SUNTRUST BANKS INC, 10-Q filed on 8/3/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - $ / shares
6 Months Ended
Jun. 30, 2018
Jul. 31, 2018
Dec. 31, 2017
Entity Registrant Name SUNTRUST BANKS INC    
Entity Central Index Key 0000750556    
Current Fiscal Year End Date --12-31    
Entity Filer Category Large Accelerated Filer    
Document Type 10-Q    
Document Period End Date Jun. 30, 2018    
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus Q2    
Amendment Flag false    
Entity Common Stock, Shares Outstanding   460,731,345  
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Common Stock, Par or Stated Value Per Share $ 1.00   $ 1.00
v3.10.0.1
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Interest Income        
Interest and Fee Income, Loans and Leases Held-in-portfolio $ 1,476 $ 1,338 $ 2,874 $ 2,628
Interest and fees on loans held for sale 24 21 45 46
Interest and Dividend Income, Securities, Available-for-sale [1],[2] 210 187 416 369
Trading account interest and other [2] 49 37 92 68
Total interest income 1,759 1,583 3,427 3,111
Interest Expense        
Interest Expense, Deposits 159 95 291 175
Interest Expense, Long-term Debt 83 70 157 139
Interest on other borrowings 29 15 51 28
Total interest expense 271 180 499 342
Net, interest income 1,488 1,403 [3],[4] 2,928 2,769 [5],[6]
Provision for Loan, Lease, and Other Losses 32 [7] 90 [3],[4],[8] 60 [9] 209 [5],[6],[10]
Interest Income (Expense), after Provision for Loan Loss 1,456 1,313 2,868 2,560
Noninterest Income        
Service charges on deposit accounts 144 [11] 151 [12] 289 [13] 299 [14]
Fees and Commissions, Other 93 [11] 103 [12] 179 [13] 198 [14]
Fees and Commissions, Credit and Debit Cards 85 [11] 87 [12] 166 [13] 169 [14]
Investment Banking Revenue 167 [11] 147 [12] 298 [13] 314 [14]
Trading Gain (Loss) 53 [11] 46 [12] 95 [13] 97 [14]
Fees and Commissions, Fiduciary and Trust Activities 75 [11] 76 [12] 150 [13] 151 [14]
Investment Advisory, Management and Administrative Fees 73 [11] 70 [12] 145 [13] 139 [14]
Fees and Commissions, Mortgage Banking 43 [11] 56 [12] 79 [13] 109 [14]
Servicing Fees, Net (40) [11] (44) [12] (95) [13] (102) [14]
commercial real estate related income 18 [11] 24 [12] 42 [13] 44 [14]
Gain (Loss) on Sale of Securities, Net 0 [11] 1 [12] 1 [13] 1 [14]
Noninterest Income, Other Operating Income 38 [11] 22 [12] 87 [13] 51 [14]
Total noninterest income 829 [11] 827 [3],[4],[12] 1,626 [13] 1,674 [5],[6],[14]
Noninterest Expense        
Employee compensation 714 710 1,422 1,427
Other Labor-related Expenses 88 86 234 221
Outside processing and software 227 204 433 409
Net occupancy expense 90 94 184 185
Federal Deposit Insurance Corporation Premium Expense 39 49 79 97
Marketing and Advertising Expense 40 42 81 84
Equipment Expense 44 43 84 83
Operating losses 17 19 23 51
Amortization 17 15 32 28
Other Noninterest Expense 114 126 235 268
Noninterest Expense 1,390 1,388 [3],[4] 2,807 2,853 [5],[6]
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest 895 752 1,687 1,381
Income Tax Expense (Benefit) 171 222 318 381
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 724 530 [3],[4] 1,369 1,000 [5],[6]
Net Income (Loss) Attributable to Noncontrolling Interest 2 2 [3],[4] 4 5 [5],[6]
Net Income (Loss) Attributable to Parent 722 528 [3],[4] 1,365 995 [5],[6]
Dividends, Preferred Stock, Cash 25 23 55 [15] 39 [15]
Net Income (Loss) Available to Common Stockholders, Basic $ 697 $ 505 $ 1,310 $ 956
Earnings Per Share, Diluted $ 1.49 $ 1.03 $ 2.78 $ 1.94
Earnings Per Share, Basic 1.50 1.05 2.80 1.97
Common Stock, Dividends, Per Share, Declared $ 0.40 $ 0.26 $ 0.80 $ 0.52
Weighted Average Number of Shares Outstanding, Diluted 469,339 488,020 471,468 491,989
Weighted Average Number of Shares Outstanding, Basic 465,529 482,913 467,117 486,482
[1] Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets and began presenting income associated with certain of these equity securities in Trading account interest and other on the Consolidated Statements of Income. For periods prior to January 1, 2018, income associated with these equity securities was presented in Interest on securities available for sale and has been reclassified to Trading account interest and other for comparability.
[2] Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets and began presenting income associated with certain of these equity securities in Trading account interest and other. For periods prior to January 1, 2018, income associated with these equity securities was presented in Interest on securities available for sale and has been reclassified to Trading account interest and other for comparability.
[3] During the fourth quarter of 2017, the Company sold PAC, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.
[4] During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.
[5] During the fourth quarter of 2017, the Company sold PAC, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.
[6] During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.
[7] Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to quarterly changes in the ALLL and unfunded commitment reserve balances.
[8] Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to quarterly changes in the ALLL and unfunded commitment reserve balances.
[9] Provision/(benefit) for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision/(benefit) attributable to quarterly changes in the ALLL and unfunded commitment reserve balances.
[10] Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to quarterly changes in the ALLL and unfunded commitment reserve balan
[11] Amounts are presented in accordance with ASC Topic 606, Revenue from Contracts with Customers, except for out of scope amounts.
[12] Amounts for periods prior to January 1, 2018 are presented in accordance with ASC Topic 605, Revenue Recognition, and have not been restated to conform with ASC Topic 606, Revenue from Contracts with Customers.
[13] Amounts are presented in accordance with ASC Topic 606, Revenue from Contracts with Customers, except for out of scope amounts.
[14] Amounts for periods prior to January 1, 2018 are presented in accordance with ASC Topic 605, Revenue Recognition, and have not been restated to conform with ASC Topic 606, Revenue from Contracts with Customers.
[15] For the six months ended June 30, 2018, dividends were $2,022 per share for both Series A and B Preferred Stock, $1,469 per share for Series E Preferred Stock, $2,813 per share for Series F Preferred Stock, $2,525 per share for Series G Preferred Stock, and $3,004 per share for Series H Preferred Stock.For the six months ended June 30, 2017, dividends were $2,022 per share for both Series A and B Preferred Stock, $2,938 per share for Series E Preferred Stock, $2,813 per share for Series F Preferred Stock, and $828 per share for Series G Preferred Stock.
v3.10.0.1
Consolidated Statements of Comprehensive Income Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement of Comprehensive Income [Abstract]        
Net Income (Loss) Attributable to Parent $ 722 $ 528 [1],[2] $ 1,365 $ 995 [3],[4]
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax (123) 55 (548) 57
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax (35) 31 (159) (11)
Other Comprehensive Income (Loss), Brokered Time Deposits, Net of Tax (1) 0 0 0
Other Comprehensive Income (Loss), Long Term Debt, Adjustment, Net of Tax 1 1 3 0
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax 1 3 (1) (2)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent (157) 90 (705) 44
Comprehensive Income (Loss), Net of Tax, Attributable to Parent $ 565 $ 618 $ 660 $ 1,039
[1] During the fourth quarter of 2017, the Company sold PAC, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.
[2] During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.
[3] During the fourth quarter of 2017, the Company sold PAC, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.
[4] During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.
v3.10.0.1
Consolidated Statements of Comprehensive Income Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement of Comprehensive Income [Abstract]        
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax $ (38) $ 33 $ (168) $ 34
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax (10) 18 (49) (6)
Other Comprehensive Income (Loss), Brokered Time Deposits, Tax 0 0 0 0
Other Comprehensive Income (Loss), Long Term Debt, Adjustment, Tax 0 1 1 0
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax $ 0 $ 2 $ 1 $ 1
v3.10.0.1
Consolidated Balance Sheets - USD ($)
shares in Thousands, $ in Millions
Jun. 30, 2018
Dec. 31, 2017
Assets    
Cash and Due from Banks $ 5,858 $ 5,349
Federal Funds Sold and Securities Purchased under Agreements to Resell 1,365 1,538
Interest-bearing Deposits in Banks and Other Financial Institutions 25 25
Cash and cash equivalents 7,248 6,912
Trading Securities [1] 5,050 5,093
Available-for-sale Securities [2],[3] 30,942 30,947 [4]
Loans Held for Sale [5] 2,283 2,290
Loans held for investment [6] 144,935 143,181
Loans and Leases Receivable, Allowance (1,650) (1,735)
Net loans 143,285 141,446
Property, Plant and Equipment, Net 1,538 1,734
Goodwill 6,331 6,331
Intangible Assets, Net (Excluding Goodwill) [7] 2,036 1,791
Other Assets [2] 8,792 9,418
Total assets 207,505 205,962
Liabilities and Shareholders' Equity    
Noninterest-bearing consumer and commercial deposits 44,755 42,784
Interest-bearing Deposit Liabilities 116,693 117,996
Total deposits 161,448 160,780
Federal Funds Purchased 1,251 2,561
Securities Sold under Agreements to Repurchase 1,567 1,503
Other Short-term Borrowings 2,470 717
Long-term Debt [8] 11,995 9,785
Trading liabilities 1,958 1,283
Other Liabilities 2,500 4,179
Total liabilities 183,189 180,808
Preferred Stock, Value, Outstanding 2,025 2,475
Common Stock, Value, Outstanding 552 550
Additional Paid in Capital 8,980 9,000
Retained earnings 18,616 17,540
Treasury Stock, Value [9] (4,178) (3,591)
Accumulated Other Comprehensive Income (Loss), Net of Tax (1,679) (820)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest 24,316 25,154
Liabilities and Equity $ 207,505 $ 205,962
Common Stock, Shares, Outstanding [10] 465,199 470,931
Common shares authorized 750,000 750,000
Preferred Stock, Shares Outstanding 20 25
Preferred Stock, Shares Authorized 50,000 50,000
Treasury shares of common stock 87,071 79,133
Treasury Stock and Other    
Liabilities and Shareholders' Equity    
Treasury Stock, Value $ (4,281)  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [11] (4,178) $ (3,591)
Stockholders' Equity Attributable to Noncontrolling Interest 103 103
Variable Interest Entity, Primary Beneficiary [Member]    
Assets    
Loans held for investment 165 179
Liabilities and Shareholders' Equity    
Long-term Debt $ 174 $ 189
Restricted Stock [Member]    
Liabilities and Shareholders' Equity    
Common Stock, Shares, Outstanding 7 9
Trading Securities [Member]    
Liabilities and Shareholders' Equity    
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value $ 1,160 $ 1,086
Available-for-sale Securities [Member]    
Liabilities and Shareholders' Equity    
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value $ 184 $ 223
[1] Includes trading securities pledged as collateral where counterparties have the right to sell or repledge the collateral of $1,160 million and $1,086 million at June 30, 2018 and December 31, 2017, respectively.
[2] Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets. Reclassifications have been made to previously reported amounts for comparability.
[3] Includes securities AFS pledged as collateral where counterparties have the right to sell or repledge the collateral of $184 million and $223 million at June 30, 2018 and December 31, 2017, respectively.
[4] Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets. Reclassifications have been made to previously reported amounts for comparability. See Note 9, "Other Assets," for additional information.
[5] Includes $2.0 billion and $1.6 billion of LHFS measured at fair value at June 30, 2018 and December 31, 2017, respectively.
[6] Includes loans of consolidated VIEs of $165 million and $179 million at June 30, 2018 and December 31, 2017, respectively.
[7] Excludes other intangible assets that are indefinite-lived, carried at fair value, or fully amortized.
[8] Includes debt of consolidated VIEs of $174 million and $189 million at June 30, 2018 and December 31, 2017, respectively.
[9] Includes noncontrolling interest of $103 million and $103 million at June 30, 2018 and December 31, 2017, respectively.
[10] Includes restricted shares of 7 thousand and 9 thousand at June 30, 2018 and December 31, 2017, respectively.
[11] At June 30, 2018, includes ($4,281) million for treasury stock and $103 million for noncontrolling interest.At June 30, 2017, includes ($3,048) million for treasury stock and $103 million for noncontrolling interest.
v3.10.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Millions
Jun. 30, 2018
Dec. 31, 2017
Loans Held-for-sale, Fair Value Disclosure $ 2,005 $ 1,577
Loans Receivable, Fair Value Disclosure $ 177 196
Other Assets, Fair Value Disclosure   $ 56
Common stock, par value $ 1.00 $ 1.00
Loans and Leases Receivable, Gross [1] $ 144,935 $ 143,181
Long-term Debt [2] $ 11,995 $ 9,785
Common Stock, Shares, Outstanding [3] 465,199 470,931
Variable Interest Entity, Primary Beneficiary [Member]    
Loans and Leases Receivable, Gross $ 165 $ 179
Long-term Debt 174 189
Treasury Stock and Other    
Stockholders' Equity Attributable to Noncontrolling Interest 103 103
Consumer Portfolio Segment [Member]    
Loans Receivable, Fair Value Disclosure 177 196
Loans and Leases Receivable, Gross 67,834 67,704
Residential Portfolio Segment [Member]    
Loans and Leases Receivable, Gross $ 38,216 $ 38,620
Restricted Stock [Member]    
Common Stock, Shares, Outstanding 7 9
Trading Securities [Member]    
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value $ 1,160 $ 1,086
Available-for-sale Securities [Member]    
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value 184 223
Fair Value, Measurements, Recurring [Member]    
Loans Held-for-sale, Fair Value Disclosure 2,005 1,577
Loans Receivable, Fair Value Disclosure 177 196
Servicing Asset at Fair Value, Amount 1,959 1,710
Other Assets, Fair Value Disclosure 126 [4] 56 [5]
Long-term Debt, Fair Value 220 530
Brokered Time Deposits [Member] | Fair Value, Measurements, Recurring [Member]    
Deposits, Fair Value Disclosure $ 350 $ 236
[1] Includes loans of consolidated VIEs of $165 million and $179 million at June 30, 2018 and December 31, 2017, respectively.
[2] Includes debt of consolidated VIEs of $174 million and $189 million at June 30, 2018 and December 31, 2017, respectively.
[3] Includes restricted shares of 7 thousand and 9 thousand at June 30, 2018 and December 31, 2017, respectively.
[4] Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets. Reclassifications have been made to previously reported amounts for comparability. See Note 9, "Other Assets," for additional information.
[5] Beginning January 1, 2018, the Company reclassified equity securities previously presented in Securities available for sale to Other assets on the Consolidated Balance Sheets. Reclassifications have been made to previously reported amounts for comparability. See Note 9, "Other Assets," for additional information.
v3.10.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Millions
Total
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock and Other
[1]
AOCI Attributable to Parent [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Shares, Outstanding     491,000        
Total shareholders' equity at Dec. 31, 2016 $ 23,618 $ 1,225 $ 550 $ 9,010 $ 16,000 $ (2,346) $ (821)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Income (Loss) Attributable to Parent 995 [2],[3]       995    
Other Comprehensive Income (Loss), Net of Tax 44           44
Dividends, Common Stock, Cash (253)       (253)    
Dividends, Preferred Stock, Cash [4] (39)       (39)    
Stock Issued During Period, Value, New Issues 743 750   (7)      
Treasury Stock, Shares, Acquired     (11,000)        
Treasury Stock, Value, Acquired, Cost Method (654)         (654)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period     1,000        
Stock Issued During Period, Value, Stock Options Exercised (12)     (13)   (25)  
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures     1,000        
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures 11     (17) (2) 30  
Total shareholders' equity at Jun. 30, 2017 $ 24,477 1,975 $ 550 8,973 16,701 (2,945) (777)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Shares, Outstanding     482,000        
Common Stock, Shares, Outstanding 470,931 [5]   471,000        
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income [6] $ (10)       144   (154) [7]
Total shareholders' equity at Dec. 31, 2017 25,154 2,475 $ 550 9,000 17,540 (3,591) (820)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Income (Loss) Attributable to Parent 1,365       1,365    
Other Comprehensive Income (Loss), Net of Tax (705)           (705)
Dividends, Common Stock, Cash (374)       (374)    
Dividends, Preferred Stock, Cash [4] (55)       (55)    
Treasury Stock, Shares, Acquired     (10,000)        
Treasury Stock, Value, Acquired, Cost Method (660)         (660)  
Stock Redeemed or Called During Period, Value (450) (450)          
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period     1,000        
Stock Issued During Period, Value, Stock Options Exercised (32)     (1)   (33)  
Stock Issued During Period, Shares, Other     2,000        
Stock Issued During Period, Value, Other 2   $ 2        
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures     1,000        
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures 17     (19) (4) 40  
Total shareholders' equity at Jun. 30, 2018 $ 24,316 $ 2,025 $ 552 $ 8,980 $ 18,616 $ (4,178) $ (1,679)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Shares, Outstanding 465,199 [5]   465,000        
[1] At June 30, 2018, includes ($4,281) million for treasury stock and $103 million for noncontrolling interest.At June 30, 2017, includes ($3,048) million for treasury stock and $103 million for noncontrolling interest.
[2] During the fourth quarter of 2017, the Company sold PAC, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.
[3] During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.
[4] For the six months ended June 30, 2018, dividends were $2,022 per share for both Series A and B Preferred Stock, $1,469 per share for Series E Preferred Stock, $2,813 per share for Series F Preferred Stock, $2,525 per share for Series G Preferred Stock, and $3,004 per share for Series H Preferred Stock.For the six months ended June 30, 2017, dividends were $2,022 per share for both Series A and B Preferred Stock, $2,938 per share for Series E Preferred Stock, $2,813 per share for Series F Preferred Stock, and $828 per share for Series G Preferred Stock.
[5] Includes restricted shares of 7 thousand and 9 thousand at June 30, 2018 and December 31, 2017, respectively.
[6] Related to the Company's adoption of ASU 2014-09, ASU 2016-01, ASU 2017-12, and ASU 2018-02 on January 1, 2018. See Note 1, "Significant Accounting Policies," for additional information.
[7] Related to the Company's adoption of ASU 2018-02 on January 1, 2018. See Note 1, "Significant Accounting Policies," for additional information.
v3.10.0.1
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Treasury Stock, Value [1] $ (4,178)   $ (3,591)
Common stock dividends, per share $ 0.80 $ 0.52  
Treasury Stock and Other      
Treasury Stock, Value $ (4,281) $ (3,048)  
Deferred Compensation Equity 0 0  
Stockholders' Equity Attributable to Noncontrolling Interest $ 103 $ 103 $ 103
Series A Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid $ 2,022 $ 2,022  
Series B Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid 2,022 2,022  
Series E Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid 1,469 2,938  
Series F Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid 2,813 2,813  
Series G Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid 2,525 $ 828  
Series H Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid $ 3,004    
[1] Includes noncontrolling interest of $103 million and $103 million at June 30, 2018 and December 31, 2017, respectively.
v3.10.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash Flows from Operating Activities:    
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 1,369 $ 1,000 [1],[2]
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:    
Depreciation, Amortization and Accretion, Net 356 356
Payments to Acquire Mortgage Servicing Rights (MSR) 156 169
Provisions For Credit Losses And Foreclosed Properties 65 214
Stock Option Compensation And Amortization Of Restricted Stock Compensation 87 90
Gain (Loss) on Sale of Securities, Net 1 [3] 1 [4]
Gain (Loss) on Sale of Loans and Leases 28 102
Net decrease/(increase) in loans held for sale (14) (1,425)
Increase (Decrease) in Trading Securities 166 (202)
Net (increase)/decrease in other assets [5] (1,158) (617)
Increase (Decrease) in Other Operating Liabilities 409 742
Net Cash Provided by (Used in) Operating Activities, Continuing Operations 791 3,140
Cash Flows from Investing Activities:    
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities 1,807 1,992
Proceeds from Sale of Available-for-sale Securities 1,920 660
Payments to Acquire Available-for-sale Securities 4,081 3,049
Proceeds from (payments for) Originations and Purchases of Loans Held-for-investment (2,150) (1,443)
Proceeds from sales of loans 180 230
Payments for (Proceeds from) Mortgage Servicing Rights (60) 0
Payment to Acquire Life Insurance Policy, Investing Activities [5] (1) (126)
Capital expenditures (109) (146)
Proceeds from Sale of Other Real Estate 102 143
Payments for (Proceeds from) Other Investing Activities [5] 6 5
Net Cash Provided by (Used in) Investing Activities, Continuing Operations (2,386) (1,734)
Cash Flows from Financing Activities:    
Net (decrease)/increase in total deposits 668 (525)
Net increase/(decrease) in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings 507 2,386
Proceeds from Issuance of Long-term Debt 2,659 1,381
Repayment of long-term debt (355) (2,608)
Proceeds from Issuance of Preferred Stock and Preference Stock 0 743
Payments for Repurchase of Preferred Stock and Preference Stock (450) 0
Payments for Repurchase of Common Stock (660) (654)
Common and preferred dividends paid (429) (286)
Payments Related to Tax Withholding for Share-based Compensation (43) (37)
Proceeds from the exercise of stock options 34 12
Net Cash Provided by (Used in) Financing Activities, Continuing Operations 1,931 412
Cash and Cash Equivalents, Period Increase (Decrease) 336 1,818
Cash and cash equivalents 6,912 6,423
Cash and cash equivalents 7,248 8,241
Supplemental Disclosures:    
Transfer of Loans Held-for-sale to Portfolio Loans 18 10
Transfer of Portfolio Loans and Leases to Held-for-sale 327 127
Transfer to Other Real Estate 33 29
Non-cash impact of debt acquired by purchaser in leverage lease sale $ 0 $ 9
[1] During the fourth quarter of 2017, the Company sold PAC, the results of which were previously reported within the Wholesale business segment. For all periods prior to January 1, 2018, PAC's financial results, including the gain on sale, have been transferred to Corporate Other for enhanced comparability of the Wholesale business segment excluding PAC.
[2] During the second quarter of 2018, certain of the Company's business banking clients were transferred from the Wholesale business segment to the Consumer business segment. For all periods prior to the second quarter of 2018, the corresponding financial results have been transferred to the Consumer business segment for comparability purposes.
[3] Amounts are presented in accordance with ASC Topic 606, Revenue from Contracts with Customers, except for out of scope amounts.
[4] Amounts for periods prior to January 1, 2018 are presented in accordance with ASC Topic 605, Revenue Recognition, and have not been restated to conform with ASC Topic 606, Revenue from Contracts with Customers.
[5] Related to the Company's adoption of ASU 2016-15, certain prior period amounts have been retrospectively reclassified between operating activities and investing activities. See Note 1, "Significant Accounting Policies," for additional information.
v3.10.0.1
Significant Accounting Policies
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Basis of Presentation
The unaudited Consolidated Financial Statements included within this report have been prepared in accordance with U.S. GAAP to present interim financial statement information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete, consolidated financial statements. However, in the opinion of management, all adjustments, consisting only of normal recurring adjustments that are necessary for a fair presentation of the results of operations in these financial statements, have been made.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes; actual results could vary from these estimates. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Interim Consolidated Financial Statements should be read in conjunction with the Company’s 2017 Annual Report on Form 10-K.

Changes in Significant Accounting Policies
Pursuant to the Company's adoption of certain ASUs as of January 1, 2018, the following significant accounting policies have been added to or updated from those disclosed in the Company's 2017 Annual Report on Form 10-K:

Revenue Recognition
In the ordinary course of business, the Company recognizes revenue as services are rendered, or as transactions occur, and as collectability is reasonably assured. For the Company's revenue recognition accounting policies, see Note 2, “Revenue Recognition.”

Trading Activities and Securities AFS
Trading assets and liabilities are measured at fair value with changes in fair value recognized within Noninterest income in the Company's Consolidated Statements of Income.
Securities AFS are used primarily as a store of liquidity and as part of the overall ALM process to optimize income and market performance over an entire interest rate cycle. Interest income on securities AFS is recognized on an accrual basis in Interest income in the Company's Consolidated Statements of Income. Premiums and discounts on securities AFS are amortized or accreted as an adjustment to yield over the life of the security. The Company estimates principal prepayments on securities AFS for which prepayments are probable and the timing and amount of prepayments can be reasonably estimated. The estimates are informed by analyses of both historical prepayments and anticipated macroeconomic conditions, such as spot interest rates compared to implied forward interest rates. The estimate of prepayments for these securities impacts their lives and thereby the amortization or accretion of associated premiums and discounts. Securities AFS are measured at fair value with unrealized gains and losses, net of any tax effect, included in AOCI as a component of shareholders’ equity. Realized gains and losses, including OTTI, are determined using the specific identification method and are recognized as a component of Noninterest income in the Consolidated Statements of Income.
Securities AFS are reviewed for OTTI on a quarterly basis. In determining whether OTTI exists for securities AFS in an unrealized loss position, the Company assesses whether it has the intent to sell the security or assesses the likelihood of selling the security prior to the recovery of its amortized cost basis. If the Company intends to sell the security or it is more-likely-than-not that the Company will be required to sell the security prior to the recovery of its amortized cost basis, the security is written down to fair value, and the full amount of any impairment charge is recognized as a component of Noninterest income in the Consolidated Statements of Income. If the Company does not intend to sell the security and it is more-likely-than-not that the Company will not be required to sell the security prior to recovery of its amortized cost basis, only the credit component of any impairment of a security is recognized as a component of Noninterest income in the Consolidated Statements of Income, with the remaining impairment balance recorded in OCI.
For additional information on the Company’s trading and securities AFS activities, see Note 4, “Trading Assets and Liabilities and Derivatives,” and Note 5, “Securities Available for Sale.”

Equity Securities
The Company records equity securities that are not classified as trading assets or liabilities within Other assets in its Consolidated Balance Sheets.
Investments in equity securities with readily determinable fair values (marketable) are measured at fair value, with changes in the fair value recognized as a component of Noninterest income in the Company's Consolidated Statements of Income.
Investments in equity investments that do not have readily determinable fair values (nonmarketable) are accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer, also referred to as the measurement alternative. Any adjustments to the carrying value of these investments are recorded in Noninterest income in the Company's Consolidated Statements of Income.
For additional information on the Company's equity securities, see Note 9, “Other Assets,” and Note 16, “Fair Value Election and Measurement.”

Derivative Instruments and Hedging Activities
The Company records derivative contracts at fair value in the Consolidated Balance Sheets. Accounting for changes in the fair value of a derivative depends upon whether or not it has been designated in a formal, qualifying hedging relationship. 
Changes in the fair value of derivatives not designated in a hedging relationship are recorded in noninterest income. This includes derivatives that the Company enters into in a dealer capacity to facilitate client transactions and as a risk management tool to economically hedge certain identified risks, along with certain IRLCs on residential mortgage and commercial loans that are a normal part of the Company’s operations. The Company also evaluates contracts, such as brokered deposits and debt, to determine whether any embedded derivatives are required to be bifurcated and separately accounted for as freestanding derivatives.
Certain derivatives used as risk management tools are designated as accounting hedges of the Company’s exposure to changes in interest rates or other identified market risks. The Company prepares written hedge documentation for all derivatives which are designated as hedges of (i) changes in the fair value of a recognized asset or liability (fair value hedge) attributable to a specified risk or (ii) a forecasted transaction, such as the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness, along with support for management’s assertion that the hedge will be highly effective. Methodologies related to hedge effectiveness include (i) statistical regression analysis of changes in the cash flows of the actual derivative and a perfectly effective hypothetical derivative, or (ii) statistical regression analysis of changes in the fair values of the actual derivative and the hedged item.
For designated hedging relationships, subsequent to the initial assessment of hedge effectiveness, the Company generally performs retrospective and prospective effectiveness testing using a qualitative approach. Assessments of hedge effectiveness are performed at least quarterly. Changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a fair value hedge are recorded in current period earnings, in the same line item with the changes in the fair value of the hedged item that are attributable to the hedged risk. The changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge is initially recorded in AOCI and reclassified to earnings in the same period that the hedged item impacts earnings. The amount reclassified to earnings is recorded in the same line item as the earnings effect of the hedged item.
Hedge accounting ceases for hedging relationships that are no longer deemed effective, or for which the derivative has been terminated or de-designated. For discontinued fair value hedges where the hedged item remains outstanding, the hedged item would cease to be remeasured at fair value attributable to changes in the hedged risk and any existing basis adjustment would be recognized as an adjustment to earnings over the remaining life of the hedged item. For discontinued cash flow hedges, the unrealized gains and losses recorded in AOCI would be reclassified to earnings in the period when the previously designated hedged cash flows occur unless it was determined that transaction was probable to not occur, in which case any unrealized gains and losses in AOCI would be immediately reclassified to earnings.
It is the Company's policy to offset derivative transactions with a single counterparty as well as any cash collateral paid to and received from that counterparty for derivative contracts that are subject to ISDA or other legally enforceable netting arrangements and meet accounting guidance for offsetting treatment. For additional information on the Company’s derivative activities, see Note 15, “Derivative Financial Instruments,” and Note 16, “Fair Value Election and Measurement.”

Subsequent Events
The Company evaluated events that occurred between June 30, 2018 and the date the accompanying financial statements were issued, and there were no material events, other than those already discussed in this Form 10-Q, that would require recognition in the Company's Consolidated Financial Statements or disclosure in the accompanying Notes.

Accounting Pronouncements
The following table summarizes ASUs issued by the FASB that were adopted during the current year or not yet adopted as of June 30, 2018, that could have a material effect on the Company's financial statements:
Standard
Description
Required Date of Adoption
Effect on the Financial Statements or Other Significant Matters
Standards Adopted in 2018
ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606) and subsequent related ASUs
These ASUs comprise ASC Topic 606, Revenue from Contracts with Customers, which supersede 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.
January 1, 2018
The Company adopted these ASUs on a modified retrospective basis beginning January 1, 2018. Upon adoption, the Company recognized an immaterial cumulative effect adjustment that resulted in a decrease to the beginning balance of retained earnings as of January 1, 2018. Furthermore, the Company prospectively changed the presentation of certain types of revenue and expenses, such as underwriting revenue within investment banking income which is shown on a gross basis, and certain cash promotions and card network expenses, which were reclassified from noninterest expense to service charges on deposit accounts, card fees, and other charges and fees. The net quantitative impact of these presentation changes decreased both revenue and expenses by $4 million and $7 million for the three and six months ended June 30, 2018, respectively; however, these presentation changes did not have an impact on net income. Prior period balances have not been restated to reflect these presentation changes. See Note 2, “Revenue Recognition,” for disclosures relating to ASC Topic 606.

Standard
Description
Required Date of Adoption
Effect on the Financial Statements or Other Significant Matters
Standards Adopted in 2018 (continued)
ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities; and

ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
These ASUs amend ASC Topic 825, Financial Instruments-Overall, and address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require most investments in equity securities to be measured at fair value through net income, unless they qualify for a measurement alternative, 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 and the application of the measurement alternative for certain equity investments that was adopted prospectively, these ASUs must be adopted on a modified retrospective basis.
January 1, 2018

Early adoption was permitted 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 regarding the early adoption of this provision.

Additionally, the Company adopted the remaining provisions of these ASUs beginning January 1, 2018, which resulted in an immaterial cumulative effect adjustment to the beginning balance of retained earnings. In connection with the adoption of these ASUs, an immaterial amount of equity securities previously classified as securities AFS were reclassified to other assets, as the AFS classification is no longer permitted for equity securities under these ASUs.

Subsequent to adoption of these ASUs, the Company recognized net gains on certain of its equity investments during the first half of 2018. For additional information relating to these net gains, see Note 9, “Other Assets,” and Note 16, “Fair Value Election and Measurement.”

The remaining provisions and disclosure requirements of these ASUs did not have a material impact on the Company's Consolidated Financial Statements and related disclosures upon adoption.

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 Flows. 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 and 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, 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
The Company adopted this ASU on a retrospective basis effective January 1, 2018 and changed the presentation of certain cash payments and receipts within its Consolidated Statements of Cash Flows. Specifically, the Company changed the presentation of proceeds from the settlement of bank-owned life insurance policies from operating activities to investing activities. The Company also changed the presentation of cash payments for bank-owned life insurance policy premiums from operating activities to investing activities. Lastly, for contingent consideration payments made more than three months after a business combination, the Company changed the presentation for the portion of the cash payment up to the acquisition date fair value of the contingent consideration as a financing activity and any amount paid in excess of the acquisition date fair value as an operating activity.

For the six months ended June 30, 2018 and 2017, the Company reclassified an immaterial amount and $126 million, respectively, of cash payments for bank-owned life insurance policy premiums from operating activities to investing activities on the Company’s Consolidated Statements of Cash Flows. The remaining changes in presentation described above were immaterial for both the six months ended June 30, 2018 and 2017.

ASU 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting
This ASU amends ASC Topic 718, Stock Compensation, to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting per ASC Topic 718, Stock Compensation. The amendments clarify that modification accounting only applies to an entity if the fair value, vesting conditions, or classification of the award changes as a result of changes in the terms or conditions of a share-based payment award. The ASU should be applied prospectively to awards modified on or after the adoption date.

January 1, 2018
The Company adopted this ASU on January 1, 2018 and upon adoption, the ASU did not have a material impact on the Company's Consolidated Financial Statements and related disclosures.
Standard
Description
Required Date of Adoption
Effect on the Financial Statements or Other Significant Matters
Standards Adopted in 2018 (continued)
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. These changes expand the types of risk management strategies eligible for hedge accounting. The ASU also permits entities to qualitatively assert that a hedging relationship was and continues to be highly effective. 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 early adopted this ASU beginning January 1, 2018 and modified its measurement methodology for certain hedged items designated under fair value hedge relationships. The Company elected to perform its subsequent assessments of hedge effectiveness using a qualitative, rather than a quantitative, approach. The adoption resulted in an immaterial cumulative effect adjustment to the opening balance of retained earnings and a basis adjustment to the related hedged items arising from measuring the hedged items based on the benchmark interest rate component of the total contractual coupon of the fair value hedges. For additional information on the Company’s derivative and hedging activities, see Note 15, “Derivative Financial Instruments.”

ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from AOCI

This ASU amends ASC Topic 220, Income Statement - Reporting Comprehensive Income, to allow for a reclassification from AOCI to Retained earnings for the tax effects stranded in AOCI as a result of the remeasurement of DTAs and DTLs for the change in the federal corporate tax rate pursuant to the 2017 Tax Act, which was recognized through the income tax provision in 2017. The Company may apply this ASU at the beginning of the period of adoption or retrospectively to all periods in which the 2017 Tax Act is enacted.

January 1, 2019

Early adoption is permitted.
The Company early adopted this ASU as of January 1, 2018. Upon adoption of this ASU, the Company elected to reclassify $182 million of stranded tax effects relating to securities AFS, derivative instruments, credit risk on long-term debt, and employee benefit plans from AOCI to retained earnings. This amount was offset by $28 million of stranded tax effects relating to equity securities previously classified as securities AFS, resulting in a net $154 million increase to retained earnings.

Standards Not Yet Adopted
ASU 2016-02, Leases (ASC Topic 842) and subsequent related ASUs
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 have the option to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective transition approach or to apply the modified retrospective approach with an additional, optional transition method that initially applies this ASU as of the adoption date and recognizes a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption.

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. Additionally, in conjunction with this implementation, the Company is reviewing business processes and evaluating potential changes to the control environment.

The Company's adoption of this ASU, which is expected to occur on January 1, 2019, 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 June 30, 2018, the Company’s estimate of right-of-use assets and lease liabilities that would be recorded on its Consolidated Balance Sheets upon adoption was between $1.0 billion and $1.5 billion. Additionally, the Company expects to recognize a cumulative effect adjustment upon adoption to increase the beginning balance of retained earnings as of January 1, 2019 for any remaining deferred gains on sale-leaseback transactions which occurred prior to the date of adoption. The Company had approximately $45 million of deferred gains on sale-leaseback transactions as of June 30, 2018. The Company does not expect this ASU to have a material impact on the timing of expense recognition in its Consolidated Statements of Income.

Standard
Description
Required Date of Adoption
Effect on the Financial Statements or Other Significant Matters
Standards Not Yet Adopted (continued)
ASU 2016-13, Measurement of Credit Losses on Financial Instruments
The ASU adds ASC Topic 326, Financial Instruments-Credit Losses, to replace the incurred loss impairment methodology with a current expected credit loss 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 is deducted from the amortized cost basis of the financial assets to reflect the net amount expected to be collected on the financial assets. Additional quantitative and qualitative disclosures are required upon adoption. The change to the allowance for credit losses at the time of the adoption will be made with a cumulative effect adjustment to Retained earnings.

The current expected credit loss 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. A detailed implementation plan has been developed and substantial progress has been made on the identification and staging of data, development and validation of models, refinement of economic forecasting processes, and documentation of accounting policy decisions. Additionally, a new software tool is being implemented to host data and run models in a controlled, automated environment. In conjunction with this implementation, the Company is reviewing business processes and evaluating potential changes to the control environment.

The Company plans to adopt this ASU on January 1, 2020, and it is currently evaluating the impact that this ASU will have on its Consolidated Financial Statements and related disclosures. 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. The magnitude of the increase will depend on economic conditions and trends in the Company’s portfolio at the time of adoption.


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, 2017, 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 the adoption date, which is expected to occur on January 1, 2020, the carrying amount of a reporting unit exceeds its fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value.
v3.10.0.1
Revenue Recognition (Notes)
6 Months Ended
Jun. 30, 2018
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
NOTE 2REVENUE RECOGNITION
Pursuant to the Company's adoption of ASC Topic 606, Revenue from Contracts with Customers, the following disclosures discuss the Company's revenue recognition accounting policies. The Company recognizes two primary types of revenue: Interest income and noninterest income.
Interest Income
The Company’s principal source of revenue is interest income from loans and securities, which is recognized on an accrual basis using the effective interest method. For additional information on the Company’s policies for recognizing interest income on loans and securities, see Note 1, “Significant Accounting Policies,” in the Company’s 2017 Annual Report on Form 10-K. Interest income is not within the scope of ASC Topic 606.
Noninterest Income
Noninterest income includes revenue from various types of transactions and services provided to Consumer and Wholesale clients. The following table reflects the Company’s noninterest income disaggregated by the amount of revenue that is in scope and out of scope of ASC Topic 606.
(Dollars in millions)
Three Months Ended June 30
 
Six Months Ended June 30
Noninterest income
2018
 
2017
 
2018
 
2017
Revenue in scope of ASC Topic 606

$509

 

$514

 

$1,002

 

$1,023

Revenue out of scope of ASC Topic 606
320

 
313

 
624

 
651

Total noninterest income

$829

 

$827

 

$1,626

 

$1,674


The following tables further disaggregate the Company’s noninterest income by financial statement line item, business segment, and by the amount of each revenue stream that is in scope or out of scope of ASC Topic 606. The commentary following these tables describes the nature, amount, and timing of the related revenue streams.
 
 Three Months Ended June 30, 2018 1
(Dollars in millions)
 Consumer 2
 
 Wholesale 2
 
  Out of Scope 2, 3
 
Total
Noninterest income
 
 
 
 
 
 
 
Service charges on deposit accounts

$115

 

$29

 

$—

 

$144

Other charges and fees
29

 
3

 
61

 
93

Card fees
57

 
26

 
2

 
85

Investment banking income

 
97

 
70

 
167

Trading income

 

 
53

 
53

Trust and investment management income
74

 

 
1

 
75

Retail investment services
73

 

 

 
73

Mortgage servicing related income

 

 
40

 
40

Mortgage production related income

 

 
43

 
43

Commercial real estate related income

 

 
18

 
18

Net securities gains

 

 

 

Other noninterest income
6

 

 
32

 
38

Total noninterest income

$354

 

$155

 

$320

 

$829

1 Amounts are presented in accordance with ASC Topic 606, Revenue from Contracts with Customers, except for out of scope amounts.
2 Consumer and Wholesale total noninterest income exclude $99 million and $233 million of out of scope noninterest income, respectively, which are included in the business segment results presented on a management accounting basis in Note 18, "Business Segment Reporting." Out of scope total noninterest income includes these amounts and includes ($12) million of Corporate Other noninterest income that is out of scope of ASC Topic 606.
3 The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's Consolidated Statements of Income.

 
 Three Months Ended June 30, 2017 1
(Dollars in millions)
 Consumer 2
 
 Wholesale 2
 
  Out of Scope 2, 3
 
Total
Noninterest income
 
 
 
 
 
 
 
Service charges on deposit accounts

$122

 

$29

 

$—

 

$151

Other charges and fees
33

 
3

 
67

 
103

Card fees
60

 
27

 

 
87

Investment banking income

 
89

 
58

 
147

Trading income

 

 
46

 
46

Trust and investment management income
74

 

 
2

 
76

Retail investment services
70

 

 

 
70

Mortgage servicing related income

 

 
44

 
44

Mortgage production related income

 

 
56

 
56

Commercial real estate related income

 

 
24

 
24

Net securities gains

 

 
1

 
1

Other noninterest income
7

 

 
15

 
22

Total noninterest income

$366

 

$148

 

$313

 

$827

1 Amounts for periods prior to January 1, 2018 are presented in accordance with ASC Topic 605, Revenue Recognition, and have not been restated to conform with ASC Topic 606, Revenue from Contracts with Customers.
2 Consumer and Wholesale total noninterest income exclude $107 million and $230 million of out of scope noninterest income, respectively, which are included in the business segment results presented on a management accounting basis in Note 18, "Business Segment Reporting." Out of scope total noninterest income includes these amounts and includes ($24) million of Corporate Other noninterest income that is out of scope of ASC Topic 606.
3 The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's Consolidated Statements of Income.

 
 Six Months Ended June 30, 2018 1
(Dollars in millions)
 Consumer 2
 
 Wholesale 2
 
  Out of Scope 2, 3
 
Total
Noninterest income
 
 
 
 
 
 
 
Service charges on deposit accounts

$219

 

$70

 

$—

 

$289

Other charges and fees
57

 
6

 
116

 
179

Card fees
111

 
52

 
3

 
166

Investment banking income

 
181

 
117

 
298

Trading income

 

 
95

 
95

Trust and investment management income
149

 

 
1

 
150

Retail investment services
143

 
2

 

 
145

Mortgage servicing related income

 

 
95

 
95

Mortgage production related income

 

 
79

 
79

Commercial real estate related income

 

 
42

 
42

Net securities gains

 

 
1

 
1

Other noninterest income
12

 

 
75

 
87

Total noninterest income

$691

 

$311

 

$624

 

$1,626

1 Amounts are presented in accordance with ASC Topic 606, Revenue from Contracts with Customers, except for out of scope amounts.
2 Consumer and Wholesale total noninterest income exclude $213 million and $440 million of out of scope noninterest income, respectively, which are included in the business segment results presented on a management accounting basis in Note 18, "Business Segment Reporting." Out of scope total noninterest income includes these amounts and includes ($29) million of Corporate Other noninterest income that is out of scope of ASC Topic 606.
3 The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's Consolidated Statements of Income.

 
 Six Months Ended June 30, 2017 1
(Dollars in millions)
 Consumer 2
 
 Wholesale 2
 
  Out of Scope 2, 3
 
Total
Noninterest income
 
 
 
 
 
 
 
Service charges on deposit accounts

$225

 

$74

 

$—

 

$299

Other charges and fees
64

 
6

 
128

 
198

Card fees
114

 
54

 
1

 
169

Investment banking income

 
185

 
129

 
314

Trading income

 

 
97

 
97

Trust and investment management income
149

 

 
2

 
151

Retail investment services
137

 
1

 
1

 
139

Mortgage servicing related income

 

 
102

 
102

Mortgage production related income

 

 
109

 
109

Commercial real estate related income

 

 
44

 
44

Net securities gains

 

 
1

 
1

Other noninterest income
14

 

 
37

 
51

Total noninterest income

$703

 

$320

 

$651

 

$1,674

1 Amounts for periods prior to January 1, 2018 are presented in accordance with ASC Topic 605, Revenue Recognition, and have not been restated to conform with ASC Topic 606, Revenue from Contracts with Customers.
2 Consumer and Wholesale total noninterest income exclude $242 million and $451 million of out of scope noninterest income, respectively, which are included in the business segment results presented on a management accounting basis in Note 18, "Business Segment Reporting." Out of scope total noninterest income includes these amounts and includes ($42) million of Corporate Other noninterest income that is out of scope of ASC Topic 606.
3 The Company presents out of scope noninterest income for the purpose of reconciling noninterest income amounts within the scope of ASC Topic 606 to noninterest income amounts presented on the Company's Consolidated Statements of Income.


Service Charges on Deposit Accounts
Service charges on deposit accounts represent fees relating to the Company’s various deposit products. These fees include account maintenance, cash management, treasury management, wire transfers, overdraft and other deposit-related fees. The Company’s execution of the services related to these fees represents its related performance obligations. Each of these performance obligations are either satisfied over time or at a point in time as the services are provided to the customer. The Company is the principal when rendering these services. Payments for services provided are either withdrawn from the customer’s account as services are rendered or in the billing period following the completion of the service. The transaction price for each of these fees is based on the Company’s predetermined fee schedule.

Other Charges and Fees
Other charges and fees consist primarily of loan commitment and letter of credit fees, operating lease revenue, ATM fees, insurance revenue, and miscellaneous service charges including wire fees and check cashing fees. Loan commitment and letter of credit fees and operating lease revenue are out of scope of ASC Topic 606.
The Company’s execution of the services related to the fees within the scope of ASC Topic 606 represents its related performance obligations, which are either satisfied at a point in time or over time as services are rendered. ATM fees and miscellaneous service charges are recognized at a point in time as the services are provided.
Insurance commission revenue is earned through the sale of insurance products. The commissions are recognized as revenue when the customer executes an insurance policy with the insurance carrier. In some cases, the Company receives payment of trailing commissions each year when the customer pays its annual premium. For both the three and six months ended June 30, 2018, the Company recognized an immaterial amount of insurance trailing commissions related to performance obligations satisfied in prior periods.
    
Card Fees
Card fees consist of interchange fees from credit and debit cards, merchant acquirer revenue, and other card related services. Interchange fees are earned by the Company each time a request for payment is initiated by a customer at a merchant for which the Company transfers the funds on behalf of the customer. Interchange rates are set by the payment network and are based on purchase volumes and other factors. Interchange fees are received daily and recognized at a point in time when the card transaction is processed. The Company is considered an agent of the customer and incurs costs with the payment network to facilitate the interchange with the merchant; therefore, the related payment network expense is recognized as a reduction of card fees. Prior to the adoption of ASC Topic 606, these expenses were recognized in Outside processing and software in the Company's Consolidated Statements of Income. The Company offers rewards and/or rebates to its customers based on card usage. The costs associated with these programs are recognized as a reduction of card fees.
The Company also has a revenue sharing agreement with a merchant acquirer. The Company’s referral of a merchant to the merchant acquirer represents its related performance obligation, which is satisfied at a point in time when the referral is made. Monthly revenue is estimated based on the expected amount of transactions processed. Payments are generally made by the merchant acquirer quarterly in the month following the quarter in which the services are rendered.

Investment Banking Income
Investment banking income is comprised primarily of securities underwriting fees, advisory fees, and loan syndication fees. The Company assists corporate clients in raising capital by offering equity or debt securities to potential investors. The underwriting fees are earned on the trade date when the Company, as a member of an underwriting syndicate, purchases the securities from the issuer and sells the securities to third party investors. Each member of the syndicate is responsible for selling its portion of the underwriting and is liable for the proportionate costs of the underwriting; therefore, the Company’s portion of underwriting revenue and expense is presented gross within noninterest income and noninterest expense. Prior to the adoption of ASC Topic 606, underwriting expense was recorded as a reduction of investment banking income. The transaction price is based on a percentage of the total transaction amount and payments are settled shortly after the trade date.
Loan syndication fees are typically recognized at the closing of a loan syndication transaction. These fees are out of the scope of ASC Topic 606.
The Company also provides merger and acquisition advisory services, including various activities such as business valuation, identification of potential targets or acquirers, and the issuance of fairness opinions. The Company’s execution of these advisory services represents its related performance obligations. The performance obligations relating to advisory services are fulfilled at a point in time upon completion of the contractually specified merger or acquisition. The transaction price is based on contractually specified terms agreed upon with the client for each advisory service. Additionally, payments for advisory services consist of upfront retainer fees and success fees at the date the related merger or acquisition is closed. The retainer fees are typically paid upfront, which creates a contract liability. At June 30, 2018, the contract liability relating to these retainer fees was immaterial.
Revenue related to trade execution services is earned on the trade date and recognized at a point in time. The fees related to trade execution services are due on the settlement date.

Trading Income
The Company recognizes trading income as a result of gains and losses from the sales of trading account assets and liabilities. The Company also recognizes trading income as a result of changes in the fair value of trading account assets and liabilities that it holds. The Company’s trading accounts include various types of debt and equity securities, trading loans, and derivative instruments. For additional information relating to trading income, see Note 15, “Derivative Financial Instruments,” and Note 16, “Fair Value Election and Measurement.”

Trust and Investment Management Income
Trust and investment management income includes revenue from custodial services, trust administration, financial advisory services, employee benefit solutions, and other services provided to customers within the Consumer business segment.
The Company generally recognizes trust and investment management revenue over time as services are rendered. Revenue is based on either a percentage of the market value of the assets under management, or advisement, or fixed based on the services provided to the customer. Fees are generally swept from the customer’s account one billing period in arrears based on the prior period’s assets under management or advisement.
Retail Investment Services
Retail investment services consists primarily of investment management, selling and distribution services, and trade execution services. The Company’s execution of these services represents its related performance obligations.
Investment management fees are generally recognized over time as services are rendered and are based on either a percentage of the market value of the assets under management, or advisement, or fixed based on the services provided to the customer. The fees are calculated quarterly and are usually collected at the beginning of the period from the customer’s account and recognized ratably over the related billing period.
The Company also offers selling and distribution services and earns commissions through the sale of annuity and mutual fund products. The Company acts as an agent in these transactions and recognizes revenue at a point in time when the customer enters into an agreement with the product carrier. The Company may also receive trailing commissions and 12b-1 fees related to mutual fund and annuity products, and recognizes this revenue in the period that they are realized since the revenue cannot be accurately predicted at the time the policy becomes effective. The Company recognized revenue of $13 million and $26 million for the three and six months ended June 30, 2018, respectively, which relates to mutual fund 12b-1 fees and annuity trailing commissions from performance obligations satisfied in periods prior to June 30, 2018.
Trade execution commissions are earned and recognized on the trade date, when the Company executes a trade for a customer. Payment for the trade execution is due on the settlement date.

Mortgage Servicing Related Income
The Company recognizes as assets the rights to service mortgage loans, either when the loans are sold and the associated servicing rights are retained or when servicing rights are purchased from a third party. Mortgage servicing related income includes servicing fees, modification fees, fees for ancillary services, other fees customarily associated with servicing arrangements, gains or losses from hedging, and changes in the fair value of residential MSRs inclusive of decay resulting from the realization of monthly net servicing cash flows. For additional information relating to mortgage servicing related income, see Note 1, “Significant Accounting Policies,” in the Company’s 2017 Annual Report on Form 10-K, and Note 8, “Goodwill and Other Intangible Assets,” Note 15, “Derivative Financial Instruments,” and Note 16, “Fair Value Election and Measurement,” in this Form 10-Q.

Mortgage Production Related Income
Mortgage production related income is comprised primarily of activity related to the sale of consumer mortgage loans as well as loan origination fees such as closing charges, document review fees, application fees, other loan origination fees, and loan processing fees. For additional information relating to mortgage production related income, see Note 1, “Significant Accounting Policies,” in the Company’s 2017 Annual Report on Form 10-K, and Note 15, “Derivative Financial Instruments,” and Note 16, “Fair Value Election and Measurement,” in this Form 10-Q.

Commercial Real Estate Related Income
Commercial real estate related income consists primarily of origination fees, such as loan placement and broker fees, gains and losses on the sale of commercial loans, commercial mortgage loan servicing fees, income from community development investments, gains and losses from the sale of structured real estate, and other fee income, such as asset advisory fees. For additional information relating to commercial real estate related income, see Note 1, “Significant Accounting Policies,” in the Company’s 2017 Annual Report on Form 10-K, and Note 8, “Goodwill and Other Intangible Assets,” Note 15, “Derivative Financial Instruments,” and Note 16, “Fair Value Election and Measurement,” in this Form 10-Q.

Net Securities Gains or Losses
The Company recognizes net securities gains or losses primarily as a result of the sale of securities AFS and the recognition of any OTTI on securities AFS. For additional information relating to net securities gains or losses, see Note 5, “Securities Available for Sale.”

Other Noninterest Income
Other noninterest income within the scope of ASC Topic 606 consists primarily of fees from the sale of custom checks. The Company serves as an agent for customers by connecting them with a third party check provider. Revenue from such sales are earned in the form of commissions from the third party check provider and is recognized at a point in time on the date the customer places an order. Commissions for personal check orders are credited to revenue on an ongoing basis, and commissions for commercial check orders are received quarterly in arrears.
Other noninterest income also includes income from bank-owned life insurance policies that is not within the scope of ASC Topic 606. Income from bank-owned life insurance primarily represents changes in the cash surrender value of such life insurance policies held on certain key employees, for which the Company is the owner and beneficiary. Revenue is recognized in each period based on the change in the cash surrender value during the period.

Practical Expedients and Other
The Company has elected the practical expedient to exclude disclosure of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which the Company has the right to invoice for services performed.
The Company pays sales commissions as a cost to obtain certain contracts within the scope of ASC Topic 606; however, sales commissions relating to these contracts are generally expensed when incurred because the amortization period would be one year or less. Sales commissions are recognized as employee compensation within Noninterest expense on the Company’s Consolidated Statements of Income.
At June 30, 2018, the Company does not have any material contract assets, liabilities, or other receivables recorded on its Consolidated Balance Sheets, relating to its revenue streams within the scope of ASC Topic 606. Additionally, the Company's contracts generally do not contain terms that require significant judgment to determine the amount of revenue to recognize.
v3.10.0.1
Federal Funds Sold and Securities Financing Activities
6 Months Ended
Jun. 30, 2018
Securities Purchased under Agreements to Resell [Abstract]  
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]
NOTE 3 - FEDERAL FUNDS SOLD AND SECURITIES FINANCING ACTIVITIES
Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell
Fed Funds sold and securities borrowed or purchased under agreements to resell were as follows:
(Dollars in millions)
June 30, 2018
 
December 31, 2017
Fed funds sold

$—

 

$65

Securities borrowed
545

 
298

Securities purchased under agreements to resell
820

 
1,175

Total Fed funds sold and securities borrowed or purchased under agreements to resell

$1,365

 

$1,538


Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which the securities will be subsequently resold, plus accrued interest. Securities borrowed are primarily collateralized by corporate securities. The Company borrows securities and purchases securities under agreements to resell as part of its securities financing activities. On the acquisition date of these securities, the Company and the related counterparty agree on the amount of collateral required to secure the principal amount loaned under these arrangements. The Company monitors collateral values daily and calls for additional collateral to be provided as warranted under the respective agreements. At June 30, 2018 and December 31, 2017, the total market value of collateral held was $1.4 billion and $1.5 billion, of which $138 million and $177 million was repledged, respectively.

Securities Sold Under Agreements to Repurchase
Securities sold under agreements to repurchase are accounted for as secured borrowings. The following table presents the Company’s related activity, by collateral type and remaining contractual maturity:
 
June 30, 2018
 
December 31, 2017
(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

$92

 

$—

 

$—

 

$92

 

$95

 

$—

 

$—

 

$95

Federal agency securities
86

 
17

 

 
103

 
101

 
15

 

 
116

MBS - agency
726

 
100

 

 
826

 
694

 
135

 

 
829

CP

 

 

 

 
19

 

 

 
19

Corporate and other debt securities
360

 
146

 
40

 
546

 
316

 
88

 
40

 
444

Total securities sold under agreements to repurchase

$1,264

 

$263

 

$40

 

$1,567

 

$1,225

 

$238

 

$40

 

$1,503



For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of the collateral pledged. This risk is managed by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions.

Netting of Securities - Repurchase and Resell Agreements
The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements or similar agreements. The Company's derivatives that are subject to enforceable master netting agreements or similar agreements are discussed in Note 15, "Derivative Financial Instruments."
The following table presents the Company's securities borrowed or purchased under agreements to resell and securities sold under agreements to repurchase that are subject to MRAs. Generally, MRAs require collateral to exceed the asset or liability recognized on the balance sheet. Transactions subject to these agreements are treated as collateralized financings, and those with a single counterparty are permitted to be presented net on the Company's Consolidated Balance Sheets, provided certain criteria are met that permit balance sheet netting. At June 30, 2018 and December 31, 2017, there were no such transactions subject to legally enforceable MRAs that were eligible for balance sheet netting. The following table includes the amount of collateral pledged or received related to exposures subject to enforceable MRAs. While these agreements are typically over-collateralized, the amount of collateral presented in this table is limited to the amount of the related recognized asset or liability for each counterparty.
(Dollars in millions)
Gross
Amount
 
Amount
Offset
 
Net Amount
Presented in
Consolidated
Balance Sheets
 
Held/Pledged Financial
Instruments
 
Net
Amount
June 30, 2018
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,365

 

$—

 

$1,365

1 

$1,346

 

$19

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,567

 

 
1,567

 
1,566

 
1

 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,473

 

$—

 

$1,473

1