both the three and six months ended June 30, 2019, and was immaterial for the three and six months ended June 30, 2018.

LHFI by Credit Quality Indicator

LHFI by credit quality indicator are presented in the following tables:



	Commercial Loans
	C&I				CRE				Commercial Construction
(Dollars in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Risk rating:
Pass		$70,532		$69,095		$8,526		$7,165		$2,311		$2,459
Criticized accruing	2,181		1,885		127		98		54		79
Criticized nonaccruing	258		157		2		2		—		—
Total		$72,971		$71,137		$8,655		$7,265		$2,365		$2,538



	Consumer Loans ¹
	Residential Mortgages - Nonguaranteed				Residential Home Equity Products				Residential Construction
(Dollars in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Current FICO score range:
700 and above		$25,895		$25,764		$7,573		$8,060		$125		$151
620 - 699	2,278		2,367		952		1,015		26		27
Below 620 ²	621		705		377		393		5		6
Total		$28,794		$28,836		$8,902		$9,468		$156		$184



	Other Direct				Indirect				Credit Cards
(Dollars in millions)	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Current FICO score range:
700 and above		$10,220		$9,296		$10,506		$9,315		$1,147		$1,142
620 - 699	1,428		1,175		2,326		2,395		416		420
Below 620 ²	169		144		766		709		127		127
Total		$11,817		$10,615		$13,598		$12,419		$1,690		$1,689

¹Excludes $7.2 billion of guaranteed student loans at both June 30, 2019 and December 31, 2018, and $439 million and $459 million of guaranteed residential mortgages at June 30, 2019 and December 31, 2018, respectively, for which there was nominal risk of principal loss due to the government guarantee.

² For substantially all loans with refreshed FICO scores below 620, the borrower’s FICO score at the time of origination exceeded 620 but has since deteriorated as the loan has seasoned.

Payment Status for the LHFI Portfolio

The LHFI portfolio by payment status is presented in the following tables:



	June 30, 2019
	Accruing
(Dollars in millions)	Current		30-89 Days Past Due		90+ Days Past Due		Nonaccruing ¹			Total
Commercial loans:
C&I		$72,650		$49		$14		$258			$72,971
CRE	8,650		3		—		2			8,655
Commercial construction	2,365		—		—		—			2,365
Total commercial LHFI	83,665		52		14		260			83,991
Consumer loans:
Residential mortgages - guaranteed	125		25		289		—		³	439
Residential mortgages - nonguaranteed ²	28,589		53		8		144			28,794
Residential home equity products	8,731		62		—		109			8,902
Residential construction	147		1		—		8			156
Guaranteed student	5,498		562		1,142		—		³	7,202
Other direct	11,753		50		4		10			11,817
Indirect	13,493		99		1		5			13,598
Credit cards	1,655		17		18		—			1,690
Total consumer LHFI	69,991		869		1,462		276			72,598
Total LHFI		$153,656		$921		$1,476		$536			$156,589

¹Includes nonaccruing LHFI past due 90 days or more of $301 million. Nonaccruing LHFI past due fewer than 90 days include nonaccrual LHFI modified in TDRs, performing second lien LHFI where the first lien loan is nonperforming, and certain energy-related commercial LHFI.

²Includes $127 million of LHFI measured at fair value, the majority of which were accruing current.

³Guaranteed LHFI are not placed on nonaccrual status regardless of delinquency because collection of principal and interest is reasonably assured by the government.



	December 31, 2018
	Accruing
(Dollars in millions)	Current		30-89 Days Past Due		90+ Days Past Due		Nonaccruing ¹			Total
Commercial loans:
C&I		$70,901		$64		$15		$157			$71,137
CRE	7,259		3		1		2			7,265
Commercial construction	2,538		—		—		—			2,538
Total commercial LHFI	80,698		67		16		159			80,940
Consumer loans:
Residential mortgages - guaranteed	125		39		295		—		³	459
Residential mortgages - nonguaranteed ²	28,552		70		10		204			28,836
Residential home equity products	9,268		62		—		138			9,468
Residential construction	170		3		—		11			184
Guaranteed student	5,236		685		1,308		—		³	7,229
Other direct	10,559		45		4		7			10,615
Indirect	12,286		125		1		7			12,419
Credit cards	1,654		17		18		—			1,689
Total consumer LHFI	67,850		1,046		1,636		367			70,899
Total LHFI		$148,548		$1,113		$1,652		$526			$151,839

¹Includes nonaccruing LHFI past due 90 days or more of $306 million. Nonaccruing LHFI past due fewer than 90 days include nonaccrual LHFI modified in TDRs, performing second lien LHFI where the first lien loan is nonperforming, and certain energy-related commercial LHFI.

²Includes $163 million of LHFI measured at fair value, the majority of which were accruing current.

³Guaranteed LHFI are not placed on nonaccrual status regardless of delinquency because collection of principal and interest is reasonably assured by the government.

LHFI Considered Impaired



	June 30, 2019						December 31, 2018
(Dollars in millions)	Unpaid Principal Balance		Carrying¹ Value		Related ALLL		Unpaid Principal Balance		Carrying¹ Value		Related ALLL
Impaired LHFI with no ALLL recorded:
Commercial loans:
C&I		$73		$69		$—		$132		$79		$—
CRE	—		—		—		10		—		—
Total commercial LHFI with no ALLL recorded	73		69		—		142		79		—
Consumer loans:
Residential mortgages - nonguaranteed	378		300		—		501		397		—
Residential construction	7		4		—		12		7		—
Total consumer LHFI with no ALLL recorded	385		304		—		513		404		—

Impaired LHFI with an ALLL recorded:
Commercial loans:
C&I	253		233		49		81		70		13
Total commercial LHFI with an ALLL recorded	253		233		49		81		70		13
Consumer loans:
Residential mortgages - nonguaranteed	580		580		58		1,006		984		96
Residential home equity products	785		753		46		849		799		44
Residential construction	72		70		5		79		76		6
Other direct	57		57		1		57		57		1
Indirect	134		133		4		133		133		5
Credit cards	11		11		2		30		9		2
Total consumer LHFI with an ALLL recorded	1,639		1,604		116		2,154		2,058		154
Total impaired LHFI		$2,350		$2,210		$165		$2,890		$2,611		$167

¹Carrying value reflects charge-offs that have been recognized plus other amounts that have been applied to adjust the net book balance.

Included in the impaired LHFI carrying values above at June 30, 2019 and December 31, 2018 were $1.8 billion and $2.3 billion, respectively, of accruing TDRs held for investment, of which 97% were current. See Note 1, “Significant Accounting

Policies,” to the Company's 2018 Annual Report on Form 10-K, for further information regarding the Company’s loan impairment policy.



	Three Months Ended June 30								Six Months Ended June 30
	2019				2018				2019				2018
(Dollars in millions)	Average Carrying Value		Interest ¹ Income Recognized		Average Carrying Value		Interest ¹ Income Recognized		Average Carrying Value		Interest¹ Income Recognized		Average Carrying Value		Interest¹ Income Recognized
Impaired LHFI with no ALLL recorded:
Commercial loans:
C&I		$70		$1		$46		$1		$69		$2		$47		$1
CRE	—		—		42		—		—		—		44		—
Total commercial LHFI with no ALLL recorded	70		1		88		1		69		2		91		1
Consumer loans:
Residential mortgages - nonguaranteed	301		4		383		4		303		8		378		7
Residential construction	4		—		7		—		4		—		7		—
Total consumer LHFI with no ALLL recorded	305		4		390		4		307		8		385		7

Impaired LHFI with an ALLL recorded:
Commercial loans:
C&I	237		1		184		1		237		2		185		2
Total commercial LHFI with an ALLL recorded	237		1		184		1		237		2		185		2
Consumer loans:
Residential mortgages - nonguaranteed	583		8		1,053		13		584		20		1,064		26
Residential home equity products	755		9		849		9		760		17		854		18
Residential construction	71		1		84		1		71		2		85		3
Other direct	57		1		58		1		57		2		58		2
Indirect	137		2		133		2		141		3		137		3
Credit cards	11		—		8		—		10		1		7		—
Total consumer LHFI with an ALLL recorded	1,614		21		2,185		26		1,623		45		2,205		52
Total impaired LHFI		$2,226		$27		$2,847		$32		$2,236		$57		$2,866		$62

¹Of the interest income recognized during the three and six months ended June 30, 2019 and 2018, cash basis interest income was immaterial.

Nonperforming Assets

NPAs are presented in the following table:



(Dollars in millions)	June 30, 2019		December 31, 2018
NPAs:
Commercial NPLs:
C&I		$258		$157
CRE	2		2
Consumer NPLs:
Residential mortgages - nonguaranteed	144		204
Residential home equity products	109		138
Residential construction	8		11
Other direct	10		7
Indirect	5		7
Total nonaccrual LHFI/NPLs ¹	536		526
OREO ²	55		54
Other repossessed assets	7		9
Total NPAs		$598		$589

¹ Nonaccruing restructured LHFI are included in total nonaccrual LHFI/NPLs.

² Does not include foreclosed real estate related to loans insured by the FHA or guaranteed by the VA. Proceeds due from the FHA and the VA are recorded as a receivable in Other assets in the Consolidated Balance Sheets until the property is conveyed and the funds are received. The receivable related to proceeds due from the FHA and the VA totaled $51 million and $50 million at June 30, 2019 and December 31, 2018, respectively.

TDR Modifications



	Three Months Ended June 30, 2019 ¹
(Dollars in millions)	Number of Loans Modified	Rate Modification		Term Extension and/or Other Concessions		Total
Commercial loans:
C&I	22		$—		$2		$2
Consumer loans:
Residential mortgages - nonguaranteed	27	1		2		3
Residential home equity products	77	—		5		5
Other direct	268	—		5		5
Indirect	553	—		14		14
Credit cards	555	3		—		3
Total TDR additions	1,502		$4		$28		$32

¹Includes loans modified under the terms of a TDR that were charged-off during the period.



	Six Months Ended June 30, 2019 ¹
(Dollars in millions)	Number of Loans Modified	Rate Modification		Term Extension and/or Other Concessions		Total
Commercial loans:
C&I	56		$1		$5		$6
Consumer loans:
Residential mortgages - nonguaranteed	58	3		5		8
Residential home equity products	161	2		10		12
Other direct	408	—		7		7
Indirect	1,121	—		29		29
Credit cards	994	5		—		5
Total TDR additions	2,798		$11		$56		$67

¹Includes loans modified under the terms of a TDR that were charged-off during the period.



	Three Months Ended June 30, 2018 ¹
(Dollars in millions)	Number of Loans Modified	Rate Modification		Term Extension and/or Other Concessions		Total
Commercial loans:
C&I	29		$—		$29		$29
Consumer loans:
Residential mortgages - nonguaranteed	159	8		32		40
Residential home equity products	144	—		12		12
Residential construction	3	—		—		—
Other direct	214	—		3		3
Indirect	617	—		16		16
Credit cards	426	2		—		2
Total TDR additions	1,592		$10		$92		$102

¹Includes loans modified under the terms of a TDR that were charged-off during the period.



	Six Months Ended June 30, 2018 ¹
(Dollars in millions)	Number of Loans Modified	Rate Modification		Term Extension and/or Other Concessions		Total
Commercial loans:
C&I	75		$—		$84		$84
Consumer loans:
Residential mortgages - nonguaranteed	219	17		38		55
Residential home equity products	280	—		24		24
Residential construction	4	—		—		—
Other direct	328	—		5		5
Indirect	1,395	—		35		35
Credit cards	734	3		—		3
Total TDR additions	3,035		$20		$186		$206

¹Includes loans modified under the terms of a TDR that were charged-off during the period.