Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 27, 2021 | |
Document And Entity Information [Abstract] | ||
Document Quarterly Report | true | |
Title of 12(b) Security | Common Stock, $5 par value | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-1998421 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Amendment Flag | false | |
Entity Registrant Name | Comerica Incorporated | |
Entity Central Index Key | 0000028412 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 133,923,650 | |
Entity File Number | 1-10706 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Address, Address Line One | 1717 Main Street, MC 6404 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | (214) | |
Local Phone Number | 462-6831 | |
Document Transition Report | false | |
Trading Symbol | CMA | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and due from banks | $ 1,008 | $ 1,031 | |
Interest-bearing deposits with banks | 15,493 | 14,736 | |
Other short-term investments | 183 | 172 | |
Investment securities available-for-sale | 15,837 | 15,028 | |
Commercial loans | 30,207 | 32,753 | |
Real estate construction loans | 3,172 | 4,082 | |
Commercial mortgage loans | 11,334 | 9,912 | |
Lease financing | 589 | 594 | |
International loans | 1,036 | 926 | |
Residential mortgage loans | 1,807 | 1,830 | |
Consumer loans | 2,083 | 2,194 | |
Total loans | 50,228 | 52,291 | |
Less allowance for loan losses | (652) | (948) | |
Net loans | 49,576 | 51,343 | |
Premises and equipment | 454 | 459 | |
Accrued income and other assets | 5,804 | 5,360 | |
Total assets | 88,355 | 88,129 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Noninterest-bearing deposits | 40,514 | 39,420 | |
Money market and interest-bearing checking deposits | 30,319 | 28,540 | |
Savings deposits | 3,095 | 2,710 | |
Customer certificates of deposit | 2,115 | 2,133 | |
Foreign office time deposits | 23 | 66 | |
Total interest-bearing deposits | 35,552 | 33,449 | |
Total deposits | 76,066 | 72,869 | |
Accrued expenses and other liabilities | 1,504 | 1,482 | |
Medium- and long-term debt | 2,854 | 5,728 | |
Total liabilities | 80,424 | 80,079 | |
Fixed rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share: Authorized - 4,000 shares, Issued - 4,000 shares at 6/30/2021 and 12/31/2020 | 394 | 394 | |
Common stock - $5 par value: Authorized - 325,000,000 shares; Issued - 228,164,824 shares | 1,141 | 1,141 | |
Capital surplus | 2,163 | 2,185 | |
Accumulated other comprehensive (loss) income | (120) | [1] | 64 |
Retained earnings | 10,202 | 9,727 | |
Less cost of common stock in treasury - 94,247,402 shares at 6/30/21 and 88,997,430 shares at 12/31/20 | (5,849) | (5,461) | |
Total shareholders' equity | 7,931 | 8,050 | |
Total liabilities and shareholders' equity | $ 88,355 | $ 88,129 | |
[1] | Balances at beginning of period, net of tax, and changes for the six months ended June 30, 2021 have been recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of the qualified defined benefit pension plan as of January 1, 2021. Refer to Note 1 for further information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, No Par Value | $ 0 | |
Preferred Stock, Shares Authorized | 4,000 | |
Preferred Stock, Shares Issued | 4,000 | |
Common stock, par value | $ 5 | $ 5 |
Common stock, authorized shares | 325,000,000 | 325,000,000 |
Common stock, issued shares | 228,164,824 | 228,164,824 |
Shares in treasury | 94,247,402 | 88,997,430 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||||
INTEREST INCOME | |||||||
Interest and fees on loans | $ 404 | $ 434 | $ 790 | $ 951 | |||
Interest on investment securities | 70 | 74 | 139 | 148 | |||
Interest on short-term investments | 5 | 3 | 9 | 21 | |||
Total interest income | 479 | 511 | 938 | 1,120 | |||
INTEREST EXPENSE | |||||||
Interest on deposits | 5 | 20 | 12 | 76 | |||
Interest on short-term borrowings | 0 | 1 | 0 | 1 | |||
Interest on medium- and long-term debt | [1] | 9 | 19 | 18 | 59 | ||
Total interest expense | 14 | 40 | 30 | 136 | |||
Net interest income | 465 | 471 | 908 | 984 | |||
Provision for credit losses | (135) | 138 | (317) | 549 | |||
Net interest income after provision for credit losses | 600 | 333 | 1,225 | 435 | |||
NONINTEREST INCOME | |||||||
Card fees | 84 | 68 | 155 | 127 | |||
Fiduciary income | 60 | 52 | 113 | 106 | |||
Service charges on deposit accounts | 47 | 42 | 95 | 91 | |||
Commercial lending fees | 27 | 17 | 45 | 34 | |||
Derivative income | 22 | 19 | 52 | 39 | |||
Letter of credit fees | 10 | 9 | 20 | 18 | |||
Bank-owned life insurance | 9 | 9 | 20 | 21 | |||
Brokerage fees | 4 | 5 | 8 | 12 | |||
Net securities gains | 0 | 1 | 0 | 0 | |||
Other noninterest income | 21 | 25 | 46 | 36 | |||
Total noninterest income | 284 | 247 | 554 | 484 | |||
NONINTEREST EXPENSES | |||||||
Salaries and benefits expense | 277 | 249 | 559 | 491 | |||
Outside processing fee expense | 71 | 62 | 135 | 119 | |||
Occupancy expense | 38 | 37 | 77 | 74 | |||
Software expense | 38 | 39 | 77 | 76 | |||
Equipment expense | 13 | 12 | 25 | 24 | |||
Advertising expense | 9 | 8 | 15 | 15 | |||
FDIC insurance expense | 7 | 8 | 13 | 16 | |||
Other noninterest expenses | 10 | 19 | 9 | 36 | |||
Total noninterest expenses | 463 | 434 | [2] | 910 | 851 | [2] | |
Income before income taxes | 421 | 146 | 869 | 68 | |||
Provision for income taxes | 93 | 28 | [2] | 191 | 9 | [2] | |
Net income | 328 | 118 | [2] | 678 | 59 | [2] | |
Less income allocated to participating securities | 2 | 1 | 3 | 1 | |||
Preferred stock dividends | 5 | 0 | 11 | 0 | |||
Net income attributable to common shares | $ 321 | $ 117 | $ 664 | $ 58 | |||
Basic earnings per common share | $ 2.35 | $ 0.85 | $ 4.81 | $ 0.42 | |||
Diluted earnings per common share | $ 2.32 | $ 0.84 | $ 4.76 | $ 0.42 | |||
Comprehensive income | $ 313 | $ 97 | $ 494 | $ 441 | |||
Cash dividends declared on common stock | $ 92 | $ 96 | $ 187 | $ 190 | |||
Cash dividends declared per common share | $ 0.68 | $ 0.68 | $ 1.36 | $ 1.36 | |||
[1] | Includes the effects of hedging. | ||||||
[2] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Nonredeemable Preferred Stock | Common Stock | Capital Surplus | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | |
BALANCE (in shares) at Dec. 31, 2019 | 142.1 | |||||||
BALANCE at Dec. 31, 2019 | $ 7,327 | $ 1,141 | $ 2,174 | $ (316) | $ 9,619 | $ (5,291) | ||
Cumulative effect of change in accounting principle | 13 | 13 | ||||||
Net income | 59 | [1] | 59 | |||||
Other comprehensive income (loss), net of tax | 382 | 382 | ||||||
Cash dividends declared on common stock | (190) | (190) | ||||||
Purchase of common stock | (194) | (194) | ||||||
Purchase of common stock (in shares) | (3.4) | |||||||
Issuance of preferred stock | 395 | $ 395 | ||||||
Net issuance of common stock under employee stock plans | (2) | (13) | (5) | 16 | ||||
Net issuance of common stock under employee stock plans (in shares) | 0.3 | |||||||
Share-based compensation | 12 | 12 | ||||||
BALANCE at Jun. 30, 2020 | 7,802 | 395 | $ 1,141 | 2,173 | 66 | 9,496 | (5,469) | |
BALANCE (in shares) at Jun. 30, 2020 | 139 | |||||||
BALANCE (in shares) at Mar. 31, 2020 | 139 | |||||||
BALANCE at Mar. 31, 2020 | 7,402 | $ 1,141 | 2,168 | 87 | 9,476 | (5,470) | ||
Net income | 118 | [1] | 118 | |||||
Other comprehensive income (loss), net of tax | (21) | (21) | ||||||
Cash dividends declared on common stock | (96) | (96) | ||||||
Purchase of common stock | (1) | (1) | ||||||
Issuance of preferred stock | 395 | 395 | ||||||
Net issuance of common stock under employee stock plans | (1) | 1 | (2) | |||||
Share-based compensation | 4 | 4 | ||||||
BALANCE at Jun. 30, 2020 | 7,802 | 395 | $ 1,141 | 2,173 | 66 | 9,496 | (5,469) | |
BALANCE (in shares) at Jun. 30, 2020 | 139 | |||||||
BALANCE (in shares) at Dec. 31, 2020 | 139.2 | |||||||
BALANCE at Dec. 31, 2020 | 8,050 | 394 | $ 1,141 | 2,185 | 64 | 9,727 | (5,461) | |
Net income | 678 | 678 | ||||||
Other comprehensive income (loss), net of tax | (184) | (184) | ||||||
Cash dividends declared on common stock | (187) | (187) | ||||||
Cash dividends declared on preferred stock | (11) | (11) | ||||||
Purchase of common stock | (453) | (24) | (429) | |||||
Purchase of common stock (in shares) | (5.9) | |||||||
Issuance of preferred stock | 0 | |||||||
Net issuance of common stock under employee stock plans | 9 | (27) | (5) | 41 | ||||
Net issuance of common stock under employee stock plans (in shares) | 0.6 | |||||||
Share-based compensation | 29 | 29 | ||||||
BALANCE at Jun. 30, 2021 | 7,931 | 394 | $ 1,141 | 2,163 | (120) | 10,202 | (5,849) | |
BALANCE (in shares) at Jun. 30, 2021 | 133.9 | |||||||
BALANCE (in shares) at Mar. 31, 2021 | 139.6 | |||||||
BALANCE at Mar. 31, 2021 | 8,152 | 394 | $ 1,141 | 2,183 | (105) | 9,975 | (5,436) | |
Net income | 328 | 328 | ||||||
Other comprehensive income (loss), net of tax | (15) | (15) | ||||||
Cash dividends declared on common stock | (92) | (92) | ||||||
Cash dividends declared on preferred stock | (5) | (5) | ||||||
Purchase of common stock | (450) | (24) | (426) | |||||
Purchase of common stock (in shares) | (5.8) | |||||||
Net issuance of common stock under employee stock plans | 6 | (3) | (4) | 13 | ||||
Net issuance of common stock under employee stock plans (in shares) | 0.1 | |||||||
Share-based compensation | 7 | 7 | ||||||
BALANCE at Jun. 30, 2021 | $ 7,931 | $ 394 | $ 1,141 | $ 2,163 | $ (120) | $ 10,202 | $ (5,849) | |
BALANCE (in shares) at Jun. 30, 2021 | 133.9 | |||||||
[1] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared on stock, per common share | $ 0.68 | $ 0.68 | $ 1.36 | $ 1.36 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
OPERATING ACTIVITIES | |||
Net income | $ 678 | $ 59 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | (317) | 549 | |
Provision (benefit) for deferred income taxes | 69 | (92) | |
Depreciation and amortization | 51 | 55 | |
Net periodic defined benefit credit | (41) | (27) | |
Share-based compensation expense | 29 | 12 | |
Net amortization of securities | 16 | 1 | |
Net change in accrued income receivable | 1 | 43 | |
Net change in accrued expenses payable | 31 | (64) | |
Other, net | (514) | 208 | |
Net cash provided by operating activities | 3 | 744 | |
INVESTING ACTIVITIES | |||
Maturities and redemptions of investments securities available-for-sale | 2,819 | 1,311 | |
Purchases of investment securities available-for-sale | (3,828) | (1,387) | |
Net change in loans | 2,616 | (3,229) | |
Proceeds from sales of foreclosed property | 8 | 1 | |
Net increase in premises and equipment | (35) | (29) | |
Purchases of Federal Home Loan Bank stock | 0 | (51) | |
Redemptions of Federal Home Loan Bank stock | 115 | 30 | |
Proceeds from bank-owned life insurance settlements | 6 | 10 | |
Other, net | (12) | 0 | |
Net cash provided by (used in) investing activities | 1,689 | (3,344) | |
FINANCING ACTIVITIES | |||
Net change in deposits | 2,481 | 10,327 | |
Net change in short-term borrowings | 0 | 681 | |
Maturities and redemptions of medium- and long-term debt | (2,800) | (925) | |
Issuance of preferred stock | 0 | 395 | |
Preferred stock cash dividends paid | (11) | 0 | |
Repurchases of common stock | (459) | (199) | |
Cash dividends paid on common stock | (190) | (191) | |
Issuances of common stock under employee stock plans | 18 | 5 | |
Other, net | 3 | 0 | |
Net cash (used in) provided by financing activities | (958) | 10,093 | |
Net increase in cash and cash equivalents | 734 | 7,493 | |
Cash and cash equivalents at beginning of period | 15,767 | 5,818 | |
Cash and cash equivalents at end of period | 16,501 | 13,311 | |
Interest paid | 30 | 152 | |
Income taxes paid | $ 96 | $ 77 | |
[1] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | BASIS OF PRESENTATION AND ACCOUNTING POLICIES Organization The accompanying unaudited consolidated financial statements were prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation were included. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Certain items in prior periods were reclassified to conform to the current presentation. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report of Comerica Incorporated and Subsidiaries (the Corporation) on Form 10-K for the year ended December 31, 2020. Defined Benefit Pension and Other Postretirement Costs Effective January 1, 2021, the Corporation elected to change the accounting methodology for determining the market-related value of assets (MRVA) for certain classes of assets in the qualified defined benefit pension plan. The MRVA is used to calculate the Corporation's expected return on plan assets, a component of defined pension benefit cost (credit). These classes are currently comprised of the fixed income securities and private placement assets held in the portfolio, utilized by the Corporation to mitigate the impacts to financial results from changes in fair value of the pension liability. Previously, MRVA was measured using a historical five-year average fair value. Under the new methodology, the Corporation calculates MRVA using fair value of plan assets. Although both methods are permitted under U.S. GAAP, the Corporation believes the new policy is preferable for these classes of assets as it results in more timely recognition of the performance of pension assets in the results from operations. The change in accounting methodology is applied retrospectively to all prior periods presented in the consolidated financial statements. The impact of the change to the qualified defined benefit plan on the Corporation's consolidated financial statements is as follows: Consolidated Balance Sheets June 30, 2021 December 31, 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Accumulated other comprehensive (loss) income $ (7) $ 168 $ (104) $ 64 Retained earnings 7 9,623 104 9,727 Consolidated Statements of Comprehensive Income Three Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Other noninterest expenses $ (5) $ 25 $ (6) $ 19 Provision for income taxes $ 1 27 1 28 Net income 4 113 5 118 Earnings per common share: Basic $ 0.03 $ 0.81 $ 0.04 $ 0.85 Diluted $ 0.03 $ 0.80 $ 0.04 $ 0.84 Six Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Other noninterest expenses $ (9) $ 50 $ (14) $ 36 Provision for income taxes 2 6 3 9 Net income 7 48 11 59 Earnings per common share: Basic $ 0.05 $ 0.34 $ 0.08 $ 0.42 Diluted $ 0.05 $ 0.34 $ 0.08 $ 0.42 Consolidated Statements of Cash Flows Six Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Net income $ 7 $ 48 $ 11 $ 59 Provision (benefit) for deferred income taxes 2 (95) 3 (92) Net periodic defined benefit credit (9) (13) (14) (27) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Corporation uses present value techniques and other valuation methods to estimate the fair values of its financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. Investment securities available-for-sale, derivatives, deferred compensation plans and equity securities with readily determinable fair values (primarily money market mutual funds) are recorded at fair value on a recurring basis. Additionally, from time to time, the Corporation may be required to record other assets and liabilities at fair value on a nonrecurring basis, such as impaired loans, other real estate (primarily foreclosed property), nonmarketable equity securities and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve write-downs of individual assets or application of lower of cost or fair value accounting. Refer to Note 1 to the consolidated financial statements in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2020 for further information about the fair value hierarchy, descriptions of the valuation methodologies and key inputs used to measure financial assets and liabilities recorded at fair value, as well as a description of the methods and significant assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. (in millions) Total Level 1 Level 2 Level 3 June 30, 2021 Deferred compensation plan assets $ 112 $ 112 $ — $ — Equity securities 63 63 — — Investment securities available-for-sale: U.S. Treasury and other U.S. government agency securities 3,844 3,844 — — Residential mortgage-backed securities (a) 11,993 — 11,993 — Total investment securities available-for-sale 15,837 3,844 11,993 — Derivative assets: Interest rate contracts 367 — 338 29 Energy contracts 573 — 573 — Foreign exchange contracts 15 — 15 — Total derivative assets 955 — 926 29 Total assets at fair value $ 16,967 $ 4,019 $ 12,919 $ 29 Derivative liabilities: Interest rate contracts $ 67 $ — $ 67 $ — Energy contracts 570 — 570 — Foreign exchange contracts 10 — 10 — Total derivative liabilities 647 — 647 — Deferred compensation plan liabilities 112 112 — — Total liabilities at fair value $ 759 $ 112 $ 647 $ — December 31, 2020 Deferred compensation plan assets $ 107 $ 107 $ — $ — Equity securities 60 60 — — Investment securities available-for-sale: U.S. Treasury and other U.S. government agency securities 4,658 4,658 — — Residential mortgage-backed securities (a) 10,370 — 10,370 — Total investment securities available-for-sale 15,028 4,658 10,370 — Derivative assets: Interest rate contracts 531 — 492 39 Energy contracts 151 — 151 — Foreign exchange contracts 18 — 18 — Total derivative assets 700 — 661 39 Total assets at fair value $ 15,895 $ 4,825 $ 11,031 $ 39 Derivative liabilities: Interest rate contracts $ 61 $ — $ 61 $ — Energy contracts 149 — 149 — Foreign exchange contracts 19 — 19 — Total derivative liabilities 229 — 229 — Deferred compensation plan liabilities 107 107 — — Total liabilities at fair value $ 336 $ 107 $ 229 $ — (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. There were no transfers of assets or liabilities recorded at fair value on a recurring basis into or out of Level 3 fair value measurements during each of the three- and six-month periods ended June 30, 2021 and 2020. The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three- and six-month periods ended June 30, 2021 and 2020. Net Realized/Unrealized Gains (Losses) (Pretax) Recorded in Earnings (a) Balance at Beginning of Period Balance at End of Period Sales (in millions) Realized Unrealized Three Months Ended June 30, 2021 Derivative assets: Interest rate contracts $ 24 $ — $ 5 $ — $ 29 Three Months Ended June 30, 2020 Derivative assets: Interest rate contracts $ 43 $ — $ 1 $ — $ 44 Six Months Ended June 30, 2021 Derivative assets: Interest rate contracts $ 39 $ — $ (10) $ — $ 29 Six Months Ended June 30, 2020 Derivative assets: Interest rate contracts $ 22 $ — $ 22 $ — $ 44 (a) Realized and unrealized gains and losses due to changes in fair value are recorded in other noninterest income on the Consolidated Statements of Comprehensive Income. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Corporation may be required to record certain assets and liabilities at fair value on a nonrecurring basis. These include assets that are recorded at the lower of cost or fair value, and were recognized at fair value since it was less than cost at the end of the period. The following table presents assets recorded at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020. No liabilities were recorded at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020. (in millions) Level 3 June 30, 2021 Loans: Commercial $ 114 Real estate construction 3 Commercial mortgage 14 Total assets at fair value $ 131 December 31, 2020 Loans: Commercial $ 134 Commercial mortgage 16 Total assets at fair value $ 150 Level 3 assets recorded at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020 included both nonaccrual loans and TDRs for which a specific allowance was established based on the fair value of collateral. The unobservable inputs were the additional adjustments applied by management to the appraised values to reflect such factors as non-current appraisals and revisions to estimated time to sell. These adjustments are determined based on qualitative judgments made by management on a case-by-case basis and are not quantifiable inputs, although they are used in the determination of fair value. Estimated Fair Values of Financial Instruments Not Recorded at Fair Value on a Recurring Basis The Corporation typically holds the majority of its financial instruments until maturity and thus does not expect to realize many of the estimated fair value amounts disclosed. The disclosures also do not include estimated fair value amounts for items that are not defined as financial instruments, but which have significant value. These include such items as core deposit intangibles, the future earnings potential of significant customer relationships and the value of trust operations and other fee generating businesses. The Corporation believes the imprecision of an estimate could be significant. The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on the Corporation’s Consolidated Balance Sheets are as follows: Carrying Estimated Fair Value (in millions) Total Level 1 Level 2 Level 3 June 30, 2021 Assets Cash and due from banks $ 1,008 $ 1,008 $ 1,008 $ — $ — Interest-bearing deposits with banks 15,493 15,493 15,493 — — Loans held-for-sale 8 8 — 8 — Total loans, net of allowance for loan losses (a) 49,576 50,187 — — 50,187 Customers’ liability on acceptances outstanding 4 4 4 — — Restricted equity investments 92 92 92 — — Nonmarketable equity securities (b) 6 10 Liabilities Demand deposits (noninterest-bearing) 40,514 40,514 — 40,514 — Interest-bearing deposits 33,437 33,437 — 33,437 — Customer certificates of deposit 2,115 2,114 — 2,114 — Total deposits 76,066 76,065 — 76,065 — Acceptances outstanding 4 4 4 — — Medium- and long-term debt 2,854 2,919 — 2,919 — Credit-related financial instruments (51) (51) — — (51) December 31, 2020 Assets Cash and due from banks $ 1,031 $ 1,031 $ 1,031 $ — $ — Interest-bearing deposits with banks 14,736 14,736 14,736 — — Loans held-for-sale 5 5 — 5 — Total loans, net of allowance for loan losses (a) 51,343 50,601 — — 50,601 Customers’ liability on acceptances outstanding 1 1 1 — — Restricted equity investments 207 207 207 — — Nonmarketable equity securities (b) 5 9 Liabilities Demand deposits (noninterest-bearing) 39,420 39,420 — 39,420 — Interest-bearing deposits 31,316 31,316 — 31,316 — Customer certificates of deposit 2,133 2,133 — 2,133 — Total deposits 72,869 72,869 — 72,869 — Acceptances outstanding 1 1 1 — — Medium- and long-term debt 5,728 5,790 — 5,790 — Credit-related financial instruments (68) (68) — — (68) (a) Included $131 million and $150 million of loans recorded at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020, respectively. (b) Certain investments that are measured at fair value using the net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES A summary of the Corporation’s investment securities follows: (in millions) Amortized Gross Gross Fair Value June 30, 2021 Investment securities available-for-sale: U.S. Treasury and other U.S. government agency securities $ 3,821 $ 44 $ 21 $ 3,844 Residential mortgage-backed securities (a) 11,924 156 87 11,993 Total investment securities available-for-sale $ 15,745 $ 200 $ 108 $ 15,837 December 31, 2020 Investment securities available-for-sale: U.S. Treasury and other U.S. government agency securities $ 4,583 $ 76 $ 1 $ 4,658 Residential mortgage-backed securities (a) 10,169 203 2 10,370 Total investment securities available-for-sale $ 14,752 $ 279 $ 3 $ 15,028 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. A summary of the Corporation’s investment securities in an unrealized loss position as of June 30, 2021 and December 31, 2020 follows: Temporarily Impaired Less than 12 Months 12 Months or more Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2021 U.S. Treasury and other U.S. government agency securities $ 1,830 $ 21 $ — $ — $ 1,830 $ 21 Residential mortgage-backed securities (a) 3,437 81 198 6 3,635 87 Total temporarily impaired securities $ 5,267 $ 102 $ 198 $ 6 $ 5,465 $ 108 December 31, 2020 U.S. Treasury and other U.S. government agency securities $ 1,119 $ 1 $ — $ — $ 1,119 $ 1 Residential mortgage-backed securities (a) 952 2 — — 952 2 Total temporarily impaired securities $ 2,071 $ 3 $ — $ — $ 2,071 $ 3 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. Unrealized losses resulted from changes in market interest rates and liquidity. The Corporation’s portfolio is comprised of securities issued or guaranteed by the U.S. government or government-sponsored enterprises. As such, it is expected that the securities would not be settled at a price less than the amortized cost of the investments. Further, the Corporation does not intend to sell the investments, and it is not more likely than not that it will be required to sell the investments before recovery of amortized costs. At June 30, 2021, the Corporation had 139 securities in an unrealized loss position with no allowance for credit losses, comprised of 19 U.S. Treasury securities and 120 residential mortgage-backed securities. Interest receivable on investment securities totaled $20 million at June 30, 2021 and $18 million at December 31, 2020 and was included in accrued income and other assets on the Consolidated Balance Sheets. Sales, calls and write-downs of investment securities available-for-sale resulted in the following losses recorded in net securities gains on the Consolidated Statements of Comprehensive Income, computed based on the adjusted cost of the specific security. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Securities gains $ — $ 1 $ — $ 1 Securities losses — — — (1) Net securities gains $ — $ 1 $ — $ — The following table summarizes the amortized cost and fair values of debt securities by contractual maturity. Securities with multiple maturity dates are classified in the period of final maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (in millions) June 30, 2021 Amortized Cost Fair Value Contractual maturity Within one year $ 868 $ 876 After one year through five years 3,151 3,179 After five years through ten years 536 551 After ten years 11,190 11,231 Total investment securities $ 15,745 $ 15,837 Included in the contractual maturity distribution in the table above were residential mortgage-backed securities with a total amortized cost of $11.9 billion and a fair value of $12.0 billion. The actual cash flows of mortgage-backed securities may differ as borrowers of the underlying loans may exercise prepayment options. At June 30, 2021, investment securities with a carrying value of $4.0 billion were pledged where permitted or required by law, including $3.2 billion pledged to the Federal Home Loan Bank (FHLB) as collateral for potential future borrowings of approximately $3.1 billion and $830 million to secure $631 million of liabilities, primarily public and other deposits of state and local government agencies as well as derivative instruments. For information on FHLB borrowings, refer to Note 7. |
Credit Quality And Allowance Fo
Credit Quality And Allowance For Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
Credit Quality And Allowance For Credit Losses [Abstract] | |
Credit Quality And Allowance For Credit Losses | CREDIT QUALITY AND ALLOWANCE FOR CREDIT LOSSES The following table presents an aging analysis of the amortized cost basis of loans. Loans Past Due and Still Accruing (in millions) 30-59 60-89 90 Days Total Nonaccrual Current Total June 30, 2021 Business loans: Commercial $ 65 $ 8 $ 4 $ 77 $ 221 $ 29,909 $ 30,207 Real estate construction: Commercial Real Estate business line (b) — — — — — 2,707 2,707 Other business lines (c) — — 4 4 4 457 465 Total real estate construction — — 4 4 4 3,164 3,172 Commercial mortgage: Commercial Real Estate business line (b) 28 — — 28 2 3,530 3,560 Other business lines (c) 23 8 10 41 29 7,704 7,774 Total commercial mortgage 51 8 10 69 31 11,234 11,334 Lease financing 40 — — 40 — 549 589 International — — — — — 1,036 1,036 Total business loans 156 16 18 190 256 45,892 46,338 Retail loans: Residential mortgage 7 6 2 15 41 1,751 1,807 Consumer: Home equity 2 — — 2 14 1,532 1,548 Other consumer 1 7 7 15 — 520 535 Total consumer 3 7 7 17 14 2,052 2,083 Total retail loans 10 13 9 32 55 3,803 3,890 Total loans $ 166 $ 29 $ 27 $ 222 $ 311 $ 49,695 $ 50,228 December 31, 2020 Business loans: Commercial $ 62 $ 115 $ 33 $ 210 $ 252 $ 32,291 $ 32,753 Real estate construction: Commercial Real Estate business line (b) 31 — — 31 — 3,626 3,657 Other business lines (c) 9 — — 9 1 415 425 Total real estate construction 40 — — 40 1 4,041 4,082 Commercial mortgage: Commercial Real Estate business line (b) 51 1 — 52 3 2,218 2,273 Other business lines (c) 48 40 5 93 26 7,520 7,639 Total commercial mortgage 99 41 5 145 29 9,738 9,912 Lease financing 14 — 1 15 1 578 594 International — — — — — 926 926 Total business loans 215 156 39 410 283 47,574 48,267 Retail loans: Residential mortgage 11 4 — 15 47 1,768 1,830 Consumer: Home equity 7 1 — 8 17 1,563 1,588 Other consumer 10 — 6 16 — 590 606 Total consumer 17 1 6 24 17 2,153 2,194 Total retail loans 28 5 6 39 64 3,921 4,024 Total loans $ 243 $ 161 $ 45 $ 449 $ 347 $ 51,495 $ 52,291 (a) Includes $45 million and $141 million of loans with deferred payments not considered past due in accordance with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) at June 30, 2021 and December 31, 2020, respectively. (b) Primarily loans to real estate developers. (c) Primarily loans secured by owner-occupied real estate. The following table presents loans by credit quality indicator (CQI) and vintage year. CQI is based on internal risk ratings assigned to each business loan at the time of approval and subjected to subsequent reviews, generally at least annually, and to pools of retail loans with similar risk characteristics. Vintage year is the year of origination or major modification. June 30, 2021 Vintage Year (in millions) 2021 2020 2019 2018 2017 Prior Revolvers Revolvers Converted to Term Total Business loans: Commercial: Pass (a) $ 3,319 (b) $ 3,819 (b) $ 1,876 $ 1,278 $ 823 $ 969 $ 16,582 $ 14 $ 28,680 Criticized (c) 55 81 205 136 64 160 824 2 1,527 Total commercial 3,374 3,900 2,081 1,414 887 1,129 17,406 16 30,207 Real estate construction Pass (a) 142 728 1,152 557 294 80 149 — 3,102 Criticized (c) — 3 30 17 8 9 3 — 70 Total real estate construction 142 731 1,182 574 302 89 152 — 3,172 Commercial mortgage Pass (a) 1,064 2,088 1,611 1,636 1,206 2,848 474 — 10,927 Criticized (c) 3 48 63 36 32 210 15 — 407 Total commercial mortgage 1,067 2,136 1,674 1,672 1,238 3,058 489 — 11,334 Lease financing Pass (a) 55 100 108 58 46 186 — — 553 Criticized (c) — 2 22 10 1 1 — — 36 Total lease financing 55 102 130 68 47 187 — — 589 International Pass (a) 199 145 143 48 6 54 385 — 980 Criticized (c) 20 14 3 1 4 9 5 — 56 Total international 219 159 146 49 10 63 390 — 1,036 Total business loans 4,857 7,028 5,213 3,777 2,484 4,526 18,437 16 46,338 Retail loans: Residential mortgage Pass (a) 219 636 197 96 131 481 — — 1,760 Criticized (c) 6 1 2 3 7 28 — — 47 Total residential mortgage 225 637 199 99 138 509 — — 1,807 Consumer: Home equity Pass (a) — — — — — 14 1,464 53 1,531 Criticized (c) — — — — — — 11 6 17 Total home equity — — — — — 14 1,475 59 1,548 Other consumer Pass (a) 50 81 18 9 1 34 326 — 519 Criticized (c) — — — 1 — 7 8 — 16 Total other consumer 50 81 18 10 1 41 334 — 535 Total consumer 50 81 18 10 1 55 1,809 59 2,083 Total retail loans 275 718 217 109 139 564 1,809 59 3,890 Total loans $ 5,132 $ 7,746 $ 5,430 $ 3,886 $ 2,623 $ 5,090 $ 20,246 $ 75 $ 50,228 Table continues on the following page. December 31, 2020 Vintage Year 2020 2019 2018 2017 2016 Prior Revolvers Revolvers Converted to Term Total Business loans: Commercial: Pass (a) $ 5,991 (b) $ 2,316 $ 1,563 $ 1,051 $ 429 $ 755 $ 18,416 $ 17 $ 30,538 Criticized (c) 30 281 191 116 64 166 1,365 2 2,215 Total commercial 6,021 2,597 1,754 1,167 493 921 19,781 19 32,753 Real estate construction: Pass (a) 433 1,080 1,244 631 335 141 171 — 4,035 Criticized (c) 3 28 5 8 — 1 2 — 47 Total real estate construction 436 1,108 1,249 639 335 142 173 — 4,082 Commercial mortgage: Pass (a) 2,053 1,559 1,146 1,120 818 2,272 431 — 9,399 Criticized (c) 47 130 42 45 41 193 15 — 513 Total commercial mortgage 2,100 1,689 1,188 1,165 859 2,465 446 — 9,912 Lease financing Pass (a) 109 122 71 50 14 201 — — 567 Criticized (c) 2 17 5 2 1 — — — 27 Total lease financing 111 139 76 52 15 201 — — 594 International Pass (a) 274 161 103 11 3 64 245 — 861 Criticized (c) 13 8 18 4 7 2 13 — 65 Total international 287 169 121 15 10 66 258 — 926 Total business loans 8,955 5,702 4,388 3,038 1,712 3,795 20,658 19 48,267 Retail loans: Residential mortgage Pass (a) 639 230 119 197 196 398 — — 1,779 Criticized (c) 7 2 2 6 2 32 — — 51 Total residential mortgage 646 232 121 203 198 430 — — 1,830 Consumer: Home equity Pass (a) — — — — — 15 1,489 63 1,567 Criticized (c) — — — — — 1 13 7 21 Total home equity — — — — — 16 1,502 70 1,588 Other consumer Pass (a) 113 23 12 2 3 41 404 — 598 Criticized (c) — — 2 — — — 6 — 8 Total other consumer 113 23 14 2 3 41 410 — 606 Total consumer 113 23 14 2 3 57 1,912 70 2,194 Total retail loans 759 255 135 205 201 487 1,912 70 4,024 Total loans $ 9,714 $ 5,957 $ 4,523 $ 3,243 $ 1,913 $ 4,282 $ 22,570 $ 89 $ 52,291 (a) Includes all loans not included in the categories of special mention, substandard or nonaccrual. (b) Includes Small Business Administration Paycheck Protection Program (PPP) loans of $1.0 billion and $1.8 billion in 2021 and 2020, respectively, at June 30, 2021, and PPP loans of $3.5 billion in 2020 at December 31, 2020. (c) Includes loans with an internal rating of special mention, substandard loans for which the accrual of interest has not been discontinued and nonaccrual loans. Special mention loans have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Accruing substandard loans have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans are also distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies on page F-59 in the Corporation's 2020 Annual Report. These categories are generally consistent with the "special mention" and "substandard" categories as defined by regulatory authorities. A minority of nonaccrual loans are consistent with the "doubtful" category. Loan interest receivable totaled $135 million and $141 million at June 30, 2021 and December 31, 2020, respectively, and was included in accrued income and other assets on the Consolidated Balance Sheets. Allowance for Credit Losses The following table details the changes in the allowance for credit losses. 2021 2020 (in millions) Business Loans Retail Loans Total Business Loans Retail Loans Total Three Months Ended June 30 Balance at beginning of period: Allowance for loan losses $ 709 $ 68 $ 777 $ 861 $ 55 $ 916 Allowance for credit losses on lending-related commitments 22 8 30 52 10 62 Allowance for credit losses 731 76 807 913 65 978 Loan charge-offs (7) (1) (8) (56) (1) (57) Recoveries on loans previously charged-off 19 — 19 6 1 7 Net loan charge-offs 12 (1) 11 (50) — (50) Provision for credit losses: Provision for loan losses (132) (4) (136) 132 9 141 Provision for credit losses on lending-related commitments 2 (1) 1 (2) (1) (3) Provision for credit losses (130) (5) (135) 130 8 138 Balance at end of period: Allowance for loan losses 589 63 652 943 64 1,007 Allowance for credit losses on lending-related commitments 24 7 31 50 9 59 Allowance for credit losses $ 613 $ 70 $ 683 $ 993 $ 73 $ 1,066 Six Months Ended June 30 Balance at beginning of period Allowance for loan losses $ 895 $ 53 $ 948 $ 601 $ 36 $ 637 Allowance for credit losses on lending-related commitments 35 9 44 28 3 31 Allowance for credit losses 930 62 992 629 39 668 Cumulative effect of change in accounting principle — — — (42) 25 (17) Loan charge-offs (22) (2) (24) (143) (3) (146) Recoveries on loans previously charged-off 31 1 32 11 1 12 Net loan charge-offs 9 (1) 8 (132) (2) (134) Provision for credit losses: Provision for loan losses (315) 11 (304) 516 5 521 Provision for credit losses on lending-related commitments (11) (2) (13) 22 6 28 Provision for credit losses (326) 9 (317) 538 11 549 Balance at end of period: Allowance for loan losses 589 63 652 943 64 1,007 Allowance for credit losses on lending-related commitments 24 7 31 50 9 59 Allowance for credit losses $ 613 $ 70 $ 683 $ 993 $ 73 $ 1,066 Allowance for loan losses as a percentage of total loans 1.27 % 1.63 % 1.30 % 1.91 % 1.59 % 1.88 % Allowance for loan losses as a percentage of total loans excluding PPP loans 1.35 n/a 1.37 2.07 n/a 2.03 Allowance for credit losses as a percentage of total loans 1.32 1.80 1.36 2.01 1.82 1.99 Allowance for credit losses as a percentage of total loans excluding PPP loans 1.41 n/a 1.44 2.18 n/a 2.15 n/a - not applicable Nonaccrual Loans The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans for the three- and six-month periods ended June 30, 2021 and 2020. (in millions) Nonaccrual Nonaccrual Total June 30, 2021 Business loans: Commercial $ 42 $ 179 $ 221 Real estate construction: Other business lines (a) — 4 4 Commercial mortgage: Commercial Real Estate business line (b) 1 1 2 Other business lines (a) 6 23 29 Total commercial mortgage 7 24 31 Total business loans 49 207 256 Retail loans: Residential mortgage 41 — 41 Consumer: Home equity 14 — 14 Total retail loans 55 — 55 Total nonaccrual loans $ 104 $ 207 $ 311 December 31, 2020 Business loans: Commercial $ 57 $ 195 $ 252 Real estate construction: Other business lines (a) — 1 1 Commercial mortgage: Commercial Real Estate business line (b) 1 2 3 Other business lines (a) 5 21 26 Total commercial mortgage 6 23 29 Lease financing — 1 1 Total business loans 63 220 283 Retail loans: Residential mortgage 47 — 47 Consumer: Home equity 17 — 17 Total retail loans 64 — 64 Total nonaccrual loans $ 127 $ 220 $ 347 (a) Primarily loans secured by owner-occupied real estate. (b) Primarily loans to real estate developers. Foreclosed Properties Foreclosed properties were insignificant at June 30, 2021 compared to $8 million at December 31, 2020. There were no retail loans secured by residential real estate properties in process of foreclosure included in nonaccrual loans at June 30, 2021 and December 31, 2020. Troubled Debt Restructurings The following table details the amortized cost basis at June 30, 2021 and 2020 of loans considered to be TDRs that were restructured during the three- and six-month periods ended June 30, 2021 and 2020, by type of modification. In cases of loans with more than one type of modification, the loans were categorized based on the most significant modification. 2021 2020 Type of Modification (in millions) Interest Rate Reductions Principal Deferrals (a) Three Months Ended June 30, Retail loans: Residential mortgage $ 6 $ — Consumer: Home equity (b) 1 — Total loans $ 7 $ — Six Months Ended June 30, Business loans: Commercial $ — $ 16 Commercial mortgage: Other business lines (c) — 1 Total business loans — 17 Retail loans: Residential mortgage 6 — Consumer: Home equity (b) 1 — Total loans $ 7 $ 17 (a) Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy. (b) Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. (c) Primarily loans secured by owner-occupied real estate. The Corporation charges interest on principal balances outstanding during deferral periods. Additionally, none of the modifications involved forgiveness of principal. There were no commitments to lend additional funds to borrowers whose terms have been modified in TDRs at June 30, 2021 and December 31, 2020. On an ongoing basis, the Corporation monitors the performance of modified loans to their restructured terms. The allowance for loan losses continues to be reassessed on the basis of an individual evaluation of the loan. Loans with terms extended by more than an insignificant time period in accordance with the provisions of the CARES Act, primarily retail loans, were $42 million at June 30, 2021 and not reported as TDRs. |
Derivative And Credit-Related F
Derivative And Credit-Related Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative And Credit-Related Financial Instruments | DERIVATIVE AND CREDIT-RELATED FINANCIAL INSTRUMENTS In the normal course of business, the Corporation enters into various transactions involving derivative and credit-related financial instruments to manage exposure to fluctuations in interest rate, foreign currency and other market risks and to meet the financing needs of customers (customer-initiated derivatives). These financial instruments involve, to varying degrees, elements of market and credit risk. Market and credit risk are included in the determination of fair value. Market risk is the potential loss that may result from movements in interest rates, foreign currency exchange rates or energy commodity prices that cause an unfavorable change in the value of a financial instrument. The Corporation manages this risk by establishing monetary exposure limits and monitoring compliance with those limits. Market risk inherent in interest rate and energy contracts entered into on behalf of customers is mitigated by taking offsetting positions, except in those circumstances when the amount, tenor and/or contract rate level results in negligible economic risk, whereby the cost of purchasing an offsetting contract is not economically justifiable. The Corporation mitigates most of the inherent market risk in foreign exchange contracts entered into on behalf of customers by taking offsetting positions and manages the remainder through individual foreign currency position limits and aggregate value-at-risk limits. These limits are established annually and positions are monitored quarterly. Market risk inherent in derivative instruments held or issued for risk management purposes is typically offset by changes in the fair value of the assets or liabilities being hedged. Credit risk is the possible loss that may occur in the event of nonperformance by the counterparty to a financial instrument. The Corporation attempts to minimize credit risk arising from customer-initiated derivatives by evaluating the creditworthiness of each customer, adhering to the same credit approval process used for traditional lending activities and obtaining collateral as deemed necessary. Derivatives with dealer counterparties are either cleared through a clearinghouse or settled directly with a single counterparty. For derivatives settled directly with dealer counterparties, the Corporation utilizes counterparty risk limits and monitoring procedures as well as master netting arrangements and bilateral collateral agreements to facilitate the management of credit risk. Master netting arrangements effectively reduce credit valuation adjustments by permitting settlement of positive and negative positions and offset cash collateral held with the same counterparty on a net basis. Bilateral collateral agreements require daily exchange of cash or highly rated securities issued by the U.S. Treasury or other U.S. government entities to collateralize amounts due to either party. At June 30, 2021, counterparties with bilateral collateral agreements deposited $17 million of cash with the Corporation to secure the fair value of contracts in an unrealized gain position, and the Corporation had pledged $40 million of marketable investment securities and posted $544 million of cash as collateral for contracts in an unrealized loss position. For those counterparties not covered under bilateral collateral agreements, collateral is obtained, if deemed necessary, based on the results of management’s credit evaluation of the counterparty. Collateral varies, but may include cash, investment securities, accounts receivable, equipment or real estate. Included in the fair value of derivative instruments are credit valuation adjustments reflecting counterparty credit risk. These adjustments are determined by applying a credit spread for the counterparty or the Corporation, as appropriate, to the total expected exposure of the derivative. Derivative Instruments Derivative instruments utilized by the Corporation are negotiated over-the-counter and primarily include swaps, caps and floors, forward contracts and options, each of which may relate to interest rates, energy commodity prices or foreign currency exchange rates. Swaps are agreements in which two parties periodically exchange cash payments based on specified indices applied to a specified notional amount until a stated maturity. Caps and floors are agreements which entitle the buyer to receive cash payments based on the difference between a specified reference rate or price and an agreed strike rate or price, applied to a specified notional amount until a stated maturity. Forward contracts are over-the-counter agreements to buy or sell an asset at a specified future date and price. Options are similar to forward contracts except the purchaser has the right, but not the obligation, to buy or sell the asset during a specified period or at a specified future date. Over-the-counter contracts are tailored to meet the needs of the counterparties involved and, therefore, contain a greater degree of credit risk and liquidity risk than exchange-traded contracts, which have standardized terms and readily available price information. The Corporation reduces exposure to market and liquidity risks from over-the-counter derivative instruments entered into for risk management purposes, and transactions entered into to mitigate the market risk associated with customer-initiated transactions, by taking offsetting positions with investment grade domestic and foreign financial institutions and subjecting counterparties to credit approvals, limits and collateral monitoring procedures similar to those used in making other extensions of credit. In addition, certain derivative contracts executed bilaterally with a dealer counterparty in the over-the-counter market are cleared through a clearinghouse, whereby the clearinghouse becomes the counterparty to the transaction. The following table presents the composition of the Corporation’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and other activities at June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 Fair Value Fair Value (in millions) Notional/ Gross Derivative Assets Gross Derivative Liabilities Notional/ Gross Derivative Assets Gross Derivative Liabilities Risk management purposes Derivatives designated as hedging instruments Interest rate contracts: Swaps - fair value - receive fixed/pay floating $ 2,650 $ — $ — $ 2,650 $ — $ — Swaps - cash flow - receive fixed/pay floating 5,250 — — 5,550 — — Derivatives used as economic hedges Foreign exchange contracts: Spot, forwards and swaps 490 1 — 442 1 4 Total risk management purposes 8,390 1 — 8,642 1 4 Customer-initiated and other activities Interest rate contracts: Caps and floors written 838 — 2 869 — — Caps and floors purchased 838 2 — 869 — — Swaps 20,997 365 65 19,783 531 61 Total interest rate contracts 22,673 367 67 21,521 531 61 Energy contracts: Caps and floors written 728 1 96 503 1 33 Caps and floors purchased 728 96 1 503 33 1 Swaps 3,254 476 473 2,115 117 115 Total energy contracts 4,710 573 570 3,121 151 149 Foreign exchange contracts: Spot, forwards, options and swaps 1,911 14 10 1,901 17 15 Total customer-initiated and other activities 29,294 954 647 26,543 699 225 Total gross derivatives $ 37,684 $ 955 $ 647 $ 35,185 $ 700 $ 229 Amounts offset in the Consolidated Balance Sheets: Netting adjustment - Offsetting derivative assets/liabilities (46) (46) (83) (83) Netting adjustment - Cash collateral received/posted (15) (539) (17) (48) Net derivatives included in the Consolidated Balance Sheets (b) 894 62 600 98 Amounts not offset in the Consolidated Balance Sheets: Marketable securities pledged under bilateral collateral agreements — (39) — (42) Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets $ 894 $ 23 $ 600 $ 56 (a) Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. (b) Net derivative assets are included in accrued income and other assets and net derivative liabilities are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $15 million and $27 million at June 30, 2021 and December 31, 2020, respectively. Risk Management The Corporation's derivative instruments used for managing interest rate risk include cash flow hedging strategies that convert variable-rate loans to fixed rates and fair value hedging strategies that convert fixed-rate long-term debt to variable rates. Interest and fees on loans included $24 million and $19 million of cash flow hedge income for the three-month periods ended June 30, 2021 and 2020, respectively, and $48 million and $22 million for the six-month periods ended June 30, 2021 and 2020, respectively. In the second quarter of 2021, interest rate swap agreements with a notional amount of $300 million outstanding as of December 31, 2020 matured. The following table details the effects of fair value hedging on the Consolidated Statements of Comprehensive Income. Interest on Medium- and Long-Term Debt Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Total interest on medium- and long-term debt (a) $ 9 $ 19 $ 18 $ 59 Fair value hedging relationships: Interest rate contracts: Hedged items 26 28 51 58 Derivatives designated as hedging instruments (17) (12) (34) (18) (a) Includes the effects of hedging. For information on accumulated net gains on cash flow hedges, refer to Note 8. The following table summarizes the expected weighted average remaining maturity of the notional amount of risk management interest rate swaps, the carrying amount of the related hedged items and the weighted average interest rates associated with amounts expected to be received or paid on interest rate swap agreements as of June 30, 2021 and December 31, 2020. Cash flow swaps - receive fixed/pay floating rate on variable-rate loans (dollar amounts in millions) June 30, 2021 December 31, 2020 Derivative notional amount $ 5,250 $ 5,550 Weighted average: Remaining maturity (in years) 1.9 2.3 Receive rate 1.85 % 1.87 % Pay rate (a) 0.09 0.15 (a) Variable rates paid on receive fixed swaps designated as cash flow hedges are based on one-month LIBOR rates in effect at June 30, 2021 and December 31, 2020. Fair value swaps - receive fixed/pay floating rate on medium- and long-term debt (dollar amounts in millions) June 30, 2021 December 31, 2020 Derivative notional amount $ 2,650 $ 2,650 Carrying value of hedged items (a) 2,854 2,928 Weighted average: Remaining maturity (in years) 4.1 4.6 Receive rate 3.68 % 3.68 % Pay rate (b) 1.10 1.16 (a) Included $203 million and $279 million of cumulative hedging adjustments at June 30, 2021 and December 31, 2020, respectively, which included $5 million and $6 million, respectively, of hedging adjustment on a discontinued hedging relationship. (b) Variable rates paid on receive fixed swaps designated as fair value hedges are based on one- and six-month LIBOR rates in effect at June 30, 2021 and December 31, 2020. Customer-Initiated and Other The Corporation enters into derivative transactions at the request of customers and generally takes offsetting positions with dealer counterparties to mitigate the inherent market risk. Income primarily results from the spread between the customer derivative and the offsetting dealer position. For customer-initiated foreign exchange contracts where offsetting positions have not been taken, the Corporation manages the remaining inherent market risk through individual foreign currency position limits and aggregate value-at-risk limits. These limits are established annually and reviewed quarterly. For those customer-initiated derivative contracts which were not offset or where the Corporation holds a position within the limits described above, the Corporation did not recognize any gains or losses for either the three- and six-month periods ended June 30, 2021 or 2020. Fair values of customer-initiated and other derivative instruments represent the net unrealized gains or losses on such contracts and are recorded on the Consolidated Balance Sheets. Changes in fair value are recognized on the Consolidated Statements of Comprehensive Income. The net gains recognized in income on customer-initiated derivative instruments, net of the impact of offsetting positions included in derivative income, were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Interest rate contracts $ 9 $ 8 $ 24 $ 16 Energy contracts 2 2 6 3 Foreign exchange contracts 11 9 22 20 Total derivative income $ 22 $ 19 $ 52 $ 39 Credit-Related Financial Instruments The Corporation issues off-balance sheet financial instruments in connection with commercial and consumer lending activities. The Corporation’s credit risk associated with these instruments is represented by the contractual amounts indicated in the following table. (in millions) June 30, 2021 December 31, 2020 Unused commitments to extend credit: Commercial and other $ 25,676 $ 23,443 Bankcard, revolving check credit and home equity loan commitments 3,394 3,297 Total unused commitments to extend credit $ 29,070 $ 26,740 Standby letters of credit $ 3,433 $ 3,273 Commercial letters of credit 40 30 The Corporation maintains an allowance to cover current expected credit losses inherent in lending-related commitments, including unused commitments to extend credit, letters of credit and financial guarantees. The allowance for credit losses on lending-related commitments, included in accrued expenses and other liabilities on the Consolidated Balance Sheets, was $31 million and $44 million at June 30, 2021 and December 31, 2020, respectively. Unused Commitments to Extend Credit Commitments to extend credit are legally binding agreements to lend to a customer, provided there is no violation of any condition established in the contract. These commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many commitments expire without being drawn upon, the total contractual amount of commitments does not necessarily represent future cash requirements of the Corporation. Commercial and other unused commitments are primarily variable rate commitments. The allowance for credit losses on lending-related commitments included $28 million at June 30, 2021 and $37 million at December 31, 2020 for expected credit losses inherent in the Corporation’s unused commitments to extend credit. Standby and Commercial Letters of Credit Standby letters of credit represent conditional obligations of the Corporation which guarantee the performance of a customer to a third party. Standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Commercial letters of credit are issued to finance foreign or domestic trade transactions. These contracts expire in decreasing amounts through the year 2028. The Corporation may enter into participation arrangements with third parties that effectively reduce the maximum amount of future payments which may be required under standby and commercial letters of credit. There were $3.5 billion standby and commercial letters of credit outstanding at June 30, 2021 and $3.3 billion at December 31, 2020, of which these risk participations covered $144 million and $150 million, respectively. The carrying value of the Corporation’s standby and commercial letters of credit, included in accrued expenses and other liabilities on the Consolidated Balance Sheets, totaled $31 million at June 30, 2021 and consisted of $28 million in deferred fees and $3 million in the allowance for credit losses on lending-related commitments. At December 31, 2020, the comparable amounts were $37 million, $30 million and $7 million, respectively. The following table presents a summary of criticized standby and commercial letters of credit at June 30, 2021 and December 31, 2020. The Corporation's criticized list is generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities. The Corporation manages credit risk through underwriting, periodically reviewing and approving its credit exposures using Board committee approved credit policies and guidelines. (dollar amounts in millions) June 30, 2021 December 31, 2020 Total criticized standby and commercial letters of credit $ 43 $ 73 As a percentage of total outstanding standby and commercial letters of credit 1.2 % 2.2 % Other Credit-Related Financial Instruments The Corporation enters into credit risk participation agreements, under which the Corporation assumes credit exposure associated with a borrower’s performance related to certain interest rate derivative contracts. The Corporation is not a party to the interest rate derivative contracts and only enters into these credit risk participation agreements in instances in which the Corporation is also a party to the related loan participation agreements for such borrowers. The Corporation manages its credit risk on the credit risk participation agreements by monitoring the creditworthiness of the borrowers, which is based on the normal credit review process as if the Corporation had entered into the derivative instruments directly with the borrowers. The notional amount of such credit risk participation agreements reflects the pro-rata share of the derivative instrument, consistent with its share of the related participated loan. As of June 30, 2021 and December 31, 2020, the total notional amount of the credit risk participation agreements was approximately $1.0 billion and $1.1 billion, respectively, and the fair value was $1 million at June 30, 2021 and $3 million at December 31, 2020. The maximum estimated exposure to these agreements, as measured by projecting a maximum value of the guaranteed derivative instruments, assuming 100 percent default by all obligors on the maximum values, was $41 million and $62 million at June 30, 2021 and December 31, 2020, respectively. In the event of default, the lead bank has the ability to liquidate the assets of the borrower, in which case the lead bank would be required to return a percentage of the recouped assets to the participating banks. As of June 30, 2021, the weighted average remaining maturity of outstanding credit risk participation agreements was 4.25 years. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 6 Months Ended |
Jun. 30, 2021 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entities (VIEs) | VARIABLE INTEREST ENTITIES (VIEs) The Corporation evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Corporation is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. The Corporation holds ownership interests in funds in the form of limited partnerships or limited liability companies (LLCs) investing in affordable housing projects that qualify for the low-income housing tax credit (LIHTC). The Corporation also directly invests in limited partnerships and LLCs which invest in community development projects, which generate similar tax credits to investors (other tax credit entities). As an investor, the Corporation obtains income tax credits and deductions from the operating losses of these tax credit entities. These tax credit entities meet the definition of a VIE; however, the Corporation is not the primary beneficiary of the entities, as the general partner or the managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. The Corporation accounts for its interests in LIHTC entities using the proportional amortization method. Ownership interests in other tax credit entities are accounted for under either the cost or equity method. Exposure to loss as a result of the Corporation's involvement in LIHTC entities and other tax credit entities at June 30, 2021 was limited to $452 million and $12 million, respectively. Investment balances, including all legally binding commitments to fund future investments, are included in accrued income and other assets on the Consolidated Balance Sheets. A liability is recognized in accrued expenses and other liabilities on the Consolidated Balance Sheets for all legally binding unfunded commitments to fund tax credit entities ($164 million at June 30, 2021). Amortization and other write-downs of LIHTC investments are presented on a net basis as a component of the provision for income taxes on the Consolidated Statements of Comprehensive Income, while amortization and write-downs of other tax credit investments are recorded in other noninterest income. The income tax credits and deductions are recorded as a reduction of income tax expense and a reduction of federal income taxes payable. The Corporation provided no financial or other support that was not contractually required to any of the above VIEs during the six months ended June 30, 2021 and 2020. The following table summarizes the impact of these tax credit entities on the Corporation’s Consolidated Statements of Comprehensive Income. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Provision for income taxes: Amortization of LIHTC investments $ 18 $ 17 35 34 Low income housing tax credits (17) (16) (33) (32) Other tax benefits related to tax credit entities (4) (3) (8) (7) Total provision for income taxes $ (3) $ (2) $ (6) $ (5) For further information on the Corporation’s consolidation policy, see Note 1 to the consolidated financial statements in the Corporation's 2020 Annual Report. |
Medium- And Long-Term Debt
Medium- And Long-Term Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Medium- And Long-Term Debt | MEDIUM- AND LONG-TERM DEBT Medium- and long-term debt is summarized as follows: (in millions) June 30, 2021 December 31, 2020 Parent company Subordinated notes: 3.80% subordinated notes due 2026 (a) $ 271 $ 280 Medium- and long-term notes: 3.70% notes due 2023 (a) 892 905 4.00% notes due 2029 (a) 607 633 Total medium- and long-term notes 1,499 1,538 Total parent company 1,770 1,818 Subsidiaries Subordinated notes: 4.00% subordinated notes due 2025 (a) 371 380 7.875% subordinated notes due 2026 (a) 198 207 Total subordinated notes 569 587 Medium- and long-term notes: 2.50% notes due 2024 (a) 515 523 Total medium- and long-term notes 515 523 FHLB advances: Floating-rate based on FHLB auction rate due 2026 — 2,800 Total FHLB advances — 2,800 Total subsidiaries 1,084 3,910 Total medium- and long-term debt $ 2,854 $ 5,728 (a) The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate. Subordinated notes with remaining maturities greater than one year qualify as Tier 2 capital. Comerica Bank (the Bank), a wholly-owned subsidiary of the Corporation, is a member of the FHLB, which provides short-and long-term funding to its members through advances collateralized by real estate-related assets. The interest rates on the FHLB advances resets between four and eight weeks, based on the FHLB auction rate. Each note may be prepaid in full, without penalty, at each scheduled reset date. The Bank held no outstanding long-term advances at June 30, 2021. Borrowing capacity is contingent on the amount of collateral available to be pledged to the FHLB. At June 30, 2021, $18.5 billion of real estate-related loans and $3.2 billion of investment securities were pledged to the FHLB as collateral with capacity for potential future borrowings of approximately $11.9 billion. Unamortized debt issuance costs deducted from the carrying amount of medium- and long-term debt totaled $8 million at June 30, 2021 and $10 million at December 31, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME The following table presents a reconciliation of the changes in the components of accumulated other comprehensive (loss) income and details the components of other comprehensive (loss) income for the six months ended June 30, 2021 and 2020, including the amount of income tax (benefit) expense allocated to each component of other comprehensive (loss) income. Six Months Ended June 30, (in millions) 2021 2020 Accumulated net unrealized gains on investment securities: Balance at beginning of period, net of tax $ 211 $ 65 Net unrealized holding (losses) gains arising during the period (184) 286 Less: (Benefit) provision for income taxes (43) 68 Change in net unrealized gains on investment securities, net of tax (141) 218 Balance at end of period, net of tax $ 70 $ 283 Accumulated net gains on cash flow hedges: Balance at beginning of period, net of tax $ 155 $ 34 Net cash flow hedge (losses) gains arising during the period (16) 233 Less: (Benefit) provision for income taxes (4) 56 Change in net cash flow hedge gains arising during the period, net of tax (12) 177 Less: Net cash flow hedge gains included in interest and fees on loans 48 22 Less: Provision for income taxes 11 7 Reclassification adjustment for net cash flow hedge gains included in net income, net of tax 37 15 Change in net cash flow hedge gains, net of tax (49) 162 Balance at end of period, net of tax (a) $ 106 $ 196 Accumulated defined benefit pension and other postretirement plans adjustment: Balance at beginning of period, net of tax (b) $ (302) $ (415) Actuarial loss arising during the period (b) — (6) Less: Benefit for income taxes (b) — (1) Net defined benefit pension and other postretirement plans adjustment arising during the period, net of tax (b) — (5) Amounts recognized in other noninterest expenses: Amortization of actuarial net loss (b) 20 23 Amortization of prior service credit (12) (14) Total amounts recognized in other noninterest expenses (b) 8 9 Less: Provision for income taxes (b) 2 2 Adjustment for amounts recognized as components of net periodic benefit cost during the period, net of tax (b) 6 7 Change in defined benefit pension and other postretirement plans adjustment, net of tax (b) 6 2 Balance at end of period, net of tax (b) $ (296) $ (413) Total accumulated other comprehensive (loss) income at end of period, net of tax (b) $ (120) $ 66 (a) The Corporation expects to reclassify $64 million of gains, net of tax, from accumulated other comprehensive loss to earnings over the next twelve months if interest yield curves and notional amounts remain at June 30, 2021 levels. (b) Balances at beginning of period, net of tax, and changes for the six months ended June 30, 2021 have been recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of the qualified defined benefit pension plan as of January 1, 2021. Refer to Note 1 for further information. |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | NET INCOME PER COMMON SHARE Basic and diluted net income per common share are presented in the following table. Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) 2021 2020 2021 2020 Basic and diluted Net income $ 328 $ 118 $ 678 $ 59 Less: Income allocated to participating securities 2 1 3 1 Preferred stock dividends 5 — 11 — Net income attributable to common shares $ 321 $ 117 $ 664 $ 58 Basic average common shares 136 139 138 140 Basic net income per common share $ 2.35 $ 0.85 $ 4.81 $ 0.42 Basic average common shares 136 139 138 140 Dilutive common stock equivalents: Net effect of the assumed exercise of stock awards 2 — 2 1 Diluted average common shares 138 139 140 141 Diluted net income per common share $ 2.32 $ 0.84 $ 4.76 $ 0.42 The following average shares related to outstanding options to purchase shares of common stock were not included in the computation of diluted net income per common share because the options were anti-dilutive for the period. Three Months Ended June 30, Six Months Ended June 30, (average outstanding options in thousands) 2021 2020 2021 2020 Average outstanding options 443 2,056 446 1,633 Range of exercise prices $79.01 - $95.25 $39.10 - $95.25 $70.18 - $95.25 $39.10 - $95.25 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Net periodic defined benefit cost (credit) is comprised of service cost and other components of net benefit cost (credit). Service cost is included in salaries and benefits expense and other components of net benefit cost (credit) are included in other noninterest expenses on the Consolidated Statements of Comprehensive Income. For further information on the Corporation's employee benefit plans, refer to Note 17 to the consolidated financial statements in the Corporation's 2020 Annual Report. The components of net periodic benefit cost (credit) for the Corporation's qualified pension plan, non-qualified pension plan and postretirement benefit plan are as follows. Qualified Defined Benefit Pension Plan Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 (a) 2021 2020 (a) Service cost $ 9 $ 8 $ 19 $ 16 Other components of net benefit credit: Interest cost 15 17 30 35 Expected return on plan assets (51) (45) (101) (91) Amortization of prior service credit (4) (5) (9) (10) Amortization of net loss 8 10 15 19 Total other components of net benefit credit (32) (23) (65) (47) Net periodic defined benefit credit $ (23) $ (15) $ (46) $ (31) (a) Recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of defined pension benefit credit, effective January 1, 2021. For the three months ended June 30, 2020, expected return on plan assets increased $3 million and amortization of net loss was reduced by $3 million, resulting in an increase of $6 million to total other components of net benefit credit. For the six months ended June 30, 2020, expected return on plan assets increased $6 million and amortization of net loss was reduced by $8 million, resulting in an increase of $14 million to total other components of net benefit credit. Refer to Note 1 for further information. Non-Qualified Defined Benefit Pension Plan Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Service cost $ 1 $ — $ 1 $ 1 Other components of net benefit cost: Interest cost 1 2 3 4 Amortization of prior service credit (2) (2) (3) (4) Amortization of net loss 2 2 5 4 Total other components of net benefit cost 1 2 5 4 Net periodic defined benefit cost $ 2 $ 2 $ 6 $ 5 Postretirement Benefit Plan Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Other components of net benefit credit: Expected return on plan assets $ — $ (1) (1) (1) Net periodic defined benefit credit $ — $ (1) $ (1) $ (1) |
Income Taxes And Tax-Related It
Income Taxes And Tax-Related Items | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes and Tax-Related Items | INCOME TAXES AND TAX-RELATED ITEMS At June 30, 2021, net unrecognized tax benefits were $20 million, compared to $19 million at December 31, 2020. The Corporation anticipates that it is reasonably possible that final settlement of federal and state tax issues will result in a change in net unrecognized tax benefits of $6 million within the next twelve months. Included in accrued expenses and other liabilities on the Consolidated Balance Sheets was a liability for tax-related interest and penalties of $6 million at both June 30, 2021 and December 31, 2020. Net deferred tax liabilities were $10 million at June 30, 2021, compared to $4 million of net deferred tax assets at December 31, 2020. The $14 million decrease resulted from a decrease to deferred tax assets related to the allowance for loan losses and an increase to deferred tax liabilities related to defined benefit plans that was partially offset by decreases to deferred tax liabilities related to unrealized losses on investment securities available-for-sale as well as hedging gains and losses and an increase to deferred tax assets related to defined benefit plan components of OCI. Included in deferred tax assets at both June 30, 2021 and December 31, 2020 were $3 million of state net operating loss carryforwards, which expire between 2021 and 2030. The Corporation believes that it is more likely than not that the benefit from certain of these state net operating loss carryforwards will not be realized and, accordingly, maintained a valuation allowance of $3 million at both June 30, 2021 and December 31, 2020. The determination regarding valuation allowance was based on evidence of loss carryback capacity, projected future reversals of existing taxable temporary differences to absorb the deferred tax assets and assumptions made regarding future events. In the ordinary course of business, the Corporation enters into certain transactions that have tax consequences. From time to time, the Internal Revenue Service (IRS) or other tax jurisdictions may review and/or challenge specific interpretive tax positions taken by the Corporation with respect to those transactions. The Corporation believes its tax returns were filed based upon applicable statutes, regulations and case law in effect at the time of the transactions. The IRS or other tax jurisdictions, an administrative authority or a court, if presented with the transactions, could disagree with the Corporation’s interpretation of the tax law. Based on current knowledge and probability assessment of various potential outcomes, the Corporation believes that current tax reserves are adequate, and the amount of any potential incremental liability arising is not expected to have a material adverse effect on the Corporation’s consolidated financial condition or results of operations. Probabilities and outcomes are reviewed as events unfold, and adjustments to the reserves are made when necessary. |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | CONTINGENT LIABILITIES Legal Proceedings and Regulatory Matters As previously reported in the Corporation's Form 10-K for the year ended December 31, 2020 and Form 10-Q for the period ended March 31, 2021, the Bank appealed a court's decision in Butte Local Development v. Masters Group v. Comerica Bank, for lender liability. On July 6, 2021, the Montana Supreme Court affirmed in part, reversed in part the trial court's judgment in favor of Masters. The court reduced the amount of the award by $8 million. Additionally, in second quarter 2021, the Corporation agreed to a proposed settlement in connection with a class action lawsuit filed in the U.S. District Court in California and a related Trustee claim pending in the U.S. Bankruptcy Court in Delaware. Upon final settlement and court approval, the Corporation expects to be released from any liability for additional litigation or claims. The estimated net impact of this settlement, including the Corporation's insurance coverage, was $15 million and included in other noninterest expenses. The Corporation has accrued the estimated probable loss for these two matters within accrued expenses and other liabilities. The Corporation and certain of its subsidiaries are subject to various other pending or threatened legal proceedings arising out of the normal course of business or operations. The Corporation believes it has meritorious defenses to the claims asserted against it in its other currently outstanding legal proceedings and, with respect to such legal proceedings, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interests of the Corporation and its shareholders. Settlement may result from the Corporation's determination that it may be more prudent financially to settle, rather than litigate, and should not be regarded as an admission of liability. Further, from time to time, the Corporation is also subject to examinations, inquiries and investigations by regulatory authorities in areas including, but not limited to, compliance, risk management and consumer protection, which could lead to administrative or legal proceedings or settlements. Remedies in these proceedings or settlements may include fines, penalties, restitution or alterations in the Corporation's business practices and may result in increased operating expenses or decreased revenues. On at least a quarterly basis, the Corporation assesses its potential liabilities and contingencies in connection with outstanding legal proceedings and regulatory matters utilizing the latest information available. On a case-by-case basis, accruals are established for those legal claims and regulatory matters for which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The actual costs of resolving these claims and regulatory matters may be substantially higher or lower than the amounts accrued. Based on current knowledge, and after consultation with legal counsel, management believes current accruals are adequate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the Corporation’s consolidated financial condition, results of operations or cash flows. For matters where a loss is not probable, the Corporation has not established an accrual. The Corporation believes the estimate of the aggregate range of reasonably possible losses, in excess of established accruals, for all legal proceedings and regulatory matters in which it is involved is from zero to approximately $48 million at June 30, 2021. This estimated aggregate range of reasonably possible losses is based upon currently available information for those legal proceedings and regulatory matters in which the Corporation is involved, taking into account the Corporation’s best estimate of such losses for those legal cases and regulatory matters for which such estimate can be made. For certain legal cases and regulatory matters, the Corporation does not believe that an estimate can currently be made. The Corporation’s estimate involves significant judgment, given the varying stages of the legal proceedings and regulatory matters (including the fact many are currently in preliminary stages), the existence in certain legal proceedings of multiple defendants (including the Corporation) whose share of liability has yet to be determined, the numerous yet-unresolved issues in many of the legal proceedings and regulatory matters (including issues regarding class certification and the scope of many of the claims) and the attendant uncertainty of the various potential outcomes of such legal proceedings and regulatory matters. Accordingly, the Corporation’s estimate will change from time to time, and actual losses may be more or less than the current estimate. In the event of unexpected future developments, it is possible the ultimate resolution of these matters, if unfavorable, may be material to the Corporation's consolidated financial condition, results of operations or cash flows. For information regarding income tax contingencies, refer to Note 11. |
Strategic Lines of Business and
Strategic Lines of Business and Markets | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | STRATEGIC LINES OF BUSINESS AND MARKETS The Corporation has strategically aligned its operations into three major business segments: the Commercial Bank, the Retail Bank and Wealth Management. These business segments are differentiated based on the type of customer and the related products and services provided. In addition to the three major business segments, the Finance Division is also reported as a segment. Business segment results are produced by the Corporation’s internal management accounting system. This system measures financial results based on the internal business unit structure of the Corporation. The performance of the business segments is not comparable with the Corporation's consolidated results and is not necessarily comparable with similar information for any other financial institution. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. The management accounting system assigns balance sheet and income statement items to each business segment using certain methodologies, which are regularly reviewed and refined. From time to time, the Corporation may make reclassifications among the segments to more appropriately reflect management's current view of the segments, and methodologies may be modified as the management accounting system is enhanced and changes occur in the organizational structure and/or product lines. For comparability purposes, amounts in all periods are based on business unit structure and methodologies in effect at June 30, 2021. The following discussion provides information about the activities of each business segment. A discussion of the financial results and the factors impacting performance can be found in "Business Segments" in the "Strategic Lines of Business and Markets" section of the financial review. The Commercial Bank meets the needs of small and middle market businesses, multinational corporations and governmental entities by offering various products and services including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services. The Retail Bank includes a full range of personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. This business segment offers a variety of consumer products including deposit accounts, installment loans, credit cards, student loans, home equity lines of credit and residential mortgage loans. In addition, this business segment offers a subset of commercial products and services to micro-businesses whose primary contact is through the branch network. Wealth Management offers products and services consisting of fiduciary services, private banking, retirement services, investment management and advisory services, investment banking and brokerage services. This business segment also offers the sale of annuity products, as well as life, disability and long-term care insurance products. The Finance segment includes the Corporation’s securities portfolio and asset and liability management activities. This segment is responsible for managing the Corporation’s funding, liquidity and capital needs, performing interest sensitivity analysis and executing various strategies to manage the Corporation’s exposure to liquidity, interest rate risk and foreign exchange risk. The Other category includes the income and expense impact of equity and cash, tax benefits not assigned to specific business segments, charges of an unusual or infrequent nature that are not reflective of the normal operations of the business segments and miscellaneous other expenses of a corporate nature. For further information on the methodologies which form the basis for these results refer to Note 22 to the consolidated financial statements in the Corporation's 2020 Annual Report. Business segment financial results are as follows: Commercial Retail Wealth Management Finance Other Total (dollar amounts in millions) Three Months Ended June 30, 2021 Earnings summary: Net interest income (expense) $ 402 $ 145 $ 43 $ (127) $ 2 $ 465 Provision for credit losses (123) (7) (4) — (1) (135) Noninterest income 167 30 71 9 7 284 Noninterest expenses 204 173 77 1 8 463 Provision (benefit) for income taxes 111 1 9 (26) (2) 93 Net income (loss) $ 377 $ 8 $ 32 $ (93) $ 4 $ 328 Net credit-related (recoveries) charge-offs $ (12) $ 1 $ — $ — $ — $ (11) Selected average balances: Assets $ 44,283 $ 3,395 $ 5,063 $ 17,461 $ 17,658 $ 87,860 Loans 42,350 2,533 4,936 — 9 49,828 Deposits 43,682 25,573 5,103 944 218 75,520 Statistical data: Return on average assets (a) 3.21 % 0.12 % 2.40 % n/m n/m 1.50 % Efficiency ratio (b) 35.95 98.06 66.85 n/m n/m 61.66 Three Months Ended June 30, 2020 Earnings summary: Net interest income (expense) $ 402 $ 120 $ 40 $ (95) $ 4 $ 471 Provision for credit losses 117 5 16 — — 138 Noninterest income 144 24 66 11 2 247 Noninterest expenses (c) 203 153 73 1 4 434 Provision (benefit) for income taxes (c) 47 (3) 3 (20) 1 28 Net income (loss) (c) $ 179 $ (11) $ 14 $ (65) $ 1 $ 118 Net credit-related charge-offs $ 48 $ 1 $ 1 $ — $ — $ 50 Selected average balances: Assets $ 47,392 $ 3,306 $ 5,191 $ 14,500 $ 11,255 $ 81,644 Loans 45,914 2,479 5,077 — 28 53,498 Deposits 36,318 22,647 4,217 950 150 64,282 Statistical data: Return on average assets (a) (c) 1.51 % (0.17) % 1.11 % n/m n/m 0.58 % Efficiency ratio (b) (c) 37.18 105.07 68.18 n/m n/m 60.11 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. (c) See Defined Benefit Pension and Other Postretirement Costs in Note 1. n/m – not meaningful Commercial Retail Wealth Management Finance Other Total (dollar amounts in millions) Six Months Ended June 30, 2021 Earnings summary: Net interest income (expense) $ 784 $ 278 $ 85 $ (244) $ 5 $ 908 Provision for credit losses (300) (1) (16) — — (317) Noninterest income 326 58 138 21 11 554 Noninterest expenses 419 322 153 1 15 910 Provision (benefit) for income taxes 224 1 19 (51) (2) 191 Net income (loss) $ 767 $ 14 $ 67 $ (173) $ 3 $ 678 Net credit-related (recoveries) charge-offs $ (10) $ 2 $ — $ — $ — $ (8) Selected average balances: Assets $ 44,365 $ 3,428 $ 5,112 $ 17,212 $ 16,101 $ 86,218 Loans 42,625 2,576 4,998 — 7 50,206 Deposits 42,399 24,951 4,965 964 188 73,467 Statistical data: Return on average assets (a) 3.38 % 0.11 % 2.55 % n/m n/m 1.59 % Efficiency ratio (b) 37.76 95.00 68.31 n/m n/m 62.10 Six Months Ended June 30, 2020 Earnings summary: Net interest income (expense) $ 782 $ 245 $ 81 $ (139) $ 15 $ 984 Provision for credit losses 513 8 28 — — 549 Noninterest income 271 52 136 25 — 484 Noninterest expenses (c) 395 298 143 1 14 851 Provision (benefit) for income taxes (c) 28 (2) 9 (28) 2 9 Net income (loss) (c) $ 117 $ (7) $ 37 $ (87) $ (1) $ 59 Net credit-related charge-offs $ 131 $ 2 $ 1 $ — $ — $ 134 Selected average balances: Assets $ 45,823 $ 3,085 $ 5,134 $ 14,393 $ 9,019 $ 77,454 Loans 44,253 2,277 5,007 — 14 51,551 Deposits 33,274 21,921 4,120 1,043 166 60,524 Statistical data: Return on average assets (a) (c) 0.51 % (0.05) % 1.45 % n/m n/m 0.15 % Efficiency ratio (b) (c) 37.55 99.39 65.36 n/m n/m 57.79 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. (c) See Defined Benefit Pension and Other Postretirement Costs in Note 1. n/m – not meaningful The Corporation operates in three primary markets - Texas, California and Michigan, as well as in Arizona and Florida, with select businesses operating in several other states and in Canada and Mexico. The Corporation produces market segment results for the Corporation’s three primary geographic markets as well as Other Markets. Other Markets includes Florida, Arizona, the International Finance division and businesses with a national perspective. The Finance & Other category includes the Finance segment and the Other category as previously described. Market segment results are provided as supplemental information to the business segment results and may not meet all operating segment criteria as set forth in GAAP. For comparability purposes, amounts in all periods are based on market segments and methodologies in effect at June 30, 2021. A discussion of the financial results and the factors impacting performance can be found in the section entitled "Market Segments" in the "Strategic Lines of Business and Markets" section of the financial review. Market segment financial results are as follows: Michigan California Texas Other Finance Total (dollar amounts in millions) Three Months Ended June 30, 2021 Earnings summary: Net interest income (expense) $ 178 $ 174 $ 114 $ 124 $ (125) $ 465 Provision for credit losses (26) (24) (77) (7) (1) (135) Noninterest income 72 41 35 120 16 284 Noninterest expenses 136 116 91 111 9 463 Provision (benefit) for income taxes 29 29 29 34 (28) 93 Net income (loss) $ 111 $ 94 $ 106 $ 106 $ (89) $ 328 Net credit-related charge-offs (recoveries) $ 1 $ — $ (12) $ — $ — $ (11) Selected average balances: Assets $ 12,830 $ 17,679 $ 10,615 $ 11,614 $ 35,122 $ 87,860 Loans 12,245 17,515 10,008 10,048 12 49,828 Deposits 26,709 20,582 11,153 15,914 1,162 75,520 Statistical data: Return on average assets (a) 1.62 % 1.75 % 3.35 % 2.51 % n/m 1.50 % Efficiency ratio (b) 54.18 53.63 61.35 45.41 n/m 61.66 Three Months Ended June 30, 2020 Earnings summary: Net interest income (expense) $ 161 $ 169 $ 115 $ 117 $ (91) $ 471 Provision for credit losses 41 47 31 19 — 138 Noninterest income 64 34 30 106 13 247 Noninterest expenses (c) 138 98 89 104 5 434 Provision (benefit) for income taxes (c) 8 13 5 21 (19) 28 Net income (loss) (c) $ 38 $ 45 $ 20 $ 79 $ (64) $ 118 Net credit-related charge-offs (recoveries) $ 1 $ (1) $ 46 $ 4 $ — $ 50 Selected average balances: Assets $ 13,617 $ 18,403 $ 11,555 $ 12,345 $ 25,724 $ 81,644 Loans 13,092 18,249 11,162 10,998 (3) 53,498 Deposits 23,396 17,410 10,198 12,178 1,100 64,282 Statistical data: Return on average assets (a) (c) 0.62 % 0.98 % 0.71 % 2.40 % n/m 0.58 % Efficiency ratio (b) (c) 61.00 48.08 61.06 46.21 n/m 60.11 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. (c) See Defined Benefit Pension and Other Postretirement Costs in Note 1. n/m – not meaningful. Michigan California Texas Other Finance Total (dollar amounts in millions) Six Months Ended June 30, 2021 Earnings summary: Net interest income (expense) $ 333 $ 346 $ 227 $ 241 $ (239) $ 908 Provision for credit losses (54) (78) (163) (22) — (317) Noninterest income 138 89 71 224 32 554 Noninterest expenses 272 220 179 223 16 910 Provision (benefit) for income taxes 51 69 60 64 (53) 191 Net income (loss) $ 202 $ 224 $ 222 $ 200 $ (170) $ 678 Net credit-related charge-offs (recoveries) $ 1 $ 1 $ (10) $ — $ — $ (8) Selected average balances: Assets $ 12,851 $ 17,851 $ 10,627 $ 11,576 $ 33,313 $ 86,218 Loans 12,279 17,702 10,078 10,139 8 50,206 Deposits 26,191 20,221 10,965 14,938 1,152 73,467 Statistical data: Return on average assets (a) 1.51 % 2.13 % 3.61 % 2.53 % n/m 1.59 % Efficiency ratio (b) 57.50 50.33 60.13 47.92 n/m 62.10 Six Months Ended June 30, 2020 Earnings summary: Net interest income (expense) $ 324 $ 345 $ 230 $ 209 $ (124) $ 984 Provision for credit losses 65 93 321 70 — 549 Noninterest income 136 67 60 196 25 484 Noninterest expenses (c) 275 191 172 198 15 851 Provision (benefit) for income taxes (c) 24 30 (45) 26 (26) 9 Net income (loss) (c) $ 96 $ 98 $ (158) $ 111 $ (88) $ 59 Net credit-related charge-offs $ 4 $ 7 $ 116 $ 7 $ — $ 134 Selected average balances: Assets $ 13,223 $ 18,164 $ 11,340 $ 11,331 $ 23,396 $ 77,454 Loans 12,665 17,978 10,858 10,051 (1) 51,551 Deposits 22,037 16,985 9,697 10,596 1,209 60,524 Statistical data: Return on average assets (a) (c) 0.84 % 1.09 % (2.79) % 1.92 % n/m 0.15 % Efficiency ratio (b) (c) 59.41 46.32 59.24 48.65 n/m 57.79 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. (c) See Defined Benefit Pension and Other Postretirement Costs in Note 1. n/m – not meaningful. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from contracts with customers comprises the noninterest income earned by the Corporation in exchange for services provided to customers. The following table presents the composition of revenue from contracts with customers, segregated from other sources of noninterest income, by business segment. Commercial Retail Wealth Management Finance & Other Total (in millions) Three Months Ended June 30, 2021 Revenue from contracts with customers: Card fees $ 72 $ 11 $ 1 $ — $ 84 Fiduciary income — — 60 — 60 Service charges on deposit accounts 33 13 1 — 47 Commercial loan servicing fees (a) 6 — — — 6 Brokerage fees — — 4 — 4 Other noninterest income (b) 4 3 4 — 11 Total revenue from contracts with customers 115 27 70 — 212 Other sources of noninterest income 52 3 1 16 72 Total noninterest income $ 167 $ 30 $ 71 $ 16 $ 284 Three Months Ended June 30, 2020 Revenue from contracts with customers: Card fees $ 59 $ 8 $ 1 $ — $ 68 Fiduciary income — — 52 — 52 Service charges on deposit accounts 30 11 1 — 42 Commercial loan servicing fees (a) 4 — — — 4 Brokerage fees — — 5 — 5 Other noninterest income (b) 11 2 4 — 17 Total revenue from contracts with customers 104 21 63 — 188 Other sources of noninterest income 40 3 3 13 59 Total noninterest income $ 144 $ 24 $ 66 $ 13 $ 247 Six Months Ended June 30, 2021 Revenue from contracts with customers: Card fees $ 132 $ 21 $ 2 $ — $ 155 Fiduciary income — — 113 — 113 Service charges on deposit accounts 67 26 2 — 95 Commercial loan servicing fees (a) 10 — — — 10 Brokerage fees — — 8 — 8 Other noninterest income (b) 9 7 9 — 25 Total revenue from contracts with customers 218 54 134 — 406 Other sources of noninterest income 108 4 4 32 148 Total noninterest income $ 326 $ 58 $ 138 $ 32 $ 554 Six Months Ended June 30, 2020 Revenue from contracts with customers: Card fees $ 108 $ 17 $ 2 $ — $ 127 Fiduciary income — — 106 — 106 Service charges on deposit accounts 62 27 2 — 91 Commercial loan servicing fees (a) 8 — — — 8 Brokerage fees — — 12 — 12 Other noninterest income (b) 15 5 9 — 29 Total revenue from contracts with customers 193 49 131 — 373 Other sources of noninterest income 78 3 5 25 111 Total noninterest income $ 271 $ 52 $ 136 $ 25 $ 484 (a) Included in commercial lending fees on the Consolidated Statements of Comprehensive Income. (b) Excludes derivative, warrant and other miscellaneous income. Adjustments to revenue during the three- and six-month periods ended June 30, 2021 and 2020 for refunds or credits relating to prior periods were not significant. Revenue from contracts with customers did not generate significant contract assets and liabilities. |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Defined Benefit Pension and Other Postretirement Costs | Defined Benefit Pension and Other Postretirement Costs Effective January 1, 2021, the Corporation elected to change the accounting methodology for determining the market-related value of assets (MRVA) for certain classes of assets in the qualified defined benefit pension plan. The MRVA is used to calculate the Corporation's expected return on plan assets, a component of defined pension benefit cost (credit). These classes are currently comprised of the fixed income securities and private placement assets held in the portfolio, utilized by the Corporation to mitigate the impacts to financial results from changes in fair value of the pension liability. Previously, MRVA was measured using a historical five-year average fair value. Under the new methodology, the Corporation calculates MRVA using fair value of plan assets. Although both methods are permitted under U.S. GAAP, the Corporation believes the new policy is preferable for these classes of assets as it results in more timely recognition of the performance of pension assets in the results from operations. The change in accounting methodology is applied retrospectively to all prior periods presented in the consolidated financial statements. The impact of the change to the qualified defined benefit plan on the Corporation's consolidated financial statements is as follows: Consolidated Balance Sheets June 30, 2021 December 31, 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Accumulated other comprehensive (loss) income $ (7) $ 168 $ (104) $ 64 Retained earnings 7 9,623 104 9,727 Consolidated Statements of Comprehensive Income Three Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Other noninterest expenses $ (5) $ 25 $ (6) $ 19 Provision for income taxes $ 1 27 1 28 Net income 4 113 5 118 Earnings per common share: Basic $ 0.03 $ 0.81 $ 0.04 $ 0.85 Diluted $ 0.03 $ 0.80 $ 0.04 $ 0.84 Six Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Other noninterest expenses $ (9) $ 50 $ (14) $ 36 Provision for income taxes 2 6 3 9 Net income 7 48 11 59 Earnings per common share: Basic $ 0.05 $ 0.34 $ 0.08 $ 0.42 Diluted $ 0.05 $ 0.34 $ 0.08 $ 0.42 Consolidated Statements of Cash Flows Six Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Net income $ 7 $ 48 $ 11 $ 59 Provision (benefit) for deferred income taxes 2 (95) 3 (92) Net periodic defined benefit credit (9) (13) (14) (27) |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Consolidated Balance Sheets with Change in Accounting Principle | June 30, 2021 December 31, 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Accumulated other comprehensive (loss) income $ (7) $ 168 $ (104) $ 64 Retained earnings 7 9,623 104 9,727 |
Schedule of Consolidated Statements of Comprehensive Income with Change in Accounting Principle | Three Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Other noninterest expenses $ (5) $ 25 $ (6) $ 19 Provision for income taxes $ 1 27 1 28 Net income 4 113 5 118 Earnings per common share: Basic $ 0.03 $ 0.81 $ 0.04 $ 0.85 Diluted $ 0.03 $ 0.80 $ 0.04 $ 0.84 Six Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Other noninterest expenses $ (9) $ 50 $ (14) $ 36 Provision for income taxes 2 6 3 9 Net income 7 48 11 59 Earnings per common share: Basic $ 0.05 $ 0.34 $ 0.08 $ 0.42 Diluted $ 0.05 $ 0.34 $ 0.08 $ 0.42 |
Schedule of Consolidated Statements of Cash Flows with Change in Accounting Principle | Six Months Ended June 30, 2021 2020 (in millions) Accounting Change Impact Previously Reported Accounting Change Impact Recast Amounts Net income $ 7 $ 48 $ 11 $ 59 Provision (benefit) for deferred income taxes 2 (95) 3 (92) Net periodic defined benefit credit (9) (13) (14) (27) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Recorded At Fair Value On A Recurring Basis | The following tables present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. (in millions) Total Level 1 Level 2 Level 3 June 30, 2021 Deferred compensation plan assets $ 112 $ 112 $ — $ — Equity securities 63 63 — — Investment securities available-for-sale: U.S. Treasury and other U.S. government agency securities 3,844 3,844 — — Residential mortgage-backed securities (a) 11,993 — 11,993 — Total investment securities available-for-sale 15,837 3,844 11,993 — Derivative assets: Interest rate contracts 367 — 338 29 Energy contracts 573 — 573 — Foreign exchange contracts 15 — 15 — Total derivative assets 955 — 926 29 Total assets at fair value $ 16,967 $ 4,019 $ 12,919 $ 29 Derivative liabilities: Interest rate contracts $ 67 $ — $ 67 $ — Energy contracts 570 — 570 — Foreign exchange contracts 10 — 10 — Total derivative liabilities 647 — 647 — Deferred compensation plan liabilities 112 112 — — Total liabilities at fair value $ 759 $ 112 $ 647 $ — December 31, 2020 Deferred compensation plan assets $ 107 $ 107 $ — $ — Equity securities 60 60 — — Investment securities available-for-sale: U.S. Treasury and other U.S. government agency securities 4,658 4,658 — — Residential mortgage-backed securities (a) 10,370 — 10,370 — Total investment securities available-for-sale 15,028 4,658 10,370 — Derivative assets: Interest rate contracts 531 — 492 39 Energy contracts 151 — 151 — Foreign exchange contracts 18 — 18 — Total derivative assets 700 — 661 39 Total assets at fair value $ 15,895 $ 4,825 $ 11,031 $ 39 Derivative liabilities: Interest rate contracts $ 61 $ — $ 61 $ — Energy contracts 149 — 149 — Foreign exchange contracts 19 — 19 — Total derivative liabilities 229 — 229 — Deferred compensation plan liabilities 107 107 — — Total liabilities at fair value $ 336 $ 107 $ 229 $ — (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table summarizes the changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three- and six-month periods ended June 30, 2021 and 2020. Net Realized/Unrealized Gains (Losses) (Pretax) Recorded in Earnings (a) Balance at Beginning of Period Balance at End of Period Sales (in millions) Realized Unrealized Three Months Ended June 30, 2021 Derivative assets: Interest rate contracts $ 24 $ — $ 5 $ — $ 29 Three Months Ended June 30, 2020 Derivative assets: Interest rate contracts $ 43 $ — $ 1 $ — $ 44 Six Months Ended June 30, 2021 Derivative assets: Interest rate contracts $ 39 $ — $ (10) $ — $ 29 Six Months Ended June 30, 2020 Derivative assets: Interest rate contracts $ 22 $ — $ 22 $ — $ 44 (a) Realized and unrealized gains and losses due to changes in fair value are recorded in other noninterest income on the Consolidated Statements of Comprehensive Income. |
Assets And Liabilities Recorded At Fair Value On A Nonrecurring Basis | The following table presents assets recorded at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020. No liabilities were recorded at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020. (in millions) Level 3 June 30, 2021 Loans: Commercial $ 114 Real estate construction 3 Commercial mortgage 14 Total assets at fair value $ 131 December 31, 2020 Loans: Commercial $ 134 Commercial mortgage 16 Total assets at fair value $ 150 |
Estimated Fair Values Of Financial Instruments Not Recorded At Fair Value In Their Entirety On A Recurring Basis | The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on the Corporation’s Consolidated Balance Sheets are as follows: Carrying Estimated Fair Value (in millions) Total Level 1 Level 2 Level 3 June 30, 2021 Assets Cash and due from banks $ 1,008 $ 1,008 $ 1,008 $ — $ — Interest-bearing deposits with banks 15,493 15,493 15,493 — — Loans held-for-sale 8 8 — 8 — Total loans, net of allowance for loan losses (a) 49,576 50,187 — — 50,187 Customers’ liability on acceptances outstanding 4 4 4 — — Restricted equity investments 92 92 92 — — Nonmarketable equity securities (b) 6 10 Liabilities Demand deposits (noninterest-bearing) 40,514 40,514 — 40,514 — Interest-bearing deposits 33,437 33,437 — 33,437 — Customer certificates of deposit 2,115 2,114 — 2,114 — Total deposits 76,066 76,065 — 76,065 — Acceptances outstanding 4 4 4 — — Medium- and long-term debt 2,854 2,919 — 2,919 — Credit-related financial instruments (51) (51) — — (51) December 31, 2020 Assets Cash and due from banks $ 1,031 $ 1,031 $ 1,031 $ — $ — Interest-bearing deposits with banks 14,736 14,736 14,736 — — Loans held-for-sale 5 5 — 5 — Total loans, net of allowance for loan losses (a) 51,343 50,601 — — 50,601 Customers’ liability on acceptances outstanding 1 1 1 — — Restricted equity investments 207 207 207 — — Nonmarketable equity securities (b) 5 9 Liabilities Demand deposits (noninterest-bearing) 39,420 39,420 — 39,420 — Interest-bearing deposits 31,316 31,316 — 31,316 — Customer certificates of deposit 2,133 2,133 — 2,133 — Total deposits 72,869 72,869 — 72,869 — Acceptances outstanding 1 1 1 — — Medium- and long-term debt 5,728 5,790 — 5,790 — Credit-related financial instruments (68) (68) — — (68) (a) Included $131 million and $150 million of loans recorded at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020, respectively. (b) Certain investments that are measured at fair value using the net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary Of Investment Securities | A summary of the Corporation’s investment securities follows: (in millions) Amortized Gross Gross Fair Value June 30, 2021 Investment securities available-for-sale: U.S. Treasury and other U.S. government agency securities $ 3,821 $ 44 $ 21 $ 3,844 Residential mortgage-backed securities (a) 11,924 156 87 11,993 Total investment securities available-for-sale $ 15,745 $ 200 $ 108 $ 15,837 December 31, 2020 Investment securities available-for-sale: U.S. Treasury and other U.S. government agency securities $ 4,583 $ 76 $ 1 $ 4,658 Residential mortgage-backed securities (a) 10,169 203 2 10,370 Total investment securities available-for-sale $ 14,752 $ 279 $ 3 $ 15,028 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Summary Of Investment Securities In Unrealized Loss Positions | A summary of the Corporation’s investment securities in an unrealized loss position as of June 30, 2021 and December 31, 2020 follows: Temporarily Impaired Less than 12 Months 12 Months or more Total (in millions) Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2021 U.S. Treasury and other U.S. government agency securities $ 1,830 $ 21 $ — $ — $ 1,830 $ 21 Residential mortgage-backed securities (a) 3,437 81 198 6 3,635 87 Total temporarily impaired securities $ 5,267 $ 102 $ 198 $ 6 $ 5,465 $ 108 December 31, 2020 U.S. Treasury and other U.S. government agency securities $ 1,119 $ 1 $ — $ — $ 1,119 $ 1 Residential mortgage-backed securities (a) 952 2 — — 952 2 Total temporarily impaired securities $ 2,071 $ 3 $ — $ — $ 2,071 $ 3 (a) Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Summary of Net Securities Gains (Losses) | Sales, calls and write-downs of investment securities available-for-sale resulted in the following losses recorded in net securities gains on the Consolidated Statements of Comprehensive Income, computed based on the adjusted cost of the specific security. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Securities gains $ — $ 1 $ — $ 1 Securities losses — — — (1) Net securities gains $ — $ 1 $ — $ — |
Contractual Maturity Distribution Of Debt Securities | The following table summarizes the amortized cost and fair values of debt securities by contractual maturity. Securities with multiple maturity dates are classified in the period of final maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (in millions) June 30, 2021 Amortized Cost Fair Value Contractual maturity Within one year $ 868 $ 876 After one year through five years 3,151 3,179 After five years through ten years 536 551 After ten years 11,190 11,231 Total investment securities $ 15,745 $ 15,837 |
Credit Quality And Allowance _2
Credit Quality And Allowance For Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Credit Quality And Allowance For Credit Losses [Abstract] | |
Aging Analysis Of Loans | The following table presents an aging analysis of the amortized cost basis of loans. Loans Past Due and Still Accruing (in millions) 30-59 60-89 90 Days Total Nonaccrual Current Total June 30, 2021 Business loans: Commercial $ 65 $ 8 $ 4 $ 77 $ 221 $ 29,909 $ 30,207 Real estate construction: Commercial Real Estate business line (b) — — — — — 2,707 2,707 Other business lines (c) — — 4 4 4 457 465 Total real estate construction — — 4 4 4 3,164 3,172 Commercial mortgage: Commercial Real Estate business line (b) 28 — — 28 2 3,530 3,560 Other business lines (c) 23 8 10 41 29 7,704 7,774 Total commercial mortgage 51 8 10 69 31 11,234 11,334 Lease financing 40 — — 40 — 549 589 International — — — — — 1,036 1,036 Total business loans 156 16 18 190 256 45,892 46,338 Retail loans: Residential mortgage 7 6 2 15 41 1,751 1,807 Consumer: Home equity 2 — — 2 14 1,532 1,548 Other consumer 1 7 7 15 — 520 535 Total consumer 3 7 7 17 14 2,052 2,083 Total retail loans 10 13 9 32 55 3,803 3,890 Total loans $ 166 $ 29 $ 27 $ 222 $ 311 $ 49,695 $ 50,228 December 31, 2020 Business loans: Commercial $ 62 $ 115 $ 33 $ 210 $ 252 $ 32,291 $ 32,753 Real estate construction: Commercial Real Estate business line (b) 31 — — 31 — 3,626 3,657 Other business lines (c) 9 — — 9 1 415 425 Total real estate construction 40 — — 40 1 4,041 4,082 Commercial mortgage: Commercial Real Estate business line (b) 51 1 — 52 3 2,218 2,273 Other business lines (c) 48 40 5 93 26 7,520 7,639 Total commercial mortgage 99 41 5 145 29 9,738 9,912 Lease financing 14 — 1 15 1 578 594 International — — — — — 926 926 Total business loans 215 156 39 410 283 47,574 48,267 Retail loans: Residential mortgage 11 4 — 15 47 1,768 1,830 Consumer: Home equity 7 1 — 8 17 1,563 1,588 Other consumer 10 — 6 16 — 590 606 Total consumer 17 1 6 24 17 2,153 2,194 Total retail loans 28 5 6 39 64 3,921 4,024 Total loans $ 243 $ 161 $ 45 $ 449 $ 347 $ 51,495 $ 52,291 (a) Includes $45 million and $141 million of loans with deferred payments not considered past due in accordance with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) at June 30, 2021 and December 31, 2020, respectively. (b) Primarily loans to real estate developers. (c) Primarily loans secured by owner-occupied real estate. |
Loans By Credit Quality Indicator and Vintage Year | The following table presents loans by credit quality indicator (CQI) and vintage year. CQI is based on internal risk ratings assigned to each business loan at the time of approval and subjected to subsequent reviews, generally at least annually, and to pools of retail loans with similar risk characteristics. Vintage year is the year of origination or major modification. June 30, 2021 Vintage Year (in millions) 2021 2020 2019 2018 2017 Prior Revolvers Revolvers Converted to Term Total Business loans: Commercial: Pass (a) $ 3,319 (b) $ 3,819 (b) $ 1,876 $ 1,278 $ 823 $ 969 $ 16,582 $ 14 $ 28,680 Criticized (c) 55 81 205 136 64 160 824 2 1,527 Total commercial 3,374 3,900 2,081 1,414 887 1,129 17,406 16 30,207 Real estate construction Pass (a) 142 728 1,152 557 294 80 149 — 3,102 Criticized (c) — 3 30 17 8 9 3 — 70 Total real estate construction 142 731 1,182 574 302 89 152 — 3,172 Commercial mortgage Pass (a) 1,064 2,088 1,611 1,636 1,206 2,848 474 — 10,927 Criticized (c) 3 48 63 36 32 210 15 — 407 Total commercial mortgage 1,067 2,136 1,674 1,672 1,238 3,058 489 — 11,334 Lease financing Pass (a) 55 100 108 58 46 186 — — 553 Criticized (c) — 2 22 10 1 1 — — 36 Total lease financing 55 102 130 68 47 187 — — 589 International Pass (a) 199 145 143 48 6 54 385 — 980 Criticized (c) 20 14 3 1 4 9 5 — 56 Total international 219 159 146 49 10 63 390 — 1,036 Total business loans 4,857 7,028 5,213 3,777 2,484 4,526 18,437 16 46,338 Retail loans: Residential mortgage Pass (a) 219 636 197 96 131 481 — — 1,760 Criticized (c) 6 1 2 3 7 28 — — 47 Total residential mortgage 225 637 199 99 138 509 — — 1,807 Consumer: Home equity Pass (a) — — — — — 14 1,464 53 1,531 Criticized (c) — — — — — — 11 6 17 Total home equity — — — — — 14 1,475 59 1,548 Other consumer Pass (a) 50 81 18 9 1 34 326 — 519 Criticized (c) — — — 1 — 7 8 — 16 Total other consumer 50 81 18 10 1 41 334 — 535 Total consumer 50 81 18 10 1 55 1,809 59 2,083 Total retail loans 275 718 217 109 139 564 1,809 59 3,890 Total loans $ 5,132 $ 7,746 $ 5,430 $ 3,886 $ 2,623 $ 5,090 $ 20,246 $ 75 $ 50,228 Table continues on the following page. December 31, 2020 Vintage Year 2020 2019 2018 2017 2016 Prior Revolvers Revolvers Converted to Term Total Business loans: Commercial: Pass (a) $ 5,991 (b) $ 2,316 $ 1,563 $ 1,051 $ 429 $ 755 $ 18,416 $ 17 $ 30,538 Criticized (c) 30 281 191 116 64 166 1,365 2 2,215 Total commercial 6,021 2,597 1,754 1,167 493 921 19,781 19 32,753 Real estate construction: Pass (a) 433 1,080 1,244 631 335 141 171 — 4,035 Criticized (c) 3 28 5 8 — 1 2 — 47 Total real estate construction 436 1,108 1,249 639 335 142 173 — 4,082 Commercial mortgage: Pass (a) 2,053 1,559 1,146 1,120 818 2,272 431 — 9,399 Criticized (c) 47 130 42 45 41 193 15 — 513 Total commercial mortgage 2,100 1,689 1,188 1,165 859 2,465 446 — 9,912 Lease financing Pass (a) 109 122 71 50 14 201 — — 567 Criticized (c) 2 17 5 2 1 — — — 27 Total lease financing 111 139 76 52 15 201 — — 594 International Pass (a) 274 161 103 11 3 64 245 — 861 Criticized (c) 13 8 18 4 7 2 13 — 65 Total international 287 169 121 15 10 66 258 — 926 Total business loans 8,955 5,702 4,388 3,038 1,712 3,795 20,658 19 48,267 Retail loans: Residential mortgage Pass (a) 639 230 119 197 196 398 — — 1,779 Criticized (c) 7 2 2 6 2 32 — — 51 Total residential mortgage 646 232 121 203 198 430 — — 1,830 Consumer: Home equity Pass (a) — — — — — 15 1,489 63 1,567 Criticized (c) — — — — — 1 13 7 21 Total home equity — — — — — 16 1,502 70 1,588 Other consumer Pass (a) 113 23 12 2 3 41 404 — 598 Criticized (c) — — 2 — — — 6 — 8 Total other consumer 113 23 14 2 3 41 410 — 606 Total consumer 113 23 14 2 3 57 1,912 70 2,194 Total retail loans 759 255 135 205 201 487 1,912 70 4,024 Total loans $ 9,714 $ 5,957 $ 4,523 $ 3,243 $ 1,913 $ 4,282 $ 22,570 $ 89 $ 52,291 (a) Includes all loans not included in the categories of special mention, substandard or nonaccrual. (b) Includes Small Business Administration Paycheck Protection Program (PPP) loans of $1.0 billion and $1.8 billion in 2021 and 2020, respectively, at June 30, 2021, and PPP loans of $3.5 billion in 2020 at December 31, 2020. (c) Includes loans with an internal rating of special mention, substandard loans for which the accrual of interest has not been discontinued and nonaccrual loans. Special mention loans have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Accruing substandard loans have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans are also distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies on page F-59 in the Corporation's 2020 Annual Report. These categories are generally consistent with the "special mention" and "substandard" categories as defined by regulatory authorities. A minority of nonaccrual loans are consistent with the "doubtful" category. |
Changes In The Allowance For Loan Losses | The following table details the changes in the allowance for credit losses. 2021 2020 (in millions) Business Loans Retail Loans Total Business Loans Retail Loans Total Three Months Ended June 30 Balance at beginning of period: Allowance for loan losses $ 709 $ 68 $ 777 $ 861 $ 55 $ 916 Allowance for credit losses on lending-related commitments 22 8 30 52 10 62 Allowance for credit losses 731 76 807 913 65 978 Loan charge-offs (7) (1) (8) (56) (1) (57) Recoveries on loans previously charged-off 19 — 19 6 1 7 Net loan charge-offs 12 (1) 11 (50) — (50) Provision for credit losses: Provision for loan losses (132) (4) (136) 132 9 141 Provision for credit losses on lending-related commitments 2 (1) 1 (2) (1) (3) Provision for credit losses (130) (5) (135) 130 8 138 Balance at end of period: Allowance for loan losses 589 63 652 943 64 1,007 Allowance for credit losses on lending-related commitments 24 7 31 50 9 59 Allowance for credit losses $ 613 $ 70 $ 683 $ 993 $ 73 $ 1,066 Six Months Ended June 30 Balance at beginning of period Allowance for loan losses $ 895 $ 53 $ 948 $ 601 $ 36 $ 637 Allowance for credit losses on lending-related commitments 35 9 44 28 3 31 Allowance for credit losses 930 62 992 629 39 668 Cumulative effect of change in accounting principle — — — (42) 25 (17) Loan charge-offs (22) (2) (24) (143) (3) (146) Recoveries on loans previously charged-off 31 1 32 11 1 12 Net loan charge-offs 9 (1) 8 (132) (2) (134) Provision for credit losses: Provision for loan losses (315) 11 (304) 516 5 521 Provision for credit losses on lending-related commitments (11) (2) (13) 22 6 28 Provision for credit losses (326) 9 (317) 538 11 549 Balance at end of period: Allowance for loan losses 589 63 652 943 64 1,007 Allowance for credit losses on lending-related commitments 24 7 31 50 9 59 Allowance for credit losses $ 613 $ 70 $ 683 $ 993 $ 73 $ 1,066 Allowance for loan losses as a percentage of total loans 1.27 % 1.63 % 1.30 % 1.91 % 1.59 % 1.88 % Allowance for loan losses as a percentage of total loans excluding PPP loans 1.35 n/a 1.37 2.07 n/a 2.03 Allowance for credit losses as a percentage of total loans 1.32 1.80 1.36 2.01 1.82 1.99 Allowance for credit losses as a percentage of total loans excluding PPP loans 1.41 n/a 1.44 2.18 n/a 2.15 n/a - not applicable |
Nonaccrual Loans | The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans for the three- and six-month periods ended June 30, 2021 and 2020. (in millions) Nonaccrual Nonaccrual Total June 30, 2021 Business loans: Commercial $ 42 $ 179 $ 221 Real estate construction: Other business lines (a) — 4 4 Commercial mortgage: Commercial Real Estate business line (b) 1 1 2 Other business lines (a) 6 23 29 Total commercial mortgage 7 24 31 Total business loans 49 207 256 Retail loans: Residential mortgage 41 — 41 Consumer: Home equity 14 — 14 Total retail loans 55 — 55 Total nonaccrual loans $ 104 $ 207 $ 311 December 31, 2020 Business loans: Commercial $ 57 $ 195 $ 252 Real estate construction: Other business lines (a) — 1 1 Commercial mortgage: Commercial Real Estate business line (b) 1 2 3 Other business lines (a) 5 21 26 Total commercial mortgage 6 23 29 Lease financing — 1 1 Total business loans 63 220 283 Retail loans: Residential mortgage 47 — 47 Consumer: Home equity 17 — 17 Total retail loans 64 — 64 Total nonaccrual loans $ 127 $ 220 $ 347 (a) Primarily loans secured by owner-occupied real estate. (b) Primarily loans to real estate developers. |
Troubled Debt Restructurings By Type Of Modification | The following table details the amortized cost basis at June 30, 2021 and 2020 of loans considered to be TDRs that were restructured during the three- and six-month periods ended June 30, 2021 and 2020, by type of modification. In cases of loans with more than one type of modification, the loans were categorized based on the most significant modification. 2021 2020 Type of Modification (in millions) Interest Rate Reductions Principal Deferrals (a) Three Months Ended June 30, Retail loans: Residential mortgage $ 6 $ — Consumer: Home equity (b) 1 — Total loans $ 7 $ — Six Months Ended June 30, Business loans: Commercial $ — $ 16 Commercial mortgage: Other business lines (c) — 1 Total business loans — 17 Retail loans: Residential mortgage 6 — Consumer: Home equity (b) 1 — Total loans $ 7 $ 17 (a) Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy. (b) Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. (c) Primarily loans secured by owner-occupied real estate. |
Derivative And Credit-Related_2
Derivative And Credit-Related Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments | The following table presents the composition of the Corporation’s derivative instruments held or issued for risk management purposes or in connection with customer-initiated and other activities at June 30, 2021 and December 31, 2020. June 30, 2021 December 31, 2020 Fair Value Fair Value (in millions) Notional/ Gross Derivative Assets Gross Derivative Liabilities Notional/ Gross Derivative Assets Gross Derivative Liabilities Risk management purposes Derivatives designated as hedging instruments Interest rate contracts: Swaps - fair value - receive fixed/pay floating $ 2,650 $ — $ — $ 2,650 $ — $ — Swaps - cash flow - receive fixed/pay floating 5,250 — — 5,550 — — Derivatives used as economic hedges Foreign exchange contracts: Spot, forwards and swaps 490 1 — 442 1 4 Total risk management purposes 8,390 1 — 8,642 1 4 Customer-initiated and other activities Interest rate contracts: Caps and floors written 838 — 2 869 — — Caps and floors purchased 838 2 — 869 — — Swaps 20,997 365 65 19,783 531 61 Total interest rate contracts 22,673 367 67 21,521 531 61 Energy contracts: Caps and floors written 728 1 96 503 1 33 Caps and floors purchased 728 96 1 503 33 1 Swaps 3,254 476 473 2,115 117 115 Total energy contracts 4,710 573 570 3,121 151 149 Foreign exchange contracts: Spot, forwards, options and swaps 1,911 14 10 1,901 17 15 Total customer-initiated and other activities 29,294 954 647 26,543 699 225 Total gross derivatives $ 37,684 $ 955 $ 647 $ 35,185 $ 700 $ 229 Amounts offset in the Consolidated Balance Sheets: Netting adjustment - Offsetting derivative assets/liabilities (46) (46) (83) (83) Netting adjustment - Cash collateral received/posted (15) (539) (17) (48) Net derivatives included in the Consolidated Balance Sheets (b) 894 62 600 98 Amounts not offset in the Consolidated Balance Sheets: Marketable securities pledged under bilateral collateral agreements — (39) — (42) Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets $ 894 $ 23 $ 600 $ 56 (a) Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. (b) Net derivative assets are included in accrued income and other assets and net derivative liabilities are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $15 million and $27 million at June 30, 2021 and December 31, 2020, respectively. |
Schedule of the Effects of Fair Value Hedging on the Consolidated Statements of Comprehensive Income | The following table details the effects of fair value hedging on the Consolidated Statements of Comprehensive Income. Interest on Medium- and Long-Term Debt Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Total interest on medium- and long-term debt (a) $ 9 $ 19 $ 18 $ 59 Fair value hedging relationships: Interest rate contracts: Hedged items 26 28 51 58 Derivatives designated as hedging instruments (17) (12) (34) (18) |
Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Cash Flow Swaps | The following table summarizes the expected weighted average remaining maturity of the notional amount of risk management interest rate swaps, the carrying amount of the related hedged items and the weighted average interest rates associated with amounts expected to be received or paid on interest rate swap agreements as of June 30, 2021 and December 31, 2020. Cash flow swaps - receive fixed/pay floating rate on variable-rate loans (dollar amounts in millions) June 30, 2021 December 31, 2020 Derivative notional amount $ 5,250 $ 5,550 Weighted average: Remaining maturity (in years) 1.9 2.3 Receive rate 1.85 % 1.87 % Pay rate (a) 0.09 0.15 (a) Variable rates paid on receive fixed swaps designated as cash flow hedges are based on one-month LIBOR rates in effect at June 30, 2021 and December 31, 2020. |
Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Interest Rate Swaps | Fair value swaps - receive fixed/pay floating rate on medium- and long-term debt (dollar amounts in millions) June 30, 2021 December 31, 2020 Derivative notional amount $ 2,650 $ 2,650 Carrying value of hedged items (a) 2,854 2,928 Weighted average: Remaining maturity (in years) 4.1 4.6 Receive rate 3.68 % 3.68 % Pay rate (b) 1.10 1.16 (a) Included $203 million and $279 million of cumulative hedging adjustments at June 30, 2021 and December 31, 2020, respectively, which included $5 million and $6 million, respectively, of hedging adjustment on a discontinued hedging relationship. (b) Variable rates paid on receive fixed swaps designated as fair value hedges are based on one- and six-month LIBOR rates in effect at June 30, 2021 and December 31, 2020. |
Schedule Of Net Gains Recognized In Income On Customer-Initiated Derivatives | The net gains recognized in income on customer-initiated derivative instruments, net of the impact of offsetting positions included in derivative income, were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Interest rate contracts $ 9 $ 8 $ 24 $ 16 Energy contracts 2 2 6 3 Foreign exchange contracts 11 9 22 20 Total derivative income $ 22 $ 19 $ 52 $ 39 |
Schedule Of Financial Instruments With Off-Balance Sheet Credit Risk | The Corporation’s credit risk associated with these instruments is represented by the contractual amounts indicated in the following table. (in millions) June 30, 2021 December 31, 2020 Unused commitments to extend credit: Commercial and other $ 25,676 $ 23,443 Bankcard, revolving check credit and home equity loan commitments 3,394 3,297 Total unused commitments to extend credit $ 29,070 $ 26,740 Standby letters of credit $ 3,433 $ 3,273 Commercial letters of credit 40 30 |
Summary Of Criticized Letters Of Credit | The following table presents a summary of criticized standby and commercial letters of credit at June 30, 2021 and December 31, 2020. The Corporation's criticized list is generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities. The Corporation manages credit risk through underwriting, periodically reviewing and approving its credit exposures using Board committee approved credit policies and guidelines. (dollar amounts in millions) June 30, 2021 December 31, 2020 Total criticized standby and commercial letters of credit $ 43 $ 73 As a percentage of total outstanding standby and commercial letters of credit 1.2 % 2.2 % |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Impact of VIEs on the Consolidated Statements of Income | The following table summarizes the impact of these tax credit entities on the Corporation’s Consolidated Statements of Comprehensive Income. Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Provision for income taxes: Amortization of LIHTC investments $ 18 $ 17 35 34 Low income housing tax credits (17) (16) (33) (32) Other tax benefits related to tax credit entities (4) (3) (8) (7) Total provision for income taxes $ (3) $ (2) $ (6) $ (5) |
Medium- And Long-Term Debt (Tab
Medium- And Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Medium- And Long-Term Debt | Medium- and long-term debt is summarized as follows: (in millions) June 30, 2021 December 31, 2020 Parent company Subordinated notes: 3.80% subordinated notes due 2026 (a) $ 271 $ 280 Medium- and long-term notes: 3.70% notes due 2023 (a) 892 905 4.00% notes due 2029 (a) 607 633 Total medium- and long-term notes 1,499 1,538 Total parent company 1,770 1,818 Subsidiaries Subordinated notes: 4.00% subordinated notes due 2025 (a) 371 380 7.875% subordinated notes due 2026 (a) 198 207 Total subordinated notes 569 587 Medium- and long-term notes: 2.50% notes due 2024 (a) 515 523 Total medium- and long-term notes 515 523 FHLB advances: Floating-rate based on FHLB auction rate due 2026 — 2,800 Total FHLB advances — 2,800 Total subsidiaries 1,084 3,910 Total medium- and long-term debt $ 2,854 $ 5,728 (a) The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income (Loss) | The following table presents a reconciliation of the changes in the components of accumulated other comprehensive (loss) income and details the components of other comprehensive (loss) income for the six months ended June 30, 2021 and 2020, including the amount of income tax (benefit) expense allocated to each component of other comprehensive (loss) income. Six Months Ended June 30, (in millions) 2021 2020 Accumulated net unrealized gains on investment securities: Balance at beginning of period, net of tax $ 211 $ 65 Net unrealized holding (losses) gains arising during the period (184) 286 Less: (Benefit) provision for income taxes (43) 68 Change in net unrealized gains on investment securities, net of tax (141) 218 Balance at end of period, net of tax $ 70 $ 283 Accumulated net gains on cash flow hedges: Balance at beginning of period, net of tax $ 155 $ 34 Net cash flow hedge (losses) gains arising during the period (16) 233 Less: (Benefit) provision for income taxes (4) 56 Change in net cash flow hedge gains arising during the period, net of tax (12) 177 Less: Net cash flow hedge gains included in interest and fees on loans 48 22 Less: Provision for income taxes 11 7 Reclassification adjustment for net cash flow hedge gains included in net income, net of tax 37 15 Change in net cash flow hedge gains, net of tax (49) 162 Balance at end of period, net of tax (a) $ 106 $ 196 Accumulated defined benefit pension and other postretirement plans adjustment: Balance at beginning of period, net of tax (b) $ (302) $ (415) Actuarial loss arising during the period (b) — (6) Less: Benefit for income taxes (b) — (1) Net defined benefit pension and other postretirement plans adjustment arising during the period, net of tax (b) — (5) Amounts recognized in other noninterest expenses: Amortization of actuarial net loss (b) 20 23 Amortization of prior service credit (12) (14) Total amounts recognized in other noninterest expenses (b) 8 9 Less: Provision for income taxes (b) 2 2 Adjustment for amounts recognized as components of net periodic benefit cost during the period, net of tax (b) 6 7 Change in defined benefit pension and other postretirement plans adjustment, net of tax (b) 6 2 Balance at end of period, net of tax (b) $ (296) $ (413) Total accumulated other comprehensive (loss) income at end of period, net of tax (b) $ (120) $ 66 (a) The Corporation expects to reclassify $64 million of gains, net of tax, from accumulated other comprehensive loss to earnings over the next twelve months if interest yield curves and notional amounts remain at June 30, 2021 levels. (b) Balances at beginning of period, net of tax, and changes for the six months ended June 30, 2021 have been recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of the qualified defined benefit pension plan as of January 1, 2021. Refer to Note 1 for further information. |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Net Income Per Common Share | Basic and diluted net income per common share are presented in the following table. Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share data) 2021 2020 2021 2020 Basic and diluted Net income $ 328 $ 118 $ 678 $ 59 Less: Income allocated to participating securities 2 1 3 1 Preferred stock dividends 5 — 11 — Net income attributable to common shares $ 321 $ 117 $ 664 $ 58 Basic average common shares 136 139 138 140 Basic net income per common share $ 2.35 $ 0.85 $ 4.81 $ 0.42 Basic average common shares 136 139 138 140 Dilutive common stock equivalents: Net effect of the assumed exercise of stock awards 2 — 2 1 Diluted average common shares 138 139 140 141 Diluted net income per common share $ 2.32 $ 0.84 $ 4.76 $ 0.42 |
Schedule of Average Shares Excluded From Diluted Net Income Per Common Share Computation | The following average shares related to outstanding options to purchase shares of common stock were not included in the computation of diluted net income per common share because the options were anti-dilutive for the period. Three Months Ended June 30, Six Months Ended June 30, (average outstanding options in thousands) 2021 2020 2021 2020 Average outstanding options 443 2,056 446 1,633 Range of exercise prices $79.01 - $95.25 $39.10 - $95.25 $70.18 - $95.25 $39.10 - $95.25 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost (credit) for the Corporation's qualified pension plan, non-qualified pension plan and postretirement benefit plan are as follows. Qualified Defined Benefit Pension Plan Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 (a) 2021 2020 (a) Service cost $ 9 $ 8 $ 19 $ 16 Other components of net benefit credit: Interest cost 15 17 30 35 Expected return on plan assets (51) (45) (101) (91) Amortization of prior service credit (4) (5) (9) (10) Amortization of net loss 8 10 15 19 Total other components of net benefit credit (32) (23) (65) (47) Net periodic defined benefit credit $ (23) $ (15) $ (46) $ (31) (a) Recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of defined pension benefit credit, effective January 1, 2021. For the three months ended June 30, 2020, expected return on plan assets increased $3 million and amortization of net loss was reduced by $3 million, resulting in an increase of $6 million to total other components of net benefit credit. For the six months ended June 30, 2020, expected return on plan assets increased $6 million and amortization of net loss was reduced by $8 million, resulting in an increase of $14 million to total other components of net benefit credit. Refer to Note 1 for further information. Non-Qualified Defined Benefit Pension Plan Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Service cost $ 1 $ — $ 1 $ 1 Other components of net benefit cost: Interest cost 1 2 3 4 Amortization of prior service credit (2) (2) (3) (4) Amortization of net loss 2 2 5 4 Total other components of net benefit cost 1 2 5 4 Net periodic defined benefit cost $ 2 $ 2 $ 6 $ 5 Postretirement Benefit Plan Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Other components of net benefit credit: Expected return on plan assets $ — $ (1) (1) (1) Net periodic defined benefit credit $ — $ (1) $ (1) $ (1) |
Strategic Lines of Business a_2
Strategic Lines of Business and Markets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Financial Results | Business segment financial results are as follows: Commercial Retail Wealth Management Finance Other Total (dollar amounts in millions) Three Months Ended June 30, 2021 Earnings summary: Net interest income (expense) $ 402 $ 145 $ 43 $ (127) $ 2 $ 465 Provision for credit losses (123) (7) (4) — (1) (135) Noninterest income 167 30 71 9 7 284 Noninterest expenses 204 173 77 1 8 463 Provision (benefit) for income taxes 111 1 9 (26) (2) 93 Net income (loss) $ 377 $ 8 $ 32 $ (93) $ 4 $ 328 Net credit-related (recoveries) charge-offs $ (12) $ 1 $ — $ — $ — $ (11) Selected average balances: Assets $ 44,283 $ 3,395 $ 5,063 $ 17,461 $ 17,658 $ 87,860 Loans 42,350 2,533 4,936 — 9 49,828 Deposits 43,682 25,573 5,103 944 218 75,520 Statistical data: Return on average assets (a) 3.21 % 0.12 % 2.40 % n/m n/m 1.50 % Efficiency ratio (b) 35.95 98.06 66.85 n/m n/m 61.66 Three Months Ended June 30, 2020 Earnings summary: Net interest income (expense) $ 402 $ 120 $ 40 $ (95) $ 4 $ 471 Provision for credit losses 117 5 16 — — 138 Noninterest income 144 24 66 11 2 247 Noninterest expenses (c) 203 153 73 1 4 434 Provision (benefit) for income taxes (c) 47 (3) 3 (20) 1 28 Net income (loss) (c) $ 179 $ (11) $ 14 $ (65) $ 1 $ 118 Net credit-related charge-offs $ 48 $ 1 $ 1 $ — $ — $ 50 Selected average balances: Assets $ 47,392 $ 3,306 $ 5,191 $ 14,500 $ 11,255 $ 81,644 Loans 45,914 2,479 5,077 — 28 53,498 Deposits 36,318 22,647 4,217 950 150 64,282 Statistical data: Return on average assets (a) (c) 1.51 % (0.17) % 1.11 % n/m n/m 0.58 % Efficiency ratio (b) (c) 37.18 105.07 68.18 n/m n/m 60.11 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. (c) See Defined Benefit Pension and Other Postretirement Costs in Note 1. n/m – not meaningful Commercial Retail Wealth Management Finance Other Total (dollar amounts in millions) Six Months Ended June 30, 2021 Earnings summary: Net interest income (expense) $ 784 $ 278 $ 85 $ (244) $ 5 $ 908 Provision for credit losses (300) (1) (16) — — (317) Noninterest income 326 58 138 21 11 554 Noninterest expenses 419 322 153 1 15 910 Provision (benefit) for income taxes 224 1 19 (51) (2) 191 Net income (loss) $ 767 $ 14 $ 67 $ (173) $ 3 $ 678 Net credit-related (recoveries) charge-offs $ (10) $ 2 $ — $ — $ — $ (8) Selected average balances: Assets $ 44,365 $ 3,428 $ 5,112 $ 17,212 $ 16,101 $ 86,218 Loans 42,625 2,576 4,998 — 7 50,206 Deposits 42,399 24,951 4,965 964 188 73,467 Statistical data: Return on average assets (a) 3.38 % 0.11 % 2.55 % n/m n/m 1.59 % Efficiency ratio (b) 37.76 95.00 68.31 n/m n/m 62.10 Six Months Ended June 30, 2020 Earnings summary: Net interest income (expense) $ 782 $ 245 $ 81 $ (139) $ 15 $ 984 Provision for credit losses 513 8 28 — — 549 Noninterest income 271 52 136 25 — 484 Noninterest expenses (c) 395 298 143 1 14 851 Provision (benefit) for income taxes (c) 28 (2) 9 (28) 2 9 Net income (loss) (c) $ 117 $ (7) $ 37 $ (87) $ (1) $ 59 Net credit-related charge-offs $ 131 $ 2 $ 1 $ — $ — $ 134 Selected average balances: Assets $ 45,823 $ 3,085 $ 5,134 $ 14,393 $ 9,019 $ 77,454 Loans 44,253 2,277 5,007 — 14 51,551 Deposits 33,274 21,921 4,120 1,043 166 60,524 Statistical data: Return on average assets (a) (c) 0.51 % (0.05) % 1.45 % n/m n/m 0.15 % Efficiency ratio (b) (c) 37.55 99.39 65.36 n/m n/m 57.79 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. (c) See Defined Benefit Pension and Other Postretirement Costs in Note 1. n/m – not meaningful |
Market Segment Financial Results | Market segment financial results are as follows: Michigan California Texas Other Finance Total (dollar amounts in millions) Three Months Ended June 30, 2021 Earnings summary: Net interest income (expense) $ 178 $ 174 $ 114 $ 124 $ (125) $ 465 Provision for credit losses (26) (24) (77) (7) (1) (135) Noninterest income 72 41 35 120 16 284 Noninterest expenses 136 116 91 111 9 463 Provision (benefit) for income taxes 29 29 29 34 (28) 93 Net income (loss) $ 111 $ 94 $ 106 $ 106 $ (89) $ 328 Net credit-related charge-offs (recoveries) $ 1 $ — $ (12) $ — $ — $ (11) Selected average balances: Assets $ 12,830 $ 17,679 $ 10,615 $ 11,614 $ 35,122 $ 87,860 Loans 12,245 17,515 10,008 10,048 12 49,828 Deposits 26,709 20,582 11,153 15,914 1,162 75,520 Statistical data: Return on average assets (a) 1.62 % 1.75 % 3.35 % 2.51 % n/m 1.50 % Efficiency ratio (b) 54.18 53.63 61.35 45.41 n/m 61.66 Three Months Ended June 30, 2020 Earnings summary: Net interest income (expense) $ 161 $ 169 $ 115 $ 117 $ (91) $ 471 Provision for credit losses 41 47 31 19 — 138 Noninterest income 64 34 30 106 13 247 Noninterest expenses (c) 138 98 89 104 5 434 Provision (benefit) for income taxes (c) 8 13 5 21 (19) 28 Net income (loss) (c) $ 38 $ 45 $ 20 $ 79 $ (64) $ 118 Net credit-related charge-offs (recoveries) $ 1 $ (1) $ 46 $ 4 $ — $ 50 Selected average balances: Assets $ 13,617 $ 18,403 $ 11,555 $ 12,345 $ 25,724 $ 81,644 Loans 13,092 18,249 11,162 10,998 (3) 53,498 Deposits 23,396 17,410 10,198 12,178 1,100 64,282 Statistical data: Return on average assets (a) (c) 0.62 % 0.98 % 0.71 % 2.40 % n/m 0.58 % Efficiency ratio (b) (c) 61.00 48.08 61.06 46.21 n/m 60.11 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. (c) See Defined Benefit Pension and Other Postretirement Costs in Note 1. n/m – not meaningful. Michigan California Texas Other Finance Total (dollar amounts in millions) Six Months Ended June 30, 2021 Earnings summary: Net interest income (expense) $ 333 $ 346 $ 227 $ 241 $ (239) $ 908 Provision for credit losses (54) (78) (163) (22) — (317) Noninterest income 138 89 71 224 32 554 Noninterest expenses 272 220 179 223 16 910 Provision (benefit) for income taxes 51 69 60 64 (53) 191 Net income (loss) $ 202 $ 224 $ 222 $ 200 $ (170) $ 678 Net credit-related charge-offs (recoveries) $ 1 $ 1 $ (10) $ — $ — $ (8) Selected average balances: Assets $ 12,851 $ 17,851 $ 10,627 $ 11,576 $ 33,313 $ 86,218 Loans 12,279 17,702 10,078 10,139 8 50,206 Deposits 26,191 20,221 10,965 14,938 1,152 73,467 Statistical data: Return on average assets (a) 1.51 % 2.13 % 3.61 % 2.53 % n/m 1.59 % Efficiency ratio (b) 57.50 50.33 60.13 47.92 n/m 62.10 Six Months Ended June 30, 2020 Earnings summary: Net interest income (expense) $ 324 $ 345 $ 230 $ 209 $ (124) $ 984 Provision for credit losses 65 93 321 70 — 549 Noninterest income 136 67 60 196 25 484 Noninterest expenses (c) 275 191 172 198 15 851 Provision (benefit) for income taxes (c) 24 30 (45) 26 (26) 9 Net income (loss) (c) $ 96 $ 98 $ (158) $ 111 $ (88) $ 59 Net credit-related charge-offs $ 4 $ 7 $ 116 $ 7 $ — $ 134 Selected average balances: Assets $ 13,223 $ 18,164 $ 11,340 $ 11,331 $ 23,396 $ 77,454 Loans 12,665 17,978 10,858 10,051 (1) 51,551 Deposits 22,037 16,985 9,697 10,596 1,209 60,524 Statistical data: Return on average assets (a) (c) 0.84 % 1.09 % (2.79) % 1.92 % n/m 0.15 % Efficiency ratio (b) (c) 59.41 46.32 59.24 48.65 n/m 57.79 (a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. (c) See Defined Benefit Pension and Other Postretirement Costs in Note 1. n/m – not meaningful. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Composition of Revenue from Contracts with Customers | The following table presents the composition of revenue from contracts with customers, segregated from other sources of noninterest income, by business segment. Commercial Retail Wealth Management Finance & Other Total (in millions) Three Months Ended June 30, 2021 Revenue from contracts with customers: Card fees $ 72 $ 11 $ 1 $ — $ 84 Fiduciary income — — 60 — 60 Service charges on deposit accounts 33 13 1 — 47 Commercial loan servicing fees (a) 6 — — — 6 Brokerage fees — — 4 — 4 Other noninterest income (b) 4 3 4 — 11 Total revenue from contracts with customers 115 27 70 — 212 Other sources of noninterest income 52 3 1 16 72 Total noninterest income $ 167 $ 30 $ 71 $ 16 $ 284 Three Months Ended June 30, 2020 Revenue from contracts with customers: Card fees $ 59 $ 8 $ 1 $ — $ 68 Fiduciary income — — 52 — 52 Service charges on deposit accounts 30 11 1 — 42 Commercial loan servicing fees (a) 4 — — — 4 Brokerage fees — — 5 — 5 Other noninterest income (b) 11 2 4 — 17 Total revenue from contracts with customers 104 21 63 — 188 Other sources of noninterest income 40 3 3 13 59 Total noninterest income $ 144 $ 24 $ 66 $ 13 $ 247 Six Months Ended June 30, 2021 Revenue from contracts with customers: Card fees $ 132 $ 21 $ 2 $ — $ 155 Fiduciary income — — 113 — 113 Service charges on deposit accounts 67 26 2 — 95 Commercial loan servicing fees (a) 10 — — — 10 Brokerage fees — — 8 — 8 Other noninterest income (b) 9 7 9 — 25 Total revenue from contracts with customers 218 54 134 — 406 Other sources of noninterest income 108 4 4 32 148 Total noninterest income $ 326 $ 58 $ 138 $ 32 $ 554 Six Months Ended June 30, 2020 Revenue from contracts with customers: Card fees $ 108 $ 17 $ 2 $ — $ 127 Fiduciary income — — 106 — 106 Service charges on deposit accounts 62 27 2 — 91 Commercial loan servicing fees (a) 8 — — — 8 Brokerage fees — — 12 — 12 Other noninterest income (b) 15 5 9 — 29 Total revenue from contracts with customers 193 49 131 — 373 Other sources of noninterest income 78 3 5 25 111 Total noninterest income $ 271 $ 52 $ 136 $ 25 $ 484 (a) Included in commercial lending fees on the Consolidated Statements of Comprehensive Income. (b) Excludes derivative, warrant and other miscellaneous income. |
Basis of Presentation and Acc_4
Basis of Presentation and Accounting Policies (Change in Accounting Principle - Consolidated Balance Sheets)(Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | [1] | |
Accumulated other comprehensive (loss) income | $ (120) | [1] | $ 64 | $ 66 | |
Retained earnings | 10,202 | 9,727 | |||
Accounting change impact | |||||
Accumulated other comprehensive (loss) income | (7) | (104) | |||
Retained earnings | $ 7 | 104 | |||
Previously Reported | |||||
Accumulated other comprehensive (loss) income | 168 | ||||
Retained earnings | $ 9,623 | ||||
[1] | Balances at beginning of period, net of tax, and changes for the six months ended June 30, 2021 have been recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of the qualified defined benefit pension plan as of January 1, 2021. Refer to Note 1 for further information. |
Basis of Presentation and Acc_5
Basis of Presentation and Accounting Policies (Change in Accounting Principle - Consolidated Statements of Comprehensive Income) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Other noninterest expenses | $ 10 | $ 19 | $ 9 | $ 36 | ||
Provision for income taxes | 93 | 28 | [1] | 191 | 9 | [1] |
Net income | $ 328 | $ 118 | [1] | $ 678 | $ 59 | [1] |
Basic earnings per common share | $ 2.35 | $ 0.85 | $ 4.81 | $ 0.42 | ||
Diluted earnings per common share | $ 2.32 | $ 0.84 | $ 4.76 | $ 0.42 | ||
Accounting change impact | ||||||
Other noninterest expenses | $ (6) | $ (9) | $ (14) | |||
Provision for income taxes | $ 1 | 1 | 2 | 3 | ||
Net income | $ 4 | $ 5 | $ 7 | $ 11 | ||
Basic earnings per common share | $ 0.03 | $ 0.04 | $ 0.05 | $ 0.08 | ||
Diluted earnings per common share | $ 0.03 | $ 0.04 | $ 0.05 | $ 0.08 | ||
Previously Reported | ||||||
Other noninterest expenses | $ 25 | $ 50 | ||||
Provision for income taxes | 27 | 6 | ||||
Net income | $ 113 | $ 48 | ||||
Basic earnings per common share | $ 0.81 | $ 0.34 | ||||
Diluted earnings per common share | $ 0.80 | $ 0.34 | ||||
[1] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. |
Basis of Presentation and Acc_6
Basis of Presentation and Accounting Policies (Change in Accounting Principle - Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Net income | $ 328 | $ 118 | [1] | $ 678 | $ 59 | [1] |
Provision (benefit) for deferred income taxes | 69 | (92) | ||||
Net periodic defined benefit credit | (41) | (27) | ||||
Previously Reported | ||||||
Net income | 113 | 48 | ||||
Provision (benefit) for deferred income taxes | (95) | |||||
Net periodic defined benefit credit | (13) | |||||
Accounting change impact | ||||||
Net income | 4 | $ 5 | 7 | 11 | ||
Provision (benefit) for deferred income taxes | $ 1 | 2 | 3 | |||
Net periodic defined benefit credit | $ (9) | $ (14) | ||||
[1] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Recurring | |||||
Transfers into or out of Level 3 | $ 0 | $ 0 | $ 0 | $ 0 | |
Total liabilities at fair value | 759 | 759 | $ 336 | ||
Nonrecurring | |||||
Total liabilities at fair value | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Recorded At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | $ 15,837 | $ 15,028 | |
Derivative assets | 955 | 700 | |
Derivative liabilities | 647 | 229 | |
U.S. Treasury and other U.S. government agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 3,844 | 4,658 | |
Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | [1] | 11,993 | 10,370 |
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 15,837 | 15,028 | |
Derivative assets | 955 | 700 | |
Total assets at fair value | 16,967 | 15,895 | |
Derivative liabilities | 647 | 229 | |
Deferred compensation plan liabilities | 112 | 107 | |
Total liabilities at fair value | 759 | 336 | |
Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 3,844 | 4,658 | |
Derivative assets | 0 | 0 | |
Total assets at fair value | 4,019 | 4,825 | |
Derivative liabilities | 0 | 0 | |
Deferred compensation plan liabilities | 112 | 107 | |
Total liabilities at fair value | 112 | 107 | |
Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 11,993 | 10,370 | |
Derivative assets | 926 | 661 | |
Total assets at fair value | 12,919 | 11,031 | |
Derivative liabilities | 647 | 229 | |
Deferred compensation plan liabilities | 0 | 0 | |
Total liabilities at fair value | 647 | 229 | |
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | 0 | |
Derivative assets | 29 | 39 | |
Total assets at fair value | 29 | 39 | |
Derivative liabilities | 0 | 0 | |
Deferred compensation plan liabilities | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Recurring | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 367 | 531 | |
Derivative liabilities | 67 | 61 | |
Recurring | Interest rate contracts | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Interest rate contracts | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 338 | 492 | |
Derivative liabilities | 67 | 61 | |
Recurring | Interest rate contracts | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 29 | 39 | |
Derivative liabilities | 0 | 0 | |
Recurring | Energy derivative contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 573 | 151 | |
Derivative liabilities | 570 | 149 | |
Recurring | Energy derivative contracts | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Energy derivative contracts | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 573 | 151 | |
Derivative liabilities | 570 | 149 | |
Recurring | Energy derivative contracts | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 15 | 18 | |
Derivative liabilities | 10 | 19 | |
Recurring | Foreign exchange contracts | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Foreign exchange contracts | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 15 | 18 | |
Derivative liabilities | 10 | 19 | |
Recurring | Foreign exchange contracts | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring | Deferred compensation plan assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 112 | 107 | |
Recurring | Deferred compensation plan assets | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 112 | 107 | |
Recurring | Deferred compensation plan assets | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Recurring | Deferred compensation plan assets | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Recurring | Equity and other non-debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other equity securities | 63 | 60 | |
Recurring | Equity and other non-debt securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other equity securities | 63 | 60 | |
Recurring | Equity and other non-debt securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other equity securities | 0 | 0 | |
Recurring | Equity and other non-debt securities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other equity securities | 0 | 0 | |
Recurring | U.S. Treasury and other U.S. government agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 3,844 | 4,658 | |
Recurring | U.S. Treasury and other U.S. government agency securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 3,844 | 4,658 | |
Recurring | U.S. Treasury and other U.S. government agency securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring | U.S. Treasury and other U.S. government agency securities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | [1] | 11,993 | 10,370 |
Recurring | Residential mortgage-backed securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | [1] | 0 | 0 |
Recurring | Residential mortgage-backed securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | [1] | 11,993 | 10,370 |
Recurring | Residential mortgage-backed securities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | [1] | $ 0 | $ 0 |
[1] | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Fair Value Measurements (Change
Fair Value Measurements (Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - Interest rate contracts - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Balance at beginning of period | $ 24 | $ 43 | $ 39 | $ 22 | |
Realized gains (losses) recorded in earnings | [1] | 0 | 0 | 0 | 0 |
Unrealized gains (losses) recorded in earnings | [1] | 5 | 1 | (10) | 22 |
Sales | 0 | 0 | 0 | 0 | |
Balance at end of period | $ 29 | $ 44 | $ 29 | $ 44 | |
[1] | Realized and unrealized gains and losses due to changes in fair value are recorded in other noninterest income on the Consolidated Statements of Comprehensive Income. |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets And Liabilities Recorded At Fair Value On A Nonrecurring Basis) (Details) - Nonrecurring - Level 3 - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 131 | $ 150 |
Commercial borrower | Domestic loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 114 | 134 |
Commercial borrower | Commercial mortgage | Domestic loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 14 | $ 16 |
Commercial borrower | Construction | Domestic loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | $ 3 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values Of Financial Instruments Not Recorded At Fair Value In Their Entirety On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Cash and due from banks | $ 1,008 | $ 1,031 | |
Interest-bearing deposits with banks | 15,493 | 14,736 | |
Total loans, net of allowance for loan losses | 49,576 | 51,343 | |
Demand deposits (noninterest-bearing) | 40,514 | 39,420 | |
Customer certificates of deposit | 2,115 | 2,133 | |
Total deposits | 76,066 | 72,869 | |
Total Medium- and long-term debt | 2,854 | 5,728 | |
Carrying Amount | |||
Cash and due from banks | 1,008 | 1,031 | |
Interest-bearing deposits with banks | 15,493 | 14,736 | |
Loans held-for-sale | 8 | 5 | |
Total loans, net of allowance for loan losses | [1] | 49,576 | 51,343 |
Customers' liability on acceptances outstanding | 4 | 1 | |
Restricted equity investments | 92 | 207 | |
Nonmarketable equity securities | [2] | 6 | 5 |
Demand deposits (noninterest-bearing) | 40,514 | 39,420 | |
Interest-bearing deposits | 33,437 | 31,316 | |
Customer certificates of deposit | 2,115 | 2,133 | |
Total deposits | 76,066 | 72,869 | |
Acceptances outstanding | 4 | 1 | |
Total Medium- and long-term debt | 2,854 | 5,728 | |
Credit-related financial instruments | (51) | (68) | |
Estimated Fair Value | |||
Cash and due from banks | 1,008 | 1,031 | |
Interest-bearing deposits with banks | 15,493 | 14,736 | |
Loans held-for-sale | 8 | 5 | |
Total loans, net of allowance for loan losses | [1] | 50,187 | 50,601 |
Customers' liability on acceptances outstanding | 4 | 1 | |
Restricted equity investments | 92 | 207 | |
Nonmarketable equity securities | [2] | 10 | 9 |
Demand deposits (noninterest-bearing) | 40,514 | 39,420 | |
Interest-bearing deposits | 33,437 | 31,316 | |
Customer certificates of deposit | 2,114 | 2,133 | |
Total deposits | 76,065 | 72,869 | |
Acceptances outstanding | 4 | 1 | |
Total Medium- and long-term debt | 2,919 | 5,790 | |
Credit-related financial instruments | (51) | (68) | |
Level 1 | Estimated Fair Value | |||
Cash and due from banks | 1,008 | 1,031 | |
Interest-bearing deposits with banks | 15,493 | 14,736 | |
Loans held-for-sale | 0 | 0 | |
Total loans, net of allowance for loan losses | [1] | 0 | 0 |
Customers' liability on acceptances outstanding | 4 | 1 | |
Restricted equity investments | 92 | 207 | |
Demand deposits (noninterest-bearing) | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Customer certificates of deposit | 0 | 0 | |
Total deposits | 0 | 0 | |
Acceptances outstanding | 4 | 1 | |
Total Medium- and long-term debt | 0 | 0 | |
Credit-related financial instruments | 0 | 0 | |
Level 2 | Estimated Fair Value | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits with banks | 0 | 0 | |
Loans held-for-sale | 8 | 5 | |
Total loans, net of allowance for loan losses | [1] | 0 | 0 |
Customers' liability on acceptances outstanding | 0 | 0 | |
Restricted equity investments | 0 | 0 | |
Demand deposits (noninterest-bearing) | 40,514 | 39,420 | |
Interest-bearing deposits | 33,437 | 31,316 | |
Customer certificates of deposit | 2,114 | 2,133 | |
Total deposits | 76,065 | 72,869 | |
Acceptances outstanding | 0 | 0 | |
Total Medium- and long-term debt | 2,919 | 5,790 | |
Credit-related financial instruments | 0 | 0 | |
Level 3 | Estimated Fair Value | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits with banks | 0 | 0 | |
Loans held-for-sale | 0 | 0 | |
Total loans, net of allowance for loan losses | [1] | 50,187 | 50,601 |
Customers' liability on acceptances outstanding | 0 | 0 | |
Restricted equity investments | 0 | 0 | |
Demand deposits (noninterest-bearing) | 0 | 0 | |
Interest-bearing deposits | 0 | 0 | |
Customer certificates of deposit | 0 | 0 | |
Total deposits | 0 | 0 | |
Acceptances outstanding | 0 | 0 | |
Total Medium- and long-term debt | 0 | 0 | |
Credit-related financial instruments | (51) | (68) | |
Nonrecurring | |||
Total loans, net of allowance for loan losses | $ 131 | $ 150 | |
[1] | Included $131 million and $150 million of loans recorded at fair value on a nonrecurring basis at June 30, 2021 and December 31, 2020, respectively. | ||
[2] | Certain investments that are measured at fair value using the net asset value have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Securities with no credit impairment in unrealized loss position | 139 | ||
Interest receivable | $ 20 | $ 18 | |
Investment securities available-for-sale, Amortized Cost | 15,745 | 14,752 | |
Investment securities available-for-sale, Fair Value | 15,837 | 15,028 | |
Carrying value of securities pledged | 4,000 | ||
Pledged to the FHLB as collateral for potential future borrowings | 3,200 | ||
FHLB potential future borrowings | 3,100 | ||
Collateral for potential future borrowings | 830 | ||
Liabilities secured by pledged collateral | $ 631 | ||
U.S. Treasury and other U.S. government agency securities | |||
Securities with no credit impairment in unrealized loss position | 19 | ||
Investment securities available-for-sale, Amortized Cost | $ 3,821 | 4,583 | |
Investment securities available-for-sale, Fair Value | $ 3,844 | 4,658 | |
Residential mortgage-backed securities | |||
Securities with no credit impairment in unrealized loss position | 120 | ||
Investment securities available-for-sale, Amortized Cost | [1] | $ 11,924 | 10,169 |
Investment securities available-for-sale, Fair Value | [1] | 11,993 | $ 10,370 |
Debt securities | |||
Investment securities available-for-sale, Amortized Cost | 15,745 | ||
Investment securities available-for-sale, Fair Value | 15,837 | ||
Prepayment options | Residential mortgage-backed securities | |||
Investment securities available-for-sale, Amortized Cost | 11,900 | ||
Investment securities available-for-sale, Fair Value | $ 12,000 | ||
[1] | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Investment Securities (Summary
Investment Securities (Summary Of Investment Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Investment securities available-for-sale, Amortized Cost | $ 15,745 | $ 14,752 | |
Investment securities available-for-sale, Gross Unrealized Gains | 200 | 279 | |
Investment securities available-for-sale, Gross Unrealized Losses | 108 | 3 | |
Investment securities available-for-sale, Fair Value | 15,837 | 15,028 | |
U.S. Treasury and other U.S. government agency securities | |||
Investment securities available-for-sale, Amortized Cost | 3,821 | 4,583 | |
Investment securities available-for-sale, Gross Unrealized Gains | 44 | 76 | |
Investment securities available-for-sale, Gross Unrealized Losses | 21 | 1 | |
Investment securities available-for-sale, Fair Value | 3,844 | 4,658 | |
Residential mortgage-backed securities | |||
Investment securities available-for-sale, Amortized Cost | [1] | 11,924 | 10,169 |
Investment securities available-for-sale, Gross Unrealized Gains | [1] | 156 | 203 |
Investment securities available-for-sale, Gross Unrealized Losses | [1] | 87 | 2 |
Investment securities available-for-sale, Fair Value | [1] | $ 11,993 | $ 10,370 |
[1] | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Investment Securities (Summar_2
Investment Securities (Summary Of Investment Securities In Unrealized Loss Positions) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Temporarily Impaired Less than 12 months, Fair Value | $ 5,267 | $ 2,071 | |
Temporarily Impaired Less than 12 Months, Unrealized Losses | 102 | 3 | |
Temporarily Impaired 12 months or more, Fair Value | 198 | 0 | |
Temporarily Impaired 12 Months or more, Unrealized Losses | 6 | 0 | |
Temporarily Impaired Total, Fair Value | 5,465 | 2,071 | |
Temporarily Impaired Total, Unrealized Losses | 108 | 3 | |
U.S. Treasury and other U.S. government agency securities | |||
Temporarily Impaired Less than 12 months, Fair Value | 1,830 | 1,119 | |
Temporarily Impaired Less than 12 Months, Unrealized Losses | 21 | 1 | |
Temporarily Impaired 12 months or more, Fair Value | 0 | 0 | |
Temporarily Impaired 12 Months or more, Unrealized Losses | 0 | 0 | |
Temporarily Impaired Total, Fair Value | 1,830 | 1,119 | |
Temporarily Impaired Total, Unrealized Losses | 21 | 1 | |
Residential mortgage-backed securities | |||
Temporarily Impaired Less than 12 months, Fair Value | [1] | 3,437 | 952 |
Temporarily Impaired Less than 12 Months, Unrealized Losses | [1] | 81 | 2 |
Temporarily Impaired 12 months or more, Fair Value | [1] | 198 | 0 |
Temporarily Impaired 12 Months or more, Unrealized Losses | [1] | 6 | 0 |
Temporarily Impaired Total, Fair Value | [1] | 3,635 | 952 |
Temporarily Impaired Total, Unrealized Losses | [1] | $ 87 | $ 2 |
[1] | Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Investment Securities Investmen
Investment Securities Investment Securities (Summary of Net Securities Gains (Losses)) (Details) - Debt securities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt, and Equity Securities [Abstract] | ||||
Securities gains | $ 0 | $ 1 | $ 0 | $ 1 |
Securities losses | 0 | 0 | 0 | (1) |
Net securities gains | $ 0 | $ 1 | $ 0 | $ 0 |
Investment Securities (Contract
Investment Securities (Contractual Maturity Distribution Of Debt Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Investment securities available-for-sale, Amortized Cost | $ 15,745 | $ 14,752 |
Investment securities available-for-sale, Fair Value | 15,837 | $ 15,028 |
Debt securities | ||
Available-for-sale, Within one year, Amortized Cost | 868 | |
Available-for-sale, After one year through five years, Amortized Cost | 3,151 | |
Available-for-sale, After five years through ten years, Amortized Cost | 536 | |
Available-for-sale, After ten years, Amortized Cost | 11,190 | |
Investment securities available-for-sale, Amortized Cost | 15,745 | |
Available-for-sale, Within one year, Fair Value | 876 | |
Available-for-sale, After one year through five years, Fair Value | 3,179 | |
Available-for-sale, After five years through ten years, Fair Value | 551 | |
Available-for-sale, After ten years, Fair Value | 11,231 | |
Investment securities available-for-sale, Fair Value | $ 15,837 |
Credit Quality And Allowance _3
Credit Quality And Allowance For Credit Losses (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Loan interest receivable | $ 135 | $ 135 | $ 141 | ||
Financing Receivable, Nonaccrual, Interest Income | 0 | $ 0 | 0 | $ 0 | |
Foreclosed property | 8 | ||||
Retail loans secured by residential real estate in process of foreclosure | 0 | 0 | 0 | ||
Commitments to lend additional funds to TDR borrowers | 0 | 0 | $ 0 | ||
Loans with terms extended in accordance with CARES Act | $ 42 | $ 42 | |||
Principal Deferrals | |||||
Minimum period loan terms were extended | 90 days | 90 days | 90 days | 90 days | |
Subsequent default during period | $ 0 | $ 6 | $ 0 | $ 15 | |
Interest Rate Reductions | |||||
Minimum period loan terms were extended | 90 days | 90 days | 90 days | 90 days | |
Subsequent default during period | $ 0 | $ 0 | $ 0 | $ 0 |
Credit Quality And Allowance _4
Credit Quality And Allowance For Credit Losses (Aging Analysis Of Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | $ 222 | $ 449 | |
Nonaccrual loans | 311 | 347 | |
Current loans | [1] | 49,695 | 51,495 |
Total loans | 50,228 | 52,291 | |
30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 166 | 243 | |
60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 29 | 161 | |
90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 27 | 45 | |
Business loans | Commercial borrower | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 190 | 410 | |
Nonaccrual loans | 256 | 283 | |
Current loans | [1] | 45,892 | 47,574 |
Total loans | 46,338 | 48,267 | |
Business loans | Commercial borrower | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 156 | 215 | |
Business loans | Commercial borrower | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 16 | 156 | |
Business loans | Commercial borrower | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 18 | 39 | |
Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 77 | 210 | |
Nonaccrual loans | 221 | 252 | |
Current loans | [1] | 29,909 | 32,291 |
Total loans | 30,207 | 32,753 | |
Business loans | Commercial borrower | Domestic loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 65 | 62 | |
Business loans | Commercial borrower | Domestic loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 8 | 115 | |
Business loans | Commercial borrower | Domestic loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 4 | 33 | |
Business loans | Commercial borrower | International loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 0 | |
Nonaccrual loans | 0 | 0 | |
Current loans | [1] | 1,036 | 926 |
Total loans | 1,036 | 926 | |
Business loans | Commercial borrower | International loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 0 | |
Business loans | Commercial borrower | International loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 0 | |
Business loans | Commercial borrower | International loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 0 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 4 | 40 | |
Nonaccrual loans | 4 | 1 | |
Current loans | [1] | 3,164 | 4,041 |
Total loans | 3,172 | 4,082 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 40 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 0 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 4 | 0 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Commercial Real Estate business line | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [2] | 0 | 31 |
Nonaccrual loans | [2] | 0 | 0 |
Current loans | [1],[2] | 2,707 | 3,626 |
Total loans | [2] | 2,707 | 3,657 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Commercial Real Estate business line | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [2] | 0 | 31 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Commercial Real Estate business line | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [2] | 0 | 0 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Commercial Real Estate business line | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [2] | 0 | 0 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Other business lines | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [3] | 4 | 9 |
Nonaccrual loans | [3] | 4 | 1 |
Current loans | [1],[3] | 457 | 415 |
Total loans | [3] | 465 | 425 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Other business lines | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [3] | 0 | 9 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Other business lines | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [3] | 0 | 0 |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Other business lines | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [3] | 4 | 0 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 69 | 145 | |
Nonaccrual loans | 31 | 29 | |
Current loans | [1] | 11,234 | 9,738 |
Total loans | 11,334 | 9,912 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 51 | 99 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 8 | 41 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 10 | 5 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Commercial Real Estate business line | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [2] | 28 | 52 |
Nonaccrual loans | [2] | 2 | 3 |
Current loans | [1],[2] | 3,530 | 2,218 |
Total loans | [2] | 3,560 | 2,273 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Commercial Real Estate business line | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [2] | 28 | 51 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Commercial Real Estate business line | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [2] | 0 | 1 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Commercial Real Estate business line | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [2] | 0 | 0 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Other business lines | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [3] | 41 | 93 |
Nonaccrual loans | [3] | 29 | 26 |
Current loans | [1],[3] | 7,704 | 7,520 |
Total loans | [3] | 7,774 | 7,639 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Other business lines | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [3] | 23 | 48 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Other business lines | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [3] | 8 | 40 |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Other business lines | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | [3] | 10 | 5 |
Business loans | Commercial borrower | Lease financing | Domestic loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 40 | 15 | |
Nonaccrual loans | 0 | 1 | |
Current loans | [1] | 549 | 578 |
Total loans | 589 | 594 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 40 | 14 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 0 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 1 | |
Retail loans | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 32 | 39 | |
Nonaccrual loans | 55 | 64 | |
Current loans | [1] | 3,803 | 3,921 |
Total loans | 3,890 | 4,024 | |
Retail loans | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 10 | 28 | |
Retail loans | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 13 | 5 | |
Retail loans | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 9 | 6 | |
Retail loans | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 15 | 15 | |
Nonaccrual loans | 41 | 47 | |
Current loans | [1] | 1,751 | 1,768 |
Total loans | 1,807 | 1,830 | |
Retail loans | Residential mortgage | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 7 | 11 | |
Retail loans | Residential mortgage | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 6 | 4 | |
Retail loans | Residential mortgage | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 2 | 0 | |
Retail loans | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 17 | 24 | |
Nonaccrual loans | 14 | 17 | |
Current loans | [1] | 2,052 | 2,153 |
Total loans | 2,083 | 2,194 | |
Retail loans | Home equity | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 3 | 17 | |
Retail loans | Home equity | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 7 | 1 | |
Retail loans | Home equity | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 7 | 6 | |
Retail loans | Home equity | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 2 | 8 | |
Nonaccrual loans | 14 | 17 | |
Current loans | [1] | 1,532 | 1,563 |
Total loans | 1,548 | 1,588 | |
Retail loans | Home equity | Home equity | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 2 | 7 | |
Retail loans | Home equity | Home equity | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 1 | |
Retail loans | Home equity | Home equity | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 0 | 0 | |
Retail loans | Home equity | Other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 15 | 16 | |
Nonaccrual loans | 0 | 0 | |
Current loans | [1] | 520 | 590 |
Total loans | 535 | 606 | |
Retail loans | Home equity | Other consumer | 30 to 59 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 1 | 10 | |
Retail loans | Home equity | Other consumer | 60 to 89 days past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | 7 | 0 | |
Retail loans | Home equity | Other consumer | 90 days or more past due and still accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Loans past due and still accruing | $ 7 | $ 6 | |
[1] | Includes $45 million and $141 million of loans with deferred payments not considered past due in accordance with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) at June 30, 2021 and December 31, 2020, respectively. | ||
[2] | Primarily loans to real estate developers. | ||
[3] | Primarily loans secured by owner-occupied real estate. |
Credit Quality And Allowance _5
Credit Quality And Allowance For Credit Losses (Loans By Credit Quality Indicator and Vintage Year) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | $ 50,228 | $ 52,291 | ||
Financing Receivable, Originated in Current Fiscal Year | 5,132 | 9,714 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 7,746 | 5,957 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 5,430 | 4,523 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 3,886 | 3,243 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 2,623 | 1,913 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 5,090 | 4,282 | ||
Financing Receivable, Revolving | 20,246 | 22,570 | ||
Financing Receivable, Revolving, Converted to Term Loan | 75 | 89 | ||
Business loans | Commercial borrower | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 46,338 | 48,267 | ||
Financing Receivable, Originated in Current Fiscal Year | 4,857 | 8,955 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 7,028 | 5,702 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 5,213 | 4,388 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 3,777 | 3,038 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 2,484 | 1,712 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 4,526 | 3,795 | ||
Financing Receivable, Revolving | 18,437 | 20,658 | ||
Financing Receivable, Revolving, Converted to Term Loan | 16 | 19 | ||
Business loans | Commercial borrower | Domestic loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 30,207 | 32,753 | ||
Financing Receivable, Originated in Current Fiscal Year | 3,374 | 6,021 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 3,900 | 2,597 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 2,081 | 1,754 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,414 | 1,167 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 887 | 493 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,129 | 921 | ||
Financing Receivable, Revolving | 17,406 | 19,781 | ||
Financing Receivable, Revolving, Converted to Term Loan | 16 | 19 | ||
Business loans | Commercial borrower | Domestic loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 28,680 | 30,538 | |
Financing Receivable, Originated in Current Fiscal Year | [1],[2] | 3,319 | 5,991 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [1] | 3,819 | [2] | 2,316 |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [1] | 1,876 | 1,563 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [1] | 1,278 | 1,051 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [1] | 823 | 429 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [1] | 969 | 755 | |
Financing Receivable, Revolving | [1] | 16,582 | 18,416 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 14 | 17 | |
Business loans | Commercial borrower | Domestic loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 1,527 | 2,215 | |
Financing Receivable, Originated in Current Fiscal Year | [3] | 55 | 30 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [3] | 81 | 281 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [3] | 205 | 191 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [3] | 136 | 116 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [3] | 64 | 64 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [3] | 160 | 166 | |
Financing Receivable, Revolving | [3] | 824 | 1,365 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 2 | 2 | |
Business loans | Commercial borrower | International loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,036 | 926 | ||
Financing Receivable, Originated in Current Fiscal Year | 219 | 287 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 159 | 169 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 146 | 121 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 49 | 15 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 10 | 10 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 63 | 66 | ||
Financing Receivable, Revolving | 390 | 258 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Business loans | Commercial borrower | International loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 980 | 861 | |
Financing Receivable, Originated in Current Fiscal Year | [1] | 199 | 274 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [1] | 145 | 161 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [1] | 143 | 103 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [1] | 48 | 11 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [1] | 6 | 3 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [1] | 54 | 64 | |
Financing Receivable, Revolving | [1] | 385 | 245 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Business loans | Commercial borrower | International loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 56 | 65 | |
Financing Receivable, Originated in Current Fiscal Year | [3] | 20 | 13 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [3] | 14 | 8 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [3] | 3 | 18 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [3] | 1 | 4 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [3] | 4 | 7 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [3] | 9 | 2 | |
Financing Receivable, Revolving | [3] | 5 | 13 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 3,172 | 4,082 | ||
Financing Receivable, Originated in Current Fiscal Year | 142 | 436 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 731 | 1,108 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 1,182 | 1,249 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 574 | 639 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 302 | 335 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 89 | 142 | ||
Financing Receivable, Revolving | 152 | 173 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Business loans | Commercial borrower | Real estate construction | Domestic loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 3,102 | 4,035 | |
Financing Receivable, Originated in Current Fiscal Year | [1] | 142 | 433 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [1] | 728 | 1,080 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [1] | 1,152 | 1,244 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [1] | 557 | 631 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [1] | 294 | 335 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [1] | 80 | 141 | |
Financing Receivable, Revolving | [1] | 149 | 171 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Business loans | Commercial borrower | Real estate construction | Domestic loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 70 | 47 | |
Financing Receivable, Originated in Current Fiscal Year | [3] | 0 | 3 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [3] | 3 | 28 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [3] | 30 | 5 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [3] | 17 | 8 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [3] | 8 | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [3] | 9 | 1 | |
Financing Receivable, Revolving | [3] | 3 | 2 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 11,334 | 9,912 | ||
Financing Receivable, Originated in Current Fiscal Year | 1,067 | 2,100 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 2,136 | 1,689 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 1,674 | 1,188 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,672 | 1,165 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 1,238 | 859 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 3,058 | 2,465 | ||
Financing Receivable, Revolving | 489 | 446 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 10,927 | 9,399 | |
Financing Receivable, Originated in Current Fiscal Year | [1] | 1,064 | 2,053 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [1] | 2,088 | 1,559 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [1] | 1,611 | 1,146 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [1] | 1,636 | 1,120 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [1] | 1,206 | 818 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [1] | 2,848 | 2,272 | |
Financing Receivable, Revolving | [1] | 474 | 431 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Business loans | Commercial borrower | Commercial mortgage | Domestic loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 407 | 513 | |
Financing Receivable, Originated in Current Fiscal Year | [3] | 3 | 47 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [3] | 48 | 130 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [3] | 63 | 42 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [3] | 36 | 45 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [3] | 32 | 41 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [3] | 210 | 193 | |
Financing Receivable, Revolving | [3] | 15 | 15 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 589 | 594 | ||
Financing Receivable, Originated in Current Fiscal Year | 55 | 111 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 102 | 139 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 130 | 76 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 68 | 52 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 47 | 15 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 187 | 201 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Business loans | Commercial borrower | Lease financing | Domestic loans | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 553 | 567 | |
Financing Receivable, Originated in Current Fiscal Year | [1] | 55 | 109 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [1] | 100 | 122 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [1] | 108 | 71 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [1] | 58 | 50 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [1] | 46 | 14 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [1] | 186 | 201 | |
Financing Receivable, Revolving | [1] | 0 | 0 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Business loans | Commercial borrower | Lease financing | Domestic loans | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 36 | 27 | |
Financing Receivable, Originated in Current Fiscal Year | [3] | 0 | 2 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [3] | 2 | 17 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [3] | 22 | 5 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [3] | 10 | 2 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [3] | 1 | 1 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [3] | 1 | 0 | |
Financing Receivable, Revolving | [3] | 0 | 0 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Retail loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 3,890 | 4,024 | ||
Financing Receivable, Originated in Current Fiscal Year | 275 | 759 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 718 | 255 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 217 | 135 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 109 | 205 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 139 | 201 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 564 | 487 | ||
Financing Receivable, Revolving | 1,809 | 1,912 | ||
Financing Receivable, Revolving, Converted to Term Loan | 59 | 70 | ||
Retail loans | Residential mortgage | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,807 | 1,830 | ||
Financing Receivable, Originated in Current Fiscal Year | 225 | 646 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 637 | 232 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 199 | 121 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 99 | 203 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 138 | 198 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 509 | 430 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Retail loans | Residential mortgage | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 1,760 | 1,779 | |
Financing Receivable, Originated in Current Fiscal Year | [1] | 219 | 639 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [1] | 636 | 230 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [1] | 197 | 119 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [1] | 96 | 197 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [1] | 131 | 196 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [1] | 481 | 398 | |
Financing Receivable, Revolving | [1] | 0 | 0 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Retail loans | Residential mortgage | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 47 | 51 | |
Financing Receivable, Originated in Current Fiscal Year | [3] | 6 | 7 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [3] | 1 | 2 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [3] | 2 | 2 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [3] | 3 | 6 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [3] | 7 | 2 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [3] | 28 | 32 | |
Financing Receivable, Revolving | [3] | 0 | 0 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 0 | 0 | |
Retail loans | Home equity | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 2,083 | 2,194 | ||
Financing Receivable, Originated in Current Fiscal Year | 50 | 113 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 81 | 23 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 18 | 14 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 10 | 2 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 1 | 3 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 55 | 57 | ||
Financing Receivable, Revolving | 1,809 | 1,912 | ||
Financing Receivable, Revolving, Converted to Term Loan | 59 | 70 | ||
Retail loans | Home equity | Home equity | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,548 | 1,588 | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 14 | 16 | ||
Financing Receivable, Revolving | 1,475 | 1,502 | ||
Financing Receivable, Revolving, Converted to Term Loan | 59 | 70 | ||
Retail loans | Home equity | Home equity | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 1,531 | 1,567 | |
Financing Receivable, Originated in Current Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [1] | 0 | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [1] | 14 | 15 | |
Financing Receivable, Revolving | [1] | 1,464 | 1,489 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 53 | 63 | |
Retail loans | Home equity | Home equity | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 17 | 21 | |
Financing Receivable, Originated in Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [3] | 0 | 1 | |
Financing Receivable, Revolving | [3] | 11 | 13 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | 6 | 7 | |
Retail loans | Home equity | Other consumer | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 535 | 606 | ||
Financing Receivable, Originated in Current Fiscal Year | 50 | 113 | ||
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 81 | 23 | ||
Financing Receivable, Originated Two Years before Latest Fiscal Year | 18 | 14 | ||
Financing Receivable, Originated Three Years before Latest Fiscal Year | 10 | 2 | ||
Financing Receivable, Originated Four Years before Latest Fiscal Year | 1 | 3 | ||
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 41 | 41 | ||
Financing Receivable, Revolving | 334 | 410 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Retail loans | Home equity | Other consumer | Pass | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | 519 | 598 | |
Financing Receivable, Originated in Current Fiscal Year | [1] | 50 | 113 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [1] | 81 | 23 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [1] | 18 | 12 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [1] | 9 | 2 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [1] | 1 | 3 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [1] | 34 | 41 | |
Financing Receivable, Revolving | [1] | 326 | 404 | |
Financing Receivable, Revolving, Converted to Term Loan | [1] | 0 | 0 | |
Retail loans | Home equity | Other consumer | Criticized | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [3] | 16 | 8 | |
Financing Receivable, Originated in Current Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | [3] | 0 | 2 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | [3] | 1 | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | [3] | 0 | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | [3] | 7 | 0 | |
Financing Receivable, Revolving | [3] | 8 | 6 | |
Financing Receivable, Revolving, Converted to Term Loan | [3] | $ 0 | $ 0 | |
[1] | Includes all loans not included in the categories of special mention, substandard or nonaccrual. | |||
[2] | Includes Small Business Administration Paycheck Protection Program (PPP) loans of $1.0 billion and $1.8 billion in 2021 and 2020, respectively, at June 30, 2021, and PPP loans of $3.5 billion in 2020 at December 31, 2020. | |||
[3] | Includes loans with an internal rating of special mention, substandard loans for which the accrual of interest has not been discontinued and nonaccrual loans. Special mention loans have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Accruing substandard loans have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans are also distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies on page F-59 in the Corporation's 2020 Annual Report. These categories are generally consistent with the "special mention" and "substandard" categories as defined by regulatory authorities. A minority of nonaccrual loans are consistent with the "doubtful" category. |
Credit Quality And Allowance _6
Credit Quality And Allowance For Credit Losses (Changes In The Allowance For Loan Losses And Related Loan Amounts) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jan. 01, 2021 | Jan. 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 807 | $ 978 | $ 992 | $ 668 | ||
Provision for credit losses | (135) | 138 | (317) | 549 | ||
Balance at end of period | $ 683 | $ 1,066 | $ 683 | $ 1,066 | ||
As a percentage of total loans | 1.36% | 1.99% | 1.36% | 1.99% | ||
As a percentage of total loans excluding PPP Loans | 1.44% | 2.15% | 1.44% | 2.15% | ||
Accounting Standards Update 2016-13 [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Reduction in business loans allowance for credit losses | $ 0 | $ (42) | ||||
Increase in retail loans allowance for credit losses | 0 | 25 | ||||
Day-one decrease in the overall allowance for credit losses | $ 0 | $ (17) | ||||
Financing Receivable | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 777 | $ 916 | $ 948 | $ 637 | ||
Loan charge-offs | (8) | (57) | (24) | (146) | ||
Recoveries on loans previously charged-off | 19 | 7 | 32 | 12 | ||
Net loan charge-offs | 11 | (50) | 8 | (134) | ||
Provision for credit losses | (136) | 141 | (304) | 521 | ||
Balance at end of period | $ 652 | $ 1,007 | $ 652 | $ 1,007 | ||
As a percentage of total loans | 1.30% | 1.88% | 1.30% | 1.88% | ||
As a percentage of total loans excluding PPP Loans | 1.37% | 2.03% | 1.37% | 2.03% | ||
Unused Commitments to Extend Credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 30 | $ 62 | $ 44 | $ 31 | ||
Provision for credit losses | 1 | (3) | (13) | 28 | ||
Balance at end of period | 31 | 59 | 31 | 59 | ||
Business loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | 731 | 913 | 930 | 629 | ||
Provision for credit losses | (130) | 130 | (326) | 538 | ||
Balance at end of period | $ 613 | $ 993 | $ 613 | $ 993 | ||
As a percentage of total loans | 1.32% | 2.01% | 1.32% | 2.01% | ||
As a percentage of total loans excluding PPP Loans | 1.41% | 2.18% | 1.41% | 2.18% | ||
Business loans | Financing Receivable | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 709 | $ 861 | $ 895 | $ 601 | ||
Loan charge-offs | (7) | (56) | (22) | (143) | ||
Recoveries on loans previously charged-off | 19 | 6 | 31 | 11 | ||
Net loan charge-offs | 12 | (50) | 9 | (132) | ||
Provision for credit losses | (132) | 132 | (315) | 516 | ||
Balance at end of period | $ 589 | $ 943 | $ 589 | $ 943 | ||
As a percentage of total loans | 1.27% | 1.91% | 1.27% | 1.91% | ||
As a percentage of total loans excluding PPP Loans | 1.35% | 2.07% | 1.35% | 2.07% | ||
Business loans | Unused Commitments to Extend Credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 22 | $ 52 | $ 35 | $ 28 | ||
Provision for credit losses | 2 | (2) | (11) | 22 | ||
Balance at end of period | 24 | 50 | 24 | 50 | ||
Retail loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | 76 | 65 | 62 | 39 | ||
Provision for credit losses | (5) | 8 | 9 | 11 | ||
Balance at end of period | $ 70 | $ 73 | $ 70 | $ 73 | ||
As a percentage of total loans | 1.80% | 1.82% | 1.80% | 1.82% | ||
Retail loans | Financing Receivable | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 68 | $ 55 | $ 53 | $ 36 | ||
Loan charge-offs | (1) | (1) | (2) | (3) | ||
Recoveries on loans previously charged-off | 0 | 1 | 1 | 1 | ||
Net loan charge-offs | (1) | 0 | (1) | (2) | ||
Provision for credit losses | (4) | 9 | 11 | 5 | ||
Balance at end of period | $ 63 | $ 64 | $ 63 | $ 64 | ||
As a percentage of total loans | 1.63% | 1.59% | 1.63% | 1.59% | ||
Retail loans | Unused Commitments to Extend Credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Balance at beginning of period | $ 8 | $ 10 | $ 9 | $ 3 | ||
Provision for credit losses | (1) | (1) | (2) | 6 | ||
Balance at end of period | $ 7 | $ 9 | $ 7 | $ 9 |
Credit Quality And Allowance _7
Credit Quality And Allowance For Credit Losses (Nonaccrual Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | $ 104 | $ 127 | |
Financing Receivable, Nonaccrual | 207 | 220 | |
Nonaccrual loans | 311 | 347 | |
Business loans | Commercial borrower | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | 49 | 63 | |
Financing Receivable, Nonaccrual | 207 | 220 | |
Nonaccrual loans | 256 | 283 | |
Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | 42 | 57 | |
Financing Receivable, Nonaccrual | 179 | 195 | |
Nonaccrual loans | 221 | 252 | |
Business loans | Commercial borrower | International loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans | 0 | 0 | |
Retail loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | 55 | 64 | |
Financing Receivable, Nonaccrual | 0 | 0 | |
Nonaccrual loans | 55 | 64 | |
Retail loans | Home equity | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans | 14 | 17 | |
Real estate construction | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans | 4 | 1 | |
Real estate construction | Commercial Real Estate business line | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans | [1] | 0 | 0 |
Real estate construction | Other business lines | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | [2] | 0 | 0 |
Financing Receivable, Nonaccrual | [2] | 4 | 1 |
Nonaccrual loans | [2] | 4 | 1 |
Commercial mortgage | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | 7 | 6 | |
Financing Receivable, Nonaccrual | 24 | 23 | |
Nonaccrual loans | 31 | 29 | |
Commercial mortgage | Commercial Real Estate business line | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | [1] | 1 | 1 |
Financing Receivable, Nonaccrual | [1] | 1 | 2 |
Nonaccrual loans | [1] | 2 | 3 |
Commercial mortgage | Other business lines | Business loans | Commercial borrower | Domestic loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | [2] | 6 | 5 |
Financing Receivable, Nonaccrual | [2] | 23 | 21 |
Nonaccrual loans | [2] | 29 | 26 |
Residential mortgage | Retail loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | 41 | 47 | |
Financing Receivable, Nonaccrual | 0 | 0 | |
Nonaccrual loans | 41 | 47 | |
Home equity | Retail loans | Home equity | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | 14 | 17 | |
Financing Receivable, Nonaccrual | 0 | 0 | |
Nonaccrual loans | 14 | 17 | |
Other consumer | Retail loans | Home equity | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual loans | $ 0 | 0 | |
Business Loans | Lease financing | Commercial borrower | Domestic loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Financing Receivable, Nonaccrual, No Allowance | 0 | ||
Financing Receivable, Nonaccrual | 1 | ||
Nonaccrual loans | $ 1 | ||
[1] | Primarily loans to real estate developers. | ||
[2] | Primarily loans secured by owner-occupied real estate. |
Credit Quality And Allowance _8
Credit Quality And Allowance For Credit Losses Foreclosed Properties (Details) $ in Millions | Dec. 31, 2020USD ($) |
Nonaccrual Loans [Abstract] | |
Foreclosed property | $ 8 |
Credit Quality And Allowance _9
Credit Quality And Allowance For Credit Losses (Troubled Debt Restructurings Subsequent Default) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Principal Deferrals | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | [1] | $ 0 | $ 17 | ||
Principal Deferrals | Business loans | Commercial borrower | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 17 | ||||
Principal Deferrals | Business loans | Commercial borrower | Domestic loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | [1] | 16 | |||
Principal Deferrals | Business loans | Commercial mortgage | Commercial borrower | Domestic loans | Other business lines | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | [1],[2] | 1 | |||
Principal Deferrals | Retail loans | Home equity | Home equity | Domestic loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | [1],[3] | 0 | 0 | ||
Principal Deferrals | Retail loans | Residential mortgage | Domestic loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | [1] | $ 0 | $ 0 | ||
Interest Rate Reductions | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 7 | $ 7 | |||
Interest Rate Reductions | Business loans | Commercial borrower | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 0 | ||||
Interest Rate Reductions | Business loans | Commercial borrower | Domestic loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | 0 | ||||
Interest Rate Reductions | Business loans | Commercial mortgage | Commercial borrower | Domestic loans | Other business lines | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | [2] | 0 | |||
Interest Rate Reductions | Retail loans | Home equity | Home equity | Domestic loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | [3] | 1 | 1 | ||
Interest Rate Reductions | Retail loans | Residential mortgage | Domestic loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring, Postmodification | $ 6 | $ 6 | |||
[1] | Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy. | ||||
[2] | Primarily loans secured by owner-occupied real estate. | ||||
[3] | Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. |
Derivative And Credit-Related_3
Derivative And Credit-Related Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Cash received as collateral for derivative assets | $ 17 | $ 17 | |||
Fair value of securities pledged as collateral for derivative assets | 40 | 40 | |||
Cash posted as collateral for derivative liabilities | 544 | 544 | |||
Net cash flow hedge gains included in interest and fees on loans | 24 | $ 19 | 48 | $ 22 | |
Interest rate swap agreements maturity | 300 | 300 | |||
Net gain on open foreign currency positions | 0 | $ 0 | 0 | $ 0 | |
Allowance for credit losses on lending-related commitments | 31 | 31 | $ 44 | ||
Allowance for credit losses on lending-related commitments, amount related to unused commitments to extend credit | 28 | $ 28 | 37 | ||
Final year of expiration for outstanding letters of credit | 2028 | ||||
Standby and commercial letters of credit | 3,500 | $ 3,500 | 3,300 | ||
Risk participation agreements covering standby and commercial letters of credit | 144 | 144 | 150 | ||
Carrying value of standby and commercial letters of credit included in accrued expenses and other liabilities | 31 | 31 | 37 | ||
Deferred fees on standby and commercial letters of credit included in accrued expenses and other liabilities | 28 | 28 | 30 | ||
Allowance for credit losses on lending-related commitments, amount related to standby and commercial letters of credit | 3 | 3 | 7 | ||
Notional amount of derivative credit risk participation agreements | 1,000 | 1,000 | 1,100 | ||
Fair Value Amount of Derivative Credit Risk Participation Agreements | 1 | 1 | 3 | ||
Maximum estimated exposure to credit risk participation agreements assuming 100% default | $ 41 | $ 41 | $ 62 | ||
Weighted average remaining maturity of credit risk participation agreements, in years | 4 years 3 months |
Derivative And Credit-Related_4
Derivative And Credit-Related Financial Instruments (Schedule Of Derivative Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | $ 37,684 | $ 35,185 |
Fair Value of Gross Derivative Assets | 955 | 700 | |
Fair Value of Gross Derivative Liabilities | 647 | 229 | |
Derivative assets, Netting adjustment - Offsetting derivative liabilities | (46) | (83) | |
Derivative liabilities, Netting adjustment - Offsetting derivative assets | (46) | (83) | |
Derivative assets, Netting adjustment - Cash collateral received | (15) | (17) | |
Derivative liabilities, Netting adjustment, Cash collateral posted | (539) | (48) | |
Net derivative assets included in the Consolidated Balance Sheets | [2] | 894 | 600 |
Net derivative liabilities included in the Consolidated Balance Sheets | [2] | 62 | 98 |
Derivative asset, securities pledged as collateral | 0 | 0 | |
Derivative liability, securities pledged as collateral | (39) | (42) | |
Net derivative assets after deducting amounts not offset in the Consolidated Balance Sheets | 894 | 600 | |
Net derivative liabilities after deducting amounts not offset in the Consolidated Balance Sheets | 23 | 56 | |
Credit valuation adjustments for counterparty credit risk | 15 | 27 | |
Risk management purposes | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 8,390 | 8,642 |
Fair Value of Gross Derivative Assets | 1 | 1 | |
Fair Value of Gross Derivative Liabilities | 0 | 4 | |
Risk management purposes | Derivatives designated as hedging instruments | Swaps - fair value - receive fixed/pay floating | Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 2,650 | 2,650 |
Fair Value of Gross Derivative Assets | 0 | 0 | |
Fair Value of Gross Derivative Liabilities | 0 | 0 | |
Risk management purposes | Derivatives designated as hedging instruments | Swaps - cash flow - receive fixed/pay floating rate | Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 5,250 | 5,550 |
Fair Value of Gross Derivative Assets | 0 | 0 | |
Fair Value of Gross Derivative Liabilities | 0 | 0 | |
Risk management purposes | Derivatives used as economic hedges | Foreign exchange spot, forwards and swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 490 | 442 |
Fair Value of Gross Derivative Assets | 1 | 1 | |
Fair Value of Gross Derivative Liabilities | 0 | 4 | |
Customer-initiated and other activities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 29,294 | 26,543 |
Fair Value of Gross Derivative Assets | 954 | 699 | |
Fair Value of Gross Derivative Liabilities | 647 | 225 | |
Customer-initiated and other activities | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 22,673 | 21,521 |
Fair Value of Gross Derivative Assets | 367 | 531 | |
Fair Value of Gross Derivative Liabilities | 67 | 61 | |
Customer-initiated and other activities | Interest rate caps and floors written | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 838 | 869 |
Fair Value of Gross Derivative Assets | 0 | 0 | |
Fair Value of Gross Derivative Liabilities | 2 | 0 | |
Customer-initiated and other activities | Interest rate caps and floors purchased | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 838 | 869 |
Fair Value of Gross Derivative Assets | 2 | 0 | |
Fair Value of Gross Derivative Liabilities | 0 | 0 | |
Customer-initiated and other activities | Interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 20,997 | 19,783 |
Fair Value of Gross Derivative Assets | 365 | 531 | |
Fair Value of Gross Derivative Liabilities | 65 | 61 | |
Customer-initiated and other activities | Energy contracts | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 4,710 | 3,121 |
Fair Value of Gross Derivative Assets | 573 | 151 | |
Fair Value of Gross Derivative Liabilities | 570 | 149 | |
Customer-initiated and other activities | Energy caps and floors written | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 728 | 503 |
Fair Value of Gross Derivative Assets | 1 | 1 | |
Fair Value of Gross Derivative Liabilities | 96 | 33 | |
Customer-initiated and other activities | Energy caps and floors purchased | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 728 | 503 |
Fair Value of Gross Derivative Assets | 96 | 33 | |
Fair Value of Gross Derivative Liabilities | 1 | 1 | |
Customer-initiated and other activities | Energy swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 3,254 | 2,115 |
Fair Value of Gross Derivative Assets | 476 | 117 | |
Fair Value of Gross Derivative Liabilities | 473 | 115 | |
Customer-initiated and other activities | Foreign exchange spot, options and swaps | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [1] | 1,911 | 1,901 |
Fair Value of Gross Derivative Assets | 14 | 17 | |
Fair Value of Gross Derivative Liabilities | $ 10 | $ 15 | |
[1] | Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. | ||
[2] | Net derivative assets are included in accrued income and other assets and net derivative liabilities are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $15 million and $27 million at June 30, 2021 and December 31, 2020, respectively. |
Derivative And Credit-Related_5
Derivative And Credit-Related Financial Instruments Derivative and Credit-Related Financial Instruments (Schedule of the Effects of Fair Value Hedging on the Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Total interest on medium- and long-term debt | [1] | $ 9 | $ 19 | $ 18 | $ 59 |
Swaps - fair value - receive fixed/pay floating | Risk management purposes | Interest rate swap | |||||
Interest rate contract: Hedge items interest expense | 26 | 28 | 51 | 58 | |
Interest rate contracts: Derivatives designated as hedging instruments net interest income | $ (17) | $ (12) | $ (34) | $ (18) | |
[1] | Includes the effects of hedging. |
Derivative And Credit-Related_6
Derivative And Credit-Related Financial Instruments (Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Cash Flow Swaps) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Derivative, Notional Amount | [1] | $ 37,684 | $ 35,185 |
Risk management purposes | |||
Derivative, Notional Amount | [1] | 8,390 | 8,642 |
Variable rate loans | Swaps - cash flow - receive fixed/pay floating rate | Risk management purposes | Cash flow swap | |||
Derivative, Notional Amount | $ 5,250 | $ 5,550 | |
Weighted Average Remaining Maturity | 1 year 10 months 24 days | 2 years 3 months 18 days | |
Weighted Average Receive Rate | 1.85% | 1.87% | |
Weighted Average Pay Rate | [2] | 0.09% | 0.15% |
[1] | Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. | ||
[2] | Variable rates paid on receive fixed swaps designated as cash flow hedges are based on one-month LIBOR rates in effect at June 30, 2021 and December 31, 2020. |
Derivative And Credit-Related_7
Derivative And Credit-Related Financial Instruments Derivative And Credit-Related Financial Instruments (Schedule Of Weighted Average Maturity And Interest Rates On Risk Management Fair Value Swaps) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Derivative, Notional Amount | [1] | $ 37,684 | $ 35,185 |
Risk management purposes | |||
Derivative, Notional Amount | [1] | 8,390 | 8,642 |
Interest rate swap | Fair Value Hedging [Member] | Risk management purposes | Long-term Debt [Member] | |||
Derivative, Notional Amount | 2,650 | 2,650 | |
Carrying Value of Hedged Item | [2] | $ 2,854 | $ 2,928 |
Weighted Average Remaining Maturity | 4 years 1 month 6 days | 4 years 7 months 6 days | |
Weighted Average Receive Rate | 3.68% | 3.68% | |
Weighted Average Pay Rate | [3] | 1.10% | 1.16% |
[1] | Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets. | ||
[2] | Included $203 million and $279 million of cumulative hedging adjustments at June 30, 2021 and December 31, 2020, respectively, which included $5 million and $6 million, respectively, of hedging adjustment on a discontinued hedging relationship. | ||
[3] | Variable rates paid on receive fixed swaps designated as fair value hedges are based on one- and six-month LIBOR rates in effect at June 30, 2021 and December 31, 2020. |
Derivative And Credit-Related_8
Derivative And Credit-Related Financial Instruments (Schedule Of Net Gains Recognized In Income On Customer-Initiated Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative gain recognized in income | $ 22 | $ 19 | $ 52 | $ 39 |
Customer-initiated and other activities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative gain recognized in income | 22 | 19 | 52 | 39 |
Interest rate contracts | Customer-initiated and other activities | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative gain recognized in income | 9 | 8 | 24 | 16 |
Energy contracts | Customer-initiated and other activities | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative gain recognized in income | 2 | 2 | 6 | 3 |
Foreign exchange contracts | Customer-initiated and other activities | Foreign exchange income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative gain recognized in income | $ 11 | $ 9 | $ 22 | $ 20 |
Derivative And Credit-Related_9
Derivative And Credit-Related Financial Instruments (Schedule Of Financial Instruments With Off-Balance Sheet Credit Risk) (Details) - Maximum - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Unused Commitments to Extend Credit | ||
Loss contingency, estimate of possible loss | $ 29,070 | $ 26,740 |
Commercial And Other | Unused Commitments to Extend Credit | ||
Loss contingency, estimate of possible loss | 25,676 | 23,443 |
Bankcard, Revolving Check Credit And Home Equity Loan Commitments | Unused Commitments to Extend Credit | ||
Loss contingency, estimate of possible loss | 3,394 | 3,297 |
Standby Letters Of Credit | ||
Loss contingency, estimate of possible loss | 3,433 | 3,273 |
Commercial Letters Of Credit | ||
Loss contingency, estimate of possible loss | $ 40 | $ 30 |
Derivative And Credit-Relate_10
Derivative And Credit-Related Financial Instruments (Summary Of Internally Classified Watch List Letters Of Credit) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total criticized standby and commercial letters of credit | $ 43 | $ 73 |
As a percentage of total outstanding standby and commercial letters of credit | 1.20% | 2.20% |
Variable Interest Entities (V_3
Variable Interest Entities (VIEs) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Variable Interest Entity | |||
Unfunded commitments to fund tax credit entities | $ 164 | ||
Amount of financial or other support not contractually required provided by the Corporation to VIEs | $ 0 | $ 0 | |
Low Income Housing Tax Credit Entities | |||
Variable Interest Entity | |||
Exposure to loss as a result of involvement with VIEs | 452 | 452 | |
Other Tax Credit Entities [Member] | |||
Variable Interest Entity | |||
Exposure to loss as a result of involvement with VIEs | $ 12 | $ 12 |
Variable Interest Entities (V_4
Variable Interest Entities (VIEs) (Impact Of VIEs On The Consolidated Statements Of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Variable Interest Entity | ||||||
Provision for income taxes | $ 93 | $ 28 | [1] | $ 191 | $ 9 | [1] |
Variable Interest Entity | ||||||
Variable Interest Entity | ||||||
Provision for income taxes | (3) | (2) | (6) | (5) | ||
Low income housing tax credits | Variable Interest Entity | ||||||
Variable Interest Entity | ||||||
Provision for income taxes, amortization of LIHTC investments | 18 | 17 | 35 | 34 | ||
Provision for income taxes, affordable housing tax credits and other tax benefits | (17) | (16) | (33) | (32) | ||
Other tax benefits related to tax credit entities | Variable Interest Entity | ||||||
Variable Interest Entity | ||||||
Provision for income taxes, affordable housing tax credits and other tax benefits | $ (4) | $ (3) | $ (8) | $ (7) | ||
[1] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. |
Medium- And Long-Term Debt (Nar
Medium- And Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Real estate-related loans securing FHLB advances | $ 18,500 | |
Pledged to the FHLB as collateral for potential future borrowings | 3,200 | |
Potential future borrowings | 11,900 | |
Unamortized debt issuance cost | $ 8 | $ 10 |
Medium- And Long-Term Debt (Sch
Medium- And Long-Term Debt (Schedule Of Medium- And Long-Term Debt) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | |||
Total Medium- and long-term debt | $ 2,854 | $ 5,728 | |
Parent Company | |||
Debt Instrument [Line Items] | |||
Medium- and long-term notes | 1,499 | 1,538 | |
Total Medium- and long-term debt | 1,770 | 1,818 | |
Subsidiaries | |||
Debt Instrument [Line Items] | |||
Subordinated notes | 569 | 587 | |
Medium- and long-term notes | 515 | 523 | |
Long-term Federal Home Loan Bank Advances | 0 | 2,800 | |
Total Medium- and long-term debt | 1,084 | 3,910 | |
3.80% subordinated notes due 2026 | Parent Company | |||
Debt Instrument [Line Items] | |||
Subordinated notes | [1] | $ 271 | 280 |
Stated interest rate | 3.80% | ||
Maturity year | 2026 | ||
3.70% Notes Due 2023 | Parent Company | |||
Debt Instrument [Line Items] | |||
Medium- and long-term notes | [1] | $ 892 | 905 |
Stated interest rate | 3.70% | ||
Maturity year | 2023 | ||
4.00% Notes Due 2029 | Parent Company | |||
Debt Instrument [Line Items] | |||
Medium- and long-term notes | [1] | $ 607 | 633 |
Stated interest rate | 4.00% | ||
Maturity year | 2029 | ||
4.00% subordinated notes due 2025 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Subordinated notes | [1] | $ 371 | 380 |
Stated interest rate | 4.00% | ||
Maturity year | 2025 | ||
7.875% subordinated notes due 2026 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Subordinated notes | [1] | $ 198 | 207 |
Stated interest rate | 7.875% | ||
Maturity year | 2026 | ||
2.50% notes due 2024 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Medium- and long-term notes | [1] | $ 515 | 523 |
Stated interest rate | 2.50% | ||
Maturity year | 2024 | ||
Floating-rate based on FHLB auction rate due 2026 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Maturity year | 2026 | ||
Floating-rate based on FHLB auction rate due 2026 | Subsidiaries | |||
Debt Instrument [Line Items] | |||
Long-term Federal Home Loan Bank Advances | $ 0 | $ 2,800 | |
[1] | The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||
Investment securities, Balance at beginning of period, net of tax | $ 211 | $ 65 | ||||||||
Net unrealized holding (losses) gains arising during the period | (184) | 286 | ||||||||
Investment securities, Less: (Benefit) provision for income taxes | (43) | 68 | ||||||||
Investment securities, Change in net unrealized gains on investment securities, net of tax | (141) | 218 | ||||||||
Investment securities, Balance at end of period, net of tax | $ 70 | $ 283 | 70 | 283 | ||||||
Cash flow hedges, Balance at beginning of period, net of tax | 155 | 34 | ||||||||
Cash flow hedges, Net (losses) gains arising during the period | (16) | 233 | ||||||||
Cash flow hedges, Less: (Benefit) provision for income tax | (4) | 56 | ||||||||
Change in net cash flow hedge gains arising during the period, net of tax | (12) | 177 | ||||||||
Net cash flow hedge gains included in interest and fees on loans | 24 | 19 | 48 | 22 | ||||||
Cash flow hedges, Less: Provision for income taxes | 11 | 7 | ||||||||
Cash flow hedges, reclassification adjustment for net cash flow hedge gains included in net income, net of tax | 37 | 15 | ||||||||
Change in net cash flow hedge gains, net of tax | (49) | 162 | ||||||||
Cash flow hedges, Balance at end of period, net of tax | [1] | 106 | 196 | 106 | 196 | |||||
Benefit plans, Balance at beginning of period, net of tax | [2] | (302) | (415) | |||||||
Benefit plans, Actuarial loss arising during the period | [2] | 0 | (6) | |||||||
Benefit plans, Less: Benefit for income taxes | [2] | 0 | (1) | |||||||
Benefit plans, Net defined benefit pension and other postretirement adjustment arising during the period, net of tax | [2] | 0 | (5) | |||||||
Benefit plans, Amortization of actuarial net loss | [2] | 20 | 23 | |||||||
Benefit plans, Amortization of prior service credit | (12) | (14) | ||||||||
Benefit plans, Amounts recognized in other noninterest expenses | [2] | 8 | 9 | |||||||
Benefit plans, Less: Provision for income taxes | [2] | 2 | 2 | |||||||
Benefit plans, Adjustment for amounts recognized as components of net periodic benefit cost during the period, net of tax | [2] | 6 | 7 | |||||||
Benefit plans, Change in defined benefit pension and other postretirement plans adjustment, net of tax | [2] | 6 | 2 | |||||||
Benefit plans, Balance at end of period, net of tax | [2] | (296) | (413) | (296) | (413) | |||||
Total accumulated other comprehensive (loss) income at end of period, net of tax | $ (120) | [2] | $ 66 | [2] | $ (120) | [2] | $ 66 | [2] | $ 64 | |
[1] | The Corporation expects to reclassify $64 million of gains, net of tax, from accumulated other comprehensive loss to earnings over the next twelve months if interest yield curves and notional amounts remain at June 30, 2021 levels. | |||||||||
[2] | Balances at beginning of period, net of tax, and changes for the six months ended June 30, 2021 have been recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of the qualified defined benefit pension plan as of January 1, 2021. Refer to Note 1 for further information. |
Net Income Per Common Share (Ba
Net Income Per Common Share (Basic And Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Earnings Per Share [Abstract] | ||||||
Net income | $ 328 | $ 118 | [1] | $ 678 | $ 59 | [1] |
Income allocated to participating securities | 2 | 1 | 3 | 1 | ||
Preferred stock dividends | 5 | 0 | 11 | 0 | ||
Net income attributable to common shares | $ 321 | $ 117 | $ 664 | $ 58 | ||
Basic average common shares | 136 | 139 | 138 | 140 | ||
Basic net income per common share | $ 2.35 | $ 0.85 | $ 4.81 | $ 0.42 | ||
Basic average common shares | 136 | 139 | 138 | 140 | ||
Net effect of the assumed exercise of stock options | 2 | 0 | 2 | 1 | ||
Diluted average common shares | 138 | 139 | 140 | 141 | ||
Diluted net income per common share | $ 2.32 | $ 0.84 | $ 4.76 | $ 0.42 | ||
[1] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. |
Net Income Per Common Share (An
Net Income Per Common Share (Ant-Dilutive Schedule) (Details) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Average outstanding options | 443 | 2,056 | 446 | 1,633 |
Minimum | Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Range of exercise prices | $ 79.01 | $ 39.10 | $ 70.18 | $ 39.10 |
Maximum | Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Range of exercise prices | $ 95.25 | $ 95.25 | $ 95.25 | $ 95.25 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Defined Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic defined benefit credit | $ (41) | $ (27) | ||||
Qualified Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 9 | $ 8 | [1] | 19 | 16 | [1] |
Interest Cost | 15 | 17 | [1] | 30 | 35 | [1] |
Expected return on plan assets | (51) | (45) | [1] | (101) | (91) | [1] |
Amortization of prior service credit | (4) | (5) | [1] | (9) | (10) | [1] |
Amortization of net loss | 8 | 10 | [1] | 15 | 19 | [1] |
Total other components of net benefit credit | (32) | (23) | [1] | (65) | (47) | [1] |
Net periodic defined benefit credit | (23) | (15) | [1] | (46) | (31) | [1] |
Non-Qualified Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 1 | 0 | 1 | 1 | ||
Interest Cost | 1 | 2 | 3 | 4 | ||
Amortization of prior service credit | (2) | (2) | (3) | (4) | ||
Amortization of net loss | 2 | 2 | 5 | 4 | ||
Total other components of net benefit credit | 1 | 2 | 5 | 4 | ||
Net periodic defined benefit credit | 2 | 2 | 6 | 5 | ||
Postretirement Benefit Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected return on plan assets | 0 | (1) | (1) | (1) | ||
Net periodic defined benefit credit | $ 0 | $ (1) | $ (1) | $ (1) | ||
[1] | Recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of defined pension benefit credit, effective January 1, 2021. For the three months ended June 30, 2020, expected return on plan assets increased $3 million and amortization of net loss was reduced by $3 million, resulting in an increase of $6 million to total other components of net benefit credit. For the six months ended June 30, 2020, expected return on plan assets increased $6 million and amortization of net loss was reduced by $8 million, resulting in an increase of $14 million to total other components of net benefit credit. Refer to Note 1 for further information. |
Income Taxes And Tax-Related _2
Income Taxes And Tax-Related Items Income Taxes And Tax-Related Items (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Unrecognized tax benefits | $ 20 | $ 19 |
Unrecognized Tax Benefits, Change Resulting from Settlements with Taxing Authorities | 6 | |
Tax-related interest and penalties payable | 6 | 6 |
Net deferred tax liabilities | (10) | |
Net deferred tax assets | 4 | |
State net operating loss carryforwards | 3 | 3 |
Valuation allowance for deferred tax assets | 3 | $ 3 |
Increase (Decrease) in Deferred Liabilities | $ (14) | |
Minimum | ||
Operating loss carryforwards, expiration year | 2021 | |
Maximum | ||
Operating loss carryforwards, expiration year | 2030 |
Contingent Liabilities (Narrati
Contingent Liabilities (Narrative) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Loss Contingencies [Line Items] | |
Estimated Litigation Liability | $ 15 |
Proceeds from Legal Settlements | 8 |
Pending Litigation | Minimum | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | 0 |
Pending Litigation | Maximum | |
Loss Contingencies [Line Items] | |
Loss contingency, estimate of possible loss | $ 48 |
Strategic Lines of Business a_3
Strategic Lines of Business and Markets (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021segmentsmarkets | |
Segment Reporting [Abstract] | |
Number of Major Business Segments | segments | 3 |
Number of Primary Market Segments | markets | 3 |
Strategic Lines of Business a_4
Strategic Lines of Business and Markets (Business Segment Financial Results) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||||
Net interest income (expense) | $ 465 | $ 471 | $ 908 | $ 984 | |||
Provision for credit losses | (135) | 138 | (317) | 549 | |||
Noninterest income | 284 | 247 | 554 | 484 | |||
Noninterest expenses | 463 | 434 | [1] | 910 | 851 | [1] | |
Provision (benefit) for income taxes | 93 | 28 | [1] | 191 | 9 | [1] | |
Net income | 328 | 118 | [1] | 678 | 59 | [1] | |
Net credit-related (recoveries) charge-offs | (11) | 50 | (8) | 134 | |||
Assets, average | 87,860 | 81,644 | 86,218 | 77,454 | |||
Loans, average | 49,828 | 53,498 | 50,206 | 51,551 | |||
Deposits, average | $ 75,520 | $ 64,282 | $ 73,467 | $ 60,524 | |||
Return on average assets | [2] | 1.50% | 0.58% | [1] | 1.59% | 0.15% | [1] |
Efficiency ratio | [3] | 61.66% | 60.11% | [1] | 62.10% | 57.79% | [1] |
Commercial Bank | |||||||
Net interest income (expense) | $ 402 | $ 402 | $ 784 | $ 782 | |||
Provision for credit losses | (123) | 117 | (300) | 513 | |||
Noninterest income | 167 | 144 | 326 | 271 | |||
Noninterest expenses | 204 | 203 | [1] | 419 | 395 | [1] | |
Provision (benefit) for income taxes | 111 | 47 | [1] | 224 | 28 | [1] | |
Net income | 377 | 179 | [1] | 767 | 117 | [1] | |
Net credit-related (recoveries) charge-offs | (12) | 48 | (10) | 131 | |||
Assets, average | 44,283 | 47,392 | 44,365 | 45,823 | |||
Loans, average | 42,350 | 45,914 | 42,625 | 44,253 | |||
Deposits, average | $ 43,682 | $ 36,318 | $ 42,399 | $ 33,274 | |||
Return on average assets | [2] | 3.21% | 1.51% | [1] | 3.38% | 0.51% | [1] |
Efficiency ratio | [3] | 35.95% | 37.18% | [1] | 37.76% | 37.55% | [1] |
Retail Bank | |||||||
Net interest income (expense) | $ 145 | $ 120 | $ 278 | $ 245 | |||
Provision for credit losses | (7) | 5 | (1) | 8 | |||
Noninterest income | 30 | 24 | 58 | 52 | |||
Noninterest expenses | 173 | 153 | [1] | 322 | 298 | [1] | |
Provision (benefit) for income taxes | 1 | (3) | [1] | 1 | (2) | [1] | |
Net income | 8 | (11) | [1] | 14 | (7) | [1] | |
Net credit-related (recoveries) charge-offs | 1 | 1 | 2 | 2 | |||
Assets, average | 3,395 | 3,306 | 3,428 | 3,085 | |||
Loans, average | 2,533 | 2,479 | 2,576 | 2,277 | |||
Deposits, average | $ 25,573 | $ 22,647 | $ 24,951 | $ 21,921 | |||
Return on average assets | [2] | 0.12% | (0.17%) | [1] | 0.11% | (0.05%) | [1] |
Efficiency ratio | [3] | 98.06% | 105.07% | [1] | 95.00% | 99.39% | [1] |
Wealth Management | |||||||
Net interest income (expense) | $ 43 | $ 40 | $ 85 | $ 81 | |||
Provision for credit losses | (4) | 16 | (16) | 28 | |||
Noninterest income | 71 | 66 | 138 | 136 | |||
Noninterest expenses | 77 | 73 | [1] | 153 | 143 | [1] | |
Provision (benefit) for income taxes | 9 | 3 | [1] | 19 | 9 | [1] | |
Net income | 32 | 14 | [1] | 67 | 37 | [1] | |
Net credit-related (recoveries) charge-offs | 0 | 1 | 0 | 1 | |||
Assets, average | 5,063 | 5,191 | 5,112 | 5,134 | |||
Loans, average | 4,936 | 5,077 | 4,998 | 5,007 | |||
Deposits, average | $ 5,103 | $ 4,217 | $ 4,965 | $ 4,120 | |||
Return on average assets | [2] | 2.40% | 1.11% | [1] | 2.55% | 1.45% | [1] |
Efficiency ratio | [3] | 66.85% | 68.18% | [1] | 68.31% | 65.36% | [1] |
Finance | |||||||
Net interest income (expense) | $ (127) | $ (95) | $ (244) | $ (139) | |||
Provision for credit losses | 0 | 0 | 0 | 0 | |||
Noninterest income | 9 | 11 | 21 | 25 | |||
Noninterest expenses | 1 | 1 | [1] | 1 | 1 | [1] | |
Provision (benefit) for income taxes | (26) | (20) | [1] | (51) | (28) | [1] | |
Net income | (93) | (65) | [1] | (173) | (87) | [1] | |
Net credit-related (recoveries) charge-offs | 0 | 0 | 0 | 0 | |||
Assets, average | 17,461 | 14,500 | 17,212 | 14,393 | |||
Loans, average | 0 | 0 | 0 | 0 | |||
Deposits, average | 944 | 950 | 964 | 1,043 | |||
Other | |||||||
Net interest income (expense) | 2 | 4 | 5 | 15 | |||
Provision for credit losses | (1) | 0 | 0 | 0 | |||
Noninterest income | 7 | 2 | 11 | 0 | |||
Noninterest expenses | 8 | 4 | [1] | 15 | 14 | [1] | |
Provision (benefit) for income taxes | (2) | 1 | [1] | (2) | 2 | [1] | |
Net income | 4 | 1 | [1] | 3 | (1) | [1] | |
Net credit-related (recoveries) charge-offs | 0 | 0 | 0 | 0 | |||
Assets, average | 17,658 | 11,255 | 16,101 | 9,019 | |||
Loans, average | 9 | 28 | 7 | 14 | |||
Deposits, average | $ 218 | $ 150 | $ 188 | $ 166 | |||
[1] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. | ||||||
[2] | Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. | ||||||
[3] | Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. |
Strategic Lines of Business a_5
Strategic Lines of Business and Markets (Market Segment Financial Results) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||||
Net interest income (expense) | $ 465 | $ 471 | $ 908 | $ 984 | |||
Provision for credit losses | (135) | 138 | (317) | 549 | |||
Noninterest income | 284 | 247 | 554 | 484 | |||
Noninterest expenses | 463 | 434 | [1] | 910 | 851 | [1] | |
Provision (benefit) for income taxes | 93 | 28 | [1] | 191 | 9 | [1] | |
Net income | 328 | 118 | [1] | 678 | 59 | [1] | |
Net credit-related (recoveries) charge-offs | (11) | 50 | (8) | 134 | |||
Assets, average | 87,860 | 81,644 | 86,218 | 77,454 | |||
Loans, average | 49,828 | 53,498 | 50,206 | 51,551 | |||
Deposits, average | $ 75,520 | $ 64,282 | $ 73,467 | $ 60,524 | |||
Return on average assets | [2] | 1.50% | 0.58% | [1] | 1.59% | 0.15% | [1] |
Efficiency ratio | [3] | 61.66% | 60.11% | [1] | 62.10% | 57.79% | [1] |
Michigan [Domain] | |||||||
Net interest income (expense) | $ 178 | $ 161 | $ 333 | $ 324 | |||
Provision for credit losses | (26) | 41 | (54) | 65 | |||
Noninterest income | 72 | 64 | 138 | 136 | |||
Noninterest expenses | 136 | 138 | [1] | 272 | 275 | [1] | |
Provision (benefit) for income taxes | 29 | 8 | [1] | 51 | 24 | [1] | |
Net income | 111 | 38 | [1] | 202 | 96 | [1] | |
Net credit-related (recoveries) charge-offs | 1 | 1 | 1 | 4 | |||
Assets, average | 12,830 | 13,617 | 12,851 | 13,223 | |||
Loans, average | 12,245 | 13,092 | 12,279 | 12,665 | |||
Deposits, average | $ 26,709 | $ 23,396 | $ 26,191 | $ 22,037 | |||
Return on average assets | [2] | 1.62% | 0.62% | [1] | 1.51% | 0.84% | [1] |
Efficiency ratio | [3] | 54.18% | 61.00% | [1] | 57.50% | 59.41% | [1] |
California [Domain] | |||||||
Net interest income (expense) | $ 174 | $ 169 | $ 346 | $ 345 | |||
Provision for credit losses | (24) | 47 | (78) | 93 | |||
Noninterest income | 41 | 34 | 89 | 67 | |||
Noninterest expenses | 116 | 98 | [1] | 220 | 191 | [1] | |
Provision (benefit) for income taxes | 29 | 13 | [1] | 69 | 30 | [1] | |
Net income | 94 | 45 | [1] | 224 | 98 | [1] | |
Net credit-related (recoveries) charge-offs | 0 | (1) | 1 | 7 | |||
Assets, average | 17,679 | 18,403 | 17,851 | 18,164 | |||
Loans, average | 17,515 | 18,249 | 17,702 | 17,978 | |||
Deposits, average | $ 20,582 | $ 17,410 | $ 20,221 | $ 16,985 | |||
Return on average assets | [2] | 1.75% | 0.98% | [1] | 2.13% | 1.09% | [1] |
Efficiency ratio | [3] | 53.63% | 48.08% | [1] | 50.33% | 46.32% | [1] |
Texas [Domain] | |||||||
Net interest income (expense) | $ 114 | $ 115 | $ 227 | $ 230 | |||
Provision for credit losses | (77) | 31 | (163) | 321 | |||
Noninterest income | 35 | 30 | 71 | 60 | |||
Noninterest expenses | 91 | 89 | [1] | 179 | 172 | [1] | |
Provision (benefit) for income taxes | 29 | 5 | [1] | 60 | (45) | [1] | |
Net income | 106 | 20 | [1] | 222 | (158) | [1] | |
Net credit-related (recoveries) charge-offs | (12) | 46 | (10) | 116 | |||
Assets, average | 10,615 | 11,555 | 10,627 | 11,340 | |||
Loans, average | 10,008 | 11,162 | 10,078 | 10,858 | |||
Deposits, average | $ 11,153 | $ 10,198 | $ 10,965 | $ 9,697 | |||
Return on average assets | [2] | 3.35% | 0.71% | [1] | 3.61% | (2.79%) | [1] |
Efficiency ratio | [3] | 61.35% | 61.06% | [1] | 60.13% | 59.24% | [1] |
Other Markets | |||||||
Net interest income (expense) | $ 124 | $ 117 | $ 241 | $ 209 | |||
Provision for credit losses | (7) | 19 | (22) | 70 | |||
Noninterest income | 120 | 106 | 224 | 196 | |||
Noninterest expenses | 111 | 104 | [1] | 223 | 198 | [1] | |
Provision (benefit) for income taxes | 34 | 21 | [1] | 64 | 26 | [1] | |
Net income | 106 | 79 | [1] | 200 | 111 | [1] | |
Net credit-related (recoveries) charge-offs | 0 | 4 | 0 | 7 | |||
Assets, average | 11,614 | 12,345 | 11,576 | 11,331 | |||
Loans, average | 10,048 | 10,998 | 10,139 | 10,051 | |||
Deposits, average | $ 15,914 | $ 12,178 | $ 14,938 | $ 10,596 | |||
Return on average assets | [2] | 2.51% | 2.40% | [1] | 2.53% | 1.92% | [1] |
Efficiency ratio | [3] | 45.41% | 46.21% | [1] | 47.92% | 48.65% | [1] |
Finance & Other | |||||||
Net interest income (expense) | $ (125) | $ (91) | $ (239) | $ (124) | |||
Provision for credit losses | (1) | 0 | 0 | 0 | |||
Noninterest income | 16 | 13 | 32 | 25 | |||
Noninterest expenses | 9 | 5 | [1] | 16 | 15 | [1] | |
Provision (benefit) for income taxes | (28) | (19) | [1] | (53) | (26) | [1] | |
Net income | (89) | (64) | [1] | (170) | (88) | [1] | |
Net credit-related (recoveries) charge-offs | 0 | 0 | 0 | 0 | |||
Assets, average | 35,122 | 25,724 | 33,313 | 23,396 | |||
Loans, average | 12 | (3) | 8 | (1) | |||
Deposits, average | $ 1,162 | $ 1,100 | $ 1,152 | $ 1,209 | |||
[1] | See Defined Benefit Pension and Other Postretirement Costs in Note 1. | ||||||
[2] | Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. | ||||||
[3] | Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains from securities and a derivative contract tied to the conversion rate of Visa Class B shares. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | $ 212 | $ 188 | $ 406 | $ 373 | |
Other sources of noninterest income | 72 | 59 | 148 | 111 | |
Total noninterest income | 284 | 247 | 554 | 484 | |
Commercial Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 115 | 104 | 218 | 193 | |
Other sources of noninterest income | 52 | 40 | 108 | 78 | |
Total noninterest income | 167 | 144 | 326 | 271 | |
Retail Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 27 | 21 | 54 | 49 | |
Other sources of noninterest income | 3 | 3 | 4 | 3 | |
Total noninterest income | 30 | 24 | 58 | 52 | |
Wealth Management | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 70 | 63 | 134 | 131 | |
Other sources of noninterest income | 1 | 3 | 4 | 5 | |
Total noninterest income | 71 | 66 | 138 | 136 | |
Finance & Other | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Other sources of noninterest income | 16 | 13 | 32 | 25 | |
Total noninterest income | 16 | 13 | 32 | 25 | |
Card fees | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 84 | 68 | 155 | 127 | |
Card fees | Commercial Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 72 | 59 | 132 | 108 | |
Card fees | Retail Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 11 | 8 | 21 | 17 | |
Card fees | Wealth Management | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 1 | 1 | 2 | 2 | |
Card fees | Finance & Other | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Fiduciary income | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 60 | 52 | 113 | 106 | |
Fiduciary income | Commercial Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Fiduciary income | Retail Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Fiduciary income | Wealth Management | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 60 | 52 | 113 | 106 | |
Fiduciary income | Finance & Other | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Service charges on deposit accounts | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 47 | 42 | 95 | 91 | |
Service charges on deposit accounts | Commercial Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 33 | 30 | 67 | 62 | |
Service charges on deposit accounts | Retail Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 13 | 11 | 26 | 27 | |
Service charges on deposit accounts | Wealth Management | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 1 | 1 | 2 | 2 | |
Service charges on deposit accounts | Finance & Other | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Commercial loan servicing fees | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [1] | 6 | 4 | 10 | 8 |
Commercial loan servicing fees | Commercial Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [1] | 6 | 4 | 10 | 8 |
Commercial loan servicing fees | Retail Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [1] | 0 | 0 | 0 | 0 |
Commercial loan servicing fees | Wealth Management | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [1] | 0 | 0 | 0 | 0 |
Commercial loan servicing fees | Finance & Other | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [1] | 0 | 0 | 0 | 0 |
Brokerage fees | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 4 | 5 | 8 | 12 | |
Brokerage fees | Commercial Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Brokerage fees | Retail Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Brokerage fees | Wealth Management | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 4 | 5 | 8 | 12 | |
Brokerage fees | Finance & Other | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Other noninterest income | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [2] | 11 | 17 | 25 | 29 |
Other noninterest income | Commercial Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [2] | 4 | 11 | 9 | 15 |
Other noninterest income | Retail Bank | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [2] | 3 | 2 | 7 | 5 |
Other noninterest income | Wealth Management | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [2] | 4 | 4 | 9 | 9 |
Other noninterest income | Finance & Other | |||||
Segment Reporting, Revenue Reconciling Item | |||||
Total revenue from contracts with customers | [2] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Included in commercial lending fees on the Consolidated Statements of Comprehensive Income. | ||||
[2] | Excludes derivative, warrant and other miscellaneous income. |