XML 105 R14.htm IDEA: XBRL DOCUMENT
v3.22.4

Loans and Related Allowance for Credit Losses | 12 Months Ended
--- | ---
Dec. 31, 2022
Asset Quality [Abstract] |
Loans and Related Allowance for Credit Losses | LOANS A ND R ELATED A LLOWANCE F OR C REDIT L OSSES Loan Portfolio Our loan portfolio consists of two portfolio segments – Commercial and Consumer. Each of these segments comprises multiple loan classes. Classes are characterized by similarities in risk attributes and the manner in which we monitor and assess credit risk.
Commercial |  | Consumer
• Commercial and industrial |  | • Residential real estate
• Commercial real estate |  | • Home equity
• Equipment lease financing |  | • Automobile
|  | • Credit card
|  | • Education
|  | • Other consumer
See Note 1 Accounting Policies for additional information on our loan related policies. Credit Quality We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk within the loan portfolio based on our defined loan classes. In doing so, we use several credit quality indicators, including trends in delinquency rates, nonperforming status, analysis of PD and LGD ratings, updated credit scores and originated and updated LTV ratios. The measurement of delinquency status is based on the contractual terms of each loan. Loans that are 30 days or more past due in terms of payment are considered delinquent. Loan delinquencies include government insured or guaranteed loans, loans accounted for under the fair value option and PCD loans. Table 52 presents the composition and delinquency status of our loan portfolio at December 31, 2022 and 2021. We manage credit risk based on the risk profile of the borrower, repayment sources, underlying collateral and other support given current events, economic conditions and expectations. We refine our practices to meet the changing environment resulting from rising inflation levels, supply chain disruptions, higher rates and secular changes resulting from the COVID-19 pandemic. To mitigate losses and enhance customer support, we have customer assistance, loan modification and collection programs that align with the CARES Act and subsequent interagency guidance. As a result, under the CARES Act credit reporting rules, certain loans modified due to COVID-19 related hardships are not being reported as past due as of December 31, 2022 and 2021 based on the contractual terms of the loan, even where borrowers may not be making payments on their loans during the modification period. Table 52: 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) |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 181,223 |  | $ | 169 |  | $ | 27 |  | $ | 137 |  |  | $ | 333 |  |  | $ | 663 |  |  | $ | 182,219 |  |
Commercial real estate | 36,104 |  | 19 |  | 4 |  |  |  |  | 23 |  |  | 189 |  |  | 36,316 |  |
Equipment lease financing | 6,484 |  | 20 |  | 4 |  |  |  | 24 |  |  | 6 |  |  | 6,514 |  |
Total commercial | 223,811 |  | 208 |  | 35 |  | 137 |  |  | 380 |  |  | 858 |  |  | 225,049 |  |
Consumer |  |  |  |  |  |  |  |  |  |  |
Residential real estate | 44,306 |  | 281 |  | 112 |  | 199 |  |  | 592 |  | (c) | 424 |  | $ | 567 |  | 45,889 |  |
Home equity | 25,305 |  | 53 |  | 20 |  |  |  | 73 |  |  | 526 |  | 79 |  | 25,983 |  |
Automobile | 14,543 |  | 106 |  | 25 |  | 7 |  |  | 138 |  |  | 155 |  |  | 14,836 |  |
Credit card | 6,906 |  | 50 |  | 35 |  | 70 |  |  | 155 |  |  | 8 |  |  | 7,069 |  |
Education | 2,058 |  | 34 |  | 22 |  | 59 |  |  | 115 |  | (c) |  |  | 2,173 |  |
Other consumer | 4,975 |  | 15 |  | 12 |  | 10 |  |  | 37 |  |  | 14 |  |  | 5,026 |  |
Total consumer | 98,093 |  | 539 |  | 226 |  | 345 |  |  | 1,110 |  |  | 1,127 |  | 646 |  | 100,976 |  |
Total | $ | 321,904 |  | $ | 747 |  | $ | 261 |  | $ | 482 |  |  | $ | 1,490 |  |  | $ | 1,985 |  | $ | 646 |  | $ | 326,025 |  |
Percentage of total loans | 98.73 | % | 0.23 | % | 0.08 | % | 0.15 | % |  | 0.46 | % |  | 0.61 | % | 0.20 | % | 100.00 | % |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 151,698 |  | $ | 235 |  | $ | 72 |  | $ | 132 |  |  | $ | 439 |  |  | $ | 796 |  |  | $ | 152,933 |  |
Commercial real estate | 33,580 |  | 46 |  | 24 |  | 1 |  |  | 71 |  |  | 364 |  |  | 34,015 |  |
Equipment lease financing | 6,095 |  | 25 |  | 2 |  |  |  | 27 |  |  | 8 |  |  | 6,130 |  |
Total commercial | 191,373 |  | 306 |  | 98 |  | 133 |  |  | 537 |  |  | 1,168 |  |  | 193,078 |  |
Consumer |  |  |  |  |  |  |  |  |  |  |
Residential real estate | 37,706 |  | 379 |  | 119 |  | 328 |  |  | 826 |  | (c) | 517 |  | $ | 663 |  | 39,712 |  |
Home equity | 23,305 |  | 53 |  | 18 |  |  |  | 71 |  |  | 596 |  | 89 |  | 24,061 |  |
Automobile | 16,252 |  | 146 |  | 40 |  | 14 |  |  | 200 |  |  | 183 |  |  | 16,635 |  |
Credit card | 6,475 |  | 49 |  | 33 |  | 62 |  |  | 144 |  |  | 7 |  |  | 6,626 |  |
Education | 2,400 |  | 43 |  | 25 |  | 65 |  |  | 133 |  | (c) |  |  | 2,533 |  |
Other consumer | 5,644 |  | 35 |  | 22 |  | 17 |  |  | 74 |  |  | 9 |  |  | 5,727 |  |
Total consumer | 91,782 |  | 705 |  | 257 |  | 486 |  |  | 1,448 |  |  | 1,312 |  | 752 |  | 95,294 |  |
Total | $ | 283,155 |  | $ | 1,011 |  | $ | 355 |  | $ | 619 |  |  | $ | 1,985 |  |  | $ | 2,480 |  | $ | 752 |  | $ | 288,372 |  |
Percentage of total loans | 98.19 | % | 0.35 | % | 0.12 | % | 0.21 | % |  | 0.69 | % |  | 0.86 | % | 0.26 | % | 100.00 | % |
(a)Amounts in table represent loans held for investment and do not include any associated ALLL. (b)The accrued interest associated with our loan portfolio totaled $1.2 billion and $0.7 billion at December 31, 2022 and 2021, 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 $0.3 billion and $0.1 billion at December 31, 2022. Comparable amounts at December 31, 2021 were $0.4 billion and $0.1 billion, respectively. (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 policy criteria. 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 $0.9 billion and $0.7 billion at December 31, 2022 and 2021, respectively. (f)Collateral dependent loans totaled $1.3 billion and $1.7 billion at December 31, 2022 and 2021, respectively. In the normal course of business, we originate or purchase loan products with contractual characteristics that, when concentrated, may increase our exposure as a holder of those loan products. Possible product features that may create a concentration of credit risk would include a high original or updated LTV ratio, terms that may expose the borrower to future increases in repayments above increases in market interest rates and interest-only loans, among others. We originate interest-only loans to commercial borrowers. Such credit arrangements are usually designed to match borrower cash flow expectations (e.g., working capital lines, revolvers). These products are standard in the financial services industry and product features are considered during the underwriting process to mitigate the increased risk that the interest-only feature may result in borrowers not being able to make interest and principal payments when due. We do not believe that these product features create a concentration of credit risk. At December 31, 2022, we pledged $28.1 billion of commercial and other loans to the Federal Reserve Bank and $90.4 billion of residential real estate and other loans to the FHLB as collateral for the ability to borrow, if necessary. The comparable amounts at December 31, 2021 were $25.7 billion and $66.2 billion, respectively. Amounts pledged reflect the unpaid principal balances. Nonperforming Assets Nonperforming assets include nonperforming loans and leases, OREO and foreclosed assets. Nonperforming loans are those loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable and include nonperforming TDRs and PCD loans. Interest income is not recognized on these loans. Loans accounted for under the fair value option are reported as performing loans; however, when nonaccrual criteria is met, interest income is not recognized on these loans. Additionally, certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest are not reported as nonperforming loans and continue to accrue interest. See Note 1 Accounting Policies for additional information on our nonperforming loan and lease policies. The following table presents our nonperforming assets as of December 31, 2022 and 2021, respectively. Table 53: Nonperforming Assets
Dollars in millions |  | December 31, 2022 |  | December 31, 2021 |
Nonperforming loans |  |  |  |  |
Commercial |  | $ | 858 |  |  | $ | 1,168 |  |
Consumer (a) |  | 1,127 |  |  | 1,312 |  |
Total nonperforming loans (b) |  | 1,985 |  |  | 2,480 |  |
OREO and foreclosed assets |  | 34 |  |  | 26 |  |
Total nonperforming assets |  | $ | 2,019 |  |  | $ | 2,506 |  |
Nonperforming loans to total loans |  | 0.61 | % |  | 0.86 | % |
Nonperforming assets to total loans, OREO and foreclosed assets |  | 0.62 | % |  | 0.87 | % |
Nonperforming assets to total assets |  | 0.36 | % |  | 0.45 | % |
(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 $0.7 billion at December 31, 2022 and primarily include loans with a fair value of collateral that exceeds the amortized cost basis. The comparable amount at December 31, 2021 was $1.0 billion. Nonperforming loans include certain loans whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties. In accordance with applicable accounting guidance, these loans are considered TDRs. See Note 1 Accounting Policies and the Troubled Debt Restructurings section of this Note 4 for additional information on TDRs. Total nonperforming loans in Table 53 include TDRs of $0.7 billion and $1.0 billion at December 31, 2022 and 2021, respectively. TDRs that are performing, including consumer credit card TDR loans, are excluded from nonperforming loans and totaled $0.7 billion and $0.6 billion at December 31, 2022 and 2021, respectively. Additional Credit Quality Indicators by Loan Class Commercial and Industrial For commercial and industrial loans, we monitor the performance of the borrower in a disciplined and regular manner based upon the level of credit risk inherent in the loan. To evaluate the level of credit risk, we assign an internal risk rating reflecting the borrower’s PD and LGD. This two-dimensional credit risk rating methodology provides granularity in the risk monitoring process. These ratings are generally reviewed and updated at least once per year. For small balance homogeneous pools of commercial and industrial loans and leases, we apply scoring techniques to assist in determining the PD. The combination of the PD and LGD ratings assigned to commercial and industrial loans, capturing both the combination of expectations of default and loss severity in the event of default, reflects credit quality characteristics as of the reporting date and are used as inputs into our loss forecasting process. Based upon the amount of the lending arrangement and our risk rating assessment, we follow a formal schedule of written periodic reviews. Quarterly, we conduct formal reviews of a market’s or business unit’s loan portfolio, focusing on those loans which we perceive to be of higher risk, based upon PDs and LGDs, or loans for which credit quality is weakening. If circumstances warrant, it is our practice to review any customer obligation and its level of credit risk more frequently. We attempt to proactively manage our loans by using various procedures that are customized to the risk of a given loan, including ongoing outreach, contact, and assessment of obligor financial conditions, collateral inspection and appraisal. Commercial Real Estate We manage credit risk associated with our commercial real estate projects and commercial mortgages similar to commercial and industrial loans by evaluating PD and LGD. Risks associated with commercial real estate projects and commercial mortgage activities tend to be correlated to the loan structure and collateral location, project progress and business environment. As a result, these attributes are also monitored and utilized in assessing credit risk. As with the commercial and industrial loan class, a formal schedule of periodic reviews is also performed to assess market/geographic risk and business unit/industry risk. Often as a result of these reviews, more in-depth reviews and increased scrutiny are placed on areas of higher risk, such as adverse changes in risk ratings, deteriorating operating trends, and/or areas that concern management. These reviews are designed to assess risk and facilitate actions to mitigate such risks. Equipment Lease Financing We manage credit risk associated with our equipment lease financing loan class similar to commercial and industrial loans by analyzing PD and LGD. Based upon the dollar amount of the lease and the level of credit risk, we follow a formal schedule of periodic reviews. Generally, this occurs quarterly, although we have established practices to review such credit risk more frequently if circumstances warrant. Our review process entails analysis of the following factors: equipment value/residual value, exposure levels, jurisdiction risk, industry risk, guarantor requirements and regulatory compliance as applicable. The following table presents credit quality indicators for the commercial loan classes: Table 54: Commercial Credit Quality Indicators (a)
| Term Loans by Origination Year |  |  |
December 31, 2022 In millions | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Commercial and industrial |  |  |  |  |  |  |  |  |
Pass Rated | $ | 41,685 |  | $ | 12,493 |  | $ | 8,134 |  | $ | 6,261 |  | $ | 4,209 |  | $ | 13,165 |  | $ | 89,384 |  | $ | 69 |  | $ | 175,400 |
Criticized | 1,259 |  | 423 |  | 277 |  | 299 |  | 297 |  | 551 |  | 3,682 |  | 31 |  | 6,819 |
Total commercial and industrial | 42,944 | 12,916 | 8,411 | 6,560 | 4,506 | 13,716 | 93,066 | 100 | 182,219
Commercial real estate |  |  |  |  |  |  |  |  |
Pass Rated | 8,835 |  | 4,153 |  | 3,266 |  | 5,511 |  | 3,005 |  | 7,454 |  | 450 |  |  | 32,674 |
Criticized | 348 |  | 37 |  | 322 |  | 758 |  | 807 |  | 1,367 |  | 3 |  |  | 3,642 |
Total commercial real estate | 9,183 | 4,190 | 3,588 | 6,269 | 3,812 | 8,821 | 453 |  | 36,316
Equipment lease financing |  |  |  |  |  |  |  |  |
Pass Rated | 1,797 |  | 962 |  | 942 |  | 670 |  | 410 |  | 1,495 |  |  |  | 6,276 |
Criticized | 60 |  | 55 |  | 56 |  | 39 |  | 17 |  | 11 |  |  |  | 238 |
Total equipment lease financing | 1,857 | 1,017 |  | 998 | 709 | 427 | 1,506 |  |  | 6,514
Total commercial | $ | 53,984 |  | $ | 18,123 |  | $ | 12,997 |  | $ | 13,538 |  | $ | 8,745 |  | $ | 24,043 |  | $ | 93,519 |  | $ | 100 |  | $ | 225,049 |
| Term Loans by Origination Year |  |  |
December 31, 2021 In millions | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Commercial and industrial |  |  |  |  |  |  |  |  |
Pass Rated | $ | 27,104 |  | $ | 12,053 |  | $ | 10,731 |  | $ | 6,698 |  | $ | 6,355 |  | $ | 11,759 |  | $ | 71,230 |  | $ | 90 |  | $ | 146,020 |
Criticized | 283 | 368 |  | 815 |  | 649 |  | 496 |  | 824 |  | 3,448 |  | 30 |  | 6,913 |
Total commercial and industrial | 27,387 |  | 12,421 |  | 11,546 |  | 7,347 |  | 6,851 |  | 12,583 |  | 74,678 |  | 120 |  | 152,933 |
Commercial real estate |  |  |  |  |  |  |  |  |
Pass Rated | 4,110 |  | 4,109 |  | 6,355 |  | 4,234 |  | 2,634 |  | 7,562 |  | 436 |  |  | 29,440 |
Criticized | 294 |  | 298 |  | 999 |  | 820 |  | 566 |  | 1,552 |  | 46 |  |  | 4,575 |
Total commercial real estate | 4,404 |  | 4,407 |  | 7,354 |  | 5,054 |  | 3,200 |  | 9,114 |  | 482 |  |  | 34,015 |
Equipment lease financing |  |  |  |  |  |  |  |  |
Pass Rated | 1,212 |  | 1,190 |  | 942 |  | 682 |  | 507 |  | 1,410 |  |  |  | 5,943 |
Criticized | 37 |  | 54 |  | 41 |  | 29 |  | 19 |  | 7 |  |  |  | 187 |
Total equipment lease financing | 1,249 |  | 1,244 |  | 983 |  | 711 |  | 526 |  | 1,417 |  |  |  | 6,130 |
Total commercial | $ | 33,040 |  | $ | 18,072 |  | $ | 19,883 |  | $ | 13,112 |  | $ | 10,577 |  | $ | 23,114 |  | $ | 75,160 |  | $ | 120 |  | $ | 193,078 |
(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 December 31, 2022 and 2021. Residential Real Estate and Home Equity We use several credit quality indicators, including delinquency information, nonperforming loan information, updated credit scores and originated and updated LTV ratios, to monitor and manage credit risk within the residential real estate and home equity loan classes. A summary of credit quality indicators follows: Delinquency/Delinquency Rates: We monitor trending of delinquency/delinquency rates for residential real estate and home equity loans. See Table 55 for additional information. Nonperforming Loans: We monitor trending of nonperforming loans for residential real estate and home equity loans. See Table 55 for additional information. Credit Scores: We use a national third-party provider to update FICO credit scores for residential real estate and home equity loans at least quarterly. The updated scores are incorporated into a series of credit management reports, which are utilized to monitor the risk in the loan classes. LTV (inclusive of CLTV for first and subordinate lien positions): At least quarterly, we update the property values of real estate collateral and calculate an updated LTV ratio. For open-end credit lines secured by real estate in regions experiencing significant declines in property values, more frequent valuations may occur. We examine LTV migration and stratify LTV into categories to monitor the risk in the loan classes. We use a combination of original LTV and updated LTV for internal risk management and reporting purposes (e.g., line management, loss mitigation strategies). In addition to the fact that estimated property values by their nature are estimates, given certain data limitations, it is important to note that updated LTVs may be based upon management’s assumptions (i.e., if an updated LTV is not provided by the third-party service provider, HPI changes will be incorporated in arriving at management’s estimate of updated LTV). Updated LTV is estimated using modeled property values. The related estimates and inputs are based upon an approach that uses a combination of third-party automated valuation models, broker price opinions, HPI indices, property location, internal and external balance information, origination data and management assumptions. We generally utilize origination lien balances provided by a third-party, where applicable, which do not include an amortization assumption when calculating updated LTV. Accordingly, the results of the calculations do not represent actual appraised loan level collateral or updated LTV based upon lien balances held by others, and as such, are necessarily imprecise and subject to change as we refine our methodology. The following table presents credit quality indicators for the residential real estate and home equity loan classes: Table 55: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes
| Term Loans by Origination Year |  |  |
December 31, 2022 In millions | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Residential real estate |  |  |  |  |  |  |  |  |
Current estimated LTV ratios |  |  |  |  |  |  |  |  |
Greater than 100% | $ | 4 |  | $ | 52 |  | $ | 20 |  | $ | 10 |  | $ | 4 |  | $ | 41 |  |  |  | $ | 131 |
Greater than or equal to 80% to 100% | 1,185 |  | 678 |  | 232 |  | 84 |  | 24 |  | 92 |  |  |  | 2,295 |
Less than 80% | 9,396 |  | 15,844 |  | 7,074 |  | 2,346 |  | 822 |  | 7,220 |  |  |  | 42,702 |
No LTV available |  |  | 61 |  |  |  | 3 |  |  | 4 |  |  |  | 68 |
Government insured or guaranteed loans | 9 |  | 15 |  | 66 |  | 39 |  | 28 |  | 536 |  |  |  | 693 |
Total residential real estate | $ | 10,594 |  | $ | 16,650 |  | $ | 7,392 |  | $ | 2,482 |  | $ | 878 |  | $ | 7,893 |  |  |  | $ | 45,889 |
Updated FICO scores |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 6,825 |  | $ | 12,596 |  | $ | 5,276 |  | $ | 1,623 |  | $ | 463 |  | $ | 4,027 |  |  |  | $ | 30,810 |
720 to 779 | 3,172 |  | 3,024 |  | 1,369 |  | 476 |  | 180 |  | 1,457 |  |  |  | 9,678 |
660 to 719 | 514 |  | 744 |  | 378 |  | 189 |  | 98 |  | 796 |  |  |  | 2,719 |
Less than 660 | 63 |  | 108 |  | 110 |  | 88 |  | 71 |  | 740 |  |  |  | 1,180 |
No FICO score available | 11 |  | 163 |  | 193 |  | 67 |  | 38 |  | 337 |  |  |  | 809 |
Government insured or guaranteed loans | 9 |  | 15 |  | 66 |  | 39 |  | 28 |  | 536 |  |  |  | 693 |
Total residential real estate | $ | 10,594 |  | $ | 16,650 |  | $ | 7,392 |  | $ | 2,482 |  | $ | 878 |  | $ | 7,893 |  |  |  | $ | 45,889 |
Home equity |  |  |  |  |  |  |  |  |
Current estimated LTV ratios |  |  |  |  |  |  |  |  |
Greater than 100% |  |  | $ | 4 |  | $ | 14 |  | $ | 9 |  | $ | 2 |  | $ | 15 |  | $ | 268 |  | $ | 137 |  | $ | 449 |
Greater than or equal to 80% to 100% |  |  | 4 |  | 51 |  | 27 |  | 4 |  | 31 |  | 854 |  | 1,149 |  | 2,120 |
Less than 80% |  | 172 |  | 2,078 |  | 961 |  | 285 |  | 2,851 |  | 7,780 |  | 9,287 |  | 23,414 |
Total home equity |  |  | $ | 180 |  | $ | 2,143 |  | $ | 997 |  | $ | 291 |  | $ | 2,897 |  | $ | 8,902 |  | $ | 10,573 |  | $ | 25,983 |
Updated FICO scores |  |  |  |  |  |  |  |  |
Greater than or equal to 780 |  |  | $ | 110 |  | $ | 1,357 |  | $ | 554 |  | $ | 155 |  | $ | 1,791 |  | $ | 5,093 |  | $ | 5,545 |  | $ | 14,605 |
720 to 779 |  |  | 47 |  | 515 |  | 248 |  | 64 |  | 567 |  | 2,305 |  | 2,843 |  | 6,589 |
660 to 719 |  |  | 19 |  | 211 |  | 140 |  | 42 |  | 288 |  | 1,146 |  | 1,449 |  | 3,295 |
Less than 660 |  | 4 |  | 57 |  | 54 |  | 29 |  | 242 |  | 342 |  | 671 |  | 1,399 |
No FICO score available |  |  |  | 3 |  | 1 |  | 1 |  | 9 |  | 16 |  | 65 |  | 95 |
Total home equity |  |  | $ | 180 |  | $ | 2,143 |  | $ | 997 |  | $ | 291 |  | $ | 2,897 |  | $ | 8,902 |  | $ | 10,573 |  | $ | 25,983 |
(Continued from previous page) | Term Loans by Origination Year |  |  |
December 31, 2021 In millions | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Residential real estate |  |  |  |  |  |  |  |  |
Current estimated LTV ratios |  |  |  |  |  |  |  |  |
Greater than 100% | $ | 10 |  | $ | 52 |  | $ | 21 |  | $ | 12 |  | $ | 13 |  | $ | 77 |  |  |  | $ | 185 |
Greater than or equal to 80% to 100% | 1,460 |  | 560 |  | 221 |  | 86 |  | 66 |  | 190 |  |  |  | 2,583 |
Less than 80% | 15,213 |  | 7,822 |  | 2,834 |  | 1,004 |  | 1,570 |  | 7,385 |  |  |  | 35,828 |
No LTV available | 275 |  | 6 |  | 1 |  | 1 |  |  | 22 |  |  |  | 305 |
Government insured or guaranteed loans | 3 |  | 33 |  | 37 |  | 30 |  | 39 |  | 669 |  |  |  | 811 |
Total residential real estate | $ | 16,961 |  | $ | 8,473 |  | $ | 3,114 |  | $ | 1,133 |  | $ | 1,688 |  | $ | 8,343 |  |  |  | $ | 39,712 |
Updated FICO scores |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 11,110 |  | $ | 5,898 |  | $ | 1,996 |  | $ | 596 |  | $ | 1,029 |  | $ | 4,052 |  |  |  | $ | 24,681 |
720 to 779 | 4,921 |  | 1,735 |  | 643 |  | 247 |  | 345 |  | 1,619 |  |  |  | 9,510 |
660 to 719 | 717 |  | 463 |  | 255 |  | 136 |  | 133 |  | 796 |  |  |  | 2,500 |
Less than 660 | 83 |  | 103 |  | 96 |  | 75 |  | 94 |  | 848 |  |  |  | 1,299 |
No FICO score available | 127 |  | 241 |  | 87 |  | 49 |  | 48 |  | 359 |  |  |  | 911 |
Government insured or guaranteed loans | 3 |  | 33 |  | 37 |  | 30 |  | 39 |  | 669 |  |  |  | 811 |
Total residential real estate | $ | 16,961 |  | $ | 8,473 |  | $ | 3,114 |  | $ | 1,133 |  | $ | 1,688 |  | $ | 8,343 |  |  |  | $ | 39,712 |
Home equity |  |  |  |  |  |  |  |  |
Current estimated LTV ratios |  |  |  |  |  |  |  |  |
Greater than 100% | $ | 1 |  | $ | 16 |  | $ | 14 |  | $ | 3 |  | $ | 2 |  | $ | 25 |  | $ | 329 |  | $ | 90 |  | $ | 480 |
Greater than or equal to 80% to 100% | 7 |  | 85 |  | 62 |  | 13 |  | 11 |  | 66 |  | 990 |  | 674 |  | 1,908 |
Less than 80% | 204 |  | 2,487 |  | 1,189 |  | 370 |  | 549 |  | 3,200 |  | 7,868 |  | 5,806 |  | 21,673 |
Total home equity | $ | 212 |  | $ | 2,588 |  | $ | 1,265 |  | $ | 386 |  | $ | 562 |  | $ | 3,291 |  | $ | 9,187 |  | $ | 6,570 |  | $ | 24,061 |
Updated FICO scores |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 124 |  | $ | 1,619 |  | $ | 692 |  | $ | 201 |  | $ | 364 |  | $ | 2,035 |  | $ | 5,490 |  | $ | 3,320 |  | $ | 13,845 |
720 to 779 | 61 |  | 666 |  | 348 |  | 96 |  | 116 |  | 642 |  | 2,283 |  | 1,679 |  | 5,891 |
660 to 719 | 23 |  | 248 |  | 167 |  | 56 |  | 53 |  | 327 |  | 1,071 |  | 872 |  | 2,817 |
Less than 660 | 4 |  | 53 | 57 |  | 32 |  | 28 |  | 277 |  | 325 |  | 615 |  | 1,391 |
No FICO score available |  |  | 2 | 1 |  | 1 |  | 1 |  | 10 |  | 18 |  | 84 |  | 117 |
Total home equity | $ | 212 |  | $ | 2,588 |  | $ | 1,265 |  | $ | 386 |  | $ | 562 |  | $ | 3,291 |  | $ | 9,187 |  | $ | 6,570 |  | $ | 24,061 |
Automobile, Credit Card, Education and Other Consumer We monitor a variety of credit quality information in the management of these consumer loan classes. For all loan types, we generally use a combination of internal loan parameters as well as an updated FICO score. We use FICO scores as a primary credit quality indicator for automobile and credit card loans, as well as non-government guaranteed or non-insured education loans and other secured and unsecured lines and loans. Internal credit metrics, such as delinquency status, are heavily relied upon as credit quality indicators for government guaranteed or insured education loans and consumer loans to high net worth individuals, as internal credit metrics are more relevant than FICO scores for these types of loans. Along with the monitoring of delinquency trends and losses for each class, FICO credit score updates are obtained at least quarterly along with a variety of credit bureau attributes. Loans with high FICO scores tend to have a lower likelihood of loss. Conversely, loans with low FICO scores tend to have a higher likelihood of loss. The following table presents credit quality indicators for the automobile, credit card, education and other consumer loan classes: Table 56: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes
| Term Loans by Origination Year |  |  |
December 31, 2022 In millions | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Updated FICO Scores |  |  |  |  |  |  |  |  |
Automobile |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 2,390 |  | $ | 2,162 |  | $ | 922 |  | $ | 760 |  | $ | 241 |  | $ | 75 |  |  |  | $ | 6,550 |
720 to 779 | 1,702 |  | 1,312 |  | 561 |  | 538 |  | 222 |  | 69 |  |  |  | 4,404 |
660 to 719 | 854 |  | 660 |  | 341 |  | 401 |  | 187 |  | 56 |  |  |  | 2,499 |
Less than 660 | 193 |  | 290 |  | 230 |  | 368 |  | 228 |  | 74 |  |  |  | 1,383 |
Total automobile | $ | 5,139 |  | $ | 4,424 |  | $ | 2,054 |  | $ | 2,067 |  | $ | 878 |  | $ | 274 |  |  |  | $ | 14,836 |
Credit card |  |  |  |  |  |  |  |  |
Greater than or equal to 780 |  |  |  |  |  |  | $ | 1,954 |  | $ | 2 |  | $ | 1,956 |
720 to 779 |  |  |  |  |  |  | 1,994 |  | 6 |  | 2,000 |
660 to 719 |  |  |  |  |  |  | 1,957 |  | 13 |  | 1,970 |
Less than 660 |  |  |  |  |  |  | 1,001 |  | 35 |  | 1,036 |
No FICO score available or required (a) |  |  |  |  |  |  | 104 |  | 3 |  | 107 |
Total credit card |  |  |  |  |  |  | $ | 7,010 |  | $ | 59 |  | $ | 7,069 |
Education |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 42 |  | $ | 53 |  | $ | 48 |  | $ | 61 |  | $ | 51 |  | $ | 357 |  |  |  | $ | 612 |
720 to 779 | 39 |  | 27 |  | 24 |  | 30 |  | 24 |  | 143 |  |  |  | 287 |
660 to 719 | 21 |  | 8 |  | 8 |  | 9 |  | 8 |  | 59 |  |  |  | 113 |
Less than 660 | 4 |  | 1 |  | 1 |  | 2 |  | 2 |  | 24 |  |  |  | 34 |
No FICO score available or required (a) | 20 |  | 8 |  | 7 |  | 3 |  |  | 1 |  |  |  | 39 |
Education loans using FICO credit metric | 126 |  | 97 |  | 88 |  | 105 |  | 85 |  | 584 |  |  |  | 1,085 |
Other internal credit metrics |  |  |  |  |  | 1,088 |  |  |  | 1,088 |
Total education | $ | 126 |  | $ | 97 |  | $ | 88 |  | $ | 105 |  | $ | 85 |  | $ | 1,672 |  |  |  | $ | 2,173 |
Other consumer |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 224 |  | $ | 97 |  | $ | 53 |  | $ | 46 |  | $ | 14 |  | $ | 18 |  | $ | 47 |  | $ | 2 |  | $ | 501 |
720 to 779 | 302 |  | 122 |  | 68 |  | 62 |  | 20 |  | 15 |  | 89 |  | 2 |  | 680 |
660 to 719 | 229 |  | 110 |  | 68 |  | 66 |  | 28 |  | 8 |  | 95 |  | 2 |  | 606 |
Less than 660 | 32 |  | 48 |  | 37 |  | 40 |  | 20 |  | 6 |  | 44 |  | 2 |  | 229 |
Other consumer loans using FICO credit metric | 787 |  | 377 |  | 226 |  | 214 |  | 82 |  | 47 |  | 275 |  | 8 |  | 2,016 |
Other internal credit metrics | 125 |  | 43 |  | 40 |  | 34 |  | 7 |  | 29 |  | 2,720 |  | 12 |  | 3,010 |
Total other consumer | $ | 912 |  | $ | 420 |  | $ | 266 |  | $ | 248 |  | $ | 89 |  | $ | 76 |  | $ | 2,995 |  | $ | 20 |  | $ | 5,026 |
(Continued from previous page) | Term Loans by Origination Year |  |  |
December 31, 2021 In millions | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Updated FICO Scores |  |  |  |  |  |  |  |  |
Automobile |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 3,247 |  | $ | 1,496 |  | $ | 1,380 |  | $ | 533 |  | $ | 226 |  | $ | 79 |  |  |  | $ | 6,961 |
720 to 779 | 2,119 |  | 983 |  | 1,030 |  | 499 |  | 195 |  | 62 |  |  |  | 4,888 |
660 to 719 | 969 |  | 609 |  | 772 |  | 413 |  | 155 |  | 44 |  |  |  | 2,962 |
Less than 660 | 277 |  | 315 |  | 583 |  | 429 |  | 162 |  | 58 |  |  |  | 1,824 |
Total automobile | $ | 6,612 |  | $ | 3,403 |  | $ | 3,765 |  | $ | 1,874 |  | $ | 738 |  | $ | 243 |  |  |  | $ | 16,635 |
Credit card |  |  |  |  |  |  |  |  |
Greater than or equal to 780 |  |  |  |  |  |  | $ | 1,815 |  | $ | 2 |  | $ | 1,817 |
720 to 779 |  |  |  |  |  |  | 1,836 |  | 9 |  | 1,845 |
660 to 719 |  |  |  |  |  |  | 1,856 |  | 19 |  | 1,875 |
Less than 660 |  |  |  |  |  |  | 943 |  | 29 |  | 972 |
No FICO score available or required (a) |  |  |  |  |  |  | 114 |  | 3 |  | 117 |
Total credit card |  |  |  |  |  |  | $ | 6,564 |  | $ | 62 |  | $ | 6,626 |
Education |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 37 |  | $ | 60 |  | $ | 77 |  | $ | 62 |  | $ | 48 |  | $ | 392 |  |  |  | $ | 676 |
720 to 779 | 20 |  | 29 |  | 37 |  | 30 |  | 21 |  | 160 |  |  |  | 297 |
660 to 719 | 7 |  | 9 |  | 11 |  | 11 |  | 7 |  | 73 |  |  |  | 118 |
Less than 660 | 1 |  | 1 |  | 2 |  | 2 |  | 2 |  | 25 |  |  |  | 33 |
No FICO score available or required (a) | 11 |  | 10 |  | 7 |  | 2 |  |  | 1 |  |  |  | 31 |
Education loans using FICO credit metric | 76 |  | 109 |  | 134 |  | 107 |  | 78 |  | 651 |  |  |  | 1,155 |
Other internal credit metrics |  |  |  |  |  | 1,378 |  |  |  | 1,378 |
Total education | $ | 76 |  | $ | 109 |  | $ | 134 |  | $ | 107 |  | $ | 78 |  | $ | 2,029 |  |  |  | $ | 2,533 |
Other consumer |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 199 |  | $ | 131 |  | $ | 123 |  | $ | 47 |  | $ | 12 |  | $ | 32 |  | $ | 95 |  | $ | 1 |  | $ | 640 |
720 to 779 | 250 |  | 172 |  | 167 |  | 68 |  | 15 |  | 19 |  | 125 |  |  | 816 |
660 to 719 | 190 |  | 145 |  | 165 |  | 82 |  | 16 |  | 11 |  | 122 |  |  |  | 731 |
Less than 660 | 50 |  | 62 |  | 85 |  | 54 |  | 10 |  | 6 |  | 50 |  | 1 |  | 318 |
Other consumer loans using FICO credit metric | 689 |  | 510 |  | 540 |  | 251 |  | 53 |  | 68 |  | 392 |  | 2 |  | 2,505 |
Other internal credit metrics | 87 |  | 31 |  | 35 |  | 23 |  | 22 |  | 48 |  | 2,955 |  | 21 |  | 3,222 |
Total other consumer | $ | 776 |  | $ | 541 |  | $ | 575 |  | $ | 274 |  | $ | 75 |  | $ | 116 |  | $ | 3,347 |  | $ | 23 |  | $ | 5,727 |
(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. Troubled Debt Restructurings A TDR is a loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulty. See Note 1 Accounting Policies for additional information related to TDRs. Table 57 quantifies the number of loans that were classified as TDRs as well as the change in the loans’ balance as a result of becoming a TDR during 2022, 2021 and 2020. Additionally, the table provides information about the types of TDR concessions. The Principal Forgiveness TDR category includes principal forgiveness and accrued interest forgiveness. The Rate Reduction TDR category includes reduced interest rate and interest deferral. The Other TDR category primarily includes consumer borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their loan obligations to us, as well as postponement/reduction of scheduled amortization and contractual extensions for both consumer and commercial borrowers. In some cases, there have been multiple concessions granted on one loan. This is most common within the commercial loan portfolio. When there have been multiple concessions granted in the commercial loan portfolio, the principal forgiveness concession was prioritized for purposes of determining the inclusion in Table 57. Second in priority would be rate reduction. In the event that multiple concessions are granted on a consumer loan, concessions resulting from discharge from personal liability through Chapter 7 bankruptcy without formal affirmation of the loan obligations to us would be prioritized and included in the Other type of concession in Table 57. After that, consumer loan concessions would follow the previously discussed priority of concessions for the commercial loan portfolio. Table 57: Financial Impact and TDRs by Concession Type (a)
|  | Number of Loans |  | Pre-TDR Amortized Cost Basis (b) |  | Post-TDR Amortized Cost Basis (c)
During the year ended December 31, 2022 Dollars in millions |  | Principal Forgiveness |  | Rate Reduction |  | Other |  | Total
Commercial |  | 57 |  |  | $ | 363 |  |  | $ | 9 |  |  | $ | 58 |  |  | $ | 202 |  |  | $ | 269 |
Consumer |  | 10,809 |  |  | 162 |  |  |  |  | 123 |  |  | 22 |  |  | 145 |
Total TDRs |  | 10,866 |  |  | $ | 525 |  |  | $ | 9 |  |  | $ | 181 |  |  | $ | 224 |  |  | $ | 414 |
During the year ended December 31, 2021 Dollars in millions |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 57 |  |  | $ | 536 |  |  | $ | 6 |  |  |  |  | $ | 510 |  |  | $ | 516 |
Consumer |  | 6,109 |  |  | 108 |  |  |  |  | $ | 64 |  |  | 33 |  |  | 97 |
Total TDRs |  | 6,166 |  |  | $ | 644 |  |  | $ | 6 |  |  | $ | 64 |  |  | $ | 543 |  |  | $ | 613 |
During the year ended December 31, 2020 Dollars in millions |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 73 |  |  | $ | 513 |  |  | $ | 39 |  |  | $ | 56 |  |  | $ | 346 |  |  | $ | 441 |
Consumer |  | 12,270 |  |  | 178 |  |  |  |  | 88 |  |  | 73 |  |  | 161 |
Total TDRs |  | 12,343 |  |  | $ | 691 |  |  | $ | 39 |  |  | $ | 144 |  |  | $ | 419 |  |  | $ | 602 |
(a)Impact of partial charge-offs at TDR date are included in this table. (b)Represents the amortized cost basis of the loans as of the quarter end prior to TDR designation. (c)Represents the amortized cost basis of the TDRs as of the end of the quarter in which the TDR occurs. After a loan is determined to be a TDR, we continue to track its performance under its most recent restructured terms. We consider a TDR to have subsequently defaulted when it becomes 60 days past due after the most recent date the loan was restructured. Loans that were both (i) classified as TDRs, and (ii) subsequently defaulted during the period totaled $0.1 billion for each of the years ended December 31, 2022, 2021 and 2020, respectively. Allowance for Credit Losses We maintain the ACL related to loans at levels that we believe to be appropriate to absorb expected credit losses in the portfolios as of the balance sheet date. See Note 1 Accounting Policies for a discussion of the methodologies used to determine this allowance. A rollforward of the ACL related to loans follows: Table 58: Rollforward of Allowance for Credit Losses
At or for the year ended December 31 | 2022 |  |  | 2021 |  | 2020 |
In millions | Commercial | Consumer | Total |  |  | Commercial | Consumer | Total |  | Commercial | Consumer | Total |
Allowance for loan and lease losses |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 3,185 |  | $ | 1,683 |  | $ | 4,868 |  |  |  | $ | 3,337 |  | $ | 2,024 |  | $ | 5,361 |  |  | $ | 1,812 |  | $ | 930 |  | $ | 2,742 |  |
Adoption of ASU 2016-13 (a) |  |  |  |  |  |  |  |  |  | (304) |  | 767 |  | 463 |  |
Beginning balance, adjusted | 3,185 |  | 1,683 |  | 4,868 |  |  |  | 3,337 |  | 2,024 |  | 5,361 |  |  | 1,508 |  | 1,697 |  | 3,205 |  |
Acquisition PCD reserves |  |  |  |  |  | 774 |  | 282 |  | 1,056 |  |  |  |  |  |
Charge-offs | (307) |  | (678) |  | (985) |  |  |  | (434) |  | (667) |  | (1,101) |  |  | (407) |  | (785) |  | (1,192) |  |
Recoveries | 114 |  | 308 |  | 422 |  |  |  | 106 |  | 338 |  | 444 |  |  | 94 |  | 266 |  | 360 |  |
Net (charge-offs) | (193) |  | (370) |  | (563) |  |  |  | (328) |  | (329) |  | (657) |  |  | (313) |  | (519) |  | (832) |  |
Provision for (recapture of) credit losses | 126 |  | 313 |  | 439 |  |  |  | (594) |  | (293) |  | (887) |  |  | 2,139 |  | 846 |  | 2,985 |  |
Other | (4) |  | 1 |  | (3) |  |  |  | (4) |  | (1) |  | (5) |  |  | 3 |  |  | 3 |  |
Ending balance | $ | 3,114 |  | $ | 1,627 |  | $ | 4,741 |  |  |  | $ | 3,185 |  | $ | 1,683 |  | $ | 4,868 |  |  | $ | 3,337 |  | $ | 2,024 |  | $ | 5,361 |  |
Allowance for unfunded lending related commitments (b) |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 564 |  | $ | 98 |  | $ | 662 |  |  |  | $ | 485 |  | $ | 99 |  | $ | 584 |  |  | $ | 316 |  | $ | 2 |  | $ | 318 |  |
Adoption of ASU 2016-13 (a) |  |  |  |  |  |  |  |  |  | 53 |  | 126 |  | 179 |  |
Beginning balance, adjusted | 564 |  | 98 |  | 662 |  |  |  | 485 |  | 99 |  | 584 |  |  | 369 |  | 128 |  | 497 |  |
Acquisition PCD reserves |  |  |  |  |  |  | 43 |  | 3 |  | 46 |  |  |  |  |  |
Provision for (recapture of) credit losses | 49 |  | (17) |  | 32 |  |  |  | 36 |  | (4) |  | 32 |  |  | 116 |  | (29) |  | 87 |  |
Ending balance | $ | 613 |  | $ | 81 |  | $ | 694 |  |  |  | $ | 564 |  | $ | 98 |  | $ | 662 |  |  | $ | 485 |  | $ | 99 |  | $ | 584 |  |
Allowance for credit losses at December 31 (c) | $ | 3,727 |  | $ | 1,708 |  | $ | 5,435 |  |  |  | $ | 3,749 |  | $ | 1,781 |  | $ | 5,530 |  |  | $ | 3,822 |  | $ | 2,123 |  | $ | 5,945 |  |
(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) See Note 11 Commitments for additional information about the underlying commitments related to this allowance. (c) Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $176 million, $171 million and $109 million at December 31, 2022, 2021 and 2020 respectively. The ACL related to loans at December 31, 2022 totaled $5.4 billion, a decrease of $0.1 billion since December 31, 2021. The decline in reserves was primarily driven by the reassessment of pandemic-related risks and improvements in credit quality, partially offset by our weakened economic outlook along with loan growth.

X
- Definition Asset Quality + References No definition available. + Details
Name: | pnc_AssetQualityAbstract
Namespace Prefix: | pnc_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI https://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2196816 + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration