Asset Quality (Tables)
|
9 Months Ended |
Sep. 30, 2018 |
|---|
| Receivables [Abstract] |
|
| Financing Receivable Credit Quality Indicators |
Commercial Credit Exposure — Excluding PCICredit Risk Profile by Creditworthiness Category (a), (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | RE — Commercial | RE — Construction | Commercial lease | Total | in millions | September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| RATING | 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| Pass | $ | 43,052 |
| $ | 39,833 |
| $ | 14,016 |
| $ | 13,328 |
| $ | 1,679 |
| $ | 1,894 |
| $ | 4,405 |
| $ | 4,730 |
| $ | 63,152 |
| $ | 59,785 |
| Criticized (Accruing) | 1,691 |
| 1,790 |
| 398 |
| 482 |
| 79 |
| 38 |
| 55 |
| 90 |
| 2,223 |
| 2,400 |
| Criticized (Nonaccruing) | 226 |
| 153 |
| 98 |
| 30 |
| 2 |
| 2 |
| 10 |
| 6 |
| 336 |
| 191 |
| Total | $ | 44,969 |
| $ | 41,776 |
| $ | 14,512 |
| $ | 13,840 |
| $ | 1,760 |
| $ | 1,934 |
| $ | 4,470 |
| $ | 4,826 |
| $ | 65,711 |
| $ | 62,376 |
| | | | | | | | | | | |
| | (a) | Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated. |
| | (b) | The term criticized refers to those loans that are internally classified by Key as special mention or worse, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not classified as criticized. |
Consumer Credit Exposure — Excluding PCI Non-PCI Loans by Refreshed FICO Score (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential — Prime | Consumer direct loans | Credit cards | Consumer indirect loans | Total | in millions | September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| FICO SCORE | 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 750 and above | $ | 10,040 |
| $ | 10,226 |
| $ | 551 |
| $ | 519 |
| $ | 485 |
| $ | 477 |
| $ | 1,620 |
| $ | 1,472 |
| $ | 12,696 |
| $ | 12,694 |
| 660 to 749 | 4,850 |
| 5,181 |
| 701 |
| 690 |
| 501 |
| 508 |
| 1,315 |
| 1,184 |
| 7,367 |
| 7,563 |
| Less than 660 | 1,384 |
| 1,519 |
| 211 |
| 225 |
| 112 |
| 121 |
| 514 |
| 529 |
| 2,221 |
| 2,394 |
| No Score | 220 |
| 208 |
| 341 |
| 356 |
| — |
| — |
| 106 |
| 76 |
| 667 |
| 640 |
| Total | $ | 16,494 |
| $ | 17,134 |
| $ | 1,804 |
| $ | 1,790 |
| $ | 1,098 |
| $ | 1,106 |
| $ | 3,555 |
| $ | 3,261 |
| $ | 22,951 |
| $ | 23,291 |
| | | | | | | | | | | |
| | (a) | Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the above table at the dates indicated. |
Commercial Credit Exposure — PCI Credit Risk Profile by Creditworthiness Category (a), (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and Industrial | RE — Commercial | RE — Construction | Commercial Lease | Total | in millions | September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| RATING | 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| Pass | $ | 23 |
| $ | 41 |
| $ | 134 |
| $ | 153 |
| $ | 3 |
| $ | 26 |
| — |
| — |
| $ | 160 |
| $ | 220 |
| Criticized | 31 |
| 42 |
| 70 |
| 95 |
| — |
| — |
| — |
| — |
| 101 |
| 137 |
| Total | $ | 54 |
| $ | 83 |
| $ | 204 |
| $ | 248 |
| $ | 3 |
| $ | 26 |
| — |
| — |
| $ | 261 |
| $ | 357 |
| | | | | | | | | | | |
| | (a) | Credit quality indicators are updated on an ongoing basis and reflect credit quality information as of the dates indicated. |
| | (b) | The term “criticized” refers to those loans that are internally classified by Key as special mention or worse, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not classified as criticized. |
Consumer Credit Exposure — PCI PCI Loans by Refreshed FICO Score (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential — Prime | Consumer direct loans | Credit cards | Consumer indirect loans | Total | in millions | September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| September 30, |
| December 31, |
| FICO SCORE | 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 2018 |
| 2017 |
| 750 and above | $ | 138 |
| $ | 149 |
| — |
| — |
| — |
| — |
| — |
| — |
| $ | 138 |
| $ | 149 |
| 660 to 749 | 97 |
| 117 |
| $ | 1 |
| $ | 2 |
| — |
| — |
| — |
| — |
| 98 |
| 119 |
| Less than 660 | 99 |
| 105 |
| 2 |
| 2 |
| — |
| — |
| — |
| — |
| 101 |
| 107 |
| No Score | 8 |
| 6 |
| — |
| — |
| — |
| — |
| — |
| — |
| 8 |
| 6 |
| Total | $ | 342 |
| $ | 377 |
| $ | 3 |
| $ | 4 |
| — |
| — |
| — |
| — |
| $ | 345 |
| $ | 381 |
| | | | | | | | | | | |
| | (a) | Borrower FICO scores provide information about the credit quality of our consumer loan portfolio as they provide an indication as to the likelihood that a debtor will repay its debts. The scores are obtained from a nationally recognized consumer rating agency and are presented in the above table at the dates indicated. |
|
| Past Due Loans Including Current Loans |
The following aging analysis of past due and current loans as of September 30, 2018, and December 31, 2017, provides further information regarding Key’s credit exposure.
Aging Analysis of Loan Portfolio (a) | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2018 | Current | 30-59 Days Past Due (b) | 60-89 Days Past Due (b) | 90 and Greater Days Past Due (b) | Non-performing Loans | Total Past Due and Non-performing Loans | Purchased Credit Impaired | Total Loans (c), (d) | in millions | LOAN TYPE | | | | | | | | | Commercial and industrial | $ | 44,561 |
| $ | 74 |
| $ | 83 |
| $ | 24 |
| $ | 227 |
| $ | 408 |
| $ | 54 |
| $ | 45,023 |
| Commercial real estate: | | | | | | | | | Commercial mortgage | 14,347 |
| 24 |
| 20 |
| 23 |
| 98 |
| 165 |
| 204 |
| 14,716 |
| Construction | 1,715 |
| 20 |
| 14 |
| 9 |
| 2 |
| 45 |
| 3 |
| 1,763 |
| Total commercial real estate loans | 16,062 |
| 44 |
| 34 |
| 32 |
| 100 |
| 210 |
| 207 |
| 16,479 |
| Commercial lease financing | 4,449 |
| 9 |
| 1 |
| 1 |
| 10 |
| 21 |
| — |
| 4,470 |
| Total commercial loans | $ | 65,072 |
| $ | 127 |
| $ | 118 |
| $ | 57 |
| $ | 337 |
| $ | 639 |
| $ | 261 |
| $ | 65,972 |
| Real estate — residential mortgage | $ | 5,094 |
| $ | 13 |
| $ | 3 |
| $ | 2 |
| $ | 62 |
| $ | 80 |
| $ | 323 |
| $ | 5,497 |
| Home equity loans | 11,044 |
| 36 |
| 11 |
| 8 |
| 221 |
| 276 |
| 19 |
| 11,339 |
| Consumer direct loans | 1,779 |
| 9 |
| 5 |
| 7 |
| 4 |
| 25 |
| 3 |
| 1,807 |
| Credit cards | 1,075 |
| 6 |
| 5 |
| 10 |
| 2 |
| 23 |
| — |
| 1,098 |
| Consumer indirect loans | 3,498 |
| 29 |
| 6 |
| 3 |
| 19 |
| 57 |
| — |
| 3,555 |
| Total consumer loans | $ | 22,490 |
| $ | 93 |
| $ | 30 |
| $ | 30 |
| $ | 308 |
| $ | 461 |
| $ | 345 |
| $ | 23,296 |
| Total loans | $ | 87,562 |
| $ | 220 |
| $ | 148 |
| $ | 87 |
| $ | 645 |
| $ | 1,100 |
| $ | 606 |
| $ | 89,268 |
| | | | | | | | | |
| | (a) | Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. |
| | (b) | Past due loan amounts exclude PCI, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans. |
| | (c) | Net of unearned income, net deferred loan fees and costs, and unamortized discounts and premiums. |
| | (d) | Future accretable yield related to PCI loans is not included in the analysis of the loan portfolio. |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2017 | Current | 30-59 Days Past Due (b) | 60-89 Days Past Due (b) | 90 and Greater Days Past Due (b) | Non-performing Loans | Total Past Due and Non-performing Loans | Purchased Credit Impaired | Total Loans (c), (d) | in millions | LOAN TYPE | | | | | | | | | Commercial and industrial | $ | 41,444 |
| $ | 111 |
| $ | 34 |
| $ | 34 |
| $ | 153 |
| $ | 332 |
| 83 |
| $ | 41,859 |
| Commercial real estate: | | | | | | | | | Commercial mortgage | 13,750 |
| 26 |
| 13 |
| 21 |
| 30 |
| 90 |
| 248 |
| 14,088 |
| Construction | 1,919 |
| 4 |
| 9 |
| — |
| 2 |
| 15 |
| 26 |
| 1,960 |
| Total commercial real estate loans | 15,669 |
| 30 |
| 22 |
| 21 |
| 32 |
| 105 |
| 274 |
| 16,048 |
| Commercial lease financing | 4,791 |
| 23 |
| 4 |
| 2 |
| 6 |
| 35 |
| — |
| 4,826 |
| Total commercial loans | $ | 61,904 |
| $ | 164 |
| $ | 60 |
| $ | 57 |
| $ | 191 |
| $ | 472 |
| 357 |
| $ | 62,733 |
| Real estate — residential mortgage | $ | 5,043 |
| $ | 16 |
| $ | 7 |
| $ | 4 |
| $ | 58 |
| $ | 85 |
| $ | 355 |
| $ | 5,483 |
| Home equity loans | 11,721 |
| 32 |
| 15 |
| 9 |
| 229 |
| 285 |
| 22 |
| 12,028 |
| Consumer direct loans | 1,768 |
| 9 |
| 4 |
| 5 |
| 4 |
| 22 |
| 4 |
| 1,794 |
| Credit cards | 1,081 |
| 7 |
| 5 |
| 11 |
| 2 |
| 25 |
| — |
| 1,106 |
| Consumer indirect loans | 3,199 |
| 33 |
| 7 |
| 3 |
| 19 |
| 62 |
| — |
| 3,261 |
| Total consumer loans | $ | 22,812 |
| $ | 97 |
| $ | 38 |
| $ | 32 |
| $ | 312 |
| $ | 479 |
| $ | 381 |
| $ | 23,672 |
| Total loans | $ | 84,716 |
| $ | 261 |
| $ | 98 |
| $ | 89 |
| $ | 503 |
| $ | 951 |
| $ | 738 |
| $ | 86,405 |
| | | | | | | | | |
| | (a) | Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. |
| | (b) | Past due loan amounts exclude PCI, even if contractually past due (or if we do not expect to collect principal or interest in full based on the original contractual terms), as we are currently accreting income over the remaining term of the loans. |
| | (c) | Net of unearned income, net deferred loan fees and costs, and unamortized discounts and premiums. |
| | (d) | Future accretable yield related to purchased credit impaired loans is not included in the analysis of the loan portfolio. |
|
| Breakdown of Individually Impaired Loans |
The following tables set forth a further breakdown of individually impaired loans as of September 30, 2018, and December 31, 2017:
| | | | | | | | | | | | | | | | | | | | | | September 30, 2018 | | December 31, 2017 | | Recorded Investment (a) | Unpaid Principal Balance (b) | Specific Allowance | | Recorded Investment (a) | Unpaid Principal Balance (b) | Specific Allowance | in millions | With no related allowance recorded: | | | | | | | | Commercial and industrial | $ | 187 |
| $ | 255 |
| — |
| | $ | 126 |
| $ | 153 |
| — |
| Commercial real estate: | | | | | | | | Commercial mortgage | 11 |
| 15 |
| — |
| | 12 |
| 18 |
| — |
| Total commercial real estate loans | 11 |
| 15 |
| — |
| | 12 |
| 18 |
| — |
| Total commercial loans | 198 |
| 270 |
| — |
| | 138 |
| 171 |
| — |
| Real estate — residential mortgage | 15 |
| 22 |
| — |
| | 17 |
| 17 |
| — |
| Home equity loans | 50 |
| 57 |
| — |
| | 56 |
| 56 |
| — |
| Consumer Direct | — |
| 1 |
| — |
| | — |
| — |
| — |
| Consumer indirect loans | 2 |
| 4 |
| — |
| | 2 |
| 2 |
| — |
| Total consumer loans | 67 |
| 84 |
| — |
| | 75 |
| 75 |
| — |
| Total loans with no related allowance recorded | 265 |
| 354 |
| — |
| | 213 |
| 246 |
| — |
| With an allowance recorded: | | | | | | | | Commercial and industrial | 45 |
| 48 |
| $ | 5 |
| | 10 |
| 28 |
| $ | 6 |
| Commercial real estate: | | | | | | | | Commercial mortgage | 65 |
| 66 |
| 11 |
| | — |
| — |
| — |
| Total commercial real estate loans | 65 |
| 66 |
| 11 |
| | — |
| — |
| — |
| Total commercial loans | 110 |
| 114 |
| 16 |
| | 10 |
| 28 |
| 6 |
| Real estate — residential mortgage | 34 |
| 52 |
| 4 |
| | 32 |
| 32 |
| 5 |
| Home equity loans | 77 |
| 84 |
| 7 |
| | 61 |
| 61 |
| 9 |
| Consumer direct loans | 4 |
| 4 |
| — |
| | 4 |
| 4 |
| — |
| Credit cards | 3 |
| 3 |
| — |
| | 2 |
| 2 |
| — |
| Consumer indirect loans | 33 |
| 33 |
| 3 |
| | 32 |
| 32 |
| 3 |
| Total consumer loans | 151 |
| 176 |
| 14 |
| | 131 |
| 131 |
| 17 |
| Total loans with an allowance recorded | 261 |
| 290 |
| 30 |
| | 141 |
| 159 |
| 23 |
| Total | $ | 526 |
| $ | 644 |
| $ | 30 |
| | $ | 354 |
| $ | 405 |
| $ | 23 |
| | | | | | | | |
| | (a) | The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our Consolidated Balance Sheet. |
| | (b) | The Unpaid Principal Balance represents the customer’s legal obligation to us. |
The following table sets forth a further breakdown of the average individually impaired loans reported by Key: | | | | | | | | | | | | | | Average Recorded Investment (a) | Three Months Ended September 30, | Nine Months Ended September 30, | in millions | 2018 |
| 2017 |
| 2018 |
| 2017 |
| Commercial and industrial | $ | 209 |
| $ | 162 |
| $ | 184 |
| $ | 221 |
| Commercial real estate: | | | | | Commercial mortgage | 48 |
| 14 |
| 44 |
| 8 |
| Total commercial real estate loans | 48 |
| 14 |
| 44 |
| 8 |
| Total commercial loans | 257 |
| 176 |
| 228 |
| 229 |
| Real estate — residential mortgage | 49 |
| 49 |
| 49 |
| 50 |
| Home equity loans | 126 |
| 118 |
| 122 |
| 121 |
| Consumer direct loans | 4 |
| 4 |
| 4 |
| 3 |
| Credit cards | 3 |
| 2 |
| 3 |
| 3 |
| Consumer indirect loans | 35 |
| 33 |
| 34 |
| 32 |
| Total consumer loans | 217 |
| 206 |
| 212 |
| 209 |
| Total | $ | 474 |
| $ | 382 |
| $ | 440 |
| $ | 438 |
| | | | | |
(a) The Recorded Investment represents the face amount of the loan increased or decreased by applicable accrued interest, net deferred loan fees and costs, and unamortized premium or discount, and reflects direct charge-offs. This amount is a component of total loans on our Consolidated Balance Sheet.
|
| Post-Modification Outstanding Recorded Investment by Concession Type for Our Commercial Accruing and Nonaccruing TDRs |
The following table shows the post-modification outstanding recorded investment by concession type for our commercial and consumer accruing and nonaccruing TDRs that occurred during the periods indicated: | | | | | | | | | | | | | | | Three Months Ended September 30, | Nine Months Ended September 30, | in millions | 2018 | 2017 | 2018 | 2017 | Commercial loans: | | | | | Extension of Maturity Date | $ | 20 |
| $ | 7 |
| $ | 20 |
| $ | 24 |
| Payment or Covenant Modification/Deferment | 26 |
| — |
| 46 |
| 32 |
| Bankruptcy Plan Modification | — |
| — |
| 7 |
| 30 |
| Total | $ | 46 |
| $ | 7 |
| $ | 73 |
| $ | 86 |
| Consumer loans: | | | | | Interest rate reduction | $ | 4 |
| $ | 3 |
| $ | 22 |
| $ | 10 |
| Other | 10 |
| 8 |
| 29 |
| 21 |
| Total | $ | 14 |
| $ | 11 |
| $ | 51 |
| $ | 31 |
| Total commercial and consumer TDRs | $ | 60 |
| $ | 18 |
| $ | 124 |
| $ | 117 |
|
|
| Summary Of Post-Modification Outstanding Recorded Investment, Accruing And Nonaccruing TDRs |
The following table summarizes the change in the post-modification outstanding recorded investment of our accruing and nonaccruing TDRs during the periods indicated: | | | | | | | | | | | | | | | Three Months Ended September 30, | Nine Months Ended September 30, | in millions | 2018 | 2017 | 2018 | 2017 | Balance at beginning of the period | $ | 347 |
| $ | 333 |
| $ | 317 |
| $ | 280 |
| Additions | 58 |
| 20 |
| 133 |
| 134 |
| Payments | (28 | ) | (36 | ) | (69 | ) | (83 | ) | Charge-offs | (11 | ) | (2 | ) | (15 | ) | (16 | ) | Balance at end of period (a) | $ | 366 |
| $ | 315 |
| $ | 366 |
| $ | 315 |
| | | | | |
|
| Breakdown of Nonperforming TDRs by Loans Category |
A further breakdown of TDRs included in nonperforming loans by loan category for the periods indicated are as follows: | | | | | | | | | | | | | | | | | | | | September 30, 2018 | | December 31, 2017 | | Number of Loans | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | | Number of Loans | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | dollars in millions | LOAN TYPE | | | | | | | | Nonperforming: | | | | | | | | Commercial and industrial | 30 |
| $ | 120 |
| $ | 101 |
| | 20 |
| $ | 109 |
| $ | 86 |
| Commercial real estate: | | | | | | | | Commercial mortgage | 6 |
| 14 |
| 10 |
| | 8 |
| 16 |
| 12 |
| Total commercial real estate loans | 6 |
| 14 |
| 10 |
| | 8 |
| 16 |
| 12 |
| Total commercial loans | 36 |
| 134 |
| 111 |
| | 28 |
| 125 |
| 98 |
| Real estate — residential mortgage | 257 |
| 18 |
| 18 |
| | 308 |
| 18 |
| 18 |
| Home equity loans | 1,233 |
| 72 |
| 66 |
| | 1,025 |
| 64 |
| 57 |
| Consumer direct loans | 137 |
| 2 |
| 2 |
| | 114 |
| 2 |
| 2 |
| Credit cards | 249 |
| 1 |
| 1 |
| | 322 |
| 2 |
| 1 |
| Consumer indirect loans | 973 |
| 17 |
| 13 |
| | 825 |
| 16 |
| 13 |
| Total consumer loans | 2,849 |
| 110 |
| 100 |
| | 2,594 |
| 102 |
| 91 |
| Total nonperforming TDRs | 2,885 |
| 244 |
| 211 |
| | 2,622 |
| 227 |
| 189 |
| Prior-year accruing:(a) | | | | | | | | Commercial and industrial | 18 |
| 53 |
| 37 |
| | 4 |
| 30 |
| 13 |
| Total commercial loans | 18 |
| 53 |
| 37 |
| | 4 |
| 30 |
| 13 |
| Real estate — residential mortgage | 508 |
| 37 |
| 31 |
| | 484 |
| 31 |
| 31 |
| Home equity loans | 1,305 |
| 77 |
| 61 |
| | 1,276 |
| 75 |
| 59 |
| Consumer direct loans | 81 |
| 4 |
| 2 |
| | 48 |
| 3 |
| 2 |
| Credit cards | 522 |
| 3 |
| 2 |
| | 430 |
| 1 |
| 1 |
| Consumer indirect loans | 512 |
| 34 |
| 22 |
| | 320 |
| 31 |
| 22 |
| Total consumer loans | 2,928 |
| 155 |
| 118 |
| | 2,558 |
| 141 |
| 115 |
| Total prior-year accruing TDRs | 2,946 |
| 208 |
| 155 |
| | 2,562 |
| 171 |
| 128 |
| Total TDRs | 5,831 |
| $ | 452 |
| $ | 366 |
| | 5,184 |
| $ | 398 |
| $ | 317 |
| | | | | | | | |
| | (a) | All TDRs that were restructured prior to January 1, 2018, and January 1, 2017, and are fully accruing. |
|
| Changes in Allowance for Loan and Lease Losses by Loan Category |
The changes in the ALLL by loan category for the periods indicated are as follows:
Three months ended September 30, 2018: | | | | | | | | | | | | | | | | | | in millions | June 30, 2018 | Provision | | Charge-offs | Recoveries | September 30, 2018 | Commercial and Industrial | $ | 542 |
| $ | 34 |
| | $ | (38 | ) | $ | 5 |
| $ | 543 |
| Commercial real estate: | | | | | | | Real estate — commercial mortgage | 139 |
| 9 |
| | (6 | ) | 1 |
| 143 |
| Real estate — construction | 28 |
| 3 |
| | — |
| — |
| 31 |
| Total commercial real estate loans | 167 |
| 12 |
| | (6 | ) | 1 |
| 174 |
| Commercial lease financing | 40 |
| (2 | ) | | (4 | ) | 3 |
| 37 |
| Total commercial loans | 749 |
| 44 |
| | (48 | ) | 9 |
| 754 |
| Real estate — residential mortgage | 10 |
| (1 | ) | | (2 | ) | 2 |
| 9 |
| Home equity loans | 37 |
| (2 | ) | | (4 | ) | 3 |
| 34 |
| Consumer direct loans | 26 |
| 9 |
| | (10 | ) | 1 |
| 26 |
| Credit cards | 46 |
| 7 |
| | (10 | ) | 2 |
| 45 |
| Consumer indirect loans | 19 |
| 3 |
| | (7 | ) | 4 |
| 19 |
| Total consumer loans | 138 |
| 16 |
| | (33 | ) | 12 |
| 133 |
| Total ALLL — continuing operations | 887 |
| 60 |
| (a) | (81 | ) | 21 |
| 887 |
| Discontinued operations | 14 |
| 3 |
| | (4 | ) | 1 |
| 14 |
| Total ALLL — including discontinued operations | $ | 901 |
| $ | 63 |
| | $ | (85 | ) | $ | 22 |
| $ | 901 |
| | | | | | | |
| | (a) | Excludes a provision for losses on lending-related commitments of $2 million. |
Three months ended September 30, 2017: | | | | | | | | | | | | | | | | | | in millions | June 30, 2017 | Provision | | Charge-offs | Recoveries | September 30, 2017 | Commercial and Industrial | $ | 528 |
| $ | 8 |
| | $ | (29 | ) | $ | 25 |
| $ | 532 |
| Commercial real estate: | | | | | | | Real estate — commercial mortgage | 144 |
| (1 | ) | | (6 | ) | 1 |
| 138 |
| Real estate — construction | 28 |
| 3 |
| | (2 | ) | — |
| 29 |
| Total commercial real estate loans | 172 |
| 2 |
| | (8 | ) | 1 |
| 167 |
| Commercial lease financing | 40 |
| 1 |
| | (1 | ) | 3 |
| 43 |
| Total commercial loans | 740 |
| 11 |
| | (38 | ) | 29 |
| 742 |
| Real estate — residential mortgage | 9 |
| (2 | ) | | — |
| 1 |
| 8 |
| Home equity loans | 42 |
| (1 | ) | | (6 | ) | 4 |
| 39 |
| Consumer direct loans | 25 |
| 10 |
| | (8 | ) | 1 |
| 28 |
| Credit cards | 44 |
| 10 |
| | (11 | ) | 1 |
| 44 |
| Consumer indirect loans | 10 |
| 14 |
| | (8 | ) | 3 |
| 19 |
| Total consumer loans | 130 |
| 31 |
| | (33 | ) | 10 |
| 138 |
| Total ALLL — continuing operations | 870 |
| 42 |
| (a) | (71 | ) | 39 |
| 880 |
| Discontinued operations | 21 |
| 5 |
| | (10 | ) | 2 |
| 18 |
| Total ALLL — including discontinued operations | $ | 891 |
| $ | 47 |
| | $ | (81 | ) | $ | 41 |
| $ | 898 |
| | | | | | | |
| | (a) | Excludes a provision for losses on lending-related commitments of $9 million. |
Nine months ended September 30, 2018: | | | | | | | | | | | | | | | | | | in millions | December 31, 2017 | Provision | | Charge-offs | Recoveries | September 30, 2018 | Commercial and Industrial | 529 |
| $ | 110 |
| | $ | (114 | ) | $ | 18 |
| $ | 543 |
| Commercial real estate: | | | | | | | Real estate — commercial mortgage | 133 |
| 17 |
| | (9 | ) | 2 |
| 143 |
| Real estate — construction | 30 |
| — |
| | — |
| 1 |
| 31 |
| Total commercial real estate loans | 163 |
| 17 |
| | (9 | ) | 3 |
| 174 |
| Commercial lease financing | 43 |
| (1 | ) | | (9 | ) | 4 |
| 37 |
| Total commercial loans | 735 |
| 126 |
| | (132 | ) | 25 |
| 754 |
| Real estate — residential mortgage | 7 |
| 3 |
| | (3 | ) | 2 |
| 9 |
| Home equity loans | 43 |
| (4 | ) | | (14 | ) | 9 |
| 34 |
| Consumer direct loans | 28 |
| 20 |
| | (27 | ) | 5 |
| 26 |
| Credit cards | 44 |
| 30 |
| | (34 | ) | 5 |
| 45 |
| Consumer indirect loans | 20 |
| 9 |
| | (22 | ) | 12 |
| 19 |
| Total consumer loans | 142 |
| 58 |
| | (100 | ) | 33 |
| 133 |
| Total ALLL — continuing operations | 877 |
| 184 |
| (a) | (232 | ) | 58 |
| 887 |
| Discontinued operations | 16 |
| 5 |
| | (11 | ) | 4 |
| 14 |
| Total ALLL — including discontinued operations | $ | 893 |
| $ | 189 |
| | $ | (243 | ) | $ | 62 |
| $ | 901 |
| | | | | | | |
| | (a) | Excludes a provision for losses on lending-related commitments of $3 million. |
Nine months ended September 30, 2017: | | | | | | | | | | | | | | | | | | in millions | December 31, 2016 | Provision | | Charge-offs | Recoveries | September 30, 2017 | Commercial and Industrial | $ | 508 |
| $ | 93 |
| | $ | (101 | ) | $ | 32 |
| $ | 532 |
| Commercial real estate: | | | | | | | Real estate — commercial mortgage | 144 |
| 2 |
| | (9 | ) | 1 |
| 138 |
| Real estate — construction | 22 |
| 8 |
| | (2 | ) | 1 |
| 29 |
| Total commercial real estate loans | 166 |
| 10 |
| | (11 | ) | 2 |
| 167 |
| Commercial lease financing | 42 |
| 5 |
| | (9 | ) | 5 |
| 43 |
| Total commercial loans | 716 |
| 108 |
| | (121 | ) | 39 |
| 742 |
| Real estate — residential mortgage | 17 |
| (11 | ) | | (2 | ) | 4 |
| 8 |
| Home equity loans | 54 |
| (4 | ) | | (23 | ) | 12 |
| 39 |
| Consumer direct loans | 24 |
| 26 |
| | (26 | ) | 4 |
| 28 |
| Credit cards | 38 |
| 36 |
| | (34 | ) | 4 |
| 44 |
| Consumer indirect loans | 9 |
| 23 |
| | (24 | ) | 11 |
| 19 |
| Total consumer loans | 142 |
| 70 |
| | (109 | ) | 35 |
| 138 |
| Total ALLL — continuing operations | 858 |
| 178 |
| (a) | (230 | ) | 74 |
| 880 |
| Discontinued operations | 24 |
| 8 |
| | (20 | ) | 6 |
| 18 |
| Total ALLL — including discontinued operations | $ | 882 |
| $ | 186 |
| | $ | (250 | ) | $ | 80 |
| $ | 898 |
| | | | | | | |
(a) Excludes a provision for losses on lending-related commitments of $2 million.
|
| Allowance for Loan and Lease Losses and Corresponding Loan Balances |
A breakdown of the individual and collective ALLL and the corresponding loan balances as of September 30, 2018, follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance | | Outstanding | September 30, 2018 | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Purchased Credit Impaired | | Loans | | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | | Purchased Credit Impaired | in millions | | | Commercial and industrial | $ | 5 |
| $ | 536 |
| $ | 2 |
| | $ | 45,023 |
| | $ | 232 |
| $ | 44,737 |
| | $ | 54 |
| Commercial real estate: | | | | | | | | | | | Commercial mortgage | 11 |
| 129 |
| 3 |
| | 14,716 |
| | 76 |
| 14,436 |
| | 204 |
| Construction | — |
| 31 |
| — |
| | 1,763 |
| | — |
| 1,760 |
| | 3 |
| Total commercial real estate loans | 11 |
| 160 |
| 3 |
| | 16,479 |
| | 76 |
| 16,196 |
| | 207 |
| Commercial lease financing | — |
| 37 |
| — |
| | 4,470 |
| | — |
| 4,470 |
| | — |
| Total commercial loans | 16 |
| 733 |
| 5 |
| | 65,972 |
| | 308 |
| 65,403 |
| | 261 |
| Real estate — residential mortgage | 4 |
| 5 |
| — |
| | 5,497 |
| | 49 |
| 5,125 |
| | 323 |
| Home equity loans | 7 |
| 26 |
| 1 |
| | 11,339 |
| | 127 |
| 11,193 |
| | 19 |
| Consumer direct loans | — |
| 26 |
| — |
| | 1,807 |
| | 4 |
| 1,800 |
| | 3 |
| Credit cards | — |
| 45 |
| — |
| | 1,098 |
| | 3 |
| 1,095 |
| | — |
| Consumer indirect loans | 3 |
| 16 |
| — |
| | 3,555 |
| | 35 |
| 3,520 |
| | — |
| Total consumer loans | 14 |
| 118 |
| 1 |
| | 23,296 |
| | 218 |
| 22,733 |
| | 345 |
| Total ALLL — continuing operations | 30 |
| 851 |
| 6 |
| | 89,268 |
| | 526 |
| 88,136 |
| | 606 |
| Discontinued operations | 2 |
| 12 |
| — |
| | 1,130 |
| (a) | 22 |
| 1,108 |
| (a) | — |
| Total ALLL — including discontinued operations | $ | 32 |
| $ | 863 |
| $ | 6 |
| | $ | 90,398 |
| | $ | 548 |
| $ | 89,244 |
| | $ | 606 |
| | | | | | | | | | | |
| | (a) | Amount includes $2 million of loans carried at fair value that are excluded from ALLL consideration. |
A breakdown of the individual and collective ALLL and the corresponding loan balances as of December 31, 2017, follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance | | Outstanding | December 31, 2017 | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Purchased Credit Impaired | | Loans | | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | | Purchased Credit Impaired | in millions | | | Commercial and Industrial | $ | 6 |
| $ | 520 |
| $ | 3 |
| | $ | 41,859 |
| | $ | 136 |
| $ | 41,640 |
| | $ | 83 |
| Commercial real estate: | | | | | | | | | | | Commercial mortgage | — |
| 131 |
| 2 |
| | 14,088 |
| | 12 |
| 13,828 |
| | 248 |
| Construction | — |
| 30 |
| — |
| | 1,960 |
| | — |
| 1,934 |
| | 26 |
| Total commercial real estate loans | — |
| 161 |
| 2 |
| | 16,048 |
| | 12 |
| 15,762 |
| | 274 |
| Commercial lease financing | — |
| 43 |
| — |
| | 4,826 |
| | — |
| 4,826 |
| | — |
| Total commercial loans | 6 |
| 724 |
| 5 |
| | 62,733 |
| | 148 |
| 62,228 |
| | 357 |
| Real estate — residential mortgage | 5 |
| 2 |
| — |
| | 5,483 |
| | 49 |
| 5,079 |
| | 355 |
| Home equity loans | 9 |
| 33 |
| 1 |
| | 12,028 |
| | 117 |
| 11,889 |
| | 22 |
| Consumer direct loans | — |
| 28 |
| — |
| | 1,794 |
| | 4 |
| 1,786 |
| | 4 |
| Credit cards | — |
| 44 |
| — |
| | 1,106 |
| | 2 |
| 1,104 |
| | — |
| Consumer indirect loans | 3 |
| 17 |
| — |
| | 3,261 |
| | 34 |
| 3,227 |
| | — |
| Total consumer loans | 17 |
| 124 |
| 1 |
| | 23,672 |
| | 206 |
| 23,085 |
| | 381 |
| Total ALLL — continuing operations | 23 |
| 848 |
| 6 |
| | 86,405 |
| | 354 |
| 85,313 |
| | 738 |
| Discontinued operations | 3 |
| 13 |
| — |
| | 1,314 |
| (a) | 21 |
| 1,293 |
| (a) | — |
| Total ALLL — including discontinued operations | $ | 26 |
| $ | 861 |
| $ | 6 |
| | $ | 87,719 |
| | $ | 375 |
| $ | 86,606 |
| | $ | 738 |
| | | | | | | | | | | |
| | (a) | Amount includes $2 million of loans carried at fair value that are excluded from ALLL consideration. |
|
| Changes in Liability for Credit Losses on Lending Related Commitments |
Changes in the liability for credit losses on unfunded lending-related commitments are summarized as follows: | | | | | | | | | | | | | | | Three months ended September 30, | Nine months ended September 30, | in millions | 2018 | 2017 | 2018 | 2017 | Balance at beginning of period | $ | 58 |
| $ | 48 |
| $ | 57 |
| $ | 55 |
| Provision (credit) for losses on lending-related commitments | 2 |
| 9 |
| 3 |
| 2 |
| Balance at end of period | $ | 60 |
| $ | 57 |
| $ | 60 |
| $ | 57 |
| | | | | |
|
| Schedule of Changes in Outstanding Unpaid Principal Balance, Carrying Amount, and Accretable Yield for PCI Loans |
The following tables present the roll-forward of the accretable yield and the beginning and ending outstanding unpaid principal balance and carrying amount of all PCI loans for the three and nine months ended September 30, 2018, and the twelve months ended December 31, 2017. | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2018 | | 2018 | in millions | Accretable Yield | Carrying Amount | Outstanding Unpaid Principal Balance | | Accretable Yield | Carrying Amount | Outstanding Unpaid Principal Balance | Balance at beginning of period | $ | 121 |
| $ | 622 |
| $ | 669 |
| | $ | 131 |
| $ | 738 |
| $ | 803 |
| Accretion | (10 | ) | | | | (33 | ) | | | Net reclassifications from nonaccretable to accretable | 13 |
| | | | 41 |
| | | Payments received, net | (3 | ) | | | | (18 | ) | | | Balance at end of period | $ | 121 |
| $ | 599 |
| $ | 642 |
| | $ | 121 |
| $ | 599 |
| $ | 642 |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, | | | | 2017 | in millions | | | | | Accretable Yield | Carrying Amount | Outstanding Unpaid Principal Balance | Balance at beginning of period | | | | | $ | 197 |
| $ | 865 |
| $ | 1,002 |
| Additions | | | | | (32 | ) | | | Accretion | | | | | (44 | ) | | | Net reclassifications from nonaccretable to accretable | | | | | 15 |
| | | Payments received, net | | | | | (4 | ) | | | Disposals | | | | | (1 | ) | | | Balance at end of period | | | | | $ | 131 |
| $ | 738 |
| $ | 803 |
| | | | | | | | |
|