Loans (Tables)

9 Months Ended

Sep. 30, 2019

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

Composition of Loan Portfolio

(Dollars in millions)	September 30, 2019		December 31, 2018
Commercial loans:
C&I 1		$73,374		$71,137
CRE	9,491		7,265
Commercial construction	2,142		2,538
Total commercial LHFI	85,007		80,940
Consumer loans:
Residential mortgages - guaranteed	457		459
Residential mortgages - nonguaranteed 2	28,810		28,836
Residential home equity products	8,696		9,468
Residential construction	144		184
Guaranteed student	7,146		7,229
Other direct	12,431		10,615
Indirect	14,060		12,419
Credit cards	1,704		1,689
Total consumer LHFI	73,448		70,899
LHFI		$158,455		$151,839
LHFS 3		$2,006		$1,468

¹ Includes $4.0 billion and $4.1 billion of sales-type, direct financing, and leveraged leases at September 30, 2019 and December 31, 2018, respectively. Includes $817 million and $796 million of installment loans at September 30, 2019 and December 31, 2018, respectively.

² Includes $124 million and $163 million measured at fair value at September 30, 2019 and December 31, 2018, respectively.

³ Includes $1.5 billion and $1.2 billion measured at fair value at September 30, 2019 and December 31, 2018, respectively.

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

LHFI Purchases, Sales, and Transfers
	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in millions)	2019		2018		2019		2018
Non-routine LHFI purchases 1, 2:
Consumer loans		$160		$101		$418		$101
Routine LHFI purchases 2, 3:
Consumer loans	517		545		1,433		1,568
LHFI sales 4, 5:
Commercial loans	171		14		387		87
Consumer loans	—		—		432		100
Transfers from:
LHFI to LHFS					812		449
LHFS to LHFI					17		23
LHFI to OREO					33		44

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

² Represents UPB of loans purchased.

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

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

⁵ The net gain on LHFI sales was $47 million for the nine months ended September 30, 2019, and was immaterial for the three months ended September 30, 2019 as well as the three and nine months ended September 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)	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Risk rating:
Pass		$70,739		$69,095		$9,410		$7,165		$2,082		$2,459
Criticized accruing	2,285		1,885		80		98		60		79
Criticized nonaccruing	350		157		1		2		—		—
Total		$73,374		$71,137		$9,491		$7,265		$2,142		$2,538

	Consumer Loans 1
	Residential Mortgages - Nonguaranteed				Residential Home Equity Products				Residential Construction
(Dollars in millions)	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Current FICO score range:
700 and above		$25,985		$25,764		$7,406		$8,060		$116		$151
620 - 699	2,219		2,367		929		1,015		22		27
Below 620 2	606		705		361		393		6		6
Total		$28,810		$28,836		$8,696		$9,468		$144		$184

	Other Direct				Indirect				Credit Cards
(Dollars in millions)	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Current FICO score range:
700 and above		$10,671		$9,296		$10,904		$9,315		$1,145		$1,142
620 - 699	1,543		1,175		2,367		2,395		423		420
Below 620 2	217		144		789		709		136		127
Total		$12,431		$10,615		$14,060		$12,419		$1,704		$1,689

¹ Excludes $7.1 billion and $7.2 billion of guaranteed student loans and $457 million and $459 million of guaranteed residential mortgages at September 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:

	September 30, 2019
	Accruing
(Dollars in millions)	Current		30-89 Days Past Due		90+ Days Past Due		Nonaccruing 1			Total
Commercial loans:
C&I		$72,955		$55		$14		$350			$73,374
CRE	9,486		3		1		1			9,491
Commercial construction	2,142		—		—		—			2,142
Total commercial LHFI	84,583		58		15		351			85,007
Consumer loans:
Residential mortgages - guaranteed	131		25		301		—		3	457
Residential mortgages - nonguaranteed 2	28,620		55		10		125			28,810
Residential home equity products	8,534		61		1		100			8,696
Residential construction	135		1		—		8			144
Guaranteed student	5,563		543		1,040		—		3	7,146
Other direct	12,362		53		5		11			12,431
Indirect	13,951		103		1		5			14,060
Credit cards	1,666		18		20		—			1,704
Total consumer LHFI	70,962		859		1,378		249			73,448
Total LHFI		$155,545		$917		$1,393		$600			$158,455

¹ Includes 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.

² Includes $124 million of LHFI measured at fair value, the majority of which were accruing current.

³ Guaranteed 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

¹ Includes 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.

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

³ Guaranteed 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

	September 30, 2019						December 31, 2018
(Dollars in millions)	Unpaid Principal Balance		Carrying 1 Value		Related ALLL		Unpaid Principal Balance		Carrying 1 Value		Related ALLL
Impaired LHFI with no ALLL recorded:
Commercial loans:
C&I		$48		$39		$—		$132		$79		$—
CRE	—		—		—		10		—		—
Total commercial LHFI with no ALLL recorded	48		39		—		142		79		—
Consumer loans:
Residential mortgages - nonguaranteed	354		283		—		501		397		—
Residential construction	7		4		—		12		7		—
Total consumer LHFI with no ALLL recorded	361		287		—		513		404		—
Impaired LHFI with an ALLL recorded:
Commercial loans:
C&I	311		300		71		81		70		13
Total commercial LHFI with an ALLL recorded	311		300		71		81		70		13
Consumer loans:
Residential mortgages - nonguaranteed	561		561		54		1,006		984		96
Residential home equity products	753		721		41		849		799		44
Residential construction	70		68		5		79		76		6
Other direct	57		57		1		57		57		1
Indirect	136		135		4		133		133		5
Credit cards	12		12		3		30		9		2
Total consumer LHFI with an ALLL recorded	1,589		1,554		108		2,154		2,058		154
Total impaired LHFI		$2,309		$2,180		$179		$2,890		$2,611		$167

¹ Carrying 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 September 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. This reduction was driven by our sale of $465 million of accruing TDRs in the second

quarter of 2019 for a net gain on sale of $44 million. 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 September 30								Nine Months Ended September 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		Interest 1 Income Recognized		Average Carrying Value		Interest 1 Income Recognized
Impaired LHFI with no ALLL recorded:
Commercial loans:
C&I		$40		$—		$44		$—		$41		$—		$45		$1
CRE	—		—		20		—		—		—		20		—
Total commercial LHFI with no ALLL recorded	40		—		64		—		41		—		65		1
Consumer loans:
Residential mortgages - nonguaranteed	284		4		381		4		287		12		386		11
Residential construction	4		—		7		—		4		—		7		—
Total consumer LHFI with no ALLL recorded	288		4		388		4		291		12		393		11
Impaired LHFI with an ALLL recorded:
Commercial loans:
C&I	303		2		177		—		305		8		176		3
CRE	—		—		21		—		—		—		22		—
Total commercial LHFI with an ALLL recorded	303		2		198		—		305		8		198		3
Consumer loans:
Residential mortgages - nonguaranteed	562		8		1,027		13		565		28		1,031		39
Residential home equity products	723		8		824		9		732		25		833		27
Residential construction	68		1		80		1		69		3		82		4
Other direct	58		1		57		1		58		3		58		3
Indirect	139		2		134		2		147		5		141		5
Credit cards	12		—		8		—		11		1		8		1
Total consumer LHFI with an ALLL recorded	1,562		20		2,130		26		1,582		65		2,153		79
Total impaired LHFI		$2,193		$26		$2,780		$30		$2,219		$85		$2,809		$94

¹ Of the interest income recognized during the three and nine months ended September 30, 2019, cash basis interest income was immaterial and $9 million, respectively.

Of the interest income recognized during the three and nine months ended September 30, 2018, cash basis interest income was immaterial.

Nonperforming Assets

NPAs are presented in the following table:

(Dollars in millions)	September 30, 2019		December 31, 2018
NPAs:
Commercial NPLs:
C&I		$350		$157
CRE	1		2
Consumer NPLs:
Residential mortgages - nonguaranteed	125		204
Residential home equity products	100		138
Residential construction	8		11
Other direct	11		7
Indirect	5		7
Total nonaccrual LHFI/NPLs 1	600		526
OREO 2	52		54
Other repossessed assets	8		9
Nonperforming LHFS	1		—
Total NPAs		$661		$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 $43 million and $50 million at September 30, 2019 and December 31, 2018, respectively.

TDR Modifications

	Three Months Ended September 30, 2019 1
(Dollars in millions)	Number of Loans Modified	Rate Modification		Term Extension and/or Other Concessions		Total
Commercial loans:
C&I	32		$—		$12		$12
Consumer loans:
Residential mortgages - nonguaranteed	30	2		2		4
Residential home equity products	54	—		3		3
Other direct	234	—		3		3
Indirect	634	—		16		16
Credit cards	537	3		—		3
Total TDR additions	1,521		$5		$36		$41

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

	Nine Months Ended September 30, 2019 1
(Dollars in millions)	Number of Loans Modified	Rate Modification		Term Extension and/or Other Concessions		Total
Commercial loans:
C&I	88		$1		$17		$18
Consumer loans:
Residential mortgages - nonguaranteed	88	4		7		11
Residential home equity products	215	2		13		15
Other direct	642	—		10		10
Indirect	1,755	—		42		42
Credit cards	1,531	7		—		7
Total TDR additions	4,319		$14		$89		$103

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

	Three Months Ended September 30, 2018 1
(Dollars in millions)	Number of Loans Modified	Rate Modification		Term Extension and/or Other Concessions		Total
Commercial loans:
C&I	47		$—		$16		$16
Consumer loans:
Residential mortgages - nonguaranteed	48	3		7		10
Residential home equity products	130	1		11		12
Other direct	141	—		2		2
Indirect	559	—		14		14
Credit cards	345	1		—		1
Total TDR additions	1,270		$5		$50		$55

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

	Nine Months Ended September 30, 2018 1
(Dollars in millions)	Number of Loans Modified	Rate Modification		Term Extension and/or Other Concessions		Total
Commercial loans:
C&I	122		$—		$75		$75
Consumer loans:
Residential mortgages - nonguaranteed	267	18		46		64
Residential home equity products	410	1		34		35
Residential construction	4	—		—		—
Other direct	469	—		6		6
Indirect	1,954	—		46		46
Credit cards	1,079	4		—		4
Total TDR additions	4,305		$23		$207		$230

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