Asset Quality (Tables)

12 Months Ended

Dec. 31, 2017

Table 39: Analysis of Loan Portfolio (a)



	Accruing
Dollars in millions	Current or Less Than 30 Days Past Due			30-59 Days Past Due			60-89 Days Past Due			90 Days Or More Past Due			Total Past Due (b)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (c)			Purchased Impaired Loans			Total Loans (d)
December 31, 2017
Commercial Lending
Commercial	$	109,989		$	45		$	25		$	39		$	109			$	429								$	110,527
Commercial real estate	28,826			27			2						29				123									28,978
Equipment lease financing	7,914			17			1						18				2									7,934
Total commercial lending	146,729			89			28			39			156				554									147,439
Consumer Lending
Home equity	26,561			78			26						$	104			818						$	881		28,364
Residential real estate	14,389			151			74			486			711			(b)	400			$	197		1,515			17,212
Credit card	5,579			43			26			45			114				6									5,699
Other consumer
Automobile	12,697			79			20			8			107				76									12,880
Education and other	8,525			105			64			159			328			(b)	11									8,864
Total consumer lending	67,751			456			210			698			1,364				1,311			197			2,396			73,019
Total	$	214,480		$	545		$	238		$	737		$	1,520			$	1,865		$	197		$	2,396		$	220,458
Percentage of total loans	97.29		%	.25		%	.11		%	.33		%	.69		%		.85		%	.09		%	1.08		%	100.00		%
December 31, 2016
Commercial Lending
Commercial	$	100,710		$	81		$	20		$	39		$	140			$	496					$	18		$	101,364
Commercial real estate	28,769			5			2						7				143						91			29,010
Equipment lease financing	7,535			29			1						30				16									7,581
Total commercial lending	137,014			115			23			39			177				655						109			137,955
Consumer Lending
Home equity	27,820			64			30						94				914						1,121			29,949
Residential real estate	12,425			159			68			500			727			(b)	501			$	219		1,726			15,598
Credit card	5,187			33			21			37			91				4									5,282
Other consumer
Automobile	12,257			51			12			5			68				55									12,380
Education and other	9,235			140			78			201			419			(b)	15									9,669
Total consumer lending	66,924			447			209			743			1,399				1,489			219			2,847			72,878
Total	$	203,938		$	562		$	232		$	782		$	1,576			$	2,144		$	219		$	2,956		$	210,833
Percentage of total loans	96.73		%	.27		%	.11		%	.37		%	.75		%		1.02		%	.10		%	1.40		%	100.00		%


(a)	Amounts in table represent recorded investment and exclude loans held for sale. Recorded investment in a loan includes the unpaid principal balance plus net accounting adjustments, less any charge-offs. Recorded investment does not include any associated valuation allowance.

(b)

Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans. Past due loan amounts include government insured or guaranteed Residential real estate mortgages totaling $.6 billion at both December 31, 2017 and December 31, 2016, and Education and other consumer loans totaling $.3 billion and $.4 billion at December 31, 2017 and December 31, 2016, respectively.


(c)	Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies. Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population.


(d)	Net of unearned income, net deferred loan fees, unamortized discounts and premiums, and purchase discounts and premiums totaling $1.2 billion and $1.3 billion at December 31, 2017 and December 31, 2016, respectively.

Nonperforming Assets

Table 40: Nonperforming Assets



Dollars in millions	December 31 2017			December 31 2016
Nonperforming loans
Total commercial lending	$	554		$	655
Total consumer lending (a)	1,311			1,489
Total nonperforming loans	1,865			2,144
OREO, foreclosed and other assets	170			230
Total nonperforming assets	$	2,035		$	2,374
Nonperforming loans to total loans	.85		%	1.02		%
Nonperforming assets to total loans, OREO, foreclosed and other assets	.92		%	1.12		%
Nonperforming assets to total assets	.53		%	.65		%
Interest on nonperforming loans (b)
Computed on original terms	$	114		$	111
Recognized prior to nonperforming status	$	19		$	21


(a)	Excludes most consumer loans and lines of credit not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.


(b)	Amounts are for the year ended.

Commercial Lending Asset Quality Indicators

Table 41: Commercial Lending Asset Quality Indicators (a)



			Criticized Commercial Loans
In millions	Pass Rated		Special Mention (b)		Substandard (c)		Doubtful (d)		Total Loans
December 31, 2017
Commercial	$	105,280	$	1,858	$	3,331	$	58	$	110,527
Commercial real estate	28,380		148		435		15		28,978
Equipment lease financing	7,754		77		102		1		7,934
Total commercial lending	$	141,414	$	2,083	$	3,868	$	74	$	147,439
December 31, 2016
Commercial	$	96,231	$	1,612	$	3,449	$	72	$	101,364
Commercial real estate	28,561		98		327		24		29,010
Equipment lease financing	7,395		89		91		6		7,581
Total commercial lending	$	132,187	$	1,799	$	3,867	$	102	$	137,955


(a)	Loans are classified as “Pass”, “Special Mention”, “Substandard” and “Doubtful” based on the Regulatory Classification definitions. We use PDs and LGDs to rate commercial loans.


(b)	Special Mention rated loans have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects at some future date. These loans do not expose us to sufficient risk to warrant a more adverse classification at the reporting date.


(c)	Substandard rated loans have a well-defined weakness or weaknesses that jeopardize the collection or liquidation of debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.


(d)	Doubtful rated loans possess all the inherent weaknesses of a Substandard loan with the additional characteristics that the weakness makes collection or liquidation in full improbable due to existing facts, conditions, and values.

Home Equity and Residential Real Estate Asset Quality Indicators

Table 42: Asset Quality Indicators for Home Equity and Residential Real Estate Loans – Excluding Purchased Impaired and Government Insured or Guaranteed Loans (a)



	Home Equity				Residential Real Estate		Total
December 31, 2017 – in millions	1st Liens		2nd Liens		Residential Real Estate		Total
Current estimated LTV ratios
Greater than or equal to 125% and updated FICO scores:
Greater than 660	$	108	$	385	$	126	$	619
Less than or equal to 660 (b)	21		64		23		108
Missing FICO	1		5		1		7
Greater than or equal to 100% to less than 125% and updated FICO scores:
Greater than 660	300		842		253		1,395
Less than or equal to 660 (b)	46		143		45		234
Missing FICO	2		9		5		16
Greater than or equal to 90% to less than 100% and updated FICO scores:
Greater than 660	331		890		324		1,545
Less than or equal to 660	55		134		55		244
Missing FICO	2		9		4		15
Less than 90% and updated FICO scores:
Greater than 660	13,954		8,066		13,445		35,465
Less than or equal to 660	1,214		774		507		2,495
Missing FICO	42		57		95		194
Total home equity and residential real estate loans	$	16,076	$	11,378	$	14,883	$	42,337



	Home Equity				Residential Real Estate		Total
December 31, 2016 – in millions	1st Liens		2nd Liens		Residential Real Estate		Total
Current estimated LTV ratios
Greater than or equal to 125% and updated FICO scores:
Greater than 660	$	161	$	629	$	174	$	964
Less than or equal to 660 (b)	32		110		35		177
Missing FICO	1		9		2		12
Greater than or equal to 100% to less than 125% and updated FICO scores:
Greater than 660	394		1,190		345		1,929
Less than or equal to 660 (b)	66		211		76		353
Missing FICO	3		10		7		20
Greater than or equal to 90% to less than 100% and updated FICO scores:
Greater than 660	453		1,100		463		2,016
Less than or equal to 660	77		171		78		326
Missing FICO	1		8		6		15
Less than 90% and updated FICO scores:
Greater than 660	14,047		7,913		11,153		33,113
Less than or equal to 660	1,323		822		586		2,731
Missing FICO	42		55		102		199
Missing LTV and updated FICO scores:
Greater than 600					1		1
Total home equity and residential real estate loans	$	16,600	$	12,228	$	13,028	$	41,856


(a)	Amounts shown represent recorded investment.

(b)

Higher risk loans are defined as loans with both an updated FICO score of less than or equal to 660 and an updated LTV greater than or equal to 100%. The following states had the highest percentage of higher risk loans at December 31, 2017: New Jersey 17%, Pennsylvania 13%, Illinois 13%, Ohio 9%, Maryland 8%, Florida 6%, North Carolina 5% and Michigan 4%. The remainder of the states had lower than 4% of the higher risk loans individually, and collectively they represent approximately 25% of the higher risk loans. The following states had the highest percentage of higher risk loans at December 31, 2016: New Jersey 16%, Pennsylvania 14%, Illinois 12%, Ohio 10%, Florida 7%, Maryland 6%, Michigan 4% and North Carolina 4%. The remainder of the states had lower than 4% of the high risk loans individually, and collectively they represent approximately 27% of the higher risk loans.

Credit Card and Other Consumer Loan Classes Asset Quality Indicators

Table 43: Credit Card and Other Consumer Loan Classes Asset Quality Indicators



	Credit Card				Other Consumer (a)
Dollars in millions	Amount		% of Total Loans Using FICO Credit Metric		Amount		% of Total Loans Using FICO Credit Metric
December 31, 2017
FICO score greater than 719	$	3,457	61	%	$	10,366	63	%
650 to 719	1,596		28	%	4,352		27	%
620 to 649	250		4	%	659		4	%
Less than 620	272		5	%	715		4	%
No FICO score available or required (b)	124		2	%	314		2	%
Total loans using FICO credit metric	5,699		100	%	16,406		100	%
Consumer loans using other internal credit metrics (a)					5,338
Total loan balance	$	5,699			$	21,744
Weighted-average updated FICO score (b)			735				741
December 31, 2016
FICO score greater than 719	$	3,244	61	%	$	10,247	65	%
650 to 719	1,466		28	%	3,873		25	%
620 to 649	215		4	%	552		3	%
Less than 620	229		4	%	632		4	%
No FICO score available or required (b)	128		3	%	489		3	%
Total loans using FICO credit metric	5,282		100	%	15,793		100	%
Consumer loans using other internal credit metrics (a)					6,256
Total loan balance	$	5,282			$	22,049
Weighted-average updated FICO score (b)			736				744

(a)

We use updated FICO scores as an asset quality indicator for non-government guaranteed or insured education loans, automobile loans and other secured and unsecured lines and loans. We use internal credit metrics, such as delinquency status, geography or other factors, as an asset quality indicator for government guaranteed or insured education loans and consumer loans to high net worth individuals, as internal credit metrics are more relevant than FICO scores for these types of loans.

(b)

Credit card loans and other consumer loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan portfolio and, when necessary, takes actions to mitigate the credit risk. Weighted-average updated FICO score excludes accounts with no FICO score available or required.

Financial Impact and TDRs by Concession Type

Table 44: Financial Impact and TDRs by Concession Type (a)



	Number of Loans	Pre-TDR Recorded Investment (b)		Post-TDR Recorded Investment (c)
During the year ended December 31, 2017 Dollars in millions	Number of Loans	Pre-TDR Recorded Investment (b)		Principal Forgiveness		Rate Reduction		Other		Total
Total commercial lending	120	$	293	$	18	$	7	$	227	$	252
Total consumer lending	11,993	248				146		97		243
Total TDRs	12,113	$	541	$	18	$	153	$	324	$	495
During the year ended December 31, 2016 Dollars in millions
Total commercial lending	143	$	524			$	57	$	413	$	470
Total consumer lending	11,262	245				157		76		233
Total TDRs	11,405	$	769			$	214	$	489	$	703
During the year ended December 31, 2015 Dollars in millions
Total commercial lending	158	$	284	$	22	$	4	$	198	$	224
Total consumer lending	10,962	311				190		106		296
Total TDRs	11,120	$	595	$	22	$	194	$	304	$	520


(a)	Impact of partial charge-offs at TDR date are included in this table.


(b)	Represents the recorded investment of the loans as of the quarter end prior to TDR designation, and excludes immaterial amounts of accrued interest receivable.


(c)	Represents the recorded investment of the TDRs as of the end of the quarter in which the TDR occurs, and excludes immaterial amounts of accrued interest receivable.

Impaired Loans

Table 45: Impaired Loans



In millions	Unpaid Principal Balance		Recorded Investment		Associated Allowance		Average Recorded Investment (a)
December 31, 2017
Impaired loans with an associated allowance
Total commercial lending	$	580	$	353	$	76	$	419
Total consumer lending	1,061		1,014		195		1,072
Total impaired loans with an associated allowance	1,641		1,367		271		1,491
Impaired loans without an associated allowance
Total commercial lending	494		366				330
Total consumer lending	1,019		638				648
Total impaired loans without an associated allowance	1,513		1,004				978
Total impaired loans	$	3,154	$	2,371	$	271	$	2,469
December 31, 2016
Impaired loans with an associated allowance
Total commercial lending	$	742	$	477	$	105	$	497
Total consumer lending	1,237		1,185		226		1,255
Total impaired loans with an associated allowance	1,979		1,662		331		1,752
Impaired loans without an associated allowance
Total commercial lending	447		322				365
Total consumer lending	982		608				604
Total impaired loans without an associated allowance	1,429		930				969
Total impaired loans	$	3,408	$	2,592	$	331	$	2,721


(a)	Average recorded investment is for the years ended December 31, 2017 and 2016.