Asset Quality (Tables)

9 Months Ended

Sep. 30, 2019

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)
September 30, 2019
Commercial Lending
Commercial	$	123,328		$	82		$	49		$	64		$	195			$	491								$	124,014
Commercial real estate	28,803			3			3						6				75									28,884
Equipment lease financing	7,270			6			4						10				10									7,290
Total commercial lending	159,401			91			56			64			211				576									160,188
Consumer Lending
Home equity	23,631			53			24						77				685						$	578		24,971
Residential real estate	18,867			129			77			302			508			(b)	325			$	166		1,216			21,082
Automobile	15,684			145			36			11			192				128									16,004
Credit card	6,660			56			33			57			146				9									6,815
Education	3,280			56			35			90			181			(b)										3,461
Other consumer	4,818			17			8			8			33				5									4,856
Total consumer lending	72,940			456			213			468			1,137				1,152			166			1,794			77,189
Total	$	232,341		$	547		$	269		$	532		$	1,348			$	1,728		$	166		$	1,794		$	237,377
Percentage of total loans	97.88		%	.23		%	.11		%	.22		%	.56		%		.73		%	.07		%	.76		%	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 September 30, 2019 and December 31, 2018, respectively, and Education loans totaling $.2 billion at both September 30, 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 September 30, 2019 December 31, 2018.

Nonperforming Assets



Dollars in millions	September 30 2019			December 31 2018
Nonperforming loans
Total commercial lending	$	576		$	432
Total consumer lending (a)	1,152			1,262
Total nonperforming loans	1,728			1,694
OREO and foreclosed assets	119			114
Total nonperforming assets	$	1,847		$	1,808
Nonperforming loans to total loans	.73		%	.75		%
Nonperforming assets to total loans, OREO and foreclosed assets	.78		%	.80		%
Nonperforming assets to total assets	.45		%	.47		%


(a)	Excludes most unsecured consumer loans and lines of credit, 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
September 30, 2019
Commercial	$	118,316	$	5,698	$	124,014
Commercial real estate	28,050		834		28,884
Equipment lease financing	7,065		225		7,290
Total commercial lending	$	153,431	$	6,757	$	160,188
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 Rated and Criticized based on the Regulatory classification definitions. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of September 30, 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



	September 30, 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%	$	382	$	123	$	461	$	116
Greater than or equal to 100% to less than 125%	911		228		1,020		255
Greater than or equal to 90% to less than 100%	1,096		340		1,174		335
Less than 90%	21,821		18,384		22,644		15,922
No LTV ratio available	183		218		145		6
Government insured or guaranteed loans			573				685
Purchased impaired loans	578		1,216		679		1,338
Total loans	$	24,971	$	21,082	$	26,123	$	18,657
Updated FICO Scores
Greater than 660	$	22,066	$	18,455	$	22,996	$	15,956
Less than or equal to 660	2,045		547		2,210		585
No FICO score available	282		291		238		93
Government insured or guaranteed loans			573				685
Purchased impaired loans	578		1,216		679		1,338
Total loans	$	24,971	$	21,082	$	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
September 30, 2019
FICO score greater than 719	$	8,444	$	3,989	$	1,184	$	1,452
650 to 719	4,845		1,955		185		755
620 to 649	1,152		325		22		122
Less than 620	1,240		376		22		107
No FICO score available or required (a)	323		170		42		27
Total loans using FICO credit metric	16,004		6,815		1,455		2,463
Consumer loans using other internal credit metrics					2,006		2,393
Total loans	$	16,004	$	6,815	$	3,461	$	4,856
Weighted-average updated FICO score (b)	724		731		775		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 September 30, 2019 Dollars in millions	Number of Loans		Pre-TDR Recorded Investment (b)		Principal Forgiveness		Rate Reduction		Other		Total
Total commercial lending		21	$	97					$	72	$	72
Total consumer lending		3,656	45				$	24	19		43
Total TDRs		3,677	$	142			$	24	$	91	$	115
During the three months ended September 30, 2018 Dollars in millions
Total commercial lending		18	$	115	$	2	$	24	$	81	$	107
Total consumer lending		3,147	45				19		23		42
Total TDRs		3,165	$	160	$	2	$	43	$	104	$	149



			Pre-TDR Recorded Investment (b)		Post-TDR Recorded Investment (c)
During the nine months ended September 30, 2019 Dollars in millions	Number of Loans		Pre-TDR Recorded Investment (b)		Principal Forgiveness		Rate Reduction		Other		Total
Total commercial lending		58	$	233			$	1	$	208	$	209
Total consumer lending		11,009	131				72		51		123
Total TDRs		11,067	$	364			$	73	$	259	$	332
During the nine months ended September 30, 2018 Dollars in millions
Total commercial lending		65	$	145	$	2	$	26	$	105	$	133
Total consumer lending		9,015	129		1		66		52		119
Total TDRs		9,080	$	274	$	3	$	92	$	157	$	252

(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)
September 30, 2019
Impaired loans with an associated allowance
Total commercial lending	$	491	$	375	$	81	$	367
Total consumer lending	734		697		95		775
Total impaired loans with an associated allowance	1,225		1,072		176		1,142
Impaired loans without an associated allowance
Total commercial lending	360		310				297
Total consumer lending	1,045		646				620
Total impaired loans without an associated allowance	1,405		956				917
Total impaired loans	$	2,630	$	2,028	$	176	$	2,059
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 nine months ended September 30, 2019 and the year ended December 31, 2018, respectively.