SUNTRUST BANKS INC, 10-Q filed on 5/6/2019
Quarterly Report
v3.19.1
Document and Entity Information - $ / shares
3 Months Ended
Mar. 31, 2019
Apr. 30, 2019
Dec. 31, 2018
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 Mar. 31, 2019    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus Q1    
Amendment Flag false    
Entity Emerging Growth Company false    
Entity Small Business false    
Entity Common Stock, Shares Outstanding   443,825,510  
Common Stock, Par or Stated Value Per Share $ 1.00   $ 1.00
v3.19.1
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Interest Income    
Interest and Fee Income, Loans and Leases Held-in-portfolio $ 1,697 $ 1,398
Interest and fees on loans held for sale 13 21
Interest and Dividend Income, Securities, Available-for-sale 221 206
Trading account interest and other 56 43
Total interest income 1,987 1,668
Interest Expense    
Interest Expense, Deposits 249 131
Interest Expense, Long-term Debt 125 74
Interest on other borrowings 69 22
Total interest expense 443 227
Net, interest income 1,544 1,441 [1]
Provision for Loan, Lease, and Other Losses 153 [2] 28 [1],[3]
Interest Income (Expense), after Provision for Loan Loss 1,391 1,413
Noninterest Income    
Service charges on deposit accounts 137 146
Other charges and fees [4] 87 85
Card fees 82 81
Investment Banking Revenue [4] 130 133
Trading Gain (Loss) 60 42
Mortgage Related Income [5] 100 90
Trust and investment management income 71 75
Retail investment services 69 72
Commercial Real Estate Related Income 24 23
Debt and Equity Securities, Gain (Loss) 0 1
Noninterest Income, Other Operating Income 24 48
Noninterest Income 784 796 [1]
Noninterest Expense    
Employee compensation 676 707
Other Labor-related Expenses 148 146
Outside processing and software 238 206
Net occupancy expense 102 94
Merger-Related Costs 45 0
Marketing and Advertising Expense 41 41
Equipment Expense 42 40
Federal Deposit Insurance Corporation Premium Expense 19 41
Operating losses 22 6
Amortization 15 15
Other Noninterest Expense 141 121
Noninterest Expense 1,489 1,417 [1]
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest 686 792
Income Tax Expense (Benefit) 104 147
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 582 645 [1]
Net Income (Loss) Attributable to Noncontrolling Interest 2 2 [1]
Net Income (Loss) Attributable to Parent 580 643 [1]
Preferred Stock Dividends and Other Adjustments 26 31
Net Income (Loss) Available to Common Stockholders, Basic $ 554 $ 612
Earnings Per Share, Diluted $ 1.24 $ 1.29
Earnings Per Share, Basic 1.25 1.31
Common Stock, Dividends, Per Share, Declared $ 0.50 $ 0.40
Weighted Average Number of Shares Outstanding, Diluted 446,662 473,620
Weighted Average Number of Shares Outstanding, Basic 443,566 468,723
[1] 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.
[2] 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.
[3] 3 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.
[4] Beginning July 1, 2018, the Company began presenting bridge commitment fee income related to capital market transactions in Investment banking income on the Consolidated Statements of Income. For periods prior to July 1, 2018, this income was previously presented in Other charges and fees and has been reclassified to Investment banking income for comparability.
[5] Beginning with the 2018 Form 10-K, the Company began presenting Mortgage production related income and Mortgage servicing related income as a single line item on the Consolidated Statements of Income titled Mortgage related income. Prior periods have been conformed to this updated presentation for comparability.
v3.19.1
Consolidated Statements of Comprehensive Income Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Statement of Comprehensive Income [Abstract]    
Net Income (Loss) Attributable to Parent $ 580 $ 643 [1]
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax 377 (425)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax 76 (124)
Other Comprehensive Income (Loss), Brokered Time Deposits, Net of Tax (1) 1
Other Comprehensive Income (Loss), Long Term Debt, Adjustment, Net of Tax (1) 2
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax 3 (2)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent 454 (548)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent $ 1,034 $ 95
[1] 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.
v3.19.1
Consolidated Statements of Comprehensive Income Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Statement of Comprehensive Income [Abstract]    
Other Comprehensive Income (Loss), Securities, Available-for-sale, Tax $ 116 $ (130)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax 24 (38)
Other Comprehensive Income (Loss), Brokered Time Deposits, Tax 0 0
Other Comprehensive Income (Loss), Long Term Debt, Adjustment, Tax 0 1
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax $ 2 $ 1
v3.19.1
Consolidated Balance Sheets - USD ($)
shares in Thousands, $ in Millions
Mar. 31, 2019
Dec. 31, 2018
Assets    
Cash and Due from Banks $ 4,521 $ 5,791
Federal Funds Sold and Securities Purchased under Agreements to Resell 1,386 1,679
Interest-bearing Deposits in Banks and Other Financial Institutions 25 25
Cash and cash equivalents 5,932 7,495
Debt Securities, Trading, and Equity Securities, FV-NI [1] 6,259 5,506
Available-for-sale Securities [2] 31,853 31,442
Loans Held for Sale [3] 1,781 1,468
Loans held for investment [4] 155,233 151,839
Loans and Leases Receivable, Allowance (1,643) (1,615)
Net loans 153,590 150,224
Property, Plant and Equipment, Net 1,997 2,024
Goodwill 6,331 6,331
Intangible Assets, Net (Excluding Goodwill) 1,963 2,062
Other Assets 10,719 8,991
Total assets 220,425 215,543
Liabilities and Shareholders' Equity    
Noninterest-bearing consumer and commercial deposits 40,345 40,770
Interest-bearing Deposit Liabilities 121,807 121,819
Total deposits 162,152 162,589
Federal Funds Purchased 1,169 2,141
Securities Sold under Agreements to Repurchase 1,962 1,774
Other Short-term Borrowings 7,259 4,857
Long-term Debt [5] 17,395 15,072
Trading liabilities 1,609 1,604
Other Liabilities 4,056 3,226
Total liabilities 195,602 191,263
Preferred Stock, Value, Outstanding 2,025 2,025
Common Stock, Value, Outstanding 553 553
Additional Paid in Capital 8,938 9,022
Retained earnings 19,882 19,522
Treasury Stock, Value [6] (5,609) (5,422)
Accumulated Other Comprehensive Income (Loss), Net of Tax (966) (1,420)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest 24,823 24,280
Liabilities and Equity $ 220,425 $ 215,543
Common Stock, Shares, Outstanding [7] 443,713 446,888
Common shares authorized 750,000 750,000
Preferred Stock, Shares Outstanding 20 20
Preferred Stock, Shares Authorized 50,000 50,000
Treasury shares of common stock 109,071 105,896
Treasury Stock and Other    
Liabilities and Shareholders' Equity    
Treasury Stock, Value $ (5,710)  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest [8] (5,609) $ (5,422)
Stockholders' Equity Attributable to Noncontrolling Interest 101 103
Variable Interest Entity, Primary Beneficiary [Member]    
Assets    
Loans held for investment 147 153
Liabilities and Shareholders' Equity    
Long-term Debt $ 156 $ 161
Restricted Stock [Member]    
Liabilities and Shareholders' Equity    
Common Stock, Shares, Outstanding 7 7
Trading Assets [Member]    
Liabilities and Shareholders' Equity    
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value $ 1,382 $ 1,442
Available-for-sale Securities [Member]    
Liabilities and Shareholders' Equity    
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value $ 210 $ 222
[1] Includes trading securities pledged as collateral where counterparties have the right to sell or repledge the collateral of $1,382 million and $1,442 million at March 31, 2019 and December 31, 2018, respectively.
[2] Includes securities AFS pledged as collateral where counterparties have the right to sell or repledge the collateral of $210 million and $222 million at March 31, 2019 and December 31, 2018, respectively.
[3] Includes $1.1 billion and $1.2 billion of LHFS measured at fair value at March 31, 2019 and December 31, 2018, respectively.
[4] Includes loans of consolidated VIEs of $147 million and $153 million at March 31, 2019 and December 31, 2018, respectively.
[5] Includes debt of consolidated VIEs of $156 million and $161 million at March 31, 2019 and December 31, 2018, respectively.
[6] Includes noncontrolling interest of $101 million and $103 million at March 31, 2019 and December 31, 2018, respectively.
[7] Includes restricted shares of 7 thousand and 7 thousand at March 31, 2019 and December 31, 2018, respectively.
[8] At March 31, 2019, includes ($5,710) million for treasury stock and $101 million for noncontrolling interest.At March 31, 2018, includes ($3,953) million for treasury stock, less than ($1) million for the compensation element of restricted stock, and $101 million for noncontrolling interest.
v3.19.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Millions
Mar. 31, 2019
Dec. 31, 2018
Loans Held-for-sale, Fair Value Disclosure $ 1,100 $ 1,200
Loans Receivable, Fair Value Disclosure $ 134 $ 163
Common stock, par value $ 1.00 $ 1.00
Loans and Leases Receivable, Gross [1] $ 155,233 $ 151,839
Long-term Debt [2] $ 17,395 $ 15,072
Common Stock, Shares, Outstanding [3] 443,713 446,888
Variable Interest Entity, Primary Beneficiary [Member]    
Loans and Leases Receivable, Gross $ 147 $ 153
Long-term Debt 156 161
Treasury Stock and Other    
Stockholders' Equity Attributable to Noncontrolling Interest 101 103
Consumer Portfolio Segment [Member]    
Loans Receivable, Fair Value Disclosure 134 163
Loans and Leases Receivable, Gross 71,504 70,899
Residential Portfolio Segment [Member]    
Loans and Leases Receivable, Gross $ 38,300 $ 38,900
Restricted Stock [Member]    
Common Stock, Shares, Outstanding 7 7
Available-for-sale Securities [Member]    
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value $ 210 $ 222
Fair Value, Measurements, Recurring [Member]    
Loans Held-for-sale, Fair Value Disclosure 1,059 1,178
Loans Receivable, Fair Value Disclosure 134 163
Servicing Asset at Fair Value, Amount 1,883 1,983
Other Assets, Fair Value Disclosure 85 95
Long-term Debt, Fair Value 296 289
Brokered Time Deposits [Member] | Fair Value, Measurements, Recurring [Member]    
Deposits, Fair Value Disclosure 473 403
Mortgage Servicing Rights, Fair Value [Member]    
Servicing Asset at Fair Value, Amount $ 1,883 $ 1,983
[1] Includes loans of consolidated VIEs of $147 million and $153 million at March 31, 2019 and December 31, 2018, respectively.
[2] Includes debt of consolidated VIEs of $156 million and $161 million at March 31, 2019 and December 31, 2018, respectively.
[3] Includes restricted shares of 7 thousand and 7 thousand at March 31, 2019 and December 31, 2018, respectively.
v3.19.1
Consolidated Statements of Shareholders' Equity - USD ($)
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     471,000        
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]              
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income [2] (10)       144   (154) [3]
Net Income (Loss) Attributable to Parent 643 [4]       643    
Other Comprehensive Income (Loss), Net of Tax (548)           (548)
Noncontrolling Interest, Period Increase (Decrease) (2)         (2)  
Dividends, Common Stock, Cash (187)       (187)    
Dividends, Preferred Stock, Cash [5] (31)       (31)    
Stock Redeemed or Called During Period, Value (450) (450)          
Treasury Stock, Shares, Acquired     (5,000)        
Treasury Stock, Value, Acquired, Cost Method (330)         (330)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period     1,000        
Stock Issued During Period, Value, Stock Options Exercised 32         32  
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 (4)     (40) (2) 38  
Total shareholders' equity at Mar. 31, 2018 $ 24,269 2,025 $ 552 8,960 18,107 (3,853) (1,522)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Shares, Outstanding     470,000        
Common Stock, Shares, Outstanding 446,888 [6]   447,000        
Total shareholders' equity at Dec. 31, 2018 $ 24,280 2,025 $ 553 9,022 19,522 (5,422) (1,420)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income [7] 31       31    
Net Income (Loss) Attributable to Parent 580       580    
Other Comprehensive Income (Loss), Net of Tax 454           454
Noncontrolling Interest, Period Increase (Decrease) (2)         (2)  
Dividends, Common Stock, Cash (222)       (222)    
Dividends, Preferred Stock, Cash [5] (26)       (26)    
Treasury Stock, Shares, Acquired     (4,000)        
Treasury Stock, Value, Acquired, Cost Method (250)         (250)  
Stock Issued During Period, Value, Stock Options Exercised 2     (1)   3  
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures     1,000        
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures (24)     (83) (3) 62  
Total shareholders' equity at Mar. 31, 2019 $ 24,823 $ 2,025 $ 553 $ 8,938 $ 19,882 $ (5,609) $ (966)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Common Stock, Shares, Outstanding 443,713 [6]   444,000        
[1] At March 31, 2019, includes ($5,710) million for treasury stock and $101 million for noncontrolling interest.At March 31, 2018, includes ($3,953) million for treasury stock, less than ($1) million for the compensation element of restricted stock, and $101 million for noncontrolling interest.
[2] 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,” to the Company's 2018 Annual Report on Form 10-K for additional information.
[3] Related to the Company’s early adoption of ASU 2018-02 on January 1, 2018. See Note 1, “Significant Accounting Policies,” to the Company's 2018 Annual Report on Form 10-K for additional information.
[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] For the three months ended March 31, 2019, dividends were $1,000 per share for both Series A and B Preferred Stock, $1,406 per share for Series F Preferred Stock, $1,263 per share for Series G Preferred Stock, and $1,281 per share for Series H Preferred Stock.For the three months ended March 31, 2018, dividends were $1,000 per share for both Series A and B Preferred Stock, $1,469 per share for Series E Preferred Stock, $1,406 per share for Series F Preferred Stock, $1,038 per share for Series G Preferred Stock, and $1,281 per share for Series H Preferred Stock.
[6] Includes restricted shares of 7 thousand and 7 thousand at March 31, 2019 and December 31, 2018, respectively.
[7] Related to the Company’s adoption of ASU 2016-02 on January 1, 2019. See Note 1, “Significant Accounting Policies,” for additional information.
v3.19.1
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Treasury Stock, Value [1] $ (5,609)   $ (5,422)
Common stock dividends, per share $ 0.50 $ 0.40  
Treasury Stock and Other      
Treasury Stock, Value $ (5,710) $ (3,953)  
Deferred Compensation Equity   (1)  
Stockholders' Equity Attributable to Noncontrolling Interest $ 101 $ 101 $ 103
Series A Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid $ 1,000 $ 1,000  
Series B Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid 1,000 1,000  
Series E Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid   1,469  
Series F Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid 1,406 1,406  
Series G Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid 1,263 1,038  
Series H Preferred Stock [Member]      
Preferred Stock, Dividends, Per Share, Cash Paid $ 1,281 $ 1,281  
[1] Includes noncontrolling interest of $101 million and $103 million at March 31, 2019 and December 31, 2018, respectively.
v3.19.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Cash Flows from Operating Activities:    
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 582 $ 645 [1]
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:    
Depreciation, Amortization and Accretion, Net 172 175
Payments to Acquire Mortgage Servicing Rights (MSR) (67) (80)
Provisions For Credit Losses And Foreclosed Properties 156 30
Stock Option Compensation And Amortization Of Restricted Stock Compensation 37 56
Debt and Equity Securities, Gain (Loss) 0 (1)
Gain (Loss) on Sale of Loans, Leases, and Other Assets (46) 11
Net decrease/(increase) in loans held for sale (265) (100)
Net decrease/(increase) in Debt Securities, Trading, and Equity Securities, FV-NI (753) (182)
Net decrease/(increase) in other assets [2] (354) (644)
Net increase/(decrease) in Other Operating Liabilities (285) (110)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations (823) (200)
Cash Flows from Investing Activities:    
Proceeds from Maturities, Prepayments and Calls of Debt Securities, Available-for-sale 853 858
Proceeds from Sale of Available-for-sale Securities 111 1,663
Payments to Acquire Available-for-sale Securities (962) (2,689)
Proceeds from (payments for) Originations and Purchases of Loans and Leases Held-for-investment [2] 3,625 (413)
Proceeds from Sale of Loans Held-for-investment 40 36
Payments for (Proceeds from) Mortgage Servicing Rights (1) (60)
Capital expenditures (81) (67)
Proceeds from Sale of Other Real Estate 29 52
Payments for (Proceeds from) Other Investing Activities 8 3
Net Cash Provided by (Used in) Investing Activities, Continuing Operations (3,628) 209
Cash Flows from Financing Activities:    
Net (decrease)/increase in total deposits (437) 1,599
Net increase/(decrease) in funds purchased, securities sold under agreements to repurchase, and other short-term borrowings 1,618 (1,209)
Proceeds from Issuance of Long-term Debt 2,264 1,311
Repayment of long-term debt (35) (333)
Payments for Repurchase of Preferred Stock and Preference Stock 0 (450)
Payments for Repurchase of Common Stock (250) (330)
Common and preferred dividends paid (225) (197)
Payments Related to Tax Withholding for Share-based Compensation (49) (42)
Proceeds from the exercise of stock options 2 34
Net Cash Provided by (Used in) Financing Activities, Continuing Operations 2,888 383
Cash and Cash Equivalents, Period Increase (Decrease) (1,563) 392
Cash and cash equivalents 7,495 6,912
Cash and cash equivalents 5,932 7,304
Supplemental Disclosures:    
Transfer of Loans Held-for-sale to Portfolio Loans 4 6
Transfer of Portfolio Loans and Leases to Held-for-sale 614 204
Transfer to Other Real Estate 10 $ 19
Interest Received from Sales-Type and Direct Financing Leases $ 34  
[1] 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.
[2] Pursuant to the Company’s adoption of ASU 2016-02 on January 1, 2019, it began including the interest portion of lessee payments received from sales-type and direct financing leases, which totaled $34 million for the three months ended March 31, 2019, within operating activities, with the principal portion of lessee payments remaining within investing activities. For periods prior to January 1, 2019, interest payments were not retrospectively reclassified and remain within investing activities. See Note 1, “Significant Accounting Policies,” for additional information.
v3.19.1
Significant Accounting Policies
3 Months Ended
Mar. 31, 2019
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 2018 Annual Report on Form 10-K.
Changes in Significant Accounting Policies
Pursuant to the Company’s adoption of ASC Topic 842 as of January 1, 2019, the Company updated its accounting policy related to leases. See Note 10, “Leases,” for new disclosures and policy information related to the Company’s leases. There were no other significant changes to the Company’s accounting policies from those disclosed in the Company’s 2018 Annual Report on Form 10-K that could have a material effect on the Company's financial statements.
Subsequent Events
The Company evaluated events that occurred between March 31, 2019 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 three months ended March 31, 2019 or not yet adopted as of March 31, 2019, 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 2019
ASU 2016-02, Leases (Topic 842) and subsequent related ASUs
These ASUs create and amend 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. These ASUs do 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. Furthermore, there are several new qualitative and quantitative disclosures required for lessees and lessors, including updated guidance around the presentation of certain cash receipts on the Company’s Consolidated Statements of Cash Flows.

Upon transition, lessees and lessors have the option to either:
(i) Recognize and measure leases at the beginning of the earliest period presented using a modified retrospective transition approach; or
(ii) Apply a modified retrospective transition approach as of the date of adoption.

January 1, 2019
The Company adopted these ASUs on January 1, 2019, using a modified retrospective transition approach as of the date of adoption, which resulted in the recognition of $1.2 billion and $1.3 billion in right-of-use assets and associated lease liabilities, respectively, arising from operating leases in which the Company is the lessee, on the Company's Consolidated Balance Sheets. The amount of the right-of-use assets and associated lease liabilities recorded upon adoption was based primarily on the present value of unpaid future minimum lease payments, the amount of which was based on the population of leases in effect at the date of adoption. At March 31, 2019, the Company’s right-of-use assets and lease liabilities recorded on its Consolidated Balance Sheets totaled $1.2 billion and $1.3 billion, respectively.
 
Upon adoption, the Company also recognized a cumulative effect adjustment of $31 million to increase the beginning balance of retained earnings (as of January 1, 2019) for deferred gains on sale-leaseback transactions that occurred prior to the date of adoption and for other transition provisions. These ASUs did not have a material impact on the timing of expense or income recognition in the Company’s Consolidated Statements of Income.

Furthermore, effective January 1, 2019, the Company prospectively changed its presentation of certain cash receipts related to sales-type and direct financing leases in which it is the lessor on its Consolidated Statements of Cash Flows. Specifically, the Company began including on its Consolidated Statements of Cash Flows the interest portion of lessee payments received from sales-type and direct financing leases within operating activities, with the principal portion remaining within investing activities. For periods prior to the date of adoption, interest payments were not retrospectively reclassified and remain within investing activities. For the three months ended March 31, 2019, the Company included $34 million of interest payments received related to these sales-type and direct financing leases within operating activities on its Consolidated Statements of Cash Flows.

For additional information and required disclosures related to ASC 842, see Note 10, “Leases.”


Standard
Description
Required Date of Adoption
Effect on the Financial Statements or Other Significant Matters
Standards Not Yet Adopted
ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326) and subsequent related ASUs
These ASUs create and amend ASC Topic 326, Financial Instruments - Credit Losses, which replaces 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.

Although the current expected credit loss methodology does not apply to AFS debt securities, the ASU does require 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 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 credit loss forecasting process is being implemented. In conjunction with this implementation, the Company is modifying the internal control environment, as appropriate. The Company plans to perform parallel runs of its new methodology beginning in the second quarter of 2019, prior to adoption of the ASU.

The Company plans to adopt these ASUs on January 1, 2020, and is evaluating the impact that these ASUs 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
This 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. This ASU requires an entity to recognize an impairment charge for the amount by which a reporting unit's carrying amount exceeds its fair value, with the loss limited to 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 qualitative goodwill impairment assessment performed as of October 1, 2018, there were no reporting units for which it was more-likely-than-not that the carrying amount of a reporting unit exceeded its respective fair value; therefore, this ASU would not currently have an impact on the Company’s Consolidated Financial Statements or related disclosures. However, if subsequent to adoption, the carrying amount of a reporting unit exceeds its respective fair value, the Company would be required to recognize an impairment charge for the amount that the carrying value exceeds the fair value.
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

This ASU amends ASC Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software, to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company may apply this ASU either retrospectively, or prospectively to all implementation costs incurred after the date of adoption.

January 1, 2020

Early adoption is permitted.

The Company’s current accounting policy for capitalizing implementation costs incurred in a hosting arrangement generally aligns with the requirements of this ASU; therefore, the Company's adoption of this ASU is not expected to have a material impact on the Company’s Consolidated Financial Statements or related disclosures.

v3.19.1
Revenue Recognition (Notes)
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block] NOTE 2REVENUE RECOGNITION
The following tables reflect the Company’s noninterest income disaggregated by financial statement line item, business segment, and by the amount of each revenue stream that is in scope and out of scope of ASC Topic 606, Revenue from Contracts with Customers. Refer to Note 1, “Significant Accounting Policies,” and Note 2, “Revenue Recognition,” to
the Company's 2018 Annual Report on Form 10-K, for information regarding the Company's accounting policies for recognizing noninterest income, including the nature and timing of such revenue streams. The Company's contracts with customers generally do not contain terms that require significant judgment to determine the amount of revenue to recognize.
 
Three Months Ended March 31, 2019
(Dollars in millions)
 Consumer 1
 
 Wholesale 1
 
  Out of Scope 1, 2
 
Total
Noninterest income
 
 
 
 
 
 
 
Service charges on deposit accounts

$104

 

$33

 

$—

 

$137

Other charges and fees 3
27

 
4

 
56

 
87

Card fees
55

 
26

 
1

 
82

Investment banking income

 
72

 
58

 
130

Trading income

 

 
60

 
60

Mortgage related income

 

 
100

 
100

Trust and investment management income
71

 

 

 
71

Retail investment services 4
69

 

 

 
69

Commercial real estate related income

 

 
24

 
24

Net securities gains/(losses)

 

 

 

Other noninterest income
6

 

 
18

 
24

Total noninterest income

$332

 

$135

 

$317

 

$784


1 
Consumer total noninterest income and Wholesale total noninterest income exclude $114 million and $229 million of out of scope noninterest income, respectively, which are included in the business segment results presented on a management accounting basis in Note 19, "Business Segment Reporting." Out of scope total noninterest income includes these amounts and also includes ($26) million of Corporate Other noninterest income that is not subject to ASC Topic 606.
2 
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.
3 
The Company recognized an immaterial amount of insurance trailing commissions, the majority of which related to performance obligations satisfied in prior periods.
4 
The Company recognized $11 million of mutual fund 12b-1 fees and annuity trailing commissions, the majority of which related to performance obligations satisfied in periods prior to March 31, 2019.

 
Three Months Ended March 31, 2018
(Dollars in millions)
 Consumer 1
 
 Wholesale 1
 
  Out of Scope 1, 2
 
Total
Noninterest income
 
 
 
 
 
 
 
Service charges on deposit accounts

$104

 

$42

 

$—

 

$146

Other charges and fees 3, 4
28

 
3

 
54

 
85

Card fees
54

 
26

 
1

 
81

Investment banking income 3

 
86

 
47

 
133

Trading income

 

 
42

 
42

Mortgage related income

 

 
90

 
90

Trust and investment management income
75

 

 

 
75

Retail investment services 5
71

 
1

 

 
72

Commercial real estate related income

 

 
23

 
23

Net securities gains/(losses)

 

 
1

 
1

Other noninterest income
6

 

 
42

 
48

Total noninterest income

$338

 

$158

 

$300

 

$796


1 
Consumer total noninterest income and Wholesale total noninterest income exclude $112 million and $182 million of out of scope noninterest income, respectively, which are included in the business segment results presented on a management accounting basis in Note 19, "Business Segment Reporting." Out of scope total noninterest income includes these amounts and also includes $6 million of Corporate Other noninterest income that is not subject to ASC Topic 606.
2 
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.
3 
Beginning July 1, 2018, the Company began presenting bridge commitment fee income related to capital market transactions in Investment banking income on the Consolidated Statements of Income. For periods prior to July 1, 2018, this income was previously presented in Other charges and fees and has been reclassified to Investment banking income for comparability.
4 
The Company recognized an immaterial amount of insurance trailing commissions, the majority of which related to performance obligations satisfied in prior periods.
5 
The Company recognized $13 million of mutual fund 12b-1 fees and annuity trailing commissions, the majority of which related to performance obligations satisfied in periods prior to March 31, 2018.
v3.19.1
Federal Funds Sold and Securities Financing Activities
3 Months Ended
Mar. 31, 2019
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)
March 31, 2019
 
December 31, 2018
Fed funds sold

$—

 

$42

Securities borrowed
468

 
394

Securities purchased under agreements to resell
918

 
1,243

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

$1,386

 

$1,679


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 March 31, 2019 and December 31, 2018, the total market value of collateral held was $1.4 billion and $1.6 billion, of which $56 million and $108 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:
 
March 31, 2019
 
December 31, 2018
(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

$110

 

$—

 

$—

 

$110

 

$197

 

$7

 

$—

 

$204

Federal agency securities
159

 
8

 

 
167

 
112

 
10

 

 
122

MBS - agency
993

 
81

 
8

 
1,082

 
881

 
35

 

 
916

CP
49

 

 

 
49

 
78

 

 

 
78

Corporate and other debt securities
418

 
64

 
72

 
554

 
216

 
158

 
80

 
454

Total securities sold under agreements to repurchase

$1,729

 

$153

 

$80

 

$1,962

 

$1,484

 

$210

 

$80

 

$1,774



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 16, “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 March 31, 2019 and December 31, 2018, 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
March 31, 2019
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,386

 

$—

 

$1,386

1 

$1,368

 

$18

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,962

 

 
1,962

 
1,960

 
2

 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Financial assets:
 
 
 
 
 
 
 
 
 
Securities borrowed or purchased under agreements to resell

$1,637

 

$—

 

$1,637

1 

$1,624

 

$13

Financial liabilities:
 
 
 
 
 
 
 
 
 
Securities sold under agreements to repurchase
1,774

 

 
1,774

 
1,774

 


1 Excludes $0 and $42 million of Fed Funds sold, which are not subject to a master netting agreement at March 31, 2019 and December 31, 2018, respectively.
v3.19.1
Trading Assets and Liabilities and Derivatives Trading Assets and Liabilities and Derivatives
3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Trading Assets and Liabilities and Derivatives [Text Block] NOTE 4 - TRADING ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS

The fair values of the components of trading assets and liabilities and derivative instruments are presented in the following table:
(Dollars in millions)
March 31, 2019
 
December 31, 2018
Trading Assets and Derivative Instruments:
 
 
 
U.S. Treasury securities

$258

 

$262

Federal agency securities
281

 
188

U.S. states and political subdivisions
33

 
54

MBS - agency
814

 
860

Corporate and other debt securities
889

 
700

CP
283

 
190

Equity securities
71

 
73

Derivative instruments 1
1,028

 
639

Trading loans 2
2,602

 
2,540

Total trading assets and derivative instruments

$6,259

 

$5,506

 
 
 
 
Trading Liabilities and Derivative Instruments:
 
 
 
U.S. Treasury securities

$873

 

$801

MBS - agency
3

 
3

Corporate and other debt securities
456

 
385

Equity securities
13

 
5

Derivative instruments 1
264

 
410

Total trading liabilities and derivative instruments

$1,609

 

$1,604

1 Amounts include the impact of offsetting cash collateral received from and paid to the same derivative counterparties, and the impact of netting derivative assets and derivative liabilities when a legally enforceable master netting agreement or similar agreement exists.
2 Includes loans related to TRS.

Various trading and derivative instruments are used as part of the Company’s overall balance sheet management strategies and to support client requirements executed through the Bank and/or STRH, a broker/dealer subsidiary of the Company. The Company manages the potential market volatility associated with trading instruments by using appropriate risk management strategies. The size, volume, and nature of the trading products and derivative instruments can vary based on economic conditions as well as client-specific and Company-specific asset or liability positions.
Product offerings to clients include debt securities, loans traded in the secondary market, equity securities, derivative contracts, and other similar financial instruments. Other trading-
related activities include acting as a market maker for certain debt and equity security transactions, derivative instrument transactions, and foreign exchange transactions. The Company also uses derivatives to manage its interest rate and market risk from non-trading activities. The Company has policies and procedures to manage market risk associated with client trading and non-trading activities, and assumes a limited degree of market risk by managing the size and nature of its exposure. For valuation assumptions and additional information related to the Company's trading products and derivative instruments, see Note 16, “Derivative Financial Instruments,” Note 17, “Fair Value Election and Measurement,” and the Company's 2018 Annual Report on Form 10-K.
Pledged trading assets are presented in the following table:
(Dollars in millions)
March 31, 2019
 
December 31, 2018
Pledged trading assets to secure repurchase agreements 1

$1,337

 

$1,418

Pledged trading assets to secure certain derivative agreements
43

 
22

Pledged trading assets to secure other arrangements
40

 
40

1 Repurchase agreements secured by collateral totaled $1.3 billion and $1.4 billion at March 31, 2019 and December 31, 2018, respectively.
v3.19.1
Securities Available for Sale
3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale NOTE 5INVESTMENT SECURITIES
Investment Securities Portfolio Composition
 
March 31, 2019
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
Securities AFS:
 
 
 
 
 
 
 
U.S. Treasury securities

$4,279

 

$4

 

$24

 

$4,259

Federal agency securities
143

 
1

 
2

 
142

U.S. states and political subdivisions
594

 
6

 
7

 
593

MBS - agency residential
23,149

 
207

 
146

 
23,210

MBS - agency commercial
2,641

 
20

 
37

 
2,624

MBS - non-agency commercial
1,009

 
7

 
4

 
1,012

Corporate and other debt securities
13

 

 

 
13

Total securities AFS

$31,828

 

$245

 

$220

 

$31,853

 
 
 
 
 
 
 
 
 
 December 31, 2018 
(Dollars in millions)
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
Securities AFS:
 
 
 
 
 
 
 
U.S. Treasury securities

$4,277

 

$—

 

$66

 

$4,211

Federal agency securities
221

 
2

 
2

 
221

U.S. states and political subdivisions
606

 
4

 
21

 
589

MBS - agency residential
23,161

 
128

 
425

 
22,864

MBS - agency commercial
2,688

 
8

 
69

 
2,627

MBS - non-agency commercial
943

 

 
27

 
916

Corporate and other debt securities
14

 

 

 
14

Total securities AFS

$31,910

 

$142

 

$610

 

$31,442




The following table presents interest on securities AFS:
 
Three Months Ended March 31
(Dollars in millions)
2019
 
2018
Taxable interest

$217

 

$201

Tax-exempt interest
4

 
5

Total interest on securities AFS

$221

 

$206




Investment securities pledged to secure public deposits, repurchase agreements, trusts, certain derivative agreements, and other funds had a fair value of $3.3 billion at both March 31, 2019 and December 31, 2018.

The following table presents the amortized cost, fair value, and weighted average yield of the Company's investment securities at March 31, 2019, by remaining contractual maturity, with the exception of MBS, which are based on estimated average life. Receipt of cash flows may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.
 
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:
 
 
 
 
 
 
 
 
 
Securities AFS:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$649

 

$2,312

 

$1,318

 

$—

 

$4,279

Federal agency securities
39

 
33

 
4

 
67

 
143

U.S. states and political subdivisions
1

 
91

 
44

 
458

 
594

MBS - agency residential
1,494

 
3,800

 
17,081

 
774

 
23,149

MBS - agency commercial

 
646

 
1,672

 
323

 
2,641

MBS - non-agency commercial

 
12

 
976

 
21

 
1,009

Corporate and other debt securities

 
13

 

 

 
13

Total securities AFS

$2,183

 

$6,907

 

$21,095

 

$1,643

 

$31,828

Fair Value:
 
 
 
 
 
 
 
 
 
Securities AFS:
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$645

 

$2,295

 

$1,319

 

$—

 

$4,259

Federal agency securities
39

 
33

 
4

 
66

 
142

U.S. states and political subdivisions
1

 
95

 
45

 
452

 
593

MBS - agency residential
1,544

 
3,809

 
17,086

 
771

 
23,210

MBS - agency commercial

 
639

 
1,669

 
316

 
2,624

MBS - non-agency commercial

 
12

 
979

 
21

 
1,012

Corporate and other debt securities

 
13

 

 

 
13

Total securities AFS

$2,229

 

$6,896

 

$21,102

 

$1,626

 

$31,853

 Weighted average yield 1
2.78
%
 
2.36
%
 
3.01
%
 
3.08
%
 
2.86
%
1 Weighted average yields are based on amortized cost and presented on an FTE basis.


Investment Securities in an Unrealized Loss Position
The Company held certain investment securities where amortized cost exceeded fair value, resulting in unrealized loss positions. Market changes in interest rates and credit spreads may result in temporary unrealized losses as the market prices of securities fluctuate. At March 31, 2019, the Company did not intend to sell these securities nor was it more-likely-than-not that
the Company would be required to sell these securities before their anticipated recovery or maturity. The Company reviewed its portfolio for OTTI in accordance with the accounting policies described in Note 1, "Significant Accounting Policies," to the Company's 2018 Annual Report on Form 10-K.

Investment securities in an unrealized loss position at period end are presented in the following tables:
 
March 31, 2019
 
Less than twelve months
 
Twelve months or longer
 
Total
(Dollars in millions)
Fair
Value
 
 Unrealized 1
Losses
 
Fair
Value
 
 Unrealized 1
Losses
 
Fair
Value
 
 Unrealized 1
Losses
Temporarily impaired securities AFS:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities

$—

 

$—

 

$2,646

 

$24

 

$2,646

 

$24

Federal agency securities
5

 

 
61

 
2

 
66

 
2

U.S. states and political subdivisions

 

 
433

 
7

 
433

 
7

MBS - agency residential