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Credit Quality And Allowance For Credit Losses
 12 Months Ended
Dec. 31, 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
December 31, 2022
Business loans:
Commercial$238 $13 $20 $271 $142 $30,496 $30,909 
Real estate construction:
Commercial Real Estate business line (b)— — — — — 2,505 2,505 
Other business lines (c)2 — — 2 3 595 600 
Total real estate construction2 — — 2 3 3,100 3,105 
Commercial mortgage:
Commercial Real Estate business line (b)— 6 — 6 1 4,674 4,681 
Other business lines (c)64 5 3 72 22 8,531 8,625 
Total commercial mortgage64 11 3 78 23 13,205 13,306 
Lease financing6 — — 6 — 754 760 
International— 9 — 9 3 1,185 1,197 
Total business loans310 33 23 366 171 48,740 49,277 
Retail loans:
Residential mortgage22 — — 22 53 1,739 1,814 
Consumer:
Home equity4 3 — 7 15 1,754 1,776 
Other consumer5 1 — 6 1 528 535 
Total consumer9 4 — 13 16 2,282 2,311 
Total retail loans31 4 — 35 69 4,021 4,125 
Total loans$341 $37 $23 $401 $240 $52,761 $53,402 
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.
 December 31, 2022
Vintage Year
(in millions)20222021202020192018PriorRevolversRevolvers Converted to TermTotal
Business loans:
Commercial:
Pass (a)$3,946 (b)$3,509 (b)$917 (b)$1,041 $598 $1,030 $18,604 $9 $29,654 
Criticized (c)75 274 81 69 45 78 632 1 1,255 
Total commercial4,021 3,783 998 1,110 643 1,108 19,236 10 30,909 
Real estate construction
Pass (a)836 1,134 633 162 102 28 207 — 3,102 
Criticized (c)— — 3 — — — — — 3 
Total real estate construction836 1,134 636 162 102 28 207 — 3,105 
Commercial mortgage
Pass (a)3,349 2,501 1,825 1,394 1,050 2,182 838 — 13,139 
Criticized (c)7 5 7 32 31 75 10 — 167 
Total commercial mortgage3,356 2,506 1,832 1,426 1,081 2,257 848 — 13,306 
Lease financing
Pass (a)316 140 64 47 37 130 — — 734 
Criticized (c)10 — 2 8 5 1 — — 26 
Total lease financing326 140 66 55 42 131 — — 760 
International
Pass (a)317 161 55 88 19 14 498 — 1,152 
Criticized (c)12 — 3 — 3 10 17 — 45 
Total international329 161 58 88 22 24 515 — 1,197 
Total business loans8,868 7,724 3,590 2,841 1,890 3,548 20,806 10 49,277 
Retail loans:
Residential mortgage
Pass (a)327 398 480 133 68 355 — — 1,761 
Criticized (c)4 — — 9 1 39 — — 53 
Total residential mortgage331 398 480 142 69 394 — — 1,814 
Consumer:
Home equity
Pass (a)— — — — — 9 1,708 40 1,757 
Criticized (c)— — — — — — 17 2 19 
Total home equity— — — — — 9 1,725 42 1,776 
Other consumer
Pass (a)69 38 50 8 1 10 355 — 531 
Criticized (c)— — — 1 — — 3 — 4 
Total other consumer69 38 50 9 1 10 358 — 535 
Total consumer69 38 50 9 1 19 2,083 42 2,311 
Total retail loans400 436 530 151 70 413 2,083 42 4,125 
Total loans$9,268 $8,160 $4,120 $2,992 $1,960 $3,961 $22,889 $52 $53,402 
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 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 
(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 $35 million and $459 million at December 31, 2022 and 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. 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 $261 million and $120 million at December 31, 2022 and 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.
 202220212020
(in millions)Business LoansRetail LoansTotalBusiness LoansRetail LoansTotalBusiness LoansRetail LoansTotal
Years Ended December 31,
Balance at beginning of period:
Allowance for loan losses$531 $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 losses555 63 618 930 62 992 629 39 668 
Cumulative effect of change in accounting principle— — — — — — (42)25 (17)
Loan charge-offs(65)(3)(68)(67)(3)(70)(233)(5)(238)
Recoveries on loans previously charged-off47 4 51 76 4 80 38 4 42 
Net loan (charge-offs) recoveries(18)1 (17)9 1 10 (195)(1)(196)
Provision for credit losses:
Provision for loan losses28 11 39 (373)3 (370)531 (7)524 
Provision for credit losses on lending-related commitments16 5 21 (11)(3)(14)7 6 13 
Provision for credit losses44 16 60 (384)— (384)538 (1)537 
Balance at end of period:
Allowance for loan losses541 69 610 531 57 588 895 53 948 
Allowance for credit losses on lending-related commitments40 11 51 24 6 30 35 9 44 
Allowance for credit losses$581 $80 $661 $555 $63 $618 $930 $62 $992 
Allowance for loan losses as a percentage of total loans1.10 %1.67 %1.14 %1.17 %1.47 %1.19 %1.85 %1.32 %1.81 %
Allowance for credit losses as a percentage of total loans1.18 1.96 1.24 1.22 1.63 1.26 1.93 1.55 1.90 
Nonaccrual Loans
The following table presents additional information regarding nonaccrual loans. Interest income of $12 million, $11 million and $7 million was recognized on nonaccrual loans for the years ended December 31, 2022, 2021 and 2020, respectively.
(in millions)Nonaccrual Loans with No Related AllowanceNonaccrual Loans with Related AllowanceTotal
Nonaccrual
Loans
December 31, 2022
Business loans:
Commercial$64 $78 $142 
Real estate construction:
Other business lines (a)— 3 3 
Commercial mortgage:
Commercial Real Estate business line (b)— 1 1 
Other business lines (a)4 18 22 
Total commercial mortgage4 19 23 
International3 — 3 
Total business loans71 100 171 
Retail loans:
Residential mortgage53 — 53 
Consumer:
Home equity15 — 15 
Other consumer1 — 1 
Total consumer16 — 16 
Total retail loans69 — 69 
Total nonaccrual loans$140 $100 $240 
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 were insignificant at December 31, 2022, compared to $1 million at December 31, 2021. Retail loans secured by residential real estate properties in process of foreclosure included in nonaccrual loans were insignificant at December 31, 2022 compared to none at December 31, 2021.
Troubled Debt Restructurings
The following table details the amortized cost basis at December 31, 2022 and 2021 of loans considered to be TDRs that were restructured during the years ended December 31, 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 ModificationType of Modification
(in millions)Principal Deferrals (b)Interest Rate ReductionsTotal ModificationsPrincipal Deferrals (b)Interest Rate ReductionsTotal Modifications
Years Ended December 31,
Business loans:
Commercial$26 $— $26 $8 $— $8 
Real estate construction:
Other business lines (c)3 — 3 — — — 
Commercial mortgage:
Other business lines (c)14 — 14 — — — 
Total business loans43 — 43 8 — 8 
Retail loans:
Residential mortgage— 27 27 — — — 
Consumer:
Home equity (d)1 1 2 — 2 2 
Other consumer— 1 1 — — — 
Total consumer1 2 3 — 2 2 
Total retail loans1 29 30 — 2 2 
Total loans$44 $29 $73 $8 $2 $10 
(a)Under the provisions of the CARES Act, qualifying COVID-19-related modifications, primarily principal deferrals, were not considered TDRs during the year ended December 31, 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. There were no significant commitments to lend additional funds to borrowers whose terms have been modified in TDRs at December 31, 2022 and 2021. 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 years ended December 31, 2022 and 2021, there were $6 million of subsequent defaults of principal deferrals and no interest rate reductions for the year ended December 31, 2022, compared to no principal deferrals or interest rate reductions for the comparable period in 2021.