Asset Quality (Tables)

3 Months Ended

Mar. 31, 2019

The following tables present the delinquency status of our loans and our nonperforming assets at March 31, 2019 and December 31, 2018, respectively.

Table 36: 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)
March 31, 2019
Commercial Lending
Commercial	$	122,448		$	80		$	25		$	71		$	176			$	369								$	122,993
Commercial real estate	28,003			43			1						44				54									28,101
Equipment lease financing	7,252			84			5						89				7									7,348
Total commercial lending	157,703			207			31			71			309				430									158,442
Consumer Lending
Home equity	24,011			59			21						80				763						$	646		25,500
Residential real estate	16,743			153			62			323			538			(b)	339			$	184		1,303			19,107
Automobile	14,467			97			26			10			133				107									14,707
Credit card	6,134			45			28			53			126				7									6,267
Education	3,480			63			38			126			227			(b)										3,707
Other consumer	4,533			10			6			7			23				7									4,563
Total consumer lending	69,368			427			181			519			1,127				1,223			184			1,949			73,851
Total	$	227,071		$	634		$	212		$	590		$	1,436			$	1,653		$	184		$	1,949		$	232,293
Percentage of total loans	97.75		%	.27		%	.09		%	.25		%	.62		%		.71		%	.08		%	.84		%	100.00		%
December 31, 2018
Commercial Lending
Commercial	$	116,300		$	82		$	54		$	52		$	188			$	346								$	116,834
Commercial real estate	28,056			6			3						9				75									28,140
Equipment lease financing	7,229			56			12						68				11									7,308
Total commercial lending	151,585			144			69			52			265				432									152,282
Consumer Lending
Home equity	24,556			66			25						91				797						$	679		26,123
Residential real estate	16,216			135			73			363			571			(b)	350			$	182		1,338			18,657
Automobile	14,165			113			29			12			154				100									14,419
Credit card	6,222			46			29			53			128				7									6,357
Education	3,571			69			41			141			251			(b)										3,822
Other consumer	4,552			12			5			8			25				8									4,585
Total consumer lending	69,282			441			202			577			1,220				1,262			182			2,017			73,963
Total	$	220,867		$	585		$	271		$	629		$	1,485			$	1,694		$	182		$	2,017		$	226,245
Percentage of total loans	97.62		%	.26		%	.12		%	.28		%	.66		%		.75		%	.08		%	.89		%	100.00		%


(a)	Amounts in table represent recorded investment and exclude loans held for sale. 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 $.4 billion and $.5 billion at March 31, 2019 and December 31, 2018, respectively, and Education loans totaling $.2 billion at both March 31, 2019 and December 31, 2018.


(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 at both March 31, 2019 December 31, 2018.

Nonperforming Assets

Table 37: Nonperforming Assets



Dollars in millions	March 31 2019			December 31 2018
Nonperforming loans
Total commercial lending	$	430		$	432
Total consumer lending (a)	1,223			1,262
Total nonperforming loans	1,653			1,694
OREO and foreclosed assets	132			114
Total nonperforming assets	$	1,785		$	1,808
Nonperforming loans to total loans	.71		%	.75		%
Nonperforming assets to total loans, OREO and foreclosed assets	.77		%	.80		%
Nonperforming assets to total assets	.45		%	.47		%


(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.

Commercial Lending Asset Quality Indicators

Table 38: Commercial Lending Asset Quality Indicators (a)



In millions	Pass Rated		Criticized		Total Loans
March 31, 2019
Commercial	$	117,366	$	5,627	$	122,993
Commercial real estate	27,251		850		28,101
Equipment lease financing	7,206		142		7,348
Total commercial lending	$	151,823	$	6,619	$	158,442
December 31, 2018
Commercial	$	111,276	$	5,558	$	116,834
Commercial real estate	27,682		458		28,140
Equipment lease financing	7,180		128		7,308
Total commercial lending	$	146,138	$	6,144	$	152,282


(a)	Loans are classified as Pass and Criticized based on the Regulatory Classification definitions. The Criticized classification includes loans that were rated Special Mention, Substandard or Doubtful as of March 31, 2019 and December 31, 2018. We use probability of default and loss given default to rate loans in the commercial lending portfolio.

Home Equity and Residential Real Estate Asset Quality Indicators

Table 39: Asset Quality Indicators for Home Equity and Residential Real Estate Loans



	March 31, 2019				December 31, 2018
	Home equity		Residential real estate		Home equity		Residential real estate
In millions
Current estimated LTV ratios
Greater than or equal to 125%	$	464	$	119	$	461	$	116
Greater than or equal to 100% to less than 125%	1,012		261		1,020		255
Greater than or equal to 90% to less than 100%	1,201		358		1,174		335
Less than 90%	22,014		16,337		22,644		15,922
No LTV ratio available	163		71		145		6
Government insured or guaranteed loans			658				685
Purchased impaired loans	646		1,303		679		1,338
Total loans	$	25,500	$	19,107	$	26,123	$	18,657
Updated FICO Scores
Greater than 660	$	22,378	$	16,396	$	22,996	$	15,956
Less than or equal to 660	2,207		602		2,210		585
No FICO score available	269		148		238		93
Government insured or guaranteed loans			658				685
Purchased impaired loans	646		1,303		679		1,338
Total loans	$	25,500	$	19,107	$	26,123	$	18,657

Asset Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loans

Table 40: Asset Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loans




Dollars in millions	Automobile		Credit Card		Education		Other Consumer
March 31, 2019
FICO score greater than 719	$	7,694	$	3,753	$	1,245	$	1,306
650 to 719	4,452		1,781		192		678
620 to 649	1,071		284		25		111
Less than 620	1,191		336		26		109
No FICO score available or required (a)	299		113		46		25
Total loans using FICO credit metric	14,707		6,267		1,534		2,229
Consumer loans using other internal credit metrics					2,173		2,334
Total loans	$	14,707	$	6,267	$	3,707	$	4,563
Weighted-average updated FICO score (b)	723		733		774		731
December 31, 2018
FICO score greater than 719	$	7,740	$	3,809	$	1,240	$	1,280
650 to 719	4,365		1,759		194		641
620 to 649	1,007		280		26		106
Less than 620	1,027		332		24		105
No FICO score available or required (a)	280		177		57		25
Total loans using FICO credit metric	14,419		6,357		1,541		2,157
Consumer loans using other internal credit metrics					2,281		2,428
Total loans	$	14,419	$	6,357	$	3,822	$	4,585
Weighted-average updated FICO score (b)	726		733		774		732

(a)

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 category and, when necessary, takes actions to mitigate the credit risk.


(b)	Weighted-average updated FICO score excludes accounts with no FICO score available or required.

Financial Impact and TDRs by Concession Type

Table 41: Financial Impact and TDRs by Concession Type (a)



			Pre-TDR Recorded Investment (b)		Post-TDR Recorded Investment (c)
During the three months ended March 31, 2019 Dollars in millions	Number of Loans		Pre-TDR Recorded Investment (b)		Principal Forgiveness	Rate Reduction		Other		Total
Total commercial lending		22	$	105				$	109	$	109
Total consumer lending		3,814	42			$	24	16		40
Total TDRs		3,836	$	147		$	24	$	125	$	149
During the three months ended March 31, 2018 Dollars in millions
Total commercial lending		32	$	10		$	1	$	7	$	8
Total consumer lending		2,979	49			30		16		46
Total TDRs		3,011	$	59		$	31	$	23	$	54


(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 42: Impaired Loans



In millions	Unpaid Principal Balance		Recorded Investment		Associated Allowance		Average Recorded Investment (a)
March 31, 2019
Impaired loans with an associated allowance
Total commercial lending	$	481	$	383	$	87	$	349
Total consumer lending	855		808		130		813
Total impaired loans with an associated allowance	1,336		1,191		217		1,162
Impaired loans without an associated allowance
Total commercial lending	358		263				295
Total consumer lending	1,014		604				614
Total impaired loans without an associated allowance	1,372		867				909
Total impaired loans	$	2,708	$	2,058	$	217	$	2,071
December 31, 2018
Impaired loans with an associated allowance
Total commercial lending	$	440	$	315	$	73	$	349
Total consumer lending	863		817		136		904
Total impaired loans with an associated allowance	1,303		1,132		209		1,253
Impaired loans without an associated allowance
Total commercial lending	413		326				294
Total consumer lending	1,042		625				645
Total impaired loans without an associated allowance	1,455		951				939
Total impaired loans	$	2,758	$	2,083	$	209	$	2,192


(a)	Average recorded investment is for the three months ended March 31, 2019 and the year ended December 31, 2018, respectively.