Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Summary of Loans

(Dollars in millions)	June 30, 2013			December 31, 2012
Loans held for investment:
Commercial and industrial	$	22,266		$	20,827
Commercial mortgage		13,008			9,939
Construction		808			627
Lease financing		984			1,104
Total commercial portfolio		37,066			32,497
Residential mortgage		23,835			22,705
Home equity and other consumer loans		3,456			3,647
Total consumer portfolio		27,291			26,352
Total loans held for investment, before purchased credit-impaired loans		64,357			58,849
Purchased credit-impaired loans(1)		1,486			1,185
Total loans held for investment(2)		65,843			60,034
Allowance for loan losses		(625	)		(653	)
Loans held for investment, net	$	65,218		$	59,381

(1)

Includes $348 million and $421 million as of June 30, 2013 and December 31, 2012, respectively, of loans for which the Company will be reimbursed a substantial portion of any future losses under the terms of the FDIC loss share agreements. Of these FDIC covered loans, $21 million and $24 million as of June 30, 2013 and December 31, 2012, respectively, were not accounted for under accounting guidance for loans acquired with deteriorated credit quality.

(2)

Includes $54 million and $5 million at June 30, 2013 and December 31, 2012, respectively, for net unamortized discounts and premiums and deferred fees and costs.

Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment

	For the Three Months Ended June 30, 2013
(Dollars in millions)	Commercial			Consumer			Purchased Credit- Impaired			Unallocated		Total
Allowance for loan losses, beginning of period	$	486		$	113		$	1		$	38	$	638
(Reversal of) provision for loan losses		(3	)		—			—			—		(3	)
Decrease in allowance covered by FDIC indemnification		—			—			(2	)		—		(2	)
Loans charged off		(12	)		(8	)		—			—		(20	)
Recoveries of loans previously charged off		9			1			2			—		12
Allowance for loan losses, end of period	$	480		$	106		$	1		$	38	$	625

	For the Three Months Ended June 30, 2012
(Dollars in millions)	Commercial			Consumer			Purchased Credit- Impaired			Unallocated		Total
Allowance for loan losses, beginning of period	$	439		$	128		$	10		$	127	$	704
(Reversal of) provision for loan losses		(38	)		14			—			11		(13	)
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		—			—			(1	)		—		(1	)
Decrease in allowance covered by FDIC indemnification		—			—			(3	)		—		(3	)
Loans charged off		(26	)		(16	)		(2	)		—		(44	)
Recoveries of loans previously charged off		13			—			—			—		13
Allowance for loan losses, end of period	$	388		$	126		$	4		$	138	$	656

	For the Six Months Ended June 30, 2013
(Dollars in millions)	Commercial			Consumer			Purchased Credit- Impaired			Unallocated			Total
Allowance for loan losses, beginning of period	$	418		$	124		$	1		$	110		$	653
(Reversal of) provision for loan losses		65			1			—			(72	)		(6	)
Loans charged off		(15	)		(21	)		(3	)		—			(39	)
Recoveries of loans previously charged off		12			2			3			—			17
Allowance for loan losses, end of period	$	480		$	106		$	1		$	38		$	625

	For the Six Months Ended June 30, 2012
(Dollars in millions)	Commercial			Consumer			Purchased Credit- Impaired			Unallocated		Total
Allowance for loan losses, beginning of period	$	474		$	138		$	17		$	135	$	764
(Reversal of) provision for loan losses		(41	)		26			—			3		(12	)
(Reversal of) provision for FDIC covered loan losses not subject to FDIC indemnification		—			—			(3	)		—		(3	)
Decrease in allowance covered by FDIC indemnification		—			—			(9	)		—		(9	)
Loans charged off		(66	)		(39	)		(2	)		—		(107	)
Recoveries of loans previously charged off		21			1			1			—		23
Allowance for loan losses, end of period	$	388		$	126		$	4		$	138	$	656

Allowance for Loan Losses and Related Loan Balances by Portfolio Segment

	June 30, 2013
(Dollars in millions)	Commercial		Consumer		Purchased Credit- Impaired		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	33	$	14	$	—	$	—	$	47
Collectively evaluated for impairment		447		92		—		38		577
Purchased credit-impaired loans		—		—		1		—		1
Total allowance for loan losses	$	480	$	106	$	1	$	38	$	625
Loans held for investment:
Individually evaluated for impairment	$	325	$	319	$	4	$	—	$	648
Collectively evaluated for impairment		36,741		26,972		—		—		63,713
Purchased credit-impaired loans		—		—		1,482		—		1,482
Total loans held for investment	$	37,066	$	27,291	$	1,486	$	—	$	65,843

	December 31, 2012
(Dollars in millions)	Commercial		Consumer		Purchased Credit- Impaired		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	24	$	18	$	—	$	—	$	42
Collectively evaluated for impairment		394		106		—		110		610
Purchased credit-impaired loans		—		—		1		—		1
Total allowance for loan losses	$	418	$	124	$	1	$	110	$	653
Loans held for investment:
Individually evaluated for impairment	$	330	$	292	$	5	$	—	$	627
Collectively evaluated for impairment		32,167		26,060		—		—		58,227
Purchased credit-impaired loans		—		—		1,180		—		1,180
Total loans held for investment	$	32,497	$	26,352	$	1,185	$	—	$	60,034

Summary of Nonaccrual Loans

(Dollars in millions)	June 30, 2013		December 31, 2012
Commercial and industrial	$	69	$	48
Commercial mortgage		62		65
Total commercial portfolio		131		113
Residential mortgage		315		306
Home equity and other consumer loans		50		56
Total consumer portfolio		365		362
Total nonaccrual loans, before purchased credit-impaired loans		496		475
Purchased credit-impaired loans		24		30
Total nonaccrual loans	$	520	$	505
Troubled debt restructured loans that continue to accrue interest	$	366	$	401
Troubled debt restructured nonaccrual loans (included in the total nonaccrual loans above)	$	245	$	209

Aging of Balance of Loans Held for Investment, Excluding Purchased Credit-Impaired Loans

	June 30, 2013
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	23,169	$	66	$	15	$	81	$	23,250
Commercial mortgage		12,851		136		21		157		13,008
Construction		808		—		—		—		808
Total commercial portfolio		36,828		202		36		238		37,066
Residential mortgage		23,548		152		135		287		23,835
Home equity and other consumer loans		3,416		24		16		40		3,456
Total consumer portfolio		26,964		176		151		327		27,291
Total loans held for investment, excluding purchased credit-impaired loans	$	63,792	$	378	$	187	$	565	$	64,357

	December 31, 2012
	Aging Analysis of Loans
(Dollars in millions)	Current		30 to 89 Days Past Due		90 Days or More Past Due		Total Past Due		Total
Commercial and industrial	$	21,861	$	68	$	2	$	70	$	21,931
Commercial mortgage		9,869		57		13		70		9,939
Construction		622		5		—		5		627
Total commercial portfolio		32,352		130		15		145		32,497
Residential mortgage		22,351		181		173		354		22,705
Home equity and other consumer loans		3,584		44		19		63		3,647
Total consumer portfolio		25,935		225		192		417		26,352
Total loans held for investment, excluding purchased credit-impaired loans	$	58,287	$	355	$	207	$	562	$	58,849

Loans in Commercial Portfolio Segment and Commercial Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Internal Ratings

	June 30, 2013
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	22,248	$	535	$	356	$	23,139
Construction		792		16		—		808
Commercial mortgage		12,366		243		212		12,821
Total commercial portfolio		35,406		794		568		36,768
Purchased credit-impaired loans		74		351		442		867
Total	$	35,480	$	1,145	$	1,010	$	37,635

	December 31, 2012
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	20,961	$	438	$	380	$	21,779
Construction		610		17		—		627
Commercial mortgage		9,298		194		248		9,740
Total commercial portfolio		30,869		649		628		32,146
Purchased credit-impaired loans		21		153		301		475
Total	$	30,890	$	802	$	929	$	32,621

Loans in Consumer Portfolio Segment and Consumer Loans within Purchased Credit-Impaired Loans Segment Based on Payment Status

	June 30, 2013
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	23,520	$	315	$	23,835
Home equity and other consumer loans		3,406		50		3,456
Total consumer portfolio		26,926		365		27,291
Purchased credit-impaired loans		270		1		271
Total	$	27,196	$	366	$	27,562

	December 31, 2012
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	22,399	$	306	$	22,705
Home equity and other consumer loans		3,591		56		3,647
Total consumer portfolio		25,990		362		26,352
Purchased credit-impaired loans		288		—		288
Total	$	26,278	$	362	$	26,640

Loans in Consumer Portfolio Segment and Consumer Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Refreshed FICO Scores and Refreshed LTV ratios

	June 30, 2013
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO available(1)			Total
Residential mortgage	$	17,824		$	4,909		$	208		$	22,941
Home equity and other consumer loans		2,405			921			54			3,380
Total consumer portfolio		20,229			5,830			262			26,321
Purchased credit-impaired loans		95			164			12			271
Total	$	20,324		$	5,994		$	274		$	26,592
Percentage of total		76	%		23	%		1	%		100	%

	December 31, 2012
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO available(1)			Total
Residential mortgage	$	17,103		$	4,666		$	395		$	22,164
Home equity and other consumer loans		2,464			986			122			3,572
Total consumer portfolio		19,567			5,652			517			25,736
Purchased credit-impaired loans		106			172			10			288
Total	$	19,673		$	5,824		$	527		$	26,024
Percentage of total		76	%		22	%		2	%		100	%

(1)

Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).

	June 30, 2013
	LTV ratios
(Dollars in millions)	Less than 80 percent			80 - 100 percent			Greater than 100 percent			No LTV available(1)			Total
Residential mortgage	$	20,609		$	1,906		$	422		$	4		$	22,941
Home equity loans		2,470			446			298			58			3,272
Total consumer portfolio		23,079			2,352			720			62			26,213
Purchased credit-impaired loans		158			50			57			—			265
Total	$	23,237		$	2,402		$	777		$	62		$	26,478
Percentage of total		88	%		9	%		3	%		—	%		100	%

	December 31, 2012
	LTV ratios
(Dollars in millions)	Less than 80 percent			80 - 100 percent			Greater than 100 percent			No LTV available(1)			Total
Residential mortgage	$	17,771		$	3,031		$	1,232		$	130		$	22,164
Home equity loans		2,216			618			540			113			3,487
Total consumer portfolio		19,987			3,649			1,772			243			25,651
Purchased credit-impaired loans		72			50			153			13			288
Total	$	20,059		$	3,699		$	1,925		$	256		$	25,939
Percentage of total		77	%		14	%		8	%		1	%		100	%

(1)

Represents loans for which management was not able to obtain refreshed property values.

Summary of Troubled Debt Restructurings

(Dollars in millions)	June 30, 2013		December 31, 2012
Commercial and industrial	$	246	$	215
Commercial mortgage		41		64
Construction		2		35
Total commercial portfolio		289		314
Residential mortgage		297		271
Home equity and other consumer loans		22		21
Total consumer portfolio		319		292
Total restructured loans, excluding purchased credit-impaired loans(1)	$	608	$	606

(1)

Amounts exclude $3 million and $4 million of TDRs covered by FDIC loss share agreements at June 30, 2013 and December 31, 2012, respectively.

Pre- and Post-Modification Outstanding Recorded Investment Amounts of Troubled Debt Restructurings

	For the Three Months Ended June 30, 2013				For the Six Months Ended June 30, 2013
(Dollars in millions)	Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)		Pre-Modification Outstanding Recorded Investment(1)		Post-Modification Outstanding Recorded Investment(2)
Commercial and industrial	$	49	$	47	$	125	$	121
Commercial mortgage		4		4		15		15
Construction		—		—		—		—
Total commercial portfolio		53		51		140		136
Residential mortgage		30		30		55		54
Home equity and other consumer loans		3		2		4		3
Total consumer portfolio		33		32		59		57
Total	$	86	$	83	$	199	$	193

(1)

Represents the recorded investment in the loan immediately prior to the restructuring event.

(2)

Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms.

Recorded Investment Amounts of Troubled Debt Restructurings

(Dollars in millions)	For the Three Months Ended June 30, 2013		For the Six Months Ended June 30, 2013
Commercial and industrial	$	3	$	8
Residential mortgage		7		9
Home equity and other consumer loans		1		1
Total consumer portfolio		8		10
Total	$	11	$	18

Information about Impaired Loans by Class

	June 30, 2013
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	230	$	36	$	266	$	30	$	234	$	37
Commercial mortgage		29		28		57		3		31		38
Construction		2		—		2		—		3		—
Total commercial portfolio		261		64		325		33		268		75
Residential mortgage		189		108		297		14		203		123
Home equity and other consumer loans		3		19		22		—		3		33
Total consumer portfolio		192		127		319		14		206		156
Total, excluding purchased credit-impaired loans		453		191		644		47		474		231
Purchased credit-impaired loans		1		3		4		—		1		9
Total	$	454	$	194	$	648	$	47	$	475	$	240

	December 31, 2012
	Recorded Investment								Unpaid Principal Balance
(Dollars in millions)	With an Allowance		Without an Allowance		Total		Allowance for Impaired Loans		With an Allowance		Without an Allowance
Commercial and industrial	$	156	$	64	$	220	$	24	$	167	$	64
Commercial mortgage		15		60		75		—		18		70
Construction		—		35		35		—		—		38
Total commercial portfolio		171		159		330		24		185		172
Residential mortgage		186		85		271		18		199		97
Home equity and other consumer loans		3		18		21		—		3		31
Total consumer portfolio		189		103		292		18		202		128
Total, excluding purchased credit-impaired loans		360		262		622		42		387		300
Purchased credit-impaired loans		—		4		4		—		1		14
Total	$	360	$	266	$	626	$	42	$	388	$	314

Average Investment in Impaired Loans and Interest Income Recognized for Impaired Loans

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2013				2012				2013				2012
(Dollars in millions)	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
Commercial and industrial	$	265	$	5	$	197	$	2	$	250	$	8	$	205	$	3
Commercial mortgage		53		1		117		1		60		1		121		1
Construction		2		—		52		1		13		—		57		2
Total commercial portfolio		320		6		366		4		323		9		383		6
Residential mortgage		288		2		175		4		282		5		164		5
Home equity and other consumer loans		22		1		2		—		21		1		2		—
Total consumer portfolio		310		3		177		4		303		6		166		5
Total, excluding purchased credit-impaired loans		630		9		543		8		626		15		549		11
Purchased credit-impaired loans		4		—		10		1		4		—		11		1
Total	$	634	$	9	$	553	$	9	$	630	$	15	$	560	$	12

Outstanding Balances and Carrying Amounts of Purchased Credit-Impaired Loans

(Dollars in millions)	June 30, 2013		December 31, 2012
Total outstanding balance	$	2,346	$	2,155
Carrying amount	$	1,465	$	1,161

Changes in Accretable Balance for Purchased Credit-Impaired Loans

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(Dollars in millions)	2013			2012			2013			2012
Accretable yield, beginning of period	$	501		$	441		$	590		$	424
Additions		31			—			31			—
Accretion		(81	)		(72	)		(160	)		(135	)
Reclassifications from nonaccretable difference during the period		28			105			18			185
Accretable yield, end of period	$	479		$	474		$	479		$	474