XML 133 R28.htm IDEA: XBRL DOCUMENT

Loans and Related Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2021

Summary Of The Classification Of Portfolio Segments


Commercial						Consumer

• Commercial and industrial						• Residential real estate
• Commercial real estate						• Home equity
• Equipment lease financing						• Automobile
						• Credit card
						• Education
						• Other consumer

Analysis of Loan Portfolio

Table 48: Analysis of Loan Portfolio (a) (b)


	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 (c)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (d)			Total Loans (e)(f)
June 30, 2021
Commercial
Commercial and industrial	$	154,226		$	72		$	27		$	45		$	144			$	930					$	155,300
Commercial real estate	37,453			5			3			2			10				501						37,964
Equipment lease financing	6,354			3			4						7				15						6,376
Total commercial	198,033			80			34			47			161				1,446						199,640
Consumer
Residential real estate	35,099			212			82			337			631			(c)	503			$	613		36,846
Home equity	24,377			44			17						61				626			110			25,174
Automobile	17,239			98			20			3			121				191						17,551
Credit card	6,401			37			24			59			120				7						6,528
Education	2,591			46			22			67			135			(c)							2,726
Other consumer	6,172			31			16			14			61				6						6,239
Total consumer	91,879			468			181			480			1,129				1,333			723			95,064
Total	$	289,912		$	548		$	215		$	527		$	1,290			$	2,779		$	723		$	294,704
Percentage of total loans	98.37		%	0.19		%	0.07		%	0.18		%	0.44		%		0.94		%	0.25		%	100.00		%
December 31, 2020
Commercial
Commercial and industrial	$	131,245		$	106		$	26		$	30		$	162			$	666					$	132,073
Commercial real estate	28,485			6			1						7				224						28,716
Equipment lease financing	6,345			31			5						36				33						6,414
Total commercial	166,075			143			32			30			205				923						167,203
Consumer
Residential real estate	20,945			181			78			319			578			(c)	528			$	509		22,560
Home equity	23,318			50			21						71				645			54			24,088
Automobile	13,863			134			34			12			180				175						14,218
Credit card	6,074			43			30			60			133				8						6,215
Education	2,785			55			29			77			161			(c)							2,946
Other consumer	4,656			14			10			11			35				7						4,698
Total consumer	71,641			477			202			479			1,158				1,363			563			74,725
Total	$	237,716		$	620		$	234		$	509		$	1,363			$	2,286		$	563		$	241,928
Percentage of total loans	98.27		%	0.26		%	0.10		%	0.21		%	0.56		%		0.94		%	0.23		%	100.00		%

(a)Amounts in table represent loans held for investment and do not include any associated valuation allowance.

(b)The accrued interest associated with our loan portfolio totaled $0.8 billion and $0.7 billion at June 30, 2021 and December 31, 2020, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.

(c)Past due loan amounts include government insured or guaranteed Residential real estate loans and Education loans totaling $0.4 billion and $0.1 billion at June 30, 2021. Comparable amounts at December 31, 2020 were $0.4 billion and $0.2 billion.

(d)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.

(e)Includes unearned income, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans totaling $1.0 billion and $1.3 billion at June 30, 2021 and December 31, 2020, respectively.

(f)Collateral dependent loans totaled $1.9 billion and $1.5 billion at June 30, 2021 and December 31, 2020, respectively.

Nonperforming Assets

The following table presents our nonperforming assets as of June 30, 2021 and December 31, 2020 , respectively:

Table 49: Nonperforming Assets


Dollars in millions	June 30 2021			December 31 2020
Nonperforming loans
Commercial	$	1,446		$	923
Consumer (a)	1,333			1,363
Total nonperforming loans (b)	2,779			2,286
OREO and foreclosed assets	39			51
Total nonperforming assets	$	2,818		$	2,337
Nonperforming loans to total loans	0.94		%	0.94		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.96		%	0.97		%
Nonperforming assets to total assets	0.51		%	0.50		%

(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)Nonperforming loans for which there is no related ALLL totaled $1.0 billion at June 30, 2021 and primarily include loans with a fair value of collateral that exceeds the amortized cost basis. The comparable amount at December 31, 2020 was $0.8 billion.

Credit Quality Indicators By Loan Class

The following table presents credit quality indicators for the commercial loan classes:

Table 50: Commercial Credit Quality Indicators (a)


	Term Loans by Origination Year
June 30, 2021 - In millions	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Commercial and industrial
Pass Rated	$	20,084	$	18,350	$	13,729	$	8,737	$	7,980	$	14,429	$	62,892	$	91	$	146,292
Criticized	287		544		933		969		528		1,069		4,650		28		9,008
Total commercial and industrial	20,371		18,894		14,662		9,706		8,508		15,498		67,542		119		155,300
Commercial real estate
Pass Rated	2,124		4,419		8,354		5,547		3,220		8,971		414				33,049
Criticized	131		297		960		677		745		2,055		50				4,915
Total commercial real estate	2,255		4,716		9,314		6,224		3,965		11,026		464				37,964
Equipment lease financing
Pass Rated	636		1,306		1,097		816		616		1,647						6,118
Criticized	21		64		62		74		29		8						258
Total equipment lease financing	657		1,370		1,159		890		645		1,655						6,376
Total commercial	$	23,283	$	24,980	$	25,135	$	16,820	$	13,118	$	28,179	$	68,006	$	119	$	199,640


	Term Loans by Origination Year
December 31, 2020 - In millions	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Commercial and industrial
Pass Rated	$	31,680	$	13,340	$	8,209	$	5,956	$	4,242	$	7,141	$	54,775	$	53	$	125,396
Criticized	339		702		578		334		224		351		4,130		19		6,677
Total commercial and industrial	32,019		14,042		8,787		6,290		4,466		7,492		58,905		72		132,073
Commercial real estate
Pass Rated	3,709		6,268		3,426		2,841		2,341		6,792		218				25,595
Criticized	319		548		148		423		400		1,159		124				3,121
Total commercial real estate	4,028		6,816		3,574		3,264		2,741		7,951		342				28,716
Equipment lease financing
Pass Rated	1,429		1,202		942		738		405		1,350						6,066
Criticized	78		92		86		39		22		31						348
Total equipment lease financing	1,507		1,294		1,028		777		427		1,381						6,414
Total commercial	$	37,554	$	22,152	$	13,389	$	10,331	$	7,634	$	16,824	$	59,247	$	72	$	167,203

(a)Loans in our commercial portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of June 30, 2021 and December 31, 2020.

Residential Real Estate and Home Equity

The following table presents credit quality indicators for the residential real estate loan class:

Table 51: Residential Real Estate Credit Quality Indicators


	Term Loans by Origination Year
June 30, 2021 - In millions	2021		2020		2019		2018		2017		Prior		Total Loans

PNC legacy
Current estimated LTV ratios
Greater than 100%	$	1	$	16	$	58	$	18	$	29	$	194	$	316
Greater than or equal to 80% to 100%	727		157		160		44		63		248		1,399
Less than 80%	5,578		6,464		2,527		704		1,298		4,661		21,232
Government insured or guaranteed loans			10		29		24		35		767		865
Total PNC legacy portfolio	6,306		6,647		2,774		790		1,425		5,870		23,812
Acquired loans
Estimated LTV ratios (a)
Greater than 100%	11		24		3		2		4		23		67
Greater than or equal to 80% to 100%	635		1,407		612		293		286		664		3,897
Less than 80%	1,158		2,094		843		330		414		3,581		8,420
No LTV ratio available	104		313		114		38		4				573
Government insured or guaranteed loans	1		4		14		11		10		37		77
Total acquired loans	1,909		3,842		1,586		674		718		4,305		13,034
Total residential real estate	$	8,215	$	10,489	$	4,360	$	1,464	$	2,143	$	10,175	$	36,846
Updated FICO scores
Greater than or equal to 780	$	4,691	$	7,211	$	2,922	$	832	$	1,361	$	5,170	$	22,187
720 to 779	2,667		2,213		870		287		422		1,838		8,297
660 to 719	252		530		299		163		143		913		2,300
Less than 660	29		110		101		90		99		872		1,301
No FICO score available	575		411		124		57		73		579		1,819
Government insured or guaranteed loans	1		14		44		35		45		803		942
Total residential real estate	$	8,215	$	10,489	$	4,360	$	1,464	$	2,143	$	10,175	$	36,846


	Term Loans by Origination Year
December 31, 2020 - In millions	2020		2019		2018		2017		2016		Prior		Total Loans

Current estimated LTV ratios
Greater than 100%	$	3	$	52	$	26	$	42	$	41	$	160	$	324
Greater than or equal to 80% to 100%	495		422		127		156		124		307		1,631
Less than 80%	7,491		3,656		992		1,706		1,847		3,991		19,683
Government insured or guaranteed loans	7		28		27		38		57		765		922
Total residential real estate	$	7,996	$	4,158	$	1,172	$	1,942	$	2,069	$	5,223	$	22,560
Updated FICO scores
Greater than or equal to 780	$	5,425	$	3,099	$	814	$	1,432	$	1,538	$	2,551	$	14,859
720 to 779	2,268		820		220		340		335		818		4,801
660 to 719	252		161		76		98		92		475		1,154
Less than 660	40		48		33		31		41		485		678
No FICO score available	4		2		2		3		6		129		146
Government insured or guaranteed loans	7		28		27		38		57		765		922
Total residential real estate	$	7,996	$	4,158	$	1,172	$	1,942	$	2,069	$	5,223	$	22,560

(a) LTV ratios, inclusive of CLTV for first lien and certain subordinate lien positions, in the BBVA loan portfolio are calculated on a quarterly basis utilizing the real estate collateral values available at origination. These calculations will be refreshed to update the property values of real estate collateral and calculate an updated current estimated LTV ratio upon conversion of bank systems, which is expected to occur in October 2021. See Note 4 Loans and Related Allowance for Credit Losses included in Item 8 of our 2020 Form 10-K for additional information on how current estimated LTV ratios are calculated in the PNC legacy portfolio.

The following table presents credit quality indicators for the home equity loan class:

Table 52: Home Equity Credit Quality Indicators


	Term Loans by Origination Year
June 30, 2021 - In millions	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans

PNC legacy
Current estimated LTV ratios
Greater than 100%			$	20	$	32	$	9	$	7	$	100	$	418	$	203	$	789
Greater than or equal to 80% to 100%	$	23	176		145		28		19		119		1,081		548		2,139
Less than 80%	205		2,866		1,432		441		652		3,677		6,406		4,149		19,828
Total PNC legacy portfolio	228		3,062		1,609		478		678		3,896		7,905		4,900		22,756
Acquired loans
Estimated LTV ratios (a)
Greater than 100%											3		68				71
Greater than or equal to 80% to 100%	1		5		3		2		1		16		578		1		607
Less than 80%	6		5		6		5		3		90		1,572		3		1,690
No LTV ratio available											4		45		1		50
Total acquired loans	7		10		9		7		4		113		2,263		5		2,418
Total home equity	$	235	$	3,072	$	1,618	$	485	$	682	$	4,009	$	10,168	$	4,905	$	25,174
Updated FICO scores
Greater than or equal to 780	$	132	$	1,905	$	897	$	248	$	436	$	2,469	$	6,028	$	2,310	$	14,425
720 to 779	78		818		434		125		143		779		2,469		1,239		6,085
660 to 719	20		297		222		72		71		410		1,168		690		2,950
Less than 660	3		50		64		38		31		339		412		575		1,512
No FICO score available	2		2		1		2		1		12		91		91		202
Total home equity	$	235	$	3,072	$	1,618	$	485	$	682	$	4,009	$	10,168	$	4,905	$	25,174


	Term Loans by Origination Year
December 31, 2020 - In millions	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans

Current estimated LTV ratios																	.
Greater than 100%	$	8	$	44	$	18	$	15	$	9	$	88	$	580	$	279	$	1,041
Greater than or equal to 80% to 100%	517		320		59		42		25		158		1,781		591		3,493
Less than 80%	2,909		1,636		513		773		660		3,754		6,433		2,876		19,554
Total home equity	$	3,434	$	2,000	$	590	$	830	$	694	$	4,000	$	8,794	$	3,746	$	24,088
Updated FICO scores
Greater than or equal to 780	$	2,019	$	1,094	$	311	$	525	$	449	$	2,467	$	5,382	$	1,480	$	13,727
720 to 779	1,028		558		153		181		145		777		2,137		941		5,920
660 to 719	334		273		86		84		66		402		985		625		2,855
Less than 660	52		74		39		39		33		345		277		620		1,479
No FICO score available	1		1		1		1		1		9		13		80		107
Total home equity	$	3,434	$	2,000	$	590	$	830	$	694	$	4,000	$	8,794	$	3,746	$	24,088

The following table presents credit quality indicators for the automobile, credit card, education and other consumer loan classes:

Table 53: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes


	Term Loans by Origination Year
June 30, 2021 - In millions	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Updated FICO Scores
Automobile
FICO score greater than or equal to 780	$	2,077	$	1,816	$	1,765	$	730	$	345	$	170					$	6,903
720 to 779	1,035		1,304		1,404		697		304		128						4,872
660 to 719	428		827		1,080		606		241		91						3,273
Less than 660	134		380		766		599		243		109						2,231
No FICO score available or required (a)	214		33		14		7		3		1						272
Total automobile	$	3,888	$	4,360	$	5,029	$	2,639	$	1,136	$	499					$	17,551
Credit card
FICO score greater than or equal to 780													$	1,754	$	3	$	1,757
720 to 779													1,805		10		1,815
660 to 719													1,841		25		1,866
Less than 660													912		37		949
No FICO score available or required (a)													137		4		141
Total credit card													$	6,449	$	79	$	6,528
Education
FICO score greater than or equal to 780	$	9	$	66	$	86	$	70	$	55	$	438					$	724
720 to 779	5		31		40		32		23		182						313
660 to 719	2		9		12		12		7		81						123
Less than 660			1		2		2		2		29						36
No FICO score available or required (a)	3		11		9		5		2		1						31
Education loans using FICO credit metric	19		118		149		121		89		731						1,227
Other internal credit metrics											1,499						1,499
Total education	$	19	$	118	$	149	$	121	$	89	$	2,230					$	2,726
Other consumer
FICO score greater than or equal to 780	$	133	$	218	$	201	$	78	$	26	$	45	$	235	$	7	$	943
720 to 779	160		258		259		110		27		28		214		3		1,059
660 to 719	120		198		243		134		29		18		162		1		905
Less than 660	32		81		115		85		19		12		53		1		398
No FICO score available or required (a)	82		9		1		1				1		44				138
Other consumer loans using FICO credit metric	527		764		819		408		101		104		708		12		3,443
Other internal credit metrics	54		36		27		25		26		112		2,496		20		2,796
Total other consumer	$	581	$	800	$	846	$	433	$	127	$	216	$	3,204	$	32	$	6,239


	Term Loans by Origination Year
December 31, 2020 - In millions	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Updated FICO Scores
Automobile
FICO score greater than or equal to 780	$	1,807	$	1,915	$	807	$	452	$	246	$	58					$	5,285
720 to 779	1,098		1,581		789		381		167		44						4,060
660 to 719	617		1,222		684		288		109		31						2,951
Less than 660	192		776		598		240		87		29						1,922
Total automobile	$	3,714	$	5,494	$	2,878	$	1,361	$	609	$	162					$	14,218
Credit card
FICO score greater than or equal to 780													$	1,635	$	3	$	1,638
720 to 779													1,724		11		1,735
660 to 719													1,765		26		1,791
Less than 660													902		51		953
No FICO score available or required (a)													94		4		98
Total credit card													$	6,120	$	95	$	6,215
Education
FICO score greater than or equal to 780	$	34	$	90	$	74	$	59	$	50	$	428					$	735
720 to 779	24		46		38		28		20		190						346
660 to 719	15		15		14		9		6		90						149
Less than 660	3		2		3		2		2		37						49
No FICO score available or required (a)	16		10		6		3				1						36
Education loans using FICO credit metric	92		163		135		101		78		746						1,315
Other internal credit metrics											1,631						1,631
Total education	$	92	$	163	$	135	$	101	$	78	$	2,377					$	2,946
Other consumer
FICO score greater than or equal to 780	$	162	$	187	$	63	$	21	$	5	$	42	$	86	$	1	$	567
720 to 779	197		247		82		22		5		22		123				698
660 to 719	127		210		81		17		3		14		117		1		570
Less than 660	28		86		41		9		2		8		53		1		228
Other consumer loans using FICO credit metric	514		730		267		69		15		86		379		3		2,063
Other internal credit metrics	67		33		37		26		60		75		2,334		3		2,635
Total other consumer	$	581	$	763	$	304	$	95	$	75	$	161	$	2,713	$	6	$	4,698

(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.

Financial Impact and TDRs by Concession Type

Table 54: Financial Impact and TDRs by Concession Type (a)


			Pre-TDR Amortized Cost Basis (b)		Post-TDR Amortized Cost Basis (c)
During the three months ended June 30, 2021 Dollars in millions	Number of Loans				Principal Forgiveness	Rate Reduction		Other		Total
Commercial		11	$	104				$	82	$	82
Consumer		1,386	23			$	12	9		21
Total TDRs		1,397	$	127		$	12	$	91	$	103
During the six months ended June 30, 2021 Dollars in millions
Commercial		30	$	197				$	176	$	176
Consumer		3,482	55			$	28	21		49
Total TDRs		3,512	$	252		$	28	$	197	$	225


			Pre-TDR Amortized Cost Basis (b)		Post-TDR Amortized Cost Basis (c)
During the three months ended June 30, 2020 Dollars in millions	Number of Loans				Principal Forgiveness		Rate Reduction		Other		Total
Commercial		29	$	147	$	33			$	125	$	158
Consumer		3,589	57				$	19	35		54
Total TDRs		3,618	$	204	$	33	$	19	$	160	$	212
During the six months ended June 30, 2020 Dollars in millions
Commercial		42	$	209	$	39			$	162	$	201
Consumer		7,156	93				$	41	45		86
Total TDRs		7,198	$	302	$	39	$	41	$	207	$	287

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

(b) Represents the amortized cost basis of the loans as of the quarter end prior to TDR designation.

Subsequently Defaulted TDRs

Table 55: Subsequently Defaulted TDRs


In millions	2021		2020
Three months ended June 30	$	14	$	22
Six months ended June 30	$	26	$	37

Rollforward of Allowance for Credit Losses

Table 56: Rollforward of Allowance for Credit Losses


	Three months ended June 30												Six months ended June 30
	2021						2020						2021						2020
In millions	Commercial		Consumer		Total		Commercial		Consumer		Total		Commercial		Consumer		Total		Commercial		Consumer		Total
Allowance for loan and lease losses
Beginning balance	$	3,083	$	1,631	$	4,714	$	1,979	$	1,965	$	3,944	$	3,337	$	2,024	$	5,361	$	1,812	$	930	$	2,742
Adoption of ASU 2016-13 (a)																			(304)		767		463
Beginning balance, adjusted	3,083		1,631		4,714		1,979		1,965		3,944		3,337		2,024		5,361		1,508		1,697		3,205
Acquisition PCD reserves	828		287		1,115								828		287		1,115
Charge-offs	(274)		(154)		(428)		(122)		(192)		(314)		(343)		(328)		(671)		(205)		(413)		(618)
Recoveries	34		88		122		15		63		78		52		167		219		39		131		170
Net (charge-offs) (b)	(240)		(66)		(306)		(107)		(129)		(236)		(291)		(161)		(452)		(166)		(282)		(448)
Provision for (recapture of) credit losses	140		66		206		1,508		712		2,220		(64)		(232)		(296)		2,039		1,133		3,172
Other	1				1								2				2		(1)				(1)
Ending balance	$	3,812	$	1,918	$	5,730	$	3,380	$	2,548	$	5,928	$	3,812	$	1,918	$	5,730	$	3,380	$	2,548	$	5,928
Allowance for unfunded lending related commitments (c)
Beginning balance	$	403	$	104	$	507	$	344	$	106	$	450	$	485	$	99	$	584	$	316	$	2	$	318
Adoption of ASU 2016-13 (a)																			53		126		179
Beginning balance, adjusted	403		104		507		344		106		450		485		99		584		369		128		497
Acquisition PCD reserves	43		3		46								43		3		46
Provision for (recapture of) credit losses	87		5		92		204		8		212		5		10		15		179		(14)		165
Ending balance	$	533	$	112	$	645	$	548	$	114	$	662	$	533	$	112	$	645	$	548	$	114	$	662
Allowance for credit losses at June 30 (d)	$	4,345	$	2,030	$	6,375	$	3,928	$	2,662	$	6,590	$	4,345	$	2,030	$	6,375	$	3,928	$	2,662	$	6,590

(a) Represents the impact of adopting ASU 2016-13, Financial Instruments - Credit Losses on January 1, 2020 and our transition from an incurred loss methodology for our reserves to an expected credit loss methodology.

(b) Amounts for the three and six months ended June 30, 2021 included $248 million attributable to BBVA, which primarily represents the charge-off of certain loans previously charged-off by BBVA, which were written up upon acquisition to unpaid principal balance as required by purchase accounting.

(d) Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $138 million and $51 million at June 30, 2021 and June 30, 2020, respectively.