Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2017

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans and Allowance for Credit Losses, Loans Outstanding

Table 5.1 presents total loans outstanding by portfolio segment and class of financing receivable. Outstanding balances include a total net reduction of $3.9 billion and $4.4 billion at June 30, 2017, andDecember 31, 2016, respectively, for unearned income, net deferred loan fees, and unamortized discounts and premiums.

Table 5.1:Loans Outstanding

(in millions)	Jun 30, 2017		Dec 31, 2016
Commercial:
Commercial and industrial	$	331,113	330,840
Real estate mortgage	130,277		132,491
Real estate construction	25,337		23,916
Lease financing	19,174		19,289
Total commercial	505,901		506,536
Consumer:
Real estate 1-4 family first mortgage	276,566		275,579
Real estate 1-4 family junior lien mortgage	42,747		46,237
Credit card	35,305		36,700
Automobile	57,958		62,286
Other revolving credit and installment	38,946		40,266
Total consumer	451,522		461,068
Total loans	$	957,423	967,604

Our foreign loans are reported by respective class of financing receivable in the table above. Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign primarily based on whether the borrower’s primary address is outside of the United States. Table 5.2 presents total commercial foreign loans outstanding by class of financing receivable.

Table 5.2:Commercial Foreign Loans Outstanding

(in millions)	Jun 30, 2017		Dec 31, 2016
Commercial foreign loans:
Commercial and industrial	$	57,825	55,396
Real estate mortgage	8,359		8,541
Real estate construction	585		375
Lease financing	1,092		972
Total commercial foreign loans	$	67,861	65,284

Loans and Allowance for Credit Losses, Significant Activity

Table 5.3 summarizes the proceeds paid or received for purchases and sales of loans and transfers from loans held for investment to mortgages/loans held for sale at lower of cost or fair value. This loan activity also includes participating interests, whereby we receive or transfer a portion of a loan. The table excludes PCI loans and loans for which we have elected the fair value option, including loans originated for sale because their loan activity normally does not impact the allowance for credit losses. 

Table 5.3:Loan Purchases, Sales, and Transfers

	2017							2016
(in millions)	Commercial			Consumer (1)		Total		Commercial (2)		Consumer (1)		Total
Quarter ended June 30,
Purchases	$	810		—		810		2,607		—		2,607
Sales	(1,052		)	(84	)	(1,136	)	(385	)	(407	)	(792	)
Transfers to MHFS/LHFS	(179		)	(1	)	(180	)	(69	)	(1	)	(70	)
Six months ended June 30,
Purchases	$	1,969		2		1,971		27,253		—		27,253
Sales	(1,339		)	(146	)	(1,485	)	(608	)	(679	)	(1,287	)
Transfers to MHFS/LHFS	(658		)	(1	)	(659	)	(101	)	(4	)	(105	)

(1) Excludes activity in government insured/guaranteed real estate 1-4 family first mortgage loans. As servicer, we are able to buy delinquent insured/guaranteed loans out of the Government National Mortgage Association (GNMA) pools, and manage and/or resell them in accordance with applicable requirements. These loans are predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). Accordingly, these loans have limited impact on the allowance for loan losses.

(2) Purchases include loans and capital leases from the 2016 GE Capital business acquisitions.

Loans and Allowance for Credit Losses, Commitments to Lend

The contractual amount of our unfunded credit commitments, including unissued standby and commercial letters of credit, is summarized by portfolio segment and class of financing receivable in Table 5.4. The table excludes the issued standby and commercial letters of credit and temporary advance arrangements described above.

Table 5.4:Unfunded Credit Commitments

(in millions)	Jun 30, 2017		Dec 31, 2016
Commercial:
Commercial and industrial	$	319,058	319,662
Real estate mortgage	7,601		7,833
Real estate construction	16,728		18,840
Lease financing	11		16
Total commercial	343,398		346,351
Consumer:
Real estate 1-4 family first mortgage	35,685		33,498
Real estate 1-4 family junior lien mortgage	40,044		41,431
Credit card	106,329		101,895
Other revolving credit and installment	27,541		28,349
Total consumer	209,599		205,173
Total unfunded credit commitments	$	552,997	551,524

Loans and Allowance for Credit Losses, Allowance for Credit Losses

Table 5.5 presents the allowance for credit losses, which consists of the allowance for loan losses and the allowance for unfunded credit commitments.

Table 5.5:Allowance for Credit Losses

	Quarter ended June 30,					Six months ended June 30,
(in millions)	2017			2016		2017		2016
Balance, beginning of period	$	12,287		12,668		12,540		12,512
Provision for credit losses	555			1,074		1,160		2,160
Interest income on certain impaired loans (1)	(46		)	(51	)	(94	)	(99	)
Loan charge-offs:
Commercial:
Commercial and industrial	(161		)	(437	)	(414	)	(786	)
Real estate mortgage	(8		)	(3	)	(13	)	(6	)
Real estate construction	—			(1	)	—		(1	)
Lease financing	(13		)	(17	)	(20	)	(21	)
Total commercial	(182		)	(458	)	(447	)	(814	)
Consumer:
Real estate 1-4 family first mortgage	(55		)	(123	)	(124	)	(260	)
Real estate 1-4 family junior lien mortgage	(62		)	(133	)	(155	)	(266	)
Credit card	(379		)	(320	)	(746	)	(634	)
Automobile	(212		)	(176	)	(467	)	(387	)
Other revolving credit and installment	(185		)	(163	)	(374	)	(338	)
Total consumer	(893		)	(915	)	(1,866	)	(1,885	)
Total loan charge-offs	(1,075		)	(1,373	)	(2,313	)	(2,699	)
Loan recoveries:
Commercial:
Commercial and industrial	83			69		165		145
Real estate mortgage	14			23		44		55
Real estate construction	4			4		12		12
Lease financing	6			5		8		8
Total commercial	107			101		229		220
Consumer:
Real estate 1-4 family first mortgage	71			109		133		198
Real estate 1-4 family junior lien mortgage	66			71		136		130
Credit card	59			50		117		102
Automobile	86			86		174		170
Other revolving credit and installment	31			32		64		69
Total consumer	313			348		624		669
Total loan recoveries	420			449		853		889
Net loan charge-offs	(655		)	(924	)	(1,460	)	(1,810	)
Other	5			(18	)	—		(14	)
Balance, end of period	$	12,146		12,749		12,146		12,749
Components:
Allowance for loan losses	$	11,073		11,664		11,073		11,664
Allowance for unfunded credit commitments	1,073			1,085		1,073		1,085
Allowance for credit losses	$	12,146		12,749		12,146		12,749
Net loan charge-offs (annualized) as a percentage of average total loans	0.27		%	0.39		0.31		0.39
Allowance for loan losses as a percentage of total loans	1.16			1.22		1.16		1.22
Allowance for credit losses as a percentage of total loans	1.27			1.33		1.27		1.33

(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Loans and Allowance for Credit Losses, Allowance Activity by Portfolio Segment

Table 5.6 summarizes the activity in the allowance for credit losses by our commercial and consumer portfolio segments.

Table 5.6:Allowance Activity by Portfolio Segment

						2017						2016
(in millions)	Commercial			Consumer		Total		Commercial		Consumer		Total
Quarter ended June 30,
Balance, beginning of period	$	7,142		5,145		12,287		7,348		5,320		12,668
Provision (reversal of provision) for credit losses	(97		)	652		555		478		596		1,074
Interest income on certain impaired loans	(14		)	(32	)	(46	)	(10	)	(41	)	(51	)
Loan charge-offs	(182		)	(893	)	(1,075	)	(458	)	(915	)	(1,373	)
Loan recoveries	107			313		420		101		348		449
Net loan charge-offs	(75		)	(580	)	(655	)	(357	)	(567	)	(924	)
Other	5			—		5		(18	)	—		(18	)
Balance, end of period	$	6,961		5,185		12,146		7,441		5,308		12,749
Six months ended June 30,
Balance, beginning of period	$	7,394		5,146		12,540		6,872		5,640		12,512
Provision (reversal of provision) for credit losses	(186		)	1,346		1,160		1,192		968		2,160
Interest income on certain impaired loans	(29		)	(65	)	(94	)	(15	)	(84	)	(99	)
Loan charge-offs	(447		)	(1,866	)	(2,313	)	(814	)	(1,885	)	(2,699	)
Loan recoveries	229			624		853		220		669		889
Net loan charge-offs	(218		)	(1,242	)	(1,460	)	(594	)	(1,216	)	(1,810	)
Other	—			—		—		(14	)	—		(14	)
Balance, end of period	$	6,961		5,185		12,146		7,441		5,308		12,749

Loans and Allowance for Credit Losses, by Impairment Methodology

Table 5.7 disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology.

Table 5.7:Allowance by Impairment Methodology

	Allowance for credit losses				Recorded investment in loans
(in millions)	Commercial		Consumer	Total	Commercial	Consumer	Total
June 30, 2017
Collectively evaluated (1)	$	6,131	3,844	9,975	500,942	421,646	922,588
Individually evaluated (2)	830		1,341	2,171	4,696	15,866	20,562
PCI (3)	—		—	—	263	14,010	14,273
Total	$	6,961	5,185	12,146	505,901	451,522	957,423
December 31, 2016
Collectively evaluated (1)	$	6,392	3,553	9,945	500,487	428,009	928,496
Individually evaluated (2)	1,000		1,593	2,593	5,372	17,005	22,377
PCI (3)	2		—	2	677	16,054	16,731
Total	$	7,394	5,146	12,540	506,536	461,068	967,604

(1) Represents loans collectively evaluated for impairment in accordance with Accounting Standards Codification (ASC) 450-20, Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for non-impaired loans.

(2) Represents loans individually evaluated for impairment in accordance with ASC 310-10, Receivables (formerly FAS 114), and pursuant to amendments by ASU 2010-20 regarding allowance for impaired loans.

(3) Represents the allowance and related loan carrying value determined in accordance with ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly SOP 03-3) and pursuant to amendments by ASU 2010-20 regarding allowance for PCI loans.

Loans and Allowance for Credit Losses, Loans by Credit Quality Indicator

Table 5.8 provides a breakdown of outstanding commercial loans by risk category. Of the $19.0 billion in criticized commercial and industrial loans and $5.2 billion in criticized commercial real estate (CRE) loans at June 30, 2017, $2.6 billion and $664 million, respectively, have been placed on nonaccrual status and written down to net realizable collateral value.

Table 5.8:Commercial Loans by Risk Category

(in millions)	Commercial and industrial		Real estate mortgage	Real estate construction	Lease financing	Total
June 30, 2017
By risk category:
Pass	$	311,963	125,283	25,013	17,970	480,229
Criticized	19,019		4,875	311	1,204	25,409
Total commercial loans (excluding PCI)	330,982		130,158	25,324	19,174	505,638
Total commercial PCI loans (carrying value)	131		119	13	—	263
Total commercial loans	$	331,113	130,277	25,337	19,174	505,901
December 31, 2016
By risk category:
Pass	$	308,166	126,793	23,408	17,899	476,266
Criticized	22,437		5,315	451	1,390	29,593
Total commercial loans (excluding PCI)	330,603		132,108	23,859	19,289	505,859
Total commercial PCI loans (carrying value)	237		383	57	—	677
Total commercial loans	$	330,840	132,491	23,916	19,289	506,536

Loans and Allowance for Credit Losses, Loans by Delinquency Status, Commercial

Table 5.9 provides past due information for commercial loans, which we monitor as part of our credit risk management practices.

Table 5.9:Commercial Loans by Delinquency Status

(in millions)	Commercial and industrial		Real estate mortgage	Real estate construction	Lease financing	Total
June 30, 2017
By delinquency status:
Current-29 days past due (DPD) and still accruing	$	327,614	129,360	25,148	18,970	501,092
30-89 DPD and still accruing	694		166	132	115	1,107
90+ DPD and still accruing	42		2	10	—	54
Nonaccrual loans	2,632		630	34	89	3,385
Total commercial loans (excluding PCI)	330,982		130,158	25,324	19,174	505,638
Total commercial PCI loans (carrying value)	131		119	13	—	263
Total commercial loans	$	331,113	130,277	25,337	19,174	505,901
December 31, 2016
By delinquency status:
Current-29 DPD and still accruing	$	326,765	131,165	23,776	19,042	500,748
30-89 DPD and still accruing	594		222	40	132	988
90+ DPD and still accruing	28		36	—	—	64
Nonaccrual loans	3,216		685	43	115	4,059
Total commercial loans (excluding PCI)	330,603		132,108	23,859	19,289	505,859
Total commercial PCI loans (carrying value)	237		383	57	—	677
Total commercial loans	$	330,840	132,491	23,916	19,289	506,536

Loans and Allowance for Credit Losses, Loans by Delinquency Status, Consumer

Table 5.10 provides the outstanding balances of our consumer portfolio by delinquency status.

Table 5.10:Consumer Loans by Delinquency Status

(in millions)	Real estate 1-4 family first mortgage		Real estate 1-4 family junior lien mortgage	Credit card	Automobile	Other revolving credit and installment	Total
June 30, 2017
By delinquency status:
Current-29 DPD	$	244,862	41,866	34,455	56,470	38,591	416,244
30-59 DPD	1,607		273	254	1,085	130	3,349
60-89 DPD	637		151	185	298	88	1,359
90-119 DPD	269		81	142	100	79	671
120-179 DPD	245		90	268	5	30	638
180+ DPD	1,378		255	1	—	28	1,662
Government insured/guaranteed loans (1)	13,589		—	—	—	—	13,589
Total consumer loans (excluding PCI)	262,587		42,716	35,305	57,958	38,946	437,512
Total consumer PCI loans (carrying value)	13,979		31	—	—	—	14,010
Total consumer loans	$	276,566	42,747	35,305	57,958	38,946	451,522
December 31, 2016
By delinquency status:
Current-29 DPD	$	239,061	45,238	35,773	60,572	39,833	420,477
30-59 DPD	1,904		296	275	1,262	177	3,914
60-89 DPD	700		160	200	330	111	1,501
90-119 DPD	307		102	169	116	93	787
120-179 DPD	323		108	279	5	30	745
180+ DPD	1,661		297	4	1	22	1,985
Government insured/guaranteed loans (1)	15,605		—	—	—	—	15,605
Total consumer loans (excluding PCI)	259,561		46,201	36,700	62,286	40,266	445,014
Total consumer PCI loans (carrying value)	16,018		36	—	—	—	16,054
Total consumer loans	$	275,579	46,237	36,700	62,286	40,266	461,068

(1) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA. Loans insured/guaranteed by the FHA/VA and 90+ DPD totaled $8.5 billion at June 30, 2017, compared with $10.1 billion at December 31, 2016.

Loans and Allowance for Credit Losses, Loans by FICO Score, Consumer

Table 5.11 provides a breakdown of our consumer portfolio by FICO. The June 30, 2017 FICO scores for real estate 1-4 family first and junior lien mortgages reflect a new FICO score version we adopted in first quarter 2017 to monitor and manage those portfolios. In general the impact for us is a shift to higher scores, particularly to the 800+ level, as the new FICO score version utilizes a more refined approach that better distinguishes borrower credit risk. Most of the scored consumer portfolio has an updated FICO of 680 and above, reflecting a strong current borrower credit profile. FICO is not available for certain loan types, or may not be required if we deem it unnecessary due to strong collateral and other borrower attributes. Substantially all loans not requiring a FICO score are securities-based loans originated through retail brokerage, and totaled $8.2 billion at June 30, 2017, and $8.0 billion at December 31, 2016.

Table 5.11:Consumer Loans by FICO

(in millions)	Real estate 1-4 family first mortgage (1)		Real estate 1-4 family junior lien mortgage (1)	Credit card	Automobile	Other revolving credit and installment (1)	Total
June 30, 2017
By FICO:
< 600	$	5,767	1,949	3,282	9,716	892	21,606
600-639	3,917		1,422	2,932	6,468	945	15,684
640-679	7,322		2,689	5,399	8,741	2,068	26,219
680-719	15,579		5,269	7,195	9,676	3,743	41,462
720-759	28,480		6,756	7,544	8,282	5,307	56,369
760-799	54,249		7,792	6,018	6,739	6,481	81,279
800+	127,929		16,015	2,889	8,098	8,744	163,675
No FICO available	5,755		824	46	238	2,608	9,471
FICO not required	—		—	—	—	8,158	8,158
Government insured/guaranteed loans (2)	13,589		—	—	—	—	13,589
Total consumer loans (excluding PCI)	262,587		42,716	35,305	57,958	38,946	437,512
Total consumer PCI loans (carrying value)	13,979		31	—	—	—	14,010
Total consumer loans	$	276,566	42,747	35,305	57,958	38,946	451,522
December 31, 2016
By FICO:
< 600	$	6,720	2,591	3,475	9,934	976	23,696
600-639	5,400		1,917	3,109	6,705	1,056	18,187
640-679	10,975		3,747	5,678	10,204	2,333	32,937
680-719	23,300		6,432	7,382	11,233	4,302	52,649
720-759	38,832		9,413	7,632	8,769	5,869	70,515
760-799	103,608		14,929	6,191	8,164	8,348	141,240
800+	49,508		6,391	2,868	6,856	6,434	72,057
No FICO available	5,613		781	365	421	2,906	10,086
FICO not required	—		—	—	—	8,042	8,042
Government insured/guaranteed loans (2)	15,605		—	—	—	—	15,605
Total consumer loans (excluding PCI)	259,561		46,201	36,700	62,286	40,266	445,014
Total consumer PCI loans (carrying value)	16,018		36	—	—	—	16,054
Total consumer loans	$	275,579	46,237	36,700	62,286	40,266	461,068

(1) The June 30, 2017, amounts reflect updated FICO score version implemented in first quarter 2017.

(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

Loans and Allowance for Credit Losses, Loans by Loan to Value Ratio, Consumer

Table 5.12 shows the most updated LTV and CLTV distribution of the real estate 1-4 family first and junior lien mortgage loan portfolios. We consider the trends in residential real estate markets as we monitor credit risk and establish our allowance for credit losses. In the event of a default, any loss should be limited to the portion of the loan amount in excess of the net realizable value of the underlying real estate collateral value. Certain loans do not have an LTV or CLTV due to industry data availability and portfolios acquired from or serviced by other institutions.

Table 5.12:Consumer Loans by LTV/CLTV

	June 30, 2017				December 31, 2016
(in millions)	Real estate 1-4 family first mortgage by LTV		Real estate 1-4 family junior lien mortgage by CLTV	Total	Real estate 1-4 family first mortgage by LTV	Real estate 1-4 family junior lien mortgage by CLTV	Total
By LTV/CLTV:
0-60%	$	124,277	15,923	140,200	121,430	16,464	137,894
60.01-80%	104,027		13,974	118,001	101,726	15,262	116,988
80.01-100%	16,229		7,827	24,056	15,795	8,765	24,560
100.01-120% (1)	2,334		3,158	5,492	2,644	3,589	6,233
> 120% (1)	981		1,359	2,340	1,066	1,613	2,679
No LTV/CLTV available	1,150		475	1,625	1,295	508	1,803
Government insured/guaranteed loans (2)	13,589		—	13,589	15,605	—	15,605
Total consumer loans (excluding PCI)	262,587		42,716	305,303	259,561	46,201	305,762
Total consumer PCI loans (carrying value)	13,979		31	14,010	16,018	36	16,054
Total consumer loans	$	276,566	42,747	319,313	275,579	46,237	321,816

(1) Reflects total loan balances with LTV/CLTV amounts in excess of 100%. In the event of default, the loss content would generally be limited to only the amount in excess of 100% LTV/CLTV.

(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

Loans and Allowance for Credit Losses, Nonaccrual Loans

Table 5.13 provides loans on nonaccrual status. PCI loans are excluded from this table because they continue to earn interest fromaccretable yield, independent of performance in accordance with their contractual terms.

Table 5.13:Nonaccrual Loans

(in millions)	Jun 30, 2017		Dec 31, 2016
Commercial:
Commercial and industrial	$	2,632	3,216
Real estate mortgage	630		685
Real estate construction	34		43
Lease financing	89		115
Total commercial	3,385		4,059
Consumer:
Real estate 1-4 family first mortgage (1)	4,413		4,962
Real estate 1-4 family junior lien mortgage	1,095		1,206
Automobile	104		106
Other revolving credit and installment	59		51
Total consumer	5,671		6,325
Total nonaccrual loans (excluding PCI)	$	9,056	10,384

(1) Includes MHFS of $140 million and $149 million at June 30, 2017, and December 31, 2016, respectively.

Loans and Allowance for Credit Losses, 90 days or More Past Due and Still Accruing Loans

Table 5.14 shows non-PCI loans 90 days or more past due and still accruing by class for loans not government insured/guaranteed.

Table 5.14:Loans 90 Days or More Past Due and Still Accruing

(in millions)	Jun 30, 2017		Dec 31, 2016
Total (excluding PCI):	$	9,716	11,858
Less: FHA insured/guaranteed by the VA (1)(2)	8,873		10,883
Less: Student loans guaranteed under the Federal Family Education Loan Program (FFELP) (3)	—		3
Total, not government insured/guaranteed	$	843	972
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	42	28
Real estate mortgage	2		36
Real estate construction	10		—
Total commercial	54		64
Consumer:
Real estate 1-4 family first mortgage (2)	145		175
Real estate 1-4 family junior lien mortgage (2)	44		56
Credit card	411		452
Automobile	91		112
Other revolving credit and installment	98		113
Total consumer	789		908
Total, not government insured/guaranteed	$	843	972

(1) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

(2) Includes mortgages held for sale 90 days or more past due and still accruing.

(3) Represents loans whose repayments are largely guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP.

Loans and Allowance for Credit Losses, Impaired Loans

Table 5.15 summarizes key information for impaired loans. Our impaired loans predominantly include loans on nonaccrual status in the commercial portfolio segment and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans generally have estimated losses which are included in the allowance for credit losses. We have impaired loans with no allowance for credit losses when loss content has been previously recognized through charge-offs and we do not anticipate additional charge-offs or losses, or certain loans are currently performing in accordance with their terms and for which no loss has been estimated. Impaired loans exclude PCI loans. Table 5.15 includes trial modifications that totaled $215 million at June 30, 2017, and $299 million at December 31, 2016.

For additional information on our impaired loans and allowance for credit losses, see Note 1 (Summary of Significant Accounting Policies) in our 2016 Form 10-K.

Table 5.15:Impaired Loans Summary

			Recorded investment
(in millions)	Unpaid principal balance (1)		Impaired loans	Impaired loans with related allowance for credit losses	Related allowance for credit losses
June 30, 2017
Commercial:
Commercial and industrial	$	4,401	3,205	2,901	558
Real estate mortgage	1,654		1,337	1,325	238
Real estate construction	105		62	62	11
Lease financing	126		92	92	23
Total commercial	6,286		4,696	4,380	830
Consumer:
Real estate 1-4 family first mortgage	15,256		13,299	8,677	905
Real estate 1-4 family junior lien mortgage	2,273		2,043	1,557	295
Credit card	317		316	316	113
Automobile	152		85	31	4
Other revolving credit and installment	129		123	113	24
Total consumer (2)	18,127		15,866	10,694	1,341
Total impaired loans (excluding PCI)	$	24,413	20,562	15,074	2,171
December 31, 2016
Commercial:
Commercial and industrial	$	5,058	3,742	3,418	675
Real estate mortgage	1,777		1,418	1,396	280
Real estate construction	167		93	93	22
Lease financing	146		119	119	23
Total commercial	7,148		5,372	5,026	1,000
Consumer:
Real estate 1-4 family first mortgage	16,438		14,362	9,475	1,117
Real estate 1-4 family junior lien mortgage	2,399		2,156	1,681	350
Credit card	300		300	300	104
Automobile	153		85	31	5
Other revolving credit and installment	109		102	91	17
Total consumer (2)	19,399		17,005	11,578	1,593
Total impaired loans (excluding PCI)	$	26,547	22,377	16,604	2,593

(1) Excludes the unpaid principal balance for loans that have been fully charged off or otherwise have zero recorded investment.

(2) Includes the recorded investment of $1.4 billion and $1.5 billion at June 30, 2017 and December 31, 2016, respectively, of government insured/guaranteed loans that are predominantly insured by the FHA or guaranteed by the VA and generally do not have an allowance. Impaired loans may also have limited, if any, allowance when the recorded investment of the loan approximates estimated net realizable value as a result of charge-offs prior to a TDR modification.

Loans and Allowance for Credit Losses, Average Recorded Investment in Impaired Loans

Table 5.16 provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans by portfolio segment and class.

Table 5.16:Average Recorded Investment in Impaired Loans

	Quarter ended June 30,						Six months ended June 30,
	2017				2016		2017		2016
(in millions)	Average recorded investment		Recognized interest income		Average recorded investment	Recognized interest income	Average recorded investment	Recognized interest income	Average recorded investment	Recognized interest income
Commercial:
Commercial and industrial	$	3,390	36		3,803	21	3,457	69	3,146	40
Real estate mortgage	1,371		24		1,695	34	1,397	51	1,730	66
Real estate construction	66		2		116	3	75	3	122	5
Lease financing	98		—		93	—	110	—	79	—
Total commercial	4,925		62		5,707	58	5,039	123	5,077	111
Consumer:
Real estate 1-4 family first mortgage	13,602		185		16,278	211	13,866	375	16,595	432
Real estate 1-4 family junior lien mortgage	2,075		31		2,325	33	2,103	62	2,354	67
Credit card	313		9		293	8	308	17	295	17
Automobile	83		3		94	3	83	6	98	6
Other revolving credit and installment	114		2		84	2	110	4	80	3
Total consumer	16,187		230		19,074	257	16,470	464	19,422	525
Total impaired loans (excluding PCI)	$	21,112	292		24,781	315	21,509	587	24,499	636
Interest income:
Cash basis of accounting			$	77		92		155		187
Other (1)			215			223		432		449
Total interest income			$	292		315		587		636

(1) Includes interest recognized on accruing TDRs, interest recognized related to certain impaired loans which have an allowance calculated using discounting, and amortization of purchase accounting adjustments related to certain impaired loans.

Loans and Allowance for Credit Losses, Troubled Debt Restructurings, Modification by Type

Table 5.17 summarizes our TDR modifications for the periods presented by primary modification type and includes the financial effects of these modifications. For those loans that modify more than once, the table reflects each modification that occurred during the period. Loans that both modify and pay off within the period, as well as changes in recorded investment during the period for loans modified in prior periods, are not included in the table.

Table 5.17:TDR Modifications

	Primary modification type (1)							Financial effects of modifications
(in millions)	Principal (2)		Interest rate reduction	Other concessions (3)		Total		Charge- offs (4)	Weighted average interest rate reduction		Recorded investment related to interest rate reduction (5)
Quarter ended June 30, 2017
Commercial:
Commercial and industrial	$	17	13	914		944		29	0.88	%	$	13
Real estate mortgage	4		25	137		166		13	1.36		25
Real estate construction	—		1	20		21		—	0.61		1
Lease financing	—		—	11		11		—	—		—
Total commercial	21		39	1,082		1,142		42	1.19		39
Consumer:
Real estate 1-4 family first mortgage	74		45	234		353		3	2.55		83
Real estate 1-4 family junior lien mortgage	7		26	21		54		3	2.88		30
Credit card	—		57	—		57		—	12.48		57
Automobile	—		4	20		24		11	5.90		4
Other revolving credit and installment	—		16	1		17		1	7.27		15
Trial modifications (6)	—		—	(27	)	(27	)	—	—		—
Total consumer	81		148	249		478		18	6.07		189
Total	$	102	187	1,331		1,620		60	5.24	%	$	228
Quarter ended June 30, 2016
Commercial:
Commercial and industrial	$	—	35	697		732		137	2.29	%	$	35
Real estate mortgage	—		29	135		164		—	1.30		28
Real estate construction	—		14	18		32		—	1.05		14
Lease financing	—		—	—		—		—	—		—
Total commercial	—		78	850		928		137	1.70		77
Consumer:
Real estate 1-4 family first mortgage	92		78	314		484		12	2.63		138
Real estate 1-4 family junior lien mortgage	6		27	33		66		11	3.11		33
Credit card	—		41	—		41		—	11.98		41
Automobile	1		3	14		18		8	6.40		3
Other revolving credit and installment	—		8	2		10		—	6.99		8
Trial modifications (6)	—		—	17		17		—	—		—
Total consumer	99		157	380		636		31	4.64		223
Total	$	99	235	1,230		1,564		168	3.88	%	$	300

	Primary modification type (1)							Financial effects of modifications
(in millions)	Principal (2)		Interest rate reduction	Other concessions (3)		Total		Charge- offs (4)	Weighted average interest rate reduction		Recorded investment related to interest rate reduction (5)
Six months ended June 30, 2017
Commercial:
Commercial and industrial	$	17	19	1,842		1,878		94	0.86	%	$	19
Real estate mortgage	4		39	318		361		13	1.23		39
Real estate construction	—		1	23		24		—	0.69		1
Lease financing	—		—	14		14		—	—		—
Total commercial	21		59	2,197		2,277		107	1.10		59
Consumer:
Real estate 1-4 family first mortgage	148		117	525		790		12	2.58		186
Real estate 1-4 family junior lien mortgage	20		47	44		111		9	2.91		54
Credit card	—		114	—		114		—	12.35		114
Automobile	1		7	32		40		18	6.14		7
Other revolving credit and installment	—		27	4		31		1	7.28		26
Trial modifications (6)	—		—	(44	)	(44	)	—	—		—
Total consumer	169		312	561		1,042		40	5.89		387
Total	$	190	371	2,758		3,319		147	5.25	%	$	446
Six months ended June 30, 2016
Commercial:
Commercial and industrial	$	42	113	1,329		1,484		243	2.02	%	$	113
Real estate mortgage	—		53	294		347		—	1.22		52
Real estate construction	—		14	62		76		—	1.05		14
Lease financing	—		—	4		4		—	—		—
Total commercial	42		180	1,689		1,911		243	1.71		179
Consumer:
Real estate 1-4 family first mortgage	188		143	764		1,095		25	2.72		257
Real estate 1-4 family junior lien mortgage	12		56	60		128		21	3.01		67
Credit card	—		85	—		85		—	11.96		85
Automobile	1		7	29		37		16	6.47		7
Other revolving credit and installment	—		16	5		21		1	6.53		16
Trial modifications (6)	—		—	32		32		—	—		—
Total consumer	201		307	890		1,398		63	4.79		432
Total	$	243	487	2,579		3,309		306	3.88	%	$	611

(1) Amounts represent the recorded investment in loans after recognizing the effects of the TDR, if any. TDRs may have multiple types of concessions, but are presented only once in the first modification type based on the order presented in the table above. The reported amounts include loans remodified of $602 million and $301 million for the quarters ended June 30, 2017 and 2016, and $1.3 billion and $649 million, for the first half of 2017 and 2016, respectively.

(2) Principal modifications include principal forgiveness at the time of the modification, contingent principal forgiveness granted over the life of the loan based on borrower performance, and principal that has been legally separated and deferred to the end of the loan, with a zero percent contractual interest rate.

(3) Other concessions include loans discharged in bankruptcy, loan renewals, term extensions and other interest and noninterest adjustments, but exclude modifications that also forgive principal and/or reduce the contractual interest rate.

(4) Charge-offs include write-downs of the investment in the loan in the period it is contractually modified. The amount of charge-off will differ from the modification terms if the loan has been charged down prior to the modification based on our policies. In addition, there may be cases where we have a charge-off/down with no legal principal modification. Modifications resulted in legally forgiving principal (actual, contingent or deferred) of $10 million and $19 million for the quarters ended June 30, 2017 and 2016, and $19 million and $38 million for the first half of 2017 and 2016, respectively.

(5) Reflects the effect of reduced interest rates on loans with an interest rate concession as one of their concession types, which includes loans reported as a principal primary modification type that also have an interest rate concession.

(6) Trial modifications are granted a delay in payments due under the original terms during the trial payment period. However, these loans continue to advance through delinquency status and accrue interest according to their original terms. Any subsequent permanent modification generally includes interest rate related concessions; however, the exact concession type and resulting financial effect are usually not known until the loan is permanently modified. Trial modifications for the period are presented net of previously reported trial modifications that became permanent in the current period.

Loans and Allowance for Credit Losses, Troubled Debt Restructuring, Current Defaults

Table 5.18 summarizes permanent modification TDRs that have defaulted in the current period within 12 months of their permanent modification date. We are reporting these defaulted TDRs based on a payment default definition of 90 days past due for the commercial portfolio segment and 60 days past due for the consumer portfolio segment.

Table 5.18:Defaulted TDRs

	Recorded investment of defaults
	Quarter ended June 30,			Six months ended June 30,
(in millions)	2017		2016	2017	2016
Commercial:
Commercial and industrial	$	30	20	92	45
Real estate mortgage	10		31	31	51
Real estate construction	—		1	—	3
Total commercial	40		52	123	99
Consumer:
Real estate 1-4 family first mortgage	26		30	51	61
Real estate 1-4 family junior lien mortgage	5		4	9	9
Credit card	17		13	32	26
Automobile	4		3	7	6
Other revolving credit and installment	1		1	2	2
Total consumer	53		51	101	104
Total	$	93	103	224	203

Loans and Allowance for Credit Losses, Purchased Credit Impaired Loans, Loans Outstanding

Table 5.19 presents PCI loans net of any remaining purchase accounting adjustments. Real estate 1-4 family first mortgage PCI loans are predominantly Pick-a-Pay loans.

Table 5.19:PCI Loans

(in millions)	Jun 30, 2017		Dec 31, 2016
Commercial:
Commercial and industrial	$	131	237
Real estate mortgage	119		383
Real estate construction	13		57
Total commercial	263		677
Consumer:
Real estate 1-4 family first mortgage	13,979		16,018
Real estate 1-4 family junior lien mortgage	31		36
Total consumer	14,010		16,054
Total PCI loans (carrying value)	$	14,273	16,731
Total PCI loans (unpaid principal balance)	$	20,928	24,136

Loans and Allowance for Credit Losses, Purchased Credit Impaired Loans, Accretable Yield

The change in the accretable yield related to PCI loans since the merger with Wachovia is presented in Table 5.20. Changes during the first half of 2017 reflect an expectation, as a result of our quarterly evaluation of PCI cash flows, that prepayment of modified Pick-a-Pay loans will increase over their estimated weighted-average life and that expected loss has decreased as a result of reduced loan to value ratios and sustained higher housing prices. Second quarter 2017 reflects a $309 million gain on the sale of $569 million Pick-a-Pay PCI loans.

Table 5.20:Change in Accretable Yield

(in millions)	Quarter ended June 30, 2017			Six months ended June 30, 2017		2009-2016
Balance, beginning of period	$	10,315		11,216		10,447
Change in accretable yield due to acquisitions	—			2		159
Accretion into interest income (1)	(374		)	(731	)	(15,577	)
Accretion into noninterest income due to sales (2)	(309		)	(334	)	(467	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows	—			406		10,955
Changes in expected cash flows that do not affect nonaccretable difference (3)	(263		)	(1,190	)	5,699
Balance, end of period	$	9,369		9,369		11,216

(1) Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.

(2) Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.

(3) Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, changes in interest rates on variable rate PCI loans and sales to third parties.

Loans and Allowance for Credit Losses, Purchased Credit Impaired Loans by Credit Quality Indicator

Table 5.21 provides a breakdown of commercial PCI loans by risk category.

Table 5.21:Commercial PCI Loans by Risk Category

(in millions)	Commercial and industrial		Real estate mortgage	Real estate construction	Total
June 30, 2017
By risk category:
Pass	$	7	84	4	95
Criticized	124		35	9	168
Total commercial PCI loans	$	131	119	13	263
December 31, 2016
By risk category:
Pass	$	92	263	47	402
Criticized	145		120	10	275
Total commercial PCI loans	$	237	383	57	677

Loans and Allowance for Credit Losses, Purchased Credit Impaired Loans by Delinquency Status, Commercial

Table 5.22 provides past due information for commercial PCI loans.

Table 5.22:Commercial PCI Loans by Delinquency Status

(in millions)	Commercial and industrial		Real estate mortgage	Real estate construction	Total
June 30, 2017
By delinquency status:
Current-29 DPD and still accruing	$	129	108	13	250
30-89 DPD and still accruing	2		—	—	2
90+ DPD and still accruing	—		11	—	11
Total commercial PCI loans	$	131	119	13	263
December 31, 2016
By delinquency status:
Current-29 DPD and still accruing	$	235	353	48	636
30-89 DPD and still accruing	2		10	—	12
90+ DPD and still accruing	—		20	9	29
Total commercial PCI loans	$	237	383	57	677

Loans and Allowance for Credit Losses, Purchased Credit Impaired Loans by Delinquency Status, Consumer

Table 5.23 provides the delinquency status of consumer PCI loans.

Table 5.23:Consumer PCI Loans by Delinquency Status

	June 30, 2017				December 31, 2016
(in millions)	Real estate 1-4 family first mortgage		Real estate 1-4 family junior lien mortgage	Total	Real estate 1-4 family first mortgage	Real estate 1-4 family junior lien mortgage	Total
By delinquency status:
Current-29 DPD and still accruing	$	14,524	158	14,682	16,095	171	16,266
30-59 DPD and still accruing	1,229		5	1,234	1,488	7	1,495
60-89 DPD and still accruing	574		3	577	668	2	670
90-119 DPD and still accruing	224		1	225	233	2	235
120-179 DPD and still accruing	155		2	157	238	2	240
180+ DPD and still accruing	1,606		6	1,612	2,081	8	2,089
Total consumer PCI loans (adjusted unpaid principal balance)	$	18,312	175	18,487	20,803	192	20,995
Total consumer PCI loans (carrying value)	$	13,979	31	14,010	16,018	36	16,054

Loans and Allowance for Credit Losses, Purchased Credit Impaired Loans by FICO Score, Consumer

Table 5.24 provides FICO scores forconsumer PCI loans.

Table 5.24:Consumer PCI Loans by FICO

	June 30, 2017 (1)				December 31, 2016
(in millions)	Real estate 1-4 family first mortgage		Real estate 1-4 family junior lien mortgage	Total	Real estate 1-4 family first mortgage	Real estate 1-4 family junior lien mortgage	Total
By FICO:
< 600	$	4,450	42	4,492	4,292	46	4,338
600-639	2,342		22	2,364	3,001	26	3,027
640-679	2,599		30	2,629	3,972	35	4,007
680-719	2,438		32	2,470	3,170	37	3,207
720-759	1,845		25	1,870	1,767	24	1,791
760-799	930		12	942	962	15	977
800+	446		6	452	254	4	258
No FICO available	3,262		6	3,268	3,385	5	3,390
Total consumer PCI loans (adjusted unpaid principal balance)	$	18,312	175	18,487	20,803	192	20,995
Total consumer PCI loans (carrying value)	$	13,979	31	14,010	16,018	36	16,054

(1) June 30, 2017 amounts reflect updated FICO score version implemented in first quarter 2017.

Loans and Allowance for Credit Losses, Purchased Credit Impaired Loans by Loan to Value Ratio, Consumer

Table 5.25 shows the distribution of consumer PCIloans by LTV for real estate 1-4 family first mortgages and byCLTV for real estate 1-4 family junior lien mortgages.

Table 5.25:Consumer PCI Loans by LTV/CLTV

	June 30, 2017				December 31, 2016
(in millions)	Real estate 1-4 family first mortgage by LTV		Real estate 1-4 family junior lien mortgage by CLTV	Total	Real estate 1-4 family first mortgage by LTV	Real estate 1-4 family junior lien mortgage by CLTV	Total
By LTV/CLTV:
0-60%	$	7,316	40	7,356	7,513	38	7,551
60.01-80%	7,604		70	7,674	9,000	76	9,076
80.01-100%	2,750		45	2,795	3,458	54	3,512
100.01-120% (1)	517		14	531	669	18	687
> 120% (1)	124		5	129	161	5	166
No LTV/CLTV available	1		1	2	2	1	3
Total consumer PCI loans (adjusted unpaid principal balance)	$	18,312	175	18,487	20,803	192	20,995
Total consumer PCI loans (carrying value)	$	13,979	31	14,010	16,018	36	16,054

(1) Reflects total loan balances with LTV/CLTV amounts in excess of 100%. In the event of default, the loss content would generally be limited to only the amount in excess of 100% LTV/CLTV.