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Loans and ACL
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Loans and ACL
Loans and ACL

The following tables present loans and leases HFI by aging category:
 
 
Accruing
 
 
 
 
December 31, 2018
(Dollars in millions)
 
Current
 
30-89 Days Past Due
 
90 Days Or More Past Due
 
Nonperforming
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
61,701

 
$
34

 
$
—

 
$
200

 
$
61,935

CRE
 
20,990

 
5

 
—

 
65

 
21,060

Lease financing
 
2,014

 
1

 
—

 
3

 
2,018

Retail:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
30,413

 
456

 
405

 
119

 
31,393

Direct
 
11,463

 
61

 
7

 
53

 
11,584

Indirect
 
16,901

 
436

 
6

 
82

 
17,425

Revolving credit
 
3,090

 
28

 
14

 
—

 
3,132

PCI
 
413

 
23

 
30

 
—

 
466

Total
 
$
146,985

 
$
1,044

 
$
462

 
$
522

 
$
149,013

 
 
 
 
 
 
 
 
 
 
 
 
 
Accruing
 
 
 
 
December 31, 2017
(Dollars in millions)
 
Current
 
30-89 Days Past Due
 
90 Days Or More Past Due
 
Nonperforming
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
58,852

 
$
41

 
$
1

 
$
259

 
$
59,153

CRE
 
21,209

 
8

 
1

 
45

 
21,263

Lease financing
 
1,906

 
4

 
—

 
1

 
1,911

Retail:
 
 

 
 

 
 

 
 

 
 
Residential mortgage
 
27,659

 
472

 
465

 
129

 
28,725

Direct
 
11,756

 
65

 
6

 
64

 
11,891

Indirect
 
16,745

 
412

 
6

 
72

 
17,235

Revolving credit
 
2,837

 
23

 
12

 
—

 
2,872

PCI
 
567

 
27

 
57

 
—

 
651

Total
 
$
141,531

 
$
1,052

 
$
548

 
$
570

 
$
143,701


The following table presents the carrying amount of loans by risk rating. PCI loans are excluded because their related ALLL is determined by loan pool performance and revolving credit loans are excluded as the loans are charged-off rather than reclassifying to nonperforming:
 
 
2018
 
2017
December 31,
(Dollars in millions)
 
Commercial & Industrial
 
CRE
 
Lease Financing
 
Commercial & Industrial
 
CRE
 
Lease Financing
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
$
60,655

 
$
20,712

 
$
2,012

 
$
57,700

 
$
20,862

 
$
1,881

Special mention
 
216

 
61

 
—

 
268

 
48

 
6

Substandard-performing
 
864

 
222

 
3

 
926

 
308

 
23

Nonperforming
 
200

 
65

 
3

 
259

 
45

 
1

Total
 
$
61,935

 
$
21,060

 
$
2,018

 
$
59,153

 
$
21,263

 
$
1,911

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Mortgage
 
Direct
 
Indirect
 
Residential Mortgage
 
Direct
 
Indirect
Retail:
 
 
 
 
 
 
 
 
 
 
 
 
Performing
 
$
31,274

 
$
11,531

 
$
17,343

 
$
28,596

 
$
11,827

 
$
17,163

Nonperforming
 
119

 
53

 
82

 
129

 
64

 
72

Total
 
$
31,393

 
$
11,584

 
$
17,425

 
$
28,725

 
$
11,891

 
$
17,235



The following tables present activity in the ACL:
(Dollars in millions)
 
Balance at Jan 1, 2016
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Other
 
Balance at Dec 31, 2016
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
488

 
$
(143
)
 
$
44

 
$
141

 
$
—

 
$
530

CRE
 
175

 
(9
)
 
19

 
(40
)
 
—

 
145

Lease financing
 
5

 
(6
)
 
2

 
6

 
—

 
7

Retail:
 
 

 
 

 
 

 
 

 
 

 
 
Residential mortgage
 
217

 
(40
)
 
3

 
47

 
—

 
227

Direct
 
105

 
(53
)
 
26

 
25

 
—

 
103

Indirect
 
305

 
(366
)
 
55

 
333

 
—

 
327

Revolving credit
 
104

 
(69
)
 
20

 
51

 
—

 
106

PCI
 
61

 
(15
)
 
—

 
(2
)
 
—

 
44

ALLL
 
1,460

 
(701
)
 
169

 
561

 
—

 
1,489

RUFC
 
90

 
—

 
—

 
11

 
9

 
110

ACL
 
$
1,550

 
$
(701
)
 
$
169

 
$
572

 
$
9

 
$
1,599

 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
Balance at Jan 1, 2017
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Other
 
Balance at Dec 31, 2017
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
530

 
$
(95
)
 
$
36

 
$
51

 
$
—

 
$
522

CRE
 
145

 
(10
)
 
16

 
9

 
—

 
160

Lease financing
 
7

 
(5
)
 
2

 
5

 
—

 
9

Retail:
 
 

 
 

 
 

 
 

 
 

 
 
Residential mortgage
 
227

 
(47
)
 
2

 
27

 
—

 
209

Direct
 
103

 
(61
)
 
25

 
39

 
—

 
106

Indirect
 
327

 
(402
)
 
60

 
363

 
—

 
348

Revolving credit
 
106

 
(76
)
 
19

 
59

 
—

 
108

PCI
 
44

 
(1
)
 
—

 
(15
)
 
—

 
28

ALLL
 
1,489

 
(697
)
 
160

 
538

 
—

 
1,490

RUFC
 
110

 
—

 
—

 
9

 
—

 
119

ACL
 
$
1,599

 
$
(697
)
 
$
160

 
$
547

 
$
—

 
$
1,609

 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in millions)
 
Balance at Jan 1, 2018
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Other
 
Balance at Dec 31, 2018
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
522

 
$
(92
)
 
$
39

 
$
77

 
$
—

 
$
546

CRE
 
160

 
(13
)
 
8

 
35

 
—

 
190

Lease financing
 
9

 
(4
)
 
1

 
5

 
—

 
11

Retail:
 
 

 
 

 
 

 
 

 
 

 
 
Residential mortgage
 
209

 
(21
)
 
2

 
42

 
—

 
232

Direct
 
106

 
(71
)
 
23

 
39

 
—

 
97

Indirect
 
348

 
(391
)
 
62

 
337

 
—

 
356

Revolving credit
 
108

 
(84
)
 
19

 
74

 
—

 
117

PCI
 
28

 
(2
)
 
—

 
(17
)
 
—

 
9

ALLL
 
1,490

 
(678
)
 
154

 
592

 
—

 
1,558

RUFC
 
119

 
—

 
—

 
(26
)
 
—

 
93

ACL
 
$
1,609

 
$
(678
)
 
$
154

 
$
566

 
$
—

 
$
1,651



The following table provides a summary of loans that are collectively evaluated for impairment:
 
 
2018
 
2017
December 31,
(Dollars in millions)
 
Recorded Investment
 
Related ALLL
 
Recorded Investment
 
Related ALLL
Commercial:
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
61,629

 
$
521

 
$
58,804

 
$
494

CRE
 
20,960

 
181

 
21,173

 
154

Lease financing
 
2,015

 
11

 
1,910

 
9

Retail:
 
 
 
 
 
 
 
 
Residential mortgage
 
30,539

 
164

 
27,914

 
143

Direct
 
11,517

 
92

 
11,815

 
98

Indirect
 
17,099

 
299

 
16,935

 
296

Revolving credit
 
3,104

 
106

 
2,842

 
97

PCI
 
466

 
9

 
651

 
28

Total
 
$
147,329

 
$
1,383

 
$
142,044

 
$
1,319



The following tables set forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment:

UPB
 
Recorded Investment
 
Related ALLL
 
Average Recorded Investment
 
Interest Income Recognized
As of / For The Year Ended December 31, 2018
(Dollars in millions)
 
Without an ALLL
 
With an ALLL
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
318

 
$
95

 
$
211

 
$
25

 
$
343

 
$
6

CRE
102

 
29

 
71

 
9

 
97

 
2

Lease financing
3

 
—

 
3

 
—

 
6

 
—

Retail:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
904

 
122

 
732

 
68

 
841

 
34

Direct
86

 
26

 
41

 
5

 
72

 
4

Indirect
335

 
6

 
320

 
57

 
306

 
46

Revolving credit
28

 
—

 
28

 
11

 
29

 
1

Total
$
1,776

 
$
278

 
$
1,406

 
$
175

 
$
1,694

 
$
93

 
 
 
 
 
 
 
 
 
 
 
 
 
UPB
 
Recorded Investment
 
Related ALLL
 
Average Recorded Investment
 
Interest Income Recognized
As of / For The Year Ended December 31, 2017
(Dollars in millions)
 
Without an ALLL
 
With an ALLL
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
381

 
$
136

 
$
213

 
$
28

 
$
424

 
$
6

CRE
91

 
26

 
64

 
6

 
109

 
3

Lease financing
1

 
—

 
1

 
—

 
3

 
—

Retail:
 
 
 

 
 

 
 

 
 

 
 

Residential mortgage
860

 
132

 
679

 
67

 
895

 
37

Direct
99

 
22

 
54

 
8

 
78

 
4

Indirect
308

 
6

 
294

 
52

 
269

 
41

Revolving credit
30

 
—

 
30

 
10

 
29

 
1

Total
$
1,770

 
$
322

 
$
1,335

 
$
171

 
$
1,807

 
$
92


The following table presents a summary of TDRs, all of which are considered impaired:
December 31,
(Dollars in millions)
 
2018
 
2017
Performing TDRs:
 
 
 
 
Commercial:
 
 
 
 
Commercial and industrial
 
$
65

 
$
50

CRE
 
10

 
16

Retail:
 
 
 
 
Residential mortgage
 
656

 
605

Direct
 
55

 
62

Indirect
 
305

 
281

Revolving credit
 
28

 
29

Total performing TDRs
 
1,119

 
1,043

Nonperforming TDRs (also included in NPL disclosures)
 
176

 
189

Total TDRs
 
$
1,295

 
$
1,232

ALLL attributable to TDRs
 
$
146

 
$
142



The primary reason loan modifications were classified as TDRs is summarized below. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications consist of TDRs made with below market interest rates, including those that also have modifications of loan structures.
 
2018
 
2017
 
2016
Year Ended December 31,
(Dollars in millions)
Type of Modification
 
ALLL Impact
 
Type of Modification
 
ALLL Impact
 
Type of Modification
 
ALLL Impact
Rate
 
Structure
 
 
Rate
 
Structure
 
 
Rate
 
Structure
 
Newly designated TDRs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
74

 
$
62

 
$
—

 
$
79

 
$
101

 
$
3

 
$
105

 
$
96

 
$
3

CRE
32

 
3

 
—

 
14

 
10

 
1

 
12

 
16

 
—

Retail:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
Residential mortgage
250

 
30

 
16

 
357

 
46

 
25

 
431

 
53

 
28

Direct
8

 
2

 
—

 
10

 
3

 
—

 
14

 
1

 
—

Indirect
195

 
4

 
22

 
192

 
6

 
21

 
169

 
7

 
21

Revolving credit
18

 
—

 
4

 
19

 
—

 
4

 
17

 
—

 
4

Re-modification of previously designated TDRs
120

 
15

 
—

 
176

 
44

 
—

 
79

 
46

 
—



Charge-offs and forgiveness of principal and interest for TDRs were immaterial for all periods presented.
 
The pre-default balance for modifications that had been classified as TDRs during the previous 12 months that experienced a payment default was $76 million, $104 million and $73 million for the years ended December 31, 2018, 2017 and 2016, respectively. Payment default is defined as movement of the TDR to nonperforming status, foreclosure or charge-off, whichever occurs first.

Unearned income, discounts and net deferred loan fees and costs were immaterial for all periods presented. Residential mortgage loans in the process of foreclosure were $253 million at December 31, 2018 and $288 million at December 31, 2017.