Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | MUFG Americas Holdings Corporation | |
Entity Central Index Key | 1,011,659 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 144,322,280 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ub |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Interest Income | |||
Loans | $ 708 | $ 706 | |
Securities | 129 | 110 | |
Securities borrowed or purchased under resale agreements | 63 | 50 | |
Trading assets | 74 | 22 | |
Other | 10 | 6 | |
Total interest income | 984 | 894 | |
Interest Expense | |||
Deposits | 49 | 49 | |
Commercial paper and other short-term borrowings | 8 | 3 | |
Long-term debt | 57 | 73 | |
Securities loaned or sold under repurchase agreements | 59 | 32 | |
Trading liabilities | 16 | 13 | |
Total interest expense | 189 | 170 | |
Net Interest Income | [1] | 795 | 724 |
(Reversal of) provision for credit losses | [1] | (30) | 162 |
Net interest income after (reversal of) provision for credit losses | 825 | 562 | |
Noninterest Income | |||
Service charges on deposit accounts | 48 | 49 | |
Trust and investment management fees | 29 | 32 | |
Trading account activities | (4) | 28 | |
Securities gains, net | 2 | 13 | |
Credit facility fees | 26 | 27 | |
Brokerage commissions and fees | 18 | 19 | |
Card processing fees, net | 11 | 9 | |
Investment banking and syndication fees | 88 | 61 | |
Fees from affiliates | 219 | 212 | |
Other, net | 51 | 24 | |
Total noninterest income | 488 | 474 | |
Noninterest Expense | |||
Salaries and employee benefits | 615 | 595 | |
Net occupancy and equipment | 82 | 81 | |
Professional and outside services | 116 | 105 | |
Software | 46 | 37 | |
Intangible asset amortization | 20 | 14 | |
Regulatory assessments | 7 | 7 | |
Other | 120 | 129 | |
Total noninterest expense | [1] | 1,006 | 968 |
Income before income taxes and including noncontrolling interests | [1] | 307 | 68 |
Income tax expense | [1] | 83 | 18 |
Net Income Including Noncontrolling Interests | [1] | 224 | 50 |
Deduct: Net loss from noncontrolling interests | [1] | 5 | 12 |
Net Income Attributable to MUAH | [1] | $ 229 | $ 62 |
[1] | The transferred IHC entities are not measured using a "market view" perspective. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||
Net Income Attributable to MUAH | [1] | $ 229 | $ 62 |
Other Comprehensive Income (Loss), Net of Tax: | |||
Net change in unrealized gains (losses) on cash flow hedges | (30) | 132 | |
Net change in unrealized gains (losses) on investment securities | 35 | 90 | |
Foreign currency translation adjustment | 1 | 4 | |
Pension and other postretirement benefit adjustments | 7 | 10 | |
Other | 0 | (2) | |
Total other comprehensive income (loss) | 13 | 234 | |
Comprehensive Income (Loss) Attributable to MUAH | 242 | 296 | |
Comprehensive loss from noncontrolling interests | (5) | (12) | |
Total Comprehensive Income (Loss) | $ 237 | $ 284 | |
[1] | The transferred IHC entities are not measured using a "market view" perspective. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | ||
Assets | ||||
Cash and due from banks | $ 1,736 | $ 1,909 | ||
Interest bearing deposits in banks | 3,091 | 3,844 | ||
Total cash and cash equivalents | 4,827 | 5,753 | ||
Securities borrowed or purchased under resale agreements | 19,992 | 19,747 | ||
Trading account assets (includes $1,027 at March 31, 2017 and $1,122 at December 31, 2016 pledged as collateral that may be repledged) | 8,926 | 8,942 | ||
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged) | 14,925 | 14,141 | ||
Securities held to maturity (Fair value $10,348 at March 31, 2017 and $10,316 at December 31, 2016) | 10,374 | 10,337 | ||
Loans held for investment | [1] | 78,434 | 77,551 | |
Allowance for loan losses | (570) | (639) | ||
Loans held for investment, net | 77,864 | 76,912 | ||
Premises and equipment, net | 618 | 591 | ||
Goodwill | 3,225 | 3,225 | ||
Other assets | 8,927 | 8,496 | ||
Total assets | 149,678 | [2] | 148,144 | |
Deposits: | ||||
Noninterest bearing | 35,020 | 35,654 | ||
Interest bearing | 51,513 | 51,293 | ||
Total deposits | 86,533 | 86,947 | ||
Securities loaned or sold under repurchase agreements | 25,079 | 24,616 | ||
Commercial paper and other short-term borrowings | 3,487 | 2,360 | ||
Long-term debt | 11,333 | 11,410 | ||
Trading account liabilities | 3,233 | 2,905 | ||
Other liabilities | 2,383 | 2,520 | ||
Total liabilities | 132,048 | 130,758 | ||
Commitments, contingencies and guarantees—See Note 12 | ||||
Preferred stock: | ||||
Authorized 5,000,000 shares; no shares issued or outstanding | 0 | 0 | ||
Common stock, par value $1 per share: | ||||
Authorized 300,000,000 shares, 144,322,280 shares issued and outstanding as of March 31, 2017 and December 31, 2016 | 144 | 144 | ||
Additional paid-in capital | 7,892 | 7,884 | ||
Retained earnings | 10,331 | 10,101 | ||
Accumulated other comprehensive loss | (883) | (896) | ||
Total MUAH stockholders' equity | 17,484 | 17,233 | ||
Noncontrolling interests | 146 | 153 | ||
Total equity | 17,630 | 17,386 | ||
Total liabilities and equity | $ 149,678 | $ 148,144 | ||
[1] | Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs. | |||
[2] | The transferred IHC entities are not measured using a "market view" perspective. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trading account assets pledged as collateral | $ 1,027 | $ 1,122 |
Securities available-for-sale pledged as collateral | 173 | 148 |
Fair value of securities held to maturity | $ 10,348 | $ 10,316 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value, (dollars per share) | $ 1 | $ 1 |
Common stock, share authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, share issued (in shares) | 144,322,280 | 144,322,280 |
Common stock, share outstanding (in shares) | 144,322,280 | 144,322,280 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholder's Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | |
Balance, beginning at Dec. 31, 2015 | $ 16,593 | $ 144 | $ 7,868 | $ 9,116 | $ (750) | $ 215 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 50 | [1] | 62 | (12) | |||
Other comprehensive income (loss), net of tax | 234 | 234 | |||||
Compensation—restricted stock units | 10 | 10 | 0 | ||||
Other | 7 | 0 | 0 | 7 | |||
Net change | 301 | 10 | 62 | 234 | (5) | ||
Balance, ending at Mar. 31, 2016 | 16,894 | 144 | 7,878 | 9,178 | (516) | 210 | |
Balance, beginning at Dec. 31, 2016 | 17,386 | 144 | 7,884 | 10,101 | (896) | 153 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 224 | [1] | 229 | (5) | |||
Other comprehensive income (loss), net of tax | 13 | 13 | |||||
Compensation—restricted stock units | 9 | 8 | 1 | ||||
Other | (2) | 0 | 0 | (2) | |||
Net change | 244 | 8 | 230 | 13 | (7) | ||
Balance, ending at Mar. 31, 2017 | $ 17,630 | $ 144 | $ 7,892 | $ 10,331 | $ (883) | $ 146 | |
[1] | The transferred IHC entities are not measured using a "market view" perspective. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Cash Flows from Operating Activities: | |||
Net income including noncontrolling interests | [1] | $ 224 | $ 50 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
(Reversal of) provision for credit losses | [1] | (30) | 162 |
Depreciation, amortization and accretion, net | 80 | 87 | |
Stock-based compensation—restricted stock units | 14 | 15 | |
Deferred income taxes | 31 | (16) | |
Net gains on sales of securities | (2) | (13) | |
Net decrease (increase) in securities borrowed or purchased under resale agreements | (245) | 2,962 | |
Net decrease (increase) in securities loaned or sold under repurchase agreements | 463 | (1,930) | |
Net decrease (increase) in trading account assets | 16 | (1,895) | |
Net decrease (increase) in other assets | (568) | 239 | |
Net increase (decrease) in trading account liabilities | 328 | 663 | |
Net increase (decrease) in other liabilities | (27) | 7 | |
Loans originated for sale | (146) | (519) | |
Net proceeds from sale of loans originated for sale | 208 | 514 | |
Pension and other benefits adjustment | (127) | (149) | |
Other, net | (12) | 8 | |
Total adjustments | (17) | 135 | |
Net cash provided by (used in) operating activities | 207 | 185 | |
Cash Flows from Investing Activities: | |||
Proceeds from sales of securities available for sale | 608 | 1,658 | |
Proceeds from paydowns and maturities of securities available for sale | 567 | 378 | |
Purchases of securities available for sale | (2,018) | (610) | |
Proceeds from paydowns and maturities of securities held to maturity | 408 | 360 | |
Purchases of securities held to maturity | (499) | (866) | |
Proceeds from sales of loans | 347 | 49 | |
Net decrease (increase) in loans | (1,194) | (1,588) | |
Purchases of other investments | (14) | (67) | |
Other, net | 27 | (77) | |
Net cash provided by (used in) investing activities | (1,768) | (763) | |
Cash Flows from Financing Activities: | |||
Net increase (decrease) in deposits | (425) | 5,149 | |
Net increase (decrease) in commercial paper and other short-term borrowings | 1,145 | (246) | |
Proceeds from issuance of senior debt due to BTMU | 3,521 | 0 | |
Repayment of long-term debt | (3,602) | (565) | |
Other, net | (2) | (15) | |
Change in noncontrolling interests | (2) | 8 | |
Net cash provided by (used in) financing activities | 635 | 4,331 | |
Net change in cash and cash equivalents | (926) | 3,753 | |
Cash and cash equivalents at beginning of period | 5,753 | 4,807 | |
Cash and cash equivalents at end of period | 4,827 | 8,560 | |
Cash Paid During the Period For: | |||
Interest | 187 | 138 | |
Income taxes, net | 22 | 50 | |
Supplemental Schedule of Noncash Investing and Financing Activities: | |||
Net transfer of loans held for investment to (from) loans held for sale | $ 230 | $ (81) | |
[1] | The transferred IHC entities are not measured using a "market view" perspective. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Nature of Operations | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Nature of Operations | Summary of Significant Accounting Policies and Nature of Operations MUFG Americas Holdings Corporation (MUAH) is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. (MUB or the Bank) and MUFG Securities Americas Inc. (MUSA) (formerly Mitsubishi UFJ Securities (USA), Inc.). MUAH provides a wide range of financial services to consumers, small businesses, middle-market companies and major corporations nationally and internationally. The Company also provides various business, banking, financial, administrative and support services, and facilities for BTMU in connection with the operation and administration of all of BTMU's business in the U.S. (including BTMU's U.S. branches). The unaudited Consolidated Financial Statements of MUFG Americas Holdings Corporation, its subsidiaries, and its consolidated variable interest entities (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the SEC. However, they do not include all of the disclosures necessary for annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the first quarter of 2017 are not necessarily indicative of the operating results anticipated for the full year. These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 ( 2016 Form 10-K). The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management’s expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company’s results of operations and financial condition in the near term. Critical estimates made by management in the preparation of the Company’s financial statements include, but are not limited to, the allowance for credit losses ( Note 3 ), goodwill impairment, fair value of financial instruments ( Note 8 ), hedge accounting ( Note 9 ), pension accounting ( Note 11 ), income taxes, and transfer pricing. Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides guidance on the core principle 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. This ASU applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts and certain non-monetary exchanges. It provides the following five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the ASU requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 to interim and annual periods beginning on January 1, 2018, with early adoption permitted in 2017. The Company plans to apply the modified retrospective method upon adoption on January 1, 2018. As part of our implementation progress to date, we have completed the impact assessment phase and are evaluating potential changes to processes and controls. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which amends the accounting, presentation, and disclosure requirements for certain financial instruments. The ASU requires that all equity investments be recorded at fair value through net income (other than those accounted for under equity method or result in consolidation of the investee); however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability under the fair value option. The ASU also clarifies that an entity must evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. In addition, the ASU amends the presentation and disclosure requirements for financial instruments and now requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted for the amendments to the accounting for financial liabilities under the fair value option. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, Leases , which will require entities that lease assets (i.e., lessees) to recognize assets and liabilities on their balance sheet for the rights and obligations created by those leases. The accounting by entities that own the assets leased (i.e., lessors) will remain largely unchanged; however, leveraged lease accounting will no longer be permitted for leases that commence after the effective date. The ASU will also require qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. The Company plans to adopt the ASU on January 1, 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. The Company has recently begun the planning phase for this project and management is in the initial stage of policy development and issue identification. Management is currently evaluating technology solutions and assessing accounting for the current lease portfolio under the new ASU. Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The ASU amends ASU 2014-09, Revenue from Contracts with Customers , with respect to assessing whether an entity is a principal (and thus presents revenue gross) or an agent (and thus presents revenue net). The amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer and clarify: (1) that an entity must first identify the specified good or service being provided to the customer; (2) that the unit of account for the principal versus agent assessment is each specified good or service promised in a contract; (3) indicators and examples to help an entity evaluate whether it is the principal; and (4) how to assess whether an entity controls services performed by another party. The ASU is effective upon the adoption of ASU 2014-09, which is effective for periods beginning January 1, 2018, with early adoption permitted in 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which provides new guidance on the accounting for credit losses for instruments that are within its scope. For loans and debt securities accounted for at amortized cost, certain off-balance sheet credit exposures, net investments in leases, and trade receivables, the ASU requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure. Lifetime expected credit losses on purchased financial assets with credit deterioration will be recognized as an allowance with an offset to the cost basis of the asset. For available for sale debt securities, the new standard will require recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The ASU is effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted in 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. In the second quarter the Company plans to begin a current state gap analysis, which will be followed by collecting business and data requirements to support the project planning phase of the implementation. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments , to address diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company's statement of cash flows. Income Tax Consequences of Intra-Entity Asset Transfers In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , to improve the accounting for the income tax consequences of intra-entity assets other than inventory. The ASU will require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect adoption of this guidance to significantly impact the Company's financial position and results of operations. Restricted Cash In November 2016, the FASB issued ASU 2016-18, Restricted Cash , to address diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The ASU requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and the amounts generally described as restricted cash or restricted cash equivalents. The ASU is effective for interim and annual periods beginning on January 1, 2018 using a retrospective transition method. Early adoption is permitted. Management does not expect the adoption of this guidance to have a significant impact on the Company's statement of cash flows. Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , which specifies when a set of assets and activities constitutes a business. The ASU adds a “screen” to determine when a set is not a business, thus reducing the number of transactions deemed businesses. Specifically, if the fair value of the gross assets acquired is concentrated in a single identifiable asset (or a group of similar identifiable assets), the set is not deemed a business. Otherwise, to be considered a business, a set must include at least one input and a substantive process that together significantly contribute to the ability to create outputs. Although outputs are not required to be a business, the ASU narrows the definition of an output and limits the instances where sets that lack outputs are deemed businesses. The ASU is effective for interim and annual periods prospectively beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. Amendments to SEC Paragraphs Pursuant to Staff Announcements at EITF Meetings In January 2017, the FASB issued ASU 2017-03, Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings . The amendments clarify the SEC staff’s expectations about the extent of disclosures registrants should make about the effects of ASU 2014-09, Revenue from Contracts with Customers , ASU 2016-02, Leases , and ASU 2016-13, Measurement of Credit Losses on Financial Instruments , particularly where the registrant cannot reasonably estimate the ASU’s anticipated impact on the financial statements. The amendments also clarify the SEC staff’s view that the use of the proportional amortization method must be consistently applied and it may not be extended, by analogy, to other investments that are not investments in qualified affordable housing projects. The ASU is effective upon issuance. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The ASU removes Step 2 of the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments, a goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The ASU will be effective for MUAH beginning January 1, 2020 on a prospective basis. Early adoption is permitted for any impairment tests performed after January 1, 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, to clarify the scope of ASC 610-20, Other Income - Gains and Losses from Derecognition of Nonfinancial Assets (issued as part of ASU 2014-09), and provide guidance on partial sales of nonfinancial assets. The ASU clarifies that the unit of account under ASU 610-20 is each distinct nonfinancial or in substance nonfinancial asset and that a financial asset that meets the definition of an “in substance nonfinancial asset” is within the scope of ASC 610-20. The ASU eliminates rules specifically addressing sales of real estate and removes exceptions to the financial asset derecognition model. The ASU is effective upon the adoption of ASU 2014-09, which the Company plans to adopt beginning January 1, 2018. It allows an entity to use either a retrospective or modified retrospective approach. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which amends the income statement presentation of the components of net periodic benefit cost for sponsored defined benefit pension and other postretirement plans. The ASU also now mandates that only the service cost component of net benefit cost is eligible for capitalization on certain internally produced assets. The ASU is effective for interim and annual periods beginning January 1, 2018, with retrospective application for the new income statement presentation requirements and prospective application for the new capitalization requirement. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities , which requires premiums on certain purchased callable debt securities to be amortized to the earliest call date. Under current guidance, premiums on callable debt securities are generally amortized over the contractual life of the security. The amortization period for callable debt securities purchased at a discount will not be impacted. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Securities Available for Sale At March 31, 2017 and December 31, 2016 , the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below. March 31, 2017 (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Asset Liability Management securities: U.S. Treasury $ 2,920 $ 2 $ 109 $ 2,813 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies 7,474 5 101 7,378 Privately issued 431 1 6 426 Privately issued - commercial mortgage-backed securities 664 5 6 663 Collateralized loan obligations 1,985 13 1 1,997 Other 7 — — 7 Asset Liability Management securities 13,481 26 223 13,284 Other debt securities: Direct bank purchase bonds 1,528 39 24 1,543 Other 94 — 1 93 Equity securities 5 — — 5 Total securities available for sale $ 15,108 $ 65 $ 248 $ 14,925 December 31, 2016 (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Asset Liability Management securities: U.S. Treasury $ 2,625 $ 1 $ 121 $ 2,505 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies 6,814 3 122 6,695 Privately issued 333 1 7 327 Privately issued - commercial mortgage-backed securities 666 4 6 664 Collateralized loan obligations 2,219 4 5 2,218 Other 7 — — 7 Asset Liability Management securities 12,664 13 261 12,416 Other debt securities: Direct bank purchase bonds 1,601 41 29 1,613 Other 108 — 1 107 Equity securities 5 — — 5 Total securities available for sale $ 14,378 $ 54 $ 291 $ 14,141 The Company’s securities available for sale with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, identified for periods less than 12 months and 12 months or more. March 31, 2017 Less than 12 months 12 months or more Total (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Asset Liability Management securities: U.S. Treasury $ 2,270 $ 109 $ — $ — $ 2,270 $ 109 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies 5,567 93 606 8 6,173 101 Privately issued 249 5 26 1 275 6 Privately issued - commercial mortgage-backed securities 371 6 11 — 382 6 Collateralized loan obligations 168 — 129 1 297 1 Asset Liability Management securities 8,625 213 772 10 9,397 223 Other debt securities: Direct bank purchase bonds 193 6 539 18 732 24 Other 91 1 5 — 96 1 Total securities available for sale $ 8,909 $ 220 $ 1,316 $ 28 $ 10,225 $ 248 December 31, 2016 Less than 12 months 12 months or more Total (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Asset Liability Management securities: U.S. Treasury $ 2,257 $ 121 $ — $ — $ 2,257 $ 121 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies 5,501 113 667 9 6,168 122 Privately issued 249 6 29 1 278 7 Privately issued - commercial mortgage-backed securities 415 6 11 — 426 6 Collateralized loan obligations 75 — 1,077 5 1,152 5 Other — — 1 — 1 — Asset Liability Management securities 8,497 246 1,785 15 10,282 261 Other debt securities: Direct bank purchase bonds 386 12 499 17 885 29 Other 36 1 — — 36 1 Equity securities — — 5 — 5 — Total securities available for sale $ 8,919 $ 259 $ 2,289 $ 32 $ 11,208 $ 291 At March 31, 2017 , the Company did not have the intent to sell any securities in an unrealized loss position before a recovery of the amortized cost, which may be at maturity. The Company also believes that it is more likely than not that it will not be required to sell the securities prior to recovery of amortized cost. Agency residential mortgage-backed securities consist of securities guaranteed by a U.S. government agency or a government-sponsored agency such as Fannie Mae, Freddie Mac or Ginnie Mae. These securities are collateralized by residential mortgage loans and may be prepaid at par prior to maturity. The unrealized losses on agency residential mortgage-backed securities resulted from changes in interest rates and not from changes in credit quality. At March 31, 2017 , the Company expects to recover the entire amortized cost basis of these securities because the Company determined that the strength of the issuers’ guarantees through direct obligations or support from the U.S. government is sufficient to protect the Company from losses. Commercial mortgage-backed securities are collateralized by commercial mortgage loans and are generally subject to prepayment penalties. The unrealized losses on commercial mortgage-backed securities resulted from higher market yields since purchase. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of March 31, 2017 , the Company expects to recover the entire amortized cost basis of these securities. The Company’s CLOs consist of Cash Flow CLOs. A Cash Flow CLO is a structured finance product that securitizes a diversified pool of loan assets into multiple classes of notes. Cash Flow CLOs pay the note holders through the receipt of interest and principal repayments from the underlying loans unlike other types of CLOs that pay note holders through the trading and sale of underlying collateral. Unrealized losses typically arise from widening credit spreads and deteriorating credit quality of the underlying collateral. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost. Based on the analysis performed as of March 31, 2017 , the Company expects to recover the entire amortized cost basis of these securities. Other debt securities primarily consist of direct bank purchase bonds, which are not rated by external credit rating agencies. The unrealized losses on these bonds resulted from a higher return on capital expected by the secondary market compared with the return on capital required at the time of origination when the bonds were purchased. The Company estimates the unrealized loss for each security by assessing the underlying collateral of each security. The Company estimates the portion of loss attributable to credit based on the expected cash flows of the underlying collateral using estimates of current key assumptions, such as probability of default and loss severity. Cash flow analysis of the underlying collateral provides an estimate of other-than-temporary impairment, which is performed quarterly when the fair value of a security is lower than its amortized cost and potential impairment is identified. Based on the analysis performed as of March 31, 2017 , the Company expects to recover the entire amortized cost basis of these securities. The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. March 31, 2017 (Dollars in millions) One Year or Less Over One Year Through Five Years Over Five Years Through Ten Years Over Ten Years Total Fair Value Asset Liability Management securities: U.S. Treasury $ — $ 393 $ 2,420 $ — $ 2,813 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies — 9 301 7,068 7,378 Privately issued — 1 — 425 426 Privately issued - commercial mortgage-backed securities — — — 663 663 Collateralized loan obligations — — 1,020 977 1,997 Other 1 1 5 — 7 Asset Liability Management securities 1 404 3,746 9,133 13,284 Other debt securities: Direct bank purchase bonds 4 428 719 392 1,543 Other — 67 — 26 93 Total debt securities available for sale $ 5 $ 899 $ 4,465 $ 9,551 $ 14,920 The gross realized gains and losses from sales of available for sale securities for the three months ended March 31, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales. For the Three Months Ended March 31, (Dollars in millions) 2017 2016 Gross realized gains $ 2 $ 13 Gross realized losses — — Securities Held to Maturity At March 31, 2017 and December 31, 2016 , the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity. March 31, 2017 Recognized in OCI Not Recognized in OCI (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Carrying Amount Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury $ 493 $ — $ — $ 493 $ 4 $ — $ 497 U.S. government agency and government-sponsored agencies - residential mortgage-backed securities 8,342 2 38 8,306 32 98 8,240 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 1,636 — 61 1,575 43 7 1,611 Total securities held to maturity $ 10,471 $ 2 $ 99 $ 10,374 $ 79 $ 105 $ 10,348 December 31, 2016 Recognized in OCI Not Recognized in OCI (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Carrying Amount Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury $ 492 $ — $ — $ 492 $ 5 $ — $ 497 U.S. government agency and government-sponsored agencies - residential mortgage-backed securities 8,301 3 41 8,263 34 96 8,201 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 1,645 — 63 1,582 43 7 1,618 Total securities held to maturity $ 10,438 $ 3 $ 104 $ 10,337 $ 82 $ 103 $ 10,316 Amortized cost is defined as the original purchase cost, adjusted for any accretion or amortization of a purchase discount or premium, less principal payments and any impairment previously recognized in earnings. The carrying amount is the difference between the amortized cost and the amount recognized in OCI. The amount recognized in OCI primarily reflects the unrealized gain or loss at date of transfer from available for sale to the held to maturity classification, net of amortization, which is recorded in interest income on securities. The Company’s securities held to maturity with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, separately for periods less than 12 months and 12 months or more. March 31, 2017 Less than 12 months 12 months or more Total Unrealized Losses Unrealized Losses Unrealized Losses (Dollars in millions) Fair Value Recognized in OCI Not Recognized in OCI Fair Value Recognized in OCI Not Recognized in OCI Fair Value Recognized in OCI Not Recognized in OCI U.S. government agency and government-sponsored agencies - residential mortgage-backed securities $ 4,977 $ — $ 96 $ 1,324 $ 38 $ 2 $ 6,301 $ 38 $ 98 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 109 — 2 1,445 61 5 1,554 61 7 Total securities held to maturity $ 5,086 $ — $ 98 $ 2,769 $ 99 $ 7 $ 7,855 $ 99 $ 105 December 31, 2016 Less than 12 months 12 months or more Total Unrealized Losses Unrealized Losses Unrealized Losses (Dollars in millions) Fair Value Recognized in OCI Not Recognized in OCI Fair Value Recognized in OCI Not Recognized in OCI Fair Value Recognized in OCI Not Recognized in OCI U.S. government agency and government-sponsored agencies - residential mortgage-backed securities $ 4,492 $ — $ 92 $ 1,386 $ 41 $ 4 $ 5,878 $ 41 $ 96 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 111 — 1 1,448 63 6 1,559 63 7 Total securities held to maturity $ 4,603 $ — $ 93 $ 2,834 $ 104 $ 10 $ 7,437 $ 104 $ 103 The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. March 31, 2017 Over One Year Through Five Years Over Five Years Through Ten Years Over Ten Years Total (Dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value U.S. Treasury $ 493 $ 497 $ — $ — $ — $ — $ 493 $ 497 U.S. government agency and government-sponsored agencies - residential mortgage-backed securities — — 326 324 7,980 7,916 8,306 8,240 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 299 309 558 581 718 721 1,575 1,611 Total securities held to maturity $ 792 $ 806 $ 884 $ 905 $ 8,698 $ 8,637 $ 10,374 $ 10,348 Securities Pledged and Received as Collateral At March 31, 2017 and December 31, 2016 , the Company pledged $12.4 billion and $12.1 billion , respectively, of available for sale and trading securities as collateral, of which $1.2 billion and $1.3 billion , respectively, was permitted to be sold or repledged. These securities were pledged as collateral for derivative liability positions, securities loaned or sold under repurchase agreements, short term borrowings and to secure public and trust department deposits. At March 31, 2017 and December 31, 2016 , the Company received $30.5 billion and $31.6 billion , respectively, of collateral, of which $30.5 billion and $31.6 billion , respectively, was permitted to be sold or repledged. Of the collateral received, the Company sold or repledged $29.1 billion and $30.5 billion at March 31, 2017 and December 31, 2016 , respectively, for derivative asset positions and securities borrowed or purchased under resale agreements. For further information related to the Company's significant accounting policies on securities pledged as collateral, see Note 1 to the Consolidated Financial Statements in Part II, Item 8. "Financial Statements and Supplementary Data" in our 2016 Form 10-K. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The following table provides the outstanding balances of loans at March 31, 2017 and December 31, 2016 : (Dollars in millions) March 31, 2017 December 31, 2016 Loans held for investment: Commercial and industrial $ 25,602 $ 25,379 Commercial mortgage 14,468 14,625 Construction 2,040 2,283 Lease financing 1,779 1,819 Total commercial portfolio 43,889 44,106 Residential mortgage 31,162 29,922 Home equity and other consumer loans 3,383 3,523 Total consumer portfolio 34,545 33,445 Total loans held for investment (1) 78,434 77,551 Allowance for loan losses (570 ) (639 ) Loans held for investment, net $ 77,864 $ 76,912 (1) Includes $205 million and $180 million at March 31, 2017 and December 31, 2016 , respectively, for net unamortized (discounts) and premiums and deferred ( fees) and costs. Allowance for Loan Losses The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment: For the Three Months Ended March 31, 2017 (Dollars in millions) Commercial Consumer Unallocated Total Allowance for loan losses, beginning of period $ 556 $ 83 $ — $ 639 (Reversal of) provision for loan losses (26 ) 12 — (14 ) Other 1 — — 1 Loans charged-off (55 ) (11 ) — (66 ) Recoveries of loans previously charged-off 9 1 — 10 Allowance for loan losses, end of period $ 485 $ 85 $ — $ 570 For the Three Months Ended March 31, 2016 (Dollars in millions) Commercial Consumer Unallocated Total Allowance for loan losses, beginning of period $ 653 $ 50 $ 20 $ 723 (Reversal of) provision for loan losses 171 7 (20 ) 158 Other 4 — — 4 Loans charged-off (8 ) (1 ) — (9 ) Recoveries of loans previously charged-off 4 1 — 5 Allowance for loan losses, end of period $ 824 $ 57 $ — $ 881 The following tables show the allowance for loan losses and related loan balances by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 (Dollars in millions) Commercial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 117 $ 20 $ 137 Collectively evaluated for impairment 368 65 433 Total allowance for loan losses $ 485 $ 85 $ 570 Loans held for investment: Individually evaluated for impairment $ 638 $ 372 $ 1,010 Collectively evaluated for impairment 43,251 34,173 77,424 Total loans held for investment $ 43,889 $ 34,545 $ 78,434 December 31, 2016 (Dollars in millions) Commercial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 151 $ 17 $ 168 Collectively evaluated for impairment 405 66 471 Total allowance for loan losses $ 556 $ 83 $ 639 Loans held for investment: Individually evaluated for impairment $ 636 $ 386 $ 1,022 Collectively evaluated for impairment 43,470 33,059 76,529 Total loans held for investment $ 44,106 $ 33,445 $ 77,551 Nonaccrual and Past Due Loans The following table presents nonaccrual loans as of March 31, 2017 and December 31, 2016 : (Dollars in millions) March 31, 2017 December 31, 2016 Commercial and industrial $ 400 $ 458 Commercial mortgage 33 31 Total commercial portfolio 433 489 Residential mortgage 110 171 Home equity and other consumer loans 26 29 Total consumer portfolio 136 200 Total nonaccrual loans $ 569 $ 689 Troubled debt restructured loans that continue to accrue interest $ 336 $ 215 Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above) $ 301 $ 384 The following tables show an aging of the balance of loans held for investment, by class as of March 31, 2017 and December 31, 2016 : March 31, 2017 Aging Analysis of Loans (Dollars in millions) Current 30 to 89 Days Past Due 90 Days or More Past Due Total Past Due Total Commercial and industrial $ 27,317 $ 10 $ 54 $ 64 $ 27,381 Commercial mortgage 14,435 18 15 33 14,468 Construction 2,040 — — — 2,040 Total commercial portfolio 43,792 28 69 97 43,889 Residential mortgage 31,012 110 40 150 31,162 Home equity and other consumer loans 3,347 21 15 36 3,383 Total consumer portfolio 34,359 131 55 186 34,545 Total loans held for investment $ 78,151 $ 159 $ 124 $ 283 $ 78,434 December 31, 2016 Aging Analysis of Loans (Dollars in millions) Current 30 to 89 Days Past Due 90 Days or More Past Due Total Past Due Total Commercial and industrial $ 27,085 $ 54 $ 59 $ 113 $ 27,198 Commercial mortgage 14,571 37 17 54 14,625 Construction 2,283 — — — 2,283 Total commercial portfolio 43,939 91 76 167 44,106 Residential mortgage 29,770 110 42 152 29,922 Home equity and other consumer loans 3,479 27 17 44 3,523 Total consumer portfolio 33,249 137 59 196 33,445 Total loans held for investment $ 77,188 $ 228 $ 135 $ 363 $ 77,551 Loans 90 days or more past due and still accruing totaled $24 million at March 31, 2017 and $23 million at December 31, 2016 . Credit Quality Indicators Management analyzes the Company's loan portfolios by applying specific monitoring policies and procedures that vary according to the relative risk profile and other characteristics within the various loan portfolios. Loans within the commercial portfolio segment are classified as either pass or criticized. Criticized credits are those that have regulatory risk ratings of special mention, substandard or doubtful; classified credits are those that have regulatory risk ratings of substandard or doubtful. Special mention credits are potentially weak, as the borrower has begun to exhibit deteriorating trends, which, if not corrected, may jeopardize repayment of the loan and result in further downgrade. Substandard credits have well-defined weaknesses, which, if not corrected, could jeopardize the full satisfaction of the debt. A credit classified as doubtful has critical weaknesses that make full collection improbable on the basis of currently existing facts and conditions. The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings. The amounts presented reflect unpaid principal balances less charge-offs. March 31, 2017 Criticized (Dollars in millions) Pass Special Mention Classified Total Commercial and industrial $ 25,708 $ 635 $ 1,007 $ 27,350 Commercial mortgage 14,119 93 237 14,449 Construction 1,862 118 61 2,041 Total commercial portfolio $ 41,689 $ 846 $ 1,305 $ 43,840 December 31, 2016 Criticized (Dollars in millions) Pass Special Mention Classified Total Commercial and industrial $ 25,028 $ 860 $ 1,097 $ 26,985 Commercial mortgage 14,152 161 188 14,501 Construction 2,162 121 — 2,283 Total commercial portfolio $ 41,342 $ 1,142 $ 1,285 $ 43,769 The Company monitors the credit quality of its consumer portfolio segment based primarily on payment status. The following tables summarize the loans in the consumer portfolio segment, which exclude $10 million and $11 million of loans covered by FDIC loss share agreements, at March 31, 2017 and December 31, 2016 , respectively: March 31, 2017 (Dollars in millions) Accrual Nonaccrual Total Residential mortgage $ 31,052 $ 110 $ 31,162 Home equity and other consumer loans 3,357 26 3,383 Total consumer portfolio $ 34,409 $ 136 $ 34,545 December 31, 2016 (Dollars in millions) Accrual Nonaccrual Total Residential mortgage $ 29,751 $ 171 $ 29,922 Home equity and other consumer loans 3,494 29 3,523 Total consumer portfolio $ 33,245 $ 200 $ 33,445 The Company also monitors the credit quality for substantially all of its consumer portfolio segment using credit scores provided by FICO and refreshed LTV ratios. FICO credit scores are refreshed at least quarterly to monitor the quality of the portfolio. Refreshed LTV measures the principal balance of the loan as a percentage of the estimated current value of the property securing the loan. Home equity loans are evaluated using combined LTV, which measures the principal balance of the combined loans that have liens against the property (including unused credit lines for home equity products) as a percentage of the estimated current value of the property securing the loans. The LTV ratios are refreshed on a quarterly basis, using the most recent home pricing index data available for the property location. The following tables summarize the loans in the consumer portfolio segment based on refreshed FICO scores and refreshed LTV ratios at March 31, 2017 and December 31, 2016 . These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs. March 31, 2017 FICO scores (Dollars in millions) 720 and above Below 720 No FICO Available (1) Total Residential mortgage $ 24,680 $ 5,746 $ 436 $ 30,862 Home equity and other consumer loans 2,248 937 139 3,324 Total consumer portfolio $ 26,928 $ 6,683 $ 575 $ 34,186 Percentage of total 79 % 19 % 2 % 100 % (1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). December 31, 2016 FICO scores (Dollars in millions) 720 and above Below 720 No FICO Available (1) Total Residential mortgage $ 23,598 $ 5,597 $ 444 $ 29,639 Home equity and other consumer loans 2,372 977 111 3,460 Total consumer portfolio $ 25,970 $ 6,574 $ 555 $ 33,099 Percentage of total 78 % 20 % 2 % 100 % (1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). March 31, 2017 LTV ratios (Dollars in millions) Less than or Equal to 80 Greater than 80 and Less than 100 Percent Greater than or Equal to 100 No LTV Available (1) Total Residential mortgage $ 29,721 $ 1,090 $ 14 $ 37 $ 30,862 Home equity loans 2,103 219 37 39 2,398 Total consumer portfolio 31,824 1,309 51 76 33,260 Percentage of total 96 % 4 % — % — % 100 % (1) Represents loans for which management was not able to obtain refreshed property values. December 31, 2016 LTV ratios (Dollars in millions) Less than or Equal to 80 Greater than 80 and Less than 100 Percent Greater than or Equal to 100 No LTV Available (1) Total Residential mortgage $ 28,547 $ 1,030 $ 16 $ 46 $ 29,639 Home equity loans 2,160 206 41 43 2,450 Total consumer portfolio $ 30,707 $ 1,236 $ 57 $ 89 $ 32,089 Percentage of total 96 % 4 % — % — % 100 % (1) Represents loans for which management was not able to obtain refreshed property values. Troubled Debt Restructurings The following table provides a summary of the Company’s recorded investment in TDRs as of March 31, 2017 and December 31, 2016 . The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $48 million and $59 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of March 31, 2017 and December 31, 2016 , respectively. (Dollars in millions) March 31, 2017 December 31, 2016 Commercial and industrial $ 304 $ 321 Commercial mortgage 9 9 Construction 61 — Total commercial portfolio 374 330 Residential mortgage 234 239 Home equity and other consumer loans 29 30 Total consumer portfolio 263 269 Total restructured loans $ 637 $ 599 For the first quarter of 2017 , TDR modifications in the commercial portfolio segment were primarily composed of interest rate changes, maturity extensions, covenant waivers, conversions from revolving lines of credit to term loans, or some combination thereof. In the consumer portfolio segment, primarily all of the modifications were composed of interest rate reductions and maturity extensions. Charge-offs related to TDR modifications for the three months ended March 31, 2017 and March 31, 2016 were de minimis. For the commercial and consumer portfolio segments, the allowance for loan losses for TDRs is measured on an individual loan basis or in pools with similar risk characteristics. The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the three months ended March 31, 2017 and 2016 : For the Three Months Ended March 31, 2017 (Dollars in millions) Pre-Modification (1) Post-Modification (2) Commercial and industrial $ 78 $ 78 Commercial mortgage 1 1 Construction 61 61 Total commercial portfolio 140 140 Residential mortgage 4 4 Total consumer portfolio 4 4 Total $ 144 $ 144 (1) Represents the recorded investment in the loan immediately prior to the restructuring event. (2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms. For the Three Months Ended March 31, 2016 (Dollars in millions) Pre-Modification (1) Post-Modification (2) Commercial and industrial $ 50 $ 50 Commercial mortgage 5 5 Total commercial portfolio 55 55 Residential mortgage 4 4 Home equity and other consumer loans 1 1 Total consumer portfolio 5 5 Total $ 60 $ 60 (1) Represents the recorded investment in the loan immediately prior to the restructuring event. (2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms. The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the three months ended March 31, 2017 and 2016 , and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due. (Dollars in millions) For the Three Months Ended March 31, 2017 Commercial and industrial $ 2 Commercial mortgage 1 Total commercial portfolio 3 Residential mortgage 1 Total consumer portfolio 1 Total $ 4 (Dollars in millions) For the Three Months Ended March 31, 2016 Commercial and industrial $ 1 Total commercial portfolio 1 Residential mortgage 2 Total consumer portfolio 2 Total $ 3 For loans in the consumer portfolio in which impairment is measured using the present value of expected future cash flows discounted at the loan’s effective interest rate, historical payment defaults and the propensity to redefault are some of the factors considered when determining the allowance for loan losses. Loan Impairment Loans that are individually evaluated for impairment include larger nonaccruing loans within the commercial and industrial, construction, and commercial mortgage loan portfolios and loans modified in a TDR. The Company records an impairment allowance when the value of an impaired loan is less than the recorded investment in the loan. The following tables show information about impaired loans by class as of March 31, 2017 and December 31, 2016 : March 31, 2017 Recorded Investment Unpaid Principal Balance (Dollars in millions) With an Allowance Without an Allowance Total Allowance for Impaired Loans With an Allowance Without an Allowance Commercial and industrial $ 421 $ 94 $ 515 $ 116 $ 514 $ 125 Commercial mortgage 54 8 62 1 54 9 Construction — 61 61 — — 61 Total commercial portfolio 475 163 638 117 568 195 Residential mortgage 243 72 315 20 257 85 Home equity and other consumer loans 38 19 57 — 40 29 Total consumer portfolio 281 91 372 20 297 114 Total $ 756 $ 254 $ 1,010 $ 137 $ 865 $ 309 December 31, 2016 Recorded Investment Unpaid Principal Balance (Dollars in millions) With an Allowance Without an Allowance Total Allowance for Impaired Loans With an Allowance Without an Allowance Commercial and industrial $ 505 $ 36 $ 541 $ 150 $ 672 $ 54 Commercial mortgage 86 9 95 1 8 9 Total commercial portfolio 591 45 636 151 680 63 Residential mortgage 250 75 325 17 295 89 Home equity and other consumer loans 41 20 61 — 11 30 Total consumer portfolio 291 95 386 17 306 119 Total $ 882 $ 140 $ 1,022 $ 168 $ 986 $ 182 The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments. For the Three Months Ended March 31, 2017 2016 (Dollars in millions) Average Recorded Investment Recognized Interest Income Average Recorded Investment Recognized Interest Income Commercial and industrial $ 491 $ 4 $ 624 $ 2 Commercial mortgage 18 — 18 — Construction 10 — — — Total commercial portfolio 519 4 642 2 Residential mortgage 237 2 273 2 Home equity and other consumer loans 29 — 31 1 Total consumer portfolio 266 2 304 3 Total $ 785 $ 6 $ 946 $ 5 The following table presents loan transfers from held to investment to held for sale and proceeds from sales of loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments. For the Three Months Ended March 31, 2017 2016 (Dollars in millions) Transfers of loans from held for investment to held for sale, net Proceeds from sale Transfers of loans from held for investment to held for sale, net Proceeds from sale Commercial portfolio $ 234 $ 347 $ (81 ) $ 49 Consumer portfolio (4 ) — — — Total $ 230 $ 347 $ (81 ) $ 49 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities In the normal course of business, the Company has certain financial interests in entities which have been determined to be VIEs. Generally, a VIE is a corporation, partnership, trust or other legal structure where the equity investors do not have substantive voting rights, an obligation to absorb the entity’s losses or the right to receive the entity’s returns, or the ability to direct the significant activities of the entity. The following discusses the Company’s consolidated and unconsolidated VIEs. Consolidated VIEs The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016 : March 31, 2017 Consolidated Assets Consolidated Liabilities (Dollars in millions) Loans Held for Investment, net Other Assets Total Assets Other Liabilities Total Liabilities LIHC investments $ — $ 106 $ 106 $ — $ — Leasing investments 622 173 795 54 54 Total consolidated VIEs $ 622 $ 279 $ 901 $ 54 $ 54 December 31, 2016 Consolidated Assets Consolidated Liabilities (Dollars in millions) Loans Held for Investment, net Other Assets Total Assets Other Liabilities Total Liabilities LIHC investments $ — $ 112 $ 112 $ — $ — Leasing investments 641 174 815 54 54 Total consolidated VIEs $ 641 $ 286 $ 927 $ 54 $ 54 LIHC Investments The Company sponsors, manages and syndicates two LIHC investment fund structures. These investments are designed to generate a return primarily through the realization of U.S. federal tax credits and deductions. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct activities that most significantly impact the funds’ economic performances and also has the obligation to absorb losses of the funds that could potentially be significant to the funds. Neither creditors nor equity investors in the LIHC investments have any recourse to the general credit of the Company, and the Company’s creditors do not have any recourse to the assets of the consolidated LIHC investments. Leasing Investments The Company has leasing investments primarily in the wind energy, rail and coal industries. The Company is considered the primary beneficiary and has consolidated these investments because the Company has the power to direct the activities of these entities that significantly impact the entities’ economic performances. The Company also has the right to receive potentially significant benefits or the obligation to absorb potentially significant losses of these investments. Unconsolidated VIEs The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at March 31, 2017 and December 31, 2016 . The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. During the three months ended March 31, 2017 and March 31, 2016 , the Company had noncash increases in unfunded commitments on LIHC investments of $19 million and $37 million , respectively, included within other liabilities. March 31, 2017 Unconsolidated Assets Unconsolidated Liabilities (Dollars in millions) Interest Bearing Deposits in Banks Securities Available for Sale Loans Held for Investment Other Assets Total Assets Other Liabilities Total Liabilities Maximum Exposure to Loss LIHC investments $ — $ 25 $ 199 $ 1,148 $ 1,372 $ 388 $ 388 $ 1,372 Leasing investments 1 12 28 1,662 1,703 66 66 1,723 Other investments — — 24 25 49 — — 76 Total unconsolidated VIEs $ 1 $ 37 $ 251 $ 2,835 $ 3,124 $ 454 $ 454 $ 3,171 December 31, 2016 Unconsolidated Assets Unconsolidated Liabilities (Dollars in millions) Interest Bearing Deposits in Banks Securities Available for Sale Loans Held for Investment Other Assets Total Assets Other Liabilities Total Liabilities Maximum Exposure to Loss LIHC investments $ — $ 25 $ 168 $ 1,164 $ 1,357 $ 381 $ 381 $ 1,357 Leasing investments 1 12 47 1,751 1,811 66 66 1,833 Other investments — — 24 26 50 — — 81 Total unconsolidated VIEs $ 1 $ 37 $ 239 $ 2,941 $ 3,218 $ 447 $ 447 $ 3,271 LIHC Investments The Company makes investments in partnerships and funds formed by third parties. The primary purpose of the partnerships and funds is to invest in low-income housing units and distribute tax credits and tax benefits associated with the underlying properties to investors. The Company is a limited partner investor and is allocated tax credits and deductions, but has no voting or other rights to direct the activities of the funds or partnerships, and therefore is not considered the primary beneficiary and does not consolidate these investments. The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the three months ended March 31, 2017 and 2016 : For the Three Months Ended March 31, 2017 March 31, 2016 (Dollars in millions) Losses from LIHC investments included in other noninterest expense $ 2 $ 2 Amortization of LIHC investments included in income tax expense 33 30 Tax credits and other tax benefits from LIHC investments included in income tax expense 45 45 Leasing Investments The unconsolidated VIEs related to leasing investments are primarily renewable energy investments. Through its subsidiaries, the Company makes equity investments in LLCs established by third party sponsors. The LLCs are created to operate and manage wind, solar, hydroelectric and cogeneration power plant projects. Power generated by the projects is sold to third parties through long-term purchase power agreements. As a limited investor member, the Company is allocated production tax credits and taxable income or losses associated with the projects. The Company has no voting or other rights to direct the significant activities of the LLCs, and therefore is not considered the primary beneficiary and does not consolidate these investments. Other Investments The Company has other investments in structures formed by third parties. The Company has no voting or other rights to direct the activities of the investments that would most significantly impact the entities’ performance, and therefore is not considered the primary beneficiary and does not consolidate these investments. |
Securities Financing Arrangemen
Securities Financing Arrangements | 3 Months Ended |
Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Securities Financing Arrangements | Securities Financing Arrangements The Company enters into derivative transactions, securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions. The Company executes these transactions to facilitate customer match-book activity, cover short positions and to fund the Company's trading inventory. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. In certain cases the Company may agree for collateral to be posted to a third party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default. Default events generally include, among other things, failure to pay, insolvency or bankruptcy of a counterparty. The Company primarily enters into derivative contracts, repurchase agreements and securities lending agreements with counterparties utilizing standard International Swaps and Derivatives Association Master Agreements, Master Repurchase Agreements, and Master Securities Lending Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features. The following tables present the offsetting of financial assets and liabilities as of March 31, 2017 and December 31, 2016 : March 31, 2017 Gross Amounts Not Offset in Balance Sheet (Dollars in millions) Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Financial Instruments Cash Collateral Received/Pledged Net Amount Financial Assets: Derivative assets $ 1,502 $ 787 $ 715 $ 44 $ 2 $ 669 Securities borrowed or purchased under resale agreements 31,147 11,155 19,992 19,896 — 96 Total $ 32,649 $ 11,942 $ 20,707 $ 19,940 $ 2 $ 765 Financial Liabilities: Derivative liabilities $ 1,533 $ 968 $ 565 $ 170 $ — $ 395 Securities loaned or sold under repurchase agreements 36,235 11,156 25,079 24,470 — 609 Total $ 37,768 $ 12,124 $ 25,644 $ 24,640 $ — $ 1,004 December 31, 2016 Gross Amounts Not Offset in Balance Sheet (Dollars in millions) Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Financial Instruments Cash Collateral Received/Pledged Net Amount Financial Assets: Derivative assets $ 1,626 $ 770 $ 856 $ 20 $ — $ 836 Securities borrowed or purchased under resale agreements 31,386 11,639 19,747 19,657 — 90 Total $ 33,012 $ 12,409 $ 20,603 $ 19,677 $ — $ 926 Financial Liabilities: Derivative liabilities $ 1,684 $ 1,047 $ 637 $ 176 $ 5 $ 456 Securities loaned or sold under repurchase agreements 36,255 11,639 24,616 23,812 — 804 Total $ 37,939 $ 12,686 $ 25,253 $ 23,988 $ 5 $ 1,260 The following tables present the gross obligations for securities sold under agreements to repurchase, and securities loaned by remaining contractual maturity and class of collateral pledged as of March 31, 2017 and December 31, 2016 : March 31, 2017 Overnight and Up to 31 - 90 Greater than (Dollars in millions) continuous 30 days days 90 days Total Securities sold under agreements to repurchase: U.S. Treasury securities $ 10,925 $ 1,886 $ 677 $ 96 $ 13,584 U.S. agency securities 30 3 — — 33 Other sovereign government obligations 7 20 1 — 28 Money market securities 14 24 34 — 72 Asset-backed securities 1 1 28 — 30 Mortgage-backed securities 9,384 3,701 5,372 — 18,457 Corporate bonds 379 824 1,031 — 2,234 Municipal securities 157 54 143 — 354 Equities 362 49 164 — 575 Total $ 21,259 $ 6,562 $ 7,450 $ 96 $ 35,367 Securities loaned: Equities 718 51 99 — 868 Total $ 718 $ 51 $ 99 $ — $ 868 December 31, 2016 Overnight and Up to 31 - 90 Greater than (Dollars in millions) continuous 30 days days 90 days Total Securities sold under agreements to repurchase: U.S. Treasury securities $ 11,419 $ 1,523 $ 712 $ 316 $ 13,970 U.S. agency securities 42 30 — — 72 Other sovereign government obligations — — 16 — 16 Asset-backed securities 20 15 66 — 101 Mortgage-backed securities 8,792 4,450 4,750 — 17,992 Corporate bonds 405 800 909 — 2,114 Municipal securities 74 65 299 — 438 Equities 452 275 164 — 891 Total $ 21,204 $ 7,158 $ 6,916 $ 316 $ 35,594 Securities loaned: Corporate bonds $ 8 $ — $ — $ — $ 8 Equities 562 — 91 — 653 Total $ 570 $ — $ 91 $ — $ 661 The Company enters into reverse repurchase agreements, repurchase agreements and securities borrow and loan transactions. Under these agreements and transactions, the Company either receives or provides collateral. The Company receives collateral in the form of securities in connection with reverse repurchase agreements and securities borrowed transactions. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to secure repurchase agreements or enter into securities lending transactions. For additional information related to securities pledged and received as collateral, refer to Note 2 to these consolidated financial statements. |
Commercial Paper and Other Shor
Commercial Paper and Other Short-Term Borrowings | 3 Months Ended |
Mar. 31, 2017 | |
Short-term Debt [Abstract] | |
Commercial Paper and Other Short-Term Borrowings | Commercial Paper and Other Short-Term Borrowings The following table is a summary of the Company's commercial paper and other short-term borrowings: (Dollars in millions) March 31, 2017 December 31, 2016 Debt issued by MUB Federal funds purchased, with weighted average interest rates of 0.72% and 0.50% at March 31, 2017 and December 31, 2016, respectively $ 40 $ 26 Commercial paper, with a weighted average interest rate of 0.71% and 0.55% at March 31, 2017 and December 31, 2016, respectively 651 263 Federal Home Loan Bank advances, with a weighted average interest rate of 0.62% and 0.59% at March 31, 2017 and December 31, 2016, respectively 1,600 700 Total debt issued by MUB 2,291 989 Debt issued by other MUAH subsidiaries Short-term debt due to BTMU, with weighted average interest rates of 1.47% and 0.49% at March 31, 2017 and December 31, 2016, respectively 425 679 Short-term debt due to affiliates, with weighted average interest rates of (0.07)% and (0.04)% at March 31, 2017 and December 31, 2016, respectively 771 692 Total debt issued by other MUAH subsidiaries 1,196 1,371 Total commercial paper and other short-term borrowings $ 3,487 $ 2,360 Short-term debt due to BTMU consists of both secured and unsecured fixed and floating rate borrowings. MUSA maintains an uncommitted, unsecured lending facility with Mitsubishi UFJ Securities Holdings Co., Ltd. under which it may borrow up to $1.4 billion . Under the terms of the facility, MUSA can choose to borrow in Japanese Yen or US Dollars. Japanese Yen denominated borrowings include an extension option allowing MUSA to extend the maturity of an individual draw by 100 days at any time prior to its original, stated maturity. At March 31, 2017 , MUSA had ¥86 billion ( $771 million USD equivalent) drawn under this facility. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of borrowings having an original maturity of one year or more. The following is a summary of the Company's long-term debt: (Dollars in millions) March 31, 2017 December 31, 2016 Debt issued by MUAH Senior debt: Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016 $ 250 $ 250 Fixed rate 1.625% notes due February 2018 449 449 Fixed rate 2.25% notes due February 2020 997 997 Fixed rate 3.50% notes due June 2022 397 397 Fixed rate 3.00% notes due February 2025 496 496 Senior debt due to BTMU: Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017 3,500 — Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017 21 — Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016 545 545 Subordinated debt due to BTMU: Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016 300 300 Junior subordinated debt payable to trusts: Floating rate note due September 2036. This note had an interest rate of 2.83% at March 31, 2017 and 2.66% at December 31, 2016 36 36 Total debt issued by MUAH 6,991 3,470 Debt issued by MUB Senior debt: Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016 250 250 Fixed rate 2.125% notes due June 2017 500 500 Fixed rate 2.625% notes due September 2018 999 999 Fixed rate 2.250% notes due May 2019 500 500 Senior debt due to BTMU: Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016 — 1,000 Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016 — 1,500 Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016 — 1,000 Subordinated debt due to BTMU: Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016 750 750 Other 61 58 Total debt issued by MUB 3,060 6,557 Debt issued by other MUAH subsidiaries Senior Debt due to BTMU: Various floating rate borrowings due between November 2020 and April 2021. These notes, which bear interest above 3-month LIBOR had a weighted-average interest rate of 1.15% at March 31, 2017 and 0.99% at December 31, 2016 250 250 Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016 288 384 Subordinated Debt due to Affiliate: Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016 185 185 Nonrecourse Debt due to BTMU: Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016 127 127 Nonrecourse Debt: Fixed rate nonrecourse borrowings due December 2026 which had an interest rate of 5.34% at March 31, 2017 and December 31, 2016 38 39 Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016 394 398 Total debt issued by other MUAH subsidiaries 1,282 1,383 Total long-term debt $ 11,333 $ 11,410 MUAH Senior Debt due to BTMU During the three months ended March 31, 2017 , MUAH borrowed $3.5 billion from BTMU in the form of a senior loan. MUAH may prepay the loan prior to the stated maturity date in whole or in part and in an amount of not less than $500,000 . BTMU may accelerate the payment of the loan, in the case of certain events of default. The proceeds of the BTMU Loan have funded loans to MUAH’s subsidiaries. Simultaneously with the funding of the BTMU Loan on March 31, 2017, MUFG Union Bank, N.A., a wholly-owned subsidiary of MUAH, prepaid three loans from BTMU totaling $3.5 billion . |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Fair Value of Financial Instruments | Fair Value Measurement and Fair Value of Financial Instruments Valuation Methodologies Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between willing market participants at the measurement date. The Company has an established and documented process for determining fair value for financial assets and liabilities that are measured at fair value on either a recurring or nonrecurring basis. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is based upon valuation techniques that use, where possible, current market-based or independently sourced parameters, such as yield curves, foreign exchange rates, credit spreads, commodity prices and implied volatilities. Valuation adjustments may be made to ensure the financial instruments are recorded at fair value. These adjustments include amounts that reflect counterparty credit quality and that consider the Company's own creditworthiness in determining the fair value of its trading assets and liabilities. For further information related to the valuation methodologies used for certain financial assets and financial liabilities measured at fair value, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K. Fair Value Hierarchy In determining fair value, the Company maximizes the use of observable market inputs and minimizes the use of unobservable inputs. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect the Company’s estimate about market data. Based on the observability of the significant inputs used, the Company classifies its fair value measurements in accordance with the three-level hierarchy as defined by GAAP. This hierarchy is based on the quality, observability and reliability of the information used to determine fair value. For further information related to the fair value hierarchy, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K. Valuation Processes The Company has established a valuation committee to oversee its valuation framework for measuring fair value and to establish valuation policies and procedures. The valuation committee’s responsibilities include reviewing fair value measurements and categorizations within the fair value hierarchy and monitoring the use of pricing sources, mark-to-model valuations, dealer quotes and other valuation processes. The valuation committee reports to the Company’s Disclosure & Accounting Committee and meets at least quarterly. Independent price verification is performed periodically by the Company to test the market data and valuations of substantially all instruments measured at fair value on a recurring basis. As part of its independent price verification procedures, the Company compares pricing sources, tests data variances within certain thresholds and performs variance analysis, utilizing third party valuations and both internal and external models. Results are formally reported on a quarterly basis to the valuation committee. For further information related to valuation processes, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K. Fair Value Measurements on a Recurring Basis The following tables present financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 , by major category and by valuation hierarchy level: March 31, 2017 (Dollars in millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Fair Value Assets Trading account assets: U.S. Treasury securities $ — $ 1,902 $ — $ — $ 1,902 U.S. government-sponsored agency securities — 121 — — 121 State and municipal securities — 8 — — 8 Commercial paper — 75 — — 75 Other sovereign government obligations — 31 — — 31 Corporate bonds — 1,273 — — 1,273 Asset-backed securities — 183 — — 183 Mortgage-backed securities — 4,582 — — 4,582 Equities 42 — — — 42 Interest rate derivative contracts 4 984 2 (361 ) 629 Commodity derivative contracts — 132 1 (124 ) 9 Foreign exchange derivative contracts 1 185 1 (119 ) 68 Equity derivative contracts — — 168 (165 ) 3 Total trading account assets 47 9,476 172 (769 ) 8,926 Securities available for sale: U.S. Treasury — 2,813 — — 2,813 Residential mortgage-backed securities: U.S government and government-sponsored agencies — 7,378 — — 7,378 Privately issued — 426 — — 426 Privately issued - commercial mortgage-backed securities — 663 — — 663 Collateralized loan obligations — 1,997 — — 1,997 Other — 7 — — 7 Other debt securities: Direct bank purchase bonds — — 1,543 — 1,543 Other — 67 26 — 93 Equity securities 5 — — — 5 Total securities available for sale 5 13,351 1,569 — 14,925 Other assets: Mortgage servicing rights — — 34 — 34 Interest rate hedging contracts — 7 — (5 ) 2 Other derivative contracts — 16 1 (13 ) 4 Total other assets — 23 35 (18 ) 40 Total assets $ 52 $ 22,850 $ 1,776 $ (787 ) $ 23,891 Percentage of total — % 96 % 7 % (3 )% 100 % Percentage of total Company assets — % 15 % 1 % (1 )% 15 % Liabilities Trading account liabilities: Securities sold, not yet purchased: U.S. Treasury $ — $ 2,113 $ — $ — $ 2,113 State and municipal — 10 — — 10 Other sovereign government obligations — 35 — — 35 Corporate bonds — 474 — — 474 Equities 42 — — — 42 Trading derivatives: Interest rate derivative contracts 3 922 — (665 ) 260 Commodity derivative contracts — 104 — (55 ) 49 Foreign exchange derivative contracts 1 99 1 (18 ) 83 Equity derivative contracts — — 167 — 167 Total trading account liabilities 46 3,757 168 (738 ) 3,233 Other liabilities: FDIC clawback liability — — 113 — 113 Interest rate hedging contracts — 230 — (230 ) — Other derivative contracts — — 6 — 6 Total other liabilities — 230 119 (230 ) 119 Total liabilities $ 46 $ 3,987 $ 287 $ (968 ) $ 3,352 Percentage of total 1 % 119 % 9 % (29 )% 100 % Percentage of total Company liabilities — % 3 % — % (1 )% 2 % (1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. December 31, 2016 (Dollars in millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Fair Value Assets Trading account assets: U.S. Treasury securities $ — $ 1,730 $ — $ — $ 1,730 U.S. government-sponsored agency securities — 73 — — 73 State and municipal securities — 18 — — 18 Commercial paper — 1 — — 1 Other sovereign government obligations — 16 — — 16 Corporate bonds — 841 — — 841 Asset-backed securities — 106 — — 106 Mortgage-backed securities — 5,221 — — 5,221 Equities 85 — — — 85 Interest rate derivative contracts 7 1,065 2 (343 ) 731 Commodity derivative contracts — 144 1 (106 ) 39 Foreign exchange derivative contracts 1 215 1 (138 ) 79 Equity derivative contracts 1 — 164 (163 ) 2 Total trading account assets 94 9,430 168 (750 ) 8,942 Securities available for sale: U.S. Treasury — 2,505 — — 2,505 Residential mortgage-backed securities: U.S government and government-sponsored agencies — 6,695 — — 6,695 Privately issued — 327 — — 327 Privately issued - commercial mortgage-backed securities — 664 — — 664 Collateralized loan obligations — 2,218 — — 2,218 Other — 7 — — 7 Other debt securities: Direct bank purchase bonds — — 1,613 — 1,613 Other — 82 25 — 107 Equity securities 5 — — — 5 Total securities available for sale 5 12,498 1,638 — 14,141 Other assets: Mortgage servicing rights — — 23 — 23 Interest rate hedging contracts — 22 — (20 ) 2 Other derivative contracts — 2 1 — 3 Total other assets — 24 24 (20 ) 28 Total assets $ 99 $ 21,952 $ 1,830 $ (770 ) $ 23,111 Percentage of total — % 95 % 8 % (3 )% 100 % Percentage of total Company assets — % 15 % 1 % (1 )% 15 % Liabilities Trading account liabilities: Securities sold, not yet purchased: U.S. Treasury $ — $ 1,973 $ — $ — $ 1,973 Other sovereign government obligations — 11 — — 11 Corporate bonds — 298 — — 298 Equities 47 — — — 47 Trading derivatives: Interest rate derivative contracts 1 987 — (718 ) 270 Commodity derivative contracts — 111 1 (68 ) 44 Foreign exchange derivative contracts 1 129 1 (33 ) 98 Equity derivative contracts — — 164 — 164 Total trading account liabilities 49 3,509 166 (819 ) 2,905 Other liabilities: FDIC clawback liability — — 115 — 115 Interest rate hedging contracts — 199 — (199 ) — Other derivative contracts — 84 6 (29 ) 61 Total other liabilities — 283 121 (228 ) 176 Total liabilities $ 49 $ 3,792 $ 287 $ (1,047 ) $ 3,081 Percentage of total 2 % 123 % 9 % (34 )% 100 % Percentage of total Company liabilities — % 3 % — % (1 )% 2 % (1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 and 2016 . Level 3 available for sale securities at March 31, 2017 and 2016 primarily consist of direct bank purchase bonds. The Company’s policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period. For the Three Months Ended March 31, 2017 March 31, 2016 (Dollars in millions) Trading Assets Securities Available for Sale Other Assets Trading Liabilities Other Liabilities Trading Assets Securities Available for Sale Other Assets Trading Liabilities Other Liabilities Asset (liability) balance, beginning of period $ 168 $ 1,638 $ 24 $ (166 ) $ (121 ) $ 228 $ 1,603 $ 1 $ (223 ) $ (114 ) Total gains (losses) (realized/unrealized): Included in income before taxes 30 — — (28 ) 2 (18 ) — 1 17 (2 ) Included in other comprehensive income — 3 — — — — (2 ) — — — Purchases/additions — 1 11 — — — 78 — — — Sales — — — — — — — — — — Settlements (26 ) (73 ) — 26 — (21 ) (66 ) — 19 — Transfers in (out) of level 3 — — — — — — — 13 — — Asset (liability) balance, end of period $ 172 $ 1,569 $ 35 $ (168 ) $ (119 ) $ 189 $ 1,613 $ 15 $ (187 ) $ (116 ) Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period $ 30 $ — $ — $ (28 ) $ 2 $ (18 ) $ — $ 1 $ 17 $ (2 ) The following table presents information about significant unobservable inputs related to the Company’s significant Level 3 assets and liabilities at March 31, 2017 . March 31, 2017 (Dollars in millions) Level 3 Fair Value Valuation Technique Significant Unobservable Input(s) Range of Inputs Weighted Average Securities available for sale: Direct bank purchase bonds $ 1,543 Return on equity Market-required return on capital 8.0 - 10.0 % 9.7 % Probability of default 0.0 - 25.0 % 0.3 % Loss severity 10.0 - 60.0 % 28.5 % The direct bank purchase bonds use a return on equity valuation technique. This technique uses significant unobservable inputs such as market-required return on capital, probability of default and loss severity. Increases (decreases) in any of these inputs in isolation would result in a lower (higher) fair value measurement. Fair Value Measurement on a Nonrecurring Basis Certain assets may be measured at fair value on a nonrecurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2017 and 2016 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment. March 31, 2017 Gain (Loss) For the Three Months Ended March 31, 2017 (Dollars in millions) Fair Value Level 1 Level 2 Level 3 Loans: Impaired loans $ 139 $ — $ — $ 139 $ (16 ) Other assets: Software — — — — (3 ) Loans held for sale 15 — — 15 (2 ) Renewable energy investment 9 — — 9 2 Total $ 163 $ — $ — $ 163 $ (19 ) March 31, 2016 Gain (Loss) For the Three Months Ended March 31, 2016 (Dollars in millions) Fair Value Level 1 Level 2 Level 3 Loans: Impaired loans $ 375 $ — $ — $ 375 $ (127 ) Premises and equipment — — — — (4 ) Other assets: Loans held for sale 5 — — 5 (3 ) OREO 2 — — 2 (1 ) Private equity investments 10 — — 10 (12 ) Intangible assets — — — — (1 ) Total $ 392 $ — $ — $ 392 $ (148 ) Loans include individually impaired loans that are measured based on the fair value of the underlying collateral or the fair value of the loan. The fair value of impaired loans was determined based on appraised values of the underlying collateral or market pricing for the loan, adjusted for management judgment, as of the measurement date. The fair value of OREO was primarily based on independent appraisals. The fair value of private equity investments and renewable energy investments was determined using a discounted cash flow analysis and market pricing, adjusted for management judgment, as of the measurement date. The fair value of software, premises and equipment, and intangible assets was determined using appraised values and market pricing, adjusted for management judgment, as of the measurement date. Fair Value of Financial Instruments Disclosures The tables below present the carrying amount and estimated fair value of certain financial instruments, classified by valuation hierarchy level as of March 31, 2017 and as of December 31, 2016 : March 31, 2017 (Dollars in millions) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 4,827 $ 4,827 $ 4,827 $ — $ — Securities borrowed or purchased under resale agreements 19,992 19,992 — 19,992 — Securities held to maturity 10,374 10,348 — 10,348 — Loans held for investment (1) 76,105 77,234 — — 77,234 Liabilities Deposits $ 86,533 $ 86,519 $ — $ 86,519 $ — Commercial paper and other short-term borrowings 3,487 3,487 — 3,487 — Securities loaned or sold under repurchase agreements 25,079 25,079 — 25,079 — Long-term debt 11,333 11,348 — 11,348 — Off-Balance Sheet Instruments Commitments to extend credit and standby and commercial letters of credit $ 202 $ 202 $ — $ — $ 202 (1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses. December 31, 2016 (Dollars in millions) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 5,753 $ 5,753 $ 5,753 $ — $ — Securities borrowed or purchased under resale agreements 19,747 19,747 — 19,747 — Securities held to maturity 10,337 10,316 — 10,316 — Loans held for investment (1) 75,112 76,257 — — 76,257 Liabilities Deposits $ 86,947 $ 86,930 $ — $ 86,930 $ — Commercial paper and other short-term borrowings 2,360 2,360 — 2,360 — Securities loaned or sold under repurchase agreements 24,616 24,616 — 24,616 — Long-term debt 11,410 11,411 — 11,411 — Off-Balance Sheet Instruments Commitments to extend credit and standby and commercial letters of credit $ 221 $ 221 $ — $ — $ 221 (1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses. For further information on methodologies for approximating fair values, see Note 12 to the Consolidated Financial Statements in Part II, Item 8. “Financial Statements and Supplementary Data” in our 2016 Form 10-K. |
Derivative Instruments and Othe
Derivative Instruments and Other Financial Instruments Used For Hedging | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Other Financial Instruments Used For Hedging | Derivative Instruments and Other Financial Instruments Used For Hedging The Company enters into certain derivative and other financial instruments primarily to assist customers with their risk management objectives and to manage the Company’s exposure to interest rate risk. When entering into derivatives on behalf of customers, the Company generally acts as a financial intermediary by offsetting a significant portion of the market risk for these derivatives with third parties. The Company may also enter into derivatives for other risk management purposes. All derivative instruments are recognized as assets or liabilities on the consolidated balance sheets at fair value. Counterparty credit risk is inherent in derivative instruments. In order to reduce its exposure to counterparty credit risk, the Company utilizes credit approvals, limits, monitoring procedures and master netting and credit support annex agreements. Additionally, the Company considers counterparty credit quality and the creditworthiness of the Company in estimating the fair value of derivative instruments. The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated as hedging instruments as of March 31, 2017 and December 31, 2016 , respectively. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively. March 31, 2017 December 31, 2016 Fair Value Fair Value Notional Asset Liability Notional Asset Liability (Dollars in millions) Amount Derivatives Derivatives Amount Derivatives Derivatives Cash flow hedges Interest rate contracts $ 13,244 $ 6 $ 230 $ 15,459 $ 19 $ 199 Fair value hedges Interest rate contracts 500 1 — 500 3 — Not designated as hedging instruments: Trading Interest rate contracts 145,724 990 925 149,229 1,074 988 Commodity contracts 2,462 133 104 2,825 145 112 Foreign exchange contracts 5,756 187 101 5,981 217 131 Equity contracts 1,995 168 167 2,385 165 164 Other contracts 21 — — 4 — — Total Trading 155,958 1,478 1,297 160,424 1,601 1,395 Other risk management 1,003 17 6 1,045 3 90 Total derivative instruments $ 170,705 $ 1,502 $ 1,533 $ 177,428 $ 1,626 $ 1,684 We recognized net gains of $4 million and net losses of $2 million on other risk management derivatives for the three months ended March 31, 2017 and 2016 , respectively, which are included in other noninterest income. Derivatives Designated and Qualifying as Hedging Instruments The Company uses interest rate derivatives to manage the financial impact on the Company from changes in market interest rates. These instruments are used to manage interest rate risk relating to specified groups of assets and liabilities, primarily LIBOR-based commercial loans and debt issuances. Derivatives that qualify for hedge accounting are designated as either fair value or cash flow hedges. Cash Flow Hedges The Company uses interest rate swaps to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans, and to a lesser extent, to hedge interest rate risk on rollover debt. The Company used interest rate swaps with a notional amount of $13.0 billion at March 31, 2017 to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed loans. To the extent effective, payments received or paid under the swap contract offset fluctuations in interest income on loans caused by changes in the relevant LIBOR index. The Company used interest rate swaps with a notional amount of $294 million at March 31, 2017 to hedge the risk of changes in cash flows attributable to changes in the designated benchmark interest rate on LIBOR indexed short-term borrowings. At March 31, 2017 , the weighted average remaining life of the active cash flow hedges was 3.84 years. For cash flow hedges, the effective portion of the gain or loss on the hedging instruments is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged cash flows are recognized in net interest income. Gains and losses representing hedge ineffectiveness are recognized in noninterest expense in the period in which they arise. At March 31, 2017 , the Company expects to reclassify approximately $47 million of income from AOCI to net interest income during the twelve months ending March 31, 2018. This amount could differ from amounts actually realized due to changes in interest rates, hedge terminations and the addition of other hedges subsequent to March 31, 2017 . The following tables present the amount and location of the net gains and losses recorded in the Company’s consolidated statements of income and changes in stockholder’s equity for derivatives designated as cash flow hedges for the three months ended March 31, 2017 and 2016 : Amount of Gain or (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (Gain) Loss Recognized in Income on Derivative Instruments (Ineffective Portion) For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, (Dollars in millions) 2017 2016 Location 2017 2016 Location 2017 2016 Derivatives in cash flow hedging relationships Interest income $ 29 $ 42 Interest rate contracts $ (19 ) $ 261 Interest expense — — Noninterest expense $ 2 $ 1 Total $ (19 ) $ 261 $ 29 $ 42 $ 2 $ 1 Fair Value Hedges The Company engages in an interest rate hedging strategy in which one or more interest rate swaps are associated with a specified interest bearing liability, in order to convert the liability from a fixed rate to a floating rate instrument. This strategy mitigates the changes in fair value of the hedged liability caused by changes in the designated benchmark interest rate, U.S. dollar LIBOR. For fair value hedges, any ineffectiveness is recognized in noninterest expense in the period in which it arises. The change in the fair value of the hedged item and the hedging instrument, to the extent completely effective, offsets with no impact on earnings. The following table presents the gains (losses) on the Company's fair value hedges and hedged item for the three months ended March 31, 2017 and 2016 , respectively: For the Three Months Ended March 31, 2017 (Dollars in millions) Derivative Hedged Item Hedge Ineffectiveness Interest rate risk on long-term debt $ (2 ) $ 1 $ (1 ) Total $ (2 ) $ 1 $ (1 ) For the Three Months Ended March 31, 2016 (Dollars in millions) Derivative Hedged Item Hedge Ineffectiveness Interest rate risk on long-term debt $ 7 $ (7 ) $ — Total $ 7 $ (7 ) $ — Derivatives Not Designated as Hedging Instruments Trading Derivatives Derivative instruments classified as trading are primarily derivatives entered into as an accommodation for customers. Trading derivatives are included in trading assets or trading liabilities with changes in fair value reflected in income from trading account activities. The majority of the Company's derivative transactions for customers were essentially offset by contracts with third parties that reduce or eliminate market risk exposures. The Company offers market-linked CD s, which allow the customer to earn the higher of either a minimum fixed rate of interest or a return tied to either equity, commodity, or currency indices. The Company offsets its exposure to the embedded derivative contained in market-linked CD s with a matched over-the-counter option. Both the embedded derivative (when bifurcated) and hedge options are recorded at fair value with the realized and unrealized changes in fair value recorded in noninterest income within trading account activities. The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the three months ended March 31, 2017 and 2016 : Gain or (Loss) Recognized in Income on Derivative Instruments For the Three Months Ended (Dollars in millions) March 31, 2017 March 31, 2016 Trading derivatives: Interest rate contracts $ (22 ) $ (9 ) Foreign exchange contracts 10 9 Total $ (12 ) $ — Offsetting Assets and Liabilities The Company primarily enters into derivative contracts and repurchase agreements with counterparties utilizing a standard International Swaps and Derivatives Association Master Agreements and Master Repurchase Agreements, respectively. These agreements generally establish the terms and conditions of the transactions, including a legal right to set-off amounts payable and receivable between the Company and a counterparty, regardless of whether or not such amounts have matured or have contingency features. For additional information related to offsetting of financial assets and liabilities, refer to Note 5 to these consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables present the change in each of the components of accumulated other comprehensive income and the related tax effect of the change allocated to each component for the three months ended March 31, 2017 and 2016 : (Dollars in millions) Before Tax Amount Tax Effect Net of Tax For the Three Months Ended March 31, 2017 Cash flow hedge activities: Unrealized net gains (losses) on hedges arising during the period $ (19 ) $ 7 $ (12 ) Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt (29 ) 11 (18 ) Net change (48 ) 18 (30 ) Securities: Unrealized holding gains (losses) arising during the period on securities available for sale 56 (23 ) 33 Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net (2 ) 1 (1 ) Amortization of net unrealized (gains) losses on held to maturity securities 5 (2 ) 3 Net change 59 (24 ) 35 Foreign currency translation adjustment 1 — 1 Pension and other benefits: Amortization of prior service credit (1) (12 ) 5 (7 ) Recognized net actuarial (gain) loss (1) 23 (9 ) 14 Net change 11 (4 ) 7 Net change in AOCI $ 23 $ (10 ) $ 13 (1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements. (Dollars in millions) Before Tax Amount Tax Effect Net of Tax For the Three Months Ended March 31, 2016 Cash flow hedge activities: Unrealized net gains (losses) on hedges arising during the period $ 261 $ (103 ) $ 158 Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt (42 ) 16 (26 ) Net change 219 (87 ) 132 Securities: Unrealized holding gains (losses) arising during the period on securities available for sale 157 (62 ) 95 Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net (13 ) 5 (8 ) Amortization of net unrealized (gains) losses on held to maturity securities 5 (2 ) 3 Net change 149 (59 ) 90 Foreign currency translation adjustment 7 (3 ) 4 Pension and other benefits: Amortization of prior service credit (1) (6 ) 3 (3 ) Recognized net actuarial (gain) loss (1) 22 (9 ) 13 Net change 16 (6 ) 10 Other (2 ) — (2 ) Net change in AOCI $ 389 $ (155 ) $ 234 (1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements. The following tables present the change in accumulated other comprehensive loss balances: For the Three Months Ended March 31, 2016 and 2017: Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Securities Foreign Currency Translation Adjustment Pension and Other Postretirement Benefits Adjustment Other Accumulated Other Comprehensive Loss (Dollars in millions) Balance December 31, 2015 $ 38 $ (152 ) $ (24 ) $ (612 ) $ — $ (750 ) Other comprehensive income (loss) before reclassifications 158 98 4 — — 260 Amounts reclassified from AOCI (26 ) (8 ) — 10 (2 ) (26 ) Balance, March 31, 2016 $ 170 $ (62 ) $ (20 ) $ (602 ) $ (2 ) $ (516 ) Balance, December 31, 2016 $ (77 ) $ (208 ) $ (22 ) $ (589 ) $ — $ (896 ) Other comprehensive income (loss) before reclassifications (12 ) 36 1 — — 25 Amounts reclassified from AOCI (18 ) (1 ) — 7 — (12 ) Balance, March 31, 2017 $ (107 ) $ (173 ) $ (21 ) $ (582 ) $ — $ (883 ) |
Employee Pension and Other Post
Employee Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Pension and Other Postretirement Benefits | Employee Pension and Other Postretirement Benefits The following table summarizes the components of net periodic benefit cost for the three months ended March 31, 2017 and 2016 . Pension Benefits Other Postretirement Benefits Superannuation, SERP and ESBP For the Three Months Ended For the Three Months Ended For the Three Months Ended (Dollars in millions) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 19 $ 23 $ 2 $ 2 $ — $ 1 Interest cost 25 26 2 3 1 — Expected return on plan assets (64 ) (60 ) (5 ) (5 ) — — Amortization of prior service credit (7 ) (4 ) (5 ) (2 ) — — Recognized net actuarial loss 19 19 3 2 1 1 Total net periodic benefit cost $ (8 ) $ 4 $ (3 ) $ — $ 2 $ 2 |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees The following table summarizes the Company's commitments: (Dollars in millions) March 31, 2017 Commitments to extend credit $ 30,976 Issued standby and commercial letters of credit 5,770 Commitments to enter into forward-starting resale agreements 502 Other commitments 1,605 Commitments to extend credit are legally binding agreements to lend to a customer provided there are no violations of any condition established in the contract. Commitments have fixed expiration dates or other termination clauses and may require maintenance of compensatory balances. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit are generally contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate foreign or domestic trade transactions. Additionally, the Company enters into risk participations in bankers' acceptances wherein a fee is received to guarantee a portion of the credit risk on an acceptance of another bank. The majority of these types of commitments have terms of 1 year or less. At March 31, 2017 , the carrying amount of the Company's risk participations in bankers' acceptances and standby and commercial letters of credit totaled $3 million . Estimated exposure to loss related to these commitments is covered by the allowance for losses on unfunded commitments. The carrying amounts of the standby and commercial letters of credit and the allowance for losses on unfunded credit commitments are included in other liabilities on the consolidated balance sheet. The credit risk involved in issuing loan commitments and standby and commercial letters of credit is essentially the same as that involved in extending loans to customers and is represented by the contractual amount of these instruments. Collateral may be obtained based on management's credit assessment of the customer. Other commitments include collateralized financing activities, commitments to fund principal investments, other securities, and residual value guarantees. The Company has three committed facilities to provide collateralized financing to third parties, up to an aggregate of $1.4 billion . One of these facilities is shared with an affiliate with an aggregate commitment up to $250 million . At March 31, 2017 , the facilities were not drawn down. For the three months ended March 31, 2017 , commitment fees were nominal. Principal investments include direct investments in private and public companies. The Company issues commitments to provide equity and mezzanine capital financing to private and public companies through direct investments. The timing of future cash requirements to fund such commitments is generally dependent on the investment cycle. This cycle, the period over which privately held companies are funded by private equity investors and ultimately sold, merged, or taken public through an initial offering, can vary based on overall market conditions as well as the nature and type of industry in which the companies operate. The Company occasionally enters into financial guarantee contracts where a premium is received from another financial institution counterparty to guarantee a portion of the credit risk on interest rate swap contracts entered into between the financial institution and its customer. The Company becomes liable to pay the financial institution only if the financial institution is unable to collect amounts owed to them by their customer. As of March 31, 2017 , the current exposure to loss under these contracts totaled $13 million , and the maximum potential exposure to loss in the future was estimated at $42 million . The Company is subject to various pending and threatened legal actions that arise in the normal course of business. The Company maintains liabilities for losses from legal actions that are recorded when they are determined to be both probable in their occurrence and can be reasonably estimated. Management believes the disposition of all claims currently pending, including potential losses from claims that may exceed the liabilities recorded, and claims for loss contingencies that are considered reasonably possible to occur, will not have a material effect, either individually or in the aggregate, on the Company's consolidated financial condition, results of operations or liquidity. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has five reportable segments: Regional Bank, U.S. Wholesale Banking, Transaction Banking, Investment Banking & Markets and MUFG Securities Americas Inc. Below is a detailed description of these reportable segments. Regional Bank The Regional Bank provides banking products and services to individual and business customers in California, Washington and Oregon through five major business lines. Consumer Banking serves consumers and small businesses through 352 full-service branches, digital channels, call centers, ATMs and alliances with other financial institutions. Products and services include checking and deposit accounts; residential mortgage loans; consumer loans; home equity lines of credit; credit cards; bill and loan payment services; and merchant services. Commercial Banking provides commercial and asset-based loans to clients across a wide range of industries with annual revenues up to $1 billion . Through partnerships with other areas of the Bank, Commercial Banking clients also have access to non-credit products and services including global treasury management , capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services. Real Estate Industries provides financing solutions for existing properties and construction projects to professional real estate developers. Property types supported include apartment, office, retail, industrial and single-family residential on the West Coast and in select metropolitan areas across the country. Real Estate Industries also makes tax credit investments in affordable housing projects through its Community Development Finance unit. Through partnerships with other areas of the bank, Real Estate Industries clients also have access to non-credit products and services including global treasury management, capital markets solutions, foreign exchange and interest rate risk and commodity risk management products and services . Wealth Markets serves corporate, institutional, non-profit and individual clients. Capabilities include Wealth Planning / Trust & Estate Services; Investment Management through HighMark Capital Management, Inc., an SEC-registered investment advisory firm wholly-owned by the bank; Brokerage through UnionBanc Investment Services, LLC, an SEC-registered broker-dealer/investment advisory firm wholly-owned by the bank; and Private Wealth Management. PurePoint Financial serves consumers through a national deposit platform offering savings accounts and CD products to customers through an online platform with services provided through a call center and a network of financial centers in Florida, Illinois and Texas. U.S. Wholesale Banking U.S. Wholesale Banking provides commercial lending products, including commercial loans, lines of credit and project financing, to corporate customers with revenues generally greater than $1 billion . The segment employs an industry-focused strategy including dedicated coverage teams in General Industries, Power and Utilities, Oil and Gas, Telecom and Media, Technology, Healthcare and Nonprofit, Public Finance, and Financial Institutions (predominantly Insurance and Asset Managers). By working with the Company's other segments, U.S. Wholesale Banking offers its customers a range of noncredit services, which include global treasury management, capital market solutions, and various foreign exchange, interest rate risk and commodity risk management products. Transaction Banking Transaction Banking works alongside the Company's other segments to provide working capital management and asset servicing solutions, including deposits and treasury management, trade finance, and institutional trust and custody, to the Company's customers. The client base consists of financial institutions, corporations, government agencies, insurance companies, mutual funds, investment managers and non-profit organizations. Investment Banking & Markets Investment Banking & Markets, which includes Global Capital Markets of the Americas, works with the Company's other segments to provide customers structured credit services, including project finance, leasing and equipment finance, commercial finance, funds finance and securitizations. Investment Banking & Markets also provides capital markets solutions, including syndicated loans, equity and debt underwriting, tax equity and merchant banking investments; risk management solutions, including foreign exchange, interest rate and energy risk management solutions; and facilitates merchant and investment banking-related transactions. MUFG Securities Americas Inc. MUSA is MUAH's broker-dealer subsidiary which engages in capital markets origination transactions, private placements, collateralized financings, securities borrowing and lending transactions, and domestic and foreign debt and equity securities transactions. Other The Company generally applies a "market view" perspective in measuring the business segments. The market view is a measurement of customer markets aggregated to show all revenues generated and expenses incurred from all products and services sold to those customers regardless of where product areas organizationally report. Therefore, revenues and expenses are included in both the business segment that provides the service and the business segment that manages the customer relationship. The duplicative results from this internal management accounting view are eliminated in "Other." Certain of the transferred IHC entities are not measured using a "market view" perspective. "Other" includes the Asian Corporate Banking segment and Corporate Treasury. The Asian Corporate Banking segment offers a range of credit, deposit, and investment management products and services to companies located primarily in the U.S. that are affiliated with companies headquartered in Japan and other Asian countries. Corporate Treasury is responsible for ALM , wholesale funding and the ALM investment and derivatives hedging portfolios. These treasury management activities are carried out to manage the net interest rate and liquidity risks of the Company's balance sheet and to manage those risks within the guidelines established by ALCO . For additional discussion regarding these risk management activities, see Part I, Item 3. “Quantitative and Qualitative Disclosures About Market Risk” in this Form 10-Q. Additionally, "Other" is comprised of certain corporate activities of the Company; the net impact of funds transfer pricing charges and credits allocated to the reportable segments; the residual costs of support groups; fees from affiliates and noninterest expenses associated with BTMU's U.S. branch banking operations; the unallocated allowance; goodwill, intangible assets, and the related amortization/accretion associated with the Company's privatization transaction; the elimination of the fully taxable-equivalent basis amount; the difference between the marginal tax rate and the consolidated effective tax rate; and FDIC covered assets. The information, set forth in the tables that follow, is prepared using various management accounting methodologies to measure the performance of the individual segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were unique economic entities. The management reporting accounting methodologies, which are enhanced from time to time, measure segment profitability by assigning balance sheet and statements of income items to each operating segment. Methodologies that are applied to the measurement of segment profitability include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics between Corporate Treasury and the operating segments. A segment receives a funding credit from Corporate Treasury for its liabilities. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets. Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Beginning with the second quarter of 2016, the Company revised its methodology for allocating certain indirect costs to the segments. Beginning with the third quarter of 2016, the Company revised its funds transfer pricing methodology related to certain deposits. Prior period results have been updated to reflect these changes in methodology. Certain of the transferred IHC entities are not measured using management accounting methodologies. As of and for the Three Months Ended March 31, 2017: (Dollars in millions) Regional Bank U.S. Wholesale Banking Transaction Banking Investment Banking & Markets MUSA Other MUFG Americas Holdings Corporation Results of operations - Market View (1) Net interest income (expense) $ 498 $ 87 $ 137 $ 42 $ 59 $ (28 ) $ 795 Noninterest income (expense) 112 104 39 79 84 70 488 Total revenue 610 191 176 121 143 42 1,283 Noninterest expense 502 53 111 59 105 176 1,006 (Reversal of) provision for credit losses 2 — — (10 ) — (22 ) (30 ) Income (loss) before income taxes and including noncontrolling interests 106 138 65 72 38 (112 ) 307 Income tax expense (benefit) 23 55 26 (3 ) 15 (33 ) 83 Net income (loss) including noncontrolling interests 83 83 39 75 23 (79 ) 224 Deduct: net loss from noncontrolling interests — — — — — 5 5 Net income (loss) attributable to MUAH $ 83 $ 83 $ 39 $ 75 $ 23 $ (74 ) $ 229 Total assets, end of period $ 63,950 $ 11,179 $ 2,094 $ 13,778 $ 30,472 $ 28,205 $ 149,678 (1) The transferred IHC entities are not measured using a "market view" perspective. As of and for the Three Months Ended March 31, 2016: (Dollars in millions) Regional Bank U.S. Wholesale Banking Transaction Banking Investment Banking & Markets MUSA Other MUFG Americas Holdings Corporation Results of operations - Market View (1) Net interest income (expense) $ 475 $ 107 $ 113 $ 56 $ 25 $ (52 ) $ 724 Noninterest income (expense) 114 29 46 47 71 167 474 Total revenue 589 136 159 103 96 115 1,198 Noninterest expense 441 49 120 58 86 214 968 (Reversal of) provision for credit losses (2 ) 130 2 31 — 1 162 Income (loss) before income taxes and including noncontrolling interests 150 (43 ) 37 14 10 (100 ) 68 Income tax expense (benefit) 42 (17 ) 14 (19 ) 4 (6 ) 18 Net income (loss) including noncontrolling interests 108 (26 ) 23 33 6 (94 ) 50 Deduct: net loss from noncontrolling interests — — — 1 — 11 12 Net income (loss) attributable to MUAH $ 108 $ (26 ) $ 23 $ 34 $ 6 $ (83 ) $ 62 Total assets, end of period $ 62,190 $ 15,173 $ 2,522 $ 14,556 $ 32,961 $ 29,152 $ 156,554 (1) The transferred IHC entities are not measured using a "market view" perspective. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions MUAH is a financial holding company, bank holding company and intermediate holding company whose principal subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. (formerly Mitsubishi UFJ Securities (USA), Inc.). It is owned by BTMU and MUFG. BTMU is a wholly-owned subsidiary of MUFG. On July 1, 2016, in accordance with the requirements of the U.S. Federal Reserve Board’s final rules for Enhanced Prudential standards, MUAH was designated the U.S. Intermediate Holding Company of MUFG. The Company provides various business, banking, financial, administrative and support services, and facilities for BTMU in connection with the operation and administration of all of BTMU's business in the U.S. (including BTMU's U.S. branches). The Bank and BTMU participate in a master services agreement whereby the Bank earns fee income in exchange for services and facilities provided. In addition to the above, the Company conducts transactions with affiliates which include BTMU, MUFG and other entities which are directly or indirectly owned by MUFG. The transactions include capital market transactions, facilitating securities transactions, secured financing transactions, advisory services, clearing and operational support. Under services level agreements the Company provides services to and receives services from various affiliates. The Company also has referral agreements with its affiliates and pays referral fees from investment banking revenue earned. Related party transactions reflect market-based pricing. These transactions are subject to federal and state statutory and regulatory restrictions and limitations. The tables and discussion below represent the more significant related party balances and income (expenses) generated by related party transactions. As of March 31, 2017 and December 31, 2016 , assets and liabilities with affiliates consisted of the following: (Dollars in millions) March 31, 2017 December 31, 2016 Assets: Cash and cash equivalents $ 105 $ 102 Securities borrowed or purchased under resale agreements 2,386 2,765 Other assets 190 161 Liabilities: Deposits $ 661 $ 623 Securities loaned or sold under repurchase agreements 597 385 Commercial paper and other short-term borrowings 1,196 1,372 Long-term debt 5,966 6,042 Other liabilities 124 63 Revenue and expenses with affiliates for the three months ended March 31, 2017 and 2016 were as follows: For the Three Months Ended (Dollars in millions) 2017 2016 Interest Income Securities borrowed or purchased under resale agreements $ 7 $ 6 Interest Expense Commercial paper and other short-term borrowings 2 6 Long-term debt 28 7 Securities loaned or sold under repurchase agreements 1 — Noninterest Income Fees from affiliates 219 212 Other, net 2 — Noninterest Expense Other 25 24 At March 31, 2017 , the Company had $1.9 billion in uncommitted, unsecured borrowing facilities and $475 million in uncommitted, secured borrowing facilities with affiliates. See Note 6 and Note 7 to these consolidated financial statements for more information on debt due to affiliates. At March 31, 2017 and December 31, 2016 , the Company had derivative contracts with affiliates totaling $1.5 billion and $1.6 billion , respectively, in notional balances, with $76 million and $72 million in net unrealized gains at March 31, 2017 and December 31, 2016 , respectively. An affiliate extends guarantees on certain liabilities arising out of or in connection with agreements with certain counterparties. At March 31, 2017 , the guaranteed balance was $1 million . There was no amount guaranteed at December 31, 2016 . The guarantee fee was nominal for the three months ended March 31, 2017 , and 2016. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies and Nature of Operations (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited Consolidated Financial Statements of MUFG Americas Holdings Corporation, its subsidiaries, and its consolidated variable interest entities (the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Rules and Regulations of the SEC. However, they do not include all of the disclosures necessary for annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. |
Use of Estimates | The preparation of financial statements in conformity with GAAP also requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Although such estimates contemplate current conditions and management’s expectations of how they may change in the future, it is reasonably possible that actual results could differ significantly from those estimates. This could materially affect the Company’s results of operations and financial condition in the near term. Critical estimates made by management in the preparation of the Company’s financial statements include, but are not limited to, the allowance for credit losses ( Note 3 ), goodwill impairment, fair value of financial instruments ( Note 8 ), hedge accounting ( Note 9 ), pension accounting ( Note 11 ), income taxes, and transfer pricing. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides guidance on the core principle 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. This ASU applies to all contracts with customers, except financial instruments, guarantees, lease contracts, insurance contracts and certain non-monetary exchanges. It provides the following five-step revenue recognition model: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the ASU requires additional disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued ASU 2015-14, Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 to interim and annual periods beginning on January 1, 2018, with early adoption permitted in 2017. The Company plans to apply the modified retrospective method upon adoption on January 1, 2018. As part of our implementation progress to date, we have completed the impact assessment phase and are evaluating potential changes to processes and controls. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which amends the accounting, presentation, and disclosure requirements for certain financial instruments. The ASU requires that all equity investments be recorded at fair value through net income (other than those accounted for under equity method or result in consolidation of the investee); however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability under the fair value option. The ASU also clarifies that an entity must evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the entity’s other deferred tax assets. In addition, the ASU amends the presentation and disclosure requirements for financial instruments and now requires the use of an exit price notion when measuring the fair value of financial instruments for disclosure purposes. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted for the amendments to the accounting for financial liabilities under the fair value option. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, Leases , which will require entities that lease assets (i.e., lessees) to recognize assets and liabilities on their balance sheet for the rights and obligations created by those leases. The accounting by entities that own the assets leased (i.e., lessors) will remain largely unchanged; however, leveraged lease accounting will no longer be permitted for leases that commence after the effective date. The ASU will also require qualitative and quantitative disclosures about the amount, timing and uncertainty of cash flows arising from leases. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. The Company plans to adopt the ASU on January 1, 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. The Company has recently begun the planning phase for this project and management is in the initial stage of policy development and issue identification. Management is currently evaluating technology solutions and assessing accounting for the current lease portfolio under the new ASU. Principal versus Agent Considerations (Reporting Revenue Gross versus Net) In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The ASU amends ASU 2014-09, Revenue from Contracts with Customers , with respect to assessing whether an entity is a principal (and thus presents revenue gross) or an agent (and thus presents revenue net). The amendments retain the guidance that the principal in an arrangement controls a good or service before it is transferred to a customer and clarify: (1) that an entity must first identify the specified good or service being provided to the customer; (2) that the unit of account for the principal versus agent assessment is each specified good or service promised in a contract; (3) indicators and examples to help an entity evaluate whether it is the principal; and (4) how to assess whether an entity controls services performed by another party. The ASU is effective upon the adoption of ASU 2014-09, which is effective for periods beginning January 1, 2018, with early adoption permitted in 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , which provides new guidance on the accounting for credit losses for instruments that are within its scope. For loans and debt securities accounted for at amortized cost, certain off-balance sheet credit exposures, net investments in leases, and trade receivables, the ASU requires an entity to recognize its estimate of credit losses expected over the life of the financial instrument or exposure. Lifetime expected credit losses on purchased financial assets with credit deterioration will be recognized as an allowance with an offset to the cost basis of the asset. For available for sale debt securities, the new standard will require recognition of expected credit losses by recognizing an allowance for credit losses when the fair value of the security is below amortized cost and the recognition of this allowance is limited to the difference between the security’s amortized cost basis and fair value. The ASU is effective for interim and annual periods beginning on January 1, 2020, with early adoption permitted in 2019. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. In the second quarter the Company plans to begin a current state gap analysis, which will be followed by collecting business and data requirements to support the project planning phase of the implementation. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments , to address diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company's statement of cash flows. Income Tax Consequences of Intra-Entity Asset Transfers In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , to improve the accounting for the income tax consequences of intra-entity assets other than inventory. The ASU will require recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The ASU is effective for interim and annual periods beginning on January 1, 2018, with early adoption permitted. Management does not expect adoption of this guidance to significantly impact the Company's financial position and results of operations. Restricted Cash In November 2016, the FASB issued ASU 2016-18, Restricted Cash , to address diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The ASU requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and the amounts generally described as restricted cash or restricted cash equivalents. The ASU is effective for interim and annual periods beginning on January 1, 2018 using a retrospective transition method. Early adoption is permitted. Management does not expect the adoption of this guidance to have a significant impact on the Company's statement of cash flows. Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , which specifies when a set of assets and activities constitutes a business. The ASU adds a “screen” to determine when a set is not a business, thus reducing the number of transactions deemed businesses. Specifically, if the fair value of the gross assets acquired is concentrated in a single identifiable asset (or a group of similar identifiable assets), the set is not deemed a business. Otherwise, to be considered a business, a set must include at least one input and a substantive process that together significantly contribute to the ability to create outputs. Although outputs are not required to be a business, the ASU narrows the definition of an output and limits the instances where sets that lack outputs are deemed businesses. The ASU is effective for interim and annual periods prospectively beginning on January 1, 2018, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. Amendments to SEC Paragraphs Pursuant to Staff Announcements at EITF Meetings In January 2017, the FASB issued ASU 2017-03, Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings . The amendments clarify the SEC staff’s expectations about the extent of disclosures registrants should make about the effects of ASU 2014-09, Revenue from Contracts with Customers , ASU 2016-02, Leases , and ASU 2016-13, Measurement of Credit Losses on Financial Instruments , particularly where the registrant cannot reasonably estimate the ASU’s anticipated impact on the financial statements. The amendments also clarify the SEC staff’s view that the use of the proportional amortization method must be consistently applied and it may not be extended, by analogy, to other investments that are not investments in qualified affordable housing projects. The ASU is effective upon issuance. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The ASU removes Step 2 of the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the amendments, a goodwill impairment loss will be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value; however, the loss recognized cannot exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The ASU will be effective for MUAH beginning January 1, 2020 on a prospective basis. Early adoption is permitted for any impairment tests performed after January 1, 2017. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position or results of operations. Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, to clarify the scope of ASC 610-20, Other Income - Gains and Losses from Derecognition of Nonfinancial Assets (issued as part of ASU 2014-09), and provide guidance on partial sales of nonfinancial assets. The ASU clarifies that the unit of account under ASU 610-20 is each distinct nonfinancial or in substance nonfinancial asset and that a financial asset that meets the definition of an “in substance nonfinancial asset” is within the scope of ASC 610-20. The ASU eliminates rules specifically addressing sales of real estate and removes exceptions to the financial asset derecognition model. The ASU is effective upon the adoption of ASU 2014-09, which the Company plans to adopt beginning January 1, 2018. It allows an entity to use either a retrospective or modified retrospective approach. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which amends the income statement presentation of the components of net periodic benefit cost for sponsored defined benefit pension and other postretirement plans. The ASU also now mandates that only the service cost component of net benefit cost is eligible for capitalization on certain internally produced assets. The ASU is effective for interim and annual periods beginning January 1, 2018, with retrospective application for the new income statement presentation requirements and prospective application for the new capitalization requirement. Management is currently assessing the impact of this guidance on the Company’s financial position and results of operations. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities , which requires premiums on certain purchased callable debt securities to be amortized to the earliest call date. Under current guidance, premiums on callable debt securities are generally amortized over the contractual life of the security. The amortization period for callable debt securities purchased at a discount will not be impacted. The ASU is effective for interim and annual periods beginning on January 1, 2019 and requires a modified retrospective approach, with early adoption permitted. Management does not expect the adoption of this guidance to significantly impact the Company’s financial position and results of operations. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Securities | |
Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities | At March 31, 2017 and December 31, 2016 , the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below. March 31, 2017 (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Asset Liability Management securities: U.S. Treasury $ 2,920 $ 2 $ 109 $ 2,813 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies 7,474 5 101 7,378 Privately issued 431 1 6 426 Privately issued - commercial mortgage-backed securities 664 5 6 663 Collateralized loan obligations 1,985 13 1 1,997 Other 7 — — 7 Asset Liability Management securities 13,481 26 223 13,284 Other debt securities: Direct bank purchase bonds 1,528 39 24 1,543 Other 94 — 1 93 Equity securities 5 — — 5 Total securities available for sale $ 15,108 $ 65 $ 248 $ 14,925 December 31, 2016 (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Asset Liability Management securities: U.S. Treasury $ 2,625 $ 1 $ 121 $ 2,505 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies 6,814 3 122 6,695 Privately issued 333 1 7 327 Privately issued - commercial mortgage-backed securities 666 4 6 664 Collateralized loan obligations 2,219 4 5 2,218 Other 7 — — 7 Asset Liability Management securities 12,664 13 261 12,416 Other debt securities: Direct bank purchase bonds 1,601 41 29 1,613 Other 108 — 1 107 Equity securities 5 — — 5 Total securities available for sale $ 14,378 $ 54 $ 291 $ 14,141 |
Proceeds from Sales of Securities Available for Sale and Gross Realized Gains and Losses | The gross realized gains and losses from sales of available for sale securities for the three months ended March 31, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales. For the Three Months Ended March 31, (Dollars in millions) 2017 2016 Gross realized gains $ 2 $ 13 Gross realized losses — — |
Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values | At March 31, 2017 and December 31, 2016 , the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity. March 31, 2017 Recognized in OCI Not Recognized in OCI (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Carrying Amount Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury $ 493 $ — $ — $ 493 $ 4 $ — $ 497 U.S. government agency and government-sponsored agencies - residential mortgage-backed securities 8,342 2 38 8,306 32 98 8,240 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 1,636 — 61 1,575 43 7 1,611 Total securities held to maturity $ 10,471 $ 2 $ 99 $ 10,374 $ 79 $ 105 $ 10,348 December 31, 2016 Recognized in OCI Not Recognized in OCI (Dollars in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Carrying Amount Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury $ 492 $ — $ — $ 492 $ 5 $ — $ 497 U.S. government agency and government-sponsored agencies - residential mortgage-backed securities 8,301 3 41 8,263 34 96 8,201 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 1,645 — 63 1,582 43 7 1,618 Total securities held to maturity $ 10,438 $ 3 $ 104 $ 10,337 $ 82 $ 103 $ 10,316 |
Securities Available for Sale | |
Securities | |
Securities in Unrealized Loss Position | The Company’s securities available for sale with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, identified for periods less than 12 months and 12 months or more. March 31, 2017 Less than 12 months 12 months or more Total (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Asset Liability Management securities: U.S. Treasury $ 2,270 $ 109 $ — $ — $ 2,270 $ 109 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies 5,567 93 606 8 6,173 101 Privately issued 249 5 26 1 275 6 Privately issued - commercial mortgage-backed securities 371 6 11 — 382 6 Collateralized loan obligations 168 — 129 1 297 1 Asset Liability Management securities 8,625 213 772 10 9,397 223 Other debt securities: Direct bank purchase bonds 193 6 539 18 732 24 Other 91 1 5 — 96 1 Total securities available for sale $ 8,909 $ 220 $ 1,316 $ 28 $ 10,225 $ 248 December 31, 2016 Less than 12 months 12 months or more Total (Dollars in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Asset Liability Management securities: U.S. Treasury $ 2,257 $ 121 $ — $ — $ 2,257 $ 121 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies 5,501 113 667 9 6,168 122 Privately issued 249 6 29 1 278 7 Privately issued - commercial mortgage-backed securities 415 6 11 — 426 6 Collateralized loan obligations 75 — 1,077 5 1,152 5 Other — — 1 — 1 — Asset Liability Management securities 8,497 246 1,785 15 10,282 261 Other debt securities: Direct bank purchase bonds 386 12 499 17 885 29 Other 36 1 — — 36 1 Equity securities — — 5 — 5 — Total securities available for sale $ 8,919 $ 259 $ 2,289 $ 32 $ 11,208 $ 291 |
Debt Securities by Contractual Maturity | The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. March 31, 2017 (Dollars in millions) One Year or Less Over One Year Through Five Years Over Five Years Through Ten Years Over Ten Years Total Fair Value Asset Liability Management securities: U.S. Treasury $ — $ 393 $ 2,420 $ — $ 2,813 Residential mortgage-backed securities: U.S. government agency and government-sponsored agencies — 9 301 7,068 7,378 Privately issued — 1 — 425 426 Privately issued - commercial mortgage-backed securities — — — 663 663 Collateralized loan obligations — — 1,020 977 1,997 Other 1 1 5 — 7 Asset Liability Management securities 1 404 3,746 9,133 13,284 Other debt securities: Direct bank purchase bonds 4 428 719 392 1,543 Other — 67 — 26 93 Total debt securities available for sale $ 5 $ 899 $ 4,465 $ 9,551 $ 14,920 |
Securities Held to Maturity | |
Securities | |
Securities in Unrealized Loss Position | The Company’s securities held to maturity with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, separately for periods less than 12 months and 12 months or more. March 31, 2017 Less than 12 months 12 months or more Total Unrealized Losses Unrealized Losses Unrealized Losses (Dollars in millions) Fair Value Recognized in OCI Not Recognized in OCI Fair Value Recognized in OCI Not Recognized in OCI Fair Value Recognized in OCI Not Recognized in OCI U.S. government agency and government-sponsored agencies - residential mortgage-backed securities $ 4,977 $ — $ 96 $ 1,324 $ 38 $ 2 $ 6,301 $ 38 $ 98 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 109 — 2 1,445 61 5 1,554 61 7 Total securities held to maturity $ 5,086 $ — $ 98 $ 2,769 $ 99 $ 7 $ 7,855 $ 99 $ 105 December 31, 2016 Less than 12 months 12 months or more Total Unrealized Losses Unrealized Losses Unrealized Losses (Dollars in millions) Fair Value Recognized in OCI Not Recognized in OCI Fair Value Recognized in OCI Not Recognized in OCI Fair Value Recognized in OCI Not Recognized in OCI U.S. government agency and government-sponsored agencies - residential mortgage-backed securities $ 4,492 $ — $ 92 $ 1,386 $ 41 $ 4 $ 5,878 $ 41 $ 96 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 111 — 1 1,448 63 6 1,559 63 7 Total securities held to maturity $ 4,603 $ — $ 93 $ 2,834 $ 104 $ 10 $ 7,437 $ 104 $ 103 |
Debt Securities by Contractual Maturity | The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. March 31, 2017 Over One Year Through Five Years Over Five Years Through Ten Years Over Ten Years Total (Dollars in millions) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value U.S. Treasury $ 493 $ 497 $ — $ — $ — $ — $ 493 $ 497 U.S. government agency and government-sponsored agencies - residential mortgage-backed securities — — 326 324 7,980 7,916 8,306 8,240 U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities 299 309 558 581 718 721 1,575 1,611 Total securities held to maturity $ 792 $ 806 $ 884 $ 905 $ 8,698 $ 8,637 $ 10,374 $ 10,348 |
Loans and Allowance for Loan 24
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Summary of Loans | The following table provides the outstanding balances of loans at March 31, 2017 and December 31, 2016 : (Dollars in millions) March 31, 2017 December 31, 2016 Loans held for investment: Commercial and industrial $ 25,602 $ 25,379 Commercial mortgage 14,468 14,625 Construction 2,040 2,283 Lease financing 1,779 1,819 Total commercial portfolio 43,889 44,106 Residential mortgage 31,162 29,922 Home equity and other consumer loans 3,383 3,523 Total consumer portfolio 34,545 33,445 Total loans held for investment (1) 78,434 77,551 Allowance for loan losses (570 ) (639 ) Loans held for investment, net $ 77,864 $ 76,912 (1) Includes $205 million and $180 million at March 31, 2017 and December 31, 2016 , respectively, for net unamortized (discounts) and premiums and deferred ( fees) and costs. |
Reconciliation of Changes in Allowance for Loan Losses by Portfolio Segment | The following tables provide a reconciliation of changes in the allowance for loan losses by portfolio segment: For the Three Months Ended March 31, 2017 (Dollars in millions) Commercial Consumer Unallocated Total Allowance for loan losses, beginning of period $ 556 $ 83 $ — $ 639 (Reversal of) provision for loan losses (26 ) 12 — (14 ) Other 1 — — 1 Loans charged-off (55 ) (11 ) — (66 ) Recoveries of loans previously charged-off 9 1 — 10 Allowance for loan losses, end of period $ 485 $ 85 $ — $ 570 For the Three Months Ended March 31, 2016 (Dollars in millions) Commercial Consumer Unallocated Total Allowance for loan losses, beginning of period $ 653 $ 50 $ 20 $ 723 (Reversal of) provision for loan losses 171 7 (20 ) 158 Other 4 — — 4 Loans charged-off (8 ) (1 ) — (9 ) Recoveries of loans previously charged-off 4 1 — 5 Allowance for loan losses, end of period $ 824 $ 57 $ — $ 881 |
Allowance for Loan Losses and Related Loan Balances by Portfolio Segment | The following tables show the allowance for loan losses and related loan balances by portfolio segment as of March 31, 2017 and December 31, 2016 : March 31, 2017 (Dollars in millions) Commercial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 117 $ 20 $ 137 Collectively evaluated for impairment 368 65 433 Total allowance for loan losses $ 485 $ 85 $ 570 Loans held for investment: Individually evaluated for impairment $ 638 $ 372 $ 1,010 Collectively evaluated for impairment 43,251 34,173 77,424 Total loans held for investment $ 43,889 $ 34,545 $ 78,434 December 31, 2016 (Dollars in millions) Commercial Consumer Total Allowance for loan losses: Individually evaluated for impairment $ 151 $ 17 $ 168 Collectively evaluated for impairment 405 66 471 Total allowance for loan losses $ 556 $ 83 $ 639 Loans held for investment: Individually evaluated for impairment $ 636 $ 386 $ 1,022 Collectively evaluated for impairment 43,470 33,059 76,529 Total loans held for investment $ 44,106 $ 33,445 $ 77,551 |
Summary of Nonaccrual Loans | The following table presents nonaccrual loans as of March 31, 2017 and December 31, 2016 : (Dollars in millions) March 31, 2017 December 31, 2016 Commercial and industrial $ 400 $ 458 Commercial mortgage 33 31 Total commercial portfolio 433 489 Residential mortgage 110 171 Home equity and other consumer loans 26 29 Total consumer portfolio 136 200 Total nonaccrual loans $ 569 $ 689 Troubled debt restructured loans that continue to accrue interest $ 336 $ 215 Troubled debt restructured nonaccrual loans (included in total nonaccrual loans above) $ 301 $ 384 |
Aging of Balance of Loans Held for Investment, Excluding Purchased Credit-Impaired Loans | The following tables show an aging of the balance of loans held for investment, by class as of March 31, 2017 and December 31, 2016 : March 31, 2017 Aging Analysis of Loans (Dollars in millions) Current 30 to 89 Days Past Due 90 Days or More Past Due Total Past Due Total Commercial and industrial $ 27,317 $ 10 $ 54 $ 64 $ 27,381 Commercial mortgage 14,435 18 15 33 14,468 Construction 2,040 — — — 2,040 Total commercial portfolio 43,792 28 69 97 43,889 Residential mortgage 31,012 110 40 150 31,162 Home equity and other consumer loans 3,347 21 15 36 3,383 Total consumer portfolio 34,359 131 55 186 34,545 Total loans held for investment $ 78,151 $ 159 $ 124 $ 283 $ 78,434 December 31, 2016 Aging Analysis of Loans (Dollars in millions) Current 30 to 89 Days Past Due 90 Days or More Past Due Total Past Due Total Commercial and industrial $ 27,085 $ 54 $ 59 $ 113 $ 27,198 Commercial mortgage 14,571 37 17 54 14,625 Construction 2,283 — — — 2,283 Total commercial portfolio 43,939 91 76 167 44,106 Residential mortgage 29,770 110 42 152 29,922 Home equity and other consumer loans 3,479 27 17 44 3,523 Total consumer portfolio 33,249 137 59 196 33,445 Total loans held for investment $ 77,188 $ 228 $ 135 $ 363 $ 77,551 |
Loans in Commercial Portfolio Segment and Commercial Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Internal Ratings | The following tables summarize the loans in the commercial portfolio segment monitored for credit quality based on regulatory risk ratings. The amounts presented reflect unpaid principal balances less charge-offs. March 31, 2017 Criticized (Dollars in millions) Pass Special Mention Classified Total Commercial and industrial $ 25,708 $ 635 $ 1,007 $ 27,350 Commercial mortgage 14,119 93 237 14,449 Construction 1,862 118 61 2,041 Total commercial portfolio $ 41,689 $ 846 $ 1,305 $ 43,840 December 31, 2016 Criticized (Dollars in millions) Pass Special Mention Classified Total Commercial and industrial $ 25,028 $ 860 $ 1,097 $ 26,985 Commercial mortgage 14,152 161 188 14,501 Construction 2,162 121 — 2,283 Total commercial portfolio $ 41,342 $ 1,142 $ 1,285 $ 43,769 |
Loans in Consumer Portfolio an Purchased credit-impaired loans | The following tables summarize the loans in the consumer portfolio segment, which exclude $10 million and $11 million of loans covered by FDIC loss share agreements, at March 31, 2017 and December 31, 2016 , respectively: March 31, 2017 (Dollars in millions) Accrual Nonaccrual Total Residential mortgage $ 31,052 $ 110 $ 31,162 Home equity and other consumer loans 3,357 26 3,383 Total consumer portfolio $ 34,409 $ 136 $ 34,545 December 31, 2016 (Dollars in millions) Accrual Nonaccrual Total Residential mortgage $ 29,751 $ 171 $ 29,922 Home equity and other consumer loans 3,494 29 3,523 Total consumer portfolio $ 33,245 $ 200 $ 33,445 |
Loans in Consumer Portfolio Segment and Consumer Loans within Purchased Credit-Impaired Loans Segment Monitored for Credit Quality Based on Refreshed FICO Scores and Refreshed LTV ratios | These tables exclude loans covered by FDIC loss share agreements, as discussed above. The amounts presented reflect unpaid principal balances less partial charge-offs. March 31, 2017 FICO scores (Dollars in millions) 720 and above Below 720 No FICO Available (1) Total Residential mortgage $ 24,680 $ 5,746 $ 436 $ 30,862 Home equity and other consumer loans 2,248 937 139 3,324 Total consumer portfolio $ 26,928 $ 6,683 $ 575 $ 34,186 Percentage of total 79 % 19 % 2 % 100 % (1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). December 31, 2016 FICO scores (Dollars in millions) 720 and above Below 720 No FICO Available (1) Total Residential mortgage $ 23,598 $ 5,597 $ 444 $ 29,639 Home equity and other consumer loans 2,372 977 111 3,460 Total consumer portfolio $ 25,970 $ 6,574 $ 555 $ 33,099 Percentage of total 78 % 20 % 2 % 100 % (1) Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). March 31, 2017 LTV ratios (Dollars in millions) Less than or Equal to 80 Greater than 80 and Less than 100 Percent Greater than or Equal to 100 No LTV Available (1) Total Residential mortgage $ 29,721 $ 1,090 $ 14 $ 37 $ 30,862 Home equity loans 2,103 219 37 39 2,398 Total consumer portfolio 31,824 1,309 51 76 33,260 Percentage of total 96 % 4 % — % — % 100 % (1) Represents loans for which management was not able to obtain refreshed property values. December 31, 2016 LTV ratios (Dollars in millions) Less than or Equal to 80 Greater than 80 and Less than 100 Percent Greater than or Equal to 100 No LTV Available (1) Total Residential mortgage $ 28,547 $ 1,030 $ 16 $ 46 $ 29,639 Home equity loans 2,160 206 41 43 2,450 Total consumer portfolio $ 30,707 $ 1,236 $ 57 $ 89 $ 32,089 Percentage of total 96 % 4 % — % — % 100 % (1) Represents loans for which management was not able to obtain refreshed property values. |
Summary of Troubled Debt Restructurings | The following table provides a summary of the Company’s recorded investment in TDRs as of March 31, 2017 and December 31, 2016 . The summary includes those TDRs that are on nonaccrual status and those that continue to accrue interest. The Company had $48 million and $59 million in commitments to lend additional funds to borrowers with loan modifications classified as TDRs as of March 31, 2017 and December 31, 2016 , respectively. (Dollars in millions) March 31, 2017 December 31, 2016 Commercial and industrial $ 304 $ 321 Commercial mortgage 9 9 Construction 61 — Total commercial portfolio 374 330 Residential mortgage 234 239 Home equity and other consumer loans 29 30 Total consumer portfolio 263 269 Total restructured loans $ 637 $ 599 |
Pre- and Post-Modification Outstanding Recorded Investment Amounts of Troubled Debt Restructurings | The following tables provide the pre- and post-modification outstanding recorded investment amounts of TDRs as of the date of the restructuring that occurred during the three months ended March 31, 2017 and 2016 : For the Three Months Ended March 31, 2017 (Dollars in millions) Pre-Modification (1) Post-Modification (2) Commercial and industrial $ 78 $ 78 Commercial mortgage 1 1 Construction 61 61 Total commercial portfolio 140 140 Residential mortgage 4 4 Total consumer portfolio 4 4 Total $ 144 $ 144 (1) Represents the recorded investment in the loan immediately prior to the restructuring event. (2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms. For the Three Months Ended March 31, 2016 (Dollars in millions) Pre-Modification (1) Post-Modification (2) Commercial and industrial $ 50 $ 50 Commercial mortgage 5 5 Total commercial portfolio 55 55 Residential mortgage 4 4 Home equity and other consumer loans 1 1 Total consumer portfolio 5 5 Total $ 60 $ 60 (1) Represents the recorded investment in the loan immediately prior to the restructuring event. (2) Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms. |
Recorded Investment Amounts of Troubled Debt Restructurings | The following tables provide the recorded investment amounts of TDRs at the date of default, for which there was a payment default during the three months ended March 31, 2017 and 2016 , and where the default occurred within the first twelve months after modification into a TDR. A payment default is defined as the loan being 60 days or more past due. (Dollars in millions) For the Three Months Ended March 31, 2017 Commercial and industrial $ 2 Commercial mortgage 1 Total commercial portfolio 3 Residential mortgage 1 Total consumer portfolio 1 Total $ 4 (Dollars in millions) For the Three Months Ended March 31, 2016 Commercial and industrial $ 1 Total commercial portfolio 1 Residential mortgage 2 Total consumer portfolio 2 Total $ 3 |
Information about Impaired Loans by Class | The following tables show information about impaired loans by class as of March 31, 2017 and December 31, 2016 : March 31, 2017 Recorded Investment Unpaid Principal Balance (Dollars in millions) With an Allowance Without an Allowance Total Allowance for Impaired Loans With an Allowance Without an Allowance Commercial and industrial $ 421 $ 94 $ 515 $ 116 $ 514 $ 125 Commercial mortgage 54 8 62 1 54 9 Construction — 61 61 — — 61 Total commercial portfolio 475 163 638 117 568 195 Residential mortgage 243 72 315 20 257 85 Home equity and other consumer loans 38 19 57 — 40 29 Total consumer portfolio 281 91 372 20 297 114 Total $ 756 $ 254 $ 1,010 $ 137 $ 865 $ 309 December 31, 2016 Recorded Investment Unpaid Principal Balance (Dollars in millions) With an Allowance Without an Allowance Total Allowance for Impaired Loans With an Allowance Without an Allowance Commercial and industrial $ 505 $ 36 $ 541 $ 150 $ 672 $ 54 Commercial mortgage 86 9 95 1 8 9 Total commercial portfolio 591 45 636 151 680 63 Residential mortgage 250 75 325 17 295 89 Home equity and other consumer loans 41 20 61 — 11 30 Total consumer portfolio 291 95 386 17 306 119 Total $ 882 $ 140 $ 1,022 $ 168 $ 986 $ 182 |
Average Investment in Impaired Loans and Interest Income Recognized for Impaired Loans | The following table presents the average recorded investment in impaired loans and the amount of interest income recognized for impaired loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments. For the Three Months Ended March 31, 2017 2016 (Dollars in millions) Average Recorded Investment Recognized Interest Income Average Recorded Investment Recognized Interest Income Commercial and industrial $ 491 $ 4 $ 624 $ 2 Commercial mortgage 18 — 18 — Construction 10 — — — Total commercial portfolio 519 4 642 2 Residential mortgage 237 2 273 2 Home equity and other consumer loans 29 — 31 1 Total consumer portfolio 266 2 304 3 Total $ 785 $ 6 $ 946 $ 5 The following table presents loan transfers from held to investment to held for sale and proceeds from sales of loans during the three months ended March 31, 2017 and 2016 for the commercial and consumer loans portfolio segments. For the Three Months Ended March 31, 2017 2016 (Dollars in millions) Transfers of loans from held for investment to held for sale, net Proceeds from sale Transfers of loans from held for investment to held for sale, net Proceeds from sale Commercial portfolio $ 234 $ 347 $ (81 ) $ 49 Consumer portfolio (4 ) — — — Total $ 230 $ 347 $ (81 ) $ 49 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Variable Interest Entities | |
Schedule of assets and liabilities of VIEs | The following table presents the impact of the unconsolidated LIHC investments on our consolidated statements of income for the three months ended March 31, 2017 and 2016 : For the Three Months Ended March 31, 2017 March 31, 2016 (Dollars in millions) Losses from LIHC investments included in other noninterest expense $ 2 $ 2 Amortization of LIHC investments included in income tax expense 33 30 Tax credits and other tax benefits from LIHC investments included in income tax expense 45 45 |
Consolidated VIEs | |
Variable Interest Entities | |
Schedule of assets and liabilities of VIEs | The following tables present the assets and liabilities of consolidated VIEs recorded on the Company’s consolidated balance sheets at March 31, 2017 and December 31, 2016 : March 31, 2017 Consolidated Assets Consolidated Liabilities (Dollars in millions) Loans Held for Investment, net Other Assets Total Assets Other Liabilities Total Liabilities LIHC investments $ — $ 106 $ 106 $ — $ — Leasing investments 622 173 795 54 54 Total consolidated VIEs $ 622 $ 279 $ 901 $ 54 $ 54 December 31, 2016 Consolidated Assets Consolidated Liabilities (Dollars in millions) Loans Held for Investment, net Other Assets Total Assets Other Liabilities Total Liabilities LIHC investments $ — $ 112 $ 112 $ — $ — Leasing investments 641 174 815 54 54 Total consolidated VIEs $ 641 $ 286 $ 927 $ 54 $ 54 |
Unconsolidated VIEs | |
Variable Interest Entities | |
Schedule of assets and liabilities of VIEs | The following tables present the Company’s carrying amounts related to the unconsolidated VIEs at March 31, 2017 and December 31, 2016 . The tables also present the Company’s maximum exposure to loss resulting from its involvement with these VIEs. The maximum exposure to loss represents the carrying amount of the Company’s involvement plus any legally binding unfunded commitments in the unlikely event that all of the assets in the VIEs become worthless. During the three months ended March 31, 2017 and March 31, 2016 , the Company had noncash increases in unfunded commitments on LIHC investments of $19 million and $37 million , respectively, included within other liabilities. March 31, 2017 Unconsolidated Assets Unconsolidated Liabilities (Dollars in millions) Interest Bearing Deposits in Banks Securities Available for Sale Loans Held for Investment Other Assets Total Assets Other Liabilities Total Liabilities Maximum Exposure to Loss LIHC investments $ — $ 25 $ 199 $ 1,148 $ 1,372 $ 388 $ 388 $ 1,372 Leasing investments 1 12 28 1,662 1,703 66 66 1,723 Other investments — — 24 25 49 — — 76 Total unconsolidated VIEs $ 1 $ 37 $ 251 $ 2,835 $ 3,124 $ 454 $ 454 $ 3,171 December 31, 2016 Unconsolidated Assets Unconsolidated Liabilities (Dollars in millions) Interest Bearing Deposits in Banks Securities Available for Sale Loans Held for Investment Other Assets Total Assets Other Liabilities Total Liabilities Maximum Exposure to Loss LIHC investments $ — $ 25 $ 168 $ 1,164 $ 1,357 $ 381 $ 381 $ 1,357 Leasing investments 1 12 47 1,751 1,811 66 66 1,833 Other investments — — 24 26 50 — — 81 Total unconsolidated VIEs $ 1 $ 37 $ 239 $ 2,941 $ 3,218 $ 447 $ 447 $ 3,271 |
Securities Financing Arrangem26
Securities Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Schedule of Offsetting Assets | The following tables present the offsetting of financial assets and liabilities as of March 31, 2017 and December 31, 2016 : March 31, 2017 Gross Amounts Not Offset in Balance Sheet (Dollars in millions) Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Financial Instruments Cash Collateral Received/Pledged Net Amount Financial Assets: Derivative assets $ 1,502 $ 787 $ 715 $ 44 $ 2 $ 669 Securities borrowed or purchased under resale agreements 31,147 11,155 19,992 19,896 — 96 Total $ 32,649 $ 11,942 $ 20,707 $ 19,940 $ 2 $ 765 Financial Liabilities: Derivative liabilities $ 1,533 $ 968 $ 565 $ 170 $ — $ 395 Securities loaned or sold under repurchase agreements 36,235 11,156 25,079 24,470 — 609 Total $ 37,768 $ 12,124 $ 25,644 $ 24,640 $ — $ 1,004 December 31, 2016 Gross Amounts Not Offset in Balance Sheet (Dollars in millions) Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Financial Instruments Cash Collateral Received/Pledged Net Amount Financial Assets: Derivative assets $ 1,626 $ 770 $ 856 $ 20 $ — $ 836 Securities borrowed or purchased under resale agreements 31,386 11,639 19,747 19,657 — 90 Total $ 33,012 $ 12,409 $ 20,603 $ 19,677 $ — $ 926 Financial Liabilities: Derivative liabilities $ 1,684 $ 1,047 $ 637 $ 176 $ 5 $ 456 Securities loaned or sold under repurchase agreements 36,255 11,639 24,616 23,812 — 804 Total $ 37,939 $ 12,686 $ 25,253 $ 23,988 $ 5 $ 1,260 |
Schedule of Offsetting Liabilities | The following tables present the offsetting of financial assets and liabilities as of March 31, 2017 and December 31, 2016 : March 31, 2017 Gross Amounts Not Offset in Balance Sheet (Dollars in millions) Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Financial Instruments Cash Collateral Received/Pledged Net Amount Financial Assets: Derivative assets $ 1,502 $ 787 $ 715 $ 44 $ 2 $ 669 Securities borrowed or purchased under resale agreements 31,147 11,155 19,992 19,896 — 96 Total $ 32,649 $ 11,942 $ 20,707 $ 19,940 $ 2 $ 765 Financial Liabilities: Derivative liabilities $ 1,533 $ 968 $ 565 $ 170 $ — $ 395 Securities loaned or sold under repurchase agreements 36,235 11,156 25,079 24,470 — 609 Total $ 37,768 $ 12,124 $ 25,644 $ 24,640 $ — $ 1,004 December 31, 2016 Gross Amounts Not Offset in Balance Sheet (Dollars in millions) Gross Amounts of Recognized Assets/Liabilities Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Financial Instruments Cash Collateral Received/Pledged Net Amount Financial Assets: Derivative assets $ 1,626 $ 770 $ 856 $ 20 $ — $ 836 Securities borrowed or purchased under resale agreements 31,386 11,639 19,747 19,657 — 90 Total $ 33,012 $ 12,409 $ 20,603 $ 19,677 $ — $ 926 Financial Liabilities: Derivative liabilities $ 1,684 $ 1,047 $ 637 $ 176 $ 5 $ 456 Securities loaned or sold under repurchase agreements 36,255 11,639 24,616 23,812 — 804 Total $ 37,939 $ 12,686 $ 25,253 $ 23,988 $ 5 $ 1,260 |
Secured Borrowings by Contractual Maturity and Class of Collateral Pledged | The following tables present the gross obligations for securities sold under agreements to repurchase, and securities loaned by remaining contractual maturity and class of collateral pledged as of March 31, 2017 and December 31, 2016 : March 31, 2017 Overnight and Up to 31 - 90 Greater than (Dollars in millions) continuous 30 days days 90 days Total Securities sold under agreements to repurchase: U.S. Treasury securities $ 10,925 $ 1,886 $ 677 $ 96 $ 13,584 U.S. agency securities 30 3 — — 33 Other sovereign government obligations 7 20 1 — 28 Money market securities 14 24 34 — 72 Asset-backed securities 1 1 28 — 30 Mortgage-backed securities 9,384 3,701 5,372 — 18,457 Corporate bonds 379 824 1,031 — 2,234 Municipal securities 157 54 143 — 354 Equities 362 49 164 — 575 Total $ 21,259 $ 6,562 $ 7,450 $ 96 $ 35,367 Securities loaned: Equities 718 51 99 — 868 Total $ 718 $ 51 $ 99 $ — $ 868 December 31, 2016 Overnight and Up to 31 - 90 Greater than (Dollars in millions) continuous 30 days days 90 days Total Securities sold under agreements to repurchase: U.S. Treasury securities $ 11,419 $ 1,523 $ 712 $ 316 $ 13,970 U.S. agency securities 42 30 — — 72 Other sovereign government obligations — — 16 — 16 Asset-backed securities 20 15 66 — 101 Mortgage-backed securities 8,792 4,450 4,750 — 17,992 Corporate bonds 405 800 909 — 2,114 Municipal securities 74 65 299 — 438 Equities 452 275 164 — 891 Total $ 21,204 $ 7,158 $ 6,916 $ 316 $ 35,594 Securities loaned: Corporate bonds $ 8 $ — $ — $ — $ 8 Equities 562 — 91 — 653 Total $ 570 $ — $ 91 $ — $ 661 |
Commercial Paper and Other Sh27
Commercial Paper and Other Short-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Short-term Debt [Abstract] | |
Summary of Commercial Paper and Other Short-Term Borrowings | The following table is a summary of the Company's commercial paper and other short-term borrowings: (Dollars in millions) March 31, 2017 December 31, 2016 Debt issued by MUB Federal funds purchased, with weighted average interest rates of 0.72% and 0.50% at March 31, 2017 and December 31, 2016, respectively $ 40 $ 26 Commercial paper, with a weighted average interest rate of 0.71% and 0.55% at March 31, 2017 and December 31, 2016, respectively 651 263 Federal Home Loan Bank advances, with a weighted average interest rate of 0.62% and 0.59% at March 31, 2017 and December 31, 2016, respectively 1,600 700 Total debt issued by MUB 2,291 989 Debt issued by other MUAH subsidiaries Short-term debt due to BTMU, with weighted average interest rates of 1.47% and 0.49% at March 31, 2017 and December 31, 2016, respectively 425 679 Short-term debt due to affiliates, with weighted average interest rates of (0.07)% and (0.04)% at March 31, 2017 and December 31, 2016, respectively 771 692 Total debt issued by other MUAH subsidiaries 1,196 1,371 Total commercial paper and other short-term borrowings $ 3,487 $ 2,360 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | The following is a summary of the Company's long-term debt: (Dollars in millions) March 31, 2017 December 31, 2016 Debt issued by MUAH Senior debt: Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016 $ 250 $ 250 Fixed rate 1.625% notes due February 2018 449 449 Fixed rate 2.25% notes due February 2020 997 997 Fixed rate 3.50% notes due June 2022 397 397 Fixed rate 3.00% notes due February 2025 496 496 Senior debt due to BTMU: Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017 3,500 — Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017 21 — Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016 545 545 Subordinated debt due to BTMU: Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016 300 300 Junior subordinated debt payable to trusts: Floating rate note due September 2036. This note had an interest rate of 2.83% at March 31, 2017 and 2.66% at December 31, 2016 36 36 Total debt issued by MUAH 6,991 3,470 Debt issued by MUB Senior debt: Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016 250 250 Fixed rate 2.125% notes due June 2017 500 500 Fixed rate 2.625% notes due September 2018 999 999 Fixed rate 2.250% notes due May 2019 500 500 Senior debt due to BTMU: Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016 — 1,000 Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016 — 1,500 Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016 — 1,000 Subordinated debt due to BTMU: Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016 750 750 Other 61 58 Total debt issued by MUB 3,060 6,557 Debt issued by other MUAH subsidiaries Senior Debt due to BTMU: Various floating rate borrowings due between November 2020 and April 2021. These notes, which bear interest above 3-month LIBOR had a weighted-average interest rate of 1.15% at March 31, 2017 and 0.99% at December 31, 2016 250 250 Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016 288 384 Subordinated Debt due to Affiliate: Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016 185 185 Nonrecourse Debt due to BTMU: Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016 127 127 Nonrecourse Debt: Fixed rate nonrecourse borrowings due December 2026 which had an interest rate of 5.34% at March 31, 2017 and December 31, 2016 38 39 Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016 394 398 Total debt issued by other MUAH subsidiaries 1,282 1,383 Total long-term debt $ 11,333 $ 11,410 |
Fair Value Measurement and Fa29
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis | The following tables present financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 , by major category and by valuation hierarchy level: March 31, 2017 (Dollars in millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Fair Value Assets Trading account assets: U.S. Treasury securities $ — $ 1,902 $ — $ — $ 1,902 U.S. government-sponsored agency securities — 121 — — 121 State and municipal securities — 8 — — 8 Commercial paper — 75 — — 75 Other sovereign government obligations — 31 — — 31 Corporate bonds — 1,273 — — 1,273 Asset-backed securities — 183 — — 183 Mortgage-backed securities — 4,582 — — 4,582 Equities 42 — — — 42 Interest rate derivative contracts 4 984 2 (361 ) 629 Commodity derivative contracts — 132 1 (124 ) 9 Foreign exchange derivative contracts 1 185 1 (119 ) 68 Equity derivative contracts — — 168 (165 ) 3 Total trading account assets 47 9,476 172 (769 ) 8,926 Securities available for sale: U.S. Treasury — 2,813 — — 2,813 Residential mortgage-backed securities: U.S government and government-sponsored agencies — 7,378 — — 7,378 Privately issued — 426 — — 426 Privately issued - commercial mortgage-backed securities — 663 — — 663 Collateralized loan obligations — 1,997 — — 1,997 Other — 7 — — 7 Other debt securities: Direct bank purchase bonds — — 1,543 — 1,543 Other — 67 26 — 93 Equity securities 5 — — — 5 Total securities available for sale 5 13,351 1,569 — 14,925 Other assets: Mortgage servicing rights — — 34 — 34 Interest rate hedging contracts — 7 — (5 ) 2 Other derivative contracts — 16 1 (13 ) 4 Total other assets — 23 35 (18 ) 40 Total assets $ 52 $ 22,850 $ 1,776 $ (787 ) $ 23,891 Percentage of total — % 96 % 7 % (3 )% 100 % Percentage of total Company assets — % 15 % 1 % (1 )% 15 % Liabilities Trading account liabilities: Securities sold, not yet purchased: U.S. Treasury $ — $ 2,113 $ — $ — $ 2,113 State and municipal — 10 — — 10 Other sovereign government obligations — 35 — — 35 Corporate bonds — 474 — — 474 Equities 42 — — — 42 Trading derivatives: Interest rate derivative contracts 3 922 — (665 ) 260 Commodity derivative contracts — 104 — (55 ) 49 Foreign exchange derivative contracts 1 99 1 (18 ) 83 Equity derivative contracts — — 167 — 167 Total trading account liabilities 46 3,757 168 (738 ) 3,233 Other liabilities: FDIC clawback liability — — 113 — 113 Interest rate hedging contracts — 230 — (230 ) — Other derivative contracts — — 6 — 6 Total other liabilities — 230 119 (230 ) 119 Total liabilities $ 46 $ 3,987 $ 287 $ (968 ) $ 3,352 Percentage of total 1 % 119 % 9 % (29 )% 100 % Percentage of total Company liabilities — % 3 % — % (1 )% 2 % (1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. December 31, 2016 (Dollars in millions) Level 1 Level 2 Level 3 Netting Adjustment (1) Fair Value Assets Trading account assets: U.S. Treasury securities $ — $ 1,730 $ — $ — $ 1,730 U.S. government-sponsored agency securities — 73 — — 73 State and municipal securities — 18 — — 18 Commercial paper — 1 — — 1 Other sovereign government obligations — 16 — — 16 Corporate bonds — 841 — — 841 Asset-backed securities — 106 — — 106 Mortgage-backed securities — 5,221 — — 5,221 Equities 85 — — — 85 Interest rate derivative contracts 7 1,065 2 (343 ) 731 Commodity derivative contracts — 144 1 (106 ) 39 Foreign exchange derivative contracts 1 215 1 (138 ) 79 Equity derivative contracts 1 — 164 (163 ) 2 Total trading account assets 94 9,430 168 (750 ) 8,942 Securities available for sale: U.S. Treasury — 2,505 — — 2,505 Residential mortgage-backed securities: U.S government and government-sponsored agencies — 6,695 — — 6,695 Privately issued — 327 — — 327 Privately issued - commercial mortgage-backed securities — 664 — — 664 Collateralized loan obligations — 2,218 — — 2,218 Other — 7 — — 7 Other debt securities: Direct bank purchase bonds — — 1,613 — 1,613 Other — 82 25 — 107 Equity securities 5 — — — 5 Total securities available for sale 5 12,498 1,638 — 14,141 Other assets: Mortgage servicing rights — — 23 — 23 Interest rate hedging contracts — 22 — (20 ) 2 Other derivative contracts — 2 1 — 3 Total other assets — 24 24 (20 ) 28 Total assets $ 99 $ 21,952 $ 1,830 $ (770 ) $ 23,111 Percentage of total — % 95 % 8 % (3 )% 100 % Percentage of total Company assets — % 15 % 1 % (1 )% 15 % Liabilities Trading account liabilities: Securities sold, not yet purchased: U.S. Treasury $ — $ 1,973 $ — $ — $ 1,973 Other sovereign government obligations — 11 — — 11 Corporate bonds — 298 — — 298 Equities 47 — — — 47 Trading derivatives: Interest rate derivative contracts 1 987 — (718 ) 270 Commodity derivative contracts — 111 1 (68 ) 44 Foreign exchange derivative contracts 1 129 1 (33 ) 98 Equity derivative contracts — — 164 — 164 Total trading account liabilities 49 3,509 166 (819 ) 2,905 Other liabilities: FDIC clawback liability — — 115 — 115 Interest rate hedging contracts — 199 — (199 ) — Other derivative contracts — 84 6 (29 ) 61 Total other liabilities — 283 121 (228 ) 176 Total liabilities $ 49 $ 3,792 $ 287 $ (1,047 ) $ 3,081 Percentage of total 2 % 123 % 9 % (34 )% 100 % Percentage of total Company liabilities — % 3 % — % (1 )% 2 % (1) Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. |
Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2017 and 2016 . Level 3 available for sale securities at March 31, 2017 and 2016 primarily consist of direct bank purchase bonds. The Company’s policy is to recognize transfers in and out of Level 1, 2 and 3 as of the end of a reporting period. For the Three Months Ended March 31, 2017 March 31, 2016 (Dollars in millions) Trading Assets Securities Available for Sale Other Assets Trading Liabilities Other Liabilities Trading Assets Securities Available for Sale Other Assets Trading Liabilities Other Liabilities Asset (liability) balance, beginning of period $ 168 $ 1,638 $ 24 $ (166 ) $ (121 ) $ 228 $ 1,603 $ 1 $ (223 ) $ (114 ) Total gains (losses) (realized/unrealized): Included in income before taxes 30 — — (28 ) 2 (18 ) — 1 17 (2 ) Included in other comprehensive income — 3 — — — — (2 ) — — — Purchases/additions — 1 11 — — — 78 — — — Sales — — — — — — — — — — Settlements (26 ) (73 ) — 26 — (21 ) (66 ) — 19 — Transfers in (out) of level 3 — — — — — — — 13 — — Asset (liability) balance, end of period $ 172 $ 1,569 $ 35 $ (168 ) $ (119 ) $ 189 $ 1,613 $ 15 $ (187 ) $ (116 ) Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period $ 30 $ — $ — $ (28 ) $ 2 $ (18 ) $ — $ 1 $ 17 $ (2 ) |
Significant Unobservable Inputs Level 3 Assets and Liabilities | The following table presents information about significant unobservable inputs related to the Company’s significant Level 3 assets and liabilities at March 31, 2017 . March 31, 2017 (Dollars in millions) Level 3 Fair Value Valuation Technique Significant Unobservable Input(s) Range of Inputs Weighted Average Securities available for sale: Direct bank purchase bonds $ 1,543 Return on equity Market-required return on capital 8.0 - 10.0 % 9.7 % Probability of default 0.0 - 25.0 % 0.3 % Loss severity 10.0 - 60.0 % 28.5 % |
Financial Assets Measured at Fair Value on Nonrecurring Basis | For assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2017 and 2016 that were still held on the consolidated balance sheet as of the respective periods ended, the following tables present the fair value of such assets by the level of valuation assumptions used to determine each fair value adjustment. March 31, 2017 Gain (Loss) For the Three Months Ended March 31, 2017 (Dollars in millions) Fair Value Level 1 Level 2 Level 3 Loans: Impaired loans $ 139 $ — $ — $ 139 $ (16 ) Other assets: Software — — — — (3 ) Loans held for sale 15 — — 15 (2 ) Renewable energy investment 9 — — 9 2 Total $ 163 $ — $ — $ 163 $ (19 ) March 31, 2016 Gain (Loss) For the Three Months Ended March 31, 2016 (Dollars in millions) Fair Value Level 1 Level 2 Level 3 Loans: Impaired loans $ 375 $ — $ — $ 375 $ (127 ) Premises and equipment — — — — (4 ) Other assets: Loans held for sale 5 — — 5 (3 ) OREO 2 — — 2 (1 ) Private equity investments 10 — — 10 (12 ) Intangible assets — — — — (1 ) Total $ 392 $ — $ — $ 392 $ (148 ) |
Carrying Amount and Estimated Fair Value of Financial Instruments | The tables below present the carrying amount and estimated fair value of certain financial instruments, classified by valuation hierarchy level as of March 31, 2017 and as of December 31, 2016 : March 31, 2017 (Dollars in millions) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 4,827 $ 4,827 $ 4,827 $ — $ — Securities borrowed or purchased under resale agreements 19,992 19,992 — 19,992 — Securities held to maturity 10,374 10,348 — 10,348 — Loans held for investment (1) 76,105 77,234 — — 77,234 Liabilities Deposits $ 86,533 $ 86,519 $ — $ 86,519 $ — Commercial paper and other short-term borrowings 3,487 3,487 — 3,487 — Securities loaned or sold under repurchase agreements 25,079 25,079 — 25,079 — Long-term debt 11,333 11,348 — 11,348 — Off-Balance Sheet Instruments Commitments to extend credit and standby and commercial letters of credit $ 202 $ 202 $ — $ — $ 202 (1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses. December 31, 2016 (Dollars in millions) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 5,753 $ 5,753 $ 5,753 $ — $ — Securities borrowed or purchased under resale agreements 19,747 19,747 — 19,747 — Securities held to maturity 10,337 10,316 — 10,316 — Loans held for investment (1) 75,112 76,257 — — 76,257 Liabilities Deposits $ 86,947 $ 86,930 $ — $ 86,930 $ — Commercial paper and other short-term borrowings 2,360 2,360 — 2,360 — Securities loaned or sold under repurchase agreements 24,616 24,616 — 24,616 — Long-term debt 11,410 11,411 — 11,411 — Off-Balance Sheet Instruments Commitments to extend credit and standby and commercial letters of credit $ 221 $ 221 $ — $ — $ 221 (1) Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses. |
Derivative Instruments and Ot30
Derivative Instruments and Other Financial Instruments Used For Hedging (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts, Balance Sheet Location and Fair Value Amounts of Derivative Instruments | The table below presents the notional amounts and fair value amounts of the Company's derivative instruments reported on the consolidated balance sheets, segregated between derivative instruments designated and qualifying as hedging instruments and derivative instruments not designated as hedging instruments as of March 31, 2017 and December 31, 2016 , respectively. Asset and liability values are presented gross, excluding the impact of legally enforceable master netting and credit support annex agreements. The fair value of asset and liability derivatives designated and qualifying as hedging instruments and derivatives designated as other risk management are included in other assets and other liabilities, respectively. The fair value of asset and liability trading derivatives are included in trading account assets and trading account liabilities, respectively. March 31, 2017 December 31, 2016 Fair Value Fair Value Notional Asset Liability Notional Asset Liability (Dollars in millions) Amount Derivatives Derivatives Amount Derivatives Derivatives Cash flow hedges Interest rate contracts $ 13,244 $ 6 $ 230 $ 15,459 $ 19 $ 199 Fair value hedges Interest rate contracts 500 1 — 500 3 — Not designated as hedging instruments: Trading Interest rate contracts 145,724 990 925 149,229 1,074 988 Commodity contracts 2,462 133 104 2,825 145 112 Foreign exchange contracts 5,756 187 101 5,981 217 131 Equity contracts 1,995 168 167 2,385 165 164 Other contracts 21 — — 4 — — Total Trading 155,958 1,478 1,297 160,424 1,601 1,395 Other risk management 1,003 17 6 1,045 3 90 Total derivative instruments $ 170,705 $ 1,502 $ 1,533 $ 177,428 $ 1,626 $ 1,684 |
Amount and Location of Gains and Losses for Derivatives Designated as Cash Flow Hedges | The following tables present the amount and location of the net gains and losses recorded in the Company’s consolidated statements of income and changes in stockholder’s equity for derivatives designated as cash flow hedges for the three months ended March 31, 2017 and 2016 : Amount of Gain or (Loss) Recognized in OCI on Derivative Instruments (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (Gain) Loss Recognized in Income on Derivative Instruments (Ineffective Portion) For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, (Dollars in millions) 2017 2016 Location 2017 2016 Location 2017 2016 Derivatives in cash flow hedging relationships Interest income $ 29 $ 42 Interest rate contracts $ (19 ) $ 261 Interest expense — — Noninterest expense $ 2 $ 1 Total $ (19 ) $ 261 $ 29 $ 42 $ 2 $ 1 |
Schedule of derivative gains (losses) on the Company's fair value hedges | The following table presents the gains (losses) on the Company's fair value hedges and hedged item for the three months ended March 31, 2017 and 2016 , respectively: For the Three Months Ended March 31, 2017 (Dollars in millions) Derivative Hedged Item Hedge Ineffectiveness Interest rate risk on long-term debt $ (2 ) $ 1 $ (1 ) Total $ (2 ) $ 1 $ (1 ) For the Three Months Ended March 31, 2016 (Dollars in millions) Derivative Hedged Item Hedge Ineffectiveness Interest rate risk on long-term debt $ 7 $ (7 ) $ — Total $ 7 $ (7 ) $ — |
Gain or (Loss) Recognized in Income on Derivative Instruments | The following table presents the amount of the net gains and losses for derivative instruments classified as trading reported in the consolidated statements of income under the heading trading account activities for the three months ended March 31, 2017 and 2016 : Gain or (Loss) Recognized in Income on Derivative Instruments For the Three Months Ended (Dollars in millions) March 31, 2017 March 31, 2016 Trading derivatives: Interest rate contracts $ (22 ) $ (9 ) Foreign exchange contracts 10 9 Total $ (12 ) $ — |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following tables present the change in each of the components of accumulated other comprehensive income and the related tax effect of the change allocated to each component for the three months ended March 31, 2017 and 2016 : (Dollars in millions) Before Tax Amount Tax Effect Net of Tax For the Three Months Ended March 31, 2017 Cash flow hedge activities: Unrealized net gains (losses) on hedges arising during the period $ (19 ) $ 7 $ (12 ) Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt (29 ) 11 (18 ) Net change (48 ) 18 (30 ) Securities: Unrealized holding gains (losses) arising during the period on securities available for sale 56 (23 ) 33 Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net (2 ) 1 (1 ) Amortization of net unrealized (gains) losses on held to maturity securities 5 (2 ) 3 Net change 59 (24 ) 35 Foreign currency translation adjustment 1 — 1 Pension and other benefits: Amortization of prior service credit (1) (12 ) 5 (7 ) Recognized net actuarial (gain) loss (1) 23 (9 ) 14 Net change 11 (4 ) 7 Net change in AOCI $ 23 $ (10 ) $ 13 (1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements. (Dollars in millions) Before Tax Amount Tax Effect Net of Tax For the Three Months Ended March 31, 2016 Cash flow hedge activities: Unrealized net gains (losses) on hedges arising during the period $ 261 $ (103 ) $ 158 Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt (42 ) 16 (26 ) Net change 219 (87 ) 132 Securities: Unrealized holding gains (losses) arising during the period on securities available for sale 157 (62 ) 95 Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net (13 ) 5 (8 ) Amortization of net unrealized (gains) losses on held to maturity securities 5 (2 ) 3 Net change 149 (59 ) 90 Foreign currency translation adjustment 7 (3 ) 4 Pension and other benefits: Amortization of prior service credit (1) (6 ) 3 (3 ) Recognized net actuarial (gain) loss (1) 22 (9 ) 13 Net change 16 (6 ) 10 Other (2 ) — (2 ) Net change in AOCI $ 389 $ (155 ) $ 234 (1) These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements. |
Change in Accumulated Other Comprehensive Loss Balances | The following tables present the change in accumulated other comprehensive loss balances: For the Three Months Ended March 31, 2016 and 2017: Net Unrealized Gains (Losses) on Cash Flow Hedges Net Unrealized Gains (Losses) on Securities Foreign Currency Translation Adjustment Pension and Other Postretirement Benefits Adjustment Other Accumulated Other Comprehensive Loss (Dollars in millions) Balance December 31, 2015 $ 38 $ (152 ) $ (24 ) $ (612 ) $ — $ (750 ) Other comprehensive income (loss) before reclassifications 158 98 4 — — 260 Amounts reclassified from AOCI (26 ) (8 ) — 10 (2 ) (26 ) Balance, March 31, 2016 $ 170 $ (62 ) $ (20 ) $ (602 ) $ (2 ) $ (516 ) Balance, December 31, 2016 $ (77 ) $ (208 ) $ (22 ) $ (589 ) $ — $ (896 ) Other comprehensive income (loss) before reclassifications (12 ) 36 1 — — 25 Amounts reclassified from AOCI (18 ) (1 ) — 7 — (12 ) Balance, March 31, 2017 $ (107 ) $ (173 ) $ (21 ) $ (582 ) $ — $ (883 ) |
Employee Pension and Other Po32
Employee Pension and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost for the three months ended March 31, 2017 and 2016 . Pension Benefits Other Postretirement Benefits Superannuation, SERP and ESBP For the Three Months Ended For the Three Months Ended For the Three Months Ended (Dollars in millions) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 19 $ 23 $ 2 $ 2 $ — $ 1 Interest cost 25 26 2 3 1 — Expected return on plan assets (64 ) (60 ) (5 ) (5 ) — — Amortization of prior service credit (7 ) (4 ) (5 ) (2 ) — — Recognized net actuarial loss 19 19 3 2 1 1 Total net periodic benefit cost $ (8 ) $ 4 $ (3 ) $ — $ 2 $ 2 |
Commitments, Contingencies an33
Commitments, Contingencies and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments | The following table summarizes the Company's commitments: (Dollars in millions) March 31, 2017 Commitments to extend credit $ 30,976 Issued standby and commercial letters of credit 5,770 Commitments to enter into forward-starting resale agreements 502 Other commitments 1,605 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of reportable business segments | The information, set forth in the tables that follow, is prepared using various management accounting methodologies to measure the performance of the individual segments. Unlike GAAP, there is no standardized or authoritative guidance for management accounting. Consequently, reported results are not necessarily comparable with those presented by other companies and they are not necessarily indicative of the results that would be reported by the business units if they were unique economic entities. The management reporting accounting methodologies, which are enhanced from time to time, measure segment profitability by assigning balance sheet and statements of income items to each operating segment. Methodologies that are applied to the measurement of segment profitability include a funds transfer pricing system, an activity-based costing methodology, other indirect costs and a methodology to allocate the provision for credit losses. The funds transfer pricing system assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics between Corporate Treasury and the operating segments. A segment receives a funding credit from Corporate Treasury for its liabilities. Conversely, a segment is assigned a charge by Corporate Treasury to fund its assets. Certain indirect costs, such as operations and technology expense, are allocated to the segments based on an activity-based costing methodology. Other indirect costs, such as corporate overhead, are allocated to the segments based on internal surveys and metrics that serve as proxies for estimated usage. During the normal course of business, the Company occasionally changes or updates its management accounting methodologies or organizational structure. Beginning with the second quarter of 2016, the Company revised its methodology for allocating certain indirect costs to the segments. Beginning with the third quarter of 2016, the Company revised its funds transfer pricing methodology related to certain deposits. Prior period results have been updated to reflect these changes in methodology. Certain of the transferred IHC entities are not measured using management accounting methodologies. As of and for the Three Months Ended March 31, 2017: (Dollars in millions) Regional Bank U.S. Wholesale Banking Transaction Banking Investment Banking & Markets MUSA Other MUFG Americas Holdings Corporation Results of operations - Market View (1) Net interest income (expense) $ 498 $ 87 $ 137 $ 42 $ 59 $ (28 ) $ 795 Noninterest income (expense) 112 104 39 79 84 70 488 Total revenue 610 191 176 121 143 42 1,283 Noninterest expense 502 53 111 59 105 176 1,006 (Reversal of) provision for credit losses 2 — — (10 ) — (22 ) (30 ) Income (loss) before income taxes and including noncontrolling interests 106 138 65 72 38 (112 ) 307 Income tax expense (benefit) 23 55 26 (3 ) 15 (33 ) 83 Net income (loss) including noncontrolling interests 83 83 39 75 23 (79 ) 224 Deduct: net loss from noncontrolling interests — — — — — 5 5 Net income (loss) attributable to MUAH $ 83 $ 83 $ 39 $ 75 $ 23 $ (74 ) $ 229 Total assets, end of period $ 63,950 $ 11,179 $ 2,094 $ 13,778 $ 30,472 $ 28,205 $ 149,678 (1) The transferred IHC entities are not measured using a "market view" perspective. As of and for the Three Months Ended March 31, 2016: (Dollars in millions) Regional Bank U.S. Wholesale Banking Transaction Banking Investment Banking & Markets MUSA Other MUFG Americas Holdings Corporation Results of operations - Market View (1) Net interest income (expense) $ 475 $ 107 $ 113 $ 56 $ 25 $ (52 ) $ 724 Noninterest income (expense) 114 29 46 47 71 167 474 Total revenue 589 136 159 103 96 115 1,198 Noninterest expense 441 49 120 58 86 214 968 (Reversal of) provision for credit losses (2 ) 130 2 31 — 1 162 Income (loss) before income taxes and including noncontrolling interests 150 (43 ) 37 14 10 (100 ) 68 Income tax expense (benefit) 42 (17 ) 14 (19 ) 4 (6 ) 18 Net income (loss) including noncontrolling interests 108 (26 ) 23 33 6 (94 ) 50 Deduct: net loss from noncontrolling interests — — — 1 — 11 12 Net income (loss) attributable to MUAH $ 108 $ (26 ) $ 23 $ 34 $ 6 $ (83 ) $ 62 Total assets, end of period $ 62,190 $ 15,173 $ 2,522 $ 14,556 $ 32,961 $ 29,152 $ 156,554 (1) The transferred IHC entities are not measured using a "market view" perspective. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | As of March 31, 2017 and December 31, 2016 , assets and liabilities with affiliates consisted of the following: (Dollars in millions) March 31, 2017 December 31, 2016 Assets: Cash and cash equivalents $ 105 $ 102 Securities borrowed or purchased under resale agreements 2,386 2,765 Other assets 190 161 Liabilities: Deposits $ 661 $ 623 Securities loaned or sold under repurchase agreements 597 385 Commercial paper and other short-term borrowings 1,196 1,372 Long-term debt 5,966 6,042 Other liabilities 124 63 Revenue and expenses with affiliates for the three months ended March 31, 2017 and 2016 were as follows: For the Three Months Ended (Dollars in millions) 2017 2016 Interest Income Securities borrowed or purchased under resale agreements $ 7 $ 6 Interest Expense Commercial paper and other short-term borrowings 2 6 Long-term debt 28 7 Securities loaned or sold under repurchase agreements 1 — Noninterest Income Fees from affiliates 219 212 Other, net 2 — Noninterest Expense Other 25 24 |
Securities (Details)
Securities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Securities available for sale | ||
Amortized Cost | $ 15,108 | $ 14,378 |
Gross Unrealized Gains | 65 | 54 |
Gross Unrealized Losses | 248 | 291 |
Fair Value | 14,925 | 14,141 |
U.S. Treasury securities | ||
Securities available for sale | ||
Amortized Cost | 2,920 | 2,625 |
Gross Unrealized Gains | 2 | 1 |
Gross Unrealized Losses | 109 | 121 |
Fair Value | 2,813 | 2,505 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Securities available for sale | ||
Amortized Cost | 7,474 | 6,814 |
Gross Unrealized Gains | 5 | 3 |
Gross Unrealized Losses | 101 | 122 |
Fair Value | 7,378 | 6,695 |
Residential mortgage-backed securities, Privately issued | ||
Securities available for sale | ||
Amortized Cost | 431 | 333 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized Losses | 6 | 7 |
Fair Value | 426 | 327 |
Privately issued - commercial mortgage-backed securities | ||
Securities available for sale | ||
Amortized Cost | 664 | 666 |
Gross Unrealized Gains | 5 | 4 |
Gross Unrealized Losses | 6 | 6 |
Fair Value | 663 | 664 |
Collateralized loan obligations | ||
Securities available for sale | ||
Amortized Cost | 1,985 | 2,219 |
Gross Unrealized Gains | 13 | 4 |
Gross Unrealized Losses | 1 | 5 |
Fair Value | 1,997 | 2,218 |
Other Asset Liability Management Securities | ||
Securities available for sale | ||
Amortized Cost | 7 | 7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 7 | 7 |
Asset Liability Management securities | ||
Securities available for sale | ||
Amortized Cost | 13,481 | 12,664 |
Gross Unrealized Gains | 26 | 13 |
Gross Unrealized Losses | 223 | 261 |
Fair Value | 13,284 | 12,416 |
Other debt securities, Direct bank purchase bonds | ||
Securities available for sale | ||
Amortized Cost | 1,528 | 1,601 |
Gross Unrealized Gains | 39 | 41 |
Gross Unrealized Losses | 24 | 29 |
Fair Value | 1,543 | 1,613 |
Other debt securities, Other | ||
Securities available for sale | ||
Amortized Cost | 94 | 108 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 93 | 107 |
Equities | ||
Securities available for sale | ||
Amortized Cost | 5 | 5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 5 | $ 5 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | $ 8,909 | $ 8,919 |
Securities available for sale, Less than 12 months, Unrealized Losses | 220 | 259 |
Securities available for sale, 12 months or more, Fair Value | 1,316 | 2,289 |
Securities available for sale, 12 months or more, Unrealized Losses | 28 | 32 |
Securities available for sale, Fair Value, Total | 10,225 | 11,208 |
Securities available for sale, Unrealized Losses, Total | 248 | 291 |
US Treasury Securities | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 2,270 | 2,257 |
Securities available for sale, Less than 12 months, Unrealized Losses | 109 | 121 |
Securities available for sale, 12 months or more, Fair Value | 0 | 0 |
Securities available for sale, 12 months or more, Unrealized Losses | 0 | 0 |
Securities available for sale, Fair Value, Total | 2,270 | 2,257 |
Securities available for sale, Unrealized Losses, Total | 109 | 121 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 5,567 | 5,501 |
Securities available for sale, Less than 12 months, Unrealized Losses | 93 | 113 |
Securities available for sale, 12 months or more, Fair Value | 606 | 667 |
Securities available for sale, 12 months or more, Unrealized Losses | 8 | 9 |
Securities available for sale, Fair Value, Total | 6,173 | 6,168 |
Securities available for sale, Unrealized Losses, Total | 101 | 122 |
Residential mortgage-backed securities, Privately issued | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 249 | 249 |
Securities available for sale, Less than 12 months, Unrealized Losses | 5 | 6 |
Securities available for sale, 12 months or more, Fair Value | 26 | 29 |
Securities available for sale, 12 months or more, Unrealized Losses | 1 | 1 |
Securities available for sale, Fair Value, Total | 275 | 278 |
Securities available for sale, Unrealized Losses, Total | 6 | 7 |
Privately issued - commercial mortgage-backed securities | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 371 | 415 |
Securities available for sale, Less than 12 months, Unrealized Losses | 6 | 6 |
Securities available for sale, 12 months or more, Fair Value | 11 | 11 |
Securities available for sale, 12 months or more, Unrealized Losses | 0 | 0 |
Securities available for sale, Fair Value, Total | 382 | 426 |
Securities available for sale, Unrealized Losses, Total | 6 | 6 |
Collateralized loan obligations | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 168 | 75 |
Securities available for sale, Less than 12 months, Unrealized Losses | 0 | 0 |
Securities available for sale, 12 months or more, Fair Value | 129 | 1,077 |
Securities available for sale, 12 months or more, Unrealized Losses | 1 | 5 |
Securities available for sale, Fair Value, Total | 297 | 1,152 |
Securities available for sale, Unrealized Losses, Total | 1 | 5 |
Asset-backed and other | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 0 | |
Securities available for sale, Less than 12 months, Unrealized Losses | 0 | |
Securities available for sale, 12 months or more, Fair Value | 1 | |
Securities available for sale, 12 months or more, Unrealized Losses | 0 | |
Securities available for sale, Fair Value, Total | 1 | |
Securities available for sale, Unrealized Losses, Total | 0 | |
Asset Liability Management securities | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 8,625 | 8,497 |
Securities available for sale, Less than 12 months, Unrealized Losses | 213 | 246 |
Securities available for sale, 12 months or more, Fair Value | 772 | 1,785 |
Securities available for sale, 12 months or more, Unrealized Losses | 10 | 15 |
Securities available for sale, Fair Value, Total | 9,397 | 10,282 |
Securities available for sale, Unrealized Losses, Total | 223 | 261 |
Other debt securities, Direct bank purchase bonds | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 193 | 386 |
Securities available for sale, Less than 12 months, Unrealized Losses | 6 | 12 |
Securities available for sale, 12 months or more, Fair Value | 539 | 499 |
Securities available for sale, 12 months or more, Unrealized Losses | 18 | 17 |
Securities available for sale, Fair Value, Total | 732 | 885 |
Securities available for sale, Unrealized Losses, Total | 24 | 29 |
Other debt securities, Other | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 91 | 36 |
Securities available for sale, Less than 12 months, Unrealized Losses | 1 | 1 |
Securities available for sale, 12 months or more, Fair Value | 5 | 0 |
Securities available for sale, 12 months or more, Unrealized Losses | 0 | 0 |
Securities available for sale, Fair Value, Total | 96 | 36 |
Securities available for sale, Unrealized Losses, Total | $ 1 | 1 |
Equities | ||
Securities available for sale | ||
Securities available for sale, Less than 12 months, Fair Value | 0 | |
Securities available for sale, Less than 12 months, Unrealized Losses | 0 | |
Securities available for sale, 12 months or more, Fair Value | 5 | |
Securities available for sale, 12 months or more, Unrealized Losses | 0 | |
Securities available for sale, Fair Value, Total | 5 | |
Securities available for sale, Unrealized Losses, Total | $ 0 |
Securities (Details 3)
Securities (Details 3) $ in Millions | Mar. 31, 2017USD ($) |
Securities available for sale | |
One Year or Less | $ 5 |
Over One Year Through Five Years | 899 |
Over Five Years Through Ten Years | 4,465 |
Over Ten Years | 9,551 |
Total Fair Value | 14,920 |
U.S. Treasury securities | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 393 |
Over Five Years Through Ten Years | 2,420 |
Over Ten Years | 0 |
Total Fair Value | 2,813 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 9 |
Over Five Years Through Ten Years | 301 |
Over Ten Years | 7,068 |
Total Fair Value | 7,378 |
Residential mortgage-backed securities, Privately issued | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 1 |
Over Five Years Through Ten Years | 0 |
Over Ten Years | 425 |
Total Fair Value | 426 |
Privately issued - commercial mortgage-backed securities | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 0 |
Over Five Years Through Ten Years | 0 |
Over Ten Years | 663 |
Total Fair Value | 663 |
Collateralized loan obligations | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 0 |
Over Five Years Through Ten Years | 1,020 |
Over Ten Years | 977 |
Total Fair Value | 1,997 |
Other Asset Liability Management Securities | |
Securities available for sale | |
One Year or Less | 1 |
Over One Year Through Five Years | 1 |
Over Five Years Through Ten Years | 5 |
Over Ten Years | 0 |
Total Fair Value | 7 |
Asset Liability Management securities | |
Securities available for sale | |
One Year or Less | 1 |
Over One Year Through Five Years | 404 |
Over Five Years Through Ten Years | 3,746 |
Over Ten Years | 9,133 |
Total Fair Value | 13,284 |
Other debt securities, Direct bank purchase bonds | |
Securities available for sale | |
One Year or Less | 4 |
Over One Year Through Five Years | 428 |
Over Five Years Through Ten Years | 719 |
Over Ten Years | 392 |
Total Fair Value | 1,543 |
Other debt securities, Other | |
Securities available for sale | |
One Year or Less | 0 |
Over One Year Through Five Years | 67 |
Over Five Years Through Ten Years | 0 |
Over Ten Years | 26 |
Total Fair Value | $ 93 |
Securities (Details 4)
Securities (Details 4) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross realized gains | $ 2 | $ 13 |
Gross realized losses | $ 0 | $ 0 |
Securities (Details 5)
Securities (Details 5) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | $ 10,471 | $ 10,438 |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 2 | 3 |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 99 | 104 |
Total securities held to maturity, carrying amount | 10,374 | 10,337 |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 79 | 82 |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 105 | 103 |
Total securities held to maturity, Fair Value | 10,348 | 10,316 |
US Treasury Securities | ||
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | 493 | 492 |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 0 | 0 |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 0 | 0 |
Total securities held to maturity, carrying amount | 493 | 492 |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 4 | 5 |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 0 | 0 |
Total securities held to maturity, Fair Value | 497 | 497 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | 8,342 | 8,301 |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 2 | 3 |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 38 | 41 |
Total securities held to maturity, carrying amount | 8,306 | 8,263 |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 32 | 34 |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 98 | 96 |
Total securities held to maturity, Fair Value | 8,240 | 8,201 |
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | ||
Securities held to maturity | ||
Securities held to maturity, Amortized Cost | 1,636 | 1,645 |
Securities held to maturity, Gross Unrealized Gains, Recognized in Other Comprehensive Income (OCI) | 0 | 0 |
Securities held to maturity, gross unrealized losses, recognized in other comprehensive income (OCI) | 61 | 63 |
Total securities held to maturity, carrying amount | 1,575 | 1,582 |
Securities held to maturity, Gross Unrealized Gains, Not Recognized in OCI | 43 | 43 |
Securities held to maturity, Gross Unrealized Losses, Not Recognized in OCI | 7 | 7 |
Total securities held to maturity, Fair Value | $ 1,611 | $ 1,618 |
Securities (Details 6)
Securities (Details 6) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Securities held to maturity | ||
Less than 12 months, Fair Value | $ 5,086 | $ 4,603 |
Less than 12 months, Unrealized Losses, Recognized in OCI | 0 | 0 |
Less than 12 months, Unrealized Losses, Not Recognized in OCI | 98 | 93 |
12 months or more, Fair Value | 2,769 | 2,834 |
12 months or more, Unrealized Losses, Recognized in OCI | 99 | 104 |
12 months or more, Unrealized Losses, Not Recognized in OCI | 7 | 10 |
Total, Fair Value | 7,855 | 7,437 |
Total, Unrealized Losses, Recognized in OCI | 99 | 104 |
Total, Unrealized Losses, Not Recognized in OCI | 105 | 103 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Securities held to maturity | ||
Less than 12 months, Fair Value | 4,977 | 4,492 |
Less than 12 months, Unrealized Losses, Recognized in OCI | 0 | 0 |
Less than 12 months, Unrealized Losses, Not Recognized in OCI | 96 | 92 |
12 months or more, Fair Value | 1,324 | 1,386 |
12 months or more, Unrealized Losses, Recognized in OCI | 38 | 41 |
12 months or more, Unrealized Losses, Not Recognized in OCI | 2 | 4 |
Total, Fair Value | 6,301 | 5,878 |
Total, Unrealized Losses, Recognized in OCI | 38 | 41 |
Total, Unrealized Losses, Not Recognized in OCI | 98 | 96 |
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | ||
Securities held to maturity | ||
Less than 12 months, Fair Value | 109 | 111 |
Less than 12 months, Unrealized Losses, Recognized in OCI | 0 | 0 |
Less than 12 months, Unrealized Losses, Not Recognized in OCI | 2 | 1 |
12 months or more, Fair Value | 1,445 | 1,448 |
12 months or more, Unrealized Losses, Recognized in OCI | 61 | 63 |
12 months or more, Unrealized Losses, Not Recognized in OCI | 5 | 6 |
Total, Fair Value | 1,554 | 1,559 |
Total, Unrealized Losses, Recognized in OCI | 61 | 63 |
Total, Unrealized Losses, Not Recognized in OCI | $ 7 | $ 7 |
Securities (Details 7)
Securities (Details 7) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | $ 792 | |
Over One Year Through Five Years, Fair Value | 806 | |
Over Five Years Through Ten Years, Carrying Amount | 884 | |
Over Five Years Through Ten Years, Fair Value | 905 | |
Over Ten Years, Carrying Amount | 8,698 | |
Over Ten Years, Fair Value | 8,637 | |
Total securities held to maturity, carrying amount | 10,374 | $ 10,337 |
Total securities held to maturity, Fair Value | 10,348 | 10,316 |
U.S. Treasury securities | ||
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | 493 | |
Over One Year Through Five Years, Fair Value | 497 | |
Over Five Years Through Ten Years, Carrying Amount | 0 | |
Over Five Years Through Ten Years, Fair Value | 0 | |
Over Ten Years, Carrying Amount | 0 | |
Over Ten Years, Fair Value | 0 | |
Total securities held to maturity, carrying amount | 493 | 492 |
Total securities held to maturity, Fair Value | 497 | 497 |
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | ||
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | 0 | |
Over One Year Through Five Years, Fair Value | 0 | |
Over Five Years Through Ten Years, Carrying Amount | 326 | |
Over Five Years Through Ten Years, Fair Value | 324 | |
Over Ten Years, Carrying Amount | 7,980 | |
Over Ten Years, Fair Value | 7,916 | |
Total securities held to maturity, carrying amount | 8,306 | 8,263 |
Total securities held to maturity, Fair Value | 8,240 | $ 8,201 |
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities | ||
Securities held to maturity | ||
Over One Year Through Five Years, Carrying Amount | 299 | |
Over One Year Through Five Years, Fair Value | 309 | |
Over Five Years Through Ten Years, Carrying Amount | 558 | |
Over Five Years Through Ten Years, Fair Value | 581 | |
Over Ten Years, Carrying Amount | 718 | |
Over Ten Years, Fair Value | 721 | |
Total securities held to maturity, carrying amount | 1,575 | |
Total securities held to maturity, Fair Value | $ 1,611 |
Securities (Details 8)
Securities (Details 8) - USD ($) $ in Billions | Mar. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value | $ 12.4 | $ 12.1 |
Financial Instruments Owned and Pledged as Collateral, Amount Eligible to be Repledged by Counterparty | 1.2 | 1.3 |
Securities Received as Collateral | 30.5 | 31.6 |
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 30.5 | 31.6 |
Fair Value of Securities Received as Collateral that Have Been Resold or Repledged | $ 29.1 | $ 30.5 |
Loans and Allowance for Loan 44
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | $ 78,434 | $ 77,551 | |||
Loans held for investment | [1] | 78,434 | 77,551 | ||
Allowance for loan losses | (570) | (639) | $ (881) | $ (723) | |
Loans held for investment, net | 77,864 | 76,912 | |||
Net unamortized discounts and premiums and deferred fees and costs | 205 | 180 | |||
Commercial portfolio | |||||
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | 43,889 | 44,106 | |||
Commercial portfolio | Commercial and industrial | |||||
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | 25,602 | 25,379 | |||
Commercial portfolio | Commercial mortgage | |||||
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | 14,468 | 14,625 | |||
Commercial portfolio | Construction | |||||
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | 2,040 | 2,283 | |||
Commercial portfolio | Lease financing | |||||
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | 1,779 | 1,819 | |||
Consumer portfolio | |||||
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | 34,545 | 33,445 | |||
Consumer portfolio | Residential mortgage | |||||
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | 31,162 | 29,922 | |||
Consumer portfolio | Home equity and other consumer loans | |||||
Loans disclosures | |||||
Loans excluding purchased credit-impaired loans | $ 3,383 | $ 3,523 | |||
[1] | Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs. |
Loans and Allowance for Loan 45
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan losses, beginning of period | $ 639 | $ 723 |
(Reversal of) provision for loan losses | (14) | 158 |
Other | 1 | 4 |
Loans charged-off | (66) | (9) |
Recoveries of loans previously charged-off | 10 | 5 |
Allowance for loan losses, end of period | 570 | 881 |
Commercial portfolio | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan losses, beginning of period | 556 | 653 |
(Reversal of) provision for loan losses | (26) | 171 |
Other | 1 | 4 |
Loans charged-off | (55) | (8) |
Recoveries of loans previously charged-off | 9 | 4 |
Allowance for loan losses, end of period | 485 | 824 |
Consumer portfolio | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan losses, beginning of period | 83 | 50 |
(Reversal of) provision for loan losses | 12 | 7 |
Other | 0 | 0 |
Loans charged-off | (11) | (1) |
Recoveries of loans previously charged-off | 1 | 1 |
Allowance for loan losses, end of period | 85 | 57 |
Unallocated portfolio | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan losses, beginning of period | 0 | 20 |
(Reversal of) provision for loan losses | 0 | (20) |
Other | 0 | 0 |
Loans charged-off | 0 | 0 |
Recoveries of loans previously charged-off | 0 | 0 |
Allowance for loan losses, end of period | $ 0 | $ 0 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Loan losses allowance | |||||
Individually evaluated for impairment | $ 137 | $ 168 | |||
Collectively evaluated for impairment | 433 | 471 | |||
Total allowance for loan losses | 570 | 639 | $ 881 | $ 723 | |
Loans held for investment: | |||||
Individually evaluated for impairment | 1,010 | 1,022 | |||
Collectively evaluated for impairment | 77,424 | 76,529 | |||
Loans held for investment | [1] | 78,434 | 77,551 | ||
Commercial portfolio | |||||
Loan losses allowance | |||||
Individually evaluated for impairment | 117 | 151 | |||
Collectively evaluated for impairment | 368 | 405 | |||
Total allowance for loan losses | 485 | 556 | 824 | 653 | |
Loans held for investment: | |||||
Individually evaluated for impairment | 638 | 636 | |||
Collectively evaluated for impairment | 43,251 | 43,470 | |||
Loans held for investment | 43,889 | 44,106 | |||
Consumer portfolio | |||||
Loan losses allowance | |||||
Individually evaluated for impairment | 20 | 17 | |||
Collectively evaluated for impairment | 65 | 66 | |||
Total allowance for loan losses | 85 | 83 | $ 57 | $ 50 | |
Loans held for investment: | |||||
Individually evaluated for impairment | 372 | 386 | |||
Collectively evaluated for impairment | 34,173 | 33,059 | |||
Loans held for investment | $ 34,545 | $ 33,445 | |||
[1] | Includes $205 million and $180 million at March 31, 2017 and December 31, 2016, respectively, for net unamortized (discounts) and premiums and deferred (fees) and costs. |
Loans and Allowance for Loan 47
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Nonaccrual loans | ||
Nonaccrual loans | $ 569 | $ 689 |
Troubled debt restructured loans that continue to accrue interest | 336 | 215 |
Troubled debt restructured nonaccrual loans (included in the total nonaccrual loans above) | 301 | 384 |
Commercial portfolio | ||
Nonaccrual loans | ||
Nonaccrual loans | 433 | 489 |
Commercial portfolio | Commercial and industrial | ||
Nonaccrual loans | ||
Nonaccrual loans | 400 | 458 |
Commercial portfolio | Commercial mortgage | ||
Nonaccrual loans | ||
Nonaccrual loans | 33 | 31 |
Consumer portfolio | ||
Nonaccrual loans | ||
Nonaccrual loans | 136 | 200 |
Consumer portfolio | Residential mortgage | ||
Nonaccrual loans | ||
Nonaccrual loans | 110 | 171 |
Consumer portfolio | Home equity and other consumer loans | ||
Nonaccrual loans | ||
Nonaccrual loans | $ 26 | $ 29 |
Loans and Allowance for Loan 48
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Aging of loans | ||
Current | $ 78,151 | $ 77,188 |
30 to 89 Days Past Due | 159 | 228 |
Total loans 90 days or more past due and still accruing | 124 | 135 |
Total Past Due | 283 | 363 |
Total loans held for investment, before purchased credit-impaired loans | 78,434 | 77,551 |
Commercial portfolio | ||
Aging of loans | ||
Current | 43,792 | 43,939 |
30 to 89 Days Past Due | 28 | 91 |
Total loans 90 days or more past due and still accruing | 69 | 76 |
Total Past Due | 97 | 167 |
Total loans held for investment, before purchased credit-impaired loans | 43,889 | 44,106 |
Commercial portfolio | Commercial and industrial | ||
Aging of loans | ||
Current | 27,317 | 27,085 |
30 to 89 Days Past Due | 10 | 54 |
Total loans 90 days or more past due and still accruing | 54 | 59 |
Total Past Due | 64 | 113 |
Total loans held for investment, before purchased credit-impaired loans | 27,381 | 27,198 |
Commercial portfolio | Commercial mortgage | ||
Aging of loans | ||
Current | 14,435 | 14,571 |
30 to 89 Days Past Due | 18 | 37 |
Total loans 90 days or more past due and still accruing | 15 | 17 |
Total Past Due | 33 | 54 |
Total loans held for investment, before purchased credit-impaired loans | 14,468 | 14,625 |
Commercial portfolio | Construction | ||
Aging of loans | ||
Current | 2,040 | 2,283 |
30 to 89 Days Past Due | 0 | 0 |
Total loans 90 days or more past due and still accruing | 0 | 0 |
Total Past Due | 0 | 0 |
Total loans held for investment, before purchased credit-impaired loans | 2,040 | 2,283 |
Consumer portfolio | ||
Aging of loans | ||
Current | 34,359 | 33,249 |
30 to 89 Days Past Due | 131 | 137 |
Total loans 90 days or more past due and still accruing | 55 | 59 |
Total Past Due | 186 | 196 |
Total loans held for investment, before purchased credit-impaired loans | 34,545 | 33,445 |
Consumer portfolio | Residential mortgage | ||
Aging of loans | ||
Current | 31,012 | 29,770 |
30 to 89 Days Past Due | 110 | 110 |
Total loans 90 days or more past due and still accruing | 40 | 42 |
Total Past Due | 150 | 152 |
Total loans held for investment, before purchased credit-impaired loans | 31,162 | 29,922 |
Consumer portfolio | Home equity and other consumer loans | ||
Aging of loans | ||
Current | 3,347 | 3,479 |
30 to 89 Days Past Due | 21 | 27 |
Total loans 90 days or more past due and still accruing | 15 | 17 |
Total Past Due | 36 | 44 |
Total loans held for investment, before purchased credit-impaired loans | $ 3,383 | $ 3,523 |
Loans and Allowance for Loan 49
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Aging of loans | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 24 | $ 23 |
Commercial portfolio | ||
Aging of loans | ||
Total loans | 43,840 | 43,769 |
Commercial portfolio | Pass | ||
Aging of loans | ||
Total loans | 41,689 | 41,342 |
Commercial portfolio | Special Mention | ||
Aging of loans | ||
Total loans | 846 | 1,142 |
Commercial portfolio | Classified | ||
Aging of loans | ||
Total loans | 1,305 | 1,285 |
Commercial portfolio | Commercial and industrial | ||
Aging of loans | ||
Total loans | 27,350 | 26,985 |
Commercial portfolio | Commercial and industrial | Pass | ||
Aging of loans | ||
Total loans | 25,708 | 25,028 |
Commercial portfolio | Commercial and industrial | Special Mention | ||
Aging of loans | ||
Total loans | 635 | 860 |
Commercial portfolio | Commercial and industrial | Classified | ||
Aging of loans | ||
Total loans | 1,007 | 1,097 |
Commercial portfolio | Commercial mortgage | ||
Aging of loans | ||
Total loans | 14,449 | 14,501 |
Commercial portfolio | Commercial mortgage | Pass | ||
Aging of loans | ||
Total loans | 14,119 | 14,152 |
Commercial portfolio | Commercial mortgage | Special Mention | ||
Aging of loans | ||
Total loans | 93 | 161 |
Commercial portfolio | Commercial mortgage | Classified | ||
Aging of loans | ||
Total loans | 237 | 188 |
Commercial portfolio | Construction | ||
Aging of loans | ||
Total loans | 2,041 | 2,283 |
Commercial portfolio | Construction | Pass | ||
Aging of loans | ||
Total loans | 1,862 | 2,162 |
Commercial portfolio | Construction | Special Mention | ||
Aging of loans | ||
Total loans | 118 | 121 |
Commercial portfolio | Construction | Classified | ||
Aging of loans | ||
Total loans | $ 61 | $ 0 |
Loans and Allowance for Loan 50
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Consumer portfolio loans | ||
Nonaccrual | $ 569 | $ 689 |
Total loans held for investment, before purchased credit-impaired loans | 78,434 | 77,551 |
Consumer | ||
Consumer portfolio loans | ||
Loans and Leases Receivable, Net Amount | 10 | 11 |
Consumer portfolio | ||
Consumer portfolio loans | ||
Accrual | 34,409 | 33,245 |
Nonaccrual | 136 | 200 |
Total loans held for investment, before purchased credit-impaired loans | 34,545 | 33,445 |
Consumer portfolio | Residential mortgage | ||
Consumer portfolio loans | ||
Accrual | 31,052 | 29,751 |
Nonaccrual | 110 | 171 |
Total loans held for investment, before purchased credit-impaired loans | 31,162 | 29,922 |
Consumer portfolio | Home equity and other consumer loans | ||
Consumer portfolio loans | ||
Accrual | 3,357 | 3,494 |
Nonaccrual | 26 | 29 |
Total loans held for investment, before purchased credit-impaired loans | $ 3,383 | $ 3,523 |
Loans and Allowance for Loan 51
Loans and Allowance for Loan Losses (Details 8) - Consumer portfolio - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | $ 34,186 | $ 33,099 | |
Percentage of total | 100.00% | 100.00% | |
FICO Score 720 and Above | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | $ 26,928 | $ 25,970 | |
Percentage of total | 79.00% | 78.00% | |
FICO Score Below 720 | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | $ 6,683 | $ 6,574 | |
Percentage of total | 19.00% | 20.00% | |
No FICO Available | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | [1] | $ 575 | $ 555 |
Percentage of total | [1] | 2.00% | 2.00% |
Residential mortgage | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | $ 30,862 | $ 29,639 | |
Residential mortgage | FICO Score 720 and Above | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 24,680 | 23,598 | |
Residential mortgage | FICO Score Below 720 | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 5,746 | 5,597 | |
Residential mortgage | No FICO Available | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | [1] | 436 | 444 |
Home equity and other consumer loans | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 3,324 | 3,460 | |
Home equity and other consumer loans | FICO Score 720 and Above | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 2,248 | 2,372 | |
Home equity and other consumer loans | FICO Score Below 720 | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | 937 | 977 | |
Home equity and other consumer loans | No FICO Available | |||
Credit quality of consumer loans | |||
Loan balances, excluding loans serviced by third parties and loans covered by FDIC loss share agreements | [1] | $ 139 | $ 111 |
[1] | Represents loans for which management was not able to obtain an updated FICO score (e.g., due to recent profile changes). |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses (Details 9) - Consumer portfolio - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | $ 33,260 | $ 32,089 | |
Percentage of total loans categorized by LTV ratio | 100.00% | 100.00% | |
LTV Ratio Less than or Equal to 80 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | $ 31,824 | $ 30,707 | |
Percentage of total loans categorized by LTV ratio | 96.00% | 96.00% | |
LTV Ratio Greater than 80 Percent and Less than 100 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | $ 1,309 | $ 1,236 | |
Percentage of total loans categorized by LTV ratio | 4.00% | 4.00% | |
LTV Ratio Greater than or Equal to 100 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | $ 51 | $ 57 | |
Percentage of total loans categorized by LTV ratio | 0.00% | 0.00% | |
No LTV Available | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | [1] | $ 76 | $ 89 |
Percentage of total loans categorized by LTV ratio | [1] | 0.00% | 0.00% |
Residential mortgage | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | $ 30,862 | $ 29,639 | |
Residential mortgage | LTV Ratio Less than or Equal to 80 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | 29,721 | 28,547 | |
Residential mortgage | LTV Ratio Greater than 80 Percent and Less than 100 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | 1,090 | 1,030 | |
Residential mortgage | LTV Ratio Greater than or Equal to 100 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | 14 | 16 | |
Residential mortgage | No LTV Available | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | [1] | 37 | 46 |
Home Equity loans | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | 2,398 | 2,450 | |
Home Equity loans | LTV Ratio Less than or Equal to 80 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | 2,103 | 2,160 | |
Home Equity loans | LTV Ratio Greater than 80 Percent and Less than 100 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | 219 | 206 | |
Home Equity loans | LTV Ratio Greater than or Equal to 100 Percent | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | 37 | 41 | |
Home Equity loans | No LTV Available | |||
Credit quality of consumer loans | |||
Loans categorized by LTV ratio | [1] | $ 39 | $ 43 |
[1] | Represents loans for which management was not able to obtain refreshed property values. |
Loans and Allowance for Loan 53
Loans and Allowance for Loan Losses (Details 10) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Pre- and Post - modification recorded investments | ||
Commitment to lend additional funds to borrowers with loan modifications classified as TDRs | $ 48 | $ 59 |
Total excluding purchased credit-impaired loans | 637 | 599 |
Commercial portfolio | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 374 | 330 |
Commercial portfolio | Commercial and industrial | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 304 | 321 |
Commercial portfolio | Commercial mortgage | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 9 | 9 |
Commercial portfolio | Construction | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 61 | 0 |
Consumer portfolio | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 263 | 269 |
Consumer portfolio | Residential mortgage | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | 234 | 239 |
Consumer portfolio | Home equity and other consumer loans | ||
Pre- and Post - modification recorded investments | ||
Total excluding purchased credit-impaired loans | $ 29 | $ 30 |
Loans and Allowance for Loan 54
Loans and Allowance for Loan Losses (Details 11) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Pre- and Post - modification recorded investments | |||
Pre-Modification Outstanding Recorded Investment | [1] | $ 144 | $ 60 |
Post-Modification Outstanding Recorded Investment | [2] | 144 | 60 |
Commercial portfolio | |||
Pre- and Post - modification recorded investments | |||
Pre-Modification Outstanding Recorded Investment | [1] | 140 | 55 |
Post-Modification Outstanding Recorded Investment | [2] | 140 | 55 |
Commercial portfolio | Commercial and industrial | |||
Pre- and Post - modification recorded investments | |||
Pre-Modification Outstanding Recorded Investment | [1] | 78 | 50 |
Post-Modification Outstanding Recorded Investment | [2] | 78 | 50 |
Commercial portfolio | Commercial mortgage | |||
Pre- and Post - modification recorded investments | |||
Pre-Modification Outstanding Recorded Investment | [1] | 1 | 5 |
Post-Modification Outstanding Recorded Investment | [2] | 1 | 5 |
Commercial portfolio | Construction | |||
Pre- and Post - modification recorded investments | |||
Pre-Modification Outstanding Recorded Investment | [1] | 61 | |
Post-Modification Outstanding Recorded Investment | [2] | 61 | |
Consumer portfolio | |||
Pre- and Post - modification recorded investments | |||
Pre-Modification Outstanding Recorded Investment | [1] | 4 | 5 |
Post-Modification Outstanding Recorded Investment | [2] | 4 | 5 |
Consumer portfolio | Residential mortgage | |||
Pre- and Post - modification recorded investments | |||
Pre-Modification Outstanding Recorded Investment | [1] | 4 | 4 |
Post-Modification Outstanding Recorded Investment | [2] | $ 4 | 4 |
Consumer portfolio | Home equity and other consumer loans | |||
Pre- and Post - modification recorded investments | |||
Pre-Modification Outstanding Recorded Investment | [1] | 1 | |
Post-Modification Outstanding Recorded Investment | [2] | $ 1 | |
[1] | Represents the recorded investment in the loan immediately prior to the restructuring event. | ||
[2] | Represents the recorded investment in the loan immediately following the restructuring event. It includes the effect of paydowns that were required as part of the restructuring terms. |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses (Details 12) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Troubled debt restructured loans | ||
Minimum defaulting period | 60 days | |
Total troubled debt restructured loans at date of default | $ 4 | $ 3 |
Commercial portfolio | ||
Troubled debt restructured loans | ||
Total troubled debt restructured loans at date of default | 3 | 1 |
Commercial portfolio | Commercial and industrial | ||
Troubled debt restructured loans | ||
Total troubled debt restructured loans at date of default | 2 | 1 |
Commercial portfolio | Commercial mortgage | ||
Troubled debt restructured loans | ||
Total troubled debt restructured loans at date of default | 1 | |
Consumer portfolio | ||
Troubled debt restructured loans | ||
Total troubled debt restructured loans at date of default | 1 | 2 |
Consumer portfolio | Residential mortgage | ||
Troubled debt restructured loans | ||
Total troubled debt restructured loans at date of default | $ 1 | $ 2 |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses (Details 13) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Loan impairment | ||
Recorded investment with an allowance | $ 756 | $ 882 |
Recorded investment without an allowance | 254 | 140 |
Impaired loans | 1,010 | 1,022 |
Allowance for impaired loans | 137 | 168 |
Unpaid principal balance with an allowance | 865 | 986 |
Unpaid principal balance without an allowance | 309 | 182 |
Commercial portfolio | ||
Loan impairment | ||
Recorded investment with an allowance | 475 | 591 |
Recorded investment without an allowance | 163 | 45 |
Impaired loans | 638 | 636 |
Allowance for impaired loans | 117 | 151 |
Unpaid principal balance with an allowance | 568 | 680 |
Unpaid principal balance without an allowance | 195 | 63 |
Commercial portfolio | Commercial and industrial | ||
Loan impairment | ||
Recorded investment with an allowance | 421 | 505 |
Recorded investment without an allowance | 94 | 36 |
Impaired loans | 515 | 541 |
Allowance for impaired loans | 116 | 150 |
Unpaid principal balance with an allowance | 514 | 672 |
Unpaid principal balance without an allowance | 125 | 54 |
Commercial portfolio | Commercial mortgage | ||
Loan impairment | ||
Recorded investment with an allowance | 54 | 86 |
Recorded investment without an allowance | 8 | 9 |
Impaired loans | 62 | 95 |
Allowance for impaired loans | 1 | 1 |
Unpaid principal balance with an allowance | 54 | 8 |
Unpaid principal balance without an allowance | 9 | 9 |
Commercial portfolio | Construction | ||
Loan impairment | ||
Recorded investment with an allowance | 0 | |
Recorded investment without an allowance | 61 | |
Impaired loans | 61 | |
Allowance for impaired loans | 0 | |
Unpaid principal balance with an allowance | 0 | |
Unpaid principal balance without an allowance | 61 | |
Consumer portfolio | ||
Loan impairment | ||
Recorded investment with an allowance | 281 | 291 |
Recorded investment without an allowance | 91 | 95 |
Impaired loans | 372 | 386 |
Allowance for impaired loans | 20 | 17 |
Unpaid principal balance with an allowance | 297 | 306 |
Unpaid principal balance without an allowance | 114 | 119 |
Consumer portfolio | Residential mortgage | ||
Loan impairment | ||
Recorded investment with an allowance | 243 | 250 |
Recorded investment without an allowance | 72 | 75 |
Impaired loans | 315 | 325 |
Allowance for impaired loans | 20 | 17 |
Unpaid principal balance with an allowance | 257 | 295 |
Unpaid principal balance without an allowance | 85 | 89 |
Consumer portfolio | Home equity and other consumer loans | ||
Loan impairment | ||
Recorded investment with an allowance | 38 | 41 |
Recorded investment without an allowance | 19 | 20 |
Impaired loans | 57 | 61 |
Allowance for impaired loans | 0 | 0 |
Unpaid principal balance with an allowance | 40 | 11 |
Unpaid principal balance without an allowance | $ 29 | $ 30 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses (Details 14) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Loan impairment | ||
Average Recorded Investment | $ 785 | $ 946 |
Recognized Interest Income | 6 | 5 |
Commercial portfolio | ||
Loan impairment | ||
Average Recorded Investment | 519 | 642 |
Recognized Interest Income | 4 | 2 |
Commercial portfolio | Commercial and industrial | ||
Loan impairment | ||
Average Recorded Investment | 491 | 624 |
Recognized Interest Income | 4 | 2 |
Commercial portfolio | Commercial mortgage | ||
Loan impairment | ||
Average Recorded Investment | 18 | 18 |
Recognized Interest Income | 0 | 0 |
Commercial portfolio | Construction | ||
Loan impairment | ||
Average Recorded Investment | 10 | 0 |
Recognized Interest Income | 0 | 0 |
Consumer portfolio | ||
Loan impairment | ||
Average Recorded Investment | 266 | 304 |
Recognized Interest Income | 2 | 3 |
Consumer portfolio | Residential mortgage | ||
Loan impairment | ||
Average Recorded Investment | 237 | 273 |
Recognized Interest Income | 2 | 2 |
Consumer portfolio | Home equity and other consumer loans | ||
Loan impairment | ||
Average Recorded Investment | 29 | 31 |
Recognized Interest Income | $ 0 | $ 1 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses (Details 15) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Loans disclosures | ||
Transfers of loans from held for investment to held for sale, net | $ (230) | $ (81) |
Proceeds from sale | 347 | 49 |
Commercial portfolio | ||
Loans disclosures | ||
Transfers of loans from held for investment to held for sale, net | (234) | (81) |
Proceeds from sale | 347 | 49 |
Consumer portfolio | ||
Loans disclosures | ||
Transfers of loans from held for investment to held for sale, net | 4 | 0 |
Proceeds from sale | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Millions | Mar. 31, 2017USD ($)investment | Dec. 31, 2016USD ($) |
Consolidated Assets | ||
Other assets | $ 8,927 | $ 8,496 |
Consolidated Liabilities | ||
Other liabilities | 2,383 | 2,520 |
Consolidated VIEs | ||
Consolidated Assets | ||
Loans held for investment, net | 622 | 641 |
Other assets | 279 | 286 |
Total assets | 901 | 927 |
Consolidated Liabilities | ||
Other liabilities | 54 | 54 |
Total Liabilities | 54 | 54 |
Consolidated VIEs | Low-income housing credit investments | ||
Consolidated Assets | ||
Loans held for investment, net | 0 | 0 |
Other assets | 106 | 112 |
Total assets | 106 | 112 |
Consolidated Liabilities | ||
Other liabilities | 0 | 0 |
Total Liabilities | $ 0 | 0 |
Number of LIHC investment fund | investment | 2 | |
Consolidated VIEs | Leasing Investments | ||
Consolidated Assets | ||
Loans held for investment, net | $ 622 | 641 |
Other assets | 173 | 174 |
Total assets | 795 | 815 |
Consolidated Liabilities | ||
Other liabilities | 54 | 54 |
Total Liabilities | $ 54 | $ 54 |
Variable Interest Entities (D60
Variable Interest Entities (Details 2) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Unconsolidated Assets | |||
Interest bearing deposits in banks | $ 3,091 | $ 3,844 | |
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged) | 14,925 | 14,141 | |
Other Assets | 8,927 | 8,496 | |
Unconsolidated Liabilities | |||
Other liabilities | 2,383 | 2,520 | |
Unconsolidated VIEs | |||
Unconsolidated Assets | |||
Interest bearing deposits in banks | 1 | 1 | |
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged) | 37 | 37 | |
Loans Held for Investment | 251 | 239 | |
Other Assets | 2,835 | 2,941 | |
Total Assets | 3,124 | 3,218 | |
Unconsolidated Liabilities | |||
Other liabilities | 454 | 447 | |
Total Liabilities | 454 | 447 | |
Maximum Exposure to Loss | 3,171 | 3,271 | |
Unconsolidated VIEs | LIHC investments | |||
Variable Interest Entities | |||
Liabilities Assumed | 19 | $ 37 | |
Unconsolidated Assets | |||
Interest bearing deposits in banks | 0 | 0 | |
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged) | 25 | 25 | |
Loans Held for Investment | 199 | 168 | |
Other Assets | 1,148 | 1,164 | |
Total Assets | 1,372 | 1,357 | |
Unconsolidated Liabilities | |||
Other liabilities | 388 | 381 | |
Total Liabilities | 388 | 381 | |
Maximum Exposure to Loss | 1,372 | 1,357 | |
Unconsolidated VIEs | Leasing Investments | |||
Unconsolidated Assets | |||
Interest bearing deposits in banks | 1 | 1 | |
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged) | 12 | 12 | |
Loans Held for Investment | 28 | 47 | |
Other Assets | 1,662 | 1,751 | |
Total Assets | 1,703 | 1,811 | |
Unconsolidated Liabilities | |||
Other liabilities | 66 | 66 | |
Total Liabilities | 66 | 66 | |
Maximum Exposure to Loss | 1,723 | 1,833 | |
Unconsolidated VIEs | Other investments | |||
Unconsolidated Assets | |||
Interest bearing deposits in banks | 0 | 0 | |
Securities available for sale (includes $173 at March 31, 2017 and $148 at December 31, 2016 pledged as collateral that may be repledged) | 0 | 0 | |
Loans Held for Investment | 24 | 24 | |
Other Assets | 25 | 26 | |
Total Assets | 49 | 50 | |
Unconsolidated Liabilities | |||
Other liabilities | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Maximum Exposure to Loss | $ 76 | $ 81 |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Non Interest Expenses | ||
Noncontrolling Interest [Line Items] | ||
Income (loss) from LIHC Investments | $ 2 | $ 2 |
Income Tax Expense | ||
Noncontrolling Interest [Line Items] | ||
Amortization of LIHC investments | 33 | 30 |
Tax credits and other tax benefits from LIHC | $ 45 | $ 45 |
Securities Financing Arrangem62
Securities Financing Arrangements (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative assets | ||
Gross Amounts of Recognized Assets/Liabilities | $ 1,502 | $ 1,626 |
Gross Amounts Offset in Balance Sheet | 787 | 770 |
Net Amounts Presented in Balance Sheet | 715 | 856 |
Gross Amounts Not Offset In Balance Sheet, Financial Instruments | 44 | 20 |
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged | 2 | 0 |
Net Amount | 669 | 836 |
Securities borrowed or purchased under resale agreements | ||
Gross Amounts of Recognized Assets/Liabilities | 31,147 | 31,386 |
Gross Amounts Offset in Balance Sheet | 11,155 | 11,639 |
Net Amounts Presented in Balance Sheet | 19,992 | 19,747 |
Securities Purchased under Agreements to Resell, Collateral, Obligation to Return Securities | 19,896 | 19,657 |
Securities Purchased under Agreements to Resell, Collateral, Obligation to Return Cash | 0 | 0 |
Net Amount | 96 | 90 |
Total Financial Assets | ||
Gross Amounts of Recognized Assets/Liabilities | 32,649 | 33,012 |
Gross Amounts Offset in Balance Sheet | 11,942 | 12,409 |
Net Amounts Presented in Balance Sheet | 20,707 | 20,603 |
Gross Amounts Not Offset In Balance Sheet, Financial Instruments | 19,940 | 19,677 |
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged | 2 | 0 |
Net Amount | 765 | 926 |
Derivative liabilities | ||
Gross Amounts of Recognized Assets/Liabilities | 1,533 | 1,684 |
Gross Amounts Offset in Balance Sheet | 968 | 1,047 |
Net Amounts Presented in Balance Sheet | 565 | 637 |
Gross Amount Not Offset in Balance Sheet, Financial Instruments | 170 | 176 |
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged | 0 | 5 |
Net Amount | 395 | 456 |
Securities loaned or sold under repurchase agreements | ||
Securities sold under agreements to repurchase | 36,235 | 36,255 |
Securities Sold under Agreements to Repurchase, Asset | 11,156 | 11,639 |
Net Amounts Presented in Balance Sheet | 25,079 | 24,616 |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | 24,470 | 23,812 |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | 0 | 0 |
Net Amount | 609 | 804 |
Total Financial Liabilities | ||
Gross Amounts of Recognized Assets/Liabilities | 37,768 | 37,939 |
Gross Amounts Offset in Balance Sheet | 12,124 | 12,686 |
Net Amounts Presented in Balance Sheet | 25,644 | 25,253 |
Gross Amount Not Offset in Balance Sheet, Financial Instruments | 24,640 | 23,988 |
Gross Amounts Not Offset in Balance Sheet, Cash Collateral Received/Pledged | 0 | 5 |
Net Amount | $ 1,004 | $ 1,260 |
Securities Financing Arrangem63
Securities Financing Arrangements (Details 2) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 36,235 | $ 36,255 |
Securities loaned | 868 | 661 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 718 | 570 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 51 | 0 |
31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 99 | 91 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities loaned | 0 | 0 |
U.S. Treasury securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 13,584 | 13,970 |
U.S. Treasury securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 10,925 | 11,419 |
U.S. Treasury securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1,886 | 1,523 |
U.S. Treasury securities | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 677 | 712 |
U.S. Treasury securities | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 96 | 316 |
U.S. agency securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 33 | 72 |
U.S. agency securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 30 | 42 |
U.S. agency securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 3 | 30 |
U.S. agency securities | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
U.S. agency securities | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Other sovereign government obligations | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 28 | 16 |
Other sovereign government obligations | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 7 | 0 |
Other sovereign government obligations | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 20 | 0 |
Other sovereign government obligations | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1 | 16 |
Other sovereign government obligations | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Money market securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 72 | |
Money market securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 14 | |
Money market securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 24 | |
Money market securities | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 34 | |
Money market securities | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | |
Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 30 | 101 |
Asset-backed securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1 | 20 |
Asset-backed securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1 | 15 |
Asset-backed securities | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 28 | 66 |
Asset-backed securities | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Mortgage-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 18,457 | 17,992 |
Mortgage-backed securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 9,384 | 8,792 |
Mortgage-backed securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 3,701 | 4,450 |
Mortgage-backed securities | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 5,372 | 4,750 |
Mortgage-backed securities | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Corporate bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 2,234 | 2,114 |
Securities loaned | 8 | |
Corporate bonds | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 379 | 405 |
Securities loaned | 8 | |
Corporate bonds | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 824 | 800 |
Securities loaned | 0 | |
Corporate bonds | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 1,031 | 909 |
Securities loaned | 0 | |
Corporate bonds | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Securities loaned | 0 | |
Municipal securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 354 | 438 |
Municipal securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 157 | 74 |
Municipal securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 54 | 65 |
Municipal securities | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 143 | 299 |
Municipal securities | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Equities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 575 | 891 |
Securities loaned | 868 | 653 |
Equities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 362 | 452 |
Securities loaned | 718 | 562 |
Equities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 49 | 275 |
Securities loaned | 51 | 0 |
Equities | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 164 | 164 |
Securities loaned | 99 | 91 |
Equities | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 0 | 0 |
Securities loaned | 0 | 0 |
Trading Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 35,367 | 35,594 |
Trading Securities | Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 21,259 | 21,204 |
Trading Securities | Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 6,562 | 7,158 |
Trading Securities | 31-90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | 7,450 | 6,916 |
Trading Securities | Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities sold under agreements to repurchase | $ 96 | $ 316 |
Commercial Paper and Other Sh64
Commercial Paper and Other Short-Term Borrowings (Details) ¥ in Billions | 3 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2017JPY (¥) | Dec. 31, 2016USD ($) | |
Short-term Debt [Line Items] | |||
Total commercial paper and other short-term borrowings | $ 3,487,000,000 | $ 2,360,000,000 | |
MUFG Union Bank N.A | |||
Short-term Debt [Line Items] | |||
Total commercial paper and other short-term borrowings | $ 2,291,000,000 | $ 989,000,000 | |
MUFG Union Bank N.A | Federal Funds Purchased | |||
Short-term Debt [Line Items] | |||
Weighted average interest rate at period end | 0.72% | 0.72% | 0.50% |
Federal funds purchased | $ 40,000,000 | $ 26,000,000 | |
MUFG Union Bank N.A | Commercial Paper | |||
Short-term Debt [Line Items] | |||
Weighted average interest rate at period end | 0.71% | 0.71% | 0.55% |
Commercial paper, with a weighted average interest rate of 0.71% and 0.55% at March 31, 2017 and December 31, 2016, respectively | $ 651,000,000 | $ 263,000,000 | |
MUFG Union Bank N.A | Federal Home Loan Bank Advances | |||
Short-term Debt [Line Items] | |||
Weighted average interest rate at period end | 0.62% | 0.62% | 0.59% |
Short-term Bank Loans and Notes Payable | $ 1,600,000,000 | $ 700,000,000 | |
MUFG Americas Holding Corporation | |||
Short-term Debt [Line Items] | |||
Weighted average interest rate at period end | 1.47% | 1.47% | 0.49% |
Short-term Debt Due to Parent | $ 425,000,000 | $ 679,000,000 | |
Total commercial paper and other short-term borrowings | 1,196,000,000 | $ 1,371,000,000 | |
MUFG Americas Holding Corporation | Line of Credit | |||
Short-term Debt [Line Items] | |||
Maximum borrowing capacity | $ 1,400,000,000 | ||
Line of Credit Facility, Extension Period | 100 days | ||
MUFG Americas Holding Corporation | Affiliated Entity | |||
Short-term Debt [Line Items] | |||
Weighted average interest rate at period end | (0.07%) | (0.07%) | (0.04%) |
Short term debt due to affiliates | $ 771,000,000 | ¥ 86 | $ 692,000,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument | |||
Long-term debt | $ 11,333,000,000 | $ 11,333,000,000 | $ 11,410,000,000 |
Parent Company | |||
Debt Instrument | |||
Long-term debt | 6,991,000,000 | 6,991,000,000 | 3,470,000,000 |
Parent Company | Senior Debt Obligations [Member] | Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.61% | 1.61% | 1.46% |
Parent Company | Senior Debt Obligations [Member] | Floating rate senior notes due February 2018. These notes, which bear interest at 0.57% above 3-month LIBOR, had a rate of 1.61% at March 31, 2017 and 1.46% at December 31, 2016 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 0.57% | 0.57% | |
Parent Company | Senior Debt Obligations [Member] | Fixed rate 1.625% notes due February 2018 | |||
Debt Instrument | |||
Long-term debt | $ 449,000,000 | $ 449,000,000 | $ 449,000,000 |
Debt instrument, Fixed interest rate (as a percent) | 1.625% | 1.625% | 1.625% |
Parent Company | Senior Debt Obligations [Member] | Fixed rate 2.25% notes due February 2020 | |||
Debt Instrument | |||
Long-term debt | $ 997,000,000 | $ 997,000,000 | $ 997,000,000 |
Debt instrument, Fixed interest rate (as a percent) | 2.25% | 2.25% | 2.25% |
Parent Company | Senior Debt Obligations [Member] | Fixed rate 3.50% notes due June 2022 | |||
Debt Instrument | |||
Long-term debt | $ 397,000,000 | $ 397,000,000 | $ 397,000,000 |
Debt instrument, Fixed interest rate (as a percent) | 3.50% | 3.50% | 3.50% |
Parent Company | Senior Debt Obligations [Member] | Fixed rate 3.00% notes due February 2025 | |||
Debt Instrument | |||
Long-term debt | $ 496,000,000 | $ 496,000,000 | $ 496,000,000 |
Debt instrument, Fixed interest rate (as a percent) | 3.00% | 3.00% | 3.00% |
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017 | |||
Debt Instrument | |||
Long-term debt | $ 3,500,000,000 | $ 3,500,000,000 | $ 0 |
Proceeds from Issuance of Long-term Debt | $ 3,500,000,000 | ||
Long-term Debt, Weighted Average Interest Rate | 2.00% | 2.00% | |
Prepayment of long term debt | $ 500,000 | ||
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 0.85% | ||
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017 | |||
Debt Instrument | |||
Long-term debt | $ 21,000,000 | $ 21,000,000 | 0 |
Long-term Debt, Weighted Average Interest Rate | 0.76% | 0.76% | |
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due December 2023. This note, which bears interest at 0.76% above 3-month EURIBOR, had a rate of 0.76% at March 31, 2017 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 0.76% | ||
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 545,000,000 | $ 545,000,000 | $ 545,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.99% | 1.99% | 1.82% |
Parent Company | Senior Debt Obligations [Member] | Floating rate debt due March 2020. This note, which bears interest at 0.86% above 3-month LIBOR, had a rate of 1.99% at March 31, 2017 and 1.82% at December 31, 2016 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 0.86% | 0.86% | |
Parent Company | Subordinated Debt | Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 |
Long-term Debt, Weighted Average Interest Rate | 2.53% | 2.53% | 2.38% |
Parent Company | Subordinated Debt | Floating rate subordinated debt due December 2023. This note, which bears interest at 1.38% above 3-month LIBOR, had a rate of 2.53% at March 31, 2017 and 2.38% at December 31, 2016 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 1.38% | 1.38% | |
Parent Company | Junior subordinated debt payable to trusts | Floating rate note due September 2036. This note had an interest rate of 2.83% at March 31, 2017 and 2.66% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 36,000,000 | $ 36,000,000 | $ 36,000,000 |
Long-term Debt, Weighted Average Interest Rate | 2.83% | 2.83% | 2.66% |
MUFG Union Bank N.A | |||
Debt Instrument | |||
Long-term debt | $ 3,060,000,000 | $ 3,060,000,000 | $ 6,557,000,000 |
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.43% | 1.43% | 1.28% |
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate notes due May 2017. These notes, which bear interest at 0.40% above 3-month LIBOR, had a rate of 1.43% at March 31, 2017 and 1.28% at December 31, 2016 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 0.40% | 0.40% | |
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Fixed rate 2.125% notes due June 2017 | |||
Debt Instrument | |||
Long-term debt | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 |
Debt instrument, Fixed interest rate (as a percent) | 2.125% | 2.125% | 2.125% |
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Fixed rate 2.625% notes due September 2018 | |||
Debt Instrument | |||
Long-term debt | $ 999,000,000 | $ 999,000,000 | $ 999,000,000 |
Debt instrument, Fixed interest rate (as a percent) | 2.625% | 2.625% | 2.625% |
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Fixed rate 2.250% notes due May 2019 | |||
Debt Instrument | |||
Long-term debt | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 |
Debt instrument, Fixed interest rate (as a percent) | 2.25% | 2.25% | 2.25% |
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 0 | $ 0 | $ 1,000,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.47% | ||
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 0.85% above 1-month LIBOR, had a rate of 1.47% at December 31, 2016 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 0.85% | 0.85% | |
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | 0 | $ 0 | $ 1,500,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.49% | ||
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 0.87% above 1-month LIBOR, had a rate of 1.49% at December 31, 2016 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 0.87% | 0.87% | |
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | 0 | $ 0 | $ 1,000,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.65% | ||
MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due January 2018. This note, which bears interest at 1.03% above 1-month LIBOR, had a rate of 1.65% at December 31, 2016 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 1.03% | 1.03% | |
MUFG Union Bank N.A | Subordinated Debt | Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 |
Long-term Debt, Weighted Average Interest Rate | 2.35% | 2.35% | 2.20% |
MUFG Union Bank N.A | Subordinated Debt | Floating rate subordinated debt due June 2023. This note, which bears interest at 1.20% above 3-month LIBOR, had a rate of 2.35% at March 31, 2017 and 2.20% at December 31, 2016 | London Interbank Offered Rate LIBOR | |||
Debt Instrument | |||
Interest rate above variable interest rate (as a percent) | 1.20% | 1.20% | |
MUFG Union Bank N.A | Other debt securities, Other | |||
Debt Instrument | |||
Long-term debt | $ 61,000,000 | $ 61,000,000 | $ 58,000,000 |
Other Subsidiaries, Excluding MUFG Bank, NA | |||
Debt Instrument | |||
Long-term debt | 1,282,000,000 | 1,282,000,000 | 1,383,000,000 |
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various floating rate borrowings due between November 2020 and April 2021. These notes, which bear interest above 3-month LIBOR had a weighted-average interest rate of 1.15% at March 31, 2017 and 0.99% at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.15% | 1.15% | 0.99% |
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 288,000,000 | $ 288,000,000 | $ 384,000,000 |
Long-term Debt, Weighted Average Interest Rate | 2.10% | 2.10% | 2.15% |
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016 | Minimum | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 1.71% | 1.71% | 1.71% |
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various fixed rate borrowings due between September 2019 and May 2023 with a weighted-average interest rate of 2.10% (between 1.71% and 2.44%) at March 31, 2017 and 2.15% (between 1.71% and 2.44%) at December 31, 2016 | Maximum | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 2.44% | 2.44% | 2.44% |
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016 | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 2.68% | 2.68% | 2.68% |
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016 | Minimum | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 2.61% | 2.61% | 2.61% |
Other Subsidiaries, Excluding MUFG Bank, NA | Senior Debt Obligations [Member] | Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016 | Maximum | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 2.77% | 2.77% | 2.77% |
Other Subsidiaries, Excluding MUFG Bank, NA | Subordinated Debt | Various floating rate borrowings due between March 2018 and March 2019. These notes, which bear interest above 6-month LIBOR had a weighted-average interest rate of 2.68% (between 2.61% and 2.77%) at March 31, 2017 and 2.68% (between 2.61% and 2.77%) at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 185,000,000 | $ 185,000,000 | $ 185,000,000 |
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 127,000,000 | $ 127,000,000 | $ 127,000,000 |
Long-term Debt, Weighted Average Interest Rate | 2.04% | 2.04% | 1.67% |
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016 | Minimum | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 1.23% | 1.23% | 0.25% |
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due to BTMU between June 2017 and December 2021. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 2.04% (between 1.23% and 2.91%) at March 31, 2017 and 1.67% (between 0.25% and 2.41%) at December 31, 2016 | Maximum | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 2.91% | 2.91% | 2.41% |
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Fixed rate nonrecourse borrowings due December 2026 which had an interest rate of 5.34% at March 31, 2017 and December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 38,000,000 | $ 38,000,000 | $ 39,000,000 |
Long-term Debt, Weighted Average Interest Rate | 5.34% | 5.34% | 5.34% |
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016 | |||
Debt Instrument | |||
Long-term debt | $ 394,000,000 | $ 394,000,000 | $ 398,000,000 |
Long-term Debt, Weighted Average Interest Rate | 1.87% | 1.87% | 2.04% |
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016 | Minimum | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 1.23% | 1.23% | 0.85% |
Other Subsidiaries, Excluding MUFG Bank, NA | Secured Debt | Various floating rate nonrecourse borrowings due between July 2017 and May 2019. These notes, which bear interest above 1- or 3-month LIBOR had a weighted-average interest rate of 1.87% (between 1.23% and 2.16%) at March 31, 2017 and 2.04% (between 0.85% and 2.73%) at December 31, 2016 | Maximum | |||
Debt Instrument | |||
Long-term Debt, Weighted Average Interest Rate | 2.16% | 2.16% | 2.73% |
MUFG Americas Holding Corporation | MUFG Union Bank N.A | Senior Debt Obligations [Member] | Floating rate debt due September 2020. This note, which bears interest at 0.85% above 3-month LIBOR, had a rate of 2.00% at March 31, 2017 | |||
Debt Instrument | |||
Repayments of debt | $ 3,500,000,000 |
Fair Value Measurement and Fa66
Fair Value Measurement and Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |||
Fair value measurements | |||||
Trading account assets | $ 8,926 | $ 8,942 | |||
Securities available for sale | 14,920 | ||||
U.S. Treasury securities | |||||
Fair value measurements | |||||
Securities available for sale | 2,813 | ||||
Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | |||||
Fair value measurements | |||||
Securities available for sale | 7,378 | ||||
Residential mortgage-backed securities, Privately issued | |||||
Fair value measurements | |||||
Securities available for sale | 426 | ||||
Collateralized loan obligations | |||||
Fair value measurements | |||||
Securities available for sale | 1,997 | ||||
Other Asset Liability Management Securities | |||||
Fair value measurements | |||||
Securities available for sale | 7 | ||||
Other debt securities, Direct bank purchase bonds | |||||
Fair value measurements | |||||
Securities available for sale | 1,543 | ||||
Other debt securities, Other | |||||
Fair value measurements | |||||
Securities available for sale | 93 | ||||
Fair Value, Measurements, Recurring | |||||
Fair value measurements | |||||
Netting Adjustment | $ (787) | [1] | $ (770) | [2] | |
Percentage of Total | 100.00% | 100.00% | |||
Netting Adjustment | (3.00%) | [1] | (3.00%) | [2] | |
Percentage of Total Company Assets | 15.00% | 15.00% | |||
Netting Adjustment | (1.00%) | [1] | (1.00%) | [2] | |
Netting Adjustment | $ (968) | [1] | $ (1,047) | [2] | |
Percentage of Total | 100.00% | 100.00% | |||
Netting Adjustment | (29.00%) | [1] | (34.00%) | [2] | |
Percentage of Total Company Liabilities | 2.00% | 2.00% | |||
Netting Adjustment | (1.00%) | [1] | (1.00%) | [2] | |
Fair Value, Measurements, Recurring | Interest rate derivative contracts | |||||
Fair value measurements | |||||
Netting Adjustment | $ (361) | [1] | $ (343) | [2] | |
Netting Adjustment | (665) | [1] | (718) | [2] | |
Fair Value, Measurements, Recurring | Commodity derivative contracts | |||||
Fair value measurements | |||||
Netting Adjustment | (124) | [1] | (106) | [2] | |
Netting Adjustment | (55) | [1] | (68) | [2] | |
Fair Value, Measurements, Recurring | Foreign exchange derivative contracts | |||||
Fair value measurements | |||||
Netting Adjustment | (119) | [1] | (138) | [2] | |
Netting Adjustment | (18) | [1] | (33) | [2] | |
Fair Value, Measurements, Recurring | Equity Derivative contracts | |||||
Fair value measurements | |||||
Netting Adjustment | (165) | [1] | (163) | [2] | |
Netting Adjustment | [1] | 0 | |||
Fair Value, Measurements, Recurring | Trading Securities | |||||
Fair value measurements | |||||
Netting Adjustment | (769) | [1] | (750) | [2] | |
Netting Adjustment | (738) | [1] | (819) | [2] | |
Fair Value, Measurements, Recurring | Other Asset Liability Management Securities | |||||
Fair value measurements | |||||
Netting Adjustment | (18) | [1] | (20) | [2] | |
Fair Value, Measurements, Recurring | Interest rate hedging contracts | |||||
Fair value measurements | |||||
Netting Adjustment | (5) | [1] | (20) | [2] | |
Netting Adjustment | (230) | [1] | (199) | [2] | |
Fair Value, Measurements, Recurring | Other derivative contracts | |||||
Fair value measurements | |||||
Netting Adjustment | (13) | [1] | 0 | [2] | |
Netting Adjustment | 0 | [1] | (29) | [2] | |
Fair Value, Measurements, Recurring | Derivative | |||||
Fair value measurements | |||||
Netting Adjustment | (230) | [1] | (228) | [2] | |
Fair Value, Measurements, Recurring | Level 1 | |||||
Fair value measurements | |||||
Trading account assets | 47 | 94 | |||
Securities available for sale | 5 | 5 | |||
Other assets | 0 | ||||
Total assets | $ 52 | $ 99 | |||
Percentage of Total | 0.00% | 0.00% | |||
Percentage of Total Company Assets | 0.00% | 0.00% | |||
Trading account liabilities | $ 46 | $ 49 | |||
Total liabilities | $ 46 | $ 49 | |||
Percentage of Total | 1.00% | 2.00% | |||
Percentage of Total Company Liabilities | 0.00% | 0.00% | |||
Fair Value, Measurements, Recurring | Level 1 | Equities | |||||
Fair value measurements | |||||
Trading account assets | $ 42 | $ 85 | |||
Securities available for sale | 5 | 5 | |||
Trading account liabilities | 42 | 47 | |||
Fair Value, Measurements, Recurring | Level 1 | Interest rate derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 4 | 7 | |||
Trading account liabilities | 3 | 1 | |||
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 1 | 1 | |||
Trading account liabilities | 1 | 1 | |||
Fair Value, Measurements, Recurring | Level 1 | Equity Derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 0 | 1 | |||
Fair Value, Measurements, Recurring | Level 1 | Other derivative contracts | |||||
Fair value measurements | |||||
Other assets | 0 | ||||
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair value measurements | |||||
Trading account assets | 9,476 | 9,430 | |||
Securities available for sale | 13,351 | 12,498 | |||
Other assets | 23 | 24 | |||
Total assets | $ 22,850 | $ 21,952 | |||
Percentage of Total | 96.00% | 95.00% | |||
Percentage of Total Company Assets | 15.00% | 15.00% | |||
Trading account liabilities | $ 3,757 | $ 3,509 | |||
Other liabilities | 230 | 283 | |||
Total liabilities | $ 3,987 | $ 3,792 | |||
Percentage of Total | 119.00% | 123.00% | |||
Percentage of Total Company Liabilities | 3.00% | 3.00% | |||
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities | |||||
Fair value measurements | |||||
Trading account assets | $ 1,902 | $ 1,730 | |||
Securities available for sale | 2,813 | 2,505 | |||
Trading account liabilities | 2,113 | 1,973 | |||
Fair Value, Measurements, Recurring | Level 2 | U.S. government-sponsored agencies | |||||
Fair value measurements | |||||
Trading account assets | 121 | 73 | |||
Fair Value, Measurements, Recurring | Level 2 | State and municipal | |||||
Fair value measurements | |||||
Trading account assets | 8 | 18 | |||
Trading account liabilities | 10 | ||||
Fair Value, Measurements, Recurring | Level 2 | Commercial Paper | |||||
Fair value measurements | |||||
Trading account assets | 75 | 1 | |||
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds | |||||
Fair value measurements | |||||
Trading account assets | 1,273 | 841 | |||
Fair Value, Measurements, Recurring | Level 2 | Corporate Debt Securities | |||||
Fair value measurements | |||||
Trading account liabilities | 474 | 298 | |||
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | |||||
Fair value measurements | |||||
Trading account assets | 183 | 106 | |||
Fair Value, Measurements, Recurring | Level 2 | Mortgage-backed securities | |||||
Fair value measurements | |||||
Trading account assets | 4,582 | 5,221 | |||
Fair Value, Measurements, Recurring | Level 2 | Interest rate derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 984 | 1,065 | |||
Trading account liabilities | 922 | 987 | |||
Fair Value, Measurements, Recurring | Level 2 | Commodity derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 132 | 144 | |||
Trading account liabilities | 104 | 111 | |||
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 185 | 215 | |||
Trading account liabilities | 99 | 129 | |||
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | |||||
Fair value measurements | |||||
Securities available for sale | 7,378 | 6,695 | |||
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities, Privately issued | |||||
Fair value measurements | |||||
Securities available for sale | 426 | 327 | |||
Fair Value, Measurements, Recurring | Level 2 | Privately issued commercial mortgage-backed securities | |||||
Fair value measurements | |||||
Securities available for sale | 663 | 664 | |||
Fair Value, Measurements, Recurring | Level 2 | Collateralized loan obligations | |||||
Fair value measurements | |||||
Securities available for sale | 1,997 | 2,218 | |||
Fair Value, Measurements, Recurring | Level 2 | Other Asset Liability Management Securities | |||||
Fair value measurements | |||||
Securities available for sale | 7 | 7 | |||
Fair Value, Measurements, Recurring | Level 2 | Other debt securities, Other | |||||
Fair value measurements | |||||
Trading account assets | 31 | 16 | |||
Securities available for sale | 67 | 82 | |||
Trading account liabilities | 35 | 11 | |||
Fair Value, Measurements, Recurring | Level 2 | Interest rate hedging contracts | |||||
Fair value measurements | |||||
Other assets | 7 | 22 | |||
Other liabilities | 230 | 199 | |||
Fair Value, Measurements, Recurring | Level 2 | Other derivative contracts | |||||
Fair value measurements | |||||
Other assets | 16 | 2 | |||
Other liabilities | 0 | 84 | |||
Fair Value, Measurements, Recurring | Level 3 | |||||
Fair value measurements | |||||
Trading account assets | 172 | 168 | |||
Securities available for sale | 1,569 | 1,638 | |||
Other assets | 35 | 24 | |||
Total assets | $ 1,776 | $ 1,830 | |||
Percentage of Total | 7.00% | 8.00% | |||
Percentage of Total Company Assets | 1.00% | 1.00% | |||
Trading account liabilities | $ 168 | $ 166 | |||
FDIC clawback liability | 113 | 115 | |||
Other liabilities | 119 | 121 | |||
Total liabilities | $ 287 | $ 287 | |||
Percentage of Total | 9.00% | 9.00% | |||
Percentage of Total Company Liabilities | 0.00% | 0.00% | |||
Fair Value, Measurements, Recurring | Level 3 | Interest rate derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | $ 2 | $ 2 | |||
Fair Value, Measurements, Recurring | Level 3 | Commodity derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 1 | 1 | |||
Trading account liabilities | 0 | 1 | |||
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 1 | 1 | |||
Trading account liabilities | 1 | 1 | |||
Fair Value, Measurements, Recurring | Level 3 | Equity Derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 168 | 164 | |||
Trading account liabilities | 167 | 164 | |||
Fair Value, Measurements, Recurring | Level 3 | Other debt securities, Direct bank purchase bonds | |||||
Fair value measurements | |||||
Securities available for sale | 1,543 | 1,613 | |||
Fair Value, Measurements, Recurring | Level 3 | Other debt securities, Other | |||||
Fair value measurements | |||||
Securities available for sale | 26 | 25 | |||
Fair Value, Measurements, Recurring | Level 3 | Mortgage servicing rights | |||||
Fair value measurements | |||||
Other assets | 34 | 23 | |||
Fair Value, Measurements, Recurring | Level 3 | Other derivative contracts | |||||
Fair value measurements | |||||
Other assets | 1 | 1 | |||
Other liabilities | 6 | 6 | |||
Fair Value, Measurements, Recurring | Fair Value | |||||
Fair value measurements | |||||
Trading account assets | 8,926 | 8,942 | |||
Securities available for sale | 14,925 | 14,141 | |||
Other assets | 40 | 28 | |||
Total assets | 23,891 | 23,111 | |||
Trading account liabilities | 3,233 | 2,905 | |||
FDIC clawback liability | 113 | 115 | |||
Other liabilities | 119 | 176 | |||
Total liabilities | 3,352 | 3,081 | |||
Fair Value, Measurements, Recurring | Fair Value | U.S. Treasury securities | |||||
Fair value measurements | |||||
Trading account assets | 1,902 | 1,730 | |||
Securities available for sale | 2,813 | 2,505 | |||
Trading account liabilities | 2,113 | 1,973 | |||
Fair Value, Measurements, Recurring | Fair Value | U.S. government-sponsored agencies | |||||
Fair value measurements | |||||
Trading account assets | 121 | 73 | |||
Fair Value, Measurements, Recurring | Fair Value | State and municipal | |||||
Fair value measurements | |||||
Trading account assets | 8 | 18 | |||
Trading account liabilities | 10 | ||||
Fair Value, Measurements, Recurring | Fair Value | Commercial Paper | |||||
Fair value measurements | |||||
Trading account assets | 75 | 1 | |||
Fair Value, Measurements, Recurring | Fair Value | Corporate bonds | |||||
Fair value measurements | |||||
Trading account assets | 1,273 | 841 | |||
Fair Value, Measurements, Recurring | Fair Value | Corporate Debt Securities | |||||
Fair value measurements | |||||
Trading account liabilities | 474 | 298 | |||
Fair Value, Measurements, Recurring | Fair Value | Asset-backed securities | |||||
Fair value measurements | |||||
Trading account assets | 183 | 106 | |||
Fair Value, Measurements, Recurring | Fair Value | Mortgage-backed securities | |||||
Fair value measurements | |||||
Trading account assets | 4,582 | 5,221 | |||
Fair Value, Measurements, Recurring | Fair Value | Equities | |||||
Fair value measurements | |||||
Trading account assets | 42 | 85 | |||
Securities available for sale | 5 | 5 | |||
Trading account liabilities | 42 | 47 | |||
Fair Value, Measurements, Recurring | Fair Value | Interest rate derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 629 | 731 | |||
Trading account liabilities | 260 | 270 | |||
Fair Value, Measurements, Recurring | Fair Value | Commodity derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 9 | 39 | |||
Trading account liabilities | 49 | 44 | |||
Fair Value, Measurements, Recurring | Fair Value | Foreign exchange derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 68 | 79 | |||
Trading account liabilities | 83 | 98 | |||
Fair Value, Measurements, Recurring | Fair Value | Equity Derivative contracts | |||||
Fair value measurements | |||||
Trading account assets | 3 | 2 | |||
Trading account liabilities | 167 | 164 | |||
Fair Value, Measurements, Recurring | Fair Value | Residential mortgage-backed securities, U.S. government agency and government-sponsored agencies | |||||
Fair value measurements | |||||
Securities available for sale | 7,378 | 6,695 | |||
Fair Value, Measurements, Recurring | Fair Value | Residential mortgage-backed securities, Privately issued | |||||
Fair value measurements | |||||
Securities available for sale | 426 | 327 | |||
Fair Value, Measurements, Recurring | Fair Value | Privately issued commercial mortgage-backed securities | |||||
Fair value measurements | |||||
Securities available for sale | 663 | 664 | |||
Fair Value, Measurements, Recurring | Fair Value | Collateralized loan obligations | |||||
Fair value measurements | |||||
Securities available for sale | 1,997 | 2,218 | |||
Fair Value, Measurements, Recurring | Fair Value | Other Asset Liability Management Securities | |||||
Fair value measurements | |||||
Securities available for sale | 7 | 7 | |||
Fair Value, Measurements, Recurring | Fair Value | Other debt securities, Direct bank purchase bonds | |||||
Fair value measurements | |||||
Securities available for sale | 1,543 | 1,613 | |||
Fair Value, Measurements, Recurring | Fair Value | Other debt securities, Other | |||||
Fair value measurements | |||||
Trading account assets | 31 | 16 | |||
Securities available for sale | 93 | 107 | |||
Trading account liabilities | 35 | 11 | |||
Fair Value, Measurements, Recurring | Fair Value | Mortgage servicing rights | |||||
Fair value measurements | |||||
Other assets | 34 | 23 | |||
Fair Value, Measurements, Recurring | Fair Value | Interest rate hedging contracts | |||||
Fair value measurements | |||||
Other assets | 2 | 2 | |||
Other liabilities | 0 | ||||
Fair Value, Measurements, Recurring | Fair Value | Other derivative contracts | |||||
Fair value measurements | |||||
Other assets | 4 | 3 | |||
Other liabilities | $ 6 | $ 61 | |||
[1] | Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. | ||||
[2] | Amounts represent the impact of legally enforceable master netting agreements between the same counterparties that allow the Company to net settle all contracts. |
Fair Value Measurement and Fa67
Fair Value Measurement and Fair Value of Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Trading derivatives | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Asset (liability) balance, beginning of period | $ (166) | $ (223) |
Included in income before taxes | (28) | 17 |
Sales | 0 | 0 |
Settlements | 26 | 19 |
Asset (liability) balance, end of period | (168) | (187) |
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period | (28) | 17 |
Other Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Asset (liability) balance, beginning of period | (121) | (114) |
Included in income before taxes | 2 | (2) |
Asset (liability) balance, end of period | (119) | (116) |
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period | 2 | (2) |
Trading derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Asset (liability) balance, beginning of period | 168 | 228 |
Included in income before taxes | 30 | (18) |
Purchases/additions | 0 | 0 |
Settlements | (26) | (21) |
Asset (liability) balance, end of period | 172 | 189 |
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period | 30 | (18) |
Securities Available for Sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Asset (liability) balance, beginning of period | 1,638 | 1,603 |
Included in other comprehensive income | 3 | (2) |
Purchases/additions | 1 | 78 |
Settlements | (73) | (66) |
Asset (liability) balance, end of period | 1,569 | 1,613 |
Other assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Asset (liability) balance, beginning of period | 24 | 1 |
Included in income before taxes | 0 | 1 |
Purchases/additions | 11 | |
Transfers in (out) of level 3 | 0 | 13 |
Asset (liability) balance, end of period | 35 | 15 |
Changes in unrealized gains (losses) included in income before taxes for assets and liabilities still held at end of period | $ 0 | $ 1 |
Fair Value Measurement and Fa68
Fair Value Measurement and Fair Value of Financial Instruments (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Unobservable Input(s) Level 3 | ||
Securities available for sale | $ 14,925 | $ 14,141 |
Other debt securities, Direct bank purchase bonds | ||
Unobservable Input(s) Level 3 | ||
Securities available for sale | $ 1,543 | $ 1,613 |
Other debt securities, Direct bank purchase bonds | Minimum | Return on equity | ||
Unobservable Input(s) Level 3 | ||
Market-required return on capital (as a percent) | 8.00% | |
Probability of default (as a percent) | 0.00% | |
Loss severity (as a percent) | 10.00% | |
Other debt securities, Direct bank purchase bonds | Maximum | Return on equity | ||
Unobservable Input(s) Level 3 | ||
Market-required return on capital (as a percent) | 10.00% | |
Probability of default (as a percent) | 25.00% | |
Loss severity (as a percent) | 60.00% | |
Other debt securities, Direct bank purchase bonds | Weighted Average | Return on equity | ||
Unobservable Input(s) Level 3 | ||
Market-required return on capital (as a percent) | 9.70% | |
Probability of default (as a percent) | 0.30% | |
Loss severity (as a percent) | 28.50% | |
Other debt securities, Direct bank purchase bonds | Level 3 | ||
Unobservable Input(s) Level 3 | ||
Securities available for sale | $ 1,543 |
Fair Value Measurement and Fa69
Fair Value Measurement and Fair Value of Financial Instruments (Details 4) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loans: | |||
Impaired loans | $ 1,010 | $ 1,022 | |
Loss Impaired loans | (16) | $ (127) | |
Computer Software, Impairments | (3) | ||
Impairment of Premises and Equipment | (4) | ||
Other assets: | |||
Impairment of Loans Held for Sale | (2) | (3) | |
Gain (Loss) on Energy Investments | 2 | ||
Loss on OREO | (1) | ||
Loss on Private equity investments | (12) | ||
Impairment of Intangible Assets, Finite-lived | (1) | ||
Loss, Total | (19) | (148) | |
Fair Value Measurements, Nonrecurring | |||
Loans: | |||
Impaired loans | 139 | 375 | |
Property, Plant, and Equipment, Fair Value Disclosure | 0 | ||
Other assets: | |||
Loans Held-for-sale, Fair Value Disclosure | 15 | 5 | |
Renewable energy investment | 9 | ||
OREO | 2 | ||
Private Equity Investments | 10 | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | ||
Total | 163 | 392 | |
Fair Value Measurements, Nonrecurring | Level 3 | |||
Loans: | |||
Impaired loans | 139 | 375 | |
Capitalized Computer Software, Gross | 0 | ||
Property, Plant, and Equipment, Fair Value Disclosure | 0 | ||
Other assets: | |||
Loans Held-for-sale, Fair Value Disclosure | 15 | 5 | |
Renewable energy investment | 9 | ||
OREO | 2 | ||
Private Equity Investments | 10 | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 0 | ||
Total | $ 163 | $ 392 |
Fair Value Measurement and Fa70
Fair Value Measurement and Fair Value of Financial Instruments (Details 5) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | $ 19,992 | $ 19,747 | |
Fair value of securities held to maturity | 10,348 | 10,316 | |
Liabilities | |||
Securities loaned or sold under repurchase agreements | 25,079 | 24,616 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 4,827 | 5,753 | |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 0 | 0 | |
Fair value of securities held to maturity | 0 | 0 | |
Loans held for investment, net of allowance for loan losses | 0 | 0 | |
Liabilities | |||
Deposits | 0 | 0 | |
Commercial paper and other short-term borrowings | 0 | 0 | |
Securities loaned or sold under repurchase agreements | 0 | 0 | |
Long-term debt | 0 | 0 | |
Off-Balance Sheet Instruments | |||
Commitments to extend credit and standby and commercial letters of credit | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 19,992 | 19,747 | |
Fair value of securities held to maturity | 10,348 | 10,316 | |
Loans held for investment, net of allowance for loan losses | 0 | 0 | |
Liabilities | |||
Deposits | 86,519 | 86,930 | |
Commercial paper and other short-term borrowings | 3,487 | 2,360 | |
Securities loaned or sold under repurchase agreements | 25,079 | 24,616 | |
Long-term debt | 11,348 | 11,411 | |
Off-Balance Sheet Instruments | |||
Commitments to extend credit and standby and commercial letters of credit | 0 | 0 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 0 | 0 | |
Fair value of securities held to maturity | 0 | 0 | |
Loans held for investment, net of allowance for loan losses | [1] | 77,234 | 76,257 |
Liabilities | |||
Deposits | 0 | 0 | |
Commercial paper and other short-term borrowings | 0 | 0 | |
Securities loaned or sold under repurchase agreements | 0 | 0 | |
Long-term debt | 0 | 0 | |
Off-Balance Sheet Instruments | |||
Commitments to extend credit and standby and commercial letters of credit | 202 | 221 | |
Carrying Amount | |||
Assets | |||
Cash and cash equivalents | 4,827 | 5,753 | |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 19,992 | 19,747 | |
Fair value of securities held to maturity | 10,374 | 10,337 | |
Loans held for investment, net of allowance for loan losses | [1] | 76,105 | 75,112 |
Liabilities | |||
Deposits | 86,533 | 86,947 | |
Commercial paper and other short-term borrowings | 3,487 | 2,360 | |
Securities loaned or sold under repurchase agreements | 25,079 | 24,616 | |
Long-term debt | 11,333 | 11,410 | |
Off-Balance Sheet Instruments | |||
Commitments to extend credit and standby and commercial letters of credit | 202 | 221 | |
Fair Value | |||
Assets | |||
Cash and cash equivalents | 4,827 | 5,753 | |
Federal Funds Sold and Securities Borrowed or Purchased under Agreements to Resell, Fair Value Disclosure | 19,992 | 19,747 | |
Fair value of securities held to maturity | 10,348 | 10,316 | |
Loans held for investment, net of allowance for loan losses | [1] | 77,234 | 76,257 |
Liabilities | |||
Deposits | 86,519 | 86,930 | |
Commercial paper and other short-term borrowings | 3,487 | 2,360 | |
Securities loaned or sold under repurchase agreements | 25,079 | 24,616 | |
Long-term debt | 11,348 | 11,411 | |
Off-Balance Sheet Instruments | |||
Commitments to extend credit and standby and commercial letters of credit | $ 202 | $ 221 | |
[1] | Excludes lease financing. The carrying amount is net of the allowance for loan and lease losses. |
Derivative Instruments and Ot71
Derivative Instruments and Other Financial Instruments Used For Hedging (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | $ 170,705 | $ 177,428 | |
Gross Amounts of Recognized Assets/Liabilities | 1,502 | 1,626 | |
Gross Amounts of Recognized Assets/Liabilities | 1,533 | 1,684 | |
Not designated as hedging instruments | Trading derivatives | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 155,958 | 160,424 | |
Gross Amounts of Recognized Assets/Liabilities | 1,478 | 1,601 | |
Gross Amounts of Recognized Assets/Liabilities | 1,297 | 1,395 | |
Not designated as hedging instruments | Other risk management | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 1,003 | 1,045 | |
Gross Amounts of Recognized Assets/Liabilities | 17 | 3 | |
Gross Amounts of Recognized Assets/Liabilities | 6 | 90 | |
Net gains (losses) on derivatives included in other noninterest income | 4 | $ (2) | |
Interest rate derivative contracts | Not designated as hedging instruments | Trading derivatives | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 145,724 | 149,229 | |
Gross Amounts of Recognized Assets/Liabilities | 990 | 1,074 | |
Gross Amounts of Recognized Assets/Liabilities | 925 | 988 | |
Interest rate derivative contracts | Cash Flow Hedges | Designated as Hedging Instrument | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 13,244 | 15,459 | |
Gross Amounts of Recognized Assets/Liabilities | 6 | 19 | |
Gross Amounts of Recognized Assets/Liabilities | 230 | 199 | |
Interest rate derivative contracts | Fair value hedges | Designated as Hedging Instrument | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 500 | 500 | |
Gross Amounts of Recognized Assets/Liabilities | 1 | 3 | |
Gross Amounts of Recognized Assets/Liabilities | 0 | 0 | |
Commodity derivative contracts | Not designated as hedging instruments | Trading derivatives | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 2,462 | 2,825 | |
Gross Amounts of Recognized Assets/Liabilities | 133 | 145 | |
Gross Amounts of Recognized Assets/Liabilities | 104 | 112 | |
Foreign exchange derivative contracts | Not designated as hedging instruments | Trading derivatives | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 5,756 | 5,981 | |
Gross Amounts of Recognized Assets/Liabilities | 187 | 217 | |
Gross Amounts of Recognized Assets/Liabilities | 101 | 131 | |
Equity Derivative contracts | Not designated as hedging instruments | Trading derivatives | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 1,995 | 2,385 | |
Gross Amounts of Recognized Assets/Liabilities | 168 | 165 | |
Gross Amounts of Recognized Assets/Liabilities | 167 | 164 | |
Other derivative contracts | Not designated as hedging instruments | Trading derivatives | |||
Derivative Instruments and Other Financial Instruments | |||
Derivative Notional Amount | 21 | $ 4 | |
Gross Amounts of Recognized Assets/Liabilities | 0 | ||
Gross Amounts of Recognized Assets/Liabilities | $ 0 |
Derivative Instruments and Ot72
Derivative Instruments and Other Financial Instruments Used For Hedging (Details 2) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Cash flow hedges | |||
Derivative Notional Amount | $ 170,705 | $ 177,428 | |
Income from accumulated other comprehensive income expected to be reclassified to net interest income | $ 47 | ||
Cash Flow Hedges | |||
Cash flow hedges | |||
Weighted average remaining life of the currently active cash flow hedges | 3 years 10 months 2 days | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (19) | $ 261 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 29 | 42 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 2 | 1 | |
Cash Flow Hedges | Interest rate derivative contracts | |||
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (19) | 261 | |
Cash Flow Hedges | Interest rate derivative contracts | Interest income | |||
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 29 | 42 | |
Cash Flow Hedges | Interest rate derivative contracts | Interest expense | |||
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | |
Cash Flow Hedges | Interest rate derivative contracts | Noninterest expense | |||
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 2 | $ 1 | |
Cash Flow Hedges | Designated as Hedging Instrument | Interest rate derivative contracts | |||
Cash flow hedges | |||
Derivative Notional Amount | 13,244 | $ 15,459 | |
Cash Flow Hedges | Designated as Hedging Instrument | Libor Indexed Loans | Interest rate swap contracts | |||
Cash flow hedges | |||
Derivative Notional Amount | 13,000 | ||
Cash Flow Hedges | Designated as Hedging Instrument | Libor Indexed Short Term Borrowings | Interest rate swap contracts | |||
Cash flow hedges | |||
Derivative Notional Amount | $ 294 |
Derivative Instruments and Ot73
Derivative Instruments and Other Financial Instruments Used For Hedging (Details 3) - Fair value hedges - Interest rate derivative contracts - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Amount and location of net gains and losses | ||
Derivative | $ (2) | $ 7 |
Hedged Item | 1 | (7) |
Hedge Ineffectiveness | (1) | 0 |
Designated as Hedging Instrument | ||
Amount and location of net gains and losses | ||
Derivative | (2) | 7 |
Hedged Item | 1 | (7) |
Hedge Ineffectiveness | $ (1) | $ 0 |
Derivative Instruments and Ot74
Derivative Instruments and Other Financial Instruments Used For Hedging (Details 4) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Trading Derivatives | ||
Trading account activities | $ (4) | $ 28 |
Trading Derivatives | ||
Trading Derivatives | ||
Trading account activities | (12) | 0 |
Trading Derivatives | Interest rate derivative contracts | ||
Trading Derivatives | ||
Trading account activities | (22) | (9) |
Trading Derivatives | Foreign exchange derivative contracts | ||
Trading Derivatives | ||
Trading account activities | $ 10 | $ 9 |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Equity [Abstract] | |||
Unrealized net gains (losses) on hedges arising during the period, before tax | $ (19) | $ 261 | |
Unrealized net gains (losses) on hedges arising during the period, tax | 7 | (103) | |
Unrealized net gains (losses) on hedges arising during the period, net of tax | (12) | 158 | |
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, before tax | (29) | (42) | |
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, tax | 11 | 16 | |
Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt, net of tax | (18) | (26) | |
Net change, before tax | (48) | 219 | |
Net change, tax | 18 | (87) | |
Net change, net of tax | (30) | 132 | |
Unrealized holding gains (losses) arising during the period on securities available for sale, before tax | 56 | 157 | |
Unrealized holding gains (losses) arising during the period on securities available for sale, tax | (23) | (62) | |
Unrealized holding gains (losses) arising during the period on securities available for sale, net of tax | 33 | 95 | |
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, before tax | (2) | (13) | |
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, tax | 1 | 5 | |
Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net, net of tax | (1) | (8) | |
Amortization of net unrealized (gains) losses on held to maturity securities, before tax | 5 | 5 | |
Amortization of net unrealized (gains) losses on held to maturity securities, tax | (2) | (2) | |
Amortization of net unrealized (gains) losses on held to maturity securities, net of tax | 3 | 3 | |
Net change, before tax | 59 | 149 | |
Net change, tax | (24) | (59) | |
Net change, net of tax | 35 | 90 | |
Foreign currency translation adjustment, before tax | 1 | 7 | |
Foreign currency translation adjustment, tax | 0 | (3) | |
Foreign currency translation adjustment, net of tax | 1 | 4 | |
Amortization of prior service credit, before tax | [1] | (12) | (6) |
Amortization of prior service credit, tax | [1] | 5 | 3 |
Amortization of prior service credit, net of tax | [1] | (7) | (3) |
Recognized net actuarial (gain) loss, before tax | [1] | 23 | 22 |
Recognized net actuarial (gain) loss, tax | [1] | (9) | (9) |
Recognized net actuarial (gain) loss, net of tax | [1] | 14 | 13 |
Net change, before tax | 11 | 16 | |
Net change, tax | (4) | (6) | |
Net change, net of tax | 7 | 10 | |
Other, before tax | (2) | ||
Other, tax | 0 | ||
Other, Net of Tax | 0 | (2) | |
Net change in AOCI, before tax | 23 | 389 | |
Net change in AOCI, tax | (10) | (155) | |
Net change in AOCI, net of tax | $ 13 | $ 234 | |
[1] | These amounts are included in the computation of net periodic pension cost. For further information, see Note 11 to these consolidated financial statements.(Dollars in millions) BeforeTaxAmount TaxEffect Net ofTaxFor the Three Months Ended March 31, 2016 Cash flow hedge activities: Unrealized net gains (losses) on hedges arising during the period $261 $(103) $158Reclassification adjustment for net (gains) losses on hedges included in interest income for loans and interest expense on long-term debt (42) 16 (26)Net change 219 (87) 132Securities: Unrealized holding gains (losses) arising during the period on securities available for sale 157 (62) 95Reclassification adjustment for net (gains) losses on securities available for sale included in securities gains, net (13) 5 (8)Amortization of net unrealized (gains) losses on held to maturity securities 5 (2) 3Net change 149 (59) 90Foreign currency translation adjustment 7 (3) 4Pension and other benefits: Amortization of prior service credit (1) (6) 3 (3) Recognized net actuarial (gain) loss(1) 22 (9) 13Net change 16 (6) 10Other (2) — (2)Net change in AOCI $389 $(155) $234 |
Accumulated Other Comprehensi76
Accumulated Other Comprehensive Income (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Change in accumulated other comprehensive loss balances: | ||
Beginning Balance | $ 17,233 | |
Ending Balance | 17,484 | |
Net Unrealized Gains (Losses) on Cash Flow Hedges | ||
Change in accumulated other comprehensive loss balances: | ||
Beginning Balance | (77) | $ 38 |
Other comprehensive income (loss) before reclassifications | (12) | 158 |
Amounts reclassified from AOCI | (18) | (26) |
Ending Balance | (107) | 170 |
Net Unrealized Gains (Losses) on Securities | ||
Change in accumulated other comprehensive loss balances: | ||
Beginning Balance | (208) | (152) |
Other comprehensive income (loss) before reclassifications | 36 | 98 |
Amounts reclassified from AOCI | (1) | (8) |
Ending Balance | (173) | (62) |
Foreign Currency Translation Adjustment | ||
Change in accumulated other comprehensive loss balances: | ||
Beginning Balance | (22) | (24) |
Other comprehensive income (loss) before reclassifications | 1 | 4 |
Amounts reclassified from AOCI | 0 | 0 |
Ending Balance | (21) | (20) |
Pension and Other Benefits Adjustment | ||
Change in accumulated other comprehensive loss balances: | ||
Beginning Balance | (589) | (612) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 7 | 10 |
Ending Balance | (582) | (602) |
Accumulated Other | ||
Change in accumulated other comprehensive loss balances: | ||
Beginning Balance | 0 | 0 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | (2) |
Ending Balance | 0 | (2) |
Accumulated Other Comprehensive Loss | ||
Change in accumulated other comprehensive loss balances: | ||
Beginning Balance | (896) | (750) |
Other comprehensive income (loss) before reclassifications | 25 | 260 |
Amounts reclassified from AOCI | (12) | (26) |
Ending Balance | $ (883) | $ (516) |
Employee Pension and Other Po77
Employee Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits | ||
Components of net periodic benefit cost: | ||
Service cost | $ 19 | $ 23 |
Interest cost | 25 | 26 |
Expected return on plan assets | (64) | (60) |
Amortization of prior service cost | (7) | (4) |
Recognized net actuarial loss | 19 | 19 |
Total net periodic benefit cost | (8) | 4 |
Other Postretirement Benefits | ||
Components of net periodic benefit cost: | ||
Service cost | 2 | 2 |
Interest cost | 2 | 3 |
Expected return on plan assets | (5) | (5) |
Amortization of prior service cost | (5) | (2) |
Recognized net actuarial loss | 3 | 2 |
Total net periodic benefit cost | (3) | 0 |
Superannuation, SERP and ESBP | ||
Components of net periodic benefit cost: | ||
Service cost | 0 | 1 |
Interest cost | 1 | 0 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Recognized net actuarial loss | 1 | 1 |
Total net periodic benefit cost | $ 2 | $ 2 |
Commitments, Contingencies an78
Commitments, Contingencies and Guarantees (Details) $ in Millions | Mar. 31, 2017USD ($) |
Commitments to extend credit | |
Commitment, Contingencies and Guarantees disclosures | |
Commitments | $ 30,976 |
Issued standby and commercial letters of credit | |
Commitment, Contingencies and Guarantees disclosures | |
Commitments | 5,770 |
Resale agreements | |
Commitment, Contingencies and Guarantees disclosures | |
Commitments | 502 |
Other commitments | |
Commitment, Contingencies and Guarantees disclosures | |
Commitments | $ 1,605 |
Commitments, Contingencies an79
Commitments, Contingencies and Guarantees (Details 2) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)facility | |
Guarantee disclosures | |
Committed facilities to provide collateralized financing to third parties | facility | 3 |
Collateralized Financings | $ 1,400 |
Financial guarantee | Interest rate swap contracts | |
Guarantee disclosures | |
Current exposure to loss | 13 |
Future exposure to loss | $ 42 |
Issued standby and commercial letters of credit | |
Guarantee disclosures | |
Maximum term | 1 year |
Carrying value | $ 3 |
Affiliated Entity | |
Guarantee disclosures | |
Collateralized Financings | $ 250 |
Business Segments (Details)
Business Segments (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2017USD ($)business_linebranchsegment | |
Business segments | |
Reportable segments | segment | 5 |
Consumer and Business Banking Division | |
Business segments | |
Number of full-service branches | branch | 352 |
Regional Bank | |
Business segments | |
Major business lines | business_line | 5 |
U.S. Wholesale Banking | Minimum | |
Business segments | |
Corporate customers revenues | $ 1 |
Commercial Banking | Regional Bank | |
Business segments | |
Commercial banking customer revenues | $ 1 |
Business Segments (Details 2)
Business Segments (Details 2) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||||
Business segments | ||||||
Net interest income (expense) | [1] | $ 795 | $ 724 | |||
Noninterest income (expense) | [1] | 488 | 474 | |||
Total revenue | [1] | 1,283 | 1,198 | |||
Noninterest expense | [1] | 1,006 | 968 | |||
(Reversal of) provision for credit losses | [1] | (30) | 162 | |||
Income before income taxes and including noncontrolling interests | [1] | 307 | 68 | |||
Income tax expense (benefit) | [1] | 83 | 18 | |||
Net Income Including Noncontrolling Interests | [1] | 224 | 50 | |||
Deduct: net loss from noncontrolling interests | [1] | 5 | 12 | |||
Net Income Attributable to MUAH | [1] | 229 | 62 | |||
Total assets, end of period | 149,678 | [1] | 156,554 | [1] | $ 148,144 | |
Operating segments | Regional Bank | ||||||
Business segments | ||||||
Net interest income (expense) | [1] | 498 | 475 | |||
Noninterest income (expense) | [1] | 112 | 114 | |||
Total revenue | [1] | 610 | 589 | |||
Noninterest expense | [1] | 502 | 441 | |||
(Reversal of) provision for credit losses | [1] | 2 | (2) | |||
Income before income taxes and including noncontrolling interests | [1] | 106 | 150 | |||
Income tax expense (benefit) | [1] | 23 | 42 | |||
Net Income Including Noncontrolling Interests | [1] | 83 | 108 | |||
Net Income Attributable to MUAH | [1] | 83 | 108 | |||
Total assets, end of period | [1] | 63,950 | 62,190 | |||
Operating segments | U.S. Wholesale Banking | ||||||
Business segments | ||||||
Net interest income (expense) | [1] | 87 | 107 | |||
Noninterest income (expense) | [1] | 104 | 29 | |||
Total revenue | [1] | 191 | 136 | |||
Noninterest expense | [1] | 53 | 49 | |||
(Reversal of) provision for credit losses | [1] | 0 | 130 | |||
Income before income taxes and including noncontrolling interests | [1] | 138 | (43) | |||
Income tax expense (benefit) | [1] | 55 | (17) | |||
Net Income Including Noncontrolling Interests | [1] | 83 | (26) | |||
Net Income Attributable to MUAH | [1] | 83 | (26) | |||
Total assets, end of period | [1] | 11,179 | 15,173 | |||
Operating segments | Transaction Banking | ||||||
Business segments | ||||||
Net interest income (expense) | [1] | 137 | 113 | |||
Noninterest income (expense) | [1] | 39 | 46 | |||
Total revenue | [1] | 176 | 159 | |||
Noninterest expense | [1] | 111 | 120 | |||
(Reversal of) provision for credit losses | [1] | 0 | 2 | |||
Income before income taxes and including noncontrolling interests | [1] | 65 | 37 | |||
Income tax expense (benefit) | [1] | 26 | 14 | |||
Net Income Including Noncontrolling Interests | [1] | 39 | 23 | |||
Net Income Attributable to MUAH | [1] | 39 | 23 | |||
Total assets, end of period | [1] | 2,094 | 2,522 | |||
Operating segments | Investment Banking & Markets | ||||||
Business segments | ||||||
Net interest income (expense) | [1] | 42 | 56 | |||
Noninterest income (expense) | [1] | 79 | 47 | |||
Total revenue | [1] | 121 | 103 | |||
Noninterest expense | [1] | 59 | 58 | |||
(Reversal of) provision for credit losses | [1] | (10) | 31 | |||
Income before income taxes and including noncontrolling interests | [1] | 72 | 14 | |||
Income tax expense (benefit) | [1] | (3) | (19) | |||
Net Income Including Noncontrolling Interests | [1] | 75 | 33 | |||
Deduct: net loss from noncontrolling interests | [1] | 1 | ||||
Net Income Attributable to MUAH | [1] | 75 | 34 | |||
Total assets, end of period | [1] | 13,778 | 14,556 | |||
Operating segments | MUSA | ||||||
Business segments | ||||||
Net interest income (expense) | [1] | 59 | 25 | |||
Noninterest income (expense) | [1] | 84 | 71 | |||
Total revenue | [1] | 143 | 96 | |||
Noninterest expense | [1] | 105 | 86 | |||
(Reversal of) provision for credit losses | [1] | 0 | 0 | |||
Income before income taxes and including noncontrolling interests | [1] | 38 | 10 | |||
Income tax expense (benefit) | [1] | 15 | 4 | |||
Net Income Including Noncontrolling Interests | [1] | 23 | 6 | |||
Net Income Attributable to MUAH | [1] | 23 | 6 | |||
Total assets, end of period | [1] | 30,472 | 32,961 | |||
Segment Reconciling Items | ||||||
Business segments | ||||||
Net interest income (expense) | [1] | (28) | (52) | |||
Noninterest income (expense) | [1] | 70 | 167 | |||
Total revenue | [1] | 42 | 115 | |||
Noninterest expense | [1] | 176 | 214 | |||
(Reversal of) provision for credit losses | [1] | (22) | 1 | |||
Income before income taxes and including noncontrolling interests | [1] | (112) | (100) | |||
Income tax expense (benefit) | [1] | (33) | (6) | |||
Net Income Including Noncontrolling Interests | [1] | (79) | (94) | |||
Deduct: net loss from noncontrolling interests | [1] | 5 | 11 | |||
Net Income Attributable to MUAH | [1] | (74) | (83) | |||
Total assets, end of period | [1] | $ 28,205 | $ 29,152 | |||
[1] | The transferred IHC entities are not measured using a "market view" perspective. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 4,827 | $ 8,560 | $ 5,753 | $ 4,807 |
Securities borrowed or purchased under resale agreements | 19,992 | 19,747 | ||
Other assets | 8,927 | 8,496 | ||
Liabilities | ||||
Securities loaned or sold under repurchase agreements | 25,079 | 24,616 | ||
Commercial paper and other short-term borrowings | 3,487 | 2,360 | ||
Other Liabilities | 2,383 | 2,520 | ||
Interest and Dividend Income, Operating [Abstract] | ||||
Securities borrowed or purchased under resale agreements | 63 | 50 | ||
Interest Expense | ||||
Commercial paper and other short-term borrowings | 8 | 3 | ||
Long-term debt | 57 | 73 | ||
Securities loaned or sold under repurchase agreements | 59 | 32 | ||
Noninterest Income | ||||
Fees from affiliates | 219 | 212 | ||
Noninterest Expense | ||||
Other Noninterest Expense | 120 | 129 | ||
Transferred Entities | Affiliated Entity | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 105 | 102 | ||
Securities borrowed or purchased under resale agreements | 2,386 | 2,765 | ||
Other assets | 190 | 161 | ||
Liabilities | ||||
Related Party Deposit Liabilities | 661 | 623 | ||
Securities loaned or sold under repurchase agreements | 597 | 385 | ||
Commercial paper and other short-term borrowings | 1,196 | 1,372 | ||
Long-term debt | 5,966 | 6,042 | ||
Other Liabilities | 124 | $ 63 | ||
Interest and Dividend Income, Operating [Abstract] | ||||
Securities borrowed or purchased under resale agreements | 7 | 6 | ||
Interest Expense | ||||
Commercial paper and other short-term borrowings | 2 | 6 | ||
Long-term debt | 28 | 7 | ||
Securities loaned or sold under repurchase agreements | 1 | 0 | ||
Noninterest Income | ||||
Fees from affiliates | 219 | 212 | ||
Other, net | 2 | 0 | ||
Noninterest Expense | ||||
Other Noninterest Expense | $ 25 | $ 24 |
Related Party Transactions (D83
Related Party Transactions (Details 2) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Derivative notional amount | $ 170,705,000,000 | $ 177,428,000,000 |
Transferred Entities | ||
Related Party Transaction [Line Items] | ||
Derivative notional amount | 1,500,000,000 | 1,600,000,000 |
Accumulated unrealized gain on derivatives | 76,000,000 | 72,000,000 |
Transferred Entities | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Guaranteed balance | 1,000,000 | $ 0 |
Transferred Entities | Unsecured Debt | ||
Related Party Transaction [Line Items] | ||
Maximum borrowing capacity | 1,900,000,000 | |
Transferred Entities | Secured Debt | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Maximum borrowing capacity | $ 475,000,000 |