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Credit Quality And Allowance For Credit Losses
 6 Months Ended
Jun. 30, 2022
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
June 30, 2022
Business loans:
Commercial$51 $9 $2 $62 $161 $31,036 $31,259 
Real estate construction:
Commercial Real Estate business line (b)
2 — — 2 — 1,947 1,949 
Other business lines (c)— 1 4 5 4 507 516 
Total real estate construction2 1 4 7 4 2,454 2,465 
Commercial mortgage:
Commercial Real Estate business line (b)
41 — — 41 1 3,605 3,647 
Other business lines (c)60 8 2 70 28 8,110 8,208 
Total commercial mortgage101 8 2 111 29 11,715 11,855 
Lease financing6 — — 6 — 647 653 
International— — 4 4 5 1,282 1,291 
Total business loans160 18 12 190 199 47,134 47,523 
Retail loans:
Residential mortgage21 1 — 22 49 1,682 1,753 
Consumer:
Home equity3 1 — 4 13 1,615 1,632 
Other consumer4 — — 4 1 541 546 
Total consumer7 1 — 8 14 2,156 2,178 
Total retail loans28 2 — 30 63 3,838 3,931 
Total loans$188 $20 $12 $220 $262 $50,972 $51,454 
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 
(a)Includes $22 million of loans with deferred payments not considered past due in accordance with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) at December 31, 2021.
(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.
June 30, 2022
Vintage Year
(in millions)20222021202020192018PriorRevolversRevolvers Converted to TermTotal
Business loans:
Commercial:
Pass (a)$2,637 (b)$4,101 (b)$1,255 (b)$1,284 $703 $1,233 $18,847 $8 $30,068 
Criticized (c)23 154 113 107 61 107 624 2 1,191 
Total commercial2,660 4,255 1,368 1,391 764 1,340 19,471 10 31,259 
Real estate construction
Pass (a)225 780 765 422 142 38 89 — 2,461 
Criticized (c)— — 3 — 1 — — — 4 
Total real estate construction225 780 768 422 143 38 89 — 2,465 
Commercial mortgage
Pass (a)1,569 2,490 1,736 1,475 1,185 2,750 438 — 11,643 
Criticized (c)1 28 42 36 25 80 — — 212 
Total commercial mortgage1,570 2,518 1,778 1,511 1,210 2,830 438 — 11,855 
Lease financing
Pass (a)152 154 78 54 43 145 — — 626 
Criticized (c)6 3 2 8 7 1 — — 27 
Total lease financing158 157 80 62 50 146 — — 653 
International
Pass (a)283 287 81 74 31 15 487 — 1,258 
Criticized (c)— — 7 — 5 11 10 — 33 
Total international283 287 88 74 36 26 497 — 1,291 
Total business loans4,896 7,997 4,082 3,460 2,203 4,380 20,495 10 47,523 
Retail loans:
Residential mortgage
Pass (a)184 405 488 138 74 414 — — 1,703 
Criticized (c)— 4 2 8 1 35 — — 50 
Total residential mortgage184 409 490 146 75 449 — — 1,753 
Consumer:
Home equity
Pass (a)— — — — — 11 1,566 40 1,617 
Criticized (c)— — — — — — 12 3 15 
Total home equity— — — — — 11 1,578 43 1,632 
Other consumer
Pass (a)48 50 59 9 1 11 366 — 544 
Criticized (c)— — — 1 — — 1 — 2 
Total other consumer48 50 59 10 1 11 367 — 546 
Total consumer48 50 59 10 1 22 1,945 43 2,178 
Total retail loans232 459 549 156 76 471 1,945 43 3,931 
Total loans$5,128 $8,456 $4,631 $3,616 $2,279 $4,851 $22,440 $53 $51,454 
Table continues on the following page.
December 31, 2021
Vintage Year
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 international 401 151 106 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 
(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 $90 million and $458 million at June 30, 2022 and December 31, 2021, respectively.
(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 on page F-52 in the Corporation's 2021 Annual Report. 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 $149 million and $120 million at June 30, 2022 and December 31, 2021, 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.
 20222021
(in millions)Business LoansRetail LoansTotalBusiness LoansRetail LoansTotal
Three Months Ended June 30
Balance at beginning of period:
Allowance for loan losses$493 $61 $554 $709 $68 $777 
Allowance for credit losses on lending-related commitments33 12 45 22 8 30 
Allowance for credit losses526 73 599 731 76 807 
Loan charge-offs(13)— (13)(7)(1)(8)
Recoveries on loans previously charged-off12 1 13 19 — 19 
Net loan (charge-offs) recoveries(1)1 — 12 (1)11 
Provision for credit losses:
Provision for loan losses10 (1)9 (132)(4)(136)
Provision for credit losses on lending-related commitments1 — 1 2 (1)1 
Provision for credit losses11 (1)10 (130)(5)(135)
Balance at end of period:
Allowance for loan losses502 61 563 589 63 652 
Allowance for credit losses on lending-related commitments34 12 46 24 7 31 
Allowance for credit losses$536 $73 $609 $613 $70 $683 
Six Months Ended June 30
Balance at beginning of period
Allowance for loan losses$531 $57 $588 $895 $53 $948 
Allowance for credit losses on lending-related commitments24 6 30 35 9 44 
Allowance for credit losses555 63 618 930 62 992 
Loan charge-offs(30)(1)(31)(22)(2)(24)
Recoveries on loans previously charged-off21 2 23 31 1 32 
Net loan (charge-offs) recoveries(9)1 (8)9 (1)8 
Provision for credit losses:
Provision for loan losses(20)3 (17)(315)11 (304)
Provision for credit losses on lending-related commitments10 6 16 (11)(2)(13)
Provision for credit losses(10)9 (1)(326)9 (317)
Balance at end of period:
Allowance for loan losses502 61 563 589 63 652 
Allowance for credit losses on lending-related commitments34 12 46 24 7 31 
Allowance for credit losses$536 $73 $609 $613 $70 $683 
Allowance for loan losses as a percentage of total loans1.06 %1.55 %1.09 %1.27 %1.63 %1.30 %
Allowance for credit losses as a percentage of total loans1.13 1.85 1.18 1.32 1.80 1.36 
Nonaccrual Loans
The following table presents additional information regarding nonaccrual loans. Interest income of $2 million was recognized on nonaccrual loans for both the three months ended June 30, 2022 and 2021, and $4 million for both the six months ended June 30, 2022 and 2021.
(in millions)Nonaccrual
Loans with
No Related
Allowance		Nonaccrual
Loans with
Related
Allowance		Total
Nonaccrual
Loans
June 30, 2022
Business loans:
Commercial$67 $94 $161 
Real estate construction:
Other business lines (a)— 4 4 
Commercial mortgage:
Commercial Real Estate business line (b)— 1 1 
Other business lines (a)4 24 28 
Total commercial mortgage4 25 29 
International5 — 5 
Total business loans76 123 199 
Retail loans:
Residential mortgage49 — 49 
Consumer:
Home equity13 — 13 
Other consumer1 — 1 
Total consumer14 — 14 
Total retail loans63 — 63 
Total nonaccrual loans$139 $123 $262 
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 
(a)Primarily loans secured by owner-occupied real estate.
(b)Primarily loans to real estate developers.

Foreclosed Properties
Foreclosed properties totaled $1 million at both June 30, 2022 and December 31, 2021. Retail loans secured by residential real estate properties in process of foreclosure included in nonaccrual loans were insignificant at June 30, 2022, compared to none at December 31, 2021.
Troubled Debt Restructurings
The following table details the amortized cost basis at June 30, 2022 and 2021 of loans considered to be TDRs that were restructured during the three- and six-month periods ended June 30, 2022 and 2021, 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.
20222021 (a)
Type of Modification
(in millions)Principal Deferrals (b)Interest Rate Reductions
Three Months Ended June 30,
Business loans:
Commercial$15 $— 
Real estate construction:
Other business lines (c)3 — 
Commercial mortgage:
Other business lines (c)8 — 
Total business loans26 — 
Retail loans:
Residential mortgage— 6 
Consumer:
Home equity (d)— 1 
Total loans$26 $7 
Six Months Ended June 30,
Business loans:
Commercial$21 $— 
Real estate construction:
Other business lines (c)3 — 
Commercial mortgage:
Other business lines (c)15 — 
Total business loans39 — 
Retail loans:
Residential mortgage— 6 
Consumer:
Home equity (d)1 1 
Total loans$40 $7 
(a)Under the provisions of the CARES Act, qualifying COVID-19-related modifications, primarily principal deferrals, were not considered TDRs during the six months ended June 30, 2021.
(b)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.
(c)Primarily loans secured by owner-occupied real estate.
(d)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. Commitments to lend additional funds to borrowers whose terms have been modified in TDRs were $1 million at June 30, 2022 compared to none at December 31, 2021, respectively. 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.
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 twelve-month periods ended June 30, 2022 and 2021, there were no subsequent defaults of principal deferrals or interest rate reductions for the three- and six-month periods ended June 30, 2022 and 2021.