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Credit Quality And Allowance For Credit Losses
 12 Months Ended
Dec. 31, 2021
Credit Quality And Allowance For Credit Losses [Abstract]  
Credit Quality And Allowance For Credit Losses CREDIT QUALITY AND ALLOWANCE FOR CREDIT LOSSES
The following table presents an aging analysis of the amortized cost basis of loans.
Loans Past Due and Still Accruing   
(in millions)30-59
Days		60-89 
Days		90 Days
or More		TotalNonaccrual
Loans		Current
Loans (a)		Total 
Loans
December 31, 2021
Business loans:
Commercial$35 $18 $6 $59 $173 $29,134 $29,366 
Real estate construction:
Commercial Real Estate business line (b)
— — — — — 2,391 2,391 
Other business lines (c)15 1 — 16 6 535 557 
Total real estate construction15 1 — 16 6 2,926 2,948 
Commercial mortgage:
Commercial Real Estate business line (b)
— — — — 1 3,337 3,338 
Other business lines (c)18 4 16 38 31 7,848 7,917 
Total commercial mortgage18 4 16 38 32 11,185 11,255 
Lease financing5 — — 5 — 635 640 
International5 8 1 14 5 1,189 1,208 
Total business loans78 31 23 132 216 45,069 45,417 
Retail loans:
Residential mortgage4 — — 4 36 1,731 1,771 
Consumer:
Home equity4 3 — 7 12 1,514 1,533 
Other consumer32 1 4 37 — 527 564 
Total consumer36 4 4 44 12 2,041 2,097 
Total retail loans40 4 4 48 48 3,772 3,868 
Total loans$118 $35 $27 $180 $264 $48,841 $49,285 
December 31, 2020
Business loans:
Commercial$62 $115 $33 $210 $252 $32,291 $32,753 
Real estate construction:
Commercial Real Estate business line (b)
31 — — 31 — 3,626 3,657 
Other business lines (c)9 — — 9 1 415 425 
Total real estate construction40 — — 40 1 4,041 4,082 
Commercial mortgage:
Commercial Real Estate business line (b)
51 1 — 52 3 2,218 2,273 
Other business lines (c)48 40 5 93 26 7,520 7,639 
Total commercial mortgage99 41 5 145 29 9,738 9,912 
Lease financing14 — 1 15 1 578 594 
International— — — — — 926 926 
Total business loans215 156 39 410 283 47,574 48,267 
Retail loans:
Residential mortgage11 4 — 15 47 1,768 1,830 
Consumer:
Home equity7 1 — 8 17 1,563 1,588 
Other consumer10 — 6 16 — 590 606 
Total consumer17 1 6 24 17 2,153 2,194 
Total retail loans28 5 6 39 64 3,921 4,024 
Total loans$243 $161 $45 $449 $347 $51,495 $52,291 
(a)Includes $22 million and $141 million of loans with deferred payments not considered past due in accordance with the CARES Act, at December 31, 2021 and 2020, respectively.
(b)Primarily loans to real estate developers.
(c)Primarily loans secured by owner-occupied real estate.
The following table presents loans by credit quality indicator (CQI) and vintage year. CQI is based on internal risk ratings assigned to each business loan at the time of approval and subjected to subsequent reviews, generally at least annually, and to pools of retail loans with similar risk characteristics. Vintage year is the year of origination or major modification.
 December 31, 2021
Vintage Year
(in millions)20212020201920182017PriorRevolversRevolvers Converted to TermTotal
Business loans:
Commercial:
Pass (a)$5,270 (b)$1,740 (b)$1,528 $947 $713 $763 $17,241 $10 $28,212 
Criticized (c)101 120 105 86 26 94 620 2 1,154 
Total commercial5,371 1,860 1,633 1,033 739 857 17,861 12 29,366 
Real estate construction
Pass (a)458 858 849 424 158 34 132 — 2,913 
Criticized (c)— 3 — 13 8 8 3 — 35 
Total real estate construction458 861 849 437 166 42 135 — 2,948 
Commercial mortgage
Pass (a)2,491 1,932 1,444 1,343 1,018 2,298 481 — 11,007 
Criticized (c)17 44 50 22 23 87 5 — 248 
Total commercial mortgage2,508 1,976 1,494 1,365 1,041 2,385 486 — 11,255 
Lease financing
Pass (a)166 88 97 50 38 179 — — 618 
Criticized (c)— 2 10 8 1 1 — — 22 
Total lease financing166 90 107 58 39 180 — — 640 
International
Pass (a)381 141 103 29 1 16 480 — 1,151 
Criticized (c)20 10 3 5 4 8 7 — 57 
Total international401 151 106 34 5 24 487 — 1,208 
Total business loans8,904 4,938 4,189 2,927 1,990 3,488 18,969 12 45,417 
Retail loans:
Residential mortgage
Pass (a)443 527 164 83 111 407 — — 1,735 
Criticized (c)5 — 1 2 7 21 — — 36 
Total residential mortgage448 527 165 85 118 428 — — 1,771 
Consumer:
Home equity
Pass (a)— — — — — 11 1,460 45 1,516 
Criticized (c)— — — — — 1 12 4 17 
Total home equity— — — — — 12 1,472 49 1,533 
Other consumer
Pass (a)101 68 13 9 1 31 337 — 560 
Criticized (c)— — — — — — 4 — 4 
Total other consumer101 68 13 9 1 31 341 — 564 
Total consumer101 68 13 9 1 43 1,813 49 2,097 
Total retail loans549 595 178 94 119 471 1,813 49 3,868 
Total loans$9,453 $5,533 $4,367 $3,021 $2,109 $3,959 $20,782 $61 $49,285 
Table continues on the following page.
December 31, 2020
Vintage Year
20202019201820172016PriorRevolversRevolvers Converted to TermTotal
Business loans:
Commercial:
Pass (a)$5,991 (b)$2,316 $1,563 $1,051 $429 $755 $18,416 $17 $30,538 
Criticized (c)30 281 191 116 64 166 1,365 2 2,215 
Total commercial6,021 2,597 1,754 1,167 493 921 19,781 19 32,753 
Real estate construction:
Pass (a)433 1,080 1,244 631 335 141 171 — 4,035 
Criticized (c)3 28 5 8 — 1 2 — 47 
Total real estate construction436 1,108 1,249 639 335 142 173 — 4,082 
Commercial mortgage:
Pass (a)2,053 1,559 1,146 1,120 818 2,272 431 — 9,399 
Criticized (c)47 130 42 45 41 193 15 — 513 
Total commercial mortgage2,100 1,689 1,188 1,165 859 2,465 446 — 9,912 
Lease financing
Pass (a)109 122 71 50 14 201 — — 567 
Criticized (c)2 17 5 2 1 — — — 27 
Total lease financing111 139 76 52 15 201 — — 594 
International
Pass (a)274 161 103 11 3 64 245 — 861 
Criticized (c)13 8 18 4 7 2 13 — 65 
Total international287 169 121 15 10 66 258 — 926 
Total business loans8,955 5,702 4,388 3,038 1,712 3,795 20,658 19 48,267 
Retail loans:
Residential mortgage
Pass (a)639 230 119 197 196 398 — — 1,779 
Criticized (c)7 2 2 6 2 32 — — 51 
Total residential mortgage646 232 121 203 198 430 — — 1,830 
Consumer:
Home equity
Pass (a)— — — — — 15 1,489 63 1,567 
Criticized (c)— — — — — 1 13 7 21 
Total home equity— — — — — 16 1,502 70 1,588 
Other consumer
Pass (a)113 23 12 2 3 41 404 — 598 
Criticized (c)— — 2 — — — 6 — 8 
Total other consumer113 23 14 2 3 41 410 — 606 
Total consumer113 23 14 2 3 57 1,912 70 2,194 
Total retail loans759 255 135 205 201 487 1,912 70 4,024 
Total loans$9,714 $5,957 $4,523 $3,243 $1,913 $4,282 $22,570 $89 $52,291 
(a)Includes all loans not included in the categories of special mention, substandard or nonaccrual.
(b)Includes Small Business Administration Paycheck Protection Program (PPP) loans of $292 million and $166 million originating in 2021 and 2020, respectively, at December 31, 2021, and PPP loans of $3.5 billion originating in 2020 at December 31, 2020.
(c)Includes loans with an internal rating of special mention, substandard loans for which the accrual of interest has not been discontinued and nonaccrual loans. Special mention loans have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Accruing substandard loans have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans are also distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies. These categories are generally consistent with the "special mention" and "substandard" categories as defined by regulatory authorities. A minority of nonaccrual loans are consistent with the "doubtful" category.
Loan interest receivable totaled $120 million and $141 million at December 31, 2021 and 2020, respectively, and was included in accrued income and other assets on the Consolidated Balance Sheets.
Allowance for Credit Losses
The following table details the changes in the allowance for credit losses.
 202120202019
(in millions)Business LoansRetail LoansTotalBusiness LoansRetail LoansTotalBusiness LoansRetail LoansTotal
Years Ended December 31,
Balance at beginning of period:
Allowance for loan losses$895 $53 $948 $601 $36 $637 $627 $44 $671 
Allowance for credit losses on lending-related commitments35 9 44 28 3 31 26 4 30 
Allowance for credit losses930 62 992 629 39 668 653 48 701 
Cumulative effect of change in accounting principle— — — (42)25 (17)— — — 
Loan charge-offs(67)(3)(70)(233)(5)(238)(147)(5)(152)
Recoveries on loans previously charged-off76 4 80 38 4 42 40 5 45 
Net loan recoveries (charge-offs)9 1 10 (195)(1)(196)(107)— (107)
Provision for credit losses:
Provision for loan losses(373)3 (370)531 (7)524 81 (8)73 
Provision for credit losses on lending-related commitments(11)(3)(14)7 6 13 2 (1)1 
Provision for credit losses(384)— (384)538 (1)537 83 (9)74 
Balance at end of period:
Allowance for loan losses531 57 588 895 53 948 601 36 637 
Allowance for credit losses on lending-related commitments24 6 30 35 9 44 28 3 31 
Allowance for credit losses$555 $63 $618 $930 $62 $992 $629 $39 $668 
Allowance for loan losses as a percentage of total loans1.17 %1.47 %1.19 %1.85 %1.32 %1.81 %1.30 %0.84 %1.27 %
Allowance for loan losses as a percentage of total loans excluding PPP loans1.18 n/a1.20 2.00n/a1.94n/an/an/a
Allowance for credit losses as a percentage of total loans1.22 1.63 1.26 1.93 1.55 1.90 1.37 0.91 1.33 
Allowance for credit losses as a percentage of total loans excluding PPP loans1.24 n/a1.27 2.08n/a2.03n/an/an/a
n/a - not applicable
Nonaccrual Loans
The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans for the years ended December 31, 2021, 2020 and 2019.
(in millions)Nonaccrual Loans with No Related AllowanceNonaccrual Loans with Related AllowanceTotal
Nonaccrual
Loans
December 31, 2021
Business loans:
Commercial$8 $165 $173 
Real estate construction:
Other business lines (a)— 6 6 
Commercial mortgage:
Commercial Real Estate business line (b)— 1 1 
Other business lines (a)4 27 31 
Total commercial mortgage4 28 32 
International— 5 5 
Total business loans12 204 216 
Retail loans:
Residential mortgage36 — 36 
Consumer:
Home equity12 — 12 
Total retail loans48 — 48 
Total nonaccrual loans$60 $204 $264 
December 31, 2020
Business loans:
Commercial$57 $195 $252 
Real estate construction:
Other business lines (a)— 1 1 
Commercial mortgage:
Commercial Real Estate business line (b)1 2 3 
Other business lines (a)5 21 26 
Total commercial mortgage6 23 29 
Lease financing— 1 1 
Total business loans63 220 283 
Retail loans:
Residential mortgage47 — 47 
Consumer:
Home equity17 — 17 
Total retail loans64 — 64 
Total nonaccrual loans$127 $220 $347 
(a)Primarily loans secured by owner-occupied real estate.
(b)Primarily loans to real estate developers.
Foreclosed Properties
Foreclosed properties totaled $1 million and $8 million at December 31, 2021 and 2020, respectively. There were no retail loans secured by residential real estate properties in process of foreclosure included in nonaccrual loans in either of the years ended December 31, 2021 and 2020.
Troubled Debt Restructurings
The following table details the amortized cost basis at December 31, 2021 and 2020 of loans considered to be TDRs that were restructured during the years ended December 31, 2021 and 2020, by type of modification. In cases of loans with more than one type of modification, the loans were categorized based on the most significant modification.
20212020
Type of ModificationType of Modification
(in millions)Principal Deferrals (a)Interest Rate ReductionsTotal ModificationsPrincipal Deferrals (a)Interest Rate ReductionsTotal Modifications
Years Ended December 31,
Business loans:
Commercial$8 $— $8 $18 $— $18 
Commercial mortgage:
Other business lines (b)— — — 2 — 2 
Total business loans8 — 8 20 — 20 
Retail loans:
Consumer:
Home equity (c)— 2 2 — 2 2 
Total retail loans— 2 2 — 2 2 
Total loans$8 $2 $10 $20 $2 $22 
(a)Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy.
(b)Primarily loans secured by owner-occupied real estate.
(c)Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt.
The Corporation charges interest on principal balances outstanding during deferral periods. Additionally, none of the modifications involved forgiveness of principal. There were no commitments to lend additional funds to borrowers whose terms have been modified in TDRs at December 31, 2021 and 2020. On an ongoing basis, the Corporation monitors the performance of modified loans to their restructured terms. The allowance for loan losses continues to be reassessed on the basis of an individual evaluation of the loan. Loans with terms extended by more than an insignificant time period in accordance with the provisions of the CARES Act, primarily retail loans, were $22 million and $72 million at December 31, 2021 and 2020, respectively and not reported as TDRs.
For principal deferrals, incremental deterioration in the credit quality of the loan, represented by a downgrade in the risk rating of the loan, for example, due to missed interest payments or a reduction of collateral value, is considered a subsequent default. For interest rate reductions, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due. Of the TDRs modified during the years ended December 31, 2021 and 2020, there were no subsequent defaults of principal deferrals or interest rate reductions for the year ended December 31, 2021, compared to $10 million of principal deferrals and no interest rate reductions in the comparable period in 2020.