Asset Quality (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019
Commercial Lending
Commercial	$	124,695		$	102		$	30		$	85		$	217			$	425								$	125,337
Commercial real estate	28,061			4			1						5				44									28,110
Equipment lease financing	7,069			49			5						54				32									7,155
Total commercial lending	159,825			155			36			85			276				501									160,602
Consumer Lending
Home equity	23,791			58			24						82				669						$	543		25,085
Residential real estate	19,640			140			69			315			524			(b)	315			$	166		1,176			21,821
Automobile	16,376			178			47			18			243				135									16,754
Credit card	7,133			60			37			67			164				11									7,308
Education	3,156			55			34			91			180			(b)										3,336
Other consumer	4,898			15			11			9			35				4									4,937
Total consumer lending	74,994			506			222			500			1,228				1,134			166			1,719			79,241
Total	$	234,819		$	661		$	258		$	585		$	1,504			$	1,635		$	166		$	1,719		$	239,843
Percentage of total loans	97.90		%	.28		%	.11		%	.24		%	.63		%		.68		%	.07		%	.72		%	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 loans totaling $.4 billion and $.5 billion at December 31, 2019 and 2018, respectively, and Education loans totaling $.2 billion at both December 31, 2019 and 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, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans totaling $1.1 billion and $1.2 billion December 31, 2019 and 2018, respectively.

Nonperforming Assets

Table 40: Nonperforming Assets



Dollars in millions	December 31 2019			December 31 2018
Nonperforming loans
Total commercial lending	$	501		$	432
Total consumer lending (a)	1,134			1,262
Total nonperforming loans	1,635			1,694
OREO and foreclosed assets	117			114
Total nonperforming assets	$	1,752		$	1,808
Nonperforming loans to total loans	.68		%	.75		%
Nonperforming assets to total loans, OREO and foreclosed assets	.73		%	.80		%
Nonperforming assets to total assets	.43		%	.47		%
Interest on nonperforming loans (b)
Computed on original terms	$	124		$	123
Recognized prior to nonperforming status	$	17		$	17


(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.

(b)

Amounts are for the year ended.

Commercial Lending Asset Quality Indicators

Table 41: Commercial Lending Asset Quality Indicators (a)



In millions	Pass Rated		Criticized		Total Loans
December 31, 2019
Commercial	$	119,761	$	5,576	$	125,337
Commercial real estate	27,424		686		28,110
Equipment lease financing	6,891		264		7,155
Total commercial lending	$	154,076	$	6,526	$	160,602
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 December 31, 2019 and 2018. We use PD and LGD to rate loans in the commercial lending portfolio.

Home Equity and Residential Real Estate Asset Quality Indicators

Table 42: Asset Quality Indicators for Home Equity and Residential Real Estate Loans



	December 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%	$	366	$	112	$	461	$	116
Greater than or equal to 100% to less than 125%	877		221		1,020		255
Greater than or equal to 90% to less than 100%	1,047		340		1,174		335
Less than 90%	22,068		19,305		22,644		15,922
No LTV ratio available	184		83		145		6
Government insured or guaranteed loans			584				685
Purchased impaired loans	543		1,176		679		1,338
Total loans	$	25,085	$	21,821	$	26,123	$	18,657
Updated FICO Scores
Greater than 660	$	22,245	$	19,341	$	22,996	$	15,956
Less than or equal to 660	2,019		569		2,210		585
No FICO score available	278		151		238		93
Government insured or guaranteed loans			584				685
Purchased impaired loans	543		1,176		679		1,338
Total loans	$	25,085	$	21,821	$	26,123	$	18,657

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

Table 43: Asset Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loans



Dollars in millions	Automobile		Credit Card		Education		Other Consumer
December 31, 2019
FICO score greater than 719	$	9,232	$	3,867	$	1,139	$	1,421
650 to 719	4,577		2,326		197		843
620 to 649	1,001		419		25		132
Less than 620	1,603		544		27		143
No FICO score available or required (a)	341		152		15		27
Total loans using FICO credit metric	16,754		7,308		1,403		2,566
Consumer loans using other internal credit metrics					1,933		2,371
Total loans	$	16,754	$	7,308	$	3,336	$	4,937
Weighted-average updated FICO score (b)	726		724		773		727
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 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, 2019 Dollars in millions	Number of Loans	Pre-TDR Recorded Investment (b)		Principal Forgiveness		Rate Reduction		Other		Total
Total commercial lending	75	$	278			$	11	$	241	$	252
Total consumer lending	14,548	172				97		64		161
Total TDRs	14,623	$	450			$	108	$	305	$	413
During the year ended December 31, 2018 Dollars in millions
Total commercial lending	85	$	272	$	2	$	67	$	179	$	248
Total consumer lending	12,096	163		1		86		63		150
Total TDRs	12,181	$	435	$	3	$	153	$	242	$	398
During the year ended December 31, 2017 Dollars in millions
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


(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, 2019
Impaired loans with an associated allowance
Total commercial lending	$	527	$	386	$	98	$	371
Total consumer lending	702		668		93		753
Total impaired loans with an associated allowance	1,229		1,054		191		1,124
Impaired loans without an associated allowance
Total commercial lending	228		195				276
Total consumer lending	1,022		635				623
Total impaired loans without an associated allowance	1,250		830				899
Total impaired loans	$	2,479	$	1,884	$	191	$	2,023
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 years ended December 31, 2019 and 2018.