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Loans and ACL
 3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Loans and ACL
Loans and ACL
The following tables present loans and leases HFI by aging category:
March 31, 2018
 
Accruing
 
 
 
 
(Dollars in millions)
 
Current
 
30-89 Days Past Due
 
90 Days Or More Past Due
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
58,844

 
$
31

 
$
—

 
$
257

 
$
59,132

CRE
 
21,420

 
10

 
—

 
67

 
21,497

Lease financing
 
1,872

 
1

 
—

 
13

 
1,886

Retail:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
27,845

 
400

 
420

 
127

 
28,792

Direct
 
11,550

 
55

 
6

 
64

 
11,675

Indirect
 
16,329

 
272

 
5

 
74

 
16,680

Revolving credit
 
2,734

 
21

 
11

 
—

 
2,766

PCI
 
517

 
24

 
48

 
—

 
589

Total
 
$
141,111

 
$
814

 
$
490

 
$
602

 
$
143,017

December 31, 2017
 
Accruing
 
 
 
 
(Dollars in millions)
 
Current
 
30-89 Days Past Due
 
90 Days Or More Past Due
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
58,852

 
$
41

 
$
1

 
$
259

 
$
59,153

CRE
 
21,209

 
8

 
1

 
45

 
21,263

Lease financing
 
1,906

 
4

 
—

 
1

 
1,911

Retail:
 
 

 
 

 
 

 
 

 
 
Residential mortgage
 
27,659

 
472

 
465

 
129

 
28,725

Direct
 
11,756

 
65

 
6

 
64

 
11,891

Indirect
 
16,745

 
412

 
6

 
72

 
17,235

Revolving credit
 
2,837

 
23

 
12

 
—

 
2,872

PCI
 
567

 
27

 
57

 
—

 
651

Total
 
$
141,531

 
$
1,052

 
$
548

 
$
570

 
$
143,701

The following table presents the carrying amount of loans by risk rating. PCI loans are excluded because their related ALLL is determined by loan pool performance and revolving credit loans are excluded as the loans are charged-off rather than reclassifying to nonperforming:
 
 
March 31, 2018
 
December 31, 2017
(Dollars in millions)
 
Commercial & Industrial
 
CRE
 
Lease Financing
 
Commercial & Industrial
 
CRE
 
Lease Financing
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
$
57,844

 
$
21,127

 
$
1,867

 
$
57,700

 
$
20,862

 
$
1,881

Special mention
 
155

 
29

 
2

 
268

 
48

 
6

Substandard-performing
 
876

 
274

 
4

 
926

 
308

 
23

Nonperforming
 
257

 
67

 
13

 
259

 
45

 
1

Total
 
$
59,132

 
$
21,497

 
$
1,886

 
$
59,153

 
$
21,263

 
$
1,911

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Mortgage
 
Direct
 
Indirect
 
Residential Mortgage
 
Direct
 
Indirect
Retail:
 
 
 
 
 
 
 
 
 
 
 
 
Performing
 
$
28,665

 
$
11,611

 
$
16,606

 
$
28,596

 
$
11,827

 
$
17,163

Nonperforming
 
127

 
64

 
74

 
129

 
64

 
72

Total
 
$
28,792


$
11,675

 
$
16,680


$
28,725

 
$
11,891

 
$
17,235

The following tables present activity in the ACL:
Three Months Ended March 31, 2018
 
Balance at
Jan 1, 2018
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Balance at
Mar 31, 2018
(Dollars in millions)
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
522

 
$
(23
)
 
$
8

 
$
15

 
$
522

CRE
 
160

 
(6
)
 
2

 
19

 
175

Lease financing
 
9

 
(1
)
 
—

 
2

 
10

Retail:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
209

 
(4
)
 
—

 
11

 
216

Direct
 
106

 
(19
)
 
6

 
6

 
99

Indirect
 
348

 
(107
)
 
15

 
91

 
347

Revolving credit
 
108

 
(21
)
 
5

 
12

 
104

PCI
 
28

 
—

 
—

 
(3
)
 
25

ALLL
 
1,490

 
(181
)
 
36

 
153

 
1,498

RUFC
 
119

 
—

 
—

 
(3
)
 
116

ACL
 
$
1,609

 
$
(181
)
 
$
36

 
$
150

 
$
1,614

Three Months Ended March 31, 2017
 
Balance at
Jan 1, 2017
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Balance at
Mar 31, 2017
(Dollars in millions)
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
530

 
$
(33
)
 
$
7

 
$
20

 
$
524

CRE
 
145

 
(1
)
 
6

 
(9
)
 
141

Lease financing
 
7

 
(1
)
 
—

 
4

 
10

Retail:
 
 
 
 
 
 
 
 
 


Residential mortgage
 
227

 
(12
)
 
—

 
8

 
223

Direct
 
103

 
(14
)
 
6

 
7

 
102

Indirect
 
327

 
(107
)
 
17

 
101

 
338

Revolving credit
 
106

 
(21
)
 
5

 
13

 
103

PCI
 
44

 
—

 
—

 
2

 
46

ALLL
 
1,489

 
(189
)
 
41

 
146

 
1,487

RUFC
 
110

 
—

 
—

 
2

 
112

ACL
 
$
1,599

 
$
(189
)
 
$
41

 
$
148

 
$
1,599

The following table provides a summary of loans that are collectively evaluated for impairment:
 
 
March 31, 2018
 
December 31, 2017
(Dollars in millions)
 
Recorded Investment
 
Related ALLL
 
Recorded Investment
 
Related ALLL
Commercial:
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
58,793

 
$
497

 
$
58,804

 
$
494

CRE
 
21,391

 
164

 
21,173

 
154

Lease financing
 
1,873

 
9

 
1,910

 
9

Retail:
 
 
 
 
 
 
 
 
Residential mortgage
 
27,953

 
149

 
27,914

 
143

Direct
 
11,601

 
92

 
11,815

 
98

Indirect
 
16,383

 
293

 
16,935

 
296

Revolving credit
 
2,737

 
93

 
2,842

 
97

PCI
 
589

 
25

 
651

 
28

Total
 
$
141,320

 
$
1,322

 
$
142,044

 
$
1,319

The following tables set forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment:
As of / For The Three Months Ended March 31, 2018
 
UPB
 
Recorded Investment
 
Related ALLL
 
Average Recorded Investment
 
Interest Income Recognized
(Dollars in millions)
 
 
Without an ALLL
 
With an ALLL
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
376

 
$
140

 
199

 
$
25

 
$
348

 
$
1

CRE
 
109

 
21

 
85

 
11

 
109

 
—

Lease financing
 
14

 
1

 
12

 
1

 
3

 
—

Retail:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
886

 
133

 
706

 
67

 
825

 
8

Direct
 
97

 
25

 
49

 
7

 
75

 
1

Indirect
 
306

 
5

 
292

 
54

 
298

 
11

Revolving credit
 
29

 
—

 
29

 
11

 
29

 
—

Total
 
$
1,817

 
$
325

 
$
1,372

 
$
176

 
$
1,687

 
$
21

As of / For The Year Ended December 31, 2017
 
UPB
 
Recorded Investment
 
Related ALLL
 
Average Recorded Investment
 
Interest Income Recognized
(Dollars in millions)
 
 
Without an ALLL
 
With an ALLL
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
381

 
$
136

 
213

 
$
28

 
$
424

 
$
6

CRE
 
91

 
26

 
64

 
6

 
109

 
3

Lease financing
 
1

 
—

 
1

 
—

 
3

 
—

Retail:
 
 
 
 

 
 

 
 

 
 

 
 

Residential mortgage
 
860

 
132

 
679

 
67

 
895

 
37

Direct
 
99

 
22

 
54

 
8

 
78

 
4

Indirect
 
308

 
6

 
294

 
52

 
269

 
41

Revolving credit
 
30

 
—

 
30

 
10

 
29

 
1

Total
 
$
1,770

 
$
322

 
$
1,335

 
$
171

 
$
1,807

 
$
92

The following table presents a summary of TDRs, all of which are considered impaired:
(Dollars in millions)
 
Mar 31, 2018
 
Dec 31, 2017
Performing TDRs:
 
 
 
 
Commercial:
 
 
 
 
Commercial and industrial
 
$
38

 
$
50

CRE
 
12

 
16

Lease financing
 
—

 
—

Retail:
 
 
 
 
Residential mortgage
 
627

 
605

Direct
 
59

 
62

Indirect
 
277

 
281

Revolving credit
 
29

 
29

Total performing TDRs
 
1,042

 
1,043

Nonperforming TDRs (also included in NPL disclosures)
 
196

 
189

Total TDRs
 
$
1,238

 
$
1,232

ALLL attributable to TDRs
 
$
145

 
$
142

The following table summarizes the primary reason loan modifications were classified as TDRs and includes newly designated TDRs as well as modifications made to existing TDRs. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications include TDRs made with below market interest rates that also include modifications of loan structures.
Three Months Ended March 31,
 
2018
 
2017
 
 
Types of Modifications
 
Impact To ALLL
 
Types of Modifications
 
Impact To ALLL
(Dollars in millions)
 
Rate
 
Structure
 
 
Rate
 
Structure
 
Newly Designated TDRs:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
10

 
$
10

 
$
—

 
$
22

 
$
31

 
$
1

CRE
 
19

 
1

 
—

 
6

 
2

 
—

Lease financing
 
—

 
—

 
—

 
—

 
—

 
—

Retail:
 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage
 
82

 
10

 
5

 
128

 
6

 
6

Direct
 
2

 
—

 
—

 
3

 
1

 
—

Indirect
 
42

 
1

 
5

 
41

 
2

 
4

Revolving credit
 
5

 
—

 
1

 
5

 
—

 
1

Re-modification of Previously Designated TDRs
 
21

 
5

 
—

 
45

 
9

 
—

Charge-offs and forgiveness of principal and interest for TDRs were immaterial for all periods presented.
 
The pre-default balance for modifications that had been classified as TDRs during the previous 12 months that experienced a payment default was $23 million and $28 million for the three months ended March 31, 2018 and 2017, respectively. Payment default is defined as movement of the TDR to nonaccrual status, foreclosure or charge-off, whichever occurs first.
Unearned income, discounts and net deferred loan fees and costs were immaterial. Residential mortgage loans in process of foreclosure were $298 million at March 31, 2018 and $288 million at December 31, 2017.