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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Summary of Loans
The following table provides the outstanding balances of loans at June 30, 2017 and December 31, 2016:
(Dollars in millions)
 
June 30, 2017
 
December 31, 2016
Loans held for investment:
 
 
 
 
Commercial and industrial
 
$
24,554

 
$
25,379

Commercial mortgage
 
14,297

 
14,625

Construction
 
1,921

 
2,283

Lease financing
 
1,738

 
1,819

Total commercial portfolio
 
42,510

 
44,106

Residential mortgage
 
32,523

 
29,922

Home equity and other consumer loans
 
3,355

 
3,523

Total consumer portfolio
 
35,878

 
33,445

Total loans held for investment(1)
 
78,388

 
77,551

Allowance for loan losses
 
(513
)
 
(639
)
Loans held for investment, net
 
$
77,875

 
$
76,912

 
 

(1)
Includes $232 million and $180 million at June 30, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) 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 June 30, 2017
(Dollars in millions)
 
Commercial
 
Consumer
 
Total
Allowance for loan losses, beginning of period
 
$
485

 
$
85

 
$
570

(Reversal of) provision for loan losses
 
(24
)
 
4

 
(20
)
Other
 
(1
)
 
—

 
(1
)
Loans charged-off
 
(29
)
 
(11
)
 
(40
)
Recoveries of loans previously charged-off
 
4

 
—

 
4

Allowance for loan losses, end of period
 
$
435

 
$
78

 
$
513


 
 
For the Three Months Ended June 30, 2016
(Dollars in millions)
 
Commercial
 
Consumer
 
Total
Allowance for loan losses, beginning of period
 
$
824

 
$
57

 
$
881

(Reversal of) provision for loan losses
 
(46
)
 
10

 
(36
)
Other
 
—

 
—

 
—

Loans charged-off
 
(97
)
 
(2
)
 
(99
)
Recoveries of loans previously charged-off
 
2

 
—

 
2

Allowance for loan losses, end of period
 
$
683

 
$
65

 
$
748

 
 
 
 
 
 
 
 
 
 
 
For the Six Months Ended June 30, 2017
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses, beginning of period
 
$
556

 
$
83

 
$
—

 
$
639

(Reversal of) provision for loan losses
 
(50
)
 
16

 
—

 
(34
)
Other
 
—

 
—

 
—

 
—

Loans charged-off
 
(84
)
 
(22
)
 
—

 
(106
)
Recoveries of loans previously charged-off
 
13

 
1

 
—

 
14

Allowance for loan losses, end of period
 
$
435

 
$
78

 
$
—

 
$
513

 
 
 
 
 
 
 
 
 
 
 
For the Six Months Ended June 30, 2016
(Dollars in millions)
 
Commercial
 
Consumer
 
Unallocated
 
Total
Allowance for loan losses, beginning of period
 
$
653

 
$
50

 
$
20

 
$
723

(Reversal of) provision for loan losses
 
125

 
17

 
(20
)
 
122

Other
 
4

 
—

 
—

 
4

Loans charged-off
 
(105
)
 
(3
)
 
—

 
(108
)
Recoveries of loans previously charged-off
 
6

 
1

 
—

 
7

Allowance for loan losses, end of period
 
$
683

 
$
65

 
$
—

 
$
748
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 June 30, 2017 and December 31, 2016:
 
 
June 30, 2017
(Dollars in millions)
 
Commercial
 
Consumer
 
Total
Allowance for loan losses:
 
 
 
 
 
 
Individually evaluated for impairment
 
$
76

 
$
16

 
$
92

Collectively evaluated for impairment
 
359

 
62

 
421

Total allowance for loan losses
 
$
435

 
$
78

 
$
513

 
 
 
 
 
 
 
Loans held for investment:
 
 
 
 
 
 
Individually evaluated for impairment
 
$
523

 
$
361

 
$
884

Collectively evaluated for impairment
 
41,987

 
35,517

 
77,504

Total loans held for investment
 
$
42,510

 
$
35,878

 
$
78,388

 
 
December 31, 2016
(Dollars in millions)
 
Commercial
 
Consumer
 
Total
Allowance for loan losses:
 
 
 
 
 
 
Individually evaluated for impairment
 
$
151

 
$
17

 
$
168

Collectively evaluated for impairment
 
405

 
66

 
471

Total allowance for loan losses
 
$
556

 
$
83

 
$
639

 
 
 
 
 
 
 
Loans held for investment:
 
 
 
 
 
 
Individually evaluated for impairment
 
$
636

 
$
386

 
$
1,022

Collectively evaluated for impairment
 
43,470

 
33,059

 
76,529

Total loans held for investment
 
$
44,106

 
$
33,445

 
$
77,551
Summary of Nonaccrual Loans
The following table presents nonaccrual loans as of June 30, 2017 and December 31, 2016:
(Dollars in millions)
 
June 30, 2017
 
December 31, 2016
Commercial and industrial
 
$
321

 
$
458

Commercial mortgage
 
24

 
31

  Total commercial portfolio
 
345

 
489

Residential mortgage
 
128

 
171

Home equity and other consumer loans
 
25

 
29

  Total consumer portfolio
 
153

 
200

        Total nonaccrual loans
 
$
498

 
$
689

Troubled debt restructured loans that continue to accrue interest
 
$
318

 
$
215

Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above)
 
$
277

 
$
384
Aging of Balance of Loans Held for Investment, Excluding Purchased Credit-Impaired Loans
The following tables show an aging of the balance of loans held for investment, by class as of June 30, 2017 and December 31, 2016:

 
 
June 30, 2017
 
 
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
 
$
26,202

 
$
34

 
$
56

 
$
90

 
$
26,292

Commercial mortgage
 
14,251

 
36

 
10

 
46

 
14,297

Construction
 
1,921

 
—

 
—

 
—

 
1,921

  Total commercial portfolio
 
42,374

 
70

 
66

 
136

 
42,510

Residential mortgage
 
32,355

 
125

 
43

 
168

 
32,523

Home equity and other consumer loans
 
3,318

 
25

 
12

 
37

 
3,355

  Total consumer portfolio
 
35,673

 
150

 
55

 
205

 
35,878

Total loans held for investment
 
$
78,047

 
$
220

 
$
121

 
$
341

 
$
78,388


 
 
December 31, 2016
 
 
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
 
$
27,085

 
$
54

 
$
59

 
$
113

 
$
27,198

Commercial mortgage
 
14,571

 
37

 
17

 
54

 
14,625

Construction
 
2,283

 
—

 
—

 
—

 
2,283

  Total commercial portfolio
 
43,939

 
91

 
76

 
167

 
44,106

Residential mortgage
 
29,770

 
110

 
42

 
152

 
29,922

Home equity and other consumer loans
 
3,479

 
27

 
17

 
44

 
3,523

  Total consumer portfolio
 
33,249

 
137

 
59

 
196

 
33,445

Total loans held for investment
 
$
77,188

 
$
228

 
$
135

 
$
363

 
$
77,551
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 monitored for credit quality based on regulatory risk ratings.

 
 
June 30, 2017
 
 
 
 
Criticized
 
 
(Dollars in millions)
 
Pass
 
Special Mention
 
Classified
 
Total
Commercial and industrial
 
$
24,927

 
$
567

 
$
798

 
$
26,292

Commercial mortgage
 
13,966

 
86

 
245

 
14,297

Construction
 
1,755

 
14

 
152

 
1,921

  Total commercial portfolio
 
$
40,648

 
$
667

 
$
1,195

 
$
42,510


 
 
December 31, 2016 (1)
 
 
 
 
Criticized
 
 
(Dollars in millions)
 
Pass
 
Special Mention
 
Classified
 
Total
Commercial and industrial
 
$
25,028

 
$
860

 
$
1,097

 
$
26,985

Commercial mortgage
 
14,152

 
161

 
188

 
14,501

Construction
 
2,162

 
121

 
—

 
2,283

  Total commercial portfolio
 
$
41,342

 
$
1,142

 
$
1,285

 
$
43,769
Loans in Consumer Portfolio an Purchased credit-impaired loans
The following tables summarize the loans in the consumer portfolio segment, which exclude $9 million and $11 million of loans covered by FDIC loss share agreements, at June 30, 2017 and December 31, 2016, respectively:
 
 
June 30, 2017
(Dollars in millions)
 
Accrual
 
Nonaccrual
 
Total
Residential mortgage
 
$
32,389

 
$
128

 
$
32,517

Home equity and other consumer loans
 
3,327

 
25

 
3,352

  Total consumer portfolio
 
$
35,716

 
$
153

 
$
35,869


 
 
December 31, 2016
(Dollars in millions)
 
Accrual
 
Nonaccrual
 
Total
Residential mortgage
 
$
29,751

 
$
171

 
$
29,922

Home equity and other consumer loans
 
3,494

 
29

 
3,523

  Total consumer portfolio
 
$
33,245

 
$
200

 
$
33,445
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.
 
 
June 30, 2017
 
 
FICO scores
(Dollars in millions)
 
720 and above
 
Below 720
 
No FICO
Available(1)
 
Total
Residential mortgage
 
$
25,954

 
$
5,764

 
$
488

 
$
32,206

Home equity and other consumer loans
 
2,249

 
901

 
144

 
3,294

  Total consumer portfolio
 
$
28,203

 
$
6,665

 
$
632

 
$
35,500

Percentage of total
 
79
%
 
19
%
 
2
%
 
100
%
 
 
(1)
Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes).
 
 
December 31, 2016
 
 
FICO scores
(Dollars in millions)
 
720 and above
 
Below 720
 
No FICO
Available(1)
 
Total
Residential mortgage
 
$
23,598

 
$
5,597

 
$
444

 
$
29,639

Home equity and other consumer loans
 
2,372

 
977

 
111

 
3,460

  Total consumer portfolio
 
$
25,970

 
$
6,574

 
$
555

 
$
33,099

Percentage of total
 
78
%
 
20
%
 
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, 2017
 
 
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
 
$
31,586

 
$
577

 
$
8

 
$
35

 
$
32,206

Home equity loans
 
2,109

 
226

 
32

 
35

 
2,402

Total consumer portfolio
 
$
33,695

 
$
803

 
$
40

 
$
70

 
$
34,608

Percentage of total
 
98
%
 
2
%
 
—
%
 
—
%
 
100
%
 
 
(1)
Represents loans for which management was not able to obtain refreshed property values.
 
 
December 31, 2016
 
 
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
 
$
28,547

 
$
1,030

 
$
16

 
$
46

 
$
29,639

Home equity loans
 
2,160

 
206

 
41

 
43

 
2,450

Total consumer portfolio
 
$
30,707

 
$
1,236

 
$
57

 
$
89

 
$
32,089

Percentage of total
 
96
%
 
4
%
 
—
%
 
—
%
 
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 June 30, 2017 and December 31, 2016. The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $33 million and $59 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of June 30, 2017 and December 31, 2016, respectively.

(Dollars in millions)
 
June 30, 2017
 
December 31, 2016
Commercial and industrial
 
$
267

 
$
321

Commercial mortgage
 
7

 
9

Construction
 
61

 
—

Total commercial portfolio
 
335

 
330

Residential mortgage
 
231

 
239

Home equity and other consumer loans
 
29

 
30

Total consumer portfolio
 
260

 
269

Total restructured loans
 
$
595

 
$
599
Pre- and Post-Modification Outstanding Recorded Investment Amounts of Troubled Debt Restructurings
The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the three and six months ended June 30, 2017 and 2016:
 
 
For the Three Months Ended June 30, 2017
 
For the Six Months Ended June 30, 2017
(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
 
$
18

 
$
18

 
$
96

 
$
96

Commercial mortgage
 
1

 
1

 
1

 
1

Construction
 
—

 
—

 
61

 
61

Total commercial portfolio
 
19

 
19

 
158

 
158

Residential mortgage
 
4

 
4

 
8

 
8

Home equity and other consumer loans
 
2

 
2

 
2

 
2

Total consumer portfolio
 
6

 
6

 
10

 
10

Total
 
$
25

 
$
25

 
$
168

 
$
168

 
 

(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.
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended June 30, 2016
 
For the Six Months Ended June 30, 2016
(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
 
$
126

 
$
125

 
$
176

 
$
175

Commercial mortgage
 
3

 
3

 
8

 
8

Total commercial portfolio
 
129

 
128

 
184

 
183

Residential mortgage
 
2

 
2

 
6

 
6

Home equity and other consumer loans
 
2

 
2

 
3

 
3

Total consumer portfolio
 
4

 
4

 
9

 
9

Total
 
$
133

 
$
132

 
$
193

 
$
192

 
 

(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
The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the three and six months ended June 30, 2017 and 2016, 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 June 30, 2017
 
For the Six Months Ended June 30, 2017
Commercial and industrial
 
$
17

 
$
19

Commercial mortgage
 
—

 
1

   Total commercial portfolio
 
17

 
20

Residential mortgage
 
—

 
1

 Total consumer portfolio
 
—

 
1

Total
 
$
17

 
$
21


 
 
 
 
 
(Dollars in millions)
 
For the Three Months Ended June 30, 2016
 
For the Six Months Ended June 30, 2016
Commercial and industrial
 
$
10

 
$
11

   Total commercial portfolio
 
10

 
11

Residential mortgage
 
1

 
3

Home equity and other consumer loans
 
1

 
1

 Total consumer portfolio
 
2

 
4

Total
 
$
12

 
$
15
Information about Impaired Loans by Class
The following tables show information about impaired loans by class as of June 30, 2017 and December 31, 2016:
 
 
June 30, 2017
 
 
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
 
$
303

 
$
113

 
$
416

 
$
75

 
$
365

 
$
128

Commercial mortgage
 
43

 
3

 
46

 
1

 
44

 
3

Construction
 
—

 
61

 
61

 
—

 
—

 
61

Total commercial portfolio
 
346

 
177

 
523

 
76

 
409

 
192

Residential mortgage
 
239

 
67

 
306

 
15

 
256

 
78

Home equity and other consumer loans
 
37

 
18

 
55

 
1

 
37

 
28

Total consumer portfolio
 
276

 
85

 
361

 
16

 
293

 
106

Total
 
$
622

 
$
262

 
$
884

 
$
92

 
$
702

 
$
298


 
 
December 31, 2016
 
 
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
 
$
505

 
$
36

 
$
541

 
$
150

 
$
672

 
$
54

Commercial mortgage
 
86

 
9

 
95

 
1

 
8

 
9

Total commercial portfolio
 
591

 
45

 
636

 
151

 
680

 
63

Residential mortgage
 
250

 
75

 
325

 
17

 
295

 
89

Home equity and other consumer loans
 
41

 
20

 
61

 
—

 
11

 
30

Total consumer portfolio
 
291

 
95

 
386

 
17

 
306

 
119

Total
 
$
882

 
$
140

 
$
1,022

 
$
168

 
$
986

 
$
182
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 six months ended June 30, 2017 and 2016 for the commercial and consumer loans portfolio segments.

 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
(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
 
$
419

 
$
—

 
$
139

 
$
—

 
$
447

 
$
4

 
$
74

 
$
2

Commercial mortgage
 
61

 
1

 
15

 
—

 
40

 
1

 
14

 
—

Construction
 
11

 
—

 
—

 
—

 
14

 
—

 
—

 
—

Total commercial portfolio
 
491

 
1

 
154

 
—

 
501

 
5

 
88

 
2

Residential mortgage
 
233

 
2

 
263

 
2

 
235

 
4

 
267

 
4

Home equity and other consumer loans
 
28

 
1

 
31

 
—

 
29

 
1

 
31

 
1

Total consumer portfolio
 
261

 
3

 
294

 
2

 
264

 
5

 
298

 
5

Total
 
$
752

 
$
4

 
$
448

 
$
2

 
$
765

 
$
10

 
$
386

 
$
7



The following table presents loan transfers from held to investment to held for sale and proceeds from
sales of loans during the three and six months ended June 30, 2017 and 2016 for the commercial and consumer loans portfolio segments.
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
(Dollars in millions)
 
Transfers of loans from held for investment to held for sale, net
 
Proceeds from sale
 
Transfers of loans from held for investment to held for sale, net
 
Proceeds from sale
 
Transfers of loans from held for investment to held for sale, net
 
Proceeds from sale
 
Transfers of loans from held for investment to held for sale, net
 
Proceeds from sale
Commercial portfolio
 
$
126

 
$
299

 
$
260

 
$
115

 
$
360

 
$
646

 
$
179

 
$
164

Consumer portfolio
 
—

 
—

 
—

 
—

 
(4
)
 
—

 
—

 
—

Total
 
$
126


$
299


$
260


$
115

 
$
356

 
$
646

 
$
179

 
$
164