Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2023 | |
Entity File Number | 001-33653 | |
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 | 680,716,026 | |
Amendment Flag | false | |
Entity Central Index Key | 0000035527 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | FIFTH THIRD BANCORP | |
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 | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and due from banks | $ 2,780 | $ 3,466 | |
Other short-term investments | [1] | 9,794 | 8,351 |
Available-for-sale debt and other securities | [2] | 50,719 | 51,503 |
Held-to-maturity securities | [3] | 2 | 5 |
Trading debt securities | 1,174 | 414 | |
Equity securities | 323 | 317 | |
Loans and leases held for sale | [4] | 749 | 1,007 |
Portfolio loans and leases | 122,857 | 121,480 | |
Allowance for loan and lease losses | [1] | (2,215) | (2,194) |
Portfolio loans and leases, net | 120,642 | 119,286 | |
Bank premises and equipment | [5] | 2,219 | 2,187 |
Operating lease equipment | 578 | 627 | |
Goodwill | 4,915 | 4,915 | |
Intangible assets | 157 | 169 | |
Servicing rights | 1,725 | 1,746 | |
Other assets | [1] | 12,880 | 13,459 |
Total Assets | 208,657 | 207,452 | |
Deposits: | |||
Noninterest-bearing deposits | 49,649 | 53,125 | |
Interest-bearing deposits | 113,326 | 110,565 | |
Total deposits | 162,975 | 163,690 | |
Federal funds purchased | 177 | 180 | |
Other short-term borrowings | 7,364 | 4,838 | |
Accrued taxes, interest and expenses | 1,577 | 1,822 | |
Other liabilities | [1] | 5,307 | 5,881 |
Long-term debt | [1] | 12,893 | 13,714 |
Total Liabilities | 190,293 | 190,125 | |
Equity | |||
Common stock | [6] | 2,051 | 2,051 |
Preferred stock | [7] | 2,116 | 2,116 |
Capital surplus | 3,682 | 3,684 | |
Retained earnings | 22,032 | 21,689 | |
Accumulated other comprehensive loss | (4,245) | (5,110) | |
Treasury stock | [6] | (7,272) | (7,103) |
Total Equity | 18,364 | 17,327 | |
Total Liabilities and Equity | $ 208,657 | $ 207,452 | |
[1]Includes $5 and $17 of other short-term investments, $44 and $185 of portfolio loans and leases, $(1) and $(2) of ALLL, $0 and $2 of other assets, $9 and $9 of other liabilities, and $38 and $118 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2023 and December 31, 2022, respectively. For further information, refer to Note 12.[2]Amortized cost of $55,958 and $57,530 at March 31, 2023 and December 31, 2022, respectively.[3]Fair value of $2 and $5 at March 31, 2023 and December 31, 2022, respectively.[4]Includes $599 and $600 of residential mortgage loans held for sale measured at fair value at March 31, 2023 and December 31, 2022, respectively.[5]Includes $22 and $24 of bank premises and equipment held for sale at March 31, 2023 and December 31, 2022, respectively.[6] Common shares: Stated value $ 2.22 per share; authorized 2,000,000,000; outstanding at March 31, 2023 – 680,536,608 (excludes 243,355,973 treasury shares), December 31, 2022 – 683,385,880 (excludes 240,506,701 treasury shares). |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Other short-term investments | [1] | $ 9,794 | $ 8,351 |
Portfolio loans and leases | 122,857 | 121,480 | |
Allowance for loan and lease losses | [1] | (2,215) | (2,194) |
Other assets | [1] | 12,880 | 13,459 |
Other liabilities | [1] | 5,307 | 5,881 |
Long-term debt | [1] | 12,893 | 13,714 |
Available-for-sale debt and other securities, amortized cost | 55,958 | 57,530 | |
Held-to-maturity securities | 2 | 5 | |
Bank premises and equipment held for sale | $ 22 | $ 24 | |
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) | 680,536,608 | 683,385,880 | |
Treasury stock, common (in shares) | 243,355,973 | 240,506,701 | |
Preferred stock, authorized (in shares) | 500,000 | 500,000 | |
Preferred stock, unissued (in shares) | 422,000 | 422,000 | |
Preferred stock, liquidation preference per share (in dollars per share) | $ 25,000 | $ 25,000 | |
Preferred Class B | |||
Preferred stock, authorized (in shares) | 500,000 | 500,000 | |
Preferred stock, unissued (in shares) | 300,000 | 300,000 | |
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 | |
Residential Mortgage | |||
Allowance for loan and lease losses | $ (185) | $ (245) | |
Loans held for sale | 599 | 600 | |
Loans measured at FV | 128 | 123 | |
Variable Interest Entity, Primary Beneficiary | Automobile And Solar Loan | |||
Other short-term investments | 5 | 17 | |
Portfolio loans and leases | 44 | 185 | |
Allowance for loan and lease losses | (1) | (2) | |
Other assets | 0 | 2 | |
Other liabilities | 9 | 9 | |
Long-term debt | $ 38 | $ 118 | |
[1]Includes $5 and $17 of other short-term investments, $44 and $185 of portfolio loans and leases, $(1) and $(2) of ALLL, $0 and $2 of other assets, $9 and $9 of other liabilities, and $38 and $118 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2023 and December 31, 2022, respectively. For further information, refer to Note 12. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest Income | ||
Interest and fees on loans and leases | $ 1,714 | $ 983 |
Interest on securities | 439 | 294 |
Interest on other short-term investments | 60 | 12 |
Total interest income | 2,213 | 1,289 |
Interest Expense | ||
Interest on deposits | 478 | 11 |
Interest on federal funds purchased | 5 | 0 |
Interest on other short-term borrowings | 57 | 0 |
Interest on long-term debt | 156 | 83 |
Total interest expense | 696 | 94 |
Net Interest Income | 1,517 | 1,195 |
Provision for credit losses | 164 | 45 |
Net Interest Income After Provision for Credit Losses | 1,353 | 1,150 |
Noninterest Income | ||
Commercial banking revenue | 161 | 135 |
Wealth and asset management revenue | 146 | 149 |
Service charges on deposits | 137 | 152 |
Card and processing revenue | 100 | 97 |
Mortgage banking net revenue | 69 | 52 |
Leasing business revenue | 57 | 62 |
Other noninterest income | 22 | 52 |
Securities gains (losses), net | 4 | (14) |
Securities losses, net – non-qualifying hedges on mortgage servicing rights | 0 | (1) |
Total noninterest income | 696 | 684 |
Noninterest Expense | ||
Compensation and benefits | 757 | 711 |
Technology and communications | 118 | 101 |
Net occupancy expense | 81 | 77 |
Equipment expense | 37 | 36 |
Leasing business expense | 34 | 32 |
Marketing expense | 29 | 24 |
Card and processing expense | 22 | 19 |
Other noninterest expense | 253 | 222 |
Total noninterest expense | 1,331 | 1,222 |
Income Before Income Taxes | 718 | 612 |
Applicable income tax expense | 160 | 118 |
Net Income | 558 | 494 |
Dividends on preferred stock | 23 | 20 |
Net Income Available to Common Shareholders | $ 535 | $ 474 |
Shares Disclosures | ||
Earnings per share - basic (in dollars per share) | $ 0.78 | $ 0.69 |
Earnings per share - diluted (in dollars per share) | $ 0.78 | $ 0.68 |
Average common shares outstanding - basic (in shares) | 684,017,462 | 687,537,989 |
Average common shares outstanding - diluted (in shares) | 689,566,425 | 696,242,395 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 558 | $ 494 |
Net unrealized losses on available-for-sale debt securities: | ||
Unrealized holding gains (losses) arising during period | 600 | (1,929) |
Reclassification adjustment for net gains losses included in net income | 0 | (2) |
Net unrealized losses on cash flow hedge derivatives: | ||
Unrealized holding gains (losses) arising during period | 215 | (313) |
Reclassification adjustment for net losses (gains) included in net income | 50 | (60) |
Defined benefit pension plans, net: | ||
Reclassification of amounts to net periodic benefit costs | 0 | 1 |
Other comprehensive income (loss), net of tax | 865 | (2,303) |
Comprehensive Income (Loss) | $ 1,423 | $ (1,809) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | [1] | Cumulative Effect, Period of Adoption, Adjusted Balance | Series I Preferred Stock | Series J Preferred Stock | Series K Preferred Stock | Series L Preferred Stock | Class B, Series A Preferred Stock | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock | Preferred Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Capital Surplus | Capital Surplus Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | [1] | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings Series I Preferred Stock | Retained Earnings Series J Preferred Stock | Retained Earnings Series K Preferred Stock | Retained Earnings Series L Preferred Stock | Retained Earnings Class B, Series A Preferred Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance at Dec. 31, 2021 | $ 22,210 | $ 2,051 | $ 2,116 | $ 3,624 | $ 20,236 | $ 1,207 | $ (7,024) | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Net Income | 494 | 494 | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (2,303) | (2,303) | ||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||
Common stock | (209) | (209) | ||||||||||||||||||||||||||
Preferred stock | $ (7) | $ (3) | $ (3) | $ (4) | $ (3) | $ (7) | $ (3) | $ (3) | $ (4) | $ (3) | ||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 5 | (9) | 14 | |||||||||||||||||||||||||
Ending balance at Mar. 31, 2022 | 20,177 | 2,051 | 2,116 | 3,615 | 20,501 | (1,096) | (7,010) | |||||||||||||||||||||
Beginning balance at Dec. 31, 2021 | 22,210 | 2,051 | 2,116 | 3,624 | 20,236 | 1,207 | (7,024) | |||||||||||||||||||||
Ending balance at Dec. 31, 2022 | $ 17,327 | $ 37 | $ 17,364 | 2,051 | $ 2,051 | 2,116 | $ 2,116 | 3,684 | $ 3,684 | 21,689 | $ 37 | $ 21,726 | (5,110) | $ (5,110) | (7,103) | $ (7,103) | ||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2022-02 | |||||||||||||||||||||||||||
Net Income | $ 558 | 558 | ||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 865 | 865 | ||||||||||||||||||||||||||
Common stock | (229) | (229) | ||||||||||||||||||||||||||
Preferred stock | $ (7) | $ (6) | $ (3) | $ (4) | $ (3) | $ (7) | $ (6) | $ (3) | $ (4) | $ (3) | ||||||||||||||||||
Shares acquired for treasury | (201) | (201) | ||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 30 | (2) | 32 | |||||||||||||||||||||||||
Ending balance at Mar. 31, 2023 | $ 18,364 | $ 2,051 | $ 2,116 | $ 3,682 | $ 22,032 | $ (4,245) | $ (7,272) | |||||||||||||||||||||
[1]Related to the adoption of ASU 2022-02 as of January 1, 2023. Refer to Note 3 for additional information. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Common stock, per share (in dollars per share) | $ 0.33 | $ 0.30 |
Series I Preferred Stock | ||
Preferred stock, per share (in dollars per share) | 414.06 | 414.06 |
Series J Preferred Stock | ||
Preferred stock, per share (in dollars per share) | 492.75 | 209.48 |
Series K Preferred Stock | ||
Preferred stock, per share (in dollars per share) | 309.38 | 309.38 |
Series L Preferred Stock | ||
Preferred stock, per share (in dollars per share) | 281.25 | 281.25 |
Class B, Series A Preferred Stock | ||
Preferred stock, per share (in dollars per share) | $ 15 | $ 15 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities | ||
Net Income | $ 558 | $ 494 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 164 | 45 |
Depreciation, amortization and accretion | 117 | 109 |
Stock-based compensation expense | 76 | 79 |
(Benefit from) provision for deferred income taxes | (42) | 19 |
Securities (gains) losses , net | (5) | 18 |
MSR fair value adjustment | 53 | (137) |
Net gains on sales of loans and fair value adjustments on loans held for sale | (18) | (8) |
Net gains on disposition and impairment of bank premises and equipment and operating lease equipment | (1) | (3) |
Proceeds from sales of loans held for sale | 1,335 | 3,398 |
Loans originated or purchased for sale, net of repayments | (1,071) | (2,001) |
Dividends representing return on equity investments | 16 | 11 |
Net change in: | ||
Equity and trading debt securities | (133) | 186 |
Other assets | 514 | 287 |
Accrued taxes, interest and expenses and other liabilities | (242) | (810) |
Net Cash Provided by Operating Activities | 1,321 | 1,687 |
Proceeds from sales: | ||
AFS securities and other investments | 2,054 | 993 |
Loans and leases | 0 | 43 |
Bank premises and equipment | 3 | 0 |
Proceeds from repayments / maturities of AFS and HTM securities and other investments | 608 | 1,438 |
Purchases: | ||
AFS securities and other investments | (2,045) | (14,423) |
Bank premises and equipment | (113) | (63) |
MSRs | (16) | (139) |
Proceeds from settlement of BOLI | 8 | 19 |
Proceeds from sales and dividends representing return of equity investments | 14 | 8 |
Net change in: | ||
Other short-term investments | (1,443) | 14,043 |
Portfolio loans and leases | (1,452) | (3,504) |
Operating lease equipment | 19 | (32) |
Net Cash Used in Investing Activities | (2,363) | (1,617) |
Financing Activities | ||
Net change in deposits | (715) | 1,287 |
Net change in other short-term borrowings and federal funds purchased | 2,523 | (139) |
Dividends paid on common and preferred stock | (294) | (230) |
Proceeds from issuance of long-term debt | 6 | 12 |
Repayment of long-term debt | (917) | (870) |
Repurchases of treasury stock and related forward contract | (200) | 0 |
Other | (47) | (75) |
Net Cash Provided by (Used in) Financing Activities | 356 | (15) |
(Decrease) Increase in Cash and Due from Banks | (686) | 55 |
Cash and Due from Banks at Beginning of Period | 3,466 | 2,994 |
Cash and Due from Banks at End of Period | $ 2,780 | $ 3,049 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
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 any impairment recorded and 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 among consolidated entities 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, cash flows and changes in equity for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2022 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. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31: ($ in millions) 2023 2022 Cash Payments: Interest $ 682 158 Income taxes 21 11 Transfers: Portfolio loans and leases to loans and leases held for sale $ 3 71 Loans and leases held for sale to portfolio loans and leases 4 402 Portfolio loans and leases to OREO 3 2 Bank premises and equipment to OREO 8 15 Supplemental Disclosures: Net additions to lease liabilities under operating leases $ 1 31 Net additions to lease liabilities under finance leases — 3 |
Accounting and Reporting Develo
Accounting and Reporting Developments | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting and Reporting Developments | Accounting and Reporting Developments Standards Adopted in 2023 The Bancorp adopted the following new accounting standards during the three months ended March 31, 2023: ASU 2021-08 – Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08, which provides guidance on the accounting for revenue contracts with customers which are acquired in a business combination. The amendments generally state that an acquirer accounts for an acquired revenue contract with a customer as if it had originated the contract. The amendments also provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and liabilities. The Bancorp adopted the amended guidance on January 1, 2023 on a prospective basis and will apply the amendments for business combinations occurring on or after the adoption date. The adoption of the amended guidance did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. ASU 2022-01 – Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method In March 2022, the FASB issued ASU 2022-01, which clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets and renames the last-of-layer method the portfolio layer method. Under previous guidance, the last-of-layer method enabled an entity to apply fair value hedging to a stated amount of a closed portfolio of prepayable financial assets without having to consider prepayment risk or credit risk when measuring those assets. ASU 2022-01 expands the scope of this guidance to allow entities to apply the portfolio layer method to portfolios of all financial assets, including both prepayable and nonprepayable financial assets. It allows entities to designate multiple layers within a single closed portfolio as individual hedged items. Further, ASU 2022-01 clarifies that the fair value basis adjustments should be adjusted at the portfolio level and should not be allocated to individual assets within the portfolio. The Bancorp adopted the amended guidance on January 1, 2023 on a prospective basis, except for the amendments related to fair value basis adjustments that, if applicable, were required to be applied on a modified retrospective basis. The adoption of the amended guidance did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. ASU 2022-02 – Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued ASU 2022-02, which eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40, amends the guidance on calculating the allowance for credit losses for restructured financing receivables and requires entities to evaluate all receivable modifications under ASC 310-20 to determine whether a modification made to a borrower results in a new loan or the continuation of an existing loan. The amended guidance adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amended guidance also requires disclosure of current period gross charge-offs by year of origination within the vintage disclosures required by ASC 326. The Bancorp adopted the amended guidance on January 1, 2023 on a prospective basis, except for the amendments impacting the measurement of the ACL for TDRs and reasonably expected TDRs, which were adopted on a modified retrospective basis. Upon adoption, the Bancorp recorded a decrease to the ACL of $49 million and a cumulative-effect adjustment to retained earnings of $37 million, net of tax. This adjustment was primarily attributable to the removal of the requirement to use a discounted cash flow approach to measure the impact of certain concessions granted as part of a TDR and the removal of the requirement to consider the impacts of reasonably expected TDRs when estimating expected credit losses. The required disclosures are included in Note 6. ASU 2022-04 – Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations In September 2022, the FASB issued ASU 2022-04, which provides guidance on the disclosure requirements for supplier finance programs. The amendments require that a buyer in a supplier finance program disclose sufficient qualitative and quantitative information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The Bancorp adopted the amended guidance on January 1, 2023 on a retrospective basis, except for the amendments related to disclosure of rollforward information, which are required to be adopted on January 1, 2024 on a prospective basis. The adoption of the amended guidance did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. Significant Accounting Standards Issued but Not Yet Adopted The following significant accounting standards were issued but not yet adopted by the Bancorp as of March 31, 2023: ASU 2022-03 – Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions In June 2022, the FASB issued ASU 2022-03, which clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to contractual sale restrictions, stating that such restrictions are not considered part of the unit of account of the security and therefore are not considered in measuring fair value. The amended guidance also requires disclosure of the fair value of equity securities subject to contractual sale restrictions and certain additional information about those restrictions. The amended guidance is effective for the Bancorp on January 1, 2024, with early adoption permitted, and is to be applied prospectively. ASU 2023-02 – Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method In March 2023, the FASB issued ASU 2023-02, which expands the permitted usage of the proportional amortization method to include additional tax credit investment programs beyond qualifying LIHTC structures if certain conditions are met. The amended guidance permits entities to make elections to apply the proportional amortization method on a program-by-program basis for qualifying programs and also makes certain amendments to measurement and disclosure guidance. The amended disclosure guidance applies to all investments within programs where the proportional amortization method has been elected, including investments within those programs which do not meet the criteria to permit application of the proportional amortization method. The amended guidance is effective for the Bancorp on January 1, 2024, with early adoption permitted, and is to be applied on a modified retrospective or retrospective basis, except for certain provisions affecting the measurement of existing LIHTC investments which may be applied prospectively. The Bancorp is in the process of evaluating the impact of the amended guidance on the Condensed Consolidated Financial Statements. Reference Rate Reform and LIBOR Transition 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. In January 2021, the FASB issued ASU 2021-01, which clarified that the optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting also apply to derivatives that are affected by the discounting transition. The expedients and exceptions provided by the amendments did 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 for which an entity had elected certain optional expedients. Subsequently, in December 2022, the FASB issued ASU 2022-06 which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The amendments in ASU 2020-04 (as amended) are effective for the Bancorp as of March 12, 2020 and may be applied through December 31, 2024. 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, 2024. Updates to Significant Accounting and Reporting Policies In conjunction with the adoption of ASU 2022-02 on January 1, 2023, the Bancorp has updated its accounting and reporting policies for nonaccrual loans and leases, loan modifications and the ALLL 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, 2022 for discussion of these accounting and reporting policies for periods prior to January 1, 2023. Portfolio loans and leases - nonaccrual loans and leases The Bancorp places loans and leases on nonaccrual status when full repayment of principal and interest is not expected, unless the loan or lease is well-secured and in the process of collection. When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees or costs are discontinued and all previously accrued and unpaid interest is reversed against income. The Bancorp utilizes the following policies to determine when full repayment of principal and interest on a loan or lease is not expected: • Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual status when the principal or interest is past due 90 days or more, unless the loan is fully or partially guaranteed by a government agency. • Residential mortgage loans are placed on nonaccrual status when principal and interest payments become past due 150 days or more, unless repayment of the loan is fully or partially guaranteed by a government agency. Residential mortgage loans may stay on nonaccrual status for an extended time as the foreclosure process typically lasts longer than 180 days. The Bancorp maintains a reserve for the portion of accrued interest receivable that it estimates will be uncollectible, at the portfolio level, for residential mortgage loans which are past due 90 days or more and on accrual status. This reserve is recorded as a component of other assets on the Bancorp’s Condensed Consolidated Balance Sheets, consistent with the classification of the related accrued interest receivable. • Home equity loans and lines of credit are placed on nonaccrual status if principal or interest has been in default for 90 days or more. Home equity loans and lines of credit that have been in default for 60 days or more are also placed on nonaccrual status if the senior lien has been in default 120 days or more. • Credit card loans that have been modified for a borrower experiencing financial difficulty are placed on nonaccrual status at the time of the modification. Subsequent to the modification, accounts are placed on nonaccrual status when required payments become past due 90 days or more in accordance with the modified terms. • Indirect secured consumer loans and other consumer loans are generally placed on nonaccrual status when principal or interest becomes past due 90 days or more. • Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower are considered collateral-dependent loans and placed on nonaccrual status, regardless of the borrower’s payment history or capacity to repay in the future. Well-secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance in the near future. Nonaccrual loans and leases may be returned to accrual status when all delinquent principal and interest payments become current in accordance with the loan agreement and the remaining principal and interest payments are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, or when the loan is both well-secured and in the process of collection. Nonaccrual loans that have been modified for a borrower experiencing financial difficulty may not be returned to accrual status unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the modified terms. Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower may be returned to accrual status provided there is a sustained payment history of twelve months or more after bankruptcy and collectability is reasonably assured for all remaining contractual payments. Except for loans discharged in a Chapter 7 bankruptcy that are not reaffirmed by the borrower, accruing residential mortgage loans, home equity loans and lines of credit, indirect secured consumer loans and other consumer loans modified for borrowers experiencing financial difficulty are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Accruing commercial loans modified for borrowers experiencing financial difficulty are maintained on accrual status provided there is a sustained payment history of six months or more prior to the modification and collectability is reasonably assured for all remaining contractual payments under the modified terms. Modifications of commercial loans and credit card loans for borrowers experiencing financial difficulty that do not have a sustained payment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six-month payment history is sustained. Nonaccrual loans and leases are generally accounted for on the cost recovery method due to the existence of doubt as to the collectability of the remaining amortized cost basis of nonaccrual assets. Under the cost recovery method, any payments received are applied to reduce principal. Once the entire amortized cost basis is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. In certain circumstances when the remaining amortized cost basis of a nonaccrual loan or lease is deemed to be fully collectible, the Bancorp may utilize the cash basis method to account for interest payments received on a nonaccrual loan or lease. Under the cash basis method, interest income is recognized when cash is received, to the extent such income would have been accrued on the loan’s remaining balance at the contractual rate. The Bancorp records a charge-off to the ALLL when all or a portion of a loan or lease is deemed to be uncollectible, after considering the net realizable value of any underlying collateral. Commercial loans and leases on nonaccrual status and criticized commercial loans with aggregate borrower relationships exceeding $1 million are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans and leases. The Bancorp records charge-offs on consumer loans in accordance with applicable regulatory guidelines, which are primarily based on a loan’s delinquency status. Portfolio loans and leases - loan modifications In circumstances where an existing loan is modified (including a restructuring, refinancing, or other changes in terms which affect the loan’s contractual cash flows), the Bancorp evaluates whether the modification results in a continuation of the existing loan or the origination of a new loan. The Bancorp accounts for a modification as a new loan if the terms of the modified loan are at least as favorable to the Bancorp as the terms for comparable loans to other borrowers with similar collection risks who are obtaining new loans, or if the modification of terms is considered more than minor. If neither of these conditions are met, then the Bancorp will account for the loan as a continuation of the existing loan. When a modification is accounted for as a new loan, any unamortized net deferred fees or costs from the original loan are recognized in interest income when the new loan is originated. When a modification is accounted for as a continuation of the existing loan, the unamortized net deferred fees or costs from the original loan and any additional incremental direct fees and costs are carried forward and deferred as part of the amortized cost basis of the modified loan. 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. 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 extension or renewal options are embedded in the original contract and not unconditionally cancellable by the Bancorp. Accrued interest receivable on loans is 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 a reserve for accrued interest receivable as part of its ALLL. However, the Bancorp does record a reserve for the portion of accrued interest receivable that it expects to be uncollectible. 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 expected 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 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 on nonaccrual status 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 or lease structure (including modifications, if any) and other factors when determining the amount of the 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 observable market value of the loan or lease or the present value of its expected cash flows discounted at the loan’s effective interest rate. Specific allowances on individually evaluated commercial loans and leases are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. The Bancorp considers loans to be collateral-dependent when it becomes probable that repayment of the loan will be provided through the sale or operation of the collateral instead of from payments made by the borrower. The expected credit losses for these loans are typically estimated based on the fair value of the underlying collateral, less expected costs to sell where applicable. Specific allowances on individually evaluated consumer and residential mortgage loans 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. 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 that changing economic conditions may have on the Bancorp’s customers. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 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 securities portfolios as of: March 31, 2023 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 2,828 1 (140) 2,689 Obligations of states and political subdivisions securities 3 — — 3 Mortgage-backed securities: Agency residential mortgage-backed securities 12,246 6 (1,179) 11,073 Agency commercial mortgage-backed securities 29,231 10 (3,058) 26,183 Non-agency commercial mortgage-backed securities 5,057 — (507) 4,550 Asset-backed securities and other debt securities 5,703 2 (374) 5,331 Other securities (a) 890 — — 890 Total available-for-sale debt and other securities $ 55,958 19 (5,258) 50,719 Held-to-maturity securities: Asset-backed securities and other debt securities $ 2 — — 2 Total held-to-maturity securities $ 2 — — 2 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdi ngs of $396, $491 and $3, r espectively, at March 31, 2023, that are carried at cost. December 31, 2022 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 2,683 — (188) 2,495 Obligations of states and political subdivisions securities 18 — — 18 Mortgage-backed securities: Agency residential mortgage-backed securities 12,604 5 (1,372) 11,237 Agency commercial mortgage-backed securities 29,824 11 (3,513) 26,322 Non-agency commercial mortgage-backed securities 5,235 — (520) 4,715 Asset-backed securities and other debt securities 6,292 3 (453) 5,842 Other securities (a) 874 — — 874 Total available-for-sale debt and other securities $ 57,530 19 (6,046) 51,503 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 3 — — 3 Asset-backed securities and other debt securities 2 — — 2 Total held-to-maturity securities $ 5 — — 5 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $381, $491 and $2, respectively, at December 31, 2022, that are carried at cost. The following table provides the fair value of trading debt securities and equity securities as of: ($ in millions) March 31, December 31, Trading debt securities $ 1,174 414 Equity securities 323 317 The amounts reported in the preceding tables exclude accrued interest receivable on investment securities of $137 million and $131 million at March 31, 2023 and December 31, 2022, respectively, which is presented as a component of other assets in the Condensed Consolidated Balance Sheets. The Bancorp uses investment securities as a means of managing interest rate risk, providing collateral for pledging purposes and for liquidity risk management. As part of managing interest rate risk, the Bancorp acquires securities as a component of its MSR non-qualifying hedging strategy, with net gains or losses recorded in securities losses, net – non-qualifying hedges on mortgage servicing rights in the Condensed Consolidated Statements of Income. The following table presents the components of net securities gains and losses recognized in the Condensed Consolidated Statements of Income, including those recognized related to the Bancorp’s non-qualifying hedging strategy for MSRs: For the three months ended March 31, ($ in millions) 2023 2022 Available-for-sale debt and other securities: Realized gains $ 29 3 Realized losses (29) — Net realized gains on available-for-sale debt and other securities $ — 3 Trading debt securities: Net realized losses — (1) Net unrealized gains — 11 Net trading debt securities gains $ — 10 Equity securities: Net realized gains — 1 Net unrealized gains (losses) 4 (29) Net equity securities gains (losses) $ 4 (28) Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities (a) $ 4 (15) (a) Excludes $1 of net securities gains and $3 of net securities losses for the three months ended March 31, 2023 and 2022, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These losses are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. At both March 31, 2023 and December 31, 2022, 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 related to available-for-sale debt and other securities in an unrealized loss position during both the three months ended March 31, 2023 and 2022. At March 31, 2023 and December 31, 2022, investment securities with a fair value of $21.1 billion a nd $11.0 billion, respectively, were pledged to secure borrowing capacity, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law. The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity securities as of March 31, 2023 are shown in the following table: ($ in millions) Available-for-Sale Debt and Other Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Due in 1 year or less $ 136 133 — — Due after 1 year through 5 years 13,519 12,697 — — Due after 5 years through 10 years 30,863 27,727 — — Due after 10 years 10,550 9,272 2 2 Other securities 890 890 — — Total $ 55,958 50,719 2 2 (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 March 31, 2023 U.S. Treasury and federal agencies securities $ 863 (15) 1,622 (125) 2,485 (140) Obligations of states and political subdivisions securities — — 1 — 1 — Agency residential mortgage-backed securities 4,293 (291) 6,616 (888) 10,909 (1,179) Agency commercial mortgage-backed securities 12,883 (1,047) 12,881 (2,011) 25,764 (3,058) Non-agency commercial mortgage-backed securities 788 (43) 3,761 (464) 4,549 (507) Asset-backed securities and other debt securities 1,529 (42) 3,630 (332) 5,159 (374) Total $ 20,356 (1,438) 28,511 (3,820) 48,867 (5,258) December 31, 2022 U.S. Treasury and federal agencies securities $ 2,400 (188) — — 2,400 (188) Obligations of states and political subdivisions securities — — 1 — 1 — Agency residential mortgage-backed securities 10,078 (1,170) 938 (202) 11,016 (1,372) Agency commercial mortgage-backed securities 22,083 (2,487) 3,697 (1,026) 25,780 (3,513) Non-agency commercial mortgage-backed securities 3,621 (272) 1,059 (248) 4,680 (520) Asset-backed securities and other debt securities 3,164 (178) 2,495 (275) 5,659 (453) Total $ 41,346 (4,295) 8,190 (1,751) 49,536 (6,046) At March 31, 2023 and December 31, 2022, $20 million and $42 million, respectively, of unrealized losses in the available-for-sale debt and other securities portfolio were related to non-rated securities. |
Loans and Leases
Loans and Leases | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. The Bancorp’s commercial loan and lease portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses that are expected to be incurred over the remaining contractual terms of the related loans and leases. For further information on credit quality and the ALLL, refer to Note 6. The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of: ($ in millions) March 31, December 31, Loans and leases held for sale: Commercial and industrial loans $ 21 73 Commercial leases 3 — Residential mortgage loans 725 934 Total loans and leases held for sale $ 749 1,007 Portfolio loans and leases: Commercial and industrial loans $ 57,720 57,232 Commercial mortgage loans 11,228 11,020 Commercial construction loans 5,548 5,433 Commercial leases 2,743 2,704 Total commercial loans and leases $ 77,239 76,389 Residential mortgage loans $ 17,608 17,628 Home equity 3,958 4,039 Indirect secured consumer loans 16,484 16,552 Credit card 1,761 1,874 Other consumer loans 5,807 4,998 Total consumer loans $ 45,618 45,091 Total portfolio loans and leases $ 122,857 121,480 Portfolio loans and leases are recorded net of unearned income, which totaled $262 million and $238 million as of March 31, 2023 and December 31, 2022, respectively. 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 discount of $51 million and net premium of $146 million as of March 31, 2023 and December 31, 2022, respectively. The amortized cost basis of loans and leases excludes accrued interest receivable of $548 million and $518 million at March 31, 2023 and December 31, 2022, respectively, which is 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 $15.9 billion as of March 31, 2023 and December 31, 2022, respectively, pledged to the FHLB, and loans of $56.1 billion and $57.1 billion at March 31, 2023 and December 31, 2022, respectively, pledged to the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp as of: Carrying Value 90 Days Past Due and Still Accruing (a) ($ in millions) March 31, December 31, March 31, December 31, Commercial and industrial loans $ 57,741 57,305 17 11 Commercial mortgage loans 11,228 11,020 — — Commercial construction loans 5,548 5,433 — — Commercial leases 2,746 2,704 — 2 Residential mortgage loans 18,333 18,562 9 7 Home equity 3,958 4,039 1 1 Indirect secured consumer loans 16,484 16,552 — — Credit card 1,761 1,874 18 18 Other consumer loans 5,807 4,998 1 1 Total loans and leases $ 123,606 122,487 46 40 Less: Loans and leases held for sale 749 1,007 Total portfolio loans and leases $ 122,857 121,480 (a) Excludes government guaranteed residential mortgage loans. The following table presents a summary of net charge-offs (recoveries): For the three months ended ($ in millions) 2023 2022 Commercial and industrial loans $ 30 9 Commercial mortgage loans — (1) Commercial construction loans 1 — Residential mortgage loans — (1) Home equity — (1) Indirect secured consumer loans 14 7 Credit card 15 13 Other consumer loans 18 8 Total net charge-offs $ 78 34 The following table presents the components of the net investment in portfolio leases as of: ($ in millions) (a) March 31, December 31, Net investment in direct financing leases: Lease payment receivable (present value) $ 582 570 Unguaranteed residual assets (present value) 109 107 Net investment in sales-type leases: Lease payment receivable (present value) 1,728 1,704 Unguaranteed residual assets (present value) 76 76 (a) Excludes $248 and $247 of leveraged leases at March 31, 2023 and December 31, 2022, respectively. Interest income recognized in the Condensed Consolidated Statements of Income for the three months ended March 31, 2023 and 2022 was $6 million and $8 million, respectively, for direct financing leases and $15 million and $11 million, respectively, for sales-type leases. The following table presents undiscounted cash flows for both direct financing and sales-type leases for the remainder of 2023 through 2028 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows: As of March 31, 2023 ($ in millions) Direct Financing Sales-Type Leases Remainder of 2023 $ 145 388 2024 159 471 2025 113 409 2026 95 239 2027 58 177 2028 18 108 Thereafter 37 82 Total undiscounted cash flows $ 625 1,874 Less: Difference between undiscounted cash flows and discounted cash flows 43 146 Present value of lease payments (recognized as lease receivables) $ 582 1,728 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 $18 million and $15 million at March 31, 2023 and December 31, 2022, respectively, to cover the losses that are expected to be incurred over the remaining contractual terms of the related leases, including the potential losses related to the lease residual value. Refer to Note 6 for additional information on credit quality and the ALLL. |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Credit Quality and the Allowance for Loan and Lease Losses | Credit Quality and the Allowance for Loan and Lease Losses The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class. Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment: For the three months ended March 31, 2023 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,127 245 822 2,194 Impact of adoption of ASU 2022-02 4 (36) (17) (49) Losses charged off (a) (33) (1) (76) (110) Recoveries of losses previously charged off (a) 2 1 29 32 Provision for (benefit from) loan and lease losses 43 (24) 129 148 Balance, end of period $ 1,143 185 887 2,215 (a) The Bancorp recorded $9 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the three months ended March 31, 2022 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,102 235 555 1,892 Losses charged off (a) (11) (1) (52) (64) Recoveries of losses previously charged off (a) 3 2 25 30 Benefit from loan and lease losses 16 3 31 50 Balance, end of period $ 1,110 239 559 1,908 (a) The Bancorp recorded $8 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: As of March 31, 2023 ($ in millions) Commercial Residential Consumer Total ALLL: (a) Individually evaluated $ 78 — 2 80 Collectively evaluated 1,065 185 885 2,135 Total ALLL $ 1,143 185 887 2,215 Portfolio loans and leases: (b) Individually evaluated $ 319 92 49 460 Collectively evaluated 76,920 17,388 27,961 122,269 Total portfolio loans and leases $ 77,239 17,480 28,010 122,729 (a) Includes $2 related to commercial leveraged leases at March 31, 2023. (b) Excludes $128 of residential mortgage loans measured at fair value and includes $248 of commercial leveraged leases, net of unearned income at March 31, 2023. As of December 31, 2022 ($ in millions) Commercial Residential Consumer Total ALLL: (a) Individually evaluated $ 30 47 45 122 Collectively evaluated 1,097 198 777 2,072 Total ALLL $ 1,127 245 822 2,194 Portfolio loans and leases: (b) Individually evaluated $ 531 560 297 1,388 Collectively evaluated 75,858 16,945 27,166 119,969 Total portfolio loans and leases $ 76,389 17,505 27,463 121,357 (a) Includes $2 related to commercial leveraged leases at December 31, 2022. (b) Excludes $123 of residential mortgage loans measured at fair value and includes $247 of commercial leveraged leases, net of unearned income at December 31, 2022. 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 for an ACL, 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. For more 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, refer to Note 3. The following tables present the amortized cost basis of the Bancorp’s commercial portfolio segment, by class and vintage, disaggregated by credit risk grade: As of March 31, 2023 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2023 2022 2021 2020 2019 Prior Total Commercial and industrial loans: Pass $ 805 4,364 2,673 885 402 648 44,136 — 53,913 Special mention 7 44 11 8 36 36 1,414 — 1,556 Substandard 76 121 58 218 25 108 1,630 — 2,236 Doubtful — — 2 — — — 13 — 15 Total commercial and industrial loans $ 888 4,529 2,744 1,111 463 792 47,193 — 57,720 Commercial mortgage owner-occupied loans: Pass $ 240 1,139 754 477 248 369 1,743 — 4,970 Special mention 12 14 29 3 2 12 22 — 94 Substandard 25 20 21 17 71 37 140 — 331 Doubtful — — — — — — — — — Total commercial mortgage owner- occupied loans $ 277 1,173 804 497 321 418 1,905 — 5,395 Commercial mortgage nonowner-occupied loans: Pass $ 165 1,087 447 474 393 345 2,508 — 5,419 Special mention 47 — 32 26 — 2 139 — 246 Substandard 27 30 24 18 1 17 51 — 168 Doubtful — — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 239 1,117 503 518 394 364 2,698 — 5,833 Commercial construction loans: Pass $ 14 73 31 87 8 34 4,980 — 5,227 Special mention — — 33 — — — 147 — 180 Substandard 4 49 — — — 2 86 — 141 Doubtful — — — — — — — — — Total commercial construction loans $ 18 122 64 87 8 36 5,213 — 5,548 Commercial leases: Pass $ 271 495 606 280 186 799 — — 2,637 Special mention — 3 9 4 2 16 — — 34 Substandard 7 5 15 2 3 40 — — 72 Doubtful — — — — — — — — — Total commercial leases $ 278 503 630 286 191 855 — — 2,743 Total commercial loans and leases: Pass $ 1,495 7,158 4,511 2,203 1,237 2,195 53,367 — 72,166 Special mention 66 61 114 41 40 66 1,722 — 2,110 Substandard 139 225 118 255 100 204 1,907 — 2,948 Doubtful — — 2 — — — 13 — 15 Total commercial loans and leases $ 1,700 7,444 4,745 2,499 1,377 2,465 57,009 — 77,239 As of December 31, 2022 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2022 2021 2020 2019 2018 Prior Total Commercial and industrial loans: Pass $ 3,825 3,098 994 445 269 488 44,521 — 53,640 Special mention 65 24 15 36 10 24 1,221 — 1,395 Substandard 150 77 233 26 7 107 1,597 — 2,197 Doubtful — — — — — — — — — Total commercial and industrial loans $ 4,040 3,199 1,242 507 286 619 47,339 — 57,232 Commercial mortgage owner-occupied loans: Pass $ 1,177 826 522 257 160 264 1,624 — 4,830 Special mention 17 15 13 12 13 2 56 — 128 Substandard 51 14 20 73 11 25 106 — 300 Doubtful — — — — — — — — — Total commercial mortgage owner-occupied loans $ 1,245 855 555 342 184 291 1,786 — 5,258 Commercial mortgage nonowner-occupied loans: Pass $ 1,127 462 490 397 220 170 2,453 — 5,319 Special mention 1 84 26 — — 23 88 — 222 Substandard 65 19 18 1 1 17 100 — 221 Doubtful — — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 1,193 565 534 398 221 210 2,641 — 5,762 Commercial construction loans: Pass $ 82 31 93 8 35 7 4,684 — 4,940 Special mention — — — — — — 293 — 293 Substandard 53 — — — — 2 145 — 200 Doubtful — — — — — — — — — Total commercial construction loans $ 135 31 93 8 35 9 5,122 — 5,433 Commercial leases: Pass $ 584 664 306 192 146 696 — — 2,588 Special mention — 4 2 4 7 19 — — 36 Substandard 1 20 2 4 21 32 — — 80 Doubtful — — — — — — — — — Total commercial leases $ 585 688 310 200 174 747 — — 2,704 Total commercial loans and leases: Pass $ 6,795 5,081 2,405 1,299 830 1,625 53,282 — 71,317 Special mention 83 127 56 52 30 68 1,658 — 2,074 Substandard 320 130 273 104 40 183 1,948 — 2,998 Doubtful — — — — — — — — — Total commercial loans and leases $ 7,198 5,338 2,734 1,455 900 1,876 56,888 — 76,389 The following table summarizes the Bancorp’s gross charge-offs within the commercial portfolio segment, by class and vintage: For the three months ended March 31, 2023 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2023 2022 2021 2020 2019 Prior Total Commercial loans and leases: Commercial and industrial loans $ — 1 11 — — — 20 — 32 Commercial construction loans — — — — — — 1 — 1 Total commercial loans and leases $ — 1 11 — — — 21 — 33 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 March 31, 2023 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 57,549 109 62 171 57,720 17 Commercial mortgage owner-occupied loans 5,386 6 3 9 5,395 — Commercial mortgage nonowner-occupied loans 5,832 1 — 1 5,833 — Commercial construction loans 5,541 2 5 7 5,548 — Commercial leases 2,723 16 4 20 2,743 — Total portfolio commercial loans and leases $ 77,031 134 74 208 77,239 17 (a) Includes accrual and nonaccrual loans and leases. Current Loans and Leases (a) Past Due Total Loans 90 Days Past As of December 31, 2022 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 57,092 98 42 140 57,232 11 Commercial mortgage owner-occupied loans 5,241 14 3 17 5,258 — Commercial mortgage nonowner-occupied loans 5,756 6 — 6 5,762 — Commercial construction loans 5,424 7 2 9 5,433 — Commercial leases 2,698 4 2 6 2,704 2 Total portfolio commercial loans and leases $ 76,211 129 49 178 76,389 13 (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 are presented in the following tables. 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 especially impactful in the expected credit loss models 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 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 3 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 tables present the amortized cost basis 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 March 31, 2023 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2023 2022 2021 2020 2019 Prior Total Residential mortgage loans: Performing: Current (a) $ 249 3,222 5,355 2,931 1,028 4,543 — — 17,328 30-89 days past due — 1 2 3 1 10 — — 17 90 days or more past due — 1 2 — 1 5 — — 9 Total performing 249 3,224 5,359 2,934 1,030 4,558 — — 17,354 Nonperforming — 1 3 4 4 114 — — 126 Total residential mortgage loans (b) $ 249 3,225 5,362 2,938 1,034 4,672 — — 17,480 Home equity: Performing: Current $ 14 45 3 7 14 106 3,663 14 3,866 30-89 days past due — — — — — 2 21 — 23 90 days or more past due — — — — — 1 — — 1 Total performing 14 45 3 7 14 109 3,684 14 3,890 Nonperforming — — — — — 7 60 1 68 Total home equity $ 14 45 3 7 14 116 3,744 15 3,958 Indirect secured consumer loans: Performing: Current $ 1,595 5,526 5,355 2,302 1,041 528 — — 16,347 30-89 days past due 2 32 33 19 14 10 — — 110 90 days or more past due — — — — — — — — — Total performing 1,597 5,558 5,388 2,321 1,055 538 — — 16,457 Nonperforming — 5 5 7 5 5 — — 27 Total indirect secured consumer loans $ 1,597 5,563 5,393 2,328 1,060 543 — — 16,484 Credit card: Performing: Current $ — — — — — — 1,696 — 1,696 30-89 days past due — — — — — — 18 — 18 90 days or more past due — — — — — — 18 — 18 Total performing — — — — — — 1,732 — 1,732 Nonperforming — — — — — — 29 — 29 Total credit card $ — — — — — — 1,761 — 1,761 Other consumer loans: Performing: Current $ 722 2,928 481 323 149 229 903 31 5,766 30-89 days past due — 19 5 2 2 3 3 — 34 90 days or more past due — 1 — — — — — — 1 Total performing 722 2,948 486 325 151 232 906 31 5,801 Nonperforming — 3 1 — — 1 1 — 6 Total other consumer loans $ 722 2,951 487 325 151 233 907 31 5,807 Total residential mortgage and consumer loans: Performing: Current $ 2,580 11,721 11,194 5,563 2,232 5,406 6,262 45 45,003 30-89 days past due 2 52 40 24 17 25 42 — 202 90 days or more past due — 2 2 — 1 6 18 — 29 Total performing 2,582 11,775 11,236 5,587 2,250 5,437 6,322 45 45,234 Nonperforming — 9 9 11 9 127 90 1 256 Total residential mortgage and consumer loans (b) $ 2,582 11,784 11,245 5,598 2,259 5,564 6,412 46 45,490 (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 March 31, 2023, $76 of these loans were 30-89 days past due and $154 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during the three months ended March 31, 2023, due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $128 of residential mortgage loans measured at fair value at March 31, 2023, including $3 of nonperforming loans. As of December 31, 2022 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2022 2021 2020 2019 2018 Prior Total Residential mortgage loans: Performing: Current (a) $ 3,195 5,440 2,981 1,051 344 4,336 — — 17,347 30-89 days past due 4 4 3 1 2 15 — — 29 90 days or more past due — — 1 — 1 5 — — 7 Total performing 3,199 5,444 2,985 1,052 347 4,356 — — 17,383 Nonperforming — 3 4 4 7 104 — — 122 Total residential mortgage loans (b) $ 3,199 5,447 2,989 1,056 354 4,460 — — 17,505 Home equity: Performing: Current $ 46 3 7 15 17 94 3,741 18 3,941 30-89 days past due — — — — — 2 28 — 30 90 days or more past due — — — — — 1 — — 1 Total performing 46 3 7 15 17 97 3,769 18 3,972 Nonperforming — — — — — 8 58 1 67 Total home equity $ 46 3 7 15 17 105 3,827 19 4,039 Indirect secured consumer loans: Performing: Current $ 6,034 5,875 2,600 1,217 416 239 — — 16,381 30-89 days past due 34 42 28 22 11 5 — — 142 90 days or more past due — — — — — — — — — Total performing 6,068 5,917 2,628 1,239 427 244 — — 16,523 Nonperforming 4 6 7 6 4 2 — — 29 Total indirect secured consumer loans $ 6,072 5,923 2,635 1,245 431 246 — — 16,552 Credit card: Performing: Current $ — — — — — — 1,808 — 1,808 30-89 days past due — — — — — — 21 — 21 90 days or more past due — — — — — — 18 — 18 Total performing — — — — — — 1,847 — 1,847 Nonperforming — — — — — — 27 — 27 Total credit card $ — — — — — — 1,874 — 1,874 Other consumer loans: Performing: Current $ 2,704 540 355 169 112 146 908 26 4,960 30-89 days past due 14 6 3 2 2 2 3 — 32 90 days or more past due — — — — — — 1 — 1 Total performing 2,718 546 358 171 114 148 912 26 4,993 Nonperforming 2 1 — — — 1 1 — 5 Total other consumer loans $ 2,720 547 358 171 114 149 913 26 4,998 Total residential mortgage and consumer loans: Performing: Current $ 11,979 11,858 5,943 2,452 889 4,815 6,457 44 44,437 30-89 days past due 52 52 34 25 15 24 52 — 254 90 days or more past due — — 1 — 1 6 19 — 27 Total performing 12,031 11,910 5,978 2,477 905 4,845 6,528 44 44,718 Nonperforming 6 10 11 10 11 115 86 1 250 Total residential mortgage and consumer loans (b) $ 12,037 11,920 5,989 2,487 916 4,960 6,614 45 44,968 (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 December 31, 2022, $81 of these loans were 30-89 days past due and $147 were 90 days or more past due. The Bancorp recognized $1 of losses during the three months ended March 31, 2022 due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $123 of residential mortgage loans measured at fair value at December 31, 2022, including $1 of 30-89 days past due loans and $2 of nonperforming loans. The following table summarizes the Bancorp’s gross charge-offs within the residential mortgage and consumer portfolio segments, by class and vintage: For the three months ended March 31, 2023 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2023 2022 2021 2020 2019 Prior Total Residential mortgage loans $ — — — — — 1 — — 1 Consumer loans: Home equity — — — — — — 1 — 1 Indirect secured consumer loans — 8 6 4 3 2 — — 23 Credit cards — — — — — 20 — — 20 Other consumer loans — 10 5 3 2 3 8 1 32 Total residential mortgage and consumer loans $ — 18 11 7 5 26 9 1 77 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: ($ in millions) March 31, December 31, Commercial loans and leases: Commercial and industrial loans $ 276 433 Commercial mortgage owner-occupied loans 12 14 Commercial mortgage nonowner-occupied loans 21 27 Commercial construction loans 5 56 Commercial leases 5 1 Total commercial loans and leases $ 319 531 Residential mortgage loans 92 57 Consumer loans: Home equity 43 46 Indirect secured consumer loans 6 6 Total consumer loans $ 49 52 Total portfolio loans and leases $ 460 640 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 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: March 31, 2023 December 31, 2022 ($ in millions) With an ALLL No Related Total With an ALLL No Related Total Commercial loans and leases: Commercial and industrial loans $ 239 41 280 114 101 215 Commercial mortgage owner-occupied loans 11 11 22 9 7 16 Commercial mortgage nonowner-occupied loans 18 4 22 20 4 24 Commercial construction loans 3 2 5 6 2 8 Commercial leases 4 1 5 — — — Total nonaccrual portfolio commercial loans and leases $ 275 59 334 149 114 263 Residential mortgage loans 92 37 129 81 43 124 Consumer loans: Home equity 55 13 68 45 22 67 Indirect secured consumer loans 26 1 27 26 3 29 Credit card 29 — 29 27 — 27 Other consumer loans 6 — 6 5 — 5 Total nonaccrual portfolio consumer loans $ 116 14 130 103 25 128 Total nonaccrual portfolio loans and leases (a)(b) $ 483 110 593 333 182 515 OREO and other repossessed property — 30 30 — 24 24 Total nonperforming portfolio assets (a)(b) $ 483 140 623 333 206 539 (a) Excludes an immaterial amount of nonaccrual loans held for sale as of both March 31, 2023 and December 31, 2022. (b) Includes $17 and $15 of nonaccrual government insured commercial loans whose repayments are insured by the SBA as of March 31, 2023 and December 31, 2022, respectively. The Bancorp recognized an immaterial amount of interest income on nonaccrual loans and leases for both the three months ended March 31, 2023 and 2022. 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 $175 million and $154 million as of March 31, 2023 and December 31, 2022, respectively. Modifications to Borrowers Experiencing Financial Difficulty On January 1, 2023, the Bancorp adopted ASU 2022-02, which eliminated the recognition and measurement guidance for TDRs. The amended accounting and disclosure requirements are applicable to loan modifications to borrowers experiencing financial difficulty which are completed on or after the adoption date. For further information on the adoption of ASU 2022-02, refer to Note 3. In the course of servicing its loans, the Bancorp works with borrowers who are experiencing financial difficulty to identify solutions that are mutually beneficial to both parties with the objective of mitigating the risk of losses on the loan. These efforts often result in modifications to the payment terms of the loan. The types of modifications offered to borrowers vary by type of loan and may include term extensions, interest rate reductions, payment delays (other than those that are insignificant) or combinations thereof. The Bancorp typically does not provide principal forgiveness except in circumstances where the loan has already been fully or partially charged off. The Bancorp applies its expected credit loss models consistently to both modified and non-modified loans when estimating the ALLL. For loans which are modified for borrowers experiencing financial difficulty, there is generally not a significant change to the ALLL upon modification because the Bancorp’s ALLL estimation methodologies already consider those borrowers’ financial difficulties and the resulting effects of potential modifications when estimating expected credit losses. As of March 31, 2023, portfolio loans with an amortized cost basis of $202 million, or 0.16% of total portfolio loans and leases, were modified during the three months ended March 31, 2023 for borrowers experiencing financial difficulty, as further discussed in the following sections. This amount excludes $13 million of consumer and residential mortgage loans as of March 31, 2023 which have been granted a concession under provisions of the Federal Bankruptcy Act and are monitored separately from loans modified under the Bancorp’s loan modification programs. As of March 31, 2023, the Bancorp had commitments of $109 million to lend additional funds to borrowers experiencing financial difficulty whose terms have been modified during the three months ended March 31, 2023. Commercial portfolio segment Commercial loan modifications are individually negotiated and may vary depending on the borrower’s financial situation, but the Bancorp most commonly utilizes term extensions for periods of 3 to 12 months. In less common situations and when specifically warranted by the borrower’s situation, the Bancorp may also consider offering commercial borrowers interest rate reductions or payment deferrals, which may be combined with a term extension. The following table presents the amortized cost basis of the Bancorp’s commercial portfolio loans that were modified for borrowers experiencing financial difficulty during the three months ended March 31, 2023, by portfolio class and type of modification: ($ in millions) Term Extension Interest Rate Reduction Term Extension and Interest Rate Reduction Total % of Total Class Commercial and industrial loans $ 105 1 — 106 0.18 % Commercial mortgage owner-occupied loans 1 — — 1 0.02 Commercial mortgage nonowner-occupied loans 22 — 3 25 0.43 Commercial construction loans 31 — — 31 0.56 Total commercial portfolio loans $ 159 1 3 163 0.21 % Residential mortgage portfolio segment The Bancorp has established residential mortgage loan modification programs which define the type of modifications available as well as the eligibility criteria for borrowers. The designs of the Bancorp’s modification programs for residential mortgage loans are similar to those utilized by the various GSEs. The most common modification program utilized for residential mortgage loans is a term extension for up to 480 months from the modification date, combined with a change in interest rate to a fixed rate (which may be an increase or decrease from the rate in the original loan). As part of these modifications, the Bancorp may capitalize delinquent amounts due at the time of the modification into the principal balance of the loan when determining its modified payment structure. For loans where the modification results in a new monthly payment amount, borrowers are generally required to complete a trial period of three The following table presents the amortized cost basis of the Bancorp’s residential mortgage loans that were modified for borrowers experiencing financial difficulty during the three months ended March 31, 2023, by type of modification: ($ in millions) Total % of Total Class Payment delay $ 8 0.05 % Term extension and payment delay 14 0.08 Term extension, interest rate reduction and payment delay 2 0.01 Total residential mortgage portfolio loans $ 24 0.14 % The Bancorp had $18 million of in-process modifications to residential mortgage loans outstanding as of March 31, 2023 which are excluded from the completed modification activity in the table above. These in-process modifications will be reported as completed modifications once the borrower satisfies the applicable contingencies in the modification agreement and the loan is contractually modified to make the modified terms permanent. Consumer portfolio segment The Bancorp’s modification programs for consumer loans vary based on type of loan. The most common modification program for home equity is a term extension for up to 360 months combined with a deferral of delinquent amounts due until maturity, which may also be combined with an interest rate reduction. Modification programs for credit card typically involve an interest rate reduction and an increase to the minimum monthly payment in order to repay a larger portion of outstanding balances. Modifications for indirect secured consumer loans and other consumer loans are less commonly utilized as part of the Bancorp’s loss mitigation activities and programs vary by specific product type. The following table presents the amortized cost basis of the Bancorp’s consumer portfolio loans that were modified for borrowers experiencing financial difficulty during the three months ended March 31, 2023, by portfolio class and type of modification: ($ in millions) Interest Rate Reduction Payment Deferral Term Extension and Payment Deferral Term Extension, Interest Rate Reduction and Payment Deferral Total % of Total Class Home equity $ — — 1 3 4 0.10 % Credit card 10 — — — 10 0.57 Other consumer loans — 1 — — 1 0.02 Total consumer portfolio loans $ 10 1 1 3 15 0.05 % Financial effects of loan modifications The following table presents the financial effects of the Bancorp’s portfolio loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2023, by portfolio class: Financial Effects Commercial loans: Commercial and industrial loans Weighted-average length of term extensions was 5 months. Commercial mortgage owner-occupied loans Weighted-average length of term extensions was 4 months. Commercial mortgage nonowner-occupied loans Weighted-average length of term extensions was 8 months and the weighted-average interest rate reduction was from 9.1% to 8.9%. Commercial construction loans Weighted-average length of term extensions was 12 months. Residential mortgage loans Weighted-average length of term extensions was 130 months and the amount of payment delays represented approximately 16% of the related loan balances. Consumer loans: Home equity Weighted-average length of term extensions was 24.8 years, the weighted-average interest rate reduction was from 8.0% to 6.5% and the amount of payment deferrals represented approximately 6% of the related loan balances. Credit card Weighted-average interest rate reduction was from 23.2% to 3.9%. Other consumer loans Amount of payment deferrals represented approximately 6% of the related loan balances. Credit quality of modified loans The Bancorp closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents th |
Bank Premises and Equipment
Bank Premises and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, December 31, Equipment $ 2,532 2,492 Buildings (a) 1,712 1,699 Land and improvements (a) 637 640 Leasehold improvements 581 568 Construction in progress (a) 133 124 Bank premises and equipment held for sale: Land and improvements 16 17 Buildings 6 7 Accumulated depreciation and amortization (3,398) (3,360) Total bank premises and equipment $ 2,219 2,187 (a) Buildings, land and improvements and construction in progress included $26 and $27 associated with parcels of undeveloped land intended for future branch expansion at March 31, 2023 and December 31, 2022, respectively. 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 banking centers at certain 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. The Bancorp closed a total of 23 banking centers throughout its footprint during the three months ended March 31, 2023. 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 $1 million and immaterial for the three months ended March 31, 2023 and 2022, respectively. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income. |
Operating Lease Equipment
Operating Lease Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Operating Lease Equipment | Operating Lease Equipment Operating lease equipment was $578 million and $627 million at March 31, 2023 and December 31, 2022, respectively, net of accumulated depreciation of $339 million and $338 million at March 31, 2023 and December 31, 2022, respectively. The Bancorp recorded lease income of $37 million and $36 million relating to lease payments for operating leases in leasing business revenue 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 did not recognize impairment losses during the three months ended March 31, 2023 and recognized $2 million of impairment losses during the three months ended March 31, 2022 associated with operating lease assets. The recognized impairment losses were recorded in leasing business revenue in the Condensed Consolidated Statements of Income. The following table presents future lease payments receivable from operating leases for the remainder of 2023 through 2028 and thereafter: As of March 31, 2023 ($ in millions) Undiscounted Remainder of 2023 $ 100 2024 105 2025 79 2026 51 2027 25 2028 10 Thereafter 15 Total operating lease payments $ 385 |
Lease Obligations - Lessee
Lease Obligations - Lessee | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022. The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Condensed Consolidated Balance Sheets Caption March 31, December 31, Assets Operating lease right-of-use assets Other assets $ 491 508 Finance lease right-of-use assets Bank premises and equipment 145 150 Total right-of-use assets (a) $ 636 658 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 582 599 Finance lease liabilities Long-term debt 152 156 Total lease liabilities $ 734 755 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $271 and $71, respectively, as of March 31, 2023, and $255 and $66, respectively, as of December 31, 2022. The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended 2023 2022 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 5 5 Interest on lease liabilities Interest on long-term debt 1 1 Total finance lease costs $ 6 6 Operating lease cost Net occupancy expense $ 22 20 Short-term lease cost Net occupancy expense 1 — Variable lease cost Net occupancy expense 7 7 Sublease income Net occupancy expense (1) (1) Total operating lease costs $ 29 26 Total lease costs $ 35 32 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 $1 million of impairment losses and termination charges for the ROU assets related to certain operating leases during both the three months ended March 31, 2023 and 2022. The recognized losses were recorded in net occupancy expense in the Condensed Consolidated Statements of Income. The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2023 through 2028 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities: As of March 31, 2023 ($ in millions) Operating Finance Total Remainder of 2023 $ 67 15 82 2024 86 21 107 2025 78 14 92 2026 69 9 78 2027 62 8 70 2028 53 9 62 Thereafter 298 120 418 Total undiscounted cash flows $ 713 196 909 Less: Difference between undiscounted cash flows and discounted cash flows 131 44 175 Present value of lease liabilities $ 582 152 734 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: March 31, December 31, Weighted-average remaining lease term (years): Operating leases 10.70 10.80 Finance leases 15.31 15.31 Weighted-average discount rate: Operating leases 3.43 % 3.35 Finance leases 2.97 2.94 The following table presents information related to lease transactions for the three months ended March 31: ($ in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 23 22 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 4 4 Gains on sale-leaseback transactions 1 — (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, 2022. The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Condensed Consolidated Balance Sheets Caption March 31, December 31, Assets Operating lease right-of-use assets Other assets $ 491 508 Finance lease right-of-use assets Bank premises and equipment 145 150 Total right-of-use assets (a) $ 636 658 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 582 599 Finance lease liabilities Long-term debt 152 156 Total lease liabilities $ 734 755 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $271 and $71, respectively, as of March 31, 2023, and $255 and $66, respectively, as of December 31, 2022. The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended 2023 2022 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 5 5 Interest on lease liabilities Interest on long-term debt 1 1 Total finance lease costs $ 6 6 Operating lease cost Net occupancy expense $ 22 20 Short-term lease cost Net occupancy expense 1 — Variable lease cost Net occupancy expense 7 7 Sublease income Net occupancy expense (1) (1) Total operating lease costs $ 29 26 Total lease costs $ 35 32 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 $1 million of impairment losses and termination charges for the ROU assets related to certain operating leases during both the three months ended March 31, 2023 and 2022. The recognized losses were recorded in net occupancy expense in the Condensed Consolidated Statements of Income. The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2023 through 2028 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities: As of March 31, 2023 ($ in millions) Operating Finance Total Remainder of 2023 $ 67 15 82 2024 86 21 107 2025 78 14 92 2026 69 9 78 2027 62 8 70 2028 53 9 62 Thereafter 298 120 418 Total undiscounted cash flows $ 713 196 909 Less: Difference between undiscounted cash flows and discounted cash flows 131 44 175 Present value of lease liabilities $ 582 152 734 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: March 31, December 31, Weighted-average remaining lease term (years): Operating leases 10.70 10.80 Finance leases 15.31 15.31 Weighted-average discount rate: Operating leases 3.43 % 3.35 Finance leases 2.97 2.94 The following table presents information related to lease transactions for the three months ended March 31: ($ in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 23 22 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 4 4 Gains on sale-leaseback transactions 1 — (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 | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GoodwillDuring the first quarter of 2023, the Bancorp performed a qualitative assessment of its goodwill in consideration of the current economic environment. Based upon this assessment, the Bancorp concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amounts. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of core deposit intangibles, developed technology, customer relationships, and other intangible assets which include trade names, backlog, operating leases and non-compete agreements. 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 leasing business revenue or other noninterest expense in the Condensed Consolidated Statements of Income. 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 March 31, 2023 Core deposit intangibles $ 209 (169) 40 Developed technology 106 (20) 86 Customer relationships 30 (8) 22 Other 18 (9) 9 Total intangible assets $ 363 (206) 157 As of December 31, 2022 Core deposit intangibles $ 229 (182) 47 Developed technology 106 (17) 89 Customer relationships 30 (7) 23 Other 20 (10) 10 Total intangible assets $ 385 (216) 169 As of March 31, 2023, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $12 million and $11 million for the three months ended March 31, 2023 and 2022, respectively. The Bancorp’s projections of amortization expense shown in the following table are based on existing asset balances as of March 31, 2023. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2023 through 2027 is as follows: ($ in millions) Total Remainder of 2023 $ 31 2024 35 2025 28 2026 22 2027 14 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2023 | |
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 Bancorp has consolidated VIEs related to an automobile loan securitization and a solar loan securitization where it has determined that it is the primary beneficiary. The following table provides a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets for the consolidated VIEs as of: ($ in millions) March 31, December 31, Assets: Other short-term investments $ 5 17 Indirect secured consumer loans — 141 Other consumer loans 44 44 ALLL (1) (2) Other assets — 2 Total assets $ 48 202 Liabilities: Other liabilities $ 9 9 Long-term debt 38 118 Total liabilities $ 47 127 As a result of a business acquisition in the second quarter of 2022, the Bancorp acquired interests in a previously completed securitization transaction in which solar loans were transferred to a bankruptcy remote trust which was deemed to be a VIE. Additionally, the Bancorp previously completed a securitization transaction in which the Bancorp transferred certain consumer automobile loans to a bankruptcy remote trust which was deemed to be a VIE. On January 17, 2023, the Bancorp exercised its cleanup call option on the outstanding automobile securitization. The Bancorp acquired all remaining automobile loans plus accrued interest, and those proceeds were used by the trust to repay the outstanding securitized debt. 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 access to liquidity for 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: March 31, 2023 ($ in millions) Total Total Maximum CDC investments $ 1,886 687 1,886 Private equity investments 187 — 360 Loans provided to VIEs 4,171 — 6,306 Lease pool entities 55 — 55 Solar loan securitizations 10 — 10 December 31, 2022 ($ in millions) Total Total Maximum CDC investments $ 1,856 653 1,856 Private equity investments 186 — 349 Loans provided to VIEs 4,374 — 6,438 Lease pool entities 61 — 61 Solar loan securitizations 10 — 10 CDC investments CDC invests in projects to create affordable housing and revitalize business and residential areas. 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, 2022. 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 March 31, 2023 and December 31, 2022, the Bancorp’s CDC investments included $1.6 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 $679 million and $643 million at March 31, 2023 and December 31, 2022, respectively. The unfunded commitments as of March 31, 2023 are expected to be funded from 2023 to 2040. The Bancorp has accounted for all of its qualifying LIHTC investments using the proportional amortization method of accounting. The following table summarizes the impact to the Condensed Consolidated Statements of Income related to these investments: Condensed Consolidated Statements of Income Caption (a) For the three months ended March 31, ($ in millions) 2023 2022 Proportional amortization Applicable income tax expense $ 43 35 Tax credits and other benefits Applicable income tax expense (51) (41) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three months ended March 31, 2023 and 2022. 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 providing strategic opportunities in certain cases. 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 March 31, 2023 and December 31, 2022, the Bancorp’s unfunded commitment amounts to the private equity funds were $173 million and $163 million, respectively. As part of previous commitments, the Bancorp made capital contributions to private equity investments of $12 million and $9 million during the three months ended March 31, 2023 and 2022, 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 5. At both March 31, 2023 and December 31, 2022, the Bancorp’s unfunded commitments to these entities were $2.1 billion. 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 The Bancorp is a co-investor 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’s maximum exposure to loss is equal to the carrying amount of the investments. 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. Solar loan securitizations |
Sales of Receivables and Servic
Sales of Receivables and Servicing Rights | 3 Months Ended |
Mar. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Sales of Receivables and Servicing Rights | Sales of Receivables and Servicing Rights Residential Mortgage Loan Sales The Bancorp sold fixed and adjustable-rate residential mortgage loans during the three months ended March 31, 2023 and 2022. 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 ($ in millions) 2023 2022 Residential mortgage loan sales (a) $ 1,275 3,400 Origination fees and gains on loan sales 18 25 Gross mortgage servicing fees 83 71 (a) Represents the unpaid principal balance at the time of the sale. Servicing Rights The Bancorp measures all of its mortgage servicing rights at fair value with changes in fair value reported in mortgage banking net revenue The following table presents changes in the servicing rights related to residential mortgage loans for the three months ended March 31: ($ in millions) 2023 2022 Balance, beginning of period $ 1,746 1,121 Servicing rights originated 16 47 Servicing rights purchased 16 139 Changes in fair value: Due to changes in inputs or assumptions (a) (19) 190 Other changes in fair value (b) (34) (53) Balance, end of period $ 1,725 1,444 (a) Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates. (b) Primarily reflects changes due to realized 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 ($ in millions) 2023 2022 Securities losses, net – non-qualifying hedges on mortgage servicing rights $ — (1) Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) 21 (181) MSR fair value adjustment due to changes in inputs or assumptions (a) (19) 190 (a) Included in mortgage banking net revenue in the Condensed Consolidated Statements of Income. The key economic assumptions used in measuring the servicing rights related to 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 March 31, 2023 and 2022 were as follows: March 31, 2023 March 31, 2022 Weighted- Prepayment OAS Weighted- Prepayment OAS Fixed-rate 6.7 12.4 % 621 7.3 8.1 % 729 Adjustable-rate 3.0 27.9 774 2.8 27.7 798 At March 31, 2023 and December 31, 2022, the Bancorp serviced $103.4 billion and $103.2 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. The weighted-average coupon of the MSR portfolio was 3.62% and 3.59% at March 31, 2023 and December 31, 2022, respectively. At March 31, 2023, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS for servicing rights related to residential mortgage loans are as follows: ($ in millions) (a) Prepayment OAS Fair Value Weighted- Impact of Adverse Change OAS Impact of Adverse Change on Fair Value Rate 10% 20% 50% 10% 20% Fixed-rate $ 1,720 8.6 5.6 % $ (42) (80) (178) 629 $ (45) (87) Adjustable-rate 5 5.1 20.3 (1) (1) (2) 1,204 — — (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 | 3 Months Ended |
Mar. 31, 2023 | |
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, typically in the form of cash or 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 March 31, 2023 and December 31, 2022, the balance of collateral held by the Bancorp for derivative assets was $1.5 billion and $1.3 billion, respectively. For derivative contracts cleared through certain central clearing parties whose rules treat variation margin payments as settlements of the derivative contract, the payments for variation margin of $854 million and $1.0 billion as of March 31, 2023 and December 31, 2022, respectively, were applied to reduce the respective derivative contracts and were also not included in the total amount of collateral held. As of March 31, 2023 and December 31, 2022, the credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts was $10 million and $9 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 or securities, to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp’s credit risk. As of March 31, 2023 and December 31, 2022, the balance of collateral posted by the Bancorp for derivative liabilities was $853 million and $913 million, respectively. Additionally, as of March 31, 2023 and December 31, 2022, $684 million and $1.0 billion, respectively, of variation margin payments were applied to the respective derivative contracts to reduce the Bancorp’s derivative liabilities and were also not included in the total amount of collateral posted. Certain of the Bancorp’s derivative liabilities contain credit risk-related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of both March 31, 2023 and December 31, 2022, the fair value of the additional collateral that could be required to be posted as a result of the credit risk-related contingent features being triggered was immaterial to the Bancorp’s Condensed Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result, the Bancorp determined that the impact of the Bancorp’s credit risk to the valuation of its derivative liabilities was immaterial to the Bancorp’s Condensed Consolidated Financial Statements. The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-standing derivatives. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value March 31, 2023 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 5,955 164 144 Total fair value hedges 164 144 Cash flow hedges: Interest rate floors related to C&I loans 3,000 4 — Interest rate swaps related to C&I loans 8,000 — 80 Interest rate swaps related to C&I loans - forward starting (a) 10,000 6 1 Interest rate swaps related to commercial mortgage and commercial construction loans 4,000 — 14 Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting (a) 4,000 4 — Total cash flow hedges 14 95 Total derivatives designated as qualifying hedging instruments 178 239 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 2,700 61 3 Forward contracts related to residential mortgage loans held for sale (b) 960 1 8 Swap associated with the sale of Visa, Inc. Class B Shares 3,644 — 192 Foreign exchange contracts 194 — 1 Interest-only strips 58 4 — Interest rate contracts for collateral management 12,000 10 10 Interest rate contracts for LIBOR transition 597 — — Total free-standing derivatives – risk management and other business purposes 76 214 Free-standing derivatives – customer accommodation: Interest rate contracts (c) 91,778 893 1,385 Interest rate lock commitments 367 7 — Commodity contracts 16,942 1,153 1,056 TBA securities 34 — — Foreign exchange contracts 24,329 450 406 Total free-standing derivatives – customer accommodation 2,503 2,847 Total derivatives not designated as qualifying hedging instruments 2,579 3,061 Total $ 2,757 3,300 (a) Forward starting swaps will become effective on various dates between October 2023 and February 2025. (b) Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments. (c) Derivative assets and liabilities are presented net of variation margin of $505 and $27, respectively. Fair Value December 31, 2022 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 5,955 126 195 Total fair value hedges 126 195 Cash flow hedges: Interest rate floors related to C&I loans 3,000 4 — Interest rate swaps related to C&I loans 8,000 — 76 Interest rate swaps related to C&I loans - forward starting (a) 11,000 22 — Interest rate swaps related to commercial mortgage and commercial construction loans 4,000 — 25 Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting (a) 4,000 5 — Total cash flow hedges 31 101 Total derivatives designated as qualifying hedging instruments 157 296 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 2,975 62 17 Forward contracts related to residential mortgage loans held for sale (b) 1,869 9 7 Swap associated with the sale of Visa, Inc. Class B Shares 3,358 — 195 Foreign exchange contracts 156 1 — Interest-only strips 58 4 — Interest rate contracts for collateral management 12,000 9 1 Interest rate contracts for LIBOR transition 597 — — Total free-standing derivatives – risk management and other business purposes 85 220 Free-standing derivatives – customer accommodation: Interest rate contracts (c) 83,605 998 1,663 Interest rate lock commitments 216 2 1 Commodity contracts 16,122 1,478 1,350 TBA securities 62 — — Foreign exchange contracts 25,322 453 422 Total free-standing derivatives – customer accommodation 2,931 3,436 Total derivatives not designated as qualifying hedging instruments 3,016 3,656 Total $ 3,173 3,952 (a) Forward starting swaps will become effective on various dates between February 2023 and February 2025. (b) Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments. (c) Derivative assets and liabilities are presented net of variation margin of $694 and $37, respectively. Fair Value Hedges The Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate or to hedge the exposure to changes in fair value of a recognized asset attributable to changes in the benchmark interest rate. Decisions to enter into these interest rate swaps are made primarily through consideration of the asset/liability mix of the Bancorp, the desired asset/liability sensitivity and interest rate levels. As of March 31, 2023, certain interest rate swaps met the criteria required to qualify for the shortcut method of accounting that permits the assumption of perfect offset. For all designated fair value hedges of interest rate risk as of March 31, 2023 that were not accounted for under the shortcut method of accounting, the Bancorp performed an assessment of hedge effectiveness using regression analysis with changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk recorded in the same income statement line in current period net income. The following table reflects the changes in fair value of interest rate contracts, designated as fair value hedges and the changes in fair value of the related hedged items attributable to the risk being hedged, as well as the line items in the Condensed Consolidated Statements of Income in which the corresponding gains or losses are recorded: Condensed Consolidated For the three months ended ($ in millions) 2023 2022 Long-term debt: Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ 92 (152) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt (89) 152 Available-for-sale debt and other securities: Change in fair value of interest rate swaps hedging available-for-sale debt and other securities Interest on securities — 8 Change in fair value of hedged available-for-sale debt and other securities attributable to the risk being hedged Interest on securities — (8) 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 March 31, December 31, Long-term debt: Carrying amount of the hedged items Long-term debt $ 5,954 5,865 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt 25 (64) Available-for-sale debt and other securities: Cumulative amount of fair value hedging adjustments remaining for hedged items for which hedge accounting has been discontinued Available-for-sale debt and other securities (13) (14) (a) The carrying amount represents the amortized cost basis of the hedged items (which excludes unrealized gains and losses) plus the fair value hedging adjustments. 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 March 31, 2023, 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 March 31, 2023, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 106 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 March 31, 2023 and December 31, 2022, respectively, $233 million and $498 million of net deferred losses, net of tax, on cash flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of March 31, 2023, $265 million in net unrealized losses, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next 12 months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations or the addition of other hedges subsequent to March 31, 2023. During both the three months ended March 31, 2023 and 2022, there were no gains or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP. The following table presents the pre-tax net gains (losses) recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended ($ in millions) 2023 2022 Amount of pre-tax net gains (losses) recognized in OCI $ 278 (407) Amount of pre-tax net (losses) gains reclassified from OCI into net income (65) 78 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 spread between mortgage rates and LIBOR 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. These contracts generally settle within one year or less. 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 22 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 two central clearing parties. These interest rate swaps were perfectly offsetting positions that allowed the Bancorp to lower the cash posted as required initial margin at the clearing parties, which reduced its credit exposure to the clearing parties. Given that all relevant terms for these interest rate swaps are offsetting, these trades create no additional market risk for the Bancorp. As part of the LIBOR to SOFR transition, the Bancorp received certain interest rate swap contracts from the two central clearing parties that are moving from an Effective Federal Funds Rate discounting curve to a SOFR discounting curve. The purpose of these interest rate swaps was to neutralize the impact on collateral requirements due to the change in discounting curves implemented by the central clearing parties. The net (losses) gains 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 ($ in millions) 2023 2022 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (9) 33 Interest rate contracts related to MSR portfolio Mortgage banking net revenue 21 (181) Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income — (2) Equity contracts: Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (31) (11) 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, 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. The total notional amount of the risk participation agreements was $3.9 billion and $3.7 billion at March 31, 2023 and December 31, 2022, respectively, and the fair value was a liability of $8 million and $7 million at March 31, 2023 and December 31, 2022, respectively, which is included in other liabilities in the Condensed Consolidated Balance Sheets. As of March 31, 2023, the risk participation agreements had a weighted-average remaining life of 3.5 years. The Bancorp’s maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves in its loan and lease portfolio. Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of: ($ in millions) March 31, December 31, Pass $ 3,738 3,597 Special mention 61 81 Substandard 72 32 Total $ 3,871 3,710 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 ($ in millions) 2023 2022 Interest rate contracts: Interest rate contracts for customers (contract revenue) Commercial banking revenue $ 10 16 Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense (3) 6 Interest rate lock commitments Mortgage banking net revenue 13 — Commodity contracts: Commodity contracts for customers (contract revenue) Commercial banking revenue 10 9 Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) (1) Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Commercial banking revenue 19 16 Foreign exchange contracts for customers (contract revenue) Other noninterest income (3) 2 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 table provides a summary of offsetting derivative financial instruments: Gross Amount Recognized in the Condensed Consolidated Balance Sheets (a) Gross Amounts Not Offset in the Derivatives Collateral (b) Net Amount As of March 31, 2023 Derivative assets $ 2,750 (1,096) (894) 760 Derivative liabilities 3,300 (1,096) (219) 1,985 As of December 31, 2022 Derivative assets $ 3,171 (1,405) (887) 879 Derivative liabilities 3,951 (1,405) (406) 2,140 (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 | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, December 31, FHLB advances $ 6,800 4,300 Securities sold under repurchase agreements 330 388 Derivative collateral 208 124 Other borrowed money 26 26 Total other short-term borrowings $ 7,364 4,838 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 March 31, 2023 and December 31, 2022, all securities sold under repurchase agreements were secured by agency residential mortgage-backed securities and the repurchase agreements had an overnight remaining contractual maturity. |
Capital Actions
Capital Actions | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Capital Actions | Capital Actions Accelerated Share Repurchase Transaction During the three months ended March 31, 2023, the Bancorp entered into and settled an accelerated share repurchase transaction. As part of the transaction, the Bancorp entered into a forward contract in which the final number of shares delivered at settlement was based generally on a discount to the average daily volume weighted-average price of the Bancorp’s common stock during the term of the repurchase agreement. The accelerated share repurchase was treated as two separate transactions, (i) the repurchase of treasury shares on the repurchase date and (ii) a forward contract indexed to the Bancorp’s common stock. The following table presents a summary of the Bancorp’s accelerated share repurchase transaction that was entered into and settled during the three months ended March 31, 2023: Repurchase Date Amount Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Final Settlement Date January 24, 2023 $ 200 4,911,875 678,121 5,589,996 March 06, 2023 |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, December 31, Commitments to extend credit $ 84,732 83,437 Letters of credit 2,046 2,009 Forward contracts related to residential mortgage loans held for sale 960 1,869 Capital commitments for private equity investments 173 163 Purchase obligations 102 113 Capital expenditures 97 94 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 March 31, 2023 and December 31, 2022, the Bancorp had a reserve for unfunded commitments, including letters of credit, totaling $232 million and $216 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio. Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of: ($ in millions) March 31, December 31, Pass $ 82,677 81,345 Special mention 756 976 Substandard 1,299 1,116 Total commitments to extend credit $ 84,732 83,437 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 March 31, 2023: ($ in millions) Less than 1 year (a) $ 988 1 - 5 years (a) 1,047 Over 5 years 11 Total letters of credit $ 2,046 (a) Includes $2 and $3 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire in 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 March 31, 2023 and December 31, 2022 and are considered guarantees in accordance with U.S. GAAP. Approximately 67% of the total standby letters of credit were collateralized as of both March 31, 2023 and December 31, 2022. 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 $22 million at both March 31, 2023 and December 31, 2022. The Bancorp monitors the credit risk associated with letters of credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio. Risk ratings of outstanding letters of credit under this risk rating system are summarized in the following table as of: ($ in millions) March 31, December 31, Pass $ 1,849 1,827 Special mention 58 47 Substandard 138 135 Doubtful 1 — Total letters of credit $ 2,046 2,009 At March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022, total VRDNs, of which FTS was the remarketing agent for all, were $421 million and $423 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 $100 million and $102 million of the VRDNs remarketed by FTS at March 31, 2023 and December 31, 2022, respectively. These letters of credit are included in the total letters of credit balance provided in the previous tables. The Bancorp held $5 million and $3 million of these VRDNs in its portfolio and classified them as trading debt securities at March 31, 2023 and December 31, 2022, 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 18 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, 2022. As of both March 31, 2023 and December 31, 2022, the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $9 million 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 March 31, 2023 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 $12 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. During both the three months ended March 31, 2023 and 2022, the Bancorp paid an immaterial a mount in the form of make-whole payments and repurchased $18 million and $14 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the three months ended March 31, 2023 and 2022 were $36 million and $23 million, respectively. Total outstanding repurchase demand inventory was $23 million and $25 million at March 31, 2023 and December 31, 2022, 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 $14 million at both March 31, 2023 and December 31, 2022. In the event of 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 March 31, 2023 and December 31, 2022. 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 22 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 March 31, 2023, 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 $192 million at March 31, 2023 and $195 million at December 31, 2022. Refer to Note 14 and Note 22 for further information. After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows: Period ($ 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 Q4 2021 250 11 Q2 2022 600 25 Q4 2022 350 15 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 3 Months Ended |
Mar. 31, 2023 | |
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 17 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 that was initially approved by the trial court but reversed by the U.S. Second Circuit Court of Appeals and remanded to the district court for further proceedings. 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. Pursuant to the terms of the Settlement Agreement, $700 million of the additional $900 million has been returned to the defendants due to the level of opt-outs from the class. 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, and on March 15, 2023, the Second Circuit affirmed that order. 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. On September 27, 2021, the Court entered an order certifying a class of merchants pursuing claims for injunctive relief. The ultimate outcome in this matter, including the timing of resolution, remains uncertain. Refer to Note 17 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 action lawsuits 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 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 $440 million, plus prejudgment interest. On March 26, 2021, the trial court granted plaintiffs’ motion for class certification. On March 29, 2023, the trial court issued an order granting summary judgement on plaintiffs’ TILA claim, with statutory damages capped at $2 million plus costs and attorney fees. Plaintiffs’ claim for breach of contract proceeded to trial beginning on April 17, 2023. On April 27, 2023, the jury returned a verdict in favor of the Bank, finding a breach of contract, but that the voluntary payment doctrine is a complete defense to the breach of contract claim. Fifth Third expects plaintiffs to appeal. 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. On February 12, 2021, the court granted Fifth Third’s motion to transfer venue to the United States District Court for the Southern District of Ohio. The case is currently in discovery and no trial date has been set. Shareholder Litigation On July 31, 2020, a putative shareholder class action lawsuit 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 an alleged improper cross-selling strategy in filings made in connection with the Bancorp’s merger with MB Financial, Inc. On March 19, 2021, the trial court denied the defendants’ motion to dismiss. The parties have reached an agreement in principle to resolve the matter, subject to documentation and court approval. The Bancorp does not expect the settlement to have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. In addition, shareholder derivative lawsuits have been filed seeking monetary damages on behalf of the Bancorp alleging certain claims against various officers and directors relating to an alleged improper cross-selling strategy. Five lawsuits have been consolidated into a single action pending in the U.S. District Court for the Northern District of Illinois captioned In re Fifth Third Bancorp Derivative Litigation, Case No. 1:20-cv-04115. Those cases consist of: (1) Pemberton v. Carmichael, et al., Case No. 20-cv-4115 (filed July 13, 2020); (2) Meyer v. Carmichael, et al., Case No. 20-cv-4244 (filed July 17, 2020); (3) Cox v. Carmichael, et al., Case No. 20-cv-4660 (filed August 7, 2020); (4) Hansen v. Carmichael, et al., Case No. 20-cv-5339 (filed September 10, 2020); and (5) Reese v. Carmichael, et al., Case No. 1:21-cv-01631 (filed November 4, 2020 originally as Case No. 20-cv-866 in the Southern District of Ohio). On March 31, 2022, the district court granted the defendants’ motion to dismiss those cases without prejudice. On April 29, 2022, plaintiffs filed an amended complaint. On March 8, 2023, the district court granted the defendants’ motion to dismiss the amended complaint with prejudice. There was no appeal, so the case is terminated. Also separately pending in the Hamilton County, Ohio Court of Common Pleas is Sandys v. Carmichael, et al., Case No. A2004539 (filed December 28, 2020) and The City of Miami Firefighters’ and Police Officers’ Retirement Trust v. Carmichael, et al., Case No. A2200330 (filed January 27, 2022). On April 18, 2022, the Sandys shareholder voluntarily dismissed the lawsuit without prejudice. The case brought by The City of Miami Firefighters’ and Police Officers’ Retirement Trust is pending. 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 shareholder demands 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. Howards v. Fifth Third Bank On March 8, 2018, Plaintiff Troy Howards filed a putative class action against Fifth Third Bank in the United States District Court for the Central District of California (Case No. 1:18-CV-869, S.D. OH 2018), alleging that Fifth Third improperly charged certain fees related to insufficient funds, customer overdrafts, and out-of-network ATM use. Venue was subsequently transferred to the United States District Court for the Southern District of Ohio. Plaintiff filed claims for breach of contract, breach of the implied covenant of good faith and fair dealing, for violation of the California Unfair Competition Law (Ca. Bus. & Prof. Code sec. 17200, et seq)., and the California Consumer Legal Remedies Act (Cal. Civ. Code sec. 1750 et seq.). Plaintiff seeks to represent putative nationwide classes and California classes of consumers allegedly charged improper repeated insufficient funds fees, improper overdraft fees, and fees for out-of-network ATM use from the beginning of the applicable statute of limitations to present. Plaintiff seeks damages of restitution and disgorgement in the amount of the allegedly unlawfully charged fees, damages proved at trial together with interest as allowed by applicable law. Fifth Third filed a motion to dismiss all claims. On February 6, 2023, the trial court issued an order dismissing the Plaintiff’s breach of contract claim with respect to out-of-network ATM fees and dismissing the two claims for violations of California consumer protection statutes. The Court denied Fifth Third’s motion to dismiss as it relates to the claims for breach of contract and breach of the implied covenant of good faith and fair dealing for certain customer overdrafts and insufficient funds fees. The case is now set to begin discovery, and no trial date has been set. 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. For example, the Bancorp’s broker-dealer and investment advisory subsidiaries are cooperating with an investigation by the SEC regarding compliance with certain record-keeping requirements for business-related electronic communications on unapproved channels. Likewise, the Commodity Futures Trading Commission (“CFTC”) is conducting a similar investigation into the Bancorp’s provisionally registered swap dealer. The SEC and CFTC are conducting similar investigations of record-keeping practices at other financial institutions. 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 $151 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 | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The applicable income tax expense was $160 million and $118 million for the three months ended March 31, 2023 and 2022, respectively. The effective tax rates for the three months ended March 31, 2023 and 2022 were 22.3% and 19.2%, respectively. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next twelve months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next twelve months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The tables below present the activity of the components of OCI and AOCI for the three months ended: Total OCI Total AOCI March 31, 2023 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding gains on available-for-sale debt securities arising during period $ 788 (188) 600 Reclassification adjustment for net gains on available-for-sale debt securities included in net income — — — Net unrealized losses on available-for-sale debt securities 788 (188) 600 (4,589) 600 (3,989) Unrealized holding gains on cash flow hedge derivatives arising during period 278 (63) 215 Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 65 (15) 50 Net unrealized losses on cash flow hedge derivatives 343 (78) 265 (498) 265 (233) Reclassification of amounts to net periodic benefit costs — — — Defined benefit pension plans, net — — — (19) — (19) Other — — — (4) — (4) Total $ 1,131 (266) 865 (5,110) 865 (4,245) Total OCI Total AOCI March 31, 2022 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale debt securities arising during period $ (2,505) 576 (1,929) Reclassification adjustment for net gains on available-for-sale debt securities included in net income (3) 1 (2) Net unrealized losses on available-for-sale debt securities (2,508) 577 (1,931) 891 (1,931) (1,040) Unrealized holding losses on cash flow hedge derivatives arising during period (407) 94 (313) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (78) 18 (60) Net unrealized losses on cash flow hedge derivatives (485) 112 (373) 353 (373) (20) Reclassification of amounts to net periodic benefit costs 1 — 1 Defined benefit pension plans, net 1 — 1 (33) 1 (32) Other — — — (4) — (4) Total $ (2,992) 689 (2,303) 1,207 (2,303) (1,096) The table below presents reclassifications out of AOCI: Condensed Consolidated Statements of Income Caption For the three months ended ($ in millions) 2023 2022 Net unrealized losses on available-for-sale debt securities: (b) Net gains included in net income Securities gains (losses), net $ — 3 Income before income taxes — 3 Applicable income tax expense — (1) Net income — 2 Net unrealized losses on cash flow hedge derivatives: (b) Interest rate contracts related to C&I, commercial mortgage and commercial construction loans Interest and fees on loans and leases (65) 78 Income before income taxes (65) 78 Applicable income tax expense 15 (18) Net income (50) 60 Net periodic benefit costs: (b) Amortization of net actuarial loss Compensation and benefits (a) — (1) Income before income taxes — (1) Applicable income tax expense — — Net income — (1) Total reclassifications for the period Net income $ (50) 61 (a) This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 22 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2022 for further information. (b) Amounts in parentheses indicate reductions to net income. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share: 2023 2022 For the three months ended March 31, (in millions, except per share data) Income Average Per Share Income Average Per Share Earnings Per Share: Net income available to common shareholders $ 535 $ 474 Less: Income allocated to participating securities — 1 Net income allocated to common shareholders $ 535 684 $ 0.78 $ 473 688 $ 0.69 Earnings Per Diluted Share: Net income available to common shareholders $ 535 $ 474 Effect of dilutive securities: Stock-based awards — 6 — 8 Net income available to common shareholders plus assumed conversions $ 535 $ 474 Less: Income allocated to participating securities — 1 Net income allocated to common shareholders plus assumed conversions $ 535 690 $ 0.78 $ 473 696 $ 0.68 Shares are excluded from the computation of earnings per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the three months ended March 31, 2023 and 2022 excludes 4 million and 1 million shares, respectively, of stock-based awards because their inclusion would have been anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022. 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 March 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 2,689 — — 2,689 Obligations of states and political subdivisions securities — 3 — 3 Mortgage-backed securities: Agency residential mortgage-backed securities — 11,073 — 11,073 Agency commercial mortgage-backed securities — 26,183 — 26,183 Non-agency commercial mortgage-backed securities — 4,550 — 4,550 Asset-backed securities and other debt securities — 5,331 — 5,331 Available-for-sale debt and other securities (a) 2,689 47,140 — 49,829 Trading debt securities: U.S. Treasury and federal agencies securities 669 18 — 687 Obligations of states and political subdivisions securities — 49 — 49 Agency residential mortgage-backed securities — 11 — 11 Asset-backed securities and other debt securities — 427 — 427 Trading debt securities 669 505 — 1,174 Equity securities 311 12 — 323 Residential mortgage loans held for sale — 599 — 599 Residential mortgage loans (b) — — 128 128 Servicing rights — — 1,725 1,725 Derivative assets: Interest rate contracts 3 1,140 11 1,154 Foreign exchange contracts — 450 — 450 Commodity contracts 125 1,028 — 1,153 Derivative assets (c) 128 2,618 11 2,757 Total assets $ 3,797 50,874 1,864 56,535 Liabilities: Derivative liabilities: Interest rate contracts $ 8 1,629 8 1,645 Foreign exchange contracts — 407 — 407 Equity contracts — — 192 192 Commodity contracts 34 1,022 — 1,056 Derivative liabilities (d) 42 3,058 200 3,300 Short positions: U.S. Treasury and federal agencies securities 74 — — 74 Asset-backed securities and other debt securities — 148 — 148 Short positions (d) 74 148 — 222 Total liabilities $ 116 3,206 200 3,522 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $396, $491 and $3, respectively, at March 31, 2023. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2022 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 2,495 — — 2,495 Obligations of states and political subdivisions securities — 18 — 18 Mortgage-backed securities: Agency residential mortgage-backed securities — 11,237 — 11,237 Agency commercial mortgage-backed securities — 26,322 — 26,322 Non-agency commercial mortgage-backed securities — 4,715 — 4,715 Asset-backed securities and other debt securities — 5,842 — 5,842 Available-for-sale debt and other securities (a) 2,495 48,134 — 50,629 Trading debt securities: U.S. Treasury and federal agencies securities 23 22 — 45 Obligations of states and political subdivisions securities — 14 — 14 Agency residential mortgage-backed securities — 8 — 8 Asset-backed securities and other debt securities — 347 — 347 Trading debt securities 23 391 — 414 Equity securities 306 11 — 317 Residential mortgage loans held for sale — 600 — 600 Residential mortgage loans (b) — — 123 123 Servicing rights — — 1,746 1,746 Derivative assets: Interest rate contracts 12 1,222 7 1,241 Foreign exchange contracts — 454 — 454 Commodity contracts 56 1,422 — 1,478 Derivative assets (c) 68 3,098 7 3,173 Total assets $ 2,892 52,234 1,876 57,002 Liabilities: Derivative liabilities: Interest rate contracts $ 7 1,970 8 1,985 Foreign exchange contracts — 422 — 422 Equity contracts — — 195 195 Commodity contracts 92 1,258 — 1,350 Derivative liabilities (d) 99 3,650 203 3,952 Short positions: U.S. Treasury and federal agencies securities 66 — — 66 Asset-backed securities and other debt securities — 112 — 112 Short positions (d) 66 112 — 178 Total liabilities $ 165 3,762 203 4,130 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $381, $491 and $2, respectively, at December 31, 2022. (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 which primarily utilize quoted prices of securities with similar characteristics. Level 2 securities may include federal agencies 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 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 transferred from Level 2 to 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 13 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 March 31, 2023 and December 31, 2022, 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 17 for additional information on the Covered Litigation. The net asset fair value of the Bancorp’s IRLCs at March 31, 2023 was $7 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 $2 million and $4 million, respectively. Immediate increases in current interest rates of 25 bps and 50 bps would result in decreases in the fair value of the IRLCs of approximately $3 million and $6 million, respectively. The decrease in fair value of IRLCs due to immediate 10% and 20% adverse changes in the assumed loan closing rates would both be approximately $1 million, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would both be approximately $1 million. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. Short positions Where quoted prices are available in an active market, short positions are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, then fair values are estimated using pricing models which primarily utilize quoted prices of securities with similar characteristics and therefore are classified within Level 2 of the valuation hierarchy. Level 2 securities include asset-backed and other debt securities. The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended March 31, 2023 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 123 1,746 (1) (195) 1,673 Total (losses) gains (realized/unrealized): (b) Included in earnings 3 (53) 14 (31) (67) Purchases/originations — 32 (2) — 30 Settlements (2) — (8) 34 24 Transfers into Level 3 (c) 4 — — — 4 Balance, end of period $ 128 1,725 3 (192) 1,664 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 March 31, 2023 $ 3 (35) 7 (31) (56) (a) Net interest rate derivatives include derivative assets and liabilities of $11 and $8, respectively, as of March 31, 2023. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at March 31, 2023. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended March 31, 2022 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 154 1,121 4 (214) 1,065 Total gains (losses) (realized/unrealized): (b) Included in earnings (6) 137 2 (11) 122 Purchases/originations — 186 (2) — 184 Settlements (9) — (6) 27 12 Transfers into Level 3 (c) 6 — — — 6 Balance, end of period $ 145 1,444 (2) (198) 1,389 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 March 31, 2022 $ (6) 207 7 (11) 197 (a) Net interest rate derivatives include derivative assets and liabilities of $8 and $10, respectively, as of March 31, 2022. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at March 31, 2022. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. The total losses and gains included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended ($ in millions) 2023 2022 Mortgage banking net revenue $ (37) 132 Commercial banking revenue 1 1 Other noninterest income (31) (11) Total (losses) gains $ (67) 122 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 March 31, 2023 and 2022 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended ($ in millions) 2023 2022 Mortgage banking net revenue $ (26) 207 Commercial banking revenue 1 1 Other noninterest income (31) (11) Total (losses) gains $ (56) 197 The following tables present information as of March 31, 2023 and 2022 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 March 31, 2023 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 128 Loss rate model Interest rate risk factor (22.2) - 5.7% (10.3) % (a) Credit risk factor — - 23.2% 0.5 % (a) (Fixed) 5.6 % (b) Servicing rights 1,725 DCF Prepayment speed — - 100.0% (Adjustable) 20.3 % (b) (Fixed) 629 (b) OAS (bps) 477 - 1,447 (Adjustable) 1,204 (b) IRLCs, net 7 DCF Loan closing rates 22.3 - 97.5% 82.5 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (192) DCF Timing of the resolution Q1 2024 - Q1 2027 Q2 2025 (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 March 31, 2022 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 145 Loss rate model Interest rate risk factor (13.2) - 5.9 % (3.7) % (a) Credit risk factor — - 20.7 % 0.2 % (a) (Fixed) 6.7 % (b) Servicing rights 1,444 DCF Prepayment speed — - 100.0 % (Adjustable) 19.7 % (b) (Fixed) 749 (b) OAS (bps) 615 - 1,513 (Adjustable) 1,092 (b) IRLCs, net 6 DCF Loan closing rates 42.0 - 98.3 % 85.9 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (198) DCF Timing of the resolution Q1 2023 - Q2 2025 Q2 2024 (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. 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 March 31, 2023 and 2022, and for which a nonrecurring fair value adjustment was recorded during the three months ended March 31, 2023 and 2022, 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 As of March 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended March 31, 2023 Commercial loans held for sale $ — — 21 21 — Commercial loans and leases — — 160 160 (76) Consumer and residential mortgage loans — — 138 138 (2) OREO — — 2 2 — Bank premises and equipment — — 5 5 (1) Private equity investments — — 2 2 (1) Total $ — — 328 328 (80) Fair Value Measurements Using Total (Losses) Gains As of March 31, 2022 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended March 31, 2022 Commercial loans and leases — — 178 178 (32) Consumer and residential mortgage loans — — 117 117 — OREO — — 1 1 1 Bank premises and equipment — — 1 1 — Operating lease equipment — — 6 6 (2) Private equity investments — 9 2 11 (6) Total $ — 9 305 314 (39) The following tables present information as of March 31, 2023 and 2022 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 March 31, 2023 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 21 Comparable company analysis Market comparable transactions NM NM Commercial loans and leases 160 Appraised value Collateral value NM NM Consumer and residential mortgage loans 138 Appraised value Collateral value NM NM OREO 2 Appraised value Appraised value NM NM Bank premises and equipment 5 Appraised value Appraised value NM NM Private equity investments 2 Comparable company analysis Market comparable transactions NM NM As of March 31, 2022 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans and leases $ 178 Appraised value Collateral value NM NM Consumer and residential mortgage loans 117 Appraised value Collateral value NM NM OREO 1 Appraised value Appraised value NM NM Bank premises and equipment 1 Appraised value Appraised value NM NM Operating lease equipment 6 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 during the three months ended March 31, 2023 and 2022. These valuations were based on 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). Portfolio loans and leases During the three months ended March 31, 2023 and 2022, the Bancorp recorded nonrecurring adjustments to certain collateral-dependent portfolio loans and leases. When a 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 amortized cost basis of the loan or lease exceeds the estimated net realizable value of the collateral, then an ALLL is recognized, or a charge-off once the remaining amount is considered uncollectible. OREO During the three months ended March 31, 2023 and 2022, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties and branch-related real estate no longer intended to be used for banking purposes 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 an immaterial amount in losses recorded as charge-offs on new OREO properties transferred from loans, during both the three months ended March 31, 2023 and 2022. These losses also included an immaterial amount recorded as negative fair value adjustments and $1 million recorded as positive fair value adjustments for properties subsequent to their transfer into OREO for the three months ended March 31, 2023 and 2022, respectively. 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. 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 7. 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 during the three months ended March 31, 2023 and recognized gains of $4 million during the three months ended March 31, 2022 resulting from observable price changes. The carrying value of the Bancorp’s private equity investments still held as of March 31, 2023 includes a cumulative $40 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 impairments of $1 million and $10 million for the three months ended March 31, 2023 and 2022, respectively. The carrying value of the Bancorp’s private equity investments still held as of March 31, 2023 includes a cumulative $35 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 March 31, 2023 and 2022 for which the fair value option was elected, as well as the changes in fair value of the underlying IRLCs, included losses of $8 million and $10 million, respectively. These losses 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 $1 million at both March 31, 2023 and December 31, 2022. Interest on loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income. The following table summarizes the difference between the fair value and the unpaid principal balance for residential mortgage loans measured at fair value as of: March 31, 2023 ($ in millions) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Residential mortgage loans measured at fair value $ 727 735 (8) Nonaccrual loans 3 3 — December 31, 2022 Residential mortgage loans measured at fair value $ 723 733 (10) Past due loans of 30-89 days or more 1 1 — Nonaccrual loans 2 2 — The Bancorp may invest in certain hybrid financial instruments with embedded derivatives that are not clearly and closely related to the host contracts. The Bancorp elected to measure the entire instrument at fair value with changes in fair value recognized in earnings. The Bancorp did not hold these investments as of March 31, 2023 and December 31, 2022. Fair value changes recognized in earnings included gains of zero and $11 million for the three months ended March 31, 2023 and 2022, respectively, reported in securities (losses) gains, net in the Condensed Consolidated Statements of Income. Fair Value of Certain Financial Instruments The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis: Net Carrying Fair Value Measurements Using Total As of March 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 2,780 2,780 — — 2,780 Other short-term investments 9,794 9,794 — — 9,794 Other securities 890 — 890 — 890 Held-to-maturity securities 2 — — 2 2 Loans and leases held for sale 150 — — 154 154 Portfolio loans and leases: Commercial loans and leases 76,096 — — 76,271 76,271 Consumer and residential mortgage loans 44,418 — — 43,170 43,170 Total portfolio loans and leases, net $ 120,514 — — 119,441 119,441 Financial liabilities: Deposits $ 162,975 — 162,924 — 162,924 Federal funds purchased 177 177 — — 177 Other short-term borrowings 7,364 — 7,362 — 7,362 Long-term debt 12,868 11,900 394 — 12,294 Net Carrying Fair Value Measurements Using Total As of December 31, 2022 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 3,466 3,466 — — 3,466 Other short-term investments 8,351 8,351 — — 8,351 Other securities 874 — 874 — 874 Held-to-maturity securities 5 — — 5 5 Loans and leases held for sale 407 — — 414 414 Portfolio loans and leases: Commercial loans and leases 75,262 — — 75,104 75,104 Consumer and residential mortgage loans 43,901 — — 42,193 42,193 Total portfolio loans and leases, net $ 119,163 — — 117,297 117,297 Financial liabilities: Deposits $ 163,690 — 163,634 — 163,634 Federal funds purchased 180 180 — — 180 Other short-term borrowings 4,838 — 4,829 — 4,829 Long-term debt 13,778 13,218 411 — 13,629 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Bancorp reports on three business segments: Commercial Banking, Consumer & Small Business Banking 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. The Bancorp’s methodology for allocating provision for credit losses 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 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 relationship depth 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. Consumer and Small Business Banking provides a full range of deposit and loan products to individuals and small businesses through a network of full-service banking centers and relationships with indirect and correspondent loan originators in addition to providing products designed to meet the specific needs of small businesses, including cash management services. Consumer and Small Business Banking includes the Bancorp’s residential mortgage, home equity loans and lines of credit, credit cards, automobile and other indirect lending and other consumer lending activities. Residential mortgage activities include the origination, retention and servicing of residential mortgage loans, sales and securitizations of those loans and all associated hedging activities. Indirect lending activities include extending loans to consumers through automobile dealers, motorcycle dealers, powersport dealers, recreational vehicle dealers and marine dealers. Other consumer lending activities include home improvement and solar energy installation loans originated through a network of contractors and installers. Wealth and Asset Management provides a full range of wealth management services for individuals, companies and not-for-profit organizations. Wealth and Asset Management is made up of three main businesses: FTS, an indirect wholly-owned subsidiary of the Bancorp; 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 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, non-profits, states and municipalities. The following tables present the results of operations and assets by business segment for the three months ended: March 31, 2023 ($ in millions) Commercial Consumer Wealth General Eliminations Total Net interest income $ 977 1,257 101 (818) — 1,517 Provision for credit losses 46 51 — 67 — 164 Net interest income after provision for credit losses $ 931 1,206 101 (885) — 1,353 Noninterest income: Commercial banking revenue $ 160 1 — — — 161 Wealth and asset management revenue 1 53 138 — (46) (a) 146 Service charges on deposits 87 51 — (1) — 137 Card and processing revenue 22 74 1 3 — 100 Mortgage banking net revenue — 69 — — — 69 Leasing business revenue 57 — — — — 57 Other noninterest income (b) 16 25 (1) (18) — 22 Securities gains (losses), net (7) — — 11 — 4 Securities losses, net – non-qualifying hedges on MSRs — — — — — — Total noninterest income $ 336 273 138 (5) (46) 696 Noninterest expense: Compensation and benefits $ 190 224 61 282 — 757 Technology and communications 2 7 — 109 — 118 Net occupancy expense (d) 11 51 3 16 — 81 Equipment expense 7 11 — 19 — 37 Leasing business expense 34 — — — — 34 Marketing expense — 17 — 12 — 29 Card and processing expense 3 20 — (1) — 22 Other noninterest expense 304 315 82 (402) (46) 253 Total noninterest expense $ 551 645 146 35 (46) 1,331 Income (loss) before income taxes $ 716 834 93 (925) — 718 Applicable income tax expense (benefit) 136 175 19 (170) — 160 Net income (loss) $ 580 659 74 (755) — 558 Total goodwill $ 2,324 2,365 226 — — 4,915 Total assets $ 83,545 85,296 11,707 28,109 (c) — 208,657 (a) Revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $1 for bank premises and equipment recorded in Consumer and Small Business Banking and an immaterial amount recorded in General Corporate and Other. For more information, refer to Note 7 and Note 22. (c) Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7. (d) Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 9. March 31, 2022 ($ in millions) Commercial Consumer Wealth General Eliminations Total Net interest income $ 523 517 35 120 — 1,195 Provision for (benefit from) credit losses (34) 29 — 50 — 45 Net interest income after provision for (benefit from) credit losses $ 557 488 35 70 — 1,150 Noninterest income: Commercial banking revenue $ 135 — — — — 135 Wealth and asset management revenue — 51 142 — (44) (a) 149 Service charges on deposits 100 53 — (1) — 152 Card and processing revenue 20 74 1 2 — 97 Mortgage banking net revenue — 52 — — — 52 Leasing business revenue 62 (c) — — — — 62 Other noninterest income (b) 22 27 1 2 — 52 Securities losses, net — — — (14) — (14) Securities losses, net – non-qualifying hedges on MSRs — (1) — — — (1) Total noninterest income $ 339 256 144 (11) (44) 684 Noninterest expense: Compensation and benefits $ 182 218 60 251 — 711 Technology and communications 5 4 — 92 — 101 Net occupancy expense (e) 10 48 3 16 — 77 Equipment expense 7 9 — 20 — 36 Leasing business expense 32 — — — — 32 Marketing expense 1 11 — 12 — 24 Card and processing expense 2 18 — (1) — 19 Other noninterest expense 240 293 79 (346) (44) 222 Total noninterest expense $ 479 601 142 44 (44) 1,222 Income before income taxes $ 417 143 37 15 — 612 Applicable income tax expense 76 31 8 3 — 118 Net income $ 341 112 29 12 — 494 Total goodwill $ 1,980 2,303 231 — — 4,514 Total assets $ 79,970 86,626 13,715 31,148 (d) — 211,459 (a) Revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of an immaterial amount for bank premises and equipment recorded in Consumer and Small Business Banking. For more information, refer to Note 7 and Note 22. (c) Includes impairment charges of $2 for operating lease equipment. For more information, refer to Note 8 and Note 22. (d) Includes bank premises and equipment of $25 classified as held for sale. For more information, refer to Note 7. (e) Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 9. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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 any impairment recorded and 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 among consolidated entities 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, cash flows and changes in equity for the three months ended March 31, 2023 and 2022 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2022 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. |
Accounting and Reporting Developments | Standards Adopted in 2023 The Bancorp adopted the following new accounting standards during the three months ended March 31, 2023: ASU 2021-08 – Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU 2021-08, which provides guidance on the accounting for revenue contracts with customers which are acquired in a business combination. The amendments generally state that an acquirer accounts for an acquired revenue contract with a customer as if it had originated the contract. The amendments also provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and liabilities. The Bancorp adopted the amended guidance on January 1, 2023 on a prospective basis and will apply the amendments for business combinations occurring on or after the adoption date. The adoption of the amended guidance did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. ASU 2022-01 – Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method In March 2022, the FASB issued ASU 2022-01, which clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets and renames the last-of-layer method the portfolio layer method. Under previous guidance, the last-of-layer method enabled an entity to apply fair value hedging to a stated amount of a closed portfolio of prepayable financial assets without having to consider prepayment risk or credit risk when measuring those assets. ASU 2022-01 expands the scope of this guidance to allow entities to apply the portfolio layer method to portfolios of all financial assets, including both prepayable and nonprepayable financial assets. It allows entities to designate multiple layers within a single closed portfolio as individual hedged items. Further, ASU 2022-01 clarifies that the fair value basis adjustments should be adjusted at the portfolio level and should not be allocated to individual assets within the portfolio. The Bancorp adopted the amended guidance on January 1, 2023 on a prospective basis, except for the amendments related to fair value basis adjustments that, if applicable, were required to be applied on a modified retrospective basis. The adoption of the amended guidance did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. ASU 2022-02 – Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued ASU 2022-02, which eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310-40, amends the guidance on calculating the allowance for credit losses for restructured financing receivables and requires entities to evaluate all receivable modifications under ASC 310-20 to determine whether a modification made to a borrower results in a new loan or the continuation of an existing loan. The amended guidance adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty. The amended guidance also requires disclosure of current period gross charge-offs by year of origination within the vintage disclosures required by ASC 326. The Bancorp adopted the amended guidance on January 1, 2023 on a prospective basis, except for the amendments impacting the measurement of the ACL for TDRs and reasonably expected TDRs, which were adopted on a modified retrospective basis. Upon adoption, the Bancorp recorded a decrease to the ACL of $49 million and a cumulative-effect adjustment to retained earnings of $37 million, net of tax. This adjustment was primarily attributable to the removal of the requirement to use a discounted cash flow approach to measure the impact of certain concessions granted as part of a TDR and the removal of the requirement to consider the impacts of reasonably expected TDRs when estimating expected credit losses. The required disclosures are included in Note 6. ASU 2022-04 – Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations In September 2022, the FASB issued ASU 2022-04, which provides guidance on the disclosure requirements for supplier finance programs. The amendments require that a buyer in a supplier finance program disclose sufficient qualitative and quantitative information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The Bancorp adopted the amended guidance on January 1, 2023 on a retrospective basis, except for the amendments related to disclosure of rollforward information, which are required to be adopted on January 1, 2024 on a prospective basis. The adoption of the amended guidance did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. Significant Accounting Standards Issued but Not Yet Adopted The following significant accounting standards were issued but not yet adopted by the Bancorp as of March 31, 2023: ASU 2022-03 – Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions In June 2022, the FASB issued ASU 2022-03, which clarifies the guidance in ASC 820 on the fair value measurement of an equity security that is subject to contractual sale restrictions, stating that such restrictions are not considered part of the unit of account of the security and therefore are not considered in measuring fair value. The amended guidance also requires disclosure of the fair value of equity securities subject to contractual sale restrictions and certain additional information about those restrictions. The amended guidance is effective for the Bancorp on January 1, 2024, with early adoption permitted, and is to be applied prospectively. ASU 2023-02 – Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method In March 2023, the FASB issued ASU 2023-02, which expands the permitted usage of the proportional amortization method to include additional tax credit investment programs beyond qualifying LIHTC structures if certain conditions are met. The amended guidance permits entities to make elections to apply the proportional amortization method on a program-by-program basis for qualifying programs and also makes certain amendments to measurement and disclosure guidance. The amended disclosure guidance applies to all investments within programs where the proportional amortization method has been elected, including investments within those programs which do not meet the criteria to permit application of the proportional amortization method. The amended guidance is effective for the Bancorp on January 1, 2024, with early adoption permitted, and is to be applied on a modified retrospective or retrospective basis, except for certain provisions affecting the measurement of existing LIHTC investments which may be applied prospectively. The Bancorp is in the process of evaluating the impact of the amended guidance on the Condensed Consolidated Financial Statements. Reference Rate Reform and LIBOR Transition 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. In January 2021, the FASB issued ASU 2021-01, which clarified that the optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting also apply to derivatives that are affected by the discounting transition. The expedients and exceptions provided by the amendments did 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 for which an entity had elected certain optional expedients. Subsequently, in December 2022, the FASB issued ASU 2022-06 which deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The amendments in ASU 2020-04 (as amended) are effective for the Bancorp as of March 12, 2020 and may be applied through December 31, 2024. 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, 2024. Updates to Significant Accounting and Reporting Policies In conjunction with the adoption of ASU 2022-02 on January 1, 2023, the Bancorp has updated its accounting and reporting policies for nonaccrual loans and leases, loan modifications and the ALLL 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, 2022 for discussion of these accounting and reporting policies for periods prior to January 1, 2023. |
Portfolio loans and leases | Portfolio loans and leases - nonaccrual loans and leases The Bancorp places loans and leases on nonaccrual status when full repayment of principal and interest is not expected, unless the loan or lease is well-secured and in the process of collection. When a loan is placed on nonaccrual status, the accrual of interest, amortization of loan premium, accretion of loan discount and amortization/accretion of deferred net direct loan origination fees or costs are discontinued and all previously accrued and unpaid interest is reversed against income. The Bancorp utilizes the following policies to determine when full repayment of principal and interest on a loan or lease is not expected: • Commercial loans are placed on nonaccrual status when there is a clear indication that the borrower’s cash flows may not be sufficient to meet payments as they become due. Such loans are also placed on nonaccrual status when the principal or interest is past due 90 days or more, unless the loan is fully or partially guaranteed by a government agency. • Residential mortgage loans are placed on nonaccrual status when principal and interest payments become past due 150 days or more, unless repayment of the loan is fully or partially guaranteed by a government agency. Residential mortgage loans may stay on nonaccrual status for an extended time as the foreclosure process typically lasts longer than 180 days. The Bancorp maintains a reserve for the portion of accrued interest receivable that it estimates will be uncollectible, at the portfolio level, for residential mortgage loans which are past due 90 days or more and on accrual status. This reserve is recorded as a component of other assets on the Bancorp’s Condensed Consolidated Balance Sheets, consistent with the classification of the related accrued interest receivable. • Home equity loans and lines of credit are placed on nonaccrual status if principal or interest has been in default for 90 days or more. Home equity loans and lines of credit that have been in default for 60 days or more are also placed on nonaccrual status if the senior lien has been in default 120 days or more. • Credit card loans that have been modified for a borrower experiencing financial difficulty are placed on nonaccrual status at the time of the modification. Subsequent to the modification, accounts are placed on nonaccrual status when required payments become past due 90 days or more in accordance with the modified terms. • Indirect secured consumer loans and other consumer loans are generally placed on nonaccrual status when principal or interest becomes past due 90 days or more. • Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower are considered collateral-dependent loans and placed on nonaccrual status, regardless of the borrower’s payment history or capacity to repay in the future. Well-secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from the sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance in the near future. Nonaccrual loans and leases may be returned to accrual status when all delinquent principal and interest payments become current in accordance with the loan agreement and the remaining principal and interest payments are reasonably assured of repayment in accordance with the contractual terms of the loan agreement, or when the loan is both well-secured and in the process of collection. Nonaccrual loans that have been modified for a borrower experiencing financial difficulty may not be returned to accrual status unless such loans have sustained repayment performance of six months or more and are reasonably assured of repayment in accordance with the modified terms. Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower may be returned to accrual status provided there is a sustained payment history of twelve months or more after bankruptcy and collectability is reasonably assured for all remaining contractual payments. Except for loans discharged in a Chapter 7 bankruptcy that are not reaffirmed by the borrower, accruing residential mortgage loans, home equity loans and lines of credit, indirect secured consumer loans and other consumer loans modified for borrowers experiencing financial difficulty are maintained on accrual status, provided there is reasonable assurance of repayment and of performance according to the modified terms based upon a current, well-documented credit evaluation. Accruing commercial loans modified for borrowers experiencing financial difficulty are maintained on accrual status provided there is a sustained payment history of six months or more prior to the modification and collectability is reasonably assured for all remaining contractual payments under the modified terms. Modifications of commercial loans and credit card loans for borrowers experiencing financial difficulty that do not have a sustained payment history of six months or more in accordance with their modified terms remain on nonaccrual status until a six-month payment history is sustained. Nonaccrual loans and leases are generally accounted for on the cost recovery method due to the existence of doubt as to the collectability of the remaining amortized cost basis of nonaccrual assets. Under the cost recovery method, any payments received are applied to reduce principal. Once the entire amortized cost basis is collected, additional payments received are treated as recoveries of amounts previously charged-off until recovered in full, and any subsequent payments are treated as interest income. In certain circumstances when the remaining amortized cost basis of a nonaccrual loan or lease is deemed to be fully collectible, the Bancorp may utilize the cash basis method to account for interest payments received on a nonaccrual loan or lease. Under the cash basis method, interest income is recognized when cash is received, to the extent such income would have been accrued on the loan’s remaining balance at the contractual rate. The Bancorp records a charge-off to the ALLL when all or a portion of a loan or lease is deemed to be uncollectible, after considering the net realizable value of any underlying collateral. Commercial loans and leases on nonaccrual status and criticized commercial loans with aggregate borrower relationships exceeding $1 million are subject to an individual review to identify charge-offs. The Bancorp does not have an established delinquency threshold for partially or fully charging off commercial loans and leases. The Bancorp records charge-offs on consumer loans in accordance with applicable regulatory guidelines, which are primarily based on a loan’s delinquency status. Portfolio loans and leases - loan modifications In circumstances where an existing loan is modified (including a restructuring, refinancing, or other changes in terms which affect the loan’s contractual cash flows), the Bancorp evaluates whether the modification results in a continuation of the existing loan or the origination of a new loan. The Bancorp accounts for a modification as a new loan if the terms of the modified loan are at least as favorable to the Bancorp as the terms for comparable loans to other borrowers with similar collection risks who are obtaining new loans, or if the modification of terms is considered more than minor. If neither of these conditions are met, then the Bancorp will account for the loan as a continuation of the existing loan. When a modification is accounted for as a new loan, any unamortized net deferred fees or costs from the original loan are recognized in interest income when the new loan is originated. When a modification is accounted for as a continuation of the existing loan, the unamortized net deferred fees or costs from the original loan and any additional incremental direct fees and costs are carried forward and deferred as part of the amortized cost basis of the modified loan. |
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. 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 extension or renewal options are embedded in the original contract and not unconditionally cancellable by the Bancorp. Accrued interest receivable on loans is 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 a reserve for accrued interest receivable as part of its ALLL. However, the Bancorp does record a reserve for the portion of accrued interest receivable that it expects to be uncollectible. 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 expected 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 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 on nonaccrual status 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 or lease structure (including modifications, if any) and other factors when determining the amount of the 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 observable market value of the loan or lease or the present value of its expected cash flows discounted at the loan’s effective interest rate. Specific allowances on individually evaluated commercial loans and leases are reviewed quarterly and adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience. The Bancorp considers loans to be collateral-dependent when it becomes probable that repayment of the loan will be provided through the sale or operation of the collateral instead of from payments made by the borrower. The expected credit losses for these loans are typically estimated based on the fair value of the underlying collateral, less expected costs to sell where applicable. Specific allowances on individually evaluated consumer and residential mortgage loans 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. 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 that changing economic conditions may have on the Bancorp’s customers. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31: ($ in millions) 2023 2022 Cash Payments: Interest $ 682 158 Income taxes 21 11 Transfers: Portfolio loans and leases to loans and leases held for sale $ 3 71 Loans and leases held for sale to portfolio loans and leases 4 402 Portfolio loans and leases to OREO 3 2 Bank premises and equipment to OREO 8 15 Supplemental Disclosures: Net additions to lease liabilities under operating leases $ 1 31 Net additions to lease liabilities under finance leases — 3 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 securities portfolios as of: March 31, 2023 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 2,828 1 (140) 2,689 Obligations of states and political subdivisions securities 3 — — 3 Mortgage-backed securities: Agency residential mortgage-backed securities 12,246 6 (1,179) 11,073 Agency commercial mortgage-backed securities 29,231 10 (3,058) 26,183 Non-agency commercial mortgage-backed securities 5,057 — (507) 4,550 Asset-backed securities and other debt securities 5,703 2 (374) 5,331 Other securities (a) 890 — — 890 Total available-for-sale debt and other securities $ 55,958 19 (5,258) 50,719 Held-to-maturity securities: Asset-backed securities and other debt securities $ 2 — — 2 Total held-to-maturity securities $ 2 — — 2 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdi ngs of $396, $491 and $3, r espectively, at March 31, 2023, that are carried at cost. December 31, 2022 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 2,683 — (188) 2,495 Obligations of states and political subdivisions securities 18 — — 18 Mortgage-backed securities: Agency residential mortgage-backed securities 12,604 5 (1,372) 11,237 Agency commercial mortgage-backed securities 29,824 11 (3,513) 26,322 Non-agency commercial mortgage-backed securities 5,235 — (520) 4,715 Asset-backed securities and other debt securities 6,292 3 (453) 5,842 Other securities (a) 874 — — 874 Total available-for-sale debt and other securities $ 57,530 19 (6,046) 51,503 Held-to-maturity securities: Obligations of states and political subdivisions securities $ 3 — — 3 Asset-backed securities and other debt securities 2 — — 2 Total held-to-maturity securities $ 5 — — 5 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $381, $491 and $2, respectively, at December 31, 2022, that are carried at cost. The following table provides the fair value of trading debt securities and equity securities as of: ($ in millions) March 31, December 31, Trading debt securities $ 1,174 414 Equity securities 323 317 |
Realized Gains and Losses Recognized in Income from Investment Securities | The following table presents the components of net securities gains and losses recognized in the Condensed Consolidated Statements of Income, including those recognized related to the Bancorp’s non-qualifying hedging strategy for MSRs: For the three months ended March 31, ($ in millions) 2023 2022 Available-for-sale debt and other securities: Realized gains $ 29 3 Realized losses (29) — Net realized gains on available-for-sale debt and other securities $ — 3 Trading debt securities: Net realized losses — (1) Net unrealized gains — 11 Net trading debt securities gains $ — 10 Equity securities: Net realized gains — 1 Net unrealized gains (losses) 4 (29) Net equity securities gains (losses) $ 4 (28) Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities (a) $ 4 (15) (a) Excludes $1 of net securities gains and $3 of net securities losses for the three months ended March 31, 2023 and 2022, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These losses are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. |
Contractual Maturity Schedule | The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity securities as of March 31, 2023 are shown in the following table: ($ in millions) Available-for-Sale Debt and Other Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value Debt securities: (a) Due in 1 year or less $ 136 133 — — Due after 1 year through 5 years 13,519 12,697 — — Due after 5 years through 10 years 30,863 27,727 — — Due after 10 years 10,550 9,272 2 2 Other securities 890 890 — — Total $ 55,958 50,719 2 2 (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 March 31, 2023 U.S. Treasury and federal agencies securities $ 863 (15) 1,622 (125) 2,485 (140) Obligations of states and political subdivisions securities — — 1 — 1 — Agency residential mortgage-backed securities 4,293 (291) 6,616 (888) 10,909 (1,179) Agency commercial mortgage-backed securities 12,883 (1,047) 12,881 (2,011) 25,764 (3,058) Non-agency commercial mortgage-backed securities 788 (43) 3,761 (464) 4,549 (507) Asset-backed securities and other debt securities 1,529 (42) 3,630 (332) 5,159 (374) Total $ 20,356 (1,438) 28,511 (3,820) 48,867 (5,258) December 31, 2022 U.S. Treasury and federal agencies securities $ 2,400 (188) — — 2,400 (188) Obligations of states and political subdivisions securities — — 1 — 1 — Agency residential mortgage-backed securities 10,078 (1,170) 938 (202) 11,016 (1,372) Agency commercial mortgage-backed securities 22,083 (2,487) 3,697 (1,026) 25,780 (3,513) Non-agency commercial mortgage-backed securities 3,621 (272) 1,059 (248) 4,680 (520) Asset-backed securities and other debt securities 3,164 (178) 2,495 (275) 5,659 (453) Total $ 41,346 (4,295) 8,190 (1,751) 49,536 (6,046) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: ($ in millions) March 31, December 31, Loans and leases held for sale: Commercial and industrial loans $ 21 73 Commercial leases 3 — Residential mortgage loans 725 934 Total loans and leases held for sale $ 749 1,007 Portfolio loans and leases: Commercial and industrial loans $ 57,720 57,232 Commercial mortgage loans 11,228 11,020 Commercial construction loans 5,548 5,433 Commercial leases 2,743 2,704 Total commercial loans and leases $ 77,239 76,389 Residential mortgage loans $ 17,608 17,628 Home equity 3,958 4,039 Indirect secured consumer loans 16,484 16,552 Credit card 1,761 1,874 Other consumer loans 5,807 4,998 Total consumer loans $ 45,618 45,091 Total portfolio loans and leases $ 122,857 121,480 |
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 and Still Accruing (a) ($ in millions) March 31, December 31, March 31, December 31, Commercial and industrial loans $ 57,741 57,305 17 11 Commercial mortgage loans 11,228 11,020 — — Commercial construction loans 5,548 5,433 — — Commercial leases 2,746 2,704 — 2 Residential mortgage loans 18,333 18,562 9 7 Home equity 3,958 4,039 1 1 Indirect secured consumer loans 16,484 16,552 — — Credit card 1,761 1,874 18 18 Other consumer loans 5,807 4,998 1 1 Total loans and leases $ 123,606 122,487 46 40 Less: Loans and leases held for sale 749 1,007 Total portfolio loans and leases $ 122,857 121,480 (a) Excludes government guaranteed residential mortgage loans. The following table presents a summary of net charge-offs (recoveries): For the three months ended ($ in millions) 2023 2022 Commercial and industrial loans $ 30 9 Commercial mortgage loans — (1) Commercial construction loans 1 — Residential mortgage loans — (1) Home equity — (1) Indirect secured consumer loans 14 7 Credit card 15 13 Other consumer loans 18 8 Total net charge-offs $ 78 34 |
Investment in Lease Financing | The following table presents the components of the net investment in portfolio leases as of: ($ in millions) (a) March 31, December 31, Net investment in direct financing leases: Lease payment receivable (present value) $ 582 570 Unguaranteed residual assets (present value) 109 107 Net investment in sales-type leases: Lease payment receivable (present value) 1,728 1,704 Unguaranteed residual assets (present value) 76 76 (a) Excludes $248 and $247 of leveraged leases at March 31, 2023 and December 31, 2022, respectively. |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The following table presents undiscounted cash flows for both direct financing and sales-type leases for the remainder of 2023 through 2028 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows: As of March 31, 2023 ($ in millions) Direct Financing Sales-Type Leases Remainder of 2023 $ 145 388 2024 159 471 2025 113 409 2026 95 239 2027 58 177 2028 18 108 Thereafter 37 82 Total undiscounted cash flows $ 625 1,874 Less: Difference between undiscounted cash flows and discounted cash flows 43 146 Present value of lease payments (recognized as lease receivables) $ 582 1,728 |
Credit Quality and the Allowa_2
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Summary of Transactions in the ALLL | The following tables summarize transactions in the ALLL by portfolio segment: For the three months ended March 31, 2023 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,127 245 822 2,194 Impact of adoption of ASU 2022-02 4 (36) (17) (49) Losses charged off (a) (33) (1) (76) (110) Recoveries of losses previously charged off (a) 2 1 29 32 Provision for (benefit from) loan and lease losses 43 (24) 129 148 Balance, end of period $ 1,143 185 887 2,215 (a) The Bancorp recorded $9 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the three months ended March 31, 2022 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,102 235 555 1,892 Losses charged off (a) (11) (1) (52) (64) Recoveries of losses previously charged off (a) 3 2 25 30 Benefit from loan and lease losses 16 3 31 50 Balance, end of period $ 1,110 239 559 1,908 (a) The Bancorp recorded $8 in both losses charged off and recoveries of losses previously charged off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: As of March 31, 2023 ($ in millions) Commercial Residential Consumer Total ALLL: (a) Individually evaluated $ 78 — 2 80 Collectively evaluated 1,065 185 885 2,135 Total ALLL $ 1,143 185 887 2,215 Portfolio loans and leases: (b) Individually evaluated $ 319 92 49 460 Collectively evaluated 76,920 17,388 27,961 122,269 Total portfolio loans and leases $ 77,239 17,480 28,010 122,729 (a) Includes $2 related to commercial leveraged leases at March 31, 2023. (b) Excludes $128 of residential mortgage loans measured at fair value and includes $248 of commercial leveraged leases, net of unearned income at March 31, 2023. As of December 31, 2022 ($ in millions) Commercial Residential Consumer Total ALLL: (a) Individually evaluated $ 30 47 45 122 Collectively evaluated 1,097 198 777 2,072 Total ALLL $ 1,127 245 822 2,194 Portfolio loans and leases: (b) Individually evaluated $ 531 560 297 1,388 Collectively evaluated 75,858 16,945 27,166 119,969 Total portfolio loans and leases $ 76,389 17,505 27,463 121,357 (a) Includes $2 related to commercial leveraged leases at December 31, 2022. (b) Excludes $123 of residential mortgage loans measured at fair value and includes $247 of commercial leveraged leases, net of unearned income at December 31, 2022. |
Loan and Leases Balances by Credit Quality Indicator | The following tables present the amortized cost basis of the Bancorp’s commercial portfolio segment, by class and vintage, disaggregated by credit risk grade: As of March 31, 2023 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2023 2022 2021 2020 2019 Prior Total Commercial and industrial loans: Pass $ 805 4,364 2,673 885 402 648 44,136 — 53,913 Special mention 7 44 11 8 36 36 1,414 — 1,556 Substandard 76 121 58 218 25 108 1,630 — 2,236 Doubtful — — 2 — — — 13 — 15 Total commercial and industrial loans $ 888 4,529 2,744 1,111 463 792 47,193 — 57,720 Commercial mortgage owner-occupied loans: Pass $ 240 1,139 754 477 248 369 1,743 — 4,970 Special mention 12 14 29 3 2 12 22 — 94 Substandard 25 20 21 17 71 37 140 — 331 Doubtful — — — — — — — — — Total commercial mortgage owner- occupied loans $ 277 1,173 804 497 321 418 1,905 — 5,395 Commercial mortgage nonowner-occupied loans: Pass $ 165 1,087 447 474 393 345 2,508 — 5,419 Special mention 47 — 32 26 — 2 139 — 246 Substandard 27 30 24 18 1 17 51 — 168 Doubtful — — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 239 1,117 503 518 394 364 2,698 — 5,833 Commercial construction loans: Pass $ 14 73 31 87 8 34 4,980 — 5,227 Special mention — — 33 — — — 147 — 180 Substandard 4 49 — — — 2 86 — 141 Doubtful — — — — — — — — — Total commercial construction loans $ 18 122 64 87 8 36 5,213 — 5,548 Commercial leases: Pass $ 271 495 606 280 186 799 — — 2,637 Special mention — 3 9 4 2 16 — — 34 Substandard 7 5 15 2 3 40 — — 72 Doubtful — — — — — — — — — Total commercial leases $ 278 503 630 286 191 855 — — 2,743 Total commercial loans and leases: Pass $ 1,495 7,158 4,511 2,203 1,237 2,195 53,367 — 72,166 Special mention 66 61 114 41 40 66 1,722 — 2,110 Substandard 139 225 118 255 100 204 1,907 — 2,948 Doubtful — — 2 — — — 13 — 15 Total commercial loans and leases $ 1,700 7,444 4,745 2,499 1,377 2,465 57,009 — 77,239 As of December 31, 2022 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2022 2021 2020 2019 2018 Prior Total Commercial and industrial loans: Pass $ 3,825 3,098 994 445 269 488 44,521 — 53,640 Special mention 65 24 15 36 10 24 1,221 — 1,395 Substandard 150 77 233 26 7 107 1,597 — 2,197 Doubtful — — — — — — — — — Total commercial and industrial loans $ 4,040 3,199 1,242 507 286 619 47,339 — 57,232 Commercial mortgage owner-occupied loans: Pass $ 1,177 826 522 257 160 264 1,624 — 4,830 Special mention 17 15 13 12 13 2 56 — 128 Substandard 51 14 20 73 11 25 106 — 300 Doubtful — — — — — — — — — Total commercial mortgage owner-occupied loans $ 1,245 855 555 342 184 291 1,786 — 5,258 Commercial mortgage nonowner-occupied loans: Pass $ 1,127 462 490 397 220 170 2,453 — 5,319 Special mention 1 84 26 — — 23 88 — 222 Substandard 65 19 18 1 1 17 100 — 221 Doubtful — — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 1,193 565 534 398 221 210 2,641 — 5,762 Commercial construction loans: Pass $ 82 31 93 8 35 7 4,684 — 4,940 Special mention — — — — — — 293 — 293 Substandard 53 — — — — 2 145 — 200 Doubtful — — — — — — — — — Total commercial construction loans $ 135 31 93 8 35 9 5,122 — 5,433 Commercial leases: Pass $ 584 664 306 192 146 696 — — 2,588 Special mention — 4 2 4 7 19 — — 36 Substandard 1 20 2 4 21 32 — — 80 Doubtful — — — — — — — — — Total commercial leases $ 585 688 310 200 174 747 — — 2,704 Total commercial loans and leases: Pass $ 6,795 5,081 2,405 1,299 830 1,625 53,282 — 71,317 Special mention 83 127 56 52 30 68 1,658 — 2,074 Substandard 320 130 273 104 40 183 1,948 — 2,998 Doubtful — — — — — — — — — Total commercial loans and leases $ 7,198 5,338 2,734 1,455 900 1,876 56,888 — 76,389 The following table summarizes the Bancorp’s gross charge-offs within the commercial portfolio segment, by class and vintage: For the three months ended March 31, 2023 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2023 2022 2021 2020 2019 Prior Total Commercial loans and leases: Commercial and industrial loans $ — 1 11 — — — 20 — 32 Commercial construction loans — — — — — — 1 — 1 Total commercial loans and leases $ — 1 11 — — — 21 — 33 The following tables present the amortized cost basis 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 March 31, 2023 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2023 2022 2021 2020 2019 Prior Total Residential mortgage loans: Performing: Current (a) $ 249 3,222 5,355 2,931 1,028 4,543 — — 17,328 30-89 days past due — 1 2 3 1 10 — — 17 90 days or more past due — 1 2 — 1 5 — — 9 Total performing 249 3,224 5,359 2,934 1,030 4,558 — — 17,354 Nonperforming — 1 3 4 4 114 — — 126 Total residential mortgage loans (b) $ 249 3,225 5,362 2,938 1,034 4,672 — — 17,480 Home equity: Performing: Current $ 14 45 3 7 14 106 3,663 14 3,866 30-89 days past due — — — — — 2 21 — 23 90 days or more past due — — — — — 1 — — 1 Total performing 14 45 3 7 14 109 3,684 14 3,890 Nonperforming — — — — — 7 60 1 68 Total home equity $ 14 45 3 7 14 116 3,744 15 3,958 Indirect secured consumer loans: Performing: Current $ 1,595 5,526 5,355 2,302 1,041 528 — — 16,347 30-89 days past due 2 32 33 19 14 10 — — 110 90 days or more past due — — — — — — — — — Total performing 1,597 5,558 5,388 2,321 1,055 538 — — 16,457 Nonperforming — 5 5 7 5 5 — — 27 Total indirect secured consumer loans $ 1,597 5,563 5,393 2,328 1,060 543 — — 16,484 Credit card: Performing: Current $ — — — — — — 1,696 — 1,696 30-89 days past due — — — — — — 18 — 18 90 days or more past due — — — — — — 18 — 18 Total performing — — — — — — 1,732 — 1,732 Nonperforming — — — — — — 29 — 29 Total credit card $ — — — — — — 1,761 — 1,761 Other consumer loans: Performing: Current $ 722 2,928 481 323 149 229 903 31 5,766 30-89 days past due — 19 5 2 2 3 3 — 34 90 days or more past due — 1 — — — — — — 1 Total performing 722 2,948 486 325 151 232 906 31 5,801 Nonperforming — 3 1 — — 1 1 — 6 Total other consumer loans $ 722 2,951 487 325 151 233 907 31 5,807 Total residential mortgage and consumer loans: Performing: Current $ 2,580 11,721 11,194 5,563 2,232 5,406 6,262 45 45,003 30-89 days past due 2 52 40 24 17 25 42 — 202 90 days or more past due — 2 2 — 1 6 18 — 29 Total performing 2,582 11,775 11,236 5,587 2,250 5,437 6,322 45 45,234 Nonperforming — 9 9 11 9 127 90 1 256 Total residential mortgage and consumer loans (b) $ 2,582 11,784 11,245 5,598 2,259 5,564 6,412 46 45,490 (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 March 31, 2023, $76 of these loans were 30-89 days past due and $154 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during the three months ended March 31, 2023, due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $128 of residential mortgage loans measured at fair value at March 31, 2023, including $3 of nonperforming loans. As of December 31, 2022 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2022 2021 2020 2019 2018 Prior Total Residential mortgage loans: Performing: Current (a) $ 3,195 5,440 2,981 1,051 344 4,336 — — 17,347 30-89 days past due 4 4 3 1 2 15 — — 29 90 days or more past due — — 1 — 1 5 — — 7 Total performing 3,199 5,444 2,985 1,052 347 4,356 — — 17,383 Nonperforming — 3 4 4 7 104 — — 122 Total residential mortgage loans (b) $ 3,199 5,447 2,989 1,056 354 4,460 — — 17,505 Home equity: Performing: Current $ 46 3 7 15 17 94 3,741 18 3,941 30-89 days past due — — — — — 2 28 — 30 90 days or more past due — — — — — 1 — — 1 Total performing 46 3 7 15 17 97 3,769 18 3,972 Nonperforming — — — — — 8 58 1 67 Total home equity $ 46 3 7 15 17 105 3,827 19 4,039 Indirect secured consumer loans: Performing: Current $ 6,034 5,875 2,600 1,217 416 239 — — 16,381 30-89 days past due 34 42 28 22 11 5 — — 142 90 days or more past due — — — — — — — — — Total performing 6,068 5,917 2,628 1,239 427 244 — — 16,523 Nonperforming 4 6 7 6 4 2 — — 29 Total indirect secured consumer loans $ 6,072 5,923 2,635 1,245 431 246 — — 16,552 Credit card: Performing: Current $ — — — — — — 1,808 — 1,808 30-89 days past due — — — — — — 21 — 21 90 days or more past due — — — — — — 18 — 18 Total performing — — — — — — 1,847 — 1,847 Nonperforming — — — — — — 27 — 27 Total credit card $ — — — — — — 1,874 — 1,874 Other consumer loans: Performing: Current $ 2,704 540 355 169 112 146 908 26 4,960 30-89 days past due 14 6 3 2 2 2 3 — 32 90 days or more past due — — — — — — 1 — 1 Total performing 2,718 546 358 171 114 148 912 26 4,993 Nonperforming 2 1 — — — 1 1 — 5 Total other consumer loans $ 2,720 547 358 171 114 149 913 26 4,998 Total residential mortgage and consumer loans: Performing: Current $ 11,979 11,858 5,943 2,452 889 4,815 6,457 44 44,437 30-89 days past due 52 52 34 25 15 24 52 — 254 90 days or more past due — — 1 — 1 6 19 — 27 Total performing 12,031 11,910 5,978 2,477 905 4,845 6,528 44 44,718 Nonperforming 6 10 11 10 11 115 86 1 250 Total residential mortgage and consumer loans (b) $ 12,037 11,920 5,989 2,487 916 4,960 6,614 45 44,968 (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 December 31, 2022, $81 of these loans were 30-89 days past due and $147 were 90 days or more past due. The Bancorp recognized $1 of losses during the three months ended March 31, 2022 due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $123 of residential mortgage loans measured at fair value at December 31, 2022, including $1 of 30-89 days past due loans and $2 of nonperforming loans. The following table summarizes the Bancorp’s gross charge-offs within the residential mortgage and consumer portfolio segments, by class and vintage: For the three months ended March 31, 2023 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2023 2022 2021 2020 2019 Prior Total Residential mortgage loans $ — — — — — 1 — — 1 Consumer loans: Home equity — — — — — — 1 — 1 Indirect secured consumer loans — 8 6 4 3 2 — — 23 Credit cards — — — — — 20 — — 20 Other consumer loans — 10 5 3 2 3 8 1 32 Total residential mortgage and consumer loans $ — 18 11 7 5 26 9 1 77 |
Financing Receivable, Past Due | 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 March 31, 2023 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 57,549 109 62 171 57,720 17 Commercial mortgage owner-occupied loans 5,386 6 3 9 5,395 — Commercial mortgage nonowner-occupied loans 5,832 1 — 1 5,833 — Commercial construction loans 5,541 2 5 7 5,548 — Commercial leases 2,723 16 4 20 2,743 — Total portfolio commercial loans and leases $ 77,031 134 74 208 77,239 17 (a) Includes accrual and nonaccrual loans and leases. Current Loans and Leases (a) Past Due Total Loans 90 Days Past As of December 31, 2022 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 57,092 98 42 140 57,232 11 Commercial mortgage owner-occupied loans 5,241 14 3 17 5,258 — Commercial mortgage nonowner-occupied loans 5,756 6 — 6 5,762 — Commercial construction loans 5,424 7 2 9 5,433 — Commercial leases 2,698 4 2 6 2,704 2 Total portfolio commercial loans and leases $ 76,211 129 49 178 76,389 13 (a) Includes accrual and nonaccrual loans and leases. The following table presents the Bancorp’s portfolio loans that were modified to borrowers experiencing financial difficulty during the three months ended March 31, 2023, by age and portfolio class: Past Due ($ in millions) Current 30-89 Days 90 Days or More Total Commercial loans: Commercial and industrial loans $ 106 — — 106 Commercial mortgage owner-occupied loans 1 — — 1 Commercial mortgage nonowner-occupied loans 25 — — 25 Commercial construction loans 31 — — 31 Residential mortgage loans 23 1 — 24 Consumer loans: Home equity 4 — — 4 Credit card (a) 6 3 1 10 Other consumer loans 1 — — 1 Total portfolio loans $ 197 4 1 202 (a) Credit card loans continue to be reported as delinquent after modification as they are not returned to current status until the borrower demonstrates a willingness and ability to repay the loan according to its modified terms. |
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: ($ in millions) March 31, December 31, Commercial loans and leases: Commercial and industrial loans $ 276 433 Commercial mortgage owner-occupied loans 12 14 Commercial mortgage nonowner-occupied loans 21 27 Commercial construction loans 5 56 Commercial leases 5 1 Total commercial loans and leases $ 319 531 Residential mortgage loans 92 57 Consumer loans: Home equity 43 46 Indirect secured consumer loans 6 6 Total consumer loans $ 49 52 Total portfolio loans and leases $ 460 640 |
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: March 31, 2023 December 31, 2022 ($ in millions) With an ALLL No Related Total With an ALLL No Related Total Commercial loans and leases: Commercial and industrial loans $ 239 41 280 114 101 215 Commercial mortgage owner-occupied loans 11 11 22 9 7 16 Commercial mortgage nonowner-occupied loans 18 4 22 20 4 24 Commercial construction loans 3 2 5 6 2 8 Commercial leases 4 1 5 — — — Total nonaccrual portfolio commercial loans and leases $ 275 59 334 149 114 263 Residential mortgage loans 92 37 129 81 43 124 Consumer loans: Home equity 55 13 68 45 22 67 Indirect secured consumer loans 26 1 27 26 3 29 Credit card 29 — 29 27 — 27 Other consumer loans 6 — 6 5 — 5 Total nonaccrual portfolio consumer loans $ 116 14 130 103 25 128 Total nonaccrual portfolio loans and leases (a)(b) $ 483 110 593 333 182 515 OREO and other repossessed property — 30 30 — 24 24 Total nonperforming portfolio assets (a)(b) $ 483 140 623 333 206 539 (a) Excludes an immaterial amount of nonaccrual loans held for sale as of both March 31, 2023 and December 31, 2022. (b) Includes $17 and $15 of nonaccrual government insured commercial loans whose repayments are insured by the SBA as of March 31, 2023 and December 31, 2022, respectively. |
Financing Receivable, Modified | The following table presents the amortized cost basis of the Bancorp’s commercial portfolio loans that were modified for borrowers experiencing financial difficulty during the three months ended March 31, 2023, by portfolio class and type of modification: ($ in millions) Term Extension Interest Rate Reduction Term Extension and Interest Rate Reduction Total % of Total Class Commercial and industrial loans $ 105 1 — 106 0.18 % Commercial mortgage owner-occupied loans 1 — — 1 0.02 Commercial mortgage nonowner-occupied loans 22 — 3 25 0.43 Commercial construction loans 31 — — 31 0.56 Total commercial portfolio loans $ 159 1 3 163 0.21 % The following table presents the amortized cost basis of the Bancorp’s residential mortgage loans that were modified for borrowers experiencing financial difficulty during the three months ended March 31, 2023, by type of modification: ($ in millions) Total % of Total Class Payment delay $ 8 0.05 % Term extension and payment delay 14 0.08 Term extension, interest rate reduction and payment delay 2 0.01 Total residential mortgage portfolio loans $ 24 0.14 % The following table presents the amortized cost basis of the Bancorp’s consumer portfolio loans that were modified for borrowers experiencing financial difficulty during the three months ended March 31, 2023, by portfolio class and type of modification: ($ in millions) Interest Rate Reduction Payment Deferral Term Extension and Payment Deferral Term Extension, Interest Rate Reduction and Payment Deferral Total % of Total Class Home equity $ — — 1 3 4 0.10 % Credit card 10 — — — 10 0.57 Other consumer loans — 1 — — 1 0.02 Total consumer portfolio loans $ 10 1 1 3 15 0.05 % The following table presents the financial effects of the Bancorp’s portfolio loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2023, by portfolio class: Financial Effects Commercial loans: Commercial and industrial loans Weighted-average length of term extensions was 5 months. Commercial mortgage owner-occupied loans Weighted-average length of term extensions was 4 months. Commercial mortgage nonowner-occupied loans Weighted-average length of term extensions was 8 months and the weighted-average interest rate reduction was from 9.1% to 8.9%. Commercial construction loans Weighted-average length of term extensions was 12 months. Residential mortgage loans Weighted-average length of term extensions was 130 months and the amount of payment delays represented approximately 16% of the related loan balances. Consumer loans: Home equity Weighted-average length of term extensions was 24.8 years, the weighted-average interest rate reduction was from 8.0% to 6.5% and the amount of payment deferrals represented approximately 6% of the related loan balances. Credit card Weighted-average interest rate reduction was from 23.2% to 3.9%. Other consumer loans Amount of payment deferrals represented approximately 6% of the related loan balances. The following table provides a summary of portfolio loans, by class, modified in a TDR by the Bancorp during the three months ended: March 31, 2022 ($ in millions) Number of Loans Modified in a TDR During the Period (a) Amortized Cost Basis Increase Charge-offs Commercial loans: Commercial and industrial loans 30 $ 91 13 — Commercial mortgage owner-occupied loans 5 4 (1) — Residential mortgage loans 260 42 3 — Consumer loans: Home equity 52 7 (1) — Indirect secured consumer loans 1,274 27 — — Credit card 1,121 6 2 — Total portfolio loans 2,742 $ 177 16 — (a) Represents number of loans post-modification and excludes loans previously modified in a TDR. |
Summary of Subsequent Defaults | The following table provides a summary of TDRs that subsequently defaulted during the three months ended March 31, 2022 and were within 12 months of the restructuring date: March 31, 2022 ($ in millions) (a) Number of Amortized Commercial loans: Commercial and industrial loans 6 $ — Residential mortgage loans 29 3 Consumer loans: Home equity 10 1 Indirect secured consumer loans 25 — Credit card 105 1 Total portfolio loans 175 $ 5 (a) Excludes all loans held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool. |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, December 31, Equipment $ 2,532 2,492 Buildings (a) 1,712 1,699 Land and improvements (a) 637 640 Leasehold improvements 581 568 Construction in progress (a) 133 124 Bank premises and equipment held for sale: Land and improvements 16 17 Buildings 6 7 Accumulated depreciation and amortization (3,398) (3,360) Total bank premises and equipment $ 2,219 2,187 (a) Buildings, land and improvements and construction in progress included $26 and $27 associated with parcels of undeveloped land intended for future branch expansion at March 31, 2023 and December 31, 2022, respectively. |
Operating Lease Equipment (Tabl
Operating Lease Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Future Lease Payments Receivable from Operating Leases | The following table presents future lease payments receivable from operating leases for the remainder of 2023 through 2028 and thereafter: As of March 31, 2023 ($ in millions) Undiscounted Remainder of 2023 $ 100 2024 105 2025 79 2026 51 2027 25 2028 10 Thereafter 15 Total operating lease payments $ 385 |
Lease Obligations - Lessee (Tab
Lease Obligations - Lessee (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, December 31, Assets Operating lease right-of-use assets Other assets $ 491 508 Finance lease right-of-use assets Bank premises and equipment 145 150 Total right-of-use assets (a) $ 636 658 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 582 599 Finance lease liabilities Long-term debt 152 156 Total lease liabilities $ 734 755 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $271 and $71, respectively, as of March 31, 2023, and $255 and $66, respectively, as of December 31, 2022. |
Components of Lease Costs, Weighted-Average Lease Term and Discount Rate | The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended 2023 2022 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 5 5 Interest on lease liabilities Interest on long-term debt 1 1 Total finance lease costs $ 6 6 Operating lease cost Net occupancy expense $ 22 20 Short-term lease cost Net occupancy expense 1 — Variable lease cost Net occupancy expense 7 7 Sublease income Net occupancy expense (1) (1) Total operating lease costs $ 29 26 Total lease costs $ 35 32 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: March 31, December 31, Weighted-average remaining lease term (years): Operating leases 10.70 10.80 Finance leases 15.31 15.31 Weighted-average discount rate: Operating leases 3.43 % 3.35 Finance leases 2.97 2.94 The following table presents information related to lease transactions for the three months ended March 31: ($ in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 23 22 Operating cash flows from finance leases 1 1 Financing cash flows from finance leases 4 4 Gains on sale-leaseback transactions 1 — (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 2023 through 2028 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities: As of March 31, 2023 ($ in millions) Operating Finance Total Remainder of 2023 $ 67 15 82 2024 86 21 107 2025 78 14 92 2026 69 9 78 2027 62 8 70 2028 53 9 62 Thereafter 298 120 418 Total undiscounted cash flows $ 713 196 909 Less: Difference between undiscounted cash flows and discounted cash flows 131 44 175 Present value of lease liabilities $ 582 152 734 |
Undiscounted Cash Flows for Finance Leases | The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2023 through 2028 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities: As of March 31, 2023 ($ in millions) Operating Finance Total Remainder of 2023 $ 67 15 82 2024 86 21 107 2025 78 14 92 2026 69 9 78 2027 62 8 70 2028 53 9 62 Thereafter 298 120 418 Total undiscounted cash flows $ 713 196 909 Less: Difference between undiscounted cash flows and discounted cash flows 131 44 175 Present value of lease liabilities $ 582 152 734 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 Core deposit intangibles $ 209 (169) 40 Developed technology 106 (20) 86 Customer relationships 30 (8) 22 Other 18 (9) 9 Total intangible assets $ 363 (206) 157 As of December 31, 2022 Core deposit intangibles $ 229 (182) 47 Developed technology 106 (17) 89 Customer relationships 30 (7) 23 Other 20 (10) 10 Total intangible assets $ 385 (216) 169 |
Estimated Amortization Expense | Estimated amortization expense for the remainder of 2023 through 2027 is as follows: ($ in millions) Total Remainder of 2023 $ 31 2024 35 2025 28 2026 22 2027 14 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation of VIEs | The following table provides a summary of assets and liabilities carried on the Condensed Consolidated Balance Sheets for the consolidated VIEs as of: ($ in millions) March 31, December 31, Assets: Other short-term investments $ 5 17 Indirect secured consumer loans — 141 Other consumer loans 44 44 ALLL (1) (2) Other assets — 2 Total assets $ 48 202 Liabilities: Other liabilities $ 9 9 Long-term debt 38 118 Total liabilities $ 47 127 |
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: March 31, 2023 ($ in millions) Total Total Maximum CDC investments $ 1,886 687 1,886 Private equity investments 187 — 360 Loans provided to VIEs 4,171 — 6,306 Lease pool entities 55 — 55 Solar loan securitizations 10 — 10 December 31, 2022 ($ in millions) Total Total Maximum CDC investments $ 1,856 653 1,856 Private equity investments 186 — 349 Loans provided to VIEs 4,374 — 6,438 Lease pool entities 61 — 61 Solar loan securitizations 10 — 10 |
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 March 31, ($ in millions) 2023 2022 Proportional amortization Applicable income tax expense $ 43 35 Tax credits and other benefits Applicable income tax expense (51) (41) (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three months ended March 31, 2023 and 2022. |
Sales of Receivables and Serv_2
Sales of Receivables and Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 ($ in millions) 2023 2022 Residential mortgage loan sales (a) $ 1,275 3,400 Origination fees and gains on loan sales 18 25 Gross mortgage servicing fees 83 71 (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 three months ended March 31: ($ in millions) 2023 2022 Balance, beginning of period $ 1,746 1,121 Servicing rights originated 16 47 Servicing rights purchased 16 139 Changes in fair value: Due to changes in inputs or assumptions (a) (19) 190 Other changes in fair value (b) (34) (53) Balance, end of period $ 1,725 1,444 (a) Primarily reflects changes in prepayment speed and OAS assumptions which are updated based on market interest rates. (b) Primarily reflects changes due to realized 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 ($ in millions) 2023 2022 Securities losses, net – non-qualifying hedges on mortgage servicing rights $ — (1) Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) 21 (181) MSR fair value adjustment due to changes in inputs or assumptions (a) (19) 190 (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 servicing rights related to 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 March 31, 2023 and 2022 were as follows: March 31, 2023 March 31, 2022 Weighted- Prepayment OAS Weighted- Prepayment OAS Fixed-rate 6.7 12.4 % 621 7.3 8.1 % 729 Adjustable-rate 3.0 27.9 774 2.8 27.7 798 |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At March 31, 2023, 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 for servicing rights related to residential mortgage loans are as follows: ($ in millions) (a) Prepayment OAS Fair Value Weighted- Impact of Adverse Change OAS Impact of Adverse Change on Fair Value Rate 10% 20% 50% 10% 20% Fixed-rate $ 1,720 8.6 5.6 % $ (42) (80) (178) 629 $ (45) (87) Adjustable-rate 5 5.1 20.3 (1) (1) (2) 1,204 — — (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) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 5,955 164 144 Total fair value hedges 164 144 Cash flow hedges: Interest rate floors related to C&I loans 3,000 4 — Interest rate swaps related to C&I loans 8,000 — 80 Interest rate swaps related to C&I loans - forward starting (a) 10,000 6 1 Interest rate swaps related to commercial mortgage and commercial construction loans 4,000 — 14 Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting (a) 4,000 4 — Total cash flow hedges 14 95 Total derivatives designated as qualifying hedging instruments 178 239 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 2,700 61 3 Forward contracts related to residential mortgage loans held for sale (b) 960 1 8 Swap associated with the sale of Visa, Inc. Class B Shares 3,644 — 192 Foreign exchange contracts 194 — 1 Interest-only strips 58 4 — Interest rate contracts for collateral management 12,000 10 10 Interest rate contracts for LIBOR transition 597 — — Total free-standing derivatives – risk management and other business purposes 76 214 Free-standing derivatives – customer accommodation: Interest rate contracts (c) 91,778 893 1,385 Interest rate lock commitments 367 7 — Commodity contracts 16,942 1,153 1,056 TBA securities 34 — — Foreign exchange contracts 24,329 450 406 Total free-standing derivatives – customer accommodation 2,503 2,847 Total derivatives not designated as qualifying hedging instruments 2,579 3,061 Total $ 2,757 3,300 (a) Forward starting swaps will become effective on various dates between October 2023 and February 2025. (b) Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments. (c) Derivative assets and liabilities are presented net of variation margin of $505 and $27, respectively. Fair Value December 31, 2022 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 5,955 126 195 Total fair value hedges 126 195 Cash flow hedges: Interest rate floors related to C&I loans 3,000 4 — Interest rate swaps related to C&I loans 8,000 — 76 Interest rate swaps related to C&I loans - forward starting (a) 11,000 22 — Interest rate swaps related to commercial mortgage and commercial construction loans 4,000 — 25 Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting (a) 4,000 5 — Total cash flow hedges 31 101 Total derivatives designated as qualifying hedging instruments 157 296 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 2,975 62 17 Forward contracts related to residential mortgage loans held for sale (b) 1,869 9 7 Swap associated with the sale of Visa, Inc. Class B Shares 3,358 — 195 Foreign exchange contracts 156 1 — Interest-only strips 58 4 — Interest rate contracts for collateral management 12,000 9 1 Interest rate contracts for LIBOR transition 597 — — Total free-standing derivatives – risk management and other business purposes 85 220 Free-standing derivatives – customer accommodation: Interest rate contracts (c) 83,605 998 1,663 Interest rate lock commitments 216 2 1 Commodity contracts 16,122 1,478 1,350 TBA securities 62 — — Foreign exchange contracts 25,322 453 422 Total free-standing derivatives – customer accommodation 2,931 3,436 Total derivatives not designated as qualifying hedging instruments 3,016 3,656 Total $ 3,173 3,952 (a) Forward starting swaps will become effective on various dates between February 2023 and February 2025. (b) Includes forward sale and forward purchase contracts which are utilized to manage market risk on residential mortgage loans held for sale and the related interest rate lock commitments. (c) Derivative assets and liabilities are presented net of variation margin of $694 and $37, respectively. |
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | The following table reflects the changes in fair value of interest rate contracts, designated as fair value hedges and the changes in fair value of the related hedged items attributable to the risk being hedged, as well as the line items in the Condensed Consolidated Statements of Income in which the corresponding gains or losses are recorded: Condensed Consolidated For the three months ended ($ in millions) 2023 2022 Long-term debt: Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ 92 (152) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt (89) 152 Available-for-sale debt and other securities: Change in fair value of interest rate swaps hedging available-for-sale debt and other securities Interest on securities — 8 Change in fair value of hedged available-for-sale debt and other securities attributable to the risk being hedged Interest on securities — (8) 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 March 31, December 31, Long-term debt: Carrying amount of the hedged items Long-term debt $ 5,954 5,865 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt 25 (64) Available-for-sale debt and other securities: Cumulative amount of fair value hedging adjustments remaining for hedged items for which hedge accounting has been discontinued Available-for-sale debt and other securities (13) (14) (a) The carrying amount represents the amortized cost basis of the hedged items (which excludes unrealized gains and losses) plus the fair value hedging adjustments. |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pre-tax net gains (losses) 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 ($ in millions) 2023 2022 Amount of pre-tax net gains (losses) recognized in OCI $ 278 (407) Amount of pre-tax net (losses) gains reclassified from OCI into net income (65) 78 |
Schedule of Price Risk Derivatives | The net (losses) gains 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 ($ in millions) 2023 2022 Interest rate contracts: Forward contracts related to residential mortgage loans held for sale Mortgage banking net revenue $ (9) 33 Interest rate contracts related to MSR portfolio Mortgage banking net revenue 21 (181) Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income — (2) Equity contracts: Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (31) (11) |
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) March 31, December 31, Pass $ 3,738 3,597 Special mention 61 81 Substandard 72 32 Total $ 3,871 3,710 |
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 ($ in millions) 2023 2022 Interest rate contracts: Interest rate contracts for customers (contract revenue) Commercial banking revenue $ 10 16 Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense (3) 6 Interest rate lock commitments Mortgage banking net revenue 13 — Commodity contracts: Commodity contracts for customers (contract revenue) Commercial banking revenue 10 9 Commodity contracts for customers (credit portion of fair value adjustment) Other noninterest expense (1) (1) Foreign exchange contracts: Foreign exchange contracts for customers (contract revenue) Commercial banking revenue 19 16 Foreign exchange contracts for customers (contract revenue) Other noninterest income (3) 2 Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 (1) |
Offsetting Derivative Financial Instruments | The following table provides a summary of offsetting derivative financial instruments: Gross Amount Recognized in the Condensed Consolidated Balance Sheets (a) Gross Amounts Not Offset in the Derivatives Collateral (b) Net Amount As of March 31, 2023 Derivative assets $ 2,750 (1,096) (894) 760 Derivative liabilities 3,300 (1,096) (219) 1,985 As of December 31, 2022 Derivative assets $ 3,171 (1,405) (887) 879 Derivative liabilities 3,951 (1,405) (406) 2,140 (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) | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, December 31, FHLB advances $ 6,800 4,300 Securities sold under repurchase agreements 330 388 Derivative collateral 208 124 Other borrowed money 26 26 Total other short-term borrowings $ 7,364 4,838 |
Capital Actions (Tables)
Capital Actions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Summary of the Bancorp's Accelerated Share Repurchase Transactions | The following table presents a summary of the Bancorp’s accelerated share repurchase transaction that was entered into and settled during the three months ended March 31, 2023: Repurchase Date Amount Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Final Settlement Date January 24, 2023 $ 200 4,911,875 678,121 5,589,996 March 06, 2023 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Significant Commitments | The following table reflects a summary of significant commitments as of: ($ in millions) March 31, December 31, Commitments to extend credit $ 84,732 83,437 Letters of credit 2,046 2,009 Forward contracts related to residential mortgage loans held for sale 960 1,869 Capital commitments for private equity investments 173 163 Purchase obligations 102 113 Capital expenditures 97 94 |
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) March 31, December 31, Pass $ 82,677 81,345 Special mention 756 976 Substandard 1,299 1,116 Total commitments to extend credit $ 84,732 83,437 |
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 March 31, 2023: ($ in millions) Less than 1 year (a) $ 988 1 - 5 years (a) 1,047 Over 5 years 11 Total letters of credit $ 2,046 (a) Includes $2 and $3 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire in less than 1 year and between 1 - 5 years, respectively. |
Credit Risk Associated with Letters of Credit | Risk ratings of outstanding letters of credit under this risk rating system are summarized in the following table as of: ($ in millions) March 31, December 31, Pass $ 1,849 1,827 Special mention 58 47 Substandard 138 135 Doubtful 1 — Total letters of credit $ 2,046 2,009 |
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 Q4 2021 250 11 Q2 2022 600 25 Q4 2022 350 15 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding gains on available-for-sale debt securities arising during period $ 788 (188) 600 Reclassification adjustment for net gains on available-for-sale debt securities included in net income — — — Net unrealized losses on available-for-sale debt securities 788 (188) 600 (4,589) 600 (3,989) Unrealized holding gains on cash flow hedge derivatives arising during period 278 (63) 215 Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 65 (15) 50 Net unrealized losses on cash flow hedge derivatives 343 (78) 265 (498) 265 (233) Reclassification of amounts to net periodic benefit costs — — — Defined benefit pension plans, net — — — (19) — (19) Other — — — (4) — (4) Total $ 1,131 (266) 865 (5,110) 865 (4,245) Total OCI Total AOCI March 31, 2022 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale debt securities arising during period $ (2,505) 576 (1,929) Reclassification adjustment for net gains on available-for-sale debt securities included in net income (3) 1 (2) Net unrealized losses on available-for-sale debt securities (2,508) 577 (1,931) 891 (1,931) (1,040) Unrealized holding losses on cash flow hedge derivatives arising during period (407) 94 (313) Reclassification adjustment for net gains on cash flow hedge derivatives included in net income (78) 18 (60) Net unrealized losses on cash flow hedge derivatives (485) 112 (373) 353 (373) (20) Reclassification of amounts to net periodic benefit costs 1 — 1 Defined benefit pension plans, net 1 — 1 (33) 1 (32) Other — — — (4) — (4) Total $ (2,992) 689 (2,303) 1,207 (2,303) (1,096) |
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | The table below presents reclassifications out of AOCI: Condensed Consolidated Statements of Income Caption For the three months ended ($ in millions) 2023 2022 Net unrealized losses on available-for-sale debt securities: (b) Net gains included in net income Securities gains (losses), net $ — 3 Income before income taxes — 3 Applicable income tax expense — (1) Net income — 2 Net unrealized losses on cash flow hedge derivatives: (b) Interest rate contracts related to C&I, commercial mortgage and commercial construction loans Interest and fees on loans and leases (65) 78 Income before income taxes (65) 78 Applicable income tax expense 15 (18) Net income (50) 60 Net periodic benefit costs: (b) Amortization of net actuarial loss Compensation and benefits (a) — (1) Income before income taxes — (1) Applicable income tax expense — — Net income — (1) Total reclassifications for the period Net income $ (50) 61 (a) This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 22 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2022 for further information. (b) Amounts in parentheses indicate reductions to net income. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share: 2023 2022 For the three months ended March 31, (in millions, except per share data) Income Average Per Share Income Average Per Share Earnings Per Share: Net income available to common shareholders $ 535 $ 474 Less: Income allocated to participating securities — 1 Net income allocated to common shareholders $ 535 684 $ 0.78 $ 473 688 $ 0.69 Earnings Per Diluted Share: Net income available to common shareholders $ 535 $ 474 Effect of dilutive securities: Stock-based awards — 6 — 8 Net income available to common shareholders plus assumed conversions $ 535 $ 474 Less: Income allocated to participating securities — 1 Net income allocated to common shareholders plus assumed conversions $ 535 690 $ 0.78 $ 473 696 $ 0.68 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 2,689 — — 2,689 Obligations of states and political subdivisions securities — 3 — 3 Mortgage-backed securities: Agency residential mortgage-backed securities — 11,073 — 11,073 Agency commercial mortgage-backed securities — 26,183 — 26,183 Non-agency commercial mortgage-backed securities — 4,550 — 4,550 Asset-backed securities and other debt securities — 5,331 — 5,331 Available-for-sale debt and other securities (a) 2,689 47,140 — 49,829 Trading debt securities: U.S. Treasury and federal agencies securities 669 18 — 687 Obligations of states and political subdivisions securities — 49 — 49 Agency residential mortgage-backed securities — 11 — 11 Asset-backed securities and other debt securities — 427 — 427 Trading debt securities 669 505 — 1,174 Equity securities 311 12 — 323 Residential mortgage loans held for sale — 599 — 599 Residential mortgage loans (b) — — 128 128 Servicing rights — — 1,725 1,725 Derivative assets: Interest rate contracts 3 1,140 11 1,154 Foreign exchange contracts — 450 — 450 Commodity contracts 125 1,028 — 1,153 Derivative assets (c) 128 2,618 11 2,757 Total assets $ 3,797 50,874 1,864 56,535 Liabilities: Derivative liabilities: Interest rate contracts $ 8 1,629 8 1,645 Foreign exchange contracts — 407 — 407 Equity contracts — — 192 192 Commodity contracts 34 1,022 — 1,056 Derivative liabilities (d) 42 3,058 200 3,300 Short positions: U.S. Treasury and federal agencies securities 74 — — 74 Asset-backed securities and other debt securities — 148 — 148 Short positions (d) 74 148 — 222 Total liabilities $ 116 3,206 200 3,522 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $396, $491 and $3, respectively, at March 31, 2023. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2022 ($ in millions) Level 1 Level 2 Level 3 Total Fair Value Assets: Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 2,495 — — 2,495 Obligations of states and political subdivisions securities — 18 — 18 Mortgage-backed securities: Agency residential mortgage-backed securities — 11,237 — 11,237 Agency commercial mortgage-backed securities — 26,322 — 26,322 Non-agency commercial mortgage-backed securities — 4,715 — 4,715 Asset-backed securities and other debt securities — 5,842 — 5,842 Available-for-sale debt and other securities (a) 2,495 48,134 — 50,629 Trading debt securities: U.S. Treasury and federal agencies securities 23 22 — 45 Obligations of states and political subdivisions securities — 14 — 14 Agency residential mortgage-backed securities — 8 — 8 Asset-backed securities and other debt securities — 347 — 347 Trading debt securities 23 391 — 414 Equity securities 306 11 — 317 Residential mortgage loans held for sale — 600 — 600 Residential mortgage loans (b) — — 123 123 Servicing rights — — 1,746 1,746 Derivative assets: Interest rate contracts 12 1,222 7 1,241 Foreign exchange contracts — 454 — 454 Commodity contracts 56 1,422 — 1,478 Derivative assets (c) 68 3,098 7 3,173 Total assets $ 2,892 52,234 1,876 57,002 Liabilities: Derivative liabilities: Interest rate contracts $ 7 1,970 8 1,985 Foreign exchange contracts — 422 — 422 Equity contracts — — 195 195 Commodity contracts 92 1,258 — 1,350 Derivative liabilities (d) 99 3,650 203 3,952 Short positions: U.S. Treasury and federal agencies securities 66 — — 66 Asset-backed securities and other debt securities — 112 — 112 Short positions (d) 66 112 — 178 Total liabilities $ 165 3,762 203 4,130 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $381, $491 and $2, respectively, at December 31, 2022. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended March 31, 2023 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 123 1,746 (1) (195) 1,673 Total (losses) gains (realized/unrealized): (b) Included in earnings 3 (53) 14 (31) (67) Purchases/originations — 32 (2) — 30 Settlements (2) — (8) 34 24 Transfers into Level 3 (c) 4 — — — 4 Balance, end of period $ 128 1,725 3 (192) 1,664 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 March 31, 2023 $ 3 (35) 7 (31) (56) (a) Net interest rate derivatives include derivative assets and liabilities of $11 and $8, respectively, as of March 31, 2023. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at March 31, 2023. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended March 31, 2022 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 154 1,121 4 (214) 1,065 Total gains (losses) (realized/unrealized): (b) Included in earnings (6) 137 2 (11) 122 Purchases/originations — 186 (2) — 184 Settlements (9) — (6) 27 12 Transfers into Level 3 (c) 6 — — — 6 Balance, end of period $ 145 1,444 (2) (198) 1,389 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 March 31, 2022 $ (6) 207 7 (11) 197 (a) Net interest rate derivatives include derivative assets and liabilities of $8 and $10, respectively, as of March 31, 2022. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at March 31, 2022. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. |
Total Gains and Losses Included in Earnings for Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The total losses and gains included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended ($ in millions) 2023 2022 Mortgage banking net revenue $ (37) 132 Commercial banking revenue 1 1 Other noninterest income (31) (11) Total (losses) gains $ (67) 122 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 March 31, 2023 and 2022 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended ($ in millions) 2023 2022 Mortgage banking net revenue $ (26) 207 Commercial banking revenue 1 1 Other noninterest income (31) (11) Total (losses) gains $ (56) 197 |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Recurring | The following tables present information as of March 31, 2023 and 2022 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 March 31, 2023 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 128 Loss rate model Interest rate risk factor (22.2) - 5.7% (10.3) % (a) Credit risk factor — - 23.2% 0.5 % (a) (Fixed) 5.6 % (b) Servicing rights 1,725 DCF Prepayment speed — - 100.0% (Adjustable) 20.3 % (b) (Fixed) 629 (b) OAS (bps) 477 - 1,447 (Adjustable) 1,204 (b) IRLCs, net 7 DCF Loan closing rates 22.3 - 97.5% 82.5 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (192) DCF Timing of the resolution Q1 2024 - Q1 2027 Q2 2025 (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 March 31, 2022 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 145 Loss rate model Interest rate risk factor (13.2) - 5.9 % (3.7) % (a) Credit risk factor — - 20.7 % 0.2 % (a) (Fixed) 6.7 % (b) Servicing rights 1,444 DCF Prepayment speed — - 100.0 % (Adjustable) 19.7 % (b) (Fixed) 749 (b) OAS (bps) 615 - 1,513 (Adjustable) 1,092 (b) IRLCs, net 6 DCF Loan closing rates 42.0 - 98.3 % 85.9 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (198) DCF Timing of the resolution Q1 2023 - Q2 2025 Q2 2024 (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. |
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 March 31, 2023 and 2022, and for which a nonrecurring fair value adjustment was recorded during the three months ended March 31, 2023 and 2022, 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 As of March 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended March 31, 2023 Commercial loans held for sale $ — — 21 21 — Commercial loans and leases — — 160 160 (76) Consumer and residential mortgage loans — — 138 138 (2) OREO — — 2 2 — Bank premises and equipment — — 5 5 (1) Private equity investments — — 2 2 (1) Total $ — — 328 328 (80) Fair Value Measurements Using Total (Losses) Gains As of March 31, 2022 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended March 31, 2022 Commercial loans and leases — — 178 178 (32) Consumer and residential mortgage loans — — 117 117 — OREO — — 1 1 1 Bank premises and equipment — — 1 1 — Operating lease equipment — — 6 6 (2) Private equity investments — 9 2 11 (6) Total $ — 9 305 314 (39) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Nonrecurring | The following tables present information as of March 31, 2023 and 2022 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 March 31, 2023 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 21 Comparable company analysis Market comparable transactions NM NM Commercial loans and leases 160 Appraised value Collateral value NM NM Consumer and residential mortgage loans 138 Appraised value Collateral value NM NM OREO 2 Appraised value Appraised value NM NM Bank premises and equipment 5 Appraised value Appraised value NM NM Private equity investments 2 Comparable company analysis Market comparable transactions NM NM As of March 31, 2022 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans and leases $ 178 Appraised value Collateral value NM NM Consumer and residential mortgage loans 117 Appraised value Collateral value NM NM OREO 1 Appraised value Appraised value NM NM Bank premises and equipment 1 Appraised value Appraised value NM NM Operating lease equipment 6 Appraised value Appraised value NM NM Private equity investments 2 Comparable company analysis Market comparable transactions NM NM |
Difference Between the Fair Value and the Unpaid Principal Balance for Loans | 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: March 31, 2023 ($ in millions) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Residential mortgage loans measured at fair value $ 727 735 (8) Nonaccrual loans 3 3 — December 31, 2022 Residential mortgage loans measured at fair value $ 723 733 (10) Past due loans of 30-89 days or more 1 1 — Nonaccrual loans 2 2 — |
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 March 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 2,780 2,780 — — 2,780 Other short-term investments 9,794 9,794 — — 9,794 Other securities 890 — 890 — 890 Held-to-maturity securities 2 — — 2 2 Loans and leases held for sale 150 — — 154 154 Portfolio loans and leases: Commercial loans and leases 76,096 — — 76,271 76,271 Consumer and residential mortgage loans 44,418 — — 43,170 43,170 Total portfolio loans and leases, net $ 120,514 — — 119,441 119,441 Financial liabilities: Deposits $ 162,975 — 162,924 — 162,924 Federal funds purchased 177 177 — — 177 Other short-term borrowings 7,364 — 7,362 — 7,362 Long-term debt 12,868 11,900 394 — 12,294 Net Carrying Fair Value Measurements Using Total As of December 31, 2022 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 3,466 3,466 — — 3,466 Other short-term investments 8,351 8,351 — — 8,351 Other securities 874 — 874 — 874 Held-to-maturity securities 5 — — 5 5 Loans and leases held for sale 407 — — 414 414 Portfolio loans and leases: Commercial loans and leases 75,262 — — 75,104 75,104 Consumer and residential mortgage loans 43,901 — — 42,193 42,193 Total portfolio loans and leases, net $ 119,163 — — 117,297 117,297 Financial liabilities: Deposits $ 163,690 — 163,634 — 163,634 Federal funds purchased 180 180 — — 180 Other short-term borrowings 4,838 — 4,829 — 4,829 Long-term debt 13,778 13,218 411 — 13,629 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 ($ in millions) Commercial Consumer Wealth General Eliminations Total Net interest income $ 977 1,257 101 (818) — 1,517 Provision for credit losses 46 51 — 67 — 164 Net interest income after provision for credit losses $ 931 1,206 101 (885) — 1,353 Noninterest income: Commercial banking revenue $ 160 1 — — — 161 Wealth and asset management revenue 1 53 138 — (46) (a) 146 Service charges on deposits 87 51 — (1) — 137 Card and processing revenue 22 74 1 3 — 100 Mortgage banking net revenue — 69 — — — 69 Leasing business revenue 57 — — — — 57 Other noninterest income (b) 16 25 (1) (18) — 22 Securities gains (losses), net (7) — — 11 — 4 Securities losses, net – non-qualifying hedges on MSRs — — — — — — Total noninterest income $ 336 273 138 (5) (46) 696 Noninterest expense: Compensation and benefits $ 190 224 61 282 — 757 Technology and communications 2 7 — 109 — 118 Net occupancy expense (d) 11 51 3 16 — 81 Equipment expense 7 11 — 19 — 37 Leasing business expense 34 — — — — 34 Marketing expense — 17 — 12 — 29 Card and processing expense 3 20 — (1) — 22 Other noninterest expense 304 315 82 (402) (46) 253 Total noninterest expense $ 551 645 146 35 (46) 1,331 Income (loss) before income taxes $ 716 834 93 (925) — 718 Applicable income tax expense (benefit) 136 175 19 (170) — 160 Net income (loss) $ 580 659 74 (755) — 558 Total goodwill $ 2,324 2,365 226 — — 4,915 Total assets $ 83,545 85,296 11,707 28,109 (c) — 208,657 (a) Revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of $1 for bank premises and equipment recorded in Consumer and Small Business Banking and an immaterial amount recorded in General Corporate and Other. For more information, refer to Note 7 and Note 22. (c) Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7. (d) Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 9. March 31, 2022 ($ in millions) Commercial Consumer Wealth General Eliminations Total Net interest income $ 523 517 35 120 — 1,195 Provision for (benefit from) credit losses (34) 29 — 50 — 45 Net interest income after provision for (benefit from) credit losses $ 557 488 35 70 — 1,150 Noninterest income: Commercial banking revenue $ 135 — — — — 135 Wealth and asset management revenue — 51 142 — (44) (a) 149 Service charges on deposits 100 53 — (1) — 152 Card and processing revenue 20 74 1 2 — 97 Mortgage banking net revenue — 52 — — — 52 Leasing business revenue 62 (c) — — — — 62 Other noninterest income (b) 22 27 1 2 — 52 Securities losses, net — — — (14) — (14) Securities losses, net – non-qualifying hedges on MSRs — (1) — — — (1) Total noninterest income $ 339 256 144 (11) (44) 684 Noninterest expense: Compensation and benefits $ 182 218 60 251 — 711 Technology and communications 5 4 — 92 — 101 Net occupancy expense (e) 10 48 3 16 — 77 Equipment expense 7 9 — 20 — 36 Leasing business expense 32 — — — — 32 Marketing expense 1 11 — 12 — 24 Card and processing expense 2 18 — (1) — 19 Other noninterest expense 240 293 79 (346) (44) 222 Total noninterest expense $ 479 601 142 44 (44) 1,222 Income before income taxes $ 417 143 37 15 — 612 Applicable income tax expense 76 31 8 3 — 118 Net income $ 341 112 29 12 — 494 Total goodwill $ 1,980 2,303 231 — — 4,514 Total assets $ 79,970 86,626 13,715 31,148 (d) — 211,459 (a) Revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking are eliminated in the Condensed Consolidated Statements of Income. (b) Includes impairment charges of an immaterial amount for bank premises and equipment recorded in Consumer and Small Business Banking. For more information, refer to Note 7 and Note 22. (c) Includes impairment charges of $2 for operating lease equipment. For more information, refer to Note 8 and Note 22. (d) Includes bank premises and equipment of $25 classified as held for sale. For more information, refer to Note 7. (e) Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 9. |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Payments: | ||
Interest | $ 682 | $ 158 |
Income taxes | 21 | 11 |
Transfers: | ||
Portfolio loans and leases to loans and leases held for sale | 3 | 71 |
Loans and leases held for sale to portfolio loans and leases | 4 | 402 |
Portfolio loans and leases to OREO | 3 | 2 |
Bank premises and equipment to OREO | 8 | 15 |
Supplemental Disclosures: | ||
Net additions to lease liabilities under operating leases | 1 | 31 |
Net additions to lease liabilities under finance leases | $ 0 | $ 3 |
Accounting and Reporting Deve_2
Accounting and Reporting Developments (Details) - USD ($) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | $ (2,215) | [1] | $ (2,194) | [1] | $ (1,908) | $ (1,892) | |
Retained earnings | $ 22,032 | 21,689 | |||||
Loans modified maintained on nonaccrual status, payment history, period | 6 months | ||||||
Chapter 7 Bankruptcy | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Loans modified maintained on accrual status, payment history, period | 12 months | ||||||
Large Commercial Loans And Leases | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Carrying value of loans and leases evaluated for ALLL | $ 1 | ||||||
Commercial | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | $ (1,143) | (1,127) | (1,110) | (1,102) | |||
Threshold period past due for nonaccrual loans | 90 days | ||||||
Loans modified maintained on accrual status, payment history, period | 6 months | ||||||
Established threshold nonaccrual commercial loans | $ 1 | ||||||
Residential Mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | $ (185) | (245) | (239) | (235) | |||
Residential Mortgage | Residential mortgage loans | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Threshold period past due for nonaccrual loans | 150 days | ||||||
Foreclosure process, period | 180 days | ||||||
Threshold period past due for accrual loans | 90 days | ||||||
Consumer | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | $ (887) | (822) | $ (559) | $ (555) | |||
Consumer | Home equity | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Threshold period past due for nonaccrual loans | 90 days | ||||||
Threshold period past due for nonaccrual loans, with senior lien in default | 60 days | ||||||
Senior lien in default, threshold period | 120 days | ||||||
Consumer | Credit card | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Threshold period past due | 90 days | ||||||
Loans modified maintained on nonaccrual status, payment history, period | 6 months | ||||||
Loans modified maintained on accrual status, payment history, period | 6 months | ||||||
Consumer | Indirect Secured Consumer Loan And Other Consumer Loan | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Threshold period past due for nonaccrual loans | 90 days | ||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | 49 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Commercial | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | (4) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Residential Mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | 36 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Consumer | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | $ 17 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2022-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Allowance for loan and lease losses | $ 49 | ||||||
Retained earnings | $ 37 | ||||||
[1]Includes $5 and $17 of other short-term investments, $44 and $185 of portfolio loans and leases, $(1) and $(2) of ALLL, $0 and $2 of other assets, $9 and $9 of other liabilities, and $38 and $118 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2023 and December 31, 2022, respectively. For further information, refer to Note 12. |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Available-for-sale debt and other securities: | |||
Amortized Cost | $ 55,958 | $ 57,530 | |
Unrealized Gains | 19 | 19 | |
Unrealized Losses | (5,258) | (6,046) | |
Fair Value | [1] | 50,719 | 51,503 |
Held-to-maturity securities: | |||
Amortized Cost | [2] | 2 | 5 |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 2 | 5 | |
Trading debt securities | 1,174 | 414 | |
Equity securities | 323 | 317 | |
U.S. Treasury and federal agencies securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 2,828 | 2,683 | |
Unrealized Gains | 1 | 0 | |
Unrealized Losses | (140) | (188) | |
Fair Value | 2,689 | 2,495 | |
Obligations of states and political subdivisions securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 3 | 18 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 3 | 18 | |
Held-to-maturity securities: | |||
Amortized Cost | 3 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | 0 | ||
Fair Value | 3 | ||
Agency mortgage-backed securities | Residential mortgage backed securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 12,246 | 12,604 | |
Unrealized Gains | 6 | 5 | |
Unrealized Losses | (1,179) | (1,372) | |
Fair Value | 11,073 | 11,237 | |
Agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 29,231 | 29,824 | |
Unrealized Gains | 10 | 11 | |
Unrealized Losses | (3,058) | (3,513) | |
Fair Value | 26,183 | 26,322 | |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 5,057 | 5,235 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (507) | (520) | |
Fair Value | 4,550 | 4,715 | |
Asset-backed securities and other debt securities | |||
Available-for-sale debt and other securities: | |||
Amortized Cost | 5,703 | 6,292 | |
Unrealized Gains | 2 | 3 | |
Unrealized Losses | (374) | (453) | |
Fair Value | 5,331 | 5,842 | |
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 | 890 | 874 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Fair Value | 890 | 874 | |
FHLB, restricted stock holdings | 396 | 381 | |
FRB, restricted stock holdings | 491 | 491 | |
DTCC, restricted stock holdings | $ 3 | $ 2 | |
[1]Amortized cost of $55,958 and $57,530 at March 31, 2023 and December 31, 2022, respectively.[2]Fair value of $2 and $5 at March 31, 2023 and December 31, 2022, respectively. |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Summary of Investment Holdings [Line Items] | ||
Accrued interest receivables on investment securities | $ 137 | $ 131 |
Securities with a fair value, pledged as collateral | 21,100 | 11,000 |
Unrealized losses | 5,258 | 6,046 |
Non-rated Securities | ||
Summary of Investment Holdings [Line Items] | ||
Unrealized losses | $ 20 | $ 42 |
Investment Securities - Gains a
Investment Securities - Gains and Losses Recognized in Income from Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Available-for-sale debt and other securities: | ||
Realized gains | $ 29 | $ 3 |
Realized losses | (29) | 0 |
Net realized gains on available-for-sale debt and other securities | 0 | 3 |
Trading debt securities: | ||
Net realized losses | 0 | (1) |
Net unrealized gains | 0 | 11 |
Net trading debt securities gains | 0 | 10 |
Equity securities: | ||
Net realized gains | 0 | 1 |
Net unrealized gains (losses) | 4 | (29) |
Net equity securities gains (losses) | 4 | (28) |
Total (losses) gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities | 4 | (15) |
Commercial Banking Revenue and Wealth and Asset Management Revenue | ||
Equity securities: | ||
Securities gains (losses) | $ 1 | $ (3) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Available-for-Sale Debt and Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Available-for-Sale Debt and Other, Amortized Cost | |||
Due in 1 year or less | $ 136 | ||
Due after 1 year through 5 years | 13,519 | ||
Due after 5 years through 10 years | 30,863 | ||
Due after 10 years | 10,550 | ||
Other securities | 890 | ||
Amortized Cost | 55,958 | $ 57,530 | |
Available-for-Sale Debt and Other, Fair Value | |||
Due in 1 year or less | 133 | ||
Due after 1 year through 5 years | 12,697 | ||
Due after 5 years through 10 years | 27,727 | ||
Due after 10 years | 9,272 | ||
Other securities | 890 | ||
Fair Value | [1] | 50,719 | 51,503 |
Held-to-Maturity, Amortized Cost | |||
Due in 1 year or less | 0 | ||
Due after 1 year through 5 years | 0 | ||
Due after 5 years through 10 years | 0 | ||
Due after 10 years | 2 | ||
Other securities | 0 | ||
Amortized Cost | [2] | 2 | 5 |
Held-to-Maturity, Fair Value | |||
Due in 1 year or less | 0 | ||
Due after 1 year through 5 years | 0 | ||
Due after 5 years through 10 years | 0 | ||
Due after 10 years | 2 | ||
Other securities | 0 | ||
Fair Value | $ 2 | $ 5 | |
[1]Amortized cost of $55,958 and $57,530 at March 31, 2023 and December 31, 2022, respectively.[2]Fair value of $2 and $5 at March 31, 2023 and December 31, 2022, respectively. |
Investment Securities - Fair Va
Investment Securities - Fair Value and Gross Unrealized Losses on Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Less than 12 months | $ 20,356 | $ 41,346 |
12 months or more | 28,511 | 8,190 |
Total | 48,867 | 49,536 |
Unrealized Losses | ||
Less than 12 months | (1,438) | (4,295) |
12 months or more | (3,820) | (1,751) |
Total | (5,258) | (6,046) |
U.S. Treasury and federal agencies securities | ||
Fair Value | ||
Less than 12 months | 863 | 2,400 |
12 months or more | 1,622 | 0 |
Total | 2,485 | 2,400 |
Unrealized Losses | ||
Less than 12 months | (15) | (188) |
12 months or more | (125) | 0 |
Total | (140) | (188) |
Obligations of states and political subdivisions securities | ||
Fair Value | ||
Less than 12 months | 0 | 0 |
12 months or more | 1 | 1 |
Total | 1 | 1 |
Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or more | 0 | 0 |
Total | 0 | 0 |
Agency mortgage-backed securities | Residential mortgage backed securities | ||
Fair Value | ||
Less than 12 months | 4,293 | 10,078 |
12 months or more | 6,616 | 938 |
Total | 10,909 | 11,016 |
Unrealized Losses | ||
Less than 12 months | (291) | (1,170) |
12 months or more | (888) | (202) |
Total | (1,179) | (1,372) |
Agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 12,883 | 22,083 |
12 months or more | 12,881 | 3,697 |
Total | 25,764 | 25,780 |
Unrealized Losses | ||
Less than 12 months | (1,047) | (2,487) |
12 months or more | (2,011) | (1,026) |
Total | (3,058) | (3,513) |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 788 | 3,621 |
12 months or more | 3,761 | 1,059 |
Total | 4,549 | 4,680 |
Unrealized Losses | ||
Less than 12 months | (43) | (272) |
12 months or more | (464) | (248) |
Total | (507) | (520) |
Asset-backed securities and other debt securities | ||
Fair Value | ||
Less than 12 months | 1,529 | 3,164 |
12 months or more | 3,630 | 2,495 |
Total | 5,159 | 5,659 |
Unrealized Losses | ||
Less than 12 months | (42) | (178) |
12 months or more | (332) | (275) |
Total | $ (374) | $ (453) |
Loans and Leases - Loans and Le
Loans and Leases - Loans and Leases Classified by Primary Purpose (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Loans and leases held for sale: | |||
Loans and leases held for sale | [1] | $ 749 | $ 1,007 |
Portfolio loans and leases: | |||
Commercial and industrial loans | 57,720 | 57,232 | |
Commercial mortgage loans | 11,228 | 11,020 | |
Commercial construction loans | 5,548 | 5,433 | |
Commercial leases | 2,743 | 2,704 | |
Residential mortgage loans | 17,608 | 17,628 | |
Home equity | 3,958 | 4,039 | |
Indirect secured consumer loans | 16,484 | 16,552 | |
Credit card | 1,761 | 1,874 | |
Other consumer loans | 5,807 | 4,998 | |
Loans and leases | 120,642 | 119,286 | |
Total portfolio loans and leases | 122,857 | 121,480 | |
Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 725 | 934 | |
Commercial | |||
Portfolio loans and leases: | |||
Loans and leases | 77,239 | 76,389 | |
Total portfolio loans and leases | 77,239 | 76,389 | |
Commercial | Commercial and industrial loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 21 | 73 | |
Portfolio loans and leases: | |||
Loans and leases | 57,720 | 57,232 | |
Total portfolio loans and leases | 57,720 | 57,232 | |
Commercial | Commercial leases | |||
Loans and leases held for sale: | |||
Loans and leases held for sale | 3 | 0 | |
Portfolio loans and leases: | |||
Loans and leases | 2,743 | 2,704 | |
Total portfolio loans and leases | 2,743 | 2,704 | |
Consumer | |||
Portfolio loans and leases: | |||
Loans and leases | $ 45,618 | $ 45,091 | |
[1]Includes $599 and $600 of residential mortgage loans held for sale measured at fair value at March 31, 2023 and December 31, 2022, respectively. |
Loans and Leases - Additional I
Loans and Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Accounts, Notes, Loans and Financing Receivable | ||||||
Unearned income | $ 262 | $ 238 | ||||
Net premium | 51 | 146 | ||||
Accrued interest receivable | 548 | 518 | ||||
Direct financing lease - interest income | 6 | $ 8 | ||||
Sales type lease - interest income | 15 | 11 | ||||
Allowance for loan and lease losses | 2,215 | [1] | $ 1,908 | 2,194 | [1] | $ 1,892 |
Commercial Leases | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Allowance for loan and lease losses | 18 | 15 | ||||
Federal Home Loan Bank Advances | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Loans pledged | 15,800 | 15,900 | ||||
FRB Loan | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Loans pledged | $ 56,100 | $ 57,100 | ||||
[1]Includes $5 and $17 of other short-term investments, $44 and $185 of portfolio loans and leases, $(1) and $(2) of ALLL, $0 and $2 of other assets, $9 and $9 of other liabilities, and $38 and $118 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2023 and December 31, 2022, respectively. For further information, refer to Note 12. |
Loans and Leases - Total Loans
Loans and Leases - Total Loans and Leases Managed by the Bancorp (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | $ 123,606 | $ 122,487 | |
90 Days Past Due and Still Accruing | 46 | 40 | |
Loans and leases held for sale | [1] | 749 | 1,007 |
Total portfolio loans and leases | 122,857 | 121,480 | |
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 | 18,333 | 18,562 | |
90 Days Past Due and Still Accruing | 9 | 7 | |
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 | 77,239 | 76,389 | |
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 | 57,741 | 57,305 | |
90 Days Past Due and Still Accruing | 17 | 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 | 11,228 | 11,020 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
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 | 5,548 | 5,433 | |
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 | 2,746 | 2,704 | |
90 Days Past Due and Still Accruing | 0 | 2 | |
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 | 3,958 | 4,039 | |
90 Days Past Due and Still Accruing | 1 | 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 | 16,484 | 16,552 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
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 | 1,761 | 1,874 | |
90 Days Past Due and Still Accruing | 18 | 18 | |
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 | 5,807 | 4,998 | |
90 Days Past Due and Still Accruing | $ 1 | $ 1 | |
[1]Includes $599 and $600 of residential mortgage loans held for sale measured at fair value at March 31, 2023 and December 31, 2022, respectively. |
Loans and Leases - Net Charge-O
Loans and Leases - Net Charge-Offs (Recoveries) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Net charge-offs (recoveries) | $ 78 | $ 34 |
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 (recoveries) | 0 | (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 (recoveries) | 30 | 9 |
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 (recoveries) | 0 | (1) |
Commercial | Commercial construction loans | ||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||
Net charge-offs (recoveries) | 1 | 0 |
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 (recoveries) | 0 | (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 | ||
Net charge-offs (recoveries) | 14 | 7 |
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 (recoveries) | 15 | 13 |
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 (recoveries) | $ 18 | $ 8 |
Loans and Leases - Components o
Loans and Leases - Components of Net Investment in Leases (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Net investment in sales-type leases: | ||
Leveraged leases | $ 248 | $ 247 |
Direct Financing Leases | ||
Net investment in direct financing leases: | ||
Lease payment receivable (present value) | 582 | 570 |
Unguaranteed residual assets (present value) | 109 | 107 |
Sales-Type Leases | ||
Net investment in sales-type leases: | ||
Lease payment receivable (present value) | 1,728 | 1,704 |
Unguaranteed residual assets (present value) | $ 76 | $ 76 |
Loans and Leases - Undiscounted
Loans and Leases - Undiscounted Cash Flows (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Direct Financing Leases | |
Accounts, Notes, Loans and Financing Receivable | |
Remainder of 2023 | $ 145 |
2024 | 159 |
2025 | 113 |
2026 | 95 |
2027 | 58 |
2028 | 18 |
Thereafter | 37 |
Total undiscounted cash flows | 625 |
Less: Difference between undiscounted cash flows and discounted cash flows | 43 |
Present value of lease payments (recognized as lease receivables) | 582 |
Sales-Type Leases | |
Accounts, Notes, Loans and Financing Receivable | |
Remainder of 2023 | 388 |
2024 | 471 |
2025 | 409 |
2026 | 239 |
2027 | 177 |
2028 | 108 |
Thereafter | 82 |
Total undiscounted cash flows | 1,874 |
Less: Difference between undiscounted cash flows and discounted cash flows | 146 |
Present value of lease payments (recognized as lease receivables) | $ 1,728 |
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 | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | $ 2,194 | [1] | $ 1,892 | $ 1,892 | |
Losses charged-off | (110) | (64) | |||
Recoveries of losses previously charged-off | 32 | 30 | |||
(Benefit from) provision for loan and lease losses | 148 | 50 | |||
Balance, end of period | 2,215 | [1] | 1,908 | $ 2,194 | [1] |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2022-02 | ||||
Other Consumer Loans, Point of Sale | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Losses charged-off | (9) | (8) | |||
Recoveries of losses previously charged-off | 9 | 8 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | (49) | ||||
Balance, end of period | $ (49) | ||||
Commercial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | 1,127 | 1,102 | 1,102 | ||
Losses charged-off | (33) | (11) | |||
Recoveries of losses previously charged-off | 2 | 3 | |||
(Benefit from) provision for loan and lease losses | 43 | 16 | |||
Balance, end of period | 1,143 | 1,110 | 1,127 | ||
Commercial | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | 4 | ||||
Balance, end of period | 4 | ||||
Residential Mortgage | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | 245 | 235 | 235 | ||
Losses charged-off | (1) | (1) | |||
Recoveries of losses previously charged-off | 1 | 2 | |||
(Benefit from) provision for loan and lease losses | (24) | 3 | |||
Balance, end of period | 185 | 239 | 245 | ||
Residential Mortgage | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | (36) | ||||
Balance, end of period | (36) | ||||
Consumer | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | 822 | 555 | 555 | ||
Losses charged-off | (76) | (52) | |||
Recoveries of losses previously charged-off | 29 | 25 | |||
(Benefit from) provision for loan and lease losses | 129 | 31 | |||
Balance, end of period | 887 | $ 559 | 822 | ||
Consumer | Cumulative Effect, Period of Adoption, Adjustment | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | $ (17) | ||||
Balance, end of period | $ (17) | ||||
[1]Includes $5 and $17 of other short-term investments, $44 and $185 of portfolio loans and leases, $(1) and $(2) of ALLL, $0 and $2 of other assets, $9 and $9 of other liabilities, and $38 and $118 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2023 and December 31, 2022, respectively. For further information, refer to Note 12. |
Credit Quality and the Allowa_4
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated | $ 80 | $ 122 | ||||
Collectively evaluated | 2,135 | 2,072 | ||||
Total ALLL | 2,215 | [1] | 2,194 | [1] | $ 1,908 | $ 1,892 |
Individually evaluated | 460 | 1,388 | ||||
Collectively evaluated | 122,269 | 119,969 | ||||
Total portfolio loans and leases | 122,729 | 121,357 | ||||
Leveraged leases | 248 | 247 | ||||
Commercial Leveraged Leases | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total ALLL | 2 | 2 | ||||
Leveraged leases | 248 | 247 | ||||
Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated | 78 | 30 | ||||
Collectively evaluated | 1,065 | 1,097 | ||||
Total ALLL | 1,143 | 1,127 | 1,110 | 1,102 | ||
Individually evaluated | 319 | 531 | ||||
Collectively evaluated | 76,920 | 75,858 | ||||
Total portfolio loans and leases | 77,239 | 76,389 | ||||
Residential Mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated | 0 | 47 | ||||
Collectively evaluated | 185 | 198 | ||||
Total ALLL | 185 | 245 | 239 | 235 | ||
Individually evaluated | 92 | 560 | ||||
Collectively evaluated | 17,388 | 16,945 | ||||
Total portfolio loans and leases | 17,480 | 17,505 | ||||
Residential mortgage loans | 128 | 123 | 145 | |||
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated | 2 | 45 | ||||
Collectively evaluated | 885 | 777 | ||||
Total ALLL | 887 | 822 | $ 559 | $ 555 | ||
Individually evaluated | 49 | 297 | ||||
Collectively evaluated | 27,961 | 27,166 | ||||
Total portfolio loans and leases | $ 28,010 | $ 27,463 | ||||
[1]Includes $5 and $17 of other short-term investments, $44 and $185 of portfolio loans and leases, $(1) and $(2) of ALLL, $0 and $2 of other assets, $9 and $9 of other liabilities, and $38 and $118 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2023 and December 31, 2022, respectively. For further information, refer to Note 12. |
Credit Quality and the Allowa_5
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Modifications | ||
Portfolio loans and leases, net | $ 120,642 | $ 119,286 |
Commercial | ||
Financing Receivable, Modifications | ||
Year One | 1,700 | 7,198 |
Year Two | 7,444 | 5,338 |
Year Three | 4,745 | 2,734 |
Year Four | 2,499 | 1,455 |
Year Five | 1,377 | 900 |
Prior | 2,465 | 1,876 |
Revolving Loans | 57,009 | 56,888 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 77,239 | 76,389 |
Commercial | Pass | ||
Financing Receivable, Modifications | ||
Year One | 1,495 | 6,795 |
Year Two | 7,158 | 5,081 |
Year Three | 4,511 | 2,405 |
Year Four | 2,203 | 1,299 |
Year Five | 1,237 | 830 |
Prior | 2,195 | 1,625 |
Revolving Loans | 53,367 | 53,282 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 72,166 | 71,317 |
Commercial | Special mention | ||
Financing Receivable, Modifications | ||
Year One | 66 | 83 |
Year Two | 61 | 127 |
Year Three | 114 | 56 |
Year Four | 41 | 52 |
Year Five | 40 | 30 |
Prior | 66 | 68 |
Revolving Loans | 1,722 | 1,658 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 2,110 | 2,074 |
Commercial | Substandard | ||
Financing Receivable, Modifications | ||
Year One | 139 | 320 |
Year Two | 225 | 130 |
Year Three | 118 | 273 |
Year Four | 255 | 104 |
Year Five | 100 | 40 |
Prior | 204 | 183 |
Revolving Loans | 1,907 | 1,948 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 2,948 | 2,998 |
Commercial | Doubtful | ||
Financing Receivable, Modifications | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 2 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 13 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 15 | 0 |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Modifications | ||
Year One | 888 | 4,040 |
Year Two | 4,529 | 3,199 |
Year Three | 2,744 | 1,242 |
Year Four | 1,111 | 507 |
Year Five | 463 | 286 |
Prior | 792 | 619 |
Revolving Loans | 47,193 | 47,339 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 57,720 | 57,232 |
Commercial | Commercial and industrial loans | Pass | ||
Financing Receivable, Modifications | ||
Year One | 805 | 3,825 |
Year Two | 4,364 | 3,098 |
Year Three | 2,673 | 994 |
Year Four | 885 | 445 |
Year Five | 402 | 269 |
Prior | 648 | 488 |
Revolving Loans | 44,136 | 44,521 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 53,913 | 53,640 |
Commercial | Commercial and industrial loans | Special mention | ||
Financing Receivable, Modifications | ||
Year One | 7 | 65 |
Year Two | 44 | 24 |
Year Three | 11 | 15 |
Year Four | 8 | 36 |
Year Five | 36 | 10 |
Prior | 36 | 24 |
Revolving Loans | 1,414 | 1,221 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 1,556 | 1,395 |
Commercial | Commercial and industrial loans | Substandard | ||
Financing Receivable, Modifications | ||
Year One | 76 | 150 |
Year Two | 121 | 77 |
Year Three | 58 | 233 |
Year Four | 218 | 26 |
Year Five | 25 | 7 |
Prior | 108 | 107 |
Revolving Loans | 1,630 | 1,597 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 2,236 | 2,197 |
Commercial | Commercial and industrial loans | Doubtful | ||
Financing Receivable, Modifications | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 2 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 13 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 15 | 0 |
Commercial | Commercial mortgage owner-occupied loans | ||
Financing Receivable, Modifications | ||
Year One | 277 | 1,245 |
Year Two | 1,173 | 855 |
Year Three | 804 | 555 |
Year Four | 497 | 342 |
Year Five | 321 | 184 |
Prior | 418 | 291 |
Revolving Loans | 1,905 | 1,786 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 5,395 | 5,258 |
Commercial | Commercial mortgage owner-occupied loans | Pass | ||
Financing Receivable, Modifications | ||
Year One | 240 | 1,177 |
Year Two | 1,139 | 826 |
Year Three | 754 | 522 |
Year Four | 477 | 257 |
Year Five | 248 | 160 |
Prior | 369 | 264 |
Revolving Loans | 1,743 | 1,624 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 4,970 | 4,830 |
Commercial | Commercial mortgage owner-occupied loans | Special mention | ||
Financing Receivable, Modifications | ||
Year One | 12 | 17 |
Year Two | 14 | 15 |
Year Three | 29 | 13 |
Year Four | 3 | 12 |
Year Five | 2 | 13 |
Prior | 12 | 2 |
Revolving Loans | 22 | 56 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 94 | 128 |
Commercial | Commercial mortgage owner-occupied loans | Substandard | ||
Financing Receivable, Modifications | ||
Year One | 25 | 51 |
Year Two | 20 | 14 |
Year Three | 21 | 20 |
Year Four | 17 | 73 |
Year Five | 71 | 11 |
Prior | 37 | 25 |
Revolving Loans | 140 | 106 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 331 | 300 |
Commercial | Commercial mortgage owner-occupied loans | Doubtful | ||
Financing Receivable, Modifications | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 0 | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | ||
Financing Receivable, Modifications | ||
Year One | 239 | 1,193 |
Year Two | 1,117 | 565 |
Year Three | 503 | 534 |
Year Four | 518 | 398 |
Year Five | 394 | 221 |
Prior | 364 | 210 |
Revolving Loans | 2,698 | 2,641 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 5,833 | 5,762 |
Commercial | Commercial mortgage nonowner-occupied loans | Pass | ||
Financing Receivable, Modifications | ||
Year One | 165 | 1,127 |
Year Two | 1,087 | 462 |
Year Three | 447 | 490 |
Year Four | 474 | 397 |
Year Five | 393 | 220 |
Prior | 345 | 170 |
Revolving Loans | 2,508 | 2,453 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 5,419 | 5,319 |
Commercial | Commercial mortgage nonowner-occupied loans | Special mention | ||
Financing Receivable, Modifications | ||
Year One | 47 | 1 |
Year Two | 0 | 84 |
Year Three | 32 | 26 |
Year Four | 26 | 0 |
Year Five | 0 | 0 |
Prior | 2 | 23 |
Revolving Loans | 139 | 88 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 246 | 222 |
Commercial | Commercial mortgage nonowner-occupied loans | Substandard | ||
Financing Receivable, Modifications | ||
Year One | 27 | 65 |
Year Two | 30 | 19 |
Year Three | 24 | 18 |
Year Four | 18 | 1 |
Year Five | 1 | 1 |
Prior | 17 | 17 |
Revolving Loans | 51 | 100 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 168 | 221 |
Commercial | Commercial mortgage nonowner-occupied loans | Doubtful | ||
Financing Receivable, Modifications | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 0 | 0 |
Commercial | Commercial construction loans | ||
Financing Receivable, Modifications | ||
Year One | 18 | 135 |
Year Two | 122 | 31 |
Year Three | 64 | 93 |
Year Four | 87 | 8 |
Year Five | 8 | 35 |
Prior | 36 | 9 |
Revolving Loans | 5,213 | 5,122 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 5,548 | 5,433 |
Commercial | Commercial construction loans | Pass | ||
Financing Receivable, Modifications | ||
Year One | 14 | 82 |
Year Two | 73 | 31 |
Year Three | 31 | 93 |
Year Four | 87 | 8 |
Year Five | 8 | 35 |
Prior | 34 | 7 |
Revolving Loans | 4,980 | 4,684 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 5,227 | 4,940 |
Commercial | Commercial construction loans | Special mention | ||
Financing Receivable, Modifications | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 33 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 147 | 293 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 180 | 293 |
Commercial | Commercial construction loans | Substandard | ||
Financing Receivable, Modifications | ||
Year One | 4 | 53 |
Year Two | 49 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 2 | 2 |
Revolving Loans | 86 | 145 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 141 | 200 |
Commercial | Commercial construction loans | Doubtful | ||
Financing Receivable, Modifications | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 0 | 0 |
Commercial | Commercial leases | ||
Financing Receivable, Modifications | ||
Year One | 278 | 585 |
Year Two | 503 | 688 |
Year Three | 630 | 310 |
Year Four | 286 | 200 |
Year Five | 191 | 174 |
Prior | 855 | 747 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 2,743 | 2,704 |
Commercial | Commercial leases | Pass | ||
Financing Receivable, Modifications | ||
Year One | 271 | 584 |
Year Two | 495 | 664 |
Year Three | 606 | 306 |
Year Four | 280 | 192 |
Year Five | 186 | 146 |
Prior | 799 | 696 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 2,637 | 2,588 |
Commercial | Commercial leases | Special mention | ||
Financing Receivable, Modifications | ||
Year One | 0 | 0 |
Year Two | 3 | 4 |
Year Three | 9 | 2 |
Year Four | 4 | 4 |
Year Five | 2 | 7 |
Prior | 16 | 19 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 34 | 36 |
Commercial | Commercial leases | Substandard | ||
Financing Receivable, Modifications | ||
Year One | 7 | 1 |
Year Two | 5 | 20 |
Year Three | 15 | 2 |
Year Four | 2 | 4 |
Year Five | 3 | 21 |
Prior | 40 | 32 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | 72 | 80 |
Commercial | Commercial leases | Doubtful | ||
Financing Receivable, Modifications | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Portfolio loans and leases, net | $ 0 | $ 0 |
Credit Quality and the Allowa_6
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Gross Charge-Offs Within the Commercial Portfolio Segments, by Class and Vintage (Details) - Commercial $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Modifications | |
Year One | $ 0 |
Year Two | 1 |
Year Three | 11 |
Year Four | 0 |
Year Five | 0 |
Prior | 0 |
Revolving Loans | 21 |
Revolving Loans Converted to Term Loans | 0 |
Total | 33 |
Commercial and industrial loans | |
Financing Receivable, Modifications | |
Year One | 0 |
Year Two | 1 |
Year Three | 11 |
Year Four | 0 |
Year Five | 0 |
Prior | 0 |
Revolving Loans | 20 |
Revolving Loans Converted to Term Loans | 0 |
Total | 32 |
Commercial construction loans | |
Financing Receivable, Modifications | |
Year One | 0 |
Year Two | 0 |
Year Three | 0 |
Year Four | 0 |
Year Five | 0 |
Prior | 0 |
Revolving Loans | 1 |
Revolving Loans Converted to Term Loans | 0 |
Total | $ 1 |
Credit Quality and the Allowa_7
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | $ 122,857 | $ 121,480 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 77,239 | 76,389 |
90 Days Past Due and Still Accruing | 17 | 13 |
Commercial | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 77,031 | 76,211 |
Commercial | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 208 | 178 |
Commercial | 30 to 89 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 134 | 129 |
Commercial | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 74 | 49 |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 57,720 | 57,232 |
90 Days Past Due and Still Accruing | 17 | 11 |
Commercial | Commercial and industrial loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 57,549 | 57,092 |
Commercial | Commercial and industrial loans | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 171 | 140 |
Commercial | Commercial and industrial loans | 30 to 89 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 109 | 98 |
Commercial | Commercial and industrial loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 62 | 42 |
Commercial | Commercial mortgage owner-occupied loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 5,395 | 5,258 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial | Commercial mortgage owner-occupied loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 5,386 | 5,241 |
Commercial | Commercial mortgage owner-occupied loans | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 9 | 17 |
Commercial | Commercial mortgage owner-occupied loans | 30 to 89 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 6 | 14 |
Commercial | Commercial mortgage owner-occupied loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 3 | 3 |
Commercial | Commercial mortgage nonowner-occupied loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 5,833 | 5,762 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 5,832 | 5,756 |
Commercial | Commercial mortgage nonowner-occupied loans | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 1 | 6 |
Commercial | Commercial mortgage nonowner-occupied loans | 30 to 89 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 1 | 6 |
Commercial | Commercial mortgage nonowner-occupied loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 0 | 0 |
Commercial | Commercial construction loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 5,548 | 5,433 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial | Commercial construction loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 5,541 | 5,424 |
Commercial | Commercial construction loans | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 7 | 9 |
Commercial | Commercial construction loans | 30 to 89 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 2 | 7 |
Commercial | Commercial construction loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 5 | 2 |
Commercial | Commercial leases | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 2,743 | 2,704 |
90 Days Past Due and Still Accruing | 0 | 2 |
Commercial | Commercial leases | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 2,723 | 2,698 |
Commercial | Commercial leases | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 20 | 6 |
Commercial | Commercial leases | 30 to 89 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | 16 | 4 |
Commercial | Commercial leases | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total portfolio loans and leases | $ 4 | $ 2 |
Credit Quality and the Allowa_8
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Modifications | |||
Total | $ 122,857 | $ 121,480 | |
Residential Mortgage | |||
Financing Receivable, Modifications | |||
Residential mortgage loans | 128 | $ 145 | 123 |
Residential Mortgage | Federal Housing Administration Loan | |||
Financing Receivable, Modifications | |||
Losses due to claim denials and curtailments | 0 | $ 1 | |
Residential Mortgage | 30-89 days past due | |||
Financing Receivable, Modifications | |||
Residential mortgage loans | 1 | ||
Residential Mortgage | 30-89 days past due | Federal Housing Administration Loan | |||
Financing Receivable, Modifications | |||
Total | 76 | 81 | |
Residential Mortgage | 90 days or more past due | |||
Financing Receivable, Modifications | |||
Residential mortgage loans | 2 | ||
Residential Mortgage | 90 days or more past due | Federal Housing Administration Loan | |||
Financing Receivable, Modifications | |||
Total | 154 | 147 | |
Residential Mortgage | Nonperforming | |||
Financing Receivable, Modifications | |||
Residential mortgage loans | 3 | ||
Residential Mortgage | Residential mortgage loans | |||
Financing Receivable, Modifications | |||
Year One | 249 | 3,199 | |
Year Two | 3,225 | 5,447 | |
Year Three | 5,362 | 2,989 | |
Year Four | 2,938 | 1,056 | |
Year Five | 1,034 | 354 | |
Prior | 4,672 | 4,460 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 17,480 | 17,505 | |
Residential Mortgage | Residential mortgage loans | Performing | |||
Financing Receivable, Modifications | |||
Year One | 249 | 3,199 | |
Year Two | 3,224 | 5,444 | |
Year Three | 5,359 | 2,985 | |
Year Four | 2,934 | 1,052 | |
Year Five | 1,030 | 347 | |
Prior | 4,558 | 4,356 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 17,354 | 17,383 | |
Residential Mortgage | Residential mortgage loans | Performing | Current | |||
Financing Receivable, Modifications | |||
Year One | 249 | 3,195 | |
Year Two | 3,222 | 5,440 | |
Year Three | 5,355 | 2,981 | |
Year Four | 2,931 | 1,051 | |
Year Five | 1,028 | 344 | |
Prior | 4,543 | 4,336 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 17,328 | 17,347 | |
Residential Mortgage | Residential mortgage loans | Performing | 30-89 days past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 4 | |
Year Two | 1 | 4 | |
Year Three | 2 | 3 | |
Year Four | 3 | 1 | |
Year Five | 1 | 2 | |
Prior | 10 | 15 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 17 | 29 | |
Residential Mortgage | Residential mortgage loans | Performing | 90 days or more past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 1 | 0 | |
Year Three | 2 | 1 | |
Year Four | 0 | 0 | |
Year Five | 1 | 1 | |
Prior | 5 | 5 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 9 | 7 | |
Residential Mortgage | Residential mortgage loans | Nonperforming | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 1 | 3 | |
Year Three | 3 | 4 | |
Year Four | 4 | 4 | |
Year Five | 4 | 7 | |
Prior | 114 | 104 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 126 | 122 | |
Consumer | Home equity | |||
Financing Receivable, Modifications | |||
Year One | 14 | 46 | |
Year Two | 45 | 3 | |
Year Three | 3 | 7 | |
Year Four | 7 | 15 | |
Year Five | 14 | 17 | |
Prior | 116 | 105 | |
Revolving Loans | 3,744 | 3,827 | |
Revolving Loans Converted to Term Loans | 15 | 19 | |
Total | 3,958 | 4,039 | |
Consumer | Home equity | Performing | |||
Financing Receivable, Modifications | |||
Year One | 14 | 46 | |
Year Two | 45 | 3 | |
Year Three | 3 | 7 | |
Year Four | 7 | 15 | |
Year Five | 14 | 17 | |
Prior | 109 | 97 | |
Revolving Loans | 3,684 | 3,769 | |
Revolving Loans Converted to Term Loans | 14 | 18 | |
Total | 3,890 | 3,972 | |
Consumer | Home equity | Performing | Current | |||
Financing Receivable, Modifications | |||
Year One | 14 | 46 | |
Year Two | 45 | 3 | |
Year Three | 3 | 7 | |
Year Four | 7 | 15 | |
Year Five | 14 | 17 | |
Prior | 106 | 94 | |
Revolving Loans | 3,663 | 3,741 | |
Revolving Loans Converted to Term Loans | 14 | 18 | |
Total | 3,866 | 3,941 | |
Consumer | Home equity | Performing | 30-89 days past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 2 | 2 | |
Revolving Loans | 21 | 28 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 23 | 30 | |
Consumer | Home equity | Performing | 90 days or more past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 1 | 1 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 1 | 1 | |
Consumer | Home equity | Nonperforming | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 7 | 8 | |
Revolving Loans | 60 | 58 | |
Revolving Loans Converted to Term Loans | 1 | 1 | |
Total | 68 | 67 | |
Consumer | Indirect secured consumer loans | |||
Financing Receivable, Modifications | |||
Year One | 1,597 | 6,072 | |
Year Two | 5,563 | 5,923 | |
Year Three | 5,393 | 2,635 | |
Year Four | 2,328 | 1,245 | |
Year Five | 1,060 | 431 | |
Prior | 543 | 246 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 16,484 | 16,552 | |
Consumer | Indirect secured consumer loans | Performing | |||
Financing Receivable, Modifications | |||
Year One | 1,597 | 6,068 | |
Year Two | 5,558 | 5,917 | |
Year Three | 5,388 | 2,628 | |
Year Four | 2,321 | 1,239 | |
Year Five | 1,055 | 427 | |
Prior | 538 | 244 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 16,457 | 16,523 | |
Consumer | Indirect secured consumer loans | Performing | Current | |||
Financing Receivable, Modifications | |||
Year One | 1,595 | 6,034 | |
Year Two | 5,526 | 5,875 | |
Year Three | 5,355 | 2,600 | |
Year Four | 2,302 | 1,217 | |
Year Five | 1,041 | 416 | |
Prior | 528 | 239 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 16,347 | 16,381 | |
Consumer | Indirect secured consumer loans | Performing | 30-89 days past due | |||
Financing Receivable, Modifications | |||
Year One | 2 | 34 | |
Year Two | 32 | 42 | |
Year Three | 33 | 28 | |
Year Four | 19 | 22 | |
Year Five | 14 | 11 | |
Prior | 10 | 5 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 110 | 142 | |
Consumer | Indirect secured consumer loans | Performing | 90 days or more past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 0 | 0 | |
Consumer | Indirect secured consumer loans | Nonperforming | |||
Financing Receivable, Modifications | |||
Year One | 0 | 4 | |
Year Two | 5 | 6 | |
Year Three | 5 | 7 | |
Year Four | 7 | 6 | |
Year Five | 5 | 4 | |
Prior | 5 | 2 | |
Revolving Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 27 | 29 | |
Consumer | Credit card | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 1,761 | 1,874 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 1,761 | 1,874 | |
Consumer | Credit card | Performing | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 1,732 | 1,847 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 1,732 | 1,847 | |
Consumer | Credit card | Performing | Current | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 1,696 | 1,808 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 1,696 | 1,808 | |
Consumer | Credit card | Performing | 30-89 days past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 18 | 21 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 18 | 21 | |
Consumer | Credit card | Performing | 90 days or more past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 18 | 18 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 18 | 18 | |
Consumer | Credit card | Nonperforming | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 29 | 27 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 29 | 27 | |
Consumer | Other consumer loans | |||
Financing Receivable, Modifications | |||
Year One | 722 | 2,720 | |
Year Two | 2,951 | 547 | |
Year Three | 487 | 358 | |
Year Four | 325 | 171 | |
Year Five | 151 | 114 | |
Prior | 233 | 149 | |
Revolving Loans | 907 | 913 | |
Revolving Loans Converted to Term Loans | 31 | 26 | |
Total | 5,807 | 4,998 | |
Consumer | Other consumer loans | Performing | |||
Financing Receivable, Modifications | |||
Year One | 722 | 2,718 | |
Year Two | 2,948 | 546 | |
Year Three | 486 | 358 | |
Year Four | 325 | 171 | |
Year Five | 151 | 114 | |
Prior | 232 | 148 | |
Revolving Loans | 906 | 912 | |
Revolving Loans Converted to Term Loans | 31 | 26 | |
Total | 5,801 | 4,993 | |
Consumer | Other consumer loans | Performing | Current | |||
Financing Receivable, Modifications | |||
Year One | 722 | 2,704 | |
Year Two | 2,928 | 540 | |
Year Three | 481 | 355 | |
Year Four | 323 | 169 | |
Year Five | 149 | 112 | |
Prior | 229 | 146 | |
Revolving Loans | 903 | 908 | |
Revolving Loans Converted to Term Loans | 31 | 26 | |
Total | 5,766 | 4,960 | |
Consumer | Other consumer loans | Performing | 30-89 days past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 14 | |
Year Two | 19 | 6 | |
Year Three | 5 | 3 | |
Year Four | 2 | 2 | |
Year Five | 2 | 2 | |
Prior | 3 | 2 | |
Revolving Loans | 3 | 3 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 34 | 32 | |
Consumer | Other consumer loans | Performing | 90 days or more past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 1 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 1 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 1 | 1 | |
Consumer | Other consumer loans | Nonperforming | |||
Financing Receivable, Modifications | |||
Year One | 0 | 2 | |
Year Two | 3 | 1 | |
Year Three | 1 | 0 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 1 | 1 | |
Revolving Loans | 1 | 1 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 6 | 5 | |
Residential Mortgage and Consumer | |||
Financing Receivable, Modifications | |||
Year One | 2,582 | 12,037 | |
Year Two | 11,784 | 11,920 | |
Year Three | 11,245 | 5,989 | |
Year Four | 5,598 | 2,487 | |
Year Five | 2,259 | 916 | |
Prior | 5,564 | 4,960 | |
Revolving Loans | 6,412 | 6,614 | |
Revolving Loans Converted to Term Loans | 46 | 45 | |
Total | 45,490 | 44,968 | |
Residential Mortgage and Consumer | Performing | |||
Financing Receivable, Modifications | |||
Year One | 2,582 | 12,031 | |
Year Two | 11,775 | 11,910 | |
Year Three | 11,236 | 5,978 | |
Year Four | 5,587 | 2,477 | |
Year Five | 2,250 | 905 | |
Prior | 5,437 | 4,845 | |
Revolving Loans | 6,322 | 6,528 | |
Revolving Loans Converted to Term Loans | 45 | 44 | |
Total | 45,234 | 44,718 | |
Residential Mortgage and Consumer | Performing | Current | |||
Financing Receivable, Modifications | |||
Year One | 2,580 | 11,979 | |
Year Two | 11,721 | 11,858 | |
Year Three | 11,194 | 5,943 | |
Year Four | 5,563 | 2,452 | |
Year Five | 2,232 | 889 | |
Prior | 5,406 | 4,815 | |
Revolving Loans | 6,262 | 6,457 | |
Revolving Loans Converted to Term Loans | 45 | 44 | |
Total | 45,003 | 44,437 | |
Residential Mortgage and Consumer | Performing | 30-89 days past due | |||
Financing Receivable, Modifications | |||
Year One | 2 | 52 | |
Year Two | 52 | 52 | |
Year Three | 40 | 34 | |
Year Four | 24 | 25 | |
Year Five | 17 | 15 | |
Prior | 25 | 24 | |
Revolving Loans | 42 | 52 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 202 | 254 | |
Residential Mortgage and Consumer | Performing | 90 days or more past due | |||
Financing Receivable, Modifications | |||
Year One | 0 | 0 | |
Year Two | 2 | 0 | |
Year Three | 2 | 1 | |
Year Four | 0 | 0 | |
Year Five | 1 | 1 | |
Prior | 6 | 6 | |
Revolving Loans | 18 | 19 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Total | 29 | 27 | |
Residential Mortgage and Consumer | Nonperforming | |||
Financing Receivable, Modifications | |||
Year One | 0 | 6 | |
Year Two | 9 | 10 | |
Year Three | 9 | 11 | |
Year Four | 11 | 10 | |
Year Five | 9 | 11 | |
Prior | 127 | 115 | |
Revolving Loans | 90 | 86 | |
Revolving Loans Converted to Term Loans | 1 | 1 | |
Total | $ 256 | $ 250 |
Credit Quality and the Allowa_9
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Gross Charge-Offs Within the Residential Mortgage and Consumer Portfolio Segments, by Class and Vintage (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Residential Mortgage | |
Financing Receivable, Modifications | |
Year One | $ 0 |
Year Two | 0 |
Year Three | 0 |
Year Four | 0 |
Year Five | 0 |
Prior | 1 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total | 1 |
Consumer | Home equity | |
Financing Receivable, Modifications | |
Year One | 0 |
Year Two | 0 |
Year Three | 0 |
Year Four | 0 |
Year Five | 0 |
Prior | 0 |
Revolving Loans | 1 |
Revolving Loans Converted to Term Loans | 0 |
Total | 1 |
Consumer | Indirect secured consumer loans | |
Financing Receivable, Modifications | |
Year One | 0 |
Year Two | 8 |
Year Three | 6 |
Year Four | 4 |
Year Five | 3 |
Prior | 2 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total | 23 |
Consumer | Credit card | |
Financing Receivable, Modifications | |
Year One | 0 |
Year Two | 0 |
Year Three | 0 |
Year Four | 0 |
Year Five | 0 |
Prior | 20 |
Revolving Loans | 0 |
Revolving Loans Converted to Term Loans | 0 |
Total | 20 |
Consumer | Other consumer loans | |
Financing Receivable, Modifications | |
Year One | 0 |
Year Two | 10 |
Year Three | 5 |
Year Four | 3 |
Year Five | 2 |
Prior | 3 |
Revolving Loans | 8 |
Revolving Loans Converted to Term Loans | 1 |
Total | 32 |
Consumer and residential mortgage loans | |
Financing Receivable, Modifications | |
Year One | 0 |
Year Two | 18 |
Year Three | 11 |
Year Four | 7 |
Year Five | 5 |
Prior | 26 |
Revolving Loans | 9 |
Revolving Loans Converted to Term Loans | 1 |
Total | $ 77 |
Credit Quality and the Allow_10
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the Amortized Cost Basis of the Bancorp's Collateral Dependent Loans (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Impaired | ||
Total portfolio loans and leases | $ 460 | $ 640 |
Commercial | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 319 | 531 |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 276 | 433 |
Commercial | Commercial mortgage owner-occupied loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 12 | 14 |
Commercial | Commercial mortgage nonowner-occupied loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 21 | 27 |
Commercial | Commercial construction loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 5 | 56 |
Commercial | Commercial leases | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 5 | 1 |
Residential Mortgage | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 92 | 57 |
Consumer | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 49 | 52 |
Consumer | Home equity | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 43 | 46 |
Consumer | Indirect secured consumer loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | $ 6 | $ 6 |
Credit Quality and the Allow_11
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 | Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Modifications | |||
With an ALLL | $ 483 | $ 333 | |
No Related ALLL | 140 | 206 | |
Total | 623 | 539 | |
Loans and leases held for sale | [1] | 749 | 1,007 |
Total portfolio loans and leases | 122,857 | 121,480 | |
Nonperforming | |||
Financing Receivable, Modifications | |||
Loans and leases held for sale | 0 | 0 | |
Nonperforming | Government Insured | |||
Financing Receivable, Modifications | |||
Total portfolio loans and leases | 17 | 15 | |
Commercial | |||
Financing Receivable, Modifications | |||
With an ALLL | 275 | 149 | |
No Related ALLL | 59 | 114 | |
Total | 334 | 263 | |
Total portfolio loans and leases | 77,239 | 76,389 | |
Commercial | Commercial and industrial loans | |||
Financing Receivable, Modifications | |||
With an ALLL | 239 | 114 | |
No Related ALLL | 41 | 101 | |
Total | 280 | 215 | |
Loans and leases held for sale | 21 | 73 | |
Total portfolio loans and leases | 57,720 | 57,232 | |
Commercial | Commercial mortgage owner-occupied loans | |||
Financing Receivable, Modifications | |||
With an ALLL | 11 | 9 | |
No Related ALLL | 11 | 7 | |
Total | 22 | 16 | |
Total portfolio loans and leases | 5,395 | 5,258 | |
Commercial | Commercial mortgage nonowner-occupied loans | |||
Financing Receivable, Modifications | |||
With an ALLL | 18 | 20 | |
No Related ALLL | 4 | 4 | |
Total | 22 | 24 | |
Total portfolio loans and leases | 5,833 | 5,762 | |
Commercial | Commercial construction loans | |||
Financing Receivable, Modifications | |||
With an ALLL | 3 | 6 | |
No Related ALLL | 2 | 2 | |
Total | 5 | 8 | |
Total portfolio loans and leases | 5,548 | 5,433 | |
Commercial | Commercial leases | |||
Financing Receivable, Modifications | |||
With an ALLL | 4 | 0 | |
No Related ALLL | 1 | 0 | |
Total | 5 | 0 | |
Loans and leases held for sale | 3 | 0 | |
Total portfolio loans and leases | 2,743 | 2,704 | |
Residential Mortgage | |||
Financing Receivable, Modifications | |||
With an ALLL | 92 | 81 | |
No Related ALLL | 37 | 43 | |
Total | 129 | 124 | |
Consumer | |||
Financing Receivable, Modifications | |||
With an ALLL | 116 | 103 | |
No Related ALLL | 14 | 25 | |
Total | 130 | 128 | |
Consumer | Home equity | |||
Financing Receivable, Modifications | |||
With an ALLL | 55 | 45 | |
No Related ALLL | 13 | 22 | |
Total | 68 | 67 | |
Total portfolio loans and leases | 3,958 | 4,039 | |
Consumer | Home equity | Nonperforming | |||
Financing Receivable, Modifications | |||
Total portfolio loans and leases | 68 | 67 | |
Consumer | Indirect secured consumer loans | |||
Financing Receivable, Modifications | |||
With an ALLL | 26 | 26 | |
No Related ALLL | 1 | 3 | |
Total | 27 | 29 | |
Total portfolio loans and leases | 16,484 | 16,552 | |
Consumer | Indirect secured consumer loans | Nonperforming | |||
Financing Receivable, Modifications | |||
Total portfolio loans and leases | 27 | 29 | |
Consumer | Credit card | |||
Financing Receivable, Modifications | |||
With an ALLL | 29 | 27 | |
No Related ALLL | 0 | 0 | |
Total | 29 | 27 | |
Total portfolio loans and leases | 1,761 | 1,874 | |
Consumer | Credit card | Nonperforming | |||
Financing Receivable, Modifications | |||
Total portfolio loans and leases | 29 | 27 | |
Consumer | Other consumer loans | |||
Financing Receivable, Modifications | |||
With an ALLL | 6 | 5 | |
No Related ALLL | 0 | 0 | |
Total | 6 | 5 | |
Total portfolio loans and leases | 5,807 | 4,998 | |
Consumer | Other consumer loans | Nonperforming | |||
Financing Receivable, Modifications | |||
Total portfolio loans and leases | 6 | 5 | |
Nonaccrual Portfolio Loans and Leases | |||
Financing Receivable, Modifications | |||
With an ALLL | 483 | 333 | |
No Related ALLL | 110 | 182 | |
Total | 593 | 515 | |
OREO and Other Repossessed Assets | |||
Financing Receivable, Modifications | |||
With an ALLL | 0 | 0 | |
No Related ALLL | 30 | 24 | |
Total | $ 30 | $ 24 | |
[1]Includes $599 and $600 of residential mortgage loans held for sale measured at fair value at March 31, 2023 and December 31, 2022, respectively. |
Credit Quality and the Allow_12
Credit Quality and the Allowance for Loan and Lease Losses - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) contract | Mar. 31, 2022 contract | Dec. 31, 2022 USD ($) | |
Financing Receivable, Allowance for Credit Losses | |||
Mortgage loans in process of foreclosure amount | $ 175 | $ 154 | |
Loan modification program, loan amortized cost basis, threshold for modification | $ 202 | ||
Loan modification program, threshold for modification, percent of total loans and leases | 0.0016 | ||
Unfunded commitment amounts | $ 109 | ||
Modification program option, threshold period past due | 90 days | ||
Number of Contracts | contract | 0 | 175 | |
Line Of Credit Receivable | |||
Financing Receivable, Allowance for Credit Losses | |||
Unfunded commitment amounts | 130 | ||
Letter Of Credit Receivable | |||
Financing Receivable, Allowance for Credit Losses | |||
Unfunded commitment amounts | $ 60 | ||
Consumer and residential mortgage loans | |||
Financing Receivable, Allowance for Credit Losses | |||
Loan modification program, loans excluded from modification program | $ 13 | ||
Commercial | Minimum | |||
Financing Receivable, Allowance for Credit Losses | |||
Modification program option, mortgage interest payment deferral, term | 3 months | ||
Commercial | Maximum | |||
Financing Receivable, Allowance for Credit Losses | |||
Modification program option, mortgage interest payment deferral, term | 12 months | ||
Residential Mortgage | |||
Financing Receivable, Allowance for Credit Losses | |||
Modification program option, mortgage term | 480 months | ||
Modification program option, in-process modifications | $ 18 | ||
Number of Contracts | contract | 29 | ||
Residential Mortgage | Minimum | |||
Financing Receivable, Allowance for Credit Losses | |||
Modification program option, mortgage interest payment deferral, term | 6 months | ||
Modification program option, trial period | 3 months | ||
Residential Mortgage | Maximum | |||
Financing Receivable, Allowance for Credit Losses | |||
Modification program option, mortgage interest payment deferral, term | 12 months | ||
Modification program option, trial period | 4 months | ||
Consumer | |||
Financing Receivable, Allowance for Credit Losses | |||
Modification program option, mortgage term | 360 months |
Credit Quality and the Allow_13
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Amortized Cost Basis of Loans Modified for Borrowers Experiencing Financial Difficulty (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 202 |
Commercial | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 163 |
% of Total Class | 0.21% |
Commercial | Term Extension | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 159 |
Commercial | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Commercial | Term Extension and Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 3 |
Commercial | Commercial and industrial loans | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 106 |
% of Total Class | 0.18% |
Commercial | Commercial and industrial loans | Term Extension | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 105 |
Commercial | Commercial and industrial loans | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Commercial | Commercial and industrial loans | Term Extension and Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial mortgage owner-occupied loans | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 1 |
% of Total Class | 0.02% |
Commercial | Commercial mortgage owner-occupied loans | Term Extension | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 1 |
Commercial | Commercial mortgage owner-occupied loans | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial mortgage owner-occupied loans | Term Extension and Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 25 |
% of Total Class | 0.43% |
Commercial | Commercial mortgage nonowner-occupied loans | Term Extension | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 22 |
Commercial | Commercial mortgage nonowner-occupied loans | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | Term Extension and Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 3 |
Commercial | Commercial construction loans | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 31 |
% of Total Class | 0.56% |
Commercial | Commercial construction loans | Term Extension | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 31 |
Commercial | Commercial construction loans | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial construction loans | Term Extension and Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Residential Mortgage | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 24 |
% of Total Class | 0.14% |
Residential Mortgage | Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 8 |
% of Total Class | 0.05% |
Residential Mortgage | Term Extension and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 14 |
% of Total Class | 0.08% |
Residential Mortgage | Term Extension, Interest Rate Reduction and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 2 |
% of Total Class | 0.01% |
Consumer | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 15 |
% of Total Class | 0.05% |
Consumer | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 10 |
Consumer | Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Consumer | Term Extension and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Consumer | Term Extension, Interest Rate Reduction and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 3 |
Consumer | Home equity | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 4 |
% of Total Class | 0.10% |
Consumer | Home equity | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 |
Consumer | Home equity | Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | Home equity | Term Extension and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Consumer | Home equity | Term Extension, Interest Rate Reduction and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 3 |
Consumer | Credit card | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 10 |
% of Total Class | 0.57% |
Consumer | Credit card | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 10 |
Consumer | Credit card | Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | Credit card | Term Extension and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | Credit card | Term Extension, Interest Rate Reduction and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | Other consumer loans | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 1 |
% of Total Class | 0.02% |
Consumer | Other consumer loans | Interest Rate Reduction | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 |
Consumer | Other consumer loans | Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Consumer | Other consumer loans | Term Extension and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | Other consumer loans | Term Extension, Interest Rate Reduction and Payment Deferral | |
Financing Receivable, Modifications | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 |
Credit Quality and the Allow_14
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Financial Impacts of Loans That Were Modified for Borrowers Experiencing Financial Difficulty (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Commercial | Commercial and industrial loans | |
Financing Receivable, Modifications | |
Weighted-average length of term extensions | 5 months |
Commercial | Commercial mortgage owner-occupied loans | |
Financing Receivable, Modifications | |
Weighted-average length of term extensions | 4 months |
Commercial | Commercial mortgage nonowner-occupied loans | |
Financing Receivable, Modifications | |
Weighted-average length of term extensions | 8 months |
Weighted-average interest rate reduction before modification | 0.091 |
Weighted-average interest rate reduction after modification | 0.089 |
Commercial | Commercial construction loans | |
Financing Receivable, Modifications | |
Weighted-average length of term extensions | 12 months |
Residential Mortgage | |
Financing Receivable, Modifications | |
Weighted-average length of term extensions | 130 months |
Financing receivable, modified, payment deferral, percentage of related loan balance | 0.16 |
Consumer | Home equity | |
Financing Receivable, Modifications | |
Weighted-average length of term extensions | 24 years 9 months 18 days |
Weighted-average interest rate reduction before modification | 0.080 |
Weighted-average interest rate reduction after modification | 0.065 |
Financing receivable, modified, payment deferral, percentage of related loan balance | 0.06 |
Consumer | Credit card | |
Financing Receivable, Modifications | |
Weighted-average interest rate reduction before modification | 0.232 |
Weighted-average interest rate reduction after modification | 0.039 |
Consumer | Other consumer loans | |
Financing Receivable, Modifications | |
Financing receivable, modified, payment deferral, percentage of related loan balance | 0.06 |
Credit Quality and the Allow_15
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Loans That Were Modified for Borrowers Experiencing Financial Difficulty (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 202 |
Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 197 |
30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 4 |
90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Commercial | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 163 |
Commercial | Commercial and industrial loans | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 106 |
Commercial | Commercial and industrial loans | Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 106 |
Commercial | Commercial and industrial loans | 30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial and industrial loans | 90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial mortgage owner-occupied loans | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Commercial | Commercial mortgage owner-occupied loans | Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Commercial | Commercial mortgage owner-occupied loans | 30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial mortgage owner-occupied loans | 90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 25 |
Commercial | Commercial mortgage nonowner-occupied loans | Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 25 |
Commercial | Commercial mortgage nonowner-occupied loans | 30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | 90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial construction loans | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 31 |
Commercial | Commercial construction loans | Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 31 |
Commercial | Commercial construction loans | 30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Commercial | Commercial construction loans | 90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Residential Mortgage | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 24 |
Residential Mortgage | Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 23 |
Residential Mortgage | 30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Residential Mortgage | 90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 15 |
Consumer | Home equity | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 4 |
Consumer | Home equity | Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 4 |
Consumer | Home equity | 30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | Home equity | 90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | Credit card | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 10 |
Consumer | Credit card | Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 6 |
Consumer | Credit card | 30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 3 |
Consumer | Credit card | 90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Consumer | Other consumer loans | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Consumer | Other consumer loans | Current | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 1 |
Consumer | Other consumer loans | 30-89 days past due | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | 0 |
Consumer | Other consumer loans | 90 Days or More | |
Financing Receivable, Recorded Investment, Past Due | |
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 |
Credit Quality and the Allow_16
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Loans Modified in a TDR (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) loan | |
Financing Receivable, Modifications | |
Number of Loans Modified in a TDR During the Period | loan | 2,742 |
Amortized Cost Basis in Loans Modified in a TDR During the Period | $ 177 |
Increase (Decrease) to ALLL Upon Modification | 16 |
Charge-offs Recognized Upon Modification | $ 0 |
Commercial | Commercial and industrial loans | |
Financing Receivable, Modifications | |
Number of Loans Modified in a TDR During the Period | loan | 30 |
Amortized Cost Basis in Loans Modified in a TDR During the Period | $ 91 |
Increase (Decrease) to ALLL Upon Modification | 13 |
Charge-offs Recognized Upon Modification | $ 0 |
Commercial | Commercial mortgage owner-occupied loans | |
Financing Receivable, Modifications | |
Number of Loans Modified in a TDR During the Period | loan | 5 |
Amortized Cost Basis in Loans Modified in a TDR During the Period | $ 4 |
Increase (Decrease) 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 | 260 |
Amortized Cost Basis in Loans Modified in a TDR During the Period | $ 42 |
Increase (Decrease) to ALLL Upon Modification | 3 |
Charge-offs Recognized Upon Modification | $ 0 |
Consumer | Home equity | |
Financing Receivable, Modifications | |
Number of Loans Modified in a TDR During the Period | loan | 52 |
Amortized Cost Basis in Loans Modified in a TDR During the Period | $ 7 |
Increase (Decrease) to ALLL Upon Modification | (1) |
Charge-offs Recognized Upon Modification | $ 0 |
Consumer | Indirect secured consumer loans | |
Financing Receivable, Modifications | |
Number of Loans Modified in a TDR During the Period | loan | 1,274 |
Amortized Cost Basis in Loans Modified in a TDR During the Period | $ 27 |
Increase (Decrease) to ALLL Upon Modification | 0 |
Charge-offs Recognized Upon Modification | $ 0 |
Consumer | Credit card | |
Financing Receivable, Modifications | |
Number of Loans Modified in a TDR During the Period | loan | 1,121 |
Amortized Cost Basis in Loans Modified in a TDR During the Period | $ 6 |
Increase (Decrease) to ALLL Upon Modification | 2 |
Charge-offs Recognized Upon Modification | $ 0 |
Credit Quality and the Allow_17
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Subsequent Defaults (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 contract | Mar. 31, 2022 USD ($) contract | |
Financing Receivable, Modifications | ||
Number of Contracts | contract | 0 | 175 |
Amortized Cost | $ | $ 5 | |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Modifications | ||
Number of Contracts | contract | 6 | |
Amortized Cost | $ | $ 0 | |
Residential Mortgage | ||
Financing Receivable, Modifications | ||
Number of Contracts | contract | 29 | |
Amortized Cost | $ | $ 3 | |
Consumer | Home equity | ||
Financing Receivable, Modifications | ||
Number of Contracts | contract | 10 | |
Amortized Cost | $ | $ 1 | |
Consumer | Indirect secured consumer loans | ||
Financing Receivable, Modifications | ||
Number of Contracts | contract | 25 | |
Amortized Cost | $ | $ 0 | |
Consumer | Credit card | ||
Financing Receivable, Modifications | ||
Number of Contracts | contract | 105 | |
Amortized Cost | $ | $ 1 |
Bank Premises and Equipment - S
Bank Premises and Equipment - Summary of Bank Premises and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization | $ (3,398) | $ (3,360) | |
Total bank premises and equipment | [1] | 2,219 | 2,187 |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,532 | 2,492 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,712 | 1,699 | |
Land and and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 637 | 640 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 581 | 568 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 133 | 124 | |
Land and improvements held for sale | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 16 | 17 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6 | 7 | |
Other property | |||
Property, Plant and Equipment [Line Items] | |||
Land improvements | $ 26 | $ 27 | |
[1]Includes $22 and $24 of bank premises and equipment held for sale at March 31, 2023 and December 31, 2022, respectively. |
Bank Premises and Equipment - A
Bank Premises and Equipment - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) branch | Mar. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Impairment losses on bank premises | $ | $ 1 | $ 0 |
Closed in 2022 | ||
Property, Plant and Equipment [Line Items] | ||
Number of branches held for sale | branch | 23 |
Operating Lease Equipment - Add
Operating Lease Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating lease equipment | $ 578,000,000 | $ 627,000,000 | |
Accumulated depreciation | 339,000,000 | $ 338,000,000 | |
Operating lease income | $ 37,000,000 | $ 36,000,000 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Leasing business revenue | Leasing business revenue | |
Depreciation expense | $ 31,000,000 | 29,000,000 | |
Operating lease payments received | 41,000,000 | 36,000,000 | |
Impairment losses of operating lease equipment | $ 0 | $ 2,000,000 |
Operating Lease Equipment - Fut
Operating Lease Equipment - Future Lease Payments Receivable (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
Remainder of 2023 | $ 100 |
2024 | 105 |
2025 | 79 |
2026 | 51 |
2027 | 25 |
2028 | 10 |
Thereafter | 15 |
Total operating lease payments | $ 385 |
Lease Obligations - Lessee - Le
Lease Obligations - Lessee - Lease Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 491 | $ 508 |
Finance lease right-of-use assets | 145 | 150 |
Total right-of-use assets | 636 | 658 |
Operating lease liabilities | 582 | 599 |
Finance lease liabilities | 152 | 156 |
Total lease liabilities | $ 734 | $ 755 |
Operating lease right-of-use assets [Extensible List] | Other assets | Other assets |
Finance lease, right-of-use assets [Extensible List] | Bank premises and equipment | Bank premises and equipment |
Operating lease liabilities [Extensible List] | Accrued Liabilities [Member] | Accrued Liabilities [Member] |
Finance lease liabilities [Extensible List] | Long-term debt | Long-term debt |
Operating lease right of use asset, accumulated amortization | $ 271 | $ 255 |
Finance lease right of use asset, accumulated amortization | $ 71 | $ 66 |
Lease Obligations - Lessee - _2
Lease Obligations - Lessee - Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Amortization of ROU assets | $ 5 | $ 5 |
Interest on lease liabilities | 1 | 1 |
Total finance lease costs | 6 | 6 |
Operating lease cost | 22 | 20 |
Short-term lease cost | 1 | 0 |
Variable lease cost | 7 | 7 |
Sublease income | (1) | (1) |
Total operating lease costs | 29 | 26 |
Total lease costs | 35 | 32 |
Impairment losses and termination charges | $ 1 | $ 1 |
Lease Obligations - Lessee - Un
Lease Obligations - Lessee - Undiscounted Cash Flows (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Remainder of 2023 | $ 67 | |
2024 | 86 | |
2025 | 78 | |
2026 | 69 | |
2027 | 62 | |
2028 | 53 | |
Thereafter | 298 | |
Total undiscounted cash flows | 713 | |
Less: Difference between undiscounted cash flows and discounted cash flows | 131 | |
Present value of lease liabilities | 582 | $ 599 |
Finance Leases | ||
Remainder of 2023 | 15 | |
2024 | 21 | |
2025 | 14 | |
2026 | 9 | |
2027 | 8 | |
2028 | 9 | |
Thereafter | 120 | |
Total undiscounted cash flows | 196 | |
Less: Difference between undiscounted cash flows and discounted cash flows | 44 | |
Present value of lease liabilities | 152 | $ 156 |
Total | ||
Remainder of 2023 | 82 | |
2024 | 107 | |
2025 | 92 | |
2026 | 78 | |
2027 | 70 | |
2028 | 62 | |
Thereafter | 418 | |
Total undiscounted cash flows | 909 | |
Less: Difference between undiscounted cash flows and discounted cash flows | 175 | |
Present value of lease liabilities | $ 734 |
Lease Obligations - Lessee - Ot
Lease Obligations - Lessee - Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||
Operating leases, weighted average remaining lease term | 10 years 8 months 12 days | 10 years 9 months 18 days | |
Finance leases, weighted average remaining lease term | 15 years 3 months 21 days | 15 years 3 months 21 days | |
Operating leases, weighted average discount rate | 3.43% | 3.35% | |
Finance leases, weighted average discount rate | 2.97% | 2.94% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 23 | $ 22 | |
Operating cash flows from finance leases | 1 | 1 | |
Financing cash flows from finance leases | 4 | 4 | |
Gains on sale-leaseback transactions | $ 1 | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 363 | $ 385 |
Accumulated Amortization | (206) | (216) |
Net Carrying Amount | 157 | 169 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 209 | 229 |
Accumulated Amortization | (169) | (182) |
Net Carrying Amount | 40 | 47 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 106 | 106 |
Accumulated Amortization | (20) | (17) |
Net Carrying Amount | 86 | 89 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 30 | 30 |
Accumulated Amortization | (8) | (7) |
Net Carrying Amount | 22 | 23 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 18 | 20 |
Accumulated Amortization | (9) | (10) |
Net Carrying Amount | $ 9 | $ 10 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Amortization expense | $ 12 | $ 11 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Remainder of 2023 | $ 31 |
2024 | 35 |
2025 | 28 |
2026 | 22 |
2027 | $ 14 |
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 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |||
Assets | |||||||
Other short-term investments | [1] | $ 9,794 | $ 8,351 | ||||
ALLL | (2,215) | [1] | (2,194) | [1] | $ (1,908) | $ (1,892) | |
Other assets | [1] | 12,880 | 13,459 | ||||
Total Assets | 208,657 | 207,452 | |||||
Liabilities | |||||||
Other liabilities | [1] | 5,307 | 5,881 | ||||
Long-term debt | [1] | 12,893 | 13,714 | ||||
Total Liabilities | 190,293 | 190,125 | |||||
Variable Interest Entity, Primary Beneficiary | Automobile And Solar Loan | |||||||
Assets | |||||||
Other short-term investments | 5 | 17 | |||||
Indirect secured consumer loans | 0 | 141 | |||||
Other consumer loans | 44 | 44 | |||||
ALLL | (1) | (2) | |||||
Other assets | 0 | 2 | |||||
Total Assets | 48 | 202 | |||||
Liabilities | |||||||
Other liabilities | 9 | 9 | |||||
Long-term debt | 38 | 118 | |||||
Total Liabilities | $ 47 | $ 127 | |||||
[1]Includes $5 and $17 of other short-term investments, $44 and $185 of portfolio loans and leases, $(1) and $(2) of ALLL, $0 and $2 of other assets, $9 and $9 of other liabilities, and $38 and $118 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2023 and December 31, 2022, respectively. For further information, refer to Note 12. |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity | ||
Total Assets | $ 208,657 | $ 207,452 |
Total Liabilities | 190,293 | 190,125 |
Variable Interest Entity, Not Primary Beneficiary | CDC investments | ||
Variable Interest Entity | ||
Total Assets | 1,886 | 1,856 |
Total Liabilities | 687 | 653 |
Maximum Exposure | 1,886 | 1,856 |
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | ||
Variable Interest Entity | ||
Total Assets | 187 | 186 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 360 | 349 |
Variable Interest Entity, Not Primary Beneficiary | Loans provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 4,171 | 4,374 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 6,306 | 6,438 |
Variable Interest Entity, Not Primary Beneficiary | Lease pool entities | ||
Variable Interest Entity | ||
Total Assets | 55 | 61 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 55 | 61 |
Variable Interest Entity, Not Primary Beneficiary | Solar loan securitizations | ||
Variable Interest Entity | ||
Total Assets | 10 | 10 |
Total Liabilities | 0 | 0 |
Maximum Exposure | $ 10 | $ 10 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) investment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Variable Interest Entity | |||
Assets | $ 208,657 | $ 207,452 | |
LLCs designed for the purpose of purchasing pools of residual interests in leases | |||
Variable Interest Entity | |||
Number of co-investments | investment | 3 | ||
Ownership percentage (more than) | 50% | ||
Variable Interest Entity, Not Primary Beneficiary | Loans provided to VIEs | |||
Variable Interest Entity | |||
Unfunded commitment amounts | $ 2,100 | 2,100 | |
Variable Interest Entity, Not Primary Beneficiary | CDC investments | |||
Variable Interest Entity | |||
Assets | 1,886 | 1,856 | |
Variable Interest Entity, Not Primary Beneficiary | CDC investments | Qualified Affordable Housing Tax Credits | |||
Variable Interest Entity | |||
Assets | 1,600 | 1,600 | |
Unfunded commitments in qualifying LIHTC investments | $ 679 | 643 | |
Variable Interest Entity, Not Primary Beneficiary | CDC investments | Qualified Affordable Housing Tax Credits | Minimum | |||
Variable Interest Entity | |||
Unfunded commitments, year expected to be funded | 2023 | ||
Variable Interest Entity, Not Primary Beneficiary | CDC investments | Qualified Affordable Housing Tax Credits | Maximum | |||
Variable Interest Entity | |||
Unfunded commitments, year expected to be funded | 2040 | ||
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | |||
Variable Interest Entity | |||
Assets | $ 187 | 186 | |
Unfunded commitment amounts | 173 | $ 163 | |
Capital contribution to private equity investments | $ 12 | $ 9 |
Variable Interest Entities - In
Variable Interest Entities - Investments in Qualified Affordable Housing Tax Credits (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Affordable Housing Investments | ||
Variable Interest Entity [Line Items] | ||
Impairment losses | $ 0 | $ 0 |
Applicable income tax expense | ||
Variable Interest Entity [Line Items] | ||
Proportional amortization | 43,000,000 | 35,000,000 |
Tax credits and other benefits | $ (51,000,000) | $ (41,000,000) |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Residential mortgage loan sales | $ 1,275 | $ 3,400 |
Origination fees and gains on loan sales | 18 | 25 |
Gross mortgage servicing fees | $ 83 | $ 71 |
Sales of Receivables and Serv_4
Sales of Receivables and Servicing Rights - Changes in the Servicing Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, beginning of period | $ 1,746 | $ 1,121 |
Servicing rights originated | 16 | 47 |
Servicing rights purchased | 16 | 139 |
Changes in fair value: Due to changes in inputs or assumptions | (19) | 190 |
Changes in fair value: Other changes in fair value | (34) | (53) |
Balance, end of period | $ 1,725 | $ 1,444 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | ||
Securities losses, net – non-qualifying hedges on mortgage servicing rights | $ 0 | $ (1) |
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio | 21 | (181) |
MSR fair value adjustments due to changes in inputs or assumptions | $ (19) | $ 190 |
Sales of Receivables and Serv_6
Sales of Receivables and Servicing Rights - Servicing Rights and Residual Interests Economic Assumptions (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fixed-rate | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 6 years 8 months 12 days | 7 years 3 months 18 days |
Prepayment Speed (annual) (as a percent) | 12.40% | 8.10% |
OAS (bps) | 621 | 729 |
Adjustable-rate | ||
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 3 years | 2 years 9 months 18 days |
Prepayment Speed (annual) (as a percent) | 27.90% | 27.70% |
OAS (bps) | 774 | 798 |
Sales of Receivables and Serv_7
Sales of Receivables and Servicing Rights - Additional Information (Details) - USD ($) $ in Billions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |||
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fees and Commissions, Mortgage Banking and Servicing | Fees and Commissions, Mortgage Banking and Servicing | |
Servicing of residential mortgage loans for other investors | $ 103.4 | $ 103.2 | |
Weighted-average coupon of the MSR portfolio (as a percent) | 3.62% | 3.59% |
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 | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fixed-rate | |
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 | $ 1,720 |
Weighted- Average Life (in years) | 8 years 7 months 6 days |
Prepayment Speed Assumption, Rate (as a percent) | 5.60% |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 10% | $ (42) |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 20% | (80) |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 50% | $ (178) |
OAS Speed Assumption, OAS (bps) | 629 |
OAS Spread Assumption, Impact of Adverse Change on Fair Value 10% | $ (45) |
OAS Spread Assumption, Impact of Adverse Change on Fair Value 20% | (87) |
Adjustable-rate | |
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 | $ 5 |
Weighted- Average Life (in years) | 5 years 1 month 6 days |
Prepayment Speed Assumption, Rate (as a percent) | 20.30% |
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) | 1,204 |
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 ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative | |||
Amount of variation margin payment applied to derivative asset contracts | $ 854,000,000 | $ 1,000,000,000 | |
Valuation adjustments related to the credit risk associated with counterparties of customer accommodation derivative contracts | 10,000,000 | 9,000,000 | |
Collateral for derivative liabilities | 1,985,000,000 | 2,140,000,000 | |
Amount of variation margin payment applied to derivative liability contracts | 684,000,000 | 1,000,000,000 | |
Gain or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges | 0 | $ 0 | |
Notional amount of the risk participations agreements | 3,871,000,000 | 3,710,000,000 | |
Interest rate contracts | Credit Risk | |||
Derivative | |||
Fair value of risk participation agreements | $ 8,000,000 | 7,000,000 | |
Weighted-average remaining life | 3 years 6 months | ||
Cash Flow Hedging | Interest rate contracts | |||
Derivative | |||
Maximum length of time of hedging exposure | 106 months | ||
Deferred gain (loss), net of tax, on cash flow hedges recorded in accumulated other comprehensive income | $ 233,000,000 | 498,000,000 | |
Net deferred gain (loss), net of tax, recorded in AOCI are expected to be reclassified into earnings | 265,000,000 | ||
Total collateral | |||
Derivative | |||
Collateral held for derivative assets | 1,500,000,000 | 1,300,000,000 | |
Collateral for derivative liabilities | $ 853,000,000 | $ 913,000,000 |
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 ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value | ||
Derivative Assets | $ 2,757 | $ 3,173 |
Derivative Liabilities | 3,300 | 3,952 |
Amount of variation margin payment applied to derivative asset contracts | 854 | 1,000 |
Amount of variation margin payment applied to derivative liability contracts | 684 | 1,000 |
Designated as Hedging Instrument | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Derivative Assets | 178 | 157 |
Derivative Liabilities | 239 | 296 |
Designated as Hedging Instrument | Fair Value Hedging | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Derivative Assets | 164 | 126 |
Derivative Liabilities | 144 | 195 |
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 | 5,955 | 5,955 |
Derivative Assets | 164 | 126 |
Derivative Liabilities | 144 | 195 |
Designated as Hedging Instrument | Cash Flow Hedging | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ||
Derivatives, Fair Value | ||
Derivative Assets | 14 | 31 |
Derivative Liabilities | 95 | 101 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Commercial and industrial | ||
Derivatives, Fair Value | ||
Notional Amount | 8,000 | 8,000 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 80 | 76 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Commercial mortgage and commercial construction | ||
Derivatives, Fair Value | ||
Notional Amount | 4,000 | 4,000 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 14 | 25 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate floor | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Commercial and industrial | ||
Derivatives, Fair Value | ||
Notional Amount | 3,000 | 3,000 |
Derivative Assets | 4 | 4 |
Derivative Liabilities | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Forward starting interest rate swap | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Commercial and industrial | ||
Derivatives, Fair Value | ||
Notional Amount | 10,000 | 11,000 |
Derivative Assets | 6 | 22 |
Derivative Liabilities | 1 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Forward starting interest rate swap | Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Commercial mortgage and commercial construction | ||
Derivatives, Fair Value | ||
Notional Amount | 4,000 | 4,000 |
Derivative Assets | 4 | 5 |
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Derivative Assets | 2,579 | 3,016 |
Derivative Liabilities | 3,061 | 3,656 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value | ||
Derivative Assets | 76 | 85 |
Derivative Liabilities | 214 | 220 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest rate contracts related to MSR portfolio | ||
Derivatives, Fair Value | ||
Notional Amount | 2,700 | 2,975 |
Derivative Assets | 61 | 62 |
Derivative Liabilities | 3 | 17 |
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 | 960 | 1,869 |
Derivative Assets | 1 | 9 |
Derivative Liabilities | 8 | 7 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Swap | ||
Derivatives, Fair Value | ||
Notional Amount | 3,644 | 3,358 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 192 | 195 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Notional Amount | 194 | 156 |
Derivative Assets | 0 | 1 |
Derivative Liabilities | 1 | 0 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest-only strips | ||
Derivatives, Fair Value | ||
Notional Amount | 58 | 58 |
Derivative Assets | 4 | 4 |
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest rate contracts for collateral management | ||
Derivatives, Fair Value | ||
Notional Amount | 12,000 | 12,000 |
Derivative Assets | 10 | 9 |
Derivative Liabilities | 10 | 1 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest rate contracts for LIBOR transition | ||
Derivatives, Fair Value | ||
Notional Amount | 597 | 597 |
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Customer Accommodation | ||
Derivatives, Fair Value | ||
Derivative Assets | 2,503 | 2,931 |
Derivative Liabilities | 2,847 | 3,436 |
Not Designated as Hedging Instrument | Customer Accommodation | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Notional Amount | 24,329 | 25,322 |
Derivative Assets | 450 | 453 |
Derivative Liabilities | 406 | 422 |
Not Designated as Hedging Instrument | Customer Accommodation | Interest rate contracts | ||
Derivatives, Fair Value | ||
Notional Amount | 91,778 | 83,605 |
Derivative Assets | 893 | 998 |
Derivative Liabilities | 1,385 | 1,663 |
Amount of variation margin payment applied to derivative asset contracts | 505 | 694 |
Amount of variation margin payment applied to derivative liability contracts | 27 | 37 |
Not Designated as Hedging Instrument | Customer Accommodation | Interest rate lock commitments | ||
Derivatives, Fair Value | ||
Notional Amount | 367 | 216 |
Derivative Assets | 7 | 2 |
Derivative Liabilities | 0 | 1 |
Not Designated as Hedging Instrument | Customer Accommodation | Commodity contracts | ||
Derivatives, Fair Value | ||
Notional Amount | 16,942 | 16,122 |
Derivative Assets | 1,153 | 1,478 |
Derivative Liabilities | 1,056 | 1,350 |
Not Designated as Hedging Instrument | Customer Accommodation | TBA securities | ||
Derivatives, Fair Value | ||
Notional Amount | 34 | 62 |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivatives, Fair Value | |||
Carrying amount of the hedged items | $ 5,954 | $ 5,865 | |
Long-term debt | |||
Derivatives, Fair Value | |||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | 25 | (64) | |
Available-for-sale debt and other securities | |||
Derivatives, Fair Value | |||
Cumulative amount of fair value hedging adjustments remaining for hedged items for which hedge accounting has been discontinued | (13) | $ (14) | |
Interest rate contracts | Interest on long-term debt | |||
Derivatives, Fair Value | |||
Change in fair value of interest rate swaps hedging financial instrument | 92 | $ (152) | |
Change in fair value of hedged financial instrument attributable to the risk being hedged | (89) | 152 | |
Interest rate contracts | Interest on securities | |||
Derivatives, Fair Value | |||
Change in fair value of interest rate swaps hedging financial instrument | 0 | 8 | |
Change in fair value of hedged financial instrument attributable to the risk being hedged | $ 0 | $ (8) |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of pre-tax net gains (losses) recognized in OCI | $ 278 | $ (407) |
Amount of pre-tax net (losses) gains reclassified from OCI into net income | $ (65) | $ 78 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | $ 21 | $ (181) |
Forward contracts related to residential mortgage loans held for sale | Mortgage banking net revenue | Residential mortgages held for sale | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | (9) | 33 |
Interest rate contracts | Mortgage banking net revenue | MSR portfolio | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 21 | (181) |
Foreign exchange contracts | Other noninterest income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 0 | (2) |
Equity contracts | Other noninterest income | Swap | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | $ (31) | $ (11) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Risk Ratings of the Notional Amount of Risk Participation Agreements (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 3,871 | $ 3,710 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 3,738 | 3,597 |
Special mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 61 | 81 |
Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 72 | $ 32 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | $ 21 | $ (181) |
Interest rate contracts | Contract revenue | Commercial banking revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 10 | 16 |
Interest rate contracts | Credit portion of fair value adjustment | Other noninterest expense | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | (3) | 6 |
Interest rate contracts | Interest rate lock commitments | Mortgage banking net revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 13 | 0 |
Commodity contracts | Contract revenue | Commercial banking revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 10 | 9 |
Commodity contracts | Credit portion of fair value adjustment | Other noninterest expense | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | (1) | (1) |
Foreign exchange contracts | Other noninterest income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 0 | (2) |
Foreign exchange contracts | Contract revenue | Commercial banking revenue | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | 19 | 16 |
Foreign exchange contracts | Contract revenue | Other noninterest income | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | (3) | 2 |
Foreign exchange contracts | Credit portion of fair value adjustment | Other noninterest expense | ||
Derivative Instruments, Gain (Loss) | ||
Net gains (losses) recorded in earnings | $ 1 | $ (1) |
Derivative Financial Instrum_10
Derivative Financial Instruments - Offsetting Derivative Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative assets | ||
Gross Amount Recognized in the Condensed Consolidated Balance Sheets | $ 2,750 | $ 3,171 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Derivatives | (1,096) | (1,405) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral | (894) | (887) |
Net Amount | 760 | 879 |
Derivative liabilities | ||
Gross Amount Recognized in the Condensed Consolidated Balance Sheets | 3,300 | 3,951 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Derivatives | (1,096) | (1,405) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral | (219) | (406) |
Net Amount | $ 1,985 | $ 2,140 |
Other Short-Term Borrowings (De
Other Short-Term Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Short-Term Debt [Abstract] | ||
FHLB advances | $ 6,800 | $ 4,300 |
Securities sold under repurchase agreements | 330 | 388 |
Derivative collateral | 208 | 124 |
Other borrowed money | 26 | 26 |
Other short-term borrowings | $ 7,364 | $ 4,838 |
Capital Actions (Details)
Capital Actions (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) shares | |
Accelerated Share Repurchases [Line Items] | |
Value of shares repurchased | $ | $ 201 |
January 24, 2023 ASR | |
Accelerated Share Repurchases [Line Items] | |
Value of shares repurchased | $ | $ 200 |
Shares Repurchased on Repurchase Date (in shares) | 4,911,875 |
Shares Received from Forward Contract Settlement (in shares) | 678,121 |
Total Shares Repurchased (in shares) | 5,589,996 |
Commitments, Contingent Liabi_3
Commitments, Contingent Liabilities and Guarantees - Summary of Significant Commitments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Commitments to extend credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 84,732 | $ 83,437 |
Letters of credit | ||
Long-term Purchase Commitment | ||
Commitments | 2,046 | 2,009 |
Forward contracts related to residential mortgage loans held for sale | ||
Long-term Purchase Commitment | ||
Commitments | 960 | 1,869 |
Capital commitments for private equity investments | ||
Long-term Purchase Commitment | ||
Commitments | 173 | 163 |
Purchase obligations | ||
Long-term Purchase Commitment | ||
Commitments | 102 | 113 |
Capital expenditures | ||
Long-term Purchase Commitment | ||
Commitments | $ 97 | $ 94 |
Commitments, Contingent Liabi_4
Commitments, Contingent Liabilities and Guarantees - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |||||||||||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2008 | |
Loss Contingencies | ||||||||||||||
Margin account balance held by the brokerage clearing agent | $ 14 | $ 14 | ||||||||||||
Visa | ||||||||||||||
Loss Contingencies | ||||||||||||||
Fair value of liability | 192 | 195 | ||||||||||||
Visa IPO, shares of Visa's Class B common stock received (in shares) | 10.1 | |||||||||||||
Visa Class B shares carryover basis | $ 0 | |||||||||||||
Escrow deposit | 350 | $ 600 | $ 250 | $ 300 | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 | ||
Residential mortgage loans | ||||||||||||||
Loss Contingencies | ||||||||||||||
Fair value of liability | 12 | |||||||||||||
Make-whole payments | 0 | $ 0 | ||||||||||||
Repurchased outstanding principal | 18 | 14 | ||||||||||||
Repurchase demand request | 36 | $ 23 | ||||||||||||
Outstanding repurchase demand inventory | 23 | 25 | ||||||||||||
Secured Debt | ||||||||||||||
Loss Contingencies | ||||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62 | 62 | ||||||||||||
Standby Letters of Credit | ||||||||||||||
Loss Contingencies | ||||||||||||||
Reserve for unfunded commitments | $ 22 | $ 22 | ||||||||||||
Standby letters of credit as a percentage of total letters of credit | 99% | 99% | ||||||||||||
Standby Letters of Credit | Secured Debt | ||||||||||||||
Loss Contingencies | ||||||||||||||
Standby letters of credit as a percentage of total letters of credit | 67% | 67% | ||||||||||||
Variable Rate Demand Note | ||||||||||||||
Loss Contingencies | ||||||||||||||
Total variable rate demand notes | $ 421 | $ 423 | ||||||||||||
Letters of credit issued related to variable rate demand notes | 100 | 102 | ||||||||||||
Variable Rate Demand Note | Trading Securities | ||||||||||||||
Loss Contingencies | ||||||||||||||
Total variable rate demand notes | 5 | 3 | ||||||||||||
Other Liabilities | ||||||||||||||
Loss Contingencies | ||||||||||||||
Reserve for unfunded commitments | 232 | 216 | ||||||||||||
Other Liabilities | Residential mortgage loans | ||||||||||||||
Loss Contingencies | ||||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | $ 9 | $ 9 |
Commitments, Contingent Liabi_5
Commitments, Contingent Liabilities and Guarantees - Risk Rating Under the Risk Rating System (Details) - Commitments to extend credit - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Line of Credit Facility | ||
Commitments | $ 84,732 | $ 83,437 |
Pass | ||
Line of Credit Facility | ||
Commitments | 82,677 | 81,345 |
Special mention | ||
Line of Credit Facility | ||
Commitments | 756 | 976 |
Substandard | ||
Line of Credit Facility | ||
Commitments | $ 1,299 | $ 1,116 |
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 | Mar. 31, 2023 USD ($) |
Line of Credit Facility | |
Commitments | $ 2,046 |
Less than 1 year | |
Line of Credit Facility | |
Commitments | 988 |
Less than 1 year | Commercial | |
Line of Credit Facility | |
Commitments | 2 |
1 - 5 years | |
Line of Credit Facility | |
Commitments | 1,047 |
1 - 5 years | Commercial | |
Line of Credit Facility | |
Commitments | 3 |
Over 5 years | |
Line of Credit Facility | |
Commitments | $ 11 |
Commitments, Contingent Liabi_7
Commitments, Contingent Liabilities and Guarantees - Letters of Credit (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 2,046 | $ 2,009 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 1,849 | 1,827 |
Special mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 58 | 47 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 138 | 135 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 1 | $ 0 |
Commitments, Contingent Liabi_8
Commitments, Contingent Liabilities and Guarantees - Visa Funding and Bancorp Cash Payments (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||||||
Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2014 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Dec. 31, 2010 | Jun. 30, 2010 | Dec. 31, 2008 | |
Visa Funding | ||||||||||||
Loss Contingencies | ||||||||||||
Escrow Deposit | $ 350 | $ 600 | $ 250 | $ 300 | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 |
Bancorp Cash Payment | ||||||||||||
Loss Contingencies | ||||||||||||
Cash Payment Amount | $ 15 | $ 25 | $ 11 | $ 12 | $ 26 | $ 18 | $ 6 | $ 75 | $ 19 | $ 35 | $ 20 |
Legal and Regulatory Proceedi_2
Legal and Regulatory Proceedings (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Mar. 29, 2023 USD ($) | May 28, 2019 USD ($) | Sep. 17, 2018 USD ($) | Oct. 31, 2012 merchant | Dec. 31, 2013 lawsuit | Mar. 31, 2023 USD ($) | Dec. 31, 2020 lawsuit | Aug. 03, 2012 | |
Loss Contingencies | ||||||||
Apr percentage allegedly misleading | 120% | |||||||
Number of putative class actions filed | lawsuit | 4 | |||||||
Damages sought | $ 440 | |||||||
Damages awarded | $ 2 | |||||||
Amount in excess of amounts reserved | $ 151 | |||||||
Shareholder Derivative Lawsuit | ||||||||
Loss Contingencies | ||||||||
Number of pending claims | lawsuit | 5 | |||||||
Federal Lawsuits | ||||||||
Loss Contingencies | ||||||||
Number of merchants requesting exclusion | merchant | 500 | |||||||
Class Action Settlement | ||||||||
Loss Contingencies | ||||||||
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 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Applicable income tax expense | $ 160 | $ 118 |
Effective income tax rate | 22.30% | 19.20% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Activity in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), pre-tax activity | $ 1,131 | $ (2,992) |
Other comprehensive income (loss), tax effect | (266) | 689 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 17,327 | |
Other comprehensive income (loss), net of tax | 865 | (2,303) |
Ending balance | 18,364 | |
AOCI | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (5,110) | 1,207 |
Other comprehensive income (loss), net of tax | 865 | (2,303) |
Ending balance | (4,245) | (1,096) |
Available-for-sale debt securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications, pre-tax activity | 788 | (2,505) |
Other comprehensive income (loss), before reclassifications, tax effect | (188) | 576 |
Other comprehensive income (loss), before reclassifications, net activity | 600 | (1,929) |
Reclassification adjustment, pre-tax activity | 0 | (3) |
Reclassification adjustment, tax effect | 0 | 1 |
Reclassification adjustment, net activity | 0 | (2) |
Other comprehensive income (loss), pre-tax activity | 788 | (2,508) |
Other comprehensive income (loss), tax effect | (188) | 577 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (4,589) | 891 |
Other comprehensive income (loss), net of tax | 600 | (1,931) |
Ending balance | (3,989) | (1,040) |
Cash flow hedge derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications, pre-tax activity | 278 | (407) |
Other comprehensive income (loss), before reclassifications, tax effect | (63) | 94 |
Other comprehensive income (loss), before reclassifications, net activity | 215 | (313) |
Reclassification adjustment, pre-tax activity | 65 | (78) |
Reclassification adjustment, tax effect | (15) | 18 |
Reclassification adjustment, net activity | 50 | (60) |
Other comprehensive income (loss), pre-tax activity | 343 | (485) |
Other comprehensive income (loss), tax effect | (78) | 112 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (498) | 353 |
Other comprehensive income (loss), net of tax | 265 | (373) |
Ending balance | (233) | (20) |
Defined benefit pension plants, net | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, pre-tax activity | 0 | 1 |
Reclassification adjustment, tax effect | 0 | 0 |
Reclassification adjustment, net activity | 0 | 1 |
Other comprehensive income (loss), pre-tax activity | 0 | 1 |
Other comprehensive income (loss), tax effect | 0 | 0 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (19) | (33) |
Other comprehensive income (loss), net of tax | 0 | 1 |
Ending balance | (19) | (32) |
Other | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), pre-tax activity | 0 | 0 |
Other comprehensive income (loss), tax effect | 0 | 0 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (4) | (4) |
Other comprehensive income (loss), net of tax | 0 | 0 |
Ending balance | $ (4) | $ (4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Securities gains (losses), net | $ 4 | $ (14) |
Interest and fees on loans and leases | 1,714 | 983 |
Compensation and benefits | (757) | (711) |
Income (loss) before income taxes | 718 | 612 |
Applicable income tax expense | 160 | 118 |
Net income | 558 | 494 |
Reclassification out of AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Net income | (50) | 61 |
Reclassification out of AOCI | Available-for-sale debt securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Securities gains (losses), net | 0 | 3 |
Income (loss) before income taxes | 0 | 3 |
Applicable income tax expense | 0 | (1) |
Net income | 0 | 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 | (65) | 78 |
Income (loss) before income taxes | (65) | 78 |
Applicable income tax expense | 15 | (18) |
Net income | (50) | 60 |
Reclassification out of AOCI | Net periodic benefit costs | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Income (loss) before income taxes | 0 | (1) |
Applicable income tax expense | 0 | 0 |
Net income | 0 | (1) |
Reclassification out of AOCI | Amortization of net actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Compensation and benefits | $ 0 | $ (1) |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share: | ||
Net income available to common shareholders | $ 535 | $ 474 |
Less: Income allocated to participating securities | 0 | 1 |
Net income allocated to common shareholders | $ 535 | $ 473 |
Average shares (in shares) | 684,017,462 | 687,537,989 |
Earnings per share (in dollars per share) | $ 0.78 | $ 0.69 |
Earnings Per Diluted Share: | ||
Net income available to common shareholders | $ 535 | $ 474 |
Stock-based awards | 0 | 0 |
Less: Income allocated to participating securities | 0 | 1 |
Net income allocated to common shareholders | $ 535 | $ 473 |
Average shares, stock based awards (in shares) | 6,000,000 | 8,000,000 |
Average shares (in shares) | 689,566,425 | 696,242,395 |
Earnings per diluted share (in dollars per share) | $ 0.78 | $ 0.68 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities (in shares) | 4 | 1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Assets: | |||
Equity securities | $ 323 | $ 317 | |
Derivative assets | 2,750 | 3,171 | |
Liabilities: | |||
Derivative liabilities | 3,300 | 3,951 | |
Residential Mortgage | |||
Assets: | |||
Residential mortgage loans | 128 | 123 | $ 145 |
Other securities | |||
Liabilities: | |||
FHLB, restricted stock holdings | 396 | 381 | |
FRB, restricted stock holdings | 491 | 491 | |
DTCC, restricted stock holdings | 3 | 2 | |
Level 3 | Interest rate contracts | |||
Assets: | |||
Derivative assets | 11 | 8 | |
Liabilities: | |||
Derivative liabilities | 8 | $ 10 | |
Recurring | |||
Assets: | |||
Available-for-sale debt and other securities | 49,829 | 50,629 | |
Trading debt securities | 1,174 | 414 | |
Equity securities | 323 | 317 | |
Residential mortgage loans held for sale | 599 | 600 | |
Derivative assets | 2,757 | 3,173 | |
Total assets | 56,535 | 57,002 | |
Liabilities: | |||
Derivative liabilities | 3,300 | 3,952 | |
Short positions | 222 | 178 | |
Total liabilities | 3,522 | 4,130 | |
Recurring | Interest rate contracts | |||
Assets: | |||
Derivative assets | 1,154 | 1,241 | |
Liabilities: | |||
Derivative liabilities | 1,645 | 1,985 | |
Recurring | Foreign exchange contracts | |||
Assets: | |||
Derivative assets | 450 | 454 | |
Liabilities: | |||
Derivative liabilities | 407 | 422 | |
Recurring | Equity contracts | |||
Liabilities: | |||
Derivative liabilities | 192 | 195 | |
Recurring | Commodity contracts | |||
Assets: | |||
Derivative assets | 1,153 | 1,478 | |
Liabilities: | |||
Derivative liabilities | 1,056 | 1,350 | |
Recurring | Servicing rights | |||
Assets: | |||
Servicing rights | 1,725 | 1,746 | |
Recurring | Residential Mortgage | |||
Assets: | |||
Residential mortgage loans | 128 | 123 | |
Recurring | U.S. Treasury and federal agencies securities | |||
Assets: | |||
Available-for-sale debt and other securities | 2,689 | 2,495 | |
Trading debt securities | 687 | 45 | |
Liabilities: | |||
Short positions | 74 | 66 | |
Recurring | Obligations of states and political subdivisions securities | |||
Assets: | |||
Available-for-sale debt and other securities | 3 | 18 | |
Trading debt securities | 49 | 14 | |
Recurring | Agency mortgage-backed securities | Residential Mortgage | |||
Assets: | |||
Available-for-sale debt and other securities | 11,073 | 11,237 | |
Trading debt securities | 11 | 8 | |
Recurring | Agency mortgage-backed securities | Commercial | |||
Assets: | |||
Available-for-sale debt and other securities | 26,183 | 26,322 | |
Recurring | Non-agency mortgage-backed securities | Commercial | |||
Assets: | |||
Available-for-sale debt and other securities | 4,550 | 4,715 | |
Recurring | Asset-backed securities and other debt securities | |||
Assets: | |||
Available-for-sale debt and other securities | 5,331 | 5,842 | |
Trading debt securities | 427 | 347 | |
Liabilities: | |||
Short positions | 148 | 112 | |
Recurring | Level 1 | |||
Assets: | |||
Available-for-sale debt and other securities | 2,689 | 2,495 | |
Trading debt securities | 669 | 23 | |
Equity securities | 311 | 306 | |
Residential mortgage loans held for sale | 0 | 0 | |
Derivative assets | 128 | 68 | |
Total assets | 3,797 | 2,892 | |
Liabilities: | |||
Derivative liabilities | 42 | 99 | |
Short positions | 74 | 66 | |
Total liabilities | 116 | 165 | |
Recurring | Level 1 | Interest rate contracts | |||
Assets: | |||
Derivative assets | 3 | 12 | |
Liabilities: | |||
Derivative liabilities | 8 | 7 | |
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 | 125 | 56 | |
Liabilities: | |||
Derivative liabilities | 34 | 92 | |
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 agencies securities | |||
Assets: | |||
Available-for-sale debt and other securities | 2,689 | 2,495 | |
Trading debt securities | 669 | 23 | |
Liabilities: | |||
Short positions | 74 | 66 | |
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 | 47,140 | 48,134 | |
Trading debt securities | 505 | 391 | |
Equity securities | 12 | 11 | |
Residential mortgage loans held for sale | 599 | 600 | |
Derivative assets | 2,618 | 3,098 | |
Total assets | 50,874 | 52,234 | |
Liabilities: | |||
Derivative liabilities | 3,058 | 3,650 | |
Short positions | 148 | 112 | |
Total liabilities | 3,206 | 3,762 | |
Recurring | Level 2 | Interest rate contracts | |||
Assets: | |||
Derivative assets | 1,140 | 1,222 | |
Liabilities: | |||
Derivative liabilities | 1,629 | 1,970 | |
Recurring | Level 2 | Foreign exchange contracts | |||
Assets: | |||
Derivative assets | 450 | 454 | |
Liabilities: | |||
Derivative liabilities | 407 | 422 | |
Recurring | Level 2 | Equity contracts | |||
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Recurring | Level 2 | Commodity contracts | |||
Assets: | |||
Derivative assets | 1,028 | 1,422 | |
Liabilities: | |||
Derivative liabilities | 1,022 | 1,258 | |
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 agencies securities | |||
Assets: | |||
Available-for-sale debt and other securities | 0 | 0 | |
Trading debt securities | 18 | 22 | |
Liabilities: | |||
Short positions | 0 | 0 | |
Recurring | Level 2 | Obligations of states and political subdivisions securities | |||
Assets: | |||
Available-for-sale debt and other securities | 3 | 18 | |
Trading debt securities | 49 | 14 | |
Recurring | Level 2 | Agency mortgage-backed securities | Residential Mortgage | |||
Assets: | |||
Available-for-sale debt and other securities | 11,073 | 11,237 | |
Trading debt securities | 11 | 8 | |
Recurring | Level 2 | Agency mortgage-backed securities | Commercial | |||
Assets: | |||
Available-for-sale debt and other securities | 26,183 | 26,322 | |
Recurring | Level 2 | Non-agency mortgage-backed securities | Commercial | |||
Assets: | |||
Available-for-sale debt and other securities | 4,550 | 4,715 | |
Recurring | Level 2 | Asset-backed securities and other debt securities | |||
Assets: | |||
Available-for-sale debt and other securities | 5,331 | 5,842 | |
Trading debt securities | 427 | 347 | |
Liabilities: | |||
Short positions | 148 | 112 | |
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 | 11 | 7 | |
Total assets | 1,864 | 1,876 | |
Liabilities: | |||
Derivative liabilities | 200 | 203 | |
Short positions | 0 | 0 | |
Total liabilities | 200 | 203 | |
Recurring | Level 3 | Interest rate contracts | |||
Assets: | |||
Derivative assets | 11 | 7 | |
Liabilities: | |||
Derivative liabilities | 8 | 8 | |
Recurring | Level 3 | Foreign exchange contracts | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Recurring | Level 3 | Equity contracts | |||
Liabilities: | |||
Derivative liabilities | 192 | 195 | |
Recurring | Level 3 | Commodity contracts | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Liabilities: | |||
Derivative liabilities | 0 | 0 | |
Recurring | Level 3 | Servicing rights | |||
Assets: | |||
Servicing rights | 1,725 | 1,746 | |
Recurring | Level 3 | Residential Mortgage | |||
Assets: | |||
Residential mortgage loans | 128 | 123 | |
Recurring | Level 3 | U.S. Treasury and federal agencies 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 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Net fair value of the interest rate lock commitments | $ 7,000,000 | ||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bps | 2,000,000 | ||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bps | 4,000,000 | ||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bps | 3,000,000 | ||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bps | 6,000,000 | ||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 1,000,000 | ||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 1,000,000 | ||
Gain resulting from observable price changes | 0 | $ 4,000,000 | |
Private equity, cumulative observable price change | 40,000,000 | ||
Private equity, impairment | 1,000,000 | 10,000,000 | |
Private equity, cumulative impairment | 35,000,000 | ||
Fair value of embedded derivatives | 0 | $ 0 | |
Gain on embedded derivatives | 0 | 11,000,000 | |
Other Real Estate Owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value adjustment | 0 | 1,000,000 | |
Transfer | Other Real Estate Owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value gains (losses) | 0 | 0 | |
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 | 8,000,000 | $ 10,000,000 | |
FVO valuation adjustments related to instrument-specific credit risk | $ 1,000,000 | $ 1,000,000 |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Balance, beginning of period | $ 1,673 | $ 1,065 | |
Included in earnings | (67) | 122 | |
Purchases/originations | 30 | 184 | |
Settlements | 24 | 12 | |
Transfers into Level 3 | 4 | 6 | |
Balance, end of period | 1,664 | 1,389 | |
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (56) | 197 | |
Derivative assets | 2,750 | $ 3,171 | |
Derivative liabilities | 3,300 | $ 3,951 | |
Unrealized gains or losses included in other comprehensive income for instruments still held | 0 | 0 | |
Interest rate contracts | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Derivative assets | 11 | 8 | |
Derivative liabilities | 8 | 10 | |
Servicing Rights | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Balance, beginning of period | 1,746 | 1,121 | |
Included in earnings | (53) | 137 | |
Purchases/originations | 32 | 186 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Balance, end of period | 1,725 | 1,444 | |
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (35) | 207 | |
Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Balance, beginning of period | (1) | 4 | |
Included in earnings | 14 | 2 | |
Purchases/originations | (2) | (2) | |
Settlements | (8) | (6) | |
Transfers into Level 3 | 0 | 0 | |
Balance, end of period | 3 | (2) | |
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 7 | 7 | |
Equity Derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Balance, beginning of period | (195) | (214) | |
Included in earnings | (31) | (11) | |
Purchases/originations | 0 | 0 | |
Settlements | 34 | 27 | |
Transfers into Level 3 | 0 | 0 | |
Balance, end of period | (192) | (198) | |
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (31) | (11) | |
Residential Mortgage Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Balance, beginning of period | 123 | 154 | |
Included in earnings | 3 | (6) | |
Purchases/originations | 0 | 0 | |
Settlements | (2) | (9) | |
Transfers into Level 3 | 4 | 6 | |
Balance, end of period | 128 | 145 | |
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | $ 3 | $ (6) |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Gains and losses included in earnings | $ (67) | $ 122 |
Mortgage banking net revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Gains and losses included in earnings | (37) | 132 |
Commercial banking revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Gains and losses included in earnings | 1 | 1 |
Other noninterest income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Gains and losses included in earnings | $ (31) | $ (11) |
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) - Level 3 - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Gain and losses included in earnings | $ (56) | $ 197 |
Mortgage banking net revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Gain and losses included in earnings | (26) | 207 |
Commercial banking revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Gain and losses included in earnings | 1 | 1 |
Other noninterest income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Gain and losses included in earnings | $ (31) | $ (11) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative assets | $ 2,750 | $ 3,171 | |
Derivative liabilities | (3,300) | (3,951) | |
Servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Servicing rights | $ 1,725 | $ 1,444 | |
Servicing rights | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 0% | 0% | |
OAS (bps) | 477 | 615 | |
Servicing rights | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 100% | 100% | |
OAS (bps) | 1,447 | 1,513 | |
Servicing rights | Fixed | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 5.60% | 6.70% | |
OAS (bps) | 629 | 749 | |
Servicing rights | Adjustable | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 20.30% | 19.70% | |
OAS (bps) | 1,204 | 1,092 | |
IRLCs, net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative assets | $ 7 | $ 6 | |
IRLCs, net | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 22.30% | 42% | |
IRLCs, net | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 97.50% | 98.30% | |
IRLCs, net | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 82.50% | 85.90% | |
Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative liabilities | $ (192) | $ (198) | |
Swap | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Mar. 31, 2024 | Mar. 31, 2023 | |
Swap | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Mar. 31, 2027 | Jun. 30, 2025 | |
Swap | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Jun. 30, 2025 | Jun. 30, 2024 | |
Residential Mortgage | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loans measured at FV | $ 128 | $ 145 | $ 123 |
Residential Mortgage | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | (22.20%) | (13.20%) | |
Credit risk factor | 0% | 0% | |
Residential Mortgage | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | 5.70% | 5.90% | |
Credit risk factor | 23.20% | 20.70% | |
Residential Mortgage | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | (10.30%) | (3.70%) | |
Credit risk factor | 0.50% | 0.20% |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | $ 328 | $ 314 |
Total Losses | (80) | (39) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 9 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 328 | 305 |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 21 | |
Total Losses | 0 | |
Commercial loans held for sale | Commercial | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | |
Commercial loans held for sale | Commercial | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | |
Commercial loans held for sale | Commercial | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 21 | |
Commercial loans and leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 160 | 178 |
Total Losses | (76) | (32) |
Commercial loans and leases | Commercial | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Commercial loans and leases | Commercial | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Commercial loans and leases | Commercial | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 160 | 178 |
Consumer and residential mortgage loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 138 | 117 |
Total Losses | (2) | 0 |
Consumer and residential mortgage loans | Consumer | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Consumer and residential mortgage loans | Consumer | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Consumer and residential mortgage loans | Consumer | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 138 | 117 |
OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 2 | 1 |
Total Losses | 0 | 1 |
OREO | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
OREO | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
OREO | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 2 | 1 |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 5 | 1 |
Total Losses | (1) | 0 |
Bank premises and equipment | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Bank premises and equipment | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Bank premises and equipment | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 5 | 1 |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 6 | |
Total Losses | (2) | |
Operating lease equipment | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | |
Operating lease equipment | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | |
Operating lease equipment | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 6 | |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 2 | 11 |
Total Losses | (1) | (6) |
Private equity investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Private equity investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 9 |
Private equity investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | $ 2 | $ 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 | Mar. 31, 2023 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | $ 328 | $ 314 |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 21 | |
Commercial loans and leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 160 | 178 |
Consumer and residential mortgage loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 138 | 117 |
OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 2 | 1 |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 5 | 1 |
Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 6 | |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 2 | 11 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 328 | 305 |
Level 3 | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 21 | |
Level 3 | Commercial loans and leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 160 | 178 |
Level 3 | Consumer and residential mortgage loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 138 | 117 |
Level 3 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 2 | 1 |
Level 3 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 5 | 1 |
Level 3 | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 6 | |
Level 3 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 2 | 2 |
Level 3 | Appraised Value | Commercial loans and leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 160 | 178 |
Level 3 | Appraised Value | Consumer and residential mortgage loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 138 | 117 |
Level 3 | Appraised Value | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 2 | 1 |
Level 3 | Appraised Value | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 5 | 1 |
Level 3 | Appraised Value | Operating lease equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 6 | |
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 | 21 | |
Level 3 | Comparable Company Analysis | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | $ 2 | $ 2 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Aggregate Fair Value | ||
Loans measured at fair value | $ 727 | $ 723 |
Past due loans of 30-89 days or more | 1 | |
Non accrual loans | 3 | 2 |
Aggregate Unpaid Principal Balance | ||
Loans measured at fair value | 735 | 733 |
Past due loans of 30-89 days or more | 1 | |
Non accrual loans | 3 | 2 |
Difference | ||
Loans measured at fair value | (8) | (10) |
Past due loans of 30-89 days or more | 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 | Mar. 31, 2023 | Dec. 31, 2022 | |
Financial assets: | |||
Other short-term investments | [1] | $ 9,794 | $ 8,351 |
Held-to-maturity securities | [2] | 2 | 5 |
Loans and leases held for sale | [3] | 749 | 1,007 |
Total portfolio loans and leases, net | 120,642 | 119,286 | |
Financial liabilities: | |||
Deposits | 162,975 | 163,690 | |
Federal funds purchased | 177 | 180 | |
Other short-term borrowings | 7,364 | 4,838 | |
Long-term debt | [1] | 12,893 | 13,714 |
Commercial | |||
Financial assets: | |||
Total portfolio loans and leases, net | 77,239 | 76,389 | |
Consumer | |||
Financial assets: | |||
Total portfolio loans and leases, net | 45,618 | 45,091 | |
Net Carrying Amount | |||
Financial assets: | |||
Cash and due from banks | 2,780 | 3,466 | |
Other short-term investments | 9,794 | 8,351 | |
Other securities | 890 | 874 | |
Held-to-maturity securities | 2 | 5 | |
Loans and leases held for sale | 150 | 407 | |
Total portfolio loans and leases, net | 120,514 | 119,163 | |
Financial liabilities: | |||
Deposits | 162,975 | 163,690 | |
Federal funds purchased | 177 | 180 | |
Other short-term borrowings | 7,364 | 4,838 | |
Long-term debt | 12,868 | 13,778 | |
Net Carrying Amount | Commercial | |||
Financial assets: | |||
Total portfolio loans and leases, net | 76,096 | 75,262 | |
Net Carrying Amount | Consumer | |||
Financial assets: | |||
Total portfolio loans and leases, net | 44,418 | 43,901 | |
Total Fair Value | |||
Financial assets: | |||
Cash and due from banks | 2,780 | 3,466 | |
Other short-term investments | 9,794 | 8,351 | |
Other securities | 890 | 874 | |
Held-to-maturity securities | 2 | 5 | |
Loans and leases held for sale | 154 | 414 | |
Total portfolio loans and leases, net | 119,441 | 117,297 | |
Financial liabilities: | |||
Deposits | 162,924 | 163,634 | |
Federal funds purchased | 177 | 180 | |
Other short-term borrowings | 7,362 | 4,829 | |
Long-term debt | 12,294 | 13,629 | |
Total Fair Value | Commercial | |||
Financial assets: | |||
Total portfolio loans and leases, net | 76,271 | 75,104 | |
Total Fair Value | Consumer | |||
Financial assets: | |||
Total portfolio loans and leases, net | 43,170 | 42,193 | |
Total Fair Value | Level 1 | |||
Financial assets: | |||
Cash and due from banks | 2,780 | 3,466 | |
Other short-term investments | 9,794 | 8,351 | |
Other securities | 0 | 0 | |
Held-to-maturity securities | 0 | 0 | |
Loans and leases held for sale | 0 | 0 | |
Total portfolio loans and leases, net | 0 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Federal funds purchased | 177 | 180 | |
Other short-term borrowings | 0 | 0 | |
Long-term debt | 11,900 | 13,218 | |
Total Fair Value | Level 1 | Commercial | |||
Financial assets: | |||
Total portfolio loans and leases, net | 0 | 0 | |
Total Fair Value | Level 1 | Consumer | |||
Financial assets: | |||
Total portfolio loans and leases, net | 0 | 0 | |
Total Fair Value | Level 2 | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Other short-term investments | 0 | 0 | |
Other securities | 890 | 874 | |
Held-to-maturity securities | 0 | 0 | |
Loans and leases held for sale | 0 | 0 | |
Total portfolio loans and leases, net | 0 | 0 | |
Financial liabilities: | |||
Deposits | 162,924 | 163,634 | |
Federal funds purchased | 0 | 0 | |
Other short-term borrowings | 7,362 | 4,829 | |
Long-term debt | 394 | 411 | |
Total Fair Value | Level 2 | Commercial | |||
Financial assets: | |||
Total portfolio loans and leases, net | 0 | 0 | |
Total Fair Value | Level 2 | Consumer | |||
Financial assets: | |||
Total portfolio loans and leases, net | 0 | 0 | |
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 | 2 | 5 | |
Loans and leases held for sale | 154 | 414 | |
Total portfolio loans and leases, net | 119,441 | 117,297 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Federal funds purchased | 0 | 0 | |
Other short-term borrowings | 0 | 0 | |
Long-term debt | 0 | 0 | |
Total Fair Value | Level 3 | Commercial | |||
Financial assets: | |||
Total portfolio loans and leases, net | 76,271 | 75,104 | |
Total Fair Value | Level 3 | Consumer | |||
Financial assets: | |||
Total portfolio loans and leases, net | $ 43,170 | $ 42,193 | |
[1]Includes $5 and $17 of other short-term investments, $44 and $185 of portfolio loans and leases, $(1) and $(2) of ALLL, $0 and $2 of other assets, $9 and $9 of other liabilities, and $38 and $118 of long-term debt from consolidated VIEs that are included in their respective captions above at March 31, 2023 and December 31, 2022, respectively. For further information, refer to Note 12.[2]Fair value of $2 and $5 at March 31, 2023 and December 31, 2022, respectively.[3]Includes $599 and $600 of residential mortgage loans held for sale measured at fair value at March 31, 2023 and December 31, 2022, respectively. |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of business segments | 3 |
Business Segments - Results of
Business Segments - Results of Operations and Average Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information | |||
Net interest income | $ 1,517 | $ 1,195 | |
Provision for credit losses | 164 | 45 | |
Net Interest Income After Provision for Credit Losses | 1,353 | 1,150 | |
Noninterest Income | |||
Commercial banking revenue | 161 | 135 | |
Wealth and asset management revenue | 146 | 149 | |
Service charges on deposits | 137 | 152 | |
Card and processing revenue | 100 | 97 | |
Mortgage banking net revenue | 69 | 52 | |
Leasing business revenue | 57 | 62 | |
Other noninterest income | 22 | 52 | |
Securities gains (losses), net | 4 | (14) | |
Securities losses, net – non-qualifying hedges on MSRs | 0 | (1) | |
Total noninterest income | 696 | 684 | |
Noninterest Expense | |||
Compensation and benefits | 757 | 711 | |
Technology and communications | 118 | 101 | |
Net occupancy expense | 81 | 77 | |
Equipment expense | 37 | 36 | |
Leasing business expense | 34 | 32 | |
Marketing expense | 29 | 24 | |
Card and processing expense | 22 | 19 | |
Other noninterest expense | 253 | 222 | |
Total noninterest expense | 1,331 | 1,222 | |
Income (loss) before income taxes | 718 | 612 | |
Applicable income tax expense (benefit) | 160 | 118 | |
Net Income | 558 | 494 | |
Total goodwill | 4,915 | 4,514 | $ 4,915 |
Total assets | 208,657 | 211,459 | |
Impairment losses on bank premises | 1 | 0 | |
Bank premises and equipment held for sale | 22 | $ 24 | |
Impairment losses and termination charges | 1 | 1 | |
Operating Segments | Commercial Banking | |||
Segment Reporting Information | |||
Net interest income | 977 | 523 | |
Provision for credit losses | 46 | (34) | |
Net Interest Income After Provision for Credit Losses | 931 | 557 | |
Noninterest Income | |||
Commercial banking revenue | 160 | 135 | |
Wealth and asset management revenue | 1 | 0 | |
Service charges on deposits | 87 | 100 | |
Card and processing revenue | 22 | 20 | |
Mortgage banking net revenue | 0 | 0 | |
Leasing business revenue | 57 | 62 | |
Other noninterest income | 16 | 22 | |
Securities gains (losses), net | (7) | 0 | |
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | |
Total noninterest income | 336 | 339 | |
Noninterest Expense | |||
Compensation and benefits | 190 | 182 | |
Technology and communications | 2 | 5 | |
Net occupancy expense | 11 | 10 | |
Equipment expense | 7 | 7 | |
Leasing business expense | 34 | 32 | |
Marketing expense | 0 | 1 | |
Card and processing expense | 3 | 2 | |
Other noninterest expense | 304 | 240 | |
Total noninterest expense | 551 | 479 | |
Income (loss) before income taxes | 716 | 417 | |
Applicable income tax expense (benefit) | 136 | 76 | |
Net Income | 580 | 341 | |
Total goodwill | 2,324 | 1,980 | |
Total assets | 83,545 | 79,970 | |
Impairment losses of operating lease equipment | 2 | ||
Operating Segments | Consumer and Small Business Banking | |||
Segment Reporting Information | |||
Net interest income | 1,257 | 517 | |
Provision for credit losses | 51 | 29 | |
Net Interest Income After Provision for Credit Losses | 1,206 | 488 | |
Noninterest Income | |||
Commercial banking revenue | 1 | 0 | |
Wealth and asset management revenue | 53 | 51 | |
Service charges on deposits | 51 | 53 | |
Card and processing revenue | 74 | 74 | |
Mortgage banking net revenue | 69 | 52 | |
Leasing business revenue | 0 | 0 | |
Other noninterest income | 25 | 27 | |
Securities gains (losses), net | 0 | 0 | |
Securities losses, net – non-qualifying hedges on MSRs | 0 | (1) | |
Total noninterest income | 273 | 256 | |
Noninterest Expense | |||
Compensation and benefits | 224 | 218 | |
Technology and communications | 7 | 4 | |
Net occupancy expense | 51 | 48 | |
Equipment expense | 11 | 9 | |
Leasing business expense | 0 | 0 | |
Marketing expense | 17 | 11 | |
Card and processing expense | 20 | 18 | |
Other noninterest expense | 315 | 293 | |
Total noninterest expense | 645 | 601 | |
Income (loss) before income taxes | 834 | 143 | |
Applicable income tax expense (benefit) | 175 | 31 | |
Net Income | 659 | 112 | |
Total goodwill | 2,365 | 2,303 | |
Total assets | 85,296 | 86,626 | |
Impairment losses on bank premises | 1 | 0 | |
Operating Segments | Wealth and Asset Management | |||
Segment Reporting Information | |||
Net interest income | 101 | 35 | |
Provision for credit losses | 0 | 0 | |
Net Interest Income After Provision for Credit Losses | 101 | 35 | |
Noninterest Income | |||
Commercial banking revenue | 0 | 0 | |
Wealth and asset management revenue | 138 | 142 | |
Service charges on deposits | 0 | 0 | |
Card and processing revenue | 1 | 1 | |
Mortgage banking net revenue | 0 | 0 | |
Leasing business revenue | 0 | 0 | |
Other noninterest income | (1) | 1 | |
Securities gains (losses), net | 0 | 0 | |
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | |
Total noninterest income | 138 | 144 | |
Noninterest Expense | |||
Compensation and benefits | 61 | 60 | |
Technology and communications | 0 | 0 | |
Net occupancy expense | 3 | 3 | |
Equipment expense | 0 | 0 | |
Leasing business expense | 0 | 0 | |
Marketing expense | 0 | 0 | |
Card and processing expense | 0 | 0 | |
Other noninterest expense | 82 | 79 | |
Total noninterest expense | 146 | 142 | |
Income (loss) before income taxes | 93 | 37 | |
Applicable income tax expense (benefit) | 19 | 8 | |
Net Income | 74 | 29 | |
Total goodwill | 226 | 231 | |
Total assets | 11,707 | 13,715 | |
General Corporate and Other | |||
Segment Reporting Information | |||
Net interest income | (818) | 120 | |
Provision for credit losses | 67 | 50 | |
Net Interest Income After Provision for Credit Losses | (885) | 70 | |
Noninterest Income | |||
Commercial banking revenue | 0 | 0 | |
Wealth and asset management revenue | 0 | 0 | |
Service charges on deposits | (1) | (1) | |
Card and processing revenue | 3 | 2 | |
Mortgage banking net revenue | 0 | 0 | |
Leasing business revenue | 0 | 0 | |
Other noninterest income | (18) | 2 | |
Securities gains (losses), net | 11 | (14) | |
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | |
Total noninterest income | (5) | (11) | |
Noninterest Expense | |||
Compensation and benefits | 282 | 251 | |
Technology and communications | 109 | 92 | |
Net occupancy expense | 16 | 16 | |
Equipment expense | 19 | 20 | |
Leasing business expense | 0 | 0 | |
Marketing expense | 12 | 12 | |
Card and processing expense | (1) | (1) | |
Other noninterest expense | (402) | (346) | |
Total noninterest expense | 35 | 44 | |
Income (loss) before income taxes | (925) | 15 | |
Applicable income tax expense (benefit) | (170) | 3 | |
Net Income | (755) | 12 | |
Total goodwill | 0 | 0 | |
Total assets | 28,109 | 31,148 | |
Impairment losses on bank premises | 0 | ||
Bank premises and equipment held for sale | 22 | 25 | |
Eliminations | |||
Segment Reporting Information | |||
Net interest income | 0 | 0 | |
Provision for credit losses | 0 | 0 | |
Net Interest Income After Provision for Credit Losses | 0 | 0 | |
Noninterest Income | |||
Commercial banking revenue | 0 | 0 | |
Wealth and asset management revenue | (46) | (44) | |
Service charges on deposits | 0 | 0 | |
Card and processing revenue | 0 | 0 | |
Mortgage banking net revenue | 0 | 0 | |
Leasing business revenue | 0 | 0 | |
Other noninterest income | 0 | 0 | |
Securities gains (losses), net | 0 | 0 | |
Securities losses, net – non-qualifying hedges on MSRs | 0 | 0 | |
Total noninterest income | (46) | (44) | |
Noninterest Expense | |||
Compensation and benefits | 0 | 0 | |
Technology and communications | 0 | 0 | |
Net occupancy expense | 0 | 0 | |
Equipment expense | 0 | 0 | |
Leasing business expense | 0 | 0 | |
Marketing expense | 0 | 0 | |
Card and processing expense | 0 | 0 | |
Other noninterest expense | (46) | (44) | |
Total noninterest expense | (46) | (44) | |
Income (loss) before income taxes | 0 | 0 | |
Applicable income tax expense (benefit) | 0 | 0 | |
Net Income | 0 | 0 | |
Total goodwill | 0 | 0 | |
Total assets | $ 0 | $ 0 |