Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-33653 | |
Entity Registrant Name | FIFTH THIRD BANCORP | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 31-0854434 | |
Entity Address, Address Line One | 38 Fountain Square Plaza | |
Entity Address, City or Town | Cincinnati | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45263 | |
City Area Code | 800 | |
Local Phone Number | 972-3030 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 712,419,920 | |
Amendment Flag | false | |
Entity Central Index Key | 0000035527 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock, Without Par Value | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, Without Par Value | |
Trading Symbol | FITB | |
Security Exchange Name | NASDAQ | |
Series I Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I | |
Trading Symbol | FITBI | |
Security Exchange Name | NASDAQ | |
Class B Preferred stock, Series A | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A | |
Trading Symbol | FITBP | |
Security Exchange Name | NASDAQ | |
Series K Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 4.95% Non-Cumulative Perpetual Preferred Stock, Series K | |
Trading Symbol | FITBO | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and due from banks | $ 2,996 | $ 3,278 | |
Other short-term Investments | [1] | 31,285 | 1,950 |
Available-for-sale debt and other securities | [2] | 37,425 | 36,028 |
Held-to-maturity securities | [3] | 15 | 17 |
Trading debt securities | 704 | 297 | |
Equity securities | 277 | 564 | |
Loans and leases held for sale | [4] | 2,323 | 1,400 |
Portfolio loans and leases | [1],[5] | 110,731 | 109,558 |
Allowance for loan and lease losses | [1] | (2,574) | (1,202) |
Portfolio loans and leases, net | 108,157 | 108,356 | |
Bank premises and equipment | [6] | 2,090 | 1,995 |
Operating lease equipment | 818 | 848 | |
Goodwill | 4,261 | 4,252 | |
Intangible assets | 157 | 201 | |
Servicing rights | 660 | 993 | |
Other assets | [1] | 10,828 | 9,190 |
Total Assets | 201,996 | 169,369 | |
Deposits: | |||
Noninterest-bearing deposits | 51,896 | 35,968 | |
Interest-bearing deposits | 104,787 | 91,094 | |
Total deposits | 156,683 | 127,062 | |
Federal funds purchased | 251 | 260 | |
Other short-term borrowings | 1,196 | 1,011 | |
Accrued taxes, interest and expenses | 2,500 | 2,441 | |
Other liabilities | [1] | 3,292 | 2,422 |
Long-term debt | [1] | 15,123 | 14,970 |
Total Liabilities | 179,045 | 148,166 | |
Equity | |||
Common stock | [7] | 2,051 | 2,051 |
Preferred stock | [8] | 2,116 | 1,770 |
Capital surplus | 3,624 | 3,599 | |
Retained earnings | 18,010 | 18,315 | |
Accumulated other comprehensive income | 2,831 | 1,192 | |
Treasury stock | [7] | (5,681) | (5,724) |
Total Equity | 22,951 | 21,203 | |
Total Liabilities and Equity | $ 201,996 | $ 169,369 | |
[1] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. | ||
[2] | Amortized cost of $34,693 and $34,966 at September 30, 2020 and December 31, 2019, respectively. | ||
[3] | Fair value of $15 and $17 at September 30, 2020 and December 31, 2019, respectively. | ||
[4] | Includes $1,472 and $1,264 of residential mortgage loans held for sale measured at fair value at September 30, 2020 and December 31, 2019, respectively. | ||
[5] | Includes $174 and $183 of residential mortgage loans measured at fair value at September 30, 2020 and December 31, 2019, respectively. | ||
[6] | Includes $45 and $27 of bank premises and equipment held for sale at September 30, 2020 and December 31, 2019, respectively. | ||
[7] | Common shares: Stated value $2.22 per share; authorized 2,000,000,000; outstanding at September 30, 2020 – 712,327,748 (excludes 211,564,833 treasury shares), December 31, 2019 – 708,915,629 (excludes 214,976,952 treasury shares). | ||
[8] | (h) 500,000 shares of no par value preferred stock were authorized at both September 30, 2020 and December 31, 2019. There were 422,000 and 436,000 unissued shares of undesignated no par value preferred stock at September 30, 2020 and December 31, 2019, respectively. Each issued share of no par value preferred stock has a liquidation preference of $25,000. 500,000 shares of no par value Class B preferred stock were authorized at both September 30, 2020 and December 31, 2019. There were 300,000 unissued shares of undesignated no par value Class B preferred stock at both September 30, 2020 and December 31, 2019. Each issued share of no par value Class B preferred stock has a liquidation preference of $1,000. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Other short-term Investments | [1] | $ 31,285 | $ 1,950 |
ALLL | [1] | (2,574) | (1,202) |
Other assets | [1] | 10,828 | 9,190 |
Other liabilities | [1] | 3,292 | 2,422 |
Long-term debt | [1] | 15,123 | 14,970 |
Available-for-sale debt and other securities, amortized cost | 34,693 | 34,966 | |
Held-to-maturity securities, fair value | [2] | 15 | 17 |
Bank premises and equipment held for sale | $ 45 | $ 27 | |
Common stock, par value (in dollars per share) | $ 2.22 | $ 2.22 | |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |
Common stock, outstanding (in shares) | 712,327,748 | 708,915,629 | |
Treasury stock, shares (in shares) | 211,564,833 | 214,976,952 | |
Preferred stock, authorized (in shares) | 500,000 | 500,000 | |
Preferred stock, liquidation preference per share (in dollars per share) | $ 25,000 | $ 25,000 | |
Preferred stock, unissued (in shares) | 422,000 | 436,000 | |
Preferred Class B | |||
Preferred stock, authorized (in shares) | 500,000 | 500,000 | |
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 | |
Preferred stock, unissued (in shares) | 300,000 | 300,000 | |
Residential mortgage loans | |||
Loans measured at FV | $ 174 | $ 183 | |
Recurring | |||
Residential mortgage loans held for sale | 1,472 | 1,264 | |
Variable Interest Entity, Primary Beneficiary | Automobile loan | |||
Other short-term Investments | 61 | 74 | |
Portfolio loans and leases | 887 | 1,354 | |
ALLL | (9) | (7) | |
Other assets | 5 | 8 | |
Other liabilities | 2 | 2 | |
Long-term debt | $ 786 | $ 1,253 | |
[1] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. | ||
[2] | Fair value of $15 and $17 at September 30, 2020 and December 31, 2019, respectively. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Interest Income | |||||
Interest and fees on loans and leases | $ 1,047 | $ 1,320 | $ 3,397 | $ 3,799 | |
Interest on securities | 274 | 291 | 840 | 862 | |
Interest on other short-term investments | 8 | 14 | 20 | 33 | |
Total interest income | 1,329 | 1,625 | 4,257 | 4,694 | |
Interest Expense | |||||
Interest on deposits | 46 | 243 | 295 | 692 | |
Interest on federal funds purchased | 0 | 4 | 2 | 23 | |
Interest on other short-term borrowings | 5 | 8 | 13 | 23 | |
Interest on long-term debt | 108 | 128 | 347 | 387 | |
Total interest expense | 159 | 383 | 657 | 1,125 | |
Net Interest Income | 1,170 | 1,242 | 3,600 | 3,569 | |
Provision for (benefit from) credit losses | (15) | 134 | 1,110 | 310 | |
Net Interest Income After Provision for (Benefit from) Credit Losses | 1,185 | 1,108 | 2,490 | 3,259 | |
Noninterest Income: | |||||
Service charges on deposits | [1] | 144 | 143 | 414 | 417 |
Wealth and asset management revenue | [1] | 132 | 124 | 387 | 358 |
Commercial banking revenue | [1] | 125 | 123 | 387 | 333 |
Mortgage banking net revenue | [1] | 76 | 95 | 295 | 214 |
Card and processing revenue | [1] | 92 | 94 | 260 | 266 |
Leasing business revenue | [1] | 77 | 92 | 207 | 199 |
Other noninterest income | [1] | 26 | 64 | 42 | 679 |
Securities gains, net | [1] | 51 | 5 | 48 | 30 |
Securities gains (losses), net – non-qualifying hedges on mortgage servicing rights | [1] | (1) | 0 | 3 | 5 |
Total noninterest income | [1] | 722 | 740 | 2,043 | 2,501 |
Noninterest expense: | |||||
Compensation and benefits | [1] | 637 | 584 | 1,911 | 1,843 |
Technology and communications | [1] | 89 | 100 | 272 | 319 |
Net occupancy expense | [1] | 90 | 84 | 254 | 248 |
Leasing business expense | [1] | 35 | 40 | 103 | 97 |
Equipment expense | [1] | 33 | 33 | 97 | 96 |
Card and processing expense | [1] | 29 | 33 | 89 | 98 |
Marketing expense | [1] | 23 | 40 | 74 | 117 |
Other noninterest expense | [1] | 225 | 245 | 682 | 681 |
Total noninterest expense | [1] | 1,161 | 1,159 | 3,482 | 3,499 |
Income Before Income Taxes | 746 | 689 | 1,051 | 2,261 | |
Applicable income tax expense | 165 | 140 | 228 | 483 | |
Net Income | 581 | 549 | 823 | 1,778 | |
Dividends on preferred stock | 19 | 19 | 69 | 60 | |
Net Income Available to Common Shareholders | $ 562 | $ 530 | $ 754 | $ 1,718 | |
Shares Disclosures | |||||
Earnings per share - basic (in dollars per share) | $ 0.78 | $ 0.72 | $ 1.05 | $ 2.40 | |
Earnings per share - diluted (in dollars per share) | $ 0.78 | $ 0.71 | $ 1.04 | $ 2.37 | |
Average common shares outstanding - basic (in shares) | 715,102,136 | 726,715,542 | 714,477,089 | 708,848,535 | |
Average common shares outstanding - diluted (in shares) | 718,893,892 | 736,086,399 | 718,942,648 | 718,413,237 | |
[1] | During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 581 | $ 549 | $ 823 | $ 1,778 |
Unrealized gains on available-for-sale debt securities: | ||||
Unrealized holding gains (losses) arising during period | (32) | 379 | 1,306 | 1,387 |
Reclassification adjustment for net gains included in net income | (34) | (2) | (34) | (2) |
Unrealized gains on cash flow hedge derivatives: | ||||
Unrealized holding gains arising during period | 1 | 83 | 494 | 361 |
Reclassification adjustment for net gains included in net income | (56) | (4) | (130) | (2) |
Defined benefit pension plans, net: | ||||
Net actuarial loss arising during the year | (2) | 0 | (2) | 0 |
Reclassification of amounts to net periodic benefit costs | 3 | 1 | 5 | 3 |
Other comprehensive income, net of tax | (120) | 457 | 1,639 | 1,747 |
Comprehensive Income | $ 461 | $ 1,006 | $ 2,462 | $ 3,525 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Millions | Total | Series H Preferred Stock | Series I Preferred Stock | Series J Preferred Stock | Series K Preferred Stock | Series L Preferred Stock | Class B, Series A Preferred Stock | Other Preferred Stock | [1] | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock | Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance | Capital Surplus | Capital SurplusCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained EarningsSeries H Preferred Stock | Retained EarningsSeries I Preferred Stock | Retained EarningsSeries J Preferred Stock | Retained EarningsSeries K Preferred Stock | Retained EarningsSeries L Preferred Stock | Retained EarningsClass B, Series A Preferred Stock | Retained EarningsOther Preferred Stock | [1] | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance | Total Bancorp Shareholders’ Equity | Total Bancorp Shareholders’ EquitySeries H Preferred Stock | Total Bancorp Shareholders’ EquitySeries I Preferred Stock | Total Bancorp Shareholders’ EquitySeries J Preferred Stock | Total Bancorp Shareholders’ EquitySeries K Preferred Stock | Total Bancorp Shareholders’ EquitySeries L Preferred Stock | Total Bancorp Shareholders’ EquityClass B, Series A Preferred Stock | Total Bancorp Shareholders’ EquityOther Preferred Stock | [1] | Total Bancorp Shareholders’ EquityCumulative Effect, Period of Adoption, Adjustment | Total Bancorp Shareholders’ EquityCumulative Effect, Period of Adoption, Adjusted Balance | Non- Controlling Interests | Non- Controlling InterestsCumulative Effect, Period of Adoption, Adjusted Balance | |||
Beginning Balance at Dec. 31, 2018 | $ 16,250 | $ 10 | $ 16,260 | $ 2,051 | $ 2,051 | $ 1,331 | $ 1,331 | $ 2,873 | $ 2,873 | $ 16,578 | $ 10 | $ 16,588 | $ (112) | $ (112) | $ (6,471) | $ (6,471) | $ 16,250 | $ 10 | $ 16,260 | $ 0 | $ 0 | |||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | 1,778 | 1,778 | 1,778 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 1,747 | 1,747 | 1,747 | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | (518) | (518) | (518) | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | $ (15) | $ (23) | $ (15) | $ (1) | $ (6) | $ (15) | $ (23) | $ (15) | $ (1) | $ (6) | $ (15) | $ (23) | $ (15) | $ (1) | $ (6) | |||||||||||||||||||||||||||||||||
Shares acquired for treasury | (1,463) | (1,463) | (1,463) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 242 | 242 | 242 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of outstanding preferred stock issued by a Bancorp subsidiary | 0 | 197 | 197 | (197) | ||||||||||||||||||||||||||||||||||||||||||||
Impact of MB Financial, Inc. acquisition | 3,356 | 712 | 2,447 | 3,159 | 197 | |||||||||||||||||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 59 | 5 | 1 | 53 | 59 | |||||||||||||||||||||||||||||||||||||||||||
Other | 3 | (1) | (3) | 7 | 3 | |||||||||||||||||||||||||||||||||||||||||||
Ending Balance at Sep. 30, 2019 | 21,404 | 2,051 | 1,770 | 3,589 | 17,786 | 1,635 | (5,427) | 21,404 | 0 | |||||||||||||||||||||||||||||||||||||||
Beginning Balance at Jun. 30, 2019 | 20,671 | 2,051 | 1,331 | 3,572 | 17,431 | 1,178 | (5,089) | 20,474 | 197 | |||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | 549 | 549 | 549 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 457 | 457 | 457 | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | (175) | (175) | (175) | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | (8) | (7) | (1) | $ (3) | (8) | (7) | (1) | $ (3) | (8) | (7) | (1) | $ (3) | ||||||||||||||||||||||||||||||||||||
Shares acquired for treasury | (350) | (350) | (350) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 242 | 242 | 242 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of outstanding preferred stock issued by a Bancorp subsidiary | 0 | 197 | 197 | (197) | ||||||||||||||||||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 24 | 17 | 7 | 24 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 5 | 5 | 5 | |||||||||||||||||||||||||||||||||||||||||||||
Ending Balance at Sep. 30, 2019 | 21,404 | 2,051 | 1,770 | 3,589 | 17,786 | 1,635 | (5,427) | 21,404 | 0 | |||||||||||||||||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2019 | 21,203 | $ (472) | [2] | $ 20,731 | 2,051 | $ 2,051 | 1,770 | $ 1,770 | 3,599 | $ 3,599 | 18,315 | $ (472) | [2] | $ 17,843 | 1,192 | $ 1,192 | (5,724) | $ (5,724) | 21,203 | $ (472) | [2] | $ 20,731 | 0 | $ 0 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | 823 | 823 | 823 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 1,639 | 1,639 | 1,639 | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | (585) | (585) | (585) | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | $ (15) | (23) | (10) | $ (9) | $ (3) | (9) | $ (15) | (23) | (10) | $ (9) | $ (3) | (9) | $ (15) | (23) | (10) | $ (9) | $ (3) | (9) | ||||||||||||||||||||||||||||||
Issuance of preferred stock | 346 | 346 | 346 | |||||||||||||||||||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 66 | 25 | 41 | 66 | ||||||||||||||||||||||||||||||||||||||||||||
Other | 0 | (2) | 2 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance at Sep. 30, 2020 | 22,951 | 2,051 | 2,116 | 3,624 | 18,010 | 2,831 | (5,681) | 22,951 | 0 | |||||||||||||||||||||||||||||||||||||||
Beginning Balance at Jun. 30, 2020 | 22,335 | 2,051 | 1,770 | 3,603 | 17,643 | 2,951 | (5,683) | 22,335 | 0 | |||||||||||||||||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | 581 | 581 | 581 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | (120) | (120) | (120) | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | (195) | (195) | (195) | |||||||||||||||||||||||||||||||||||||||||||||
Preferred stock | $ (7) | $ (3) | $ (3) | $ (3) | $ (3) | $ (7) | $ (3) | $ (3) | $ (3) | $ (3) | $ (7) | $ (3) | $ (3) | $ (3) | $ (3) | |||||||||||||||||||||||||||||||||
Issuance of preferred stock | 346 | 346 | 346 | |||||||||||||||||||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 23 | 21 | 2 | 23 | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance at Sep. 30, 2020 | $ 22,951 | $ 2,051 | $ 2,116 | $ 3,624 | $ 18,010 | $ 2,831 | $ (5,681) | $ 22,951 | $ 0 | |||||||||||||||||||||||||||||||||||||||
[1] | Dividends declared for Perpetual Preferred Stock, Series C, of MB Financial, Inc., a subsidiary of the Bancorp. | |||||||||||||||||||||||||||||||||||||||||||||||
[2] | Related to the adoption of ASU 2016-13 as of January 1, 2020. Refer to Note 4 for additional information. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Common stock, per share (in dollars per share) | $ 0.27 | $ 0.24 | $ 0.81 | $ 0.70 |
Series H Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 637.50 | 637.50 | ||
Series I Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 414.06 | 414.06 | 1,242.18 | 1,242.18 |
Series J Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 219.65 | 612.50 | 829.58 | 1,225 |
Series K Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 309.38 | 928.14 | ||
Series L Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 187.50 | 187.50 | ||
Class B Preferred stock, Series A | ||||
Preferred stock, per share (in dollars per share) | $ 15 | 5.83 | $ 45 | 5.83 |
Other Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | $ 15 | $ 30 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities | ||
Net Income | $ 823 | $ 1,778 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 1,110 | 310 |
Depreciation, amortization and accretion | 358 | 289 |
Stock-based compensation expense | 100 | 109 |
Benefit from deferred income taxes | (174) | (197) |
Securities gains, net | (58) | (35) |
MSR fair value adjustment | 519 | 416 |
Net gains on sales of loans and fair value adjustments on loans held for sale | (206) | (96) |
Net losses on disposition and impairment of bank premises and equipment | 26 | 24 |
Net gains on disposition and impairment of operating lease equipment | (6) | (2) |
Gain on sale of Worldpay, Inc. shares | 0 | (562) |
Proceeds from sales of loans held for sale | 9,149 | 5,457 |
Loans originated or purchased for sale, net of repayments | (9,252) | (6,032) |
Dividends representing return on equity investments | 8 | 40 |
Net change in: | ||
Equity and trading debt securities | (107) | 66 |
Other assets | (444) | (714) |
Accrued taxes, interest and expenses and other liabilities | 169 | (406) |
Net Cash Provided by Operating Activities | 2,015 | 445 |
Proceeds from sales: | ||
AFS securities and other investments | 1,325 | 8,424 |
Loans and leases | 77 | 221 |
Bank premises and equipment | 16 | 35 |
Proceeds from repayments / maturities of AFS and HTM securities and other investments | 2,275 | 1,623 |
Purchases: | ||
AFS securities and other investments | (3,568) | (11,204) |
Bank premises and equipment | (235) | (180) |
MSRs | (36) | (26) |
Proceeds from settlement of BOLI | 16 | 21 |
Proceeds from sales and dividends representing return of equity investments | 12 | 1,028 |
Net cash received on acquisition | 0 | 1,210 |
Net change in: | ||
Other short-term investments and federal funds sold | (29,335) | (1,322) |
Portfolio loans and leases | (2,079) | (1,132) |
Operating lease equipment | (61) | (25) |
Net Cash Used in Investing Activities | (31,593) | (1,327) |
Financing Activities | ||
Net change in deposits | 29,621 | 2,027 |
Net change in other short-term borrowings and federal funds purchased | 126 | 2,157 |
Dividends paid on common and preferred stock | (629) | (546) |
Proceeds from issuance of long-term debt | 2,529 | 3,103 |
Repayment of long-term debt | (2,654) | (4,012) |
Repurchases of treasury stock and related forward contract | 0 | (1,463) |
Issuance of preferred stock | 346 | 242 |
Other | (43) | (46) |
Net Cash Provided by Financing Activities | 29,296 | 1,462 |
(Decrease) Increase in Cash and Due from Banks | (282) | 580 |
Cash and Due from Banks at Beginning of Period | 3,278 | 2,681 |
Cash and Due from Banks at End of Period | $ 2,996 | $ 3,261 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the equity method and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at fair value unless the investment does not have a readily determinable fair value. The Bancorp accounts for equity investments without a readily determinable fair value using the measurement alternative to fair value, representing the cost of the investment minus impairment recorded, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. Intercompany transactions and balances have been eliminated. In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, which consist of normal recurring accruals, necessary to present fairly the results for the periods presented. In accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial information, these statements do not include certain information and footnote disclosures required for complete annual financial statements and it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Bancorp’s Annual Report on Form 10-K. The results of operations, comprehensive income and changes in equity for the three and nine months ended September 30, 2020 and 2019 and the cash flows for the nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2019 has been derived from the Bancorp’s Annual Report on Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Certain prior period data has been reclassified to conform to current period presentation. Specifically, effective January 1, 2020, Fifth Third reclassified certain noninterest income and noninterest expense line items to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the nine months ended September 30: ($ in millions) 2020 2019 Cash Payments: Interest $ 746 1,166 Income taxes 419 524 Transfers: Portfolio loans and leases to loans and leases held for sale (a) $ 713 191 Loans and leases held for sale to portfolio loans and leases 39 30 Portfolio loans and leases to OREO 11 23 Loans and leases held for sale to OREO 2 — Supplemental Disclosures: Additions to lease liabilities under operating leases $ 41 43 Additions to lease liabilities under finance leases 93 13 Right-of-use assets recognized at adoption of ASU 2016-02 — 509 Conversion of outstanding preferred stock issued by a Bancorp subsidiary — 197 (a) Includes $668 of residential mortgage loans previously sold to GNMA which the Bancorp was initially deemed to have regained effective control over under ASC Topic 860 and which were recorded as portfolio loans. The Bancorp subsequently repurchased these loans and classified them as held for sale. |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On March 22, 2019, Fifth Third Bancorp completed its acquisition of MB Financial, Inc. in a stock and cash transaction valued at approximately $3.6 billion. MB Financial, Inc. was headquartered in Chicago, Illinois with reported assets of approximately $20 billion and 86 branches (91 locations) as of December 31, 2018 and was the holding company of MB Financial Bank, N.A. The acquisition resulted in a combined company with a larger Chicago market presence and core deposit funding base while also building scale in a strategically important market. Under the terms of the agreement, the Bancorp acquired 100% of the common stock of MB Financial, Inc. In exchange, common shareholders of MB Financial, Inc. received 1.45 shares of Fifth Third Bancorp common stock and $5.54 in cash for each share of MB Financial, Inc. common stock, for a total value per share of $42.49, based on the $25.48 closing price of Fifth Third Bancorp’s common stock on March 21, 2019. Upon closing of the transaction, MB Financial, Inc. became a subsidiary of the Bancorp. However, MB Financial, Inc.’s 6.00% non-cumulative Series C perpetual preferred stock with a fair value of $197 million remained outstanding and was recognized as a noncontrolling interest on the Condensed Consolidated Balance Sheets. Through its ownership of all of the common stock, the Bancorp controlled 95% of the voting equity interests in MB Financial, Inc. with the remainder attributable to the preferred shareholders’ noncontrolling interest. On June 24, 2019, MB Financial, Inc. entered into an Agreement and Plan of Merger with the Bancorp to provide for the merger of MB Financial, Inc. with and into the Bancorp, with the Bancorp as the surviving corporation. A special meeting of MB Financial, Inc.’s stockholders was held on August 23, 2019 at which the holders of MB Financial, Inc.’s common stock and preferred stock, voting together as a single class, approved the merger. In the merger, each outstanding share of MB Financial, Inc.’s preferred stock was converted into the right to receive one share of a newly created series of preferred stock of the Bancorp having substantially the same terms as the MB Financial, Inc. preferred stock. On August 26, 2019, the Bancorp issued 200,000 shares of 6.00% non-cumulative Class B perpetual preferred stock, Series A. Each preferred share has a $1,000 liquidation preference. These shares were issued to the holders of MB Financial, Inc.’s 6.00% non-cumulative Series C perpetual preferred stock in conjunction with the merger of MB Financial, Inc. with and into Fifth Third Bancorp. This transaction resulted in the elimination of the noncontrolling interest in MB Financial, Inc. which was previously reported in the Bancorp’s Condensed Consolidated Financial Statements. The newly issued shares of Class B preferred stock, Series A were recognized by the Bancorp at the carrying value previously assigned to the MB Financial, Inc. Series C preferred stock prior to the transaction. The acquisition of MB Financial, Inc. constituted a business combination and was accounted for under the acquisition method of accounting. Accordingly, the assets acquired, liabilities assumed and noncontrolling interest recognized were recorded at their estimated fair values as of the acquisition date. These fair value estimates were final as of March 31, 2020. The following table reflects consideration paid and the noncontrolling interest recognized for MB Financial, Inc.’s net assets and the amounts of acquired identifiable assets and liabilities assumed at their fair value as of the acquisition date: ($ in millions) Consideration paid Cash payments $ 469 Fair value of common stock issued 3,121 Stock-based awards 38 Dividend receivable from MB Financial, Inc. (20) Total consideration paid $ 3,608 Fair value of noncontrolling interest in acquiree $ 197 Net Identifiable Assets Acquired, at Fair Value: Assets Cash and due from banks $ 1,679 Federal funds sold 35 Other short-term investments 53 Available-for-sale debt and other securities 832 Held-to-maturity securities 4 Equity securities 51 Loans and leases held for sale 12 Portfolio loans and leases 13,414 (a) Bank premises and equipment 266 (a) Operating lease equipment 394 (a) Intangible assets 219 (a) Servicing rights 263 Other assets 750 (a) Total assets acquired $ 17,972 Liabilities Deposits $ 14,489 Other short-term borrowings 267 (a) Accrued taxes, interest and expenses 276 (a) Other liabilities 194 (a) Long-term debt 727 (a) Total liabilities assumed $ 15,953 Net identifiable assets acquired 2,019 Goodwill $ 1,786 (a) Fair values have been updated from the preliminary estimates reported in the March 31, 2019 Form 10-Q. In connection with the acquisition, the Bancorp recognized approximately $1.8 billion of goodwill, of which $15 million relates to 15-year tax deductible goodwill from MB Financial, Inc.’s prior acquisitions. See Note 11 for further information on goodwill recognized and Note 12 for further information on intangible assets acquired in the acquisition of MB Financial, Inc. The following is a description of the methods used to determine the estimated fair values of significant assets and liabilities presented above. Cash and due from banks and other short-term investments For financial instruments with a short-term or no stated maturity, prevailing market rates and limited credit risk, carrying amounts approximate fair value. Available-for-sale debt and other securities, held-to-maturity securities and equity securities Fair values for securities were based on quoted market prices, where available. If quoted market prices were not available, fair value estimates were based on observable inputs, including quoted market prices for similar instruments, quoted market prices that are not in an active market or other inputs that are observable in the market. In the absence of observable inputs, fair value was estimated based on pricing models and/or DCF methodologies. Loans and leases held for sale and portfolio loans and leases Fair values for loans were based on a DCF methodology that considered factors including the type of loan and related collateral, fixed or variable interest rate, remaining term, credit quality ratings or scores, amortization status and current discount rates. Loans with similar characteristics were pooled together when applying various valuation techniques. The discount rates used for loans were based on an evaluation of current market rates for new originations of comparable loans and a market participant’s required rate of return to purchase similar assets, including adjustments for liquidity and credit quality when necessary. For PCI loans (now PCD loans effective January 1, 2020 upon the adoption of ASU 2016-13), the DCF methodology was based on the Bancorp’s estimate of contractual cash flows expected to be collected. Bank premises and equipment Fair values for bank premises and equipment were generally based on appraisals of the property values. Operating lease equipment Fair values for operating lease equipment were generally developed using the cost approach. The seller’s historical cost was adjusted by cost trend indices relevant to the asset type and vintage to arrive at a current reproduction cost. This reproduction cost was then adjusted for deterioration based on the age and typical life of each class of assets. Residual values were estimated based on analysis of the seller’s historical trends of residual value realization by asset class. Intangible assets The core deposit intangible asset represents the value of relationships with deposit customers. The fair value was estimated based on a DCF methodology that considered expected customer attrition rates, net maintenance cost of the deposit base, alternative cost of funds and the interest costs associated with customer deposits. The core deposit intangible is being amortized on an accelerated basis over its estimated useful life. For acquired operating leases where the Bancorp is the lessor, intangible assets are recognized when contract terms of the lease are more favorable than market terms as of the acquisition date. Operating lease intangibles are amortized on a straight-line basis over the remaining lease term. Servicing rights Fair values for servicing rights were estimated using internal option-adjusted spread models with certain unobservable inputs, primarily prepayment speed assumptions, option-adjusted spread and weighted-average lives. Other assets Fair values for ROU assets associated with real estate operating leases were based on current market rental rates for similar properties in the same area, discounted at the Bancorp’s incremental borrowing rates as of the acquisition date. Estimates of current market rental rates were generally based on third-party market rent studies performed for each significant property. Deposits The fair values for time deposits were estimated using a DCF methodology whereby the contractual remaining cash flows were discounted using market rates currently being offered for time deposits of similar maturities. For transactional deposits, carrying amounts approximate fair value. Long-term debt The fair values of long-term debt instruments were estimated based on quoted market prices for identical or similar instruments, if available, or by using DCF analyses based on current incremental borrowing rates for similar types of instruments. Merger-Related Expenses Direct merger-related expenses related to the acquisition of MB Financial, Inc. were expensed as incurred by the Bancorp and were immaterial and $28 million for the three months ended September 30, 2020 and 2019, respectively, and $16 million and $213 million for the nine months ended September 30, 2020 and 2019, respectively. The following table provides a summary of merger-related expenses recorded in noninterest expense: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Compensation and benefits $ — 14 4 88 Technology and communications — 8 6 68 Net occupancy expense — 3 4 10 Equipment expense — — — 1 Card and processing expense — — — 1 Marketing expense — — — 7 Other noninterest expense — 3 2 38 Total $ — 28 16 213 Pro Forma Information The following table presents unaudited pro forma information as if the acquisition of MB Financial, Inc. had occurred on January 1, 2018. This pro forma information combines the historical condensed consolidated results of operations of Fifth Third Bancorp and MB Financial, Inc. after giving effect to certain adjustments, including purchase accounting fair value adjustments, amortization of intangibles, stock-based compensation expense and acquisition costs, as well as the related income tax effects of those adjustments. The pro forma results also reflect reclassification adjustments to noninterest income and noninterest expense to conform MB Financial, Inc.’s presentation of operating lease income and the related depreciation expense with the Bancorp’s presentation. Direct costs associated with the acquisition were included in pro forma earnings as of January 1, 2018. The pro forma information does not necessarily reflect the results of operations that would have occurred had Fifth Third Bancorp acquired MB Financial, Inc. on January 1, 2018. Furthermore, cost savings and other business synergies related to the acquisition are not reflected in the unaudited pro forma amounts. Unaudited Pro Forma Information ($ in millions) For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Net interest income $ 1,223 3,696 Noninterest income 739 2,601 Net income available to common shareholders 520 1,840 Acquired Loans and Leases Prior to the adoption of ASU 2016-13 on January 1, 2020, purchased loans were evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. Generally, the fair value discount or premium on acquired loans and leases was amortized over the contractual life of the loan as an adjustment to yield. For loans acquired with evidence of credit impairment (PCI loans), the Bancorp determined at the acquisition date the excess of the loan’s contractually required payments over all cash flows expected to be collected as an amount that should not be accreted into interest income (nonaccretable difference). The remaining amount representing the difference in the expected cash flows of acquired loans and the initial investment in the acquired loans was accreted into interest income over the remaining life of the loan or pool of loans (accretable yield). This method of accounting for loans acquired with credit impairment did not apply to loans carried at fair value, residential mortgage loans held for sale and loans under revolving credit agreements. Refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019 for additional information on the accounting for PCI loans. The Bancorp elected to account for loans acquired from MB Financial, Inc., which were not considered impaired but exhibited evidence of credit deterioration since origination, in the same manner as PCI loans. The following table reflects the contractually required payments receivable, cash flows expected to be collected and estimated fair value of loans identified as PCI loans on the acquisition date of MB Financial, Inc. These fair value estimates were final as of March 31, 2020. ($ in millions) March 22, Contractually required payments including interest $ 1,139 Less: Nonaccretable difference 81 Cash flows expected to be collected 1,058 Less: Accretable yield 202 Fair value of loans acquired $ 856 A summary of activity related to the accretable yield is as follows: ($ in millions) Accretable Yield Balance as of December 31, 2018 $ — Additions 202 Accretion (30) Reclassifications from (to) nonaccretable difference (2) Balance as of September 30, 2019 $ 170 At the MB Financial, Inc. acquisition date, contractual balances on the purchased non-PCI loans and leases totaled $12.7 billion with a corresponding fair value of $12.5 billion. ASU 2016-13 Bank Merger On May 3, 2019, MB Financial Bank, N.A. merged with and into Fifth Third Bank (now Fifth Third Bank, National Association), with Fifth Third Bank, National Association as the surviving entity. Fifth Third Bank, National Association is an indirect subsidiary of Fifth Third Bancorp. |
Accounting and Reporting Develo
Accounting and Reporting Developments | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting and Reporting Developments | Accounting and Reporting Developments Standards Adopted in 2020 The Bancorp adopted the following new accounting standards during the nine months ended September 30, 2020: ASU 2016-13 – Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 The Bancorp adopted the amended guidance on January 1, 2020, using a modified retrospective approach, although certain provisions of the guidance are only required to be applied on a prospective basis. Upon adoption, the Bancorp recorded a combined increase to the ALLL and reserve for unfunded commitments of approximately $653 million and a cumulative-effect adjustment to retained earnings of $472 million. Of the increase to the ALLL, approximately $33 million pertained to the recognition of an ALLL on purchased financial assets with credit deterioration and was also added to the carrying value of the related loans. Adoption of the amended guidance did not have a material impact to the Bancorp’s investment securities portfolio. The required disclosures are included in Note 7. ASU 2017-04 – Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, which simplifies the test for goodwill impairment by removing the second step, which measures the amount of impairment loss, if any. Instead, the amended guidance states that an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, except that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This guidance applies to all reporting units, including those with zero or negative carrying amounts of net assets. The Bancorp adopted the amended guidance on January 1, 2020. The amended guidance is applied prospectively to all goodwill impairment tests performed after the adoption date. ASU 2018-13 – Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, which modifies the disclosure requirements for fair value measurements. The amendments remove the requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. The amendments also add new disclosure requirements regarding unrealized gains and losses from recurring Level 3 fair value measurements and the significant unobservable inputs used to develop Level 3 fair value measurements. The Bancorp adopted the amended guidance on January 1, 2020 and the required disclosures are included in Note 24. ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-15, which provides guidance on the accounting for implementation, setup and other upfront costs incurred by customers in cloud computing arrangements that are accounted for as service contracts. The amendments require that implementation costs be evaluated for capitalization using the framework applicable to costs incurred to develop or obtain internal-use software. Those capitalized costs are to be expensed over the term of the cloud computing arrangement and presented in the same financial statement line items as the service contract and its associated fees. The Bancorp adopted the amended guidance on January 1, 2020 on a prospective basis. ASU 2020-04 – Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate on Financial Reporting In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in the ASU apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for the Bancorp as of March 12, 2020 through December 31, 2022. The Bancorp is in the process of evaluating and applying, as applicable, the optional expedients and exceptions in accounting for eligible contract modifications, eligible existing hedging relationships and new hedging relationships available through December 31, 2022. Standards Issued but Not Yet Adopted The following accounting standards were issued but not yet adopted by the Bancorp as of September 30, 2020: ASU 2019-12 – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also clarify and amend existing guidance for other areas of Topic 740. The amended guidance is effective for the Bancorp on January 1, 2021 with early adoption permitted, and is to be applied either prospectively or retrospectively for the specific amendment based on the transition method prescribed by the FASB. The Bancorp is in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. However, the Bancorp does not currently expect the impact of adoption to be material. Regulatory Developments Related to the COVID-19 Pandemic On March 22, 2020, various national banking regulatory agencies jointly issued an interagency statement addressing loan modifications and reporting for financial institutions working with customers affected by the COVID-19 pandemic. The statement describes the agencies’ interpretation of how existing guidance in U.S. GAAP applies to certain loan modifications related to COVID-19. Among other things, the statement affirms that short-term modifications (e.g., six months) made on a good faith basis in response to COVID-19 to borrowers who were less than 30 days past due on contractual payments at the time a modification program is implemented would not be considered TDRs. The statement also clarifies that loans modified in response to the COVID-19 pandemic should be evaluated on the basis of their modified terms when reporting loans as past due and evaluating for nonaccrual status and charge-off. On March 27, 2020, the CARES Act was signed into law. Section 4013 of the CARES Act provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time in certain circumstances. This temporary suspension may only be applied to modifications of loans that were not more than 30 days past due as of December 31, 2019 and may not be applied to modifications that are not related to the COVID-19 pandemic. If elected, the temporary suspension may be applied to eligible modifications executed during the period beginning on March 1, 2020 and ending on the earlier of December 31, 2020 or 60 days after the termination of the COVID-19 national emergency. On April 7, 2020, the national banking regulatory agencies revised their previously issued interagency statement to clarify the interactions with the provisions of Section 4013 of the CARES Act. The Bancorp has elected to apply the temporary suspension of TDR requirements provided by the CARES Act for eligible loan modifications. For loan modifications that are not eligible for the suspension offered by the CARES Act or that are executed outside its applicable period, the Bancorp considers the interpretive guidance provided in the revised interagency statement to evaluate loan modifications within its scope, or existing TDR evaluation policies if the modification does not fall within the scope of the interagency statement. Loans and leases which received payment deferrals or forbearances as part of the Bancorp’s COVID-19 customer relief programs are generally not reported as delinquent if the loan or lease was less than 30 days past due at March 1, 2020 (the effective date of the COVID-19 national emergency declaration) unless the loan or lease subsequently becomes delinquent according to its modified terms. Those loans and leases that were 30 days or more past due at March 1, 2020 continue to be reported at their March 1, 2020 delinquency status unless the borrower makes supplemental payments to resolve the delinquency. After the conclusion of the payment deferral or forbearance period, borrowers who were delinquent as of March 1, 2020 may be returned to current status once they demonstrate a willingness and ability to repay the loan according to its modified terms. This may be evidenced by payment history after the payment deferral or forbearance period, or by completing an evaluation of the borrower’s creditworthiness upon exit from the Bancorp’s hardship programs. On April 10, 2020, the FASB staff issued a question-and-answer document (Q&A) to address questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic. Under Topic 842, subsequent changes to lease payments that are not stipulated in the original lease contract are generally accounted for as lease modifications. Some contracts may contain explicit or implicit enforceable rights and obligations that require lease concessions in certain circumstances and therefore would not be considered a lease modification. Given the significant cost and complexity in assessing the large volume of lease contracts for which concessions are being granted due to the COVID-19 pandemic, the FASB clarified in this Q&A that an entity can elect to account for lease concessions associated with the COVID-19 pandemic as though enforceable rights and obligations for those concessions existed. This guidance eliminates the requirement to analyze each contract to determine whether enforceable rights and obligations to provide concessions exist and allows an entity to elect to apply or not apply the lease modification guidance in Topic 842. This election is only available for concessions related to the effect of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Bancorp has elected to not apply the lease modification accounting guidance in Topic 842 for lease concessions granted as a result of the COVID-19 pandemic as the deferrals only affect the timing of the payments and the amount of consideration to be received is substantially the same as that required by the original contract. Updates to Significant Accounting and Reporting Policies In conjunction with the adoption of new accounting standards, the Bancorp has updated its accounting and reporting policies for investment securities, portfolio loans and leases, the ALLL, the reserve for unfunded commitments and goodwill as described below. Refer to Note 1 of the Notes to Consolidated Financial Statements in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019 for discussion of these accounting and reporting policies for periods prior to January 1, 2020. Investment securities Debt securities are classified as held-to-maturity, available-for-sale or trading on the date of purchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Debt securities are classified as available-for-sale when, in management’s judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Debt securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Trading debt securities are reported at fair value with unrealized gains and losses included in noninterest income. Available-for-sale debt securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in OCI. Accrued interest receivables on investment securities are presented in the Condensed Consolidated Balance Sheets as a component of other assets. Available-for-sale debt securities with unrealized losses are reviewed quarterly to determine if the decline in fair value is the result of a credit loss or other factors. An allowance for credit losses is recorded against available-for-sale securities to reflect the amount of the unrealized loss attributable to credit; however, this impairment is limited by the amount that the fair value is less than the amortized cost basis. Any remaining unrealized loss is recognized through OCI. Changes in the allowance for credit losses are recognized in earnings. The determination of whether or not a credit loss exists is based on consideration of the cash flows expected to be collected from the debt security. The Bancorp develops these expectations after considering various factors such as agency ratings, the financial condition of the issuer or underlying obligors, payment history, payment structure of the security, industry and market conditions, underlying collateral and other factors which may be relevant based on the facts and circumstances pertaining to individual securities. If the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of its amortized cost basis, then the allowance for credit losses, if previously recorded, is written off and the security’s amortized cost is written down to the security’s fair value at the reporting date, with any incremental impairment recorded as a charge to noninterest income. Held-to-maturity debt securities are assessed periodically to determine if a valuation allowance is necessary to absorb credit losses expected to occur over the remaining contractual life of the securities. The carrying amount of held-to-maturity debt securities is presented net of the valuation allowance for credit losses when such an allowance is deemed necessary. Equity securities with readily determinable fair values not accounted for under the equity method are reported at fair value with unrealized gains and losses included in noninterest income in the Condensed Consolidated Statements of Income. Equity securities without readily determinable fair values are measured at cost minus impairment, if any, plus or minus changes as a result of an observable price change for the identical or similar investment of the same issuer. At each quarterly reporting period, the Bancorp performs a qualitative assessment to evaluate whether impairment indicators are present. If qualitative indicators are identified, the investment is measured at fair value with the impairment loss included in noninterest income in the Condensed Consolidated Statements of Income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. The premium on purchased callable debt securities is amortized to the earliest call date if the call feature meets certain criteria. Otherwise, the premium is amortized to maturity similar to the discount on the callable debt securities. Realized securities gains or losses are reported within noninterest income in the Condensed Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. Portfolio loans and leases—basis of accounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans and leases acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. Purchased loans and finance leases (including both sales-type leases and direct financing leases) are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans and finance leases that do not exhibit evidence of more-than-insignificant credit deterioration since origination, the Bancorp does not carry over the acquired company’s ALLL, but upon acquisition will record an ALLL and provision for credit losses reflective of credit losses expected to be incurred over the remaining contractual life of the acquired loans. Premiums and discounts reflected in the initial fair value are amortized over the contractual life of the loan as an adjustment to yield. For loans and finance leases that exhibit evidence of more-than-insignificant credit quality deterioration since origination, the Bancorp’s estimate of expected credit losses is added to the ALLL upon acquisition and to the initial purchase price of the loans and leases to determine the initial amortized cost basis for the purchased financial assets with credit deterioration. Any resulting difference between the initial amortized cost basis (as adjusted for expected credit losses) and the par value of the loans and leases at the acquisition date represents the non-credit premium or discount, which is amortized over the contractual life of the loan or lease as an adjustment to yield. This method of accounting for loans acquired with deteriorated credit quality does not apply to loans carried at fair value or residential mortgage loans held for sale. The Bancorp’s lease portfolio consists of sales-type, direct financing and leveraged leases. Sales-type and direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, less unearned income. Interest income on sales-type and direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases, entered into before January 1, 2019, are carried at the aggregate of lease payments (less nonrecourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, net of the related deferred income tax liability, in the years in which the net investment is positive. Leveraged lease accounting is no longer applied for leases entered into or modified after the Bancorp’s adoption of ASU 2016-02, Leases, on January 1, 2019. ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, indirect secured consumer, credit card and other consumer loans. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality information by class, refer to Note 7. The Bancorp maintains the ALLL to absorb the amount of credit losses that are expected to be incurred over the remaining contractual terms of the related loans and leases. Contractual terms are adjusted for expected prepayments but are not extended for expected extensions, renewals or modifications except in circumstances where the Bancorp reasonably expects to execute a TDR with the borrower or where certain extension or renewal options are embedded in the original contract and not unconditionally cancellable by the Bancorp. Accrued interest receivables on loans are presented in the Condensed Consolidated Financial Statements as a component of other assets. When accrued interest is deemed to be uncollectible (typically when a loan is placed on nonaccrual status), interest income is reversed. The Bancorp follows established policies for placing loans on nonaccrual status, so uncollectible accrued interest receivable is reversed in a timely manner. As a result, the Bancorp has elected not to measure an allowance for credit losses for accrued interest receivables. Refer to the Portfolio Loans and Leases section for additional information. Credit losses are charged and recoveries are credited to the ALLL. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability of loans and leases, including historical credit loss experience, current and forecasted market and economic conditions and consideration of various qualitative factors that, in management’s judgment, deserve consideration in estimating credit losses. Provisions for credit losses are recorded for the amounts necessary to adjust the ALLL to the Bancorp’s current estimate of expected credit losses on portfolio loans and leases. The Bancorp’s strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL includes an estimate of expected credit losses on a collective basis for groups of loans and leases with similar risk characteristics and specific allowances for loans and leases which are individually evaluated. Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are individually evaluated for an ALLL. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when determining the amount of ALLL. Other factors may include the borrower’s susceptibility to risks presented by the forecasted macroeconomic environment, the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When loans and leases are individually evaluated, allowances are determined based on management’s estimate of the borrower’s ability to repay the loan or lease given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for individually evaluated loans and leases that are collateral-dependent are measured based on the fair value of the underlying collateral, less expected costs to sell where applicable. Individually evaluated loans and leases that are not collateral-dependent are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate. The Bancorp evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Specific allowances on individually evaluated commercial loans and leases, including TDRs, are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. Expected credit losses are estimated on a collective basis for loans and leases that are not individually evaluated. These include commercial loans and leases that do not meet the criteria for individual evaluation as well as homogeneous loans and leases in the residential mortgage and consumer portfolio segments. For collectively evaluated loans and leases, the Bancorp uses models to forecast expected credit losses based on the probability of a loan or lease defaulting, the expected balance at the estimated date of default and the expected loss percentage given a default. The estimate of the expected balance at the time of default considers prepayments and, for loans with available credit, expected utilization rates. The Bancorp’s expected credit loss models were developed based on historical credit loss experience and observations of migration patterns for various credit risk characteristics (such as internal credit risk grades, external credit ratings or scores, delinquency status, loan-to-value trends, etc.) over time, with those observations evaluated in the context of concurrent macroeconomic conditions. The Bancorp developed its models from historical observations capturing a full economic cycle when possible. The Bancorp’s expected credit loss models consider historical credit loss experience, current market and economic conditions, and forecasted changes in market and economic conditions if such forecasts are considered reasonable and supportable. Generally, the Bancorp considers its forecasts to be reasonable and supportable for a period of up to three years from the estimation date. For periods beyond the reasonable and supportable forecast period, expected credit losses are estimated by reverting to historical loss information without adjustment for changes in economic conditions. This reversion is phased in over a two-year period. The Bancorp evaluates the length of its reasonable and supportable forecast period, its reversion period and reversion methodology at least annually, or more often if warranted by economic conditions or other circumstances. The Bancorp also considers qualitative factors in determining the ALLL. Qualitative factors are used to capture characteristics in the portfolio that impact expected credit losses but that are not fully captured within the Bancorp’s expected credit loss models. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, lending and risk management personnel and results of internal audit and quality control reviews. These may also include adjustments, when deemed necessary, for specific idiosyncratic risks such as geopolitical events, natural disasters and their effects on regional borrowers, and changes in product structures. Qualitative factors may also be used to address the impacts of unforeseen events on key inputs and assumptions within the Bancorp’s expected credit loss models, such as the reasonable and supportable forecast period, changes to historical loss information or changes to the reversion period or methodology. When evaluating the adequacy of allowances, consideration is also given to regional geographic concentrations and the closely associated effect changing economic conditions have on the Bancorp’s customers. Reserve for unfunded commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities and is included in other liabilities in the Condensed Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon expected credit losses over the remaining contractual life of the commitments, taking into consideration the current funded balance and estimated exposure over the reasonable and supportable forecast period. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in provision for credit losses in the Condensed Consolidated Statements of Income. Goodwill Business combinations entered into by the Bancorp typically include the recognition of goodwill. U.S. GAAP requires goodwill to be tested for impairment at the Bancorp’s reporting unit level on an annual basis, which for the Bancorp is September 30, and more frequently if events or circumstances indicate that there may be impairment. Impairment exists when a reporting unit’s carrying amount of goodwill exceeds its implied fair value. In testing goodwill for impairment, U.S. GAAP permits the Bancorp to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, the Bancorp evaluates events and circumstances which may include, but are not limited to, the general economic environment, banking industry and market conditions, the overall financial performance of the Bancorp, the performance of the Bancorp’s common stock, the key financial performance metrics of the Bancorp’s reporting units and events affecting the reporting units to determine if it is not more likely than not that the fair value of a reporting unit is less than its carrying amount. If the quantitative impairment test is required or the decision to bypass the qualitative assessment is elected, the Bancorp performs the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. A recognized impairment loss cannot be reversed in future periods even if the fair value of the reporting unit subsequently recovers. The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. As none of the Bancorp’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Bancorp’s stock price. The determination of the fair value of a reporting unit is a subjective process that involves the use of estimates and judgments, particularly related to cash flows, the appropriate discount rates and an applicable control premium. The Bancorp employs an income-based approach, utilizing the reporting unit’s forecasted cash flows (including a terminal value approach to estimate cash flows beyond the final year of the forecast) and the reporting unit’s estimated cost of equity as the discount rate. Significant management judgment is necessary in the preparation of each reporting unit’s forecasted cash flows surrounding expectations for earnings projections, growth and credit loss expectations and actual results may differ from forecasted results. Additionally, the Bancorp determines its market capitalization based on the average of the closing price of the Bancorp’s stock during the month including the measurement date, incorporating an additional control premium, and compares this market-based fair value measurement to the aggregate fair value of the Bancorp’s reporting units in order to corroborate the results of the income approach. Refer to Note 11 of the Notes to Condensed Consolidated Financial Statements for further information regarding the Bancorp’s goodwill. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 5. Investment Securities The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale debt and other securities and held-to-maturity investment securities portfolios as of: September 30, 2020 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agency securities $ 75 3 — 78 Obligations of states and political subdivisions securities 17 — — 17 Mortgage-backed securities: Agency residential mortgage-backed securities 11,711 894 (2) 12,603 Agency commercial mortgage-backed securities 16,173 1,578 (1) 17,750 Non-agency commercial mortgage-backed securities 3,317 258 — 3,575 Asset-backed securities and other debt securities 2,869 37 (35) 2,871 Other securities (a) 531 — — 531 Total available-for-sale debt and other securities $ 34,693 2,770 (38) 37,425 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 13 — — 13 Asset-backed securities and other debt securities 2 — — 2 Total held-to-maturity securities $ 15 — — 15 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $47, $482 and $2, respectively, at September 30, 2020, that are carried at cost. December 31, 2019 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agency securities $ 74 1 — 75 Obligations of states and political subdivisions securities 18 — — 18 Mortgage-backed securities: Agency residential mortgage-backed securities 13,746 388 (19) 14,115 Agency commercial mortgage-backed securities 15,141 564 (12) 15,693 Non-agency commercial mortgage-backed securities 3,242 123 — 3,365 Asset-backed securities and other debt securities 2,189 29 (12) 2,206 Other securities (a) 556 — — 556 Total available-for-sale debt and other securities $ 34,966 1,105 (43) 36,028 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 15 — — 15 Asset-backed securities and other debt securities 2 — — 2 Total held-to-maturity securities $ 17 — — 17 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $76, $478 and $2, respectively, at December 31, 2019, that are carried at cost. The following table provides the fair value of trading debt securities and equity securities as of: September 30, December 31, Trading debt securities $ 704 297 Equity securities 277 564 The amounts reported in the preceding tables exclude accrued interest receivables on investment securities of $90 million at September 30, 2020, which are presented as a component of other assets in the Condensed Consolidated Balance Sheets. The Bancorp uses investment securities as a means of managing interest rate risk, providing collateral for pledging purposes and for liquidity to satisfy regulatory requirements. As part of managing interest rate risk, the Bancorp acquires securities as a component of its MSR non-qualifying hedging strategy, with net gains or losses recorded in securities gains (losses), net – non-qualifying hedges on MSRs in the Condensed Consolidated Statements of Income. The following table presents securities gains (losses) recognized in the Condensed Consolidated Statements of Income: For the three months ended September 30, For the nine months ended ($ in millions) 2020 2019 2020 2019 Available-for-sale debt and other securities: Realized gains $ 46 3 47 51 Realized losses (1) — (2) (47) OTTI — — — (1) Net realized gains on available-for sale debt and other securities $ 45 3 45 3 Total trading debt securities gains (losses) $ (1) — 3 5 Total equity securities gains (a) $ 6 2 3 27 Total gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities (b) $ 50 5 51 35 (a) Includes net unrealized losses of $1 and $3 for the three and nine months ended September 30, 2020, respectively, and an immaterial net unrealized gain and a net unrealized gain of $23 for the three and nine months ended September 30, 2019, respectively. (b) Excludes $1 and $7 of net securities gains for the three and nine months ended September 30, 2020, respectively, and $2 and $6 of net securities gains for the three and nine months ended September 30, 2019, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These gains are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. Upon adoption of ASU 2016-13 on January 1, 2020, the Bancorp evaluates available-for-sale debt and other securities in an unrealized loss position to determine whether all or a portion of the unrealized loss on such securities is a credit loss. If credit losses are identified, they are generally recognized as an allowance for credit losses (a contra account to the amortized cost basis of the securities) with the periodic change in the allowance recognized in earnings. Prior to January 1, 2020, investment securities were evaluated for OTTI with any identified OTTI recognized as a charge to income and a direct reduction of the amortized cost basis of the securities. At September 30, 2020, the Bancorp completed its evaluation of the available-for-sale debt and other securities in an unrealized loss position and did not recognize an allowance for credit losses. The Bancorp did not recognize provision expense for the three and nine months ended September 30, 2020 related to available-for-sale debt and other securities in an unrealized loss position. At September 30, 2020 and December 31, 2019, investment securities with a fair value of $10.6 billion and $8.1 billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law. The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity investment securities as of September 30, 2020 are shown in the following table: ($ in millions) Available-for-Sale Debt and Other Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 516 538 6 6 1-5 years 13,612 14,538 7 7 5-10 years 14,103 15,463 — — Over 10 years 5,931 6,355 2 2 Other securities 531 531 — — Total $ 34,693 37,425 15 15 (a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. The following table provides the fair value and gross unrealized losses on available-for-sale debt and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of: Less than 12 months 12 months or more Total ($ in millions) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized September 30, 2020 Agency residential mortgage-backed securities $ 72 (2) 1 — 73 (2) Agency commercial mortgage-backed securities 75 (1) — — 75 (1) Non-agency commercial mortgage-backed securities 24 — — — 24 — Asset-backed securities and other debt securities 864 (16) 533 (19) 1,397 (35) Total $ 1,035 (19) 534 (19) 1,569 (38) December 31, 2019 Agency residential mortgage-backed securities $ 2,159 (19) 4 — 2,163 (19) Agency commercial mortgage-backed securities 1,602 (12) — — 1,602 (12) Asset-backed securities and other debt securities 367 (3) 379 (9) 746 (12) Total $ 4,128 (34) 383 (9) 4,511 (43) At September 30, 2020 and December 31, 2019, $2 million and an immaterial amount of unrealized losses in the available-for-sale debt and other securities portfolio were represented by non-rated securities, respectively. |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. The Bancorp’s commercial loan and lease portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses that are expected to be incurred over the remaining contractual terms of the related loans and leases. For further information on credit quality and the ALLL, refer to Note 7. The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of: September 30, December 31, Loans and leases held for sale: Commercial and industrial loans $ 57 135 Commercial mortgage loans 2 1 Residential mortgage loans 2,264 1,264 Total loans and leases held for sale $ 2,323 1,400 Portfolio loans and leases: Commercial and industrial loans (a) $ 51,695 50,542 Commercial mortgage loans 10,878 10,963 Commercial construction loans 5,656 5,090 Commercial leases 3,021 3,363 Total commercial loans and leases $ 71,250 69,958 Residential mortgage loans (b) $ 16,158 16,724 Home equity 5,455 6,083 Indirect secured consumer loans 12,925 11,538 Credit card 2,087 2,532 Other consumer loans 2,856 2,723 Total consumer loans $ 39,481 39,600 Total portfolio loans and leases $ 110,731 109,558 (a) Includes $5.2 billion, as of September 30, 2020, related to the SBA’s Paycheck Protection Program established under the CARES Act on March 27, 2020. (b) Includes $51 million, as of September 30, 2020, of residential mortgage loans previously sold to GNMA for which the Bancorp is deemed to have regained effective control over under ASC Topic 860, but did not exercise its option to repurchase. Refer to Note 16 for further information. Portfolio loans and leases are recorded net of unearned income, which totaled $301 million as of September 30, 2020 and $354 million as of December 31, 2019. Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred direct loan origination fees and costs and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination), which totaled a net premium of $228 million and $249 million as of September 30, 2020 and December 31, 2019, respectively. The amortized cost basis of loans and leases excludes accrued interest receivables of $361 million at September 30, 2020, which are presented as a component of other assets in the Condensed Consolidated Balance Sheets. The Bancorp’s FHLB and FRB borrowings are primarily secured by loans. The Bancorp had loans of $15.8 billion and $16.7 billion at September 30, 2020 and December 31, 2019, respectively, pledged at the FHLB, and loans of $35.1 billion and $47.3 billion at September 30, 2020 and December 31, 2019, respectively, pledged at the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp as of: Carrying Value 90 Days Past Due September 30, December 31, September 30, December 31, Commercial and industrial loans $ 51,752 50,677 4 11 Commercial mortgage loans 10,880 10,964 26 15 Commercial construction loans 5,656 5,090 — — Commercial leases 3,021 3,363 2 — Residential mortgage loans 18,422 17,988 67 50 Home equity 5,455 6,083 2 1 Indirect secured consumer loans 12,925 11,538 10 10 Credit card 2,087 2,532 27 42 Other consumer loans 2,856 2,723 1 1 Total loans and leases $ 113,054 110,958 139 130 Less: Loans and leases held for sale $ 2,323 1,400 Total portfolio loans and leases $ 110,731 109,558 The following table presents a summary of net charge-offs (recoveries): For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Commercial and industrial loans $ 42 29 157 67 Commercial mortgage loans 11 — 14 (1) Commercial leases 8 4 24 7 Residential mortgage loans (1) 1 1 1 Home equity 1 2 5 8 Indirect secured consumer loans 3 13 23 34 Credit card 29 33 100 101 Other consumer loans 8 17 29 39 Total net charge-offs $ 101 99 353 256 The Bancorp engages in commercial lease products primarily related to the financing of commercial equipment. Leases are classified as sales-type if the Bancorp transfers control of the underlying asset to the lessee. The Bancorp classifies leases that do not meet any of the criteria for a sales-type lease as a direct financing lease if the present value of the sum of the lease payments and any residual value guaranteed by the lessee and/or any other third party equals or exceeds substantially all of the fair value of the underlying asset and the collection of the lease payments and residual value guarantee is probable. The following table presents the components of the net investment in leases as of: ($ in millions) (a) September 30, December 31, 2019 Net investment in direct financing leases: Lease payment receivable (present value) $ 1,610 2,196 Unguaranteed residual assets (present value) 198 220 Net discount on acquired leases — (7) Net investment in sales-type leases: Lease payment receivable (present value) 818 510 Unguaranteed residual assets (present value) 29 15 (a) Excludes $366 and $429 of leveraged leases at September 30, 2020 and December 31, 2019, respectively. Interest income recognized in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2020 was $16 million and $50 million, respectively, for direct financing leases and $7 million and $20 million, respectively, for sales-type leases. For the three and nine months ended September 30, 2019, interest income recognized was $22 million and $70 million, respectively, for direct financing leases and $4 million and $7 million, respectively, for sales-type leases. The following table presents undiscounted cash flows for both direct financing and sales-type leases for the remainder of 2020 through 2025 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows: As of September 30, 2020 ($ in millions) Direct Financing Sales-Type Leases Remainder of 2020 $ 137 57 2021 503 226 2022 397 197 2023 232 144 2024 172 108 2025 115 56 Thereafter 165 113 Total undiscounted cash flows $ 1,721 901 Less: Difference between undiscounted cash flows and discounted cash flows 111 83 Present value of lease payments (recognized as lease receivables) $ 1,610 818 The lease residual value represents the present value of the estimated fair value of the leased equipment at the end of the lease. The Bancorp performs quarterly reviews of residual values associated with its leasing portfolio considering factors such as the subject equipment, structure of the transaction, industry, prior experience with the lessee and other factors that impact the residual value to assess for impairment. The Bancorp maintained an allowance of $33 million at September 30, 2020 to cover the losses that are expected to be incurred over the remaining contractual terms of the related leases, including the potential losses related to the residual value, in the net investment in leases. The Bancorp maintained an allowance of $17 million at December 31, 2019 to cover the inherent losses, including the potential losses related to the residual value, in the net investment in leases. Refer to Note 7 for additional information on credit quality and the ALLL. |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Credit Quality and the Allowance for Loan and Lease Losses | Credit Quality and the Allowance for Loan and Lease Losses The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class. Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment: For the three months ended September 30, 2020 ($ in millions) Residential Balance, beginning of period $ 1,502 327 867 — 2,696 Losses charged off (a) (66) (1) (68) — (135) Recoveries of losses previously charged off (a) 5 2 27 — 34 (Benefit from) provision for loan and lease losses 92 (31) (82) — (21) Balance, end of period $ 1,533 297 744 — 2,574 (a) The Bancorp recorded $9 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the three months ended September 30, 2019 ($ in millions) Commercial Residential Consumer Unallocated Total Balance, beginning of period $ 651 76 276 112 1,115 Losses charged off (a) (34) (2) (94) — (130) Recoveries of losses previously charged off (a) 1 1 29 — 31 Provision for loan and lease losses 53 — 72 2 127 Balance, end of period $ 671 75 283 114 1,143 (a) The Bancorp recorded $12 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the nine months ended September 30, 2020 ($ in millions) Residential Balance, beginning of period $ 710 73 298 121 1,202 Impact of adoption of ASU 2016-13 (a) 160 196 408 (121) 643 Losses charged off (b) (209) (6) (242) — (457) Recoveries of losses previously charged off (b) 14 5 85 — 104 Provision for loan and lease losses 858 29 195 — 1,082 Balance, end of period $ 1,533 297 744 — 2,574 (a) Includes $31, $2 and $1 in Commercial, Residential Mortgage and Consumer, respectively, related to the initial recognition of an ALLL on PCD loans. (b) The Bancorp recorded $31 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the nine months ended September 30, 2019 ($ in millions) Commercial Residential Mortgage Consumer Unallocated Total Balance, beginning of period $ 645 81 267 110 1,103 Losses charged off (a) (87) (5) (266) — (358) Recoveries of losses previously charged off (a) 14 4 84 — 102 Provision for (benefit from) loan and lease losses 99 (5) 198 4 296 Balance, end of period $ 671 75 283 114 1,143 (a) The Bancorp recorded $35 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: As of September 30, 2020 ($ in millions) Residential ALLL: (a) Individually evaluated $ 178 78 46 302 Collectively evaluated 1,355 219 698 2,272 Total ALLL $ 1,533 297 744 2,574 Portfolio loans and leases: (b) Individually evaluated $ 1,111 650 280 2,041 Collectively evaluated 69,743 15,255 23,025 108,023 Purchased credit deteriorated (c) 396 79 18 493 Total portfolio loans and leases $ 71,250 15,984 23,323 110,557 (a) Includes $3 related to commercial leveraged leases at September 30, 2020. (b) Excludes $174 of residential mortgage loans measured at fair value and includes $366 of commercial leveraged leases, net of unearned income at September 30, 2020. (c) Includes $51, as of September 30, 2020, of residential mortgage loans previously sold to GNMA for which the Bancorp is deemed to have regained effective control over under ASC Topic 860, but did not exercise its option to repurchase. Refer to Note 16 for further information. As of December 31, 2019 ($ in millions) Commercial Residential Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 82 55 33 — 170 Collectively evaluated for impairment 628 18 265 — 911 Unallocated — — — 121 121 Total ALLL $ 710 73 298 121 1,202 Portfolio loans and leases: (b) Individually evaluated for impairment $ 413 814 302 — 1,529 Collectively evaluated for impairment 69,047 15,690 22,558 — 107,295 Purchased credit impaired 498 37 16 — 551 Total portfolio loans and leases $ 69,958 16,541 22,876 — 109,375 (a) Includes $1 related to commercial leveraged leases at December 31, 2019. (b) Excludes $183 of residential mortgage loans measured at fair value and includes $429 of commercial leveraged leases, net of unearned income at December 31, 2019. CREDIT RISK PROFILE Commercial Portfolio Segment For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leases. To facilitate the monitoring of credit quality within the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well-defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. The Bancorp assigns a special mention rating to loans and leases that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp’s credit position. The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well-defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected. The Bancorp assigns a doubtful rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. Loans and leases classified as loss are considered uncollectible and are charged off in the period in which they are determined to be uncollectible. Because loans and leases in this category are fully charged off, they are not included in the following tables. For loans and leases that are collectively evaluated, the Bancorp utilizes models to forecast expected credit losses over a reasonable and supportable forecast period based on the probability of a loan or lease defaulting, the expected balance at the estimated date of default and the expected loss percentage given a default. For the commercial portfolio segment, the estimates for probability of default are primarily based on internal ratings assigned to each commercial borrower on a 13-point scale and historical observations of how those ratings migrate to a default over time in the context of macroeconomic conditions. For loans with available credit, the estimate of the expected balance at the time of default considers expected utilization rates, which are primarily based on macroeconomic conditions and the utilization history of similar borrowers under those economic conditions. The estimates for loss severity are primarily based on collateral type and coverage levels and the susceptibility of those characteristics to changes in macroeconomic conditions. Refer to Note 4 for additional information about the Bancorp’s processes for developing these models, estimating credit losses for periods beyond the reasonable and supportable forecast period and for estimating credit losses for individually evaluated loans. The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class and vintage: As of September 30, 2020 ($ in millions) Term Loans and Leases Revolving Revolving 2020 2019 2018 2017 2016 Prior Total Commercial and industrial loans: Pass $ 6,755 2,329 1,288 849 561 856 31,689 — 44,327 Special mention 96 67 86 40 10 21 3,661 — 3,981 Substandard 167 77 269 87 44 121 2,610 — 3,375 Doubtful — — — — — — 12 — 12 Total commercial and industrial loans $ 7,018 2,473 1,643 976 615 998 37,972 — 51,695 Commercial mortgage owner-occupied loans: Pass $ 905 693 466 308 258 489 1,033 — 4,152 Special mention 57 8 28 13 12 16 83 — 217 Substandard 219 36 40 10 14 36 80 — 435 Doubtful — — — — — — — — — Total commercial mortgage owner-occupied loans $ 1,181 737 534 331 284 541 1,196 — 4,804 Commercial mortgage nonowner-occupied loans: Pass $ 738 865 564 298 248 391 1,818 — 4,922 Special mention 254 1 16 3 28 20 402 — 724 Substandard 129 7 61 12 2 43 174 — 428 Doubtful — — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 1,121 873 641 313 278 454 2,394 — 6,074 Commercial construction loans: Pass $ 26 58 28 — 9 12 4,949 — 5,082 Special mention 40 — — — — — 477 — 517 Substandard 5 — — — — — 52 — 57 Doubtful — — — — — — — — — Total commercial construction loans $ 71 58 28 — 9 12 5,478 — 5,656 Commercial leases: Pass $ 447 392 328 399 334 943 — — 2,843 Special mention 3 40 16 6 6 8 — — 79 Substandard 4 4 19 33 7 32 — — 99 Doubtful — — — — — — — — — Total commercial leases $ 454 436 363 438 347 983 — — 3,021 Total commercial loans and leases: Pass $ 8,871 4,337 2,674 1,854 1,410 2,691 39,489 — 61,326 Special mention 450 116 146 62 56 65 4,623 — 5,518 Substandard 524 124 389 142 67 232 2,916 — 4,394 Doubtful — — — — — — 12 — 12 Total commercial loans and leases $ 9,845 4,577 3,209 2,058 1,533 2,988 47,040 — 71,250 The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class: As of December 31, 2019 ($ in millions) Special Commercial and industrial loans $ 47,671 1,423 1,406 42 50,542 Commercial mortgage owner-occupied loans 4,421 162 293 4 4,880 Commercial mortgage nonowner-occupied loans 5,866 135 82 — 6,083 Commercial construction loans 4,963 52 75 — 5,090 Commercial leases 3,222 53 88 — 3,363 Total commercial loans and leases $ 66,143 1,825 1,944 46 69,958 Age Analysis of Past Due Commercial Loans and Leases The following tables summarize the Bancorp’s amortized cost basis in portfolio commercial loans and leases, by age and class: Current Loans and Leases (a) Past Due Total Loans 90 Days Past As of September 30, 2020 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 51,413 140 142 282 51,695 4 Commercial mortgage owner-occupied loans 4,753 14 37 51 4,804 22 Commercial mortgage nonowner-occupied loans 5,979 58 37 95 6,074 4 Commercial construction loans 5,654 2 — 2 5,656 — Commercial leases 3,007 4 10 14 3,021 2 Total portfolio commercial loans and leases $ 70,806 218 226 444 71,250 32 (a) Includes accrual and nonaccrual loans and leases. Current Loans and Leases (a) Past Due Total Loans 90 Days Past As of December 31, 2019 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 50,305 133 104 237 50,542 11 Commercial mortgage owner-occupied loans 4,853 4 23 27 4,880 9 Commercial mortgage nonowner-occupied loans 6,072 5 6 11 6,083 6 Commercial construction loans 5,089 1 — 1 5,090 — Commercial leases 3,338 11 14 25 3,363 — Total portfolio commercial loans and leases $ 69,657 154 147 301 69,958 26 (a) Includes accrual and nonaccrual loans and leases. Residential Mortgage and Consumer Portfolio Segments For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, indirect secured consumer loans, credit card and other consumer loans. The Bancorp’s residential mortgage portfolio segment is also a separate class. The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includes both the delinquency status and performing versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans and the performing versus nonperforming status is presented in the following table. Refer to the nonaccrual loans and leases section of Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019 for additional delinquency and nonperforming information. For collectively evaluated loans in the consumer and residential mortgage portfolio segments, the Bancorp’s expected credit loss models primarily utilize the borrower’s FICO score and delinquency history in combination with macroeconomic conditions when estimating the probability of default. The estimates for loss severity are primarily based on collateral type and coverage levels and the susceptibility of those characteristics to changes in macroeconomic conditions. The expected balance at the estimated date of default is also particularly significant for portfolio classes which generally have longer terms (such as residential mortgage loans and home equity) and portfolio classes containing a high concentration of loans with revolving privileges (such as credit card and home equity). The estimate of the expected balance at the time of default considers expected prepayment and utilization rates where applicable, which are primarily based on macroeconomic conditions and the utilization history of similar borrowers under those economic conditions. Refer to Note 4 for additional information about the Bancorp’s process for developing these models and its process for estimating credit losses for periods beyond the reasonable and supportable forecast period. The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class and vintage, disaggregated by both age and performing versus nonperforming status: As of September 30, 2020 ($ in millions) Term Loans Revolving Revolving 2020 2019 2018 2017 2016 Prior Total Residential mortgage loans: Performing: Current (a) $ 2,843 2,348 976 1,877 2,589 5,191 — — 15,824 30-89 days past due 2 1 3 4 3 11 — — 24 90 days or more past due — 5 2 7 5 48 — — 67 Total performing 2,845 2,354 981 1,888 2,597 5,250 — — 15,915 Nonperforming — — — 2 3 64 — — 69 Total residential mortgage loans (b) $ 2,845 2,354 981 1,890 2,600 5,314 — — 15,984 Home equity: Performing: Current $ 11 27 35 5 3 164 5,086 8 5,339 30-89 days past due — — — — — 3 22 — 25 90 days or more past due — — — — — 2 — — 2 Total performing 11 27 35 5 3 169 5,108 8 5,366 Nonperforming — — 1 — — 12 75 1 89 Total home equity $ 11 27 36 5 3 181 5,183 9 5,455 Indirect secured consumer loans: Performing: Current $ 4,928 4,186 1,909 1,008 462 290 — — 12,783 30-89 days past due 13 38 32 19 9 5 — — 116 90 days or more past due 1 2 3 2 1 1 — — 10 Total performing 4,942 4,226 1,944 1,029 472 296 — — 12,909 Nonperforming — 4 4 3 2 3 — — 16 Total indirect secured consumer loans $ 4,942 4,230 1,948 1,032 474 299 — — 12,925 Credit card: Performing: Current $ — — — — — — 2,005 — 2,005 30-89 days past due — — — — — — 29 — 29 90 days or more past due — — — — — — 27 — 27 Total performing — — — — — — 2,061 — 2,061 Nonperforming — — — — — — 26 — 26 Total credit card $ — — — — — — 2,087 — 2,087 Other consumer loans Performing: Current $ 605 645 502 205 37 36 803 1 2,834 30-89 days past due 2 6 4 3 — — 3 — 18 90 days or more past due — 1 — — — — — — 1 Total performing 607 652 506 208 37 36 806 1 2,853 Nonperforming — — — — — 1 2 — 3 Total other consumer loans $ 607 652 506 208 37 37 808 1 2,856 Total consumer loans (b) $ 8,405 7,263 3,471 3,135 3,114 5,831 8,078 10 39,307 (a) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of September 30, 2020, $91 of these loans were 30-89 days past due and $249 were 90 days or more past due. The Bancorp recognized an immaterial amount and $2 of losses during the three and nine months ended September 30, 2020, respectively, due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $174 of residential mortgage loans measured at fair value at September 30, 2020. The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of: December 31, 2019 ($ in millions) Performing Nonperforming Residential mortgage loans (a) $ 16,450 91 Home equity 5,989 94 Indirect secured consumer loans 11,531 7 Credit card 2,505 27 Other consumer loans 2,721 2 Total residential mortgage and consumer loans (a) $ 39,196 221 (a) Excludes $183 of residential mortgage loans measured at fair value at December 31, 2019. Age Analysis of Past Due Consumer Loans The following tables summarize the Bancorp’s amortized cost basis in portfolio consumer loans, by age and class: Current Loans and Leases (b)(c) Past Due Total Loans 90 Days Past December 31, 2019 ($ in millions) 30-89 Days (c) 90 Days or More (c) Total Residential mortgage loans (a) $ 16,372 27 142 169 16,541 50 Consumer loans: Home equity 5,965 61 57 118 6,083 1 Indirect secured consumer loans 11,389 132 17 149 11,538 10 Credit card 2,434 50 48 98 2,532 42 Other consumer loans 2,702 18 3 21 2,723 1 Total portfolio consumer loans (a) $ 38,862 288 267 555 39,417 104 (a) Excludes $183 of residential mortgage loans measured at fair value at December 31, 2019. (b) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2019, $94 of these loans were 30-89 days past due and $261 were 90 days or more past due. The Bancorp recognized $1 of losses during both the three and nine months ended September 30, 2019 due to claim denials and curtailments associated with these insured or guaranteed loans. (c) Includes accrual and nonaccrual loans and leases. Collateral-Dependent Loans and Leases The Bancorp considers a loan or lease to be collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. When a loan or lease is collateral-dependent, its fair value is generally based on the fair value less cost to sell of the underlying collateral. The following table presents the amortized cost basis of the Bancorp’s collateral-dependent loans and leases, by portfolio class: As of September 30, 2020 ($ in millions) Amortized Cost Basis Commercial loans and leases: Commercial and industrial loans $ 877 Commercial mortgage owner-occupied loans 67 Commercial mortgage nonowner-occupied loans 120 Commercial construction loans 20 Commercial leases 15 Total commercial loans and leases 1,099 Residential mortgage loans 114 Consumer loans: Home equity 75 Indirect secured consumer loans 9 Other consumer loans — Total consumer loans 84 Total portfolio loans and leases $ 1,297 Nonperforming Assets Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured loans which have not yet met the requirements to be returned to accrual status; certain restructured consumer and residential mortgage loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table presents the amortized cost basis of the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property: As of September 30, 2020 ($ in millions) For the three months ended September 30, 2020 For the nine months ended September 30, 2020 With an ALLL No Related Total Interest Income Recognized Interest Income Recognized Commercial loans and leases: Commercial and industrial loans $ 354 164 518 2 6 Commercial mortgage owner-occupied loans 17 35 52 — — Commercial mortgage nonowner-occupied loans 86 16 102 — — Commercial leases 11 5 16 — 1 Total nonaccrual portfolio commercial loans and leases 468 220 688 2 7 Residential mortgage loans 10 59 69 7 22 Consumer loans: Home equity 58 31 89 2 7 Indirect secured consumer loans 9 7 16 — — Credit card 26 — 26 1 3 Other consumer loans 3 — 3 — — Total nonaccrual portfolio consumer loans 96 38 134 3 10 Total nonaccrual portfolio loans and leases (a)(b) $ 574 317 891 12 39 OREO and other repossessed property — 40 40 — — Total nonperforming portfolio assets (a)(b) $ 574 357 931 12 39 (a) Excludes $10 of nonaccrual loans held for sale and $1 of nonaccrual restructured loans held for sale. (b) Includes $25 of nonaccrual government insured commercial loans whose repayments are insured by the SBA, of which $13 are restructured nonaccrual government insured commercial loans. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of: ($ in millions) December 31, Commercial loans and leases: Commercial and industrial loans $ 338 Commercial mortgage owner-occupied loans 29 Commercial mortgage nonowner-occupied loans 1 Commercial construction loans 1 Commercial leases 28 Total nonaccrual portfolio commercial loans and leases 397 Residential mortgage loans 91 Consumer loans: Home equity 94 Indirect secured consumer loans 7 Credit card 27 Other consumer loans 2 Total nonaccrual portfolio consumer loans 130 Total nonaccrual portfolio loans and leases (a)(b) $ 618 OREO and other repossessed property 62 Total nonperforming portfolio assets (a)(b) $ 680 (a) Excludes $7 of nonaccrual loans and leases held for sale. (b) Includes $16 of nonaccrual government insured commercial loans whose repayments are insured by the SBA, of which $11 are restructured nonaccrual government insured commercial loans. The Bancorp’s amortized cost basis of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $140 million and $212 million as of September 30, 2020 and December 31, 2019, respectively. Troubled Debt Restructurings A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDRs include concessions granted under reorganization, arrangement or other provisions of the Federal Bankruptcy Act. Within each of the Bancorp’s loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension of the loan’s maturity date with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measure the ALLL for a loan prior to modification, the extent of collateral, and whether any charge-offs were recorded on the loan before or at the time of modification. Refer to the ALLL section of Note 4 for information on the Bancorp’s ALLL methodology. Upon modification of a loan, the Bancorp measures the expected credit loss as either the difference between the amortized cost of the loan and the fair value of collateral less cost to sell or the difference between the estimated future cash flows expected to be collected on the modified loan, discounted at the original effective yield of the loan, and the carrying value of the loan. The resulting measurement may result in the need for minimal or no allowance regardless of which is used because it is probable that all cash flows will be collected under the modified terms of the loan. In addition, if the stated interest rate was increased in a TDR that is not collateral-dependent, the cash flows on the modified loan, using the pre-modification interest rate as the discount rate, often exceed the amortized cost basis of the loan. Conversely, upon a modification that reduces the stated interest rate on a loan that is not collateral-dependent, the Bancorp recognizes an increase to the ALLL. If a TDR involves a reduction of the principal balance of the loan or the loan’s accrued interest, that amount is charged off to the ALLL. Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower are treated as nonaccrual collateral-dependent loans with a charge-off recognized to reduce the carrying values of such loans to the fair value of the related collateral less costs to sell. The Bancorp had commitments to lend additional funds to borrowers whose terms have been modified in a TDR, consisting of line of credit and letter of credit commitments of $111 million and $70 million, respectively, as of September 30, 2020 compared with $41 million and $58 million, respectively, as of December 31, 2019. The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the three months ended: September 30, 2020 ($ in millions) (a) Number of Loans Modified in a TDR During the Period (b) Amortized Cost Basis (Decrease) Charge-offs Commercial loans: Commercial and industrial loans 33 $ 75 1 7 Commercial mortgage owner-occupied loans 10 19 (3) — Commercial mortgage nonowner-occupied loans 3 16 (2) — Residential mortgage loans 66 11 — — Consumer loans: Home equity 88 2 (3) — Indirect secured consumer loans 14 — — — Credit card 1,023 6 2 1 Total portfolio loans 1,237 $ 129 (5) 8 (a) Excludes all loans and leases held for sale. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. September 30, 2019 ($ in millions) (a) Number of Loans Modified in a TDR During the Period (b) Recorded Investment Increase Charge-offs Commercial loans: Commercial and industrial loans 27 $ 72 (1) — Commercial mortgage owner-occupied loans 4 1 — — Residential mortgage loans 256 39 1 — Consumer loans: Home equity 21 1 — — Indirect secured consumer loans 27 — — — Credit card 1,467 8 2 1 Total portfolio loans 1,802 $ 121 2 1 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the nine months ended: September 30, 2020 ($ in millions) (a) Number of Loans Modified in a TDR During the Period (b) Amortized Cost Basis Increase Charge-offs Commercial loans: Commercial and industrial loans 96 $ 250 25 7 Commercial mortgage owner-occupied loans 38 38 (3) — Commercial mortgage nonowner-occupied loans 15 38 (2) — Commercial construction 3 21 1 — Residential mortgage loans 359 48 1 — Consumer loans: Home equity 130 6 (4) — Indirect secured consumer loans 56 — — — Credit card 3,880 21 8 1 Total portfolio loans 4,577 $ 422 26 8 (a) Excludes all loans and leases held for sale. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. September 30, 2019 ($ in millions) (a) Number of Loans Modified in a TDR During the Period (b) Recorded Investment (Decrease) Charge-offs Commercial loans: Commercial and industrial loans 65 $ 168 (15) 5 Commercial mortgage owner-occupied loans 13 10 — — Residential mortgage loans 531 74 1 — Consumer loans: Home equity 58 3 — — Indirect secured consumer loans 65 — — — Credit card 4,250 24 6 3 Total portfolio loans 4,982 $ 279 (8) 8 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual evaluation for an ALLL, the applicable commercial models are applied for purposes of determining the ALLL as well as qualitatively assessing whether those loans are reasonably expected to be further restructured prior to their maturity date and, if so, the impact such a restructuring would have on the remaining contractual life of the loans. When a residential mortgage, home equity, indirect secured consumer or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the expected credit loss is generally limited to the expected net proceeds from the sale of the loan’s underlying collateral and any resulting collateral shortfall is reflected as a charge-off or an increase in ALLL. The Bancorp recognizes an ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default. The following tables provide a summary of TDRs that subsequently defaulted during the three months ended September 30, 2020 and 2019 and were within 12 months of the restructuring date: September 30, 2020 ($ in millions) (a) Number of Amortized Commercial loans: Commercial and industrial loans 6 $ 1 Commercial mortgage owner-occupied loans 1 1 Residential mortgage loans 45 8 Consumer loans: Home equity 2 — Indirect secured consumer loans 6 — Credit card 20 — Total portfolio loans 80 $ 10 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. September 30, 2019 ($ in millions) (a) Number of Recorded Commercial loans: Commercial and industrial loans 1 $ 3 Commercial mortgage owner-occupied loans 2 — Residential mortgage loans 67 10 Consumer loans: Home equity 7 — Credit card 69 — Total portfolio loans 146 $ 13 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. The following tables provide a summary of TDRs that subsequently defaulted during the nine months ended September 30, 2020 and 2019 and were within 12 months of the restructuring date: September 30, 2020 ($ in millions) (a) Number of Amortized Commercial loans: Commercial and industrial loans 12 $ 5 Commercial mortgage owner-occupied loans 8 3 Commercial mortgage nonowner-occupied loans 2 9 Residential mortgage loans 117 18 Consumer loans: Home equity 5 — Indirect secured consumer loans 12 — Credit card 237 1 Total portfolio loans 393 $ 36 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. September 30, 2019 ($ in millions) (a) Number of Recorded Commercial loans: Commercial and industrial loans 8 $ 20 Commercial mortgage owner-occupied loans 4 1 Residential mortgage loans 196 30 Consumer loans: Home equity 12 — Credit card 605 3 Total portfolio loans 825 $ 54 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. C |
Bank Premises and Equipment
Bank Premises and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Bank Premises and Equipment | Bank Premises and Equipment The following table provides a summary of bank premises and equipment as of: ($ in millions) September 30, December 31, Land and improvements (a) $ 626 639 Buildings (a) 1,587 1,575 Equipment 2,254 2,126 Leasehold improvements 450 432 Construction in progress (a) 140 85 Bank premises and equipment held for sale: Land and improvements 27 8 Buildings 17 18 Equipment 1 1 Accumulated depreciation and amortization (3,012) (2,889) Total bank premises and equipment $ 2,090 1,995 (a) At September 30, 2020 and December 31, 2019, land and improvements, buildings and construction in progress included $54 and $51, respectively, associated with parcels of undeveloped land intended for future branch expansion. The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service branches at certain of its existing banking center locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. During the second quarter of 2018, the Bancorp adopted a plan to close approximately 100 to 125 branches over the next three years, exclusive of branches identified for closure as part of the MB Financial, Inc. acquisition. As of September 30, 2020, 100 branches have been closed under this plan. Additionally, the Bancorp has identified 37 branches that it expects to close in the first quarter of 2021. As a result of the MB Financial, Inc. acquisition, the Bancorp identified 46 branches in the Chicago market that it planned to close. Of these locations, 45 were closed in the third quarter of 2019 and the final location was closed in the first quarter of 2020. These 46 branches were not part of the aforementioned plan and were in addition to the branch in the Chicago market that the Bancorp closed in November 2018. In addition, the Bancorp previously identified 11 other non-branch locations that it planned to sell that were acquired from MB Financial, Inc. These locations had a fair value, less cost to sell, of $15 million. Of these locations, seven have been sold as of September 30, 2020. The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Impairment losses associated with such assessments and lower of cost or market adjustments were $11 million and $5 million for the three months ended September 30, 2020 and 2019, respectively, and $25 million and $27 million for the nine months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2019, impairment charges included $14 million associated with Fifth Third branches in the Chicago market that were assessed for impairment as a result of the MB Financial, Inc. acquisition. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income. |
Operating Lease Equipment
Operating Lease Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Operating Lease Equipment | Operating Lease Equipment Operating lease equipment was $818 million and $848 million at September 30, 2020 and December 31, 2019, respectively. The Bancorp recorded lease inco me of $39 million and $44 million relating to lease payments for operating leases in leasing business revenue in the Condensed Consolidated Statements of Income during the three months ended September 30, 2020 and 2019, respectively, and $118 million and $110 million during the nine months ended September 30, 2020 and 2019, respectively. The Bancorp received payments of $119 million and $111 million related to operating leases during the nine months ended September 30, 2020 and 2019, respectively. The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. As a result of these recoverability assessments, the Bancorp recognized $3 million of impairment losses associated with operating lease assets for the nine months ended September 30, 2020 but did not recognize any impairment losses for the three months ended September 30, 2020 or the three and nine months ended September 30, 2019. The recognized impairment losses were recorded in leasing business revenue in the Condensed Consolidated Statements of Income. The following table presents undiscounted future lease payments for operating leases for the remainder of 2020 through 2025 and thereafter: As of September 30, 2020 ($ in millions) Undiscounted Remainder of 2020 $ 39 2021 140 2022 114 2023 85 2024 52 2025 32 Thereafter 44 Total operating lease payments $ 506 |
Lease Obligations - Lessee
Lease Obligations - Lessee | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Obligations, Lessee | Lease Obligations – Lessee The Bancorp leases certain banking centers, ATM sites, land for owned buildings and equipment. The Bancorp’s lease agreements typically do not contain any residual value guarantees or any material restrictive covenants. For more information on the accounting for lease obligations, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019. The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Condensed Consolidated Balance Sheets Caption September 30, December 31, Assets Operating lease right-of-use assets Other assets $ 444 473 Finance lease right-of-use assets Bank premises and equipment 112 34 Total right-of-use assets (a) $ 556 507 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 532 555 Finance lease liabilities Long-term debt 117 35 Total lease liabilities $ 649 590 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $124 and $25, respectively, as of September 30, 2020, and $75 and $27, respectively, as of December 31, 2019. The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended For the nine months ended 2020 2019 2020 2019 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 4 2 7 5 Interest on lease liabilities Interest on long-term debt 1 — 2 — Total finance lease costs $ 5 2 9 5 Operating lease cost Net occupancy expense $ 29 25 76 72 Short-term lease cost Net occupancy expense — — 1 — Variable lease cost Net occupancy expense 7 7 21 23 Sublease income Net occupancy expense (1) (1) (2) (3) Total operating lease costs $ 35 31 96 92 Total lease costs $ 40 33 105 97 The Bancorp performs impairment assessments for ROU assets when events or changes in circumstances indicate that their carrying values may not be recoverable. In addition to the lease costs disclosed in the table above, the Bancorp recognized $1 million and $5 million of impairment losses and termination charges for the ROU assets related to certain operating leases during the three months ended September 30, 2020 and 2019, respectively, and $6 million and $12 million during the nine months ended September 30, 2020 and 2019, respectively. The recognized losses were recorded in net occupancy expense in the Condensed Consolidated Statements of Income. The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2020 through 2025 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities as follows: As of September 30, 2020 ($ in millions) Operating Leases Finance Leases Total Remainder of 2020 $ 22 4 26 2021 84 18 102 2022 80 18 98 2023 72 15 87 2024 63 16 79 2025 56 9 65 Thereafter 242 60 302 Total undiscounted cash flows $ 619 140 759 Less: Difference between undiscounted cash flows and discounted cash flows (87) (23) (110) Present value of lease liabilities $ 532 117 649 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: September 30, Weighted-average remaining lease term (years): Operating leases 9.22 Finance leases 11.94 Weighted-average discount rate: Operating leases 3.10 % Finance leases 2.36 The following table presents information related to lease transactions for the nine months ended: ($ in millions) September 30, September 30, Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 69 72 Operating cash flows from finance leases 2 1 Financing cash flows from finance leases 8 3 Gains on sale and leaseback transactions — 5 (a) The cash flows related to the short-term and variable lease payments are not included in the amounts in the table as they were not included in the measurement of lease liabilities. |
Lease Obligations, Lessee | Lease Obligations – Lessee The Bancorp leases certain banking centers, ATM sites, land for owned buildings and equipment. The Bancorp’s lease agreements typically do not contain any residual value guarantees or any material restrictive covenants. For more information on the accounting for lease obligations, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019. The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Condensed Consolidated Balance Sheets Caption September 30, December 31, Assets Operating lease right-of-use assets Other assets $ 444 473 Finance lease right-of-use assets Bank premises and equipment 112 34 Total right-of-use assets (a) $ 556 507 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 532 555 Finance lease liabilities Long-term debt 117 35 Total lease liabilities $ 649 590 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $124 and $25, respectively, as of September 30, 2020, and $75 and $27, respectively, as of December 31, 2019. The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended For the nine months ended 2020 2019 2020 2019 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 4 2 7 5 Interest on lease liabilities Interest on long-term debt 1 — 2 — Total finance lease costs $ 5 2 9 5 Operating lease cost Net occupancy expense $ 29 25 76 72 Short-term lease cost Net occupancy expense — — 1 — Variable lease cost Net occupancy expense 7 7 21 23 Sublease income Net occupancy expense (1) (1) (2) (3) Total operating lease costs $ 35 31 96 92 Total lease costs $ 40 33 105 97 The Bancorp performs impairment assessments for ROU assets when events or changes in circumstances indicate that their carrying values may not be recoverable. In addition to the lease costs disclosed in the table above, the Bancorp recognized $1 million and $5 million of impairment losses and termination charges for the ROU assets related to certain operating leases during the three months ended September 30, 2020 and 2019, respectively, and $6 million and $12 million during the nine months ended September 30, 2020 and 2019, respectively. The recognized losses were recorded in net occupancy expense in the Condensed Consolidated Statements of Income. The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2020 through 2025 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities as follows: As of September 30, 2020 ($ in millions) Operating Leases Finance Leases Total Remainder of 2020 $ 22 4 26 2021 84 18 102 2022 80 18 98 2023 72 15 87 2024 63 16 79 2025 56 9 65 Thereafter 242 60 302 Total undiscounted cash flows $ 619 140 759 Less: Difference between undiscounted cash flows and discounted cash flows (87) (23) (110) Present value of lease liabilities $ 532 117 649 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: September 30, Weighted-average remaining lease term (years): Operating leases 9.22 Finance leases 11.94 Weighted-average discount rate: Operating leases 3.10 % Finance leases 2.36 The following table presents information related to lease transactions for the nine months ended: ($ in millions) September 30, September 30, Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 69 72 Operating cash flows from finance leases 2 1 Financing cash flows from finance leases 8 3 Gains on sale and leaseback transactions — 5 (a) The cash flows related to the short-term and variable lease payments are not included in the amounts in the table as they were not included in the measurement of lease liabilities. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Business combinations entered into by the Bancorp typically result in the recognition of goodwill. Acquisition activity includes acquisitions in the respective period in addition to purchase accounting adjustments related to previous acquisitions. On March 22, 2019, the Bancorp completed its acquisition of MB Financial, Inc. In connection with the acquisition, the Bancorp recorded $1.8 billion of goodwill in 2019. During the first quarter of 2020, the Bancorp finalized the valuations for the assets acquired, liabilities assumed and noncontrolling interest recognized based on additional information available subsequent to the acquisition date. As a result, the Bancorp recognized additional goodwill of $9 million in connection with the acquisition of MB Financial, Inc. during the three months ended March 31, 2020. The Bancorp completed its annual goodwill impairment test as of September 30, 2020 and the estimated fair values of the Commercial Banking, Branch Banking and Wealth and Asset Management reporting units exceeded their carrying values, including goodwill. Changes in the net carrying amount of goodwill, by reporting unit, for the nine months ended September 30, 2020 and the year ended December 31, 2019 were as follows: ($ in millions) Commercial Branch Consumer Wealth General Total Goodwill $ 1,380 1,655 215 193 — 3,443 Accumulated impairment losses (750) — (215) — — (965) Net carrying value as of December 31, 2018 $ 630 1,655 — 193 — 2,478 Acquisition activity 1,324 391 — 62 — 1,777 Sale of business — — — (3) — (3) Net carrying value as of December 31, 2019 $ 1,954 2,046 — 252 — 4,252 Acquisition activity 7 1 — 1 — 9 Net carrying value as of September 30, 2020 $ 1,961 2,047 — 253 — 4,261 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of core deposit intangibles, customer relationships, operating leases, non-compete agreements, trade names and books of business. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives and, based on the type of intangible asset, the amortization expense may be recorded in either other noninterest income or other noninterest expense in the Condensed Consolidated Statements of Income. On March 22, 2019, the Bancorp completed its acquisition of MB Financial, Inc. In connection with the acquisition, the Bancorp recorded a $195 million core deposit intangible asset with a weighted-average amortization period of 7.2 years. Additionally, the Bancorp recorded a $24 million operating lease intangible asset with a weighted-average amortization period of 1.7 years. The fair values of these intangibles were finalized as of March 31, 2020. The details of the Bancorp’s intangible assets are shown in the following table: ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount As of September 30, 2020 Core deposit intangibles $ 229 (104) 125 Customer relationships 29 (7) 22 Operating leases 19 (13) 6 Non-compete agreements 3 (2) 1 Other 4 (1) 3 Total intangible assets $ 284 (127) 157 As of December 31, 2019 Core deposit intangibles $ 229 (70) 159 Customer relationships 29 (6) 23 Operating leases 23 (9) 14 Non-compete agreements 13 (11) 2 Other 4 (1) 3 Total intangible assets $ 298 (97) 201 As of September 30, 2020, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $13 million and $14 million for the three months ended September 30, 2020 and 2019, respectively, and $43 million and $31 million for the nine months ended September 30, 2020 and 2019, respectively. The Bancorp’s projections of amortization expense shown in the following table are based on existing asset balances as of September 30, 2020. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2020 through 2024 is as follows: ($ in millions) Total Remainder of 2020 $ 13 2021 43 2022 33 2023 24 2024 16 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Bancorp, in the normal course of business, engages in a variety of activities that involve VIEs, which are legal entities that lack sufficient equity at risk to finance their activities without additional subordinated financial support or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp 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. If the Bancorp is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. Consolidated VIEs The following table provides a summary of the classifications of consolidated VIE assets and liabilities included in the Condensed Consolidated Balance Sheets for automobile loan securitizations as of: ($ in millions) September 30, December 31, Assets: Other short-term investments $ 61 74 Indirect secured consumer loans 887 1,354 ALLL (9) (7) Other assets 5 8 Total assets $ 944 1,429 Liabilities: Other liabilities $ 2 2 Long-term debt 786 1,253 Total liabilities $ 788 1,255 Automobile loan securitizations In a securitization transaction that occurred in 2019, the Bancorp transferred approximately $1.43 billion in automobile loans to a bankruptcy remote trust which was deemed to be a VIE. This trust then subsequently issued approximately $1.37 billion of asset-backed notes, of which approximately $68 million were retained by the Bancorp. The Bancorp also has previously completed securitization transactions in which the Bancorp transferred certain consumer automobile loans to bankruptcy remote trusts which were also deemed to be VIEs. In each of these securitization transactions, the primary purposes of the VIEs were to issue asset-backed securities with varying levels of credit subordination and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIEs and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIEs that could potentially be significant to the VIEs. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs. As a result, the Bancorp concluded that it is the primary beneficiary of the VIEs and has consolidated these VIEs. The assets of the VIEs are restricted to the settlement of the asset-backed securities and other obligations of the VIEs. The third-party holders of the asset-backed notes do not have recourse to the general assets of the Bancorp. The economic performance of the VIEs is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIEs are exposed include credit risk and prepayment risk. The credit and prepayment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classes of asset-backed securities to other classes. Non-consolidated VIEs The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: September 30, 2020 ($ in millions) Total Total Maximum CDC investments $ 1,473 436 1,473 Private equity investments 96 — 182 Loans provided to VIEs 2,515 — 3,781 Lease pool entities 75 — 75 December 31, 2019 ($ in millions) Total Total Maximum CDC investments $ 1,435 428 1,435 Private equity investments 89 — 164 Loans provided to VIEs 2,715 — 4,083 Lease pool entities 74 — 74 CDC investments CDC, a wholly-owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas and preserve historic landmarks. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development. The entities are usually formed as limited partnerships and LLCs and CDC typically invests as a limited partner/investor member in the form of equity contributions. The economic performance of the VIEs is driven by the performance of their underlying investment projects as well as the VIEs’ ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. The Bancorp has determined that it is not the primary beneficiary of these VIEs because it lacks the power to direct the activities that most significantly impact the economic performance of the underlying project or the VIEs’ ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. This power is held by the managing members who exercise full and exclusive control of the operations of the VIEs. For information regarding the Bancorp’s accounting for these investments, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019. The Bancorp’s funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Bancorp’s maximum exposure to loss as a result of its involvement with the VIEs is limited to the carrying amounts of the investments, including the unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Condensed Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp’s risk. At both September 30, 2020 and December 31, 2019, the Bancorp’s CDC investments included $1.2 billion of investments in affordable housing tax credits recognized in other assets in the Condensed Consolidated Balance Sheets. The unfunded commitments related to these investments were $436 million and $428 million at September 30, 2020 and December 31, 2019, respectively. The unfunded commitments as of September 30, 2020 are expected to be funded from 2020 to 2036. The Bancorp has accounted for all of its qualifying LIHTC investments using the proportional amortization method of accounting. The following table summarizes the impact to the Condensed Consolidated Statements of Income related to these investments: Condensed Consolidated Statements of Income Caption (a) For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Proportional amortization Applicable income tax expense $ 62 31 $ 94 105 Tax credits and other benefits Applicable income tax expense (74) (35) (111) (122) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three and nine months ended September 30, 2020 and 2019. Private equity investments The Bancorp invests as a limited partner in private equity investments which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp’s commercial products. Each of the limited partnerships has an unrelated third-party general partner responsible for appointing the fund manager. The Bancorp has not been appointed fund manager for any of these private equity investments. The funds finance primarily all of their activities from the partners’ capital contributions and investment returns. The Bancorp has determined that it is not the primary beneficiary of the funds because it does not have the obligation to absorb the funds’ expected losses or the right to receive the funds’ expected residual returns that could potentially be significant to the funds and lacks the power to direct the activities that most significantly impact the economic performance of the funds. The Bancorp, as a limited partner, does not have substantive participating or substantive kick-out rights over the general partner. Therefore, the Bancorp accounts for its investments in these limited partnerships under the equity method of accounting. The Bancorp is exposed to losses arising from the negative performance of the underlying investments in the private equity investments. As a limited partner, the Bancorp’s maximum exposure to loss is limited to the carrying amounts of the investments plus unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, are presented in previous tables. Also, at September 30, 2020 and December 31, 2019, the Bancorp’s unfunded commitment amounts to the private equity funds were $86 million and $75 million, respectively. As part of previous commitments, the Bancorp made capital contributions to private equity investments of $4 million and $2 million during the three months ended September 30, 2020 and 2019, respectively and $10 million and $9 million during the nine months ended September 30, 2020 and 2019, respectively. Loans provided to VIEs The Bancorp has provided funding to certain unconsolidated VIEs sponsored by third parties. These VIEs are generally established to finance certain consumer and small business loans originated by third parties. The entities are primarily funded through the issuance of a loan from the Bancorp or a syndication through which the Bancorp is involved. The sponsor/administrator of the entities is responsible for servicing the underlying assets in the VIEs. Because the sponsor/administrator, not the Bancorp, holds the servicing responsibilities, which include the establishment and employment of default mitigation policies and procedures, the Bancorp does not hold the power to direct the activities that most significantly impact the economic performance of the entity and, therefore, is not the primary beneficiary. The principal risk to which these entities are exposed is credit risk related to the underlying assets. The Bancorp’s maximum exposure to loss is equal to the carrying amounts of the loans and unfunded commitments to the VIEs. The Bancorp’s outstanding loans to these VIEs are included in commercial loans in Note 6. As of September 30, 2020 and December 31, 2019, the Bancorp’s unfunded commitments to these entities were $1.3 billion and $1.4 billion, respectively. The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. Lease pool entities As a result of the acquisition of MB Financial, Inc., the Bancorp co-invested with other unrelated leasing companies in three LLCs designed for the purpose of purchasing pools of residual interests in leases which have been originated or purchased by the other investing member. For each LLC, the leasing company is the managing member and has full authority over the day-to-day operations of the entity. While the Bancorp holds more than 50% of the equity interests in each LLC, the operating agreements require both members to consent to significant corporate actions, such as liquidating the entity or removing the manager. In addition, the Bancorp has a preference with regards to distributions such that all of the Bancorp’s equity contribution for each pool must be distributed, plus a pre-defined rate of return, before the other member may receive distributions. The leasing company is also entitled to the return of its investment plus a pre-defined rate of return before any residual profits are distributed to the members. The lease pool entities are primarily subject to risk of losses on the lease residuals purchased. The Bancorp has determined that it is not the primary beneficiary of these VIEs because it does not have the power to direct the activities that most significantly impact the economic performance of the entities. This power is held by the leasing company, who as managing member controls the servicing of the leases and collection of the proceeds on the residual interests. |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Sales of Receivables and Servicing Rights | 14. Sales of Receivables and Servicing Rights Residential Mortgage Loan Sales The Bancorp sold fixed and adjustable-rate residential mortgage loans during both the three and nine months ended September 30, 2020 and 2019. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties; however, the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay when due. The Bancorp receives servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Residential mortgage loan sales (a) $ 2,822 2,397 8,840 5,212 Origination fees and gains on loan sales 93 64 269 126 Gross mortgage servicing fees 66 71 197 196 (a) Represents the unpaid principal balance at the time of the sale. Servicing Rights The Bancorp measures all of its servicing rights at fair value with changes in fair value reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. The following table presents changes in the servicing rights related to residential mortgage loans for the nine months ended September 30: ($ in millions) 2020 2019 Balance, beginning of period $ 993 938 Servicing rights originated 150 99 Servicing rights purchased 36 26 Servicing rights obtained in acquisition — 263 Changes in fair value: Due to changes in inputs or assumptions (a) (340) (294) Other changes in fair value (b) (179) (122) Balance, end of period $ 660 910 (a) Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates. (b) Primarily reflects changes due to collection of contractual cash flows and the passage of time. The Bancorp maintains a non-qualifying hedging strategy to manage a portion of the risk associated with changes in the value of the MSR portfolio. This strategy may include the purchase of free-standing derivatives and various available-for-sale debt and trading debt securities. The interest income, mark-to-market adjustments and gain or loss from sale activities associated with these portfolios are expected to economically hedge a portion of the change in value of the MSR portfolio caused by fluctuating OAS, earnings rates and prepayment speeds. The fair value of the servicing asset is based on the present value of expected future cash flows. The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Securities gains (losses), net – non-qualifying hedges on MSRs $ (1) — 3 5 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) (12) 130 348 308 MSR fair value adjustment due to changes in inputs or assumptions (a) 4 (120) (340) (294) (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. The key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization or purchase resulting from transactions completed during the three months ended September 30, 2020 and 2019 were as follows: September 30, 2020 September 30, 2019 Rate Weighted- Prepayment OAS Weighted- Prepayment OAS Residential mortgage loans: Servicing rights Fixed 5.9 12.2 % 780 5.5 13.7 % 543 Servicing rights Adjustable 3.1 25.7 % 759 — — — Based on historical credit experience, expected credit losses for residential mortgage loan servicing rights have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At September 30, 2020 and December 31, 2019, the Bancorp serviced $73.5 billion and $80.7 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. At September 30, 2020, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS are as follows: Prepayment OAS Fair Weighted- Impact of Adverse Change OAS Impact of ($ in millions) (a) Rate Rate 10% 20% 50% 10% 20% Residential mortgage loans: Servicing rights Fixed $ 652 4.1 18.2 % $ (22) (42) (94) 918 $ (18) (35) Servicing rights Adjustable 8 3.7 21.2 (1) (1) (2) 938 — — (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial. These sensitivities are hypothetical and should be used with caution. As the figures indicate, changes in fair value based on these variations in the assumptions typically cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. The Bancorp believes that variations of these levels are reasonably possible; however, there is the potential that adverse changes in key assumptions could be even greater. Also, in the previous table, the effect of a variation in a particular assumption on the fair value of the interests that continue to be held by the Bancorp is calculated without changing any other assumption; in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which might magnify or counteract these sensitivities. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Bancorp maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce certain risks related to interest rate, prepayment and foreign currency volatility. Additionally, the Bancorp holds derivative instruments for the benefit of its commercial customers and for other business purposes. The Bancorp does not enter into unhedged speculative derivative positions. The Bancorp’s interest rate risk management strategy involves modifying the repricing characteristics of certain financial instruments so that changes in interest rates do not adversely affect the Bancorp’s net interest margin and cash flows. Derivative instruments that the Bancorp may use as part of its interest rate risk management strategy include interest rate swaps, interest rate floors, interest rate caps, forward contracts, forward starting interest rate swaps, options, swaptions and TBA securities. Interest rate swap contracts are exchanges of interest payments, such as fixed-rate payments for floating-rate payments, based on a stated notional amount and maturity date. Interest rate floors protect against declining rates, while interest rate caps protect against rising interest rates. Forward contracts are contracts in which the buyer agrees to purchase, and the seller agrees to make delivery of, a specific financial instrument at a predetermined price or yield. Options provide the purchaser with the right, but not the obligation, to purchase or sell a contracted item during a specified period at an agreed-upon price. Swaptions are financial instruments granting the owner the right, but not the obligation, to enter into or cancel a swap. Prepayment volatility arises mostly from changes in fair value of the largely fixed-rate MSR portfolio, mortgage loans and mortgage-backed securities. The Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBA securities and interest rate swaps) to economically hedge prepayment volatility. Principal-only swaps are total return swaps based on changes in the value of the underlying mortgage principal-only trust. TBA securities are a forward purchase agreement for a mortgage-backed securities trade whereby the terms of the security are undefined at the time the trade is made. Foreign currency volatility occurs as the Bancorp enters into certain loans denominated in foreign currencies. Derivative instruments that the Bancorp may use to economically hedge these foreign denominated loans include foreign exchange swaps and forward contracts. The Bancorp also enters into derivative contracts (including foreign exchange contracts, commodity contracts and interest rate contracts) for the benefit of commercial customers and other business purposes. The Bancorp economically hedges significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable and independent counterparties with substantially matching terms and currencies. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Bancorp’s exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. Credit risk is minimized through credit approvals, limits, counterparty collateral and monitoring procedures. The fair value of derivative instruments is presented on a gross basis, even when the derivative instruments are subject to master netting arrangements. Derivative instruments with a positive fair value are reported in other assets in the Condensed Consolidated Balance Sheets while derivative instruments with a negative fair value are reported in other liabilities in the Condensed Consolidated Balance Sheets. Cash collateral payables and receivables associated with the derivative instruments are not added to or netted against the fair value amounts with the exception of certain variation margin payments that are considered legal settlements of the derivative contracts. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlements, the variation margin payments are applied to net the fair value of the respective derivative contracts. The Bancorp’s derivative assets include certain contractual features in which the Bancorp requires the counterparties to provide collateral in the form of cash and securities to offset changes in the fair value of the derivatives, including changes in the fair value due to credit risk of the counterparty. As of September 30, 2020 and December 31, 2019, the balance of collateral held by the Bancorp for derivative assets was $1.1 billion and $894 million, respectively. For derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlement of the derivative contract, the payments for variation margin of $1.2 billion and $623 million were applied to reduce the respective derivative contracts and were also not included in the total amount of collateral held as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020 and December 31, 2019, the credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts was $53 million and $17 million, respectively. In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments with counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp’s credit risk. As of September 30, 2020 and December 31, 2019, the balance of collateral posted by the Bancorp for derivative liabilities was $454 million and $347 million, respectively. Additionally, as of September 30, 2020 and December 31, 2019, $1.3 billion and $488 million, respectively, of variation margin payments were applied to the respective derivative contracts to reduce the Bancorp’s derivative liabilities and were also not included in the total amount of collateral posted. Certain of the Bancorp’s derivative liabilities contain credit-risk-related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of both September 30, 2020 and December 31, 2019, the fair value of the additional collateral that could be required to be posted as a result of the credit-risk-related contingent features being triggered was immaterial to the Bancorp’s Condensed Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result, the Bancorp determined that the impact of the Bancorp’s credit risk to the valuation of its derivative liabilities was immaterial to the Bancorp’s Condensed Consolidated Financial Statements. The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-standing derivatives. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value September 30, 2020 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 1,955 581 — Total fair value hedges 581 — Cash flow hedges: Interest rate floors related to C&I loans 3,000 265 — Interest rate swaps related to C&I loans 8,000 — 1 Total cash flow hedges 265 1 Total derivatives designated as qualifying hedging instruments 846 1 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 6,560 227 1 Forward contracts related to residential mortgage loans held for sale 3,087 2 10 Swap associated with the sale of Visa, Inc. Class B Shares 3,280 — 188 Foreign exchange contracts 169 3 — Interest rate contracts for collateral management 12,000 1 1 Commercial loan trading 6 — — Interest rate swaps 750 — — Total free-standing derivatives – risk management and other business purposes 233 200 Free-standing derivatives – customer accommodation: Interest rate contracts (a) 79,286 1,399 293 Interest rate lock commitments 3,044 85 — Commodity contracts 7,441 483 488 TBA securities 67 — — Foreign exchange contracts 13,154 176 136 Total free-standing derivatives – customer accommodation 2,143 917 Total derivatives not designated as qualifying hedging instruments 2,376 1,117 Total $ 3,222 1,118 (a) Derivative assets and liabilities are presented net of variation margin of $50 and $1,211, respectively. Fair Value December 31, 2019 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 393 — Total fair value hedges 393 — Cash flow hedges: Interest rate floors related to C&I loans 3,000 115 — Interest rate swaps related to C&I loans 8,000 — 2 Total cash flow hedges 115 2 Total derivatives designated as qualifying hedging instruments 508 2 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 6,420 131 2 Forward contracts related to residential mortgage loans held for sale 2,901 1 5 Swap associated with the sale of Visa, Inc. Class B Shares 3,082 — 163 Foreign exchange contracts 195 — 5 Total free-standing derivatives – risk management and other business purposes 132 175 Free-standing derivatives – customer accommodation: Interest rate contracts (a) 73,327 579 148 Interest rate lock commitments 907 18 — Commodity contracts 8,525 271 270 TBA securities 50 — — Foreign exchange contracts 14,144 165 146 Total free-standing derivatives – customer accommodation 1,033 564 Total derivatives not designated as qualifying hedging instruments 1,165 739 Total $ 1,673 741 (a) Derivative assets and liabilities are presented net of variation margin of $40 and $493, respectively. Fair Value Hedges The Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate. Decisions to convert fixed-rate funding to floating are made primarily through consideration of the asset/liability mix of the Bancorp, the desired asset/liability sensitivity and interest rate levels. As of September 30, 2020, certain interest rate swaps met the criteria required to qualify for the shortcut method of accounting that permits the assumption of perfect offset. For all designated fair value hedges of interest rate risk as of September 30, 2020 that were not accounted for under the shortcut method of accounting, the Bancorp performed an assessment of hedge effectiveness using regression analysis with changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk recorded in the same income statement line in current period net income. On September 30, 2020, the Bancorp redeemed $750 million of unsecured senior fixed-rate bank notes which were issued by its banking subsidiary, Fifth Third Bank, National Association. Prior to this redemption, the Bancorp held an interest rate swap with a notional amount of $750 million and an October of 2020 maturity which was designated as a fair value hedge related to these senior bank notes. The Bancorp continued to hold the interest rate swap as of September 30, 2020 but de-designated hedge accounting for this instrument upon redemption of the unsecured senior bank notes. The interest rate swap was classified as a free-standing derivative for risk management and other business purposes as of September 30, 2020. The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income: Condensed Consolidated For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Change in fair value of interest rate swaps hedging long- term debt Interest on long-term debt $ (39) 75 187 219 Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 39 (74) (186) (214) The following amounts were recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of: ($ in millions) Condensed Consolidated September 30, Carrying amount of the hedged items Long-term debt $ 2,531 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt 588 Cash Flow Hedges The Bancorp may enter into interest rate swaps to convert floating-rate assets and liabilities to fixed rates or to hedge certain forecasted transactions for the variability in cash flows attributable to the contractually specified interest rate. The assets or liabilities may be grouped in circumstances where they share the same risk exposure that the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit cash flow variability of floating-rate assets and liabilities. As of September 30, 2020, all hedges designated as cash flow hedges were assessed for effectiveness using regression analysis. The entire change in the fair value of the interest rate swap included in the assessment of hedge effectiveness is recorded in AOCI and reclassified from AOCI to current period earnings when the hedged item affects earnings. As of September 30, 2020, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 51 months. Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income in the Condensed Consolidated Statements of Income. As of September 30, 2020 and December 31, 2019, $786 million and $422 million, respectively, of net deferred gains, net of tax, on cash flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of September 30, 2020 , $225 million in net unrealized gains, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next 12 months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to September 30, 2020. During both the three and nine months ended September 30, 2020 and 2019, there were no gains or losses rec lassified from AOCI i nto earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP. The following table presents the pre-tax net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Amount of pre-tax net gains recognized in OCI $ 1 105 625 456 Amount of pre-tax net gains reclassified from OCI into net income 72 5 165 2 Free-Standing Derivative Instruments – Risk Management and Other Business Purposes As part of its overall risk management strategy relative to its mortgage banking activity, the Bancorp may enter into various free-standing derivatives (principal-only swaps, interest rate swaptions, interest rate floors, mortgage options, TBA securities and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBOR spread because these swaps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment environment. Receive fixed/pay floating interest rate swaps and swaptions increase in value when interest rates do not increase as quickly as expected. The Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. IRLCs issued on residential mortgage loan commitments that will be held for sale are also considered free-standing derivative instruments and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. Revaluation gains and losses from free-standing derivatives related to mortgage banking activity are recorded as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income. In conjunction with the sale of Visa, Inc. Class B Shares in 2009, the Bancorp entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. This total return swap is accounted for as a free-standing derivative. Refer to Note 24 for further discussion of significant inputs and assumptions used in the valuation of this instrument. The Bancorp entered into certain interest rate swap contracts for the purpose of managing its collateral positions across the two derivatives clearinghouses. These interest rate swaps were perfectly offsetting positions that allowed the Bancorp to lower the cash posted as required initial margin at the clearinghouses, which reduced its credit exposure to the clearinghouses. Given that all relevant terms for these interest rate swaps are offsetting, these trades create no additional market risk for the Bancorp. The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Condensed Consolidated For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 7 11 (4) 6 Interest rate contracts related to MSR portfolio Mortgage banking net revenue (12) 130 348 308 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (3) 2 4 (3) Equity contracts: Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (22) (11) (73) (63) Free-Standing Derivative Instruments – Customer Accommodation The majority of the free-standing derivative instruments the Bancorp enters into are for the benefit of its commercial customers. These derivative contracts are not designated against specific assets or liabilities on the Condensed Consolidated Balance Sheets or to forecasted transactions and, therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of commercial banking revenue or other noninterest income in the Condensed Consolidated Statements of Income. The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of September 30, 2020 and December 31, 2019, the total notional amount of the risk participation agreements was $3.5 billion and $3.9 billion, respectively, and the fair value was a liability of $8 million at both September 30, 2020 and December 31, 2019, which is included in other liabilities in the Condensed Consolidated Balance Sheets. As of September 30, 2020, the risk participation agreements had a weighted-average remaining life of 3.6 years. The Bancorp’s maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves in its loan and lease portfolio. Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of: ($ in millions) September 30, December 31, Pass $ 3,124 3,841 Special mention 265 86 Substandard 132 16 Total $ 3,521 3,943 The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Condensed Consolidated For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Interest rate contracts: Interest rate contracts for customers (contract revenue) Commercial banking revenue $ 5 12 31 30 Interest rate contracts for customers (credit losses) Other noninterest expense (1) — (1) — Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 (5) (33) (18) Interest rate lock commitments Mortgage banking net revenue 54 50 237 108 Commodity contracts: Commodity contracts for customers (contract revenue) Commercial banking revenue 4 3 10 6 Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) — (2) — Commodity contracts for customers (credit losses) Other noninterest expense — — (1) — Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Commercial banking revenue 14 12 40 36 Foreign exchange contracts for customers (contract revenue) Other noninterest income (6) 7 (3) 15 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 — (1) — Offsetting Derivative Financial Instruments The Bancorp’s derivative transactions are generally governed by ISDA Master Agreements and similar arrangements, which include provisions governing the setoff of assets and liabilities between the parties. When the Bancorp has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amounts eligible for setoff, including the collateral received as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment or booking office. The Bancorp’s policy is to present its derivative assets and derivative liabilities on the Condensed Consolidated Balance Sheets on a gross basis, even when provisions allowing for setoff are in place. However, for derivative contracts cleared through certain central clearing parties who have modified their rules to treat variation margin payments as settlements, the fair value of the respective derivative contracts is reported net of the variation margin payments. Collateral amounts included in the tables below consist primarily of cash and highly rated government-backed securities and do not include variation margin payments for derivative contracts with legal rights of setoff for both periods shown. The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Recognized in the Condensed Consolidated Balance Sheets (a) Gross Amounts Not Offset in the As of September 30, 2020 ($ in millions) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 3,137 (698) (795) 1,644 Total assets 3,137 (698) (795) 1,644 Liabilities: Derivatives 1,118 (698) (159) 261 Total liabilities $ 1,118 (698) (159) 261 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. Gross Amount Recognized in the Condensed Consolidated Balance Sheets (a) Gross Amounts Not Offset in the As of December 31, 2019 ($ in millions) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,655 (417) (504) 734 Total assets 1,655 (417) (504) 734 Liabilities: Derivatives 741 (417) (97) 227 Total liabilities $ 741 (417) (97) 227 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. |
Other Short-Term Borrowings
Other Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Short-term Debt [Abstract] | |
Other Short-Term Borrowings | Other Short-Term Borrowings Borrowings with original maturities of one year or less are classified as short-term. The following table presents a summary of the Bancorp’s other short-term borrowings as of: ($ in millions) September 30, December 31, Securities sold under repurchase agreements $ 659 469 Derivative collateral 487 542 Other secured borrowings 50 — Total other short-term borrowings $ 1,196 1,011 The Bancorp’s securities sold under repurchase agreements are accounted for as secured borrowings and are collateralized by securities included in available-for-sale debt and other securities in the Condensed Consolidated Balance Sheets. These securities are subject to changes in market value and, therefore, the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value. As of both September 30, 2020 and December 31, 2019, all securities sold under repurchase agreements were secured by agency residential mortgage-backed securities and the repurchase agreements have an overnight remaining contractual maturity. As of September 30, 2020, other secured borrowings consist of obligations recognized by the Bancorp under ASC Topic 860 related to certain loans sold to GNMA and serviced by the Bancorp. Under ASC Topic 860, once the Bancorp has the unilateral right to repurchase the GNMA loans due to the borrower missing three consecutive payments, the Bancorp is considered to have regained effective control over the loan. As such, the Bancorp is required to recognize both the loan and the repurchase liability on the balance sheet, regardless of the intent to repurchase the loans. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On January 31, 2020, the Bank issued and sold, under its bank notes program, $1.25 billion in aggregate principal amount of senior fixed-rate notes. The bank notes consisted of $650 million of 1.80% senior fixed-rate notes, with a maturity of three years, due on January 30, 2023; and $600 million of 2.25% senior fixed-rate notes, with a maturity of seven years, due on February 1, 2027. On or after the date that is 30 days before the maturity date, the 1.80% senior fixed-rate notes will be redeemable, in whole or in part, at any time and from time to time, at the Bank’s option at a redemption price equal to 100% of the aggregate principal amount of the 1.80% senior fixed-rate notes being redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. The 2.25% senior fixed-rate notes will be redeemable at the Bank’s option, in whole or in part, at any time or from time to time, on or after July 31, 2020, and prior to January 4, 2027 (the “Applicable Par Call Date”), in each case at a redemption price, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date, equal to the greater of: (a) 100% of the aggregate principal amount of the 2.25% senior fixed-rate notes being redeemed on that redemption date; and (b) the sum of the present values of the remaining scheduled payments of principal and interest on the 2.25% senior fixed-rate notes being redeemed that would be due if the 2.25% senior fixed-rate notes to be redeemed matured on the Applicable Par Call Date (not including any portion of such payments of interest accrued to the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus the Applicable Spread for the Notes to be redeemed. Additionally, on or after January 4, 2027, the 2.25% senior fixed-rate notes will also be redeemable, in whole or in part, at any time and from time to time, at the Bank’s option at a redemption price equal to 100% of the aggregate principal amount of the 2.25% senior fixed-rate notes being redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. On May 5, 2020, the Bancorp issued and sold $1.25 billion in aggregate principal amount of senior fixed-rate notes. The notes consisted of $500 million of 1.625% senior fixed-rate notes, with a maturity of three years, due on May 5, 2023; and $750 million of 2.55% senior fixed-rate notes, with a maturity of seven years, due on May 5, 2027. The 1.625% and 2.55% senior fixed-rate notes will be redeemable on or after |
Capital Actions
Capital Actions | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Capital Actions | Capital ActionsOn July 30, 2020, the Bancorp issued in a registered public offering 350,000 depositary shares, representing 14,000 shares of 4.50% fixed-rate reset non-cumulative perpetual preferred stock, Series L, for net proceeds of approximately $346 million. Each preferred share has a $25,000 liquidation preference. The preferred stock accrues dividends on a non-cumulative basis at an annual rate of 4.50% through but excluding September 30, 2025. From, and including, September 30, 2025 and for each dividend reset period thereafter, dividends will accrue on the Series L preferred stock, on a non-cumulative basis, at a rate equal to the five-year U.S. Treasury rate as of the most recent reset dividend determination date plus 4.215%. Dividends will be payable, when, as and if declared by the Bancorp's Board of Directors, quarterly in arrears on each of March 31, June 30, September 30 and December 31, beginning on September 30, 2020. Subject to obtaining all required regulatory approvals, on any dividend payment date on or after September 30, 2025, the Bancorp may redeem the Series L preferred stock and the related depositary shares in whole or in part, at 100% of their liquidation preference, plus an amount equal to any declared and unpaid dividends, without accumulation of any undeclared dividends. In addition, the Series L preferred stock and the related depositary shares may be redeemed, subject to obtaining all required regulatory approvals, in whole but not in part, at any time, following the occurrence of a regulatory capital event, at 100% of their liquidation preference, plus an amount equal to any declared and unpaid dividends, without accumulation of any undeclared dividends. The Series L preferred shares are not convertible into Bancorp common shares or any other securities. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingent Liabilities and Guarantees | Commitments, Contingent Liabilities and Guarantees The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers. The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities. These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Condensed Consolidated Balance Sheets. The creditworthiness of counterparties for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp’s credit policies. The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Condensed Consolidated Balance Sheets are discussed in the following sections. Commitments The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: ($ in millions) September 30, December 31, Commitments to extend credit $ 73,903 75,696 Forward contracts related to residential mortgage loans held for sale 3,087 2,901 Letters of credit 1,900 2,137 Purchase obligations 132 113 Capital commitments for private equity investments 86 75 Capital expenditures 80 84 Commitments to extend credit Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and the Bancorp’s exposure is limited to the replacement value of those commitments. As of September 30, 2020 and December 31, 2019, the Bancorp had a reserve for unfunded commitments, including letters of credit, totaling $182 million and $144 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio. Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of: ($ in millions) September 30, December 31, Pass $ 70,735 74,654 Special mention 2,165 633 Substandard 1,003 408 Doubtful — 1 Total commitments to extend credit $ 73,903 75,696 Letters of credit Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of September 30, 2020: ($ in millions) Less than 1 year (a) $ 1,014 1 - 5 years (a) 884 Over 5 years 2 Total letters of credit $ 1,900 (a) Includes $3 and $2 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 -5 years, respectively. Standby letters of credit accounted for approximately 99% of total letters of credit at both September 30, 2020 and December 31, 2019, and are considered guarantees in accordance with U.S. GAAP. Approximately 67% and 66% of the total standby letters of credit were collateralized as of September 30, 2020 and December 31, 2019, respectively. In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The reserve related to these standby letters of credit, which was included in the total reserve for unfunded commitments, was $32 million and $20 million at September 30, 2020 and December 31, 2019, respectively. The Bancorp monitors the credit risk associated with letters of credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio. Risk ratings of outstanding letters of credit under this risk rating system are summarized in the following table as of: ($ in millions) September 30, December 31, Pass $ 1,663 2,005 Special mention 102 20 Substandard 135 111 Doubtful — 1 Total letters of credit $ 1,900 2,137 At September 30, 2020 and December 31, 2019, the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon proper advance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of September 30, 2020 and December 31, 2019, total VRDNs in which the Bancorp was the remarketing agent or that were supported by a Bancorp letter of credit were $405 million and $449 million, respectively, of which FTS acted as the remarketing agent to issuers on $405 million and $445 million, respectively. As remarketing agent, FTS is responsible for actively remarketing VRDNs to other investors when they have been tendered. If another investor is not identified, FTS may choose to purchase the VRDNs into inventory at its discretion while it continues to remarket them. If FTS purchases the VRDNs into inventory, it can subsequently tender back the VRDNs to the issuer’s trustee with proper advance notice. The Bancorp issued letters of credit, as a credit enhancement, to $161 million and $187 million of the VRDNs remarketed by FTS, in addition to zero and $3 million in VRDNs remarketed by third parties at September 30, 2020 and December 31, 2019, respectively. These letters of credit are included in the total letters of credit balance provided in the previous table. The Bancorp held zero and $3 million of these VRDNs in its portfolio and classified them as trading securities at September 30, 2020 and December 31, 2019, respectively. Forward contracts related to residential mortgage loans held for sale The Bancorp enters into forward contracts to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of significant commitments table for all periods presented. Other commitments The Bancorp has entered into a limited number of agreements for work related to banking center construction and to purchase goods or services. Contingent Liabilities Legal claims There are legal claims pending against the Bancorp and its subsidiaries that have arisen in the normal course of business. Refer to Note 20 for additional information regarding these proceedings. Guarantees The Bancorp has performance obligations upon the occurrence of certain events under financial guarantees provided in certain contractual arrangements as discussed in the following sections. Residential mortgage loans sold with representation and warranty provisions Conforming residential mortgage loans sold to unrelated third parties are generally sold with representation and warranty provisions. A contractual liability arises only in the event of a breach of these representations and warranties and, in general, only when a loss results from the breach. The Bancorp may be required to repurchase any previously sold loan, or indemnify or make whole the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. For more information on how the Bancorp establishes the residential mortgage repurchase reserve, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019. As of September 30, 2020 and December 31, 2019, the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $7 million and $6 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp uses the best information available when estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of September 30, 2020 are reasonably possible. The Bancorp currently estimates that it is reasonably possible that it could incur losses related to mortgage representation and warranty provisions in an amount up to approximately $9 million in excess of amounts reserved. This estimate was derived by modifying the key assumptions to reflect management’s judgment regarding reasonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the recorded mortgage representation and warranty reserve or this estimate of reasonably possible losses, depending on the outcome of various factors, including those previously discussed. For both the three months ended September 30, 2020 and 2019, the Bancorp paid an immaterial amount in the form of make-whole payments and repurchased $6 million and $7 million, respectively, in outstanding principal of loans to satisfy investor demands. For both the nine months ended September 30, 2020 and 2019, the Bancorp paid an immaterial amount in the form of make-whole payments and repurchased $19 million and $20 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the three months ended September 30, 2020 and 2019 were $8 million and $10 million, respectively. Total repurchase demand requests during the nine months ended September 30, 2020 and 2019 were $27 million and $38 million, respectively. Total outstanding repurchase demand inventory was $3 million and $6 million at September 30, 2020 and December 31, 2019, respectively. Margin accounts FTS, an indirect wholly-owned subsidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balances held by the brokerage clearing agent were $12 million at both September 30, 2020 and December 31, 2019. In the event of any customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve related to the margin accounts. Long-term borrowing obligations The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of $62 million at both September 30, 2020 and December 31, 2019. Visa litigation The Bancorp, as a member bank of Visa prior to Visa’s reorganization and IPO (the “IPO”) of its Class A common shares (the “Class A Shares”) in 2008, had certain indemnification obligations pursuant to Visa’s certificate of incorporation and bylaws and in accordance with its membership agreements. In accordance with Visa’s bylaws prior to the IPO, the Bancorp could have been required to indemnify Visa for the Bancorp’s proportional share of losses based on the pre-IPO membership interests. As part of its reorganization and IPO, the Bancorp’s indemnification obligation was modified to include only certain known or anticipated litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requirement for the Bancorp to recognize a liability equal to the fair value of the indemnification liability. In conjunction with the IPO, the Bancorp received 10.1 million of Visa’s Class B common shares (the “Class B Shares”) based on the Bancorp’s membership percentage in Visa prior to the IPO. The Class B Shares are not transferable (other than to another member bank) until the later of the third anniversary of the IPO closing or the date on which the Covered Litigation has been resolved; therefore, the Bancorp’s Class B Shares were classified in other assets and accounted for at their carryover basis of $0. Visa deposited $3 billion of the proceeds from the IPO into a litigation escrow account, established for the purpose of funding judgments in, or settlements of, the Covered Litigation. Since then, when Visa’s litigation committee determined that the escrow account was insufficient, Visa issued additional Class A Shares and deposited the proceeds from the sale of the Class A Shares into the litigation escrow account. When Visa funded the litigation escrow account, the Class B Shares were subjected to dilution through an adjustment in the conversion rate of Class B Shares into Class A Shares. In 2009, the Bancorp completed the sale of Visa, Inc. Class B Shares and entered into a total return swap in which the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Class B Shares into Class A Shares. The swap terminates on the later of the third anniversary of Visa’s IPO or the date on which the Covered Litigation is settled. Refer to Note 23 for additional information on the valuation of the swap. The counterparty to the swap as a result of its ownership of the Class B Shares will be impacted by dilutive adjustments to the conversion rate of the Class B Shares into Class A Shares caused by any Covered Litigation losses in excess of the litigation escrow account. If actual judgments in, or settlements of, the Covered Litigation significantly exceed current expectations, then additional funding by Visa of the litigation escrow account and the resulting dilution of the Class B Shares could result in a scenario where the Bancorp’s ultimate exposure associated with the Covered Litigation (the “Visa Litigation Exposure”) exceeds the value of the Class B Shares owned by the swap counterparty (the “Class B Value”). In the event the Bancorp concludes that it is probable that the Visa Litigation Exposure exceeds the Class B Value, the Bancorp would record a litigation reserve liability and a corresponding amount of other noninterest expense for the amount of the excess. Any such litigation reserve liability would be separate and distinct from the fair value derivative liability associated with the total return swap. As of the date of the Bancorp’s sale of the Visa Class B Shares and through September 30, 2020, the Bancorp has concluded that it is not probable that the Visa Litigation Exposure will exceed the Class B value. Based on this determination, upon the sale of Class B Shares, the Bancorp reversed its net Visa litigation reserve liability and recognized a free-standing derivative liability associated with the total return swap. The fair value of the swap liability was $188 million at September 30, 2020 and $163 million at December 31, 2019. Refer to Note 15 and Note 24 for further information. After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows: Period ($ in millions) Visa Bancorp Cash Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 Q2 2018 600 26 Q3 2019 300 12 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 9 Months Ended |
Sep. 30, 2020 | |
Loss Contingency [Abstract] | |
Legal and Regulatory Proceedings | Legal and Regulatory Proceedings Litigation Visa/MasterCard Merchant Interchange Litigation In April 2006, the Bancorp was added as a defendant in a consolidated antitrust class action lawsuit originally filed against Visa ® , MasterCard ® and several other major financial institutions in the United States District Court for the Eastern District of New York (In re: Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, Case No. 5-MD-1720). The plaintiffs, merchants operating commercial businesses throughout the U.S. and trade associations, claimed that the interchange fees charged by card-issuing banks were unreasonable and sought injunctive relief and unspecified damages. In addition to being a named defendant, the Bancorp is currently also subject to a possible indemnification obligation of Visa as discussed in Note 18 and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. In October 2012, the parties to the litigation entered into a settlement agreement. On January 14, 2014, the trial court entered a final order approving the class settlement. A number of merchants filed appeals from that approval. The U.S. Court of Appeals for the Second Circuit held a hearing on those appeals and on June 30, 2016, reversed the district court’s approval of the class settlement, remanding the case to the district court for further proceedings. On March 27, 2017, the Supreme Court of the United States denied a petition for writ of certiorari seeking to review the Second Circuit’s decision. Pursuant to the terms of the overturned settlement agreement, the Bancorp had previously paid $46 million into a class settlement escrow account. Approximately 8,000 merchants requested exclusion from the class settlement, and therefore, pursuant to the terms of the overturned settlement agreement, approximately 25% of the funds paid into the class settlement escrow account had been already returned to the control of the defendants. The remaining settlement funds paid by the Bancorp have been maintained in the escrow account. More than 500 of the merchants who requested exclusion from the class filed separate federal lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. These individual federal lawsuits were transferred to the United States District Court for the Eastern District of New York. While the Bancorp is only named as a defendant in one of the individual federal lawsuits, it may have obligations pursuant to indemnification arrangements and/or the judgment or loss sharing agreements noted above. On September 17, 2018, the defendants in the consolidated class action signed a second settlement agreement (the “Amended Settlement Agreement”) resolving the claims seeking monetary damages by the proposed plaintiffs’ class (the “Plaintiff Damages Class”) and superseding the original settlement agreement entered into in October 2012. The Amended Settlement Agreement included, among other terms, a release from participating class members for liability for claims that accrue no later than five years after the Amended Settlement Agreement becomes final. The Amended Settlement Agreement provided for a total payment by all defendants of approximately $6.24 billion, composed of approximately $5.34 billion held in escrow plus an additional $900 million in new funds. However, the Settlement Agreement also provided that if between 15% and 25% of class members (by payment volume) opted out of the class, up to $700 million of the additional settlement funds would be returned to the defendants. It has now been determined that more than 25% of the class members have elected to opt out of the Amended Settlement Agreement, and, therefore, $700 million of the additional $900 million has been returned to the defendants. The Bancorp’s allocated share of the settlement is within existing reserves, including funds maintained in escrow. On December 13, 2019, the Court entered an order granting final approval for the settlement. The settlement does not resolve the claims of the separate proposed plaintiffs’ class seeking injunctive relief or the claims of merchants who have opted out of the proposed class settlement and are pursuing, or may in the future decide to pursue, private lawsuits. The ultimate outcome in this matter, including the timing of resolution, therefore remains uncertain. Refer to Note 19 for further information. Klopfenstein v. Fifth Third Bank On August 3, 2012, William Klopfenstein and Adam McKinney filed a lawsuit against Fifth Third Bank in the United States District Court for the Northern District of Ohio (Klopfenstein et al. v. Fifth Third Bank), alleging that the 120% APR that Fifth Third disclosed on its Early Access program was misleading. Early Access is a deposit-advance program offered to eligible customers with checking accounts. The plaintiffs sought to represent a nationwide class of customers who used the Early Access program and repaid their cash advances within 30 days. On October 31, 2012, the case was transferred to the United States District Court for the Southern District of Ohio. In 2013, four similar putative class actions were filed against Fifth Third Bank in federal courts throughout the country (Lori and Danielle Laskaris v. Fifth Third Bank, Janet Fyock v. Fifth Third Bank, Jesse McQuillen v. Fifth Third Bank, and Brian Harrison v. Fifth Third Bank). Those four lawsuits were transferred to the Southern District of Ohio and consolidated with the original lawsuit as In re: Fifth Third Early Access Cash Advance Litigation (Case No. 1:12-CV-851). On behalf of a putative class, the plaintiffs sought unspecified monetary and statutory damages, injunctive relief, punitive damages, attorneys' fees, and pre- and post-judgment interest. On March 30, 2015, the court dismissed all claims alleged in the consolidated lawsuit except a claim under the TILA. On January 10, 2018, plaintiffs filed a motion to hear the immediate appeal of the dismissal of their breach of contract claim. On March 28, 2018, the court granted plaintiffs’ motion and stayed the TILA claim pending that appeal. On April 26, 2018, plaintiffs filed their notice of appeal for the breach of contract claim with the U.S. Court of Appeals for the Sixth Circuit. On May 28, 2019, the Sixth Circuit Court of Appeals reversed the dismissal of plaintiffs’ breach of contract claim and remanded for further proceedings. The plaintiffs’ claimed damages for the alleged breach of contract claim exceed $280 million. The plaintiffs’ motion for class certification was filed on April 20, 2020, and is now fully briefed and awaiting decision. No trial date has been set. Helton v. Fifth Third Bank On August 31, 2015, trust beneficiaries filed an action against Fifth Third Bank, as trustee, in the Probate Court for Hamilton County, Ohio (Helen Clarke Helton, et al. v. Fifth Third Bank, Case No. 2015003814). The plaintiffs alleged breach of the duty to diversify, breach of the duty of impartiality, breach of trust/fiduciary duty, and unjust enrichment, based on Fifth Third’s alleged failure to diversify assets held in two trusts for the plaintiffs’ benefit. The lawsuit sought over $800 million in alleged damages, attorney’s fees, removal of Fifth Third as trustee, and injunctive relief. Fifth Third denied all liability. On April 20, 2018, the Court denied plaintiffs’ motion for summary judgment and granted summary judgment to Fifth Third, dismissing the case in its entirety. On December 18, 2019, the Ohio Court of Appeals affirmed the Probate Court’s dismissal of all of plaintiffs’ claims based upon allegations of Fifth Third’s alleged failure to diversify assets held in two trusts for plaintiffs’ benefit. The appeals court reversed summary judgment on one claim related to Fifth Third’s alleged unjust enrichment through its receipt of certain fees in managing the trusts. The Court of Appeals remanded the case to the Probate Court for further consideration of the lone surviving claim, which comprises a small fraction of the damages originally sought by plaintiffs in the lawsuit. Plaintiffs filed an appeal to the Ohio Supreme Court, seeking review of the decision from the Ohio Court of Appeals. On April 14, 2020, the Ohio Supreme Court announced its denial of plaintiffs’ request for review, and subsequently denied plaintiffs’ request for reconsideration. The case has now returned to the trial court for further adjudication of the lone surviving claim. Bureau of Consumer Financial Protection v. Fifth Third Bank, National Association On March 9, 2020, the CFPB filed a lawsuit against Fifth Third in the United States District Court for the Northern District of Illinois entitled CFPB v. Fifth Third Bank, National Association, Case No. 1:20-CV-1683 (N.D. Ill.) (ABW), alleging violations of the Consumer Financial Protection Act, TILA, and Truth in Savings Act related to Fifth Third’s alleged opening of unspecified numbers of allegedly unauthorized credit card, savings, checking, online banking and early access accounts from 2010 through 2016. The CFPB seeks unspecified amounts of civil monetary penalties as well as unspecified customer remediation. Fifth Third has filed a motion to transfer venue to the United States District Court for the Southern District of Ohio. The Bancorp is also subject to a consumer class action related to the alleged opening of unauthorized accounts. Shareholder Litigation On April 7, 2020, Plaintiff Lee Christakis filed a putative class action against Fifth Third Bancorp, Fifth Third President and Chief Executive Officer Greg D. Carmichael, and Fifth Third Chief Financial Officer Tayfun Tuzun in the U.S. District Court for the Northern District of Illinois entitled Lee Christakis, individually and on behalf of all others similarly situated v. Fifth Third Bancorp, et al., Case No. 1:20-cv-2176 (N.D. Ill). The case brings two claims for violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alleging that the Defendants made material misstatements and omissions in connection with the alleged unauthorized opening of credit card, savings, checking, online banking and early access accounts from 2010 through 2016. The plaintiff seeks certification of a class, unspecified damages, attorneys' fees and costs. On June 29, 2020, the Court appointed Heavy & General Laborers’ Local 472 & 172 Pension and Annuity Funds as lead plaintiff, and Robins Geller Rudman & Dowd LLP as lead counsel for the plaintiff. On September 14, 2020, the lead plaintiff filed its amended consolidated complaint. On July 31, 2020, a second putative shareholder class action captioned Dr. Steven Fox, individually and on behalf of all others similarly situated v. Fifth Third Bancorp, et al., Case No. 2020CH05219 was filed on behalf of former shareholders of MB Financial, Inc. in the Cook County, Illinois Circuit Court. The suit brings claims for violation of Sections 11 and 12(a)(2) of the Securities Act of 1933, alleging that the Bancorp and certain of its officers and directors made material misstatements and omissions regarding the alleged improper cross-selling strategy in filings made in connection with the Bancorp’s merger with MB Financial, Inc. In addition, shareholder derivative lawsuits have been filed on behalf of the Bancorp alleging certain claims relating to an alleged improper cross-selling strategy. The Bancorp has also received several shareholder demands under Ohio Rev. Code § 1701.37(c) and lawsuits have been filed arising out of the same. Finally, the Bancorp has received a demand that the Bancorp’s Board of Directors investigate and commence a civil action for failure to detect and/or prevent the alleged illegal cross-selling strategy. Other litigation The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes that the resulting liability, if any, from these other actions would not have a material effect upon the Bancorp’s consolidated financial position, results of operations or cash flows. Governmental Investigations and Proceedings The Bancorp and/or its affiliates are or may become involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies and law enforcement authorities, including but not limited to the FRB, OCC, CFPB, SEC, FINRA, U.S. Department of Justice, etc., as well as state and other governmental authorities and self-regulatory bodies regarding their respective businesses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequences or reputational harm to the Bancorp, its affiliates and/or their respective directors, officers and other personnel, including adverse judgments, findings, settlements, fines, penalties, orders, injunctions or other actions, amendments and/or restatements of the Bancorp’s SEC filings and/or financial statements, as applicable, and/or determinations of material weaknesses in our disclosure controls and procedures. Investigations by regulatory authorities may from time to time result in civil or criminal referrals to law enforcement. Additionally, in some cases, regulatory authorities may take supervisory actions that are considered to be confidential supervisory information which may not be publicly disclosed. Reasonably Possible Losses in Excess of Accruals The Bancorp and its subsidiaries are parties to numerous claims and lawsuits as well as threatened or potential actions or claims concerning matters arising from the conduct of its business activities. The outcome of claims or litigation and the timing of ultimate resolution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: claims often include significant legal uncertainties, damages alleged by plaintiffs are often unspecified or overstated, discovery may not have started or may not be complete and material facts may be disputed or unsubstantiated. As a result of these factors, the Bancorp is not always able to provide an estimate of the range of reasonably possible outcomes for each claim. An accrual for a potential litigation loss is established when information related to the loss contingency indicates both that a loss is probable and that the amount of loss can be reasonably estimated. Any such accrual is adjusted from time to time thereafter as appropriate to reflect changes in circumstances. The Bancorp also determines, when possible (due to the uncertainties described above), estimates of reasonably possible losses or ranges of reasonably possible losses, in excess of amounts accrued. Under U.S. GAAP, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” Thus, references to the upper end of the range of reasonably possible loss for cases in which the Bancorp is able to estimate a range of reasonably possible loss mean the upper end of the range of loss for cases for which the Bancorp believes the risk of loss is more than slight. For matters where the Bancorp is able to estimate such possible losses or ranges of possible losses, the Bancorp currently estimates that it is reasonably possible that it could incur losses related to legal and regulatory proceedings, in an aggregate amount up to approximately $83 million in excess of amounts accrued, with it also being reasonably possible that no losses will be incurred in these matters. The estimates included in this amount are based on the Bancorp’s analysis of currently available information, and as new information is obtained the Bancorp may change its estimates. For these matters and others where an unfavorable outcome is reasonably possible but not probable, there may be a range of possible losses in excess of the established accrual that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established accruals, the Bancorp believes that the eventual outcome of the actions against the Bancorp and/or its subsidiaries, including the matters described above, will not, individually or in the aggregate, have a material adverse effect on the Bancorp’s consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of those matters, if unfavorable, may be material to the Bancorp’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The applicable income tax expense was $165 million and $140 million for the three months ended September 30, 2020 and 2019, respectively, and $228 million and $483 million for the nine months ended September 30, 2020 and 2019, respectively. The effective tax rates for the three months ended September 30, 2020 and 2019 were 22.1% and 20.2%, respectively, and 21.6% and 21.4% for the nine months ended September 30, 2020 and 2019, respectively. The increase in the effective tax rate for the three months ended September 30, 2020 compared to the same period in the prior year was primarily related to the amount of income tax benefit recognized related to gains on sales of leases that are exempt from federal taxation for the three months ended September 30, 2019 as well as an increase in estimated state income tax expense and an increase in non-deductible expenses for the three months ended September 30, 2020. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The tables below present the activity of the components of OCI and AOCI for the three months ended: Total OCI Total AOCI September 30, 2020 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale debt securities arising during period $ (42) 10 (32) Reclassification adjustment for net gains on available-for-sale debt securities included in net income (45) 11 (34) Net unrealized gains on available-for-sale debt securities (87) 21 (66) 2,150 (66) 2,084 Unrealized holding gains on cash flow hedge derivatives arising during period 1 — 1 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (72) 16 (56) Net unrealized gains on cash flow hedge derivatives (71) 16 (55) 841 (55) 786 Net actuarial loss arising during the year (2) — (2) Reclassification of amounts to net periodic benefit costs 4 (1) 3 Defined benefit pension plans, net 2 (1) 1 (40) 1 (39) Total $ (156) 36 (120) 2,951 (120) 2,831 Total OCI Total AOCI September 30, 2019 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding gains on available-for-sale debt securities arising during period $ 497 (118) 379 Reclassification adjustment for net gains on available-for-sale debt securities included in net income (3) 1 (2) Net unrealized gains on available-for-sale debt securities 494 (117) 377 781 377 1,158 Unrealized holding gains on cash flow hedge derivatives arising during period 105 (22) 83 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (5) 1 (4) Net unrealized gains on cash flow hedge derivatives 100 (21) 79 440 79 519 Reclassification of amounts to net periodic benefit costs 1 — 1 Defined benefit pension plans, net 1 — 1 (43) 1 (42) Total $ 595 (138) 457 1,178 457 1,635 The tables below present the activity of the components of OCI and AOCI for the nine months ended: Total OCI Total AOCI September 30, 2020 ($ in millions) Pre-tax Tax Effect Net Activity Beginning Balance Net Activity Ending Balance Unrealized holding gains on available-for-sale debt securities arising during period $ 1,715 (409) 1,306 Reclassification adjustment for net gains on available-for-sale debt securities included in net income (45) 11 (34) Net unrealized gains on available-for-sale debt securities 1,670 (398) 1,272 812 1,272 2,084 Unrealized holding gains on cash flow hedge derivatives arising during period 625 (131) 494 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (165) 35 (130) Net unrealized gains on cash flow hedge derivatives 460 (96) 364 422 364 786 Net actuarial loss arising during the year (2) — (2) Reclassification of amounts to net periodic benefit costs 7 (2) 5 Defined benefit pension plans, net 5 (2) 3 (42) 3 (39) Total $ 2,135 (496) 1,639 1,192 1,639 2,831 Total OCI Total AOCI September 30, 2019 ($ in millions) Pre-tax Tax Effect Net Activity Beginning Balance Net Activity Ending Balance Unrealized holding gains on available-for-sale debt securities arising during period $ 1,817 (430) 1,387 Reclassification adjustment for net gains on available-for-sale debt securities included in net income (3) 1 (2) Net unrealized gains on available-for-sale debt securities 1,814 (429) 1,385 (227) 1,385 1,158 Unrealized holding gains on cash flow hedge derivatives arising during period 456 (95) 361 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (2) — (2) Net unrealized gains on cash flow hedge derivatives 454 (95) 359 160 359 519 Reclassification of amounts to net periodic benefit costs 4 (1) 3 Defined benefit pension plans, net 4 (1) 3 (45) 3 (42) Total $ 2,272 (525) 1,747 (112) 1,747 1,635 The table below presents reclassifications out of AOCI: Consolidated Statements of For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Net unrealized gains on available-for-sale debt securities: (b) Net gains included in net income Securities gains, net $ 45 3 45 3 Income before income taxes 45 3 45 3 Applicable income tax expense (11) (1) (11) (1) Net income 34 2 34 2 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 72 5 165 2 Income before income taxes 72 5 165 2 Applicable income tax expense (16) (1) (35) — Net income 56 4 130 2 Net periodic benefit costs: (b) Amortization of net actuarial loss Compensation and benefits (a) (2) (1) (5) (4) Settlements Compensation and benefits (a) (2) — (2) — Income before income taxes (4) (1) (7) (4) Applicable income tax expense 1 — 2 1 Net income (3) (1) (5) (3) Total reclassifications for the period Net income $ 87 5 159 1 (a) This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 23 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information. (b) Amounts in parentheses indicate reductions to net income. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following tables provide the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share: 2020 2019 For the three months ended September 30, (in millions, except per share data) Income Average Per Share Income Average Per Share Earnings Per Share: Net income available to common shareholders $ 562 $ 530 Less: Income allocated to participating securities 2 4 Net income allocated to common shareholders $ 560 715 $ 0.78 $ 526 727 $ 0.72 Earnings Per Diluted Share: Net income available to common shareholders $ 562 $ 530 Effect of dilutive securities: Stock-based awards — 4 — 9 Net income available to common shareholders plus assumed conversions 562 530 Less: Income allocated to participating securities 2 4 Net income allocated to common shareholders plus assumed conversions $ 560 719 $ 0.78 $ 526 736 $ 0.71 2020 2019 For the nine months ended September 30, (in millions, except per share data) Income Average Shares Per Share Amount Income Average Shares Per Share Amount Earnings Per Share: Net income available to common shareholders $ 754 $ 1,718 Less: Income allocated to participating securities 3 16 Net income allocated to common shareholders $ 751 714 $ 1.05 $ 1,702 709 $ 2.40 Earnings Per Diluted Share: Net income available to common shareholders $ 754 $ 1,718 Effect of dilutive securities: Stock-based awards — 5 — 9 Net income available to common shareholders plus assumed conversions 754 1,718 Less: Income allocated to participating securities 3 16 Net income allocated to common shareholders plus assumed conversions $ 751 719 $ 1.04 $ 1,702 718 $ 2.37 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurements Using September 30, 2020 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agency securities $ 78 — — 78 Obligations of states and political subdivisions securities — 17 — 17 Mortgage-backed securities: Agency residential mortgage-backed securities — 12,603 — 12,603 Agency commercial mortgage-backed securities — 17,750 — 17,750 Non-agency commercial mortgage-backed securities — 3,575 — 3,575 Asset-backed securities and other debt securities — 2,871 — 2,871 Available-for-sale debt and other securities (a) 78 36,816 — 36,894 Trading debt securities: U.S. Treasury and federal agency securities 64 20 — 84 Obligations of states and political subdivisions securities — 39 — 39 Agency residential mortgage-backed securities — 46 — 46 Asset-backed securities and other debt securities — 535 — 535 Trading debt securities 64 640 — 704 Equity securities 258 19 — 277 Residential mortgage loans held for sale — 1,472 — 1,472 Residential mortgage loans (b) — — 174 174 Servicing rights — — 660 660 Derivative assets: Interest rate contracts 2 2,466 92 2,560 Foreign exchange contracts — 179 — 179 Commodity contracts 59 424 — 483 Derivative assets (c) 61 3,069 92 3,222 Total assets $ 461 42,016 926 43,403 Liabilities: Derivative liabilities: Interest rate contracts $ 10 288 8 306 Foreign exchange contracts — 136 — 136 Equity contracts — — 188 188 Commodity contracts 63 425 — 488 Derivative liabilities (d) 73 849 196 1,118 Short positions: U.S. Treasury and federal agency securities 88 — — 88 Asset-backed securities and other debt securities — 421 — 421 Short positions (d) 88 421 — 509 Total liabilities $ 161 1,270 196 1,627 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $47, $482 and $2, respectively, at September 30, 2020. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2019 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agency securities $ 75 — — 75 Obligations of states and political subdivisions securities — 18 — 18 Mortgage-backed securities: Agency residential mortgage-backed securities — 14,115 — 14,115 Agency commercial mortgage-backed securities — 15,693 — 15,693 Non-agency commercial mortgage-backed securities — 3,365 — 3,365 Asset-backed securities and other debt securities — 2,206 — 2,206 Available-for-sale debt and other securities (a) 75 35,397 — 35,472 Trading debt securities: U.S. Treasury and federal agency securities 2 — — 2 Obligations of states and political subdivisions securities — 9 — 9 Agency residential mortgage-backed securities — 55 — 55 Asset-backed securities and other debt securities — 231 — 231 Trading debt securities 2 295 — 297 Equity securities 554 10 — 564 Residential mortgage loans held for sale — 1,264 — 1,264 Residential mortgage loans (b) — — 183 183 Servicing rights — — 993 993 Derivative assets: Interest rate contracts 1 1,218 18 1,237 Foreign exchange contracts — 165 — 165 Commodity contracts 37 234 — 271 Derivative assets (c) 38 1,617 18 1,673 Total assets $ 669 38,583 1,194 40,446 Liabilities: Derivative liabilities: Interest rate contracts $ 5 144 8 157 Foreign exchange contracts — 151 — 151 Equity contracts — — 163 163 Commodity contracts 17 253 — 270 Derivative liabilities (d) 22 548 171 741 Short positions: U.S. Treasury and federal agency securities 49 — — 49 Asset-backed securities and other debt securities — 100 — 100 Short positions (d) 49 100 — 149 Total liabilities $ 71 648 171 890 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $76, $478 and $2, respectively, at December 31, 2019. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale debt and other securities, trading debt securities and equity securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities and equity securities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics or DCFs. Level 2 securities may include federal agency securities, obligations of states and political subdivisions securities, agency residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities, asset-backed securities and other debt securities and equity securities. These securities are generally valued using a market approach based on observable prices of securities with similar characteristics. Residential mortgage loans held for sale For residential mortgage loans held for sale for which the fair value election has been made, fair value is estimated based upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale that are valued based on mortgage-backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also classified within Level 2 of the valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities market rates and observable discount rates. Residential mortgage loans Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. For residential mortgage loans for which the fair value election has been made, and that are reclassified from held for sale to held for investment, the fair value estimation is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Therefore, these loans are classified within Level 3 of the valuation hierarchy. An adverse change in the loss rate or severity assumption would result in a decrease in fair value of the related loans. Servicing rights MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, the Bancorp estimates the fair value of MSRs using internal OAS models with certain unobservable inputs, primarily prepayment speed assumptions, OAS and weighted-average lives, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 14 for further information on the assumptions used in the valuation of the Bancorp’s MSRs. Derivatives Exchange-traded derivatives valued using quoted prices and certain over-the-counter derivatives valued using active bids are classified within Level 1 of the valuation hierarchy. Most of the Bancorp’s derivative contracts are valued using DCF or other models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate, foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At September 30, 2020 and December 31, 2019, derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a total return swap associated with the Bancorp’s sale of Visa, Inc. Class B Shares as well as IRLCs, which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process. Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa, Inc. Class B Shares into Class A Shares. Additionally, the Bancorp will make a quarterly payment based on Visa’s stock price and the conversion rate of the Visa, Inc. Class B Shares into Class A Shares until the date on which the Covered Litigation is settled. The fair value of the total return swap was calculated using a DCF model based on unobservable inputs consisting of management’s estimate of the probability of certain litigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimates in excess, or shortfall, of the Bancorp’s proportional share of escrow funds. An increase in the loss estimate or a delay in the resolution of the Covered Litigation would result in an increase in the fair value of the derivative liability; conversely, a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in the fair value of the derivative liability. Refer to Note 19 for additional information on the Covered Litigation. The net asset fair value of the IRLCs at September 30, 2020 was $85 million. Immediate decreases in current interest rates of 25 bps and 50 bps would result in increases in the fair value of the IRLCs of approximately $15 million and $29 million, respectively. Immediate increases of current interest rates of 25 bps and 50 bps would result in decreases in the fair value of the IRLCs of approximately $16 million and $35 million, respectively. The decrease in fair value of IRLCs due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximately $9 million and $17 million, respectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $9 million and $17 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. Short positions Where quoted prices are available in an active market, short positions are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics or DCFs and therefore are classified within Level 2 of the valuation hierarchy. Level 2 securities include asset-backed and other debt securities. The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended September 30, 2020 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 185 676 89 (183) 767 Total (losses) gains (realized/unrealized): (d) Included in earnings — (71) 55 (22) (38) Purchases/originations — 55 — — 55 Settlements (21) — (60) 17 (64) Transfers into Level 3 (b) 10 — — — 10 Balance, end of period $ 174 660 84 (188) 730 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at September 30, 2020 (c) $ — (2) 61 (22) 37 (a) Net interest rate derivatives include derivative assets and liabilities of $92 and $8, respectively, as of September 30, 2020. (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. (d) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at September 30, 2020. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended September 30, 2019 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 192 1,039 5 (151) 1,085 Total (losses) gains (realized/unrealized): Included in earnings — (171) 51 (11) (131) Purchases/originations — 42 (1) — 41 Settlements (11) — (40) 16 (35) Transfers into Level 3 (b) 3 — — — 3 Balance, end of period $ 184 910 15 (146) 963 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at September 30, 2019 (c) $ — (131) 24 (11) (118) (a) Net interest rate derivatives include derivative assets and liabilities of $24 and $9, respectively, as of September 30, 2019. (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the nine months ended September 30, 2020 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 183 993 10 (163) 1,023 Total (losses) gains (realized/unrealized): (d) Included in earnings 2 (519) 241 (73) (349) Purchases/originations — 186 4 — 190 Settlements (50) — (171) 48 (173) Transfers into Level 3 (b) 39 — — — 39 Balance, end of period $ 174 660 84 (188) 730 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at September 30, 2020 (c) $ 2 (281) 88 (73) (264) (a) Net interest rate derivatives include derivative assets and liabilities of $92 and $8, respectively, as of September 30, 2020. (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. (d) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at September 30, 2020. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the nine months ended September 30, 2019 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 179 938 (1) (125) 991 Total (losses) gains (realized/unrealized): Included in earnings (1) (416) 110 (63) (370) Purchases/originations/acquisitions — 388 (3) — 385 Settlements (22) — (91) 42 (71) Transfers into Level 3 (b) 28 — — — 28 Balance, end of period $ 184 910 15 (146) 963 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at September 30, 2019 (c) $ (1) (329) 25 (63) (368) (a) Net interest rate derivatives include derivative assets and liabilities of $24 and $9, respectively, as of September 30, 2019. (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. The total losses and gains included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Mortgage banking net revenue $ (17) (121) (278) (309) Commercial banking revenue 1 1 1 2 Other noninterest income (22) (11) (72) (63) Total losses $ (38) (131) (349) (370) The total losses and gains included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at September 30, 2020 and 2019 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Mortgage banking net revenue $ 58 (109) (193) (307) Commercial banking revenue 1 2 1 2 Other noninterest income (22) (11) (72) (63) Total (losses) gains $ 37 (118) (264) (368) The following tables present information as of September 30, 2020 and 2019 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis: As of September 30, 2020 ($ in millions) Financial Instrument Fair Value Valuation Significant Unobservable Range of Inputs Weighted-Average Residential mortgage loans $ 174 Loss rate model Interest rate risk factor (8.6) - 11.0% 1.1 % (a) Credit risk factor — - 26.0% 0.4 % (a) (Fixed) 18.2 % (b) Servicing rights 660 DCF Prepayment speed 0.5 - 99.9% (Adjustable) 21.2 % (b) (Fixed) 918 (b) OAS (bps) 536 - 1,537 (Adjustable) 938 (b) IRLCs, net 85 DCF Loan closing rates 7.2 - 97.2% 61.4 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (188) DCF Timing of the resolution Q3 2022 - Q2 2024 Q1 2023 (d) (a) Unobservable inputs were weighted by the relative carrying value of the instruments. (b) Unobservable inputs were weighted by the relative unpaid principal balance of the instruments. (c) Unobservable inputs were weighted by the relative notional amount of the instruments. (d) Unobservable inputs were weighted by the probability of the final funding date of the instruments. As of September 30, 2019 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 184 Loss rate model Interest rate risk factor (6.8) - 6.9 % (0.2) % Credit risk factor — - 31.8 % 0.5 % (Fixed) 15.4 % Servicing rights 910 DCF Prepayment speed 0.5 - 97.0 % (Adjustable) 23.4 % (Fixed) 619 OAS (bps) 484 - 1,513 (Adjustable) 914 IRLCs, net 24 DCF Loan closing rates 5.7 - 96.7 % 76.9 % Swap associated with the sale of Visa, Inc. Class B Shares (146) DCF Timing of the resolution Q2 2021 - Q4 2023 Q1 2022 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of September 30, 2020 and 2019, and for which a nonrecurring fair value adjustment was recorded during the three and nine months ended September 30, 2020 and 2019, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of September 30, 2020 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended September 30, 2020 For the nine months ended September 30, 2020 Commercial loans held for sale $ — 31 17 48 1 (4) Commercial and industrial loans — — 534 534 (39) (182) Commercial mortgage loans — — 82 82 (12) (45) Commercial leases — — 12 12 2 (14) Consumer loans — — 197 197 (1) 2 OREO — — 20 20 (2) (7) Bank premises and equipment — — 21 21 (11) (25) Operating lease equipment — — 9 9 — (3) Private equity investments — — 69 69 — (9) Total $ — 31 961 992 (62) (287) Fair Value Measurements Using Total (Losses) Gains As of September 30, 2019 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Commercial and industrial loans $ — — 116 116 (11) (45) Commercial mortgage loans — — 12 12 — — Commercial leases — — 18 18 2 (9) OREO — — 16 16 (2) (5) Bank premises and equipment — — 23 23 (4) (26) Private equity investments — 6 2 8 — 6 Total $ — 6 187 193 (15) (79) The following tables present information as of September 30, 2020 and 2019 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: As of September 30, 2020 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 16 Comparable company analysis Market comparable transactions NM NM 1 Appraised value Appraised value NM NM Commercial and industrial loans 534 Appraised value Collateral value NM NM Commercial mortgage loans 82 Appraised value Collateral value NM NM Commercial leases 12 Appraised value Collateral value NM NM Consumer loans 197 Appraised value Collateral value NM NM OREO 20 Appraised value Appraised value NM NM Bank premises and equipment 21 Appraised value Appraised value NM NM Operating lease equipment 9 Appraised value Appraised value NM NM Private equity investments 69 Comparable company analysis Market comparable transactions NM NM As of September 30, 2019 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial and industrial loans $ 116 Appraised value Collateral value NM NM Commercial mortgage loans 12 Appraised value Collateral value NM NM Commercial leases 18 Appraised value Collateral value NM NM OREO 16 Appraised value Appraised value NM NM Bank premises and equipment 23 Appraised value Appraised value NM NM Private equity investments 2 Comparable company analysis Market comparable transactions NM NM Commercial loans held for sale The Bancorp estimated the fair value of certain commercial loans held for sale as of September 30, 2020, resulting in a positive fair value adjustment totaling $1 million and negative fair value adjustments totaling $4 million during the three and nine months ended September 30, 2020, respectively. These valuations were based on quoted prices for similar assets in active markets (Level 2 of the valuation hierarchy), appraisals of the underlying collateral or by applying unobservable inputs such as an estimated market discount to the unpaid principal balance of the loans or the appraised values of the assets (Level 3 of the valuation hierarchy). The Bancorp recognized an immaterial amount of gains on the sale of certain commercial loans held for sale during both the three and nine months ended September 30, 2020. Portfolio loans and leases During the three and nine months ended September 30, 2020 and 2019, the Bancorp recorded nonrecurring impairment adjustments to certain collateral-dependent portfolio loans and leases. When the loan is collateral-dependent, the fair value of the loan is generally based on the fair value less cost to sell of the underlying collateral supporting the loan and therefore these loans were classified within Level 3 of the valuation hierarchy. In cases where the carrying value exceeds the fair value, an impairment loss is recognized. The fair values and recognized impairment losses are reflected in the previous tables. OREO During the three and nine months ended September 30, 2020 and 2019, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring losses were primarily due to declines in real estate values of the properties recorded in OREO. These losses include $2 million and $3 million in losses, respectively, recorded as charge-offs on new OREO properties transferred from loans, during the three and nine months ended September 30, 2020 compared to $1 million and $2 million in losses during the three and nine months ended September 30, 2019, respectively. These losses also included an immaterial amount and $4 million for the three and nine months ended September 30, 2020, respectively, and $1 million and $3 million for the three and nine months ended September 30, 2019, respectively, recorded as negative fair value adjustments on OREO in other noninterest expense in the Condensed Consolidated Statements of Income subsequent to their transfer from loans. As discussed in the following paragraph, the fair value amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. The previous tables reflect the fair value measurements of the properties before deducting the estimated costs to sell. The Real Estate Valuation department reviews the BPO data and internal market information to determine the initial charge-off on residential real estate loans transferred to OREO. Once the foreclosure process is completed, the Bancorp performs an interior inspection to update the initial fair value of the property. These properties are reviewed at least every 30 days after the initial interior inspections are completed. The Asset Manager receives a monthly status report for each property, which includes the number of showings, recently sold properties, current comparable listings and overall market conditions. Bank premises and equipment The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. These properties were written down to their lower of cost or market values. At least annually thereafter, the Bancorp will review these properties for market fluctuations. The fair value amounts were generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. For further information on bank premises and equipment, refer to Note 8. Operating lease equipment The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. When evaluating whether an individual asset is impaired, the Bancorp considers the current fair value of the asset, the changes in overall market demand for the asset and the rate of change in advancements associated with technological improvements that impact the demand for the specific asset under review. As part of this ongoing assessment, the Bancorp determined that the carrying values of certain operating lease equipment were not recoverable and, as a result, the Bancorp recorded an impairment loss equal to the amount by which the carrying value of the assets exceeded the fair value. The fair value amounts were generally based on appraised values of the assets, resulting in a classification within Level 3 of the valuation hierarchy. Private equity investments The Bancorp accounts for its private equity investments using the measurement alternative to fair value, except for those accounted for under the equity method of accounting. Under the measurement alternative, the Bancorp carries each investment at its cost basis minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Bancorp did not recognize gains resulting from observable price changes during the three and nine months ended September 30, 2020 and recognized gains of zero and $11 million, respectively, resulting from observable price changes during the three and nine months ended September 30, 2019. The carrying value of the Bancorp’s private equity investments still held as of September 30, 2020 includes a cumulative $47 million of positive adjustments as a result of observable price changes since January 1, 2018. Because these adjustments are based on observable transactions in inactive markets, they are classified in Level 2 of the fair value hierarchy. For private equity investments which are accounted for using the measurement alternative to fair value, the Bancorp qualitatively evaluates each investment quarterly to determine if impairment may exist. If necessary, the Bancorp then measures impairment by estimating the value of its investment and comparing that to the investment’s carrying value, whether or not the Bancorp considers the impairment to be temporary. These valuations are typically developed using a DCF method, but other methods may be used if more appropriate for the circumstances. These valuations are based on unobservable inputs and therefore are classified in Level 3 of the fair value hierarchy. The Bancorp recognized impairment of zero and $9 million for the three and nine months ended September 30, 2020, respectively, compared to zero and $5 million for the three and nine months ended September 30, 2019, respectively. The Bancorp recognized an immaterial amount of gains on the sale of certain private equity investments that previously recognized an impairment. The carrying value of the Bancorp’s private equity investments still held as of September 30, 2020 includes a cumulative $25 million of impairment charges recognized since adoption of the measurement alternative to fair value on January 1, 2018. Fair Value Option The Bancorp elected to measure certain residential mortgage loans held for sale under the fair value option as allowed under U.S. GAAP. Electing to measure residential mortgage loans held for sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. Management’s intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp’s loan portfolio. In such cases, the loans will continue to be measured at fair value. Fair value changes recognized in earnings for residential mortgage loans held at September 30, 2020 and 2019 for which the fair value option was elected, as well as the changes in fair value of the underlying IRLCs, included gains of $77 million and $35 million, respectively. These gains are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by $1 million at both Se |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Wealth and Asset Management. Results of the Bancorp’s business segments are presented based on its management structure and management accounting practices. The structure and accounting practices are specific to the Bancorp; therefore, the financial results of the Bancorp’s business segments are not necessarily comparable with similar information for other financial institutions. The Bancorp refines its methodologies from time to time as management’s accounting practices and businesses change. The Bancorp manages interest rate risk centrally at the corporate level. By employing an FTP methodology, the business segments are insulated from most benchmark interest rate volatility, enabling them to focus on serving customers through the origination of loans and acceptance of deposits. The FTP methodology assigns charge and credit rates to classes of assets and liabilities, respectively, based on the estimated amount and timing of the cash flows for each transaction. Assigning the FTP rate based on matching the duration of cash flows allocates interest income and interest expense to each business segment so its resulting net interest income is insulated from future changes in benchmark interest rates. The Bancorp’s FTP methodology also allocates the contribution to net interest income of the asset-generating and deposit-providing businesses on a duration-adjusted basis to better attribute the driver of the performance. As the asset and liability durations are not perfectly matched, the residual impact of the FTP methodology is captured in General Corporate and Other. The charge and credit rates are determined using the FTP rate curve, which is based on an estimate of Fifth Third’s marginal borrowing cost in the wholesale funding markets. The FTP curve is constructed using the U.S. swap curve, brokered CD pricing and unsecured debt pricing. The Bancorp adjusts the FTP charge and credit rates as dictated by changes in interest rates for various interest-earning assets and interest-bearing liabilities and by the review of behavioral assumptions, such as prepayment rates on interest-earning assets and the estimated durations for indeterminate-lived deposits. Key assumptions, including the credit rates provided for deposit accounts, are reviewed annually. Credit rates for deposit products and charge rates for loan products may be reset more frequently in response to changes in market conditions. In general, the charge rates on assets have declined since December 31, 2019 as they were affected by the prevailing level of interest rates and by the duration and repricing characteristics of the portfolio. The credit rates for deposit products also declined due to lower interest rates and modified assumptions. Thus, net interest income for asset-generating business segments improved while deposit-providing business segments were negatively impacted during the nine months ended September 30, 2020. The Bancorp’s methodology for allocating provision for credit losses expense to the business segments includes charges or benefits associated with changes in criticized commercial loan levels in addition to actual net charge-offs experienced by the loans and leases owned by each business segment. Provision for credit losses expense attributable to loan and lease growth and changes in ALLL factors is captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Additionally, the business segments form synergies by taking advantage of cross-sell opportunities and funding operations by accessing the capital markets as a collective unit. The following is a description of each of the Bancorp’s business segments and the products and services they provide to their respective client bases. Commercial Banking offers credit intermediation, cash management and financial services to large and middle-market businesses and government and professional customers. In addition to the traditional lending and depository offerings, Commercial Banking products and services include global cash management, foreign exchange and international trade finance, derivatives and capital markets services, asset-based lending, real estate finance, public finance, commercial leasing and syndicated finance. Branch Banking provides a full range of deposit and loan and lease products to individuals and small businesses through 1,122 full-service banking centers. Branch Banking offers depository and loan products, such as checking and savings accounts, home equity loans and lines of credit, credit cards and loans for automobiles and other personal financing needs, as well as products designed to meet the specific needs of small businesses, including cash management services. Consumer Lending includes the Bancorp’s residential mortgage, automobile and other indirect lending activities. Residential mortgage activities within Consumer Lending include the origination, retention and servicing of residential mortgage loans, sales and securitizations of those loans and all associated hedging activities. Residential mortgages are primarily originated through a dedicated sales force and through third-party correspondent lenders. Automobile and other indirect lending activities include extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers and marine dealers. Wealth and Asset Management provides a full range of investment alternatives for individuals, companies and not-for-profit organizations. Wealth and Asset Management is made up of four main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; Fifth Third Insurance Agency; Fifth Third Private Bank; and Fifth Third Institutional Services. FTS offers full service retail brokerage services to individual clients and broker-dealer services to the institutional marketplace. Fifth Third Insurance Agency assists clients with their financial and risk management needs. Fifth Third Private Bank offers wealth management strategies to high net worth and ultra-high net worth clients through wealth planning, investment management, banking, insurance, trust and estate services. Fifth Third Institutional Services provides advisory services for institutional clients, including middle market businesses, nonprofits, states and municipalities. The following tables present the results of operations and assets by business segment for the three months ended: September 30, 2020 ($ in millions) Commercial Branch Consumer Wealth General Eliminations Total Net interest income $ 432 355 98 28 257 — 1,170 (Benefit from) provision for credit losses 337 68 2 — (422) — (15) Net interest income after (benefit from) provision for credit losses 95 287 96 28 679 — 1,185 Noninterest income: Service charges on deposits 91 53 — — — — 144 Wealth and asset management revenue 1 44 — 126 — (39) (a) 132 Commercial banking revenue 125 1 — — (1) — 125 Mortgage banking net revenue — 2 72 2 — — 76 Card and processing revenue 13 76 — — 3 — 92 Leasing business revenue 77 — — — — — 77 Other noninterest income (b) 11 16 2 4 (7) — 26 Securities gains, net — — — — 51 — 51 Securities losses, net – non-qualifying hedges on MSRs — — (1) — — — (1) Total noninterest income 318 192 73 132 46 (39) 722 Noninterest expense: Compensation and benefits 127 162 57 54 237 — 637 Technology and communications 3 1 2 — 83 — 89 Net occupancy expense (d) 8 44 2 3 33 — 90 Leasing business expense 35 — — — — — 35 Equipment expense 6 10 — — 17 — 33 Card and processing expense 2 28 — — (1) — 29 Marketing expense 2 6 1 — 14 — 23 Other noninterest expense 228 209 75 76 (324) (39) 225 Total noninterest expense 411 460 137 133 59 (39) 1,161 Income before income taxes 2 19 32 27 666 — 746 Applicable income tax expense (benefit) (10) 4 7 6 158 — 165 Net income 12 15 25 21 508 — 581 Total goodwill $ 1,961 2,047 — 253 — — 4,261 Total assets $ 72,025 77,018 27,869 11,520 13,564 (c) — 201,996 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $11 for branches and land. For more information, refer to Note 8 and Note 24. (c) Includes bank premises and equipment of $45 classified as held for sale. For more information, refer to Note 8. (d) Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 10. September 30, 2019 ($ in millions) Commercial Branch Consumer Wealth General Eliminations Total Net interest income $ 623 598 88 44 (111) — 1,242 Provision for credit losses 54 58 14 — 8 — 134 Net interest income after provision for credit losses 569 540 74 44 (119) — 1,108 Noninterest income: Service charges on deposits 79 65 — — (1) — 143 Wealth and asset management revenue 1 41 — 119 — (37) (a) 124 Commercial banking revenue 122 1 — — — — 123 Mortgage banking net revenue — 2 92 1 — — 95 Card and processing revenue 16 74 — 1 3 — 94 Leasing business revenue 92 — — — — — 92 Other noninterest income (b) 25 21 4 4 10 — 64 Securities gains, net — — — — 5 — 5 Securities gains, net – non-qualifying hedges on MSRs — — — — — — — Total noninterest income 335 204 96 125 17 (37) 740 Noninterest expense: Compensation and benefits 118 148 48 51 219 — 584 Technology and communications 3 1 2 — 94 — 100 Net occupancy expense 7 44 3 3 27 — 84 Leasing business expense 40 — — — — — 40 Equipment expense 7 12 — — 14 — 33 Card and processing expense 2 32 — — (1) — 33 Marketing expense 3 17 1 1 18 — 40 Other noninterest expense 245 215 60 74 (312) (37) 245 Total noninterest expense 425 469 114 129 59 (37) 1,159 Income (loss) before income taxes 479 275 56 40 (161) — 689 Applicable income tax expense (benefit) 86 58 12 8 (24) — 140 Net income (loss) 393 217 44 32 (137) — 549 Total goodwill $ 1,982 2,054 — 254 — — 4,290 Total assets $ 75,143 69,021 26,171 9,961 (9,217) (c) — 171,079 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $5 for branches and land. For more information, refer to Note 8 and Note 24. (c) Includes bank premises and equipment of $87 classified as held for sale. For more information, refer to Note 8. The following tables present the results of operations and assets by business segment for the nine months ended: September 30, 2020 ($ in millions) Commercial Branch Consumer Wealth General Eliminations Total Net interest income $ 1,512 1,372 279 116 321 — 3,600 Provision for credit losses 839 182 25 — 64 — 1,110 Net interest income after provision for credit losses 673 1,190 254 116 257 — 2,490 Noninterest income: Service charges on deposits 253 160 — 1 — — 414 Wealth and asset management revenue 2 128 — 371 — (114) (a) 387 Commercial banking revenue 386 3 — 1 (3) — 387 Mortgage banking net revenue — 6 286 3 — — 295 Card and processing revenue 40 209 — 1 10 — 260 Leasing business revenue 207 (c) — — — — — 207 Other noninterest income (b) 9 49 8 13 (37) — 42 Securities gains, net — — — — 48 — 48 Securities gains, net – non-qualifying hedges on MSRs — — 3 — — — 3 Total noninterest income 897 555 297 390 18 (114) 2,043 Noninterest expense: Compensation and benefits 405 491 162 165 688 — 1,911 Technology and communications 10 2 6 1 253 — 272 Net occupancy expense (e) 23 131 7 9 84 — 254 Leasing business expense 103 — — — — — 103 Equipment expense 20 31 — — 46 — 97 Card and processing expense 6 86 — — (3) — 89 Marketing expense 5 23 3 2 41 — 74 Other noninterest expense 722 635 204 223 (988) (114) 682 Total noninterest expense 1,294 1,399 382 400 121 (114) 3,482 Income before income taxes 276 346 169 106 154 — 1,051 Applicable income tax expense 27 73 35 22 71 — 228 Net income 249 273 134 84 83 — 823 Total goodwill $ 1,961 2,047 — 253 — — 4,261 Total assets $ 72,025 77,018 27,869 11,520 13,564 (d) — 201,996 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $25 for branches and land. For more information, refer to Note 8 and Note 24. (c) Includes impairment charges of $3 for operating lease equipment. For more information, refer to Note 9 and Note 24. (d) Includes bank premises and equipment of $45 classified as held for sale. For more information, refer to Note 8. (e) Includes impairment losses and termination charges of $6 for ROU assets related to certain operating leases. For more information, refer to Note 10. September 30, 2019 ($ in millions) Commercial Branch Consumer Wealth General Eliminations Total Net interest income $ 1,761 1,802 234 141 (369) — 3,569 Provision for credit losses 100 164 34 — 12 — 310 Net interest income after provision for credit losses 1,661 1,638 200 141 (381) — 3,259 Noninterest income: Service charges on deposits 227 191 — 1 (2) — 417 Wealth and asset management revenue 2 117 — 345 — (106) (a) 358 Commercial banking revenue 329 3 — 1 — — 333 Mortgage banking net revenue — 4 209 1 — — 214 Card and processing revenue 49 212 — 2 3 — 266 Leasing business revenue 199 — — — — — 199 Other noninterest income (b) 55 63 10 9 542 — 679 Securities gains, net — — — — 30 — 30 Securities gains, net – non-qualifying hedges on MSRs — — 5 — — — 5 Total noninterest income 861 590 224 359 573 (106) 2,501 Noninterest expense: Compensation and benefits 346 444 146 165 742 — 1,843 Technology and communications 8 3 6 1 301 — 319 Net occupancy expense 21 130 8 10 79 — 248 Leasing business expense 97 — — — — — 97 Equipment expense 18 35 — 1 42 — 96 Card and processing expense 6 92 — 1 (1) — 98 Marketing expense 6 49 3 3 56 — 117 Other noninterest expense 696 622 172 216 (919) (106) 681 Total noninterest expense 1,198 1,375 335 397 300 (106) 3,499 Income (loss) before income taxes 1,324 853 89 103 (108) — 2,261 Applicable income tax expense 242 179 19 22 21 — 483 Net income (loss) 1,082 674 70 81 (129) — 1,778 Total goodwill $ 1,982 2,054 — 254 — — 4,290 Total assets $ 75,143 69,021 26,171 9,961 (9,217) (c) — 171,079 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $27 for branches and land. For more information, refer to Note 8 and Note 24. (c) Includes bank premises and equipment of $87 classified as held for sale. For more information, refer to Note 8. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of the Bancorp and its majority-owned subsidiaries and VIEs in which the Bancorp has been determined to be the primary beneficiary. Other entities, including certain joint ventures in which the Bancorp has the ability to exercise significant influence over operating and financial policies of the investee, but upon which the Bancorp does not possess control, are accounted for by the equity method and not consolidated. The investments in those entities in which the Bancorp does not have the ability to exercise significant influence are generally carried at fair value unless the investment does not have a readily determinable fair value. The Bancorp accounts for equity investments without a readily determinable fair value using the measurement alternative to fair value, representing the cost of the investment minus impairment recorded, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. Intercompany transactions and balances have been eliminated. In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, which consist of normal recurring accruals, necessary to present fairly the results for the periods presented. In accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial information, these statements do not include certain information and footnote disclosures required for complete annual financial statements and it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the Bancorp’s Annual Report on Form 10-K. The results of operations, comprehensive income and changes in equity for the three and nine months ended September 30, 2020 and 2019 and the cash flows for the nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2019 has been derived from the Bancorp’s Annual Report on Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain prior period data has been reclassified to conform to current period presentation. Specifically, effective January 1, 2020, Fifth Third reclassified certain noninterest income and noninterest expense line items to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications. |
Standards Adopted in 2020, Standards Issued but Not Yet Adopted and Regulatory Developments Related to the COVID-19 Pandemic | Standards Adopted in 2020 The Bancorp adopted the following new accounting standards during the nine months ended September 30, 2020: ASU 2016-13 – Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 The Bancorp adopted the amended guidance on January 1, 2020, using a modified retrospective approach, although certain provisions of the guidance are only required to be applied on a prospective basis. Upon adoption, the Bancorp recorded a combined increase to the ALLL and reserve for unfunded commitments of approximately $653 million and a cumulative-effect adjustment to retained earnings of $472 million. Of the increase to the ALLL, approximately $33 million pertained to the recognition of an ALLL on purchased financial assets with credit deterioration and was also added to the carrying value of the related loans. Adoption of the amended guidance did not have a material impact to the Bancorp’s investment securities portfolio. The required disclosures are included in Note 7. ASU 2017-04 – Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, which simplifies the test for goodwill impairment by removing the second step, which measures the amount of impairment loss, if any. Instead, the amended guidance states that an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, except that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This guidance applies to all reporting units, including those with zero or negative carrying amounts of net assets. The Bancorp adopted the amended guidance on January 1, 2020. The amended guidance is applied prospectively to all goodwill impairment tests performed after the adoption date. ASU 2018-13 – Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, which modifies the disclosure requirements for fair value measurements. The amendments remove the requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. The amendments also add new disclosure requirements regarding unrealized gains and losses from recurring Level 3 fair value measurements and the significant unobservable inputs used to develop Level 3 fair value measurements. The Bancorp adopted the amended guidance on January 1, 2020 and the required disclosures are included in Note 24. ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-15, which provides guidance on the accounting for implementation, setup and other upfront costs incurred by customers in cloud computing arrangements that are accounted for as service contracts. The amendments require that implementation costs be evaluated for capitalization using the framework applicable to costs incurred to develop or obtain internal-use software. Those capitalized costs are to be expensed over the term of the cloud computing arrangement and presented in the same financial statement line items as the service contract and its associated fees. The Bancorp adopted the amended guidance on January 1, 2020 on a prospective basis. ASU 2020-04 – Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate on Financial Reporting In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in the ASU apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for the Bancorp as of March 12, 2020 through December 31, 2022. The Bancorp is in the process of evaluating and applying, as applicable, the optional expedients and exceptions in accounting for eligible contract modifications, eligible existing hedging relationships and new hedging relationships available through December 31, 2022. Standards Issued but Not Yet Adopted The following accounting standards were issued but not yet adopted by the Bancorp as of September 30, 2020: ASU 2019-12 – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also clarify and amend existing guidance for other areas of Topic 740. The amended guidance is effective for the Bancorp on January 1, 2021 with early adoption permitted, and is to be applied either prospectively or retrospectively for the specific amendment based on the transition method prescribed by the FASB. The Bancorp is in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. However, the Bancorp does not currently expect the impact of adoption to be material. Regulatory Developments Related to the COVID-19 Pandemic On March 22, 2020, various national banking regulatory agencies jointly issued an interagency statement addressing loan modifications and reporting for financial institutions working with customers affected by the COVID-19 pandemic. The statement describes the agencies’ interpretation of how existing guidance in U.S. GAAP applies to certain loan modifications related to COVID-19. Among other things, the statement affirms that short-term modifications (e.g., six months) made on a good faith basis in response to COVID-19 to borrowers who were less than 30 days past due on contractual payments at the time a modification program is implemented would not be considered TDRs. The statement also clarifies that loans modified in response to the COVID-19 pandemic should be evaluated on the basis of their modified terms when reporting loans as past due and evaluating for nonaccrual status and charge-off. On March 27, 2020, the CARES Act was signed into law. Section 4013 of the CARES Act provides financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time in certain circumstances. This temporary suspension may only be applied to modifications of loans that were not more than 30 days past due as of December 31, 2019 and may not be applied to modifications that are not related to the COVID-19 pandemic. If elected, the temporary suspension may be applied to eligible modifications executed during the period beginning on March 1, 2020 and ending on the earlier of December 31, 2020 or 60 days after the termination of the COVID-19 national emergency. On April 7, 2020, the national banking regulatory agencies revised their previously issued interagency statement to clarify the interactions with the provisions of Section 4013 of the CARES Act. The Bancorp has elected to apply the temporary suspension of TDR requirements provided by the CARES Act for eligible loan modifications. For loan modifications that are not eligible for the suspension offered by the CARES Act or that are executed outside its applicable period, the Bancorp considers the interpretive guidance provided in the revised interagency statement to evaluate loan modifications within its scope, or existing TDR evaluation policies if the modification does not fall within the scope of the interagency statement. Loans and leases which received payment deferrals or forbearances as part of the Bancorp’s COVID-19 customer relief programs are generally not reported as delinquent if the loan or lease was less than 30 days past due at March 1, 2020 (the effective date of the COVID-19 national emergency declaration) unless the loan or lease subsequently becomes delinquent according to its modified terms. Those loans and leases that were 30 days or more past due at March 1, 2020 continue to be reported at their March 1, 2020 delinquency status unless the borrower makes supplemental payments to resolve the delinquency. After the conclusion of the payment deferral or forbearance period, borrowers who were delinquent as of March 1, 2020 may be returned to current status once they demonstrate a willingness and ability to repay the loan according to its modified terms. This may be evidenced by payment history after the payment deferral or forbearance period, or by completing an evaluation of the borrower’s creditworthiness upon exit from the Bancorp’s hardship programs. On April 10, 2020, the FASB staff issued a question-and-answer document (Q&A) to address questions on the application of the lease accounting guidance for lease concessions related to the effects of the COVID-19 pandemic. Under Topic 842, subsequent changes to lease payments that are not stipulated in the original lease contract are generally accounted for as lease modifications. Some contracts may contain explicit or implicit enforceable rights and obligations that require lease concessions in certain circumstances and therefore would not be considered a lease modification. Given the significant cost and complexity in assessing the large volume of lease contracts for which concessions are being granted due to the COVID-19 pandemic, the FASB clarified in this Q&A that an entity can elect to account for lease concessions associated with the COVID-19 pandemic as though enforceable rights and obligations for those concessions existed. This guidance eliminates the requirement to analyze each contract to determine whether enforceable rights and obligations to provide concessions exist and allows an entity to elect to apply or not apply the lease modification guidance in Topic 842. This election is only available for concessions related to the effect of the COVID-19 pandemic that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Bancorp has elected to not apply the lease modification accounting guidance in Topic 842 for lease concessions granted as a result of the COVID-19 pandemic as the deferrals only affect the timing of the payments and the amount of consideration to be received is substantially the same as that required by the original contract. Updates to Significant Accounting and Reporting Policies In conjunction with the adoption of new accounting standards, the Bancorp has updated its accounting and reporting policies for investment securities, portfolio loans and leases, the ALLL, the reserve for unfunded commitments and goodwill as described below. Refer to Note 1 of the Notes to Consolidated Financial Statements in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019 for discussion of these accounting and reporting policies for periods prior to January 1, 2020. |
Investment securities | Investment securities Debt securities are classified as held-to-maturity, available-for-sale or trading on the date of purchase. Only those securities which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Debt securities are classified as available-for-sale when, in management’s judgment, they may be sold in response to, or in anticipation of, changes in market conditions. Debt securities are classified as trading when bought and held principally for the purpose of selling them in the near term. Trading debt securities are reported at fair value with unrealized gains and losses included in noninterest income. Available-for-sale debt securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in OCI. Accrued interest receivables on investment securities are presented in the Condensed Consolidated Balance Sheets as a component of other assets. Available-for-sale debt securities with unrealized losses are reviewed quarterly to determine if the decline in fair value is the result of a credit loss or other factors. An allowance for credit losses is recorded against available-for-sale securities to reflect the amount of the unrealized loss attributable to credit; however, this impairment is limited by the amount that the fair value is less than the amortized cost basis. Any remaining unrealized loss is recognized through OCI. Changes in the allowance for credit losses are recognized in earnings. The determination of whether or not a credit loss exists is based on consideration of the cash flows expected to be collected from the debt security. The Bancorp develops these expectations after considering various factors such as agency ratings, the financial condition of the issuer or underlying obligors, payment history, payment structure of the security, industry and market conditions, underlying collateral and other factors which may be relevant based on the facts and circumstances pertaining to individual securities. If the Bancorp intends to sell the debt security or will more likely than not be required to sell the debt security before recovery of its amortized cost basis, then the allowance for credit losses, if previously recorded, is written off and the security’s amortized cost is written down to the security’s fair value at the reporting date, with any incremental impairment recorded as a charge to noninterest income. Held-to-maturity debt securities are assessed periodically to determine if a valuation allowance is necessary to absorb credit losses expected to occur over the remaining contractual life of the securities. The carrying amount of held-to-maturity debt securities is presented net of the valuation allowance for credit losses when such an allowance is deemed necessary. Equity securities with readily determinable fair values not accounted for under the equity method are reported at fair value with unrealized gains and losses included in noninterest income in the Condensed Consolidated Statements of Income. Equity securities without readily determinable fair values are measured at cost minus impairment, if any, plus or minus changes as a result of an observable price change for the identical or similar investment of the same issuer. At each quarterly reporting period, the Bancorp performs a qualitative assessment to evaluate whether impairment indicators are present. If qualitative indicators are identified, the investment is measured at fair value with the impairment loss included in noninterest income in the Condensed Consolidated Statements of Income. The fair value of a security is determined based on quoted market prices. If quoted market prices are not available, fair value is determined based on quoted prices of similar instruments or DCF models that incorporate market inputs and assumptions including discount rates, prepayment speeds and loss rates. The premium on purchased callable debt securities is amortized to the earliest call date if the call feature meets certain criteria. Otherwise, the premium is amortized to maturity similar to the discount on the callable debt securities. Realized securities gains or losses are reported within noninterest income in the Condensed Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. |
Portfolio loans and leases - basis of accounting | Portfolio loans and leases—basis of accounting Portfolio loans and leases are generally reported at the principal amount outstanding, net of unearned income, deferred direct loan origination fees and costs and any direct principal charge-offs. Direct loan origination fees and costs are deferred and the net amount is amortized over the estimated life of the related loans as a yield adjustment. Interest income is recognized based on the principal balance outstanding computed using the effective interest method. Loans and leases acquired by the Bancorp through a purchase business combination are recorded at fair value as of the acquisition date. Purchased loans and finance leases (including both sales-type leases and direct financing leases) are evaluated for evidence of credit deterioration at acquisition and recorded at their initial fair value. For loans and finance leases that do not exhibit evidence of more-than-insignificant credit deterioration since origination, the Bancorp does not carry over the acquired company’s ALLL, but upon acquisition will record an ALLL and provision for credit losses reflective of credit losses expected to be incurred over the remaining contractual life of the acquired loans. Premiums and discounts reflected in the initial fair value are amortized over the contractual life of the loan as an adjustment to yield. For loans and finance leases that exhibit evidence of more-than-insignificant credit quality deterioration since origination, the Bancorp’s estimate of expected credit losses is added to the ALLL upon acquisition and to the initial purchase price of the loans and leases to determine the initial amortized cost basis for the purchased financial assets with credit deterioration. Any resulting difference between the initial amortized cost basis (as adjusted for expected credit losses) and the par value of the loans and leases at the acquisition date represents the non-credit premium or discount, which is amortized over the contractual life of the loan or lease as an adjustment to yield. This method of accounting for loans acquired with deteriorated credit quality does not apply to loans carried at fair value or residential mortgage loans held for sale. The Bancorp’s lease portfolio consists of sales-type, direct financing and leveraged leases. Sales-type and direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, less unearned income. Interest income on sales-type and direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Leveraged leases, entered into before January 1, 2019, are carried at the aggregate of lease payments (less nonrecourse debt payments) plus estimated residual value of the leased property, less unearned income. Interest income on leveraged leases is recognized over the term of the lease to achieve a constant rate of return on the outstanding investment in the lease, net of the related deferred income tax liability, in the years in which the net investment is positive. Leveraged lease accounting is no longer applied for leases entered into or modified after the Bancorp’s adoption of ASU 2016-02, Leases, on January 1, 2019. |
ALLL | ALLL The Bancorp disaggregates its portfolio loans and leases into portfolio segments for purposes of determining the ALLL. The Bancorp’s portfolio segments include commercial, residential mortgage and consumer. The Bancorp further disaggregates its portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial portfolio segment include commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing. The residential mortgage portfolio segment is also considered a class. Classes within the consumer portfolio segment include home equity, indirect secured consumer, credit card and other consumer loans. For an analysis of the Bancorp’s ALLL by portfolio segment and credit quality information by class, refer to Note 7. The Bancorp maintains the ALLL to absorb the amount of credit losses that are expected to be incurred over the remaining contractual terms of the related loans and leases. Contractual terms are adjusted for expected prepayments but are not extended for expected extensions, renewals or modifications except in circumstances where the Bancorp reasonably expects to execute a TDR with the borrower or where certain extension or renewal options are embedded in the original contract and not unconditionally cancellable by the Bancorp. Accrued interest receivables on loans are presented in the Condensed Consolidated Financial Statements as a component of other assets. When accrued interest is deemed to be uncollectible (typically when a loan is placed on nonaccrual status), interest income is reversed. The Bancorp follows established policies for placing loans on nonaccrual status, so uncollectible accrued interest receivable is reversed in a timely manner. As a result, the Bancorp has elected not to measure an allowance for credit losses for accrued interest receivables. Refer to the Portfolio Loans and Leases section for additional information. Credit losses are charged and recoveries are credited to the ALLL. The ALLL is maintained at a level the Bancorp considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability of loans and leases, including historical credit loss experience, current and forecasted market and economic conditions and consideration of various qualitative factors that, in management’s judgment, deserve consideration in estimating credit losses. Provisions for credit losses are recorded for the amounts necessary to adjust the ALLL to the Bancorp’s current estimate of expected credit losses on portfolio loans and leases. The Bancorp’s strategy for credit risk management includes a combination of conservative exposure limits significantly below legal lending limits and conservative underwriting, documentation and collections standards. The strategy also emphasizes diversification on a geographic, industry and customer level, regular credit examinations and quarterly management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Bancorp’s methodology for determining the ALLL includes an estimate of expected credit losses on a collective basis for groups of loans and leases with similar risk characteristics and specific allowances for loans and leases which are individually evaluated. Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses, as well as loans that have been modified in a TDR, are individually evaluated for an ALLL. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when determining the amount of ALLL. Other factors may include the borrower’s susceptibility to risks presented by the forecasted macroeconomic environment, the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower and the Bancorp’s evaluation of the borrower’s management. When loans and leases are individually evaluated, allowances are determined based on management’s estimate of the borrower’s ability to repay the loan or lease given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to the Bancorp. Allowances for individually evaluated loans and leases that are collateral-dependent are measured based on the fair value of the underlying collateral, less expected costs to sell where applicable. Individually evaluated loans and leases that are not collateral-dependent are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate. The Bancorp evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Specific allowances on individually evaluated commercial loans and leases, including TDRs, are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. Expected credit losses are estimated on a collective basis for loans and leases that are not individually evaluated. These include commercial loans and leases that do not meet the criteria for individual evaluation as well as homogeneous loans and leases in the residential mortgage and consumer portfolio segments. For collectively evaluated loans and leases, the Bancorp uses models to forecast expected credit losses based on the probability of a loan or lease defaulting, the expected balance at the estimated date of default and the expected loss percentage given a default. The estimate of the expected balance at the time of default considers prepayments and, for loans with available credit, expected utilization rates. The Bancorp’s expected credit loss models were developed based on historical credit loss experience and observations of migration patterns for various credit risk characteristics (such as internal credit risk grades, external credit ratings or scores, delinquency status, loan-to-value trends, etc.) over time, with those observations evaluated in the context of concurrent macroeconomic conditions. The Bancorp developed its models from historical observations capturing a full economic cycle when possible. The Bancorp’s expected credit loss models consider historical credit loss experience, current market and economic conditions, and forecasted changes in market and economic conditions if such forecasts are considered reasonable and supportable. Generally, the Bancorp considers its forecasts to be reasonable and supportable for a period of up to three years from the estimation date. For periods beyond the reasonable and supportable forecast period, expected credit losses are estimated by reverting to historical loss information without adjustment for changes in economic conditions. This reversion is phased in over a two-year period. The Bancorp evaluates the length of its reasonable and supportable forecast period, its reversion period and reversion methodology at least annually, or more often if warranted by economic conditions or other circumstances. The Bancorp also considers qualitative factors in determining the ALLL. Qualitative factors are used to capture characteristics in the portfolio that impact expected credit losses but that are not fully captured within the Bancorp’s expected credit loss models. These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, lending and risk management personnel and results of internal audit and quality control reviews. These may also include adjustments, when deemed necessary, for specific idiosyncratic risks such as geopolitical events, natural disasters and their effects on regional borrowers, and changes in product structures. Qualitative factors may also be used to address the impacts of unforeseen events on key inputs and assumptions within the Bancorp’s expected credit loss models, such as the reasonable and supportable forecast period, changes to historical loss information or changes to the reversion period or methodology. When evaluating the adequacy of allowances, consideration is also given to regional geographic concentrations and the closely associated effect changing economic conditions have on the Bancorp’s customers. |
Reserve for unfunded commitments | Reserve for unfunded commitments The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities and is included in other liabilities in the Condensed Consolidated Balance Sheets. The determination of the adequacy of the reserve is based upon expected credit losses over the remaining contractual life of the commitments, taking into consideration the current funded balance and estimated exposure over the reasonable and supportable forecast period. This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of the Bancorp’s ALLL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in provision for credit losses in the Condensed Consolidated Statements of Income. |
Goodwill | Goodwill Business combinations entered into by the Bancorp typically include the recognition of goodwill. U.S. GAAP requires goodwill to be tested for impairment at the Bancorp’s reporting unit level on an annual basis, which for the Bancorp is September 30, and more frequently if events or circumstances indicate that there may be impairment. Impairment exists when a reporting unit’s carrying amount of goodwill exceeds its implied fair value. In testing goodwill for impairment, U.S. GAAP permits the Bancorp to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In this qualitative assessment, the Bancorp evaluates events and circumstances which may include, but are not limited to, the general economic environment, banking industry and market conditions, the overall financial performance of the Bancorp, the performance of the Bancorp’s common stock, the key financial performance metrics of the Bancorp’s reporting units and events affecting the reporting units to determine if it is not more likely than not that the fair value of a reporting unit is less than its carrying amount. If the quantitative impairment test is required or the decision to bypass the qualitative assessment is elected, the Bancorp performs the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. A recognized impairment loss cannot be reversed in future periods even if the fair value of the reporting unit subsequently recovers. The fair value of a reporting unit is the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. As none of the Bancorp’s reporting units are publicly traded, individual reporting unit fair value determinations cannot be directly correlated to the Bancorp’s stock price. The determination of the fair value of a reporting unit is a subjective process that involves the use of estimates and judgments, particularly related to cash flows, the appropriate discount rates and an applicable control premium. The Bancorp employs an income-based approach, utilizing the reporting unit’s forecasted cash flows (including a terminal value approach to estimate cash flows beyond the final year of the forecast) and the reporting unit’s estimated cost of equity as the discount rate. Significant management judgment is necessary in the preparation of each reporting unit’s forecasted cash flows surrounding expectations for earnings projections, growth and credit loss expectations and actual results may differ from forecasted results. Additionally, the Bancorp determines its market capitalization based on the average of the closing price of the Bancorp’s stock during the month including the measurement date, incorporating an additional control premium, and compares this market-based fair value measurement to the aggregate fair value of the Bancorp’s reporting units in order to corroborate the results of the income approach. Refer to Note 11 of the Notes to Condensed Consolidated Financial Statements for further information regarding the Bancorp’s goodwill. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |
Noncash Investing and Financing Activities | Cash payments related to interest and income taxes in addition to non-cash investing and financing activities are presented in the following table for the nine months ended September 30: ($ in millions) 2020 2019 Cash Payments: Interest $ 746 1,166 Income taxes 419 524 Transfers: Portfolio loans and leases to loans and leases held for sale (a) $ 713 191 Loans and leases held for sale to portfolio loans and leases 39 30 Portfolio loans and leases to OREO 11 23 Loans and leases held for sale to OREO 2 — Supplemental Disclosures: Additions to lease liabilities under operating leases $ 41 43 Additions to lease liabilities under finance leases 93 13 Right-of-use assets recognized at adoption of ASU 2016-02 — 509 Conversion of outstanding preferred stock issued by a Bancorp subsidiary — 197 (a) Includes $668 of residential mortgage loans previously sold to GNMA which the Bancorp was initially deemed to have regained effective control over under ASC Topic 860 and which were recorded as portfolio loans. The Bancorp subsequently repurchased these loans and classified them as held for sale. |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Consideration Paid, Noncontrolling Interest Recognized, and Acquired Identifiable Assets and Liabilities | The following table reflects consideration paid and the noncontrolling interest recognized for MB Financial, Inc.’s net assets and the amounts of acquired identifiable assets and liabilities assumed at their fair value as of the acquisition date: ($ in millions) Consideration paid Cash payments $ 469 Fair value of common stock issued 3,121 Stock-based awards 38 Dividend receivable from MB Financial, Inc. (20) Total consideration paid $ 3,608 Fair value of noncontrolling interest in acquiree $ 197 Net Identifiable Assets Acquired, at Fair Value: Assets Cash and due from banks $ 1,679 Federal funds sold 35 Other short-term investments 53 Available-for-sale debt and other securities 832 Held-to-maturity securities 4 Equity securities 51 Loans and leases held for sale 12 Portfolio loans and leases 13,414 (a) Bank premises and equipment 266 (a) Operating lease equipment 394 (a) Intangible assets 219 (a) Servicing rights 263 Other assets 750 (a) Total assets acquired $ 17,972 Liabilities Deposits $ 14,489 Other short-term borrowings 267 (a) Accrued taxes, interest and expenses 276 (a) Other liabilities 194 (a) Long-term debt 727 (a) Total liabilities assumed $ 15,953 Net identifiable assets acquired 2,019 Goodwill $ 1,786 (a) Fair values have been updated from the preliminary estimates reported in the March 31, 2019 Form 10-Q. |
Merger-related Expenses | The following table provides a summary of merger-related expenses recorded in noninterest expense: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Compensation and benefits $ — 14 4 88 Technology and communications — 8 6 68 Net occupancy expense — 3 4 10 Equipment expense — — — 1 Card and processing expense — — — 1 Marketing expense — — — 7 Other noninterest expense — 3 2 38 Total $ — 28 16 213 |
Unaudited Pro Forma | The following table presents unaudited pro forma information as if the acquisition of MB Financial, Inc. had occurred on January 1, 2018. This pro forma information combines the historical condensed consolidated results of operations of Fifth Third Bancorp and MB Financial, Inc. after giving effect to certain adjustments, including purchase accounting fair value adjustments, amortization of intangibles, stock-based compensation expense and acquisition costs, as well as the related income tax effects of those adjustments. The pro forma results also reflect reclassification adjustments to noninterest income and noninterest expense to conform MB Financial, Inc.’s presentation of operating lease income and the related depreciation expense with the Bancorp’s presentation. Direct costs associated with the acquisition were included in pro forma earnings as of January 1, 2018. The pro forma information does not necessarily reflect the results of operations that would have occurred had Fifth Third Bancorp acquired MB Financial, Inc. on January 1, 2018. Furthermore, cost savings and other business synergies related to the acquisition are not reflected in the unaudited pro forma amounts. Unaudited Pro Forma Information ($ in millions) For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Net interest income $ 1,223 3,696 Noninterest income 739 2,601 Net income available to common shareholders 520 1,840 |
Acquired Loans and Leases | The following table reflects the contractually required payments receivable, cash flows expected to be collected and estimated fair value of loans identified as PCI loans on the acquisition date of MB Financial, Inc. These fair value estimates were final as of March 31, 2020. ($ in millions) March 22, Contractually required payments including interest $ 1,139 Less: Nonaccretable difference 81 Cash flows expected to be collected 1,058 Less: Accretable yield 202 Fair value of loans acquired $ 856 |
Movement in Accretable Yield | A summary of activity related to the accretable yield is as follows: ($ in millions) Accretable Yield Balance as of December 31, 2018 $ — Additions 202 Accretion (30) Reclassifications from (to) nonaccretable difference (2) Balance as of September 30, 2019 $ 170 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale debt and other securities and held-to-maturity investment securities portfolios as of: September 30, 2020 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agency securities $ 75 3 — 78 Obligations of states and political subdivisions securities 17 — — 17 Mortgage-backed securities: Agency residential mortgage-backed securities 11,711 894 (2) 12,603 Agency commercial mortgage-backed securities 16,173 1,578 (1) 17,750 Non-agency commercial mortgage-backed securities 3,317 258 — 3,575 Asset-backed securities and other debt securities 2,869 37 (35) 2,871 Other securities (a) 531 — — 531 Total available-for-sale debt and other securities $ 34,693 2,770 (38) 37,425 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 13 — — 13 Asset-backed securities and other debt securities 2 — — 2 Total held-to-maturity securities $ 15 — — 15 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $47, $482 and $2, respectively, at September 30, 2020, that are carried at cost. December 31, 2019 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agency securities $ 74 1 — 75 Obligations of states and political subdivisions securities 18 — — 18 Mortgage-backed securities: Agency residential mortgage-backed securities 13,746 388 (19) 14,115 Agency commercial mortgage-backed securities 15,141 564 (12) 15,693 Non-agency commercial mortgage-backed securities 3,242 123 — 3,365 Asset-backed securities and other debt securities 2,189 29 (12) 2,206 Other securities (a) 556 — — 556 Total available-for-sale debt and other securities $ 34,966 1,105 (43) 36,028 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 15 — — 15 Asset-backed securities and other debt securities 2 — — 2 Total held-to-maturity securities $ 17 — — 17 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $76, $478 and $2, respectively, at December 31, 2019, that are carried at cost. The following table provides the fair value of trading debt securities and equity securities as of: September 30, December 31, Trading debt securities $ 704 297 Equity securities 277 564 |
Realized Gains and Losses Recognized in Income from Investment Securities | The following table presents securities gains (losses) recognized in the Condensed Consolidated Statements of Income: For the three months ended September 30, For the nine months ended ($ in millions) 2020 2019 2020 2019 Available-for-sale debt and other securities: Realized gains $ 46 3 47 51 Realized losses (1) — (2) (47) OTTI — — — (1) Net realized gains on available-for sale debt and other securities $ 45 3 45 3 Total trading debt securities gains (losses) $ (1) — 3 5 Total equity securities gains (a) $ 6 2 3 27 Total gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities (b) $ 50 5 51 35 (a) Includes net unrealized losses of $1 and $3 for the three and nine months ended September 30, 2020, respectively, and an immaterial net unrealized gain and a net unrealized gain of $23 for the three and nine months ended September 30, 2019, respectively. (b) Excludes $1 and $7 of net securities gains for the three and nine months ended September 30, 2020, respectively, and $2 and $6 of net securities gains for the three and nine months ended September 30, 2019, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These gains are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. |
Contractual Maturity Schedule | The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity investment securities as of September 30, 2020 are shown in the following table: ($ in millions) Available-for-Sale Debt and Other Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Less than 1 year $ 516 538 6 6 1-5 years 13,612 14,538 7 7 5-10 years 14,103 15,463 — — Over 10 years 5,931 6,355 2 2 Other securities 531 531 — — Total $ 34,693 37,425 15 15 (a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. |
Fair Value and Gross Unrealized Loss of Securities Available for Sale | The following table provides the fair value and gross unrealized losses on available-for-sale debt and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of: Less than 12 months 12 months or more Total ($ in millions) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized September 30, 2020 Agency residential mortgage-backed securities $ 72 (2) 1 — 73 (2) Agency commercial mortgage-backed securities 75 (1) — — 75 (1) Non-agency commercial mortgage-backed securities 24 — — — 24 — Asset-backed securities and other debt securities 864 (16) 533 (19) 1,397 (35) Total $ 1,035 (19) 534 (19) 1,569 (38) December 31, 2019 Agency residential mortgage-backed securities $ 2,159 (19) 4 — 2,163 (19) Agency commercial mortgage-backed securities 1,602 (12) — — 1,602 (12) Asset-backed securities and other debt securities 367 (3) 379 (9) 746 (12) Total $ 4,128 (34) 383 (9) 4,511 (43) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and Leases Classified by Primary Purpose | The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of: September 30, December 31, Loans and leases held for sale: Commercial and industrial loans $ 57 135 Commercial mortgage loans 2 1 Residential mortgage loans 2,264 1,264 Total loans and leases held for sale $ 2,323 1,400 Portfolio loans and leases: Commercial and industrial loans (a) $ 51,695 50,542 Commercial mortgage loans 10,878 10,963 Commercial construction loans 5,656 5,090 Commercial leases 3,021 3,363 Total commercial loans and leases $ 71,250 69,958 Residential mortgage loans (b) $ 16,158 16,724 Home equity 5,455 6,083 Indirect secured consumer loans 12,925 11,538 Credit card 2,087 2,532 Other consumer loans 2,856 2,723 Total consumer loans $ 39,481 39,600 Total portfolio loans and leases $ 110,731 109,558 (a) Includes $5.2 billion, as of September 30, 2020, related to the SBA’s Paycheck Protection Program established under the CARES Act on March 27, 2020. (b) Includes $51 million, as of September 30, 2020, of residential mortgage loans previously sold to GNMA for which the Bancorp is deemed to have regained effective control over under ASC Topic 860, but did not exercise its option to repurchase. Refer to Note 16 for further information. |
Total Loans and Leases Owned by the Bancorp | The following table presents a summary of the total loans and leases owned by the Bancorp as of: Carrying Value 90 Days Past Due September 30, December 31, September 30, December 31, Commercial and industrial loans $ 51,752 50,677 4 11 Commercial mortgage loans 10,880 10,964 26 15 Commercial construction loans 5,656 5,090 — — Commercial leases 3,021 3,363 2 — Residential mortgage loans 18,422 17,988 67 50 Home equity 5,455 6,083 2 1 Indirect secured consumer loans 12,925 11,538 10 10 Credit card 2,087 2,532 27 42 Other consumer loans 2,856 2,723 1 1 Total loans and leases $ 113,054 110,958 139 130 Less: Loans and leases held for sale $ 2,323 1,400 Total portfolio loans and leases $ 110,731 109,558 The following table presents a summary of net charge-offs (recoveries): For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Commercial and industrial loans $ 42 29 157 67 Commercial mortgage loans 11 — 14 (1) Commercial leases 8 4 24 7 Residential mortgage loans (1) 1 1 1 Home equity 1 2 5 8 Indirect secured consumer loans 3 13 23 34 Credit card 29 33 100 101 Other consumer loans 8 17 29 39 Total net charge-offs $ 101 99 353 256 |
Investment in Lease Financing | The following table presents the components of the net investment in leases as of: ($ in millions) (a) September 30, December 31, 2019 Net investment in direct financing leases: Lease payment receivable (present value) $ 1,610 2,196 Unguaranteed residual assets (present value) 198 220 Net discount on acquired leases — (7) Net investment in sales-type leases: Lease payment receivable (present value) 818 510 Unguaranteed residual assets (present value) 29 15 (a) Excludes $366 and $429 of leveraged leases at September 30, 2020 and December 31, 2019, respectively. |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The following table presents undiscounted cash flows for both direct financing and sales-type leases for the remainder of 2020 through 2025 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows: As of September 30, 2020 ($ in millions) Direct Financing Sales-Type Leases Remainder of 2020 $ 137 57 2021 503 226 2022 397 197 2023 232 144 2024 172 108 2025 115 56 Thereafter 165 113 Total undiscounted cash flows $ 1,721 901 Less: Difference between undiscounted cash flows and discounted cash flows 111 83 Present value of lease payments (recognized as lease receivables) $ 1,610 818 |
Credit Quality and the Allowa_2
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of Transactions in the ALLL | Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment: For the three months ended September 30, 2020 ($ in millions) Residential Balance, beginning of period $ 1,502 327 867 — 2,696 Losses charged off (a) (66) (1) (68) — (135) Recoveries of losses previously charged off (a) 5 2 27 — 34 (Benefit from) provision for loan and lease losses 92 (31) (82) — (21) Balance, end of period $ 1,533 297 744 — 2,574 (a) The Bancorp recorded $9 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the three months ended September 30, 2019 ($ in millions) Commercial Residential Consumer Unallocated Total Balance, beginning of period $ 651 76 276 112 1,115 Losses charged off (a) (34) (2) (94) — (130) Recoveries of losses previously charged off (a) 1 1 29 — 31 Provision for loan and lease losses 53 — 72 2 127 Balance, end of period $ 671 75 283 114 1,143 (a) The Bancorp recorded $12 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the nine months ended September 30, 2020 ($ in millions) Residential Balance, beginning of period $ 710 73 298 121 1,202 Impact of adoption of ASU 2016-13 (a) 160 196 408 (121) 643 Losses charged off (b) (209) (6) (242) — (457) Recoveries of losses previously charged off (b) 14 5 85 — 104 Provision for loan and lease losses 858 29 195 — 1,082 Balance, end of period $ 1,533 297 744 — 2,574 (a) Includes $31, $2 and $1 in Commercial, Residential Mortgage and Consumer, respectively, related to the initial recognition of an ALLL on PCD loans. (b) The Bancorp recorded $31 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the nine months ended September 30, 2019 ($ in millions) Commercial Residential Mortgage Consumer Unallocated Total Balance, beginning of period $ 645 81 267 110 1,103 Losses charged off (a) (87) (5) (266) — (358) Recoveries of losses previously charged off (a) 14 4 84 — 102 Provision for (benefit from) loan and lease losses 99 (5) 198 4 296 Balance, end of period $ 671 75 283 114 1,143 (a) The Bancorp recorded $35 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: As of September 30, 2020 ($ in millions) Residential ALLL: (a) Individually evaluated $ 178 78 46 302 Collectively evaluated 1,355 219 698 2,272 Total ALLL $ 1,533 297 744 2,574 Portfolio loans and leases: (b) Individually evaluated $ 1,111 650 280 2,041 Collectively evaluated 69,743 15,255 23,025 108,023 Purchased credit deteriorated (c) 396 79 18 493 Total portfolio loans and leases $ 71,250 15,984 23,323 110,557 (a) Includes $3 related to commercial leveraged leases at September 30, 2020. (b) Excludes $174 of residential mortgage loans measured at fair value and includes $366 of commercial leveraged leases, net of unearned income at September 30, 2020. (c) Includes $51, as of September 30, 2020, of residential mortgage loans previously sold to GNMA for which the Bancorp is deemed to have regained effective control over under ASC Topic 860, but did not exercise its option to repurchase. Refer to Note 16 for further information. As of December 31, 2019 ($ in millions) Commercial Residential Consumer Unallocated Total ALLL: (a) Individually evaluated for impairment $ 82 55 33 — 170 Collectively evaluated for impairment 628 18 265 — 911 Unallocated — — — 121 121 Total ALLL $ 710 73 298 121 1,202 Portfolio loans and leases: (b) Individually evaluated for impairment $ 413 814 302 — 1,529 Collectively evaluated for impairment 69,047 15,690 22,558 — 107,295 Purchased credit impaired 498 37 16 — 551 Total portfolio loans and leases $ 69,958 16,541 22,876 — 109,375 (a) Includes $1 related to commercial leveraged leases at December 31, 2019. (b) Excludes $183 of residential mortgage loans measured at fair value and includes $429 of commercial leveraged leases, net of unearned income at December 31, 2019. |
Loan and Leases Balances by Credit Quality Indicator | The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class and vintage: As of September 30, 2020 ($ in millions) Term Loans and Leases Revolving Revolving 2020 2019 2018 2017 2016 Prior Total Commercial and industrial loans: Pass $ 6,755 2,329 1,288 849 561 856 31,689 — 44,327 Special mention 96 67 86 40 10 21 3,661 — 3,981 Substandard 167 77 269 87 44 121 2,610 — 3,375 Doubtful — — — — — — 12 — 12 Total commercial and industrial loans $ 7,018 2,473 1,643 976 615 998 37,972 — 51,695 Commercial mortgage owner-occupied loans: Pass $ 905 693 466 308 258 489 1,033 — 4,152 Special mention 57 8 28 13 12 16 83 — 217 Substandard 219 36 40 10 14 36 80 — 435 Doubtful — — — — — — — — — Total commercial mortgage owner-occupied loans $ 1,181 737 534 331 284 541 1,196 — 4,804 Commercial mortgage nonowner-occupied loans: Pass $ 738 865 564 298 248 391 1,818 — 4,922 Special mention 254 1 16 3 28 20 402 — 724 Substandard 129 7 61 12 2 43 174 — 428 Doubtful — — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 1,121 873 641 313 278 454 2,394 — 6,074 Commercial construction loans: Pass $ 26 58 28 — 9 12 4,949 — 5,082 Special mention 40 — — — — — 477 — 517 Substandard 5 — — — — — 52 — 57 Doubtful — — — — — — — — — Total commercial construction loans $ 71 58 28 — 9 12 5,478 — 5,656 Commercial leases: Pass $ 447 392 328 399 334 943 — — 2,843 Special mention 3 40 16 6 6 8 — — 79 Substandard 4 4 19 33 7 32 — — 99 Doubtful — — — — — — — — — Total commercial leases $ 454 436 363 438 347 983 — — 3,021 Total commercial loans and leases: Pass $ 8,871 4,337 2,674 1,854 1,410 2,691 39,489 — 61,326 Special mention 450 116 146 62 56 65 4,623 — 5,518 Substandard 524 124 389 142 67 232 2,916 — 4,394 Doubtful — — — — — — 12 — 12 Total commercial loans and leases $ 9,845 4,577 3,209 2,058 1,533 2,988 47,040 — 71,250 The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class: As of December 31, 2019 ($ in millions) Special Commercial and industrial loans $ 47,671 1,423 1,406 42 50,542 Commercial mortgage owner-occupied loans 4,421 162 293 4 4,880 Commercial mortgage nonowner-occupied loans 5,866 135 82 — 6,083 Commercial construction loans 4,963 52 75 — 5,090 Commercial leases 3,222 53 88 — 3,363 Total commercial loans and leases $ 66,143 1,825 1,944 46 69,958 The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class and vintage, disaggregated by both age and performing versus nonperforming status: As of September 30, 2020 ($ in millions) Term Loans Revolving Revolving 2020 2019 2018 2017 2016 Prior Total Residential mortgage loans: Performing: Current (a) $ 2,843 2,348 976 1,877 2,589 5,191 — — 15,824 30-89 days past due 2 1 3 4 3 11 — — 24 90 days or more past due — 5 2 7 5 48 — — 67 Total performing 2,845 2,354 981 1,888 2,597 5,250 — — 15,915 Nonperforming — — — 2 3 64 — — 69 Total residential mortgage loans (b) $ 2,845 2,354 981 1,890 2,600 5,314 — — 15,984 Home equity: Performing: Current $ 11 27 35 5 3 164 5,086 8 5,339 30-89 days past due — — — — — 3 22 — 25 90 days or more past due — — — — — 2 — — 2 Total performing 11 27 35 5 3 169 5,108 8 5,366 Nonperforming — — 1 — — 12 75 1 89 Total home equity $ 11 27 36 5 3 181 5,183 9 5,455 Indirect secured consumer loans: Performing: Current $ 4,928 4,186 1,909 1,008 462 290 — — 12,783 30-89 days past due 13 38 32 19 9 5 — — 116 90 days or more past due 1 2 3 2 1 1 — — 10 Total performing 4,942 4,226 1,944 1,029 472 296 — — 12,909 Nonperforming — 4 4 3 2 3 — — 16 Total indirect secured consumer loans $ 4,942 4,230 1,948 1,032 474 299 — — 12,925 Credit card: Performing: Current $ — — — — — — 2,005 — 2,005 30-89 days past due — — — — — — 29 — 29 90 days or more past due — — — — — — 27 — 27 Total performing — — — — — — 2,061 — 2,061 Nonperforming — — — — — — 26 — 26 Total credit card $ — — — — — — 2,087 — 2,087 Other consumer loans Performing: Current $ 605 645 502 205 37 36 803 1 2,834 30-89 days past due 2 6 4 3 — — 3 — 18 90 days or more past due — 1 — — — — — — 1 Total performing 607 652 506 208 37 36 806 1 2,853 Nonperforming — — — — — 1 2 — 3 Total other consumer loans $ 607 652 506 208 37 37 808 1 2,856 Total consumer loans (b) $ 8,405 7,263 3,471 3,135 3,114 5,831 8,078 10 39,307 (a) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of September 30, 2020, $91 of these loans were 30-89 days past due and $249 were 90 days or more past due. The Bancorp recognized an immaterial amount and $2 of losses during the three and nine months ended September 30, 2020, respectively, due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $174 of residential mortgage loans measured at fair value at September 30, 2020. The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of: December 31, 2019 ($ in millions) Performing Nonperforming Residential mortgage loans (a) $ 16,450 91 Home equity 5,989 94 Indirect secured consumer loans 11,531 7 Credit card 2,505 27 Other consumer loans 2,721 2 Total residential mortgage and consumer loans (a) $ 39,196 221 (a) Excludes $183 of residential mortgage loans measured at fair value at December 31, 2019. |
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | The following tables summarize the Bancorp’s amortized cost basis in portfolio commercial loans and leases, by age and class: Current Loans and Leases (a) Past Due Total Loans 90 Days Past As of September 30, 2020 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 51,413 140 142 282 51,695 4 Commercial mortgage owner-occupied loans 4,753 14 37 51 4,804 22 Commercial mortgage nonowner-occupied loans 5,979 58 37 95 6,074 4 Commercial construction loans 5,654 2 — 2 5,656 — Commercial leases 3,007 4 10 14 3,021 2 Total portfolio commercial loans and leases $ 70,806 218 226 444 71,250 32 (a) Includes accrual and nonaccrual loans and leases. Current Loans and Leases (a) Past Due Total Loans 90 Days Past As of December 31, 2019 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 50,305 133 104 237 50,542 11 Commercial mortgage owner-occupied loans 4,853 4 23 27 4,880 9 Commercial mortgage nonowner-occupied loans 6,072 5 6 11 6,083 6 Commercial construction loans 5,089 1 — 1 5,090 — Commercial leases 3,338 11 14 25 3,363 — Total portfolio commercial loans and leases $ 69,657 154 147 301 69,958 26 (a) Includes accrual and nonaccrual loans and leases. The following tables summarize the Bancorp’s amortized cost basis in portfolio consumer loans, by age and class: Current Loans and Leases (b)(c) Past Due Total Loans 90 Days Past December 31, 2019 ($ in millions) 30-89 Days (c) 90 Days or More (c) Total Residential mortgage loans (a) $ 16,372 27 142 169 16,541 50 Consumer loans: Home equity 5,965 61 57 118 6,083 1 Indirect secured consumer loans 11,389 132 17 149 11,538 10 Credit card 2,434 50 48 98 2,532 42 Other consumer loans 2,702 18 3 21 2,723 1 Total portfolio consumer loans (a) $ 38,862 288 267 555 39,417 104 (a) Excludes $183 of residential mortgage loans measured at fair value at December 31, 2019. (b) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2019, $94 of these loans were 30-89 days past due and $261 were 90 days or more past due. The Bancorp recognized $1 of losses during both the three and nine months ended September 30, 2019 due to claim denials and curtailments associated with these insured or guaranteed loans. (c) Includes accrual and nonaccrual loans and leases. |
Summary of the Amortized Cost Basis of the Bancorp's Collateral Dependent Loans | The following table presents the amortized cost basis of the Bancorp’s collateral-dependent loans and leases, by portfolio class: As of September 30, 2020 ($ in millions) Amortized Cost Basis Commercial loans and leases: Commercial and industrial loans $ 877 Commercial mortgage owner-occupied loans 67 Commercial mortgage nonowner-occupied loans 120 Commercial construction loans 20 Commercial leases 15 Total commercial loans and leases 1,099 Residential mortgage loans 114 Consumer loans: Home equity 75 Indirect secured consumer loans 9 Other consumer loans — Total consumer loans 84 Total portfolio loans and leases $ 1,297 |
Summary of the Bancorp's Nonperforming Loans and Leases by Class | The following table presents the amortized cost basis of the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property: As of September 30, 2020 ($ in millions) For the three months ended September 30, 2020 For the nine months ended September 30, 2020 With an ALLL No Related Total Interest Income Recognized Interest Income Recognized Commercial loans and leases: Commercial and industrial loans $ 354 164 518 2 6 Commercial mortgage owner-occupied loans 17 35 52 — — Commercial mortgage nonowner-occupied loans 86 16 102 — — Commercial leases 11 5 16 — 1 Total nonaccrual portfolio commercial loans and leases 468 220 688 2 7 Residential mortgage loans 10 59 69 7 22 Consumer loans: Home equity 58 31 89 2 7 Indirect secured consumer loans 9 7 16 — — Credit card 26 — 26 1 3 Other consumer loans 3 — 3 — — Total nonaccrual portfolio consumer loans 96 38 134 3 10 Total nonaccrual portfolio loans and leases (a)(b) $ 574 317 891 12 39 OREO and other repossessed property — 40 40 — — Total nonperforming portfolio assets (a)(b) $ 574 357 931 12 39 (a) Excludes $10 of nonaccrual loans held for sale and $1 of nonaccrual restructured loans held for sale. (b) Includes $25 of nonaccrual government insured commercial loans whose repayments are insured by the SBA, of which $13 are restructured nonaccrual government insured commercial loans. The following table presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of: ($ in millions) December 31, Commercial loans and leases: Commercial and industrial loans $ 338 Commercial mortgage owner-occupied loans 29 Commercial mortgage nonowner-occupied loans 1 Commercial construction loans 1 Commercial leases 28 Total nonaccrual portfolio commercial loans and leases 397 Residential mortgage loans 91 Consumer loans: Home equity 94 Indirect secured consumer loans 7 Credit card 27 Other consumer loans 2 Total nonaccrual portfolio consumer loans 130 Total nonaccrual portfolio loans and leases (a)(b) $ 618 OREO and other repossessed property 62 Total nonperforming portfolio assets (a)(b) $ 680 (a) Excludes $7 of nonaccrual loans and leases held for sale. (b) Includes $16 of nonaccrual government insured commercial loans whose repayments are insured by the SBA, of which $11 are restructured nonaccrual government insured commercial loans. |
Summary of Loans Modified in a TDR | The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the three months ended: September 30, 2020 ($ in millions) (a) Number of Loans Modified in a TDR During the Period (b) Amortized Cost Basis (Decrease) Charge-offs Commercial loans: Commercial and industrial loans 33 $ 75 1 7 Commercial mortgage owner-occupied loans 10 19 (3) — Commercial mortgage nonowner-occupied loans 3 16 (2) — Residential mortgage loans 66 11 — — Consumer loans: Home equity 88 2 (3) — Indirect secured consumer loans 14 — — — Credit card 1,023 6 2 1 Total portfolio loans 1,237 $ 129 (5) 8 (a) Excludes all loans and leases held for sale. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. September 30, 2019 ($ in millions) (a) Number of Loans Modified in a TDR During the Period (b) Recorded Investment Increase Charge-offs Commercial loans: Commercial and industrial loans 27 $ 72 (1) — Commercial mortgage owner-occupied loans 4 1 — — Residential mortgage loans 256 39 1 — Consumer loans: Home equity 21 1 — — Indirect secured consumer loans 27 — — — Credit card 1,467 8 2 1 Total portfolio loans 1,802 $ 121 2 1 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the nine months ended: September 30, 2020 ($ in millions) (a) Number of Loans Modified in a TDR During the Period (b) Amortized Cost Basis Increase Charge-offs Commercial loans: Commercial and industrial loans 96 $ 250 25 7 Commercial mortgage owner-occupied loans 38 38 (3) — Commercial mortgage nonowner-occupied loans 15 38 (2) — Commercial construction 3 21 1 — Residential mortgage loans 359 48 1 — Consumer loans: Home equity 130 6 (4) — Indirect secured consumer loans 56 — — — Credit card 3,880 21 8 1 Total portfolio loans 4,577 $ 422 26 8 (a) Excludes all loans and leases held for sale. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. September 30, 2019 ($ in millions) (a) Number of Loans Modified in a TDR During the Period (b) Recorded Investment (Decrease) Charge-offs Commercial loans: Commercial and industrial loans 65 $ 168 (15) 5 Commercial mortgage owner-occupied loans 13 10 — — Residential mortgage loans 531 74 1 — Consumer loans: Home equity 58 3 — — Indirect secured consumer loans 65 — — — Credit card 4,250 24 6 3 Total portfolio loans 4,982 $ 279 (8) 8 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. (b) Represents number of loans post-modification and excludes loans previously modified in a TDR. |
Summary of Subsequent Defaults | The following tables provide a summary of TDRs that subsequently defaulted during the three months ended September 30, 2020 and 2019 and were within 12 months of the restructuring date: September 30, 2020 ($ in millions) (a) Number of Amortized Commercial loans: Commercial and industrial loans 6 $ 1 Commercial mortgage owner-occupied loans 1 1 Residential mortgage loans 45 8 Consumer loans: Home equity 2 — Indirect secured consumer loans 6 — Credit card 20 — Total portfolio loans 80 $ 10 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. September 30, 2019 ($ in millions) (a) Number of Recorded Commercial loans: Commercial and industrial loans 1 $ 3 Commercial mortgage owner-occupied loans 2 — Residential mortgage loans 67 10 Consumer loans: Home equity 7 — Credit card 69 — Total portfolio loans 146 $ 13 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. The following tables provide a summary of TDRs that subsequently defaulted during the nine months ended September 30, 2020 and 2019 and were within 12 months of the restructuring date: September 30, 2020 ($ in millions) (a) Number of Amortized Commercial loans: Commercial and industrial loans 12 $ 5 Commercial mortgage owner-occupied loans 8 3 Commercial mortgage nonowner-occupied loans 2 9 Residential mortgage loans 117 18 Consumer loans: Home equity 5 — Indirect secured consumer loans 12 — Credit card 237 1 Total portfolio loans 393 $ 36 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. September 30, 2019 ($ in millions) (a) Number of Recorded Commercial loans: Commercial and industrial loans 8 $ 20 Commercial mortgage owner-occupied loans 4 1 Residential mortgage loans 196 30 Consumer loans: Home equity 12 — Credit card 605 3 Total portfolio loans 825 $ 54 (a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. |
Summary of Portfolio Loans, by Class, that Received Payment Deferrals or Forbearances | The following table provides a summary of portfolio loans and leases as of September 30, 2020, by class, that have received payment deferrals or forbearances as part of the Bancorp’s COVID-19 pandemic hardship relief programs: Amortized Cost Basis of Loans and Leases Past Due (c) Completed Relief Period In Active Relief Period (a) Total that Have Received Payment Relief (b) September 30, 2020 ($ in millions) Current (c) 30-89 Days 90 Days or More Total Past Due Commercial loans: Commercial and industrial loans $ 1,412 39 1,451 1,413 29 9 38 Commercial mortgage owner-occupied loans 580 38 618 594 9 15 24 Commercial mortgage nonowner-occupied loans 920 258 1,178 1,101 56 21 77 Commercial construction loans 306 150 456 456 — — — Commercial leases 99 — 99 99 — — — Residential mortgage loans (b) 426 1,095 1,521 1,324 51 146 197 Consumer loans: Home equity 41 177 218 205 7 6 13 Indirect secured consumer loans 924 172 1,096 1,025 63 8 71 Credit card 133 18 151 131 12 8 20 Other consumer loans 97 16 113 106 6 1 7 Total portfolio loans and leases $ 4,938 1,963 6,901 6,454 233 214 447 (a) Includes loans and leases that are still in the initial payment relief period (primarily residential mortgage and home equity loans) and loans that have requested additional relief. (b) Excludes $843 of loans previously sold to GNMA that the Bancorp had the option to repurchase as a result of forbearance, $792 of which were repurchased and are classified as held for sale. (c) For loans which are still in an active relief period, past due status is based on the borrower's status as of March 1, 2020, as adjusted based on the borrower's compliance with modified loan terms. |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Bank Premises and Equipment | The following table provides a summary of bank premises and equipment as of: ($ in millions) September 30, December 31, Land and improvements (a) $ 626 639 Buildings (a) 1,587 1,575 Equipment 2,254 2,126 Leasehold improvements 450 432 Construction in progress (a) 140 85 Bank premises and equipment held for sale: Land and improvements 27 8 Buildings 17 18 Equipment 1 1 Accumulated depreciation and amortization (3,012) (2,889) Total bank premises and equipment $ 2,090 1,995 (a) At September 30, 2020 and December 31, 2019, land and improvements, buildings and construction in progress included $54 and $51, respectively, associated with parcels of undeveloped land intended for future branch expansion. |
Operating Lease Equipment (Tabl
Operating Lease Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Undiscounted Cash Flows for Operating Leases | The following table presents undiscounted future lease payments for operating leases for the remainder of 2020 through 2025 and thereafter: As of September 30, 2020 ($ in millions) Undiscounted Remainder of 2020 $ 39 2021 140 2022 114 2023 85 2024 52 2025 32 Thereafter 44 Total operating lease payments $ 506 |
Lease Obligations - Lessee (Tab
Lease Obligations - Lessee (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Assets and Lease Liabilities | The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Condensed Consolidated Balance Sheets Caption September 30, December 31, Assets Operating lease right-of-use assets Other assets $ 444 473 Finance lease right-of-use assets Bank premises and equipment 112 34 Total right-of-use assets (a) $ 556 507 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 532 555 Finance lease liabilities Long-term debt 117 35 Total lease liabilities $ 649 590 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $124 and $25, respectively, as of September 30, 2020, and $75 and $27, respectively, as of December 31, 2019. |
Components of Lease Costs, Weighted-Average Lease Term and Discount Rate | The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended For the nine months ended 2020 2019 2020 2019 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 4 2 7 5 Interest on lease liabilities Interest on long-term debt 1 — 2 — Total finance lease costs $ 5 2 9 5 Operating lease cost Net occupancy expense $ 29 25 76 72 Short-term lease cost Net occupancy expense — — 1 — Variable lease cost Net occupancy expense 7 7 21 23 Sublease income Net occupancy expense (1) (1) (2) (3) Total operating lease costs $ 35 31 96 92 Total lease costs $ 40 33 105 97 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: September 30, Weighted-average remaining lease term (years): Operating leases 9.22 Finance leases 11.94 Weighted-average discount rate: Operating leases 3.10 % Finance leases 2.36 The following table presents information related to lease transactions for the nine months ended: ($ in millions) September 30, September 30, Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 69 72 Operating cash flows from finance leases 2 1 Financing cash flows from finance leases 8 3 Gains on sale and leaseback transactions — 5 (a) The cash flows related to the short-term and variable lease payments are not included in the amounts in the table as they were not included in the measurement of lease liabilities. |
Undiscounted Cash Flows for Operating Leases | The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2020 through 2025 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities as follows: As of September 30, 2020 ($ in millions) Operating Leases Finance Leases Total Remainder of 2020 $ 22 4 26 2021 84 18 102 2022 80 18 98 2023 72 15 87 2024 63 16 79 2025 56 9 65 Thereafter 242 60 302 Total undiscounted cash flows $ 619 140 759 Less: Difference between undiscounted cash flows and discounted cash flows (87) (23) (110) Present value of lease liabilities $ 532 117 649 |
Undiscounted Cash Flows for Finance Leases | The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2020 through 2025 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities as follows: As of September 30, 2020 ($ in millions) Operating Leases Finance Leases Total Remainder of 2020 $ 22 4 26 2021 84 18 102 2022 80 18 98 2023 72 15 87 2024 63 16 79 2025 56 9 65 Thereafter 242 60 302 Total undiscounted cash flows $ 619 140 759 Less: Difference between undiscounted cash flows and discounted cash flows (87) (23) (110) Present value of lease liabilities $ 532 117 649 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Net Carrying Amount of Goodwill by Reporting Segment | Changes in the net carrying amount of goodwill, by reporting unit, for the nine months ended September 30, 2020 and the year ended December 31, 2019 were as follows: ($ in millions) Commercial Branch Consumer Wealth General Total Goodwill $ 1,380 1,655 215 193 — 3,443 Accumulated impairment losses (750) — (215) — — (965) Net carrying value as of December 31, 2018 $ 630 1,655 — 193 — 2,478 Acquisition activity 1,324 391 — 62 — 1,777 Sale of business — — — (3) — (3) Net carrying value as of December 31, 2019 $ 1,954 2,046 — 252 — 4,252 Acquisition activity 7 1 — 1 — 9 Net carrying value as of September 30, 2020 $ 1,961 2,047 — 253 — 4,261 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | The details of the Bancorp’s intangible assets are shown in the following table: ($ in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount As of September 30, 2020 Core deposit intangibles $ 229 (104) 125 Customer relationships 29 (7) 22 Operating leases 19 (13) 6 Non-compete agreements 3 (2) 1 Other 4 (1) 3 Total intangible assets $ 284 (127) 157 As of December 31, 2019 Core deposit intangibles $ 229 (70) 159 Customer relationships 29 (6) 23 Operating leases 23 (9) 14 Non-compete agreements 13 (11) 2 Other 4 (1) 3 Total intangible assets $ 298 (97) 201 |
Estimated Amortization Expense | Estimated amortization expense for the remainder of 2020 through 2024 is as follows: ($ in millions) Total Remainder of 2020 $ 13 2021 43 2022 33 2023 24 2024 16 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation of VIEs | The following table provides a summary of the classifications of consolidated VIE assets and liabilities included in the Condensed Consolidated Balance Sheets for automobile loan securitizations as of: ($ in millions) September 30, December 31, Assets: Other short-term investments $ 61 74 Indirect secured consumer loans 887 1,354 ALLL (9) (7) Other assets 5 8 Total assets $ 944 1,429 Liabilities: Other liabilities $ 2 2 Long-term debt 786 1,253 Total liabilities $ 788 1,255 |
Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses | The following tables provide a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities as of: September 30, 2020 ($ in millions) Total Total Maximum CDC investments $ 1,473 436 1,473 Private equity investments 96 — 182 Loans provided to VIEs 2,515 — 3,781 Lease pool entities 75 — 75 December 31, 2019 ($ in millions) Total Total Maximum CDC investments $ 1,435 428 1,435 Private equity investments 89 — 164 Loans provided to VIEs 2,715 — 4,083 Lease pool entities 74 — 74 |
Investments in Qualified Affordable Housing Tax Credits | The following table summarizes the impact to the Condensed Consolidated Statements of Income related to these investments: Condensed Consolidated Statements of Income Caption (a) For the three months ended September 30, For the nine months ended September 30, ($ in millions) 2020 2019 2020 2019 Proportional amortization Applicable income tax expense $ 62 31 $ 94 105 Tax credits and other benefits Applicable income tax expense (74) (35) (111) (122) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three and nine months ended September 30, 2020 and 2019. |
Sales of Receivables and Serv_2
Sales of Receivables and Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Activity Related to Mortgage Banking Net Revenue | Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Residential mortgage loan sales (a) $ 2,822 2,397 8,840 5,212 Origination fees and gains on loan sales 93 64 269 126 Gross mortgage servicing fees 66 71 197 196 (a) Represents the unpaid principal balance at the time of the sale. |
Changes in Servicing Assets | The following table presents changes in the servicing rights related to residential mortgage loans for the nine months ended September 30: ($ in millions) 2020 2019 Balance, beginning of period $ 993 938 Servicing rights originated 150 99 Servicing rights purchased 36 26 Servicing rights obtained in acquisition — 263 Changes in fair value: Due to changes in inputs or assumptions (a) (340) (294) Other changes in fair value (b) (179) (122) Balance, end of period $ 660 910 (a) Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates. (b) Primarily reflects changes due to collection of contractual cash flows and the passage of time. |
Activity Related to the MSR Portfolio | The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Securities gains (losses), net – non-qualifying hedges on MSRs $ (1) — 3 5 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) (12) 130 348 308 MSR fair value adjustment due to changes in inputs or assumptions (a) 4 (120) (340) (294) (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. |
Servicing Assets and Residual Interests Economic Assumptions | The key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale, securitization or purchase resulting from transactions completed during the three months ended September 30, 2020 and 2019 were as follows: September 30, 2020 September 30, 2019 Rate Weighted- Prepayment OAS Weighted- Prepayment OAS Residential mortgage loans: Servicing rights Fixed 5.9 12.2 % 780 5.5 13.7 % 543 Servicing rights Adjustable 3.1 25.7 % 759 — — — |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At September 30, 2020, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS are as follows: Prepayment OAS Fair Weighted- Impact of Adverse Change OAS Impact of ($ in millions) (a) Rate Rate 10% 20% 50% 10% 20% Residential mortgage loans: Servicing rights Fixed $ 652 4.1 18.2 % $ (22) (42) (94) 918 $ (18) (35) Servicing rights Adjustable 8 3.7 21.2 (1) (1) (2) 938 — — (a) The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value September 30, 2020 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 1,955 581 — Total fair value hedges 581 — Cash flow hedges: Interest rate floors related to C&I loans 3,000 265 — Interest rate swaps related to C&I loans 8,000 — 1 Total cash flow hedges 265 1 Total derivatives designated as qualifying hedging instruments 846 1 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 6,560 227 1 Forward contracts related to residential mortgage loans held for sale 3,087 2 10 Swap associated with the sale of Visa, Inc. Class B Shares 3,280 — 188 Foreign exchange contracts 169 3 — Interest rate contracts for collateral management 12,000 1 1 Commercial loan trading 6 — — Interest rate swaps 750 — — Total free-standing derivatives – risk management and other business purposes 233 200 Free-standing derivatives – customer accommodation: Interest rate contracts (a) 79,286 1,399 293 Interest rate lock commitments 3,044 85 — Commodity contracts 7,441 483 488 TBA securities 67 — — Foreign exchange contracts 13,154 176 136 Total free-standing derivatives – customer accommodation 2,143 917 Total derivatives not designated as qualifying hedging instruments 2,376 1,117 Total $ 3,222 1,118 (a) Derivative assets and liabilities are presented net of variation margin of $50 and $1,211, respectively. Fair Value December 31, 2019 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 2,705 393 — Total fair value hedges 393 — Cash flow hedges: Interest rate floors related to C&I loans 3,000 115 — Interest rate swaps related to C&I loans 8,000 — 2 Total cash flow hedges 115 2 Total derivatives designated as qualifying hedging instruments 508 2 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 6,420 131 2 Forward contracts related to residential mortgage loans held for sale 2,901 1 5 Swap associated with the sale of Visa, Inc. Class B Shares 3,082 — 163 Foreign exchange contracts 195 — 5 Total free-standing derivatives – risk management and other business purposes 132 175 Free-standing derivatives – customer accommodation: Interest rate contracts (a) 73,327 579 148 Interest rate lock commitments 907 18 — Commodity contracts 8,525 271 270 TBA securities 50 — — Foreign exchange contracts 14,144 165 146 Total free-standing derivatives – customer accommodation 1,033 564 Total derivatives not designated as qualifying hedging instruments 1,165 739 Total $ 1,673 741 (a) Derivative assets and liabilities are presented net of variation margin of $40 and $493, respectively. |
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income: Condensed Consolidated For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Change in fair value of interest rate swaps hedging long- term debt Interest on long-term debt $ (39) 75 187 219 Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 39 (74) (186) (214) The following amounts were recorded in the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges as of: ($ in millions) Condensed Consolidated September 30, Carrying amount of the hedged items Long-term debt $ 2,531 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt 588 |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pre-tax net gains recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Amount of pre-tax net gains recognized in OCI $ 1 105 625 456 Amount of pre-tax net gains reclassified from OCI into net income 72 5 165 2 |
Schedule of Price Risk Derivatives | The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: Condensed Consolidated For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ 7 11 (4) 6 Interest rate contracts related to MSR portfolio Mortgage banking net revenue (12) 130 348 308 Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income (3) 2 4 (3) Equity contracts: Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (22) (11) (73) (63) |
Risk Ratings of the Notional Amount of Risk Participation Agreements | Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of: ($ in millions) September 30, December 31, Pass $ 3,124 3,841 Special mention 265 86 Substandard 132 16 Total $ 3,521 3,943 |
Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accommodation | The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Condensed Consolidated For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Interest rate contracts: Interest rate contracts for customers (contract revenue) Commercial banking revenue $ 5 12 31 30 Interest rate contracts for customers (credit losses) Other noninterest expense (1) — (1) — Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 (5) (33) (18) Interest rate lock commitments Mortgage banking net revenue 54 50 237 108 Commodity contracts: Commodity contracts for customers (contract revenue) Commercial banking revenue 4 3 10 6 Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) — (2) — Commodity contracts for customers (credit losses) Other noninterest expense — — (1) — Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Commercial banking revenue 14 12 40 36 Foreign exchange contracts for customers (contract revenue) Other noninterest income (6) 7 (3) 15 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 — (1) — |
Offsetting Derivative Financial Instruments | The following tables provide a summary of offsetting derivative financial instruments: Gross Amount Recognized in the Condensed Consolidated Balance Sheets (a) Gross Amounts Not Offset in the As of September 30, 2020 ($ in millions) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 3,137 (698) (795) 1,644 Total assets 3,137 (698) (795) 1,644 Liabilities: Derivatives 1,118 (698) (159) 261 Total liabilities $ 1,118 (698) (159) 261 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. Gross Amount Recognized in the Condensed Consolidated Balance Sheets (a) Gross Amounts Not Offset in the As of December 31, 2019 ($ in millions) Derivatives Collateral (b) Net Amount Assets: Derivatives $ 1,655 (417) (504) 734 Total assets 1,655 (417) (504) 734 Liabilities: Derivatives 741 (417) (97) 227 Total liabilities $ 741 (417) (97) 227 (a) Amount does not include IRLCs because these instruments are not subject to master netting or similar arrangements. (b) Amount of collateral received as an offset to asset positions or pledged as an offset to liability positions. Collateral values in excess of related derivative amounts recognized in the Condensed Consolidated Balance Sheets were excluded from this table. |
Other Short-Term Borrowings (Ta
Other Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Short-term Debt [Abstract] | |
Summary of Other Short-Term Borrowings | The following table presents a summary of the Bancorp’s other short-term borrowings as of: ($ in millions) September 30, December 31, Securities sold under repurchase agreements $ 659 469 Derivative collateral 487 542 Other secured borrowings 50 — Total other short-term borrowings $ 1,196 1,011 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Significant Commitments | The following table reflects a summary of significant commitments as of: ($ in millions) September 30, December 31, Commitments to extend credit $ 73,903 75,696 Forward contracts related to residential mortgage loans held for sale 3,087 2,901 Letters of credit 1,900 2,137 Purchase obligations 132 113 Capital commitments for private equity investments 86 75 Capital expenditures 80 84 |
Credit Risk Associated with Commitments | Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of: ($ in millions) September 30, December 31, Pass $ 70,735 74,654 Special mention 2,165 633 Substandard 1,003 408 Doubtful — 1 Total commitments to extend credit $ 73,903 75,696 |
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of September 30, 2020: ($ in millions) Less than 1 year (a) $ 1,014 1 - 5 years (a) 884 Over 5 years 2 Total letters of credit $ 1,900 (a) Includes $3 and $2 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 -5 years, respectively. |
Credit Risk Associated with Letters of Credit | Risk ratings of outstanding letters of credit under this risk rating system are summarized in the following table as of: ($ in millions) September 30, December 31, Pass $ 1,663 2,005 Special mention 102 20 Substandard 135 111 Doubtful — 1 Total letters of credit $ 1,900 2,137 |
Visa Funding and Bancorp Cash Payments | After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows: Period ($ in millions) Visa Bancorp Cash Q2 2010 $ 500 20 Q4 2010 800 35 Q2 2011 400 19 Q1 2012 1,565 75 Q3 2012 150 6 Q3 2014 450 18 Q2 2018 600 26 Q3 2019 300 12 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income | The tables below present the activity of the components of OCI and AOCI for the three months ended: Total OCI Total AOCI September 30, 2020 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale debt securities arising during period $ (42) 10 (32) Reclassification adjustment for net gains on available-for-sale debt securities included in net income (45) 11 (34) Net unrealized gains on available-for-sale debt securities (87) 21 (66) 2,150 (66) 2,084 Unrealized holding gains on cash flow hedge derivatives arising during period 1 — 1 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (72) 16 (56) Net unrealized gains on cash flow hedge derivatives (71) 16 (55) 841 (55) 786 Net actuarial loss arising during the year (2) — (2) Reclassification of amounts to net periodic benefit costs 4 (1) 3 Defined benefit pension plans, net 2 (1) 1 (40) 1 (39) Total $ (156) 36 (120) 2,951 (120) 2,831 Total OCI Total AOCI September 30, 2019 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding gains on available-for-sale debt securities arising during period $ 497 (118) 379 Reclassification adjustment for net gains on available-for-sale debt securities included in net income (3) 1 (2) Net unrealized gains on available-for-sale debt securities 494 (117) 377 781 377 1,158 Unrealized holding gains on cash flow hedge derivatives arising during period 105 (22) 83 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (5) 1 (4) Net unrealized gains on cash flow hedge derivatives 100 (21) 79 440 79 519 Reclassification of amounts to net periodic benefit costs 1 — 1 Defined benefit pension plans, net 1 — 1 (43) 1 (42) Total $ 595 (138) 457 1,178 457 1,635 The tables below present the activity of the components of OCI and AOCI for the nine months ended: Total OCI Total AOCI September 30, 2020 ($ in millions) Pre-tax Tax Effect Net Activity Beginning Balance Net Activity Ending Balance Unrealized holding gains on available-for-sale debt securities arising during period $ 1,715 (409) 1,306 Reclassification adjustment for net gains on available-for-sale debt securities included in net income (45) 11 (34) Net unrealized gains on available-for-sale debt securities 1,670 (398) 1,272 812 1,272 2,084 Unrealized holding gains on cash flow hedge derivatives arising during period 625 (131) 494 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (165) 35 (130) Net unrealized gains on cash flow hedge derivatives 460 (96) 364 422 364 786 Net actuarial loss arising during the year (2) — (2) Reclassification of amounts to net periodic benefit costs 7 (2) 5 Defined benefit pension plans, net 5 (2) 3 (42) 3 (39) Total $ 2,135 (496) 1,639 1,192 1,639 2,831 Total OCI Total AOCI September 30, 2019 ($ in millions) Pre-tax Tax Effect Net Activity Beginning Balance Net Activity Ending Balance Unrealized holding gains on available-for-sale debt securities arising during period $ 1,817 (430) 1,387 Reclassification adjustment for net gains on available-for-sale debt securities included in net income (3) 1 (2) Net unrealized gains on available-for-sale debt securities 1,814 (429) 1,385 (227) 1,385 1,158 Unrealized holding gains on cash flow hedge derivatives arising during period 456 (95) 361 Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (2) — (2) Net unrealized gains on cash flow hedge derivatives 454 (95) 359 160 359 519 Reclassification of amounts to net periodic benefit costs 4 (1) 3 Defined benefit pension plans, net 4 (1) 3 (45) 3 (42) Total $ 2,272 (525) 1,747 (112) 1,747 1,635 |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI: Consolidated Statements of For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Net unrealized gains on available-for-sale debt securities: (b) Net gains included in net income Securities gains, net $ 45 3 45 3 Income before income taxes 45 3 45 3 Applicable income tax expense (11) (1) (11) (1) Net income 34 2 34 2 Net unrealized gains on cash flow hedge derivatives: (b) Interest rate contracts related to C&I loans Interest and fees on loans and leases 72 5 165 2 Income before income taxes 72 5 165 2 Applicable income tax expense (16) (1) (35) — Net income 56 4 130 2 Net periodic benefit costs: (b) Amortization of net actuarial loss Compensation and benefits (a) (2) (1) (5) (4) Settlements Compensation and benefits (a) (2) — (2) — Income before income taxes (4) (1) (7) (4) Applicable income tax expense 1 — 2 1 Net income (3) (1) (5) (3) Total reclassifications for the period Net income $ 87 5 159 1 (a) This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 23 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information. (b) Amounts in parentheses indicate reductions to net income. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following tables provide the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share: 2020 2019 For the three months ended September 30, (in millions, except per share data) Income Average Per Share Income Average Per Share Earnings Per Share: Net income available to common shareholders $ 562 $ 530 Less: Income allocated to participating securities 2 4 Net income allocated to common shareholders $ 560 715 $ 0.78 $ 526 727 $ 0.72 Earnings Per Diluted Share: Net income available to common shareholders $ 562 $ 530 Effect of dilutive securities: Stock-based awards — 4 — 9 Net income available to common shareholders plus assumed conversions 562 530 Less: Income allocated to participating securities 2 4 Net income allocated to common shareholders plus assumed conversions $ 560 719 $ 0.78 $ 526 736 $ 0.71 2020 2019 For the nine months ended September 30, (in millions, except per share data) Income Average Shares Per Share Amount Income Average Shares Per Share Amount Earnings Per Share: Net income available to common shareholders $ 754 $ 1,718 Less: Income allocated to participating securities 3 16 Net income allocated to common shareholders $ 751 714 $ 1.05 $ 1,702 709 $ 2.40 Earnings Per Diluted Share: Net income available to common shareholders $ 754 $ 1,718 Effect of dilutive securities: Stock-based awards — 5 — 9 Net income available to common shareholders plus assumed conversions 754 1,718 Less: Income allocated to participating securities 3 16 Net income allocated to common shareholders plus assumed conversions $ 751 719 $ 1.04 $ 1,702 718 $ 2.37 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables summarize assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurements Using September 30, 2020 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agency securities $ 78 — — 78 Obligations of states and political subdivisions securities — 17 — 17 Mortgage-backed securities: Agency residential mortgage-backed securities — 12,603 — 12,603 Agency commercial mortgage-backed securities — 17,750 — 17,750 Non-agency commercial mortgage-backed securities — 3,575 — 3,575 Asset-backed securities and other debt securities — 2,871 — 2,871 Available-for-sale debt and other securities (a) 78 36,816 — 36,894 Trading debt securities: U.S. Treasury and federal agency securities 64 20 — 84 Obligations of states and political subdivisions securities — 39 — 39 Agency residential mortgage-backed securities — 46 — 46 Asset-backed securities and other debt securities — 535 — 535 Trading debt securities 64 640 — 704 Equity securities 258 19 — 277 Residential mortgage loans held for sale — 1,472 — 1,472 Residential mortgage loans (b) — — 174 174 Servicing rights — — 660 660 Derivative assets: Interest rate contracts 2 2,466 92 2,560 Foreign exchange contracts — 179 — 179 Commodity contracts 59 424 — 483 Derivative assets (c) 61 3,069 92 3,222 Total assets $ 461 42,016 926 43,403 Liabilities: Derivative liabilities: Interest rate contracts $ 10 288 8 306 Foreign exchange contracts — 136 — 136 Equity contracts — — 188 188 Commodity contracts 63 425 — 488 Derivative liabilities (d) 73 849 196 1,118 Short positions: U.S. Treasury and federal agency securities 88 — — 88 Asset-backed securities and other debt securities — 421 — 421 Short positions (d) 88 421 — 509 Total liabilities $ 161 1,270 196 1,627 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $47, $482 and $2, respectively, at September 30, 2020. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2019 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agency securities $ 75 — — 75 Obligations of states and political subdivisions securities — 18 — 18 Mortgage-backed securities: Agency residential mortgage-backed securities — 14,115 — 14,115 Agency commercial mortgage-backed securities — 15,693 — 15,693 Non-agency commercial mortgage-backed securities — 3,365 — 3,365 Asset-backed securities and other debt securities — 2,206 — 2,206 Available-for-sale debt and other securities (a) 75 35,397 — 35,472 Trading debt securities: U.S. Treasury and federal agency securities 2 — — 2 Obligations of states and political subdivisions securities — 9 — 9 Agency residential mortgage-backed securities — 55 — 55 Asset-backed securities and other debt securities — 231 — 231 Trading debt securities 2 295 — 297 Equity securities 554 10 — 564 Residential mortgage loans held for sale — 1,264 — 1,264 Residential mortgage loans (b) — — 183 183 Servicing rights — — 993 993 Derivative assets: Interest rate contracts 1 1,218 18 1,237 Foreign exchange contracts — 165 — 165 Commodity contracts 37 234 — 271 Derivative assets (c) 38 1,617 18 1,673 Total assets $ 669 38,583 1,194 40,446 Liabilities: Derivative liabilities: Interest rate contracts $ 5 144 8 157 Foreign exchange contracts — 151 — 151 Equity contracts — — 163 163 Commodity contracts 17 253 — 270 Derivative liabilities (d) 22 548 171 741 Short positions: U.S. Treasury and federal agency securities 49 — — 49 Asset-backed securities and other debt securities — 100 — 100 Short positions (d) 49 100 — 149 Total liabilities $ 71 648 171 890 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $76, $478 and $2, respectively, at December 31, 2019. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended September 30, 2020 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 185 676 89 (183) 767 Total (losses) gains (realized/unrealized): (d) Included in earnings — (71) 55 (22) (38) Purchases/originations — 55 — — 55 Settlements (21) — (60) 17 (64) Transfers into Level 3 (b) 10 — — — 10 Balance, end of period $ 174 660 84 (188) 730 The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at September 30, 2020 (c) $ — (2) 61 (22) 37 (a) Net interest rate derivatives include derivative assets and liabilities of $92 and $8, respectively, as of September 30, 2020. (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. (d) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at September 30, 2020. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended September 30, 2019 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 192 1,039 5 (151) 1,085 Total (losses) gains (realized/unrealized): Included in earnings — (171) 51 (11) (131) Purchases/originations — 42 (1) — 41 Settlements (11) — (40) 16 (35) Transfers into Level 3 (b) 3 — — — 3 Balance, end of period $ 184 910 15 (146) 963 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at September 30, 2019 (c) $ — (131) 24 (11) (118) (a) Net interest rate derivatives include derivative assets and liabilities of $24 and $9, respectively, as of September 30, 2019. (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the nine months ended September 30, 2020 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 183 993 10 (163) 1,023 Total (losses) gains (realized/unrealized): (d) Included in earnings 2 (519) 241 (73) (349) Purchases/originations — 186 4 — 190 Settlements (50) — (171) 48 (173) Transfers into Level 3 (b) 39 — — — 39 Balance, end of period $ 174 660 84 (188) 730 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at September 30, 2020 (c) $ 2 (281) 88 (73) (264) (a) Net interest rate derivatives include derivative assets and liabilities of $92 and $8, respectively, as of September 30, 2020. (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. (c) Includes interest income and expense. (d) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at September 30, 2020. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the nine months ended September 30, 2019 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 179 938 (1) (125) 991 Total (losses) gains (realized/unrealized): Included in earnings (1) (416) 110 (63) (370) Purchases/originations/acquisitions — 388 (3) — 385 Settlements (22) — (91) 42 (71) Transfers into Level 3 (b) 28 — — — 28 Balance, end of period $ 184 910 15 (146) 963 The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to instruments still held at September 30, 2019 (c) $ (1) (329) 25 (63) (368) (a) Net interest rate derivatives include derivative assets and liabilities of $24 and $9, respectively, as of September 30, 2019. (b) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. |
Total Gains and Losses Included in Earnings for Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The total losses and gains included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Mortgage banking net revenue $ (17) (121) (278) (309) Commercial banking revenue 1 1 1 2 Other noninterest income (22) (11) (72) (63) Total losses $ (38) (131) (349) (370) The total losses and gains included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at September 30, 2020 and 2019 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the nine months ended ($ in millions) 2020 2019 2020 2019 Mortgage banking net revenue $ 58 (109) (193) (307) Commercial banking revenue 1 2 1 2 Other noninterest income (22) (11) (72) (63) Total (losses) gains $ 37 (118) (264) (368) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Recurring | The following tables present information as of September 30, 2020 and 2019 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured at fair value on a recurring basis: As of September 30, 2020 ($ in millions) Financial Instrument Fair Value Valuation Significant Unobservable Range of Inputs Weighted-Average Residential mortgage loans $ 174 Loss rate model Interest rate risk factor (8.6) - 11.0% 1.1 % (a) Credit risk factor — - 26.0% 0.4 % (a) (Fixed) 18.2 % (b) Servicing rights 660 DCF Prepayment speed 0.5 - 99.9% (Adjustable) 21.2 % (b) (Fixed) 918 (b) OAS (bps) 536 - 1,537 (Adjustable) 938 (b) IRLCs, net 85 DCF Loan closing rates 7.2 - 97.2% 61.4 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (188) DCF Timing of the resolution Q3 2022 - Q2 2024 Q1 2023 (d) (a) Unobservable inputs were weighted by the relative carrying value of the instruments. (b) Unobservable inputs were weighted by the relative unpaid principal balance of the instruments. (c) Unobservable inputs were weighted by the relative notional amount of the instruments. (d) Unobservable inputs were weighted by the probability of the final funding date of the instruments. As of September 30, 2019 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 184 Loss rate model Interest rate risk factor (6.8) - 6.9 % (0.2) % Credit risk factor — - 31.8 % 0.5 % (Fixed) 15.4 % Servicing rights 910 DCF Prepayment speed 0.5 - 97.0 % (Adjustable) 23.4 % (Fixed) 619 OAS (bps) 484 - 1,513 (Adjustable) 914 IRLCs, net 24 DCF Loan closing rates 5.7 - 96.7 % 76.9 % Swap associated with the sale of Visa, Inc. Class B Shares (146) DCF Timing of the resolution Q2 2021 - Q4 2023 Q1 2022 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of September 30, 2020 and 2019, and for which a nonrecurring fair value adjustment was recorded during the three and nine months ended September 30, 2020 and 2019, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of September 30, 2020 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended September 30, 2020 For the nine months ended September 30, 2020 Commercial loans held for sale $ — 31 17 48 1 (4) Commercial and industrial loans — — 534 534 (39) (182) Commercial mortgage loans — — 82 82 (12) (45) Commercial leases — — 12 12 2 (14) Consumer loans — — 197 197 (1) 2 OREO — — 20 20 (2) (7) Bank premises and equipment — — 21 21 (11) (25) Operating lease equipment — — 9 9 — (3) Private equity investments — — 69 69 — (9) Total $ — 31 961 992 (62) (287) Fair Value Measurements Using Total (Losses) Gains As of September 30, 2019 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Commercial and industrial loans $ — — 116 116 (11) (45) Commercial mortgage loans — — 12 12 — — Commercial leases — — 18 18 2 (9) OREO — — 16 16 (2) (5) Bank premises and equipment — — 23 23 (4) (26) Private equity investments — 6 2 8 — 6 Total $ — 6 187 193 (15) (79) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Nonrecurring | The following tables present information as of September 30, 2020 and 2019 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: As of September 30, 2020 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 16 Comparable company analysis Market comparable transactions NM NM 1 Appraised value Appraised value NM NM Commercial and industrial loans 534 Appraised value Collateral value NM NM Commercial mortgage loans 82 Appraised value Collateral value NM NM Commercial leases 12 Appraised value Collateral value NM NM Consumer loans 197 Appraised value Collateral value NM NM OREO 20 Appraised value Appraised value NM NM Bank premises and equipment 21 Appraised value Appraised value NM NM Operating lease equipment 9 Appraised value Appraised value NM NM Private equity investments 69 Comparable company analysis Market comparable transactions NM NM As of September 30, 2019 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial and industrial loans $ 116 Appraised value Collateral value NM NM Commercial mortgage loans 12 Appraised value Collateral value NM NM Commercial leases 18 Appraised value Collateral value NM NM OREO 16 Appraised value Appraised value NM NM Bank premises and equipment 23 Appraised value Appraised value NM NM Private equity investments 2 Comparable company analysis Market comparable transactions NM NM |
Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage and Commercial Loans Measured at Fair Value | The following table summarizes the difference between the fair value and the unpaid principal balance for residential mortgage loans measured at fair value as of: September 30, 2020 ($ in millions) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Residential mortgage loans measured at fair value $ 1,646 1,569 77 Past due loans of 90 days or more 3 3 — Nonaccrual loans — — — December 31, 2019 Residential mortgage loans measured at fair value $ 1,447 1,410 37 Past due loans of 90 days or more 2 2 — Nonaccrual loans 1 1 — |
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments | The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: Net Carrying Fair Value Measurements Using Total As of September 30, 2020 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 2,996 2,996 — — 2,996 Other short-term investments 31,285 31,285 — — 31,285 Other securities 531 — 531 — 531 Held-to-maturity securities 15 — — 15 15 Loans and leases held for sale 851 — — 851 851 Portfolio loans and leases: Commercial and industrial loans 50,673 — — 50,465 50,465 Commercial mortgage loans 10,505 — — 10,366 10,366 Commercial construction loans 5,551 — — 5,711 5,711 Commercial leases 2,988 — — 2,868 2,868 Residential mortgage loans 15,687 — — 17,240 17,240 Home equity 5,244 — — 5,645 5,645 Indirect secured consumer loans 12,797 — — 12,704 12,704 Credit card 1,802 — — 1,952 1,952 Other consumer loans 2,736 — — 2,941 2,941 Total portfolio loans and leases, net $ 107,983 — — 109,892 109,892 Financial liabilities: Deposits $ 156,683 — 156,697 — 156,697 Federal funds purchased 251 251 — — 251 Other short-term borrowings 1,196 — 1,196 — 1,196 Long-term debt 15,123 15,651 950 — 16,601 Net Carrying Fair Value Measurements Using Total As of December 31, 2019 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 3,278 3,278 — — 3,278 Other short-term investments 1,950 1,950 — — 1,950 Other securities 556 — 556 — 556 Held-to-maturity securities 17 — — 17 17 Loans and leases held for sale 136 — — 136 136 Portfolio loans and leases: Commercial and industrial loans 49,981 — — 51,128 51,128 Commercial mortgage loans 10,876 — — 10,823 10,823 Commercial construction loans 5,045 — — 5,249 5,249 Commercial leases 3,346 — — 3,133 3,133 Residential mortgage loans 16,468 — — 17,509 17,509 Home equity 6,046 — — 6,315 6,315 Indirect secured consumer loans 11,485 — — 11,331 11,331 Credit card 2,364 — — 2,774 2,774 Other consumer loans 2,683 — — 2,866 2,866 Unallocated ALLL (121) — — — — Total portfolio loans and leases, net $ 108,173 — — 111,128 111,128 Financial liabilities: Deposits $ 127,062 — 127,059 — 127,059 Federal funds purchased 260 260 — — 260 Other short-term borrowings 1,011 — 1,011 — 1,011 Long-term debt 14,970 15,244 700 — 15,944 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Results of Operations and Assets by Segment | The following tables present the results of operations and assets by business segment for the three months ended: September 30, 2020 ($ in millions) Commercial Branch Consumer Wealth General Eliminations Total Net interest income $ 432 355 98 28 257 — 1,170 (Benefit from) provision for credit losses 337 68 2 — (422) — (15) Net interest income after (benefit from) provision for credit losses 95 287 96 28 679 — 1,185 Noninterest income: Service charges on deposits 91 53 — — — — 144 Wealth and asset management revenue 1 44 — 126 — (39) (a) 132 Commercial banking revenue 125 1 — — (1) — 125 Mortgage banking net revenue — 2 72 2 — — 76 Card and processing revenue 13 76 — — 3 — 92 Leasing business revenue 77 — — — — — 77 Other noninterest income (b) 11 16 2 4 (7) — 26 Securities gains, net — — — — 51 — 51 Securities losses, net – non-qualifying hedges on MSRs — — (1) — — — (1) Total noninterest income 318 192 73 132 46 (39) 722 Noninterest expense: Compensation and benefits 127 162 57 54 237 — 637 Technology and communications 3 1 2 — 83 — 89 Net occupancy expense (d) 8 44 2 3 33 — 90 Leasing business expense 35 — — — — — 35 Equipment expense 6 10 — — 17 — 33 Card and processing expense 2 28 — — (1) — 29 Marketing expense 2 6 1 — 14 — 23 Other noninterest expense 228 209 75 76 (324) (39) 225 Total noninterest expense 411 460 137 133 59 (39) 1,161 Income before income taxes 2 19 32 27 666 — 746 Applicable income tax expense (benefit) (10) 4 7 6 158 — 165 Net income 12 15 25 21 508 — 581 Total goodwill $ 1,961 2,047 — 253 — — 4,261 Total assets $ 72,025 77,018 27,869 11,520 13,564 (c) — 201,996 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $11 for branches and land. For more information, refer to Note 8 and Note 24. (c) Includes bank premises and equipment of $45 classified as held for sale. For more information, refer to Note 8. (d) Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 10. September 30, 2019 ($ in millions) Commercial Branch Consumer Wealth General Eliminations Total Net interest income $ 623 598 88 44 (111) — 1,242 Provision for credit losses 54 58 14 — 8 — 134 Net interest income after provision for credit losses 569 540 74 44 (119) — 1,108 Noninterest income: Service charges on deposits 79 65 — — (1) — 143 Wealth and asset management revenue 1 41 — 119 — (37) (a) 124 Commercial banking revenue 122 1 — — — — 123 Mortgage banking net revenue — 2 92 1 — — 95 Card and processing revenue 16 74 — 1 3 — 94 Leasing business revenue 92 — — — — — 92 Other noninterest income (b) 25 21 4 4 10 — 64 Securities gains, net — — — — 5 — 5 Securities gains, net – non-qualifying hedges on MSRs — — — — — — — Total noninterest income 335 204 96 125 17 (37) 740 Noninterest expense: Compensation and benefits 118 148 48 51 219 — 584 Technology and communications 3 1 2 — 94 — 100 Net occupancy expense 7 44 3 3 27 — 84 Leasing business expense 40 — — — — — 40 Equipment expense 7 12 — — 14 — 33 Card and processing expense 2 32 — — (1) — 33 Marketing expense 3 17 1 1 18 — 40 Other noninterest expense 245 215 60 74 (312) (37) 245 Total noninterest expense 425 469 114 129 59 (37) 1,159 Income (loss) before income taxes 479 275 56 40 (161) — 689 Applicable income tax expense (benefit) 86 58 12 8 (24) — 140 Net income (loss) 393 217 44 32 (137) — 549 Total goodwill $ 1,982 2,054 — 254 — — 4,290 Total assets $ 75,143 69,021 26,171 9,961 (9,217) (c) — 171,079 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $5 for branches and land. For more information, refer to Note 8 and Note 24. (c) Includes bank premises and equipment of $87 classified as held for sale. For more information, refer to Note 8. The following tables present the results of operations and assets by business segment for the nine months ended: September 30, 2020 ($ in millions) Commercial Branch Consumer Wealth General Eliminations Total Net interest income $ 1,512 1,372 279 116 321 — 3,600 Provision for credit losses 839 182 25 — 64 — 1,110 Net interest income after provision for credit losses 673 1,190 254 116 257 — 2,490 Noninterest income: Service charges on deposits 253 160 — 1 — — 414 Wealth and asset management revenue 2 128 — 371 — (114) (a) 387 Commercial banking revenue 386 3 — 1 (3) — 387 Mortgage banking net revenue — 6 286 3 — — 295 Card and processing revenue 40 209 — 1 10 — 260 Leasing business revenue 207 (c) — — — — — 207 Other noninterest income (b) 9 49 8 13 (37) — 42 Securities gains, net — — — — 48 — 48 Securities gains, net – non-qualifying hedges on MSRs — — 3 — — — 3 Total noninterest income 897 555 297 390 18 (114) 2,043 Noninterest expense: Compensation and benefits 405 491 162 165 688 — 1,911 Technology and communications 10 2 6 1 253 — 272 Net occupancy expense (e) 23 131 7 9 84 — 254 Leasing business expense 103 — — — — — 103 Equipment expense 20 31 — — 46 — 97 Card and processing expense 6 86 — — (3) — 89 Marketing expense 5 23 3 2 41 — 74 Other noninterest expense 722 635 204 223 (988) (114) 682 Total noninterest expense 1,294 1,399 382 400 121 (114) 3,482 Income before income taxes 276 346 169 106 154 — 1,051 Applicable income tax expense 27 73 35 22 71 — 228 Net income 249 273 134 84 83 — 823 Total goodwill $ 1,961 2,047 — 253 — — 4,261 Total assets $ 72,025 77,018 27,869 11,520 13,564 (d) — 201,996 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $25 for branches and land. For more information, refer to Note 8 and Note 24. (c) Includes impairment charges of $3 for operating lease equipment. For more information, refer to Note 9 and Note 24. (d) Includes bank premises and equipment of $45 classified as held for sale. For more information, refer to Note 8. (e) Includes impairment losses and termination charges of $6 for ROU assets related to certain operating leases. For more information, refer to Note 10. September 30, 2019 ($ in millions) Commercial Branch Consumer Wealth General Eliminations Total Net interest income $ 1,761 1,802 234 141 (369) — 3,569 Provision for credit losses 100 164 34 — 12 — 310 Net interest income after provision for credit losses 1,661 1,638 200 141 (381) — 3,259 Noninterest income: Service charges on deposits 227 191 — 1 (2) — 417 Wealth and asset management revenue 2 117 — 345 — (106) (a) 358 Commercial banking revenue 329 3 — 1 — — 333 Mortgage banking net revenue — 4 209 1 — — 214 Card and processing revenue 49 212 — 2 3 — 266 Leasing business revenue 199 — — — — — 199 Other noninterest income (b) 55 63 10 9 542 — 679 Securities gains, net — — — — 30 — 30 Securities gains, net – non-qualifying hedges on MSRs — — 5 — — — 5 Total noninterest income 861 590 224 359 573 (106) 2,501 Noninterest expense: Compensation and benefits 346 444 146 165 742 — 1,843 Technology and communications 8 3 6 1 301 — 319 Net occupancy expense 21 130 8 10 79 — 248 Leasing business expense 97 — — — — — 97 Equipment expense 18 35 — 1 42 — 96 Card and processing expense 6 92 — 1 (1) — 98 Marketing expense 6 49 3 3 56 — 117 Other noninterest expense 696 622 172 216 (919) (106) 681 Total noninterest expense 1,198 1,375 335 397 300 (106) 3,499 Income (loss) before income taxes 1,324 853 89 103 (108) — 2,261 Applicable income tax expense 242 179 19 22 21 — 483 Net income (loss) 1,082 674 70 81 (129) — 1,778 Total goodwill $ 1,982 2,054 — 254 — — 4,290 Total assets $ 75,143 69,021 26,171 9,961 (9,217) (c) — 171,079 (a) Revenue sharing agreements between wealth and asset management and branch banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $27 for branches and land. For more information, refer to Note 8 and Note 24. (c) Includes bank premises and equipment of $87 classified as held for sale. For more information, refer to Note 8. |
Supplemental Cash Flow (Details
Supplemental Cash Flow (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Cash Payments: | |||
Interest | $ 746 | $ 1,166 | |
Income taxes | 419 | 524 | |
Transfers: | |||
Portfolio loans and leases to loans and leases held for sale | 713 | 191 | |
Loans and leases held for sale to portfolio loans and leases | 39 | 30 | |
Portfolio loans and leases to OREO | 11 | 23 | |
Loans and leases held for sale to OREO | 2 | 0 | |
Supplemental Disclosures: | |||
Additions to lease liabilities under operating leases | 41 | 43 | |
Additions to lease liabilities under finance leases | 93 | 13 | |
Right-of-use assets recognized at adoption of ASU 2016-02 | $ 0 | $ 509 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201602Member |
Conversion of outstanding preferred stock issued by a Bancorp subsidiary | $ 0 | $ 197 | |
Accounts, Notes, Loans and Financing Receivable | |||
Portfolio loans and leases to loans and leases held for sale | 713 | $ 191 | |
Residential mortgage loans | GNMA loans | |||
Transfers: | |||
Portfolio loans and leases to loans and leases held for sale | 668 | ||
Accounts, Notes, Loans and Financing Receivable | |||
Portfolio loans and leases to loans and leases held for sale | $ 668 |
Business Combination - Addition
Business Combination - Additional Information (Details) $ / shares in Units, $ in Millions | Jan. 01, 2020USD ($) | Mar. 22, 2019USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)$ / shares | Aug. 26, 2019$ / sharesshares | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($)branchlocation | ||||
Business Acquisition [Line Items] | |||||||||||||||
Total assets | $ 201,996 | $ 201,996 | $ 169,369 | ||||||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 25,000 | $ 25,000 | $ 25,000 | ||||||||||||
Goodwill | $ 4,261 | $ 4,290 | $ 4,261 | $ 4,290 | $ 4,252 | $ 2,478 | |||||||||
Total noninterest expense | [1] | 1,161 | 1,159 | $ 3,482 | $ 3,499 | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201602Member | ||||||||||||
Allowance for loan and lease losses | $ 33 | $ 2,574 | [2] | 1,143 | $ 2,574 | [2] | $ 1,143 | $ 2,696 | $ 1,202 | [2] | $ 1,115 | $ 1,103 | |||
Unpaid principal balance as noncredit discount | $ 87 | ||||||||||||||
Class C Preferred stock | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Fixed dividend rate (as a percent) | 6.00% | ||||||||||||||
Class B Preferred stock, Series A | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Fixed dividend rate (as a percent) | 6.00% | ||||||||||||||
Preferred stock, issued (in shares) | shares | 200,000 | ||||||||||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 1,000 | ||||||||||||||
MB Financial, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Total consideration paid | $ 3,608 | ||||||||||||||
Total assets | $ 20,000 | ||||||||||||||
Full-service banking centers | branch | 86 | ||||||||||||||
Number of locations | location | 91 | ||||||||||||||
Percentage of common stock acquired | 100.00% | ||||||||||||||
Share consideration transferred | shares | 1.45 | ||||||||||||||
Cash consideration transferred per share (in dollars per share) | $ / shares | $ 5.54 | ||||||||||||||
Total value per share (in dollars per share) | $ / shares | 42.49 | ||||||||||||||
Closing price of common stock (in dollars per share) | $ / shares | $ 25.48 | ||||||||||||||
Fair value of noncontrolling interest in acquiree | $ 197 | ||||||||||||||
Percentage of voting equity interest | 95.00% | ||||||||||||||
Goodwill | $ 1,786 | ||||||||||||||
Tax deductible goodwill | $ 15 | ||||||||||||||
Tax deductible goodwill, period | 15 years | ||||||||||||||
Total noninterest expense | $ 28 | $ 16 | $ 213 | ||||||||||||
Contractual balances on the purchased non credit impaired loans and leases | $ 12,700 | ||||||||||||||
Fair value of the purchased non credit impaired loans and leases | $ 12,500 | ||||||||||||||
[1] | During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications. | ||||||||||||||
[2] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Business Combination - Acquired
Business Combination - Acquired Identifiable Assets and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 22, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Liabilities | |||||
Goodwill | $ 4,261 | $ 4,252 | $ 4,290 | $ 2,478 | |
MB Financial, Inc. | |||||
Consideration paid | |||||
Cash payments | $ 469 | ||||
Fair value of common stock issued | 3,121 | ||||
Stock-based awards | 38 | ||||
Dividend receivable from MB Financial, Inc. | (20) | ||||
Total consideration paid | 3,608 | ||||
Fair value of noncontrolling interest in acquiree | 197 | ||||
Assets | |||||
Cash and due from banks | 1,679 | ||||
Federal funds sold | 35 | ||||
Other short-term investments | 53 | ||||
Available-for-sale debt and other securities | 832 | ||||
Held-to-maturity securities | 4 | ||||
Equity securities | 51 | ||||
Loans and leases held for sale | 12 | ||||
Portfolio loans and leases | 13,414 | ||||
Bank premises and equipment | 266 | ||||
Operating lease equipment | 394 | ||||
Intangible assets | 219 | ||||
Servicing rights | 263 | ||||
Other assets | 750 | ||||
Total assets acquired | 17,972 | ||||
Liabilities | |||||
Deposits | 14,489 | ||||
Other short-term borrowings | 267 | ||||
Accrued taxes, interest and expenses | 276 | ||||
Other liabilities | 194 | ||||
Long-term debt | 727 | ||||
Total liabilities assumed | 15,953 | ||||
Net identifiable assets acquired | 2,019 | ||||
Goodwill | $ 1,786 |
Business Combination - Merger-R
Business Combination - Merger-Related Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Business Acquisition [Line Items] | |||||
Compensation and benefits | [1] | $ 637 | $ 584 | $ 1,911 | $ 1,843 |
Technology and communications | [1] | 89 | 100 | 272 | 319 |
Net occupancy expense | [1] | 90 | 84 | 254 | 248 |
Equipment expense | [1] | 33 | 33 | 97 | 96 |
Card and processing expense | [1] | 29 | 33 | 89 | 98 |
Marketing expense | [1] | 23 | 40 | 74 | 117 |
Other noninterest expense | [1] | 225 | 245 | 682 | 681 |
Total noninterest expense | [1] | 1,161 | 1,159 | 3,482 | 3,499 |
MB Financial, Inc. | |||||
Business Acquisition [Line Items] | |||||
Compensation and benefits | 0 | 14 | 4 | 88 | |
Technology and communications | 0 | 8 | 6 | 68 | |
Net occupancy expense | 0 | 3 | 4 | 10 | |
Equipment expense | 0 | 0 | 0 | 1 | |
Card and processing expense | 0 | 0 | 0 | 1 | |
Marketing expense | 0 | 0 | 0 | 7 | |
Other noninterest expense | $ 0 | 3 | 2 | 38 | |
Total noninterest expense | $ 28 | $ 16 | $ 213 | ||
[1] | During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications. |
Business Combination - Unaudite
Business Combination - Unaudited Pro Forma (Details) - MB Financial, Inc. - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||
Unaudited pro forma net income available to common shareholders | $ 520 | $ 1,840 |
Net Interest Income | ||
Business Acquisition [Line Items] | ||
Unaudited pro forma revenue | 1,223 | 3,696 |
Non Interest Income | ||
Business Acquisition [Line Items] | ||
Unaudited pro forma revenue | $ 739 | $ 2,601 |
Business Combination - Loans Id
Business Combination - Loans Identified as PCI Loans at Acquisition (Details) $ in Millions | Mar. 22, 2019USD ($) |
Business Combinations [Abstract] | |
Contractually required payments including interest | $ 1,139 |
Less: Nonaccretable difference | 81 |
Cash flows expected to be collected | 1,058 |
Less: Accretable yield | 202 |
Fair value of loans acquired | $ 856 |
Business Combinations - Accreta
Business Combinations - Accretable Yield (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance as of December 31, 2018 | $ 0 |
Additions | 202 |
Accretion | (30) |
Reclassifications from (to) nonaccretable difference | (2) |
Balance as of September 30, 2019 | $ 170 |
Accounting and Reporting Deve_2
Accounting and Reporting Developments (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201602Member | ||||||
ALLL and reserve for unfunded commitments | $ 33 | $ 2,574 | [1] | $ 1,143 | $ 2,696 | $ 1,202 | [1] | $ 1,115 | $ 1,103 |
Impact of cumulative effect of change in accounting principles | 18,010 | $ 18,315 | |||||||
Carrying value of loans and leases evaluated for ALLL | $ 1 | ||||||||
Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
ALLL and reserve for unfunded commitments | 653 | ||||||||
Impact of cumulative effect of change in accounting principles | 472 | ||||||||
Amount of ALLL on purchased financial assets | $ 33 | ||||||||
[1] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Available-for-sale debt and other securities: | |||
Amortized Cost | $ 34,693 | $ 34,966 | |
Unrealized Gains | 2,770 | 1,105 | |
Unrealized Losses | (38) | (43) | |
Fair Value | [1] | 37,425 | 36,028 |
Held-to-maturity securities: | |||
Amortized Cost | [2] | 15 | 17 |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 15 | 17 | |
Trading debt securities | 704 | 297 | |
Equity securities | 277 | 564 | |
FHLB, restricted stock holdings | 47 | 76 | |
FRB, restricted stock holdings | 482 | 478 | |
DTCC, restricted stock holdings | 2 | 2 | |
U.S. Treasury and federal agency securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 75 | 74 | |
Unrealized Gains | 3 | 1 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 78 | 75 | |
Obligations of states and political subdivisions securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 17 | 18 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 17 | 18 | |
Held-to-maturity securities: | |||
Amortized Cost | 13 | 15 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 13 | 15 | |
Asset-backed securities and other debt securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 2,869 | 2,189 | |
Unrealized Gains | 37 | 29 | |
Unrealized Losses | (35) | (12) | |
Fair Value | 2,871 | 2,206 | |
Held-to-maturity securities: | |||
Amortized Cost | 2 | 2 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 2 | 2 | |
Other securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 531 | 556 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 531 | 556 | |
Residential mortgage backed securities | Agency mortgage-backed securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 11,711 | 13,746 | |
Unrealized Gains | 894 | 388 | |
Unrealized Losses | (2) | (19) | |
Fair Value | 12,603 | 14,115 | |
Commercial mortgage-backed securities | Agency mortgage-backed securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 16,173 | 15,141 | |
Unrealized Gains | 1,578 | 564 | |
Unrealized Losses | (1) | (12) | |
Fair Value | 17,750 | 15,693 | |
Commercial mortgage-backed securities | Non-agency mortgage-backed securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 3,317 | 3,242 | |
Unrealized Gains | 258 | 123 | |
Unrealized Losses | 0 | 0 | |
Fair Value | $ 3,575 | $ 3,365 | |
[1] | Amortized cost of $34,693 and $34,966 at September 30, 2020 and December 31, 2019, respectively. | ||
[2] | Fair value of $15 and $17 at September 30, 2020 and December 31, 2019, respectively. |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued interest receivables on investment securities | $ 90 | |
Securities with a fair value, pledged as collateral | 10,600 | $ 8,100 |
Investment Holdings [Line Items] | ||
Unrealized losses | 38 | $ 43 |
Non-rated Securities | ||
Investment Holdings [Line Items] | ||
Unrealized losses | $ 2 |
Investment Securities - Gains a
Investment Securities - Gains and Losses Recognized in Income from Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Available-for-sale debt and other securities: | ||||
Realized gains | $ 46 | $ 3 | $ 47 | $ 51 |
Realized losses | (1) | 0 | (2) | (47) |
OTTI | 0 | 0 | 0 | (1) |
Net realized gains on available-for sale debt and other securities | 45 | 3 | 45 | 3 |
Total trading debt securities gains (losses) | (1) | 0 | 3 | 5 |
Total equity securities gains | 6 | 2 | 3 | 27 |
Total gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities | 50 | 5 | 51 | 35 |
Equity securities, unrealized gains (losses) | (1) | (3) | 23 | |
Commercial Banking Revenue and Wealth and Asset Management Revenue | ||||
Investment Holdings [Line Items] | ||||
Securities gains (losses) | $ 1 | $ 2 | $ 7 | $ 6 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Available-for-Sale Debt and Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Available-for-Sale Debt and Other, Amortized Cost | |||
Less than 1 year | $ 516 | ||
1-5 years | 13,612 | ||
5-10 years | 14,103 | ||
Over 10 years | 5,931 | ||
Other securities | 531 | ||
Amortized Cost | 34,693 | $ 34,966 | |
Available-for-Sale Debt and Other, Fair Value | |||
Less than 1 year | 538 | ||
1-5 years | 14,538 | ||
5-10 years | 15,463 | ||
Over 10 years | 6,355 | ||
Other securities | 531 | ||
Fair Value | [1] | 37,425 | 36,028 |
Held-to-Maturity, Amortized Cost | |||
Less than 1 year | 6 | ||
1-5 years | 7 | ||
5-10 years | 0 | ||
Over 10 years | 2 | ||
Other securities | 0 | ||
Amortized Cost | [2] | 15 | 17 |
Held-to-Maturity, Fair Value | |||
Less than 1 year | 6 | ||
1-5 years | 7 | ||
5-10 years | 0 | ||
Over 10 years | 2 | ||
Other securities | 0 | ||
Fair Value | $ 15 | $ 17 | |
[1] | Amortized cost of $34,693 and $34,966 at September 30, 2020 and December 31, 2019, respectively. | ||
[2] | Fair value of $15 and $17 at September 30, 2020 and December 31, 2019, respectively. |
Investment Securities - Fair Va
Investment Securities - Fair Value and Gross Unrealized Losses on Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Less than 12 months | $ 1,035 | $ 4,128 |
12 months or more | 534 | 383 |
Total | 1,569 | 4,511 |
Unrealized Losses | ||
Less than 12 months | (19) | (34) |
12 months or more | (19) | (9) |
Total | (38) | (43) |
Agency mortgage-backed securities | Residential mortgage backed securities | ||
Fair Value | ||
Less than 12 months | 72 | 2,159 |
12 months or more | 1 | 4 |
Total | 73 | 2,163 |
Unrealized Losses | ||
Less than 12 months | (2) | (19) |
12 months or more | 0 | 0 |
Total | (2) | (19) |
Agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 75 | 1,602 |
12 months or more | 0 | 0 |
Total | 75 | 1,602 |
Unrealized Losses | ||
Less than 12 months | (1) | (12) |
12 months or more | 0 | 0 |
Total | (1) | (12) |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 24 | |
12 months or more | 0 | |
Total | 24 | |
Unrealized Losses | ||
Less than 12 months | 0 | |
12 months or more | 0 | |
Total | 0 | |
Asset-backed securities and other debt securities | ||
Fair Value | ||
Less than 12 months | 864 | 367 |
12 months or more | 533 | 379 |
Total | 1,397 | 746 |
Unrealized Losses | ||
Less than 12 months | (16) | (3) |
12 months or more | (19) | (9) |
Total | $ (35) | $ (12) |
Loans and Leases - Loans and Le
Loans and Leases - Loans and Leases Classified by Primary Purpose (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Loans and leases held for sale: | |||
Loans and leases held for sale | [1] | $ 2,323 | $ 1,400 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 51,695 | 50,542 | |
Commercial mortgage loans | 10,878 | 10,963 | |
Commercial construction loans | 5,656 | 5,090 | |
Commercial leases | 3,021 | 3,363 | |
Residential mortgage loans | 16,158 | 16,724 | |
Home equity | 5,455 | 6,083 | |
Indirect secured consumer loans | 12,925 | 11,538 | |
Credit card | 2,087 | 2,532 | |
Other consumer loans | 2,856 | 2,723 | |
Total portfolio loans and leases | [2],[3] | 110,731 | 109,558 |
Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 2,264 | 1,264 | |
Commercial | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 71,250 | 69,958 | |
Commercial | Commercial and industrial loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 57 | 135 | |
Portfolio loans and leases: | |||
Total portfolio loans and leases | 51,695 | ||
Loans and leases related to SBA Paycheck Protection Program of CARES Act | 5,200 | ||
Commercial | Commercial mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 2 | 1 | |
Consumer | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 39,481 | $ 39,600 | |
Consumer | Residential mortgage loans | GNMA loans | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | $ 51 | ||
[1] | Includes $1,472 and $1,264 of residential mortgage loans held for sale measured at fair value at September 30, 2020 and December 31, 2019, respectively. | ||
[2] | Includes $174 and $183 of residential mortgage loans measured at fair value at September 30, 2020 and December 31, 2019, respectively. | ||
[3] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Loans and Leases - Additional I
Loans and Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||||
Accounts, Notes, Loans and Financing Receivable | ||||||||||||
Unearned income | $ 301 | $ 301 | $ 354 | |||||||||
Net premium | 228 | 228 | 249 | |||||||||
Accrued interest receivable | 361 | 361 | ||||||||||
Loans pledged at the FHLB | 15,800 | 15,800 | 16,700 | |||||||||
Loans pledged at the FRB | 35,100 | 35,100 | 47,300 | |||||||||
Direct financing lease - interest income | 16 | $ 22 | 50 | $ 70 | ||||||||
Sales type lease - interest income | 7 | 4 | 20 | 7 | ||||||||
Allowance for loan and lease losses | 2,574 | [1] | $ 1,143 | 2,574 | [1] | $ 1,143 | $ 2,696 | $ 33 | 1,202 | [1] | $ 1,115 | $ 1,103 |
Commercial Leases | ||||||||||||
Accounts, Notes, Loans and Financing Receivable | ||||||||||||
Allowance for loan and lease losses | $ 33 | $ 33 | $ 17 | |||||||||
[1] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Loans and Leases - Total Loans
Loans and Leases - Total Loans and Leases Managed by the Bancorp (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | $ 113,054 | $ 110,958 | |
90 Days Past Due and Still Accruing | 139 | 130 | |
Loans and leases held for sale | [1] | 2,323 | 1,400 |
Total portfolio loans and leases | [2],[3] | 110,731 | 109,558 |
Residential mortgage loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 18,422 | 17,988 | |
90 Days Past Due and Still Accruing | 67 | 50 | |
Commercial | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Total portfolio loans and leases | 71,250 | 69,958 | |
Commercial | Commercial and industrial loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 51,752 | 50,677 | |
90 Days Past Due and Still Accruing | 4 | 11 | |
Commercial | Commercial mortgage loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 10,880 | 10,964 | |
90 Days Past Due and Still Accruing | 26 | 15 | |
Commercial | Commercial construction loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 5,656 | 5,090 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Commercial | Commercial leases | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 3,021 | 3,363 | |
90 Days Past Due and Still Accruing | 2 | 0 | |
Consumer | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Total portfolio loans and leases | 39,481 | 39,600 | |
Consumer | Home equity | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 5,455 | 6,083 | |
90 Days Past Due and Still Accruing | 2 | 1 | |
Consumer | Indirect secured consumer loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 12,925 | 11,538 | |
90 Days Past Due and Still Accruing | 10 | 10 | |
Consumer | Credit card | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 2,087 | 2,532 | |
90 Days Past Due and Still Accruing | 27 | 42 | |
Consumer | Other consumer loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 2,856 | 2,723 | |
90 Days Past Due and Still Accruing | $ 1 | $ 1 | |
[1] | Includes $1,472 and $1,264 of residential mortgage loans held for sale measured at fair value at September 30, 2020 and December 31, 2019, respectively. | ||
[2] | Includes $174 and $183 of residential mortgage loans measured at fair value at September 30, 2020 and December 31, 2019, respectively. | ||
[3] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Loans and Leases - Net Charge-O
Loans and Leases - Net Charge-Offs (Recoveries (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | $ 101 | $ 99 | $ 353 | $ 256 |
Residential mortgage loans | ||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | (1) | 1 | 1 | 1 |
Commercial | Commercial and industrial loans | ||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | 42 | 29 | 157 | 67 |
Commercial | Commercial mortgage loans | ||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | 11 | 0 | 14 | (1) |
Commercial | Commercial leases | ||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | 8 | 4 | 24 | 7 |
Consumer | Home equity | ||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | 1 | 2 | 5 | 8 |
Consumer | Indirect secured consumer loans | ||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | 3 | 13 | 23 | 34 |
Consumer | Credit card | ||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | 29 | 33 | 100 | 101 |
Consumer | Other consumer loans | ||||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net Charge-Offs | $ 8 | $ 17 | $ 29 | $ 39 |
Loans and Leases - Components o
Loans and Leases - Components of Net Investment in Leases (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Net investment in sales-type leases: | ||
Leveraged leases | $ 366 | $ 429 |
Direct Financing Leases | ||
Net investment in direct financing leases: | ||
Lease payment receivable (present value) | 1,610 | 2,196 |
Unguaranteed residual assets (present value) | 198 | 220 |
Net discount on acquired leases | 0 | (7) |
Sales-Type Leases | ||
Net investment in sales-type leases: | ||
Lease payment receivable (present value) | 818 | 510 |
Unguaranteed residual assets (present value) | $ 29 | $ 15 |
Loans and Leases - Undiscounted
Loans and Leases - Undiscounted Cash Flows (Details) $ in Millions | Sep. 30, 2020USD ($) |
Direct Financing Leases | |
Accounts, Notes, Loans and Financing Receivable | |
Remainder of 2020 | $ 137 |
2021 | 503 |
2022 | 397 |
2023 | 232 |
2024 | 172 |
2025 | 115 |
Thereafter | 165 |
Total undiscounted cash flows | 1,721 |
Less: Difference between undiscounted cash flows and discounted cash flows | 111 |
Present value of lease payments (recognized as lease receivables) | 1,610 |
Sales-Type Leases | |
Accounts, Notes, Loans and Financing Receivable | |
Remainder of 2020 | 57 |
2021 | 226 |
2022 | 197 |
2023 | 144 |
2024 | 108 |
2025 | 56 |
Thereafter | 113 |
Total undiscounted cash flows | 901 |
Less: Difference between undiscounted cash flows and discounted cash flows | 83 |
Present value of lease payments (recognized as lease receivables) | $ 818 |
Credit Quality and the Allowa_3
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Transactions in the ALLL by Portfolio Segment (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance, beginning of period | $ 1,202 | [1] | $ 2,696 | $ 1,115 | $ 1,202 | [1] | $ 1,103 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201602Member | |||||
Losses charged-off | (135) | (130) | $ (457) | $ (358) | ||||
Recoveries of losses previously charged-off | 34 | 31 | 104 | 102 | ||||
(Benefit from) provision for loan and lease losses | (21) | 127 | 1,082 | 296 | ||||
Balance, end of period | $ 33 | 2,574 | [1] | 1,143 | 2,574 | [1] | 1,143 | |
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Impact of adoption of ASU 2016-13 | 643 | |||||||
Other Consumer Loans, Point of Sale | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Losses charged-off | (9) | (12) | (31) | (35) | ||||
Recoveries of losses previously charged-off | 9 | 12 | 31 | 35 | ||||
Commercial | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance, beginning of period | 710 | 1,502 | 651 | 710 | 645 | |||
Impact of adoption of ASU 2016-13 | 31 | |||||||
Losses charged-off | (66) | (34) | (209) | (87) | ||||
Recoveries of losses previously charged-off | 5 | 1 | 14 | 14 | ||||
(Benefit from) provision for loan and lease losses | 92 | 53 | 858 | 99 | ||||
Balance, end of period | 1,533 | 671 | 1,533 | 671 | ||||
Commercial | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Impact of adoption of ASU 2016-13 | 160 | |||||||
Residential Mortgage | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance, beginning of period | 73 | 327 | 76 | 73 | 81 | |||
Impact of adoption of ASU 2016-13 | 2 | |||||||
Losses charged-off | (1) | (2) | (6) | (5) | ||||
Recoveries of losses previously charged-off | 2 | 1 | 5 | 4 | ||||
(Benefit from) provision for loan and lease losses | (31) | 0 | 29 | (5) | ||||
Balance, end of period | 297 | 75 | 297 | 75 | ||||
Residential Mortgage | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Impact of adoption of ASU 2016-13 | 196 | |||||||
Consumer | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance, beginning of period | 298 | 867 | 276 | 298 | 267 | |||
Impact of adoption of ASU 2016-13 | 1 | |||||||
Losses charged-off | (68) | (94) | (242) | (266) | ||||
Recoveries of losses previously charged-off | 27 | 29 | 85 | 84 | ||||
(Benefit from) provision for loan and lease losses | (82) | 72 | 195 | 198 | ||||
Balance, end of period | 744 | 283 | 744 | 283 | ||||
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Impact of adoption of ASU 2016-13 | 408 | |||||||
Unallocated | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance, beginning of period | $ 121 | 0 | 112 | 121 | 110 | |||
Losses charged-off | 0 | 0 | 0 | 0 | ||||
Recoveries of losses previously charged-off | 0 | 0 | 0 | 0 | ||||
(Benefit from) provision for loan and lease losses | 0 | 2 | 0 | 4 | ||||
Balance, end of period | $ 0 | $ 114 | 0 | $ 114 | ||||
Unallocated | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Impact of adoption of ASU 2016-13 | $ (121) | |||||||
[1] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Credit Quality and the Allowa_4
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Individually evaluated | $ 302 | $ 170 | ||||||||
Collectively evaluated | 2,272 | 911 | ||||||||
Unallocated | 121 | |||||||||
Total ALLL | 2,574 | [1] | $ 2,696 | $ 33 | 1,202 | [1] | $ 1,143 | $ 1,115 | $ 1,103 | |
Individually evaluated | 2,041 | 1,529 | ||||||||
Collectively evaluated | 108,023 | 107,295 | ||||||||
Purchased credit deteriorated | 493 | 551 | ||||||||
Total portfolio loans and leases | 110,557 | 109,375 | ||||||||
Leveraged leases | 366 | 429 | ||||||||
Loans | [1],[2] | 110,731 | 109,558 | |||||||
Residential mortgage loans | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Residential mortgage loans | 174 | 183 | ||||||||
Commercial Leveraged Leases | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Total ALLL | 3 | 1 | ||||||||
Leveraged leases | 366 | 429 | ||||||||
Commercial | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Individually evaluated | 178 | 82 | ||||||||
Collectively evaluated | 1,355 | 628 | ||||||||
Unallocated | 0 | |||||||||
Total ALLL | 1,533 | 1,502 | 710 | 671 | 651 | 645 | ||||
Individually evaluated | 1,111 | 413 | ||||||||
Collectively evaluated | 69,743 | 69,047 | ||||||||
Purchased credit deteriorated | 396 | 498 | ||||||||
Total portfolio loans and leases | 71,250 | 69,958 | ||||||||
Loans | 71,250 | 69,958 | ||||||||
Residential Mortgage | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Individually evaluated | 78 | 55 | ||||||||
Collectively evaluated | 219 | 18 | ||||||||
Unallocated | 0 | |||||||||
Total ALLL | 297 | 327 | 73 | 75 | 76 | 81 | ||||
Individually evaluated | 650 | 814 | ||||||||
Collectively evaluated | 15,255 | 15,690 | ||||||||
Purchased credit deteriorated | 79 | 37 | ||||||||
Total portfolio loans and leases | 15,984 | 16,541 | ||||||||
Residential mortgage loans | 174 | 183 | ||||||||
Residential Mortgage | Residential mortgage loans | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Loans | 15,984 | |||||||||
Consumer | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Individually evaluated | 46 | 33 | ||||||||
Collectively evaluated | 698 | 265 | ||||||||
Unallocated | 0 | |||||||||
Total ALLL | 744 | 867 | 298 | 283 | 276 | 267 | ||||
Individually evaluated | 280 | 302 | ||||||||
Collectively evaluated | 23,025 | 22,558 | ||||||||
Purchased credit deteriorated | 18 | 16 | ||||||||
Total portfolio loans and leases | 23,323 | 22,876 | ||||||||
Loans | 39,481 | 39,600 | ||||||||
Consumer | Residential mortgage loans | GNMA loans | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Loans | 51 | |||||||||
Unallocated | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Individually evaluated | 0 | |||||||||
Collectively evaluated | 0 | |||||||||
Unallocated | 121 | |||||||||
Total ALLL | $ 0 | $ 0 | 121 | $ 114 | $ 112 | $ 110 | ||||
Individually evaluated | 0 | |||||||||
Collectively evaluated | 0 | |||||||||
Purchased credit deteriorated | 0 | |||||||||
Total portfolio loans and leases | $ 0 | |||||||||
[1] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. | |||||||||
[2] | Includes $174 and $183 of residential mortgage loans measured at fair value at September 30, 2020 and December 31, 2019, respectively. |
Credit Quality and the Allowa_5
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Modifications | |||
Total | [1],[2] | $ 110,731 | $ 109,558 |
Total loans and leases | 108,157 | 108,356 | |
Commercial | |||
Financing Receivable, Modifications | |||
2020 | 9,845 | ||
2019 | 4,577 | ||
2018 | 3,209 | ||
2017 | 2,058 | ||
2016 | 1,533 | ||
Prior | 2,988 | ||
Revolving Loans Amortized Cost Basis | 47,040 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 71,250 | 69,958 | |
Total loans and leases | 71,250 | 69,958 | |
Commercial | Pass | |||
Financing Receivable, Modifications | |||
2020 | 8,871 | ||
2019 | 4,337 | ||
2018 | 2,674 | ||
2017 | 1,854 | ||
2016 | 1,410 | ||
Prior | 2,691 | ||
Revolving Loans Amortized Cost Basis | 39,489 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 61,326 | ||
Total loans and leases | 66,143 | ||
Commercial | Special mention | |||
Financing Receivable, Modifications | |||
2020 | 450 | ||
2019 | 116 | ||
2018 | 146 | ||
2017 | 62 | ||
2016 | 56 | ||
Prior | 65 | ||
Revolving Loans Amortized Cost Basis | 4,623 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 5,518 | ||
Total loans and leases | 1,825 | ||
Commercial | Substandard | |||
Financing Receivable, Modifications | |||
2020 | 524 | ||
2019 | 124 | ||
2018 | 389 | ||
2017 | 142 | ||
2016 | 67 | ||
Prior | 232 | ||
Revolving Loans Amortized Cost Basis | 2,916 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 4,394 | ||
Total loans and leases | 1,944 | ||
Commercial | Doubtful | |||
Financing Receivable, Modifications | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 12 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 12 | ||
Total loans and leases | 46 | ||
Commercial | Commercial and industrial loans | |||
Financing Receivable, Modifications | |||
2020 | 7,018 | ||
2019 | 2,473 | ||
2018 | 1,643 | ||
2017 | 976 | ||
2016 | 615 | ||
Prior | 998 | ||
Revolving Loans Amortized Cost Basis | 37,972 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 51,695 | ||
Total loans and leases | 51,695 | 50,542 | |
Commercial | Commercial and industrial loans | Pass | |||
Financing Receivable, Modifications | |||
2020 | 6,755 | ||
2019 | 2,329 | ||
2018 | 1,288 | ||
2017 | 849 | ||
2016 | 561 | ||
Prior | 856 | ||
Revolving Loans Amortized Cost Basis | 31,689 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 44,327 | ||
Total loans and leases | 47,671 | ||
Commercial | Commercial and industrial loans | Special mention | |||
Financing Receivable, Modifications | |||
2020 | 96 | ||
2019 | 67 | ||
2018 | 86 | ||
2017 | 40 | ||
2016 | 10 | ||
Prior | 21 | ||
Revolving Loans Amortized Cost Basis | 3,661 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 3,981 | ||
Total loans and leases | 1,423 | ||
Commercial | Commercial and industrial loans | Substandard | |||
Financing Receivable, Modifications | |||
2020 | 167 | ||
2019 | 77 | ||
2018 | 269 | ||
2017 | 87 | ||
2016 | 44 | ||
Prior | 121 | ||
Revolving Loans Amortized Cost Basis | 2,610 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 3,375 | ||
Total loans and leases | 1,406 | ||
Commercial | Commercial and industrial loans | Doubtful | |||
Financing Receivable, Modifications | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 12 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 12 | ||
Total loans and leases | 42 | ||
Commercial | Commercial mortgage owner-occupied loans | |||
Financing Receivable, Modifications | |||
2020 | 1,181 | ||
2019 | 737 | ||
2018 | 534 | ||
2017 | 331 | ||
2016 | 284 | ||
Prior | 541 | ||
Revolving Loans Amortized Cost Basis | 1,196 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 4,804 | ||
Total loans and leases | 4,804 | 4,880 | |
Commercial | Commercial mortgage owner-occupied loans | Pass | |||
Financing Receivable, Modifications | |||
2020 | 905 | ||
2019 | 693 | ||
2018 | 466 | ||
2017 | 308 | ||
2016 | 258 | ||
Prior | 489 | ||
Revolving Loans Amortized Cost Basis | 1,033 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 4,152 | ||
Total loans and leases | 4,421 | ||
Commercial | Commercial mortgage owner-occupied loans | Special mention | |||
Financing Receivable, Modifications | |||
2020 | 57 | ||
2019 | 8 | ||
2018 | 28 | ||
2017 | 13 | ||
2016 | 12 | ||
Prior | 16 | ||
Revolving Loans Amortized Cost Basis | 83 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 217 | ||
Total loans and leases | 162 | ||
Commercial | Commercial mortgage owner-occupied loans | Substandard | |||
Financing Receivable, Modifications | |||
2020 | 219 | ||
2019 | 36 | ||
2018 | 40 | ||
2017 | 10 | ||
2016 | 14 | ||
Prior | 36 | ||
Revolving Loans Amortized Cost Basis | 80 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 435 | ||
Total loans and leases | 293 | ||
Commercial | Commercial mortgage owner-occupied loans | Doubtful | |||
Financing Receivable, Modifications | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 0 | ||
Total loans and leases | 4 | ||
Commercial | Commercial mortgage nonowner-occupied loans | |||
Financing Receivable, Modifications | |||
2020 | 1,121 | ||
2019 | 873 | ||
2018 | 641 | ||
2017 | 313 | ||
2016 | 278 | ||
Prior | 454 | ||
Revolving Loans Amortized Cost Basis | 2,394 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 6,074 | ||
Total loans and leases | 6,074 | 6,083 | |
Commercial | Commercial mortgage nonowner-occupied loans | Pass | |||
Financing Receivable, Modifications | |||
2020 | 738 | ||
2019 | 865 | ||
2018 | 564 | ||
2017 | 298 | ||
2016 | 248 | ||
Prior | 391 | ||
Revolving Loans Amortized Cost Basis | 1,818 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 4,922 | ||
Total loans and leases | 5,866 | ||
Commercial | Commercial mortgage nonowner-occupied loans | Special mention | |||
Financing Receivable, Modifications | |||
2020 | 254 | ||
2019 | 1 | ||
2018 | 16 | ||
2017 | 3 | ||
2016 | 28 | ||
Prior | 20 | ||
Revolving Loans Amortized Cost Basis | 402 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 724 | ||
Total loans and leases | 135 | ||
Commercial | Commercial mortgage nonowner-occupied loans | Substandard | |||
Financing Receivable, Modifications | |||
2020 | 129 | ||
2019 | 7 | ||
2018 | 61 | ||
2017 | 12 | ||
2016 | 2 | ||
Prior | 43 | ||
Revolving Loans Amortized Cost Basis | 174 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 428 | ||
Total loans and leases | 82 | ||
Commercial | Commercial mortgage nonowner-occupied loans | Doubtful | |||
Financing Receivable, Modifications | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 0 | ||
Total loans and leases | 0 | ||
Commercial | Commercial construction loans | |||
Financing Receivable, Modifications | |||
2020 | 71 | ||
2019 | 58 | ||
2018 | 28 | ||
2017 | 0 | ||
2016 | 9 | ||
Prior | 12 | ||
Revolving Loans Amortized Cost Basis | 5,478 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 5,656 | ||
Total loans and leases | 5,656 | 5,090 | |
Commercial | Commercial construction loans | Pass | |||
Financing Receivable, Modifications | |||
2020 | 26 | ||
2019 | 58 | ||
2018 | 28 | ||
2017 | 0 | ||
2016 | 9 | ||
Prior | 12 | ||
Revolving Loans Amortized Cost Basis | 4,949 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 5,082 | ||
Total loans and leases | 4,963 | ||
Commercial | Commercial construction loans | Special mention | |||
Financing Receivable, Modifications | |||
2020 | 40 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 477 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 517 | ||
Total loans and leases | 52 | ||
Commercial | Commercial construction loans | Substandard | |||
Financing Receivable, Modifications | |||
2020 | 5 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 52 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 57 | ||
Total loans and leases | 75 | ||
Commercial | Commercial construction loans | Doubtful | |||
Financing Receivable, Modifications | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 0 | ||
Total loans and leases | 0 | ||
Commercial | Commercial leases | |||
Financing Receivable, Modifications | |||
2020 | 454 | ||
2019 | 436 | ||
2018 | 363 | ||
2017 | 438 | ||
2016 | 347 | ||
Prior | 983 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 3,021 | ||
Total loans and leases | 3,021 | 3,363 | |
Commercial | Commercial leases | Pass | |||
Financing Receivable, Modifications | |||
2020 | 447 | ||
2019 | 392 | ||
2018 | 328 | ||
2017 | 399 | ||
2016 | 334 | ||
Prior | 943 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 2,843 | ||
Total loans and leases | 3,222 | ||
Commercial | Commercial leases | Special mention | |||
Financing Receivable, Modifications | |||
2020 | 3 | ||
2019 | 40 | ||
2018 | 16 | ||
2017 | 6 | ||
2016 | 6 | ||
Prior | 8 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 79 | ||
Total loans and leases | 53 | ||
Commercial | Commercial leases | Substandard | |||
Financing Receivable, Modifications | |||
2020 | 4 | ||
2019 | 4 | ||
2018 | 19 | ||
2017 | 33 | ||
2016 | 7 | ||
Prior | 32 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | 99 | ||
Total loans and leases | 88 | ||
Commercial | Commercial leases | Doubtful | |||
Financing Receivable, Modifications | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||
Total | $ 0 | ||
Total loans and leases | $ 0 | ||
[1] | Includes $174 and $183 of residential mortgage loans measured at fair value at September 30, 2020 and December 31, 2019, respectively. | ||
[2] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Credit Quality and the Allowa_6
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Recorded Investment in Portfolio Loans and Leases by Age and Class (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment, Past Due | ||||
Portfolio loans and leases, net | $ 108,157 | $ 108,356 | ||
Residential mortgage loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Residential mortgage loans | 174 | 183 | ||
Commercial | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 70,806 | 69,657 | ||
Past due | 444 | 301 | ||
Portfolio loans and leases, net | 71,250 | 69,958 | ||
90 days past due and still accruing | 32 | 26 | ||
Commercial | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 218 | 154 | ||
Commercial | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 226 | 147 | ||
Commercial | Commercial and industrial loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 51,413 | 50,305 | ||
Past due | 282 | 237 | ||
Portfolio loans and leases, net | 51,695 | 50,542 | ||
90 days past due and still accruing | 4 | 11 | ||
Commercial | Commercial and industrial loans | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 140 | 133 | ||
Commercial | Commercial and industrial loans | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 142 | 104 | ||
Commercial | Commercial mortgage owner-occupied loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 4,753 | 4,853 | ||
Past due | 51 | 27 | ||
Portfolio loans and leases, net | 4,804 | 4,880 | ||
90 days past due and still accruing | 22 | 9 | ||
Commercial | Commercial mortgage owner-occupied loans | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 14 | 4 | ||
Commercial | Commercial mortgage owner-occupied loans | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 37 | 23 | ||
Commercial | Commercial mortgage nonowner-occupied loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 5,979 | 6,072 | ||
Past due | 95 | 11 | ||
Portfolio loans and leases, net | 6,074 | 6,083 | ||
90 days past due and still accruing | 4 | 6 | ||
Commercial | Commercial mortgage nonowner-occupied loans | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 58 | 5 | ||
Commercial | Commercial mortgage nonowner-occupied loans | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 37 | 6 | ||
Commercial | Commercial construction loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 5,654 | 5,089 | ||
Past due | 2 | 1 | ||
Portfolio loans and leases, net | 5,656 | 5,090 | ||
90 days past due and still accruing | 0 | 0 | ||
Commercial | Commercial construction loans | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 2 | 1 | ||
Commercial | Commercial construction loans | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 0 | 0 | ||
Commercial | Commercial leases | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 3,007 | 3,338 | ||
Past due | 14 | 25 | ||
Portfolio loans and leases, net | 3,021 | 3,363 | ||
90 days past due and still accruing | 2 | 0 | ||
Commercial | Commercial leases | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 4 | 11 | ||
Commercial | Commercial leases | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 10 | 14 | ||
Residential Mortgage | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Residential mortgage loans | 174 | 183 | ||
Residential Mortgage | Federal Housing Administration Loan | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Losses due to claim denials and curtailments | $ 1 | 2 | $ 1 | |
Residential Mortgage | 30-89 Days | Federal Housing Administration Loan | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 91 | 94 | ||
Residential Mortgage | 90 Days or More | Federal Housing Administration Loan | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | $ 249 | 261 | ||
Residential Mortgage | Residential mortgage loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 16,372 | |||
Past due | 169 | |||
Portfolio loans and leases, net | 16,541 | |||
90 days past due and still accruing | 50 | |||
Residential Mortgage | Residential mortgage loans | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 27 | |||
Residential Mortgage | Residential mortgage loans | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 142 | |||
Consumer | Home equity | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 5,965 | |||
Past due | 118 | |||
Portfolio loans and leases, net | 6,083 | |||
90 days past due and still accruing | 1 | |||
Consumer | Home equity | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 61 | |||
Consumer | Home equity | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 57 | |||
Consumer | Indirect secured consumer loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 11,389 | |||
Past due | 149 | |||
Portfolio loans and leases, net | 11,538 | |||
90 days past due and still accruing | 10 | |||
Consumer | Indirect secured consumer loans | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 132 | |||
Consumer | Indirect secured consumer loans | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 17 | |||
Consumer | Credit card | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 2,434 | |||
Past due | 98 | |||
Portfolio loans and leases, net | 2,532 | |||
90 days past due and still accruing | 42 | |||
Consumer | Credit card | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 50 | |||
Consumer | Credit card | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 48 | |||
Consumer | Other consumer loans | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 2,702 | |||
Past due | 21 | |||
Portfolio loans and leases, net | 2,723 | |||
90 days past due and still accruing | 1 | |||
Consumer | Other consumer loans | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 18 | |||
Consumer | Other consumer loans | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 3 | |||
Residential Mortgage and Consumer | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Current loans and leases | 38,862 | |||
Past due | 555 | |||
Portfolio loans and leases, net | 39,417 | |||
90 days past due and still accruing | 104 | |||
Residential Mortgage and Consumer | 30-89 Days | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | 288 | |||
Residential Mortgage and Consumer | 90 Days or More | ||||
Financing Receivable, Recorded Investment, Past Due | ||||
Past due | $ 267 |
Credit Quality and the Allowa_7
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Financing Receivable, Modifications | |||||
Total | [1],[2] | $ 110,731 | $ 109,558 | ||
Total loans and leases | 108,157 | 108,356 | |||
Performing | |||||
Financing Receivable, Modifications | |||||
Total loans and leases | 39,196 | ||||
Nonperforming | |||||
Financing Receivable, Modifications | |||||
Total loans and leases | 221 | ||||
Residential mortgage loans | |||||
Financing Receivable, Modifications | |||||
Residential mortgage loans | 174 | 183 | |||
Residential Mortgage | |||||
Financing Receivable, Modifications | |||||
Residential mortgage loans | 174 | 183 | |||
Residential Mortgage | Federal Housing Administration Loan | |||||
Financing Receivable, Modifications | |||||
Losses due to claim denials and curtailments | $ 1 | 2 | $ 1 | ||
Residential Mortgage | 30-89 days past due | Federal Housing Administration Loan | |||||
Financing Receivable, Modifications | |||||
Past due | 91 | 94 | |||
Residential Mortgage | 90 days or more past due | Federal Housing Administration Loan | |||||
Financing Receivable, Modifications | |||||
Past due | 249 | 261 | |||
Residential Mortgage | Residential mortgage loans | |||||
Financing Receivable, Modifications | |||||
2020 | 2,845 | ||||
2019 | 2,354 | ||||
2018 | 981 | ||||
2017 | 1,890 | ||||
2016 | 2,600 | ||||
Prior | 5,314 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 15,984 | ||||
Total loans and leases | 16,541 | ||||
Past due | 169 | ||||
Residential Mortgage | Residential mortgage loans | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
Past due | 27 | ||||
Residential Mortgage | Residential mortgage loans | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
Past due | 142 | ||||
Residential Mortgage | Residential mortgage loans | Performing | |||||
Financing Receivable, Modifications | |||||
2020 | 2,845 | ||||
2019 | 2,354 | ||||
2018 | 981 | ||||
2017 | 1,888 | ||||
2016 | 2,597 | ||||
Prior | 5,250 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 15,915 | ||||
Total loans and leases | 16,450 | ||||
Residential Mortgage | Residential mortgage loans | Performing | Current | |||||
Financing Receivable, Modifications | |||||
2020 | 2,843 | ||||
2019 | 2,348 | ||||
2018 | 976 | ||||
2017 | 1,877 | ||||
2016 | 2,589 | ||||
Prior | 5,191 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 15,824 | ||||
Residential Mortgage | Residential mortgage loans | Performing | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
2020 | 2 | ||||
2019 | 1 | ||||
2018 | 3 | ||||
2017 | 4 | ||||
2016 | 3 | ||||
Prior | 11 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 24 | ||||
Residential Mortgage | Residential mortgage loans | Performing | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 5 | ||||
2018 | 2 | ||||
2017 | 7 | ||||
2016 | 5 | ||||
Prior | 48 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 67 | ||||
Residential Mortgage | Residential mortgage loans | Nonperforming | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 2 | ||||
2016 | 3 | ||||
Prior | 64 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 69 | ||||
Total loans and leases | 91 | ||||
Consumer | |||||
Financing Receivable, Modifications | |||||
Total | 39,481 | 39,600 | |||
Consumer | Home equity | |||||
Financing Receivable, Modifications | |||||
2020 | 11 | ||||
2019 | 27 | ||||
2018 | 36 | ||||
2017 | 5 | ||||
2016 | 3 | ||||
Prior | 181 | ||||
Revolving Loans Amortized Cost Basis | 5,183 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 9 | ||||
Total | 5,455 | ||||
Total loans and leases | 6,083 | ||||
Past due | 118 | ||||
Consumer | Home equity | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
Past due | 61 | ||||
Consumer | Home equity | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
Past due | 57 | ||||
Consumer | Home equity | Performing | |||||
Financing Receivable, Modifications | |||||
2020 | 11 | ||||
2019 | 27 | ||||
2018 | 35 | ||||
2017 | 5 | ||||
2016 | 3 | ||||
Prior | 169 | ||||
Revolving Loans Amortized Cost Basis | 5,108 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 8 | ||||
Total | 5,366 | ||||
Total loans and leases | 5,989 | ||||
Consumer | Home equity | Performing | Current | |||||
Financing Receivable, Modifications | |||||
2020 | 11 | ||||
2019 | 27 | ||||
2018 | 35 | ||||
2017 | 5 | ||||
2016 | 3 | ||||
Prior | 164 | ||||
Revolving Loans Amortized Cost Basis | 5,086 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 8 | ||||
Total | 5,339 | ||||
Consumer | Home equity | Performing | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 3 | ||||
Revolving Loans Amortized Cost Basis | 22 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 25 | ||||
Consumer | Home equity | Performing | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 2 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 2 | ||||
Consumer | Home equity | Nonperforming | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 1 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 12 | ||||
Revolving Loans Amortized Cost Basis | 75 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | ||||
Total | 89 | ||||
Total loans and leases | 94 | ||||
Consumer | Indirect secured consumer loans | |||||
Financing Receivable, Modifications | |||||
2020 | 4,942 | ||||
2019 | 4,230 | ||||
2018 | 1,948 | ||||
2017 | 1,032 | ||||
2016 | 474 | ||||
Prior | 299 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 12,925 | ||||
Total loans and leases | 11,538 | ||||
Past due | 149 | ||||
Consumer | Indirect secured consumer loans | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
Past due | 132 | ||||
Consumer | Indirect secured consumer loans | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
Past due | 17 | ||||
Consumer | Indirect secured consumer loans | Performing | |||||
Financing Receivable, Modifications | |||||
2020 | 4,942 | ||||
2019 | 4,226 | ||||
2018 | 1,944 | ||||
2017 | 1,029 | ||||
2016 | 472 | ||||
Prior | 296 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 12,909 | ||||
Total loans and leases | 11,531 | ||||
Consumer | Indirect secured consumer loans | Performing | Current | |||||
Financing Receivable, Modifications | |||||
2020 | 4,928 | ||||
2019 | 4,186 | ||||
2018 | 1,909 | ||||
2017 | 1,008 | ||||
2016 | 462 | ||||
Prior | 290 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 12,783 | ||||
Consumer | Indirect secured consumer loans | Performing | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
2020 | 13 | ||||
2019 | 38 | ||||
2018 | 32 | ||||
2017 | 19 | ||||
2016 | 9 | ||||
Prior | 5 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 116 | ||||
Consumer | Indirect secured consumer loans | Performing | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
2020 | 1 | ||||
2019 | 2 | ||||
2018 | 3 | ||||
2017 | 2 | ||||
2016 | 1 | ||||
Prior | 1 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 10 | ||||
Consumer | Indirect secured consumer loans | Nonperforming | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 4 | ||||
2018 | 4 | ||||
2017 | 3 | ||||
2016 | 2 | ||||
Prior | 3 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 16 | ||||
Total loans and leases | 7 | ||||
Consumer | Credit card | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 2,087 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 2,087 | ||||
Total loans and leases | 2,532 | ||||
Past due | 98 | ||||
Consumer | Credit card | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
Past due | 50 | ||||
Consumer | Credit card | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
Past due | 48 | ||||
Consumer | Credit card | Performing | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 2,061 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 2,061 | ||||
Total loans and leases | 2,505 | ||||
Consumer | Credit card | Performing | Current | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 2,005 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 2,005 | ||||
Consumer | Credit card | Performing | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 29 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 29 | ||||
Consumer | Credit card | Performing | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 27 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 27 | ||||
Consumer | Credit card | Nonperforming | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 26 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 26 | ||||
Total loans and leases | 27 | ||||
Consumer | Other consumer loans | |||||
Financing Receivable, Modifications | |||||
2020 | 607 | ||||
2019 | 652 | ||||
2018 | 506 | ||||
2017 | 208 | ||||
2016 | 37 | ||||
Prior | 37 | ||||
Revolving Loans Amortized Cost Basis | 808 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | ||||
Total | 2,856 | ||||
Total loans and leases | 2,723 | ||||
Past due | 21 | ||||
Consumer | Other consumer loans | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
Past due | 18 | ||||
Consumer | Other consumer loans | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
Past due | 3 | ||||
Consumer | Other consumer loans | Performing | |||||
Financing Receivable, Modifications | |||||
2020 | 607 | ||||
2019 | 652 | ||||
2018 | 506 | ||||
2017 | 208 | ||||
2016 | 37 | ||||
Prior | 36 | ||||
Revolving Loans Amortized Cost Basis | 806 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | ||||
Total | 2,853 | ||||
Total loans and leases | 2,721 | ||||
Consumer | Other consumer loans | Performing | Current | |||||
Financing Receivable, Modifications | |||||
2020 | 605 | ||||
2019 | 645 | ||||
2018 | 502 | ||||
2017 | 205 | ||||
2016 | 37 | ||||
Prior | 36 | ||||
Revolving Loans Amortized Cost Basis | 803 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 1 | ||||
Total | 2,834 | ||||
Consumer | Other consumer loans | Performing | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
2020 | 2 | ||||
2019 | 6 | ||||
2018 | 4 | ||||
2017 | 3 | ||||
2016 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 3 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 18 | ||||
Consumer | Other consumer loans | Performing | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 1 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost Basis | 0 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 1 | ||||
Consumer | Other consumer loans | Nonperforming | |||||
Financing Receivable, Modifications | |||||
2020 | 0 | ||||
2019 | 0 | ||||
2018 | 0 | ||||
2017 | 0 | ||||
2016 | 0 | ||||
Prior | 1 | ||||
Revolving Loans Amortized Cost Basis | 2 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | ||||
Total | 3 | ||||
Total loans and leases | 2 | ||||
Residential Mortgage and Consumer | |||||
Financing Receivable, Modifications | |||||
2020 | 8,405 | ||||
2019 | 7,263 | ||||
2018 | 3,471 | ||||
2017 | 3,135 | ||||
2016 | 3,114 | ||||
Prior | 5,831 | ||||
Revolving Loans Amortized Cost Basis | 8,078 | ||||
Revolving Loans Converted to Term Loans Amortized Cost Basis | 10 | ||||
Total | $ 39,307 | ||||
Total loans and leases | 39,417 | ||||
Past due | 555 | ||||
Residential Mortgage and Consumer | 30-89 days past due | |||||
Financing Receivable, Modifications | |||||
Past due | 288 | ||||
Residential Mortgage and Consumer | 90 days or more past due | |||||
Financing Receivable, Modifications | |||||
Past due | $ 267 | ||||
[1] | Includes $174 and $183 of residential mortgage loans measured at fair value at September 30, 2020 and December 31, 2019, respectively. | ||||
[2] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Credit Quality and the Allowa_8
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the Amortized Cost Basis of the Bancorp's Collateral Dependent Loans (Details) $ in Millions | Sep. 30, 2020USD ($) |
Financing Receivable, Impaired | |
Total portfolio loans and leases | $ 1,297 |
Commercial | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 1,099 |
Commercial | Commercial and industrial loans | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 877 |
Commercial | Commercial mortgage owner-occupied loans | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 67 |
Commercial | Commercial mortgage nonowner-occupied loans | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 120 |
Commercial | Commercial construction loans | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 20 |
Commercial | Commercial leases | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 15 |
Residential Mortgage | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 114 |
Consumer | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 84 |
Consumer | Home equity | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 75 |
Consumer | Indirect secured consumer loans | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | 9 |
Consumer | Other consumer loans | |
Financing Receivable, Impaired | |
Loans and leases receivable, allowance for amortized cost basis | $ 0 |
Credit Quality and the Allowa_9
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the Bancorp's Nonaccrual Loans and Leases by Class (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Modifications | ||||
With an ALLL | $ 574 | $ 574 | ||
No Related ALLL | 357 | 357 | ||
Total | 931 | 931 | ||
Interest Income Recognized | 12 | 39 | ||
Nonaccrual portfolio loans and leases | $ 618 | |||
OREO and other repossessed personal property | 62 | |||
Total nonperforming portfolio assets | 680 | |||
Loans and leases held for sale | [1] | 2,323 | 2,323 | 1,400 |
Total portfolio loans and leases | [2],[3] | 110,731 | 110,731 | 109,558 |
Nonperforming | ||||
Financing Receivable, Modifications | ||||
Loans and leases held for sale | 10 | 10 | 7 | |
Restructured loans held for sale | 1 | 1 | ||
Nonperforming | Government Insured | ||||
Financing Receivable, Modifications | ||||
Total portfolio loans and leases | 25 | 25 | 16 | |
Restructured nonaccrual loans and leases | 13 | 13 | 11 | |
Commercial | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 468 | 468 | ||
No Related ALLL | 220 | 220 | ||
Total | 688 | 688 | ||
Interest Income Recognized | 2 | 7 | ||
Nonaccrual portfolio loans and leases | 397 | |||
Total portfolio loans and leases | 71,250 | 71,250 | 69,958 | |
Commercial | Commercial and industrial loans | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 354 | 354 | ||
No Related ALLL | 164 | 164 | ||
Total | 518 | 518 | ||
Interest Income Recognized | 2 | 6 | ||
Nonaccrual portfolio loans and leases | 338 | |||
Loans and leases held for sale | 57 | 57 | 135 | |
Total portfolio loans and leases | 51,695 | 51,695 | ||
Commercial | Commercial mortgage owner-occupied loans | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 17 | 17 | ||
No Related ALLL | 35 | 35 | ||
Total | 52 | 52 | ||
Interest Income Recognized | 0 | 0 | ||
Nonaccrual portfolio loans and leases | 29 | |||
Total portfolio loans and leases | 4,804 | 4,804 | ||
Commercial | Commercial mortgage nonowner-occupied loans | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 86 | 86 | ||
No Related ALLL | 16 | 16 | ||
Total | 102 | 102 | ||
Interest Income Recognized | 0 | 0 | ||
Nonaccrual portfolio loans and leases | 1 | |||
Total portfolio loans and leases | 6,074 | 6,074 | ||
Commercial | Commercial construction loans | ||||
Financing Receivable, Modifications | ||||
Nonaccrual portfolio loans and leases | 1 | |||
Total portfolio loans and leases | 5,656 | 5,656 | ||
Commercial | Commercial leases | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 11 | 11 | ||
No Related ALLL | 5 | 5 | ||
Total | 16 | 16 | ||
Interest Income Recognized | 0 | 1 | ||
Nonaccrual portfolio loans and leases | 28 | |||
Total portfolio loans and leases | 3,021 | 3,021 | ||
Residential Mortgage | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 10 | 10 | ||
No Related ALLL | 59 | 59 | ||
Total | 69 | 69 | ||
Interest Income Recognized | 7 | 22 | ||
Nonaccrual portfolio loans and leases | 91 | |||
Consumer | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 96 | 96 | ||
No Related ALLL | 38 | 38 | ||
Total | 134 | 134 | ||
Interest Income Recognized | 3 | 10 | ||
Nonaccrual portfolio loans and leases | 130 | |||
Total portfolio loans and leases | 39,481 | 39,481 | 39,600 | |
Consumer | Home equity | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 58 | 58 | ||
No Related ALLL | 31 | 31 | ||
Total | 89 | 89 | ||
Interest Income Recognized | 2 | 7 | ||
Nonaccrual portfolio loans and leases | 94 | |||
Total portfolio loans and leases | 5,455 | 5,455 | ||
Consumer | Home equity | Nonperforming | ||||
Financing Receivable, Modifications | ||||
Total portfolio loans and leases | 89 | 89 | ||
Consumer | Indirect secured consumer loans | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 9 | 9 | ||
No Related ALLL | 7 | 7 | ||
Total | 16 | 16 | ||
Interest Income Recognized | 0 | 0 | ||
Nonaccrual portfolio loans and leases | 7 | |||
Total portfolio loans and leases | 12,925 | 12,925 | ||
Consumer | Indirect secured consumer loans | Nonperforming | ||||
Financing Receivable, Modifications | ||||
Total portfolio loans and leases | 16 | 16 | ||
Consumer | Credit card | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 26 | 26 | ||
No Related ALLL | 0 | 0 | ||
Total | 26 | 26 | ||
Interest Income Recognized | 1 | 3 | ||
Nonaccrual portfolio loans and leases | 27 | |||
Total portfolio loans and leases | 2,087 | 2,087 | ||
Consumer | Credit card | Nonperforming | ||||
Financing Receivable, Modifications | ||||
Total portfolio loans and leases | 26 | 26 | ||
Consumer | Other consumer loans | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 3 | 3 | ||
No Related ALLL | 0 | 0 | ||
Total | 3 | 3 | ||
Interest Income Recognized | 0 | 0 | ||
Nonaccrual portfolio loans and leases | $ 2 | |||
Total portfolio loans and leases | 2,856 | 2,856 | ||
Consumer | Other consumer loans | Nonperforming | ||||
Financing Receivable, Modifications | ||||
Total portfolio loans and leases | 3 | 3 | ||
Nonaccrual Portfolio Loans and Leases | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 574 | 574 | ||
No Related ALLL | 317 | 317 | ||
Total | 891 | 891 | ||
Interest Income Recognized | 12 | 39 | ||
OREO and Other Repossessed Assets | ||||
Financing Receivable, Modifications | ||||
With an ALLL | 0 | 0 | ||
No Related ALLL | 40 | 40 | ||
Total | 40 | 40 | ||
Interest Income Recognized | $ 0 | $ 0 | ||
[1] | Includes $1,472 and $1,264 of residential mortgage loans held for sale measured at fair value at September 30, 2020 and December 31, 2019, respectively. | |||
[2] | Includes $174 and $183 of residential mortgage loans measured at fair value at September 30, 2020 and December 31, 2019, respectively. | |||
[3] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Credit Quality and the Allow_10
Credit Quality and the Allowance for Loan and Lease Losses - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Mortgage loans in process of foreclosure amount | $ 140 | $ 212 |
Line of credit commitments for modified troubled debt restructurings | 111 | 41 |
Letter of credit commitments for modified troubled debt restructurings | $ 70 | $ 58 |
Credit Quality and the Allow_11
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Loans Modified in a TDR (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)loan | |
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 1,237 | 1,802 | 4,577 | 4,982 |
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 129 | $ 121 | $ 422 | $ 279 |
(Decrease) Increase to ALLL Upon Modification | (5) | 2 | 26 | (8) |
Charge-offs Recognized Upon Modification | $ 8 | $ 1 | $ 8 | $ 8 |
Commercial | Commercial and industrial loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 33 | 27 | 96 | 65 |
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 75 | $ 72 | $ 250 | $ 168 |
(Decrease) Increase to ALLL Upon Modification | 1 | (1) | 25 | (15) |
Charge-offs Recognized Upon Modification | $ 7 | $ 0 | $ 7 | $ 5 |
Commercial | Commercial mortgage owner-occupied loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 10 | 4 | 38 | 13 |
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 19 | $ 1 | $ 38 | $ 10 |
(Decrease) Increase to ALLL Upon Modification | (3) | 0 | (3) | 0 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial | Commercial mortgage nonowner-occupied loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 3 | 15 | ||
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 16 | $ 38 | ||
(Decrease) Increase to ALLL Upon Modification | (2) | (2) | ||
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | ||
Commercial | Commercial construction loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 3 | |||
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 21 | |||
(Decrease) Increase to ALLL Upon Modification | 1 | |||
Charge-offs Recognized Upon Modification | $ 0 | |||
Residential Mortgage | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 66 | 256 | 359 | 531 |
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 11 | $ 39 | $ 48 | $ 74 |
(Decrease) Increase to ALLL Upon Modification | 0 | 1 | 1 | 1 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | Home equity | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 88 | 21 | 130 | 58 |
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 2 | $ 1 | $ 6 | $ 3 |
(Decrease) Increase to ALLL Upon Modification | (3) | 0 | (4) | 0 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | Indirect secured consumer loans | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 14 | 27 | 56 | 65 |
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 0 | $ 0 | $ 0 | $ 0 |
(Decrease) Increase to ALLL Upon Modification | 0 | 0 | 0 | 0 |
Charge-offs Recognized Upon Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | Credit card | ||||
Financing Receivable, Modifications | ||||
Number of Loans Modified in a TDR During the Period | loan | 1,023 | 1,467 | 3,880 | 4,250 |
Amortized Cost Basis of Loans Modified in a TDR During the Period | $ 6 | $ 8 | $ 21 | $ 24 |
(Decrease) Increase to ALLL Upon Modification | 2 | 2 | 8 | 6 |
Charge-offs Recognized Upon Modification | $ 1 | $ 1 | $ 1 | $ 3 |
Credit Quality and the Allow_12
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Subsequent Defaults (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | |
Financing Receivable, Modifications | ||||
Number of Contracts | contract | 80 | 146 | 393 | 825 |
Amortized Cost | $ | $ 10 | $ 13 | $ 36 | $ 54 |
Commercial | Commercial and industrial loans | ||||
Financing Receivable, Modifications | ||||
Number of Contracts | contract | 6 | 1 | 12 | 8 |
Amortized Cost | $ | $ 1 | $ 3 | $ 5 | $ 20 |
Commercial | Commercial mortgage owner-occupied loans | ||||
Financing Receivable, Modifications | ||||
Number of Contracts | contract | 1 | 2 | 8 | 4 |
Amortized Cost | $ | $ 1 | $ 0 | $ 3 | $ 1 |
Commercial | Commercial mortgage nonowner-occupied loans | ||||
Financing Receivable, Modifications | ||||
Number of Contracts | contract | 2 | |||
Amortized Cost | $ | $ 9 | |||
Residential Mortgage | ||||
Financing Receivable, Modifications | ||||
Number of Contracts | contract | 45 | 67 | 117 | 196 |
Amortized Cost | $ | $ 8 | $ 10 | $ 18 | $ 30 |
Consumer | Home equity | ||||
Financing Receivable, Modifications | ||||
Number of Contracts | contract | 2 | 7 | 5 | 12 |
Amortized Cost | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | Indirect secured consumer loans | ||||
Financing Receivable, Modifications | ||||
Number of Contracts | contract | 6 | 12 | ||
Amortized Cost | $ | $ 0 | $ 0 | ||
Consumer | Credit card | ||||
Financing Receivable, Modifications | ||||
Number of Contracts | contract | 20 | 69 | 237 | 605 |
Amortized Cost | $ | $ 0 | $ 0 | $ 1 | $ 3 |
Credit Quality and the Allow_13
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Portfolio Loans, by Class, that Received Payment Deferrals or Forbearances (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Loans held for sale | [1] | $ 2,323 | $ 1,400 |
Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 70,806 | 69,657 | |
Past Due | 444 | 301 | |
Commercial | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 218 | 154 | |
Commercial | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 226 | 147 | |
Commercial | Commercial and industrial loans | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 51,413 | 50,305 | |
Past Due | 282 | 237 | |
Loans held for sale | 57 | 135 | |
Commercial | Commercial and industrial loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 140 | 133 | |
Commercial | Commercial and industrial loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 142 | 104 | |
Commercial | Commercial mortgage owner-occupied loans | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 4,753 | 4,853 | |
Past Due | 51 | 27 | |
Commercial | Commercial mortgage owner-occupied loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 14 | 4 | |
Commercial | Commercial mortgage owner-occupied loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 37 | 23 | |
Commercial | Commercial mortgage nonowner-occupied loans | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 5,979 | 6,072 | |
Past Due | 95 | 11 | |
Commercial | Commercial mortgage nonowner-occupied loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 58 | 5 | |
Commercial | Commercial mortgage nonowner-occupied loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 37 | 6 | |
Commercial | Commercial construction loans | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 5,654 | 5,089 | |
Past Due | 2 | 1 | |
Commercial | Commercial construction loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 2 | 1 | |
Commercial | Commercial construction loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 0 | 0 | |
Commercial | Commercial leases | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 3,007 | 3,338 | |
Past Due | 14 | 25 | |
Commercial | Commercial leases | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 4 | 11 | |
Commercial | Commercial leases | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 10 | 14 | |
Consumer | Indirect secured consumer loans | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 11,389 | ||
Past Due | 149 | ||
Consumer | Indirect secured consumer loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 132 | ||
Consumer | Indirect secured consumer loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 17 | ||
Consumer | Credit card | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 2,434 | ||
Past Due | 98 | ||
Consumer | Credit card | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 50 | ||
Consumer | Credit card | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 48 | ||
Consumer | Other consumer loans | |||
Financing Receivable, Impaired [Line Items] | |||
Current | 2,702 | ||
Past Due | 21 | ||
Consumer | Other consumer loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 18 | ||
Consumer | Other consumer loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | $ 3 | ||
COVID-19 Hardship Relief Programs | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 6,901 | ||
Current | 6,454 | ||
Past Due | 447 | ||
COVID-19 Hardship Relief Programs | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 233 | ||
COVID-19 Hardship Relief Programs | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 214 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial and industrial loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 1,451 | ||
Current | 1,413 | ||
Past Due | 38 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial and industrial loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 29 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial and industrial loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 9 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial mortgage owner-occupied loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 618 | ||
Current | 594 | ||
Past Due | 24 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial mortgage owner-occupied loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 9 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial mortgage owner-occupied loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 15 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial mortgage nonowner-occupied loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 1,178 | ||
Current | 1,101 | ||
Past Due | 77 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial mortgage nonowner-occupied loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 56 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial mortgage nonowner-occupied loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 21 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial construction loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 456 | ||
Current | 456 | ||
Past Due | 0 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial construction loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 0 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial construction loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 0 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial leases | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 99 | ||
Current | 99 | ||
Past Due | 0 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial leases | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 0 | ||
COVID-19 Hardship Relief Programs | Commercial | Commercial leases | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 0 | ||
COVID-19 Hardship Relief Programs | Residential Mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 1,521 | ||
Current | 1,324 | ||
Past Due | 197 | ||
COVID-19 Hardship Relief Programs | Residential Mortgage | GNMA loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 843 | ||
Loans held for sale | 792 | ||
COVID-19 Hardship Relief Programs | Residential Mortgage | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 51 | ||
COVID-19 Hardship Relief Programs | Residential Mortgage | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 146 | ||
COVID-19 Hardship Relief Programs | Consumer | Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 218 | ||
Current | 205 | ||
Past Due | 13 | ||
COVID-19 Hardship Relief Programs | Consumer | Home equity | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 7 | ||
COVID-19 Hardship Relief Programs | Consumer | Home equity | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 6 | ||
COVID-19 Hardship Relief Programs | Consumer | Indirect secured consumer loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 1,096 | ||
Current | 1,025 | ||
Past Due | 71 | ||
COVID-19 Hardship Relief Programs | Consumer | Indirect secured consumer loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 63 | ||
COVID-19 Hardship Relief Programs | Consumer | Indirect secured consumer loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 8 | ||
COVID-19 Hardship Relief Programs | Consumer | Credit card | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 151 | ||
Current | 131 | ||
Past Due | 20 | ||
COVID-19 Hardship Relief Programs | Consumer | Credit card | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 12 | ||
COVID-19 Hardship Relief Programs | Consumer | Credit card | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 8 | ||
COVID-19 Hardship Relief Programs | Consumer | Other consumer loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 113 | ||
Current | 106 | ||
Past Due | 7 | ||
COVID-19 Hardship Relief Programs | Consumer | Other consumer loans | 30-89 Days | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 6 | ||
COVID-19 Hardship Relief Programs | Consumer | Other consumer loans | 90 Days or More | |||
Financing Receivable, Impaired [Line Items] | |||
Past Due | 1 | ||
Completed Relief Period | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 4,938 | ||
Completed Relief Period | Commercial | Commercial and industrial loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 1,412 | ||
Completed Relief Period | Commercial | Commercial mortgage owner-occupied loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 580 | ||
Completed Relief Period | Commercial | Commercial mortgage nonowner-occupied loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 920 | ||
Completed Relief Period | Commercial | Commercial construction loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 306 | ||
Completed Relief Period | Commercial | Commercial leases | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 99 | ||
Completed Relief Period | Residential Mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 426 | ||
Completed Relief Period | Consumer | Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 41 | ||
Completed Relief Period | Consumer | Indirect secured consumer loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 924 | ||
Completed Relief Period | Consumer | Credit card | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 133 | ||
Completed Relief Period | Consumer | Other consumer loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 97 | ||
In Active Relief Period | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 1,963 | ||
In Active Relief Period | Commercial | Commercial and industrial loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 39 | ||
In Active Relief Period | Commercial | Commercial mortgage owner-occupied loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 38 | ||
In Active Relief Period | Commercial | Commercial mortgage nonowner-occupied loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 258 | ||
In Active Relief Period | Commercial | Commercial construction loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 150 | ||
In Active Relief Period | Commercial | Commercial leases | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 0 | ||
In Active Relief Period | Residential Mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 1,095 | ||
In Active Relief Period | Consumer | Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 177 | ||
In Active Relief Period | Consumer | Indirect secured consumer loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 172 | ||
In Active Relief Period | Consumer | Credit card | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | 18 | ||
In Active Relief Period | Consumer | Other consumer loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amortized Cost Basis of Loans and Leases | $ 16 | ||
[1] | Includes $1,472 and $1,264 of residential mortgage loans held for sale measured at fair value at September 30, 2020 and December 31, 2019, respectively. |
Bank Premises and Equipment - S
Bank Premises and Equipment - Summary of Bank Premises and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization | $ (3,012) | $ (2,889) | |
Total bank premises and equipment | [1] | 2,090 | 1,995 |
Land and and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 626 | 639 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,587 | 1,575 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,254 | 2,126 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 450 | 432 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 140 | 85 | |
Land and improvements held for sale | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 27 | 8 | |
Buildings held for sale | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 17 | 18 | |
Equipment held for sale | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1 | 1 | |
Other property | |||
Property, Plant and Equipment [Line Items] | |||
Land improvements | $ 54 | $ 51 | |
[1] | Includes $45 and $27 of bank premises and equipment held for sale at September 30, 2020 and December 31, 2019, respectively. |
Bank Premises and Equipment - A
Bank Premises and Equipment - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($)branch | Sep. 30, 2019USD ($)branch | Sep. 30, 2020USD ($)branch | Sep. 30, 2019USD ($)branch | Mar. 22, 2019branch | Jun. 30, 2018branch | |
Property, Plant and Equipment [Line Items] | ||||||
Impairment losses on bank premises | $ | $ 11 | $ 5 | $ 25 | $ 27 | ||
Impairment charges resulting from acquisition | $ | $ 14 | |||||
2018 Branch Optimization Plan | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of branches held for sale | 100 | |||||
2018 Branch Optimization Plan | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of branches held for sale | 125 | |||||
Closed in 2020 | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of branches held for sale | 100 | 100 | ||||
Closed in 2020 | MB Financial, Inc. | Chicago market | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of branches held for sale | 7 | 7 | ||||
To be closed | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of branches held for sale | 37 | 37 | ||||
To be closed | MB Financial, Inc. | Chicago market | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of branches held for sale | 46 | |||||
Closed in 2019 | MB Financial, Inc. | Chicago market | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of branches held for sale | 45 | 45 | ||||
Other property | MB Financial, Inc. | Chicago market | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of other locations held for sale | 11 | 11 | ||||
Other locations at fair value | $ | $ 15 | $ 15 |
Operating Lease Equipment - Add
Operating Lease Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating lease equipment | $ 818,000,000 | $ 818,000,000 | $ 848,000,000 | ||
Operating lease income | 39,000,000 | $ 44,000,000 | 118,000,000 | $ 110,000,000 | |
Operating lease payments received | 119,000,000 | 111,000,000 | |||
Impairment loss on operating lease | $ 0 | $ 0 | $ 3,000,000 | $ 0 |
Operating Lease Equipment - Und
Operating Lease Equipment - Undiscounted Future Lease Payments (Details) - Operating lease equipment $ in Millions | Sep. 30, 2020USD ($) |
Lessor, Lease, Description [Line Items] | |
Remainder of 2020 | $ 39 |
2021 | 140 |
2022 | 114 |
2023 | 85 |
2024 | 52 |
2025 | 32 |
Thereafter | 44 |
Total operating lease payments | $ 506 |
Lease Obligations - Lessee - Le
Lease Obligations - Lessee - Lease Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 444 | $ 473 |
Operating lease right-of-use assets [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Finance lease right-of-use assets | $ 112 | $ 34 |
Finance lease, right-of-use assets [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Total right-of-use assets | $ 556 | $ 507 |
Operating lease liabilities | $ 532 | $ 555 |
Operating lease liabilities [Extensible List] | us-gaap:AccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccruedLiabilitiesCurrentAndNoncurrent |
Finance lease liabilities | $ 117 | $ 35 |
Finance lease liabilities [Extensible List] | us-gaap:LongTermDebt | us-gaap:LongTermDebt |
Total lease liabilities | $ 649 | $ 590 |
Operating lease right of use asset, accumulated amortization | 124 | 75 |
Finance lease right of use asset, accumulated amortization | $ 25 | $ 27 |
Lease Obligations - Lessee - _2
Lease Obligations - Lessee - Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lease Cost [Line Items] | ||||
Total finance lease costs | $ 5 | $ 2 | $ 9 | $ 5 |
Total operating lease costs | 35 | 31 | 96 | 92 |
Total lease costs | 40 | 33 | 105 | 97 |
Impairment losses and termination charges | 1 | 5 | 6 | 12 |
Net occupancy and equipment expense | ||||
Lease Cost [Line Items] | ||||
Amortization of ROU assets | 4 | 2 | 7 | 5 |
Interest on long-term debt | ||||
Lease Cost [Line Items] | ||||
Interest on lease liabilities | 1 | 0 | 2 | 0 |
Net occupancy expense | ||||
Lease Cost [Line Items] | ||||
Operating lease cost | 29 | 25 | 76 | 72 |
Short-term lease cost | 0 | 0 | 1 | 0 |
Variable lease cost | 7 | 7 | 21 | 23 |
Sublease income | $ (1) | $ (1) | $ (2) | $ (3) |
Lease Obligations - Lessee - Un
Lease Obligations - Lessee - Undiscounted Cash Flows (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Remainder of 2020 | $ 22 | |
2021 | 84 | |
2022 | 80 | |
2023 | 72 | |
2024 | 63 | |
2025 | 56 | |
Thereafter | 242 | |
Total undiscounted cash flows | 619 | |
Less: Difference between undiscounted cash flows and discounted cash flows | (87) | |
Present value of lease liabilities | 532 | $ 555 |
Finance Leases | ||
Remainder of 2020 | 4 | |
2021 | 18 | |
2022 | 18 | |
2023 | 15 | |
2024 | 16 | |
2025 | 9 | |
Thereafter | 60 | |
Total undiscounted cash flows | 140 | |
Less: Difference between undiscounted cash flows and discounted cash flows | (23) | |
Present value of lease liabilities | 117 | $ 35 |
Total | ||
Remainder of 2020 | 26 | |
2021 | 102 | |
2022 | 98 | |
2023 | 87 | |
2024 | 79 | |
2025 | 65 | |
Thereafter | 302 | |
Total undiscounted cash flows | 759 | |
Less: Difference between undiscounted cash flows and discounted cash flows | (110) | |
Present value of lease liabilities | $ 649 |
Lease Obligations - Lessee - Ot
Lease Obligations - Lessee - Other Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating leases, weighted average remaining lease term | 9 years 2 months 19 days | |
Finance leases, weighted average remaining lease term | 11 years 11 months 8 days | |
Operating leases, weighted average discount rate | 3.10% | |
Finance leases, weighted average discount rate | 2.36% | |
Cash paid for amounts included in the measurement of lease liabilities:(a) | ||
Operating cash flows from operating leases | $ 69 | $ 72 |
Operating cash flows from finance leases | 2 | 1 |
Financing cash flows from finance leases | 8 | 3 |
Gains on sale and leaseback transactions | $ 0 | $ 5 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | Mar. 22, 2019 | Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill | |||||
Goodwill | $ 3,443 | ||||
Accumulated impairment losses | (965) | ||||
Goodwill [Roll Forward] | |||||
Net carrying value, beginning of period | $ 4,252 | $ 4,252 | $ 2,478 | ||
Acquisition activity | 9 | 1,777 | |||
Sale of business | (3) | ||||
Net carrying value, end of period | 4,261 | 4,252 | |||
MB Financial, Inc. | |||||
Goodwill [Roll Forward] | |||||
Acquisition activity | $ 1,800 | 9 | |||
Net carrying value, end of period | $ 1,786 | ||||
Commercial Banking | |||||
Goodwill | |||||
Goodwill | 1,380 | ||||
Accumulated impairment losses | (750) | ||||
Goodwill [Roll Forward] | |||||
Net carrying value, beginning of period | 1,954 | 1,954 | 630 | ||
Acquisition activity | 7 | 1,324 | |||
Sale of business | 0 | ||||
Net carrying value, end of period | 1,961 | 1,954 | |||
Branch Banking | |||||
Goodwill | |||||
Goodwill | 1,655 | ||||
Accumulated impairment losses | 0 | ||||
Goodwill [Roll Forward] | |||||
Net carrying value, beginning of period | 2,046 | 2,046 | 1,655 | ||
Acquisition activity | 1 | 391 | |||
Sale of business | 0 | ||||
Net carrying value, end of period | 2,047 | 2,046 | |||
Consumer Lending | |||||
Goodwill | |||||
Goodwill | 215 | ||||
Accumulated impairment losses | (215) | ||||
Goodwill [Roll Forward] | |||||
Net carrying value, beginning of period | 0 | 0 | 0 | ||
Acquisition activity | 0 | 0 | |||
Sale of business | 0 | ||||
Net carrying value, end of period | 0 | 0 | |||
Wealth and Asset Management | |||||
Goodwill | |||||
Goodwill | 193 | ||||
Accumulated impairment losses | 0 | ||||
Goodwill [Roll Forward] | |||||
Net carrying value, beginning of period | 252 | 252 | 193 | ||
Acquisition activity | 1 | 62 | |||
Sale of business | (3) | ||||
Net carrying value, end of period | 253 | 252 | |||
General Corporate and Other | |||||
Goodwill | |||||
Goodwill | 0 | ||||
Accumulated impairment losses | $ 0 | ||||
Goodwill [Roll Forward] | |||||
Net carrying value, beginning of period | $ 0 | 0 | 0 | ||
Acquisition activity | 0 | 0 | |||
Sale of business | 0 | ||||
Net carrying value, end of period | $ 0 | $ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | Mar. 22, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Finite-Lived Intangible Assets | |||||
Amortization expense | $ 13 | $ 14 | $ 43 | $ 31 | |
MB Financial, Inc. | |||||
Finite-Lived Intangible Assets | |||||
Core deposit intangible asset | $ 195 | ||||
Operating lease intangible asset | $ 24 | ||||
MB Financial, Inc. | Core deposit intangibles | |||||
Finite-Lived Intangible Assets | |||||
Estimated weighted-average life (in years) of acquired intangible asset | 7 years 2 months 12 days | ||||
MB Financial, Inc. | Operating leases | |||||
Finite-Lived Intangible Assets | |||||
Estimated weighted-average life (in years) of acquired intangible asset | 1 year 8 months 12 days |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 284 | $ 298 |
Accumulated Amortization | (127) | (97) |
Net Carrying Amount | 157 | 201 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 229 | 229 |
Accumulated Amortization | (104) | (70) |
Net Carrying Amount | 125 | 159 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 29 | 29 |
Accumulated Amortization | (7) | (6) |
Net Carrying Amount | 22 | 23 |
Operating leases | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 19 | 23 |
Accumulated Amortization | (13) | (9) |
Net Carrying Amount | 6 | 14 |
Non-compete agreements | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 3 | 13 |
Accumulated Amortization | (2) | (11) |
Net Carrying Amount | 1 | 2 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 4 | 4 |
Accumulated Amortization | (1) | (1) |
Net Carrying Amount | $ 3 | $ 3 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Details) $ in Millions | Sep. 30, 2020USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Remainder of 2020 | $ 13 |
2021 | 43 |
2022 | 33 |
2023 | 24 |
2024 | $ 16 |
Variable Interest Entities - Cl
Variable Interest Entities - Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |||
Assets | ||||||||||
Other short-term Investments | [1] | $ 31,285 | $ 1,950 | |||||||
ALLL | (2,574) | [1] | $ (2,696) | $ (33) | (1,202) | [1] | $ (1,143) | $ (1,115) | $ (1,103) | |
Other assets | [1] | 10,828 | 9,190 | |||||||
Total Assets | 201,996 | 169,369 | ||||||||
Liabilities | ||||||||||
Other liabilities | [1] | 3,292 | 2,422 | |||||||
Long-term debt | [1] | 15,123 | 14,970 | |||||||
Total Liabilities | 179,045 | 148,166 | ||||||||
Variable Interest Entity, Primary Beneficiary | Automobile loan | ||||||||||
Assets | ||||||||||
Other short-term Investments | 61 | 74 | ||||||||
Indirect secured consumer loans | 887 | 1,354 | ||||||||
ALLL | (9) | (7) | ||||||||
Other assets | 5 | 8 | ||||||||
Total Assets | 944 | 1,429 | ||||||||
Liabilities | ||||||||||
Other liabilities | 2 | 2 | ||||||||
Long-term debt | 786 | 1,253 | ||||||||
Total Liabilities | $ 788 | $ 1,255 | ||||||||
[1] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Variable Interest Entity | |||||
Assets | $ 201,996 | $ 201,996 | $ 169,369 | ||
Lower limit | |||||
Variable Interest Entity | |||||
Unfunded commitments, year expected to be funded | 2020 | ||||
Upper limit | |||||
Variable Interest Entity | |||||
Unfunded commitments, year expected to be funded | 2036 | ||||
Variable Interest Entity, Primary Beneficiary | Automobile loan | |||||
Variable Interest Entity | |||||
Carry value of automobile loans securitized | 1,430 | ||||
Face amount of notes issued or redeemed | 1,370 | ||||
Long-term debt retained | 68 | ||||
Assets | 944 | $ 944 | 1,429 | ||
Variable Interest Entity, Not Primary Beneficiary | Loans provided to VIEs | |||||
Variable Interest Entity | |||||
Unfunded commitment amounts | 1,300 | 1,400 | |||
Variable Interest Entity, Not Primary Beneficiary | CDC investments | |||||
Variable Interest Entity | |||||
Assets | 1,473 | 1,473 | 1,435 | ||
Variable Interest Entity, Not Primary Beneficiary | CDC investments | Qualified Affordable Housing Tax Credits | |||||
Variable Interest Entity | |||||
Assets | 1,200 | 1,200 | 1,200 | ||
Unfunded commitments in qualifying LIHTC investments | 436 | 436 | 428 | ||
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | |||||
Variable Interest Entity | |||||
Assets | 96 | 96 | 89 | ||
Unfunded commitment amounts | 86 | $ 75 | |||
Capital contribution to private equity investments | $ 4 | $ 2 | $ 10 | $ 9 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity | ||
Assets | $ 201,996 | $ 169,369 |
Liabilities | 179,045 | 148,166 |
Variable Interest Entity, Not Primary Beneficiary | CDC investments | ||
Variable Interest Entity | ||
Assets | 1,473 | 1,435 |
Liabilities | 436 | 428 |
Maximum Exposure | 1,473 | 1,435 |
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | ||
Variable Interest Entity | ||
Assets | 96 | 89 |
Liabilities | 0 | 0 |
Maximum Exposure | 182 | 164 |
Variable Interest Entity, Not Primary Beneficiary | Loans provided to VIEs | ||
Variable Interest Entity | ||
Assets | 2,515 | 2,715 |
Liabilities | 0 | 0 |
Maximum Exposure | 3,781 | 4,083 |
Variable Interest Entity, Not Primary Beneficiary | Lease pool entities | ||
Variable Interest Entity | ||
Assets | 75 | 74 |
Liabilities | 0 | 0 |
Maximum Exposure | $ 75 | $ 74 |
Variable Interest Entities - In
Variable Interest Entities - Investments in Qualified Affordable Housing Tax Credits (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Affordable Housing Investments | ||||
Variable Interest Entity [Line Items] | ||||
Impairment losses | $ 0 | $ 0 | $ 0 | $ 0 |
Applicable income tax expense | ||||
Variable Interest Entity [Line Items] | ||||
Proportional amortization | 62,000,000 | 31,000,000 | 94,000,000 | 105,000,000 |
Tax credits and other benefits | $ (74,000,000) | $ (35,000,000) | $ (111,000,000) | $ (122,000,000) |
Sales of Receivables and Serv_3
Sales of Receivables and Servicing Rights - Activity Related to Mortgage Banking Net Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Transfers and Servicing [Abstract] | ||||
Residential mortgage loan sales | $ 2,822 | $ 2,397 | $ 8,840 | $ 5,212 |
Origination fees and gains on loan sales | 93 | 64 | 269 | 126 |
Gross mortgage servicing fees | $ 66 | $ 71 | $ 197 | $ 196 |
Sales of Receivables and Serv_4
Sales of Receivables and Servicing Rights - Changes in the Servicing Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance, beginning of period | $ 993 | $ 938 | ||
Servicing rights originated | 150 | 99 | ||
Servicing rights purchased | 36 | 26 | ||
Servicing rights obtained in acquisition | 0 | 263 | ||
Changes in fair value due to changes in inputs or assumptions | $ 4 | $ (120) | (340) | (294) |
Changes in fair value due to other changes in fair value | (179) | (122) | ||
Balance, end of period | $ 660 | $ 910 | $ 660 | $ 910 |
Sales of Receivables and Serv_5
Sales of Receivables and Servicing Rights - Activity Related to the MSR Portfolio (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Transfers and Servicing of Financial Assets [Abstract] | |||||
Securities gains (losses), net – non-qualifying hedges on MSRs | [1] | $ (1) | $ 0 | $ 3 | $ 5 |
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio | (12) | 130 | 348 | 308 | |
MSR fair value adjustments due to changes in inputs or assumptions | $ 4 | $ (120) | $ (340) | $ (294) | |
[1] | During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications. |
Sales of Receivables and Serv_6
Sales of Receivables and Servicing Rights - Servicing Rights and Residual Interests Economic Assumptions (Details) - bps | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Fixed Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 5 years 10 months 24 days | 5 years 6 months |
Prepayment Speed Assumption, Rate (as a percent) | 12.20% | 13.70% |
OAS Speed Assumption, OAS (bps) | 780 | 543 |
Adjustable Rate Residential Mortgage | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 3 years 1 month 6 days | 0 years |
Prepayment Speed Assumption, Rate (as a percent) | 25.70% | 0.00% |
OAS Speed Assumption, OAS (bps) | 759 | 0 |
Sales of Receivables and Serv_7
Sales of Receivables and Servicing Rights - Additional Information (Details) - USD ($) $ in Billions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | ||
Servicing of residential mortgage loans for other investors | $ 73.5 | $ 80.7 |
Sales of Receivables and Serv_8
Sales of Receivables and Servicing Rights - Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)bps | |
Fixed Rate Residential Mortgage | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | |
Fair Value | $ 652 |
Weighted- Average Life (in years) | 4 years 1 month 6 days |
Prepayment Speed Assumption, Rate (as a percent) | 18.20% |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 10% | $ (22) |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 20% | (42) |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 50% | $ (94) |
OAS Speed Assumption, OAS (bps) | bps | 918 |
OAS Spread Assumption, Impact of Adverse Change on Fair Value 10% | $ (18) |
OAS Spread Assumption, Impact of Adverse Change on Fair Value 20% | (35) |
Adjustable Rate Residential Mortgage | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | |
Fair Value | $ 8 |
Weighted- Average Life (in years) | 3 years 8 months 12 days |
Prepayment Speed Assumption, Rate (as a percent) | 21.20% |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 10% | $ (1) |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 20% | (1) |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 50% | $ (2) |
OAS Speed Assumption, OAS (bps) | bps | 938 |
OAS Spread Assumption, Impact of Adverse Change on Fair Value 10% | $ 0 |
OAS Spread Assumption, Impact of Adverse Change on Fair Value 20% | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 29, 2020 | Dec. 31, 2019 | |
Derivative | |||
Amount of variation margin payment applied to derivative asset contracts | $ 1,200,000,000 | $ 623,000,000 | |
Valuation adjustments related to the credit risk associated with counterparties of customer accommodation derivative contracts | 53,000,000 | 17,000,000 | |
Derivatives | 261,000,000 | 227,000,000 | |
Amount of variation margin payment applied to derivative liability contracts | 1,300,000,000 | 488,000,000 | |
Notional amount of the risk participations agreements | 3,521,000,000 | 3,943,000,000 | |
Senior Notes | Unsecured Senior Fixed-Rate Bank Notes | Fifth Third Bank, National Association | |||
Derivative | |||
Debt redeemed | 750,000,000 | ||
Interest rate contracts | Credit Risk | |||
Derivative | |||
Fair value of risk participation agreements | $ 8,000,000 | 8,000,000 | |
Weighted-average remaining life | 3 years 7 months 6 days | ||
Cash Flow Hedging | Interest rate contracts | |||
Derivative | |||
Maximum length of time of hedging exposure | 51 months | ||
Deferred gains, net of tax, on cash flow hedges recorded in accumulated other comprehensive income | $ 786,000,000 | 422,000,000 | |
Net deferred gains or losses, net of tax, recorded in AOCI are expected to be reclassified into earnings | 225,000,000 | ||
Fair Value Hedging | Interest rate swap | |||
Derivative | |||
Notional amount | $ 750,000,000 | ||
Total collateral | |||
Derivative | |||
Derivatives | 1,100,000,000 | 894,000,000 | |
Derivatives | $ 454,000,000 | $ 347,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Notional Amounts and Fair Values for All Derivative Instruments Included in the Condensed Consolidated Balance Sheets (Details) - USD ($) | Sep. 30, 2020 | Sep. 29, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value | |||
Derivative Assets | $ 3,222,000,000 | $ 1,673,000,000 | |
Derivative Liabilities | 1,118,000,000 | 741,000,000 | |
Amount of variation margin payment applied to derivative asset contracts | 1,200,000,000 | 623,000,000 | |
Amount of variation margin payment applied to derivative liability contracts | 1,300,000,000 | 488,000,000 | |
Fair Value Hedging | Interest rate swap | |||
Derivatives, Fair Value | |||
Notional Amount | $ 750,000,000 | ||
Designated as Hedging Instrument | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | |||
Derivatives, Fair Value | |||
Derivative Assets | 846,000,000 | 508,000,000 | |
Derivative Liabilities | 1,000,000 | 2,000,000 | |
Designated as Hedging Instrument | Fair Value Hedging | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | |||
Derivatives, Fair Value | |||
Derivative Assets | 581,000,000 | 393,000,000 | |
Derivative Liabilities | 0 | 0 | |
Designated as Hedging Instrument | Fair Value Hedging | Interest rate swap | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Long-term debt | |||
Derivatives, Fair Value | |||
Notional Amount | 1,955,000,000 | 2,705,000,000 | |
Derivative Assets | 581,000,000 | 393,000,000 | |
Derivative Liabilities | 0 | 0 | |
Designated as Hedging Instrument | Cash Flow Hedging | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | |||
Derivatives, Fair Value | |||
Derivative Assets | 265,000,000 | 115,000,000 | |
Derivative Liabilities | 1,000,000 | 2,000,000 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Commercial and industrial loans | |||
Derivatives, Fair Value | |||
Notional Amount | 8,000,000,000 | 8,000,000,000 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 1,000,000 | 2,000,000 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate floor | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Commercial and industrial loans | |||
Derivatives, Fair Value | |||
Notional Amount | 3,000,000,000 | 3,000,000,000 | |
Derivative Assets | 265,000,000 | 115,000,000 | |
Derivative Liabilities | 0 | 0 | |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value | |||
Derivative Assets | 2,376,000,000 | 1,165,000,000 | |
Derivative Liabilities | 1,117,000,000 | 739,000,000 | |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | |||
Derivatives, Fair Value | |||
Derivative Assets | 233,000,000 | 132,000,000 | |
Derivative Liabilities | 200,000,000 | 175,000,000 | |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest rate swap | |||
Derivatives, Fair Value | |||
Notional Amount | 750,000,000 | ||
Derivative Assets | 0 | ||
Derivative Liabilities | 0 | ||
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest rate contracts | |||
Derivatives, Fair Value | |||
Notional Amount | 12,000,000,000 | ||
Derivative Assets | 1,000,000 | ||
Derivative Liabilities | 1,000,000 | ||
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest rate contracts | MSR portfolio | |||
Derivatives, Fair Value | |||
Notional Amount | 6,560,000,000 | 6,420,000,000 | |
Derivative Assets | 227,000,000 | 131,000,000 | |
Derivative Liabilities | 1,000,000 | 2,000,000 | |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Forward contracts related to residential mortgage loans held for sale | Loans held for sale | |||
Derivatives, Fair Value | |||
Notional Amount | 3,087,000,000 | 2,901,000,000 | |
Derivative Assets | 2,000,000 | 1,000,000 | |
Derivative Liabilities | 10,000,000 | 5,000,000 | |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Swap | |||
Derivatives, Fair Value | |||
Notional Amount | 3,280,000,000 | 3,082,000,000 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | 188,000,000 | 163,000,000 | |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Foreign exchange contracts | |||
Derivatives, Fair Value | |||
Notional Amount | 169,000,000 | 195,000,000 | |
Derivative Assets | 3,000,000 | 0 | |
Derivative Liabilities | 0 | 5,000,000 | |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Commercial loan trading | |||
Derivatives, Fair Value | |||
Notional Amount | 6,000,000 | ||
Derivative Assets | 0 | ||
Derivative Liabilities | 0 | ||
Not Designated as Hedging Instrument | Customer Accommodation | |||
Derivatives, Fair Value | |||
Derivative Assets | 2,143,000,000 | 1,033,000,000 | |
Derivative Liabilities | 917,000,000 | 564,000,000 | |
Not Designated as Hedging Instrument | Customer Accommodation | Interest rate contracts | |||
Derivatives, Fair Value | |||
Notional Amount | 79,286,000,000 | 73,327,000,000 | |
Derivative Assets | 1,399,000,000 | 579,000,000 | |
Derivative Liabilities | 293,000,000 | 148,000,000 | |
Amount of variation margin payment applied to derivative asset contracts | 50,000,000 | 40,000,000 | |
Amount of variation margin payment applied to derivative liability contracts | 1,211,000,000 | 493,000,000 | |
Not Designated as Hedging Instrument | Customer Accommodation | Foreign exchange contracts | |||
Derivatives, Fair Value | |||
Notional Amount | 13,154,000,000 | 14,144,000,000 | |
Derivative Assets | 176,000,000 | 165,000,000 | |
Derivative Liabilities | 136,000,000 | 146,000,000 | |
Not Designated as Hedging Instrument | Customer Accommodation | Interest rate lock commitments | |||
Derivatives, Fair Value | |||
Notional Amount | 3,044,000,000 | 907,000,000 | |
Derivative Assets | 85,000,000 | 18,000,000 | |
Derivative Liabilities | 0 | 0 | |
Not Designated as Hedging Instrument | Customer Accommodation | Commodity contracts | |||
Derivatives, Fair Value | |||
Notional Amount | 7,441,000,000 | 8,525,000,000 | |
Derivative Assets | 483,000,000 | 271,000,000 | |
Derivative Liabilities | 488,000,000 | 270,000,000 | |
Not Designated as Hedging Instrument | Customer Accommodation | TBA securities | |||
Derivatives, Fair Value | |||
Notional Amount | 67,000,000 | 50,000,000 | |
Derivative Assets | 0 | 0 | |
Derivative Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Change in the Fair Value for Interest Rate Contracts and the Related Hedged Items (Details) - Fair Value Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Long-term debt | ||||
Derivatives, Fair Value | ||||
Carrying amount of the hedged items | $ 2,531 | $ 2,531 | ||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | 588 | 588 | ||
Interest rate contracts | Interest on long-term debt | ||||
Derivatives, Fair Value | ||||
Change in fair value of interest rate swaps hedging long- term debt | (39) | $ 75 | 187 | $ 219 |
Change in fair value of hedged long-term debt attributable to the risk being hedged | $ 39 | $ (74) | $ (186) | $ (214) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges (Details) - Cash Flow Hedging - Interest Income (Expense) Net - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pre-tax net gains recognized in OCI | $ 1 | $ 105 | $ 625 | $ 456 |
Amount of pre-tax net gains reclassified from OCI into net income | $ 72 | $ 5 | $ 165 | $ 2 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Net Gains (Losses) Recorded in the Condensed Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used for Risk Management and Other Business Purposes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (12) | $ 130 | $ 348 | $ 308 |
Interest rate contracts | Mortgage banking net revenue | Forward contracts | Residential mortgages held for sale | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 7 | 11 | (4) | 6 |
Interest rate contracts | Mortgage banking net revenue | MSR portfolio | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (12) | 130 | 348 | 308 |
Foreign exchange contracts | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (3) | 2 | 4 | (3) |
Equity contracts | Other noninterest income | Swap | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (22) | $ (11) | $ (73) | $ (63) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Risk Ratings of the Notional Amount of Risk Participation Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 3,521 | $ 3,943 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 3,124 | 3,841 |
Special mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 265 | 86 |
Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 132 | $ 16 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (12) | $ 130 | $ 348 | $ 308 |
Interest rate contracts | Customer contracts | Commercial banking revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 5 | 12 | 31 | 30 |
Interest rate contracts | Credit losses | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (1) | 0 | (1) | 0 |
Interest rate contracts | Fair value adjustment | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 1 | (5) | (33) | (18) |
Interest rate contracts | Interest rate lock commitments | Mortgage banking net revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 54 | 50 | 237 | 108 |
Commodity contracts | Customer contracts | Commercial banking revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 4 | 3 | 10 | 6 |
Commodity contracts | Credit losses | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 0 | (1) | 0 |
Commodity contracts | Fair value adjustment | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (1) | 0 | (2) | 0 |
Foreign exchange contracts | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (3) | 2 | 4 | (3) |
Foreign exchange contracts | Customer contracts | Commercial banking revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 14 | 12 | 40 | 36 |
Foreign exchange contracts | Customer contracts | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (6) | 7 | (3) | 15 |
Foreign exchange contracts | Fair value adjustment | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 1 | $ 0 | $ (1) | $ 0 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Offsetting Derivative Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Recognized in the Condensed Consolidated Balance Sheets, Derivatives | $ 3,137 | $ 1,655 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Derivatives | (698) | (417) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral | (795) | (504) |
Net Amount, Derivatives | 1,644 | 734 |
Recognized in the Condensed Consolidated Balance Sheets, Total assets | 3,137 | 1,655 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Derivatives, Total assets | (698) | (417) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral, Total assets | (795) | (504) |
Net Amount, Total assets | 1,644 | 734 |
Liabilities: | ||
Recognized in the Condensed Consolidated Balance Sheets, Derivatives | 1,118 | 741 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Derivatives | (698) | (417) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral | (159) | (97) |
Net Amount | 261 | 227 |
Recognized in the Condensed Consolidated Balance Sheets, Total liabilities | 1,118 | 741 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Derivatives, Total liabilities | (698) | (417) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral, Total liabilities | (159) | (97) |
Net Amount, Total liabilities | $ 261 | $ 227 |
Other Short-Term Borrowings (De
Other Short-Term Borrowings (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Short-term Debt [Abstract] | ||
Securities sold under repurchase agreements | $ 659 | $ 469 |
Derivative collateral | 487 | 542 |
Other secured borrowings | 50 | 0 |
Other short-term borrowings | $ 1,196 | $ 1,011 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | May 05, 2020 | Jan. 31, 2020 |
Debt Instrument | ||
Redemption price percentage | 100.00% | 100.00% |
Senior Notes | ||
Debt Instrument | ||
Principal amount | $ 1,250,000,000 | $ 1,250,000,000 |
Senior Notes | 1.80% Senior Fixed-Rate Notes | ||
Debt Instrument | ||
Principal amount | $ 650,000,000 | |
Interest rate | 1.80% | |
Debt term | 3 years | |
Senior Notes | 2.25% Senior Fixed-Rate Notes | ||
Debt Instrument | ||
Principal amount | $ 600,000,000 | |
Interest rate | 2.25% | |
Debt term | 7 years | |
Senior Notes | 1.625% Senior Fixed-Rate Notes | ||
Debt Instrument | ||
Principal amount | $ 500,000,000 | |
Interest rate | 1.625% | |
Debt term | 3 years | |
Senior Notes | 1.625% Senior Fixed-Rate Notes | Treasury Rate | ||
Debt Instrument | ||
Basis spread on variable rate (as a percent) | 0.25% | |
Senior Notes | 2.55% Senior Fixed-Rate Notes | ||
Debt Instrument | ||
Principal amount | $ 750,000,000 | |
Interest rate | 2.55% | |
Debt term | 7 years | |
Senior Notes | 2.55% Senior Fixed-Rate Notes | Treasury Rate | ||
Debt Instrument | ||
Basis spread on variable rate (as a percent) | 0.35% |
Capital Actions (Details)
Capital Actions (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Equity [Abstract] | |||
Number of shares issued in public offering | 350,000 | ||
Class of Stock [Line Items] | |||
Proceeds from issuance of shares in public offering | $ 346 | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 25,000 | $ 25,000 | |
Series L Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, issued (in shares) | 14,000 | ||
Preferred stock, dividend rate | 4.50% | ||
Preferred stock, liquidation preference per share (in dollars per share) | $ 25,000 | ||
Preferred stock, redemption, percentage | 100.00% | ||
Series L Preferred Stock | Treasury Rate | |||
Class of Stock [Line Items] | |||
Preferred stock, basis spread on variable rate (as a percent) | 4.215% |
Commitments, Contingent Liabi_3
Commitments, Contingent Liabilities and Guarantees - Summary of Significant Commitments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments to extend credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 73,903 | $ 75,696 |
Forward contracts related to residential mortgage loans held for sale | ||
Long-term Purchase Commitment | ||
Commitments | 3,087 | 2,901 |
Letters of credit | ||
Long-term Purchase Commitment | ||
Commitments | 1,900 | 2,137 |
Purchase obligations | ||
Long-term Purchase Commitment | ||
Commitments | 132 | 113 |
Capital commitments for private equity investments | ||
Long-term Purchase Commitment | ||
Commitments | 86 | 75 |
Capital expenditures | ||
Long-term Purchase Commitment | ||
Commitments | $ 80 | $ 84 |
Commitments, Contingent Liabi_4
Commitments, Contingent Liabilities and Guarantees - Additional Information (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Jun. 30, 2018 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | |
Loss Contingencies | ||||||||||||
Letters of credit | $ 1,900,000,000 | $ 1,900,000,000 | $ 2,137,000,000 | |||||||||
Margin account balance held by the brokerage clearing agent | 12,000,000 | 12,000,000 | 12,000,000 | |||||||||
Visa | ||||||||||||
Loss Contingencies | ||||||||||||
Fair value of mortgage representation and warranty provisions | $ 188,000,000 | $ 188,000,000 | 163,000,000 | |||||||||
Visa IPO, shares of Visa's Class B common stock received | 10.1 | 10.1 | ||||||||||
Visa Class B shares carryover basis | $ 0 | $ 0 | ||||||||||
Escrow deposit | 3,000,000,000 | $ 300,000,000 | 3,000,000,000 | $ 300,000,000 | $ 600,000,000 | $ 450,000,000 | $ 150,000,000 | $ 1,565,000,000 | $ 400,000,000 | $ 800,000,000 | $ 500,000,000 | |
Residential mortgage loans | ||||||||||||
Loss Contingencies | ||||||||||||
Fair value of mortgage representation and warranty provisions | 9,000,000 | 9,000,000 | ||||||||||
Repurchased outstanding principal | 6,000,000 | 7,000,000 | 19,000,000 | 20,000,000 | ||||||||
Repurchase demand request | 8,000,000 | $ 10,000,000 | 27,000,000 | $ 38,000,000 | ||||||||
Outstanding repurchase demand inventory | 3,000,000 | 3,000,000 | 6,000,000 | |||||||||
Secured Debt | ||||||||||||
Loss Contingencies | ||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62,000,000 | 62,000,000 | 62,000,000 | |||||||||
Standby Letters of Credit | ||||||||||||
Loss Contingencies | ||||||||||||
Reserve for unfunded commitments | $ 32,000,000 | $ 32,000,000 | $ 20,000,000 | |||||||||
Standby letters of credit as a percentage of total letters of credit | 99.00% | 99.00% | 99.00% | |||||||||
Standby Letters of Credit | Secured Debt | ||||||||||||
Loss Contingencies | ||||||||||||
Standby letters of credit as a percentage of total letters of credit | 67.00% | 67.00% | 66.00% | |||||||||
Variable Rate Demand Note | ||||||||||||
Loss Contingencies | ||||||||||||
Total variable rate demand notes | $ 405,000,000 | $ 405,000,000 | $ 449,000,000 | |||||||||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | 405,000,000 | 405,000,000 | 445,000,000 | |||||||||
Letters of credit issued related to variable rate demand notes | 161,000,000 | 161,000,000 | 187,000,000 | |||||||||
Letters of credit | 0 | 0 | 3,000,000 | |||||||||
Variable Rate Demand Note | Trading Securities | ||||||||||||
Loss Contingencies | ||||||||||||
Total variable rate demand notes | 0 | 0 | 3,000,000 | |||||||||
Other Liabilities | ||||||||||||
Loss Contingencies | ||||||||||||
Reserve for unfunded commitments | 182,000,000 | 182,000,000 | 144,000,000 | |||||||||
Other Liabilities | Residential mortgage loans | ||||||||||||
Loss Contingencies | ||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | $ 7,000,000 | $ 7,000,000 | $ 6,000,000 |
Commitments, Contingent Liabi_5
Commitments, Contingent Liabilities and Guarantees - Risk Rating Under the Risk Rating System (Details) - Commitments to extend credit - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Line of Credit Facility | ||
Commitments | $ 73,903 | $ 75,696 |
Pass | ||
Line of Credit Facility | ||
Commitments | 70,735 | 74,654 |
Special mention | ||
Line of Credit Facility | ||
Commitments | 2,165 | 633 |
Substandard | ||
Line of Credit Facility | ||
Commitments | 1,003 | 408 |
Doubtful | ||
Line of Credit Facility | ||
Commitments | $ 0 | $ 1 |
Commitments, Contingent Liabi_6
Commitments, Contingent Liabilities and Guarantees - Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party (Details) - Letters of credit $ in Millions | Sep. 30, 2020USD ($) |
Line of Credit Facility | |
Commitments | $ 1,900 |
Less than 1 year | |
Line of Credit Facility | |
Commitments | 1,014 |
Less than 1 year | Commercial | |
Line of Credit Facility | |
Commitments | 3 |
1 - 5 years | |
Line of Credit Facility | |
Commitments | 884 |
1 - 5 years | Commercial | |
Line of Credit Facility | |
Commitments | 2 |
Over 5 years | |
Line of Credit Facility | |
Commitments | $ 2 |
Commitments, Contingent Liabi_7
Commitments, Contingent Liabilities and Guarantees - Letters of Credit (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 1,900 | $ 2,137 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 1,663 | 2,005 |
Special mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 102 | 20 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 135 | 111 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 0 | $ 1 |
Commitments, Contingent Liabi_8
Commitments, Contingent Liabilities and Guarantees - Visa Funding and Bancorp Cash Payments (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Sep. 30, 2020 | |
Visa Funding | |||||||||
Loss Contingencies | |||||||||
Escrow Deposit | $ 300 | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 |
Bancorp Cash Payment | |||||||||
Loss Contingencies | |||||||||
Cash Payment Amount | $ 12 | $ 26 | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal and Regulatory Proceedi_2
Legal and Regulatory Proceedings (Details) $ in Millions | May 28, 2019USD ($) | Sep. 17, 2018USD ($) | Mar. 27, 2017USD ($)merchant | Aug. 31, 2015USD ($) | Dec. 31, 2013class_action | Sep. 30, 2020USD ($) | Aug. 03, 2012 |
Loss Contingencies | |||||||
Apr percentage allegedly misleading | 120.00% | ||||||
Number of putative class actions filed | class_action | 4 | ||||||
Damages sought | $ 280 | $ 800 | |||||
Amount in excess of amounts reserved | $ 83 | ||||||
Class Action Settlement | |||||||
Loss Contingencies | |||||||
Escrow deposit | $ 46 | ||||||
Number of merchants requesting exclusion | merchant | 8,000 | ||||||
Total payment by all defendants | $ 6,240 | ||||||
Amount awarded to other party, escrow | 5,340 | ||||||
Amount awarded to other party, additional | 900 | ||||||
Escrow funds returned to defendants | $ 700 | ||||||
Class Action Settlement | Minimum | |||||||
Loss Contingencies | |||||||
Percentage escrow funds returned defendants | 15.00% | ||||||
Class Action Settlement | Maximum | |||||||
Loss Contingencies | |||||||
Percentage escrow funds returned defendants | 25.00% | ||||||
Federal Lawsuits | |||||||
Loss Contingencies | |||||||
Number of merchants requesting exclusion | merchant | 500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Applicable income tax expense | $ 165 | $ 140 | $ 228 | $ 483 |
Effective income tax rate | 22.10% | 20.20% | 21.60% | 21.40% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Activity in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), pre-tax activity | $ (156) | $ 595 | $ 2,135 | $ 2,272 |
Other comprehensive income (loss), tax effect | 36 | (138) | (496) | (525) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 22,335 | 20,671 | 21,203 | 16,250 |
Other comprehensive income, net of tax | (120) | 457 | 1,639 | 1,747 |
Ending Balance | 22,951 | 21,404 | 22,951 | 21,404 |
Net unrealized gains on available-for-sale debt securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, pre-tax activity | (42) | 497 | 1,715 | 1,817 |
Other comprehensive income (loss), before reclassifications, tax effect | 10 | (118) | (409) | (430) |
Other comprehensive income (loss), before reclassifications, net activity | (32) | 379 | 1,306 | 1,387 |
Reclassification adjustment, pre-tax activity | (45) | (3) | (45) | (3) |
Reclassification adjustment, tax effect | 11 | 1 | 11 | 1 |
Reclassification adjustment, net activity | (34) | (2) | (34) | (2) |
Other comprehensive income (loss), pre-tax activity | (87) | 494 | 1,670 | 1,814 |
Other comprehensive income (loss), tax effect | 21 | (117) | (398) | (429) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 2,150 | 781 | 812 | (227) |
Other comprehensive income, net of tax | (66) | 377 | 1,272 | 1,385 |
Ending Balance | 2,084 | 1,158 | 2,084 | 1,158 |
Net unrealized gains on cash flow hedge derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, pre-tax activity | 1 | 105 | 625 | 456 |
Other comprehensive income (loss), before reclassifications, tax effect | 0 | (22) | (131) | (95) |
Other comprehensive income (loss), before reclassifications, net activity | 1 | 83 | 494 | 361 |
Reclassification adjustment, pre-tax activity | (72) | (5) | (165) | (2) |
Reclassification adjustment, tax effect | 16 | 1 | 35 | 0 |
Reclassification adjustment, net activity | (56) | (4) | (130) | (2) |
Other comprehensive income (loss), pre-tax activity | (71) | 100 | 460 | 454 |
Other comprehensive income (loss), tax effect | 16 | (21) | (96) | (95) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 841 | 440 | 422 | 160 |
Other comprehensive income, net of tax | (55) | 79 | 364 | 359 |
Ending Balance | 786 | 519 | 786 | 519 |
Defined benefit pension plans, net | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, pre-tax activity | (2) | (2) | ||
Other comprehensive income (loss), before reclassifications, tax effect | 0 | 0 | ||
Other comprehensive income (loss), before reclassifications, net activity | (2) | (2) | ||
Reclassification adjustment, pre-tax activity | 4 | 1 | 7 | 4 |
Reclassification adjustment, tax effect | (1) | 0 | (2) | (1) |
Reclassification adjustment, net activity | 3 | 1 | 5 | 3 |
Other comprehensive income (loss), pre-tax activity | 2 | 1 | 5 | 4 |
Other comprehensive income (loss), tax effect | (1) | 0 | (2) | (1) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (40) | (43) | (42) | (45) |
Other comprehensive income, net of tax | 1 | 1 | 3 | 3 |
Ending Balance | (39) | (42) | (39) | (42) |
AOCI | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 2,951 | 1,178 | 1,192 | (112) |
Ending Balance | $ 2,831 | $ 1,635 | $ 2,831 | $ 1,635 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Securities gains, net | [1] | $ 51 | $ 5 | $ 48 | $ 30 |
Interest and fees on loans and leases | 1,047 | 1,320 | 3,397 | 3,799 | |
Compensation and benefits | [1] | 637 | 584 | 1,911 | 1,843 |
Income before income taxes | 746 | 689 | 1,051 | 2,261 | |
Applicable income tax expense | 165 | 140 | 228 | 483 | |
Net income | 581 | 549 | 823 | 1,778 | |
Reclassification out of AOCI | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Net income | 87 | 5 | 159 | 1 | |
Reclassification out of AOCI | Net unrealized gains on available-for-sale debt securities | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Securities gains, net | 45 | 3 | 45 | 3 | |
Income before income taxes | 45 | 3 | 45 | 3 | |
Applicable income tax expense | (11) | (1) | (11) | (1) | |
Net income | 34 | 2 | 34 | 2 | |
Reclassification out of AOCI | Net unrealized gains on cash flow hedge | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Interest and fees on loans and leases | 72 | 5 | 165 | 2 | |
Income before income taxes | 72 | 5 | 165 | 2 | |
Applicable income tax expense | (16) | (1) | (35) | 0 | |
Net income | 56 | 4 | 130 | 2 | |
Reclassification out of AOCI | Net periodic benefit costs | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Income before income taxes | (4) | (1) | (7) | (4) | |
Applicable income tax expense | 1 | 0 | 2 | 1 | |
Net income | (3) | (1) | (5) | (3) | |
Reclassification out of AOCI | Amortization of net actuarial loss | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Compensation and benefits | (2) | (1) | (5) | (4) | |
Reclassification out of AOCI | Settlements | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||
Compensation and benefits | $ (2) | $ 0 | $ (2) | $ 0 | |
[1] | During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications. |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share: | ||||
Net income available to common shareholders | $ 562 | $ 530 | $ 754 | $ 1,718 |
Less: Income allocated to participating securities | 2 | 4 | 3 | 16 |
Net income allocated to common shareholders | $ 560 | $ 526 | $ 751 | $ 1,702 |
Average shares | 715,102,136 | 726,715,542 | 714,477,089 | 708,848,535 |
Earnings per share (in dollars per share) | $ 0.78 | $ 0.72 | $ 1.05 | $ 2.40 |
Earnings Per Diluted Share: | ||||
Net income available to common shareholders | $ 562 | $ 530 | $ 754 | $ 1,718 |
Stock-based awards | 0 | 0 | 0 | 0 |
Less: Income allocated to participating securities | 2 | 4 | 3 | 16 |
Net income allocated to common shareholders | $ 560 | $ 526 | $ 751 | $ 1,702 |
Average shares, stock based awards | 4,000,000 | 9,000,000 | 5,000,000 | 9,000,000 |
Average shares | 718,893,892 | 736,086,399 | 718,942,648 | 718,413,237 |
Earnings per diluted share (in dollars per share) | $ 0.78 | $ 0.71 | $ 1.04 | $ 2.37 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities | 9 | 2 | 9 | 2 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Assets: | ||||
Available-for-sale debt and other securities | [1] | $ 37,425 | $ 36,028 | |
Equity securities | 277 | 564 | ||
Derivative assets | 3,137 | 1,655 | ||
Liabilities: | ||||
Derivative liabilities | 1,118 | 741 | ||
FHLB, restricted stock holdings | 47 | 76 | ||
FRB, restricted stock holdings | 482 | 478 | ||
DTCC, restricted stock holdings | 2 | 2 | ||
Residential Mortgage | ||||
Assets: | ||||
Residential mortgage loans | 174 | 183 | ||
U.S. Treasury and federal agency securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 78 | 75 | ||
Obligations of states and political subdivisions securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 17 | 18 | ||
Asset-backed securities and other debt securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 2,871 | 2,206 | ||
Level 3 | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | $ 24 | |||
Liabilities: | ||||
Derivative liabilities | 9 | |||
Recurring | ||||
Assets: | ||||
Available-for-sale debt and other securities | 36,894 | 35,472 | ||
Trading debt securities | 704 | 297 | ||
Equity securities | 277 | 564 | ||
Residential mortgage loans held for sale | 1,472 | 1,264 | ||
Derivative assets | 3,222 | 1,673 | ||
Total assets | 43,403 | 40,446 | ||
Liabilities: | ||||
Derivative liabilities | 1,118 | 741 | ||
Short positions | 509 | 149 | ||
Total liabilities | 1,627 | 890 | ||
Recurring | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | 2,560 | 1,237 | ||
Liabilities: | ||||
Derivative liabilities | 306 | 157 | ||
Recurring | Foreign exchange contracts | ||||
Assets: | ||||
Derivative assets | 179 | 165 | ||
Liabilities: | ||||
Derivative liabilities | 136 | 151 | ||
Recurring | Equity contracts | ||||
Liabilities: | ||||
Derivative liabilities | 188 | 163 | ||
Recurring | Commodity contracts | ||||
Assets: | ||||
Derivative assets | 483 | 271 | ||
Liabilities: | ||||
Derivative liabilities | 488 | 270 | ||
Recurring | Servicing rights | ||||
Assets: | ||||
Servicing rights | 660 | 993 | ||
Recurring | Residential Mortgage | ||||
Assets: | ||||
Residential mortgage loans | 174 | 183 | ||
Recurring | U.S. Treasury and federal agency securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 78 | 75 | ||
Trading debt securities | 84 | 2 | ||
Liabilities: | ||||
Short positions | 88 | 49 | ||
Recurring | Obligations of states and political subdivisions securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 17 | 18 | ||
Trading debt securities | 39 | 9 | ||
Recurring | Agency mortgage-backed securities | Residential Mortgage | ||||
Assets: | ||||
Available-for-sale debt and other securities | 12,603 | 14,115 | ||
Trading debt securities | 46 | 55 | ||
Recurring | Agency mortgage-backed securities | Commercial | ||||
Assets: | ||||
Available-for-sale debt and other securities | 17,750 | 15,693 | ||
Recurring | Non-agency mortgage-backed securities | Commercial | ||||
Assets: | ||||
Available-for-sale debt and other securities | 3,575 | 3,365 | ||
Recurring | Asset-backed securities and other debt securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 2,871 | 2,206 | ||
Trading debt securities | 535 | 231 | ||
Liabilities: | ||||
Short positions | 421 | 100 | ||
Recurring | Level 1 | ||||
Assets: | ||||
Available-for-sale debt and other securities | 78 | 75 | ||
Trading debt securities | 64 | 2 | ||
Equity securities | 258 | 554 | ||
Residential mortgage loans held for sale | 0 | 0 | ||
Derivative assets | 61 | 38 | ||
Total assets | 461 | 669 | ||
Liabilities: | ||||
Derivative liabilities | 73 | 22 | ||
Short positions | 88 | 49 | ||
Total liabilities | 161 | 71 | ||
Recurring | Level 1 | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | 2 | 1 | ||
Liabilities: | ||||
Derivative liabilities | 10 | 5 | ||
Recurring | Level 1 | Foreign exchange contracts | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Recurring | Level 1 | Equity contracts | ||||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Recurring | Level 1 | Commodity contracts | ||||
Assets: | ||||
Derivative assets | 59 | 37 | ||
Liabilities: | ||||
Derivative liabilities | 63 | 17 | ||
Recurring | Level 1 | Servicing rights | ||||
Assets: | ||||
Servicing rights | 0 | 0 | ||
Recurring | Level 1 | Residential Mortgage | ||||
Assets: | ||||
Residential mortgage loans | 0 | 0 | ||
Recurring | Level 1 | U.S. Treasury and federal agency securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 78 | 75 | ||
Trading debt securities | 64 | 2 | ||
Liabilities: | ||||
Short positions | 88 | 49 | ||
Recurring | Level 1 | Obligations of states and political subdivisions securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 0 | 0 | ||
Recurring | Level 1 | Agency mortgage-backed securities | Residential Mortgage | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 0 | 0 | ||
Recurring | Level 1 | Agency mortgage-backed securities | Commercial | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Recurring | Level 1 | Non-agency mortgage-backed securities | Commercial | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Recurring | Level 1 | Asset-backed securities and other debt securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 0 | 0 | ||
Liabilities: | ||||
Short positions | 0 | 0 | ||
Recurring | Level 2 | ||||
Assets: | ||||
Available-for-sale debt and other securities | 36,816 | 35,397 | ||
Trading debt securities | 640 | 295 | ||
Equity securities | 19 | 10 | ||
Residential mortgage loans held for sale | 1,472 | 1,264 | ||
Derivative assets | 3,069 | 1,617 | ||
Total assets | 42,016 | 38,583 | ||
Liabilities: | ||||
Derivative liabilities | 849 | 548 | ||
Short positions | 421 | 100 | ||
Total liabilities | 1,270 | 648 | ||
Recurring | Level 2 | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | 2,466 | 1,218 | ||
Liabilities: | ||||
Derivative liabilities | 288 | 144 | ||
Recurring | Level 2 | Foreign exchange contracts | ||||
Assets: | ||||
Derivative assets | 179 | 165 | ||
Liabilities: | ||||
Derivative liabilities | 136 | 151 | ||
Recurring | Level 2 | Equity contracts | ||||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Recurring | Level 2 | Commodity contracts | ||||
Assets: | ||||
Derivative assets | 424 | 234 | ||
Liabilities: | ||||
Derivative liabilities | 425 | 253 | ||
Recurring | Level 2 | Servicing rights | ||||
Assets: | ||||
Servicing rights | 0 | 0 | ||
Recurring | Level 2 | Residential Mortgage | ||||
Assets: | ||||
Residential mortgage loans | 0 | 0 | ||
Recurring | Level 2 | U.S. Treasury and federal agency securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 20 | 0 | ||
Liabilities: | ||||
Short positions | 0 | 0 | ||
Recurring | Level 2 | Obligations of states and political subdivisions securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 17 | 18 | ||
Trading debt securities | 39 | 9 | ||
Recurring | Level 2 | Agency mortgage-backed securities | Residential Mortgage | ||||
Assets: | ||||
Available-for-sale debt and other securities | 12,603 | 14,115 | ||
Trading debt securities | 46 | 55 | ||
Recurring | Level 2 | Agency mortgage-backed securities | Commercial | ||||
Assets: | ||||
Available-for-sale debt and other securities | 17,750 | 15,693 | ||
Recurring | Level 2 | Non-agency mortgage-backed securities | Commercial | ||||
Assets: | ||||
Available-for-sale debt and other securities | 3,575 | 3,365 | ||
Recurring | Level 2 | Asset-backed securities and other debt securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 2,871 | 2,206 | ||
Trading debt securities | 535 | 231 | ||
Liabilities: | ||||
Short positions | 421 | 100 | ||
Recurring | Level 3 | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 0 | 0 | ||
Equity securities | 0 | 0 | ||
Residential mortgage loans held for sale | 0 | 0 | ||
Derivative assets | 92 | 18 | ||
Total assets | 926 | 1,194 | ||
Liabilities: | ||||
Derivative liabilities | 196 | 171 | ||
Short positions | 0 | 0 | ||
Total liabilities | 196 | 171 | ||
Recurring | Level 3 | Interest rate contracts | ||||
Assets: | ||||
Derivative assets | 92 | 18 | 24 | |
Liabilities: | ||||
Derivative liabilities | 8 | 8 | $ 9 | |
Recurring | Level 3 | Foreign exchange contracts | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Recurring | Level 3 | Equity contracts | ||||
Liabilities: | ||||
Derivative liabilities | 188 | 163 | ||
Recurring | Level 3 | Commodity contracts | ||||
Assets: | ||||
Derivative assets | 0 | 0 | ||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Recurring | Level 3 | Servicing rights | ||||
Assets: | ||||
Servicing rights | 660 | 993 | ||
Recurring | Level 3 | Residential Mortgage | ||||
Assets: | ||||
Residential mortgage loans | 174 | 183 | ||
Recurring | Level 3 | U.S. Treasury and federal agency securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 0 | 0 | ||
Liabilities: | ||||
Short positions | 0 | 0 | ||
Recurring | Level 3 | Obligations of states and political subdivisions securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 0 | 0 | ||
Recurring | Level 3 | Agency mortgage-backed securities | Residential Mortgage | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 0 | 0 | ||
Recurring | Level 3 | Agency mortgage-backed securities | Commercial | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Recurring | Level 3 | Non-agency mortgage-backed securities | Commercial | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Recurring | Level 3 | Asset-backed securities and other debt securities | ||||
Assets: | ||||
Available-for-sale debt and other securities | 0 | 0 | ||
Trading debt securities | 0 | 0 | ||
Liabilities: | ||||
Short positions | $ 0 | $ 0 | ||
[1] | Amortized cost of $34,693 and $34,966 at September 30, 2020 and December 31, 2019, respectively. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Net fair value of the interest rate lock commitments | $ 85,000,000 | $ 85,000,000 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bps | 15,000,000 | 15,000,000 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bps | 29,000,000 | 29,000,000 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bps | 16,000,000 | 16,000,000 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bps | 35,000,000 | 35,000,000 | |||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 9,000,000 | 9,000,000 | |||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 17,000,000 | 17,000,000 | |||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 9,000,000 | 9,000,000 | |||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 17,000,000 | 17,000,000 | |||
Private equity, observable price change adjustment | 0 | $ 0 | 0 | $ 11,000,000 | |
Private equity, cumulative observable price change | 47,000,000 | 47,000,000 | |||
Private equity, impairment | 0 | 0 | 9,000,000 | 5,000,000 | |
Private equity, cumulative impairment | 25,000,000 | 25,000,000 | |||
Residential Mortgage | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair value changes included in earnings for instruments for which the fair value option was elected | 77,000,000 | 35,000,000 | |||
FVO valuation adjustments related to instrument-specific credit risk | 1,000,000 | $ 1,000,000 | |||
Commercial loans held for sale | Commercial | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair value adjustment | 1,000,000 | (4,000,000) | |||
Other Real Estate Owned | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair value adjustment | (1,000,000) | (4,000,000) | (3,000,000) | ||
Other Real Estate Owned | Transfer | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair value gains (losses) | $ (2,000,000) | $ (1,000,000) | $ (3,000,000) | $ (2,000,000) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation | |||||
Derivative assets | $ 3,137 | $ 3,137 | $ 1,655 | ||
Derivative liabilities | 1,118 | 1,118 | $ 741 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Beginning balance | 767 | $ 1,085 | 1,023 | $ 991 | |
Included in earnings | (38) | (131) | (349) | (370) | |
Purchases/originations/acquisitions | 55 | 41 | 190 | 385 | |
Settlements | (64) | (35) | (173) | (71) | |
Transfers into Level 3 | 10 | 3 | 39 | 28 | |
Ending balance | 730 | 963 | 730 | 963 | |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 37 | (118) | (264) | (368) | |
Interest rate contracts | Level 3 | |||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation | |||||
Derivative assets | 24 | 24 | |||
Derivative liabilities | 9 | 9 | |||
Residential Mortgage Loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Beginning balance | 185 | 192 | 183 | 179 | |
Included in earnings | 0 | 0 | 2 | (1) | |
Purchases/originations/acquisitions | 0 | 0 | 0 | 0 | |
Settlements | (21) | (11) | (50) | (22) | |
Transfers into Level 3 | 10 | 3 | 39 | 28 | |
Ending balance | 174 | 184 | 174 | 184 | |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 0 | 0 | 2 | (1) | |
Servicing Rights | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Beginning balance | 676 | 1,039 | 993 | 938 | |
Included in earnings | (71) | (171) | (519) | (416) | |
Purchases/originations/acquisitions | 55 | 42 | 186 | 388 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 660 | 910 | 660 | 910 | |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (2) | (131) | (281) | (329) | |
Interest rate contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Beginning balance | 89 | 5 | 10 | (1) | |
Included in earnings | 55 | 51 | 241 | 110 | |
Purchases/originations/acquisitions | 0 | (1) | 4 | (3) | |
Settlements | (60) | (40) | (171) | (91) | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 84 | 15 | 84 | 15 | |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 61 | 24 | 88 | 25 | |
Equity Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Beginning balance | (183) | (151) | (163) | (125) | |
Included in earnings | (22) | (11) | (73) | (63) | |
Purchases/originations/acquisitions | 0 | 0 | 0 | 0 | |
Settlements | 17 | 16 | 48 | 42 | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | (188) | (146) | (188) | (146) | |
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | $ (22) | $ (11) | $ (73) | $ (63) |
Fair Value Measurements - Total
Fair Value Measurements - Total Gains and Losses Included in Earnings for Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | $ (38) | $ (131) | $ (349) | $ (370) |
Mortgage banking net revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | (17) | (121) | (278) | (309) |
Commercial banking revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | 1 | 1 | 1 | 2 |
Other noninterest income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | $ (22) | $ (11) | $ (72) | $ (63) |
Fair Value Measurements - Tot_2
Fair Value Measurements - Total Gains and Losses Included in Earning Attributable to Changes in Unrealized Gains and Losses Related to Level 3 Assets and Liabilities Still Held at Year End (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | $ 37 | $ (118) | $ (264) | $ (368) |
Mortgage banking net revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | 58 | (109) | (193) | (307) |
Commercial banking revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | 1 | 2 | 1 | 2 |
Other noninterest income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | $ (22) | $ (11) | $ (72) | $ (63) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative assets | $ 3,137 | $ 1,655 | |
Derivative liabilities | 1,118 | $ 741 | |
Residential mortgage loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loans measured at FV | $ 174 | $ 184 | |
Residential mortgage loans | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | (8.60%) | (6.80%) | |
Credit risk factor | 0.00% | 0.00% | |
Residential mortgage loans | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | 11.00% | 6.90% | |
Credit risk factor | 26.00% | 31.80% | |
Residential mortgage loans | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | 1.10% | (0.20%) | |
Credit risk factor | 0.40% | 0.50% | |
Servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Servicing rights | $ 660 | $ 910 | |
Servicing rights | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 0.50% | 0.50% | |
OAS Speed Assumption, OAS (bps) | 536 | 484 | |
Servicing rights | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 99.90% | 97.00% | |
OAS Speed Assumption, OAS (bps) | 1,537 | 1,513 | |
Servicing rights | Fixed | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 18.20% | 15.40% | |
OAS Speed Assumption, OAS (bps) | 918 | 619 | |
Servicing rights | Adjustable | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 21.20% | 23.40% | |
OAS Speed Assumption, OAS (bps) | 938 | 914 | |
IRLCs, net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative assets | $ 85 | $ 24 | |
IRLCs, net | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 7.20% | 5.70% | |
IRLCs, net | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 97.20% | 96.70% | |
IRLCs, net | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 61.40% | 76.90% | |
Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative liabilities | $ (188) | $ (146) | |
Swap | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Sep. 30, 2022 | Jun. 30, 2021 | |
Swap | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Jun. 30, 2024 | Dec. 31, 2023 | |
Swap | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Mar. 31, 2023 | Mar. 31, 2022 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | $ 992 | $ 193 | $ 992 | $ 193 |
Total (Losses) Gains | (62) | (15) | (287) | (79) |
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 31 | 6 | 31 | 6 |
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 961 | 187 | 961 | 187 |
Consumer | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 197 | 197 | ||
Total (Losses) Gains | (1) | 2 | ||
Consumer | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | ||
Consumer | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | ||
Consumer | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 197 | 197 | ||
Commercial loans held for sale | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 48 | 48 | ||
Total (Losses) Gains | 1 | (4) | ||
Commercial loans held for sale | Commercial | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | ||
Commercial loans held for sale | Commercial | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 31 | 31 | ||
Commercial loans held for sale | Commercial | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 17 | 17 | ||
Commercial and industrial loans | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 534 | 116 | 534 | 116 |
Total (Losses) Gains | (39) | (11) | (182) | (45) |
Commercial and industrial loans | Commercial | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Commercial and industrial loans | Commercial | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Commercial and industrial loans | Commercial | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 534 | 116 | 534 | 116 |
Commercial mortgage loans | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 82 | 12 | 82 | 12 |
Total (Losses) Gains | (12) | 0 | (45) | 0 |
Commercial mortgage loans | Commercial | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Commercial mortgage loans | Commercial | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Commercial mortgage loans | Commercial | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 82 | 12 | 82 | 12 |
Commercial leases | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 12 | 18 | 12 | 18 |
Total (Losses) Gains | 2 | 2 | (14) | (9) |
Commercial leases | Commercial | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Commercial leases | Commercial | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Commercial leases | Commercial | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 12 | 18 | 12 | 18 |
OREO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 20 | 16 | 20 | 16 |
Total (Losses) Gains | (2) | (2) | (7) | (5) |
OREO | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
OREO | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
OREO | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 20 | 16 | 20 | 16 |
Property and equipment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 21 | 23 | 21 | 23 |
Total (Losses) Gains | (11) | (4) | (25) | (26) |
Property and equipment | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Property and equipment | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Property and equipment | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 21 | 23 | 21 | 23 |
Operating lease equipment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 9 | 9 | ||
Total (Losses) Gains | 0 | (3) | ||
Operating lease equipment | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | ||
Operating lease equipment | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | ||
Operating lease equipment | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 9 | 9 | ||
Private equity investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 69 | 8 | 69 | 8 |
Total (Losses) Gains | 0 | 0 | (9) | 6 |
Private equity investments | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Private equity investments | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 6 | 0 | 6 |
Private equity investments | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | $ 69 | $ 2 | $ 69 | $ 2 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Nonrecurring Basis) (Details) - Nonrecurring - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | $ 992 | $ 193 |
Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 197 | |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 48 | |
Commercial and industrial loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 534 | 116 |
Commercial mortgage loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 82 | 12 |
Commercial leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 12 | 18 |
OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 20 | 16 |
Property and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 21 | 23 |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 69 | 8 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 961 | 187 |
Level 3 | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 197 | |
Level 3 | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 17 | |
Level 3 | Commercial and industrial loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 534 | 116 |
Level 3 | Commercial mortgage loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 82 | 12 |
Level 3 | Commercial leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 12 | 18 |
Level 3 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 20 | 16 |
Level 3 | Property and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 21 | 23 |
Level 3 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 69 | 2 |
Level 3 | Comparable Company Analysis | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 16 | |
Level 3 | Comparable Company Analysis | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 69 | 2 |
Level 3 | Appraised Value | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 197 | |
Level 3 | Appraised Value | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 1 | |
Level 3 | Appraised Value | Commercial and industrial loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 534 | 116 |
Level 3 | Appraised Value | Commercial mortgage loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 82 | 12 |
Level 3 | Appraised Value | Commercial leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 12 | 18 |
Level 3 | Appraised Value | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 20 | 16 |
Level 3 | Appraised Value | Property and equipment | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 21 | $ 23 |
Level 3 | Appraised Value | Property and equipment | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | $ 9 |
Fair Value Measurements - Diffe
Fair Value Measurements - Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value (Details) - Residential mortgage loans - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Aggregate fair value | ||
Loans measured at fair value | $ 1,646 | $ 1,447 |
Past due loans of 90 days or more | 3 | 2 |
Non accrual loans | 0 | 1 |
Aggregate unpaid principal balance | ||
Loans measured at fair value | 1,569 | 1,410 |
Past due loans of 90 days or more | 3 | 2 |
Non accrual loans | 0 | 1 |
Difference | ||
Loans measured at fair value | 77 | 37 |
Past due loans of 90 days or more | 0 | 0 |
Non accrual loans | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values for Certain Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Financial assets: | |||
Cash and due from banks | $ 2,996 | $ 3,278 | |
Other short-term investments | [1] | 31,285 | 1,950 |
Held-to-maturity securities | [2] | 15 | 17 |
Loans and leases held for sale | [3] | 2,323 | 1,400 |
Commercial and industrial loans | 51,695 | 50,542 | |
Commercial mortgage loans | 10,878 | 10,963 | |
Commercial construction loans | 5,656 | 5,090 | |
Commercial leases | 3,021 | 3,363 | |
Residential mortgage loans | 16,158 | 16,724 | |
Home equity | 5,455 | 6,083 | |
Indirect secured consumer loans | 12,925 | 11,538 | |
Credit card | 2,087 | 2,532 | |
Other consumer loans | 2,856 | 2,723 | |
Portfolio loans and leases, net | 108,157 | 108,356 | |
Financial liabilities: | |||
Deposits | 156,683 | 127,062 | |
Federal funds purchased | 251 | 260 | |
Other short-term borrowings | 1,196 | 1,011 | |
Long-term debt | [1] | 15,123 | 14,970 |
Net Carrying Amount | |||
Financial assets: | |||
Cash and due from banks | 2,996 | 3,278 | |
Other short-term investments | 31,285 | 1,950 | |
Other securities | 531 | 556 | |
Held-to-maturity securities | 15 | 17 | |
Loans and leases held for sale | 851 | 136 | |
Commercial and industrial loans | 50,673 | 49,981 | |
Commercial mortgage loans | 10,505 | 10,876 | |
Commercial construction loans | 5,551 | 5,045 | |
Commercial leases | 2,988 | 3,346 | |
Residential mortgage loans | 15,687 | 16,468 | |
Home equity | 5,244 | 6,046 | |
Indirect secured consumer loans | 12,797 | 11,485 | |
Credit card | 1,802 | 2,364 | |
Other consumer loans | 2,736 | 2,683 | |
Unallocated ALLL | (121) | ||
Portfolio loans and leases, net | 107,983 | 108,173 | |
Financial liabilities: | |||
Deposits | 156,683 | 127,062 | |
Federal funds purchased | 251 | 260 | |
Other short-term borrowings | 1,196 | 1,011 | |
Long-term debt | 15,123 | 14,970 | |
Total Fair Value | |||
Financial assets: | |||
Cash and due from banks | 2,996 | 3,278 | |
Other short-term investments | 31,285 | 1,950 | |
Other securities | 531 | 556 | |
Held-to-maturity securities | 15 | 17 | |
Loans and leases held for sale | 851 | 136 | |
Commercial and industrial loans | 50,465 | 51,128 | |
Commercial mortgage loans | 10,366 | 10,823 | |
Commercial construction loans | 5,711 | 5,249 | |
Commercial leases | 2,868 | 3,133 | |
Residential mortgage loans | 17,240 | 17,509 | |
Home equity | 5,645 | 6,315 | |
Indirect secured consumer loans | 12,704 | 11,331 | |
Credit card | 1,952 | 2,774 | |
Other consumer loans | 2,941 | 2,866 | |
Unallocated ALLL | 0 | ||
Portfolio loans and leases, net | 109,892 | 111,128 | |
Financial liabilities: | |||
Deposits | 156,697 | 127,059 | |
Federal funds purchased | 251 | 260 | |
Other short-term borrowings | 1,196 | 1,011 | |
Long-term debt | 16,601 | 15,944 | |
Total Fair Value | Level 1 | |||
Financial assets: | |||
Cash and due from banks | 2,996 | 3,278 | |
Other short-term investments | 31,285 | 1,950 | |
Other securities | 0 | 0 | |
Held-to-maturity securities | 0 | 0 | |
Loans and leases held for sale | 0 | 0 | |
Commercial and industrial loans | 0 | 0 | |
Commercial mortgage loans | 0 | 0 | |
Commercial construction loans | 0 | 0 | |
Commercial leases | 0 | 0 | |
Residential mortgage loans | 0 | 0 | |
Home equity | 0 | 0 | |
Indirect secured consumer loans | 0 | 0 | |
Credit card | 0 | 0 | |
Other consumer loans | 0 | 0 | |
Unallocated ALLL | 0 | ||
Portfolio loans and leases, net | 0 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Federal funds purchased | 251 | 260 | |
Other short-term borrowings | 0 | 0 | |
Long-term debt | 15,651 | 15,244 | |
Total Fair Value | Level 2 | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Other short-term investments | 0 | 0 | |
Other securities | 531 | 556 | |
Held-to-maturity securities | 0 | 0 | |
Loans and leases held for sale | 0 | 0 | |
Commercial and industrial loans | 0 | 0 | |
Commercial mortgage loans | 0 | 0 | |
Commercial construction loans | 0 | 0 | |
Commercial leases | 0 | 0 | |
Residential mortgage loans | 0 | 0 | |
Home equity | 0 | 0 | |
Indirect secured consumer loans | 0 | 0 | |
Credit card | 0 | 0 | |
Other consumer loans | 0 | 0 | |
Unallocated ALLL | 0 | ||
Portfolio loans and leases, net | 0 | 0 | |
Financial liabilities: | |||
Deposits | 156,697 | 127,059 | |
Federal funds purchased | 0 | 0 | |
Other short-term borrowings | 1,196 | 1,011 | |
Long-term debt | 950 | 700 | |
Total Fair Value | Level 3 | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Other short-term investments | 0 | 0 | |
Other securities | 0 | 0 | |
Held-to-maturity securities | 15 | 17 | |
Loans and leases held for sale | 851 | 136 | |
Commercial and industrial loans | 50,465 | 51,128 | |
Commercial mortgage loans | 10,366 | 10,823 | |
Commercial construction loans | 5,711 | 5,249 | |
Commercial leases | 2,868 | 3,133 | |
Residential mortgage loans | 17,240 | 17,509 | |
Home equity | 5,645 | 6,315 | |
Indirect secured consumer loans | 12,704 | 11,331 | |
Credit card | 1,952 | 2,774 | |
Other consumer loans | 2,941 | 2,866 | |
Unallocated ALLL | 0 | ||
Portfolio loans and leases, net | 109,892 | 111,128 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Federal funds purchased | 0 | 0 | |
Other short-term borrowings | 0 | 0 | |
Long-term debt | $ 0 | $ 0 | |
[1] | Includes $61 and $74 of other short-term investments, $887 and $1,354 of portfolio loans and leases, $(9) and $(7) of ALLL, $5 and $8 of other assets, $2 and $2 of other liabilities, and $786 and $1,253 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2020 and December 31, 2019, respectively. For further information refer to Note 13. | ||
[2] | Fair value of $15 and $17 at September 30, 2020 and December 31, 2019, respectively. | ||
[3] | Includes $1,472 and $1,264 of residential mortgage loans held for sale measured at fair value at September 30, 2020 and December 31, 2019, respectively. |
Business Segments - Additional
Business Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020unit_segmentunit_center | |
Segment Reporting [Abstract] | |
Number of business | unit_segment | 4 |
Branch Banking | |
Segment Reporting Information | |
Full-service banking centers | unit_center | 1,122 |
Business Segments - Results of
Business Segments - Results of Operations and Average Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Segment Reporting Information | |||||||
Total goodwill | $ 4,261 | $ 4,290 | $ 4,261 | $ 4,290 | $ 4,252 | $ 2,478 | |
Total assets | 201,996 | 171,079 | 201,996 | 171,079 | |||
Net interest income | 1,170 | 1,242 | 3,600 | 3,569 | |||
Provision for (benefit from) credit losses | (15) | 134 | 1,110 | 310 | |||
Net Interest Income After Provision for (Benefit from) Credit Losses | 1,185 | 1,108 | 2,490 | 3,259 | |||
Noninterest Income: | |||||||
Service charges on deposits | [1] | 144 | 143 | 414 | 417 | ||
Wealth and asset management revenue | [1] | 132 | 124 | 387 | 358 | ||
Commercial banking revenue | [1] | 125 | 123 | 387 | 333 | ||
Mortgage banking net revenue | [1] | 76 | 95 | 295 | 214 | ||
Card and processing revenue | [1] | 92 | 94 | 260 | 266 | ||
Leasing business revenue | [1] | 77 | 92 | 207 | 199 | ||
Other noninterest income | [1] | 26 | 64 | 42 | 679 | ||
Securities gains, net | [1] | 51 | 5 | 48 | 30 | ||
Securities losses, net – non-qualifying hedges on MSRs | [1] | (1) | 0 | 3 | 5 | ||
Total noninterest income | [1] | 722 | 740 | 2,043 | 2,501 | ||
Noninterest expense: | |||||||
Compensation and benefits | [1] | 637 | 584 | 1,911 | 1,843 | ||
Technology and communications | [1] | 89 | 100 | 272 | 319 | ||
Net occupancy expense | [1] | 90 | 84 | 254 | 248 | ||
Leasing business expense | [1] | 35 | 40 | 103 | 97 | ||
Equipment expense | [1] | 33 | 33 | 97 | 96 | ||
Card and processing expense | [1] | 29 | 33 | 89 | 98 | ||
Marketing expense | [1] | 23 | 40 | 74 | 117 | ||
Other noninterest expense | 225 | 245 | 682 | 681 | |||
Total noninterest expense | [1] | 1,161 | 1,159 | 3,482 | 3,499 | ||
Income Before Income Taxes | 746 | 689 | 1,051 | 2,261 | |||
Applicable income tax expense (benefit) | 165 | 140 | 228 | 483 | |||
Net Income | 581 | 549 | 823 | 1,778 | |||
Impairment losses on bank premises | 11 | 5 | 25 | 27 | |||
Impairment charges of operating lease equipment | 3 | ||||||
Bank premises and equipment held for sale | 45 | 87 | 45 | 87 | 27 | ||
Impairment losses and termination charges | 1 | 5 | 6 | 12 | |||
General Corporate and Other | |||||||
Segment Reporting Information | |||||||
Total goodwill | 0 | 0 | 0 | 0 | |||
Total assets | 13,564 | (9,217) | 13,564 | (9,217) | |||
Net interest income | 257 | (111) | 321 | (369) | |||
Provision for (benefit from) credit losses | (422) | 8 | 64 | 12 | |||
Net Interest Income After Provision for (Benefit from) Credit Losses | 679 | (119) | 257 | (381) | |||
Noninterest Income: | |||||||
Service charges on deposits | 0 | (1) | 0 | (2) | |||
Wealth and asset management revenue | 0 | 0 | 0 | 0 | |||
Commercial banking revenue | (1) | 0 | (3) | 0 | |||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||
Card and processing revenue | 3 | 3 | 10 | 3 | |||
Leasing business revenue | 0 | 0 | 0 | 0 | |||
Other noninterest income | (7) | 10 | (37) | 542 | |||
Securities gains, net | 51 | 5 | 48 | 30 | |||
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | 0 | 0 | |||
Total noninterest income | 46 | 17 | 18 | 573 | |||
Noninterest expense: | |||||||
Compensation and benefits | 237 | 219 | 688 | 742 | |||
Technology and communications | 83 | 94 | 253 | 301 | |||
Net occupancy expense | 33 | 27 | 84 | 79 | |||
Leasing business expense | 0 | 0 | 0 | 0 | |||
Equipment expense | 17 | 14 | 46 | 42 | |||
Card and processing expense | (1) | (1) | (3) | (1) | |||
Marketing expense | 14 | 18 | 41 | 56 | |||
Other noninterest expense | (324) | (312) | (988) | (919) | |||
Total noninterest expense | 59 | 59 | 121 | 300 | |||
Income Before Income Taxes | 666 | (161) | 154 | (108) | |||
Applicable income tax expense (benefit) | 158 | (24) | 71 | 21 | |||
Net Income | 508 | (137) | 83 | (129) | |||
Bank premises and equipment held for sale | 45 | 87 | 45 | 87 | |||
Eliminations | |||||||
Segment Reporting Information | |||||||
Total goodwill | 0 | 0 | 0 | 0 | |||
Total assets | 0 | 0 | 0 | 0 | |||
Net interest income | 0 | 0 | 0 | 0 | |||
Provision for (benefit from) credit losses | 0 | 0 | 0 | 0 | |||
Net Interest Income After Provision for (Benefit from) Credit Losses | 0 | 0 | 0 | 0 | |||
Noninterest Income: | |||||||
Service charges on deposits | 0 | 0 | 0 | 0 | |||
Wealth and asset management revenue | (39) | (37) | (114) | (106) | |||
Commercial banking revenue | 0 | 0 | 0 | 0 | |||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||
Card and processing revenue | 0 | 0 | 0 | 0 | |||
Leasing business revenue | 0 | 0 | 0 | 0 | |||
Other noninterest income | 0 | 0 | 0 | 0 | |||
Securities gains, net | 0 | 0 | 0 | 0 | |||
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | 0 | 0 | |||
Total noninterest income | (39) | (37) | (114) | (106) | |||
Noninterest expense: | |||||||
Compensation and benefits | 0 | 0 | 0 | 0 | |||
Technology and communications | 0 | 0 | 0 | 0 | |||
Net occupancy expense | 0 | 0 | 0 | 0 | |||
Leasing business expense | 0 | 0 | 0 | 0 | |||
Equipment expense | 0 | 0 | 0 | 0 | |||
Card and processing expense | 0 | 0 | 0 | 0 | |||
Marketing expense | 0 | 0 | 0 | 0 | |||
Other noninterest expense | (39) | (37) | (114) | (106) | |||
Total noninterest expense | (39) | (37) | (114) | (106) | |||
Income Before Income Taxes | 0 | 0 | 0 | 0 | |||
Applicable income tax expense (benefit) | 0 | 0 | 0 | 0 | |||
Net Income | 0 | 0 | 0 | 0 | |||
Commercial Banking | |||||||
Segment Reporting Information | |||||||
Total goodwill | 1,961 | 1,961 | 1,954 | 630 | |||
Commercial Banking | Operating Segments | |||||||
Segment Reporting Information | |||||||
Total goodwill | 1,961 | 1,982 | 1,961 | 1,982 | |||
Total assets | 72,025 | 75,143 | 72,025 | 75,143 | |||
Net interest income | 432 | 623 | 1,512 | 1,761 | |||
Provision for (benefit from) credit losses | 337 | 54 | 839 | 100 | |||
Net Interest Income After Provision for (Benefit from) Credit Losses | 95 | 569 | 673 | 1,661 | |||
Noninterest Income: | |||||||
Service charges on deposits | 91 | 79 | 253 | 227 | |||
Wealth and asset management revenue | 1 | 1 | 2 | 2 | |||
Commercial banking revenue | 125 | 122 | 386 | 329 | |||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||
Card and processing revenue | 13 | 16 | 40 | 49 | |||
Leasing business revenue | 77 | 92 | 207 | 199 | |||
Other noninterest income | 11 | 25 | 9 | 55 | |||
Securities gains, net | 0 | 0 | 0 | 0 | |||
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | 0 | 0 | |||
Total noninterest income | 318 | 335 | 897 | 861 | |||
Noninterest expense: | |||||||
Compensation and benefits | 127 | 118 | 405 | 346 | |||
Technology and communications | 3 | 3 | 10 | 8 | |||
Net occupancy expense | 8 | 7 | 23 | 21 | |||
Leasing business expense | 35 | 40 | 103 | 97 | |||
Equipment expense | 6 | 7 | 20 | 18 | |||
Card and processing expense | 2 | 2 | 6 | 6 | |||
Marketing expense | 2 | 3 | 5 | 6 | |||
Other noninterest expense | 228 | 245 | 722 | 696 | |||
Total noninterest expense | 411 | 425 | 1,294 | 1,198 | |||
Income Before Income Taxes | 2 | 479 | 276 | 1,324 | |||
Applicable income tax expense (benefit) | (10) | 86 | 27 | 242 | |||
Net Income | 12 | 393 | 249 | 1,082 | |||
Branch Banking | |||||||
Segment Reporting Information | |||||||
Total goodwill | 2,047 | 2,047 | 2,046 | 1,655 | |||
Branch Banking | Operating Segments | |||||||
Segment Reporting Information | |||||||
Total goodwill | 2,047 | 2,054 | 2,047 | 2,054 | |||
Total assets | 77,018 | 69,021 | 77,018 | 69,021 | |||
Net interest income | 355 | 598 | 1,372 | 1,802 | |||
Provision for (benefit from) credit losses | 68 | 58 | 182 | 164 | |||
Net Interest Income After Provision for (Benefit from) Credit Losses | 287 | 540 | 1,190 | 1,638 | |||
Noninterest Income: | |||||||
Service charges on deposits | 53 | 65 | 160 | 191 | |||
Wealth and asset management revenue | 44 | 41 | 128 | 117 | |||
Commercial banking revenue | 1 | 1 | 3 | 3 | |||
Mortgage banking net revenue | 2 | 2 | 6 | 4 | |||
Card and processing revenue | 76 | 74 | 209 | 212 | |||
Leasing business revenue | 0 | 0 | 0 | 0 | |||
Other noninterest income | 16 | 21 | 49 | 63 | |||
Securities gains, net | 0 | 0 | 0 | 0 | |||
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | 0 | 0 | |||
Total noninterest income | 192 | 204 | 555 | 590 | |||
Noninterest expense: | |||||||
Compensation and benefits | 162 | 148 | 491 | 444 | |||
Technology and communications | 1 | 1 | 2 | 3 | |||
Net occupancy expense | 44 | 44 | 131 | 130 | |||
Leasing business expense | 0 | 0 | 0 | 0 | |||
Equipment expense | 10 | 12 | 31 | 35 | |||
Card and processing expense | 28 | 32 | 86 | 92 | |||
Marketing expense | 6 | 17 | 23 | 49 | |||
Other noninterest expense | 209 | 215 | 635 | 622 | |||
Total noninterest expense | 460 | 469 | 1,399 | 1,375 | |||
Income Before Income Taxes | 19 | 275 | 346 | 853 | |||
Applicable income tax expense (benefit) | 4 | 58 | 73 | 179 | |||
Net Income | 15 | 217 | 273 | 674 | |||
Consumer Lending | |||||||
Segment Reporting Information | |||||||
Total goodwill | 0 | 0 | 0 | 0 | |||
Consumer Lending | Operating Segments | |||||||
Segment Reporting Information | |||||||
Total goodwill | 0 | 0 | 0 | 0 | |||
Total assets | 27,869 | 26,171 | 27,869 | 26,171 | |||
Net interest income | 98 | 88 | 279 | 234 | |||
Provision for (benefit from) credit losses | 2 | 14 | 25 | 34 | |||
Net Interest Income After Provision for (Benefit from) Credit Losses | 96 | 74 | 254 | 200 | |||
Noninterest Income: | |||||||
Service charges on deposits | 0 | 0 | 0 | 0 | |||
Wealth and asset management revenue | 0 | 0 | 0 | 0 | |||
Commercial banking revenue | 0 | 0 | 0 | 0 | |||
Mortgage banking net revenue | 72 | 92 | 286 | 209 | |||
Card and processing revenue | 0 | 0 | 0 | 0 | |||
Leasing business revenue | 0 | 0 | 0 | 0 | |||
Other noninterest income | 2 | 4 | 8 | 10 | |||
Securities gains, net | 0 | 0 | 0 | 0 | |||
Securities losses, net – non-qualifying hedges on MSRs | (1) | 0 | 3 | 5 | |||
Total noninterest income | 73 | 96 | 297 | 224 | |||
Noninterest expense: | |||||||
Compensation and benefits | 57 | 48 | 162 | 146 | |||
Technology and communications | 2 | 2 | 6 | 6 | |||
Net occupancy expense | 2 | 3 | 7 | 8 | |||
Leasing business expense | 0 | 0 | 0 | 0 | |||
Equipment expense | 0 | 0 | 0 | 0 | |||
Card and processing expense | 0 | 0 | 0 | 0 | |||
Marketing expense | 1 | 1 | 3 | 3 | |||
Other noninterest expense | 75 | 60 | 204 | 172 | |||
Total noninterest expense | 137 | 114 | 382 | 335 | |||
Income Before Income Taxes | 32 | 56 | 169 | 89 | |||
Applicable income tax expense (benefit) | 7 | 12 | 35 | 19 | |||
Net Income | 25 | 44 | 134 | 70 | |||
Wealth and Asset Management | |||||||
Segment Reporting Information | |||||||
Total goodwill | 253 | 253 | $ 252 | $ 193 | |||
Wealth and Asset Management | Operating Segments | |||||||
Segment Reporting Information | |||||||
Total goodwill | 253 | 254 | 253 | 254 | |||
Total assets | 11,520 | 9,961 | 11,520 | 9,961 | |||
Net interest income | 28 | 44 | 116 | 141 | |||
Provision for (benefit from) credit losses | 0 | 0 | 0 | 0 | |||
Net Interest Income After Provision for (Benefit from) Credit Losses | 28 | 44 | 116 | 141 | |||
Noninterest Income: | |||||||
Service charges on deposits | 0 | 0 | 1 | 1 | |||
Wealth and asset management revenue | 126 | 119 | 371 | 345 | |||
Commercial banking revenue | 0 | 0 | 1 | 1 | |||
Mortgage banking net revenue | 2 | 1 | 3 | 1 | |||
Card and processing revenue | 0 | 1 | 1 | 2 | |||
Leasing business revenue | 0 | 0 | 0 | 0 | |||
Other noninterest income | 4 | 4 | 13 | 9 | |||
Securities gains, net | 0 | 0 | 0 | 0 | |||
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | 0 | 0 | |||
Total noninterest income | 132 | 125 | 390 | 359 | |||
Noninterest expense: | |||||||
Compensation and benefits | 54 | 51 | 165 | 165 | |||
Technology and communications | 0 | 0 | 1 | 1 | |||
Net occupancy expense | 3 | 3 | 9 | 10 | |||
Leasing business expense | 0 | 0 | 0 | 0 | |||
Equipment expense | 0 | 0 | 0 | 1 | |||
Card and processing expense | 0 | 0 | 0 | 1 | |||
Marketing expense | 0 | 1 | 2 | 3 | |||
Other noninterest expense | 76 | 74 | 223 | 216 | |||
Total noninterest expense | 133 | 129 | 400 | 397 | |||
Income Before Income Taxes | 27 | 40 | 106 | 103 | |||
Applicable income tax expense (benefit) | 6 | 8 | 22 | 22 | |||
Net Income | $ 21 | $ 32 | $ 84 | $ 81 | |||
[1] | During the first quarter of 2020, certain noninterest income and noninterest expense line items were reclassified to better align disclosures to business activities. These reclassifications were retrospectively applied to all prior periods presented. Total noninterest income and noninterest expense did not change as a result of these reclassifications. |