XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans and ACL
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Loans and ACL
Loans and ACL
The following tables present loans and leases HFI by aging category:
June 30, 2018
 
Accruing
 
 
 
 
(Dollars in millions)
 
Current
 
30-89 Days Past Due
 
90 Days Or More Past Due
 
Nonperforming
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
60,205

 
$
26

 
$
—

 
$
243

 
$
60,474

CRE
 
21,545

 
4

 
—

 
61

 
21,610

Lease financing
 
1,913

 
2

 
—

 
9

 
1,924

Retail:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
29,031

 
441

 
374

 
119

 
29,965

Direct
 
11,547

 
52

 
4

 
58

 
11,661

Indirect
 
16,731

 
337

 
4

 
68

 
17,140

Revolving credit
 
2,845

 
21

 
10

 
—

 
2,876

PCI
 
468

 
22

 
43

 
—

 
533

Total
 
$
144,285

 
$
905

 
$
435

 
$
558

 
$
146,183

December 31, 2017
 
Accruing
 
 
 
 
(Dollars in millions)
 
Current
 
30-89 Days Past Due
 
90 Days Or More Past Due
 
Nonperforming
 
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:
 
 
June 30, 2018
 
December 31, 2017
(Dollars in millions)
 
Commercial & Industrial
 
CRE
 
Lease Financing
 
Commercial & Industrial
 
CRE
 
Lease Financing
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
$
59,246

 
$
21,273

 
$
1,905

 
$
57,700

 
$
20,862

 
$
1,881

Special mention
 
189

 
38

 
6

 
268

 
48

 
6

Substandard-performing
 
796

 
238

 
4

 
926

 
308

 
23

Nonperforming
 
243

 
61

 
9

 
259

 
45

 
1

Total
 
$
60,474

 
$
21,610

 
$
1,924

 
$
59,153

 
$
21,263

 
$
1,911

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Mortgage
 
Direct
 
Indirect
 
Residential Mortgage
 
Direct
 
Indirect
Retail:
 
 
 
 
 
 
 
 
 
 
 
 
Performing
 
$
29,846

 
$
11,603

 
$
17,072

 
$
28,596

 
$
11,827

 
$
17,163

Nonperforming
 
119

 
58

 
68

 
129

 
64

 
72

Total
 
$
29,965


$
11,661

 
$
17,140


$
28,725

 
$
11,891

 
$
17,235

The following tables present activity in the ACL:
Three Months Ended June 30, 2018
 
Balance at
Apr 1, 2018
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Balance at
Jun 30, 2018
(Dollars in millions)
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
522

 
$
(23
)
 
$
11

 
$
25

 
$
535

CRE
 
175

 
(2
)
 
1

 
17

 
191

Lease financing
 
10

 
(1
)
 
1

 
—

 
10

Retail:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
216

 
(5
)
 
1

 
9

 
221

Direct
 
99

 
(17
)
 
6

 
9

 
97

Indirect
 
347

 
(82
)
 
17

 
71

 
353

Revolving credit
 
104

 
(21
)
 
5

 
17

 
105

PCI
 
25

 
—

 
—

 
(7
)
 
18

ALLL
 
1,498

 
(151
)
 
42

 
141

 
1,530

RUFC
 
116

 
—

 
—

 
(6
)
 
110

ACL
 
$
1,614

 
$
(151
)
 
$
42

 
$
135

 
$
1,640

Three Months Ended June 30, 2017
 
Balance at
Apr 1, 2017
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Balance at
Jun 30, 2017
(Dollars in millions)
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
524

 
$
(26
)
 
$
9

 
$
8

 
$
515

CRE
 
141

 
(3
)
 
3

 
25

 
166

Lease financing
 
10

 
(1
)
 
—

 
—

 
9

Retail:
 
 
 
 
 
 
 
 
 


Residential mortgage
 
223

 
(20
)
 
1

 
7

 
211

Direct
 
102

 
(16
)
 
7

 
7

 
100

Indirect
 
338

 
(88
)
 
16

 
87

 
353

Revolving credit
 
103

 
(19
)
 
5

 
12

 
101

PCI
 
46

 
—

 
—

 
(16
)
 
30

ALLL
 
1,487

 
(173
)
 
41

 
130

 
1,485

RUFC
 
112

 
—

 
—

 
5

 
117

ACL
 
$
1,599

 
$
(173
)
 
$
41

 
$
135

 
$
1,602

Six Months Ended June 30, 2018
 
Balance at
Jan 1, 2018
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Balance at
Jun 30, 2018
(Dollars in millions)
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
522

 
$
(46
)
 
$
19

 
$
40

 
$
535

CRE
 
160

 
(8
)
 
3

 
36

 
191

Lease financing
 
9

 
(2
)
 
1

 
2

 
10

Retail:
 
 

 
 

 
 

 
 

 


Residential mortgage
 
209

 
(9
)
 
1

 
20

 
221

Direct
 
106

 
(36
)
 
12

 
15

 
97

Indirect
 
348

 
(189
)
 
32

 
162

 
353

Revolving credit
 
108

 
(42
)
 
10

 
29

 
105

PCI
 
28

 
—

 
—

 
(10
)
 
18

ALLL
 
1,490

 
(332
)
 
78

 
294

 
1,530

RUFC
 
119

 
—

 
—

 
(9
)
 
110

ACL
 
$
1,609

 
$
(332
)
 
$
78

 
$
285

 
$
1,640


Six Months Ended June 30, 2017
 
Balance at
Jan 1, 2017
 
Charge-Offs
 
Recoveries
 
Provision (Benefit)
 
Balance at
Jun 30, 2017
(Dollars in millions)
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
530

 
$
(59
)
 
$
16

 
$
28

 
$
515

CRE
 
145

 
(4
)
 
9

 
16

 
166

Lease financing
 
7

 
(2
)
 
—

 
4

 
9

Retail:
 
 

 
 

 
 

 
 

 


Residential mortgage
 
227

 
(32
)
 
1

 
15

 
211

Direct
 
103

 
(30
)
 
13

 
14

 
100

Indirect
 
327

 
(195
)
 
33

 
188

 
353

Revolving credit
 
106

 
(40
)
 
10

 
25

 
101

PCI
 
44

 
—

 
—

 
(14
)
 
30

ALLL
 
1,489

 
(362
)
 
82

 
276

 
1,485

RUFC
 
110

 
—

 
—

 
7

 
117

ACL
 
$
1,599

 
$
(362
)
 
$
82

 
$
283

 
$
1,602

The following table provides a summary of loans that are collectively evaluated for impairment:
 
 
June 30, 2018
 
December 31, 2017
(Dollars in millions)
 
Recorded Investment
 
Related ALLL
 
Recorded Investment
 
Related ALLL
Commercial:
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
60,141

 
$
502

 
$
58,804

 
$
494

CRE
 
21,512

 
181

 
21,173

 
154

Lease financing
 
1,915

 
10

 
1,910

 
9

Retail:
 
 
 
 
 
 
 
 
Residential mortgage
 
29,116

 
154

 
27,914

 
143

Direct
 
11,590

 
91

 
11,815

 
98

Indirect
 
16,837

 
300

 
16,935

 
296

Revolving credit
 
2,847

 
94

 
2,842

 
97

PCI
 
533

 
18

 
651

 
28

Total
 
$
144,491

 
$
1,350

 
$
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 Six Months Ended June 30, 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
 
$
350

 
$
125

 
$
208

 
$
33

 
$
343

 
$
2

CRE
 
108

 
21

 
77

 
10

 
107

 
1

Lease financing
 
10

 
—

 
9

 
—

 
7

 
—

Retail:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
897

 
133

 
716

 
67

 
833

 
18

Direct
 
92

 
25

 
46

 
6

 
74

 
2

Indirect
 
312

 
5

 
298

 
53

 
299

 
22

Revolving credit
 
29

 
—

 
29

 
11

 
29

 
—

Total
 
$
1,798

 
$
309

 
$
1,383

 
$
180

 
$
1,692

 
$
45

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)
 
Jun 30, 2018
 
Dec 31, 2017
Performing TDRs:
 
 
 
 
Commercial:
 
 
 
 
Commercial and industrial
 
$
44

 
$
50

CRE
 
11

 
16

Lease financing
 
—

 
—

Retail:
 
 
 
 
Residential mortgage
 
647

 
605

Direct
 
58

 
62

Indirect
 
284

 
281

Revolving credit
 
29

 
29

Total performing TDRs
 
1,073

 
1,043

Nonperforming TDRs (also included in NPL disclosures)
 
191

 
189

Total TDRs
 
$
1,264

 
$
1,232

ALLL attributable to TDRs
 
$
153

 
$
142

The primary reason loan modifications were classified as TDRs is summarized below. Balances represent the recorded investment at the end of the quarter in which the modification was made. Rate modifications consist of TDRs made with below market interest rates, including those that also have modifications of loan structures.
Three Months Ended June 30,
2018
 
2017
 
Type of Modification
 
ALLL Impact
 
Type of Modification
 
ALLL Impact
(Dollars in millions)
Rate
 
Structure
 
 
Rate
 
Structure
 
Newly Designated TDRs:
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
20

 
$
33

 
$
—

 
$
33

 
$
25

 
$
1

CRE
8

 
1

 
—

 
8

 
3

 
1

Retail:
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage
58

 
5

 
4

 
82

 
6

 
10

Direct
2

 
1

 
—

 
2

 
1

 
—

Indirect
45

 
1

 
5

 
37

 
2

 
4

Revolving credit
4

 
—

 
1

 
4

 
—

 
1

Re-modification of Previously Designated TDRs
31

 
5

 
—

 
40

 
13

 
—

Six Months Ended June 30,
2018
 
2017
 
Type of Modification
 
ALLL Impact
 
Type of Modification
 
ALLL Impact
(Dollars in millions)
Rate
 
Structure
 
 
Rate
 
Structure
 
Newly Designated TDRs:
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
30

 
$
43

 
$
—

 
$
55

 
$
56

 
$
2

CRE
27

 
2

 
—

 
14

 
5

 
1

Retail:
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage
140

 
15

 
9

 
210

 
12

 
16

Direct
4

 
1

 
—

 
5

 
2

 
—

Indirect
87

 
2

 
10

 
78

 
4

 
8

Revolving credit
9

 
—

 
2

 
9

 
—

 
2

Re-Modification of Previously Designated TDRs
52

 
10

 
—

 
85

 
22

 
—

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 $13 million and $17 million for the three months ended June 30, 2018 and 2017, respectively, and $36 million and $45 million for the six months ended June 30, 2018 and 2017, respectively. Payment default is defined as movement of the TDR to nonperforming status, foreclosure or charge-off, whichever occurs first.
Unearned income, discounts and net deferred loan fees and costs were immaterial. Residential mortgage loans in the process of foreclosure were $270 million at June 30, 2018 and $288 million at December 31, 2017.