Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Summary of Loans

The following table provides the outstanding balances of loans held for investment at September 30, 2015 and December 31, 2014:

(Dollars in millions)	September 30, 2015			December 31, 2014
Loans held for investment:
Commercial and industrial	$	28,462		$	27,623
Commercial mortgage	13,943			14,016
Construction	2,120			1,746
Lease financing	748			800
Total commercial portfolio	45,273			44,185
Residential mortgage	27,856			28,977
Home equity and other consumer loans	3,124			3,117
Total consumer portfolio	30,980			32,094
Total loans held for investment, before purchased credit-impaired loans	76,253			76,279
Purchased credit-impaired loans(1)	388			525
Total loans held for investment(2)	76,641			76,804
Allowance for loan losses	(547		)	(537		)
Loans held for investment, net	$	76,094		$	76,267

(1) Includes $22 million and $126 million as of September 30, 2015 and December 31, 2014, respectively, of loans for which the Company will be reimbursed a portion of any future losses under the terms of the FDIC loss share agreements.

(2) Includes $152 million and $151 million at September 30, 2015 and December 31, 2014, respectively, for net unamortized discounts and premiums and deferredfees and costs.

Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment

The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment:

	For the Three Months Ended September 30, 2015
(Dollars in millions)	Commercial			Consumer			Purchased Credit- Impaired			Unallocated		Total
Allowance for loan losses, beginning of period	$	461		$	51		$	4		$	20	$	536
(Reversal of) provision for loan losses	24			(1		)	—			—		23
Other	(1		)	—			—			—		(1		)
Loans charged-off	(11		)	(1		)	(3		)	—		(15		)
Recoveries of loans previously charged-off	3			1			—			—		4
Allowance for loan losses, end of period	$	476		$	50		$	1		$	20	$	547

	For the Three Months Ended September 30, 2014
(Dollars in millions)	Commercial			Consumer			Purchased Credit- Impaired			Unallocated			Total
Allowance for loan losses, beginning of period	$	482		$	49		$	3		$	25		$	559
(Reversal of) provision for loan losses	(15		)	2			—			(5		)	(18		)
Loans charged-off	(15		)	(2		)	(1		)	—			(18		)
Recoveries of loans previously charged-off	5			—			1			—			6
Allowance for loan losses, end of period	$	457		$	49		$	3		$	20		$	529

Allowance for Loan Losses and Related Loan Balances by Portfolio Segment

The following tables show the allowance for loan losses and related loan balances by portfolio segment as of September 30, 2015 and December 31, 2014:

	September 30, 2015
(Dollars in millions)	Commercial		Consumer		Purchased Credit- Impaired		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	25	$	16	$	—	$	—	$	41
Collectively evaluated for impairment	451		34		—		20		505
Purchased credit-impaired loans	—		—		1		—		1
Total allowance for loan losses	$	476	$	50	$	1	$	20	$	547
Loans held for investment:
Individually evaluated for impairment	$	231	$	317	$	1	$	—	$	549
Collectively evaluated for impairment	45,042		30,663		—		—		75,705
Purchased credit-impaired loans	—		—		387		—		387
Total loans held for investment	$	45,273	$	30,980	$	388	$	—	$	76,641

	December 31, 2014
(Dollars in millions)	Commercial		Consumer		Purchased Credit- Impaired		Unallocated		Total
Allowance for loan losses:
Individually evaluated for impairment	$	18	$	16	$	—	$	—	$	34
Collectively evaluated for impairment	447		33		—		20		500
Purchased credit-impaired loans	—		—		3		—		3
Total allowance for loan losses	$	465	$	49	$	3	$	20	$	537
Loans held for investment:
Individually evaluated for impairment	$	164	$	338	$	1	$	—	$	503
Collectively evaluated for impairment	44,021		31,756		—		—		75,777
Purchased credit-impaired loans	—		—		524		—		524
Total loans held for investment	$	44,185	$	32,094	$	525	$	—	$	76,804

Summary of Nonaccrual Loans

The following table presents nonaccrual loans as of September 30, 2015 and December 31, 2014:

(Dollars in millions)	September 30, 2015		December 31, 2014
Commercial and industrial	$	138	$	55
Commercial mortgage	40		40
Total commercial portfolio	178		95
Residential mortgage	201		231
Home equity and other consumer loans	32		40
Total consumer portfolio	233		271
Total nonaccrual loans, before purchased credit-impaired loans	411		366
Purchased credit-impaired loans	8		9
Total nonaccrual loans	$	419	$	375
Troubled debt restructured loans that continue to accrue interest	$	264	$	283
Troubled debt restructured nonaccrual loans (included in the total nonaccrual loans above)	$	202	$	184

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

The following table shows an aging of the balance of loans held for investment, excluding purchased credit-impaired loans, by class as of September 30, 2015 and December 31, 2014:

	September 30, 2015
	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	$	29,182	$	21	$	7	$	28	$	29,210
Commercial mortgage	13,911		26		6		32		13,943
Construction	2,120		—		—		—		2,120
Total commercial portfolio	45,213		47		13		60		45,273
Residential mortgage	27,702		106		48		154		27,856
Home equity and other consumer loans	3,102		12		10		22		3,124
Total consumer portfolio	30,804		118		58		176		30,980
Total loans held for investment, excluding purchased credit-impaired loans	$	76,017	$	165	$	71	$	236	$	76,253

	December 31, 2014
	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	$	28,392	$	19	$	12	$	31	$	28,423
Commercial mortgage	13,991		21		4		25		14,016
Construction	1,744		2		—		2		1,746
Total commercial portfolio	44,127		42		16		58		44,185
Residential mortgage	28,802		112		63		175		28,977
Home equity and other consumer loans	3,084		20		13		33		3,117
Total consumer portfolio	31,886		132		76		208		32,094
Total loans held for investment, excluding purchased credit-impaired loans	$	76,013	$	174	$	92	$	266	$	76,279

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

The following tables summarize the loans in the commercial portfolio segment and commercial loans within the purchased credit-impaired loans segment monitored for credit quality based on internal ratings, excluding $1 million and $98 million covered by FDIC loss share agreements, at September 30, 2015 and December 31, 2014, respectively. The amounts presented reflect unpaid principal balances less charge-offs.

	September 30, 2015
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	27,768	$	667	$	675	$	29,110
Construction	2,115		6		—		2,121
Commercial mortgage	13,495		132		162		13,789
Total commercial portfolio	43,378		805		837		45,020
Purchased credit-impaired loans	35		19		82		136
Total	$	43,413	$	824	$	919	$	45,156

	December 31, 2014
(Dollars in millions)	Pass		Special Mention		Classified		Total
Commercial and industrial	$	27,471	$	452	$	360	$	28,283
Construction	1,729		18		—		1,747
Commercial mortgage	13,522		128		183		13,833
Total commercial portfolio	42,722		598		543		43,863
Purchased credit-impaired loans	37		38		128		203
Total	$	42,759	$	636	$	671	$	44,066

Loans in Consumer Portfolio an Purchased credit-impaired loans

The following tables summarize the loans in the consumer portfolio segment and purchased credit-impaired loans segment, which excludes $21 million and $28 million of loans covered by FDIC loss share agreements, at September 30, 2015 and December 31, 2014, respectively:

	September 30, 2015
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	27,655	$	201	$	27,856
Home equity and other consumer loans	3,092		32		3,124
Total consumer portfolio	30,747		233		30,980
Purchased credit-impaired loans	158		—		158
Total	$	30,905	$	233	$	31,138

	December 31, 2014
(Dollars in millions)	Accrual		Nonaccrual		Total
Residential mortgage	$	28,746	$	231	$	28,977
Home equity and other consumer loans	3,077		40		3,117
Total consumer portfolio	31,823		271		32,094
Purchased credit-impaired loans	196		—		196
Total	$	32,019	$	271	$	32,290

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

These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs.

	September 30, 2015
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	21,485		$	5,543		$	577		$	27,605
Home equity and other consumer loans	2,196			774			90			3,060
Total consumer portfolio	23,681			6,317			667			30,665
Purchased credit-impaired loans	63			85			11			159
Total	$	23,744		$	6,402		$	678		$	30,824
Percentage of total	77		%	21		%	2		%	100		%

	December 31, 2014
	FICO scores
(Dollars in millions)	720 and above			Below 720			No FICO Available(1)			Total
Residential mortgage	$	22,505		$	5,717		$	493		$	28,715
Home equity and other consumer loans	2,209			754			83			3,046
Total consumer portfolio	24,714			6,471			576			31,761
Purchased credit-impaired loans	73			111			13			197
Total	$	24,787		$	6,582		$	589		$	31,958
Percentage of total	77		%	21		%	2		%	100		%

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

	September 30, 2015
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	26,622		$	850		$	60		$	73		$	27,605
Home equity loans	2,237			219			87			52			2,595
Total consumer portfolio	28,859			1,069			147			125			30,200
Purchased credit-impaired loans	112			34			10			1			157
Total	$	28,971		$	1,103		$	157		$	126		$	30,357
Percentage of total	95		%	4		%	1		%	—		%	100		%

	December 31, 2014
	LTV ratios
(Dollars in millions)	Less than or Equal to 80 Percent			Greater than 80 and Less than 100 Percent			Greater than or Equal to 100 Percent			No LTV Available(1)			Total
Residential mortgage	$	27,162		$	1,430		$	92		$	31		$	28,715
Home equity loans	2,364			270			118			50			2,802
Total consumer portfolio	29,526			1,700			210			81			31,517
Purchased credit-impaired loans	131			45			18			1			195
Total	$	29,657		$	1,745		$	228		$	82		$	31,712
Percentage of total	94		%	5		%	1		%	—		%	100		%

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

Summary of Troubled Debt Restructurings

The following table provides a summary of the Company’s recorded investment in TDRs as of September 30, 2015 and December 31, 2014. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $23 million and $33 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of September 30, 2015 and December 31, 2014, respectively.

(Dollars in millions)	September 30, 2015		December 31, 2014
Commercial and industrial	$	129	$	100
Commercial mortgage	20		28
Total commercial portfolio	149		128
Residential mortgage	289		308
Home equity and other consumer loans	28		30
Total consumer portfolio	317		338
Total restructured loans, excluding purchased credit-impaired loans	$	466	$	466

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

The following table provides the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the three and nine months ended September 30, 2015 and 2014:

	For the Three Months Ended September 30, 2015				For the Nine Months Ended September 30, 2015
(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	$	4	$	4	$	110	$	110
Commercial mortgage	—		—		8		8
Total commercial portfolio	4		4		118		118
Residential mortgage	3		3		13		13
Home equity and other consumer loans	1		1		3		3
Total consumer portfolio	4		4		16		16
Total	$	8	$	8	$	134	$	134

(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

	For the Three Months Ended September 30, 2014				For the Nine Months Ended September 30, 2014
(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	$	25	$	25	$	105	$	105
Commercial mortgage	2		2		20		20
Total commercial portfolio	27		27		125		125
Residential mortgage	7		7		17		16
Home equity and other consumer loans	5		5		9		9
Total consumer portfolio	12		12		26		25
Total	$	39	$	39	$	151	$	150

(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.

The following table provides the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the three and nine months ended September 30, 2015 and 2014, and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due.

(Dollars in millions)	For the Three Months Ended September 30, 2015		For the Nine Months Ended September 30, 2015
Commercial and industrial	$	—	$	25
Commercial mortgage	—		3
Total commercial portfolio	—		28
Residential mortgage	4		4
Home equity and other consumer loans	—		—
Total consumer portfolio	4		4
Total	$	4	$	32

(Dollars in millions)	For the Three Months Ended September 30, 2014		For the Nine Months Ended September 30, 2014
Commercial and industrial	$	4	$	10
Commercial mortgage	4		7
Total commercial portfolio	8		17
Residential mortgage	1		5
Home equity and other consumer loans	—		1
Total consumer portfolio	1		6
Total	$	9	$	23

Information about Impaired Loans by Class

The following tables show information about impaired loans by class as of September 30, 2015 and December 31, 2014:

	September 30, 2015
	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	$	154	$	52	$	206	$	24	$	166	$	67
Commercial mortgage	19		6		25		1		29		—
Total commercial portfolio	173		58		231		25		195		67
Residential mortgage	188		101		289		15		200		117
Home equity and other consumer loans	6		22		28		1		8		35
Total consumer portfolio	194		123		317		16		208		152
Total, excluding purchased credit-impaired loans	367		181		548		41		403		219
Purchased credit-impaired loans	—		1		1		—		1		2
Total	$	367	$	182	$	549	$	41	$	404	$	221

	December 31, 2014
	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	$	89	$	35	$	124	$	14	$	120	$	39
Commercial mortgage	37		3		40		4		39		3
Total commercial portfolio	126		38		164		18		159		42
Residential mortgage	198		110		308		16		211		127
Home equity and other consumer loans	6		24		30		—		7		37
Total consumer portfolio	204		134		338		16		218		164
Total, excluding purchased credit-impaired loans	330		172		502		34		377		206
Purchased credit-impaired loans	—		1		1		—		—		2
Total	$	330	$	173	$	503	$	34	$	377	$	208

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

The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during the three and nine months ended September 30, 2015 and 2014 for the commercial, consumer and purchased credit-impaired loans portfolio segments.

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2015				2014				2015				2014
(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	$	191	$	1	$	203	$	—	$	174	$	4	$	204	$	4
Commercial mortgage	28		—		33		—		31		1		35		2
Construction	—		—		—		—		—		—		—		1
Total commercial portfolio	219		1		236		—		205		5		239		7
Residential mortgage	295		3		307		2		298		8		310		8
Home equity and other consumer loans	29		—		28		—		30		1		27		1
Total consumer portfolio	324		3		335		2		328		9		337		9
Total, excluding purchased credit-impaired loans	543		4		571		2		533		14		576		16
Purchased credit-impaired loans	2		—		2		—		2		—		2		—
Total	$	545	$	4	$	573	$	2	$	535	$	14	$	578	$	16