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Standard | Description | Required Date of Adoption | Effect on the Financial Statements or Other Significant Matters |
Standard(s) Adopted in 2017 (or partially adopted previously) | |||
ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities | The ASU amends ASC Topic 825, Financial Instruments-Overall, and addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require investments in equity securities to be measured at fair value through net income, unless they qualify for a practicability exception, and require fair value changes arising from changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option to be recognized in other comprehensive income. With the exception of disclosure requirements that will be adopted prospectively, the ASU must be adopted on a modified retrospective basis. | January 1, 2018 Early adoption is permitted beginning January 1, 2016 or 2017 for the provision related to changes in instrument-specific credit risk for financial liabilities under the FVO. | The Company early adopted the provision related to changes in instrument-specific credit risk beginning January 1, 2016, which resulted in an immaterial, cumulative effect adjustment from retained earnings to AOCI. See Note 1, “Significant Accounting Policies,” to the Company's 2016 Annual Report on Form 10-K for additional information. The Company does not expect the remaining provisions of this ASU to have a material impact on its Consolidated Financial Statements and related disclosures. |
Standard(s) Not Yet Adopted | |||
ASU 2016-02, Leases | The ASU creates ASC Topic 842, Leases, which supersedes ASC Topic 840, Leases. ASC Topic 842 requires lessees to recognize right-of-use assets and associated liabilities that arise from leases, with the exception of short-term leases. The ASU does not make significant changes to lessor accounting; however, there were certain improvements made to align lessor accounting with the lessee accounting model and ASC Topic 606, Revenue from Contracts with Customers. There are several new qualitative and quantitative disclosures required. Upon transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. | January 1, 2019 Early adoption is permitted. | The Company has formed a cross-functional team to oversee the implementation of this ASU. The Company's implementation efforts are ongoing, including the review of its lease portfolios and related lease accounting policies, the review of its service contracts for embedded leases, and the deployment of a new lease software solution. The Company's adoption of this ASU will result in an increase in right-of-use assets and associated lease liabilities, arising from operating leases in which the Company is the lessee, on its Consolidated Balance Sheets. The amount of the right-of-use assets and associated lease liabilities recorded upon adoption will be based primarily on the present value of unpaid future minimum lease payments, the amount of which will depend on the population of leases in effect at the date of adoption. At September 30, 2017, the Company’s estimate of right-of-use assets and lease liabilities that would be recorded on its Consolidated Balance Sheets upon adoption is in excess of $1 billion. The Company does not expect this ASU to have a material impact on its Consolidated Statements of Income. |
Standard | Description | Required Date of Adoption | Effect on the Financial Statements or Other Significant Matters |
Standard(s) Not Yet Adopted (continued) | |||
ASU 2016-13, Measurement of Credit Losses on Financial Instruments | The ASU amends ASC Topic 326, Financial Instruments-Credit Losses, to replace the incurred loss impairment methodology with a CECL methodology for financial instruments measured at amortized cost and other commitments to extend credit. For this purpose, expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of voluntary prepayments and considering available information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses reflects the portion of the amortized cost basis that the entity does not expect to collect. Additional quantitative and qualitative disclosures are required upon adoption. The CECL model does not apply to AFS debt securities; however, the ASU requires entities to record an allowance when recognizing credit losses for AFS securities, rather than recording a direct write-down of the carrying amount. | January 1, 2020 Early adoption is permitted beginning January 1, 2019. | The Company has formed a cross-functional team to oversee the implementation of this ASU and is assessing the required changes to its credit loss estimation methodologies. The Company is evaluating the impact that this ASU will have on its Consolidated Financial Statements and related disclosures, and the Company currently anticipates that an increase to the allowance for credit losses will be recognized upon adoption to provide for the expected credit losses over the estimated life of the financial assets. However, since the magnitude of the anticipated increase in the allowance for credit losses will be impacted by economic conditions and trends in the Company’s portfolio at the time of adoption, the quantitative impact cannot yet be reasonably estimated. |
ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments | The ASU amends ASC Topic 230, Statement of Cash Flows, to clarify the classification of certain cash receipts and payments within the Company's Consolidated Statements of Cash Flow. These items include: cash payments for debt prepayment or debt extinguishment costs; cash outflows for the settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; and beneficial interests acquired in securitization transactions. The ASU also clarifies that when no specific U.S. GAAP guidance exists and the source of the cash flows are not separately identifiable, then the predominant source of cash flow should be used to determine the classification for the item. The ASU must be adopted on a retrospective basis. | January 1, 2018 Early adoption is permitted. | The Company is evaluating the impact that this ASU will have on its Consolidated Statements of Cash Flows. Changes in the Company's presentation of certain cash payments and receipts between the operating, financing, and investing sections of its Consolidated Statements of Cash Flows are expected; however, the quantitative impact has not yet been determined. |
ASU 2014-09, Revenue from Contracts with Customers ASU 2015-14, Deferral of the Effective Date ASU 2016-08, Principal versus Agent Considerations ASU 2016-10, Identifying Performance Obligations and Licensing ASU 2016-12, Narrow-Scope Improvements and Practical Expedients ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers | These ASUs comprise ASC Topic 606, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of these ASUs is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. These ASUs may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts, with remaining performance obligations as of the effective date. | January 1, 2018 Early adoption is permitted beginning January 1, 2017. | The Company is completing its evaluation of the anticipated effects that these ASUs will have on its Consolidated Financial Statements and related disclosures. The Company conducted a comprehensive scoping exercise to determine the revenue streams that are in the scope of these updates. Results indicate that certain noninterest income financial statement line items, including service charges on deposit accounts, card fees, other charges and fees, investment banking income, trust and investment management income, retail investment services, commercial real estate related income, and other noninterest income, contain revenue streams that are within the scope of these updates. Additionally, the Company's analyses indicate that there will be changes to the presentation of certain types of revenue and expenses within investment banking income, such as underwriting revenue and expenses, which will be shown gross pursuant to the new requirements. The Company is in the process of developing additional quantitative and qualitative disclosures that will be required upon adoption of these ASUs. The Company plans to adopt these standards beginning January 1, 2018 and expects to use the modified retrospective method of adoption. The Company does not expect these ASUs to have a material impact on its Consolidated Financial Statements and related disclosures. |
Standard | Description | Required Date of Adoption | Effect on the Financial Statements or Other Significant Matters |
Standard(s) Not Yet Adopted (continued) | |||
ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | The ASU amends ASC Topic 350, Intangibles - Goodwill and Other, to simplify the subsequent measurement of goodwill, by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. Entities should recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, but the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU must be applied on a prospective basis. | January 1, 2020 Early adoption is permitted. | Based on the Company's most recent annual goodwill impairment test performed as of October 1, 2016, there were no reporting units for which the carrying amount of the reporting unit exceeded its fair value; therefore, this ASU would not currently have an impact on the Company's Consolidated Financial Statements and related disclosures. However, if upon adoption the carrying amount of a reporting unit exceeds its fair value, the Company would be impacted by the amount of impairment recognized. |
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities | The ASU amends ASC Topic 815, Derivatives and Hedging, to simplify the requirements for hedge accounting. Key amendments include: eliminating the requirement to separately measure and report hedge ineffectiveness, requiring changes in the value of the hedging instrument to be presented in the same income statement line as the earnings effect of the hedged item, and the ability to measure the hedged item based on the benchmark interest rate component of the total contractual coupon for fair value hedges. New incremental disclosures are also required for reporting periods subsequent to the date of adoption. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption using a modified retrospective approach. | January 1, 2019 Early adoption is permitted. | The Company is evaluating the significance and other effects that this ASU will have on its Consolidated Financial Statements and related disclosures; however, the quantitative impact has not yet been determined. |
|
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Fed funds sold | $— | $58 | |||||
Securities borrowed | 371 | 270 | |||||
Securities purchased under agreements to resell | 811 | 979 | |||||
Total Fed funds sold and securities borrowed or purchased under agreements to resell | $1,182 | $1,307 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
(Dollars in millions) | Overnight and Continuous | Up to 30 days | 30-90 days | Total | Overnight and Continuous | Up to 30 days | 30-90 days | Total | |||||||||||||||||||||||
U.S. Treasury securities | $32 | $— | $— | $32 | $27 | $— | $— | $27 | |||||||||||||||||||||||
Federal agency securities | 58 | 25 | — | 83 | 288 | 24 | — | 312 | |||||||||||||||||||||||
MBS - agency | 738 | 94 | — | 832 | 793 | 51 | — | 844 | |||||||||||||||||||||||
CP | 68 | — | — | 68 | 49 | — | — | 49 | |||||||||||||||||||||||
Corporate and other debt securities | 292 | 75 | 40 | 407 | 311 | 50 | 40 | 401 | |||||||||||||||||||||||
Total securities sold under agreements to repurchase | $1,188 | $194 | $40 | $1,422 | $1,468 | $125 | $40 | $1,633 |
(Dollars in millions) | Gross Amount | Amount Offset | Net Amount Presented in Consolidated Balance Sheets | Held/Pledged Financial Instruments | Net Amount | ||||||||||||||
September 30, 2017 | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Securities borrowed or purchased under agreements to resell | $1,182 | $— | $1,182 | 1 | $1,165 | $17 | |||||||||||||
Financial liabilities: | |||||||||||||||||||
Securities sold under agreements to repurchase | 1,422 | — | 1,422 | 1,422 | — | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Securities borrowed or purchased under agreements to resell | $1,249 | $— | $1,249 | 1 | $1,241 | $8 | |||||||||||||
Financial liabilities: | |||||||||||||||||||
Securities sold under agreements to repurchase | 1,633 | — | 1,633 | 1,633 | — |
|
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Trading Assets and Derivative Instruments: | |||||||
U.S. Treasury securities | $366 | $539 | |||||
Federal agency securities | 303 | 480 | |||||
U.S. states and political subdivisions | 53 | 134 | |||||
MBS - agency | 666 | 567 | |||||
CLO securities | — | 1 | |||||
Corporate and other debt securities | 665 | 656 | |||||
CP | 383 | 140 | |||||
Equity securities | 30 | 49 | |||||
Derivative instruments 1 | 898 | 984 | |||||
Trading loans 2 | 2,954 | 2,517 | |||||
Total trading assets and derivative instruments | $6,318 | $6,067 | |||||
Trading Liabilities and Derivative Instruments: | |||||||
U.S. Treasury securities | $555 | $697 | |||||
MBS - agency | — | 1 | |||||
Corporate and other debt securities | 347 | 255 | |||||
Equity securities | 5 | — | |||||
Derivative instruments 1 | 377 | 398 | |||||
Total trading liabilities and derivative instruments | $1,284 | $1,351 |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Pledged trading assets to secure repurchase agreements 1 | $756 | $968 | |||||
Pledged trading assets to secure certain derivative agreements | 291 | 471 | |||||
Pledged trading assets to secure other arrangements | 51 | 40 |
|
September 30, 2017 | |||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
U.S. Treasury securities | $4,300 | $9 | $48 | $4,261 | |||||||||||
Federal agency securities | 266 | 5 | 1 | 270 | |||||||||||
U.S. states and political subdivisions | 558 | 9 | 4 | 563 | |||||||||||
MBS - agency | 24,860 | 287 | 167 | 24,980 | |||||||||||
MBS - non-agency residential | 59 | 4 | 1 | 62 | |||||||||||
MBS - non-agency commercial | 747 | 6 | 3 | 750 | |||||||||||
ABS | 6 | 2 | — | 8 | |||||||||||
Corporate and other debt securities | 33 | — | — | 33 | |||||||||||
Other equity securities 1 | 518 | 1 | 2 | 517 | |||||||||||
Total securities AFS | $31,347 | $323 | $226 | $31,444 | |||||||||||
December 31, 2016 | |||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
U.S. Treasury securities | $5,486 | $5 | $86 | $5,405 | |||||||||||
Federal agency securities | 310 | 5 | 2 | 313 | |||||||||||
U.S. states and political subdivisions | 279 | 5 | 5 | 279 | |||||||||||
MBS - agency | 23,642 | 313 | 293 | 23,662 | |||||||||||
MBS - non-agency residential | 71 | 3 | — | 74 | |||||||||||
MBS - non-agency commercial | 257 | — | 5 | 252 | |||||||||||
ABS | 8 | 2 | — | 10 | |||||||||||
Corporate and other debt securities | 34 | 1 | — | 35 | |||||||||||
Other equity securities 1 | 642 | 1 | 1 | 642 | |||||||||||
Total securities AFS | $30,729 | $335 | $392 | $30,672 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Taxable interest | $187 | $154 | $551 | $470 | |||||||||||
Tax-exempt interest | 4 | 2 | 9 | 4 | |||||||||||
Dividends | 4 | 3 | 13 | 9 | |||||||||||
Total interest and dividends on securities AFS | $195 | $159 | $573 | $483 |
Distribution of Remaining Maturities | |||||||||||||||||||
(Dollars in millions) | Due in 1 Year or Less | Due After 1 Year through 5 Years | Due After 5 Years through 10 Years | Due After 10 Years | Total | ||||||||||||||
Amortized Cost: | |||||||||||||||||||
U.S. Treasury securities | $— | $2,002 | $2,298 | $— | $4,300 | ||||||||||||||
Federal agency securities | 126 | 46 | 4 | 90 | 266 | ||||||||||||||
U.S. states and political subdivisions | 6 | 46 | 179 | 327 | 558 | ||||||||||||||
MBS - agency | 1,475 | 9,092 | 13,785 | 508 | 24,860 | ||||||||||||||
MBS - non-agency residential | — | 59 | — | — | 59 | ||||||||||||||
MBS - non-agency commercial | 5 | 12 | 730 | — | 747 | ||||||||||||||
ABS | — | 6 | — | — | 6 | ||||||||||||||
Corporate and other debt securities | 23 | 10 | — | — | 33 | ||||||||||||||
Total debt securities AFS | $1,635 | $11,273 | $16,996 | $925 | $30,829 | ||||||||||||||
Fair Value: | |||||||||||||||||||
U.S. Treasury securities | $— | $1,996 | $2,265 | $— | $4,261 | ||||||||||||||
Federal agency securities | 129 | 47 | 4 | 90 | 270 | ||||||||||||||
U.S. states and political subdivisions | 6 | 48 | 185 | 324 | 563 | ||||||||||||||
MBS - agency | 1,544 | 9,199 | 13,730 | 507 | 24,980 | ||||||||||||||
MBS - non-agency residential | — | 62 | — | — | 62 | ||||||||||||||
MBS - non-agency commercial | 5 | 12 | 733 | — | 750 | ||||||||||||||
ABS | — | 8 | — | — | 8 | ||||||||||||||
Corporate and other debt securities | 23 | 10 | — | — | 33 | ||||||||||||||
Total debt securities AFS | $1,707 | $11,382 | $16,917 | $921 | $30,927 | ||||||||||||||
Weighted average yield 1 | 3.51 | % | 2.35 | % | 2.67 | % | 3.15 | % | 2.62 | % |
September 30, 2017 | |||||||||||||||||||||||
Less than twelve months | Twelve months or longer | Total | |||||||||||||||||||||
(Dollars in millions) | Fair Value | Unrealized Losses 2 | Fair Value | Unrealized Losses 2 | Fair Value | Unrealized Losses 2 | |||||||||||||||||
Temporarily impaired securities AFS: | |||||||||||||||||||||||
U.S. Treasury securities | $1,092 | $9 | $1,382 | $39 | $2,474 | $48 | |||||||||||||||||
Federal agency securities | 43 | — | 33 | 1 | 76 | 1 | |||||||||||||||||
U.S. states and political subdivisions | 178 | 1 | 119 | 3 | 297 | 4 | |||||||||||||||||
MBS - agency | 9,571 | 92 | 2,709 | 75 | 12,280 | 167 | |||||||||||||||||
MBS - non-agency commercial | 207 | 2 | 47 | 1 | 254 | 3 | |||||||||||||||||
ABS | — | — | 5 | — | 5 | — | |||||||||||||||||
Corporate and other debt securities | 10 | — | — | — | 10 | — | |||||||||||||||||
Other equity securities | — | — | 3 | 2 | 3 | 2 | |||||||||||||||||
Total temporarily impaired securities AFS | 11,101 | 104 | 4,298 | 121 | 15,399 | 225 | |||||||||||||||||
OTTI securities AFS 1: | |||||||||||||||||||||||
MBS - non-agency residential | 14 | 1 | — | — | 14 | 1 | |||||||||||||||||
ABS | — | — | 1 | — | 1 | — | |||||||||||||||||
Total OTTI securities AFS | 14 | 1 | 1 | — | 15 | 1 | |||||||||||||||||
Total impaired securities AFS | $11,115 | $105 | $4,299 | $121 | $15,414 | $226 |
December 31, 2016 | |||||||||||||||||||||||
Less than twelve months | Twelve months or longer | Total | |||||||||||||||||||||
(Dollars in millions) | Fair Value | Unrealized Losses 2 | Fair Value | Unrealized Losses 2 | Fair Value | Unrealized Losses 2 | |||||||||||||||||
Temporarily impaired securities AFS: | |||||||||||||||||||||||
U.S. Treasury securities | $4,380 | $86 | $— | $— | $4,380 | $86 | |||||||||||||||||
Federal agency securities | 96 | 2 | 3 | — | 99 | 2 | |||||||||||||||||
U.S. states and political subdivisions | 149 | 5 | — | — | 149 | 5 | |||||||||||||||||
MBS - agency | 14,622 | 285 | 451 | 8 | 15,073 | 293 | |||||||||||||||||
MBS - non-agency commercial | 184 | 5 | — | — | 184 | 5 | |||||||||||||||||
ABS | — | — | 5 | — | 5 | — | |||||||||||||||||
Corporate and other debt securities | 12 | — | — | — | 12 | — | |||||||||||||||||
Other equity securities | — | — | 4 | 1 | 4 | 1 | |||||||||||||||||
Total temporarily impaired securities AFS | 19,443 | 383 | 463 | 9 | 19,906 | 392 | |||||||||||||||||
OTTI securities AFS 1: | |||||||||||||||||||||||
MBS - non-agency residential | 16 | — | — | — | 16 | — | |||||||||||||||||
ABS | — | — | 1 | — | 1 | — | |||||||||||||||||
Total OTTI securities AFS | 16 | — | 1 | — | 17 | — | |||||||||||||||||
Total impaired securities AFS | $19,459 | $383 | $464 | $9 | $19,923 | $392 |
|
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Commercial loans: | |||||||
C&I 1 | $67,758 | $69,213 | |||||
CRE | 5,238 | 4,996 | |||||
Commercial construction | 3,964 | 4,015 | |||||
Total commercial loans | 76,960 | 78,224 | |||||
Residential loans: | |||||||
Residential mortgages - guaranteed | 497 | 537 | |||||
Residential mortgages - nonguaranteed 2 | 27,041 | 26,137 | |||||
Residential home equity products | 10,865 | 11,912 | |||||
Residential construction | 327 | 404 | |||||
Total residential loans | 38,730 | 38,990 | |||||
Consumer loans: | |||||||
Guaranteed student | 6,559 | 6,167 | |||||
Other direct | 8,597 | 7,771 | |||||
Indirect | 11,952 | 10,736 | |||||
Credit cards | 1,466 | 1,410 | |||||
Total consumer loans | 28,574 | 26,084 | |||||
LHFI | $144,264 | $143,298 | |||||
LHFS 3 | $2,835 | $4,169 |
Commercial Loans | |||||||||||||||||||||||
C&I | CRE | Commercial Construction | |||||||||||||||||||||
(Dollars in millions) | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Risk rating: | |||||||||||||||||||||||
Pass | $65,768 | $66,961 | $4,933 | $4,574 | $3,882 | $3,914 | |||||||||||||||||
Criticized accruing | 1,698 | 1,862 | 300 | 415 | 81 | 84 | |||||||||||||||||
Criticized nonaccruing | 292 | 390 | 5 | 7 | 1 | 17 | |||||||||||||||||
Total | $67,758 | $69,213 | $5,238 | $4,996 | $3,964 | $4,015 |
Residential Loans 1 | |||||||||||||||||||||||
Residential Mortgages - Nonguaranteed | Residential Home Equity Products | Residential Construction | |||||||||||||||||||||
(Dollars in millions) | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Current FICO score range: | |||||||||||||||||||||||
700 and above | $23,444 | $22,194 | $9,067 | $9,826 | $274 | $292 | |||||||||||||||||
620 - 699 | 2,769 | 3,042 | 1,334 | 1,540 | 43 | 96 | |||||||||||||||||
Below 620 2 | 828 | 901 | 464 | 546 | 10 | 16 | |||||||||||||||||
Total | $27,041 | $26,137 | $10,865 | $11,912 | $327 | $404 |
Consumer Loans 3 | |||||||||||||||||||||||
Other Direct | Indirect | Credit Cards | |||||||||||||||||||||
(Dollars in millions) | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Current FICO score range: | |||||||||||||||||||||||
700 and above | $7,778 | $7,008 | $8,907 | $7,642 | $1,000 | $974 | |||||||||||||||||
620 - 699 | 783 | 703 | 2,339 | 2,381 | 370 | 351 | |||||||||||||||||
Below 620 2 | 36 | 60 | 706 | 713 | 96 | 85 | |||||||||||||||||
Total | $8,597 | $7,771 | $11,952 | $10,736 | $1,466 | $1,410 |
September 30, 2017 | |||||||||||||||||||
(Dollars in millions) | Accruing Current | Accruing 30-89 Days Past Due | Accruing 90+ Days Past Due | Nonaccruing 2 | Total | ||||||||||||||
Commercial loans: | |||||||||||||||||||
C&I | $67,396 | $55 | $15 | $292 | $67,758 | ||||||||||||||
CRE | 5,231 | 1 | 1 | 5 | 5,238 | ||||||||||||||
Commercial construction | 3,963 | — | — | 1 | 3,964 | ||||||||||||||
Total commercial loans | 76,590 | 56 | 16 | 298 | 76,960 | ||||||||||||||
Residential loans: | |||||||||||||||||||
Residential mortgages - guaranteed | 161 | 50 | 286 | — | 497 | ||||||||||||||
Residential mortgages - nonguaranteed 1 | 26,802 | 73 | 5 | 161 | 27,041 | ||||||||||||||
Residential home equity products | 10,559 | 92 | — | 214 | 10,865 | ||||||||||||||
Residential construction | 315 | 1 | — | 11 | 327 | ||||||||||||||
Total residential loans | 37,837 | 216 | 291 | 386 | 38,730 | ||||||||||||||
Consumer loans: | |||||||||||||||||||
Guaranteed student | 4,974 | 567 | 1,018 | — | 6,559 | ||||||||||||||
Other direct | 8,547 | 38 | 6 | 6 | 8,597 | ||||||||||||||
Indirect | 11,815 | 130 | — | 7 | 11,952 | ||||||||||||||
Credit cards | 1,441 | 13 | 12 | — | 1,466 | ||||||||||||||
Total consumer loans | 26,777 | 748 | 1,036 | 13 | 28,574 | ||||||||||||||
Total LHFI | $141,204 | $1,020 | $1,343 | $697 | $144,264 |
December 31, 2016 | |||||||||||||||||||
(Dollars in millions) | Accruing Current | Accruing 30-89 Days Past Due | Accruing 90+ Days Past Due | Nonaccruing 2 | Total | ||||||||||||||
Commercial loans: | |||||||||||||||||||
C&I | $68,776 | $35 | $12 | $390 | $69,213 | ||||||||||||||
CRE | 4,988 | 1 | — | 7 | 4,996 | ||||||||||||||
Commercial construction | 3,998 | — | — | 17 | 4,015 | ||||||||||||||
Total commercial loans | 77,762 | 36 | 12 | 414 | 78,224 | ||||||||||||||
Residential loans: | |||||||||||||||||||
Residential mortgages - guaranteed | 155 | 55 | 327 | — | 537 | ||||||||||||||
Residential mortgages - nonguaranteed 1 | 25,869 | 84 | 7 | 177 | 26,137 | ||||||||||||||
Residential home equity products | 11,596 | 81 | — | 235 | 11,912 | ||||||||||||||
Residential construction | 389 | 3 | — | 12 | 404 | ||||||||||||||
Total residential loans | 38,009 | 223 | 334 | 424 | 38,990 | ||||||||||||||
Consumer loans: | |||||||||||||||||||
Guaranteed student | 4,637 | 603 | 927 | — | 6,167 | ||||||||||||||
Other direct | 7,726 | 35 | 4 | 6 | 7,771 | ||||||||||||||
Indirect | 10,608 | 126 | 1 | 1 | 10,736 | ||||||||||||||
Credit cards | 1,388 | 12 | 10 | — | 1,410 | ||||||||||||||
Total consumer loans | 24,359 | 776 | 942 | 7 | 26,084 | ||||||||||||||
Total LHFI | $140,130 | $1,035 | $1,288 | $845 | $143,298 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Amortized Cost 1 | Related ALLL | Unpaid Principal Balance | Amortized Cost 1 | Related ALLL | |||||||||||||||||
Impaired LHFI with no ALLL recorded: | |||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||
C&I | $79 | $72 | $— | $266 | $214 | $— | |||||||||||||||||
Total commercial loans | 79 | 72 | — | 266 | 214 | — | |||||||||||||||||
Residential loans: | |||||||||||||||||||||||
Residential mortgages - nonguaranteed | 461 | 365 | — | 466 | 360 | — | |||||||||||||||||
Residential construction | 16 | 9 | — | 16 | 8 | — | |||||||||||||||||
Total residential loans | 477 | 374 | — | 482 | 368 | — | |||||||||||||||||
Impaired LHFI with an ALLL recorded: | |||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||
C&I | 171 | 153 | 30 | 225 | 151 | 31 | |||||||||||||||||
CRE | — | — | — | 26 | 17 | 2 | |||||||||||||||||
Total commercial loans | 171 | 153 | 30 | 251 | 168 | 33 | |||||||||||||||||
Residential loans: | |||||||||||||||||||||||
Residential mortgages - nonguaranteed | 1,161 | 1,132 | 124 | 1,277 | 1,248 | 150 | |||||||||||||||||
Residential home equity products | 945 | 885 | 55 | 863 | 795 | 54 | |||||||||||||||||
Residential construction | 97 | 96 | 8 | 109 | 107 | 11 | |||||||||||||||||
Total residential loans | 2,203 | 2,113 | 187 | 2,249 | 2,150 | 215 | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||||
Other direct | 59 | 59 | 1 | 59 | 59 | 1 | |||||||||||||||||
Indirect | 118 | 117 | 7 | 103 | 103 | 5 | |||||||||||||||||
Credit cards | 25 | 6 | 1 | 24 | 6 | 1 | |||||||||||||||||
Total consumer loans | 202 | 182 | 9 | 186 | 168 | 7 | |||||||||||||||||
Total impaired LHFI | $3,132 | $2,894 | $226 | $3,434 | $3,068 | $255 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | Average Amortized Cost | Interest Income Recognized1 | Average Amortized Cost | Interest Income Recognized1 | Average Amortized Cost | Interest Income Recognized1 | Average Amortized Cost | Interest Income Recognized1 | |||||||||||||||||||||||
Impaired LHFI with no ALLL recorded: | |||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||
C&I | $70 | $— | $268 | $1 | $81 | $— | $200 | $1 | |||||||||||||||||||||||
Total commercial loans | 70 | — | 268 | 1 | 81 | — | 200 | 1 | |||||||||||||||||||||||
Residential loans: | |||||||||||||||||||||||||||||||
Residential mortgages - nonguaranteed | 364 | 4 | 364 | 4 | 361 | 11 | 368 | 12 | |||||||||||||||||||||||
Residential construction | 9 | — | 8 | — | 9 | — | 8 | — | |||||||||||||||||||||||
Total residential loans | 373 | 4 | 372 | 4 | 370 | 11 | 376 | 12 | |||||||||||||||||||||||
Impaired LHFI with an ALLL recorded: | |||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||
C&I | 150 | — | 188 | — | 145 | 2 | 185 | 1 | |||||||||||||||||||||||
Total commercial loans | 150 | — | 188 | — | 145 | 2 | 185 | 1 | |||||||||||||||||||||||
Residential loans: | |||||||||||||||||||||||||||||||
Residential mortgages - nonguaranteed | 1,135 | 14 | 1,288 | 15 | 1,146 | 45 | 1,292 | 48 | |||||||||||||||||||||||
Residential home equity products | 890 | 8 | 771 | 7 | 901 | 24 | 780 | 22 | |||||||||||||||||||||||
Residential construction | 96 | 2 | 112 | 1 | 98 | 4 | 114 | 4 | |||||||||||||||||||||||
Total residential loans | 2,121 | 24 | 2,171 | 23 | 2,145 | 73 | 2,186 | 74 | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||
Other direct | 58 | 1 | 10 | — | 59 | 3 | 11 | — | |||||||||||||||||||||||
Indirect | 120 | 2 | 109 | 1 | 128 | 4 | 115 | 4 | |||||||||||||||||||||||
Credit cards | 6 | — | 6 | — | 6 | 1 | 6 | — | |||||||||||||||||||||||
Total consumer loans | 184 | 3 | 125 | 1 | 193 | 8 | 132 | 4 | |||||||||||||||||||||||
Total impaired LHFI | $2,898 | $31 | $3,124 | $29 | $2,934 | $94 | $3,079 | $92 |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Nonaccrual/NPLs: | |||||||
Commercial loans: | |||||||
C&I | $292 | $390 | |||||
CRE | 5 | 7 | |||||
Commercial construction | 1 | 17 | |||||
Residential loans: | |||||||
Residential mortgages - nonguaranteed | 161 | 177 | |||||
Residential home equity products | 214 | 235 | |||||
Residential construction | 11 | 12 | |||||
Consumer loans: | |||||||
Other direct | 6 | 6 | |||||
Indirect | 7 | 1 | |||||
Total nonaccrual/NPLs 1 | 697 | 845 | |||||
OREO 2 | 57 | 60 | |||||
Other repossessed assets | 7 | 14 | |||||
Nonperforming LHFS | 31 | — | |||||
Total NPAs | $792 | $919 |
Three Months Ended September 30, 2017 1 | ||||||||||||||
(Dollars in millions) | Number of Loans Modified | Rate Modification | Term Extension and/or Other Concessions | Total | ||||||||||
Commercial loans: | ||||||||||||||
C&I | 76 | $2 | $7 | $9 | ||||||||||
Residential loans: | ||||||||||||||
Residential mortgages - nonguaranteed | 41 | 6 | 4 | 10 | ||||||||||
Residential home equity products | 696 | 18 | 45 | 63 | ||||||||||
Consumer loans: | ||||||||||||||
Other direct | 135 | — | 2 | 2 | ||||||||||
Indirect | 738 | — | 17 | 17 | ||||||||||
Credit cards | 182 | 1 | — | 1 | ||||||||||
Total TDR additions | 1,868 | $27 | $75 | $102 |
Nine Months Ended September 30, 2017 1 | ||||||||||||||
(Dollars in millions) | Number of Loans Modified | Rate Modification | Term Extension and/or Other Concessions | Total | ||||||||||
Commercial loans: | ||||||||||||||
C&I | 136 | $2 | $86 | $88 | ||||||||||
Residential loans: | ||||||||||||||
Residential mortgages - nonguaranteed | 119 | 17 | 8 | 25 | ||||||||||
Residential home equity products | 1,971 | 18 | 172 | 190 | ||||||||||
Consumer loans: | ||||||||||||||
Other direct | 425 | — | 6 | 6 | ||||||||||
Indirect | 2,034 | — | 50 | 50 | ||||||||||
Credit cards | 615 | 3 | — | 3 | ||||||||||
Total TDR additions | 5,300 | $40 | $322 | $362 |
Three Months Ended September 30, 2016 1 | ||||||||||||||
(Dollars in millions) | Number of Loans Modified | Rate Modification | Term Extension and/or Other Concessions | Total | ||||||||||
Commercial loans: | ||||||||||||||
C&I | 19 | $— | $49 | $49 | ||||||||||
Residential loans: | ||||||||||||||
Residential mortgages - nonguaranteed | 102 | 22 | 3 | 25 | ||||||||||
Residential home equity products | 569 | — | 55 | 55 | ||||||||||
Consumer loans: | ||||||||||||||
Other direct | 2 | — | — | — | ||||||||||
Indirect | 351 | — | 9 | 9 | ||||||||||
Credit cards | 149 | 1 | — | 1 | ||||||||||
Total TDR additions | 1,192 | $23 | $116 | $139 |
Nine Months Ended September 30, 2016 1 | ||||||||||||||
(Dollars in millions) | Number of Loans Modified | Rate Modification | Term Extension and/or Other Concessions | Total | ||||||||||
Commercial loans: | ||||||||||||||
C&I | 48 | $— | $95 | $95 | ||||||||||
Commercial construction | 1 | — | — | — | ||||||||||
Residential loans: | ||||||||||||||
Residential mortgages - nonguaranteed | 339 | 80 | 11 | 91 | ||||||||||
Residential home equity products | 2,030 | 9 | 182 | 191 | ||||||||||
Consumer loans: | ||||||||||||||
Other direct | 34 | — | 1 | 1 | ||||||||||
Indirect | 1,217 | — | 30 | 30 | ||||||||||
Credit cards | 501 | 2 | — | 2 | ||||||||||
Total TDR additions | 4,170 | $91 | $319 | $410 |
|
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Balance, beginning of period | $1,803 | $1,840 | $1,776 | $1,815 | |||||||||||
Provision for loan losses | 119 | 95 | 324 | 338 | |||||||||||
Provision for unfunded commitments | 1 | 2 | 6 | 5 | |||||||||||
Loan charge-offs | (109 | ) | (150 | ) | (357 | ) | (428 | ) | |||||||
Loan recoveries | 31 | 24 | 96 | 81 | |||||||||||
Balance, end of period | $1,845 | $1,811 | $1,845 | $1,811 | |||||||||||
Components: | |||||||||||||||
ALLL | $1,772 | $1,743 | |||||||||||||
Unfunded commitments reserve 1 | 73 | 68 | |||||||||||||
Allowance for credit losses | $1,845 | $1,811 |
Three Months Ended September 30, 2017 | |||||||||||||||
(Dollars in millions) | Commercial | Residential | Consumer | Total | |||||||||||
Balance, beginning of period | $1,140 | $337 | $254 | $1,731 | |||||||||||
Provision for loan losses | 5 | 29 | 85 | 119 | |||||||||||
Loan charge-offs | (33 | ) | (23 | ) | (53 | ) | (109 | ) | |||||||
Loan recoveries | 11 | 8 | 12 | 31 | |||||||||||
Balance, end of period | $1,123 | $351 | $298 | $1,772 | |||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||
(Dollars in millions) | Commercial | Residential | Consumer | Total | |||||||||||
Balance, beginning of period | $1,147 | $439 | $188 | $1,774 | |||||||||||
Provision/(benefit) for loan losses | 81 | (36 | ) | 50 | 95 | ||||||||||
Loan charge-offs | (78 | ) | (28 | ) | (44 | ) | (150 | ) | |||||||
Loan recoveries | 7 | 7 | 10 | 24 | |||||||||||
Balance, end of period | $1,157 | $382 | $204 | $1,743 | |||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||
(Dollars in millions) | Commercial | Residential | Consumer | Total | |||||||||||
Balance, beginning of period | $1,124 | $369 | $216 | $1,709 | |||||||||||
Provision for loan losses | 89 | 33 | 202 | 324 | |||||||||||
Loan charge-offs | (122 | ) | (78 | ) | (157 | ) | (357 | ) | |||||||
Loan recoveries | 32 | 27 | 37 | 96 | |||||||||||
Balance, end of period | $1,123 | $351 | $298 | $1,772 | |||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||
(Dollars in millions) | Commercial | Residential | Consumer | Total | |||||||||||
Balance, beginning of period | $1,047 | $534 | $171 | $1,752 | |||||||||||
Provision/(benefit) for loan losses | 293 | (72 | ) | 117 | 338 | ||||||||||
Loan charge-offs | (209 | ) | (102 | ) | (117 | ) | (428 | ) | |||||||
Loan recoveries | 26 | 22 | 33 | 81 | |||||||||||
Balance, end of period | $1,157 | $382 | $204 | $1,743 |
September 30, 2017 | |||||||||||||||||||||||||||||||
Commercial | Residential | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in millions) | Carrying Value | Related ALLL | Carrying Value | Related ALLL | Carrying Value | Related ALLL | Carrying Value | Related ALLL | |||||||||||||||||||||||
LHFI evaluated for impairment: | |||||||||||||||||||||||||||||||
Individually evaluated | $225 | $30 | $2,487 | $187 | $182 | $9 | $2,894 | $226 | |||||||||||||||||||||||
Collectively evaluated | 76,735 | 1,093 | 36,037 | 164 | 28,392 | 289 | 141,164 | 1,546 | |||||||||||||||||||||||
Total evaluated | 76,960 | 1,123 | 38,524 | 351 | 28,574 | 298 | 144,058 | 1,772 | |||||||||||||||||||||||
LHFI measured at fair value | — | — | 206 | — | — | — | 206 | — | |||||||||||||||||||||||
Total LHFI | $76,960 | $1,123 | $38,730 | $351 | $28,574 | $298 | $144,264 | $1,772 |
December 31, 2016 | |||||||||||||||||||||||||||||||
Commercial | Residential | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in millions) | Carrying Value | Related ALLL | Carrying Value | Related ALLL | Carrying Value | Related ALLL | Carrying Value | Related ALLL | |||||||||||||||||||||||
LHFI evaluated for impairment: | |||||||||||||||||||||||||||||||
Individually evaluated | $382 | $33 | $2,518 | $215 | $168 | $7 | $3,068 | $255 | |||||||||||||||||||||||
Collectively evaluated | 77,842 | 1,091 | 36,250 | 154 | 25,916 | 209 | 140,008 | 1,454 | |||||||||||||||||||||||
Total evaluated | 78,224 | 1,124 | 38,768 | 369 | 26,084 | 216 | 143,076 | 1,709 | |||||||||||||||||||||||
LHFI measured at fair value | — | — | 222 | — | — | — | 222 | — | |||||||||||||||||||||||
Total LHFI | $78,224 | $1,124 | $38,990 | $369 | $26,084 | $216 | $143,298 | $1,709 |
|
(Dollars in millions) | Consumer | Wholesale | Total | ||||||||
Balance, January 1, 2017 | $4,262 | $2,075 | $6,337 | ||||||||
Measurement period adjustment related to the acquisition of Pillar | — | 1 | 1 | ||||||||
Balance, September 30, 2017 | $4,262 | $2,076 | $6,338 |
(Dollars in millions) | Residential MSRs - Fair Value | Other | Total | ||||||||
Balance, January 1, 2017 | $1,572 | $85 | $1,657 | ||||||||
Amortization 1 | — | (16 | ) | (16 | ) | ||||||
Servicing rights originated | 252 | 10 | 262 | ||||||||
Changes in fair value: | |||||||||||
Due to changes in inputs and assumptions 2 | (27 | ) | — | (27 | ) | ||||||
Other changes in fair value 3 | (168 | ) | — | (168 | ) | ||||||
Servicing rights sold | (1 | ) | — | (1 | ) | ||||||
Other 4 | — | (1 | ) | (1 | ) | ||||||
Balance, September 30, 2017 | $1,628 | $78 | $1,706 | ||||||||
Balance, January 1, 2016 | $1,307 | $18 | $1,325 | ||||||||
Amortization 1 | — | (6 | ) | (6 | ) | ||||||
Servicing rights originated | 198 | — | 198 | ||||||||
Servicing rights purchased | 104 | — | 104 | ||||||||
Changes in fair value: | |||||||||||
Due to changes in inputs and assumptions 2 | (328 | ) | — | (328 | ) | ||||||
Other changes in fair value 3 | (160 | ) | — | (160 | ) | ||||||
Servicing rights sold | (2 | ) | — | (2 | ) | ||||||
Balance, September 30, 2016 | $1,119 | $12 | $1,131 |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Fair value of residential MSRs | $1,628 | $1,572 | |||||
Prepayment rate assumption (annual) | 13 | % | 9 | % | |||
Decline in fair value from 10% adverse change | $91 | $50 | |||||
Decline in fair value from 20% adverse change | 167 | 97 | |||||
Option adjusted spread (annual) | 4 | % | 8 | % | |||
Decline in fair value from 10% adverse change | $41 | $63 | |||||
Decline in fair value from 20% adverse change | 80 | 122 | |||||
Weighted-average life (in years) | 5.2 | 7.0 | |||||
Weighted-average coupon | 4.0 | % | 4.0 | % |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Fair value of commercial mortgage servicing rights | $69 | $62 | |||||
Discount rate (annual) | 12 | % | 12 | % | |||
Prepayment rate assumption (annual) | 7 | 6 | |||||
Float earnings rate (annual) | 1.0 | 0.5 | |||||
Weighted-average life (in years) | 7.1 | 7.0 |
|
Portfolio Balance | Past Due and Nonaccrual | Net Charge-offs | ||||||||||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
LHFI portfolio: | ||||||||||||||||||||||||||||||||
Commercial | $76,960 | $78,224 | $314 | $426 | $22 | $71 | $90 | $183 | ||||||||||||||||||||||||
Residential | 38,730 | 38,990 | 677 | 758 | 15 | 21 | 51 | 80 | ||||||||||||||||||||||||
Consumer | 28,574 | 26,084 | 1,049 | 949 | 41 | 34 | 120 | 84 | ||||||||||||||||||||||||
Total LHFI portfolio | 144,264 | 143,298 | 2,040 | 2,133 | 78 | 126 | 261 | 347 | ||||||||||||||||||||||||
Managed securitized loans 1: | ||||||||||||||||||||||||||||||||
Commercial 2 | 5,385 | 4,761 | — | — | — | — | — | — | ||||||||||||||||||||||||
Residential | 133,052 | 126,641 | 96 | 114 | 2 | 3 | 2 | 3 | 5 | 3 | 6 | 3 | ||||||||||||||||||||
Consumer | 337 | 512 | — | 1 | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||
Total managed securitized loans | 138,774 | 131,914 | 96 | 115 | 3 | 3 | 7 | 8 | ||||||||||||||||||||||||
Managed unsecuritized loans 4 | 2,359 | 2,985 | 351 | 438 | — | — | — | — | ||||||||||||||||||||||||
Total managed loans | $285,397 | $278,197 | $2,487 | $2,686 | $81 | $129 | $268 | $355 |
|
|
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
RSUs | $14 | $13 | $64 | $44 | |||||||||||
Phantom stock units 1 | 17 | 16 | 57 | 39 | |||||||||||
Restricted stock | — | — | — | 2 | |||||||||||
Total stock-based compensation expense | $31 | $29 | $121 | $85 | |||||||||||
Stock-based compensation tax benefit 2 | $12 | $11 | $46 | $32 |
Pension Benefits 1 | Other Postretirement Benefits | ||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
Service cost | $1 | $1 | $4 | $4 | $— | $— | $— | $— | |||||||||||||||||||||||
Interest cost | 24 | 24 | 71 | 73 | — | — | 1 | 1 | |||||||||||||||||||||||
Expected return on plan assets | (49 | ) | (46 | ) | (146 | ) | (140 | ) | (1 | ) | (1 | ) | (4 | ) | (3 | ) | |||||||||||||||
Amortization of prior service credit | — | — | — | — | (1 | ) | (1 | ) | (4 | ) | (4 | ) | |||||||||||||||||||
Amortization of actuarial loss | 6 | 6 | 18 | 19 | — | — | — | — | |||||||||||||||||||||||
Net periodic benefit | ($18 | ) | ($15 | ) | ($53 | ) | ($44 | ) | ($2 | ) | ($2 | ) | ($7 | ) | ($6 | ) |
|
Nine Months Ended September 30 | |||||||
(Dollars in millions) | 2017 | 2016 | |||||
Pending repurchase requests, beginning of period | $14 | $17 | |||||
Repurchase requests received | 29 | 30 | |||||
Repurchase requests resolved: | |||||||
Repurchased | (11 | ) | (15 | ) | |||
Cured | (23 | ) | (23 | ) | |||
Total resolved | (34 | ) | (38 | ) | |||
Pending repurchase requests, end of period 1 | $9 | $9 | |||||
Percent from non-agency investors: | |||||||
Pending repurchase requests, end of period | 1.5 | % | 49.9 | % | |||
Repurchase requests received | 3.3 | — |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Balance, beginning of period | $40 | $51 | $40 | $57 | |||||||||||
Repurchase provision/(benefit) | — | (3 | ) | — | (9 | ) | |||||||||
Charge-offs, net of recoveries | (1 | ) | — | (1 | ) | — | |||||||||
Balance, end of period | $39 | $48 | $39 | $48 |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Outstanding repurchased residential mortgage loans: | |||||||
Performing LHFI | $209 | $230 | |||||
Nonperforming LHFI | 13 | 12 | |||||
Total carrying value of outstanding repurchased residential mortgages | $222 | $242 |
|
September 30, 2017 | |||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||
(Dollars in millions) | Notional Amounts | Fair Value | Notional Amounts | Fair Value | |||||||||||
Derivative instruments designated in cash flow hedging relationships 1 | |||||||||||||||
Interest rate contracts hedging floating rate LHFI | $3,150 | $3 | $10,550 | $187 | |||||||||||
Derivative instruments designated in fair value hedging relationships 2 | |||||||||||||||
Interest rate contracts hedging fixed rate debt | 500 | — | 5,420 | 36 | |||||||||||
Interest rate contracts hedging brokered CDs | 30 | — | 30 | — | |||||||||||
Total | 530 | — | 5,450 | 36 | |||||||||||
Derivative instruments not designated as hedging instruments 3 | |||||||||||||||
Interest rate contracts hedging: | |||||||||||||||
Residential MSRs 4 | 23,954 | 145 | 15,062 | 128 | |||||||||||
LHFS, IRLCs 5 | 5,628 | 13 | 4,218 | 13 | |||||||||||
LHFI | 90 | 2 | 85 | 2 | |||||||||||
Trading activity 6 | 73,673 | 1,126 | 57,454 | 1,014 | |||||||||||
Foreign exchange rate contracts hedging trading activity | 3,668 | 126 | 3,468 | 112 | |||||||||||
Credit contracts hedging: | |||||||||||||||
LHFI | — | — | 620 | 8 | |||||||||||
Trading activity 7 | 2,517 | 17 | 2,534 | 13 | |||||||||||
Equity contracts hedging trading activity 6 | 16,512 | 2,315 | 28,295 | 2,836 | |||||||||||
Other contracts: | |||||||||||||||
IRLCs and other 8 | 1,786 | 26 | 820 | 22 | |||||||||||
Commodity derivatives | 756 | 39 | 744 | 37 | |||||||||||
Total | 128,584 | 3,809 | 113,300 | 4,185 | |||||||||||
Total derivative instruments | $132,264 | $3,812 | $129,300 | $4,408 | |||||||||||
Total gross derivative instruments, before netting | $3,812 | $4,408 | |||||||||||||
Less: Legally enforceable master netting agreements | (2,611 | ) | (2,611 | ) | |||||||||||
Less: Cash collateral received/paid | (303 | ) | (1,420 | ) | |||||||||||
Total derivative instruments, after netting | $898 | $377 |
December 31, 2016 | |||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||
(Dollars in millions) | Notional Amounts | Fair Value | Notional Amounts | Fair Value | |||||||||||
Derivative instruments designated in cash flow hedging relationships 1 | |||||||||||||||
Interest rate contracts hedging floating rate LHFI | $6,400 | $34 | $11,050 | $265 | |||||||||||
Derivative instruments designated in fair value hedging relationships 2 | |||||||||||||||
Interest rate contracts hedging fixed rate debt | 600 | 2 | 4,510 | 81 | |||||||||||
Interest rate contracts hedging brokered CDs | 60 | — | 30 | — | |||||||||||
Total | 660 | 2 | 4,540 | 81 | |||||||||||
Derivative instruments not designated as hedging instruments 3 | |||||||||||||||
Interest rate contracts hedging: | |||||||||||||||
Residential MSRs 4 | 12,165 | 413 | 18,774 | 335 | |||||||||||
LHFS, IRLCs 5 | 11,774 | 134 | 8,306 | 58 | |||||||||||
LHFI | 100 | 2 | 36 | 1 | |||||||||||
Trading activity 6 | 70,599 | 1,536 | 67,477 | 1,401 | |||||||||||
Foreign exchange rate contracts hedging trading activity | 3,231 | 161 | 3,360 | 148 | |||||||||||
Credit contracts hedging: | |||||||||||||||
LHFI | 15 | — | 620 | 8 | |||||||||||
Trading activity 7 | 2,128 | 34 | 2,271 | 33 | |||||||||||
Equity contracts hedging trading activity 6 | 17,225 | 2,095 | 28,658 | 2,477 | |||||||||||
Other contracts: | |||||||||||||||
IRLCs and other 8 | 2,412 | 28 | 668 | 22 | |||||||||||
Commodity derivatives | 747 | 75 | 746 | 73 | |||||||||||
Total | 120,396 | 4,478 | 130,916 | 4,556 | |||||||||||
Total derivative instruments | $127,456 | $4,514 | $146,506 | $4,902 | |||||||||||
Total gross derivative instruments, before netting | $4,514 | $4,902 | |||||||||||||
Less: Legally enforceable master netting agreements | (3,239 | ) | (3,239 | ) | |||||||||||
Less: Cash collateral received/paid | (291 | ) | (1,265 | ) | |||||||||||
Total derivative instruments, after netting | $984 | $398 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | Classification of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||
(Dollars in millions) | Amount of Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion) | Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | Amount of Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion) | Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | |||||||||||||
Derivative instruments in cash flow hedging relationships: | |||||||||||||||||
Interest rate contracts hedging floating rate LHFI 1 | $10 | $3 | $61 | $37 | Interest and fees on loans |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||
(Dollars in millions) | Amount of Loss on Derivatives Recognized in Income | Amount of Gain on Related Hedged Items Recognized in Income | Amount of Gain/(Loss) Recognized in Income on Hedges (Ineffective Portion) | Amount of Gain on Derivatives Recognized in Income | Amount of Loss on Related Hedged Items Recognized in Income | Amount of Gain Recognized in Income on Hedges (Ineffective Portion) | |||||||||||||||||
Derivative instruments in fair value hedging relationships: | |||||||||||||||||||||||
Interest rate contracts hedging fixed rate debt 1 | ($3 | ) | $3 | $— | $5 | ($4 | ) | $1 | |||||||||||||||
Interest rate contracts hedging brokered CDs 1 | — | — | — | — | — | — | |||||||||||||||||
Total | ($3 | ) | $3 | $— | $5 | ($4 | ) | $1 |
(Dollars in millions) | Classification of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives During the Three Months Ended September 30, 2017 | Amount of Gain/(Loss) Recognized in Income on Derivatives During the Nine Months Ended September 30, 2017 | ||||||
Derivative instruments not designated as hedging instruments: | |||||||||
Interest rate contracts hedging: | |||||||||
Residential MSRs | Mortgage servicing related income | $14 | $34 | ||||||
LHFS, IRLCs | Mortgage production related income | (20 | ) | (57 | ) | ||||
LHFI | Other noninterest income | — | (1 | ) | |||||
Trading activity | Trading income | 11 | 33 | ||||||
Foreign exchange rate contracts hedging trading activity | Trading income | (10 | ) | (43 | ) | ||||
Credit contracts hedging: | |||||||||
LHFI | Other noninterest income | (1 | ) | (3 | ) | ||||
Trading activity | Trading income | 8 | 19 | ||||||
Equity contracts hedging trading activity | Trading income | (1 | ) | (1 | ) | ||||
Other contracts: | |||||||||
IRLCs and other | Mortgage production related income, Commercial real estate related income | 49 | 154 | ||||||
Commodity derivatives | Trading income | — | 1 | ||||||
Total | $50 | $136 |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | Classification of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||
(Dollars in millions) | Amount of Pre-tax Loss Recognized in OCI on Derivatives (Effective Portion) | Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | Amount of Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion) | Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | |||||||||||||
Derivative instruments in cash flow hedging relationships: | |||||||||||||||||
Interest rate contracts hedging floating rate LHFI 1 | ($78 | ) | $36 | $408 | $113 | Interest and fees on loans |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||
(Dollars in millions) | Amount of Loss on Derivatives Recognized in Income | Amount of Gain on Related Hedged Items Recognized in Income | Amount of Gain Recognized in Income on Hedges (Ineffective Portion) | Amount of Gain on Derivatives Recognized in Income | Amount of Loss on Related Hedged Items Recognized in Income | Amount of Gain Recognized in Income on Hedges (Ineffective Portion) | |||||||||||||||||
Derivative instruments in fair value hedging relationships: | |||||||||||||||||||||||
Interest rate contracts hedging fixed rate debt 1 | ($10 | ) | $11 | $1 | $20 | ($19 | ) | $1 | |||||||||||||||
Interest rate contracts hedging brokered CDs 1 | — | — | — | — | — | — | |||||||||||||||||
Total | ($10 | ) | $11 | $1 | $20 | ($19 | ) | $1 |
(Dollars in millions) | Classification of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives During the Three Months Ended September 30, 2016 | Amount of Gain/(Loss) Recognized in Income on Derivatives During the Nine Months Ended September 30, 2016 | ||||||
Derivative instruments not designated as hedging instruments: | |||||||||
Interest rate contracts hedging: | |||||||||
Residential MSRs | Mortgage servicing related income | $15 | $306 | ||||||
LHFS, IRLCs | Mortgage production related income | (35 | ) | (162 | ) | ||||
LHFI | Other noninterest income | — | (3 | ) | |||||
Trading activity | Trading income | 11 | 24 | ||||||
Foreign exchange rate contracts hedging trading activity | Trading income | 36 | 52 | ||||||
Credit contracts hedging: | |||||||||
LHFI | Other noninterest income | (1 | ) | (3 | ) | ||||
Trading activity | Trading income | 5 | 14 | ||||||
Equity contracts hedging trading activity | Trading income | 1 | 5 | ||||||
Other contracts: | |||||||||
IRLCs | Mortgage production related income | 122 | 291 | ||||||
Commodity derivatives | Trading income | 1 | 2 | ||||||
Total | $155 | $526 |
(Dollars in millions) | Gross Amount | Amount Offset | Net Amount Presented in Consolidated Balance Sheets | Held/Pledged Financial Instruments | Net Amount | ||||||||||||||
September 30, 2017 | |||||||||||||||||||
Derivative instrument assets: | |||||||||||||||||||
Derivatives subject to master netting arrangement or similar arrangement | $3,436 | $2,768 | $668 | $35 | $633 | ||||||||||||||
Derivatives not subject to master netting arrangement or similar arrangement | 26 | — | 26 | — | 26 | ||||||||||||||
Exchange traded derivatives | 350 | 146 | 204 | — | 204 | ||||||||||||||
Total derivative instrument assets | $3,812 | $2,914 | $898 | 1 | $35 | $863 | |||||||||||||
Derivative instrument liabilities: | |||||||||||||||||||
Derivatives subject to master netting arrangement or similar arrangement | $4,146 | $3,885 | $261 | $54 | $207 | ||||||||||||||
Derivatives not subject to master netting arrangement or similar arrangement | 115 | — | 115 | — | 115 | ||||||||||||||
Exchange traded derivatives | 147 | 146 | 1 | — | 1 | ||||||||||||||
Total derivative instrument liabilities | $4,408 | $4,031 | $377 | 2 | $54 | $323 | |||||||||||||
December 31, 2016 | |||||||||||||||||||
Derivative instrument assets: | |||||||||||||||||||
Derivatives subject to master netting arrangement or similar arrangement | $4,193 | $3,384 | $809 | $48 | $761 | ||||||||||||||
Derivatives not subject to master netting arrangement or similar arrangement | 27 | — | 27 | — | 27 | ||||||||||||||
Exchange traded derivatives | 294 | 146 | 148 | — | 148 | ||||||||||||||
Total derivative instrument assets | $4,514 | $3,530 | $984 | 1 | $48 | $936 | |||||||||||||
Derivative instrument liabilities: | |||||||||||||||||||
Derivatives subject to master netting arrangement or similar arrangement | $4,649 | $4,358 | $291 | $33 | $258 | ||||||||||||||
Derivatives not subject to master netting arrangement or similar arrangement | 105 | — | 105 | — | 105 | ||||||||||||||
Exchange traded derivatives | 148 | 146 | 2 | — | 2 | ||||||||||||||
Total derivative instrument liabilities | $4,902 | $4,504 | $398 | 2 | $33 | $365 |
• | Residential MSRs. The Company hedges these instruments with a combination of interest rate derivatives, including forward and option contracts, futures, and forward rate agreements. |
• | Residential mortgage IRLCs and LHFS. The Company hedges these instruments using forward and option contracts, futures, and forward rate agreements. |
|
• | Level 1: Quoted prices for identical instruments in active markets |
• | Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets |
• | Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable |
September 30, 2017 | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments 1 | Assets/Liabilities at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Trading assets and derivative instruments: | |||||||||||||||||||
U.S. Treasury securities | $366 | $— | $— | $— | $366 | ||||||||||||||
Federal agency securities | — | 303 | — | — | 303 | ||||||||||||||
U.S. states and political subdivisions | — | 53 | — | — | 53 | ||||||||||||||
MBS - agency | — | 666 | — | — | 666 | ||||||||||||||
Corporate and other debt securities | — | 665 | — | — | 665 | ||||||||||||||
CP | — | 383 | — | — | 383 | ||||||||||||||
Equity securities | 30 | — | — | — | 30 | ||||||||||||||
Derivative instruments | 350 | 3,439 | 23 | (2,914 | ) | 898 | |||||||||||||
Trading loans | — | 2,954 | — | — | 2,954 | ||||||||||||||
Total trading assets and derivative instruments | 746 | 8,463 | 23 | (2,914 | ) | 6,318 | |||||||||||||
Securities AFS: | |||||||||||||||||||
U.S. Treasury securities | 4,261 | — | — | — | 4,261 | ||||||||||||||
Federal agency securities | — | 270 | — | — | 270 | ||||||||||||||
U.S. states and political subdivisions | — | 563 | — | — | 563 | ||||||||||||||
MBS - agency | — | 24,980 | — | — | 24,980 | ||||||||||||||
MBS - non-agency residential | — | — | 62 | — | 62 | ||||||||||||||
MBS - non-agency commercial | — | 750 | — | — | 750 | ||||||||||||||
ABS | — | — | 8 | — | 8 | ||||||||||||||
Corporate and other debt securities | — | 28 | 5 | — | 33 | ||||||||||||||
Other equity securities 2 | 44 | — | 473 | — | 517 | ||||||||||||||
Total securities AFS | 4,305 | 26,591 | 548 | — | 31,444 | ||||||||||||||
LHFS | — | 2,251 | 1 | — | 2,252 | ||||||||||||||
LHFI | — | — | 206 | — | 206 | ||||||||||||||
Residential MSRs | — | — | 1,628 | — | 1,628 | ||||||||||||||
Liabilities | |||||||||||||||||||
Trading liabilities and derivative instruments: | |||||||||||||||||||
U.S. Treasury securities | 555 | — | — | — | 555 | ||||||||||||||
Corporate and other debt securities | — | 347 | — | — | 347 | ||||||||||||||
Equity securities | 5 | — | — | — | 5 | ||||||||||||||
Derivative instruments | 147 | 4,244 | 17 | (4,031 | ) | 377 | |||||||||||||
Total trading liabilities and derivative instruments | 707 | 4,591 | 17 | (4,031 | ) | 1,284 | |||||||||||||
Brokered time deposits | — | 207 | — | — | 207 | ||||||||||||||
Long-term debt | — | 758 | — | — | 758 |
December 31, 2016 | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments 1 | Assets/Liabilities at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Trading assets and derivative instruments: | |||||||||||||||||||
U.S. Treasury securities | $539 | $— | $— | $— | $539 | ||||||||||||||
Federal agency securities | — | 480 | — | — | 480 | ||||||||||||||
U.S. states and political subdivisions | — | 134 | — | — | 134 | ||||||||||||||
MBS - agency | — | 567 | — | — | 567 | ||||||||||||||
CLO securities | — | 1 | — | — | 1 | ||||||||||||||
Corporate and other debt securities | — | 656 | — | — | 656 | ||||||||||||||
CP | — | 140 | — | — | 140 | ||||||||||||||
Equity securities | 49 | — | — | — | 49 | ||||||||||||||
Derivative instruments | 293 | 4,193 | 28 | (3,530 | ) | 984 | |||||||||||||
Trading loans | — | 2,517 | — | — | 2,517 | ||||||||||||||
Total trading assets and derivative instruments | 881 | 8,688 | 28 | (3,530 | ) | 6,067 | |||||||||||||
Securities AFS: | |||||||||||||||||||
U.S. Treasury securities | 5,405 | — | — | — | 5,405 | ||||||||||||||
Federal agency securities | — | 313 | — | — | 313 | ||||||||||||||
U.S. states and political subdivisions | — | 275 | 4 | — | 279 | ||||||||||||||
MBS - agency | — | 23,662 | — | — | 23,662 | ||||||||||||||
MBS - non-agency residential | — | — | 74 | — | 74 | ||||||||||||||
MBS - non-agency commercial | — | 252 | — | — | 252 | ||||||||||||||
ABS | — | — | 10 | — | 10 | ||||||||||||||
Corporate and other debt securities | — | 30 | 5 | — | 35 | ||||||||||||||
Other equity securities 2 | 102 | — | 540 | — | 642 | ||||||||||||||
Total securities AFS | 5,507 | 24,532 | 633 | — | 30,672 | ||||||||||||||
LHFS | — | 3,528 | 12 | — | 3,540 | ||||||||||||||
LHFI | — | — | 222 | — | 222 | ||||||||||||||
Residential MSRs | — | — | 1,572 | — | 1,572 | ||||||||||||||
Liabilities | |||||||||||||||||||
Trading liabilities and derivative instruments: | |||||||||||||||||||
U.S. Treasury securities | 697 | — | — | — | 697 | ||||||||||||||
MBS - agency | — | 1 | — | — | 1 | ||||||||||||||
Corporate and other debt securities | — | 255 | — | — | 255 | ||||||||||||||
Derivative instruments | 149 | 4,731 | 22 | (4,504 | ) | 398 | |||||||||||||
Total trading liabilities and derivative instruments | 846 | 4,987 | 22 | (4,504 | ) | 1,351 | |||||||||||||
Brokered time deposits | — | 78 | — | — | 78 | ||||||||||||||
Long-term debt | — | 963 | — | — | 963 |
(Dollars in millions) | Fair Value at September 30, 2017 | Aggregate UPB at September 30, 2017 | Fair Value Over/(Under) Unpaid Principal | ||||||||
Assets: | |||||||||||
Trading loans | $2,954 | $2,917 | $37 | ||||||||
LHFS: | |||||||||||
Accruing | 2,252 | 2,180 | 72 | ||||||||
LHFI: | |||||||||||
Accruing | 203 | 208 | (5 | ) | |||||||
Nonaccrual | 3 | 4 | (1 | ) | |||||||
Liabilities: | |||||||||||
Brokered time deposits | 207 | 208 | (1 | ) | |||||||
Long-term debt | 758 | 736 | 22 | ||||||||
(Dollars in millions) | Fair Value at December 31, 2016 | Aggregate UPB at December 31, 2016 | Fair Value Over/(Under) Unpaid Principal | ||||||||
Assets: | |||||||||||
Trading loans | $2,517 | $2,488 | $29 | ||||||||
LHFS: | |||||||||||
Accruing | 3,540 | 3,516 | 24 | ||||||||
LHFI: | |||||||||||
Accruing | 219 | 225 | (6 | ) | |||||||
Nonaccrual | 3 | 4 | (1 | ) | |||||||
Liabilities: | |||||||||||
Brokered time deposits | 78 | 80 | (2 | ) | |||||||
Long-term debt | 963 | 924 | 39 |
Fair Value Gain/(Loss) for the Three Months Ended September 30, 2017 for Items Measured at Fair Value Pursuant to Election of the FVO | Fair Value Gain/(Loss) for the Nine Months Ended September 30, 2017 for Items Measured at Fair Value Pursuant to Election of the FVO | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Trading Income | Mortgage Production Related Income 1 | Mortgage Servicing Related Income | Other Noninterest Income | Total Changes in Fair Values Included in Earnings 2 | Trading Income | Mortgage Production Related Income 1 | Mortgage Servicing Related Income | Other Noninterest Income | Total Changes in Fair Values Included in Earnings 2 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||
Trading loans | $8 | $— | $— | $— | $8 | $16 | $— | $— | $— | $16 | |||||||||||||||||||||||||||||
LHFS | — | 21 | — | — | 21 | — | 44 | — | — | 44 | |||||||||||||||||||||||||||||
LHFI | — | — | — | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||||||
Residential MSRs | — | 1 | (70 | ) | — | (69 | ) | — | 3 | (195 | ) | — | (192 | ) | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||
Brokered time deposits | — | — | — | — | — | 2 | — | — | — | 2 | |||||||||||||||||||||||||||||
Long-term debt | 5 | — | — | — | 5 | 16 | — | — | — | 16 |
Fair Value Gain/(Loss) for the Three Months Ended September 30, 2016 for Items Measured at Fair Value Pursuant to Election of the FVO | Fair Value Gain/(Loss) for the Nine Months Ended September 30, 2016 for Items Measured at Fair Value Pursuant to Election of the FVO | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Trading Income | Mortgage Production Related Income 1 | Mortgage Servicing Related Income | Other Noninterest Income | Total Changes in Fair Values Included in Earnings 2 | Trading Income | Mortgage Production Related Income 1 | Mortgage Servicing Related Income | Other Noninterest Income | Total Changes in Fair Values Included in Earnings 2 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||
Trading loans | $6 | $— | $— | $— | $6 | $11 | $— | $— | $— | $11 | |||||||||||||||||||||||||||||
LHFS | — | 15 | — | — | 15 | — | 92 | — | — | 92 | |||||||||||||||||||||||||||||
LHFI | — | — | — | (1 | ) | (1 | ) | — | — | — | 5 | 5 | |||||||||||||||||||||||||||
Residential MSRs | — | — | (56 | ) | — | (56 | ) | — | 2 | (488 | ) | — | (486 | ) | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||
Brokered time deposits | 1 | — | — | — | 1 | 1 | — | — | — | 1 | |||||||||||||||||||||||||||||
Long-term debt | 7 | — | — | — | 7 | 10 | — | — | — | 10 |
Level 3 Significant Unobservable Input Assumptions | |||||||||
(Dollars in millions) | Fair value September 30, 2017 | Valuation Technique | Unobservable Input 1 | Range (weighted average) | |||||
Assets | |||||||||
Trading assets and derivative instruments: | |||||||||
Derivative instruments, net 2 | $6 | Internal model | Pull through rate | 46-100% (79%) | |||||
MSR value | 27-160 bps (104 bps) | ||||||||
Securities AFS: | |||||||||
MBS - non-agency residential | 62 | Third party pricing | N/A | ||||||
ABS | 8 | Third party pricing | N/A | ||||||
Corporate and other debt securities | 5 | Cost | N/A | ||||||
Other equity securities | 473 | Cost | N/A | ||||||
Residential LHFS | 1 | Monte Carlo/Discounted cash flow | Option adjusted spread | 125 bps (125 bps) | |||||
Conditional prepayment rate | 5-30 CPR (14 CPR) | ||||||||
Conditional default rate | 0-2 CDR (0.5 CDR) | ||||||||
LHFI | 203 | Monte Carlo/Discounted cash flow | Option adjusted spread | 62-784 bps (188 bps) | |||||
Conditional prepayment rate | 3-36 CPR (11 CPR) | ||||||||
Conditional default rate | 0-9 CDR (1.4 CDR) | ||||||||
3 | Collateral based pricing | Appraised value | NM 3 | ||||||
Residential MSRs | 1,628 | Monte Carlo/Discounted cash flow | Conditional prepayment rate | 7-29 CPR (13 CPR) | |||||
Option adjusted spread | 0-111% (4%) |
Level 3 Significant Unobservable Input Assumptions | |||||||||
(Dollars in millions) | Fair value December 31, 2016 | Valuation Technique | Unobservable Input 1 | Range (weighted average) | |||||
Assets | |||||||||
Trading assets and derivative instruments: | |||||||||
Derivative instruments, net 2 | $6 | Internal model | Pull through rate | 40-100% (81%) | |||||
MSR value | 22-170 bps (106 bps) | ||||||||
Securities AFS: | |||||||||
U.S. states and political subdivisions | 4 | Cost | N/A | ||||||
MBS - non-agency residential | 74 | Third party pricing | N/A | ||||||
ABS | 10 | Third party pricing | N/A | ||||||
Corporate and other debt securities | 5 | Cost | N/A | ||||||
Other equity securities | 540 | Cost | N/A | ||||||
Residential LHFS | 12 | Monte Carlo/Discounted cash flow | Option adjusted spread | 104-125 bps (124 bps) | |||||
Conditional prepayment rate | 2-28 CPR (7 CPR) | ||||||||
Conditional default rate | 0-3 CDR (0.4 CDR) | ||||||||
LHFI | 219 | Monte Carlo/Discounted cash flow | Option adjusted spread | 62-784 bps (184 bps) | |||||
Conditional prepayment rate | 3-36 CPR (13 CPR) | ||||||||
Conditional default rate | 0-5 CDR (2.1 CDR) | ||||||||
3 | Collateral based pricing | Appraised value | NM 3 | ||||||
Residential MSRs | 1,572 | Monte Carlo/Discounted cash flow | Conditional prepayment rate | 1-25 CPR (9 CPR) | |||||
Option adjusted spread | 0-122% (8%) |
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Beginning Balance July 1, 2017 | Included in Earnings | OCI | Purchases | Sales | Settlements | Transfers to/from Other Balance Sheet Line Items | Transfers into Level 3 | Transfers out of Level 3 | Fair Value September 30, 2017 | Included in Earnings (held at September 30, 2017 1) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments, net | $4 | $52 | 2 | $— | $— | $— | $1 | ($51 | ) | $— | $— | $6 | $19 | 2 | ||||||||||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||||||||||||||
MBS - non-agency residential | 67 | — | 1 | 3 | — | — | (6 | ) | — | — | — | 62 | — | |||||||||||||||||||||||||||||||
ABS | 9 | — | — | — | — | (1 | ) | — | — | — | 8 | — | ||||||||||||||||||||||||||||||||
Corporate and other debt securities | 5 | — | — | — | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||
Other equity securities | 547 | — | — | — | — | (74 | ) | — | — | — | 473 | — | ||||||||||||||||||||||||||||||||
Total securities AFS | 628 | — | 1 | 3 | — | — | (81 | ) | — | — | — | 548 | — | |||||||||||||||||||||||||||||||
Residential LHFS | 2 | — | — | — | (2 | ) | (1 | ) | (1 | ) | 3 | — | 1 | — | ||||||||||||||||||||||||||||||
LHFI | 214 | — | — | — | — | (9 | ) | 1 | — | — | 206 | — |
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Beginning Balance January 1, 2017 | Included in Earnings | OCI | Purchases | Sales | Settlements | Transfers to/from Other Balance Sheet Line Items | Transfers into Level 3 | Transfers out of Level 3 | Fair Value September 30, 2017 | Included in Earnings (held at September 30, 2017 1) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments, net | $6 | $157 | 2 | $— | $— | $— | $— | ($157 | ) | $— | $— | $6 | $17 | 2 | ||||||||||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. states and political subdivisions | 4 | — | — | — | — | (4 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||
MBS - non-agency residential | 74 | — | 1 | 3 | — | — | (13 | ) | — | — | — | 62 | — | |||||||||||||||||||||||||||||||
ABS | 10 | — | — | — | — | (2 | ) | — | — | — | 8 | — | ||||||||||||||||||||||||||||||||
Corporate and other debt securities | 5 | — | — | — | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||
Other equity securities | 540 | — | 1 | 3 | 75 | — | (138 | ) | — | — | (5 | ) | 473 | — | ||||||||||||||||||||||||||||||
Total securities AFS | 633 | — | 2 | 3 | 75 | — | (157 | ) | — | — | (5 | ) | 548 | — | ||||||||||||||||||||||||||||||
Residential LHFS | 12 | — | — | — | (22 | ) | (1 | ) | (3 | ) | 17 | (2 | ) | 1 | — | |||||||||||||||||||||||||||||
LHFI | 222 | 1 | 4 | — | — | — | (24 | ) | 3 | 4 | — | 206 | 1 | 4 |
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Beginning Balance July 1, 2016 | Included in Earnings | OCI | Purchases | Sales | Settlements | Transfers to/from Other Balance Sheet Line Items | Transfers into Level 3 | Transfers out of Level 3 | Fair Value September 30, 2016 | Included in Earnings (held at September 30, 2016 1) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments, net | $60 | $118 | 2 | $— | $— | $— | $2 | ($116 | ) | $— | $— | $64 | $73 | 2 | ||||||||||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. states and political subdivisions | 4 | — | — | — | — | — | — | — | — | 4 | — | |||||||||||||||||||||||||||||||||
MBS - non-agency residential | 83 | — | — | — | — | (7 | ) | — | — | — | 76 | — | ||||||||||||||||||||||||||||||||
ABS | 11 | — | 1 | 3 | — | — | (1 | ) | — | — | — | 11 | — | |||||||||||||||||||||||||||||||
Corporate and other debt securities | 5 | — | — | — | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||
Other equity securities | 610 | — | — | — | — | (59 | ) | — | — | — | 551 | — | ||||||||||||||||||||||||||||||||
Total securities AFS | 713 | — | 1 | 3 | — | — | (67 | ) | — | — | — | 647 | — | |||||||||||||||||||||||||||||||
Residential LHFS | 4 | — | — | — | (13 | ) | — | (2 | ) | 14 | — | 3 | — | |||||||||||||||||||||||||||||||
LHFI | 246 | (2 | ) | 4 | — | — | — | (10 | ) | (2 | ) | 2 | — | 234 | (2 | ) | 4 |
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Beginning Balance January 1, 2016 | Included in Earnings | OCI | Purchases | Sales | Settlements | Transfers to/from Other Balance Sheet Line Items | Transfers into Level 3 | Transfers out of Level 3 | Fair Value September 30, 2016 | Included in Earnings (held at September 30, 2016 1) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate and other debt securities | $89 | ($1 | ) | 5 | $— | $— | ($88 | ) | $— | $— | $— | $— | $— | $— | ||||||||||||||||||||||||||||||
Derivative instruments, net | 15 | 279 | 2 | — | — | — | 2 | (232 | ) | — | — | 64 | 68 | 2 | ||||||||||||||||||||||||||||||
Total trading assets | 104 | 278 | — | — | (88 | ) | 2 | (232 | ) | — | — | 64 | 68 | |||||||||||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. states and political subdivisions | 5 | — | — | — | — | (1 | ) | — | — | — | 4 | — | ||||||||||||||||||||||||||||||||
MBS - non-agency residential | 94 | — | (1 | ) | 3 | — | — | (17 | ) | — | — | — | 76 | — | ||||||||||||||||||||||||||||||
ABS | 12 | — | 1 | 3 | — | — | (2 | ) | — | — | — | 11 | — | |||||||||||||||||||||||||||||||
Corporate and other debt securities | 5 | — | — | — | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||
Other equity securities | 440 | — | 1 | 3 | 276 | — | (166 | ) | — | — | — | 551 | — | |||||||||||||||||||||||||||||||
Total securities AFS | 556 | — | 1 | 3 | 276 | — | (186 | ) | — | — | — | 647 | — | |||||||||||||||||||||||||||||||
Residential LHFS | 5 | — | — | — | (27 | ) | — | (4 | ) | 31 | (2 | ) | 3 | — | ||||||||||||||||||||||||||||||
LHFI | 257 | 4 | 4 | — | — | — | (32 | ) | (1 | ) | 6 | — | 234 | 4 | 4 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 23 | — | — | — | — | (23 | ) | — | — | — | — | — |
Fair Value Measurements | Losses for the Three Months Ended September 30, 2017 | Losses for the Nine Months Ended September 30, 2017 | |||||||||||||||||||||
(Dollars in millions) | September 30, 2017 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
LHFS | $46 | $— | $46 | $— | $— | $— | |||||||||||||||||
LHFI | 76 | — | — | 76 | — | — | |||||||||||||||||
OREO | 20 | — | — | 20 | (2 | ) | (4 | ) | |||||||||||||||
Other assets | 50 | — | 7 | 43 | (21 | ) | (35 | ) | |||||||||||||||
Fair Value Measurements | Losses for the Year Ended December 31, 2016 | ||||||||||||||||||||||
(Dollars in millions) | December 31, 2016 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
LHFI | $75 | $— | $— | $75 | $— | ||||||||||||||||||
OREO | 17 | — | — | 17 | (2 | ) | |||||||||||||||||
Other assets | 112 | — | 58 | 54 | (36 | ) |
September 30, 2017 | Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $8,278 | $8,278 | $8,278 | $— | $— | (a) | ||||||||||||||
Trading assets and derivative instruments | 6,318 | 6,318 | 746 | 5,549 | 23 | (b) | ||||||||||||||
Securities AFS | 31,444 | 31,444 | 4,305 | 26,591 | 548 | (b) | ||||||||||||||
LHFS | 2,835 | 2,849 | — | 2,653 | 196 | (c) | ||||||||||||||
LHFI, net | 142,492 | 142,482 | — | 121 | 142,361 | (d) | ||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 162,737 | 162,590 | — | 162,590 | — | (e) | ||||||||||||||
Short-term borrowings | 5,449 | 5,449 | — | 5,449 | — | (f) | ||||||||||||||
Long-term debt | 11,280 | 11,389 | — | 10,363 | 1,026 | (f) | ||||||||||||||
Trading liabilities and derivative instruments | 1,284 | 1,284 | 707 | 560 | 17 | (b) |
December 31, 2016 | Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $6,423 | $6,423 | $6,423 | $— | $— | (a) | ||||||||||||||
Trading assets and derivative instruments | 6,067 | 6,067 | 881 | 5,158 | 28 | (b) | ||||||||||||||
Securities AFS | 30,672 | 30,672 | 5,507 | 24,532 | 633 | (b) | ||||||||||||||
LHFS | 4,169 | 4,178 | — | 4,161 | 17 | (c) | ||||||||||||||
LHFI, net | 141,589 | 140,516 | — | 282 | 140,234 | (d) | ||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 160,398 | 160,280 | — | 160,280 | — | (e) | ||||||||||||||
Short-term borrowings | 4,764 | 4,764 | — | 4,764 | — | (f) | ||||||||||||||
Long-term debt | 11,748 | 11,779 | — | 11,051 | 728 | (f) | ||||||||||||||
Trading liabilities and derivative instruments | 1,351 | 1,351 | 846 | 483 | 22 | (b) |
(a) | Cash and cash equivalents are valued at their carrying amounts, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments. |
(b) | Trading assets and derivative instruments, securities AFS, and trading liabilities and derivative instruments that are classified as level 1 are valued based on quoted prices observed in active markets. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote. |
(c) | LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, quoted market prices of similar instruments. Refer to the LHFS section within this footnote for further discussion. When valuation assumptions are not readily observable in the market, instruments are valued based on the best available data to approximate fair value. This data may be internally developed and considers risk premiums that a market participant would require under then-current market conditions. |
(d) | LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid or nonexistent requires significant judgment. |
(e) | Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow approach that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values. Refer to the respective valuation section within this footnote for valuation information related to brokered time deposits that the Company measures at fair value as well as those that are carried at amortized cost. |
(f) | Fair values for short-term borrowings and certain long-term debt are based on quoted market prices for similar instruments or estimated discounted cash flows utilizing the Company’s current incremental borrowing rate for similar types of instruments. Refer to the respective valuation section within this footnote for valuation information related to long-term debt that the Company measures at fair value. For level 3 debt, the terms are unique in nature or there are no similar instruments that can be used to value the instrument without using significant unobservable assumptions. In these situations, the Company reviews current borrowing rates along with the collateral levels that secure the debt in determining an appropriate fair value adjustment. |
|
|
• | Consumer Banking provides services to individual consumers and branch-managed small business clients through an extensive network of traditional and in-store branches, ATMs, the internet (www.suntrust.com), mobile banking, and by telephone (1-800-SUNTRUST). Financial products and services offered to consumers and small business clients include deposits and payments, loans, and various fee-based services. Consumer Banking also serves as an entry point for clients and provides services for other businesses. |
• | Consumer Lending offers an array of lending products to individual consumers and small business clients via the Company's Consumer Banking and PWM businesses, through the internet (www.suntrust.com and www.lightstream.com), as well as through various national offices and partnerships. Products offered include home equity lines, personal credit lines and loans, direct auto, indirect auto, student lending, credit cards, and other lending products. |
• | PWM provides a full array of wealth management products and professional services to individual consumers and institutional clients, including loans, deposits, brokerage, professional investment advisory, and trust services to clients seeking active management of their financial resources. Institutional clients are served by the Institutional Investment Solutions business. Discount/online and full-service brokerage products are offered to individual clients through STIS. Investment advisory products and services are offered to clients by STAS, an SEC registered investment advisor. PWM also includes GenSpring, which provides family office solutions to ultra-high net worth individuals and their families. Utilizing teams of multi-disciplinary specialists with expertise in investments, tax, accounting, estate planning, and other wealth management disciplines, GenSpring helps families manage and sustain wealth across multiple generations. |
• | Mortgage Banking offers residential mortgage products nationally through its retail and correspondent channels, the internet (www.suntrust.com), and by telephone (1-800-SUNTRUST). These products are either sold in the secondary market, primarily with servicing rights retained, or held in the Company’s loan portfolio. Mortgage Banking also services loans for other investors, in addition to loans held in the Company’s loan portfolio. |
• | CIB delivers comprehensive capital markets solutions, including advisory, capital raising, and financial risk management, with the goal of serving the needs of both public and private companies in the Wholesale segment and PWM business. Investment Banking and Corporate Banking teams within CIB serve clients across the nation, offering a full suite of traditional banking and investment banking products and services to companies with annual revenues typically greater than $150 million. Investment Banking serves select industry segments including consumer and retail, energy, financial services, healthcare, industrials, and technology, media and communications. Corporate Banking serves clients across diversified industry sectors based on size, complexity, and frequency of capital markets issuance. Also managed within CIB is the Equipment Finance Group, which provides lease financing solutions (through SunTrust Equipment Finance & Leasing). |
• | Commercial & Business Banking offers an array of traditional banking products, including lending, cash management and investment banking solutions via STRH to commercial clients (generally clients with revenues between $1 million and $150 million), not-for-profit organizations, and governmental entities, as well as auto dealer financing (floor plan inventory financing). Also managed within Commercial & Business Banking is PAC, which provides corporate insurance premium financing solutions. |
◦ | In September 2017, the Company announced that it reached a definitive agreement to sell its PAC subsidiary. PAC had $1.3 billion in assets at September 30, 2017. The sale is expected to close in the fourth quarter of 2017, subject to various customary closing conditions. |
• | Commercial Real Estate provides a full range of financial solutions for commercial real estate developers, owners, and operators, including construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions via STRH. With the acquisition of the assets of Pillar in December of 2016, commercial real estate also provides multi-family agency lending and servicing, as well as loan administration, advisory, and commercial mortgage brokerage services. The Institutional Property Group business targets relationships with REITs, pension fund advisors, private funds, homebuilders, and insurance companies and the Regional business focuses on private real estate owners and developers through a regional delivery structure. Commercial Real Estate also offers tailored financing and equity investment solutions for community development and affordable housing projects through STCC, with particular expertise in Low Income Housing Tax Credits and New Market Tax Credits. |
• | Treasury & Payment Solutions provides Wholesale clients with services required to manage their payments and receipts, combined with the ability to manage and optimize their deposits across all aspects of their business. Treasury & Payment Solutions operates all electronic and paper payment types, including card, wire transfer, ACH, check, and cash. It also provides clients the means to manage their accounts electronically online, both domestically and internationally. |
• | Net interest income-FTE – is reconciled from net interest income and is grossed-up on an FTE basis to make income from tax-exempt assets comparable to other taxable products. Segment results reflect matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by assets and liabilities of each segment. Differences between these credits and charges are captured as reconciling items. The change in this variance is generally attributable to corporate balance sheet management strategies. |
• | Provision/(benefit) for credit losses – represents net charge-offs by segment combined with an allocation to the segments for the provision/(benefit) attributable to each segment's quarterly change in the ALLL and unfunded commitments reserve balances. |
• | Noninterest income – includes federal and state tax credits that are grossed-up on a pre-tax equivalent basis, related primarily to certain community development investments. |
• | Provision for income taxes-FTE – is calculated using a blended income tax rate for each segment and includes reversals of the tax adjustments and credits described above. The difference between the calculated provision for income taxes at the segment level and the consolidated provision for income taxes is reported as reconciling items. |
• | Operational costs – expenses are charged to segments based on a methodical activity-based costing process, which also allocates residual expenses to the segments. Generally, recoveries of these costs are reported in Corporate Other. |
• | Support and overhead costs – expenses not directly attributable to a specific segment are allocated based on various drivers (number of equivalent employees, number of PCs/laptops, net revenue, etc.). Recoveries for these allocations are reported in Corporate Other. |
Three Months Ended September 30, 2017 | |||||||||||||||||||
(Dollars in millions) | Consumer | Wholesale | Corporate Other | Reconciling Items | Consolidated | ||||||||||||||
Balance Sheets: | |||||||||||||||||||
Average loans | $73,378 | $71,255 | $76 | ($3 | ) | $144,706 | |||||||||||||
Average consumer and commercial deposits | 103,066 | 56,211 | 202 | (60 | ) | 159,419 | |||||||||||||
Average total assets | 83,161 | 85,280 | 34,763 | 2,534 | 205,738 | ||||||||||||||
Average total liabilities | 103,964 | 61,820 | 15,388 | (7 | ) | 181,165 | |||||||||||||
Average total equity | — | — | — | 24,573 | 24,573 | ||||||||||||||
Statements of Income: | |||||||||||||||||||
Net interest income | $941 | $571 | ($23 | ) | ($59 | ) | $1,430 | ||||||||||||
FTE adjustment | — | 36 | 1 | — | 37 | ||||||||||||||
Net interest income-FTE 1 | 941 | 607 | (22 | ) | (59 | ) | 1,467 | ||||||||||||
Provision/(benefit) for credit losses 2 | 136 | (16 | ) | — | — | 120 | |||||||||||||
Net interest income after provision/(benefit) for credit losses-FTE | 805 | 623 | (22 | ) | (59 | ) | 1,347 | ||||||||||||
Total noninterest income | 473 | 406 | 19 | (52 | ) | 846 | |||||||||||||
Total noninterest expense | 899 | 459 | 39 | (6 | ) | 1,391 | |||||||||||||
Income before provision for income taxes-FTE | 379 | 570 | (42 | ) | (105 | ) | 802 | ||||||||||||
Provision for income taxes-FTE 3 | 138 | 211 | (22 | ) | (65 | ) | 262 | ||||||||||||
Net income including income attributable to noncontrolling interest | 241 | 359 | (20 | ) | (40 | ) | 540 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | 2 | — | 2 | ||||||||||||||
Net income | $241 | $359 | ($22 | ) | ($40 | ) | $538 |
Three Months Ended September 30, 2016 1 | |||||||||||||||||||
(Dollars in millions) | Consumer | Wholesale | Corporate Other | Reconciling Items | Consolidated | ||||||||||||||
Balance Sheets: | |||||||||||||||||||
Average loans | $70,560 | $71,625 | $74 | ($2 | ) | $142,257 | |||||||||||||
Average consumer and commercial deposits | 99,730 | 55,489 | 157 | (63 | ) | 155,313 | |||||||||||||
Average total assets | 80,298 | 85,762 | 32,479 | 2,937 | 201,476 | ||||||||||||||
Average total liabilities | 100,698 | 61,078 | 15,351 | (61 | ) | 177,066 | |||||||||||||
Average total equity | — | — | — | 24,410 | 24,410 | ||||||||||||||
Statements of Income: | |||||||||||||||||||
Net interest income | $872 | $505 | $23 | ($92 | ) | $1,308 | |||||||||||||
FTE adjustment | — | 34 | 1 | (1 | ) | 34 | |||||||||||||
Net interest income-FTE 2 | 872 | 539 | 24 | (93 | ) | 1,342 | |||||||||||||
Provision for credit losses 3 | 29 | 68 | — | — | 97 | ||||||||||||||
Net interest income after provision for credit losses-FTE | 843 | 471 | 24 | (93 | ) | 1,245 | |||||||||||||
Total noninterest income | 555 | 355 | 20 | (41 | ) | 889 | |||||||||||||
Total noninterest expense | 985 | 424 | 4 | (4 | ) | 1,409 | |||||||||||||
Income before provision for income taxes-FTE | 413 | 402 | 40 | (130 | ) | 725 | |||||||||||||
Provision for income taxes-FTE 4 | 155 | 150 | 12 | (68 | ) | 249 | |||||||||||||
Net income including income attributable to noncontrolling interest | 258 | 252 | 28 | (62 | ) | 476 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 2 | — | 2 | ||||||||||||||
Net income | $258 | $252 | $26 | ($62 | ) | $474 |
Nine Months Ended September 30, 2017 | |||||||||||||||||||
(Dollars in millions) | Consumer | Wholesale | Corporate Other | Reconciling Items | Consolidated | ||||||||||||||
Balance Sheets: | |||||||||||||||||||
Average loans | $72,200 | $72,005 | $74 | ($3 | ) | $144,276 | |||||||||||||
Average consumer and commercial deposits | 102,686 | 56,326 | 162 | (29 | ) | 159,145 | |||||||||||||
Average total assets | 82,071 | 85,638 | 34,420 | 2,704 | 204,833 | ||||||||||||||
Average total liabilities | 103,616 | 61,990 | 15,089 | 7 | 180,702 | ||||||||||||||
Average total equity | — | — | — | 24,131 | 24,131 | ||||||||||||||
Statements of Income: | |||||||||||||||||||
Net interest income | $2,748 | $1,670 | ($17 | ) | ($202 | ) | $4,199 | ||||||||||||
FTE adjustment | — | 105 | 2 | — | 107 | ||||||||||||||
Net interest income-FTE 1 | 2,748 | 1,775 | (15 | ) | (202 | ) | 4,306 | ||||||||||||
Provision for credit losses 2 | 299 | 31 | — | — | 330 | ||||||||||||||
Net interest income after provision for credit losses-FTE | 2,449 | 1,744 | (15 | ) | (202 | ) | 3,976 | ||||||||||||
Total noninterest income | 1,401 | 1,194 | 59 | (134 | ) | 2,520 | |||||||||||||
Total noninterest expense | 2,832 | 1,399 | 26 | (14 | ) | 4,243 | |||||||||||||
Income before provision for income taxes-FTE | 1,018 | 1,539 | 18 | (322 | ) | 2,253 | |||||||||||||
Provision for income taxes-FTE 3 | 367 | 572 | (26 | ) | (200 | ) | 713 | ||||||||||||
Net income including income attributable to noncontrolling interest | 651 | 967 | 44 | (122 | ) | 1,540 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 7 | — | 7 | ||||||||||||||
Net income | $651 | $967 | $37 | ($122 | ) | $1,533 |
Nine Months Ended September 30, 2016 1 | |||||||||||||||||||
(Dollars in millions) | Consumer | Wholesale | Corporate Other | Reconciling Items | Consolidated | ||||||||||||||
Balance Sheets: | |||||||||||||||||||
Average loans | $69,075 | $71,489 | $66 | ($2 | ) | $140,628 | |||||||||||||
Average consumer and commercial deposits | 98,751 | 54,099 | 122 | (61 | ) | 152,911 | |||||||||||||
Average total assets | 78,378 | 85,392 | 31,510 | 2,333 | 197,613 | ||||||||||||||
Average total liabilities | 99,746 | 59,798 | 14,019 | (26 | ) | 173,537 | |||||||||||||
Average total equity | — | — | — | 24,076 | 24,076 | ||||||||||||||
Statements of Income: | |||||||||||||||||||
Net interest income | $2,578 | $1,488 | $83 | ($272 | ) | $3,877 | |||||||||||||
FTE adjustment | — | 103 | 2 | — | 105 | ||||||||||||||
Net interest income-FTE 2 | 2,578 | 1,591 | 85 | (272 | ) | 3,982 | |||||||||||||
Provision for credit losses 3 | 90 | 253 | — | — | 343 | ||||||||||||||
Net interest income after provision for credit losses-FTE | 2,488 | 1,338 | 85 | (272 | ) | 3,639 | |||||||||||||
Total noninterest income | 1,568 | 996 | 112 | (107 | ) | 2,569 | |||||||||||||
Total noninterest expense | 2,839 | 1,243 | 3 | (13 | ) | 4,072 | |||||||||||||
Income before provision for income taxes-FTE | 1,217 | 1,091 | 194 | (366 | ) | 2,136 | |||||||||||||
Provision for income taxes-FTE 4 | 455 | 407 | 54 | (200 | ) | 716 | |||||||||||||
Net income including income attributable to noncontrolling interest | 762 | 684 | 140 | (166 | ) | 1,420 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 7 | — | 7 | ||||||||||||||
Net income | $762 | $684 | $133 | ($166 | ) | $1,413 |
|
(Dollars in millions) | Securities AFS | Derivative Instruments | Brokered Time Deposits | Long-Term Debt | Employee Benefit Plans | Total | |||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||
Balance, beginning of period | ($5 | ) | ($168 | ) | ($1 | ) | ($7 | ) | ($596 | ) | ($777 | ) | |||||||||||
Net unrealized gains arising during the period | 40 | 6 | — | 1 | — | 47 | |||||||||||||||||
Amounts reclassified to net income | — | (8 | ) | — | — | 3 | (5 | ) | |||||||||||||||
Other comprehensive income/(loss), net of tax | 40 | (2 | ) | — | 1 | 3 | 42 | ||||||||||||||||
Balance, end of period | $35 | ($170 | ) | ($1 | ) | ($6 | ) | ($593 | ) | ($735 | ) | ||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||
Balance, beginning of period | $550 | $310 | $— | ($7 | ) | ($620 | ) | $233 | |||||||||||||||
Net unrealized losses arising during the period | (32 | ) | (49 | ) | — | (3 | ) | — | (84 | ) | |||||||||||||
Amounts reclassified to net income | — | (37 | ) | — | — | 3 | (34 | ) | |||||||||||||||
Other comprehensive (loss)/income, net of tax | (32 | ) | (86 | ) | — | (3 | ) | 3 | (118 | ) | |||||||||||||
Balance, end of period | $518 | $224 | $— | ($10 | ) | ($617 | ) | $115 | |||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||
Balance, beginning of period | ($62 | ) | ($157 | ) | ($1 | ) | ($7 | ) | ($594 | ) | ($821 | ) | |||||||||||
Net unrealized gains arising during the period | 98 | 38 | — | 1 | — | 137 | |||||||||||||||||
Amounts reclassified to net income | (1 | ) | (51 | ) | — | — | 1 | (51 | ) | ||||||||||||||
Other comprehensive income/(loss), net of tax | 97 | (13 | ) | — | 1 | 1 | 86 | ||||||||||||||||
Balance, end of period | $35 | ($170 | ) | ($1 | ) | ($6 | ) | ($593 | ) | ($735 | ) | ||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Balance, beginning of period | $135 | $87 | $— | $— | ($682 | ) | ($460 | ) | |||||||||||||||
Cumulative credit risk adjustment 1 | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||
Net unrealized gains/(losses) arising during the period | 386 | 256 | — | (5 | ) | — | 637 | ||||||||||||||||
Amounts reclassified to net income | (3 | ) | (119 | ) | — | — | 65 | (57 | ) | ||||||||||||||
Other comprehensive income/(loss), net of tax | 383 | 137 | — | (5 | ) | 65 | 580 | ||||||||||||||||
Balance, end of period | $518 | $224 | $— | ($10 | ) | ($617 | ) | $115 |
(Dollars in millions) | Three Months Ended September 30 | Nine Months Ended September 30 | Impacted Line Item in the Consolidated Statements of Income | |||||||||||||||
Details About AOCI Components | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Securities AFS: | ||||||||||||||||||
Realized gains on securities AFS | $— | $— | ($1 | ) | ($4 | ) | Net securities gains | |||||||||||
Tax effect | — | — | — | 1 | Provision for income taxes | |||||||||||||
— | — | (1 | ) | (3 | ) | |||||||||||||
Derivative Instruments: | ||||||||||||||||||
Realized gains on cash flow hedges | (13 | ) | (59 | ) | (81 | ) | (190 | ) | Interest and fees on loans | |||||||||
Tax effect | 5 | 22 | 30 | 71 | Provision for income taxes | |||||||||||||
(8 | ) | (37 | ) | (51 | ) | (119 | ) | |||||||||||
Employee Benefit Plans: | ||||||||||||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (4 | ) | (4 | ) | Employee benefits | |||||||||
Amortization of actuarial loss | 6 | 6 | 18 | 19 | Employee benefits | |||||||||||||
Adjustment to funded status of employee benefit obligation | — | — | (10 | ) | 89 | Other assets/other liabilities | ||||||||||||
5 | 5 | 4 | 104 | |||||||||||||||
Tax effect | (2 | ) | (2 | ) | (3 | ) | (39 | ) | Provision for income taxes | |||||||||
3 | 3 | 1 | 65 | |||||||||||||||
Total reclassifications from AOCI to net income | ($5 | ) | ($34 | ) | ($51 | ) | ($57 | ) |
|
Standard | Description | Required Date of Adoption | Effect on the Financial Statements or Other Significant Matters |
Standard(s) Adopted in 2017 (or partially adopted previously) | |||
ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities | The ASU amends ASC Topic 825, Financial Instruments-Overall, and addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require investments in equity securities to be measured at fair value through net income, unless they qualify for a practicability exception, and require fair value changes arising from changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option to be recognized in other comprehensive income. With the exception of disclosure requirements that will be adopted prospectively, the ASU must be adopted on a modified retrospective basis. | January 1, 2018 Early adoption is permitted beginning January 1, 2016 or 2017 for the provision related to changes in instrument-specific credit risk for financial liabilities under the FVO. | The Company early adopted the provision related to changes in instrument-specific credit risk beginning January 1, 2016, which resulted in an immaterial, cumulative effect adjustment from retained earnings to AOCI. See Note 1, “Significant Accounting Policies,” to the Company's 2016 Annual Report on Form 10-K for additional information. The Company does not expect the remaining provisions of this ASU to have a material impact on its Consolidated Financial Statements and related disclosures. |
Standard(s) Not Yet Adopted | |||
ASU 2016-02, Leases | The ASU creates ASC Topic 842, Leases, which supersedes ASC Topic 840, Leases. ASC Topic 842 requires lessees to recognize right-of-use assets and associated liabilities that arise from leases, with the exception of short-term leases. The ASU does not make significant changes to lessor accounting; however, there were certain improvements made to align lessor accounting with the lessee accounting model and ASC Topic 606, Revenue from Contracts with Customers. There are several new qualitative and quantitative disclosures required. Upon transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. | January 1, 2019 Early adoption is permitted. | The Company has formed a cross-functional team to oversee the implementation of this ASU. The Company's implementation efforts are ongoing, including the review of its lease portfolios and related lease accounting policies, the review of its service contracts for embedded leases, and the deployment of a new lease software solution. The Company's adoption of this ASU will result in an increase in right-of-use assets and associated lease liabilities, arising from operating leases in which the Company is the lessee, on its Consolidated Balance Sheets. The amount of the right-of-use assets and associated lease liabilities recorded upon adoption will be based primarily on the present value of unpaid future minimum lease payments, the amount of which will depend on the population of leases in effect at the date of adoption. At September 30, 2017, the Company’s estimate of right-of-use assets and lease liabilities that would be recorded on its Consolidated Balance Sheets upon adoption is in excess of $1 billion. The Company does not expect this ASU to have a material impact on its Consolidated Statements of Income. |
Standard | Description | Required Date of Adoption | Effect on the Financial Statements or Other Significant Matters |
Standard(s) Not Yet Adopted (continued) | |||
ASU 2016-13, Measurement of Credit Losses on Financial Instruments | The ASU amends ASC Topic 326, Financial Instruments-Credit Losses, to replace the incurred loss impairment methodology with a CECL methodology for financial instruments measured at amortized cost and other commitments to extend credit. For this purpose, expected credit losses reflect losses over the remaining contractual life of an asset, considering the effect of voluntary prepayments and considering available information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses reflects the portion of the amortized cost basis that the entity does not expect to collect. Additional quantitative and qualitative disclosures are required upon adoption. The CECL model does not apply to AFS debt securities; however, the ASU requires entities to record an allowance when recognizing credit losses for AFS securities, rather than recording a direct write-down of the carrying amount. | January 1, 2020 Early adoption is permitted beginning January 1, 2019. | The Company has formed a cross-functional team to oversee the implementation of this ASU and is assessing the required changes to its credit loss estimation methodologies. The Company is evaluating the impact that this ASU will have on its Consolidated Financial Statements and related disclosures, and the Company currently anticipates that an increase to the allowance for credit losses will be recognized upon adoption to provide for the expected credit losses over the estimated life of the financial assets. However, since the magnitude of the anticipated increase in the allowance for credit losses will be impacted by economic conditions and trends in the Company’s portfolio at the time of adoption, the quantitative impact cannot yet be reasonably estimated. |
ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments | The ASU amends ASC Topic 230, Statement of Cash Flows, to clarify the classification of certain cash receipts and payments within the Company's Consolidated Statements of Cash Flow. These items include: cash payments for debt prepayment or debt extinguishment costs; cash outflows for the settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; and beneficial interests acquired in securitization transactions. The ASU also clarifies that when no specific U.S. GAAP guidance exists and the source of the cash flows are not separately identifiable, then the predominant source of cash flow should be used to determine the classification for the item. The ASU must be adopted on a retrospective basis. | January 1, 2018 Early adoption is permitted. | The Company is evaluating the impact that this ASU will have on its Consolidated Statements of Cash Flows. Changes in the Company's presentation of certain cash payments and receipts between the operating, financing, and investing sections of its Consolidated Statements of Cash Flows are expected; however, the quantitative impact has not yet been determined. |
ASU 2014-09, Revenue from Contracts with Customers ASU 2015-14, Deferral of the Effective Date ASU 2016-08, Principal versus Agent Considerations ASU 2016-10, Identifying Performance Obligations and Licensing ASU 2016-12, Narrow-Scope Improvements and Practical Expedients ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers | These ASUs comprise ASC Topic 606, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of these ASUs is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. These ASUs may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts, with remaining performance obligations as of the effective date. | January 1, 2018 Early adoption is permitted beginning January 1, 2017. | The Company is completing its evaluation of the anticipated effects that these ASUs will have on its Consolidated Financial Statements and related disclosures. The Company conducted a comprehensive scoping exercise to determine the revenue streams that are in the scope of these updates. Results indicate that certain noninterest income financial statement line items, including service charges on deposit accounts, card fees, other charges and fees, investment banking income, trust and investment management income, retail investment services, commercial real estate related income, and other noninterest income, contain revenue streams that are within the scope of these updates. Additionally, the Company's analyses indicate that there will be changes to the presentation of certain types of revenue and expenses within investment banking income, such as underwriting revenue and expenses, which will be shown gross pursuant to the new requirements. The Company is in the process of developing additional quantitative and qualitative disclosures that will be required upon adoption of these ASUs. The Company plans to adopt these standards beginning January 1, 2018 and expects to use the modified retrospective method of adoption. The Company does not expect these ASUs to have a material impact on its Consolidated Financial Statements and related disclosures. |
Standard | Description | Required Date of Adoption | Effect on the Financial Statements or Other Significant Matters |
Standard(s) Not Yet Adopted (continued) | |||
ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | The ASU amends ASC Topic 350, Intangibles - Goodwill and Other, to simplify the subsequent measurement of goodwill, by eliminating Step 2 from the goodwill impairment test. The amendments require an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. Entities should recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, but the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU must be applied on a prospective basis. | January 1, 2020 Early adoption is permitted. | Based on the Company's most recent annual goodwill impairment test performed as of October 1, 2016, there were no reporting units for which the carrying amount of the reporting unit exceeded its fair value; therefore, this ASU would not currently have an impact on the Company's Consolidated Financial Statements and related disclosures. However, if upon adoption the carrying amount of a reporting unit exceeds its fair value, the Company would be impacted by the amount of impairment recognized. |
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities | The ASU amends ASC Topic 815, Derivatives and Hedging, to simplify the requirements for hedge accounting. Key amendments include: eliminating the requirement to separately measure and report hedge ineffectiveness, requiring changes in the value of the hedging instrument to be presented in the same income statement line as the earnings effect of the hedged item, and the ability to measure the hedged item based on the benchmark interest rate component of the total contractual coupon for fair value hedges. New incremental disclosures are also required for reporting periods subsequent to the date of adoption. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption using a modified retrospective approach. | January 1, 2019 Early adoption is permitted. | The Company is evaluating the significance and other effects that this ASU will have on its Consolidated Financial Statements and related disclosures; however, the quantitative impact has not yet been determined. |
|
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Fed funds sold | $— | $58 | |||||
Securities borrowed | 371 | 270 | |||||
Securities purchased under agreements to resell | 811 | 979 | |||||
Total Fed funds sold and securities borrowed or purchased under agreements to resell | $1,182 | $1,307 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
(Dollars in millions) | Overnight and Continuous | Up to 30 days | 30-90 days | Total | Overnight and Continuous | Up to 30 days | 30-90 days | Total | |||||||||||||||||||||||
U.S. Treasury securities | $32 | $— | $— | $32 | $27 | $— | $— | $27 | |||||||||||||||||||||||
Federal agency securities | 58 | 25 | — | 83 | 288 | 24 | — | 312 | |||||||||||||||||||||||
MBS - agency | 738 | 94 | — | 832 | 793 | 51 | — | 844 | |||||||||||||||||||||||
CP | 68 | — | — | 68 | 49 | — | — | 49 | |||||||||||||||||||||||
Corporate and other debt securities | 292 | 75 | 40 | 407 | 311 | 50 | 40 | 401 | |||||||||||||||||||||||
Total securities sold under agreements to repurchase | $1,188 | $194 | $40 | $1,422 | $1,468 | $125 | $40 | $1,633 |
(Dollars in millions) | Gross Amount | Amount Offset | Net Amount Presented in Consolidated Balance Sheets | Held/Pledged Financial Instruments | Net Amount | ||||||||||||||
September 30, 2017 | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Securities borrowed or purchased under agreements to resell | $1,182 | $— | $1,182 | 1 | $1,165 | $17 | |||||||||||||
Financial liabilities: | |||||||||||||||||||
Securities sold under agreements to repurchase | 1,422 | — | 1,422 | 1,422 | — | ||||||||||||||
December 31, 2016 | |||||||||||||||||||
Financial assets: | |||||||||||||||||||
Securities borrowed or purchased under agreements to resell | $1,249 | $— | $1,249 | 1 | $1,241 | $8 | |||||||||||||
Financial liabilities: | |||||||||||||||||||
Securities sold under agreements to repurchase | 1,633 | — | 1,633 | 1,633 | — |
|
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Trading Assets and Derivative Instruments: | |||||||
U.S. Treasury securities | $366 | $539 | |||||
Federal agency securities | 303 | 480 | |||||
U.S. states and political subdivisions | 53 | 134 | |||||
MBS - agency | 666 | 567 | |||||
CLO securities | — | 1 | |||||
Corporate and other debt securities | 665 | 656 | |||||
CP | 383 | 140 | |||||
Equity securities | 30 | 49 | |||||
Derivative instruments 1 | 898 | 984 | |||||
Trading loans 2 | 2,954 | 2,517 | |||||
Total trading assets and derivative instruments | $6,318 | $6,067 | |||||
Trading Liabilities and Derivative Instruments: | |||||||
U.S. Treasury securities | $555 | $697 | |||||
MBS - agency | — | 1 | |||||
Corporate and other debt securities | 347 | 255 | |||||
Equity securities | 5 | — | |||||
Derivative instruments 1 | 377 | 398 | |||||
Total trading liabilities and derivative instruments | $1,284 | $1,351 |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Pledged trading assets to secure repurchase agreements 1 | $756 | $968 | |||||
Pledged trading assets to secure certain derivative agreements | 291 | 471 | |||||
Pledged trading assets to secure other arrangements | 51 | 40 |
|
September 30, 2017 | |||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
U.S. Treasury securities | $4,300 | $9 | $48 | $4,261 | |||||||||||
Federal agency securities | 266 | 5 | 1 | 270 | |||||||||||
U.S. states and political subdivisions | 558 | 9 | 4 | 563 | |||||||||||
MBS - agency | 24,860 | 287 | 167 | 24,980 | |||||||||||
MBS - non-agency residential | 59 | 4 | 1 | 62 | |||||||||||
MBS - non-agency commercial | 747 | 6 | 3 | 750 | |||||||||||
ABS | 6 | 2 | — | 8 | |||||||||||
Corporate and other debt securities | 33 | — | — | 33 | |||||||||||
Other equity securities 1 | 518 | 1 | 2 | 517 | |||||||||||
Total securities AFS | $31,347 | $323 | $226 | $31,444 | |||||||||||
December 31, 2016 | |||||||||||||||
(Dollars in millions) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
U.S. Treasury securities | $5,486 | $5 | $86 | $5,405 | |||||||||||
Federal agency securities | 310 | 5 | 2 | 313 | |||||||||||
U.S. states and political subdivisions | 279 | 5 | 5 | 279 | |||||||||||
MBS - agency | 23,642 | 313 | 293 | 23,662 | |||||||||||
MBS - non-agency residential | 71 | 3 | — | 74 | |||||||||||
MBS - non-agency commercial | 257 | — | 5 | 252 | |||||||||||
ABS | 8 | 2 | — | 10 | |||||||||||
Corporate and other debt securities | 34 | 1 | — | 35 | |||||||||||
Other equity securities 1 | 642 | 1 | 1 | 642 | |||||||||||
Total securities AFS | $30,729 | $335 | $392 | $30,672 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Taxable interest | $187 | $154 | $551 | $470 | |||||||||||
Tax-exempt interest | 4 | 2 | 9 | 4 | |||||||||||
Dividends | 4 | 3 | 13 | 9 | |||||||||||
Total interest and dividends on securities AFS | $195 | $159 | $573 | $483 |
Distribution of Remaining Maturities | |||||||||||||||||||
(Dollars in millions) | Due in 1 Year or Less | Due After 1 Year through 5 Years | Due After 5 Years through 10 Years | Due After 10 Years | Total | ||||||||||||||
Amortized Cost: | |||||||||||||||||||
U.S. Treasury securities | $— | $2,002 | $2,298 | $— | $4,300 | ||||||||||||||
Federal agency securities | 126 | 46 | 4 | 90 | 266 | ||||||||||||||
U.S. states and political subdivisions | 6 | 46 | 179 | 327 | 558 | ||||||||||||||
MBS - agency | 1,475 | 9,092 | 13,785 | 508 | 24,860 | ||||||||||||||
MBS - non-agency residential | — | 59 | — | — | 59 | ||||||||||||||
MBS - non-agency commercial | 5 | 12 | 730 | — | 747 | ||||||||||||||
ABS | — | 6 | — | — | 6 | ||||||||||||||
Corporate and other debt securities | 23 | 10 | — | — | 33 | ||||||||||||||
Total debt securities AFS | $1,635 | $11,273 | $16,996 | $925 | $30,829 | ||||||||||||||
Fair Value: | |||||||||||||||||||
U.S. Treasury securities | $— | $1,996 | $2,265 | $— | $4,261 | ||||||||||||||
Federal agency securities | 129 | 47 | 4 | 90 | 270 | ||||||||||||||
U.S. states and political subdivisions | 6 | 48 | 185 | 324 | 563 | ||||||||||||||
MBS - agency | 1,544 | 9,199 | 13,730 | 507 | 24,980 | ||||||||||||||
MBS - non-agency residential | — | 62 | — | — | 62 | ||||||||||||||
MBS - non-agency commercial | 5 | 12 | 733 | — | 750 | ||||||||||||||
ABS | — | 8 | — | — | 8 | ||||||||||||||
Corporate and other debt securities | 23 | 10 | — | — | 33 | ||||||||||||||
Total debt securities AFS | $1,707 | $11,382 | $16,917 | $921 | $30,927 | ||||||||||||||
Weighted average yield 1 | 3.51 | % | 2.35 | % | 2.67 | % | 3.15 | % | 2.62 | % |
September 30, 2017 | |||||||||||||||||||||||
Less than twelve months | Twelve months or longer | Total | |||||||||||||||||||||
(Dollars in millions) | Fair Value | Unrealized Losses 2 | Fair Value | Unrealized Losses 2 | Fair Value | Unrealized Losses 2 | |||||||||||||||||
Temporarily impaired securities AFS: | |||||||||||||||||||||||
U.S. Treasury securities | $1,092 | $9 | $1,382 | $39 | $2,474 | $48 | |||||||||||||||||
Federal agency securities | 43 | — | 33 | 1 | 76 | 1 | |||||||||||||||||
U.S. states and political subdivisions | 178 | 1 | 119 | 3 | 297 | 4 | |||||||||||||||||
MBS - agency | 9,571 | 92 | 2,709 | 75 | 12,280 | 167 | |||||||||||||||||
MBS - non-agency commercial | 207 | 2 | 47 | 1 | 254 | 3 | |||||||||||||||||
ABS | — | — | 5 | — | 5 | — | |||||||||||||||||
Corporate and other debt securities | 10 | — | — | — | 10 | — | |||||||||||||||||
Other equity securities | — | — | 3 | 2 | 3 | 2 | |||||||||||||||||
Total temporarily impaired securities AFS | 11,101 | 104 | 4,298 | 121 | 15,399 | 225 | |||||||||||||||||
OTTI securities AFS 1: | |||||||||||||||||||||||
MBS - non-agency residential | 14 | 1 | — | — | 14 | 1 | |||||||||||||||||
ABS | — | — | 1 | — | 1 | — | |||||||||||||||||
Total OTTI securities AFS | 14 | 1 | 1 | — | 15 | 1 | |||||||||||||||||
Total impaired securities AFS | $11,115 | $105 | $4,299 | $121 | $15,414 | $226 |
December 31, 2016 | |||||||||||||||||||||||
Less than twelve months | Twelve months or longer | Total | |||||||||||||||||||||
(Dollars in millions) | Fair Value | Unrealized Losses 2 | Fair Value | Unrealized Losses 2 | Fair Value | Unrealized Losses 2 | |||||||||||||||||
Temporarily impaired securities AFS: | |||||||||||||||||||||||
U.S. Treasury securities | $4,380 | $86 | $— | $— | $4,380 | $86 | |||||||||||||||||
Federal agency securities | 96 | 2 | 3 | — | 99 | 2 | |||||||||||||||||
U.S. states and political subdivisions | 149 | 5 | — | — | 149 | 5 | |||||||||||||||||
MBS - agency | 14,622 | 285 | 451 | 8 | 15,073 | 293 | |||||||||||||||||
MBS - non-agency commercial | 184 | 5 | — | — | 184 | 5 | |||||||||||||||||
ABS | — | — | 5 | — | 5 | — | |||||||||||||||||
Corporate and other debt securities | 12 | — | — | — | 12 | — | |||||||||||||||||
Other equity securities | — | — | 4 | 1 | 4 | 1 | |||||||||||||||||
Total temporarily impaired securities AFS | 19,443 | 383 | 463 | 9 | 19,906 | 392 | |||||||||||||||||
OTTI securities AFS 1: | |||||||||||||||||||||||
MBS - non-agency residential | 16 | — | — | — | 16 | — | |||||||||||||||||
ABS | — | — | 1 | — | 1 | — | |||||||||||||||||
Total OTTI securities AFS | 16 | — | 1 | — | 17 | — | |||||||||||||||||
Total impaired securities AFS | $19,459 | $383 | $464 | $9 | $19,923 | $392 |
|
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Commercial loans: | |||||||
C&I 1 | $67,758 | $69,213 | |||||
CRE | 5,238 | 4,996 | |||||
Commercial construction | 3,964 | 4,015 | |||||
Total commercial loans | 76,960 | 78,224 | |||||
Residential loans: | |||||||
Residential mortgages - guaranteed | 497 | 537 | |||||
Residential mortgages - nonguaranteed 2 | 27,041 | 26,137 | |||||
Residential home equity products | 10,865 | 11,912 | |||||
Residential construction | 327 | 404 | |||||
Total residential loans | 38,730 | 38,990 | |||||
Consumer loans: | |||||||
Guaranteed student | 6,559 | 6,167 | |||||
Other direct | 8,597 | 7,771 | |||||
Indirect | 11,952 | 10,736 | |||||
Credit cards | 1,466 | 1,410 | |||||
Total consumer loans | 28,574 | 26,084 | |||||
LHFI | $144,264 | $143,298 | |||||
LHFS 3 | $2,835 | $4,169 |
Commercial Loans | |||||||||||||||||||||||
C&I | CRE | Commercial Construction | |||||||||||||||||||||
(Dollars in millions) | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Risk rating: | |||||||||||||||||||||||
Pass | $65,768 | $66,961 | $4,933 | $4,574 | $3,882 | $3,914 | |||||||||||||||||
Criticized accruing | 1,698 | 1,862 | 300 | 415 | 81 | 84 | |||||||||||||||||
Criticized nonaccruing | 292 | 390 | 5 | 7 | 1 | 17 | |||||||||||||||||
Total | $67,758 | $69,213 | $5,238 | $4,996 | $3,964 | $4,015 |
Residential Loans 1 | |||||||||||||||||||||||
Residential Mortgages - Nonguaranteed | Residential Home Equity Products | Residential Construction | |||||||||||||||||||||
(Dollars in millions) | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Current FICO score range: | |||||||||||||||||||||||
700 and above | $23,444 | $22,194 | $9,067 | $9,826 | $274 | $292 | |||||||||||||||||
620 - 699 | 2,769 | 3,042 | 1,334 | 1,540 | 43 | 96 | |||||||||||||||||
Below 620 2 | 828 | 901 | 464 | 546 | 10 | 16 | |||||||||||||||||
Total | $27,041 | $26,137 | $10,865 | $11,912 | $327 | $404 |
Consumer Loans 3 | |||||||||||||||||||||||
Other Direct | Indirect | Credit Cards | |||||||||||||||||||||
(Dollars in millions) | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Current FICO score range: | |||||||||||||||||||||||
700 and above | $7,778 | $7,008 | $8,907 | $7,642 | $1,000 | $974 | |||||||||||||||||
620 - 699 | 783 | 703 | 2,339 | 2,381 | 370 | 351 | |||||||||||||||||
Below 620 2 | 36 | 60 | 706 | 713 | 96 | 85 | |||||||||||||||||
Total | $8,597 | $7,771 | $11,952 | $10,736 | $1,466 | $1,410 |
September 30, 2017 | |||||||||||||||||||
(Dollars in millions) | Accruing Current | Accruing 30-89 Days Past Due | Accruing 90+ Days Past Due | Nonaccruing 2 | Total | ||||||||||||||
Commercial loans: | |||||||||||||||||||
C&I | $67,396 | $55 | $15 | $292 | $67,758 | ||||||||||||||
CRE | 5,231 | 1 | 1 | 5 | 5,238 | ||||||||||||||
Commercial construction | 3,963 | — | — | 1 | 3,964 | ||||||||||||||
Total commercial loans | 76,590 | 56 | 16 | 298 | 76,960 | ||||||||||||||
Residential loans: | |||||||||||||||||||
Residential mortgages - guaranteed | 161 | 50 | 286 | — | 497 | ||||||||||||||
Residential mortgages - nonguaranteed 1 | 26,802 | 73 | 5 | 161 | 27,041 | ||||||||||||||
Residential home equity products | 10,559 | 92 | — | 214 | 10,865 | ||||||||||||||
Residential construction | 315 | 1 | — | 11 | 327 | ||||||||||||||
Total residential loans | 37,837 | 216 | 291 | 386 | 38,730 | ||||||||||||||
Consumer loans: | |||||||||||||||||||
Guaranteed student | 4,974 | 567 | 1,018 | — | 6,559 | ||||||||||||||
Other direct | 8,547 | 38 | 6 | 6 | 8,597 | ||||||||||||||
Indirect | 11,815 | 130 | — | 7 | 11,952 | ||||||||||||||
Credit cards | 1,441 | 13 | 12 | — | 1,466 | ||||||||||||||
Total consumer loans | 26,777 | 748 | 1,036 | 13 | 28,574 | ||||||||||||||
Total LHFI | $141,204 | $1,020 | $1,343 | $697 | $144,264 |
December 31, 2016 | |||||||||||||||||||
(Dollars in millions) | Accruing Current | Accruing 30-89 Days Past Due | Accruing 90+ Days Past Due | Nonaccruing 2 | Total | ||||||||||||||
Commercial loans: | |||||||||||||||||||
C&I | $68,776 | $35 | $12 | $390 | $69,213 | ||||||||||||||
CRE | 4,988 | 1 | — | 7 | 4,996 | ||||||||||||||
Commercial construction | 3,998 | — | — | 17 | 4,015 | ||||||||||||||
Total commercial loans | 77,762 | 36 | 12 | 414 | 78,224 | ||||||||||||||
Residential loans: | |||||||||||||||||||
Residential mortgages - guaranteed | 155 | 55 | 327 | — | 537 | ||||||||||||||
Residential mortgages - nonguaranteed 1 | 25,869 | 84 | 7 | 177 | 26,137 | ||||||||||||||
Residential home equity products | 11,596 | 81 | — | 235 | 11,912 | ||||||||||||||
Residential construction | 389 | 3 | — | 12 | 404 | ||||||||||||||
Total residential loans | 38,009 | 223 | 334 | 424 | 38,990 | ||||||||||||||
Consumer loans: | |||||||||||||||||||
Guaranteed student | 4,637 | 603 | 927 | — | 6,167 | ||||||||||||||
Other direct | 7,726 | 35 | 4 | 6 | 7,771 | ||||||||||||||
Indirect | 10,608 | 126 | 1 | 1 | 10,736 | ||||||||||||||
Credit cards | 1,388 | 12 | 10 | — | 1,410 | ||||||||||||||
Total consumer loans | 24,359 | 776 | 942 | 7 | 26,084 | ||||||||||||||
Total LHFI | $140,130 | $1,035 | $1,288 | $845 | $143,298 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Amortized Cost 1 | Related ALLL | Unpaid Principal Balance | Amortized Cost 1 | Related ALLL | |||||||||||||||||
Impaired LHFI with no ALLL recorded: | |||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||
C&I | $79 | $72 | $— | $266 | $214 | $— | |||||||||||||||||
Total commercial loans | 79 | 72 | — | 266 | 214 | — | |||||||||||||||||
Residential loans: | |||||||||||||||||||||||
Residential mortgages - nonguaranteed | 461 | 365 | — | 466 | 360 | — | |||||||||||||||||
Residential construction | 16 | 9 | — | 16 | 8 | — | |||||||||||||||||
Total residential loans | 477 | 374 | — | 482 | 368 | — | |||||||||||||||||
Impaired LHFI with an ALLL recorded: | |||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||
C&I | 171 | 153 | 30 | 225 | 151 | 31 | |||||||||||||||||
CRE | — | — | — | 26 | 17 | 2 | |||||||||||||||||
Total commercial loans | 171 | 153 | 30 | 251 | 168 | 33 | |||||||||||||||||
Residential loans: | |||||||||||||||||||||||
Residential mortgages - nonguaranteed | 1,161 | 1,132 | 124 | 1,277 | 1,248 | 150 | |||||||||||||||||
Residential home equity products | 945 | 885 | 55 | 863 | 795 | 54 | |||||||||||||||||
Residential construction | 97 | 96 | 8 | 109 | 107 | 11 | |||||||||||||||||
Total residential loans | 2,203 | 2,113 | 187 | 2,249 | 2,150 | 215 | |||||||||||||||||
Consumer loans: | |||||||||||||||||||||||
Other direct | 59 | 59 | 1 | 59 | 59 | 1 | |||||||||||||||||
Indirect | 118 | 117 | 7 | 103 | 103 | 5 | |||||||||||||||||
Credit cards | 25 | 6 | 1 | 24 | 6 | 1 | |||||||||||||||||
Total consumer loans | 202 | 182 | 9 | 186 | 168 | 7 | |||||||||||||||||
Total impaired LHFI | $3,132 | $2,894 | $226 | $3,434 | $3,068 | $255 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
(Dollars in millions) | Average Amortized Cost | Interest Income Recognized1 | Average Amortized Cost | Interest Income Recognized1 | Average Amortized Cost | Interest Income Recognized1 | Average Amortized Cost | Interest Income Recognized1 | |||||||||||||||||||||||
Impaired LHFI with no ALLL recorded: | |||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||
C&I | $70 | $— | $268 | $1 | $81 | $— | $200 | $1 | |||||||||||||||||||||||
Total commercial loans | 70 | — | 268 | 1 | 81 | — | 200 | 1 | |||||||||||||||||||||||
Residential loans: | |||||||||||||||||||||||||||||||
Residential mortgages - nonguaranteed | 364 | 4 | 364 | 4 | 361 | 11 | 368 | 12 | |||||||||||||||||||||||
Residential construction | 9 | — | 8 | — | 9 | — | 8 | — | |||||||||||||||||||||||
Total residential loans | 373 | 4 | 372 | 4 | 370 | 11 | 376 | 12 | |||||||||||||||||||||||
Impaired LHFI with an ALLL recorded: | |||||||||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||
C&I | 150 | — | 188 | — | 145 | 2 | 185 | 1 | |||||||||||||||||||||||
Total commercial loans | 150 | — | 188 | — | 145 | 2 | 185 | 1 | |||||||||||||||||||||||
Residential loans: | |||||||||||||||||||||||||||||||
Residential mortgages - nonguaranteed | 1,135 | 14 | 1,288 | 15 | 1,146 | 45 | 1,292 | 48 | |||||||||||||||||||||||
Residential home equity products | 890 | 8 | 771 | 7 | 901 | 24 | 780 | 22 | |||||||||||||||||||||||
Residential construction | 96 | 2 | 112 | 1 | 98 | 4 | 114 | 4 | |||||||||||||||||||||||
Total residential loans | 2,121 | 24 | 2,171 | 23 | 2,145 | 73 | 2,186 | 74 | |||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||
Other direct | 58 | 1 | 10 | — | 59 | 3 | 11 | — | |||||||||||||||||||||||
Indirect | 120 | 2 | 109 | 1 | 128 | 4 | 115 | 4 | |||||||||||||||||||||||
Credit cards | 6 | — | 6 | — | 6 | 1 | 6 | — | |||||||||||||||||||||||
Total consumer loans | 184 | 3 | 125 | 1 | 193 | 8 | 132 | 4 | |||||||||||||||||||||||
Total impaired LHFI | $2,898 | $31 | $3,124 | $29 | $2,934 | $94 | $3,079 | $92 |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Nonaccrual/NPLs: | |||||||
Commercial loans: | |||||||
C&I | $292 | $390 | |||||
CRE | 5 | 7 | |||||
Commercial construction | 1 | 17 | |||||
Residential loans: | |||||||
Residential mortgages - nonguaranteed | 161 | 177 | |||||
Residential home equity products | 214 | 235 | |||||
Residential construction | 11 | 12 | |||||
Consumer loans: | |||||||
Other direct | 6 | 6 | |||||
Indirect | 7 | 1 | |||||
Total nonaccrual/NPLs 1 | 697 | 845 | |||||
OREO 2 | 57 | 60 | |||||
Other repossessed assets | 7 | 14 | |||||
Nonperforming LHFS | 31 | — | |||||
Total NPAs | $792 | $919 |
Three Months Ended September 30, 2017 1 | ||||||||||||||
(Dollars in millions) | Number of Loans Modified | Rate Modification | Term Extension and/or Other Concessions | Total | ||||||||||
Commercial loans: | ||||||||||||||
C&I | 76 | $2 | $7 | $9 | ||||||||||
Residential loans: | ||||||||||||||
Residential mortgages - nonguaranteed | 41 | 6 | 4 | 10 | ||||||||||
Residential home equity products | 696 | 18 | 45 | 63 | ||||||||||
Consumer loans: | ||||||||||||||
Other direct | 135 | — | 2 | 2 | ||||||||||
Indirect | 738 | — | 17 | 17 | ||||||||||
Credit cards | 182 | 1 | — | 1 | ||||||||||
Total TDR additions | 1,868 | $27 | $75 | $102 |
Nine Months Ended September 30, 2017 1 | ||||||||||||||
(Dollars in millions) | Number of Loans Modified | Rate Modification | Term Extension and/or Other Concessions | Total | ||||||||||
Commercial loans: | ||||||||||||||
C&I | 136 | $2 | $86 | $88 | ||||||||||
Residential loans: | ||||||||||||||
Residential mortgages - nonguaranteed | 119 | 17 | 8 | 25 | ||||||||||
Residential home equity products | 1,971 | 18 | 172 | 190 | ||||||||||
Consumer loans: | ||||||||||||||
Other direct | 425 | — | 6 | 6 | ||||||||||
Indirect | 2,034 | — | 50 | 50 | ||||||||||
Credit cards | 615 | 3 | — | 3 | ||||||||||
Total TDR additions | 5,300 | $40 | $322 | $362 |
Three Months Ended September 30, 2016 1 | ||||||||||||||
(Dollars in millions) | Number of Loans Modified | Rate Modification | Term Extension and/or Other Concessions | Total | ||||||||||
Commercial loans: | ||||||||||||||
C&I | 19 | $— | $49 | $49 | ||||||||||
Residential loans: | ||||||||||||||
Residential mortgages - nonguaranteed | 102 | 22 | 3 | 25 | ||||||||||
Residential home equity products | 569 | — | 55 | 55 | ||||||||||
Consumer loans: | ||||||||||||||
Other direct | 2 | — | — | — | ||||||||||
Indirect | 351 | — | 9 | 9 | ||||||||||
Credit cards | 149 | 1 | — | 1 | ||||||||||
Total TDR additions | 1,192 | $23 | $116 | $139 |
Nine Months Ended September 30, 2016 1 | ||||||||||||||
(Dollars in millions) | Number of Loans Modified | Rate Modification | Term Extension and/or Other Concessions | Total | ||||||||||
Commercial loans: | ||||||||||||||
C&I | 48 | $— | $95 | $95 | ||||||||||
Commercial construction | 1 | — | — | — | ||||||||||
Residential loans: | ||||||||||||||
Residential mortgages - nonguaranteed | 339 | 80 | 11 | 91 | ||||||||||
Residential home equity products | 2,030 | 9 | 182 | 191 | ||||||||||
Consumer loans: | ||||||||||||||
Other direct | 34 | — | 1 | 1 | ||||||||||
Indirect | 1,217 | — | 30 | 30 | ||||||||||
Credit cards | 501 | 2 | — | 2 | ||||||||||
Total TDR additions | 4,170 | $91 | $319 | $410 |
|
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Balance, beginning of period | $1,803 | $1,840 | $1,776 | $1,815 | |||||||||||
Provision for loan losses | 119 | 95 | 324 | 338 | |||||||||||
Provision for unfunded commitments | 1 | 2 | 6 | 5 | |||||||||||
Loan charge-offs | (109 | ) | (150 | ) | (357 | ) | (428 | ) | |||||||
Loan recoveries | 31 | 24 | 96 | 81 | |||||||||||
Balance, end of period | $1,845 | $1,811 | $1,845 | $1,811 | |||||||||||
Components: | |||||||||||||||
ALLL | $1,772 | $1,743 | |||||||||||||
Unfunded commitments reserve 1 | 73 | 68 | |||||||||||||
Allowance for credit losses | $1,845 | $1,811 |
Three Months Ended September 30, 2017 | |||||||||||||||
(Dollars in millions) | Commercial | Residential | Consumer | Total | |||||||||||
Balance, beginning of period | $1,140 | $337 | $254 | $1,731 | |||||||||||
Provision for loan losses | 5 | 29 | 85 | 119 | |||||||||||
Loan charge-offs | (33 | ) | (23 | ) | (53 | ) | (109 | ) | |||||||
Loan recoveries | 11 | 8 | 12 | 31 | |||||||||||
Balance, end of period | $1,123 | $351 | $298 | $1,772 | |||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||
(Dollars in millions) | Commercial | Residential | Consumer | Total | |||||||||||
Balance, beginning of period | $1,147 | $439 | $188 | $1,774 | |||||||||||
Provision/(benefit) for loan losses | 81 | (36 | ) | 50 | 95 | ||||||||||
Loan charge-offs | (78 | ) | (28 | ) | (44 | ) | (150 | ) | |||||||
Loan recoveries | 7 | 7 | 10 | 24 | |||||||||||
Balance, end of period | $1,157 | $382 | $204 | $1,743 | |||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||
(Dollars in millions) | Commercial | Residential | Consumer | Total | |||||||||||
Balance, beginning of period | $1,124 | $369 | $216 | $1,709 | |||||||||||
Provision for loan losses | 89 | 33 | 202 | 324 | |||||||||||
Loan charge-offs | (122 | ) | (78 | ) | (157 | ) | (357 | ) | |||||||
Loan recoveries | 32 | 27 | 37 | 96 | |||||||||||
Balance, end of period | $1,123 | $351 | $298 | $1,772 | |||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||
(Dollars in millions) | Commercial | Residential | Consumer | Total | |||||||||||
Balance, beginning of period | $1,047 | $534 | $171 | $1,752 | |||||||||||
Provision/(benefit) for loan losses | 293 | (72 | ) | 117 | 338 | ||||||||||
Loan charge-offs | (209 | ) | (102 | ) | (117 | ) | (428 | ) | |||||||
Loan recoveries | 26 | 22 | 33 | 81 | |||||||||||
Balance, end of period | $1,157 | $382 | $204 | $1,743 |
September 30, 2017 | |||||||||||||||||||||||||||||||
Commercial | Residential | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in millions) | Carrying Value | Related ALLL | Carrying Value | Related ALLL | Carrying Value | Related ALLL | Carrying Value | Related ALLL | |||||||||||||||||||||||
LHFI evaluated for impairment: | |||||||||||||||||||||||||||||||
Individually evaluated | $225 | $30 | $2,487 | $187 | $182 | $9 | $2,894 | $226 | |||||||||||||||||||||||
Collectively evaluated | 76,735 | 1,093 | 36,037 | 164 | 28,392 | 289 | 141,164 | 1,546 | |||||||||||||||||||||||
Total evaluated | 76,960 | 1,123 | 38,524 | 351 | 28,574 | 298 | 144,058 | 1,772 | |||||||||||||||||||||||
LHFI measured at fair value | — | — | 206 | — | — | — | 206 | — | |||||||||||||||||||||||
Total LHFI | $76,960 | $1,123 | $38,730 | $351 | $28,574 | $298 | $144,264 | $1,772 |
December 31, 2016 | |||||||||||||||||||||||||||||||
Commercial | Residential | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in millions) | Carrying Value | Related ALLL | Carrying Value | Related ALLL | Carrying Value | Related ALLL | Carrying Value | Related ALLL | |||||||||||||||||||||||
LHFI evaluated for impairment: | |||||||||||||||||||||||||||||||
Individually evaluated | $382 | $33 | $2,518 | $215 | $168 | $7 | $3,068 | $255 | |||||||||||||||||||||||
Collectively evaluated | 77,842 | 1,091 | 36,250 | 154 | 25,916 | 209 | 140,008 | 1,454 | |||||||||||||||||||||||
Total evaluated | 78,224 | 1,124 | 38,768 | 369 | 26,084 | 216 | 143,076 | 1,709 | |||||||||||||||||||||||
LHFI measured at fair value | — | — | 222 | — | — | — | 222 | — | |||||||||||||||||||||||
Total LHFI | $78,224 | $1,124 | $38,990 | $369 | $26,084 | $216 | $143,298 | $1,709 |
|
(Dollars in millions) | Consumer | Wholesale | Total | ||||||||
Balance, January 1, 2017 | $4,262 | $2,075 | $6,337 | ||||||||
Measurement period adjustment related to the acquisition of Pillar | — | 1 | 1 | ||||||||
Balance, September 30, 2017 | $4,262 | $2,076 | $6,338 |
(Dollars in millions) | Residential MSRs - Fair Value | Other | Total | ||||||||
Balance, January 1, 2017 | $1,572 | $85 | $1,657 | ||||||||
Amortization 1 | — | (16 | ) | (16 | ) | ||||||
Servicing rights originated | 252 | 10 | 262 | ||||||||
Changes in fair value: | |||||||||||
Due to changes in inputs and assumptions 2 | (27 | ) | — | (27 | ) | ||||||
Other changes in fair value 3 | (168 | ) | — | (168 | ) | ||||||
Servicing rights sold | (1 | ) | — | (1 | ) | ||||||
Other 4 | — | (1 | ) | (1 | ) | ||||||
Balance, September 30, 2017 | $1,628 | $78 | $1,706 | ||||||||
Balance, January 1, 2016 | $1,307 | $18 | $1,325 | ||||||||
Amortization 1 | — | (6 | ) | (6 | ) | ||||||
Servicing rights originated | 198 | — | 198 | ||||||||
Servicing rights purchased | 104 | — | 104 | ||||||||
Changes in fair value: | |||||||||||
Due to changes in inputs and assumptions 2 | (328 | ) | — | (328 | ) | ||||||
Other changes in fair value 3 | (160 | ) | — | (160 | ) | ||||||
Servicing rights sold | (2 | ) | — | (2 | ) | ||||||
Balance, September 30, 2016 | $1,119 | $12 | $1,131 |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Fair value of residential MSRs | $1,628 | $1,572 | |||||
Prepayment rate assumption (annual) | 13 | % | 9 | % | |||
Decline in fair value from 10% adverse change | $91 | $50 | |||||
Decline in fair value from 20% adverse change | 167 | 97 | |||||
Option adjusted spread (annual) | 4 | % | 8 | % | |||
Decline in fair value from 10% adverse change | $41 | $63 | |||||
Decline in fair value from 20% adverse change | 80 | 122 | |||||
Weighted-average life (in years) | 5.2 | 7.0 | |||||
Weighted-average coupon | 4.0 | % | 4.0 | % |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Fair value of commercial mortgage servicing rights | $69 | $62 | |||||
Discount rate (annual) | 12 | % | 12 | % | |||
Prepayment rate assumption (annual) | 7 | 6 | |||||
Float earnings rate (annual) | 1.0 | 0.5 | |||||
Weighted-average life (in years) | 7.1 | 7.0 |
|
Portfolio Balance | Past Due and Nonaccrual | Net Charge-offs | ||||||||||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||||||
LHFI portfolio: | ||||||||||||||||||||||||||||||||
Commercial | $76,960 | $78,224 | $314 | $426 | $22 | $71 | $90 | $183 | ||||||||||||||||||||||||
Residential | 38,730 | 38,990 | 677 | 758 | 15 | 21 | 51 | 80 | ||||||||||||||||||||||||
Consumer | 28,574 | 26,084 | 1,049 | 949 | 41 | 34 | 120 | 84 | ||||||||||||||||||||||||
Total LHFI portfolio | 144,264 | 143,298 | 2,040 | 2,133 | 78 | 126 | 261 | 347 | ||||||||||||||||||||||||
Managed securitized loans 1: | ||||||||||||||||||||||||||||||||
Commercial 2 | 5,385 | 4,761 | — | — | — | — | — | — | ||||||||||||||||||||||||
Residential | 133,052 | 126,641 | 96 | 114 | 2 | 3 | 2 | 3 | 5 | 3 | 6 | 3 | ||||||||||||||||||||
Consumer | 337 | 512 | — | 1 | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||
Total managed securitized loans | 138,774 | 131,914 | 96 | 115 | 3 | 3 | 7 | 8 | ||||||||||||||||||||||||
Managed unsecuritized loans 4 | 2,359 | 2,985 | 351 | 438 | — | — | — | — | ||||||||||||||||||||||||
Total managed loans | $285,397 | $278,197 | $2,487 | $2,686 | $81 | $129 | $268 | $355 |
|
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
RSUs | $14 | $13 | $64 | $44 | |||||||||||
Phantom stock units 1 | 17 | 16 | 57 | 39 | |||||||||||
Restricted stock | — | — | — | 2 | |||||||||||
Total stock-based compensation expense | $31 | $29 | $121 | $85 | |||||||||||
Stock-based compensation tax benefit 2 | $12 | $11 | $46 | $32 |
Pension Benefits 1 | Other Postretirement Benefits | ||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||
Service cost | $1 | $1 | $4 | $4 | $— | $— | $— | $— | |||||||||||||||||||||||
Interest cost | 24 | 24 | 71 | 73 | — | — | 1 | 1 | |||||||||||||||||||||||
Expected return on plan assets | (49 | ) | (46 | ) | (146 | ) | (140 | ) | (1 | ) | (1 | ) | (4 | ) | (3 | ) | |||||||||||||||
Amortization of prior service credit | — | — | — | — | (1 | ) | (1 | ) | (4 | ) | (4 | ) | |||||||||||||||||||
Amortization of actuarial loss | 6 | 6 | 18 | 19 | — | — | — | — | |||||||||||||||||||||||
Net periodic benefit | ($18 | ) | ($15 | ) | ($53 | ) | ($44 | ) | ($2 | ) | ($2 | ) | ($7 | ) | ($6 | ) |
|
Nine Months Ended September 30 | |||||||
(Dollars in millions) | 2017 | 2016 | |||||
Pending repurchase requests, beginning of period | $14 | $17 | |||||
Repurchase requests received | 29 | 30 | |||||
Repurchase requests resolved: | |||||||
Repurchased | (11 | ) | (15 | ) | |||
Cured | (23 | ) | (23 | ) | |||
Total resolved | (34 | ) | (38 | ) | |||
Pending repurchase requests, end of period 1 | $9 | $9 | |||||
Percent from non-agency investors: | |||||||
Pending repurchase requests, end of period | 1.5 | % | 49.9 | % | |||
Repurchase requests received | 3.3 | — |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Balance, beginning of period | $40 | $51 | $40 | $57 | |||||||||||
Repurchase provision/(benefit) | — | (3 | ) | — | (9 | ) | |||||||||
Charge-offs, net of recoveries | (1 | ) | — | (1 | ) | — | |||||||||
Balance, end of period | $39 | $48 | $39 | $48 |
(Dollars in millions) | September 30, 2017 | December 31, 2016 | |||||
Outstanding repurchased residential mortgage loans: | |||||||
Performing LHFI | $209 | $230 | |||||
Nonperforming LHFI | 13 | 12 | |||||
Total carrying value of outstanding repurchased residential mortgages | $222 | $242 |
|
September 30, 2017 | |||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||
(Dollars in millions) | Notional Amounts | Fair Value | Notional Amounts | Fair Value | |||||||||||
Derivative instruments designated in cash flow hedging relationships 1 | |||||||||||||||
Interest rate contracts hedging floating rate LHFI | $3,150 | $3 | $10,550 | $187 | |||||||||||
Derivative instruments designated in fair value hedging relationships 2 | |||||||||||||||
Interest rate contracts hedging fixed rate debt | 500 | — | 5,420 | 36 | |||||||||||
Interest rate contracts hedging brokered CDs | 30 | — | 30 | — | |||||||||||
Total | 530 | — | 5,450 | 36 | |||||||||||
Derivative instruments not designated as hedging instruments 3 | |||||||||||||||
Interest rate contracts hedging: | |||||||||||||||
Residential MSRs 4 | 23,954 | 145 | 15,062 | 128 | |||||||||||
LHFS, IRLCs 5 | 5,628 | 13 | 4,218 | 13 | |||||||||||
LHFI | 90 | 2 | 85 | 2 | |||||||||||
Trading activity 6 | 73,673 | 1,126 | 57,454 | 1,014 | |||||||||||
Foreign exchange rate contracts hedging trading activity | 3,668 | 126 | 3,468 | 112 | |||||||||||
Credit contracts hedging: | |||||||||||||||
LHFI | — | — | 620 | 8 | |||||||||||
Trading activity 7 | 2,517 | 17 | 2,534 | 13 | |||||||||||
Equity contracts hedging trading activity 6 | 16,512 | 2,315 | 28,295 | 2,836 | |||||||||||
Other contracts: | |||||||||||||||
IRLCs and other 8 | 1,786 | 26 | 820 | 22 | |||||||||||
Commodity derivatives | 756 | 39 | 744 | 37 | |||||||||||
Total | 128,584 | 3,809 | 113,300 | 4,185 | |||||||||||
Total derivative instruments | $132,264 | $3,812 | $129,300 | $4,408 | |||||||||||
Total gross derivative instruments, before netting | $3,812 | $4,408 | |||||||||||||
Less: Legally enforceable master netting agreements | (2,611 | ) | (2,611 | ) | |||||||||||
Less: Cash collateral received/paid | (303 | ) | (1,420 | ) | |||||||||||
Total derivative instruments, after netting | $898 | $377 |
December 31, 2016 | |||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||
(Dollars in millions) | Notional Amounts | Fair Value | Notional Amounts | Fair Value | |||||||||||
Derivative instruments designated in cash flow hedging relationships 1 | |||||||||||||||
Interest rate contracts hedging floating rate LHFI | $6,400 | $34 | $11,050 | $265 | |||||||||||
Derivative instruments designated in fair value hedging relationships 2 | |||||||||||||||
Interest rate contracts hedging fixed rate debt | 600 | 2 | 4,510 | 81 | |||||||||||
Interest rate contracts hedging brokered CDs | 60 | — | 30 | — | |||||||||||
Total | 660 | 2 | 4,540 | 81 | |||||||||||
Derivative instruments not designated as hedging instruments 3 | |||||||||||||||
Interest rate contracts hedging: | |||||||||||||||
Residential MSRs 4 | 12,165 | 413 | 18,774 | 335 | |||||||||||
LHFS, IRLCs 5 | 11,774 | 134 | 8,306 | 58 | |||||||||||
LHFI | 100 | 2 | 36 | 1 | |||||||||||
Trading activity 6 | 70,599 | 1,536 | 67,477 | 1,401 | |||||||||||
Foreign exchange rate contracts hedging trading activity | 3,231 | 161 | 3,360 | 148 | |||||||||||
Credit contracts hedging: | |||||||||||||||
LHFI | 15 | — | 620 | 8 | |||||||||||
Trading activity 7 | 2,128 | 34 | 2,271 | 33 | |||||||||||
Equity contracts hedging trading activity 6 | 17,225 | 2,095 | 28,658 | 2,477 | |||||||||||
Other contracts: | |||||||||||||||
IRLCs and other 8 | 2,412 | 28 | 668 | 22 | |||||||||||
Commodity derivatives | 747 | 75 | 746 | 73 | |||||||||||
Total | 120,396 | 4,478 | 130,916 | 4,556 | |||||||||||
Total derivative instruments | $127,456 | $4,514 | $146,506 | $4,902 | |||||||||||
Total gross derivative instruments, before netting | $4,514 | $4,902 | |||||||||||||
Less: Legally enforceable master netting agreements | (3,239 | ) | (3,239 | ) | |||||||||||
Less: Cash collateral received/paid | (291 | ) | (1,265 | ) | |||||||||||
Total derivative instruments, after netting | $984 | $398 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | Classification of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||
(Dollars in millions) | Amount of Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion) | Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | Amount of Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion) | Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | |||||||||||||
Derivative instruments in cash flow hedging relationships: | |||||||||||||||||
Interest rate contracts hedging floating rate LHFI 1 | $10 | $3 | $61 | $37 | Interest and fees on loans |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||||||||
(Dollars in millions) | Amount of Loss on Derivatives Recognized in Income | Amount of Gain on Related Hedged Items Recognized in Income | Amount of Gain/(Loss) Recognized in Income on Hedges (Ineffective Portion) | Amount of Gain on Derivatives Recognized in Income | Amount of Loss on Related Hedged Items Recognized in Income | Amount of Gain Recognized in Income on Hedges (Ineffective Portion) | |||||||||||||||||
Derivative instruments in fair value hedging relationships: | |||||||||||||||||||||||
Interest rate contracts hedging fixed rate debt 1 | ($3 | ) | $3 | $— | $5 | ($4 | ) | $1 | |||||||||||||||
Interest rate contracts hedging brokered CDs 1 | — | — | — | — | — | — | |||||||||||||||||
Total | ($3 | ) | $3 | $— | $5 | ($4 | ) | $1 |
(Dollars in millions) | Classification of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives During the Three Months Ended September 30, 2017 | Amount of Gain/(Loss) Recognized in Income on Derivatives During the Nine Months Ended September 30, 2017 | ||||||
Derivative instruments not designated as hedging instruments: | |||||||||
Interest rate contracts hedging: | |||||||||
Residential MSRs | Mortgage servicing related income | $14 | $34 | ||||||
LHFS, IRLCs | Mortgage production related income | (20 | ) | (57 | ) | ||||
LHFI | Other noninterest income | — | (1 | ) | |||||
Trading activity | Trading income | 11 | 33 | ||||||
Foreign exchange rate contracts hedging trading activity | Trading income | (10 | ) | (43 | ) | ||||
Credit contracts hedging: | |||||||||
LHFI | Other noninterest income | (1 | ) | (3 | ) | ||||
Trading activity | Trading income | 8 | 19 | ||||||
Equity contracts hedging trading activity | Trading income | (1 | ) | (1 | ) | ||||
Other contracts: | |||||||||
IRLCs and other | Mortgage production related income, Commercial real estate related income | 49 | 154 | ||||||
Commodity derivatives | Trading income | — | 1 | ||||||
Total | $50 | $136 |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | Classification of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||
(Dollars in millions) | Amount of Pre-tax Loss Recognized in OCI on Derivatives (Effective Portion) | Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | Amount of Pre-tax Gain Recognized in OCI on Derivatives (Effective Portion) | Amount of Pre-tax Gain Reclassified from AOCI into Income (Effective Portion) | |||||||||||||
Derivative instruments in cash flow hedging relationships: | |||||||||||||||||
Interest rate contracts hedging floating rate LHFI 1 | ($78 | ) | $36 | $408 | $113 | Interest and fees on loans |
Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||
(Dollars in millions) | Amount of Loss on Derivatives Recognized in Income | Amount of Gain on Related Hedged Items Recognized in Income | Amount of Gain Recognized in Income on Hedges (Ineffective Portion) | Amount of Gain on Derivatives Recognized in Income | Amount of Loss on Related Hedged Items Recognized in Income | Amount of Gain Recognized in Income on Hedges (Ineffective Portion) | |||||||||||||||||
Derivative instruments in fair value hedging relationships: | |||||||||||||||||||||||
Interest rate contracts hedging fixed rate debt 1 | ($10 | ) | $11 | $1 | $20 | ($19 | ) | $1 | |||||||||||||||
Interest rate contracts hedging brokered CDs 1 | — | — | — | — | — | — | |||||||||||||||||
Total | ($10 | ) | $11 | $1 | $20 | ($19 | ) | $1 |
(Dollars in millions) | Classification of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives During the Three Months Ended September 30, 2016 | Amount of Gain/(Loss) Recognized in Income on Derivatives During the Nine Months Ended September 30, 2016 | ||||||
Derivative instruments not designated as hedging instruments: | |||||||||
Interest rate contracts hedging: | |||||||||
Residential MSRs | Mortgage servicing related income | $15 | $306 | ||||||
LHFS, IRLCs | Mortgage production related income | (35 | ) | (162 | ) | ||||
LHFI | Other noninterest income | — | (3 | ) | |||||
Trading activity | Trading income | 11 | 24 | ||||||
Foreign exchange rate contracts hedging trading activity | Trading income | 36 | 52 | ||||||
Credit contracts hedging: | |||||||||
LHFI | Other noninterest income | (1 | ) | (3 | ) | ||||
Trading activity | Trading income | 5 | 14 | ||||||
Equity contracts hedging trading activity | Trading income | 1 | 5 | ||||||
Other contracts: | |||||||||
IRLCs | Mortgage production related income | 122 | 291 | ||||||
Commodity derivatives | Trading income | 1 | 2 | ||||||
Total | $155 | $526 |
(Dollars in millions) | Gross Amount | Amount Offset | Net Amount Presented in Consolidated Balance Sheets | Held/Pledged Financial Instruments | Net Amount | ||||||||||||||
September 30, 2017 | |||||||||||||||||||
Derivative instrument assets: | |||||||||||||||||||
Derivatives subject to master netting arrangement or similar arrangement | $3,436 | $2,768 | $668 | $35 | $633 | ||||||||||||||
Derivatives not subject to master netting arrangement or similar arrangement | 26 | — | 26 | — | 26 | ||||||||||||||
Exchange traded derivatives | 350 | 146 | 204 | — | 204 | ||||||||||||||
Total derivative instrument assets | $3,812 | $2,914 | $898 | 1 | $35 | $863 | |||||||||||||
Derivative instrument liabilities: | |||||||||||||||||||
Derivatives subject to master netting arrangement or similar arrangement | $4,146 | $3,885 | $261 | $54 | $207 | ||||||||||||||
Derivatives not subject to master netting arrangement or similar arrangement | 115 | — | 115 | — | 115 | ||||||||||||||
Exchange traded derivatives | 147 | 146 | 1 | — | 1 | ||||||||||||||
Total derivative instrument liabilities | $4,408 | $4,031 | $377 | 2 | $54 | $323 | |||||||||||||
December 31, 2016 | |||||||||||||||||||
Derivative instrument assets: | |||||||||||||||||||
Derivatives subject to master netting arrangement or similar arrangement | $4,193 | $3,384 | $809 | $48 | $761 | ||||||||||||||
Derivatives not subject to master netting arrangement or similar arrangement | 27 | — | 27 | — | 27 | ||||||||||||||
Exchange traded derivatives | 294 | 146 | 148 | — | 148 | ||||||||||||||
Total derivative instrument assets | $4,514 | $3,530 | $984 | 1 | $48 | $936 | |||||||||||||
Derivative instrument liabilities: | |||||||||||||||||||
Derivatives subject to master netting arrangement or similar arrangement | $4,649 | $4,358 | $291 | $33 | $258 | ||||||||||||||
Derivatives not subject to master netting arrangement or similar arrangement | 105 | — | 105 | — | 105 | ||||||||||||||
Exchange traded derivatives | 148 | 146 | 2 | — | 2 | ||||||||||||||
Total derivative instrument liabilities | $4,902 | $4,504 | $398 | 2 | $33 | $365 |
|
September 30, 2017 | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments 1 | Assets/Liabilities at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Trading assets and derivative instruments: | |||||||||||||||||||
U.S. Treasury securities | $366 | $— | $— | $— | $366 | ||||||||||||||
Federal agency securities | — | 303 | — | — | 303 | ||||||||||||||
U.S. states and political subdivisions | — | 53 | — | — | 53 | ||||||||||||||
MBS - agency | — | 666 | — | — | 666 | ||||||||||||||
Corporate and other debt securities | — | 665 | — | — | 665 | ||||||||||||||
CP | — | 383 | — | — | 383 | ||||||||||||||
Equity securities | 30 | — | — | — | 30 | ||||||||||||||
Derivative instruments | 350 | 3,439 | 23 | (2,914 | ) | 898 | |||||||||||||
Trading loans | — | 2,954 | — | — | 2,954 | ||||||||||||||
Total trading assets and derivative instruments | 746 | 8,463 | 23 | (2,914 | ) | 6,318 | |||||||||||||
Securities AFS: | |||||||||||||||||||
U.S. Treasury securities | 4,261 | — | — | — | 4,261 | ||||||||||||||
Federal agency securities | — | 270 | — | — | 270 | ||||||||||||||
U.S. states and political subdivisions | — | 563 | — | — | 563 | ||||||||||||||
MBS - agency | — | 24,980 | — | — | 24,980 | ||||||||||||||
MBS - non-agency residential | — | — | 62 | — | 62 | ||||||||||||||
MBS - non-agency commercial | — | 750 | — | — | 750 | ||||||||||||||
ABS | — | — | 8 | — | 8 | ||||||||||||||
Corporate and other debt securities | — | 28 | 5 | — | 33 | ||||||||||||||
Other equity securities 2 | 44 | — | 473 | — | 517 | ||||||||||||||
Total securities AFS | 4,305 | 26,591 | 548 | — | 31,444 | ||||||||||||||
LHFS | — | 2,251 | 1 | — | 2,252 | ||||||||||||||
LHFI | — | — | 206 | — | 206 | ||||||||||||||
Residential MSRs | — | — | 1,628 | — | 1,628 | ||||||||||||||
Liabilities | |||||||||||||||||||
Trading liabilities and derivative instruments: | |||||||||||||||||||
U.S. Treasury securities | 555 | — | — | — | 555 | ||||||||||||||
Corporate and other debt securities | — | 347 | — | — | 347 | ||||||||||||||
Equity securities | 5 | — | — | — | 5 | ||||||||||||||
Derivative instruments | 147 | 4,244 | 17 | (4,031 | ) | 377 | |||||||||||||
Total trading liabilities and derivative instruments | 707 | 4,591 | 17 | (4,031 | ) | 1,284 | |||||||||||||
Brokered time deposits | — | 207 | — | — | 207 | ||||||||||||||
Long-term debt | — | 758 | — | — | 758 |
December 31, 2016 | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Netting Adjustments 1 | Assets/Liabilities at Fair Value | ||||||||||||||
Assets | |||||||||||||||||||
Trading assets and derivative instruments: | |||||||||||||||||||
U.S. Treasury securities | $539 | $— | $— | $— | $539 | ||||||||||||||
Federal agency securities | — | 480 | — | — | 480 | ||||||||||||||
U.S. states and political subdivisions | — | 134 | — | — | 134 | ||||||||||||||
MBS - agency | — | 567 | — | — | 567 | ||||||||||||||
CLO securities | — | 1 | — | — | 1 | ||||||||||||||
Corporate and other debt securities | — | 656 | — | — | 656 | ||||||||||||||
CP | — | 140 | — | — | 140 | ||||||||||||||
Equity securities | 49 | — | — | — | 49 | ||||||||||||||
Derivative instruments | 293 | 4,193 | 28 | (3,530 | ) | 984 | |||||||||||||
Trading loans | — | 2,517 | — | — | 2,517 | ||||||||||||||
Total trading assets and derivative instruments | 881 | 8,688 | 28 | (3,530 | ) | 6,067 | |||||||||||||
Securities AFS: | |||||||||||||||||||
U.S. Treasury securities | 5,405 | — | — | — | 5,405 | ||||||||||||||
Federal agency securities | — | 313 | — | — | 313 | ||||||||||||||
U.S. states and political subdivisions | — | 275 | 4 | — | 279 | ||||||||||||||
MBS - agency | — | 23,662 | — | — | 23,662 | ||||||||||||||
MBS - non-agency residential | — | — | 74 | — | 74 | ||||||||||||||
MBS - non-agency commercial | — | 252 | — | — | 252 | ||||||||||||||
ABS | — | — | 10 | — | 10 | ||||||||||||||
Corporate and other debt securities | — | 30 | 5 | — | 35 | ||||||||||||||
Other equity securities 2 | 102 | — | 540 | — | 642 | ||||||||||||||
Total securities AFS | 5,507 | 24,532 | 633 | — | 30,672 | ||||||||||||||
LHFS | — | 3,528 | 12 | — | 3,540 | ||||||||||||||
LHFI | — | — | 222 | — | 222 | ||||||||||||||
Residential MSRs | — | — | 1,572 | — | 1,572 | ||||||||||||||
Liabilities | |||||||||||||||||||
Trading liabilities and derivative instruments: | |||||||||||||||||||
U.S. Treasury securities | 697 | — | — | — | 697 | ||||||||||||||
MBS - agency | — | 1 | — | — | 1 | ||||||||||||||
Corporate and other debt securities | — | 255 | — | — | 255 | ||||||||||||||
Derivative instruments | 149 | 4,731 | 22 | (4,504 | ) | 398 | |||||||||||||
Total trading liabilities and derivative instruments | 846 | 4,987 | 22 | (4,504 | ) | 1,351 | |||||||||||||
Brokered time deposits | — | 78 | — | — | 78 | ||||||||||||||
Long-term debt | — | 963 | — | — | 963 |
(Dollars in millions) | Fair Value at September 30, 2017 | Aggregate UPB at September 30, 2017 | Fair Value Over/(Under) Unpaid Principal | ||||||||
Assets: | |||||||||||
Trading loans | $2,954 | $2,917 | $37 | ||||||||
LHFS: | |||||||||||
Accruing | 2,252 | 2,180 | 72 | ||||||||
LHFI: | |||||||||||
Accruing | 203 | 208 | (5 | ) | |||||||
Nonaccrual | 3 | 4 | (1 | ) | |||||||
Liabilities: | |||||||||||
Brokered time deposits | 207 | 208 | (1 | ) | |||||||
Long-term debt | 758 | 736 | 22 | ||||||||
(Dollars in millions) | Fair Value at December 31, 2016 | Aggregate UPB at December 31, 2016 | Fair Value Over/(Under) Unpaid Principal | ||||||||
Assets: | |||||||||||
Trading loans | $2,517 | $2,488 | $29 | ||||||||
LHFS: | |||||||||||
Accruing | 3,540 | 3,516 | 24 | ||||||||
LHFI: | |||||||||||
Accruing | 219 | 225 | (6 | ) | |||||||
Nonaccrual | 3 | 4 | (1 | ) | |||||||
Liabilities: | |||||||||||
Brokered time deposits | 78 | 80 | (2 | ) | |||||||
Long-term debt | 963 | 924 | 39 |
Fair Value Gain/(Loss) for the Three Months Ended September 30, 2017 for Items Measured at Fair Value Pursuant to Election of the FVO | Fair Value Gain/(Loss) for the Nine Months Ended September 30, 2017 for Items Measured at Fair Value Pursuant to Election of the FVO | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Trading Income | Mortgage Production Related Income 1 | Mortgage Servicing Related Income | Other Noninterest Income | Total Changes in Fair Values Included in Earnings 2 | Trading Income | Mortgage Production Related Income 1 | Mortgage Servicing Related Income | Other Noninterest Income | Total Changes in Fair Values Included in Earnings 2 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||
Trading loans | $8 | $— | $— | $— | $8 | $16 | $— | $— | $— | $16 | |||||||||||||||||||||||||||||
LHFS | — | 21 | — | — | 21 | — | 44 | — | — | 44 | |||||||||||||||||||||||||||||
LHFI | — | — | — | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||||||
Residential MSRs | — | 1 | (70 | ) | — | (69 | ) | — | 3 | (195 | ) | — | (192 | ) | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||
Brokered time deposits | — | — | — | — | — | 2 | — | — | — | 2 | |||||||||||||||||||||||||||||
Long-term debt | 5 | — | — | — | 5 | 16 | — | — | — | 16 |
Fair Value Gain/(Loss) for the Three Months Ended September 30, 2016 for Items Measured at Fair Value Pursuant to Election of the FVO | Fair Value Gain/(Loss) for the Nine Months Ended September 30, 2016 for Items Measured at Fair Value Pursuant to Election of the FVO | ||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Trading Income | Mortgage Production Related Income 1 | Mortgage Servicing Related Income | Other Noninterest Income | Total Changes in Fair Values Included in Earnings 2 | Trading Income | Mortgage Production Related Income 1 | Mortgage Servicing Related Income | Other Noninterest Income | Total Changes in Fair Values Included in Earnings 2 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||
Trading loans | $6 | $— | $— | $— | $6 | $11 | $— | $— | $— | $11 | |||||||||||||||||||||||||||||
LHFS | — | 15 | — | — | 15 | — | 92 | — | — | 92 | |||||||||||||||||||||||||||||
LHFI | — | — | — | (1 | ) | (1 | ) | — | — | — | 5 | 5 | |||||||||||||||||||||||||||
Residential MSRs | — | — | (56 | ) | — | (56 | ) | — | 2 | (488 | ) | — | (486 | ) | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||
Brokered time deposits | 1 | — | — | — | 1 | 1 | — | — | — | 1 | |||||||||||||||||||||||||||||
Long-term debt | 7 | — | — | — | 7 | 10 | — | — | — | 10 |
Level 3 Significant Unobservable Input Assumptions | |||||||||
(Dollars in millions) | Fair value September 30, 2017 | Valuation Technique | Unobservable Input 1 | Range (weighted average) | |||||
Assets | |||||||||
Trading assets and derivative instruments: | |||||||||
Derivative instruments, net 2 | $6 | Internal model | Pull through rate | 46-100% (79%) | |||||
MSR value | 27-160 bps (104 bps) | ||||||||
Securities AFS: | |||||||||
MBS - non-agency residential | 62 | Third party pricing | N/A | ||||||
ABS | 8 | Third party pricing | N/A | ||||||
Corporate and other debt securities | 5 | Cost | N/A | ||||||
Other equity securities | 473 | Cost | N/A | ||||||
Residential LHFS | 1 | Monte Carlo/Discounted cash flow | Option adjusted spread | 125 bps (125 bps) | |||||
Conditional prepayment rate | 5-30 CPR (14 CPR) | ||||||||
Conditional default rate | 0-2 CDR (0.5 CDR) | ||||||||
LHFI | 203 | Monte Carlo/Discounted cash flow | Option adjusted spread | 62-784 bps (188 bps) | |||||
Conditional prepayment rate | 3-36 CPR (11 CPR) | ||||||||
Conditional default rate | 0-9 CDR (1.4 CDR) | ||||||||
3 | Collateral based pricing | Appraised value | NM 3 | ||||||
Residential MSRs | 1,628 | Monte Carlo/Discounted cash flow | Conditional prepayment rate | 7-29 CPR (13 CPR) | |||||
Option adjusted spread | 0-111% (4%) |
Level 3 Significant Unobservable Input Assumptions | |||||||||
(Dollars in millions) | Fair value December 31, 2016 | Valuation Technique | Unobservable Input 1 | Range (weighted average) | |||||
Assets | |||||||||
Trading assets and derivative instruments: | |||||||||
Derivative instruments, net 2 | $6 | Internal model | Pull through rate | 40-100% (81%) | |||||
MSR value | 22-170 bps (106 bps) | ||||||||
Securities AFS: | |||||||||
U.S. states and political subdivisions | 4 | Cost | N/A | ||||||
MBS - non-agency residential | 74 | Third party pricing | N/A | ||||||
ABS | 10 | Third party pricing | N/A | ||||||
Corporate and other debt securities | 5 | Cost | N/A | ||||||
Other equity securities | 540 | Cost | N/A | ||||||
Residential LHFS | 12 | Monte Carlo/Discounted cash flow | Option adjusted spread | 104-125 bps (124 bps) | |||||
Conditional prepayment rate | 2-28 CPR (7 CPR) | ||||||||
Conditional default rate | 0-3 CDR (0.4 CDR) | ||||||||
LHFI | 219 | Monte Carlo/Discounted cash flow | Option adjusted spread | 62-784 bps (184 bps) | |||||
Conditional prepayment rate | 3-36 CPR (13 CPR) | ||||||||
Conditional default rate | 0-5 CDR (2.1 CDR) | ||||||||
3 | Collateral based pricing | Appraised value | NM 3 | ||||||
Residential MSRs | 1,572 | Monte Carlo/Discounted cash flow | Conditional prepayment rate | 1-25 CPR (9 CPR) | |||||
Option adjusted spread | 0-122% (8%) |
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Beginning Balance July 1, 2017 | Included in Earnings | OCI | Purchases | Sales | Settlements | Transfers to/from Other Balance Sheet Line Items | Transfers into Level 3 | Transfers out of Level 3 | Fair Value September 30, 2017 | Included in Earnings (held at September 30, 2017 1) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments, net | $4 | $52 | 2 | $— | $— | $— | $1 | ($51 | ) | $— | $— | $6 | $19 | 2 | ||||||||||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||||||||||||||
MBS - non-agency residential | 67 | — | 1 | 3 | — | — | (6 | ) | — | — | — | 62 | — | |||||||||||||||||||||||||||||||
ABS | 9 | — | — | — | — | (1 | ) | — | — | — | 8 | — | ||||||||||||||||||||||||||||||||
Corporate and other debt securities | 5 | — | — | — | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||
Other equity securities | 547 | — | — | — | — | (74 | ) | — | — | — | 473 | — | ||||||||||||||||||||||||||||||||
Total securities AFS | 628 | — | 1 | 3 | — | — | (81 | ) | — | — | — | 548 | — | |||||||||||||||||||||||||||||||
Residential LHFS | 2 | — | — | — | (2 | ) | (1 | ) | (1 | ) | 3 | — | 1 | — | ||||||||||||||||||||||||||||||
LHFI | 214 | — | — | — | — | (9 | ) | 1 | — | — | 206 | — |
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Beginning Balance January 1, 2017 | Included in Earnings | OCI | Purchases | Sales | Settlements | Transfers to/from Other Balance Sheet Line Items | Transfers into Level 3 | Transfers out of Level 3 | Fair Value September 30, 2017 | Included in Earnings (held at September 30, 2017 1) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments, net | $6 | $157 | 2 | $— | $— | $— | $— | ($157 | ) | $— | $— | $6 | $17 | 2 | ||||||||||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. states and political subdivisions | 4 | — | — | — | — | (4 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||||||
MBS - non-agency residential | 74 | — | 1 | 3 | — | — | (13 | ) | — | — | — | 62 | — | |||||||||||||||||||||||||||||||
ABS | 10 | — | — | — | — | (2 | ) | — | — | — | 8 | — | ||||||||||||||||||||||||||||||||
Corporate and other debt securities | 5 | — | — | — | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||
Other equity securities | 540 | — | 1 | 3 | 75 | — | (138 | ) | — | — | (5 | ) | 473 | — | ||||||||||||||||||||||||||||||
Total securities AFS | 633 | — | 2 | 3 | 75 | — | (157 | ) | — | — | (5 | ) | 548 | — | ||||||||||||||||||||||||||||||
Residential LHFS | 12 | — | — | — | (22 | ) | (1 | ) | (3 | ) | 17 | (2 | ) | 1 | — | |||||||||||||||||||||||||||||
LHFI | 222 | 1 | 4 | — | — | — | (24 | ) | 3 | 4 | — | 206 | 1 | 4 |
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Beginning Balance July 1, 2016 | Included in Earnings | OCI | Purchases | Sales | Settlements | Transfers to/from Other Balance Sheet Line Items | Transfers into Level 3 | Transfers out of Level 3 | Fair Value September 30, 2016 | Included in Earnings (held at September 30, 2016 1) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments, net | $60 | $118 | 2 | $— | $— | $— | $2 | ($116 | ) | $— | $— | $64 | $73 | 2 | ||||||||||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. states and political subdivisions | 4 | — | — | — | — | — | — | — | — | 4 | — | |||||||||||||||||||||||||||||||||
MBS - non-agency residential | 83 | — | — | — | — | (7 | ) | — | — | — | 76 | — | ||||||||||||||||||||||||||||||||
ABS | 11 | — | 1 | 3 | — | — | (1 | ) | — | — | — | 11 | — | |||||||||||||||||||||||||||||||
Corporate and other debt securities | 5 | — | — | — | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||
Other equity securities | 610 | — | — | — | — | (59 | ) | — | — | — | 551 | — | ||||||||||||||||||||||||||||||||
Total securities AFS | 713 | — | 1 | 3 | — | — | (67 | ) | — | — | — | 647 | — | |||||||||||||||||||||||||||||||
Residential LHFS | 4 | — | — | — | (13 | ) | — | (2 | ) | 14 | — | 3 | — | |||||||||||||||||||||||||||||||
LHFI | 246 | (2 | ) | 4 | — | — | — | (10 | ) | (2 | ) | 2 | — | 234 | (2 | ) | 4 |
Fair Value Measurements Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Beginning Balance January 1, 2016 | Included in Earnings | OCI | Purchases | Sales | Settlements | Transfers to/from Other Balance Sheet Line Items | Transfers into Level 3 | Transfers out of Level 3 | Fair Value September 30, 2016 | Included in Earnings (held at September 30, 2016 1) | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||||||||||||||||||||
Corporate and other debt securities | $89 | ($1 | ) | 5 | $— | $— | ($88 | ) | $— | $— | $— | $— | $— | $— | ||||||||||||||||||||||||||||||
Derivative instruments, net | 15 | 279 | 2 | — | — | — | 2 | (232 | ) | — | — | 64 | 68 | 2 | ||||||||||||||||||||||||||||||
Total trading assets | 104 | 278 | — | — | (88 | ) | 2 | (232 | ) | — | — | 64 | 68 | |||||||||||||||||||||||||||||||
Securities AFS: | ||||||||||||||||||||||||||||||||||||||||||||
U.S. states and political subdivisions | 5 | — | — | — | — | (1 | ) | — | — | — | 4 | — | ||||||||||||||||||||||||||||||||
MBS - non-agency residential | 94 | — | (1 | ) | 3 | — | — | (17 | ) | — | — | — | 76 | — | ||||||||||||||||||||||||||||||
ABS | 12 | — | 1 | 3 | — | — | (2 | ) | — | — | — | 11 | — | |||||||||||||||||||||||||||||||
Corporate and other debt securities | 5 | — | — | — | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||||
Other equity securities | 440 | — | 1 | 3 | 276 | — | (166 | ) | — | — | — | 551 | — | |||||||||||||||||||||||||||||||
Total securities AFS | 556 | — | 1 | 3 | 276 | — | (186 | ) | — | — | — | 647 | — | |||||||||||||||||||||||||||||||
Residential LHFS | 5 | — | — | — | (27 | ) | — | (4 | ) | 31 | (2 | ) | 3 | — | ||||||||||||||||||||||||||||||
LHFI | 257 | 4 | 4 | — | — | — | (32 | ) | (1 | ) | 6 | — | 234 | 4 | 4 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 23 | — | — | — | — | (23 | ) | — | — | — | — | — |
Fair Value Measurements | Losses for the Three Months Ended September 30, 2017 | Losses for the Nine Months Ended September 30, 2017 | |||||||||||||||||||||
(Dollars in millions) | September 30, 2017 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
LHFS | $46 | $— | $46 | $— | $— | $— | |||||||||||||||||
LHFI | 76 | — | — | 76 | — | — | |||||||||||||||||
OREO | 20 | — | — | 20 | (2 | ) | (4 | ) | |||||||||||||||
Other assets | 50 | — | 7 | 43 | (21 | ) | (35 | ) | |||||||||||||||
Fair Value Measurements | Losses for the Year Ended December 31, 2016 | ||||||||||||||||||||||
(Dollars in millions) | December 31, 2016 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
LHFI | $75 | $— | $— | $75 | $— | ||||||||||||||||||
OREO | 17 | — | — | 17 | (2 | ) | |||||||||||||||||
Other assets | 112 | — | 58 | 54 | (36 | ) |
September 30, 2017 | Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $8,278 | $8,278 | $8,278 | $— | $— | (a) | ||||||||||||||
Trading assets and derivative instruments | 6,318 | 6,318 | 746 | 5,549 | 23 | (b) | ||||||||||||||
Securities AFS | 31,444 | 31,444 | 4,305 | 26,591 | 548 | (b) | ||||||||||||||
LHFS | 2,835 | 2,849 | — | 2,653 | 196 | (c) | ||||||||||||||
LHFI, net | 142,492 | 142,482 | — | 121 | 142,361 | (d) | ||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 162,737 | 162,590 | — | 162,590 | — | (e) | ||||||||||||||
Short-term borrowings | 5,449 | 5,449 | — | 5,449 | — | (f) | ||||||||||||||
Long-term debt | 11,280 | 11,389 | — | 10,363 | 1,026 | (f) | ||||||||||||||
Trading liabilities and derivative instruments | 1,284 | 1,284 | 707 | 560 | 17 | (b) |
December 31, 2016 | Fair Value Measurements | |||||||||||||||||||
(Dollars in millions) | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $6,423 | $6,423 | $6,423 | $— | $— | (a) | ||||||||||||||
Trading assets and derivative instruments | 6,067 | 6,067 | 881 | 5,158 | 28 | (b) | ||||||||||||||
Securities AFS | 30,672 | 30,672 | 5,507 | 24,532 | 633 | (b) | ||||||||||||||
LHFS | 4,169 | 4,178 | — | 4,161 | 17 | (c) | ||||||||||||||
LHFI, net | 141,589 | 140,516 | — | 282 | 140,234 | (d) | ||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 160,398 | 160,280 | — | 160,280 | — | (e) | ||||||||||||||
Short-term borrowings | 4,764 | 4,764 | — | 4,764 | — | (f) | ||||||||||||||
Long-term debt | 11,748 | 11,779 | — | 11,051 | 728 | (f) | ||||||||||||||
Trading liabilities and derivative instruments | 1,351 | 1,351 | 846 | 483 | 22 | (b) |
(a) | Cash and cash equivalents are valued at their carrying amounts, which are reasonable estimates of fair value due to the relatively short period to maturity of the instruments. |
(b) | Trading assets and derivative instruments, securities AFS, and trading liabilities and derivative instruments that are classified as level 1 are valued based on quoted prices observed in active markets. For those instruments classified as level 2 or 3, refer to the respective valuation discussions within this footnote. |
(c) | LHFS are generally valued based on observable current market prices or, if quoted market prices are not available, quoted market prices of similar instruments. Refer to the LHFS section within this footnote for further discussion. When valuation assumptions are not readily observable in the market, instruments are valued based on the best available data to approximate fair value. This data may be internally developed and considers risk premiums that a market participant would require under then-current market conditions. |
(d) | LHFI fair values are based on a hypothetical exit price, which does not represent the estimated intrinsic value of the loan if held for investment. The assumptions used are expected to approximate those that a market participant purchasing the loans would use to value the loans, including a market risk premium and liquidity discount. Estimating the fair value of the loan portfolio when loan sales and trading markets are illiquid or nonexistent requires significant judgment. |
(e) | Deposit liabilities with no defined maturity such as DDAs, NOW/money market accounts, and savings accounts have a fair value equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for CDs are estimated using a discounted cash flow approach that applies current interest rates to a schedule of aggregated expected maturities. The assumptions used in the discounted cash flow analysis are expected to approximate those that market participants would use in valuing deposits. The value of long-term relationships with depositors is not taken into account in estimating fair values. Refer to the respective valuation section within this footnote for valuation information related to brokered time deposits that the Company measures at fair value as well as those that are carried at amortized cost. |
(f) | Fair values for short-term borrowings and certain long-term debt are based on quoted market prices for similar instruments or estimated discounted cash flows utilizing the Company’s current incremental borrowing rate for similar types of instruments. Refer to the respective valuation section within this footnote for valuation information related to long-term debt that the Company measures at fair value. For level 3 debt, the terms are unique in nature or there are no similar instruments that can be used to value the instrument without using significant unobservable assumptions. In these situations, the Company reviews current borrowing rates along with the collateral levels that secure the debt in determining an appropriate fair value adjustment. |
|
Three Months Ended September 30, 2017 | |||||||||||||||||||
(Dollars in millions) | Consumer | Wholesale | Corporate Other | Reconciling Items | Consolidated | ||||||||||||||
Balance Sheets: | |||||||||||||||||||
Average loans | $73,378 | $71,255 | $76 | ($3 | ) | $144,706 | |||||||||||||
Average consumer and commercial deposits | 103,066 | 56,211 | 202 | (60 | ) | 159,419 | |||||||||||||
Average total assets | 83,161 | 85,280 | 34,763 | 2,534 | 205,738 | ||||||||||||||
Average total liabilities | 103,964 | 61,820 | 15,388 | (7 | ) | 181,165 | |||||||||||||
Average total equity | — | — | — | 24,573 | 24,573 | ||||||||||||||
Statements of Income: | |||||||||||||||||||
Net interest income | $941 | $571 | ($23 | ) | ($59 | ) | $1,430 | ||||||||||||
FTE adjustment | — | 36 | 1 | — | 37 | ||||||||||||||
Net interest income-FTE 1 | 941 | 607 | (22 | ) | (59 | ) | 1,467 | ||||||||||||
Provision/(benefit) for credit losses 2 | 136 | (16 | ) | — | — | 120 | |||||||||||||
Net interest income after provision/(benefit) for credit losses-FTE | 805 | 623 | (22 | ) | (59 | ) | 1,347 | ||||||||||||
Total noninterest income | 473 | 406 | 19 | (52 | ) | 846 | |||||||||||||
Total noninterest expense | 899 | 459 | 39 | (6 | ) | 1,391 | |||||||||||||
Income before provision for income taxes-FTE | 379 | 570 | (42 | ) | (105 | ) | 802 | ||||||||||||
Provision for income taxes-FTE 3 | 138 | 211 | (22 | ) | (65 | ) | 262 | ||||||||||||
Net income including income attributable to noncontrolling interest | 241 | 359 | (20 | ) | (40 | ) | 540 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | 2 | — | 2 | ||||||||||||||
Net income | $241 | $359 | ($22 | ) | ($40 | ) | $538 |
Three Months Ended September 30, 2016 1 | |||||||||||||||||||
(Dollars in millions) | Consumer | Wholesale | Corporate Other | Reconciling Items | Consolidated | ||||||||||||||
Balance Sheets: | |||||||||||||||||||
Average loans | $70,560 | $71,625 | $74 | ($2 | ) | $142,257 | |||||||||||||
Average consumer and commercial deposits | 99,730 | 55,489 | 157 | (63 | ) | 155,313 | |||||||||||||
Average total assets | 80,298 | 85,762 | 32,479 | 2,937 | 201,476 | ||||||||||||||
Average total liabilities | 100,698 | 61,078 | 15,351 | (61 | ) | 177,066 | |||||||||||||
Average total equity | — | — | — | 24,410 | 24,410 | ||||||||||||||
Statements of Income: | |||||||||||||||||||
Net interest income | $872 | $505 | $23 | ($92 | ) | $1,308 | |||||||||||||
FTE adjustment | — | 34 | 1 | (1 | ) | 34 | |||||||||||||
Net interest income-FTE 2 | 872 | 539 | 24 | (93 | ) | 1,342 | |||||||||||||
Provision for credit losses 3 | 29 | 68 | — | — | 97 | ||||||||||||||
Net interest income after provision for credit losses-FTE | 843 | 471 | 24 | (93 | ) | 1,245 | |||||||||||||
Total noninterest income | 555 | 355 | 20 | (41 | ) | 889 | |||||||||||||
Total noninterest expense | 985 | 424 | 4 | (4 | ) | 1,409 | |||||||||||||
Income before provision for income taxes-FTE | 413 | 402 | 40 | (130 | ) | 725 | |||||||||||||
Provision for income taxes-FTE 4 | 155 | 150 | 12 | (68 | ) | 249 | |||||||||||||
Net income including income attributable to noncontrolling interest | 258 | 252 | 28 | (62 | ) | 476 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 2 | — | 2 | ||||||||||||||
Net income | $258 | $252 | $26 | ($62 | ) | $474 |
Nine Months Ended September 30, 2017 | |||||||||||||||||||
(Dollars in millions) | Consumer | Wholesale | Corporate Other | Reconciling Items | Consolidated | ||||||||||||||
Balance Sheets: | |||||||||||||||||||
Average loans | $72,200 | $72,005 | $74 | ($3 | ) | $144,276 | |||||||||||||
Average consumer and commercial deposits | 102,686 | 56,326 | 162 | (29 | ) | 159,145 | |||||||||||||
Average total assets | 82,071 | 85,638 | 34,420 | 2,704 | 204,833 | ||||||||||||||
Average total liabilities | 103,616 | 61,990 | 15,089 | 7 | 180,702 | ||||||||||||||
Average total equity | — | — | — | 24,131 | 24,131 | ||||||||||||||
Statements of Income: | |||||||||||||||||||
Net interest income | $2,748 | $1,670 | ($17 | ) | ($202 | ) | $4,199 | ||||||||||||
FTE adjustment | — | 105 | 2 | — | 107 | ||||||||||||||
Net interest income-FTE 1 | 2,748 | 1,775 | (15 | ) | (202 | ) | 4,306 | ||||||||||||
Provision for credit losses 2 | 299 | 31 | — | — | 330 | ||||||||||||||
Net interest income after provision for credit losses-FTE | 2,449 | 1,744 | (15 | ) | (202 | ) | 3,976 | ||||||||||||
Total noninterest income | 1,401 | 1,194 | 59 | (134 | ) | 2,520 | |||||||||||||
Total noninterest expense | 2,832 | 1,399 | 26 | (14 | ) | 4,243 | |||||||||||||
Income before provision for income taxes-FTE | 1,018 | 1,539 | 18 | (322 | ) | 2,253 | |||||||||||||
Provision for income taxes-FTE 3 | 367 | 572 | (26 | ) | (200 | ) | 713 | ||||||||||||
Net income including income attributable to noncontrolling interest | 651 | 967 | 44 | (122 | ) | 1,540 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 7 | — | 7 | ||||||||||||||
Net income | $651 | $967 | $37 | ($122 | ) | $1,533 |
Nine Months Ended September 30, 2016 1 | |||||||||||||||||||
(Dollars in millions) | Consumer | Wholesale | Corporate Other | Reconciling Items | Consolidated | ||||||||||||||
Balance Sheets: | |||||||||||||||||||
Average loans | $69,075 | $71,489 | $66 | ($2 | ) | $140,628 | |||||||||||||
Average consumer and commercial deposits | 98,751 | 54,099 | 122 | (61 | ) | 152,911 | |||||||||||||
Average total assets | 78,378 | 85,392 | 31,510 | 2,333 | 197,613 | ||||||||||||||
Average total liabilities | 99,746 | 59,798 | 14,019 | (26 | ) | 173,537 | |||||||||||||
Average total equity | — | — | — | 24,076 | 24,076 | ||||||||||||||
Statements of Income: | |||||||||||||||||||
Net interest income | $2,578 | $1,488 | $83 | ($272 | ) | $3,877 | |||||||||||||
FTE adjustment | — | 103 | 2 | — | 105 | ||||||||||||||
Net interest income-FTE 2 | 2,578 | 1,591 | 85 | (272 | ) | 3,982 | |||||||||||||
Provision for credit losses 3 | 90 | 253 | — | — | 343 | ||||||||||||||
Net interest income after provision for credit losses-FTE | 2,488 | 1,338 | 85 | (272 | ) | 3,639 | |||||||||||||
Total noninterest income | 1,568 | 996 | 112 | (107 | ) | 2,569 | |||||||||||||
Total noninterest expense | 2,839 | 1,243 | 3 | (13 | ) | 4,072 | |||||||||||||
Income before provision for income taxes-FTE | 1,217 | 1,091 | 194 | (366 | ) | 2,136 | |||||||||||||
Provision for income taxes-FTE 4 | 455 | 407 | 54 | (200 | ) | 716 | |||||||||||||
Net income including income attributable to noncontrolling interest | 762 | 684 | 140 | (166 | ) | 1,420 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 7 | — | 7 | ||||||||||||||
Net income | $762 | $684 | $133 | ($166 | ) | $1,413 |
|
(Dollars in millions) | Securities AFS | Derivative Instruments | Brokered Time Deposits | Long-Term Debt | Employee Benefit Plans | Total | |||||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||||
Balance, beginning of period | ($5 | ) | ($168 | ) | ($1 | ) | ($7 | ) | ($596 | ) | ($777 | ) | |||||||||||
Net unrealized gains arising during the period | 40 | 6 | — | 1 | — | 47 | |||||||||||||||||
Amounts reclassified to net income | — | (8 | ) | — | — | 3 | (5 | ) | |||||||||||||||
Other comprehensive income/(loss), net of tax | 40 | (2 | ) | — | 1 | 3 | 42 | ||||||||||||||||
Balance, end of period | $35 | ($170 | ) | ($1 | ) | ($6 | ) | ($593 | ) | ($735 | ) | ||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||
Balance, beginning of period | $550 | $310 | $— | ($7 | ) | ($620 | ) | $233 | |||||||||||||||
Net unrealized losses arising during the period | (32 | ) | (49 | ) | — | (3 | ) | — | (84 | ) | |||||||||||||
Amounts reclassified to net income | — | (37 | ) | — | — | 3 | (34 | ) | |||||||||||||||
Other comprehensive (loss)/income, net of tax | (32 | ) | (86 | ) | — | (3 | ) | 3 | (118 | ) | |||||||||||||
Balance, end of period | $518 | $224 | $— | ($10 | ) | ($617 | ) | $115 | |||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||||
Balance, beginning of period | ($62 | ) | ($157 | ) | ($1 | ) | ($7 | ) | ($594 | ) | ($821 | ) | |||||||||||
Net unrealized gains arising during the period | 98 | 38 | — | 1 | — | 137 | |||||||||||||||||
Amounts reclassified to net income | (1 | ) | (51 | ) | — | — | 1 | (51 | ) | ||||||||||||||
Other comprehensive income/(loss), net of tax | 97 | (13 | ) | — | 1 | 1 | 86 | ||||||||||||||||
Balance, end of period | $35 | ($170 | ) | ($1 | ) | ($6 | ) | ($593 | ) | ($735 | ) | ||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
Balance, beginning of period | $135 | $87 | $— | $— | ($682 | ) | ($460 | ) | |||||||||||||||
Cumulative credit risk adjustment 1 | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||
Net unrealized gains/(losses) arising during the period | 386 | 256 | — | (5 | ) | — | 637 | ||||||||||||||||
Amounts reclassified to net income | (3 | ) | (119 | ) | — | — | 65 | (57 | ) | ||||||||||||||
Other comprehensive income/(loss), net of tax | 383 | 137 | — | (5 | ) | 65 | 580 | ||||||||||||||||
Balance, end of period | $518 | $224 | $— | ($10 | ) | ($617 | ) | $115 |
(Dollars in millions) | Three Months Ended September 30 | Nine Months Ended September 30 | Impacted Line Item in the Consolidated Statements of Income | |||||||||||||||
Details About AOCI Components | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Securities AFS: | ||||||||||||||||||
Realized gains on securities AFS | $— | $— | ($1 | ) | ($4 | ) | Net securities gains | |||||||||||
Tax effect | — | — | — | 1 | Provision for income taxes | |||||||||||||
— | — | (1 | ) | (3 | ) | |||||||||||||
Derivative Instruments: | ||||||||||||||||||
Realized gains on cash flow hedges | (13 | ) | (59 | ) | (81 | ) | (190 | ) | Interest and fees on loans | |||||||||
Tax effect | 5 | 22 | 30 | 71 | Provision for income taxes | |||||||||||||
(8 | ) | (37 | ) | (51 | ) | (119 | ) | |||||||||||
Employee Benefit Plans: | ||||||||||||||||||
Amortization of prior service credit | (1 | ) | (1 | ) | (4 | ) | (4 | ) | Employee benefits | |||||||||
Amortization of actuarial loss | 6 | 6 | 18 | 19 | Employee benefits | |||||||||||||
Adjustment to funded status of employee benefit obligation | — | — | (10 | ) | 89 | Other assets/other liabilities | ||||||||||||
5 | 5 | 4 | 104 | |||||||||||||||
Tax effect | (2 | ) | (2 | ) | (3 | ) | (39 | ) | Provision for income taxes | |||||||||
3 | 3 | 1 | 65 | |||||||||||||||
Total reclassifications from AOCI to net income | ($5 | ) | ($34 | ) | ($51 | ) | ($57 | ) |
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