Loans and ACL (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Aging Analysis of Past Due Loans and Leases

The following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonaccrual status regardless of delinquency because collection of principal and interest is reasonably assured.

	Accruing
March 31, 2020 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due		Nonperforming		Total
Commercial:
Commercial and industrial	$	148,451	$	262	$	5	$	443	$	149,161
CRE	27,505		8		1		18		27,532
Commercial construction	6,612		16		—		2		6,630
Lease financing	5,949		8		—		27		5,984
Consumer:
Residential mortgage	51,559		679		610		248		53,096
Residential home equity and direct	27,293		156		10		170		27,629
Indirect auto	24,489		521		11		125		25,146
Indirect other	10,903		74		2		1		10,980
Student	6,110		593		1,068		—		7,771
Credit card	5,202		57		41		—		5,300
Total	$	314,073	$	2,374	$	1,748	$	1,034	$	319,229
	Accruing
December 31, 2019 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due		Nonperforming		Total
Commercial:
Commercial and industrial	$	129,873	$	94	$	1	$	212	$	130,180
CRE	26,817		5		—		10		26,832
Commercial construction	6,204		1		—		—		6,205
Lease financing	6,112		2		—		8		6,122
Consumer:
Residential mortgage	50,975		498		543		55		52,071
Residential home equity and direct	26,846		122		9		67		27,044
Indirect auto	23,771		560		11		100		24,442
Indirect other	11,011		85		2		2		11,100
Student	5,905		650		188		—		6,743
Credit card	5,541		56		22		—		5,619
PCI	2,126		140		1,218		—		3,484
Total	$	295,181	$	2,213	$	1,994	$	454	$	299,842

Schedule of Carrying Amounts by Risk Rating

The following table presents the amortized cost basis of loans by origination year and credit quality indicator:

March 31, 2020 (Dollars in millions)	Amortized Cost Basis by Origination Year												Revolving Credit		Loans Converted to Term		Other (1)
	2020		2019		2018		2017		2016		Prior								Total
Commercial:
Commercial and industrial:
Pass	$	7,366	$	25,371	$	15,536	$	9,849	$	6,598	$	14,904	$	66,420	$	11	$	(843)	$	145,212
Special mention	93		170		161		66		143		101		1,010		—		—		1,744
Substandard	53		216		126		74		87		296		926		1		(17)		1,762
Nonperforming	3		52		94		34		48		85		97		1		29		443
Total	7,515		25,809		15,917		10,023		6,876		15,386		68,453		13		(831)		149,161
CRE:
Pass	2,013		8,252		6,166		3,479		2,262		4,066		713		—		(92)		26,859
Special mention	1		44		102		12		65		115		—		—		—		339
Substandard	17		94		23		39		29		114		—		—		—		316
Nonperforming	—		2		4		3		—		8		1		—		—		18
Total	2,031		8,392		6,295		3,533		2,356		4,303		714		—		(92)		27,532
Commercial construction:
Pass	342		1,921		2,164		745		153		381		729		1		4		6,440
Special mention	—		5		37		—		—		—		—		—		—		42
Substandard	3		5		35		56		40		4		3		—		—		146
Nonperforming	—		1		—		1		—		—		—		—		—		2
Total	345		1,932		2,236		802		193		385		732		1		4		6,630
Lease financing:
Pass	255		1,864		1,154		1,056		381		1,221		—		—		(44)		5,887
Special mention	—		8		3		3		3		—		—		—		—		17
Substandard	—		3		—		15		2		33		—		—		—		53
Nonperforming	—		—		1		15		2		9		—		—		—		27
Total	255		1,875		1,158		1,089		388		1,263		—		—		(44)		5,984
Consumer:
Residential mortgage:
Performing	1,800		8,480		5,595		6,168		6,985		23,587		—		—		233		52,848
Nonperforming	—		4		8		7		8		221		—		—		—		248
Total	1,800		8,484		5,603		6,175		6,993		23,808		—		—		233		53,096
Residential home equity and direct:
Performing	1,296		4,436		2,164		834		420		789		15,553		1,874		93		27,459
Nonperforming	—		4		4		1		1		8		63		94		(5)		170
Total	1,296		4,440		2,168		835		421		797		15,616		1,968		88		27,629
Indirect auto:
Performing	2,799		9,725		5,548		3,571		2,070		1,166		—		—		142		25,021
Nonperforming	—		32		39		29		19		19		—		—		(13)		125
Total	2,799		9,757		5,587		3,600		2,089		1,185		—		—		129		25,146
Indirect other:
Performing	1,027		4,319		2,587		1,294		676		1,009		—		—		67		10,979
Nonperforming	—		—		—		—		—		1		—		—		—		1
Total	1,027		4,319		2,587		1,294		676		1,010		—		—		67		10,980
Student:
Performing	21		122		110		91		75		7,357		—		—		(5)		7,771
Nonperforming	—		—		—		—		—		—		—		—		—		—
Total	21		122		110		91		75		7,357		—		—		(5)		7,771
Credit card	—		—		—		—		—		—		5,268		35		(3)		5,300
Total	$	17,089	$	65,130	$	41,661	$	27,442	$	20,067	$	55,494	$	90,783	$	2,017	$	(454)	$	319,229

(1) Includes certain deferred fees and costs, unapplied payments and other adjustments.

The following table presents the carrying amount of loans by risk rating and performing status. Student loans are excluded as there is nominal risk of credit loss due to government guarantees or other credit enhancements. PCI loans were excluded because their related ALLL is determined by loan pool performance, and credit card loans were excluded as these loans are charged-off rather than reclassifying these loans to nonperforming:

	December 31, 2019
(Dollars in millions)	Commercial & Industrial		CRE		Commercial Construction		Lease Financing
Commercial:
Pass	$	127,229	$	26,393	$	6,037	$	6,039
Special mention	1,264		145		37		19
Substandard	1,475		284		131		56
Nonperforming	212		10		—		8
Total	$	130,180	$	26,832	$	6,205	$	6,122
	December 31, 2019
	Residential Mortgage		Residential home equity and direct		Indirect auto		Indirect Other
Consumer:
Performing	$	52,016	$	26,977	$	24,342	$	11,098
Nonperforming	55		67		100		2
Total	$	52,071	$	27,044	$	24,442	$	11,100

Summary of Allowance for Credit Losses

The following tables present activity in the ACL:

(Dollars in millions)	Balance at Jan 1, 2019		Charge-Offs		Recoveries		Provision (Benefit)		Other		Balance at Mar 31, 2019
Commercial:
Commercial and industrial	$	546	$	(17)	$	6	$	13	$	—	$	548
CRE	142		(8)		—		18		—		152
Commercial construction	48		—		1		(5)		—		44
Lease financing	11		(1)		—		1		—		11
Consumer:
Residential mortgage	232		(5)		1		(3)		—		225
Residential home equity and direct	104		(20)		6		13		—		103
Indirect auto	298		(92)		13		81		—		300
Indirect other	58		(17)		4		13		—		58
Credit card	110		(24)		6		20		—		112
PCI	9		—		—		(1)		—		8
ALLL	1,558		(184)		37		150		—		1,561
RUFC	93		—		—		5		—		98
ACL	$	1,651	$	(184)	$	37	$	155	$	—	$	1,659

(Dollars in millions)	Balance at Jan 1, 2020 (1)		Charge-Offs		Recoveries		Provision (Benefit)		Other (2)		Balance at Mar 31, 2020
Commercial:
Commercial and industrial	$	560	$	(39)	$	17	$	371	$	904	1,813
CRE	150		(1)		—		68		82		299
Commercial construction	52		(3)		1		22		16		88
Lease financing	10		(2)		—		(23)		94		79
Consumer:
Residential mortgage	176		(11)		2		(4)		264		427
Residential home equity and direct	107		(68)		15		102		451		607
Indirect auto	304		(142)		23		189		818		1,192
Indirect other	60		(18)		7		12		152		213
Student	—		(8)		—		34		120		146
Credit card	122		(53)		8		95		175		347
PCI	8		—		—		—		(8)		—
ALLL	1,549		(345)		73		866		3,068		5,211
RUFC	340		—		—		27		33		400
ACL	$	1,889	$	(345)	$	73	$	893	$	3,101	$	5,611

(1) Balance is prior to the adoption of CECL.

(2) Other activity includes the adoption of CECL, the ALLL for PCD acquisitions and other activity.

Summary of purchased student loans with credit deterioration at acquisition

The following table provides a summary of purchased student loans with credit deterioration at acquisition:

Three Months Ended March 31, 2020 (Dollars in millions)
Par value	$	242
ALLL at acquisition	(3)
Non-credit premium (discount)	1
Purchase price	$	240

Summary of nonperforming loans, excluding LHFS

The following table provides a summary of nonperforming loans, excluding LHFS. Interest income recognized on nonperforming loans HFI was $8 million for the three months ended March 31, 2020.

	Recorded Investment
Three Months Ended March 31, 2020 (Dollars in millions)	Without an ALLL		With an ALLL
Commercial:
Commercial and industrial	$	136	$	307
CRE	1		17
Commercial construction	—		2
Lease financing	15		12
Consumer:
Residential mortgage	3		245
Residential home equity and direct	1		169
Indirect auto	—		125
Indirect other	—		1
Total	$	156	$	878

Schedule of Loans Individually Evaluated for Impairment

The following table sets forth certain information regarding impaired loans, excluding PCI and LHFS, that were individually evaluated for impairment. This table excludes guaranteed student loans and guaranteed residential mortgages for which there was nominal risk of principal loss due to the government guarantee or other credit enhancements.

	UPB		Recorded Investment				Related ALLL		Average Recorded Investment		Interest Income Recognized
As of / For The Year Ended December 31, 2019 (Dollars in millions)			Without an ALLL		With an ALLL
Commercial:
Commercial and industrial	$	339	$	124	$	167	$	20	$	298	$	6
CRE	29		3		26		2		71		1
Commercial construction	39		—		38		7		5		—
Lease financing	18		7		2		—		2		—
Consumer:
Residential mortgage	650		92		527		42		799		34
Residential home equity and direct	76		24		37		5		65		3
Indirect auto	367		9		349		64		334		53
Indirect other	5		—		5		1		4		—
Credit card	31		—		31		12		28		1
Total	$	1,554	$	259	$	1,182	$	153	$	1,606	$	98

Schedule of Performing and Nonperforming TDRs

TDRs

The following table presents a summary of TDRs:

(Dollars in millions)	Mar 31, 2020		Dec 31, 2019
Performing TDRs:
Commercial:
Commercial and industrial	$	65	$	47
CRE	7		6
Commercial construction	36		37
Lease financing	1		—
Consumer:
Residential mortgage	513		470
Residential home equity and direct	66		51
Indirect auto	350		333
Indirect other	5		5
Student	1		—
Credit card	35		31
Total performing TDRs	1,079		980
Nonperforming TDRs	121		82
Total TDRs	$	1,200	$	1,062
ALLL attributable to TDRs	$	159	$	132

Summary Of Primary Reason Loan Modifications Were Classified as TDRs

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.

As of / for the Three Months Ended March 31, 2020 (Dollars in millions)	Type of Modification				Prior Quarter Loan Balance		ALLL at Period End
	Rate		Structure
Newly designated TDRs:
Commercial:
Commercial and industrial	$	28	$	3	$	36	$	2
CRE	1		—		1		—
Lease financing	1		—		1		—
Consumer:
Residential mortgage	77		15		94		5
Residential home equity and direct	17		5		23		1
Indirect auto	56		14		73		5
Indirect other	1		—		1		—
Student	—		1		1		—
Credit card	10		—		10		3
Re-modification of previously designated TDRs	18		1
As of / for the Three Months Ended March 31, 2019 (Dollars in millions)	Type of Modification				Prior Quarter Loan Balance		ALLL at Period End
	Rate		Structure
Newly designated TDRs:
Commercial:
Commercial and industrial	$	26	$	3	$	19	$	3
CRE	1		—		3		—
Consumer:
Residential mortgage	73		8		75		6
Residential home equity and direct	3		1		3		1
Indirect auto	47		1		51		11
Indirect other	1		—		1		—
Credit card	6		—		6		3
Re-modification of previously designated TDRs	23		5

Selected Information About Nonperforming Assets

The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure:

(Dollars in millions)	Mar 31, 2020		Dec 31, 2019
Nonperforming loans and leases HFI (1)	$	1,034	$	454
Nonperforming LHFS	41		107
Foreclosed real estate	63		82
Other foreclosed property	39		41
Total nonperforming assets	$	1,177	$	684
Residential mortgage loans in the process of foreclosure	$	300	$	409

Selected Information About Loans And Leases Unearned

The following table presents additional information about loans and leases:

(Dollars in millions)	Mar 31, 2020		Dec 31, 2019
Unearned income, discounts and net deferred loan fees and costs, excluding PCI	$	3,140	$	4,069