Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2024 | |
Entity File Number | 001-33653 | |
Entity Registrant Name | Fifth Third Bancorp | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 31-0854434 | |
Entity Address, Address Line One | 38 Fountain Square Plaza | |
Entity Address, City or Town | Cincinnati | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45263 | |
City Area Code | 800 | |
Local Phone Number | 972-3030 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 676,797,447 | |
Amendment Flag | false | |
Entity Central Index Key | 0000035527 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock, Without Par Value | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, Without Par Value | |
Trading Symbol | FITB | |
Security Exchange Name | NASDAQ | |
Series I Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I | |
Trading Symbol | FITBI | |
Security Exchange Name | NASDAQ | |
Class B Preferred stock, Series A | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.00% Non-Cumulative Perpetual Class B Preferred Stock, Series A | |
Trading Symbol | FITBP | |
Security Exchange Name | NASDAQ | |
Series K Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 4.95% Non-Cumulative Perpetual Preferred Stock, Series K | |
Trading Symbol | FITBO | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets | |||
Cash and due from banks | $ 2,837 | $ 3,142 | |
Other short-term investments | [1] | 21,085 | 22,082 |
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 38,986 | 50,419 | |
Held-to-maturity securities | 11,443 | 2 | |
Trading debt securities | 1,132 | 899 | |
Equity securities | 476 | 613 | |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 537 | 378 | |
Portfolio loans and leases(a) (includes $109 and $116 of residential mortgage loans measured at fair value) | [1] | 116,579 | 117,234 |
Allowance for loan and lease losses | [1] | (2,288) | (2,322) |
Portfolio loans and leases, net | 114,291 | 114,912 | |
Bank premises and equipment (includes $16 and $19 held for sale) | 2,389 | 2,349 | |
Operating lease equipment | 392 | 459 | |
Goodwill | 4,918 | 4,919 | |
Intangible assets | 107 | 125 | |
Servicing rights | 1,731 | 1,737 | |
Other assets | [1] | 12,938 | 12,538 |
Total Assets | 213,262 | 214,574 | |
Deposits: | |||
Noninterest-bearing deposits | 40,617 | 43,146 | |
Interest-bearing deposits | 126,151 | 125,766 | |
Total deposits | 166,768 | 168,912 | |
Federal funds purchased | 194 | 193 | |
Other short-term borrowings | 3,370 | 2,861 | |
Accrued taxes, interest and expenses | 2,040 | 2,195 | |
Other liabilities | [1] | 5,371 | 4,861 |
Long-term debt | [1] | 16,293 | 16,380 |
Total Liabilities | 194,036 | 195,402 | |
Equity | |||
Common stock | [2] | 2,051 | 2,051 |
Preferred stock | [3] | 2,116 | 2,116 |
Capital surplus | 3,764 | 3,757 | |
Retained earnings | 23,542 | 22,997 | |
Accumulated other comprehensive loss | (4,901) | (4,487) | |
Treasury stock | [2] | (7,346) | (7,262) |
Total Equity | 19,226 | 19,172 | |
Total Liabilities and Equity | $ 213,262 | $ 214,574 | |
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. Common shares: Stated value $2.22 per share; authorized 2,000,000,000; outstanding at June 30, 2024 – 680,789,253 (excludes 243,103,328 treasury shares), December 31, 2023 – 681,124,810 (excludes 242,767,771 treasury shares). 500,000 shares of no par value preferred stock were authorized at both June 30, 2024 and December 31, 2023. There were 422,000 unissued shares of undesignated no par value preferred stock at both June 30, 2024 and December 31, 2023. Each issued share of no par value preferred stock has a liquidation preference of $25,000. 500,000 shares of no par value Class B preferred stock were authorized at both June 30, 2024 and December 31, 2023. There were 300,000 unissued shares of undesignated no par value Class B preferred stock at both June 30, 2024 and December 31, 2023. Each issued share of no par value Class B preferred stock has a liquidation preference of $1,000. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Available-for-sale debt and other securities, amortized cost | $ 43,596 | $ 55,789 | |
Debt securities, fair value | 11,187 | 2 | |
Bank premises and equipment held for sale | 16 | 19 | |
Other short-term investments | [1] | 21,085 | 22,082 |
Total portfolio loans and leases | [1] | 116,579 | 117,234 |
Allowance for loan and lease losses | [1] | (2,288) | (2,322) |
Other assets | [1] | 12,938 | 12,538 |
Other liabilities | [1] | 5,371 | 4,861 |
Long-term debt | [1] | $ 16,293 | $ 16,380 |
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) | 680,789,253 | 681,124,810 | |
Treasury stock, common (in shares) | 243,103,328 | 242,767,771 | |
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 | |||
Loans held for sale | $ 512 | $ 334 | |
Loans measured at FV | 109 | 116 | |
Allowance for loan and lease losses | (136) | (145) | |
Variable Interest Entity, Primary Beneficiary | Automobile And Solar Loan | |||
Other short-term investments | 52 | 55 | |
Total portfolio loans and leases | 1,272 | 1,573 | |
Allowance for loan and lease losses | (23) | (28) | |
Other assets | 7 | 10 | |
Other liabilities | 13 | 14 | |
Long-term debt | $ 1,136 | $ 1,409 | |
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest Income | ||||
Interest and fees on loans and leases | $ 1,871 | $ 1,831 | $ 3,731 | $ 3,545 |
Interest on securities | 458 | 437 | 913 | 876 |
Interest on other short-term investments | 291 | 102 | 584 | 162 |
Total interest income | 2,620 | 2,370 | 5,228 | 4,583 |
Interest Expense | ||||
Interest on deposits | 958 | 655 | 1,912 | 1,133 |
Interest on federal funds purchased | 3 | 5 | 6 | 10 |
Interest on other short-term borrowings | 48 | 90 | 95 | 147 |
Interest on long-term debt | 224 | 163 | 444 | 319 |
Total interest expense | 1,233 | 913 | 2,457 | 1,609 |
Net Interest Income | 1,387 | 1,457 | 2,771 | 2,974 |
Provision for credit losses | 97 | 177 | 191 | 341 |
Net Interest Income After Provision for Credit Losses | 1,290 | 1,280 | 2,580 | 2,633 |
Noninterest Income | ||||
Wealth and asset management revenue | 159 | 143 | 320 | 289 |
Service charges on deposits | 156 | 144 | 306 | 281 |
Commercial banking revenue | 144 | 146 | 288 | 307 |
Card and processing revenue | 108 | 106 | 210 | 206 |
Mortgage banking net revenue | 50 | 59 | 104 | 127 |
Leasing business revenue | 38 | 47 | 77 | 104 |
Other noninterest income | 37 | 74 | 88 | 97 |
Securities gains, net | 3 | 7 | 13 | 11 |
Total noninterest income | 695 | 726 | 1,406 | 1,422 |
Noninterest Expense | ||||
Compensation and benefits | 656 | 650 | 1,409 | 1,407 |
Technology and communications | 114 | 114 | 231 | 232 |
Net occupancy expense | 83 | 83 | 170 | 164 |
Equipment expense | 38 | 36 | 76 | 73 |
Marketing expense | 22 | 31 | 48 | 65 |
Leasing business expense | 34 | 31 | 66 | 60 |
Card and processing expense | 21 | 20 | 41 | 42 |
Other noninterest expense | 253 | 266 | 521 | 519 |
Total noninterest expense | 1,221 | 1,231 | 2,562 | 2,562 |
Income Before Income Taxes | 764 | 775 | 1,424 | 1,493 |
Applicable income tax expense | 163 | 174 | 302 | 334 |
Net Income | 601 | 601 | 1,122 | 1,159 |
Dividends on preferred stock | 40 | 39 | 81 | 62 |
Net Income Available to Common Shareholders | $ 561 | $ 562 | $ 1,041 | $ 1,097 |
Shares Disclosures | ||||
Earnings per share - basic (in dollars per share) | $ 0.82 | $ 0.82 | $ 1.52 | $ 1.60 |
Earnings per share - diluted (in dollars per share) | $ 0.81 | $ 0.82 | $ 1.51 | $ 1.59 |
Average common shares outstanding - basic (in shares) | 686,781,201 | 684,028,603 | 686,265,437 | 684,023,063 |
Average common shares outstanding - diluted (in shares) | 691,082,792 | 686,385,938 | 690,858,162 | 687,967,395 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 601 | $ 601 | $ 1,122 | $ 1,159 |
Net unrealized losses on available-for-sale debt securities: | ||||
Unrealized holding losses arising during period | (1) | (633) | (182) | (33) |
Unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities | 0 | 0 | 785 | 0 |
Reclassification adjustment for net losses included in net income | 3 | 0 | 5 | 0 |
Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities: | ||||
Unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities | 0 | 0 | (785) | 0 |
Amortization of unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities | 25 | 0 | 50 | 0 |
Net unrealized losses on cash flow hedge derivatives: | ||||
Unrealized holding losses arising during period | (109) | (352) | (425) | (137) |
Reclassification adjustment for net losses included in net income | 69 | 63 | 138 | 113 |
Defined benefit pension plans, net: | ||||
Reclassification of amounts to net periodic benefit costs | 0 | 1 | 0 | 1 |
Other comprehensive loss, net of tax | (13) | (921) | (414) | (56) |
Comprehensive Income (Loss) | $ 588 | $ (320) | $ 708 | $ 1,103 |
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 H Preferred Stock | Series I Preferred Stock | Series J Preferred Stock | Series K Preferred Stock | Series L Preferred Stock | Class B, Series A Preferred Stock | 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 H Preferred Stock | 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 | Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance | Treasury Stock | Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning 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) | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income | 1,159 | 1,159 | ||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (56) | (56) | ||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||
Common stock | (457) | (457) | ||||||||||||||||||||||||||||
Preferred stock | $ (15) | $ (15) | $ (12) | $ (6) | $ (8) | $ (6) | $ (15) | $ (15) | $ (12) | $ (6) | $ (8) | $ (6) | ||||||||||||||||||
Shares acquired for treasury | (201) | (201) | ||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 62 | 24 | 38 | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2023 | 17,809 | 2,051 | 2,116 | 3,708 | 22,366 | (5,166) | (7,266) | |||||||||||||||||||||||
Beginning 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) | ||||||||||||||
Ending balance at Dec. 31, 2023 | $ 19,172 | (10) | 19,162 | 2,051 | 2,051 | 2,116 | 2,116 | 3,757 | 3,757 | 22,997 | (10) | 22,987 | (4,487) | (4,487) | (7,262) | (7,262) | ||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2023-02 [Member] | |||||||||||||||||||||||||||||
Beginning balance at Mar. 31, 2023 | $ 18,364 | 2,051 | 2,116 | 3,682 | 22,032 | (4,245) | (7,272) | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income | 601 | 601 | ||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (921) | (921) | ||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||
Common stock | (228) | (228) | ||||||||||||||||||||||||||||
Preferred stock | (15) | (8) | (6) | (3) | (4) | (3) | (15) | (8) | (6) | (3) | (4) | (3) | ||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 32 | 26 | 6 | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2023 | 17,809 | 2,051 | 2,116 | 3,708 | 22,366 | (5,166) | (7,266) | |||||||||||||||||||||||
Beginning balance at Dec. 31, 2023 | 19,172 | $ (10) | $ 19,162 | 2,051 | $ 2,051 | 2,116 | $ 2,116 | 3,757 | $ 3,757 | 22,997 | $ (10) | $ 22,987 | (4,487) | $ (4,487) | (7,262) | $ (7,262) | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income | 1,122 | 1,122 | ||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (414) | (414) | ||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||
Common stock | (486) | (486) | ||||||||||||||||||||||||||||
Preferred stock | (27) | (21) | (13) | (6) | (8) | (6) | (27) | (21) | (13) | (6) | (8) | (6) | ||||||||||||||||||
Shares acquired for treasury | (125) | (125) | ||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 48 | 7 | 41 | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2024 | 19,226 | 2,051 | 2,116 | 3,764 | 23,542 | (4,901) | (7,346) | |||||||||||||||||||||||
Beginning balance at Mar. 31, 2024 | 19,018 | 2,051 | 2,116 | 3,742 | 23,224 | (4,888) | (7,227) | |||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Net income | 601 | 601 | ||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | (13) | (13) | ||||||||||||||||||||||||||||
Cash dividends declared: | ||||||||||||||||||||||||||||||
Common stock | (243) | (243) | ||||||||||||||||||||||||||||
Preferred stock | $ (13) | $ (11) | $ (6) | $ (3) | $ (4) | $ (3) | $ (13) | $ (11) | $ (6) | $ (3) | $ (4) | $ (3) | ||||||||||||||||||
Shares acquired for treasury | (125) | (125) | ||||||||||||||||||||||||||||
Impact of stock transactions under stock compensation plans, net | 28 | 22 | 6 | |||||||||||||||||||||||||||
Ending balance at Jun. 30, 2024 | $ 19,226 | $ 2,051 | $ 2,116 | $ 3,764 | $ 23,542 | $ (4,901) | $ (7,346) | |||||||||||||||||||||||
[1] Related to the adoption of ASU 2023-02 as of January 1, 2024. Refer to Note 3 for additional information. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Common stock, per share (in dollars per share) | $ 0.35 | $ 0.33 | $ 0.70 | $ 0.66 |
Stockholders' Equity Attributable to Parent | $ 19,226 | $ 17,809 | $ 19,226 | $ 17,809 |
Common Stock | ||||
Stockholders' Equity Attributable to Parent | 2,051 | 2,051 | 2,051 | 2,051 |
Preferred Stock | ||||
Stockholders' Equity Attributable to Parent | 2,116 | 2,116 | 2,116 | 2,116 |
Capital Surplus | ||||
Stockholders' Equity Attributable to Parent | 3,764 | 3,708 | 3,764 | 3,708 |
Retained Earnings | ||||
Stockholders' Equity Attributable to Parent | 23,542 | 22,366 | 23,542 | 22,366 |
Accumulated Other Comprehensive Loss | ||||
Stockholders' Equity Attributable to Parent | (4,901) | (5,166) | (4,901) | (5,166) |
Treasury Stock | ||||
Stockholders' Equity Attributable to Parent | $ (7,346) | $ (7,266) | $ (7,346) | $ (7,266) |
Series H Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | $ 543.27 | $ 637.50 | $ 1,088.36 | $ 637.50 |
Series I Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 586.04 | 414.06 | 1,173.9 | 828.12 |
Series J Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 549.41 | 523.71 | 1,100.42 | 1,016.46 |
Series K Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 309.38 | 309.38 | 618.75 | 618.75 |
Series L Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | 281.25 | 281.25 | 562.50 | 562.50 |
Class B, Series A Preferred Stock | ||||
Preferred stock, per share (in dollars per share) | $ 15 | $ 15 | $ 30 | $ 30 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Activities | ||
Net Income | $ 1,122 | $ 1,159 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 191 | 341 |
Depreciation, amortization and accretion | 248 | 232 |
Stock-based compensation expense | 100 | 111 |
Benefit from deferred income taxes | (2) | (127) |
Securities gains, net | (15) | (11) |
MSR fair value adjustment | 22 | 40 |
Net gains on sales of loans and fair value adjustments on loans held for sale | (10) | (18) |
Net gains on disposition and impairment of bank premises and equipment and operating lease equipment | (2) | (1) |
Proceeds from sales of loans held for sale | 1,547 | 2,557 |
Loans originated or purchased for sale, net of repayments | (1,749) | (2,289) |
Dividends representing return on equity method investments | 20 | 26 |
Net change in: | ||
Equity and trading debt securities | (104) | (121) |
Other assets | (243) | 82 |
Accrued taxes, interest and expenses and other liabilities | (60) | (180) |
Net Cash Provided by Operating Activities | 1,065 | 1,801 |
Proceeds from sales: | ||
AFS securities and other investments | 289 | 2,469 |
Loans and leases | 186 | 41 |
Bank premises and equipment | 16 | 3 |
MSRs | 5 | 0 |
Proceeds from repayments / maturities of AFS and HTM securities and other investments | 2,609 | 2,084 |
Purchases: | ||
AFS securities, equity method investments and other investments | (3,197) | (3,167) |
Bank premises and equipment | (156) | (248) |
MSRs | 0 | (23) |
Proceeds from settlement of BOLI | 19 | 9 |
Proceeds from sales and dividends representing return of equity method investments | 5 | 60 |
Net cash received for divestitures | 6 | 0 |
Net change in: | ||
Other short-term investments | 997 | (2,592) |
Portfolio loans and leases | 247 | (630) |
Operating lease equipment | 25 | 32 |
Net Cash Provided by (Used in) Investing Activities | 1,051 | (1,962) |
Financing Activities | ||
Net change in deposits | (2,144) | 438 |
Net change in other short-term borrowings and federal funds purchased | 503 | 1,058 |
Dividends paid on common and preferred stock | (567) | (559) |
Proceeds from long-term debt issuances/advances | 2,506 | 35 |
Repayment of long-term debt | (2,542) | (1,433) |
Repurchases of treasury stock and related forward contract | (125) | (200) |
Other | (52) | (50) |
Net Cash Used in Financing Activities | (2,421) | (711) |
Decrease in Cash and Due from Banks | (305) | (872) |
Cash and Due from Banks at Beginning of Period | 3,142 | 3,466 |
Cash and Due from Banks at End of Period | $ 2,837 | $ 2,594 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
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 and changes in equity for the three and six months ended June 30, 2024 and 2023 and the cash flows for the six months ended June 30, 2024 and 2023 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2023 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30: ($ in millions) 2024 2023 Cash Payments: Interest $ 2,492 1,474 Income taxes 79 337 Transfers: Portfolio loans and leases to loans and leases held for sale $ 135 67 Loans and leases held for sale to portfolio loans and leases 2 5 Portfolio loans and leases to OREO 9 5 Bank premises and equipment to OREO 6 14 Available-for-sale debt securities to held-to-maturity securities (a) 11,593 — Supplemental Disclosures: Net additions to lease liabilities under operating leases $ 41 32 Net additions (reductions) to lease liabilities under finance leases 45 (1) (a) Represents the fair value of the securities on the date of transfer. Refer to Note 4 for additional information. |
Accounting and Reporting Develo
Accounting and Reporting Developments | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Accounting and Reporting Developments | Accounting and Reporting Developments Standards Adopted in 2024 The Bancorp adopted the following new accounting standards during the six months ended June 30, 2024: 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 Bancorp adopted the amended guidance on January 1, 2024 on a prospective basis. The adoption did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. 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 Bancorp adopted the amended guidance on January 1, 2024 on a modified retrospective basis, except for certain provisions which the Bancorp adopted on a prospective basis, as permitted. Upon adoption, the Bancorp recorded a cumulative-effect adjustment to decrease retained earnings by $10 million, net of tax. ASU 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, which amends the disclosure requirements for reportable segments. The amendments include new requirements to disclose certain significant segment expenses and other items, the title and position of the chief operating decision maker and information about how the reported measures of segment profit or loss are used in assessing segment performance. The amendments also make certain annual disclosure requirements applicable to interim periods and permit the reporting of multiple measures of segment profit or loss if appropriate. The amended guidance is effective for the Bancorp for the year ending December 31, 2024 and subsequent interim reporting periods beginning in 2025, with early adoption permitted. Consistent with this implementation guidance, the Bancorp will provide the amended disclosures within its Annual Report on Form 10-K for the year ended December 31, 2024 and the amendments will be applied retrospectively to all prior periods presented. Significant Accounting Standard Issued but Not Yet Adopted The following significant accounting standard was issued but not yet adopted by the Bancorp as of June 30, 2024: ASU 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, which amends the disclosure requirements for income taxes. The amendments primarily include new requirements to disclose additional information as part of the reconciliation of the effective tax rate to statutory tax rates, provide the amount of income taxes paid, net of refunds received, and income tax expense disaggregated between federal, state and foreign jurisdictions and provide income before income taxes disaggregated between domestic and foreign jurisdictions. The amendments also discontinue certain other disclosure requirements. The amended guidance is effective for the Bancorp on January 1, 2025, with early adoption permitted, and is to be applied prospectively, with retrospective application permitted. The Bancorp is in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 3,504 2 — 3,506 Obligations of states and political subdivisions securities 2 — — 2 Mortgage-backed securities: Agency residential mortgage-backed securities 5,556 — (799) 4,757 Agency commercial mortgage-backed securities 24,315 — (3,160) 21,155 Non-agency commercial mortgage-backed securities 4,816 — (413) 4,403 Asset-backed securities and other debt securities 4,609 5 (245) 4,369 Other securities (a) 794 — — 794 Total available-for-sale debt and other securities $ 43,596 7 (4,617) 38,986 Held-to-maturity securities: (b) U.S. Treasury and federal agencies securities $ 2,338 — (39) 2,299 Mortgage-backed securities: Agency residential mortgage-backed securities 5,092 — (160) 4,932 Agency commercial mortgage-backed securities 4,011 4 (61) 3,954 Asset-backed securities and other debt securities 2 — — 2 Total held-to-maturity securities $ 11,443 4 (260) 11,187 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdi ngs of $293, $499 and $2, respectively, at June 30, 2024, that are carried at cost. (b) The amortized cost basis of held-to-maturity securities includes a discount of $930 at June 30, 2024 pertaining to the unamortized portion of unrealized losses on securities. December 31, 2023 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 4,477 1 (142) 4,336 Obligations of states and political subdivisions securities 2 — — 2 Mortgage-backed securities: Agency residential mortgage-backed securities 11,564 — (1,282) 10,282 Agency commercial mortgage-backed securities 28,945 5 (3,230) 25,720 Non-agency commercial mortgage-backed securities 4,872 — (427) 4,445 Asset-backed securities and other debt securities 5,207 3 (298) 4,912 Other securities (a) 722 — — 722 Total available-for-sale debt and other securities $ 55,789 9 (5,379) 50,419 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 holdings of $224, $496 and $2, respectively, at December 31, 2023, that are carried at cost. The following table provides the fair value of trading debt securities and equity securities as of: ($ in millions) June 30, December 31, Trading debt securities $ 1,132 899 Equity securities 476 613 The amounts reported in the preceding tables exclude accrued interest receivable on investment securities of $158 million and $146 million at June 30, 2024 and December 31, 2023, respectively, which is presented as a component of other assets in the Condensed Consolidated Balance Sheets. In January 2024, the Bancorp transferred $12.6 billion (amortized cost basis) of securities from available-for-sale to held-to-maturity to reflect the Bancorp’s change in intent to hold these securities to maturity in order to reduce potential capital volatility associated with investment security market price fluctuations. AOCI included pretax unrealized losses of $994 million on these securities at the date of transfer. The unrealized losses that existed on the date of transfer will continue to be reported as a component of AOCI and will be amortized into income over the remaining life of the securities as an adjustment to yield, offsetting the amortization of the discount resulting from the transfer recorded at fair value. The amortized cost basis of held-to-maturity securities included a discount of $930 million at June 30, 2024 pertaining to the unamortized portion of unrealized losses on securities, which are offset in AOCI. The Bancorp uses investment securities as a means of managing interest rate risk, providing collateral for pledging purposes and for liquidity risk management. The following table presents the components of net securities gains and losses recognized in the Condensed Consolidated Statements of Income, including those recognized related to the Bancorp’s non-qualifying hedging strategy for MSRs: For the three months ended June 30, For the six months ended ($ in millions) 2024 2023 2024 2023 Available-for-sale debt and other securities: Realized gains $ 1 4 3 34 Realized losses — — — (30) Impairment losses (5) (4) (10) (4) Net losses on available-for-sale debt and other securities $ (4) — (7) — Trading debt securities: Net realized losses — — — — Net unrealized gains — 2 — 2 Net trading debt securities gains $ — 2 — 2 Equity securities: Net realized gains 11 1 11 2 Net unrealized gains (losses) (4) 4 9 7 Net equity securities gains $ 7 5 20 9 Total gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities (a) $ 3 7 13 11 (a) Excludes an immaterial amount and $2 of net securities gains for the three and six months ended June 30, 2024, respectively, and $1 of net securities losses and an immaterial amount of net securities gains for the three and six months ended June 30, 2023, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These gains and losses are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. The Bancorp recognized impairment losses on available-for-sale debt and other securities of $5 million and $10 million during the three and six months ended June 30, 2024, respectively. The Bancorp recognized impairment losses on its available-for-sale debt and other securities of $4 million for both the three and six months ended June 30, 2023. These losses were included in securities gains, net, in the Condensed Consolidated Statements of Income. These losses related to certain securities in unrealized loss positions where the Bancorp had determined that it no longer intended to hold the securities until the recovery of their amortized cost bases. At both June 30, 2024 and December 31, 2023, the Bancorp did not recognize an allowance for credit losses for its investment securities. The Bancorp also did not recognize provision for credit losses for investment securities during both the three and six months ended June 30, 2024 and 2023. At June 30, 2024 and December 31, 2023, investment securities with a fair value of $31.3 billion a nd $25.2 billion, respectively, were pledged to secure borrowing capacity, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law. The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity securities as of June 30, 2024 are shown in the following table: ($ 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 $ 904 875 38 38 Due after 1 year through 5 years 18,452 17,404 2,930 2,882 Due after 5 years through 10 years 15,740 13,343 7,995 7,787 Due after 10 years 7,706 6,570 480 480 Other securities 794 794 — — Total $ 43,596 38,986 11,443 11,187 (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 June 30, 2024 U.S. Treasury and federal agencies securities $ 730 — — — 730 — Agency residential mortgage-backed securities — — 4,756 (799) 4,756 (799) Agency commercial mortgage-backed securities 3,709 (448) 17,320 (2,712) 21,029 (3,160) Non-agency commercial mortgage-backed securities 35 (1) 4,368 (412) 4,403 (413) Asset-backed securities and other debt securities 101 (1) 3,822 (244) 3,923 (245) Total $ 4,575 (450) 30,266 (4,167) 34,841 (4,617) December 31, 2023 U.S. Treasury and federal agencies securities $ 1,989 (3) 2,157 (139) 4,146 (142) Agency residential mortgage-backed securities 81 (2) 10,200 (1,280) 10,281 (1,282) Agency commercial mortgage-backed securities 5,439 (556) 19,957 (2,674) 25,396 (3,230) Non-agency commercial mortgage-backed securities 141 (2) 4,284 (425) 4,425 (427) Asset-backed securities and other debt securities 340 (17) 4,184 (281) 4,524 (298) Total $ 7,990 (580) 40,782 (4,799) 48,772 (5,379) At June 30, 2024 and December 31, 2023, $37 million and $45 million, respectively, of unrealized losses in the available-for-sale debt and other securities portfolio were related to non-rated securities. |
Loans and Leases
Loans and Leases | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Loans and Leases | Loans and Leases The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. The Bancorp’s commercial loan and lease portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses that are expected to be incurred over the remaining contractual terms of the related loans and leases. For further information on credit quality and the ALLL, refer to Note 6. The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of: ($ in millions) June 30, December 31, Loans and leases held for sale: Commercial and industrial loans $ 22 41 Commercial leases 3 3 Residential mortgage loans 512 334 Total loans and leases held for sale $ 537 378 Portfolio loans and leases: Commercial and industrial loans $ 51,840 53,270 Commercial mortgage loans 11,429 11,276 Commercial construction loans 5,806 5,621 Commercial leases 2,708 2,579 Total commercial loans and leases $ 71,783 72,746 Residential mortgage loans $ 17,040 17,026 Home equity 3,969 3,916 Indirect secured consumer loans 15,442 14,965 Credit card 1,733 1,865 Solar energy installation loans 3,951 3,728 Other consumer loans 2,661 2,988 Total consumer loans $ 44,796 44,488 Total portfolio loans and leases $ 116,579 117,234 Portfolio loans and leases are recorded net of unearned income, which totaled $289 million and $272 million as of June 30, 2024 and December 31, 2023, respectively. The amortized cost basis of loans and leases excludes accrued interest receivable of $605 million and $593 million at June 30, 2024 and December 31, 2023, respectively, which is presented as a component of other assets in the Condensed Consolidated Balance Sheets. Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred direct loan origination fees and costs and valuation adjustments associated with loans measured at fair value. These items totaled a net discount of $360 million as of June 30, 2024 and $395 million as of December 31, 2023, of which $881 million and $865 million of net discount was related to solar energy installation loans, respectively. The Bancorp’s FHLB and FRB borrowings are primarily secured by loans. The Bancorp had loans of $14.6 billion and $14.5 billion as of June 30, 2024 and December 31, 2023, respectively, pledged to the FHLB, and loans of $52.9 billion and $49.3 billion at June 30, 2024 and December 31, 2023, respectively, pledged to the FRB. The following table presents a summary of the total loans and leases owned by the Bancorp as of: Carrying Value 90 Days Past Due and Still Accruing (a) ($ in millions) June 30, December 31, June 30, December 31, Commercial and industrial loans $ 51,862 53,311 3 8 Commercial mortgage loans 11,429 11,276 1 — Commercial construction loans 5,806 5,621 — — Commercial leases 2,711 2,582 4 — Residential mortgage loans 17,552 17,360 8 7 Home equity 3,969 3,916 — — Indirect secured consumer loans 15,442 14,965 — — Credit card 1,733 1,865 17 21 Solar energy installation loans 3,951 3,728 — — Other consumer loans 2,661 2,988 — — Total loans and leases $ 117,116 117,612 33 36 Less: Loans and leases held for sale 537 378 Total portfolio loans and leases $ 116,579 117,234 (a) Excludes government guaranteed residential mortgage loans. The following table presents a summary of net charge-offs: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Commercial and industrial loans $ 80 32 115 62 Commercial construction loans — — — 1 Residential mortgage loans — — (1) — Home equity (1) 1 — — Indirect secured consumer loans 17 16 42 29 Credit card 17 16 36 31 Solar energy installation loans 12 7 24 9 Other consumer loans 19 18 38 36 Total net charge-offs $ 144 90 254 168 The following table presents the components of the net investment in portfolio leases as of: ($ in millions) (a) June 30, December 31, Net investment in direct financing leases: Lease payment receivable (present value) $ 602 556 Unguaranteed residual assets (present value) 120 105 Net investment in sales-type leases: Lease payment receivable (present value) 1,658 1,585 Unguaranteed residual assets (present value) 82 84 (a) Excludes $246 and 249 of leveraged leases at June 30, 2024 and December 31, 2023, respectively. Interest income recognized in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 was $9 million and $19 million, respectively, for direct financing leases and $19 million and $37 million, respectively, for sales-type leases. For the three and six months ended June 30, 2023, interest income recognized was $7 million and $13 million, respectively, for direct financing leases and $16 million and $31 million, respectively, for sales-type leases. The following table presents undiscounted cash flows for both direct financing and sales-type portfolio leases for the remainder of 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows: As of June 30, 2024 ($ in millions) Direct Financing Sales-Type Leases Remainder of 2024 $ 93 259 2025 177 532 2026 147 366 2027 111 294 2028 59 194 2029 35 78 Thereafter 41 70 Total undiscounted cash flows $ 663 1,793 Less: Difference between undiscounted cash flows and discounted cash flows 61 135 Present value of lease payments (recognized as lease receivables) $ 602 1,658 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 $14 million and $13 million at June 30, 2024 and December 31, 2023, respectively, to cover the losses that are expected to be incurred over the remaining contractual terms of the related leases, including the potential losses related to the lease residual value. Refer to Note 6 for additional information on credit quality and the ALLL. |
Credit Quality and the Allowanc
Credit Quality and the Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Credit Quality and the Allowance for Loan and Lease Losses | Credit Quality and the Allowance for Loan and Lease Losses The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class. Allowance for Loan and Lease Losses The following tables summarize transactions in the ALLL by portfolio segment: For the three months ended June 30, 2024 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,141 140 1,037 2,318 Losses charged off (a) (83) (1) (98) (182) Recoveries of losses previously charged off (a) 3 1 34 38 Provision for (benefit from) loan and lease losses 52 (4) 66 114 Balance, end of period $ 1,113 136 1,039 2,288 (a) The Bancorp recorded $7 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the three months ended June 30, 2023 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,143 185 887 2,215 Losses charged off (a) (35) (1) (85) (121) Recoveries of losses previously charged off (a) 3 1 27 31 Provision for (benefit from) loan and lease losses 88 (12) 126 202 Balance, end of period $ 1,199 173 955 2,327 (a) The Bancorp recorded $8 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the six months ended June 30, 2024 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,130 145 1,047 2,322 Losses charged off (a) (123) (1) (204) (328) Recoveries of losses previously charged off (a) 8 2 64 74 Provision for (benefit from) loan and lease losses 98 (10) 132 220 Balance, end of period $ 1,113 136 1,039 2,288 (a) The Bancorp record ed $15 i n both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the six months ended June 30, 2023 ($ in millions) Commercial Residential Mortgage 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) (69) (2) (160) (231) Recoveries of losses previously charged off (a) 6 2 55 63 Provision for (benefit from) loan and lease losses 131 (36) 255 350 Balance, end of period $ 1,199 173 955 2,327 (a) The Bancorp recorded $17 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: As of June 30, 2024 ($ in millions) Commercial Residential Consumer Total ALLL: (a) Individually evaluated $ 88 — 5 93 Collectively evaluated 1,025 136 1,034 2,195 Total ALLL $ 1,113 136 1,039 2,288 Portfolio loans and leases: (b) Individually evaluated $ 215 129 72 416 Collectively evaluated 71,568 16,802 27,684 116,054 Total portfolio loans and leases $ 71,783 16,931 27,756 116,470 (a) Includes $2 related to commercial leveraged leases at June 30, 2024. (b) Excludes $109 of residential mortgage loans measured at fair value and includes $246 of commercial leveraged leases, net of unearned income, at June 30, 2024. As of December 31, 2023 ($ in millions) Commercial Residential Consumer Total ALLL: (a) Individually evaluated $ 90 — 6 96 Collectively evaluated 1,040 145 1,041 2,226 Total ALLL $ 1,130 145 1,047 2,322 Portfolio loans and leases: (b) Individually evaluated $ 281 126 69 476 Collectively evaluated 72,465 16,784 27,393 116,642 Total portfolio loans and leases $ 72,746 16,910 27,462 117,118 (a) Includes $2 related to commercial leveraged leases at December 31, 2023. (b) Excludes $116 of residential mortgage loans measured at fair value and includes $249 of commercial leveraged leases, net of unearned income, at December 31, 2023. 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 ratings: 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 with this rating 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 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, 2023. The following tables present the amortized cost basis of the Bancorp’s commercial portfolio segment, by class and vintage, disaggregated by credit risk rating: As of June 30, 2024 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans 2024 2023 2022 2021 2020 Prior Total Commercial and industrial loans: Pass $ 1,357 1,763 2,761 1,552 532 479 39,476 47,920 Special mention 32 62 117 20 3 77 1,334 1,645 Substandard 35 65 110 80 39 99 1,827 2,255 Doubtful — — — — — — 20 20 Total commercial and industrial loans $ 1,424 1,890 2,988 1,652 574 655 42,657 51,840 Commercial mortgage owner-occupied loans: Pass $ 324 873 963 659 355 390 1,461 5,025 Special mention 32 26 5 17 — 19 6 105 Substandard 48 19 27 38 8 47 99 286 Doubtful — — — — — — — — Total commercial mortgage owner-occupied loans $ 404 918 995 714 363 456 1,566 5,416 Commercial mortgage nonowner-occupied loans: Pass $ 300 855 743 226 308 493 2,581 5,506 Special mention 9 3 154 — 1 1 63 231 Substandard 19 53 4 — — 2 198 276 Doubtful — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 328 911 901 226 309 496 2,842 6,013 Commercial construction loans: Pass $ 21 134 101 38 41 32 4,678 5,045 Special mention — — — — — — 447 447 Substandard 5 52 — — — 2 255 314 Doubtful — — — — — — — — Total commercial construction loans $ 26 186 101 38 41 34 5,380 5,806 Commercial leases: Pass $ 731 391 340 388 165 607 — 2,622 Special mention 2 — 2 3 2 9 — 18 Substandard — 19 13 1 4 31 — 68 Doubtful — — — — — — — — Total commercial leases $ 733 410 355 392 171 647 — 2,708 Total commercial loans and leases: Pass $ 2,733 4,016 4,908 2,863 1,401 2,001 48,196 66,118 Special mention 75 91 278 40 6 106 1,850 2,446 Substandard 107 208 154 119 51 181 2,379 3,199 Doubtful — — — — — — 20 20 Total commercial loans and leases $ 2,915 4,315 5,340 3,022 1,458 2,288 52,445 71,783 As of December 31, 2023 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans 2023 2022 2021 2020 2019 Prior Total Commercial and industrial loans: Pass $ 2,124 3,434 1,814 580 263 321 40,889 49,425 Special mention 16 100 60 33 6 105 1,756 2,076 Substandard 105 103 28 18 39 73 1,397 1,763 Doubtful — — — — — — 6 6 Total commercial and industrial loans $ 2,245 3,637 1,902 631 308 499 44,048 53,270 Commercial mortgage owner-occupied loans: Pass $ 870 1,078 746 408 219 260 1,279 4,860 Special mention 30 23 18 — 6 — 20 97 Substandard 31 22 11 10 45 10 114 243 Doubtful — — — — — — — — Total commercial mortgage owner-occupied loans $ 931 1,123 775 418 270 270 1,413 5,200 Commercial mortgage nonowner-occupied loans: Pass $ 886 825 261 348 293 243 2,724 5,580 Special mention 111 166 — 2 — 2 81 362 Substandard 81 1 8 — — 2 42 134 Doubtful — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 1,078 992 269 350 293 247 2,847 6,076 Commercial construction loans: Pass $ 171 36 45 41 70 6 4,818 5,187 Special mention — — — — — — 199 199 Substandard 61 — 33 — — — 141 235 Doubtful — — — — — — — — Total commercial construction loans $ 232 36 78 41 70 6 5,158 5,621 Commercial leases: Pass $ 598 386 462 202 145 664 — 2,457 Special mention 1 9 12 3 8 14 — 47 Substandard 20 14 1 5 5 30 — 75 Doubtful — — — — — — — — Total commercial leases $ 619 409 475 210 158 708 — 2,579 Total commercial loans and leases: Pass $ 4,649 5,759 3,328 1,579 990 1,494 49,710 67,509 Special mention 158 298 90 38 20 121 2,056 2,781 Substandard 298 140 81 33 89 115 1,694 2,450 Doubtful — — — — — — 6 6 Total commercial loans and leases $ 5,105 6,197 3,499 1,650 1,099 1,730 53,466 72,746 The following tables summarize the Bancorp’s gross charge-offs within the commercial portfolio segment, by class and vintage: For the six months ended June 30, 2024 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans 2024 2023 2022 2021 2020 Prior Total Commercial loans and leases: Commercial and industrial loans $ — 2 3 1 1 — 116 123 Commercial mortgage owner-occupied loans — — — — — — — — Commercial construction loans — — — — — — — — Total commercial loans and leases $ — 2 3 1 1 — 116 123 For the six months ended June 30, 2023 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans 2023 2022 2021 2020 2019 Prior Total Commercial loans and leases: Commercial and industrial loans $ — 5 11 1 — 5 45 67 Commercial mortgage owner-occupied loans — — — — — — 1 1 Commercial construction loans — — — — — — 1 1 Total commercial loans and leases $ — 5 11 1 — 5 47 69 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 June 30, 2024 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 51,724 28 88 116 51,840 3 Commercial mortgage owner-occupied loans 5,411 3 2 5 5,416 1 Commercial mortgage nonowner-occupied loans 6,010 3 — 3 6,013 — Commercial construction loans 5,781 25 — 25 5,806 — Commercial leases 2,686 18 4 22 2,708 4 Total portfolio commercial loans and leases $ 71,612 77 94 171 71,783 8 (a) Includes accrual and nonaccrual loans and leases. Current Loans and Leases (a) Past Due Total Loans 90 Days Past As of December 31, 2023 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 53,107 61 102 163 53,270 8 Commercial mortgage owner-occupied loans 5,196 1 3 4 5,200 — Commercial mortgage nonowner-occupied loans 6,061 14 1 15 6,076 — Commercial construction loans 5,621 — — — 5,621 — Commercial leases 2,562 17 — 17 2,579 — Total portfolio commercial loans and leases $ 72,547 93 106 199 72,746 8 (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, solar energy installation loans 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 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, 2023 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 June 30, 2024 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2024 2023 2022 2021 2020 Prior Total Residential mortgage loans: Performing: Current (a) $ 788 1,025 3,048 4,775 2,585 4,550 — — 16,771 30-89 days past due — 1 4 5 2 13 — — 25 90 days or more past due — 1 1 2 — 4 — — 8 Nonperforming — — 7 9 7 104 — — 127 Total residential mortgage loans (b) $ 788 1,027 3,060 4,791 2,594 4,671 — — 16,931 Home equity: Performing: Current $ 63 76 38 2 5 96 3,545 57 3,882 30-89 days past due — — — — — 1 21 4 26 90 days or more past due — — — — — — — — — Nonperforming — — — — — 7 52 2 61 Total home equity $ 63 76 38 2 5 104 3,618 63 3,969 Indirect secured consumer loans: Performing: Current $ 3,431 3,415 3,668 3,104 1,104 556 — — 15,278 30-89 days past due 7 24 40 31 14 12 — — 128 90 days or more past due — — — — — — — — — Nonperforming 1 5 13 8 4 5 — — 36 Total indirect secured consumer loans $ 3,439 3,444 3,721 3,143 1,122 573 — — 15,442 Credit card: Performing: Current $ — — — — — — 1,666 — 1,666 30-89 days past due — — — — — — 19 — 19 90 days or more past due — — — — — — 17 — 17 Nonperforming — — — — — — 31 — 31 Total credit card $ — — — — — — 1,733 — 1,733 Solar energy installation loans: Performing: Current $ 469 2,226 1,140 2 — 35 — — 3,872 30-89 days past due 1 6 6 — — — — — 13 90 days or more past due — — — — — — — — — Nonperforming — 35 30 — — 1 — — 66 Total solar energy installation loans $ 470 2,267 1,176 2 — 36 — — 3,951 Other consumer loans: Performing: Current $ 115 435 604 271 206 181 772 45 2,629 30-89 days past due — 4 9 3 2 2 2 1 23 90 days or more past due — — — — — — — — — Nonperforming — 2 4 1 — 1 — 1 9 Total other consumer loans $ 115 441 617 275 208 184 774 47 2,661 Total residential mortgage and consumer loans: Performing: Current $ 4,866 7,177 8,498 8,154 3,900 5,418 5,983 102 44,098 30-89 days past due 8 35 59 39 18 28 42 5 234 90 days or more past due — 1 1 2 — 4 17 — 25 Nonperforming 1 42 54 18 11 118 83 3 330 Total residential mortgage and consumer loans (b) $ 4,875 7,255 8,612 8,213 3,929 5,568 6,125 110 44,687 (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 June 30, 2024, $77 of these loans were 30-89 days past due and $126 were 90 days or more past due. The Bancorp recognized an immaterial amount and $1 of losses during the three and six months ended June 30, 2024, respectively, due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $109 of residential mortgage loans measured at fair value at June 30, 2024, including $1 of 30-89 days past due loans and $2 of nonperforming loans. As of December 31, 2023 ($ 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) $ 995 3,139 5,001 2,703 943 3,971 — — 16,752 30-89 days past due — 3 6 5 1 14 — — 29 90 days or more past due — 1 1 1 1 3 — — 7 Nonperforming — 6 6 5 4 101 — — 122 Total residential mortgage loans (b) $ 995 3,149 5,014 2,714 949 4,089 — — 16,910 Home equity: Performing: Current $ 84 41 2 6 11 92 3,549 46 3,831 30-89 days past due — — — — — 2 25 1 28 90 days or more past due — — — — — — — — — Nonperforming — — — — — 6 50 1 57 Total home equity $ 84 41 2 6 11 100 3,624 48 3,916 Indirect secured consumer loans: Performing: Current $ 4,126 4,333 3,925 1,527 597 271 — — 14,779 30-89 days past due 22 49 40 19 12 8 — — 150 90 days or more past due — — — — — — — — — Nonperforming 4 11 9 6 3 3 — — 36 Total indirect secured consumer loans $ 4,152 4,393 3,974 1,552 612 282 — — 14,965 Credit card: Performing: Current $ — — — — — — 1,789 — 1,789 30-89 days past due — — — — — — 21 — 21 90 days or more past due — — — — — — 21 — 21 Nonperforming — — — — — — 34 — 34 Total credit card $ — — — — — — 1,865 — 1,865 Solar energy installation loans: Performing: Current $ 2,415 1,192 2 — — 41 — — 3,650 30-89 days past due 12 6 — — — — — — 18 90 days or more past due — — — — — — — — — Nonperforming 29 30 — — — 1 — — 60 Total solar energy installation loans $ 2,456 1,228 2 — — 42 — — 3,728 Other consumer loans: Performing: Current $ 511 703 328 246 101 154 859 41 2,943 30-89 days past due 5 15 4 2 2 2 2 1 33 90 days or more past due — — — — — — — — — Nonperforming 2 6 1 1 1 — — 1 12 Total other consumer loans $ 518 724 333 249 104 156 861 43 2,988 Total residential mortgage and consumer loans: Performing: Current $ 8,131 9,408 9,258 4,482 1,652 4,529 6,197 87 43,744 30-89 days past due 39 73 50 26 15 26 48 2 279 90 days or more past due — 1 1 1 1 3 21 — 28 Nonperforming 35 53 16 12 8 111 84 2 321 Total residential mortgage and consumer loans (b) $ 8,205 9,535 9,325 4,521 1,676 4,669 6,350 91 44,372 (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, 2023, $79 of these loans were 30-89 days past due and $141 were 90 days or more past due. The Bancorp recognized $1 of losses during both the three and six months ended June 30, 2023, due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $116 of residential mortgage loans measured at fair value at December 31, 2023, including $1 of 30-89 days past due loans and $2 of nonperforming loans. The following tables summarize the Bancorp’s gross charge-offs within the residential mortgage and consumer portfolio segments, by class and vintage: For the six months ended June 30, 2024 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2024 2023 2022 2021 2020 Prior Total Residential mortgage loans $ — — — — — 1 — — 1 Consumer loans: Home equity — — — — — — 3 — 3 Indirect secured consumer loans — 16 26 13 5 6 — — 66 Credit card — — — — — — 46 — 46 Solar energy installation loans — 8 6 — 5 9 — — 28 Other consumer loans — 5 13 6 10 9 16 2 61 Total residential mortgage and consumer loans $ — 29 45 19 20 25 65 2 205 For the six months ended June 30, 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 $ — — — — — 2 — — 2 Consumer loans: Home equity — — — — — 1 3 — 4 Indirect secured consumer loans 1 18 12 7 5 5 — — 48 Credit card — — — — — — 40 — 40 Solar energy installation loans — 7 1 — — 1 — — 9 Other consumer loans — 18 9 6 4 5 16 1 59 Total residential mortgage and consumer loans $ 1 43 22 13 9 14 59 1 162 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) June 30, December 31, Commercial loans and leases: Commercial and industrial loans $ 187 268 Commercial mortgage owner-occupied loans 25 8 Commercial mortgage nonowner-occupied loans 2 2 Commercial construction loans 1 1 Total commercial loans and leases $ 215 279 Residential mortgage loans 129 126 Consumer loans: Home equity 55 54 Indirect secured consumer loans 17 15 Total consumer loans $ 72 69 Total portfolio loans and leases $ 416 474 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: June 30, 2024 December 31, 2023 ($ in millions) With an ALLL No Related Total With an ALLL No Related Total Commercial loans and leases: Commercial and industrial loans $ 198 36 234 273 31 304 Commercial mortgage owner-occupied loans 13 22 35 11 6 17 Commercial mortgage nonowner-occupied loans 1 2 3 — 3 3 Commercial construction loans — 1 1 — 1 1 Commercial leases 1 — 1 — 1 1 Total nonaccrual portfolio commercial loans and leases $ 213 61 274 284 42 326 Residential mortgage loans 37 92 129 26 98 124 Consumer loans: Home equity 20 41 61 21 36 57 Indirect secured consumer loans 30 6 36 32 4 36 Credit card 31 — 31 34 — 34 Solar energy installation loans 66 — 66 60 — 60 Other consumer loans 9 — 9 12 — 12 Total nonaccrual portfolio consumer loans $ 156 47 203 159 40 199 Total nonaccrual portfolio loans and leases (a)(b) $ 406 200 606 469 180 649 OREO and other repossessed property — 37 37 — 39 39 Total nonperforming portfolio assets (a)(b) $ 406 237 643 469 219 688 (a) Excludes $4 and $1 of nonaccrual loans held for sale as of June 30, 2024 and December 31, 2023, respectively. (b) Includes $24 and $19 of nonaccrual government-insured commercial loans whose repayments are insured by the SBA as of June 30, 2024 and December 31, 2023, respectively. The Bancorp recognized an immaterial amount of interest income on nonaccrual loans and leases for both the three and six months ended June 30, 2024 and 2023. 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 $93 million and $107 million as of June 30, 2024 and December 31, 2023, respectively. Modifications to Borrowers Experiencing Financial Difficulty 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. Portfolio loans with an amortized cost basis of $183 million and $331 million as of June 30, 2024 and 2023, respectively, were modified during the three months ended June 30, 2024 and 2023, respectively, and $300 million and $444 million were modified during the six months ended June 30, 2024 and 2023, respectively, for borrowers experiencing financial difficulty, as further discussed in the following sections. These modifications for the three months ended June 30, 2024 and 2023 represented 0.16% and 0.27%, respectively, of total portfolio loans and leases as of June 30, 2024 and 2023, respectively, and 0.26% and 0.36% for the six months ended June 30, 2024 and 2023, respectively. These amounts excluded $21 million and $9 million for the three months ended June 30, 2024 and 2023, respectively, and $30 million and $20 million for the six months ended June 30, 2024 and 2023, respectively, of consumer and residential mortgage loans 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 June 30, 2024 and December 31, 2023, the Bancorp had commitments of $88 million and $130 million, respectively, to lend additional funds to borrowers experiencing financial difficulty whose terms have been modified during the twelve months ended June 30, 2024 and December 31, 2023, respectively. Commercial portfolio segment Commercial loan modifications are individually negotiated and may vary depending on the borrower’s financial situation, but the Bancorp most commonly utilizes term extensions for periods of three The following tables present the amortized cost basis as of June 30, 2024 and 2023, respectively, of the Bancorp’s commercial portfolio loans that were modified for borrowers experiencing financial difficulty, by portfolio class and type of modification: For the three months ended June 30, 2024 ($ in millions) Term Extension Term Extension and Payment Delay Payment Delay Other Total % of Total Class Commercial and industrial loans $ 95 18 3 — 116 0.22 % Commercial mortgage owner-occupied loans 23 — 1 — 24 0.44 Commercial mortgage nonowner-occupied loans — — — — — — Commercial construction loans 4 — — — 4 0.07 Total commercial portfolio loans $ 122 18 4 — 144 0.20 % For the three months ended June 30, 2023 ($ in millions) Term Extension Term Extension and Payment Delay Payment Delay Other Total % of Total Class Commercial and industrial loans $ 163 — 7 — 170 0.30 % Commercial mortgage owner-occupied loans 40 — — — 40 0.74 Commercial mortgage nonowner-occupied loans 2 — — — 2 0.03 Commercial construction loans 70 — — — 70 1.28 Total commercial portfolio loans $ 275 — 7 — 282 0.37 % For the six months ended June 30, 2024 ($ in millions) Term Extension Term Extension and Payment Delay Payment Delay Other Total % of Total Class Commercial and industrial loans $ 149 18 16 — 183 0.35 % Commercial mortgage owner-occupied loans 33 — 1 — 34 0.63 Commercial mortgage nonowner-occupied loans 5 — — — 5 0.08 Commercial construction loans 4 — — — 4 0.07 Total commercial portfolio loans $ 191 18 17 — 226 0.31 % For the six months ended June 30, 2023 ($ in millions) Term Extension Term Extension and Payment Delay Payment Delay Other Total % of Total Class Commercial and industrial loans $ 183 — 7 1 191 0.34 % Commercial mortgage owner-occupied loans 40 — — — 40 0.74 Commercial mortgage nonowner-occupied loans 24 — — 2 26 0.44 Commercial construction loans 101 — — — 101 1.84 Total commercial portfolio loans $ 348 — 7 3 358 0.47 % 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 may be required to complete a trial period of three repayment for delinquent amounts due until maturity or capitalization of delinquent amounts due into the principal balance of the loan. The number of monthly payments delaye |
Bank Premises and Equipment
Bank Premises and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
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) June 30, December 31, Equipment $ 2,672 2,578 Buildings (a) 1,757 1,742 Leasehold improvements 697 685 Land and improvements (a) 621 618 Construction in progress (a) 176 180 Bank premises and equipment held for sale: Land and improvements 12 15 Buildings 4 4 Accumulated depreciation and amortization (3,550) (3,473) Total bank premises and equipment $ 2,389 2,349 (a) Buildings, land and improvements and construction in progress included $9 associated with parcels of undeveloped land intended for future branch expansion at December 31, 2023. 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 24 banking centers throughout its footprint during the six months ended June 30, 2024. 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 immaterial for both the three months ended June 30, 2024 and 2023, and immaterial and $1 million for the six months ended June 30, 2024 and 2023, respectively. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income. |
Operating Lease Equipment
Operating Lease Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Operating Lease Equipment | Operating Lease Equipment Operating lease equipment was $392 million and $459 million at June 30, 2024 and December 31, 2023, respectively, net of accumulated depreciation of $352 million and $355 million at June 30, 2024 and December 31, 2023, respectively. The Bancorp recorded lease income of $26 million and $35 million relating to lease payments for operating leases in leasing business The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. As a result of these recoverability assessments, the Bancorp recognized an immaterial amount of impairment losses during the three and six months ended June 30, 2024 and 2023 associated with operating lease assets. The recognized impairment losses were recorded in leasing business revenue in the Condensed Consolidated Statements of Income . The following table presents future lease payments receivable from operating leases for the remainder of 2024 through 2029 and thereafter: As of June 30, 2024 ($ in millions) Undiscounted Remainder of 2024 $ 50 2025 77 2026 51 2027 26 2028 11 2029 6 Thereafter 9 Total operating lease payments $ 230 |
Lease Obligations - Lessee
Lease Obligations - Lessee | 6 Months Ended |
Jun. 30, 2024 | |
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. The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Condensed Consolidated Balance Sheets Caption June 30, December 31, Assets Operating lease right-of-use assets Other assets $ 523 511 Finance lease right-of-use assets Bank premises and equipment 158 126 Total right-of-use assets (a) $ 681 637 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 608 601 Finance lease liabilities Long-term debt 171 134 Total lease liabilities $ 779 735 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $316 and $53, respectively, as of June 30, 2024, and $292 and $77, respectively, as of December 31, 2023. The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended For the six months ended 2024 2023 2024 2023 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 5 5 10 10 Interest on lease liabilities Interest on long-term debt 2 1 3 2 Total finance lease costs $ 7 6 13 12 Operating lease cost Net occupancy expense $ 22 22 44 44 Short-term lease cost Net occupancy expense — 1 — 1 Variable lease cost Net occupancy expense 7 7 14 14 Sublease income Net occupancy expense (1) (1) (1) (1) Total operating lease costs $ 28 29 57 58 Total lease costs $ 35 35 70 70 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 an immaterial amount of impairment losses and termination charges for the ROU assets related to certain operating leases during both the three months ended June 30, 2024 and 2023 and an immaterial amount and $1 million during the six months ended June 30, 2024 and 2023, respectively. The recognized losses were recorded in net occupancy expense in the Condensed Consolidated Statements of Income. The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities: As of June 30, 2024 ($ in millions) Operating Finance Total Remainder of 2024 $ 47 12 59 2025 91 23 114 2026 82 22 104 2027 74 21 95 2028 66 21 87 2029 57 11 68 Thereafter 359 104 463 Total undiscounted cash flows $ 776 214 990 Less: Difference between undiscounted cash flows and discounted cash flows 168 43 211 Present value of lease liabilities $ 608 171 779 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: June 30, December 31, Weighted-average remaining lease term (years): Operating leases 11.32 11.07 Finance leases 12.78 15.21 Weighted-average discount rate: Operating leases 3.92 % 3.72 Finance leases 3.79 3.02 The following table presents information related to lease transactions for the six months ended June 30: ($ in millions) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 47 46 Operating cash flows from finance leases 3 2 Financing cash flows from finance leases 9 8 Gains on sale-leaseback transactions — 1 (a) The cash flows related to short-term and variable lease payments are not included in the amounts presented 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. The following table provides a summary of lease assets and lease liabilities as of: ($ in millions) Condensed Consolidated Balance Sheets Caption June 30, December 31, Assets Operating lease right-of-use assets Other assets $ 523 511 Finance lease right-of-use assets Bank premises and equipment 158 126 Total right-of-use assets (a) $ 681 637 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 608 601 Finance lease liabilities Long-term debt 171 134 Total lease liabilities $ 779 735 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $316 and $53, respectively, as of June 30, 2024, and $292 and $77, respectively, as of December 31, 2023. The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended For the six months ended 2024 2023 2024 2023 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 5 5 10 10 Interest on lease liabilities Interest on long-term debt 2 1 3 2 Total finance lease costs $ 7 6 13 12 Operating lease cost Net occupancy expense $ 22 22 44 44 Short-term lease cost Net occupancy expense — 1 — 1 Variable lease cost Net occupancy expense 7 7 14 14 Sublease income Net occupancy expense (1) (1) (1) (1) Total operating lease costs $ 28 29 57 58 Total lease costs $ 35 35 70 70 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 an immaterial amount of impairment losses and termination charges for the ROU assets related to certain operating leases during both the three months ended June 30, 2024 and 2023 and an immaterial amount and $1 million during the six months ended June 30, 2024 and 2023, respectively. The recognized losses were recorded in net occupancy expense in the Condensed Consolidated Statements of Income. The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities: As of June 30, 2024 ($ in millions) Operating Finance Total Remainder of 2024 $ 47 12 59 2025 91 23 114 2026 82 22 104 2027 74 21 95 2028 66 21 87 2029 57 11 68 Thereafter 359 104 463 Total undiscounted cash flows $ 776 214 990 Less: Difference between undiscounted cash flows and discounted cash flows 168 43 211 Present value of lease liabilities $ 608 171 779 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: June 30, December 31, Weighted-average remaining lease term (years): Operating leases 11.32 11.07 Finance leases 12.78 15.21 Weighted-average discount rate: Operating leases 3.92 % 3.72 Finance leases 3.79 3.02 The following table presents information related to lease transactions for the six months ended June 30: ($ in millions) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 47 46 Operating cash flows from finance leases 3 2 Financing cash flows from finance leases 9 8 Gains on sale-leaseback transactions — 1 (a) The cash flows related to short-term and variable lease payments are not included in the amounts presented as they were not included in the measurement of lease liabilities. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
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 Accumulated Net Carrying As of June 30, 2024 Core deposit intangibles $ 206 (189) 17 Developed technology 106 (41) 65 Customer relationships 28 (9) 19 Other 14 (8) 6 Total intangible assets $ 354 (247) 107 As of December 31, 2023 Core deposit intangibles $ 209 (184) 25 Developed technology 106 (33) 73 Customer relationships 30 (10) 20 Other 16 (9) 7 Total intangible assets $ 361 (236) 125 As of June 30, 2024, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $8 million and $10 million for the three months ended June 30, 2024 and 2023, respectively, and $18 million and $23 million for the six months ended June 30, 2024 and 2023, respectively. The Bancorp’s projections of amortization expense shown in the following table are based on existing asset balances as of June 30, 2024. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2024 through 2028 is as follows: ($ in millions) Total Remainder of 2024 $ 17 2025 28 2026 22 2027 14 2028 9 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2024 | |
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 automobile loan securitizations 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) June 30, December 31, Assets: Other short-term investments $ 52 55 Indirect secured consumer loans 1,237 1,535 Solar energy installation loans 35 38 ALLL (23) (28) Other assets 7 10 Total assets $ 1,308 1,610 Liabilities: Other liabilities $ 13 14 Long-term debt 1,136 1,409 Total liabilities $ 1,149 1,423 In a securitization transaction that occurred in August of 2023, the Bancorp transferred $1.74 billion in aggregate automobile loans to a bankruptcy remote trust which was deemed to be a VIE. This trust then issued approximately $1.58 billion of asset-backed notes, of which approximately $79 million were retained by the Bancorp. Additionally, as a result of a previous business acquisition, the Bancorp acquired interests in a completed securitization transaction in which solar energy installation loans were transferred to a bankruptcy remote trust which was deemed to be a VIE. 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, over-collateralization, 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: June 30, 2024 ($ in millions) Total Total Maximum CDC investments $ 2,142 771 2,183 Private equity investments 253 — 456 Loans provided to VIEs 4,365 — 6,737 Lease pool entities 36 — 36 Solar loan securitizations 8 — 8 December 31, 2023 ($ in millions) Total Total Maximum CDC investments $ 2,007 690 2,054 Private equity investments 230 — 400 Loans provided to VIEs 4,274 — 6,395 Lease pool entities 42 — 42 Solar loan securitizations 9 — 9 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, 2023. 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. Certain CDC investments include undrawn liquidity and lending commitments which are included in the maximum exposure amount but not included in the Condensed Consolidated Balance Sheets as these commitments are contingent on future events. 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. The Bancorp utilizes the proportional amortization method to account for its qualifying investments in projects that are related to certain income tax credit programs. Effective with the adoption of ASU 2023-02 on January 1, 2024, these tax credit programs include the LIHTC program established under Section 42 of the IRC, the New Markets Tax Credit program established under Section 45D of the IRC and the Rehabilitation Investment Tax Credit program established under Section 47 of the IRC. Prior to the adoption of ASU 2023-02 on January 1, 2024, the Bancorp utilized the proportional amortization method for its LIHTC investments but other tax credit program investments were accounted for under the equity method. At June 30, 2024 and December 31, 2023, the Bancorp’s CDC investments included $2.0 billion and $1.6 billion, respectively, of investments in tax credit programs for which the Bancorp had elected to apply the proportional amortization method. The unfunded commitments related to these investments were $767 million and $684 million at June 30, 2024 and December 31, 2023, respectively. The unfunded commitments as of June 30, 2024 are expected to be funded from 2024 to 2040. The following table summarizes the impacts to the Condensed Consolidated Statements of Income related to these investments: Condensed Consolidated Statements of Income Caption (a) For the three months ended June 30, For the six months ended June 30, ($ in millions) 2024 2023 2024 2023 Proportional amortization Applicable income tax expense $ 52 57 100 100 Tax credits and other benefits (b) Applicable income tax expense (65) (66) (122) (117) Changes in carrying amounts of equity method investments (c) Other noninterest expense 2 — 4 — (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three and six months ended June 30, 2024 and 2023. (b) The related cash flows are classified as operating activities in the Condensed Consolidated Statements of Cash Flows primarily in net change in other assets. (c) These amounts pertain to tax credit program investments which were accounted for under the equity method as they did not meet the qualification criteria for the proportional amortization method. Private equity investments The Bancorp invests as a limited partner in private equity investment funds 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 investment funds. 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 June 30, 2024 and December 31, 2023, the Bancorp’s unfunded commitment amounts to the private equity funds were $203 million and $170 million, respectively. As part of previous commitments, the Bancorp made capital contributions to private equity investments of $11 million and $8 million during the three months ended June 30, 2024 and 2023, respectively and $25 million and $20 million during the six months ended June 30, 2024 and 2023, 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. As of June 30, 2024 and December 31, 2023, the Bancorp’s unfunded commitments to these entities were $2.4 billion and $2.1 billion, respectively. The loans and unfunded commitments to these VIEs are included in the Bancorp’s overall analysis of the ALLL and reserve for unfunded commitments, respectively. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. Lease pool entities 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 and six months ended June 30, 2024 and 2023. In those sales, the Bancorp obtained servicing responsibilities and provided certain standard representations and warranties; however, the investors have no recourse to the Bancorp’s other assets for failure of debtors to pay when due. The Bancorp receives servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Residential mortgage loan sales (a) $ 761 1,233 1,474 2,508 Origination fees and gains on loan sales 18 22 33 41 Gross mortgage servicing fees 78 80 155 161 (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 six months ended June 30: ($ in millions) 2024 2023 Balance, beginning of period $ 1,737 1,746 Servicing rights originated 21 35 Servicing rights purchased — 23 Servicing rights sold (5) — Changes in fair value: Due to changes in inputs or assumptions (a) 51 34 Other changes in fair value (b) (73) (74) Balance, end of period $ 1,731 1,764 (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 For the six months ended ($ in millions) 2024 2023 2024 2023 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) (16) (56) (62) (35) MSR fair value adjustment due to changes in inputs or assumptions (a) 10 53 51 34 (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 June 30, 2024 and 2023 were as follows: June 30, 2024 June 30, 2023 Weighted- Prepayment OAS Weighted- Prepayment OAS Fixed-rate 7.9 9.4 % 472 6.8 12.0 % 609 At June 30, 2024 and December 31, 2023, the Bancorp serviced $97.3 billion and $100.8 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. The weighted-average coupon of the MSR portfolio was 3.76% and 3.72% at June 30, 2024 and December 31, 2023, respectively. At June 30, 2024, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in OAS for servicing rights related to residential mortgage loans are as follows: ($ 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 $ 1,728 8.7 5.6 % $ (38) (75) (173) 448 $ (34) (68) Adjustable-rate 3 3.7 22.1 — — (1) 693 — — (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 | 6 Months Ended |
Jun. 30, 2024 | |
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 contracts include certain contractual features in which either the Bancorp or the counterparties may be required to provide collateral, typically in the form of cash or securities, as initial margin and to offset changes in the fair value of the derivatives, including changes in the fair value due to credit risk, either of the Bancorp or the counterparty. In measuring the fair value of its derivative contracts, 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. As of June 30, 2024 and December 31, 2023, the balance of collateral held by the Bancorp for derivative assets was $1.4 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 $511 million and $587 million as of June 30, 2024 and December 31, 2023, respectively, were applied to reduce the respective derivative contracts and were also not included in the total amount of collateral held. As of June 30, 2024 and December 31, 2023, the credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts was $4 million and $7 million, respectively. As of June 30, 2024 and December 31, 2023, the balance of collateral posted by the Bancorp, as either initial margin or due to changes in fair value of the related derivative contracts was $1.2 billion and $1.1 billion, respectively. Additionally, as of June 30, 2024 and December 31, 2023, $1.2 billion and $721 million, respectively, of variation margin payments were applied to the respective derivative contracts to reduce the Bancorp’s derivative liabilities and were also not included in the total amount of collateral posted. Certain of the Bancorp’s derivative liabilities contain credit risk-related contingent features that could result in the requirement to post additional collateral upon the occurrence of specified events. As of both June 30, 2024 and December 31, 2023, the fair value of the additional collateral that could be required to be posted as a result of the credit risk-related contingent features being triggered was immaterial to the Bancorp’s Condensed Consolidated Financial Statements. The posting of collateral has been determined to remove the need for further consideration of credit risk. As a result, the Bancorp determined that the impact of the Bancorp’s credit risk to the valuation of its derivative liabilities was immaterial to the Bancorp’s Condensed Consolidated Financial Statements. The Bancorp holds certain derivative instruments that qualify for hedge accounting treatment and are designated as either fair value hedges or cash flow hedges. Derivative instruments that do not qualify for hedge accounting treatment, or for which hedge accounting is not established, are held as free-standing derivatives. All customer accommodation derivatives are held as free-standing derivatives. The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of: Fair Value June 30, 2024 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 5,955 1 42 Total fair value hedges 1 42 Cash flow hedges: Interest rate floors related to C&I loans 3,000 — — Interest rate swaps related to C&I loans 8,000 — 13 Interest rate swaps related to C&I loans - forward starting (a) 5,000 — 1 Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting (a) 4,000 — — Total cash flow hedges — 14 Total derivatives designated as qualifying hedging instruments 1 56 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 3,180 20 1 Forward contracts related to residential mortgage loans measured at fair value (b) 1,271 2 5 Swap associated with the sale of Visa, Inc. Class B Shares 2,808 — 164 Foreign exchange contracts 218 1 — Interest-only strips 34 1 — Interest rate contracts for collateral management 3,000 — 1 Interest rate contracts for LIBOR transition 597 — — Other 38 — 1 Total free-standing derivatives – risk management and other business purposes 24 172 Free-standing derivatives – customer accommodation: Interest rate contracts (c)(d) 91,331 920 1,190 Interest rate lock commitments 446 5 — Commodity contracts 17,544 783 773 TBA securities 51 — — Foreign exchange contracts 39,512 1,127 1,092 Total free-standing derivatives – customer accommodation 2,835 3,055 Total derivatives not designated as qualifying hedging instruments 2,859 3,227 Total $ 2,860 3,283 (a) Forward starting swaps will become effective on various dates between August 2024 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 in addition to certain portfolio residential mortgage loans measured at fair value. (c) Derivative assets and liabilities are presented net of variation margin of $336 and $62, respectively. (d) Includes replacement contracts with a notional amount of approximately $675 million which were the result of certain central clearing parties replacing existing LIBOR-based contracts with multiple separate contracts as part of the LIBOR transition. Fair Value December 31, 2023 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 5,955 — 32 Total fair value hedges — 32 Cash flow hedges: Interest rate floors related to C&I loans 3,000 1 — Interest rate swaps related to C&I loans 8,000 2 11 Interest rate swaps related to C&I loans - forward starting (a) 6,000 6 1 Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting (a) 4,000 1 1 Total cash flow hedges 10 13 Total derivatives designated as qualifying hedging instruments 10 45 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 3,205 81 — Forward contracts related to residential mortgage loans measured at fair value (b) 650 — 5 Swap associated with the sale of Visa, Inc. Class B Shares 4,178 — 168 Foreign exchange contracts 190 — 4 Interest-only strips 39 1 — Interest rate contracts for collateral management 5,000 1 1 Interest rate contracts for LIBOR transition 597 — — Other 30 — — Total free-standing derivatives – risk management and other business purposes 83 178 Free-standing derivatives – customer accommodation: Interest rate contracts (c)(d) 95,079 885 1,162 Interest rate lock commitments 252 5 — Commodity contracts 17,621 1,051 1,018 TBA securities 27 — — Foreign exchange contracts 37,734 643 596 Total free-standing derivatives – customer accommodation 2,584 2,776 Total derivatives not designated as qualifying hedging instruments 2,667 2,954 Total $ 2,677 2,999 (a) Forward starting swaps will become effective on various dates between June 2024 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 in addition to certain portfolio residential mortgage loans measured at fair value. (c) Derivative assets and liabilities are presented net of variation margin of $335 and $58, respectively. (d) Includes replacement contracts with a notional amount of approximately $675 million which were the result of certain central clearing parties replacing existing LIBOR-based contracts with multiple separate contracts as part of the LIBOR transition. Fair Value Hedges The Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate or to hedge the exposure to changes in fair value of a recognized asset attributable to changes in the benchmark interest rate. Decisions to enter into these interest rate swaps are made primarily through consideration of the asset/liability mix of the Bancorp, the desired asset/liability sensitivity and interest rate levels. As of June 30, 2024, certain interest rate swaps met the criteria required to qualify for the shortcut method of accounting that permits the assumption of perfect offset. For all designated fair value hedges of interest rate risk as of June 30, 2024 that were not accounted for under the shortcut method of accounting, the Bancorp performed an assessment of hedge effectiveness using regression analysis with changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability attributable to the hedged risk recorded in the same income statement line in current period net income. The following table reflects the changes in fair value of interest rate contracts, designated as fair value hedges and the changes in fair value of the related hedged items attributable to the risk being hedged, as well as the line items in the Condensed Consolidated Statements of Income in which the corresponding gains or losses are recorded: Condensed Consolidated For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Long-term debt: Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (23) (131) (114) (39) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 23 131 114 42 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 June 30, December 31, Long-term debt: Carrying amount of the hedged items Long-term debt $ 5,786 5,899 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt (152) (38) 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 (10) (11) 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 June 30, 2024, 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 June 30, 2024, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 91 months. Reclassified gains and losses on interest rate contracts related to commercial loans are recorded within interest income in the Condensed Consolidated Statements of Income. As of June 30, 2024 and December 31, 2023, respectively, $659 million and $372 million of net deferred losses, net of tax, on cash flow hedges were recorded in AOCI in the Condensed Consolidated Balance Sheets. As of June 30, 2024, $289 million in net unrealized losses, net of tax, recorded in AOCI are expected to be reclassified into earnings during the next 12 months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations or the addition of other hedges subsequent to June 30, 2024. During both the three and six months ended June 30, 2024 and 2023, there were no gains or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would no longer occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP. The following table presents the pre-tax net losses recorded in the Condensed Consolidated Statements of Income and in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Amount of pre-tax net losses recognized in OCI $ (145) (454) (557) (177) Amount of pre-tax net losses reclassified from OCI into net income (90) (81) (179) (146) 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 benchmark rates 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 changes in fair value of certain residential mortgage loans held for sale and certain residential mortgage portfolio loans measured at fair value which are 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 more information about 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 have moved 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 For the six months ended ($ in millions) 2024 2023 2024 2023 Interest rate contracts: Interest rate contracts related to MSR portfolio Mortgage banking net revenue $ (16) (56) (62) (35) Forward contracts related to residential mortgage loans measured at fair value Mortgage banking net revenue 1 11 6 3 Interest-only strips Other noninterest income — (3) — (3) Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 2 (3) 7 (3) Equity contracts: Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (23) (30) (40) (61) 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 typically 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 $3.3 billion and $3.6 billion at June 30, 2024 and December 31, 2023, respectively, and the fair value was a liability of $6 million at both June 30, 2024 and December 31, 2023, which is included in other liabilities in the Condensed Consolidated Balance Sheets. As of June 30, 2024, the risk participation agreements had a weighted-average remaining life of 2.4 years. The Bancorp’s maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves in its loan and lease portfolio. Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of: ($ in millions) June 30, December 31, Pass $ 3,013 3,168 Special mention 165 323 Substandard 168 72 Total $ 3,346 3,563 The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Condensed Consolidated For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Interest rate contracts: Interest rate contracts for customers (contract revenue) Commercial banking revenue $ 6 11 11 21 Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 2 3 (2) Interest rate lock commitments Mortgage banking net revenue 11 13 20 26 Commodity contracts: Commodity contracts for customers (contract revenue) Commercial banking revenue 4 11 8 21 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 23 23 40 43 Foreign exchange contracts for customers (contract revenue) Other noninterest income (12) (4) (8) (8) Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense — 1 — 3 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 June 30, 2024 Derivative assets $ 2,855 (1,494) (837) 524 Derivative liabilities 3,283 (1,494) (187) 1,602 As of December 31, 2023 Derivative assets $ 2,672 (1,031) (877) 764 Derivative liabilities 2,999 (1,031) (159) 1,809 (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 | 6 Months Ended |
Jun. 30, 2024 | |
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) June 30, December 31, FHLB advances $ 3,000 2,500 Securities sold under repurchase agreements 300 330 Derivative collateral 35 3 Other borrowed money 35 28 Total other short-term borrowings $ 3,370 2,861 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 and held-to-maturity 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 June 30, 2024 and December 31, 2023, all securities sold under repurchase agreements were secured by agency mortgage-backed securities and the repurchase agreements had an overnight remaining contractual maturity. The Bancorp’s other borrowed money at June 30, 2024 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On January 29, 2024, the Bancorp issued and sold $1.0 billion of fixed-rate/floating-rate senior notes which will mature on January 29, 2032 . The senior notes will bear interest at a rate of 5.631% per annum to, but excluding, January 29, 2031. From, and including January 29, 2031 until, but excluding January 29, 2032, the senior notes will bear interest at a rate of compounded SOFR plus 1.840%. The senior notes are redeemable in whole one year prior to their maturity date, or in whole or in part beginning 60 days prior to maturity, at par plus accrued and unpaid interest. Additionally, the senior notes are redeemable at the Bancorp’s option, in whole or in part, beginning 180 days after the issue date and prior to January 29, 2031, at the greater of: (a) the aggregate principal amount of the senior notes being redeemed, plus accrued and unpaid interest, or (b) the present value of the remaining scheduled payments of principal and interest. |
Capital Actions
Capital Actions | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Capital Actions | Capital Actions Accelerated Share Repurchase Transaction During the six months ended June 30, 2024, 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 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 six months ended June 30, 2024: Repurchase Date Amount Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Final Settlement Date June 12, 2024 $ 125 3,011,621 496,767 3,508,388 June 27, 2024 For further information on a subsequent event related to capital actions, refer to Note 24. |
Commitments, Contingent Liabili
Commitments, Contingent Liabilities and Guarantees | 6 Months Ended |
Jun. 30, 2024 | |
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) June 30, December 31, Commitments to extend credit $ 79,884 81,570 Letters of credit 2,029 2,095 Forward contracts related to residential mortgage loans measured at fair value 1,271 650 Capital commitments for private equity investments 203 170 Capital expenditures 98 95 Purchase obligations 47 69 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 June 30, 2024 and December 31, 2023, the Bancorp had a reserve for unfunded commitments, including letters of credit, totaling $137 million and $166 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio. Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of: ($ in millions) June 30, December 31, Pass $ 77,984 79,593 Special mention 903 1,301 Substandard 995 676 Doubtful 2 — Total commitments to extend credit $ 79,884 81,570 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 June 30, 2024: ($ in millions) Less than 1 year (a) $ 980 1 - 5 years (a) 1,042 Over 5 years 7 Total letters of credit $ 2,029 (a) Includes $7 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 June 30, 2024 and December 31, 2023 and are considered guarantees in accordance with U.S. GAAP. Approximately 74% and 72% of the total standby letters of credit were collateralized as of June 30, 2024 and December 31, 2023, respectively. In the event of nonperformance by the customers, the Bancorp has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The reserve related to these standby letters of credit, which was included in the total reserve for unfunded commitments, was $15 million and $20 million at June 30, 2024 and December 31, 2023, respectively. The Bancorp monitors the credit risk associated with letters of credit using the same standard regulatory risk rating systems utilized for its loan and lease portfolio. Risk ratings of outstanding letters of credit under this risk rating system are summarized in the following table as of: ($ in millions) June 30, December 31, Pass $ 1,855 1,902 Special mention 66 81 Substandard 106 112 Doubtful 2 — Total letters of credit $ 2,029 2,095 At June 30, 2024 and December 31, 2023, 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 June 30, 2024 and December 31, 2023, total VRDNs, of which FTS was the remarketing agent for all, were $366 million and $400 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 $54 million and $83 million of the VRDNs remarketed by FTS at June 30, 2024 and December 31, 2023, respectively. These letters of credit are included in the total letters of credit balance provided in the previous tables. The Bancorp held an immaterial amount and $6 million of these VRDNs in its portfolio and classified them as trading debt securities at June 30, 2024 and December 31, 2023, respectively. Forward contracts related to residential mortgage loans measured at fair value 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, and certain residential mortgage portfolio loans measured at fair value, 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, 2023. At both June 30, 2024 and December 31, 2023, the Bancorp maintained reserves related to loans sold with representation and warranty provisions totaling $7 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 June 30, 2024 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 $8 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 June 30, 2024 and 2023, the Bancorp paid an immaterial amount in the form of make-whole payments and repurchased $4 million and $14 million, respectively, in outstanding principal of loans to satisfy investor demands. For both the six months ended June 30, 2024 and 2023, the Bancorp paid an immaterial amount in the form of make-whole payments and repurchased $15 million and $32 million, respectively, in outstanding principal of loans to satisfy investor demands. Total repurchase demand requests during the three months ended June 30, 2024 and 2023 were $12 million and $24 million, respectively. Total repurchase demand requests during the six months ended June 30, 2024 and 2023 were $28 million and $60 million, respectively. Total outstanding repurchase demand inventory was $10 million and $8 million at June 30, 2024 and December 31, 2023, respectively. Margin accounts FTS, an indirect wholly-owned subsidiary of the Bancorp, guarantees the collection of all margin account balances held by its brokerage clearing agent for the benefit of its customers. FTS is responsible for payment to its brokerage clearing agent for any loss, liability, damage, cost or expense incurred as a result of customers failing to comply with margin or margin maintenance calls on all margin accounts. The margin account balances held by the brokerage clearing agent were $12 million and $6 million at June 30, 2024 and December 31, 2023, respectively. 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 June 30, 2024 and December 31, 2023. 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 were 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. On January 23, 2024, Visa announced shareholder approval of changes to its articles of incorporation that would release certain transfer restrictions on portions of Class B Shares. The program will allow holders of Class B Shares to liquidate some of their shares subject to assurances that other Visa stockholders will retain existing protection from exposure to the Covered Litigation. 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 June 30, 2024, 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 $164 million at June 30, 2024 and $168 million at December 31, 2023. Refer to Note 13 and Note 22 for further information. After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows: Period ($ 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 Q2 2023 500 21 Q3 2023 150 6 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 6 Months Ended |
Jun. 30, 2024 | |
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. On March 26, 2024, Plaintiffs filed a motion seeking preliminary approval of a settlement that would resolve class claims for injunctive relief. On June 13, 2024, the Court held a hearing on Plaintiffs’ motion for preliminary approval of the injunctive relief settlement, and on June 25, 2024, the Court issued an order denying the request for preliminary approval of the settlement. 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. Both parties have filed post-trial motions related to the jury verdict, which are currently pending before the trial court. 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, 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 parties agreed to the entry of a Stipulated Final Judgment and Order on July 9, 2024 to resolve this matter, pursuant to which Fifth Third, without admitting or denying any of the allegations in the suit except as specified in the order, agreed to pay a civil monetary penalty of $15 million, agreed to maintain existing policies around its consumer sales incentives, agreed to create a compliance plan to ensure its account opening practices comply with law and the order and agreed to provide a redress plan to remediate certain customers with checking, savings, or credit card accounts opened beginning January 1, 2010 and ending December 31, 2016. Concurrently with the Stipulated Final Judgment and Order, Fifth Third, without admitting or denying any of the findings of fact or conclusions of law (except to establish jurisdiction), has also agreed to entry of a Consent Order related to a since-discontinued program in its auto lending business that placed collateral protection insurance (CPI) on certain auto loans. Under the Consent Order, Fifth Third has agreed to pay a $5 million civil monetary penalty related to those issues, maintain existing policy changes related to its auto servicing practices, agreed to create a compliance plan to ensure its compliance with the order and provide a redress plan to remediate certain customers within a redress period beginning July 21, 2011 and ending December 31, 2020. 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 in discovery, and no trial date has been set. Other litigation The Bancorp and its subsidiaries are not parties to any other material litigation at this time. However, there are other litigation matters that arise in the normal course of business, which include, or may include, claims related to product features, pricing and other lending practices. For example, Fifth Third Bank, National Association is currently responding to lawsuits regarding bankruptcies and practices of residential solar installers as well as lending practices of credit providers to this market, which includes Dividend Solar Finance, LLC, which the Bank acquired in May 2022. 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. However, it is possible that the ultimate resolution of a matter, if unfavorable, may be material to the Bancorp’s consolidated financial position, results of operations or cash flows. Record-Keeping Investigations The Commodity Futures Trading Commission is conducting an investigation into the Bancorp’s registered swap dealer concerning compliance with certain record-keeping requirements for business-related electronic communications. 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, Fifth Third Bank, National Association is currently cooperating with investigations related to several civil investigative demands by a number of state attorneys general regarding the residential solar installation industry and lending practices of credit providers to this market, which includes Dividend Solar Finance, LLC, which the Bank acquired in May 2022. Among these are investigations related to multiple lenders by a coalition of 17 state attorneys general relating to the Chapter 7 bankruptcy filing of one such installer, Power Home Solar, LLC, dba Pink Energy. Dividend Solar Finance, LLC financed installations of Power Home Solar, LLC customers in 11 of the 17 states represented by the coalition. 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 $74 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 | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The applicable income tax expense was $163 million and $174 million for the three months ended June 30, 2024 and 2023, respectively, and $302 million and $334 million for the six months ended June 30, 2024 and 2023, respectively. The effective tax rates for the three months ended June 30, 2024 and 2023 were 21.3% and 22.5%, respectively, and 21.2% and 22.4% for the six months ended June 30, 2024 and 2023, respectively. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp’s uncertain tax positions could increase or decrease during the next twelve months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next twelve months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The tables below present the activity of the components of OCI and AOCI for the three months ended: Total OCI Total AOCI June 30, 2024 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale debt securities arising during period $ (5) 4 (1) Reclassification adjustment for net losses on available-for-sale debt securities included in net income 4 (1) 3 Net unrealized losses on available-for-sale debt securities (1) 3 2 (3,488) 2 (3,486) Amortization of unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities included in net income 32 (7) 25 Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities 32 (7) 25 (760) 25 (735) Unrealized holding losses on cash flow hedge derivatives arising during period (145) 36 (109) Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 90 (21) 69 Net unrealized losses on cash flow hedge derivatives (55) 15 (40) (619) (40) (659) Reclassification of amounts to net periodic benefit costs — — — Defined benefit pension plans, net — — — (17) — (17) Other — — — (4) — (4) Total $ (24) 11 (13) (4,888) (13) (4,901) Total OCI Total AOCI June 30, 2023 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale debt securities arising during period $ (831) 198 (633) Reclassification adjustment for net gains on available-for-sale debt securities included in net income — — — Net unrealized losses on available-for-sale debt securities (831) 198 (633) (3,989) (633) (4,622) Unrealized holding losses on cash flow hedge derivatives arising during period (454) 102 (352) Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 81 (18) 63 Net unrealized losses on cash flow hedge derivatives (373) 84 (289) (233) (289) (522) Reclassification of amounts to net periodic benefit costs 1 — 1 Defined benefit pension plans, net 1 — 1 (19) 1 (18) Other — — — (4) — (4) Total $ (1,203) 282 (921) (4,245) (921) (5,166) The tables below present the activity of the components of OCI and AOCI for the six months ended: Total OCI Total AOCI June 30, 2024 ($ in millions) Pre-tax Tax Effect Net Activity Beginning Balance Net Activity Ending Balance Unrealized holding losses on available-for-sale debt securities arising during period $ (241) 59 (182) Unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities 994 (209) 785 Reclassification adjustment for net losses on available-for-sale debt securities included in net income 7 (2) 5 Net unrealized losses on available-for-sale debt securities 760 (152) 608 (4,094) 608 (3,486) Unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities (994) 209 (785) Amortization of unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities included in net income 64 (14) 50 Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities (930) 195 (735) — (735) (735) Unrealized holding losses on cash flow hedge derivatives arising during period (557) 132 (425) Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 179 (41) 138 Net unrealized losses on cash flow hedge derivatives (378) 91 (287) (372) (287) (659) Reclassification of amounts to net periodic benefit costs — — — Defined benefit pension plans, net — — — (17) — (17) Other — — — (4) — (4) Total $ (548) 134 (414) (4,487) (414) (4,901) Total OCI Total AOCI June 30, 2023 ($ in millions) Pre-tax Tax Effect Net Activity Beginning Balance Net Activity Ending Balance Unrealized holding losses on available-for-sale debt securities arising during period $ (43) 10 (33) Reclassification adjustment for net gains on available-for-sale debt securities included in net income — — — Net unrealized losses on available-for-sale debt securities (43) 10 (33) (4,589) (33) (4,622) Unrealized holding losses on cash flow hedge derivatives arising during period (177) 40 (137) Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 146 (33) 113 Net unrealized losses on cash flow hedge derivatives (31) 7 (24) (498) (24) (522) Net actuarial loss arising during the year — — — Reclassification of amounts to net periodic benefit costs 1 — 1 Defined benefit pension plans, net 1 — 1 (19) 1 (18) Other — — — (4) — (4) Total $ (73) 17 (56) (5,110) (56) (5,166) The table below presents reclassifications out of AOCI: Condensed Consolidated Statements of Income Caption For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Net unrealized losses on available-for-sale debt securities: (a) Net losses included in net income Securities gains, net $ (4) — (7) — Income before income taxes (4) — (7) — Applicable income tax expense 1 — 2 — Net income (3) — (5) — Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities: (a) Net losses included in net income Interest on securities (32) — (64) — Income before income taxes (32) — (64) — Applicable income tax expense 7 — 14 — Net income (25) — (50) — Net unrealized losses on cash flow hedge derivatives: (a) Interest rate contracts related to C&I, commercial mortgage and commercial construction loans Interest and fees on loans and leases (90) (81) (179) (146) Income before income taxes (90) (81) (179) (146) Applicable income tax expense 21 18 41 33 Net income (69) (63) (138) (113) Net periodic benefit costs: (a) Amortization of net actuarial loss Compensation and benefits (b) — (1) — (1) Income before income taxes — (1) — (1) Applicable income tax expense — — — — Net income — (1) — (1) Total reclassifications for the period Net income $ (97) (64) (193) (114) (a) Amounts in parentheses indicate reductions to net income. (b) 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, 2023 for further information. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
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: For the three months ended For the six months ended ($ in millions, except per share data) 2024 2023 2024 2023 Net income available to common shareholders $ 561 562 $ 1,041 1,097 Average common shares outstanding - basic 687 684 686 684 Effect of dilutive stock-based awards 4 2 5 4 Average common shares outstanding - diluted $ 691 686 $ 691 688 Earnings per share - basic $ 0.82 0.82 $ 1.52 1.60 Earnings per share - diluted 0.81 0.82 1.51 1.59 Anti-dilutive stock-based awards excluded from diluted shares 2 9 2 6 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023. 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 June 30, 2024 ($ 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 $ 3,506 — — 3,506 Obligations of states and political subdivisions securities — 2 — 2 Mortgage-backed securities: Agency residential mortgage-backed securities — 4,757 — 4,757 Agency commercial mortgage-backed securities — 21,155 — 21,155 Non-agency commercial mortgage-backed securities — 4,403 — 4,403 Asset-backed securities and other debt securities — 4,369 — 4,369 Available-for-sale debt and other securities (a) 3,506 34,686 — 38,192 Trading debt securities: U.S. Treasury and federal agencies securities 592 9 — 601 Obligations of states and political subdivisions securities — 84 — 84 Agency residential mortgage-backed securities — 7 — 7 Asset-backed securities and other debt securities — 440 — 440 Trading debt securities 592 540 — 1,132 Equity securities 450 26 — 476 Residential mortgage loans held for sale — 512 — 512 Residential mortgage loans (b) — — 109 109 Servicing rights — — 1,731 1,731 Derivative assets: Interest rate contracts 2 941 6 949 Foreign exchange contracts — 1,128 — 1,128 Commodity contracts 69 714 — 783 Derivative assets (c) 71 2,783 6 2,860 Total assets $ 4,619 38,547 1,846 45,012 Liabilities: Derivative liabilities: Interest rate contracts $ 2 1,246 6 1,254 Foreign exchange contracts — 1,092 — 1,092 Equity contracts — — 164 164 Commodity contracts 72 701 — 773 Derivative liabilities (d) 74 3,039 170 3,283 Short positions: U.S. Treasury and federal agencies securities 104 — — 104 Asset-backed securities and other debt securities — 130 — 130 Short positions (d) 104 130 — 234 Total liabilities $ 178 3,169 170 3,517 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $293, $499 and $2, respectively, at June 30, 2024. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2023 ($ 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 $ 4,336 — — 4,336 Obligations of states and political subdivisions securities — 2 — 2 Mortgage-backed securities: Agency residential mortgage-backed securities — 10,282 — 10,282 Agency commercial mortgage-backed securities — 25,720 — 25,720 Non-agency commercial mortgage-backed securities — 4,445 — 4,445 Asset-backed securities and other debt securities — 4,912 — 4,912 Available-for-sale debt and other securities (a) 4,336 45,361 — 49,697 Trading debt securities: U.S. Treasury and federal agencies securities 640 7 — 647 Obligations of states and political subdivisions securities — 39 — 39 Agency residential mortgage-backed securities — 6 — 6 Asset-backed securities and other debt securities — 207 — 207 Trading debt securities 640 259 — 899 Equity securities 600 13 — 613 Residential mortgage loans held for sale — 334 — 334 Residential mortgage loans (b) — — 116 116 Servicing rights — — 1,737 1,737 Derivative assets: Interest rate contracts — 977 6 983 Foreign exchange contracts — 643 — 643 Commodity contracts 205 846 — 1,051 Derivative assets (c) 205 2,466 6 2,677 Total assets $ 5,781 48,433 1,859 56,073 Liabilities: Derivative liabilities: Interest rate contracts $ 5 1,202 6 1,213 Foreign exchange contracts — 600 — 600 Equity contracts — — 168 168 Commodity contracts 28 990 — 1,018 Derivative liabilities (d) 33 2,792 174 2,999 Short positions: U.S. Treasury and federal agencies securities 31 — — 31 Asset-backed securities and other debt securities — 76 — 76 Short positions (d) 31 76 — 107 Total liabilities $ 64 2,868 174 3,106 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $224, $496 and $2, respectively, at December 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. 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 12 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 June 30, 2024 and December 31, 2023, 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 June 30, 2024 was $5 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 $3 million and $5 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 $6 million, respectively. An immediate 10% or 20% change in loan closing rates, either adverse or favorable, would not have a material impact on the fair value of IRLCs as of June 30, 2024. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. Short positions Where quoted prices are available in an active market, short positions are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, then fair values are estimated using pricing models which primarily utilize quoted prices of securities with similar characteristics and therefore are classified within Level 2 of the valuation hierarchy. Level 2 securities include asset-backed and other debt securities. The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended June 30, 2024 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 113 1,756 — (162) 1,707 Total (losses) gains (realized/unrealized): (b) Included in earnings (1) (30) 12 (23) (42) Purchases/originations — 10 — — 10 Sales — (5) — — (5) Settlements (4) — (12) 21 5 Transfers into Level 3 (c) 1 — — — 1 Balance, end of period $ 109 1,731 — (164) 1,676 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 June 30, 2024 $ (1) 7 5 (23) (12) (a) Net interest rate derivatives include $6 for both derivative assets and liabilities as of June 30, 2024. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2024. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended June 30, 2023 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 128 1,725 3 (192) 1,664 Total (losses) gains (realized/unrealized): (b) Included in earnings (1) 13 11 (30) (7) Purchases/originations — 26 — — 26 Settlements (3) — (12) 18 3 Transfers into Level 3 (c) — — — — — Balance, end of period $ 124 1,764 2 (204) 1,686 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 June 30, 2023 $ (1) 33 6 (30) 8 (a) Net interest rate derivatives include derivative assets and liabilities of $10 and $8, respectively, as of June 30, 2023. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2023. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the six months ended June 30, 2024 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 116 1,737 — (168) 1,685 Total (losses) gains (realized/unrealized): (b) Included in earnings (3) (22) 21 (40) (44) Purchases/originations — 21 (1) — 20 Sales — (5) — — (5) Settlements (6) — (20) 44 18 Transfers into Level 3 (c) 2 — — — 2 Balance, end of period $ 109 1,731 — (164) 1,676 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 June 30, 2024 $ (3) 35 6 (40) (2) (a) Net interest rate derivatives include $6 for both derivative assets and liabilities as of June 30, 2024. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2024. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the six months ended June 30, 2023 ($ 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 1 (40) 25 (61) (75) Purchases/originations — 58 (2) — 56 Settlements (5) — (20) 52 27 Transfers into Level 3 (c) 5 — — — 5 Balance, end of period $ 124 1,764 2 (204) 1,686 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 June 30, 2023 $ 1 (3) 6 (61) (57) (a) Net interest rate derivatives include derivative assets and liabilities of $10 and $8, respectively, as of June 30, 2023. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2023. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. The total losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Mortgage banking net revenue $ (20) 22 (5) (16) Commercial banking revenue 1 1 1 2 Other noninterest income (23) (30) (40) (61) Total losses $ (42) (7) (44) (75) 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 June 30, 2024 and 2023 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Mortgage banking net revenue $ 10 37 37 2 Commercial banking revenue 1 1 1 2 Other noninterest income (23) (30) (40) (61) Total (losses) gains $ (12) 8 (2) (57) The following tables present information as of June 30, 2024 and 2023 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 June 30, 2024 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 109 Loss rate model Interest rate risk factor (26.0) - 5.0% (14.1) % (a) Credit risk factor — - 0.6% 0.1 % (a) Servicing rights 1,731 DCF Prepayment speed — - 100.0% (Fixed) 5.6 % (b) (Adjustable) 22.1 % (b) OAS (bps) 420 - 1,833 (Fixed) 448 (b) (Adjustable) 693 (b) IRLCs, net 5 DCF Loan closing rates 18.8 - 96.0% 82.3 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (164) DCF Timing of the resolution Q4 2026 - Q1 2028 Q2 2027 (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 June 30, 2023 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 124 Loss rate model Interest rate risk factor (23.5) - 5.5 % (11.8) % (a) Credit risk factor — - 1.1 % 0.2 % (a) Servicing rights 1,764 DCF Prepayment speed — - 100.0 % (Fixed) 5.2 % (b) (Adjustable) 20.3 % (b) OAS (bps) 477 - 1,447 (Fixed) 628 (b) (Adjustable) 1,204 (b) IRLCs, net 8 DCF Loan closing rates 30.2 - 97.5 % 82.9 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (204) DCF Timing of the resolution Q3 2024 - Q1 2027 Q3 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. 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 June 30, 2024 and 2023, and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2024 and 2023, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of June 30, 2024 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended June 30, 2024 For the six months ended June 30, 2024 Commercial loans held for sale $ — — 4 4 — — Commercial loans and leases — — 67 67 (44) (104) Consumer and residential mortgage loans — — 196 196 — (3) OREO — — 5 5 (1) (1) Bank premises and equipment — — 3 3 — — Private equity investments — — — — — 9 Total $ — — 275 275 (45) (99) Fair Value Measurements Using Total Losses As of June 30, 2023 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended June 30, 2023 For the six months ended June 30, 2023 Commercial loans held for sale $ — — 7 7 — — Commercial loans and leases — — 171 171 (21) (97) Consumer and residential mortgage loans — — 193 193 (6) (8) OREO — — 5 5 (1) (1) Bank premises and equipment — — 4 4 — (1) Private equity investments — — — — (1) (2) Total $ — — 380 380 (29) (109) The following tables present information as of June 30, 2024 and 2023 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 June 30, 2024 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 4 Comparable company analysis Market comparable transactions NM NM Commercial loans and leases 67 Appraised value Collateral value NM NM Consumer and residential mortgage loans 196 Appraised value Collateral value NM NM OREO 5 Appraised value Appraised value NM NM Bank premises and equipment 3 Appraised value Appraised value NM NM Private equity investments — Comparable company analysis Market comparable transactions NM NM As of June 30, 2023 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 7 Comparable company analysis Market comparable transactions NM NM Commercial loans and leases 171 Appraised value Collateral value NM NM Consumer and residential mortgage loans 193 Appraised value Collateral value NM NM OREO 5 Appraised value Appraised value NM NM Bank premises and equipment 4 Appraised value Appraised value NM NM Private equity investments — 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 and six months ended June 30, 2024 and 2023. 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 and six months ended June 30, 2024 and 2023, 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 For both the three and six months ended June 30, 2024 and 2023, the Bancorp recorded $1 million of 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. 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. 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 and recognized gains of $9 million during the three and six months ended June 30, 2024, respectively, and did not recognize gains during the three and six months ended June 30, 2023, resulting from observable price changes. The carrying value of the Bancorp’s private equity investments still held as of June 30, 2024 includes a cumulative $18 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 did not recognize impairment charges during the three and six months ended June 30, 2024 and recognized impairment charges of $1 million and $2 million during the three and six months ended June 30, 2023, respectively. The carrying value of the Bancorp’s private equity investments still held as of June 30, 2024 includes a cumulative $15 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 June 30, 2024 and 2023 for which the fair value option was elected, as well as the changes in fair value of the underlying IRLCs, included losses of $7 million and $13 million, respectively. These losses are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by an immaterial amount at both June 30, 2024 and December 31, 2023. Interest on loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income. The following table summarizes the difference between the fair value and the unpaid principal balance for residential mortgage loans measured at fair value as of: June 30, 2024 ($ in millions) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Residential mortgage loans measured at fair value $ 621 628 (7) Past due loans of 30-89 days 1 1 — Nonaccrual loans 2 2 — December 31, 2023 Residential mortgage loans measured at fair value $ 450 456 (6) Past due loans of 30-89 days 1 1 — Nonaccrual loans 2 2 — 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 June 30, 2024 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 2,837 2,837 — — 2,837 Other short-term investments 21,085 21,085 — — 21,085 Other securities 794 — 794 — 794 Held-to-maturity securities 11,443 2,299 8,886 2 11,187 Loans and leases held for sale 25 — — 25 25 Portfolio loans and leases: Commercial loans and leases 70,670 — — 70,953 70,953 Consumer and residential mortgage loans 43,512 — — 40,440 40,440 Total portfolio loans and leases, net $ 114,182 — — 111,393 111,393 Financial liabilities: Deposits $ 166,768 — 166,709 — 166,709 Federal funds purchased 194 194 — — 194 Other short-term borrowings 3,370 — 3,376 — 3,376 Long-term debt 16,445 12,926 3,437 — 16,363 Net Carrying Fair Value Measurements Using Total As of December 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 3,142 3,142 — — 3,142 Other short-term investments 22,082 22,082 — — 22,082 Other securities 722 — 722 — 722 Held-to-maturity securities 2 — — 2 2 Loans and leases held for sale 44 — — 44 44 Portfolio loans and leases: Commercial loans and leases 71,616 — — 71,766 71,766 Consumer and residential mortgage loans 43,180 — — 41,410 41,410 Total portfolio loans and leases, net $ 114,796 — — 113,176 113,176 Financial liabilities: Deposits $ 168,912 — 168,873 — 168,873 Federal funds purchased 193 193 — — 193 Other short-term borrowings 2,861 — 2,872 — 2,872 Long-term debt 16,418 14,481 1,903 — 16,384 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Bancorp reports on three business segments: Commercial Banking, Consumer and 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. During the first quarter of 2024, the Bancorp eliminated certain revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking. As a result, the results of operations for the Wealth and Asset Management segment for the three and six months ended June 30, 2023 were adjusted to reflect the impact of the elimination of these revenue sharing agreements between Wealth and Asset Management and Consumer and Small Business Banking. The impact of the elimination of these revenue sharing agreements for the years ended December 31, 2023, 2022 and 2021 resulted in a decrease in wealth and asset management revenue and an offsetting decrease in other noninterest expense within the Wealth and Asset Management segment of $186 million, $177 million and $180 million, respectively. 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, solar energy installation 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. Solar energy installation loans and certain other consumer loans are originated through a network of contractors and installers. Wealth and Asset Management provides a full range of wealth management solutions for individuals, companies and not-for-profit organizations, including wealth planning, investment management, banking, insurance, trust and estate services. These offerings include retail brokerage services for individual clients, advisory services for institutional clients including middle market businesses, non-profits, states and municipalities, and wealth management strategies and products for high net worth and ultra-high net worth clients. The following tables present the results of operations and assets by business segment for the three months ended: June 30, 2024 ($ in millions) Commercial Consumer Wealth General Total Net interest income $ 656 1,055 54 (378) 1,387 Provision for (benefit from) credit losses 137 70 — (110) 97 Net interest income after provision for (benefit from) credit losses $ 519 985 54 (268) 1,290 Noninterest income: Wealth and asset management revenue $ 1 62 96 — 159 Service charges on deposits 104 52 — — 156 Commercial banking revenue 142 1 1 — 144 Card and processing revenue 28 79 1 — 108 Mortgage banking net revenue — 50 — — 50 Leasing business revenue 38 — — — 38 Other noninterest income 17 28 — (8) 37 Securities gains (losses), net (7) — — 10 3 Total noninterest income $ 323 272 98 2 695 Noninterest expense: Compensation and benefits $ 156 226 52 222 656 Technology and communications 3 8 — 103 114 Net occupancy expense 9 53 3 18 83 Equipment expense 7 13 — 18 38 Marketing expense 1 19 — 14 34 Leasing business expense 22 — — — 22 Card and processing expense 2 19 — — 21 Other noninterest expense 257 288 38 (330) 253 Total noninterest expense $ 457 626 93 45 1,221 Income (loss) before income taxes $ 385 631 59 (311) 764 Applicable income tax expense (benefit) 65 132 12 (46) 163 Net income (loss) $ 320 499 47 (265) 601 Total goodwill $ 2,324 2,369 225 — 4,918 Total assets $ 77,123 90,242 10,480 35,417 (a) 213,262 (a) Includes bank premises and equipment o f $16 classified as held for sale. For more information, refer to Note 7. June 30, 2023 ($ in millions) Commercial Consumer Wealth General Total Net interest income $ 1,021 1,370 95 (1,029) 1,457 Provision for (benefit from) credit losses (9) 65 — 121 177 Net interest income after provision for (benefit from) credit losses $ 1,030 1,305 95 (1,150) 1,280 Noninterest income: Wealth and asset management revenue $ — 52 89 2 143 Service charges on deposits 92 53 — (1) 144 Commercial banking revenue 147 1 — (2) 146 Card and processing revenue 23 79 1 3 106 Mortgage banking net revenue — 59 — — 59 Leasing business revenue 47 — — — 47 Other noninterest income 28 27 1 18 74 Securities gains (losses), net (1) — — 8 7 Total noninterest income $ 336 271 91 28 726 Noninterest expense: Compensation and benefits $ 153 222 55 220 650 Technology and communications 3 6 — 105 114 Net occupancy expense 10 52 3 18 83 Equipment expense 7 10 — 19 36 Marketing expense 1 18 — 12 31 Leasing business expense 31 — — — 31 Card and processing expense 2 19 — (1) 20 Other noninterest expense 279 305 35 (353) 266 Total noninterest expense $ 486 632 93 20 1,231 Income (loss) before income taxes $ 880 944 93 (1,142) 775 Applicable income tax expense (benefit) 169 198 20 (213) 174 Net income (loss) $ 711 746 73 (929) 601 Total goodwill $ 2,324 2,369 226 — 4,919 Total assets $ 83,238 85,755 10,691 27,592 (a) 207,276 (a) Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7. The following tables present the results of operations and assets by business segment for the six months ended: June 30, 2024 ($ in millions) Commercial Consumer and Small Business Wealth General Total Net interest income $ 1,342 2,180 112 (863) 2,771 Provision for (benefit from) credit losses 208 154 — (171) 191 Net interest income after provision for (benefit from) credit losses $ 1,134 2,026 112 (692) 2,580 Noninterest income: Wealth and asset management revenue $ 2 121 197 — 320 Service charges on deposits 203 103 — — 306 Commercial banking revenue 285 3 1 (1) 288 Card and processing revenue 53 154 1 2 210 Mortgage banking net revenue — 104 — — 104 Leasing business revenue 77 — — — 77 Other noninterest income 34 55 1 (2) 88 Securities gains (losses), net (6) — — 19 13 Total noninterest income $ 648 540 200 18 1,406 Noninterest expense: Compensation and benefits $ 345 460 114 490 1,409 Technology and communications 8 14 — 209 231 Net occupancy expense 18 107 6 39 170 Equipment expense 14 26 — 36 76 Marketing expense 1 42 — 23 66 Leasing business expense 48 — — — 48 Card and processing expense 4 37 1 (1) 41 Other noninterest expense 520 581 74 (654) 521 Total noninterest expense $ 958 1,267 195 142 2,562 Income (loss) before income taxes $ 824 1,299 117 (816) 1,424 Applicable income tax expense (benefit) 136 273 25 (132) 302 Net income (loss) $ 688 1,026 92 (684) 1,122 Total goodwill $ 2,324 2,369 225 — 4,918 Total assets $ 77,123 90,242 10,480 35,417 (a) 213,262 (a) Includes bank premises and equipment of $16 classified as held for sale. For more information, refer to Note 7. June 30, 2023 ($ in millions) Commercial Consumer and Small Business Banking Wealth General Total Net interest income $ 1,997 2,628 196 (1,847) 2,974 Provision for credit losses 37 116 — 188 341 Net interest income after provision for credit losses $ 1,960 2,512 196 (2,035) 2,633 Noninterest income: Wealth and asset management revenue $ 1 106 182 — 289 Service charges on deposits 180 103 — (2) 281 Commercial banking revenue 305 2 — — 307 Card and processing revenue 45 155 1 5 206 Mortgage banking net revenue — 127 — — 127 Leasing business revenue 104 — — — 104 Other noninterest income (a) 44 52 — 1 97 Securities gains (losses), net (8) — — 19 11 Total noninterest income $ 671 545 183 23 1,422 Noninterest expense: Compensation and benefits $ 343 446 116 502 1,407 Technology and communications 5 13 — 214 232 Net occupancy expense (c) 20 104 6 34 164 Equipment expense 14 21 — 38 73 Marketing expense 1 35 1 23 60 Leasing business expense 65 — — — 65 Card and processing expense 5 38 — (1) 42 Other noninterest expense 583 619 71 (754) 519 Total noninterest expense $ 1,036 1,276 194 56 2,562 Income (loss) before income taxes $ 1,595 1,781 185 (2,068) 1,493 Applicable income tax expense (benefit) 305 373 39 (383) 334 Net income (loss) $ 1,290 1,408 146 (1,685) 1,159 Total goodwill $ 2,324 2,369 226 — 4,919 Total assets $ 83,238 85,755 10,691 27,592 (b) 207,276 (a) Includes impairment charges of $1 for bank premises and equipment recorded in Consumer and Small Business Banking. For more information, refer to Note 7 and Note 22. (b) Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7. (c) Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 9. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 22, 2024 , the Bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the Bancorp paid $200 million on July 23, 2024 to repurchase shares of its outstanding common stock. The Bancorp repurchased the shares of its common stock as part of its Board-approved 100 million share repurchase program previously announced on June 18, 2019. The final settlement of the transaction occurred on August 5, 2024. The following table presents a summary of the Bancorp’s accelerated share repurchase transaction that was entered into and settled after June 30, 2024: Repurchase Date Amount Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Final Settlement Date July 23, 2024 $ 200 4,160,548 713,340 4,873,888 August 5, 2024 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 and changes in equity for the three and six months ended June 30, 2024 and 2023 and the cash flows for the six months ended June 30, 2024 and 2023 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2023 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 2024 The Bancorp adopted the following new accounting standards during the six months ended June 30, 2024: 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 Bancorp adopted the amended guidance on January 1, 2024 on a prospective basis. The adoption did not have a material impact on the Bancorp’s Condensed Consolidated Financial Statements. 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 Bancorp adopted the amended guidance on January 1, 2024 on a modified retrospective basis, except for certain provisions which the Bancorp adopted on a prospective basis, as permitted. Upon adoption, the Bancorp recorded a cumulative-effect adjustment to decrease retained earnings by $10 million, net of tax. ASU 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, which amends the disclosure requirements for reportable segments. The amendments include new requirements to disclose certain significant segment expenses and other items, the title and position of the chief operating decision maker and information about how the reported measures of segment profit or loss are used in assessing segment performance. The amendments also make certain annual disclosure requirements applicable to interim periods and permit the reporting of multiple measures of segment profit or loss if appropriate. The amended guidance is effective for the Bancorp for the year ending December 31, 2024 and subsequent interim reporting periods beginning in 2025, with early adoption permitted. Consistent with this implementation guidance, the Bancorp will provide the amended disclosures within its Annual Report on Form 10-K for the year ended December 31, 2024 and the amendments will be applied retrospectively to all prior periods presented. Significant Accounting Standard Issued but Not Yet Adopted The following significant accounting standard was issued but not yet adopted by the Bancorp as of June 30, 2024: ASU 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, which amends the disclosure requirements for income taxes. The amendments primarily include new requirements to disclose additional information as part of the reconciliation of the effective tax rate to statutory tax rates, provide the amount of income taxes paid, net of refunds received, and income tax expense disaggregated between federal, state and foreign jurisdictions and provide income before income taxes disaggregated between domestic and foreign jurisdictions. The amendments also discontinue certain other disclosure requirements. The amended guidance is effective for the Bancorp on January 1, 2025, with early adoption permitted, and is to be applied prospectively, with retrospective application permitted. The Bancorp is in the process of evaluating the impact of the amended guidance on its Condensed Consolidated Financial Statements. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30: ($ in millions) 2024 2023 Cash Payments: Interest $ 2,492 1,474 Income taxes 79 337 Transfers: Portfolio loans and leases to loans and leases held for sale $ 135 67 Loans and leases held for sale to portfolio loans and leases 2 5 Portfolio loans and leases to OREO 9 5 Bank premises and equipment to OREO 6 14 Available-for-sale debt securities to held-to-maturity securities (a) 11,593 — Supplemental Disclosures: Net additions to lease liabilities under operating leases $ 41 32 Net additions (reductions) to lease liabilities under finance leases 45 (1) (a) Represents the fair value of the securities on the date of transfer. Refer to Note 4 for additional information. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 3,504 2 — 3,506 Obligations of states and political subdivisions securities 2 — — 2 Mortgage-backed securities: Agency residential mortgage-backed securities 5,556 — (799) 4,757 Agency commercial mortgage-backed securities 24,315 — (3,160) 21,155 Non-agency commercial mortgage-backed securities 4,816 — (413) 4,403 Asset-backed securities and other debt securities 4,609 5 (245) 4,369 Other securities (a) 794 — — 794 Total available-for-sale debt and other securities $ 43,596 7 (4,617) 38,986 Held-to-maturity securities: (b) U.S. Treasury and federal agencies securities $ 2,338 — (39) 2,299 Mortgage-backed securities: Agency residential mortgage-backed securities 5,092 — (160) 4,932 Agency commercial mortgage-backed securities 4,011 4 (61) 3,954 Asset-backed securities and other debt securities 2 — — 2 Total held-to-maturity securities $ 11,443 4 (260) 11,187 (a) Other securities consist of FHLB, FRB and DTCC restricted stock holdi ngs of $293, $499 and $2, respectively, at June 30, 2024, that are carried at cost. (b) The amortized cost basis of held-to-maturity securities includes a discount of $930 at June 30, 2024 pertaining to the unamortized portion of unrealized losses on securities. December 31, 2023 ($ in millions) Amortized Unrealized Unrealized Fair Available-for-sale debt and other securities: U.S. Treasury and federal agencies securities $ 4,477 1 (142) 4,336 Obligations of states and political subdivisions securities 2 — — 2 Mortgage-backed securities: Agency residential mortgage-backed securities 11,564 — (1,282) 10,282 Agency commercial mortgage-backed securities 28,945 5 (3,230) 25,720 Non-agency commercial mortgage-backed securities 4,872 — (427) 4,445 Asset-backed securities and other debt securities 5,207 3 (298) 4,912 Other securities (a) 722 — — 722 Total available-for-sale debt and other securities $ 55,789 9 (5,379) 50,419 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 holdings of $224, $496 and $2, respectively, at December 31, 2023, that are carried at cost. The following table provides the fair value of trading debt securities and equity securities as of: ($ in millions) June 30, December 31, Trading debt securities $ 1,132 899 Equity securities 476 613 |
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 June 30, For the six months ended ($ in millions) 2024 2023 2024 2023 Available-for-sale debt and other securities: Realized gains $ 1 4 3 34 Realized losses — — — (30) Impairment losses (5) (4) (10) (4) Net losses on available-for-sale debt and other securities $ (4) — (7) — Trading debt securities: Net realized losses — — — — Net unrealized gains — 2 — 2 Net trading debt securities gains $ — 2 — 2 Equity securities: Net realized gains 11 1 11 2 Net unrealized gains (losses) (4) 4 9 7 Net equity securities gains $ 7 5 20 9 Total gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities (a) $ 3 7 13 11 (a) Excludes an immaterial amount and $2 of net securities gains for the three and six months ended June 30, 2024, respectively, and $1 of net securities losses and an immaterial amount of net securities gains for the three and six months ended June 30, 2023, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These gains and losses are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income. |
Contractual Maturity Schedule | The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity securities as of June 30, 2024 are shown in the following table: ($ 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 $ 904 875 38 38 Due after 1 year through 5 years 18,452 17,404 2,930 2,882 Due after 5 years through 10 years 15,740 13,343 7,995 7,787 Due after 10 years 7,706 6,570 480 480 Other securities 794 794 — — Total $ 43,596 38,986 11,443 11,187 (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 June 30, 2024 U.S. Treasury and federal agencies securities $ 730 — — — 730 — Agency residential mortgage-backed securities — — 4,756 (799) 4,756 (799) Agency commercial mortgage-backed securities 3,709 (448) 17,320 (2,712) 21,029 (3,160) Non-agency commercial mortgage-backed securities 35 (1) 4,368 (412) 4,403 (413) Asset-backed securities and other debt securities 101 (1) 3,822 (244) 3,923 (245) Total $ 4,575 (450) 30,266 (4,167) 34,841 (4,617) December 31, 2023 U.S. Treasury and federal agencies securities $ 1,989 (3) 2,157 (139) 4,146 (142) Agency residential mortgage-backed securities 81 (2) 10,200 (1,280) 10,281 (1,282) Agency commercial mortgage-backed securities 5,439 (556) 19,957 (2,674) 25,396 (3,230) Non-agency commercial mortgage-backed securities 141 (2) 4,284 (425) 4,425 (427) Asset-backed securities and other debt securities 340 (17) 4,184 (281) 4,524 (298) Total $ 7,990 (580) 40,782 (4,799) 48,772 (5,379) |
Loans and Leases (Tables)
Loans and Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) June 30, December 31, Loans and leases held for sale: Commercial and industrial loans $ 22 41 Commercial leases 3 3 Residential mortgage loans 512 334 Total loans and leases held for sale $ 537 378 Portfolio loans and leases: Commercial and industrial loans $ 51,840 53,270 Commercial mortgage loans 11,429 11,276 Commercial construction loans 5,806 5,621 Commercial leases 2,708 2,579 Total commercial loans and leases $ 71,783 72,746 Residential mortgage loans $ 17,040 17,026 Home equity 3,969 3,916 Indirect secured consumer loans 15,442 14,965 Credit card 1,733 1,865 Solar energy installation loans 3,951 3,728 Other consumer loans 2,661 2,988 Total consumer loans $ 44,796 44,488 Total portfolio loans and leases $ 116,579 117,234 |
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) June 30, December 31, June 30, December 31, Commercial and industrial loans $ 51,862 53,311 3 8 Commercial mortgage loans 11,429 11,276 1 — Commercial construction loans 5,806 5,621 — — Commercial leases 2,711 2,582 4 — Residential mortgage loans 17,552 17,360 8 7 Home equity 3,969 3,916 — — Indirect secured consumer loans 15,442 14,965 — — Credit card 1,733 1,865 17 21 Solar energy installation loans 3,951 3,728 — — Other consumer loans 2,661 2,988 — — Total loans and leases $ 117,116 117,612 33 36 Less: Loans and leases held for sale 537 378 Total portfolio loans and leases $ 116,579 117,234 (a) Excludes government guaranteed residential mortgage loans. The following table presents a summary of net charge-offs: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Commercial and industrial loans $ 80 32 115 62 Commercial construction loans — — — 1 Residential mortgage loans — — (1) — Home equity (1) 1 — — Indirect secured consumer loans 17 16 42 29 Credit card 17 16 36 31 Solar energy installation loans 12 7 24 9 Other consumer loans 19 18 38 36 Total net charge-offs $ 144 90 254 168 |
Investment in Lease Financing | The following table presents the components of the net investment in portfolio leases as of: ($ in millions) (a) June 30, December 31, Net investment in direct financing leases: Lease payment receivable (present value) $ 602 556 Unguaranteed residual assets (present value) 120 105 Net investment in sales-type leases: Lease payment receivable (present value) 1,658 1,585 Unguaranteed residual assets (present value) 82 84 (a) Excludes $246 and 249 of leveraged leases at June 30, 2024 and December 31, 2023, respectively. |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The following table presents undiscounted cash flows for both direct financing and sales-type portfolio leases for the remainder of 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease receivables as follows: As of June 30, 2024 ($ in millions) Direct Financing Sales-Type Leases Remainder of 2024 $ 93 259 2025 177 532 2026 147 366 2027 111 294 2028 59 194 2029 35 78 Thereafter 41 70 Total undiscounted cash flows $ 663 1,793 Less: Difference between undiscounted cash flows and discounted cash flows 61 135 Present value of lease payments (recognized as lease receivables) $ 602 1,658 |
Credit Quality and the Allowa_2
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Summary of Transactions in the ALLL | The following tables summarize transactions in the ALLL by portfolio segment: For the three months ended June 30, 2024 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,141 140 1,037 2,318 Losses charged off (a) (83) (1) (98) (182) Recoveries of losses previously charged off (a) 3 1 34 38 Provision for (benefit from) loan and lease losses 52 (4) 66 114 Balance, end of period $ 1,113 136 1,039 2,288 (a) The Bancorp recorded $7 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the three months ended June 30, 2023 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,143 185 887 2,215 Losses charged off (a) (35) (1) (85) (121) Recoveries of losses previously charged off (a) 3 1 27 31 Provision for (benefit from) loan and lease losses 88 (12) 126 202 Balance, end of period $ 1,199 173 955 2,327 (a) The Bancorp recorded $8 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the six months ended June 30, 2024 ($ in millions) Commercial Residential Consumer Total Balance, beginning of period $ 1,130 145 1,047 2,322 Losses charged off (a) (123) (1) (204) (328) Recoveries of losses previously charged off (a) 8 2 64 74 Provision for (benefit from) loan and lease losses 98 (10) 132 220 Balance, end of period $ 1,113 136 1,039 2,288 (a) The Bancorp record ed $15 i n both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. For the six months ended June 30, 2023 ($ in millions) Commercial Residential Mortgage 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) (69) (2) (160) (231) Recoveries of losses previously charged off (a) 6 2 55 63 Provision for (benefit from) loan and lease losses 131 (36) 255 350 Balance, end of period $ 1,199 173 955 2,327 (a) The Bancorp recorded $17 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements. |
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment | The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: As of June 30, 2024 ($ in millions) Commercial Residential Consumer Total ALLL: (a) Individually evaluated $ 88 — 5 93 Collectively evaluated 1,025 136 1,034 2,195 Total ALLL $ 1,113 136 1,039 2,288 Portfolio loans and leases: (b) Individually evaluated $ 215 129 72 416 Collectively evaluated 71,568 16,802 27,684 116,054 Total portfolio loans and leases $ 71,783 16,931 27,756 116,470 (a) Includes $2 related to commercial leveraged leases at June 30, 2024. (b) Excludes $109 of residential mortgage loans measured at fair value and includes $246 of commercial leveraged leases, net of unearned income, at June 30, 2024. As of December 31, 2023 ($ in millions) Commercial Residential Consumer Total ALLL: (a) Individually evaluated $ 90 — 6 96 Collectively evaluated 1,040 145 1,041 2,226 Total ALLL $ 1,130 145 1,047 2,322 Portfolio loans and leases: (b) Individually evaluated $ 281 126 69 476 Collectively evaluated 72,465 16,784 27,393 116,642 Total portfolio loans and leases $ 72,746 16,910 27,462 117,118 (a) Includes $2 related to commercial leveraged leases at December 31, 2023. (b) Excludes $116 of residential mortgage loans measured at fair value and includes $249 of commercial leveraged leases, net of unearned income, at December 31, 2023. |
Loan and Leases Balances by Credit Quality Indicator | The following tables present the amortized cost basis of the Bancorp’s commercial portfolio segment, by class and vintage, disaggregated by credit risk rating: As of June 30, 2024 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans 2024 2023 2022 2021 2020 Prior Total Commercial and industrial loans: Pass $ 1,357 1,763 2,761 1,552 532 479 39,476 47,920 Special mention 32 62 117 20 3 77 1,334 1,645 Substandard 35 65 110 80 39 99 1,827 2,255 Doubtful — — — — — — 20 20 Total commercial and industrial loans $ 1,424 1,890 2,988 1,652 574 655 42,657 51,840 Commercial mortgage owner-occupied loans: Pass $ 324 873 963 659 355 390 1,461 5,025 Special mention 32 26 5 17 — 19 6 105 Substandard 48 19 27 38 8 47 99 286 Doubtful — — — — — — — — Total commercial mortgage owner-occupied loans $ 404 918 995 714 363 456 1,566 5,416 Commercial mortgage nonowner-occupied loans: Pass $ 300 855 743 226 308 493 2,581 5,506 Special mention 9 3 154 — 1 1 63 231 Substandard 19 53 4 — — 2 198 276 Doubtful — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 328 911 901 226 309 496 2,842 6,013 Commercial construction loans: Pass $ 21 134 101 38 41 32 4,678 5,045 Special mention — — — — — — 447 447 Substandard 5 52 — — — 2 255 314 Doubtful — — — — — — — — Total commercial construction loans $ 26 186 101 38 41 34 5,380 5,806 Commercial leases: Pass $ 731 391 340 388 165 607 — 2,622 Special mention 2 — 2 3 2 9 — 18 Substandard — 19 13 1 4 31 — 68 Doubtful — — — — — — — — Total commercial leases $ 733 410 355 392 171 647 — 2,708 Total commercial loans and leases: Pass $ 2,733 4,016 4,908 2,863 1,401 2,001 48,196 66,118 Special mention 75 91 278 40 6 106 1,850 2,446 Substandard 107 208 154 119 51 181 2,379 3,199 Doubtful — — — — — — 20 20 Total commercial loans and leases $ 2,915 4,315 5,340 3,022 1,458 2,288 52,445 71,783 As of December 31, 2023 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans 2023 2022 2021 2020 2019 Prior Total Commercial and industrial loans: Pass $ 2,124 3,434 1,814 580 263 321 40,889 49,425 Special mention 16 100 60 33 6 105 1,756 2,076 Substandard 105 103 28 18 39 73 1,397 1,763 Doubtful — — — — — — 6 6 Total commercial and industrial loans $ 2,245 3,637 1,902 631 308 499 44,048 53,270 Commercial mortgage owner-occupied loans: Pass $ 870 1,078 746 408 219 260 1,279 4,860 Special mention 30 23 18 — 6 — 20 97 Substandard 31 22 11 10 45 10 114 243 Doubtful — — — — — — — — Total commercial mortgage owner-occupied loans $ 931 1,123 775 418 270 270 1,413 5,200 Commercial mortgage nonowner-occupied loans: Pass $ 886 825 261 348 293 243 2,724 5,580 Special mention 111 166 — 2 — 2 81 362 Substandard 81 1 8 — — 2 42 134 Doubtful — — — — — — — — Total commercial mortgage nonowner-occupied loans $ 1,078 992 269 350 293 247 2,847 6,076 Commercial construction loans: Pass $ 171 36 45 41 70 6 4,818 5,187 Special mention — — — — — — 199 199 Substandard 61 — 33 — — — 141 235 Doubtful — — — — — — — — Total commercial construction loans $ 232 36 78 41 70 6 5,158 5,621 Commercial leases: Pass $ 598 386 462 202 145 664 — 2,457 Special mention 1 9 12 3 8 14 — 47 Substandard 20 14 1 5 5 30 — 75 Doubtful — — — — — — — — Total commercial leases $ 619 409 475 210 158 708 — 2,579 Total commercial loans and leases: Pass $ 4,649 5,759 3,328 1,579 990 1,494 49,710 67,509 Special mention 158 298 90 38 20 121 2,056 2,781 Substandard 298 140 81 33 89 115 1,694 2,450 Doubtful — — — — — — 6 6 Total commercial loans and leases $ 5,105 6,197 3,499 1,650 1,099 1,730 53,466 72,746 The following tables summarize the Bancorp’s gross charge-offs within the commercial portfolio segment, by class and vintage: For the six months ended June 30, 2024 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans 2024 2023 2022 2021 2020 Prior Total Commercial loans and leases: Commercial and industrial loans $ — 2 3 1 1 — 116 123 Commercial mortgage owner-occupied loans — — — — — — — — Commercial construction loans — — — — — — — — Total commercial loans and leases $ — 2 3 1 1 — 116 123 For the six months ended June 30, 2023 ($ in millions) Term Loans and Leases by Origination Year Revolving Loans 2023 2022 2021 2020 2019 Prior Total Commercial loans and leases: Commercial and industrial loans $ — 5 11 1 — 5 45 67 Commercial mortgage owner-occupied loans — — — — — — 1 1 Commercial construction loans — — — — — — 1 1 Total commercial loans and leases $ — 5 11 1 — 5 47 69 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 June 30, 2024 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2024 2023 2022 2021 2020 Prior Total Residential mortgage loans: Performing: Current (a) $ 788 1,025 3,048 4,775 2,585 4,550 — — 16,771 30-89 days past due — 1 4 5 2 13 — — 25 90 days or more past due — 1 1 2 — 4 — — 8 Nonperforming — — 7 9 7 104 — — 127 Total residential mortgage loans (b) $ 788 1,027 3,060 4,791 2,594 4,671 — — 16,931 Home equity: Performing: Current $ 63 76 38 2 5 96 3,545 57 3,882 30-89 days past due — — — — — 1 21 4 26 90 days or more past due — — — — — — — — — Nonperforming — — — — — 7 52 2 61 Total home equity $ 63 76 38 2 5 104 3,618 63 3,969 Indirect secured consumer loans: Performing: Current $ 3,431 3,415 3,668 3,104 1,104 556 — — 15,278 30-89 days past due 7 24 40 31 14 12 — — 128 90 days or more past due — — — — — — — — — Nonperforming 1 5 13 8 4 5 — — 36 Total indirect secured consumer loans $ 3,439 3,444 3,721 3,143 1,122 573 — — 15,442 Credit card: Performing: Current $ — — — — — — 1,666 — 1,666 30-89 days past due — — — — — — 19 — 19 90 days or more past due — — — — — — 17 — 17 Nonperforming — — — — — — 31 — 31 Total credit card $ — — — — — — 1,733 — 1,733 Solar energy installation loans: Performing: Current $ 469 2,226 1,140 2 — 35 — — 3,872 30-89 days past due 1 6 6 — — — — — 13 90 days or more past due — — — — — — — — — Nonperforming — 35 30 — — 1 — — 66 Total solar energy installation loans $ 470 2,267 1,176 2 — 36 — — 3,951 Other consumer loans: Performing: Current $ 115 435 604 271 206 181 772 45 2,629 30-89 days past due — 4 9 3 2 2 2 1 23 90 days or more past due — — — — — — — — — Nonperforming — 2 4 1 — 1 — 1 9 Total other consumer loans $ 115 441 617 275 208 184 774 47 2,661 Total residential mortgage and consumer loans: Performing: Current $ 4,866 7,177 8,498 8,154 3,900 5,418 5,983 102 44,098 30-89 days past due 8 35 59 39 18 28 42 5 234 90 days or more past due — 1 1 2 — 4 17 — 25 Nonperforming 1 42 54 18 11 118 83 3 330 Total residential mortgage and consumer loans (b) $ 4,875 7,255 8,612 8,213 3,929 5,568 6,125 110 44,687 (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 June 30, 2024, $77 of these loans were 30-89 days past due and $126 were 90 days or more past due. The Bancorp recognized an immaterial amount and $1 of losses during the three and six months ended June 30, 2024, respectively, due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $109 of residential mortgage loans measured at fair value at June 30, 2024, including $1 of 30-89 days past due loans and $2 of nonperforming loans. As of December 31, 2023 ($ 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) $ 995 3,139 5,001 2,703 943 3,971 — — 16,752 30-89 days past due — 3 6 5 1 14 — — 29 90 days or more past due — 1 1 1 1 3 — — 7 Nonperforming — 6 6 5 4 101 — — 122 Total residential mortgage loans (b) $ 995 3,149 5,014 2,714 949 4,089 — — 16,910 Home equity: Performing: Current $ 84 41 2 6 11 92 3,549 46 3,831 30-89 days past due — — — — — 2 25 1 28 90 days or more past due — — — — — — — — — Nonperforming — — — — — 6 50 1 57 Total home equity $ 84 41 2 6 11 100 3,624 48 3,916 Indirect secured consumer loans: Performing: Current $ 4,126 4,333 3,925 1,527 597 271 — — 14,779 30-89 days past due 22 49 40 19 12 8 — — 150 90 days or more past due — — — — — — — — — Nonperforming 4 11 9 6 3 3 — — 36 Total indirect secured consumer loans $ 4,152 4,393 3,974 1,552 612 282 — — 14,965 Credit card: Performing: Current $ — — — — — — 1,789 — 1,789 30-89 days past due — — — — — — 21 — 21 90 days or more past due — — — — — — 21 — 21 Nonperforming — — — — — — 34 — 34 Total credit card $ — — — — — — 1,865 — 1,865 Solar energy installation loans: Performing: Current $ 2,415 1,192 2 — — 41 — — 3,650 30-89 days past due 12 6 — — — — — — 18 90 days or more past due — — — — — — — — — Nonperforming 29 30 — — — 1 — — 60 Total solar energy installation loans $ 2,456 1,228 2 — — 42 — — 3,728 Other consumer loans: Performing: Current $ 511 703 328 246 101 154 859 41 2,943 30-89 days past due 5 15 4 2 2 2 2 1 33 90 days or more past due — — — — — — — — — Nonperforming 2 6 1 1 1 — — 1 12 Total other consumer loans $ 518 724 333 249 104 156 861 43 2,988 Total residential mortgage and consumer loans: Performing: Current $ 8,131 9,408 9,258 4,482 1,652 4,529 6,197 87 43,744 30-89 days past due 39 73 50 26 15 26 48 2 279 90 days or more past due — 1 1 1 1 3 21 — 28 Nonperforming 35 53 16 12 8 111 84 2 321 Total residential mortgage and consumer loans (b) $ 8,205 9,535 9,325 4,521 1,676 4,669 6,350 91 44,372 (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, 2023, $79 of these loans were 30-89 days past due and $141 were 90 days or more past due. The Bancorp recognized $1 of losses during both the three and six months ended June 30, 2023, due to claim denials and curtailments associated with these insured or guaranteed loans. (b) Excludes $116 of residential mortgage loans measured at fair value at December 31, 2023, including $1 of 30-89 days past due loans and $2 of nonperforming loans. The following tables summarize the Bancorp’s gross charge-offs within the residential mortgage and consumer portfolio segments, by class and vintage: For the six months ended June 30, 2024 ($ in millions) Term Loans by Origination Year Revolving Loans Revolving Loans Converted to Term Loans 2024 2023 2022 2021 2020 Prior Total Residential mortgage loans $ — — — — — 1 — — 1 Consumer loans: Home equity — — — — — — 3 — 3 Indirect secured consumer loans — 16 26 13 5 6 — — 66 Credit card — — — — — — 46 — 46 Solar energy installation loans — 8 6 — 5 9 — — 28 Other consumer loans — 5 13 6 10 9 16 2 61 Total residential mortgage and consumer loans $ — 29 45 19 20 25 65 2 205 For the six months ended June 30, 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 $ — — — — — 2 — — 2 Consumer loans: Home equity — — — — — 1 3 — 4 Indirect secured consumer loans 1 18 12 7 5 5 — — 48 Credit card — — — — — — 40 — 40 Solar energy installation loans — 7 1 — — 1 — — 9 Other consumer loans — 18 9 6 4 5 16 1 59 Total residential mortgage and consumer loans $ 1 43 22 13 9 14 59 1 162 |
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 June 30, 2024 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 51,724 28 88 116 51,840 3 Commercial mortgage owner-occupied loans 5,411 3 2 5 5,416 1 Commercial mortgage nonowner-occupied loans 6,010 3 — 3 6,013 — Commercial construction loans 5,781 25 — 25 5,806 — Commercial leases 2,686 18 4 22 2,708 4 Total portfolio commercial loans and leases $ 71,612 77 94 171 71,783 8 (a) Includes accrual and nonaccrual loans and leases. Current Loans and Leases (a) Past Due Total Loans 90 Days Past As of December 31, 2023 ($ in millions) 30-89 Days (a) 90 Days or More (a) Total Commercial loans and leases: Commercial and industrial loans $ 53,107 61 102 163 53,270 8 Commercial mortgage owner-occupied loans 5,196 1 3 4 5,200 — Commercial mortgage nonowner-occupied loans 6,061 14 1 15 6,076 — Commercial construction loans 5,621 — — — 5,621 — Commercial leases 2,562 17 — 17 2,579 — Total portfolio commercial loans and leases $ 72,547 93 106 199 72,746 8 (a) Includes accrual and nonaccrual loans and leases. |
Summary of the Amortized Cost Basis of the Bancorp's Collateral Dependent Loans | The following table presents the amortized cost basis of the Bancorp’s collateral-dependent loans and leases, by portfolio class, as of: ($ in millions) June 30, December 31, Commercial loans and leases: Commercial and industrial loans $ 187 268 Commercial mortgage owner-occupied loans 25 8 Commercial mortgage nonowner-occupied loans 2 2 Commercial construction loans 1 1 Total commercial loans and leases $ 215 279 Residential mortgage loans 129 126 Consumer loans: Home equity 55 54 Indirect secured consumer loans 17 15 Total consumer loans $ 72 69 Total portfolio loans and leases $ 416 474 |
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: June 30, 2024 December 31, 2023 ($ in millions) With an ALLL No Related Total With an ALLL No Related Total Commercial loans and leases: Commercial and industrial loans $ 198 36 234 273 31 304 Commercial mortgage owner-occupied loans 13 22 35 11 6 17 Commercial mortgage nonowner-occupied loans 1 2 3 — 3 3 Commercial construction loans — 1 1 — 1 1 Commercial leases 1 — 1 — 1 1 Total nonaccrual portfolio commercial loans and leases $ 213 61 274 284 42 326 Residential mortgage loans 37 92 129 26 98 124 Consumer loans: Home equity 20 41 61 21 36 57 Indirect secured consumer loans 30 6 36 32 4 36 Credit card 31 — 31 34 — 34 Solar energy installation loans 66 — 66 60 — 60 Other consumer loans 9 — 9 12 — 12 Total nonaccrual portfolio consumer loans $ 156 47 203 159 40 199 Total nonaccrual portfolio loans and leases (a)(b) $ 406 200 606 469 180 649 OREO and other repossessed property — 37 37 — 39 39 Total nonperforming portfolio assets (a)(b) $ 406 237 643 469 219 688 (a) Excludes $4 and $1 of nonaccrual loans held for sale as of June 30, 2024 and December 31, 2023, respectively. (b) Includes $24 and $19 of nonaccrual government-insured commercial loans whose repayments are insured by the SBA as of June 30, 2024 and December 31, 2023, respectively. |
Summary of Loan Modifications | The following tables present the amortized cost basis as of June 30, 2024 and 2023, respectively, of the Bancorp’s commercial portfolio loans that were modified for borrowers experiencing financial difficulty, by portfolio class and type of modification: For the three months ended June 30, 2024 ($ in millions) Term Extension Term Extension and Payment Delay Payment Delay Other Total % of Total Class Commercial and industrial loans $ 95 18 3 — 116 0.22 % Commercial mortgage owner-occupied loans 23 — 1 — 24 0.44 Commercial mortgage nonowner-occupied loans — — — — — — Commercial construction loans 4 — — — 4 0.07 Total commercial portfolio loans $ 122 18 4 — 144 0.20 % For the three months ended June 30, 2023 ($ in millions) Term Extension Term Extension and Payment Delay Payment Delay Other Total % of Total Class Commercial and industrial loans $ 163 — 7 — 170 0.30 % Commercial mortgage owner-occupied loans 40 — — — 40 0.74 Commercial mortgage nonowner-occupied loans 2 — — — 2 0.03 Commercial construction loans 70 — — — 70 1.28 Total commercial portfolio loans $ 275 — 7 — 282 0.37 % For the six months ended June 30, 2024 ($ in millions) Term Extension Term Extension and Payment Delay Payment Delay Other Total % of Total Class Commercial and industrial loans $ 149 18 16 — 183 0.35 % Commercial mortgage owner-occupied loans 33 — 1 — 34 0.63 Commercial mortgage nonowner-occupied loans 5 — — — 5 0.08 Commercial construction loans 4 — — — 4 0.07 Total commercial portfolio loans $ 191 18 17 — 226 0.31 % For the six months ended June 30, 2023 ($ in millions) Term Extension Term Extension and Payment Delay Payment Delay Other Total % of Total Class Commercial and industrial loans $ 183 — 7 1 191 0.34 % Commercial mortgage owner-occupied loans 40 — — — 40 0.74 Commercial mortgage nonowner-occupied loans 24 — — 2 26 0.44 Commercial construction loans 101 — — — 101 1.84 Total commercial portfolio loans $ 348 — 7 3 358 0.47 % The following tables present the amortized cost basis as of June 30, 2024 and 2023, respectively, of the Bancorp’s residential mortgage portfolio loans that were modified for borrowers experiencing financial difficulty, by type of modification: June 30, 2024 June 30, 2023 For the three months ended ($ in millions) Total % of Total Class Total % of Total Class Payment delay $ 3 0.02 % $ 6 0.03 % Term extension and payment delay 24 0.14 29 0.17 Term extension, interest rate reduction and payment delay 2 0.01 1 0.01 Total residential mortgage portfolio loans $ 29 0.17 % $ 36 0.21 % June 30, 2024 June 30, 2023 For the six months ended ($ in millions) Total % of Total Class Total % of Total Class Payment delay $ 5 0.03 % $ 14 0.08 % Term extension and payment delay 45 0.26 42 0.24 Term extension, interest rate reduction and payment delay 3 0.02 3 0.02 Total residential mortgage portfolio loans $ 53 0.31 % $ 59 0.34 % The following tables present the amortized cost basis as of June 30, 2024 and 2023, respectively, of the Bancorp’s consumer portfolio loans that were modified for borrowers experiencing financial difficulty, by portfolio class and type of modification: For the three months ended June 30, 2024 ($ in millions) Interest Rate Reduction Payment Delay Term Extension and Payment Delay Term Extension, Interest Rate Reduction and Payment Delay Total % of Total Class Home equity $ 1 — — 2 3 0.08 % Credit card 6 — — — 6 0.35 Solar energy installation loans — — — — — — Other consumer loans — 1 — — 1 0.04 Total consumer portfolio loans $ 7 1 — 2 10 0.04 % For the three months ended June 30, 2023 ($ in millions) Interest Rate Reduction Payment Delay Term Extension and Payment Delay Term Extension, Interest Rate Reduction and Payment Delay Total % of Total Class Home equity $ — — 1 2 3 0.08 % Credit card 8 — — — 8 0.44 Solar energy installation loans — 1 — — 1 0.03 Other consumer loans — 1 — — 1 0.03 Total consumer portfolio loans $ 8 2 1 2 13 0.05 % For the six months ended June 30, 2024 ($ in millions) Interest Rate Reduction Payment Delay Term Extension and Payment Delay Term Extension, Interest Rate Reduction and Payment Delay Total % of Total Class Home equity $ 1 — 1 5 7 0.18 % Credit card 12 — — — 12 0.69 Solar energy installation loans — — — — — — Other consumer loans — 2 — — 2 0.08 Total consumer portfolio loans $ 13 2 1 5 21 0.08 % For the six months ended June 30, 2023 ($ in millions) Interest Rate Reduction Payment Delay Term Extension and Payment Delay Term Extension, Interest Rate Reduction and Payment Delay Total % of Total Class Home equity $ 1 — 2 4 7 0.18 % Credit card 17 — — — 17 0.94 Solar energy installation loans — 1 — — 1 0.03 Other consumer loans — 2 — — 2 0.06 Total consumer portfolio loans $ 18 3 2 4 27 0.10 % The following tables present the financial effects of the Bancorp’s significant types of portfolio loan modifications to borrowers experiencing financial difficulty, by portfolio class: For the three months ended June 30, Financial Effects 2024 2023 Commercial loans: Commercial and industrial loans Weighted-average length of term extensions 10 months 4 months Approximate amount of payment delays as a percentage of the related loan balances 10% 12% Commercial mortgage owner- occupied loans Weighted-average length of term extensions 12 months 10 months Commercial construction loans Weighted-average length of term extensions 6 months 12 months Residential mortgage loans Weighted-average length of term extensions 9.1 years 11.6 years Approximate amount of payment delays as a percentage of the related loan balances 11% 17% Consumer loans: Home equity Weighted-average length of term extensions 24.0 years 25.5 years Weighted-average interest rate reduction From 8.8% to 7.1% From 8.7% to 6.6% Approximate amount of payment delays as a percentage of the related loan balances 5% 3% Credit card Weighted-average interest rate reduction From 23.7% to 3.7% From 23.6% to 3.6% For the six months ended June 30, Financial Effects 2024 2023 Commercial loans: Commercial and industrial loans Weighted-average length of term extensions 9 months 4 months Approximate amount of payment delays as a percentage of the related loan balances 12% 12% Commercial mortgage owner- occupied loans Weighted-average length of term extensions 9 months 10 months Commercial mortgage nonowner- occupied loans Weighted-average length of term extensions 6 months 8 months Commercial construction loans Weighted-average length of term extensions 6 months 12 months Residential mortgage loans Weighted-average length of term extensions 10.2 years 11.3 years Approximate amount of payment delays as a percentage of the related loan balances 12% 16% Consumer loans: Home equity Weighted-average length of term extensions 24.9 years 25.1 years Weighted-average interest rate reduction From 8.9% to 7.2% From 8.3% to 6.5% Approximate amount of payment delays as a percentage of the related loan balances 5% 5% Credit card Weighted-average interest rate reduction From 23.9% to 3.9% From 23.4% to 3.7% |
Financing Receivable, Modified, Past Due | The following table presents the amortized cost basis as of June 30, 2024 for the Bancorp’s portfolio loans that were modified during the twelve months then ended for borrowers experiencing financial difficulty, by age and portfolio class: ($ in millions) Past Due Current 30-89 Days 90 Days or More Total Commercial loans: Commercial and industrial loans $ 199 3 8 210 Commercial mortgage owner-occupied loans 34 — — 34 Commercial mortgage nonowner-occupied loans 50 — — 50 Commercial construction loans 23 — — 23 Residential mortgage loans 74 15 11 100 Consumer loans: Home equity 13 1 1 15 Credit card (a) 17 3 3 23 Solar energy installation loans 1 — — 1 Other consumer loans 4 — — 4 Total portfolio loans $ 415 22 23 460 (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. The following table presents the amortized cost basis as of June 30, 2023 for the Bancorp’s portfolio loans that were modified between January 1, 2023 and June 30, 2023 to borrowers experiencing financial difficulty, by age and portfolio class: ($ in millions) Past Due Current 30-89 Days 90 Days or More Total Commercial loans: Commercial and industrial loans $ 190 — 1 191 Commercial mortgage owner-occupied loans 40 — — 40 Commercial mortgage nonowner-occupied loans 26 — — 26 Commercial construction loans 101 — — 101 Residential mortgage loans 56 2 1 59 Consumer loans: Home equity 7 — — 7 Credit card (a) 12 3 2 17 Solar energy installation loans 1 — — 1 Other consumer loans 2 — — 2 Total portfolio loans $ 435 5 4 444 (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 Amortized Cost Basis of Modifications to Borrowers Experiencing Financial Difficulty That Subsequently Defaulted and Were Within Twelve Months of the Modification Date | The following table presents the amortized cost basis of the modifications for borrowers experiencing financial difficulty that subsequently defaulted during the three months ended June 30, 2024 and were within twelve months of the modification date: ($ in millions) Term Extension Interest Rate Reduction Payment Delay Term Extension and Payment Delay Term Extension and Interest Rate Reduction Total Commercial loans: Commercial and industrial loans $ — — 13 6 — 19 Residential mortgage loans — — — 7 — 7 Consumer loans: Home equity — 1 — — — 1 Credit card — 4 — — — 4 Total portfolio loans $ — 5 13 13 — 31 The following table presents the amortized cost basis of the modifications for borrowers experiencing financial difficulty that subsequently defaulted during the six months ended June 30, 2024 and were within twelve months of the modification date: ($ in millions) Term Extension Interest Rate Reduction Payment Delay Term Extension and Payment Delay Term Extension and Interest Rate Reduction Total Commercial loans: Commercial and industrial loans $ 8 — 13 6 1 28 Residential mortgage loans — — 1 16 — 17 Consumer loans: Home equity — 1 — — — 1 Credit card — 6 — — — 6 Total portfolio loans $ 8 7 14 22 1 52 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) June 30, December 31, Equipment $ 2,672 2,578 Buildings (a) 1,757 1,742 Leasehold improvements 697 685 Land and improvements (a) 621 618 Construction in progress (a) 176 180 Bank premises and equipment held for sale: Land and improvements 12 15 Buildings 4 4 Accumulated depreciation and amortization (3,550) (3,473) Total bank premises and equipment $ 2,389 2,349 (a) Buildings, land and improvements and construction in progress included $9 associated with parcels of undeveloped land intended for future branch expansion at December 31, 2023. |
Operating Lease Equipment (Tabl
Operating Lease Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Future Lease Payments Receivable from Operating Leases | The following table presents future lease payments receivable from operating leases for the remainder of 2024 through 2029 and thereafter: As of June 30, 2024 ($ in millions) Undiscounted Remainder of 2024 $ 50 2025 77 2026 51 2027 26 2028 11 2029 6 Thereafter 9 Total operating lease payments $ 230 |
Lease Obligations - Lessee (Tab
Lease Obligations - Lessee (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, December 31, Assets Operating lease right-of-use assets Other assets $ 523 511 Finance lease right-of-use assets Bank premises and equipment 158 126 Total right-of-use assets (a) $ 681 637 Liabilities Operating lease liabilities Accrued taxes, interest and expenses $ 608 601 Finance lease liabilities Long-term debt 171 134 Total lease liabilities $ 779 735 (a) Operating and finance lease right-of-use assets are recorded net of accumulated amortization of $316 and $53, respectively, as of June 30, 2024, and $292 and $77, respectively, as of December 31, 2023. |
Components of Lease Costs, Weighted-Average Lease Term and Discount Rate | The following table presents the components of lease costs: ($ in millions) Condensed Consolidated Statements of Income Caption For the three months ended For the six months ended 2024 2023 2024 2023 Lease costs: Amortization of ROU assets Net occupancy and equipment expense $ 5 5 10 10 Interest on lease liabilities Interest on long-term debt 2 1 3 2 Total finance lease costs $ 7 6 13 12 Operating lease cost Net occupancy expense $ 22 22 44 44 Short-term lease cost Net occupancy expense — 1 — 1 Variable lease cost Net occupancy expense 7 7 14 14 Sublease income Net occupancy expense (1) (1) (1) (1) Total operating lease costs $ 28 29 57 58 Total lease costs $ 35 35 70 70 The following table presents the weighted-average remaining lease term and weighted-average discount rate as of: June 30, December 31, Weighted-average remaining lease term (years): Operating leases 11.32 11.07 Finance leases 12.78 15.21 Weighted-average discount rate: Operating leases 3.92 % 3.72 Finance leases 3.79 3.02 The following table presents information related to lease transactions for the six months ended June 30: ($ in millions) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: (a) Operating cash flows from operating leases $ 47 46 Operating cash flows from finance leases 3 2 Financing cash flows from finance leases 9 8 Gains on sale-leaseback transactions — 1 (a) The cash flows related to short-term and variable lease payments are not included in the amounts presented 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 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities: As of June 30, 2024 ($ in millions) Operating Finance Total Remainder of 2024 $ 47 12 59 2025 91 23 114 2026 82 22 104 2027 74 21 95 2028 66 21 87 2029 57 11 68 Thereafter 359 104 463 Total undiscounted cash flows $ 776 214 990 Less: Difference between undiscounted cash flows and discounted cash flows 168 43 211 Present value of lease liabilities $ 608 171 779 |
Undiscounted Cash Flows for Finance Leases | The following table presents undiscounted cash flows for both operating leases and finance leases for the remainder of 2024 through 2029 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities: As of June 30, 2024 ($ in millions) Operating Finance Total Remainder of 2024 $ 47 12 59 2025 91 23 114 2026 82 22 104 2027 74 21 95 2028 66 21 87 2029 57 11 68 Thereafter 359 104 463 Total undiscounted cash flows $ 776 214 990 Less: Difference between undiscounted cash flows and discounted cash flows 168 43 211 Present value of lease liabilities $ 608 171 779 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Accumulated Net Carrying As of June 30, 2024 Core deposit intangibles $ 206 (189) 17 Developed technology 106 (41) 65 Customer relationships 28 (9) 19 Other 14 (8) 6 Total intangible assets $ 354 (247) 107 As of December 31, 2023 Core deposit intangibles $ 209 (184) 25 Developed technology 106 (33) 73 Customer relationships 30 (10) 20 Other 16 (9) 7 Total intangible assets $ 361 (236) 125 |
Estimated Amortization Expense | Estimated amortization expense for the remainder of 2024 through 2028 is as follows: ($ in millions) Total Remainder of 2024 $ 17 2025 28 2026 22 2027 14 2028 9 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) June 30, December 31, Assets: Other short-term investments $ 52 55 Indirect secured consumer loans 1,237 1,535 Solar energy installation loans 35 38 ALLL (23) (28) Other assets 7 10 Total assets $ 1,308 1,610 Liabilities: Other liabilities $ 13 14 Long-term debt 1,136 1,409 Total liabilities $ 1,149 1,423 |
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: June 30, 2024 ($ in millions) Total Total Maximum CDC investments $ 2,142 771 2,183 Private equity investments 253 — 456 Loans provided to VIEs 4,365 — 6,737 Lease pool entities 36 — 36 Solar loan securitizations 8 — 8 December 31, 2023 ($ in millions) Total Total Maximum CDC investments $ 2,007 690 2,054 Private equity investments 230 — 400 Loans provided to VIEs 4,274 — 6,395 Lease pool entities 42 — 42 Solar loan securitizations 9 — 9 |
Investments in Qualified Affordable Housing Tax Credits | The following table summarizes the impacts to the Condensed Consolidated Statements of Income related to these investments: Condensed Consolidated Statements of Income Caption (a) For the three months ended June 30, For the six months ended June 30, ($ in millions) 2024 2023 2024 2023 Proportional amortization Applicable income tax expense $ 52 57 100 100 Tax credits and other benefits (b) Applicable income tax expense (65) (66) (122) (117) Changes in carrying amounts of equity method investments (c) Other noninterest expense 2 — 4 — (a) The Bancorp did not recognize impairment losses resulting from the forfeiture or ineligibility of tax credits or other circumstances during both the three and six months ended June 30, 2024 and 2023. (b) The related cash flows are classified as operating activities in the Condensed Consolidated Statements of Cash Flows primarily in net change in other assets. (c) |
Sales of Receivables and Serv_2
Sales of Receivables and Servicing Rights (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Transfers and Servicing [Abstract] | |
Activity Related to Mortgage Banking Net Revenue | Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Residential mortgage loan sales (a) $ 761 1,233 1,474 2,508 Origination fees and gains on loan sales 18 22 33 41 Gross mortgage servicing fees 78 80 155 161 (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 six months ended June 30: ($ in millions) 2024 2023 Balance, beginning of period $ 1,737 1,746 Servicing rights originated 21 35 Servicing rights purchased — 23 Servicing rights sold (5) — Changes in fair value: Due to changes in inputs or assumptions (a) 51 34 Other changes in fair value (b) (73) (74) Balance, end of period $ 1,731 1,764 (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 For the six months ended ($ in millions) 2024 2023 2024 2023 Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (a) (16) (56) (62) (35) MSR fair value adjustment due to changes in inputs or assumptions (a) 10 53 51 34 (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 June 30, 2024 and 2023 were as follows: June 30, 2024 June 30, 2023 Weighted- Prepayment OAS Weighted- Prepayment OAS Fixed-rate 7.9 9.4 % 472 6.8 12.0 % 609 |
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | At June 30, 2024, 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 $ 1,728 8.7 5.6 % $ (38) (75) (173) 448 $ (34) (68) Adjustable-rate 3 3.7 22.1 — — (1) 693 — — (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) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 5,955 1 42 Total fair value hedges 1 42 Cash flow hedges: Interest rate floors related to C&I loans 3,000 — — Interest rate swaps related to C&I loans 8,000 — 13 Interest rate swaps related to C&I loans - forward starting (a) 5,000 — 1 Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting (a) 4,000 — — Total cash flow hedges — 14 Total derivatives designated as qualifying hedging instruments 1 56 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 3,180 20 1 Forward contracts related to residential mortgage loans measured at fair value (b) 1,271 2 5 Swap associated with the sale of Visa, Inc. Class B Shares 2,808 — 164 Foreign exchange contracts 218 1 — Interest-only strips 34 1 — Interest rate contracts for collateral management 3,000 — 1 Interest rate contracts for LIBOR transition 597 — — Other 38 — 1 Total free-standing derivatives – risk management and other business purposes 24 172 Free-standing derivatives – customer accommodation: Interest rate contracts (c)(d) 91,331 920 1,190 Interest rate lock commitments 446 5 — Commodity contracts 17,544 783 773 TBA securities 51 — — Foreign exchange contracts 39,512 1,127 1,092 Total free-standing derivatives – customer accommodation 2,835 3,055 Total derivatives not designated as qualifying hedging instruments 2,859 3,227 Total $ 2,860 3,283 (a) Forward starting swaps will become effective on various dates between August 2024 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 in addition to certain portfolio residential mortgage loans measured at fair value. (c) Derivative assets and liabilities are presented net of variation margin of $336 and $62, respectively. (d) Includes replacement contracts with a notional amount of approximately $675 million which were the result of certain central clearing parties replacing existing LIBOR-based contracts with multiple separate contracts as part of the LIBOR transition. Fair Value December 31, 2023 ($ in millions) Notional Derivative Derivative Derivatives Designated as Qualifying Hedging Instruments: Fair value hedges: Interest rate swaps related to long-term debt $ 5,955 — 32 Total fair value hedges — 32 Cash flow hedges: Interest rate floors related to C&I loans 3,000 1 — Interest rate swaps related to C&I loans 8,000 2 11 Interest rate swaps related to C&I loans - forward starting (a) 6,000 6 1 Interest rate swaps related to commercial mortgage and commercial construction loans - forward starting (a) 4,000 1 1 Total cash flow hedges 10 13 Total derivatives designated as qualifying hedging instruments 10 45 Derivatives Not Designated as Qualifying Hedging Instruments: Free-standing derivatives – risk management and other business purposes: Interest rate contracts related to MSR portfolio 3,205 81 — Forward contracts related to residential mortgage loans measured at fair value (b) 650 — 5 Swap associated with the sale of Visa, Inc. Class B Shares 4,178 — 168 Foreign exchange contracts 190 — 4 Interest-only strips 39 1 — Interest rate contracts for collateral management 5,000 1 1 Interest rate contracts for LIBOR transition 597 — — Other 30 — — Total free-standing derivatives – risk management and other business purposes 83 178 Free-standing derivatives – customer accommodation: Interest rate contracts (c)(d) 95,079 885 1,162 Interest rate lock commitments 252 5 — Commodity contracts 17,621 1,051 1,018 TBA securities 27 — — Foreign exchange contracts 37,734 643 596 Total free-standing derivatives – customer accommodation 2,584 2,776 Total derivatives not designated as qualifying hedging instruments 2,667 2,954 Total $ 2,677 2,999 (a) Forward starting swaps will become effective on various dates between June 2024 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 in addition to certain portfolio residential mortgage loans measured at fair value. (c) Derivative assets and liabilities are presented net of variation margin of $335 and $58, respectively. (d) Includes replacement contracts with a notional amount of approximately $675 million which were the result of certain central clearing parties replacing existing LIBOR-based contracts with multiple separate contracts as part of the LIBOR transition. |
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | The following table reflects the changes in fair value of interest rate contracts, designated as fair value hedges and the changes in fair value of the related hedged items attributable to the risk being hedged, as well as the line items in the Condensed Consolidated Statements of Income in which the corresponding gains or losses are recorded: Condensed Consolidated For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Long-term debt: Change in fair value of interest rate swaps hedging long-term debt Interest on long-term debt $ (23) (131) (114) (39) Change in fair value of hedged long-term debt attributable to the risk being hedged Interest on long-term debt 23 131 114 42 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 June 30, December 31, Long-term debt: Carrying amount of the hedged items Long-term debt $ 5,786 5,899 Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items Long-term debt (152) (38) 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 (10) (11) |
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | The following table presents the pre-tax net 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 For the six months ended ($ in millions) 2024 2023 2024 2023 Amount of pre-tax net losses recognized in OCI $ (145) (454) (557) (177) Amount of pre-tax net losses reclassified from OCI into net income (90) (81) (179) (146) |
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 For the six months ended ($ in millions) 2024 2023 2024 2023 Interest rate contracts: Interest rate contracts related to MSR portfolio Mortgage banking net revenue $ (16) (56) (62) (35) Forward contracts related to residential mortgage loans measured at fair value Mortgage banking net revenue 1 11 6 3 Interest-only strips Other noninterest income — (3) — (3) Foreign exchange contracts: Foreign exchange contracts for risk management purposes Other noninterest income 2 (3) 7 (3) Equity contracts: Swap associated with sale of Visa, Inc. Class B Shares Other noninterest income (23) (30) (40) (61) |
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) June 30, December 31, Pass $ 3,013 3,168 Special mention 165 323 Substandard 168 72 Total $ 3,346 3,563 |
Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accommodation | The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table: Condensed Consolidated For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Interest rate contracts: Interest rate contracts for customers (contract revenue) Commercial banking revenue $ 6 11 11 21 Interest rate contracts for customers (credit portion of fair value adjustment) Other noninterest expense 1 2 3 (2) Interest rate lock commitments Mortgage banking net revenue 11 13 20 26 Commodity contracts: Commodity contracts for customers (contract revenue) Commercial banking revenue 4 11 8 21 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 23 23 40 43 Foreign exchange contracts for customers (contract revenue) Other noninterest income (12) (4) (8) (8) Foreign exchange contracts for customers (credit portion of fair value adjustment) Other noninterest expense — 1 — 3 |
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 June 30, 2024 Derivative assets $ 2,855 (1,494) (837) 524 Derivative liabilities 3,283 (1,494) (187) 1,602 As of December 31, 2023 Derivative assets $ 2,672 (1,031) (877) 764 Derivative liabilities 2,999 (1,031) (159) 1,809 (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) | 6 Months Ended |
Jun. 30, 2024 | |
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) June 30, December 31, FHLB advances $ 3,000 2,500 Securities sold under repurchase agreements 300 330 Derivative collateral 35 3 Other borrowed money 35 28 Total other short-term borrowings $ 3,370 2,861 |
Capital Actions (Tables)
Capital Actions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024: Repurchase Date Amount Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Final Settlement Date June 12, 2024 $ 125 3,011,621 496,767 3,508,388 June 27, 2024 The following table presents a summary of the Bancorp’s accelerated share repurchase transaction that was entered into and settled after June 30, 2024: Repurchase Date Amount Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Final Settlement Date July 23, 2024 $ 200 4,160,548 713,340 4,873,888 August 5, 2024 |
Commitments, Contingent Liabi_2
Commitments, Contingent Liabilities and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Significant Commitments | The following table reflects a summary of significant commitments as of: ($ in millions) June 30, December 31, Commitments to extend credit $ 79,884 81,570 Letters of credit 2,029 2,095 Forward contracts related to residential mortgage loans measured at fair value 1,271 650 Capital commitments for private equity investments 203 170 Capital expenditures 98 95 Purchase obligations 47 69 |
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) June 30, December 31, Pass $ 77,984 79,593 Special mention 903 1,301 Substandard 995 676 Doubtful 2 — Total commitments to extend credit $ 79,884 81,570 |
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 June 30, 2024: ($ in millions) Less than 1 year (a) $ 980 1 - 5 years (a) 1,042 Over 5 years 7 Total letters of credit $ 2,029 (a) Includes $7 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) June 30, December 31, Pass $ 1,855 1,902 Special mention 66 81 Substandard 106 112 Doubtful 2 — Total letters of credit $ 2,029 2,095 |
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 Q2 2023 500 21 Q3 2023 150 6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale debt securities arising during period $ (5) 4 (1) Reclassification adjustment for net losses on available-for-sale debt securities included in net income 4 (1) 3 Net unrealized losses on available-for-sale debt securities (1) 3 2 (3,488) 2 (3,486) Amortization of unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities included in net income 32 (7) 25 Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities 32 (7) 25 (760) 25 (735) Unrealized holding losses on cash flow hedge derivatives arising during period (145) 36 (109) Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 90 (21) 69 Net unrealized losses on cash flow hedge derivatives (55) 15 (40) (619) (40) (659) Reclassification of amounts to net periodic benefit costs — — — Defined benefit pension plans, net — — — (17) — (17) Other — — — (4) — (4) Total $ (24) 11 (13) (4,888) (13) (4,901) Total OCI Total AOCI June 30, 2023 ($ in millions) Pre-tax Tax Net Beginning Net Ending Unrealized holding losses on available-for-sale debt securities arising during period $ (831) 198 (633) Reclassification adjustment for net gains on available-for-sale debt securities included in net income — — — Net unrealized losses on available-for-sale debt securities (831) 198 (633) (3,989) (633) (4,622) Unrealized holding losses on cash flow hedge derivatives arising during period (454) 102 (352) Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 81 (18) 63 Net unrealized losses on cash flow hedge derivatives (373) 84 (289) (233) (289) (522) Reclassification of amounts to net periodic benefit costs 1 — 1 Defined benefit pension plans, net 1 — 1 (19) 1 (18) Other — — — (4) — (4) Total $ (1,203) 282 (921) (4,245) (921) (5,166) The tables below present the activity of the components of OCI and AOCI for the six months ended: Total OCI Total AOCI June 30, 2024 ($ in millions) Pre-tax Tax Effect Net Activity Beginning Balance Net Activity Ending Balance Unrealized holding losses on available-for-sale debt securities arising during period $ (241) 59 (182) Unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities 994 (209) 785 Reclassification adjustment for net losses on available-for-sale debt securities included in net income 7 (2) 5 Net unrealized losses on available-for-sale debt securities 760 (152) 608 (4,094) 608 (3,486) Unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities (994) 209 (785) Amortization of unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities included in net income 64 (14) 50 Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities (930) 195 (735) — (735) (735) Unrealized holding losses on cash flow hedge derivatives arising during period (557) 132 (425) Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 179 (41) 138 Net unrealized losses on cash flow hedge derivatives (378) 91 (287) (372) (287) (659) Reclassification of amounts to net periodic benefit costs — — — Defined benefit pension plans, net — — — (17) — (17) Other — — — (4) — (4) Total $ (548) 134 (414) (4,487) (414) (4,901) Total OCI Total AOCI June 30, 2023 ($ in millions) Pre-tax Tax Effect Net Activity Beginning Balance Net Activity Ending Balance Unrealized holding losses on available-for-sale debt securities arising during period $ (43) 10 (33) Reclassification adjustment for net gains on available-for-sale debt securities included in net income — — — Net unrealized losses on available-for-sale debt securities (43) 10 (33) (4,589) (33) (4,622) Unrealized holding losses on cash flow hedge derivatives arising during period (177) 40 (137) Reclassification adjustment for net losses on cash flow hedge derivatives included in net income 146 (33) 113 Net unrealized losses on cash flow hedge derivatives (31) 7 (24) (498) (24) (522) Net actuarial loss arising during the year — — — Reclassification of amounts to net periodic benefit costs 1 — 1 Defined benefit pension plans, net 1 — 1 (19) 1 (18) Other — — — (4) — (4) Total $ (73) 17 (56) (5,110) (56) (5,166) |
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 For the six months ended ($ in millions) 2024 2023 2024 2023 Net unrealized losses on available-for-sale debt securities: (a) Net losses included in net income Securities gains, net $ (4) — (7) — Income before income taxes (4) — (7) — Applicable income tax expense 1 — 2 — Net income (3) — (5) — Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities: (a) Net losses included in net income Interest on securities (32) — (64) — Income before income taxes (32) — (64) — Applicable income tax expense 7 — 14 — Net income (25) — (50) — Net unrealized losses on cash flow hedge derivatives: (a) Interest rate contracts related to C&I, commercial mortgage and commercial construction loans Interest and fees on loans and leases (90) (81) (179) (146) Income before income taxes (90) (81) (179) (146) Applicable income tax expense 21 18 41 33 Net income (69) (63) (138) (113) Net periodic benefit costs: (a) Amortization of net actuarial loss Compensation and benefits (b) — (1) — (1) Income before income taxes — (1) — (1) Applicable income tax expense — — — — Net income — (1) — (1) Total reclassifications for the period Net income $ (97) (64) (193) (114) (a) Amounts in parentheses indicate reductions to net income. (b) 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, 2023 for further information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: For the three months ended For the six months ended ($ in millions, except per share data) 2024 2023 2024 2023 Net income available to common shareholders $ 561 562 $ 1,041 1,097 Average common shares outstanding - basic 687 684 686 684 Effect of dilutive stock-based awards 4 2 5 4 Average common shares outstanding - diluted $ 691 686 $ 691 688 Earnings per share - basic $ 0.82 0.82 $ 1.52 1.60 Earnings per share - diluted 0.81 0.82 1.51 1.59 Anti-dilutive stock-based awards excluded from diluted shares 2 9 2 6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 ($ 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 $ 3,506 — — 3,506 Obligations of states and political subdivisions securities — 2 — 2 Mortgage-backed securities: Agency residential mortgage-backed securities — 4,757 — 4,757 Agency commercial mortgage-backed securities — 21,155 — 21,155 Non-agency commercial mortgage-backed securities — 4,403 — 4,403 Asset-backed securities and other debt securities — 4,369 — 4,369 Available-for-sale debt and other securities (a) 3,506 34,686 — 38,192 Trading debt securities: U.S. Treasury and federal agencies securities 592 9 — 601 Obligations of states and political subdivisions securities — 84 — 84 Agency residential mortgage-backed securities — 7 — 7 Asset-backed securities and other debt securities — 440 — 440 Trading debt securities 592 540 — 1,132 Equity securities 450 26 — 476 Residential mortgage loans held for sale — 512 — 512 Residential mortgage loans (b) — — 109 109 Servicing rights — — 1,731 1,731 Derivative assets: Interest rate contracts 2 941 6 949 Foreign exchange contracts — 1,128 — 1,128 Commodity contracts 69 714 — 783 Derivative assets (c) 71 2,783 6 2,860 Total assets $ 4,619 38,547 1,846 45,012 Liabilities: Derivative liabilities: Interest rate contracts $ 2 1,246 6 1,254 Foreign exchange contracts — 1,092 — 1,092 Equity contracts — — 164 164 Commodity contracts 72 701 — 773 Derivative liabilities (d) 74 3,039 170 3,283 Short positions: U.S. Treasury and federal agencies securities 104 — — 104 Asset-backed securities and other debt securities — 130 — 130 Short positions (d) 104 130 — 234 Total liabilities $ 178 3,169 170 3,517 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $293, $499 and $2, respectively, at June 30, 2024. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. Fair Value Measurements Using December 31, 2023 ($ 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 $ 4,336 — — 4,336 Obligations of states and political subdivisions securities — 2 — 2 Mortgage-backed securities: Agency residential mortgage-backed securities — 10,282 — 10,282 Agency commercial mortgage-backed securities — 25,720 — 25,720 Non-agency commercial mortgage-backed securities — 4,445 — 4,445 Asset-backed securities and other debt securities — 4,912 — 4,912 Available-for-sale debt and other securities (a) 4,336 45,361 — 49,697 Trading debt securities: U.S. Treasury and federal agencies securities 640 7 — 647 Obligations of states and political subdivisions securities — 39 — 39 Agency residential mortgage-backed securities — 6 — 6 Asset-backed securities and other debt securities — 207 — 207 Trading debt securities 640 259 — 899 Equity securities 600 13 — 613 Residential mortgage loans held for sale — 334 — 334 Residential mortgage loans (b) — — 116 116 Servicing rights — — 1,737 1,737 Derivative assets: Interest rate contracts — 977 6 983 Foreign exchange contracts — 643 — 643 Commodity contracts 205 846 — 1,051 Derivative assets (c) 205 2,466 6 2,677 Total assets $ 5,781 48,433 1,859 56,073 Liabilities: Derivative liabilities: Interest rate contracts $ 5 1,202 6 1,213 Foreign exchange contracts — 600 — 600 Equity contracts — — 168 168 Commodity contracts 28 990 — 1,018 Derivative liabilities (d) 33 2,792 174 2,999 Short positions: U.S. Treasury and federal agencies securities 31 — — 31 Asset-backed securities and other debt securities — 76 — 76 Short positions (d) 31 76 — 107 Total liabilities $ 64 2,868 174 3,106 (a) Excludes FHLB, FRB and DTCC restricted stock holdings totaling $224, $496 and $2, respectively, at December 31, 2023. (b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. (c) Included in other assets in the Condensed Consolidated Balance Sheets. (d) Included in other liabilities in the Condensed Consolidated Balance Sheets. |
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended June 30, 2024 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 113 1,756 — (162) 1,707 Total (losses) gains (realized/unrealized): (b) Included in earnings (1) (30) 12 (23) (42) Purchases/originations — 10 — — 10 Sales — (5) — — (5) Settlements (4) — (12) 21 5 Transfers into Level 3 (c) 1 — — — 1 Balance, end of period $ 109 1,731 — (164) 1,676 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 June 30, 2024 $ (1) 7 5 (23) (12) (a) Net interest rate derivatives include $6 for both derivative assets and liabilities as of June 30, 2024. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2024. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the three months ended June 30, 2023 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 128 1,725 3 (192) 1,664 Total (losses) gains (realized/unrealized): (b) Included in earnings (1) 13 11 (30) (7) Purchases/originations — 26 — — 26 Settlements (3) — (12) 18 3 Transfers into Level 3 (c) — — — — — Balance, end of period $ 124 1,764 2 (204) 1,686 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 June 30, 2023 $ (1) 33 6 (30) 8 (a) Net interest rate derivatives include derivative assets and liabilities of $10 and $8, respectively, as of June 30, 2023. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2023. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the six months ended June 30, 2024 ($ in millions) Residential Servicing Interest Rate Derivatives, Net (a) Equity Total Balance, beginning of period $ 116 1,737 — (168) 1,685 Total (losses) gains (realized/unrealized): (b) Included in earnings (3) (22) 21 (40) (44) Purchases/originations — 21 (1) — 20 Sales — (5) — — (5) Settlements (6) — (20) 44 18 Transfers into Level 3 (c) 2 — — — 2 Balance, end of period $ 109 1,731 — (164) 1,676 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 June 30, 2024 $ (3) 35 6 (40) (2) (a) Net interest rate derivatives include $6 for both derivative assets and liabilities as of June 30, 2024. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2024. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the six months ended June 30, 2023 ($ 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 1 (40) 25 (61) (75) Purchases/originations — 58 (2) — 56 Settlements (5) — (20) 52 27 Transfers into Level 3 (c) 5 — — — 5 Balance, end of period $ 124 1,764 2 (204) 1,686 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 June 30, 2023 $ 1 (3) 6 (61) (57) (a) Net interest rate derivatives include derivative assets and liabilities of $10 and $8, respectively, as of June 30, 2023. (b) There were no unrealized gains or losses for the period included in other comprehensive income for instruments still held at June 30, 2023. (c) Includes certain residential mortgage loans originated as held for sale that were transferred to held for investment. |
Total Gains and Losses Included in Earnings for Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The total losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Mortgage banking net revenue $ (20) 22 (5) (16) Commercial banking revenue 1 1 1 2 Other noninterest income (23) (30) (40) (61) Total losses $ (42) (7) (44) (75) 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 June 30, 2024 and 2023 were recorded in the Condensed Consolidated Statements of Income as follows: For the three months ended For the six months ended ($ in millions) 2024 2023 2024 2023 Mortgage banking net revenue $ 10 37 37 2 Commercial banking revenue 1 1 1 2 Other noninterest income (23) (30) (40) (61) Total (losses) gains $ (12) 8 (2) (57) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Recurring | The following tables present information as of June 30, 2024 and 2023 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 June 30, 2024 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 109 Loss rate model Interest rate risk factor (26.0) - 5.0% (14.1) % (a) Credit risk factor — - 0.6% 0.1 % (a) Servicing rights 1,731 DCF Prepayment speed — - 100.0% (Fixed) 5.6 % (b) (Adjustable) 22.1 % (b) OAS (bps) 420 - 1,833 (Fixed) 448 (b) (Adjustable) 693 (b) IRLCs, net 5 DCF Loan closing rates 18.8 - 96.0% 82.3 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (164) DCF Timing of the resolution Q4 2026 - Q1 2028 Q2 2027 (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 June 30, 2023 ($ in millions) Financial Instrument Fair Value Valuation Significant Range of Inputs Weighted-Average Residential mortgage loans $ 124 Loss rate model Interest rate risk factor (23.5) - 5.5 % (11.8) % (a) Credit risk factor — - 1.1 % 0.2 % (a) Servicing rights 1,764 DCF Prepayment speed — - 100.0 % (Fixed) 5.2 % (b) (Adjustable) 20.3 % (b) OAS (bps) 477 - 1,447 (Fixed) 628 (b) (Adjustable) 1,204 (b) IRLCs, net 8 DCF Loan closing rates 30.2 - 97.5 % 82.9 % (c) Swap associated with the sale of Visa, Inc. Class B Shares (204) DCF Timing of the resolution Q3 2024 - Q1 2027 Q3 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. |
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 June 30, 2024 and 2023, and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2024 and 2023, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period. Fair Value Measurements Using Total (Losses) Gains As of June 30, 2024 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended June 30, 2024 For the six months ended June 30, 2024 Commercial loans held for sale $ — — 4 4 — — Commercial loans and leases — — 67 67 (44) (104) Consumer and residential mortgage loans — — 196 196 — (3) OREO — — 5 5 (1) (1) Bank premises and equipment — — 3 3 — — Private equity investments — — — — — 9 Total $ — — 275 275 (45) (99) Fair Value Measurements Using Total Losses As of June 30, 2023 ($ in millions) Level 1 Level 2 Level 3 Total For the three months ended June 30, 2023 For the six months ended June 30, 2023 Commercial loans held for sale $ — — 7 7 — — Commercial loans and leases — — 171 171 (21) (97) Consumer and residential mortgage loans — — 193 193 (6) (8) OREO — — 5 5 (1) (1) Bank premises and equipment — — 4 4 — (1) Private equity investments — — — — (1) (2) Total $ — — 380 380 (29) (109) |
Quantitative Information About Significant Unobservable Level 3 Fair Value Measurement Input, Nonrecurring | The following tables present information as of June 30, 2024 and 2023 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 June 30, 2024 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 4 Comparable company analysis Market comparable transactions NM NM Commercial loans and leases 67 Appraised value Collateral value NM NM Consumer and residential mortgage loans 196 Appraised value Collateral value NM NM OREO 5 Appraised value Appraised value NM NM Bank premises and equipment 3 Appraised value Appraised value NM NM Private equity investments — Comparable company analysis Market comparable transactions NM NM As of June 30, 2023 ($ in millions) Financial Instrument Fair Value Valuation Technique Significant Unobservable Inputs Ranges of Weighted-Average Commercial loans held for sale $ 7 Comparable company analysis Market comparable transactions NM NM Commercial loans and leases 171 Appraised value Collateral value NM NM Consumer and residential mortgage loans 193 Appraised value Collateral value NM NM OREO 5 Appraised value Appraised value NM NM Bank premises and equipment 4 Appraised value Appraised value NM NM Private equity investments — 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: June 30, 2024 ($ in millions) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Residential mortgage loans measured at fair value $ 621 628 (7) Past due loans of 30-89 days 1 1 — Nonaccrual loans 2 2 — December 31, 2023 Residential mortgage loans measured at fair value $ 450 456 (6) Past due loans of 30-89 days 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 June 30, 2024 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 2,837 2,837 — — 2,837 Other short-term investments 21,085 21,085 — — 21,085 Other securities 794 — 794 — 794 Held-to-maturity securities 11,443 2,299 8,886 2 11,187 Loans and leases held for sale 25 — — 25 25 Portfolio loans and leases: Commercial loans and leases 70,670 — — 70,953 70,953 Consumer and residential mortgage loans 43,512 — — 40,440 40,440 Total portfolio loans and leases, net $ 114,182 — — 111,393 111,393 Financial liabilities: Deposits $ 166,768 — 166,709 — 166,709 Federal funds purchased 194 194 — — 194 Other short-term borrowings 3,370 — 3,376 — 3,376 Long-term debt 16,445 12,926 3,437 — 16,363 Net Carrying Fair Value Measurements Using Total As of December 31, 2023 ($ in millions) Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 3,142 3,142 — — 3,142 Other short-term investments 22,082 22,082 — — 22,082 Other securities 722 — 722 — 722 Held-to-maturity securities 2 — — 2 2 Loans and leases held for sale 44 — — 44 44 Portfolio loans and leases: Commercial loans and leases 71,616 — — 71,766 71,766 Consumer and residential mortgage loans 43,180 — — 41,410 41,410 Total portfolio loans and leases, net $ 114,796 — — 113,176 113,176 Financial liabilities: Deposits $ 168,912 — 168,873 — 168,873 Federal funds purchased 193 193 — — 193 Other short-term borrowings 2,861 — 2,872 — 2,872 Long-term debt 16,418 14,481 1,903 — 16,384 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 ($ in millions) Commercial Consumer Wealth General Total Net interest income $ 656 1,055 54 (378) 1,387 Provision for (benefit from) credit losses 137 70 — (110) 97 Net interest income after provision for (benefit from) credit losses $ 519 985 54 (268) 1,290 Noninterest income: Wealth and asset management revenue $ 1 62 96 — 159 Service charges on deposits 104 52 — — 156 Commercial banking revenue 142 1 1 — 144 Card and processing revenue 28 79 1 — 108 Mortgage banking net revenue — 50 — — 50 Leasing business revenue 38 — — — 38 Other noninterest income 17 28 — (8) 37 Securities gains (losses), net (7) — — 10 3 Total noninterest income $ 323 272 98 2 695 Noninterest expense: Compensation and benefits $ 156 226 52 222 656 Technology and communications 3 8 — 103 114 Net occupancy expense 9 53 3 18 83 Equipment expense 7 13 — 18 38 Marketing expense 1 19 — 14 34 Leasing business expense 22 — — — 22 Card and processing expense 2 19 — — 21 Other noninterest expense 257 288 38 (330) 253 Total noninterest expense $ 457 626 93 45 1,221 Income (loss) before income taxes $ 385 631 59 (311) 764 Applicable income tax expense (benefit) 65 132 12 (46) 163 Net income (loss) $ 320 499 47 (265) 601 Total goodwill $ 2,324 2,369 225 — 4,918 Total assets $ 77,123 90,242 10,480 35,417 (a) 213,262 (a) Includes bank premises and equipment o f $16 classified as held for sale. For more information, refer to Note 7. June 30, 2023 ($ in millions) Commercial Consumer Wealth General Total Net interest income $ 1,021 1,370 95 (1,029) 1,457 Provision for (benefit from) credit losses (9) 65 — 121 177 Net interest income after provision for (benefit from) credit losses $ 1,030 1,305 95 (1,150) 1,280 Noninterest income: Wealth and asset management revenue $ — 52 89 2 143 Service charges on deposits 92 53 — (1) 144 Commercial banking revenue 147 1 — (2) 146 Card and processing revenue 23 79 1 3 106 Mortgage banking net revenue — 59 — — 59 Leasing business revenue 47 — — — 47 Other noninterest income 28 27 1 18 74 Securities gains (losses), net (1) — — 8 7 Total noninterest income $ 336 271 91 28 726 Noninterest expense: Compensation and benefits $ 153 222 55 220 650 Technology and communications 3 6 — 105 114 Net occupancy expense 10 52 3 18 83 Equipment expense 7 10 — 19 36 Marketing expense 1 18 — 12 31 Leasing business expense 31 — — — 31 Card and processing expense 2 19 — (1) 20 Other noninterest expense 279 305 35 (353) 266 Total noninterest expense $ 486 632 93 20 1,231 Income (loss) before income taxes $ 880 944 93 (1,142) 775 Applicable income tax expense (benefit) 169 198 20 (213) 174 Net income (loss) $ 711 746 73 (929) 601 Total goodwill $ 2,324 2,369 226 — 4,919 Total assets $ 83,238 85,755 10,691 27,592 (a) 207,276 (a) Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7. The following tables present the results of operations and assets by business segment for the six months ended: June 30, 2024 ($ in millions) Commercial Consumer and Small Business Wealth General Total Net interest income $ 1,342 2,180 112 (863) 2,771 Provision for (benefit from) credit losses 208 154 — (171) 191 Net interest income after provision for (benefit from) credit losses $ 1,134 2,026 112 (692) 2,580 Noninterest income: Wealth and asset management revenue $ 2 121 197 — 320 Service charges on deposits 203 103 — — 306 Commercial banking revenue 285 3 1 (1) 288 Card and processing revenue 53 154 1 2 210 Mortgage banking net revenue — 104 — — 104 Leasing business revenue 77 — — — 77 Other noninterest income 34 55 1 (2) 88 Securities gains (losses), net (6) — — 19 13 Total noninterest income $ 648 540 200 18 1,406 Noninterest expense: Compensation and benefits $ 345 460 114 490 1,409 Technology and communications 8 14 — 209 231 Net occupancy expense 18 107 6 39 170 Equipment expense 14 26 — 36 76 Marketing expense 1 42 — 23 66 Leasing business expense 48 — — — 48 Card and processing expense 4 37 1 (1) 41 Other noninterest expense 520 581 74 (654) 521 Total noninterest expense $ 958 1,267 195 142 2,562 Income (loss) before income taxes $ 824 1,299 117 (816) 1,424 Applicable income tax expense (benefit) 136 273 25 (132) 302 Net income (loss) $ 688 1,026 92 (684) 1,122 Total goodwill $ 2,324 2,369 225 — 4,918 Total assets $ 77,123 90,242 10,480 35,417 (a) 213,262 (a) Includes bank premises and equipment of $16 classified as held for sale. For more information, refer to Note 7. June 30, 2023 ($ in millions) Commercial Consumer and Small Business Banking Wealth General Total Net interest income $ 1,997 2,628 196 (1,847) 2,974 Provision for credit losses 37 116 — 188 341 Net interest income after provision for credit losses $ 1,960 2,512 196 (2,035) 2,633 Noninterest income: Wealth and asset management revenue $ 1 106 182 — 289 Service charges on deposits 180 103 — (2) 281 Commercial banking revenue 305 2 — — 307 Card and processing revenue 45 155 1 5 206 Mortgage banking net revenue — 127 — — 127 Leasing business revenue 104 — — — 104 Other noninterest income (a) 44 52 — 1 97 Securities gains (losses), net (8) — — 19 11 Total noninterest income $ 671 545 183 23 1,422 Noninterest expense: Compensation and benefits $ 343 446 116 502 1,407 Technology and communications 5 13 — 214 232 Net occupancy expense (c) 20 104 6 34 164 Equipment expense 14 21 — 38 73 Marketing expense 1 35 1 23 60 Leasing business expense 65 — — — 65 Card and processing expense 5 38 — (1) 42 Other noninterest expense 583 619 71 (754) 519 Total noninterest expense $ 1,036 1,276 194 56 2,562 Income (loss) before income taxes $ 1,595 1,781 185 (2,068) 1,493 Applicable income tax expense (benefit) 305 373 39 (383) 334 Net income (loss) $ 1,290 1,408 146 (1,685) 1,159 Total goodwill $ 2,324 2,369 226 — 4,919 Total assets $ 83,238 85,755 10,691 27,592 (b) 207,276 (a) Includes impairment charges of $1 for bank premises and equipment recorded in Consumer and Small Business Banking. For more information, refer to Note 7 and Note 22. (b) Includes bank premises and equipment of $22 classified as held for sale. For more information, refer to Note 7. (c) Includes impairment losses and termination charges of $1 for ROU assets related to certain operating leases. For more information, refer to Note 9. |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Summary of Accelerated Share Repurchase Transaction | The following table presents a summary of the Bancorp’s accelerated share repurchase transaction that was entered into and settled during the six months ended June 30, 2024: Repurchase Date Amount Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Final Settlement Date June 12, 2024 $ 125 3,011,621 496,767 3,508,388 June 27, 2024 The following table presents a summary of the Bancorp’s accelerated share repurchase transaction that was entered into and settled after June 30, 2024: Repurchase Date Amount Shares Repurchased on Repurchase Date Shares Received from Forward Contract Settlement Total Shares Repurchased Final Settlement Date July 23, 2024 $ 200 4,160,548 713,340 4,873,888 August 5, 2024 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Payments: | ||
Interest | $ 2,492 | $ 1,474 |
Income taxes | 79 | 337 |
Transfers: | ||
Portfolio loans and leases to loans and leases held for sale | 135 | 67 |
Loans and leases held for sale to portfolio loans and leases | 2 | 5 |
Portfolio loans and leases to OREO | 9 | 5 |
Bank premises and equipment to OREO | 6 | 14 |
Available-for-sale debt securities to held-to-maturity securities | 11,593 | 0 |
Supplemental Disclosures: | ||
Net additions to lease liabilities under operating leases | 41 | 32 |
Net additions (reductions) to lease liabilities under finance leases | $ 45 | $ (1) |
Accounting and Reporting Deve_2
Accounting and Reporting Developments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jan. 01, 2024 | Dec. 31, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (23,542) | $ (22,997) | |
Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 10 |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Available-for-sale debt and other securities: | ||
Amortized Cost | $ 43,596 | $ 55,789 |
Unrealized Gains | 7 | 9 |
Unrealized Losses | (4,617) | (5,379) |
Fair Value | 38,986 | 50,419 |
Held-to-maturity securities: | ||
Amortized Cost | 11,443 | 2 |
Unrealized Gains | 4 | 0 |
Unrealized Losses | (260) | 0 |
Fair Value | 11,187 | 2 |
Trading debt securities | 1,132 | 899 |
Equity securities | 476 | 613 |
U.S. Treasury and federal agencies securities | ||
Available-for-sale debt and other securities: | ||
Amortized Cost | 3,504 | 4,477 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | 0 | (142) |
Fair Value | 3,506 | 4,336 |
Held-to-maturity securities: | ||
Amortized Cost | 2,338 | |
Unrealized Gains | 0 | |
Unrealized Losses | (39) | |
Fair Value | 2,299 | |
Obligations of states and political subdivisions securities | ||
Available-for-sale debt and other securities: | ||
Amortized Cost | 2 | 2 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 2 | 2 |
Agency mortgage-backed securities | Residential mortgage backed securities | ||
Available-for-sale debt and other securities: | ||
Amortized Cost | 5,556 | 11,564 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (799) | (1,282) |
Fair Value | 4,757 | 10,282 |
Held-to-maturity securities: | ||
Amortized Cost | 5,092 | |
Unrealized Gains | 0 | |
Unrealized Losses | (160) | |
Fair Value | 4,932 | |
Agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Available-for-sale debt and other securities: | ||
Amortized Cost | 24,315 | 28,945 |
Unrealized Gains | 0 | 5 |
Unrealized Losses | (3,160) | (3,230) |
Fair Value | 21,155 | 25,720 |
Held-to-maturity securities: | ||
Amortized Cost | 4,011 | |
Unrealized Gains | 4 | |
Unrealized Losses | (61) | |
Fair Value | 3,954 | |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Available-for-sale debt and other securities: | ||
Amortized Cost | 4,816 | 4,872 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (413) | (427) |
Fair Value | 4,403 | 4,445 |
Asset-backed securities and other debt securities | ||
Available-for-sale debt and other securities: | ||
Amortized Cost | 4,609 | 5,207 |
Unrealized Gains | 5 | 3 |
Unrealized Losses | (245) | (298) |
Fair Value | 4,369 | 4,912 |
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 | 794 | 722 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 794 | 722 |
Held-to-maturity securities: | ||
FHLB, restricted stock holdings | 293 | 224 |
FRB, restricted stock holdings | 499 | 496 |
DTCC, restricted stock holdings | $ 2 | $ 2 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Summary of Investment Holdings [Line Items] | ||||||
Accrued interest receivables on investment securities | $ 158 | $ 158 | $ 146 | |||
Transfer of available-for-sale securities to held-to-maturity | $ 12,600 | |||||
OCI, available-for-sale debt securities transferred to held-to-maturity, pretax unrealized losses | $ 994 | |||||
Impairment losses | 5 | $ 4 | 10 | $ 4 | ||
Securities with a fair value, pledged as collateral | 31,300 | 31,300 | 25,200 | |||
Unrealized losses | 4,617 | 4,617 | 5,379 | |||
Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities | 3 | 7 | 13 | 11 | ||
Commercial Banking Revenue and Wealth and Asset Management Revenue | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities | 0 | $ (1) | 2 | $ 0 | ||
Available-for-sale debt securities transferred to held-to-maturity securities | ||||||
Summary of Investment Holdings [Line Items] | ||||||
AOCI offset, unamortized portion of unrealized losses on securities | 930 | 930 | ||||
Non-rated Securities | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Unrealized losses | 37 | 37 | 45 | |||
Other Debt Obligations [Member] | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Securities gains (losses) | 293 | 293 | 224 | |||
FRB, restricted stock holdings | 499 | 499 | 496 | |||
DTCC, restricted stock holdings | $ 2 | $ 2 | $ 2 |
Investment Securities - Gains a
Investment Securities - Gains and Losses Recognized in Income from Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Available-for-sale debt and other securities: | ||||
Realized gains | $ 1 | $ 4 | $ 3 | $ 34 |
Realized losses | 0 | 0 | 0 | (30) |
Impairment losses | (5) | (4) | (10) | (4) |
Net losses on available-for-sale debt and other securities | (4) | 0 | (7) | 0 |
Trading debt securities: | ||||
Net realized losses | 0 | 0 | 0 | 0 |
Net unrealized gains | 0 | 2 | 0 | 2 |
Net trading debt securities gains | 0 | 2 | 0 | 2 |
Equity securities: | ||||
Net realized gains | 11 | 1 | 11 | 2 |
Net unrealized gains (losses) | (4) | 4 | 9 | 7 |
Net equity securities gains | 7 | 5 | 20 | 9 |
Total (losses) gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities | 3 | 7 | 13 | 11 |
Commercial Banking Revenue and Wealth and Asset Management Revenue | ||||
Equity securities: | ||||
Total (losses) gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities | $ 0 | $ (1) | $ 2 | $ 0 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Available-for-Sale Debt and Held-to-Maturity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Available-for-Sale Debt and Other, Amortized Cost | ||
Due in 1 year or less | $ 904 | |
Due after 1 year through 5 years | 18,452 | |
Due after 5 years through 10 years | 15,740 | |
Due after 10 years | 7,706 | |
Other securities | 794 | |
Amortized Cost | 43,596 | $ 55,789 |
Available-for-Sale Debt and Other, Fair Value | ||
Due in 1 year or less | 875 | |
Due after 1 year through 5 years | 17,404 | |
Due after 5 years through 10 years | 13,343 | |
Due after 10 years | 6,570 | |
Other securities | 794 | |
Fair Value | 38,986 | 50,419 |
Held-to-Maturity, Amortized Cost | ||
Due in 1 year or less | 38 | |
Due after 1 year through 5 years | 2,930 | |
Due after 5 years through 10 years | 7,995 | |
Due after 10 years | 480 | |
Other securities | 0 | |
Amortized Cost | 11,443 | 2 |
Held-to-Maturity, Fair Value | ||
Due in 1 year or less | 38 | |
Due after 1 year through 5 years | 2,882 | |
Due after 5 years through 10 years | 7,787 | |
Due after 10 years | 480 | |
Other securities | 0 | |
Fair Value | $ 11,187 | $ 2 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Gross Unrealized Losses on Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value | ||
Less than 12 months | $ 4,575 | $ 7,990 |
12 months or more | 30,266 | 40,782 |
Total | 34,841 | 48,772 |
Unrealized Losses | ||
Less than 12 months | (450) | (580) |
12 months or more | (4,167) | (4,799) |
Total | (4,617) | (5,379) |
U.S. Treasury and federal agencies securities | ||
Fair Value | ||
Less than 12 months | 730 | 1,989 |
12 months or more | 0 | 2,157 |
Total | 730 | 4,146 |
Unrealized Losses | ||
Less than 12 months | 0 | (3) |
12 months or more | 0 | (139) |
Total | 0 | (142) |
Agency mortgage-backed securities | Residential mortgage backed securities | ||
Fair Value | ||
Less than 12 months | 0 | 81 |
12 months or more | 4,756 | 10,200 |
Total | 4,756 | 10,281 |
Unrealized Losses | ||
Less than 12 months | 0 | (2) |
12 months or more | (799) | (1,280) |
Total | (799) | (1,282) |
Agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 3,709 | 5,439 |
12 months or more | 17,320 | 19,957 |
Total | 21,029 | 25,396 |
Unrealized Losses | ||
Less than 12 months | (448) | (556) |
12 months or more | (2,712) | (2,674) |
Total | (3,160) | (3,230) |
Non-agency mortgage-backed securities | Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 months | 35 | 141 |
12 months or more | 4,368 | 4,284 |
Total | 4,403 | 4,425 |
Unrealized Losses | ||
Less than 12 months | (1) | (2) |
12 months or more | (412) | (425) |
Total | (413) | (427) |
Asset-backed securities and other debt securities | ||
Fair Value | ||
Less than 12 months | 101 | 340 |
12 months or more | 3,822 | 4,184 |
Total | 3,923 | 4,524 |
Unrealized Losses | ||
Less than 12 months | (1) | (17) |
12 months or more | (244) | (281) |
Total | $ (245) | $ (298) |
Loans and Leases - Loans and Le
Loans and Leases - Loans and Leases Classified by Primary Purpose (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Loans and leases held for sale: | |||
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | $ 537 | $ 378 | |
Portfolio loans and leases: | |||
Total portfolio loans and leases | [1] | 116,579 | 117,234 |
Commercial | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 71,783 | 72,746 | |
Commercial | Commercial and industrial loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 22 | 41 | |
Portfolio loans and leases: | |||
Total portfolio loans and leases | 51,840 | 53,270 | |
Commercial | Commercial leases | |||
Loans and leases held for sale: | |||
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 3 | 3 | |
Portfolio loans and leases: | |||
Total portfolio loans and leases | 2,708 | 2,579 | |
Commercial | Commercial mortgage loans | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 11,429 | 11,276 | |
Commercial | Commercial construction loans | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 5,806 | 5,621 | |
Consumer | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 44,796 | 44,488 | |
Consumer | Residential mortgage loans | |||
Loans and leases held for sale: | |||
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 512 | 334 | |
Portfolio loans and leases: | |||
Total portfolio loans and leases | 17,040 | 17,026 | |
Consumer | Home equity | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 3,969 | 3,916 | |
Consumer | Indirect secured consumer loans | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 15,442 | 14,965 | |
Consumer | Credit card | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 1,733 | 1,865 | |
Consumer | Solar energy installation loans | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | 3,951 | 3,728 | |
Consumer | Other consumer loans | |||
Portfolio loans and leases: | |||
Total portfolio loans and leases | $ 2,661 | $ 2,988 | |
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Loans and Leases - Additional I
Loans and Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | ||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Unearned income | $ 289 | $ 289 | $ 272 | ||||||||
Net discount | 360 | 360 | 395 | ||||||||
Accrued interest receivable | 605 | 605 | 593 | ||||||||
Direct financing lease - interest income | 9 | $ 7 | 19 | $ 13 | |||||||
Sales type lease - interest income | 19 | 16 | 37 | 31 | |||||||
Allowance for loan and lease losses | 2,288 | [1] | $ 2,327 | 2,288 | [1] | $ 2,327 | $ 2,318 | 2,322 | [1] | $ 2,215 | $ 2,194 |
Solar energy installation loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Net discount | 881 | 881 | 865 | ||||||||
Commercial Leases | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Allowance for loan and lease losses | 14 | 14 | 13 | ||||||||
Federal Home Loan Bank Advances | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Loans pledged | 14,600 | 14,600 | 14,500 | ||||||||
FRB Loan | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Loans pledged | $ 52,900 | $ 52,900 | $ 49,300 | ||||||||
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Loans and Leases - Total Loans
Loans and Leases - Total Loans and Leases Managed by the Bancorp (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | $ 117,116 | $ 117,612 | |
90 Days Past Due and Still Accruing | 33 | 36 | |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 537 | 378 | |
Total portfolio loans and leases | [1] | 116,579 | 117,234 |
Commercial | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Total portfolio loans and leases | 71,783 | 72,746 | |
Commercial | Commercial and industrial loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 51,862 | 53,311 | |
90 Days Past Due and Still Accruing | 3 | 8 | |
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 | 11,429 | 11,276 | |
90 Days Past Due and Still Accruing | 1 | 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 | 5,806 | 5,621 | |
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 | 2,711 | 2,582 | |
90 Days Past Due and Still Accruing | 4 | 0 | |
Consumer | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Total portfolio loans and leases | 44,796 | 44,488 | |
Consumer | 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 | 17,552 | 17,360 | |
90 Days Past Due and Still Accruing | 8 | 7 | |
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 | 3,969 | 3,916 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
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 | 15,442 | 14,965 | |
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 | 1,733 | 1,865 | |
90 Days Past Due and Still Accruing | 17 | 21 | |
Consumer | Solar energy installation loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 3,951 | 3,728 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Consumer | Other consumer loans | |||
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | |||
Carrying Value | 2,661 | 2,988 | |
90 Days Past Due and Still Accruing | $ 0 | $ 0 | |
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Loans and Leases - Net Charge-O
Loans and Leases - Net Charge-Offs (Recoveries) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ||||
Net charge-offs (recoveries) | $ 144 | $ 90 | $ 254 | $ 168 |
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) | 80 | 32 | 115 | 62 |
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) | 0 | 0 | 0 | 1 |
Consumer | 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 | 0 | (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) | (1) | 1 | 0 | 0 |
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) | 17 | 16 | 42 | 29 |
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) | 17 | 16 | 36 | 31 |
Consumer | Solar energy installation 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) | 12 | 7 | 24 | 9 |
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) | $ 19 | $ 18 | $ 38 | $ 36 |
Loans and Leases - Components o
Loans and Leases - Components of Net Investment in Leases (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Net investment in sales-type leases: | ||
Leveraged leases | $ 246 | $ 249 |
Direct Financing Leases | ||
Net investment in direct financing leases: | ||
Lease payment receivable (present value) | 602 | 556 |
Unguaranteed residual assets (present value) | 120 | 105 |
Sales-Type Leases | ||
Net investment in sales-type leases: | ||
Lease payment receivable (present value) | 1,658 | 1,585 |
Unguaranteed residual assets (present value) | $ 82 | $ 84 |
Loans and Leases - Undiscounted
Loans and Leases - Undiscounted Cash Flows (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Direct Financing Leases | |
Accounts, Notes, Loans and Financing Receivable | |
Remainder of 2024 | $ 93 |
2025 | 177 |
2026 | 147 |
2027 | 111 |
2028 | 59 |
2029 | 35 |
Thereafter | 41 |
Total undiscounted cash flows | 663 |
Less: Difference between undiscounted cash flows and discounted cash flows | 61 |
Present value of lease payments (recognized as lease receivables) | 602 |
Sales-Type Leases | |
Accounts, Notes, Loans and Financing Receivable | |
Remainder of 2024 | 259 |
2025 | 532 |
2026 | 366 |
2027 | 294 |
2028 | 194 |
2029 | 78 |
Thereafter | 70 |
Total undiscounted cash flows | 1,793 |
Less: Difference between undiscounted cash flows and discounted cash flows | 135 |
Present value of lease payments (recognized as lease receivables) | $ 1,658 |
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 | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance, beginning of period | $ 2,318 | $ 2,215 | $ 2,322 | [1] | $ 2,194 | $ 2,194 | |||
Losses charged off | (182) | (121) | (328) | (231) | |||||
Recoveries of losses previously charged off | 38 | 31 | 74 | 63 | |||||
Provision for (benefit from) loan and lease losses | 114 | 202 | 220 | 350 | |||||
Balance, end of period | 2,288 | [1] | 2,327 | 2,288 | [1] | 2,327 | $ 2,322 | [1] | $ 2,194 |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2023-02 [Member] | Accounting Standards Update 2022-02 [Member] | |||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance, beginning of period | (49) | $ (49) | |||||||
Balance, end of period | $ (49) | ||||||||
Other Consumer Loans, Point of Sale | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Losses charged off | (7) | (8) | (15) | (17) | |||||
Recoveries of losses previously charged off | 7 | 8 | 15 | 17 | |||||
Commercial | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance, beginning of period | 1,141 | 1,143 | 1,130 | 1,127 | 1,127 | ||||
Losses charged off | (83) | (35) | (123) | (69) | |||||
Recoveries of losses previously charged off | 3 | 3 | 8 | 6 | |||||
Provision for (benefit from) loan and lease losses | 52 | 88 | 98 | 131 | |||||
Balance, end of period | 1,113 | 1,199 | 1,113 | 1,199 | 1,130 | 1,127 | |||
Commercial | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance, beginning of period | 4 | 4 | |||||||
Balance, end of period | 4 | ||||||||
Residential Mortgage | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance, beginning of period | 140 | 185 | 145 | 245 | 245 | ||||
Losses charged off | (1) | (1) | (1) | (2) | |||||
Recoveries of losses previously charged off | 1 | 1 | 2 | 2 | |||||
Provision for (benefit from) loan and lease losses | (4) | (12) | (10) | (36) | |||||
Balance, end of period | 136 | 173 | 136 | 173 | 145 | 245 | |||
Residential Mortgage | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance, beginning of period | (36) | (36) | |||||||
Balance, end of period | (36) | ||||||||
Consumer | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance, beginning of period | 1,037 | 887 | 1,047 | 822 | 822 | ||||
Losses charged off | (98) | (85) | (204) | (160) | |||||
Recoveries of losses previously charged off | 34 | 27 | 64 | 55 | |||||
Provision for (benefit from) loan and lease losses | 66 | 126 | 132 | 255 | |||||
Balance, end of period | $ 1,039 | $ 955 | $ 1,039 | 955 | 1,047 | 822 | |||
Consumer | Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||||||
Balance, beginning of period | $ (17) | $ (17) | |||||||
Balance, end of period | $ (17) | ||||||||
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Credit Quality and the Allowa_4
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated | $ 93 | $ 96 | ||||||
Collectively evaluated | 2,195 | 2,226 | ||||||
Total ALLL | 2,288 | [1] | $ 2,318 | 2,322 | [1] | $ 2,327 | $ 2,215 | $ 2,194 |
Individually evaluated | 416 | 476 | ||||||
Collectively evaluated | 116,054 | 116,642 | ||||||
Total portfolio loans and leases | 116,470 | 117,118 | ||||||
Leveraged leases | 246 | 249 | ||||||
Commercial Leveraged Leases | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Total ALLL | 2 | 2 | ||||||
Commercial | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated | 88 | 90 | ||||||
Collectively evaluated | 1,025 | 1,040 | ||||||
Total ALLL | 1,113 | 1,141 | 1,130 | 1,199 | 1,143 | 1,127 | ||
Individually evaluated | 215 | 281 | ||||||
Collectively evaluated | 71,568 | 72,465 | ||||||
Total portfolio loans and leases | 71,783 | 72,746 | ||||||
Residential Mortgage | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated | 0 | 0 | ||||||
Collectively evaluated | 136 | 145 | ||||||
Total ALLL | 136 | 140 | 145 | 173 | 185 | 245 | ||
Individually evaluated | 129 | 126 | ||||||
Collectively evaluated | 16,802 | 16,784 | ||||||
Total portfolio loans and leases | 16,931 | 16,910 | ||||||
Residential mortgage loans | 109 | 116 | 124 | |||||
Consumer | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated | 5 | 6 | ||||||
Collectively evaluated | 1,034 | 1,041 | ||||||
Total ALLL | 1,039 | $ 1,037 | 1,047 | $ 955 | $ 887 | $ 822 | ||
Individually evaluated | 72 | 69 | ||||||
Collectively evaluated | 27,684 | 27,393 | ||||||
Total portfolio loans and leases | $ 27,756 | $ 27,462 | ||||||
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Credit Quality and the Allowa_5
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Modifications | |||
Total portfolio loans and leases | [1] | $ 116,579 | $ 117,234 |
Commercial | |||
Financing Receivable, Modifications | |||
Year One | 2,915 | 5,105 | |
Year Two | 4,315 | 6,197 | |
Year Three | 5,340 | 3,499 | |
Year Four | 3,022 | 1,650 | |
Year Five | 1,458 | 1,099 | |
Prior | 2,288 | 1,730 | |
Revolving Loans | 52,445 | 53,466 | |
Total portfolio loans and leases | 71,783 | 72,746 | |
Commercial | Pass | |||
Financing Receivable, Modifications | |||
Year One | 2,733 | 4,649 | |
Year Two | 4,016 | 5,759 | |
Year Three | 4,908 | 3,328 | |
Year Four | 2,863 | 1,579 | |
Year Five | 1,401 | 990 | |
Prior | 2,001 | 1,494 | |
Revolving Loans | 48,196 | 49,710 | |
Total portfolio loans and leases | 66,118 | 67,509 | |
Commercial | Special mention | |||
Financing Receivable, Modifications | |||
Year One | 75 | 158 | |
Year Two | 91 | 298 | |
Year Three | 278 | 90 | |
Year Four | 40 | 38 | |
Year Five | 6 | 20 | |
Prior | 106 | 121 | |
Revolving Loans | 1,850 | 2,056 | |
Total portfolio loans and leases | 2,446 | 2,781 | |
Commercial | Substandard | |||
Financing Receivable, Modifications | |||
Year One | 107 | 298 | |
Year Two | 208 | 140 | |
Year Three | 154 | 81 | |
Year Four | 119 | 33 | |
Year Five | 51 | 89 | |
Prior | 181 | 115 | |
Revolving Loans | 2,379 | 1,694 | |
Total portfolio loans and leases | 3,199 | 2,450 | |
Commercial | 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 | 20 | 6 | |
Total portfolio loans and leases | 20 | 6 | |
Commercial | Commercial and industrial loans | |||
Financing Receivable, Modifications | |||
Year One | 1,424 | 2,245 | |
Year Two | 1,890 | 3,637 | |
Year Three | 2,988 | 1,902 | |
Year Four | 1,652 | 631 | |
Year Five | 574 | 308 | |
Prior | 655 | 499 | |
Revolving Loans | 42,657 | 44,048 | |
Total portfolio loans and leases | 51,840 | 53,270 | |
Commercial | Commercial and industrial loans | Pass | |||
Financing Receivable, Modifications | |||
Year One | 1,357 | 2,124 | |
Year Two | 1,763 | 3,434 | |
Year Three | 2,761 | 1,814 | |
Year Four | 1,552 | 580 | |
Year Five | 532 | 263 | |
Prior | 479 | 321 | |
Revolving Loans | 39,476 | 40,889 | |
Total portfolio loans and leases | 47,920 | 49,425 | |
Commercial | Commercial and industrial loans | Special mention | |||
Financing Receivable, Modifications | |||
Year One | 32 | 16 | |
Year Two | 62 | 100 | |
Year Three | 117 | 60 | |
Year Four | 20 | 33 | |
Year Five | 3 | 6 | |
Prior | 77 | 105 | |
Revolving Loans | 1,334 | 1,756 | |
Total portfolio loans and leases | 1,645 | 2,076 | |
Commercial | Commercial and industrial loans | Substandard | |||
Financing Receivable, Modifications | |||
Year One | 35 | 105 | |
Year Two | 65 | 103 | |
Year Three | 110 | 28 | |
Year Four | 80 | 18 | |
Year Five | 39 | 39 | |
Prior | 99 | 73 | |
Revolving Loans | 1,827 | 1,397 | |
Total portfolio loans and leases | 2,255 | 1,763 | |
Commercial | Commercial and industrial 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 | 20 | 6 | |
Total portfolio loans and leases | 20 | 6 | |
Commercial | Commercial mortgage owner-occupied loans | |||
Financing Receivable, Modifications | |||
Year One | 404 | 931 | |
Year Two | 918 | 1,123 | |
Year Three | 995 | 775 | |
Year Four | 714 | 418 | |
Year Five | 363 | 270 | |
Prior | 456 | 270 | |
Revolving Loans | 1,566 | 1,413 | |
Total portfolio loans and leases | 5,416 | 5,200 | |
Commercial | Commercial mortgage owner-occupied loans | Pass | |||
Financing Receivable, Modifications | |||
Year One | 324 | 870 | |
Year Two | 873 | 1,078 | |
Year Three | 963 | 746 | |
Year Four | 659 | 408 | |
Year Five | 355 | 219 | |
Prior | 390 | 260 | |
Revolving Loans | 1,461 | 1,279 | |
Total portfolio loans and leases | 5,025 | 4,860 | |
Commercial | Commercial mortgage owner-occupied loans | Special mention | |||
Financing Receivable, Modifications | |||
Year One | 32 | 30 | |
Year Two | 26 | 23 | |
Year Three | 5 | 18 | |
Year Four | 17 | 0 | |
Year Five | 0 | 6 | |
Prior | 19 | 0 | |
Revolving Loans | 6 | 20 | |
Total portfolio loans and leases | 105 | 97 | |
Commercial | Commercial mortgage owner-occupied loans | Substandard | |||
Financing Receivable, Modifications | |||
Year One | 48 | 31 | |
Year Two | 19 | 22 | |
Year Three | 27 | 11 | |
Year Four | 38 | 10 | |
Year Five | 8 | 45 | |
Prior | 47 | 10 | |
Revolving Loans | 99 | 114 | |
Total portfolio loans and leases | 286 | 243 | |
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 | |
Total portfolio loans and leases | 0 | 0 | |
Commercial | Commercial mortgage nonowner-occupied loans | |||
Financing Receivable, Modifications | |||
Year One | 328 | 1,078 | |
Year Two | 911 | 992 | |
Year Three | 901 | 269 | |
Year Four | 226 | 350 | |
Year Five | 309 | 293 | |
Prior | 496 | 247 | |
Revolving Loans | 2,842 | 2,847 | |
Total portfolio loans and leases | 6,013 | 6,076 | |
Commercial | Commercial mortgage nonowner-occupied loans | Pass | |||
Financing Receivable, Modifications | |||
Year One | 300 | 886 | |
Year Two | 855 | 825 | |
Year Three | 743 | 261 | |
Year Four | 226 | 348 | |
Year Five | 308 | 293 | |
Prior | 493 | 243 | |
Revolving Loans | 2,581 | 2,724 | |
Total portfolio loans and leases | 5,506 | 5,580 | |
Commercial | Commercial mortgage nonowner-occupied loans | Special mention | |||
Financing Receivable, Modifications | |||
Year One | 9 | 111 | |
Year Two | 3 | 166 | |
Year Three | 154 | 0 | |
Year Four | 0 | 2 | |
Year Five | 1 | 0 | |
Prior | 1 | 2 | |
Revolving Loans | 63 | 81 | |
Total portfolio loans and leases | 231 | 362 | |
Commercial | Commercial mortgage nonowner-occupied loans | Substandard | |||
Financing Receivable, Modifications | |||
Year One | 19 | 81 | |
Year Two | 53 | 1 | |
Year Three | 4 | 8 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 2 | 2 | |
Revolving Loans | 198 | 42 | |
Total portfolio loans and leases | 276 | 134 | |
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 | |
Total portfolio loans and leases | 0 | 0 | |
Commercial | Commercial construction loans | |||
Financing Receivable, Modifications | |||
Year One | 26 | 232 | |
Year Two | 186 | 36 | |
Year Three | 101 | 78 | |
Year Four | 38 | 41 | |
Year Five | 41 | 70 | |
Prior | 34 | 6 | |
Revolving Loans | 5,380 | 5,158 | |
Total portfolio loans and leases | 5,806 | 5,621 | |
Commercial | Commercial construction loans | Pass | |||
Financing Receivable, Modifications | |||
Year One | 21 | 171 | |
Year Two | 134 | 36 | |
Year Three | 101 | 45 | |
Year Four | 38 | 41 | |
Year Five | 41 | 70 | |
Prior | 32 | 6 | |
Revolving Loans | 4,678 | 4,818 | |
Total portfolio loans and leases | 5,045 | 5,187 | |
Commercial | Commercial construction loans | Special mention | |||
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 | 447 | 199 | |
Total portfolio loans and leases | 447 | 199 | |
Commercial | Commercial construction loans | Substandard | |||
Financing Receivable, Modifications | |||
Year One | 5 | 61 | |
Year Two | 52 | 0 | |
Year Three | 0 | 33 | |
Year Four | 0 | 0 | |
Year Five | 0 | 0 | |
Prior | 2 | 0 | |
Revolving Loans | 255 | 141 | |
Total portfolio loans and leases | 314 | 235 | |
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 | |
Total portfolio loans and leases | 0 | 0 | |
Commercial | Commercial leases | |||
Financing Receivable, Modifications | |||
Year One | 733 | 619 | |
Year Two | 410 | 409 | |
Year Three | 355 | 475 | |
Year Four | 392 | 210 | |
Year Five | 171 | 158 | |
Prior | 647 | 708 | |
Revolving Loans | 0 | 0 | |
Total portfolio loans and leases | 2,708 | 2,579 | |
Commercial | Commercial leases | Pass | |||
Financing Receivable, Modifications | |||
Year One | 731 | 598 | |
Year Two | 391 | 386 | |
Year Three | 340 | 462 | |
Year Four | 388 | 202 | |
Year Five | 165 | 145 | |
Prior | 607 | 664 | |
Revolving Loans | 0 | 0 | |
Total portfolio loans and leases | 2,622 | 2,457 | |
Commercial | Commercial leases | Special mention | |||
Financing Receivable, Modifications | |||
Year One | 2 | 1 | |
Year Two | 0 | 9 | |
Year Three | 2 | 12 | |
Year Four | 3 | 3 | |
Year Five | 2 | 8 | |
Prior | 9 | 14 | |
Revolving Loans | 0 | 0 | |
Total portfolio loans and leases | 18 | 47 | |
Commercial | Commercial leases | Substandard | |||
Financing Receivable, Modifications | |||
Year One | 0 | 20 | |
Year Two | 19 | 14 | |
Year Three | 13 | 1 | |
Year Four | 1 | 5 | |
Year Five | 4 | 5 | |
Prior | 31 | 30 | |
Revolving Loans | 0 | 0 | |
Total portfolio loans and leases | 68 | 75 | |
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 | |
Total portfolio loans and leases | $ 0 | $ 0 | |
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Credit Quality and the Allowa_6
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Gross Charge-Offs Within the Commercial Portfolio Segments, by Class and Vintage (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Modifications | ||||
Total | $ 182 | $ 121 | $ 328 | $ 231 |
Commercial | ||||
Financing Receivable, Modifications | ||||
Year One | 0 | 0 | ||
Year Two | 2 | 5 | ||
Year Three | 3 | 11 | ||
Year Four | 1 | 1 | ||
Year Five | 1 | 0 | ||
Prior | 0 | 5 | ||
Revolving Loans | 116 | 47 | ||
Total | $ 83 | $ 35 | 123 | 69 |
Commercial | Commercial and industrial loans | ||||
Financing Receivable, Modifications | ||||
Year One | 0 | 0 | ||
Year Two | 2 | 5 | ||
Year Three | 3 | 11 | ||
Year Four | 1 | 1 | ||
Year Five | 1 | 0 | ||
Prior | 0 | 5 | ||
Revolving Loans | 116 | 45 | ||
Total | 123 | 67 | ||
Commercial | Commercial mortgage owner-occupied loans | ||||
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 | 1 | ||
Total | 0 | 1 | ||
Commercial | Commercial construction loans | ||||
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 | 1 | ||
Total | $ 0 | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | [1] | $ 116,579 | $ 117,234 |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 71,783 | 72,746 | |
90 Days Past Due and Still Accruing | 8 | 8 | |
Commercial | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 71,612 | 72,547 | |
Commercial | Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 171 | 199 | |
Commercial | 30 to 89 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 77 | 93 | |
Commercial | 90 Days or More | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 94 | 106 | |
Commercial | Commercial and industrial loans | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 51,840 | 53,270 | |
90 Days Past Due and Still Accruing | 3 | 8 | |
Commercial | Commercial and industrial loans | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 51,724 | 53,107 | |
Commercial | Commercial and industrial loans | Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 116 | 163 | |
Commercial | Commercial and industrial loans | 30 to 89 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 28 | 61 | |
Commercial | Commercial and industrial loans | 90 Days or More | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 88 | 102 | |
Commercial | Commercial mortgage owner-occupied loans | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 5,416 | 5,200 | |
90 Days Past Due and Still Accruing | 1 | 0 | |
Commercial | Commercial mortgage owner-occupied loans | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 5,411 | 5,196 | |
Commercial | Commercial mortgage owner-occupied loans | Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 5 | 4 | |
Commercial | Commercial mortgage owner-occupied loans | 30 to 89 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 3 | 1 | |
Commercial | Commercial mortgage owner-occupied loans | 90 Days or More | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 2 | 3 | |
Commercial | Commercial mortgage nonowner-occupied loans | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 6,013 | 6,076 | |
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 | 6,010 | 6,061 | |
Commercial | Commercial mortgage nonowner-occupied loans | Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 3 | 15 | |
Commercial | Commercial mortgage nonowner-occupied loans | 30 to 89 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 3 | 14 | |
Commercial | Commercial mortgage nonowner-occupied loans | 90 Days or More | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 0 | 1 | |
Commercial | Commercial construction loans | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 5,806 | 5,621 | |
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 | 5,781 | 5,621 | |
Commercial | Commercial construction loans | Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 25 | 0 | |
Commercial | Commercial construction loans | 30 to 89 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 25 | 0 | |
Commercial | Commercial construction loans | 90 Days or More | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 0 | 0 | |
Commercial | Commercial leases | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 2,708 | 2,579 | |
90 Days Past Due and Still Accruing | 4 | 0 | |
Commercial | Commercial leases | Current | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 2,686 | 2,562 | |
Commercial | Commercial leases | Total Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 22 | 17 | |
Commercial | Commercial leases | 30 to 89 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | 18 | 17 | |
Commercial | Commercial leases | 90 Days or More | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total portfolio loans and leases | $ 4 | $ 0 | |
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Credit Quality and the Allowa_8
Credit Quality and the Allowance for Loan and Lease Losses - Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Financing Receivable, Modifications | ||||||
Total portfolio loans and leases | [1] | $ 116,579 | $ 116,579 | $ 117,234 | ||
Residential Mortgage | ||||||
Financing Receivable, Modifications | ||||||
Residential mortgage loans | 109 | $ 124 | 109 | $ 124 | 116 | |
Residential Mortgage | Federal Housing Administration Loan | ||||||
Financing Receivable, Modifications | ||||||
Losses due to claim denials and curtailments | 0 | $ 1 | 1 | $ 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 portfolio loans and leases | 77 | 77 | 79 | |||
Residential Mortgage | 90 days or more past due | Federal Housing Administration Loan | ||||||
Financing Receivable, Modifications | ||||||
Total portfolio loans and leases | 126 | 126 | 141 | |||
Residential Mortgage | Nonperforming | ||||||
Financing Receivable, Modifications | ||||||
Residential mortgage loans | 2 | 2 | 2 | |||
Residential Mortgage | 30-89 days past due | ||||||
Financing Receivable, Modifications | ||||||
Residential mortgage loans | 1 | 1 | ||||
Residential Mortgage | Residential mortgage loans | ||||||
Financing Receivable, Modifications | ||||||
Year One | 788 | 788 | 995 | |||
Year Two | 1,027 | 1,027 | 3,149 | |||
Year Three | 3,060 | 3,060 | 5,014 | |||
Year Four | 4,791 | 4,791 | 2,714 | |||
Year Five | 2,594 | 2,594 | 949 | |||
Prior | 4,671 | 4,671 | 4,089 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 16,931 | 16,931 | 16,910 | |||
Residential Mortgage | Residential mortgage loans | Performing | Current | ||||||
Financing Receivable, Modifications | ||||||
Year One | 788 | 788 | 995 | |||
Year Two | 1,025 | 1,025 | 3,139 | |||
Year Three | 3,048 | 3,048 | 5,001 | |||
Year Four | 4,775 | 4,775 | 2,703 | |||
Year Five | 2,585 | 2,585 | 943 | |||
Prior | 4,550 | 4,550 | 3,971 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 16,771 | 16,771 | 16,752 | |||
Residential Mortgage | Residential mortgage loans | Performing | 30-89 days past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 1 | 1 | 3 | |||
Year Three | 4 | 4 | 6 | |||
Year Four | 5 | 5 | 5 | |||
Year Five | 2 | 2 | 1 | |||
Prior | 13 | 13 | 14 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 25 | 25 | 29 | |||
Residential Mortgage | Residential mortgage loans | Performing | 90 days or more past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 1 | 1 | 1 | |||
Year Three | 1 | 1 | 1 | |||
Year Four | 2 | 2 | 1 | |||
Year Five | 0 | 0 | 1 | |||
Prior | 4 | 4 | 3 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 8 | 8 | 7 | |||
Residential Mortgage | Residential mortgage loans | Nonperforming | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 6 | |||
Year Three | 7 | 7 | 6 | |||
Year Four | 9 | 9 | 5 | |||
Year Five | 7 | 7 | 4 | |||
Prior | 104 | 104 | 101 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 127 | 127 | 122 | |||
Consumer | ||||||
Financing Receivable, Modifications | ||||||
Total portfolio loans and leases | 44,796 | 44,796 | 44,488 | |||
Consumer | Residential mortgage loans | ||||||
Financing Receivable, Modifications | ||||||
Total portfolio loans and leases | 17,040 | 17,040 | 17,026 | |||
Consumer | Home equity | ||||||
Financing Receivable, Modifications | ||||||
Year One | 63 | 63 | 84 | |||
Year Two | 76 | 76 | 41 | |||
Year Three | 38 | 38 | 2 | |||
Year Four | 2 | 2 | 6 | |||
Year Five | 5 | 5 | 11 | |||
Prior | 104 | 104 | 100 | |||
Revolving Loans | 3,618 | 3,618 | 3,624 | |||
Revolving Loans Converted to Term Loans | 63 | 63 | 48 | |||
Total portfolio loans and leases | 3,969 | 3,969 | 3,916 | |||
Consumer | Home equity | Performing | Current | ||||||
Financing Receivable, Modifications | ||||||
Year One | 63 | 63 | 84 | |||
Year Two | 76 | 76 | 41 | |||
Year Three | 38 | 38 | 2 | |||
Year Four | 2 | 2 | 6 | |||
Year Five | 5 | 5 | 11 | |||
Prior | 96 | 96 | 92 | |||
Revolving Loans | 3,545 | 3,545 | 3,549 | |||
Revolving Loans Converted to Term Loans | 57 | 57 | 46 | |||
Total portfolio loans and leases | 3,882 | 3,882 | 3,831 | |||
Consumer | Home equity | Performing | 30-89 days past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 1 | 1 | 2 | |||
Revolving Loans | 21 | 21 | 25 | |||
Revolving Loans Converted to Term Loans | 4 | 4 | 1 | |||
Total portfolio loans and leases | 26 | 26 | 28 | |||
Consumer | Home equity | Performing | 90 days or more past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 0 | 0 | 0 | |||
Consumer | Home equity | Nonperforming | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 7 | 7 | 6 | |||
Revolving Loans | 52 | 52 | 50 | |||
Revolving Loans Converted to Term Loans | 2 | 2 | 1 | |||
Total portfolio loans and leases | 61 | 61 | 57 | |||
Consumer | Indirect secured consumer loans | ||||||
Financing Receivable, Modifications | ||||||
Year One | 3,439 | 3,439 | 4,152 | |||
Year Two | 3,444 | 3,444 | 4,393 | |||
Year Three | 3,721 | 3,721 | 3,974 | |||
Year Four | 3,143 | 3,143 | 1,552 | |||
Year Five | 1,122 | 1,122 | 612 | |||
Prior | 573 | 573 | 282 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 15,442 | 15,442 | 14,965 | |||
Consumer | Indirect secured consumer loans | Performing | Current | ||||||
Financing Receivable, Modifications | ||||||
Year One | 3,431 | 3,431 | 4,126 | |||
Year Two | 3,415 | 3,415 | 4,333 | |||
Year Three | 3,668 | 3,668 | 3,925 | |||
Year Four | 3,104 | 3,104 | 1,527 | |||
Year Five | 1,104 | 1,104 | 597 | |||
Prior | 556 | 556 | 271 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 15,278 | 15,278 | 14,779 | |||
Consumer | Indirect secured consumer loans | Performing | 30-89 days past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 7 | 7 | 22 | |||
Year Two | 24 | 24 | 49 | |||
Year Three | 40 | 40 | 40 | |||
Year Four | 31 | 31 | 19 | |||
Year Five | 14 | 14 | 12 | |||
Prior | 12 | 12 | 8 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 128 | 128 | 150 | |||
Consumer | Indirect secured consumer loans | Performing | 90 days or more past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 0 | 0 | 0 | |||
Consumer | Indirect secured consumer loans | Nonperforming | ||||||
Financing Receivable, Modifications | ||||||
Year One | 1 | 1 | 4 | |||
Year Two | 5 | 5 | 11 | |||
Year Three | 13 | 13 | 9 | |||
Year Four | 8 | 8 | 6 | |||
Year Five | 4 | 4 | 3 | |||
Prior | 5 | 5 | 3 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 36 | 36 | 36 | |||
Consumer | Credit card | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 1,733 | 1,733 | 1,865 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 1,733 | 1,733 | 1,865 | |||
Consumer | Credit card | Performing | Current | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 1,666 | 1,666 | 1,789 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 1,666 | 1,666 | 1,789 | |||
Consumer | Credit card | Performing | 30-89 days past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 19 | 19 | 21 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 19 | 19 | 21 | |||
Consumer | Credit card | Performing | 90 days or more past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 17 | 17 | 21 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 17 | 17 | 21 | |||
Consumer | Credit card | Nonperforming | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 31 | 31 | 34 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 31 | 31 | 34 | |||
Consumer | Solar energy installation loans | ||||||
Financing Receivable, Modifications | ||||||
Year One | 470 | 470 | 2,456 | |||
Year Two | 2,267 | 2,267 | 1,228 | |||
Year Three | 1,176 | 1,176 | 2 | |||
Year Four | 2 | 2 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 36 | 36 | 42 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 3,951 | 3,951 | 3,728 | |||
Consumer | Solar energy installation loans | Performing | Current | ||||||
Financing Receivable, Modifications | ||||||
Year One | 469 | 469 | 2,415 | |||
Year Two | 2,226 | 2,226 | 1,192 | |||
Year Three | 1,140 | 1,140 | 2 | |||
Year Four | 2 | 2 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 35 | 35 | 41 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 3,872 | 3,872 | 3,650 | |||
Consumer | Solar energy installation loans | Performing | 30-89 days past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 1 | 1 | 12 | |||
Year Two | 6 | 6 | 6 | |||
Year Three | 6 | 6 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 13 | 13 | 18 | |||
Consumer | Solar energy installation loans | Performing | 90 days or more past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 0 | 0 | 0 | |||
Consumer | Solar energy installation loans | Nonperforming | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 29 | |||
Year Two | 35 | 35 | 30 | |||
Year Three | 30 | 30 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 1 | 1 | 1 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 66 | 66 | 60 | |||
Consumer | Other consumer loans | ||||||
Financing Receivable, Modifications | ||||||
Year One | 115 | 115 | 518 | |||
Year Two | 441 | 441 | 724 | |||
Year Three | 617 | 617 | 333 | |||
Year Four | 275 | 275 | 249 | |||
Year Five | 208 | 208 | 104 | |||
Prior | 184 | 184 | 156 | |||
Revolving Loans | 774 | 774 | 861 | |||
Revolving Loans Converted to Term Loans | 47 | 47 | 43 | |||
Total portfolio loans and leases | 2,661 | 2,661 | 2,988 | |||
Consumer | Other consumer loans | Performing | Current | ||||||
Financing Receivable, Modifications | ||||||
Year One | 115 | 115 | 511 | |||
Year Two | 435 | 435 | 703 | |||
Year Three | 604 | 604 | 328 | |||
Year Four | 271 | 271 | 246 | |||
Year Five | 206 | 206 | 101 | |||
Prior | 181 | 181 | 154 | |||
Revolving Loans | 772 | 772 | 859 | |||
Revolving Loans Converted to Term Loans | 45 | 45 | 41 | |||
Total portfolio loans and leases | 2,629 | 2,629 | 2,943 | |||
Consumer | Other consumer loans | Performing | 30-89 days past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 5 | |||
Year Two | 4 | 4 | 15 | |||
Year Three | 9 | 9 | 4 | |||
Year Four | 3 | 3 | 2 | |||
Year Five | 2 | 2 | 2 | |||
Prior | 2 | 2 | 2 | |||
Revolving Loans | 2 | 2 | 2 | |||
Revolving Loans Converted to Term Loans | 1 | 1 | 1 | |||
Total portfolio loans and leases | 23 | 23 | 33 | |||
Consumer | Other consumer loans | Performing | 90 days or more past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 0 | 0 | 0 | |||
Year Three | 0 | 0 | 0 | |||
Year Four | 0 | 0 | 0 | |||
Year Five | 0 | 0 | 0 | |||
Prior | 0 | 0 | 0 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 0 | 0 | 0 | |||
Consumer | Other consumer loans | Nonperforming | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 2 | |||
Year Two | 2 | 2 | 6 | |||
Year Three | 4 | 4 | 1 | |||
Year Four | 1 | 1 | 1 | |||
Year Five | 0 | 0 | 1 | |||
Prior | 1 | 1 | 0 | |||
Revolving Loans | 0 | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 1 | 1 | 1 | |||
Total portfolio loans and leases | 9 | 9 | 12 | |||
Residential Mortgage and Consumer | ||||||
Financing Receivable, Modifications | ||||||
Year One | 4,875 | 4,875 | 8,205 | |||
Year Two | 7,255 | 7,255 | 9,535 | |||
Year Three | 8,612 | 8,612 | 9,325 | |||
Year Four | 8,213 | 8,213 | 4,521 | |||
Year Five | 3,929 | 3,929 | 1,676 | |||
Prior | 5,568 | 5,568 | 4,669 | |||
Revolving Loans | 6,125 | 6,125 | 6,350 | |||
Revolving Loans Converted to Term Loans | 110 | 110 | 91 | |||
Total portfolio loans and leases | 44,687 | 44,687 | 44,372 | |||
Residential Mortgage and Consumer | Performing | Current | ||||||
Financing Receivable, Modifications | ||||||
Year One | 4,866 | 4,866 | 8,131 | |||
Year Two | 7,177 | 7,177 | 9,408 | |||
Year Three | 8,498 | 8,498 | 9,258 | |||
Year Four | 8,154 | 8,154 | 4,482 | |||
Year Five | 3,900 | 3,900 | 1,652 | |||
Prior | 5,418 | 5,418 | 4,529 | |||
Revolving Loans | 5,983 | 5,983 | 6,197 | |||
Revolving Loans Converted to Term Loans | 102 | 102 | 87 | |||
Total portfolio loans and leases | 44,098 | 44,098 | 43,744 | |||
Residential Mortgage and Consumer | Performing | 30-89 days past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 8 | 8 | 39 | |||
Year Two | 35 | 35 | 73 | |||
Year Three | 59 | 59 | 50 | |||
Year Four | 39 | 39 | 26 | |||
Year Five | 18 | 18 | 15 | |||
Prior | 28 | 28 | 26 | |||
Revolving Loans | 42 | 42 | 48 | |||
Revolving Loans Converted to Term Loans | 5 | 5 | 2 | |||
Total portfolio loans and leases | 234 | 234 | 279 | |||
Residential Mortgage and Consumer | Performing | 90 days or more past due | ||||||
Financing Receivable, Modifications | ||||||
Year One | 0 | 0 | 0 | |||
Year Two | 1 | 1 | 1 | |||
Year Three | 1 | 1 | 1 | |||
Year Four | 2 | 2 | 1 | |||
Year Five | 0 | 0 | 1 | |||
Prior | 4 | 4 | 3 | |||
Revolving Loans | 17 | 17 | 21 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | 0 | |||
Total portfolio loans and leases | 25 | 25 | 28 | |||
Residential Mortgage and Consumer | Nonperforming | ||||||
Financing Receivable, Modifications | ||||||
Year One | 1 | 1 | 35 | |||
Year Two | 42 | 42 | 53 | |||
Year Three | 54 | 54 | 16 | |||
Year Four | 18 | 18 | 12 | |||
Year Five | 11 | 11 | 8 | |||
Prior | 118 | 118 | 111 | |||
Revolving Loans | 83 | 83 | 84 | |||
Revolving Loans Converted to Term Loans | 3 | 3 | 2 | |||
Total portfolio loans and leases | $ 330 | $ 330 | $ 321 | |||
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Credit Quality and the Allowa_9
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Gross Charge-Offs Within the Residential Mortgage and Consumer Portfolio Segments, by Class and Vintage (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Modifications | ||||
Total | $ 182 | $ 121 | $ 328 | $ 231 |
Residential Mortgage | ||||
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 | 2 | ||
Revolving Loans | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | ||
Total | 1 | 1 | 1 | 2 |
Consumer | ||||
Financing Receivable, Modifications | ||||
Total | $ 98 | $ 85 | 204 | 160 |
Consumer | Home equity | ||||
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 | 1 | ||
Revolving Loans | 3 | 3 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | ||
Total | 3 | 4 | ||
Consumer | Indirect secured consumer loans | ||||
Financing Receivable, Modifications | ||||
Year One | 0 | 1 | ||
Year Two | 16 | 18 | ||
Year Three | 26 | 12 | ||
Year Four | 13 | 7 | ||
Year Five | 5 | 5 | ||
Prior | 6 | 5 | ||
Revolving Loans | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | ||
Total | 66 | 48 | ||
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 | 46 | 40 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | ||
Total | 46 | 40 | ||
Consumer | Solar energy installation loans | ||||
Financing Receivable, Modifications | ||||
Year One | 0 | 0 | ||
Year Two | 8 | 7 | ||
Year Three | 6 | 1 | ||
Year Four | 0 | 0 | ||
Year Five | 5 | 0 | ||
Prior | 9 | 1 | ||
Revolving Loans | 0 | 0 | ||
Revolving Loans Converted to Term Loans | 0 | 0 | ||
Total | 28 | 9 | ||
Consumer | Other consumer loans | ||||
Financing Receivable, Modifications | ||||
Year One | 0 | 0 | ||
Year Two | 5 | 18 | ||
Year Three | 13 | 9 | ||
Year Four | 6 | 6 | ||
Year Five | 10 | 4 | ||
Prior | 9 | 5 | ||
Revolving Loans | 16 | 16 | ||
Revolving Loans Converted to Term Loans | 2 | 1 | ||
Total | 61 | 59 | ||
Consumer and residential mortgage loans | ||||
Financing Receivable, Modifications | ||||
Year One | 0 | 1 | ||
Year Two | 29 | 43 | ||
Year Three | 45 | 22 | ||
Year Four | 19 | 13 | ||
Year Five | 20 | 9 | ||
Prior | 25 | 14 | ||
Revolving Loans | 65 | 59 | ||
Revolving Loans Converted to Term Loans | 2 | 1 | ||
Total | $ 205 | $ 162 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Impaired | ||
Total portfolio loans and leases | $ 416 | $ 474 |
Commercial | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 215 | 279 |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 187 | 268 |
Commercial | Commercial mortgage owner-occupied loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 25 | 8 |
Commercial | Commercial mortgage nonowner-occupied loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 2 | 2 |
Commercial | Commercial construction loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 1 | 1 |
Residential Mortgage | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 129 | 126 |
Consumer | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 72 | 69 |
Consumer | Home equity | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | 55 | 54 |
Consumer | Indirect secured consumer loans | ||
Financing Receivable, Impaired | ||
Loans and leases receivable, allowance for amortized cost basis | $ 17 | $ 15 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Modifications | ||
With an ALLL | $ 406 | $ 469 |
No Related ALLL | 237 | 219 |
Total | 643 | 688 |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 537 | 378 |
Nonperforming | ||
Financing Receivable, Modifications | ||
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 4 | 1 |
Nonperforming | Government Insured | ||
Financing Receivable, Modifications | ||
Total | 24 | 19 |
Commercial | ||
Financing Receivable, Modifications | ||
With an ALLL | 213 | 284 |
No Related ALLL | 61 | 42 |
Total | 274 | 326 |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Modifications | ||
With an ALLL | 198 | 273 |
No Related ALLL | 36 | 31 |
Total | 234 | 304 |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 22 | 41 |
Commercial | Commercial mortgage owner-occupied loans | ||
Financing Receivable, Modifications | ||
With an ALLL | 13 | 11 |
No Related ALLL | 22 | 6 |
Total | 35 | 17 |
Commercial | Commercial mortgage nonowner-occupied loans | ||
Financing Receivable, Modifications | ||
With an ALLL | 1 | 0 |
No Related ALLL | 2 | 3 |
Total | 3 | 3 |
Commercial | Commercial construction loans | ||
Financing Receivable, Modifications | ||
With an ALLL | 0 | 0 |
No Related ALLL | 1 | 1 |
Total | 1 | 1 |
Commercial | Commercial leases | ||
Financing Receivable, Modifications | ||
With an ALLL | 1 | 0 |
No Related ALLL | 0 | 1 |
Total | 1 | 1 |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 3 | 3 |
Residential Mortgage | ||
Financing Receivable, Modifications | ||
With an ALLL | 37 | 26 |
No Related ALLL | 92 | 98 |
Total | 129 | 124 |
Consumer | ||
Financing Receivable, Modifications | ||
With an ALLL | 156 | 159 |
No Related ALLL | 47 | 40 |
Total | 203 | 199 |
Consumer | Home equity | ||
Financing Receivable, Modifications | ||
With an ALLL | 20 | 21 |
No Related ALLL | 41 | 36 |
Total | 61 | 57 |
Consumer | Indirect secured consumer loans | ||
Financing Receivable, Modifications | ||
With an ALLL | 30 | 32 |
No Related ALLL | 6 | 4 |
Total | 36 | 36 |
Consumer | Credit card | ||
Financing Receivable, Modifications | ||
With an ALLL | 31 | 34 |
No Related ALLL | 0 | 0 |
Total | 31 | 34 |
Consumer | Solar energy installation loans | ||
Financing Receivable, Modifications | ||
With an ALLL | 66 | 60 |
No Related ALLL | 0 | 0 |
Total | 66 | 60 |
Consumer | Other consumer loans | ||
Financing Receivable, Modifications | ||
With an ALLL | 9 | 12 |
No Related ALLL | 0 | 0 |
Total | 9 | 12 |
Nonaccrual portfolio loans and leases | ||
Financing Receivable, Modifications | ||
With an ALLL | 406 | 469 |
No Related ALLL | 200 | 180 |
Total | 606 | 649 |
OREO and other repossessed property | ||
Financing Receivable, Modifications | ||
With an ALLL | 0 | 0 |
No Related ALLL | 37 | 39 |
Total | $ 37 | $ 39 |
Credit Quality and the Allow_12
Credit Quality and the Allowance for Loan and Lease Losses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Losses | |||||
Mortgage loans in process of foreclosure amount | $ 93 | $ 93 | $ 107 | ||
Financing receivable, excluding accrued interest, modified in period, amount | $ 183 | $ 331 | $ 300 | $ 444 | |
Loan modification program, percentage of modifications to total portfolio | 0.16% | 0.27% | 0.26% | 0.36% | |
Loan modification program, loans excluded from modification program | $ 21 | $ 9 | $ 30 | $ 20 | |
Unfunded commitment amounts | 88 | 88 | $ 130 | ||
Commercial | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 144 | $ 282 | $ 226 | $ 358 | |
Loan modification program, percentage of modifications to total portfolio | 0.20% | 0.37% | 0.31% | 0.47% | |
Commercial | Minimum | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Term extension period | 3 months | ||||
Commercial | Maximum | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Term extension period | 12 months | ||||
Residential Mortgage | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 29 | $ 36 | $ 53 | $ 59 | |
Loan modification program, percentage of modifications to total portfolio | 0.17% | 0.21% | 0.31% | 0.34% | |
Modification program option, mortgage term | 480 months | ||||
Modification program option, in-process modifications | $ 3 | $ 17 | $ 3 | $ 17 | |
Residential Mortgage | Minimum | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Modification program option, trial period | 3 months | ||||
Modification program option, mortgage interest payment deferral, term | 6 months | ||||
Residential Mortgage | Maximum | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Modification program option, trial period | 4 months | ||||
Modification program option, mortgage interest payment deferral, term | 12 months | ||||
Consumer | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 10 | $ 13 | $ 21 | $ 27 | |
Loan modification program, percentage of modifications to total portfolio | 0.04% | 0.05% | 0.08% | 0.10% | |
Consumer | Home equity | |||||
Financing Receivable, Allowance for Credit Losses | |||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 3 | $ 3 | $ 7 | $ 7 | |
Loan modification program, percentage of modifications to total portfolio | 0.08% | 0.08% | 0.18% | 0.18% | |
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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 183 | $ 331 | $ 300 | $ 444 |
% of Total Class | 0.16% | 0.27% | 0.26% | 0.36% |
Commercial | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 144 | $ 282 | $ 226 | $ 358 |
% of Total Class | 0.20% | 0.37% | 0.31% | 0.47% |
Commercial | Term Extension | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 122 | $ 275 | $ 191 | $ 348 |
Commercial | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 18 | 0 | 18 | 0 |
Commercial | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 4 | 7 | 17 | 7 |
Commercial | Other | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 3 |
Commercial | Commercial and industrial loans | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 116 | $ 170 | $ 183 | $ 191 |
% of Total Class | 0.22% | 0.30% | 0.35% | 0.34% |
Commercial | Commercial and industrial loans | Term Extension | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 95 | $ 163 | $ 149 | $ 183 |
Commercial | Commercial and industrial loans | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 18 | 0 | 18 | 0 |
Commercial | Commercial and industrial loans | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 3 | 7 | 16 | 7 |
Commercial | Commercial and industrial loans | Other | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 1 |
Commercial | Commercial mortgage owner-occupied loans | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 24 | $ 40 | $ 34 | $ 40 |
% of Total Class | 0.44% | 0.74% | 0.63% | 0.74% |
Commercial | Commercial mortgage owner-occupied loans | Term Extension | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 23 | $ 40 | $ 33 | $ 40 |
Commercial | Commercial mortgage owner-occupied loans | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Commercial | Commercial mortgage owner-occupied loans | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 1 | 0 | 1 | 0 |
Commercial | Commercial mortgage owner-occupied loans | Other | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 2 | $ 5 | $ 26 |
% of Total Class | 0% | 0.03% | 0.08% | 0.44% |
Commercial | Commercial mortgage nonowner-occupied loans | Term Extension | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 2 | $ 5 | $ 24 |
Commercial | Commercial mortgage nonowner-occupied loans | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | Other | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 2 |
Commercial | Commercial construction loans | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 4 | $ 70 | $ 4 | $ 101 |
% of Total Class | 0.07% | 1.28% | 0.07% | 1.84% |
Commercial | Commercial construction loans | Term Extension | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 4 | $ 70 | $ 4 | $ 101 |
Commercial | Commercial construction loans | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Commercial | Commercial construction loans | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Commercial | Commercial construction loans | Other | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Residential Mortgage | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 29 | $ 36 | $ 53 | $ 59 |
% of Total Class | 0.17% | 0.21% | 0.31% | 0.34% |
Residential Mortgage | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 24 | $ 29 | $ 45 | $ 42 |
% of Total Class | 0.14% | 0.17% | 0.26% | 0.24% |
Residential Mortgage | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 3 | $ 6 | $ 5 | $ 14 |
% of Total Class | 0.02% | 0.03% | 0.03% | 0.08% |
Residential Mortgage | Term Extension, Interest Rate Reduction and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 2 | $ 1 | $ 3 | $ 3 |
% of Total Class | 0.01% | 0.01% | 0.02% | 0.02% |
Consumer | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 10 | $ 13 | $ 21 | $ 27 |
% of Total Class | 0.04% | 0.05% | 0.08% | 0.10% |
Consumer | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 1 | $ 1 | $ 2 |
Consumer | Interest Rate Reduction | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 7 | 8 | 13 | 18 |
Consumer | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 1 | 2 | 2 | 3 |
Consumer | Term Extension, Interest Rate Reduction and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 2 | 2 | 5 | 4 |
Consumer | Home equity | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 3 | $ 3 | $ 7 | $ 7 |
% of Total Class | 0.08% | 0.08% | 0.18% | 0.18% |
Consumer | Home equity | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 1 | $ 1 | $ 2 |
Consumer | Home equity | Interest Rate Reduction | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 1 | 0 | 1 | 1 |
Consumer | Home equity | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Consumer | Home equity | Term Extension, Interest Rate Reduction and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 2 | 2 | 5 | 4 |
Consumer | Credit card | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 6 | $ 8 | $ 12 | $ 17 |
% of Total Class | 0.35% | 0.44% | 0.69% | 0.94% |
Consumer | Credit card | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | Credit card | Interest Rate Reduction | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 6 | 8 | 12 | 17 |
Consumer | Credit card | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Consumer | Credit card | Term Extension, Interest Rate Reduction and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Consumer | Other consumer loans | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 1 | $ 1 | $ 2 | $ 2 |
% of Total Class | 0.04% | 0.03% | 0.08% | 0.06% |
Consumer | Other consumer loans | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | Other consumer loans | Interest Rate Reduction | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Consumer | Other consumer loans | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 1 | 1 | 2 | 2 |
Consumer | Other consumer loans | Term Extension, Interest Rate Reduction and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Consumer | Solar energy installation loans | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 1 | $ 0 | $ 1 |
% of Total Class | 0% | 0.03% | 0% | 0.03% |
Consumer | Solar energy installation loans | Term Extension and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | Solar energy installation loans | Interest Rate Reduction | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 0 | 0 | 0 |
Consumer | Solar energy installation loans | Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | 0 | 1 | 0 | 1 |
Consumer | Solar energy installation loans | Term Extension, Interest Rate Reduction and Payment Delay | ||||
Financing Receivable, Modifications | ||||
Financing receivable, excluding accrued interest, modified in period, amount | $ 0 | $ 0 | $ 0 | $ 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Commercial | Commercial and industrial loans | ||||
Financing Receivable, Modifications | ||||
Weighted-average length of term extensions | 10 months | 4 months | 9 months | 4 months |
Financing receivable, modified, payment deferral, percentage of related loan balance | 10% | 12% | 12% | 12% |
Commercial | Commercial mortgage owner-occupied loans | ||||
Financing Receivable, Modifications | ||||
Weighted-average length of term extensions | 12 months | 10 months | 9 months | 10 months |
Commercial | Commercial mortgage nonowner-occupied loans | ||||
Financing Receivable, Modifications | ||||
Weighted-average length of term extensions | 6 months | 8 months | ||
Commercial | Commercial construction loans | ||||
Financing Receivable, Modifications | ||||
Weighted-average length of term extensions | 6 months | 12 months | 6 months | 12 months |
Residential Mortgage | ||||
Financing Receivable, Modifications | ||||
Weighted-average length of term extensions | 9 years 1 month 6 days | 11 years 7 months 6 days | 10 years 2 months 12 days | 11 years 3 months 18 days |
Financing receivable, modified, payment deferral, percentage of related loan balance | 11% | 17% | 12% | 16% |
Consumer | Home equity | ||||
Financing Receivable, Modifications | ||||
Weighted-average length of term extensions | 24 years | 25 years 6 months | 24 years 10 months 24 days | 25 years 1 month 6 days |
Financing receivable, modified, payment deferral, percentage of related loan balance | 5% | 3% | 5% | 5% |
Weighted-average interest rate, before modification | 8.80% | 8.70% | 8.90% | 8.30% |
Weighted-average interest rate, after modification | 7.10% | 6.60% | 7.20% | 6.50% |
Consumer | Credit card | ||||
Financing Receivable, Modifications | ||||
Weighted-average interest rate, before modification | 23.70% | 23.60% | 23.90% | 23.40% |
Weighted-average interest rate, after modification | 3.70% | 3.60% | 3.90% | 3.70% |
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) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | $ 460 | $ 444 |
Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 415 | 435 |
30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 22 | 5 |
90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 23 | 4 |
Commercial | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 210 | 191 |
Commercial | Commercial and industrial loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 199 | 190 |
Commercial | Commercial and industrial loans | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 3 | 0 |
Commercial | Commercial and industrial loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 8 | 1 |
Commercial | Commercial mortgage owner-occupied loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 34 | 40 |
Commercial | Commercial mortgage owner-occupied loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 34 | 40 |
Commercial | Commercial mortgage owner-occupied loans | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Commercial | Commercial mortgage owner-occupied loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 50 | 26 |
Commercial | Commercial mortgage nonowner-occupied loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 50 | 26 |
Commercial | Commercial mortgage nonowner-occupied loans | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Commercial | Commercial mortgage nonowner-occupied loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Commercial | Commercial construction loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 23 | 101 |
Commercial | Commercial construction loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 23 | 101 |
Commercial | Commercial construction loans | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Commercial | Commercial construction loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Residential Mortgage | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 100 | 59 |
Residential Mortgage | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 74 | 56 |
Residential Mortgage | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 15 | 2 |
Residential Mortgage | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 11 | 1 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 15 | 7 |
Consumer | Home equity | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 13 | 7 |
Consumer | Home equity | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 1 | 0 |
Consumer | Home equity | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 1 | 0 |
Consumer | Credit card | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 23 | 17 |
Consumer | Credit card | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 17 | 12 |
Consumer | Credit card | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 3 | 3 |
Consumer | Credit card | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 3 | 2 |
Consumer | Solar energy installation loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 1 | 1 |
Consumer | Solar energy installation loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 1 | 1 |
Consumer | Solar energy installation loans | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Consumer | Solar energy installation loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Consumer | Other consumer loans | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 4 | 2 |
Consumer | Other consumer loans | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 4 | 2 |
Consumer | Other consumer loans | 30-89 days past due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | 0 | 0 |
Consumer | Other consumer loans | 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due | ||
Financing receivable, excluding accrued interest, modified, after 12 months | $ 0 | $ 0 |
Credit Quality and the Allow_16
Credit Quality and the Allowance for Loan and Lease Losses - Summary of Amortized Cost Basis of Modifications to Borrowers Experiencing Financial Difficulty (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | $ 31 | $ 0 | $ 52 | $ 0 |
Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 13 | 14 | ||
Term Extension and Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 13 | 22 | ||
Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 1 | ||
Term Extension | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 8 | ||
Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 5 | 7 | ||
Commercial | Commercial and industrial loans | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 19 | 28 | ||
Commercial | Commercial and industrial loans | Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 13 | 13 | ||
Commercial | Commercial and industrial loans | Term Extension and Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 6 | 6 | ||
Commercial | Commercial and industrial loans | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 1 | ||
Commercial | Commercial and industrial loans | Term Extension | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 8 | ||
Commercial | Commercial and industrial loans | Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Residential Mortgage | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 7 | 17 | ||
Residential Mortgage | Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 1 | ||
Residential Mortgage | Term Extension and Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 7 | 16 | ||
Residential Mortgage | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Residential Mortgage | Term Extension | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Residential Mortgage | Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Home equity | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 1 | 1 | ||
Consumer | Home equity | Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Home equity | Term Extension and Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Home equity | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Home equity | Term Extension | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Home equity | Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 1 | 1 | ||
Consumer | Credit card | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 4 | 6 | ||
Consumer | Credit card | Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Credit card | Term Extension and Payment Delay | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Credit card | Term Extension and Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Credit card | Term Extension | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | 0 | 0 | ||
Consumer | Credit card | Interest Rate Reduction | ||||
Financing Receivable, Allowance for Credit Losses | ||||
Amortized cost basis of the modifications to borrowers experiencing financial difficulty | $ 4 | $ 6 |
Bank Premises and Equipment - S
Bank Premises and Equipment - Summary of Bank Premises and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ (3,550) | $ (3,473) |
Total bank premises and equipment | 2,389 | 2,349 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,672 | 2,578 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,757 | 1,742 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 697 | 685 |
Land and and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 621 | 618 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 176 | 180 |
Land and improvements held for sale | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 12 | 15 |
Buildings held for sale | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4 | 4 |
Other property | ||
Property, Plant and Equipment [Line Items] | ||
Land improvements | $ 9 |
Bank Premises and Equipment - A
Bank Premises and Equipment - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) branch | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) branch | Jun. 30, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Impairment losses on bank premises | $ | $ 0 | $ 0 | $ 0 | $ 1 |
Closed in 2024 | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of branches held for sale | branch | 24 | 24 |
Operating Lease Equipment - Add
Operating Lease Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||||
Operating lease equipment | $ 392 | $ 392 | $ 459 | ||
Accumulated depreciation | 352 | 352 | $ 355 | ||
Operating lease income | $ 26 | $ 35 | $ 54 | $ 72 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Leasing business revenue | Leasing business revenue | Leasing business revenue | Leasing business revenue | |
Depreciation expense | $ 21 | $ 29 | $ 44 | $ 60 | |
Operating lease payments received | 54 | 77 | |||
Impairment losses of operating lease equipment | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Lease Equipment - Fut
Operating Lease Equipment - Future Lease Payments Receivable (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
Remainder of 2024 | $ 50 |
2025 | 77 |
2026 | 51 |
2027 | 26 |
2028 | 11 |
2029 | 6 |
Thereafter | 9 |
Total operating lease payments | $ 230 |
Lease Obligations - Lessee - Le
Lease Obligations - Lessee - Lease Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 523 | $ 511 |
Finance lease right-of-use assets | 158 | 126 |
Total right-of-use assets | 681 | 637 |
Operating lease liabilities | 608 | 601 |
Finance lease liabilities | 171 | 134 |
Total lease liabilities | $ 779 | $ 735 |
Operating lease right-of-use assets [Extensible List] | Other assets | Other assets |
Finance lease, right-of-use assets [Extensible List] | Bank premises and equipment (includes $16 and $19 held for sale) | Bank premises and equipment (includes $16 and $19 held for sale) |
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 | $ 316 | $ 292 |
Finance lease right of use asset, accumulated amortization | $ 53 | $ 77 |
Lease Obligations - Lessee - _2
Lease Obligations - Lessee - Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Amortization of ROU assets | $ 5 | $ 5 | $ 10 | $ 10 |
Interest on lease liabilities | 2 | 1 | 3 | 2 |
Total finance lease costs | 7 | 6 | 13 | 12 |
Operating lease cost | 22 | 22 | 44 | 44 |
Short-term lease cost | 0 | 1 | 0 | 1 |
Variable lease cost | 7 | 7 | 14 | 14 |
Sublease income | (1) | (1) | (1) | (1) |
Total operating lease costs | 28 | 29 | 57 | 58 |
Total lease costs | 35 | 35 | 70 | 70 |
Impairment losses and termination charges | $ 0 | $ 0 | $ 0 | $ 1 |
Lease Obligations - Lessee - Un
Lease Obligations - Lessee - Undiscounted Cash Flows (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Remainder of 2024 | $ 47 | |
2025 | 91 | |
2026 | 82 | |
2027 | 74 | |
2028 | 66 | |
2029 | 57 | |
Thereafter | 359 | |
Total undiscounted cash flows | 776 | |
Less: Difference between undiscounted cash flows and discounted cash flows | 168 | |
Present value of lease liabilities | 608 | $ 601 |
Finance Leases | ||
Remainder of 2024 | 12 | |
2025 | 23 | |
2026 | 22 | |
2027 | 21 | |
2028 | 21 | |
2029 | 11 | |
Thereafter | 104 | |
Total undiscounted cash flows | 214 | |
Less: Difference between undiscounted cash flows and discounted cash flows | 43 | |
Present value of lease liabilities | 171 | $ 134 |
Total | ||
Remainder of 2024 | 59 | |
2025 | 114 | |
2026 | 104 | |
2027 | 95 | |
2028 | 87 | |
2029 | 68 | |
Thereafter | 463 | |
Total undiscounted cash flows | 990 | |
Less: Difference between undiscounted cash flows and discounted cash flows | 211 | |
Present value of lease liabilities | $ 779 |
Lease Obligations - Lessee - Ot
Lease Obligations - Lessee - Other Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Operating leases, weighted average remaining lease term | 11 years 3 months 25 days | 11 years 25 days | |
Finance leases, weighted average remaining lease term | 12 years 9 months 10 days | 15 years 2 months 15 days | |
Operating leases, weighted average discount rate | 3.92% | 3.72% | |
Finance leases, weighted average discount rate | 3.79% | 3.02% | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 47 | $ 46 | |
Operating cash flows from finance leases | 3 | 2 | |
Financing cash flows from finance leases | 9 | 8 | |
Gains on sale-leaseback transactions | $ 0 | $ 1 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 354 | $ 361 |
Accumulated Amortization | (247) | (236) |
Net Carrying Amount | 107 | 125 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 206 | 209 |
Accumulated Amortization | (189) | (184) |
Net Carrying Amount | 17 | 25 |
Developed technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 106 | 106 |
Accumulated Amortization | (41) | (33) |
Net Carrying Amount | 65 | 73 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 28 | 30 |
Accumulated Amortization | (9) | (10) |
Net Carrying Amount | 19 | 20 |
Other | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 14 | 16 |
Accumulated Amortization | (8) | (9) |
Net Carrying Amount | $ 6 | $ 7 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Amortization expense | $ 8 | $ 10 | $ 18 | $ 23 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Remainder of 2024 | $ 17 |
2025 | 28 |
2026 | 22 |
2027 | 14 |
2028 | $ 9 |
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 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |||
Assets | |||||||||
Other short-term investments | [1] | $ 21,085 | $ 22,082 | ||||||
ALLL | (2,288) | [1] | $ (2,318) | (2,322) | [1] | $ (2,327) | $ (2,215) | $ (2,194) | |
Other assets | [1] | 12,938 | 12,538 | ||||||
Total Assets | 213,262 | 214,574 | |||||||
Liabilities | |||||||||
Other liabilities | [1] | 5,371 | 4,861 | ||||||
Long-term debt | [1] | 16,293 | 16,380 | ||||||
Total Liabilities | 194,036 | 195,402 | |||||||
Variable Interest Entity, Primary Beneficiary | Automobile And Solar Loan | |||||||||
Assets | |||||||||
Other short-term investments | 52 | 55 | |||||||
Indirect secured consumer loans | 1,237 | 1,535 | |||||||
Solar energy installation loans | 35 | 38 | |||||||
ALLL | (23) | (28) | |||||||
Other assets | 7 | 10 | |||||||
Total Assets | 1,308 | 1,610 | |||||||
Liabilities | |||||||||
Other liabilities | 13 | 14 | |||||||
Long-term debt | 1,136 | 1,409 | |||||||
Total Liabilities | $ 1,149 | $ 1,423 | |||||||
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity | ||
Total Assets | $ 213,262 | $ 214,574 |
Total Liabilities | 194,036 | 195,402 |
Variable Interest Entity, Not Primary Beneficiary | CDC investments | ||
Variable Interest Entity | ||
Total Assets | 2,142 | 2,007 |
Total Liabilities | 771 | 690 |
Maximum Exposure | 2,183 | 2,054 |
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | ||
Variable Interest Entity | ||
Total Assets | 253 | 230 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 456 | 400 |
Variable Interest Entity, Not Primary Beneficiary | Loans provided to VIEs | ||
Variable Interest Entity | ||
Total Assets | 4,365 | 4,274 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 6,737 | 6,395 |
Variable Interest Entity, Not Primary Beneficiary | Lease pool entities | ||
Variable Interest Entity | ||
Total Assets | 36 | 42 |
Total Liabilities | 0 | 0 |
Maximum Exposure | 36 | 42 |
Variable Interest Entity, Not Primary Beneficiary | Solar loan securitizations | ||
Variable Interest Entity | ||
Total Assets | 8 | 9 |
Total Liabilities | 0 | 0 |
Maximum Exposure | $ 8 | $ 9 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 USD ($) investment | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) investment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Aug. 31, 2023 USD ($) | |
Secured Debt [Member] | ||||||
Variable Interest Entity | ||||||
Principal amount | $ 79 | |||||
LLCs designed for the purpose of purchasing pools of residual interests in leases | ||||||
Variable Interest Entity | ||||||
Number of co-investments | investment | 3 | 3 | ||||
Ownership percentage (more than) | 50% | 50% | ||||
Variable Interest Entity, Not Primary Beneficiary | Loans provided to VIEs | ||||||
Variable Interest Entity | ||||||
Unfunded commitment amounts | $ 2,400 | $ 2,100 | ||||
Variable Interest Entity, Not Primary Beneficiary | CDC investments | ||||||
Variable Interest Entity | ||||||
CDC investments | $ 2,000 | 2,000 | 1,600 | |||
Unfunded commitments in qualifying LIHTC investments | 767 | $ 767 | 684 | |||
Variable Interest Entity, Not Primary Beneficiary | CDC investments | Minimum | ||||||
Variable Interest Entity | ||||||
Unfunded commitments, year expected to be funded | 2024 | |||||
Variable Interest Entity, Not Primary Beneficiary | CDC investments | Maximum | ||||||
Variable Interest Entity | ||||||
Unfunded commitments, year expected to be funded | 2040 | |||||
Variable Interest Entity, Not Primary Beneficiary | Private equity investments | ||||||
Variable Interest Entity | ||||||
Unfunded commitment amounts | $ 203 | $ 170 | ||||
Capital contribution to private equity investments | $ 11 | $ 8 | $ 25 | $ 20 | ||
Variable Interest Entity, Primary Beneficiary | Secured Debt [Member] | ||||||
Variable Interest Entity | ||||||
Principal amount | 1,580 | |||||
Variable Interest Entity, Primary Beneficiary | Automobile loan | ||||||
Variable Interest Entity | ||||||
Indirect secured consumer loans | $ 1,740 |
Variable Interest Entities - In
Variable Interest Entities - Investments in Qualified Affordable Housing Tax Credits (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Proportional amortization | $ 52,000,000 | $ 57,000,000 | $ 100,000,000 | $ 100,000,000 |
Tax credits and other benefits | (65,000,000) | (66,000,000) | (122,000,000) | (117,000,000) |
Equity method expenses | 2,000,000 | 0 | 4,000,000 | 0 |
Impairment losses | $ 0 | $ 0 | $ 0 | $ 0 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Transfers and Servicing [Abstract] | ||||
Residential mortgage loan sales | $ 761 | $ 1,233 | $ 1,474 | $ 2,508 |
Origination fees and gains on loan sales | 18 | 22 | 33 | 41 |
Gross mortgage servicing fees | $ 78 | $ 80 | $ 155 | $ 161 |
Sales of Receivables and Serv_4
Sales of Receivables and Servicing Rights - Changes in the Servicing Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Balance, beginning of period | $ 1,737 | $ 1,746 | ||
Servicing rights originated | 21 | 35 | ||
Servicing rights purchased | 0 | 23 | ||
Servicing rights sold | (5) | 0 | ||
Changes in fair value: | ||||
Due to changes in inputs or assumptions | $ 10 | $ 53 | 51 | 34 |
Other changes in fair value | (73) | (74) | ||
Balance, end of period | $ 1,731 | $ 1,764 | $ 1,731 | $ 1,764 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Transfers and Servicing [Abstract] | ||||
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio | $ (16) | $ (56) | $ (62) | $ (35) |
MSR fair value adjustments due to changes in inputs or assumptions | $ 10 | $ 53 | $ 51 | $ 34 |
Sales of Receivables and Serv_6
Sales of Receivables and Servicing Rights - Servicing Rights and Residual Interests Economic Assumptions (Details) - Fixed-rate | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Schedule of Servicing Assets at Amortized Value | ||
Weighted- Average Life (in years) | 7 years 10 months 24 days | 6 years 9 months 18 days |
Prepayment Speed (annual) (as a percent) | 9.40% | 12% |
OAS (bps) | 0.0472 | 0.0609 |
Sales of Receivables and Serv_7
Sales of Receivables and Servicing Rights - Additional Information (Details) - USD ($) $ in Billions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
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 | $ 97.3 | $ 100.8 | |
Weighted-average coupon of the MSR portfolio (as a percent) | 3.76% | 3.72% |
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 | 6 Months Ended |
Jun. 30, 2024 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 | $ 1,728 |
Weighted- Average Life (in years) | 8 years 8 months 12 days |
Prepayment Speed Assumption, Rate (as a percent) | 5.60% |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 10% | $ (38) |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 20% | (75) |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 50% | $ (173) |
OAS Speed Assumption, OAS (bps) | 0.0448 |
OAS Spread Assumption, Impact of Adverse Change on Fair Value 10% | $ (34) |
OAS Spread Assumption, Impact of Adverse Change on Fair Value 20% | (68) |
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 | $ 3 |
Weighted- Average Life (in years) | 3 years 8 months 12 days |
Prepayment Speed Assumption, Rate (as a percent) | 22.10% |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 10% | $ 0 |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 20% | 0 |
Prepayment Speed Assumption, Impact of Adverse Change on Fair Value 50% | $ (1) |
OAS Speed Assumption, OAS (bps) | 0.0693 |
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 | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative | |||||
Collateral held for derivative assets | $ 1,400,000,000 | $ 1,400,000,000 | $ 1,300,000,000 | ||
Valuation adjustments related to the credit risk associated with counterparties of customer accommodation derivative contracts | 4,000,000 | 4,000,000 | 7,000,000 | ||
Amount of variation margin payment applied to derivative liability contracts | 1,200,000,000 | 1,200,000,000 | 721,000,000 | ||
Gain or losses reclassified from AOCI into earnings associated with the discontinuance of cash flow hedges | 0 | $ 0 | 0 | $ 0 | |
Notional amount of the risk participations agreements | 3,346,000,000 | 3,346,000,000 | 3,563,000,000 | ||
Total collateral | |||||
Derivative | |||||
Collateral held for derivative liabilities | 1,200,000,000 | $ 1,200,000,000 | 1,100,000,000 | ||
Interest rate contracts | |||||
Derivative | |||||
Maximum length of time of hedging exposure | 91 months | ||||
Deferred loss, net of tax, on cash flow hedges recorded in accumulated other comprehensive income | 659,000,000 | $ 659,000,000 | 372,000,000 | ||
Net deferred loss, net of tax, recorded in AOCI are expected to be reclassified into earnings | 289,000,000 | 289,000,000 | |||
Interest rate contracts | Credit Risk | |||||
Derivative | |||||
Fair value of risk participation agreements | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | ||
Weighted-average remaining life | 2 years 4 months 24 days |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value | ||
Derivative assets, fair value, gross assets | $ 2,855 | $ 2,672 |
Derivative liabilities, fair value, gross liabilities | 3,283 | 2,999 |
Derivative assets | 2,860 | 2,677 |
Derivative liabilities | 3,283 | 2,999 |
Amount of variation margin payment applied to derivative asset contracts | 511 | 587 |
Amount of variation margin payment applied to derivative liability contracts | 1,200 | 721 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, gross assets | 1 | 10 |
Derivative liabilities, fair value, gross liabilities | 56 | 45 |
Designated as Hedging Instrument | Fair Value Hedging | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, gross assets | 1 | 0 |
Derivative liabilities, fair value, gross liabilities | 42 | 32 |
Designated as Hedging Instrument | Fair Value Hedging | Interest rate swap | Long-term debt | ||
Derivatives, Fair Value | ||
Notional amount | 5,955 | 5,955 |
Derivative assets, fair value, gross assets | 1 | 0 |
Derivative liabilities, fair value, gross liabilities | 42 | 32 |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, gross assets | 0 | 10 |
Derivative liabilities, fair value, gross liabilities | 14 | 13 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap | Commercial and industrial | ||
Derivatives, Fair Value | ||
Notional amount | 8,000 | 8,000 |
Derivative assets, fair value, gross assets | 0 | 2 |
Derivative liabilities, fair value, gross liabilities | 13 | 11 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate floor | Commercial and industrial | ||
Derivatives, Fair Value | ||
Notional amount | 3,000 | 3,000 |
Derivative assets, fair value, gross assets | 0 | 1 |
Derivative liabilities, fair value, gross liabilities | 0 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Forward starting interest rate swap | Commercial and industrial | ||
Derivatives, Fair Value | ||
Notional amount | 5,000 | 6,000 |
Derivative assets, fair value, gross assets | 0 | 6 |
Derivative liabilities, fair value, gross liabilities | 1 | 1 |
Designated as Hedging Instrument | Cash Flow Hedging | Forward starting interest rate swap | Commercial mortgage and commercial construction | ||
Derivatives, Fair Value | ||
Notional amount | 4,000 | 4,000 |
Derivative assets, fair value, gross assets | 0 | 1 |
Derivative liabilities, fair value, gross liabilities | 0 | 1 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Derivative assets | 2,859 | 2,667 |
Derivative liabilities | 3,227 | 2,954 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, gross assets | 24 | 83 |
Derivative liabilities, fair value, gross liabilities | 172 | 178 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest rate contracts related to MSR portfolio | ||
Derivatives, Fair Value | ||
Notional amount | 3,180 | 3,205 |
Derivative assets, fair value, gross assets | 20 | 81 |
Derivative liabilities, fair value, gross liabilities | 1 | 0 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Forward contracts related to residential mortgage loans measured at fair value | Loans Measured At Fair Value | ||
Derivatives, Fair Value | ||
Notional amount | 1,271 | 650 |
Derivative assets, fair value, gross assets | 2 | 0 |
Derivative liabilities, fair value, gross liabilities | 5 | 5 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Swap | ||
Derivatives, Fair Value | ||
Notional amount | 2,808 | 4,178 |
Derivative assets, fair value, gross assets | 0 | 0 |
Derivative liabilities, fair value, gross liabilities | 164 | 168 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Notional amount | 218 | 190 |
Derivative assets, fair value, gross assets | 1 | 0 |
Derivative liabilities, fair value, gross liabilities | 0 | 4 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Interest-only strips | ||
Derivatives, Fair Value | ||
Notional amount | 34 | 39 |
Derivative assets, fair value, gross assets | 1 | 1 |
Derivative liabilities, fair value, gross 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 | 3,000 | 5,000 |
Derivative assets, fair value, gross assets | 0 | 1 |
Derivative liabilities, fair value, gross liabilities | 1 | 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, fair value, gross assets | 0 | 0 |
Derivative liabilities, fair value, gross liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Risk Management and Other Business Purposes | Other | ||
Derivatives, Fair Value | ||
Notional amount | 38 | 30 |
Derivative assets, fair value, gross assets | 0 | 0 |
Derivative liabilities, fair value, gross liabilities | 1 | 0 |
Not Designated as Hedging Instrument | Customer Accommodation | ||
Derivatives, Fair Value | ||
Derivative assets | 2,835 | 2,584 |
Derivative liabilities | 3,055 | 2,776 |
Not Designated as Hedging Instrument | Customer Accommodation | Foreign exchange contracts | ||
Derivatives, Fair Value | ||
Notional amount | 39,512 | 37,734 |
Derivative assets, fair value, gross assets | 1,127 | 643 |
Derivative liabilities, fair value, gross liabilities | 1,092 | 596 |
Not Designated as Hedging Instrument | Customer Accommodation | Interest rate contracts for LIBOR transition | ||
Derivatives, Fair Value | ||
Notional amount | 675 | 675 |
Not Designated as Hedging Instrument | Customer Accommodation | Interest rate contracts | ||
Derivatives, Fair Value | ||
Notional amount | 91,331 | 95,079 |
Derivative assets, fair value, gross assets | 920 | 885 |
Derivative liabilities, fair value, gross liabilities | 1,190 | 1,162 |
Amount of variation margin payment applied to derivative asset contracts | 336 | 335 |
Amount of variation margin payment applied to derivative liability contracts | 62 | 58 |
Not Designated as Hedging Instrument | Customer Accommodation | Interest rate lock commitments | ||
Derivatives, Fair Value | ||
Notional amount | 446 | 252 |
Derivative assets, fair value, gross assets | 5 | 5 |
Derivative liabilities, fair value, gross liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Customer Accommodation | Commodity contracts | ||
Derivatives, Fair Value | ||
Notional amount | 17,544 | 17,621 |
Derivative assets, fair value, gross assets | 783 | 1,051 |
Derivative liabilities, fair value, gross liabilities | 773 | 1,018 |
Not Designated as Hedging Instrument | Customer Accommodation | TBA securities | ||
Derivatives, Fair Value | ||
Notional amount | 51 | 27 |
Derivative assets, fair value, gross assets | 0 | 0 |
Derivative liabilities, fair value, gross 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) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivatives, Fair Value | |||||
Hedged Asset, Statement of Financial Position [Extensible Enumeration] | Long-term debt | Long-term debt | Long-term debt | ||
Fair Value Hedging | Long-term debt | |||||
Derivatives, Fair Value | |||||
Carrying amount of the hedged items | $ 5,786 | $ 5,786 | $ 5,899 | ||
Fair Value Hedging | Long-term debt | |||||
Derivatives, Fair Value | |||||
Cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged items | (152) | (152) | (38) | ||
Fair Value Hedging | 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 | (10) | (10) | $ (11) | ||
Fair Value Hedging | Interest rate contracts | Interest on long-term debt | |||||
Derivatives, Fair Value | |||||
Change in fair value of interest rate swaps hedging financial instrument | (23) | $ (131) | (114) | $ (39) | |
Change in fair value of hedged financial instrument attributable to the risk being hedged | $ 23 | $ 131 | $ 114 | $ 42 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of pre-tax net losses recognized in OCI | $ (145) | $ (454) | $ (557) | $ (177) |
Amount of pre-tax net losses reclassified from OCI into net income | $ (90) | $ (81) | $ (179) | $ (146) |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (16) | $ (56) | $ (62) | $ (35) |
Interest rate contracts | Mortgage banking net revenue | MSR portfolio | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (16) | (56) | (62) | (35) |
Forward contracts related to residential mortgage loans measured at fair value | Mortgage banking net revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 1 | 11 | 6 | 3 |
Interest-only strips | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | (3) | 0 | (3) |
Foreign exchange contracts | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 2 | (3) | 7 | (3) |
Equity contracts | Other noninterest income | Swap | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (23) | $ (30) | $ (40) | $ (61) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Risk Ratings of the Notional Amount of Risk Participation Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 3,346 | $ 3,563 |
Pass | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 3,013 | 3,168 |
Special mention | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | 165 | 323 |
Substandard | ||
Derivatives, Fair Value | ||
Notional amount of the risk participations agreements | $ 168 | $ 72 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ (16) | $ (56) | $ (62) | $ (35) |
Interest rate contracts | Contract revenue | Commercial banking revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 6 | 11 | 11 | 21 |
Interest rate contracts | Credit portion of fair value adjustment | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 1 | 2 | 3 | (2) |
Interest rate contracts | Interest rate lock commitments | Mortgage banking net revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 11 | 13 | 20 | 26 |
Commodity contracts | Contract revenue | Commercial banking revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 4 | 11 | 8 | 21 |
Commodity contracts | Credit portion of fair value adjustment | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 0 | 0 | 1 | (1) |
Foreign exchange contracts | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 2 | (3) | 7 | (3) |
Foreign exchange contracts | Contract revenue | Commercial banking revenue | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | 23 | 23 | 40 | 43 |
Foreign exchange contracts | Contract revenue | Other noninterest income | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | (12) | (4) | (8) | (8) |
Foreign exchange contracts | Credit portion of fair value adjustment | Other noninterest expense | ||||
Derivative Instruments, Gain (Loss) | ||||
Net gains (losses) recorded in earnings | $ 0 | $ 1 | $ 0 | $ 3 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Offsetting Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative assets | ||
Gross Amount Recognized in the Consolidated Balance Sheets | $ 2,855 | $ 2,672 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Derivatives | (1,494) | (1,031) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral | (837) | (877) |
Net Amount | 524 | 764 |
Derivative liabilities | ||
Gross Amount Recognized in the Consolidated Balance Sheets | 3,283 | 2,999 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Derivatives | (1,494) | (1,031) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral | (187) | (159) |
Net Amount | $ 1,602 | $ 1,809 |
Other Short-Term Borrowings - S
Other Short-Term Borrowings - Summary of Other Short-Term Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Short-Term Debt [Abstract] | ||
FHLB advances | $ 3,000 | $ 2,500 |
Securities sold under repurchase agreements | 300 | 330 |
Derivative collateral | 35 | 3 |
Other borrowed money | 35 | 28 |
Other short-term borrowings | $ 3,370 | $ 2,861 |
Long-Term Debt (Details)
Long-Term Debt (Details) - Senior Notes - Fixed Rate Floating Rate 5.631% Senior Notes Due 2032 - Parent Company $ in Billions | Jan. 29, 2024 USD ($) |
Debt Instrument [Line Items] | |
Principal amount | $ 1 |
Interest rate | 5.631% |
Basis spread on variable rate (as a percent) | 1.84% |
One year prior to maturity date | |
Debt Instrument [Line Items] | |
Redemption period | 1 year |
60 days prior to maturity date | |
Debt Instrument [Line Items] | |
Redemption period | 60 days |
90 days prior to maturity | |
Debt Instrument [Line Items] | |
Redemption period | 180 days |
Capital Actions (Details)
Capital Actions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Capital Unit [Line Items] | |||
Value of shares repurchased | $ 125 | $ 125 | $ 201 |
June 12, 2024 ASR | |||
Capital Unit [Line Items] | |||
Value of shares repurchased | $ 125 | ||
Shares Repurchased on Repurchase Date (in shares) | 3,011,621 | ||
Shares Received from Forward Contract Settlement (in shares) | 496,767 | ||
Total Shares Repurchased (in shares) | 3,508,388 |
Commitments, Contingent Liabi_3
Commitments, Contingent Liabilities and Guarantees - Summary of Significant Commitments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments to extend credit | ||
Long-term Purchase Commitment | ||
Commitments | $ 79,884 | $ 81,570 |
Letters of credit | ||
Long-term Purchase Commitment | ||
Commitments | 2,029 | 2,095 |
Forward contracts related to residential mortgage loans measured at fair value | ||
Long-term Purchase Commitment | ||
Commitments | 1,271 | 650 |
Capital commitments for private equity investments | ||
Long-term Purchase Commitment | ||
Commitments | 203 | 170 |
Capital expenditures | ||
Long-term Purchase Commitment | ||
Commitments | 98 | 95 |
Purchase obligations | ||
Long-term Purchase Commitment | ||
Commitments | $ 47 | $ 69 |
Commitments, Contingent Liabi_4
Commitments, Contingent Liabilities and Guarantees - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | 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 | $ 12 | $ 12 | $ 6 | |||||||||||||||
Visa | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Fair value of liability | 164 | 164 | 168 | |||||||||||||||
Visa IPO, shares of Visa's Class B common stock received (in shares) | 10.1 | |||||||||||||||||
Visa Class B shares carryover basis | $ 0 | |||||||||||||||||
Escrow deposit | $ 500 | $ 500 | $ 150 | $ 350 | $ 600 | $ 250 | $ 300 | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 | |||
Residential mortgage loans | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Fair value of liability | 8 | 8 | ||||||||||||||||
Make-whole payments | 0 | 0 | 0 | 0 | ||||||||||||||
Repurchased outstanding principal | 4 | 14 | 15 | 32 | ||||||||||||||
Repurchase demand request | 12 | $ 24 | 28 | $ 60 | ||||||||||||||
Outstanding repurchase demand inventory | 10 | 10 | 8 | |||||||||||||||
Secured Debt | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 62 | 62 | 62 | |||||||||||||||
Standby Letters of Credit | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Reserve for unfunded commitments | $ 15 | $ 15 | $ 20 | |||||||||||||||
Standby letters of credit as a percentage of total letters of credit | 99% | 99% | 99% | |||||||||||||||
Standby Letters of Credit | Secured Debt | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Standby letters of credit as a percentage of total letters of credit | 74% | 74% | 72% | |||||||||||||||
Variable Rate Demand Note | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Total variable rate demand notes | $ 366 | $ 366 | $ 400 | |||||||||||||||
Letters of credit issued related to variable rate demand notes | 54 | 54 | 83 | |||||||||||||||
Variable Rate Demand Note | Available-for-sale debt and other securities | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Total variable rate demand notes | 0 | 0 | 6 | |||||||||||||||
Other Liabilities | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Reserve for unfunded commitments | 137 | 137 | 166 | |||||||||||||||
Other Liabilities | Residential mortgage loans | ||||||||||||||||||
Loss Contingencies | ||||||||||||||||||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | $ 7 | $ 7 | $ 7 |
Commitments, Contingent Liabi_5
Commitments, Contingent Liabilities and Guarantees - Risk Rating Under the Risk Rating System (Details) - Commitments to extend credit - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Line of Credit Facility | ||
Commitments | $ 79,884 | $ 81,570 |
Pass | ||
Line of Credit Facility | ||
Commitments | 77,984 | 79,593 |
Special mention | ||
Line of Credit Facility | ||
Commitments | 903 | 1,301 |
Substandard | ||
Line of Credit Facility | ||
Commitments | 995 | 676 |
Doubtful | ||
Line of Credit Facility | ||
Commitments | $ 2 | $ 0 |
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 | Jun. 30, 2024 USD ($) |
Line of Credit Facility | |
Commitments | $ 2,029 |
Less than 1 year | |
Line of Credit Facility | |
Commitments | 980 |
Less than 1 year | Commercial | |
Line of Credit Facility | |
Commitments | 7 |
1 - 5 years | |
Line of Credit Facility | |
Commitments | 1,042 |
1 - 5 years | Commercial | |
Line of Credit Facility | |
Commitments | 3 |
Over 5 years | |
Line of Credit Facility | |
Commitments | $ 7 |
Commitments, Contingent Liabi_7
Commitments, Contingent Liabilities and Guarantees - Letters of Credit (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 2,029 | $ 2,095 |
Pass | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 1,855 | 1,902 |
Special mention | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 66 | 81 |
Substandard | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | 106 | 112 |
Doubtful | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ||
Letters of credit | $ 2 | $ 0 |
Commitments, Contingent Liabi_8
Commitments, Contingent Liabilities and Guarantees - Visa Funding and Bancorp Cash Payments (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||||||||
Sep. 30, 2023 | Jun. 30, 2023 | 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 | ||||||||||||||
Visa Funding Amount | $ 150 | $ 500 | $ 350 | $ 600 | $ 250 | $ 300 | $ 600 | $ 450 | $ 150 | $ 1,565 | $ 400 | $ 800 | $ 500 | $ 3,000 |
Bancorp Cash Payment | ||||||||||||||
Loss Contingencies | ||||||||||||||
Bancorp Cash Payment Amount | $ 6 | $ 21 | $ 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 | ||||||
Jul. 09, 2024 USD ($) | Mar. 29, 2023 USD ($) | May 28, 2019 USD ($) | Sep. 17, 2018 USD ($) | Oct. 31, 2012 merchant | Dec. 31, 2013 lawsuit | Jun. 30, 2024 USD ($) | 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 | $ 74 | |||||||
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 | |||||||
Civil Monetary Penalty, Stipulated Final Judgement | Subsequent Event | ||||||||
Loss Contingencies | ||||||||
Damages awarded | $ 15 | |||||||
Civil Monetary Penalty, Consent Order | Subsequent Event | ||||||||
Loss Contingencies | ||||||||
Damages awarded | $ 5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Applicable income tax expense | $ 163 | $ 174 | $ 302 | $ 334 |
Effective income tax rate | 21.30% | 22.50% | 21.20% | 22.40% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Activity in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pretax unrealized losses | $ (24) | $ (1,203) | $ (548) | $ (73) |
Other comprehensive income (loss), tax effect | 11 | 282 | 134 | 17 |
Other comprehensive loss, net of tax | (13) | (921) | (414) | (56) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 19,018 | 18,364 | 19,172 | 17,327 |
Other comprehensive loss, net of tax | (13) | (921) | (414) | (56) |
Ending balance | 19,226 | 17,809 | 19,226 | 17,809 |
AOCI | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive loss, net of tax | (13) | (921) | (414) | (56) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (4,888) | (4,245) | (4,487) | (5,110) |
Other comprehensive loss, net of tax | (13) | (921) | (414) | (56) |
Ending balance | (4,901) | (5,166) | (4,901) | (5,166) |
Available-for-sale debt securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, pre-tax activity | (5) | (831) | (241) | (43) |
Other comprehensive income (loss), before reclassifications, tax effect | 4 | 198 | 59 | 10 |
Other comprehensive income (loss), before reclassifications, net activity | (1) | (633) | (182) | (33) |
Reclassification adjustment, pre-tax activity | 4 | 0 | 7 | 0 |
Reclassification adjustment, tax effect | (1) | 0 | (2) | 0 |
Reclassification adjustment, net activity | 3 | 0 | 5 | 0 |
Pretax unrealized losses | (1) | (831) | 760 | (43) |
Other comprehensive income (loss), tax effect | 3 | 198 | (152) | 10 |
Other comprehensive loss, net of tax | 2 | (633) | 608 | (33) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (3,488) | (3,989) | (4,094) | (4,589) |
Other comprehensive loss, net of tax | 2 | (633) | 608 | (33) |
Ending balance | (3,486) | (4,622) | (3,486) | (4,622) |
Available-for-sale debt securities transferred to held-to-maturity securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, pre-tax activity | (994) | |||
Other comprehensive income (loss), before reclassifications, tax effect | 209 | |||
Other comprehensive income (loss), before reclassifications, net activity | (785) | |||
Reclassification adjustment, pre-tax activity | 32 | 64 | ||
Reclassification adjustment, tax effect | (7) | (14) | ||
Reclassification adjustment, net activity | 25 | 50 | ||
Pretax unrealized losses | 32 | (930) | ||
Other comprehensive income (loss), tax effect | (7) | 195 | ||
Other comprehensive loss, net of tax | 25 | (735) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (760) | 0 | ||
Other comprehensive loss, net of tax | 25 | (735) | ||
Ending balance | (735) | (735) | ||
Cash flow hedge derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, pre-tax activity | (145) | (454) | (557) | (177) |
Other comprehensive income (loss), before reclassifications, tax effect | 36 | 102 | 132 | 40 |
Other comprehensive income (loss), before reclassifications, net activity | (109) | (352) | (425) | (137) |
Reclassification adjustment, pre-tax activity | 90 | 81 | 179 | 146 |
Reclassification adjustment, tax effect | (21) | (18) | (41) | (33) |
Reclassification adjustment, net activity | 69 | 63 | 138 | 113 |
Pretax unrealized losses | (55) | (373) | (378) | (31) |
Other comprehensive income (loss), tax effect | 15 | 84 | 91 | 7 |
Other comprehensive loss, net of tax | (40) | (289) | (287) | (24) |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (619) | (233) | (372) | (498) |
Other comprehensive loss, net of tax | (40) | (289) | (287) | (24) |
Ending balance | (659) | (522) | (659) | (522) |
Defined benefit pension plants, net | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, pre-tax activity | 0 | |||
Other comprehensive income (loss), before reclassifications, tax effect | 0 | |||
Other comprehensive income (loss), before reclassifications, net activity | 0 | |||
Reclassification adjustment, pre-tax activity | 0 | 1 | 0 | 1 |
Reclassification adjustment, tax effect | 0 | 0 | 0 | 0 |
Reclassification adjustment, net activity | 0 | 1 | 0 | 1 |
Pretax unrealized losses | 0 | 1 | 0 | 1 |
Other comprehensive income (loss), tax effect | 0 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | 0 | 1 | 0 | 1 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (17) | (19) | (17) | (19) |
Other comprehensive loss, net of tax | 0 | 1 | 0 | 1 |
Ending balance | (17) | (18) | (17) | (18) |
Other | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pretax unrealized losses | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), tax effect | 0 | 0 | 0 | 0 |
Other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (4) | (4) | (4) | (4) |
Other comprehensive loss, net of tax | 0 | 0 | 0 | 0 |
Ending balance | $ (4) | $ (4) | $ (4) | $ (4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification Out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Securities gains, net | $ 3 | $ 7 | $ 13 | $ 11 |
Interest on securities | 458 | 437 | 913 | 876 |
Interest and fees on loans and leases | 1,871 | 1,831 | 3,731 | 3,545 |
Income (loss) before income taxes | 764 | 775 | 1,424 | 1,493 |
Applicable income tax expense | (163) | (174) | (302) | (334) |
Net Income | 601 | 601 | 1,122 | 1,159 |
Compensation and benefits | (656) | (650) | (1,409) | (1,407) |
Reclassification out of AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Net Income | (97) | (64) | (193) | (114) |
Reclassification out of AOCI | Available-for-sale debt securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Securities gains, net | (4) | 0 | (7) | 0 |
Income (loss) before income taxes | (4) | 0 | (7) | 0 |
Applicable income tax expense | 1 | 0 | 2 | 0 |
Net Income | (3) | 0 | (5) | 0 |
Reclassification out of AOCI | Available-for-sale debt securities transferred to held-to-maturity securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest on securities | (32) | 0 | (64) | 0 |
Income (loss) before income taxes | (32) | 0 | (64) | 0 |
Applicable income tax expense | 7 | 0 | 14 | 0 |
Net Income | (25) | 0 | (50) | 0 |
Reclassification out of AOCI | Cash flow hedge derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Interest and fees on loans and leases | (90) | (81) | (179) | (146) |
Income (loss) before income taxes | (90) | (81) | (179) | (146) |
Applicable income tax expense | 21 | 18 | 41 | 33 |
Net Income | (69) | (63) | (138) | (113) |
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) | 0 | (1) |
Applicable income tax expense | 0 | 0 | 0 | 0 |
Net Income | 0 | (1) | 0 | (1) |
Compensation and benefits | $ 0 | $ (1) | $ 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Net income available to common shareholders | $ 561 | $ 562 | $ 1,041 | $ 1,097 |
Average common shares outstanding - basic (in shares) | 686,781,201 | 684,028,603 | 686,265,437 | 684,023,063 |
Effect of dilutive stock-based awards | 4,000,000 | 2,000,000 | 5,000,000 | 4,000,000 |
Average common shares outstanding - diluted (in shares) | 691,082,792 | 686,385,938 | 690,858,162 | 687,967,395 |
Earnings per share (in dollars per share) | $ 0.82 | $ 0.82 | $ 1.52 | $ 1.60 |
Earnings per diluted share (in dollars per share) | $ 0.81 | $ 0.82 | $ 1.51 | $ 1.59 |
Anti-dilutive securities (in shares) | 2,000,000 | 9,000,000 | 2,000,000 | 6,000,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | $ 38,986 | $ 38,986 | $ 50,419 | ||
Equity securities | 476 | 476 | 613 | ||
Derivative assets | 2,860 | 2,860 | 2,677 | ||
Liabilities: | |||||
Derivative liabilities | 3,283 | 3,283 | 2,999 | ||
Pretax unrealized losses | (24) | $ (1,203) | (548) | $ (73) | |
Available-for-sale debt securities transferred to held-to-maturity securities | |||||
Liabilities: | |||||
Pretax unrealized losses | 32 | (930) | |||
Residential Mortgage | |||||
Assets: | |||||
Residential mortgage loans | 109 | 124 | 109 | 124 | 116 |
U.S. Treasury and federal agencies securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 3,506 | 3,506 | 4,336 | ||
Obligations of states and political subdivisions securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 2 | 2 | 2 | ||
Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 4,369 | 4,369 | 4,912 | ||
Other securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 794 | 794 | 722 | ||
Liabilities: | |||||
FHLB, restricted stock holdings | 293 | 293 | 224 | ||
FRB, restricted stock holdings | 499 | 499 | 496 | ||
DTCC, restricted stock holdings | 2 | 2 | 2 | ||
Level 3 | Interest rate contracts | |||||
Assets: | |||||
Derivative assets | 6 | 10 | 6 | 10 | |
Liabilities: | |||||
Derivative liabilities | 6 | $ 8 | 6 | $ 8 | |
Recurring | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 38,192 | 38,192 | 49,697 | ||
Trading debt securities | 1,132 | 1,132 | 899 | ||
Equity securities | 476 | 476 | 613 | ||
Residential mortgage loans held for sale | 512 | 512 | 334 | ||
Derivative assets | 2,860 | 2,860 | 2,677 | ||
Total assets | 45,012 | 45,012 | 56,073 | ||
Liabilities: | |||||
Derivative liabilities | 3,283 | 3,283 | 2,999 | ||
Short positions | 234 | 234 | 107 | ||
Total liabilities | 3,517 | 3,517 | 3,106 | ||
Recurring | Interest rate contracts | |||||
Assets: | |||||
Derivative assets | 949 | 949 | 983 | ||
Liabilities: | |||||
Derivative liabilities | 1,254 | 1,254 | 1,213 | ||
Recurring | Foreign exchange contracts | |||||
Assets: | |||||
Derivative assets | 1,128 | 1,128 | 643 | ||
Liabilities: | |||||
Derivative liabilities | 1,092 | 1,092 | 600 | ||
Recurring | Equity contracts | |||||
Liabilities: | |||||
Derivative liabilities | 164 | 164 | 168 | ||
Recurring | Commodity contracts | |||||
Assets: | |||||
Derivative assets | 783 | 783 | 1,051 | ||
Liabilities: | |||||
Derivative liabilities | 773 | 773 | 1,018 | ||
Recurring | Servicing rights | |||||
Assets: | |||||
Servicing rights | 1,731 | 1,731 | 1,737 | ||
Recurring | Residential Mortgage | |||||
Assets: | |||||
Residential mortgage loans | 109 | 109 | 116 | ||
Recurring | U.S. Treasury and federal agencies securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 3,506 | 3,506 | 4,336 | ||
Trading debt securities | 601 | 601 | 647 | ||
Liabilities: | |||||
Short positions | 104 | 104 | 31 | ||
Recurring | Obligations of states and political subdivisions securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 2 | 2 | 2 | ||
Trading debt securities | 84 | 84 | 39 | ||
Recurring | Agency mortgage-backed securities | Residential Mortgage | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 4,757 | 4,757 | 10,282 | ||
Trading debt securities | 7 | 7 | 6 | ||
Recurring | Agency mortgage-backed securities | Commercial | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 21,155 | 21,155 | 25,720 | ||
Recurring | Non-agency mortgage-backed securities | Commercial | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 4,403 | 4,403 | 4,445 | ||
Recurring | Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 4,369 | 4,369 | 4,912 | ||
Trading debt securities | 440 | 440 | 207 | ||
Liabilities: | |||||
Short positions | 130 | 130 | 76 | ||
Recurring | Level 1 | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 3,506 | 3,506 | 4,336 | ||
Trading debt securities | 592 | 592 | 640 | ||
Equity securities | 450 | 450 | 600 | ||
Residential mortgage loans held for sale | 0 | 0 | 0 | ||
Derivative assets | 71 | 71 | 205 | ||
Total assets | 4,619 | 4,619 | 5,781 | ||
Liabilities: | |||||
Derivative liabilities | 74 | 74 | 33 | ||
Short positions | 104 | 104 | 31 | ||
Total liabilities | 178 | 178 | 64 | ||
Recurring | Level 1 | Interest rate contracts | |||||
Assets: | |||||
Derivative assets | 2 | 2 | 0 | ||
Liabilities: | |||||
Derivative liabilities | 2 | 2 | 5 | ||
Recurring | Level 1 | Foreign exchange contracts | |||||
Assets: | |||||
Derivative assets | 0 | 0 | 0 | ||
Liabilities: | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Recurring | Level 1 | Equity contracts | |||||
Liabilities: | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Recurring | Level 1 | Commodity contracts | |||||
Assets: | |||||
Derivative assets | 69 | 69 | 205 | ||
Liabilities: | |||||
Derivative liabilities | 72 | 72 | 28 | ||
Recurring | Level 1 | Servicing rights | |||||
Assets: | |||||
Servicing rights | 0 | 0 | 0 | ||
Recurring | Level 1 | Residential Mortgage | |||||
Assets: | |||||
Residential mortgage loans | 0 | 0 | 0 | ||
Recurring | Level 1 | U.S. Treasury and federal agencies securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 3,506 | 3,506 | 4,336 | ||
Trading debt securities | 592 | 592 | 640 | ||
Liabilities: | |||||
Short positions | 104 | 104 | 31 | ||
Recurring | Level 1 | Obligations of states and political subdivisions securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 0 | 0 | 0 | ||
Recurring | Level 1 | Agency mortgage-backed securities | Residential Mortgage | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 0 | 0 | 0 | ||
Recurring | Level 1 | Agency mortgage-backed securities | Commercial | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Recurring | Level 1 | Non-agency mortgage-backed securities | Commercial | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Recurring | Level 1 | Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 0 | 0 | 0 | ||
Liabilities: | |||||
Short positions | 0 | 0 | 0 | ||
Recurring | Level 2 | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 34,686 | 34,686 | 45,361 | ||
Trading debt securities | 540 | 540 | 259 | ||
Equity securities | 26 | 26 | 13 | ||
Residential mortgage loans held for sale | 512 | 512 | 334 | ||
Derivative assets | 2,783 | 2,783 | 2,466 | ||
Total assets | 38,547 | 38,547 | 48,433 | ||
Liabilities: | |||||
Derivative liabilities | 3,039 | 3,039 | 2,792 | ||
Short positions | 130 | 130 | 76 | ||
Total liabilities | 3,169 | 3,169 | 2,868 | ||
Recurring | Level 2 | Interest rate contracts | |||||
Assets: | |||||
Derivative assets | 941 | 941 | 977 | ||
Liabilities: | |||||
Derivative liabilities | 1,246 | 1,246 | 1,202 | ||
Recurring | Level 2 | Foreign exchange contracts | |||||
Assets: | |||||
Derivative assets | 1,128 | 1,128 | 643 | ||
Liabilities: | |||||
Derivative liabilities | 1,092 | 1,092 | 600 | ||
Recurring | Level 2 | Equity contracts | |||||
Liabilities: | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Recurring | Level 2 | Commodity contracts | |||||
Assets: | |||||
Derivative assets | 714 | 714 | 846 | ||
Liabilities: | |||||
Derivative liabilities | 701 | 701 | 990 | ||
Recurring | Level 2 | Servicing rights | |||||
Assets: | |||||
Servicing rights | 0 | 0 | 0 | ||
Recurring | Level 2 | Residential Mortgage | |||||
Assets: | |||||
Residential mortgage loans | 0 | 0 | 0 | ||
Recurring | Level 2 | U.S. Treasury and federal agencies securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 9 | 9 | 7 | ||
Liabilities: | |||||
Short positions | 0 | 0 | 0 | ||
Recurring | Level 2 | Obligations of states and political subdivisions securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 2 | 2 | 2 | ||
Trading debt securities | 84 | 84 | 39 | ||
Recurring | Level 2 | Agency mortgage-backed securities | Residential Mortgage | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 4,757 | 4,757 | 10,282 | ||
Trading debt securities | 7 | 7 | 6 | ||
Recurring | Level 2 | Agency mortgage-backed securities | Commercial | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 21,155 | 21,155 | 25,720 | ||
Recurring | Level 2 | Non-agency mortgage-backed securities | Commercial | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 4,403 | 4,403 | 4,445 | ||
Recurring | Level 2 | Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 4,369 | 4,369 | 4,912 | ||
Trading debt securities | 440 | 440 | 207 | ||
Liabilities: | |||||
Short positions | 130 | 130 | 76 | ||
Recurring | Level 3 | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 0 | 0 | 0 | ||
Equity securities | 0 | 0 | 0 | ||
Residential mortgage loans held for sale | 0 | 0 | 0 | ||
Derivative assets | 6 | 6 | 6 | ||
Total assets | 1,846 | 1,846 | 1,859 | ||
Liabilities: | |||||
Derivative liabilities | 170 | 170 | 174 | ||
Short positions | 0 | 0 | 0 | ||
Total liabilities | 170 | 170 | 174 | ||
Recurring | Level 3 | Interest rate contracts | |||||
Assets: | |||||
Derivative assets | 6 | 6 | 6 | ||
Liabilities: | |||||
Derivative liabilities | 6 | 6 | 6 | ||
Recurring | Level 3 | Foreign exchange contracts | |||||
Assets: | |||||
Derivative assets | 0 | 0 | 0 | ||
Liabilities: | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Recurring | Level 3 | Equity contracts | |||||
Liabilities: | |||||
Derivative liabilities | 164 | 164 | 168 | ||
Recurring | Level 3 | Commodity contracts | |||||
Assets: | |||||
Derivative assets | 0 | 0 | 0 | ||
Liabilities: | |||||
Derivative liabilities | 0 | 0 | 0 | ||
Recurring | Level 3 | Servicing rights | |||||
Assets: | |||||
Servicing rights | 1,731 | 1,731 | 1,737 | ||
Recurring | Level 3 | Residential Mortgage | |||||
Assets: | |||||
Residential mortgage loans | 109 | 109 | 116 | ||
Recurring | Level 3 | U.S. Treasury and federal agencies securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 0 | 0 | 0 | ||
Liabilities: | |||||
Short positions | 0 | 0 | 0 | ||
Recurring | Level 3 | Obligations of states and political subdivisions securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 0 | 0 | 0 | ||
Recurring | Level 3 | Agency mortgage-backed securities | Residential Mortgage | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 0 | 0 | 0 | ||
Recurring | Level 3 | Agency mortgage-backed securities | Commercial | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Recurring | Level 3 | Non-agency mortgage-backed securities | Commercial | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Recurring | Level 3 | Asset-backed securities and other debt securities | |||||
Assets: | |||||
Available-for-sale debt and other securities (amortized cost of $43,596 and $55,789) | 0 | 0 | 0 | ||
Trading debt securities | 0 | 0 | 0 | ||
Liabilities: | |||||
Short positions | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Net fair value of the interest rate lock commitments | $ 5 | $ 5 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bps | 3 | 3 | |||
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bps | 5 | 5 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bps | 3 | 3 | |||
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bps | 6 | 6 | |||
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | 0 | 0 | |||
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | 0 | 0 | |||
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | 0 | 0 | |||
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | 0 | 0 | |||
Gain resulting from observable price changes | 0 | $ 0 | 9 | $ 0 | |
Positive adjustments, cumulative amount | 18 | 18 | |||
Private equity, impairment | 0 | 1 | 0 | 2 | |
Private equity, cumulative impairment | 15 | 15 | |||
Residential Mortgage | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value changes included in earnings for instruments for which the fair value option was elected | 7 | 13 | |||
FVO valuation adjustments related to instrument-specific credit risk | 0 | $ 0 | |||
OREO | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Fair value adjustment | $ (1) | $ (1) | $ (1) | $ (1) |
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 | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Balance, beginning of period | $ 1,707 | $ 1,664 | $ 1,685 | $ 1,673 | |
Included in earnings | (42) | (7) | (44) | (75) | |
Purchases/originations | 10 | 26 | 20 | 56 | |
Sales | (5) | (5) | |||
Settlements | 5 | 3 | 18 | 27 | |
Transfers into Level 3 | 1 | 0 | 2 | 5 | |
Balance, end of period | 1,676 | 1,686 | 1,676 | 1,686 | |
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (12) | 8 | (2) | (57) | |
Derivative assets | 2,860 | 2,860 | $ 2,677 | ||
Derivative liabilities | 3,283 | 3,283 | $ 2,999 | ||
Unrealized gains or losses included in other comprehensive income for instruments still held | 0 | 0 | 0 | 0 | |
Interest rate contracts | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Derivative assets | 6 | 10 | 6 | 10 | |
Derivative liabilities | 6 | 8 | 6 | 8 | |
Servicing Rights | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Balance, beginning of period | 1,756 | 1,725 | 1,737 | 1,746 | |
Included in earnings | (30) | 13 | (22) | (40) | |
Purchases/originations | 10 | 26 | 21 | 58 | |
Sales | (5) | (5) | |||
Settlements | 0 | 0 | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 1,731 | 1,764 | 1,731 | 1,764 | |
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 7 | 33 | 35 | (3) | |
Interest rate contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Balance, beginning of period | 0 | 3 | 0 | (1) | |
Included in earnings | 12 | 11 | 21 | 25 | |
Purchases/originations | 0 | 0 | (1) | (2) | |
Sales | 0 | 0 | |||
Settlements | (12) | (12) | (20) | (20) | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 0 | 2 | 0 | 2 | |
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | 5 | 6 | 6 | 6 | |
Equity Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Balance, beginning of period | (162) | (192) | (168) | (195) | |
Included in earnings | (23) | (30) | (40) | (61) | |
Purchases/originations | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | |||
Settlements | 21 | 18 | 44 | 52 | |
Transfers into Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | (164) | (204) | (164) | (204) | |
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | (23) | (30) | (40) | (61) | |
Residential Mortgage Loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Balance, beginning of period | 113 | 128 | 116 | 123 | |
Included in earnings | (1) | (1) | (3) | 1 | |
Purchases/originations | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | |||
Settlements | (4) | (3) | (6) | (5) | |
Transfers into Level 3 | 1 | 0 | 2 | 5 | |
Balance, end of period | 109 | 124 | 109 | 124 | |
The amount of total (losses) gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held | $ (1) | $ (1) | $ (3) | $ 1 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | $ (42) | $ (7) | $ (44) | $ (75) |
Mortgage banking net revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | (20) | 22 | (5) | (16) |
Commercial banking revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | 1 | 1 | 1 | 2 |
Other noninterest income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gains and losses included in earnings | $ (23) | $ (30) | $ (40) | $ (61) |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | $ (12) | $ 8 | $ (2) | $ (57) |
Mortgage banking net revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | 10 | 37 | 37 | 2 |
Commercial banking revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | 1 | 1 | 1 | 2 |
Other noninterest income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Gain and losses included in earnings | $ (23) | $ (30) | $ (40) | $ (61) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs Recurring Basis) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative assets | $ 2,860 | $ 2,677 | |
Derivative liabilities | (3,283) | (2,999) | |
Servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Servicing rights | $ 1,731 | $ 1,764 | |
Servicing rights | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 0% | 0% | |
OAS (bps) | 0.0420 | 0.0477 | |
Servicing rights | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 100% | 100% | |
OAS (bps) | 0.1833 | 0.1447 | |
Servicing rights | Fixed | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 5.60% | 5.20% | |
OAS (bps) | 0.0448 | 0.0628 | |
Servicing rights | Adjustable | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Prepayment speed | 22.10% | 20.30% | |
OAS (bps) | 0.0693 | 0.1204 | |
IRLCs, net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative assets | $ 5 | $ 8 | |
IRLCs, net | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 18.80% | 30.20% | |
IRLCs, net | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 96% | 97.50% | |
IRLCs, net | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loan closing rates | 82.30% | 82.90% | |
Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative liabilities | $ (164) | $ (204) | |
Swap | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Dec. 31, 2026 | Sep. 30, 2024 | |
Swap | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Mar. 31, 2028 | Mar. 31, 2027 | |
Swap | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Timing of the resolution of the Covered Litigation | Jun. 30, 2027 | Sep. 30, 2025 | |
Residential Mortgage | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Loans measured at FV | $ 109 | $ 124 | $ 116 |
Residential Mortgage | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | (26.00%) | (23.50%) | |
Credit risk factor | 0% | 0% | |
Residential Mortgage | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | 5% | 5.50% | |
Credit risk factor | 0.60% | 1.10% | |
Residential Mortgage | Weighted-Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate risk factor | (14.10%) | (11.80%) | |
Credit risk factor | 0.10% | 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | $ 275 | $ 380 | $ 275 | $ 380 |
Fair value adjustment | (45) | (29) | (99) | (109) |
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 275 | 380 | 275 | 380 |
Commercial loans held for sale | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 4 | 7 | 4 | 7 |
Fair value adjustment | 0 | 0 | 0 | 0 |
Commercial loans held for sale | Commercial | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Commercial loans held for sale | Commercial | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Commercial loans held for sale | Commercial | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 4 | 7 | 4 | 7 |
Commercial loans and leases | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 67 | 171 | 67 | 171 |
Fair value adjustment | (44) | (21) | (104) | (97) |
Commercial loans and leases | Commercial | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 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 | 0 | 0 |
Commercial loans and leases | Commercial | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 67 | 171 | 67 | 171 |
Consumer and residential mortgage loans | Consumer | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 196 | 193 | 196 | 193 |
Fair value adjustment | 0 | (6) | (3) | (8) |
Consumer and residential mortgage loans | Consumer | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 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 | 0 | 0 |
Consumer and residential mortgage loans | Consumer | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 196 | 193 | 196 | 193 |
OREO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 5 | 5 | 5 | 5 |
Fair value adjustment | (1) | (1) | (1) | (1) |
OREO | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
OREO | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
OREO | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 5 | 5 | 5 | 5 |
Bank premises and equipment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 3 | 4 | 3 | 4 |
Fair value adjustment | 0 | 0 | 0 | (1) |
Bank premises and equipment | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Bank premises and equipment | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Bank premises and equipment | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 3 | 4 | 3 | 4 |
Private equity investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Fair value adjustment | 0 | (1) | 9 | (2) |
Private equity investments | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Private equity investments | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | 0 | 0 | 0 | 0 |
Private equity investments | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Assets, fair value | $ 0 | $ 0 | $ 0 | $ 0 |
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 | Jun. 30, 2024 | Jun. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | $ 275 | $ 380 |
Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 4 | 7 |
Commercial loans and leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 67 | 171 |
Consumer and residential mortgage loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 196 | 193 |
OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 5 | 5 |
Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 3 | 4 |
Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 275 | 380 |
Level 3 | Commercial loans held for sale | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 4 | 7 |
Level 3 | Commercial loans and leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 67 | 171 |
Level 3 | Consumer and residential mortgage loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 196 | 193 |
Level 3 | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 5 | 5 |
Level 3 | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 3 | 4 |
Level 3 | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
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 | 4 | 7 |
Level 3 | Comparable Company Analysis | Private equity investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 0 | 0 |
Level 3 | Appraised Value | Commercial loans and leases | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 67 | 171 |
Level 3 | Appraised Value | Consumer and residential mortgage loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 196 | 193 |
Level 3 | Appraised Value | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | 5 | 5 |
Level 3 | Appraised Value | Bank premises and equipment | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, fair value | $ 3 | $ 4 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Aggregate Fair Value | ||
Residential mortgage loans measured at fair value | $ 621 | $ 450 |
Past due loans of 30-89 days | 1 | 1 |
Nonaccrual loans | 2 | 2 |
Aggregate Unpaid Principal Balance | ||
Residential mortgage loans measured at fair value | 628 | 456 |
Past due loans of 30-89 days | 1 | 1 |
Nonaccrual loans | 2 | 2 |
Difference | ||
Residential mortgage loans measured at fair value | (7) | (6) |
Past due loans of 30-89 days | 0 | 0 |
Nonaccrual loans | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values for Certain Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | |
Financial assets: | |||
Other short-term investments | [1] | $ 21,085 | $ 22,082 |
Held-to-maturity securities | 11,443 | 2 | |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 537 | 378 | |
Portfolio loans and leases | 114,291 | 114,912 | |
Financial liabilities: | |||
Deposits | 166,768 | 168,912 | |
Federal funds purchased | 194 | 193 | |
Other short-term borrowings | 3,370 | 2,861 | |
Long-term debt | [1] | 16,293 | 16,380 |
Net Carrying Amount | |||
Financial assets: | |||
Cash and due from banks | 2,837 | 3,142 | |
Other short-term investments | 21,085 | 22,082 | |
Other securities | 794 | 722 | |
Held-to-maturity securities | 11,443 | 2 | |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 25 | 44 | |
Portfolio loans and leases | 114,182 | 114,796 | |
Financial liabilities: | |||
Deposits | 166,768 | 168,912 | |
Federal funds purchased | 194 | 193 | |
Other short-term borrowings | 3,370 | 2,861 | |
Long-term debt | 16,445 | 16,418 | |
Net Carrying Amount | Commercial | |||
Financial assets: | |||
Portfolio loans and leases | 70,670 | 71,616 | |
Net Carrying Amount | Consumer | |||
Financial assets: | |||
Portfolio loans and leases | 43,512 | 43,180 | |
Total Fair Value | |||
Financial assets: | |||
Cash and due from banks | 2,837 | 3,142 | |
Other short-term investments | 21,085 | 22,082 | |
Other securities | 794 | 722 | |
Held-to-maturity securities | 11,187 | 2 | |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 25 | 44 | |
Portfolio loans and leases | 111,393 | 113,176 | |
Financial liabilities: | |||
Deposits | 166,709 | 168,873 | |
Federal funds purchased | 194 | 193 | |
Other short-term borrowings | 3,376 | 2,872 | |
Long-term debt | 16,363 | 16,384 | |
Total Fair Value | Commercial | |||
Financial assets: | |||
Portfolio loans and leases | 70,953 | 71,766 | |
Total Fair Value | Consumer | |||
Financial assets: | |||
Portfolio loans and leases | 40,440 | 41,410 | |
Total Fair Value | Level 1 | |||
Financial assets: | |||
Cash and due from banks | 2,837 | 3,142 | |
Other short-term investments | 21,085 | 22,082 | |
Other securities | 0 | 0 | |
Held-to-maturity securities | 2,299 | 0 | |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 0 | 0 | |
Portfolio loans and leases | 0 | 0 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Federal funds purchased | 194 | 193 | |
Other short-term borrowings | 0 | 0 | |
Long-term debt | 12,926 | 14,481 | |
Total Fair Value | Level 1 | Commercial | |||
Financial assets: | |||
Portfolio loans and leases | 0 | 0 | |
Total Fair Value | Level 1 | Consumer | |||
Financial assets: | |||
Portfolio loans and leases | 0 | 0 | |
Total Fair Value | Level 2 | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Other short-term investments | 0 | 0 | |
Other securities | 794 | 722 | |
Held-to-maturity securities | 8,886 | 0 | |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 0 | 0 | |
Portfolio loans and leases | 0 | 0 | |
Financial liabilities: | |||
Deposits | 166,709 | 168,873 | |
Federal funds purchased | 0 | 0 | |
Other short-term borrowings | 3,376 | 2,872 | |
Long-term debt | 3,437 | 1,903 | |
Total Fair Value | Level 2 | Commercial | |||
Financial assets: | |||
Portfolio loans and leases | 0 | 0 | |
Total Fair Value | Level 2 | Consumer | |||
Financial assets: | |||
Portfolio loans and leases | 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 | 2 | |
Loans and leases held for sale (includes $512 and $334 of residential mortgage loans measured at fair value) | 25 | 44 | |
Portfolio loans and leases | 111,393 | 113,176 | |
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: | |||
Portfolio loans and leases | 70,953 | 71,766 | |
Total Fair Value | Level 3 | Consumer | |||
Financial assets: | |||
Portfolio loans and leases | $ 40,440 | $ 41,410 | |
[1] Includes $52 and $55 of other short-term investments, $1,272 and $1,573 of portfolio loans and leases, $(23) and $(28) of ALLL, $7 and $10 of other assets, $13 and $14 of other liabilities and $1,136 and $1,409 of long-term debt from consolidated VIEs that are included in their respective captions above at June 30, 2024 and December 31, 2023, respectively. For further information, refer to Note 11. |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information | |||||||
Number of business segments | segment | 3 | ||||||
Other noninterest expense | $ (253) | $ (266) | $ (521) | $ (519) | |||
Wealth and asset management revenue | (159) | (143) | (320) | (289) | |||
Operating Segments | Investment Advisors [Member] | |||||||
Segment Reporting Information | |||||||
Other noninterest expense | (38) | (35) | (74) | (71) | |||
Wealth and asset management revenue | $ (96) | $ (89) | $ (197) | $ (182) | |||
Operating Segments | Investment Advisors [Member] | Revision of Prior Period, Adjustment | |||||||
Segment Reporting Information | |||||||
Other noninterest expense | $ 186 | $ 177 | $ 180 | ||||
Wealth and asset management revenue | $ 186 | $ 177 | $ 180 |
Business Segments - Results of
Business Segments - Results of Operations and Average Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information | |||||||
Net interest income | $ 1,387 | $ 1,457 | $ 2,771 | $ 2,974 | |||
Provision for (benefit from) credit losses | 97 | 177 | 191 | 341 | |||
Net Interest Income After Provision for Credit Losses | 1,290 | 1,280 | 2,580 | 2,633 | |||
Noninterest Income | |||||||
Wealth and asset management revenue | 159 | 143 | 320 | 289 | |||
Service charges on deposits | 156 | 144 | 306 | 281 | |||
Commercial banking revenue | 144 | 146 | 288 | 307 | |||
Card and processing revenue | 108 | 106 | 210 | 206 | |||
Mortgage banking net revenue | 50 | 59 | 104 | 127 | |||
Leasing business revenue | 38 | 47 | 77 | 104 | |||
Other noninterest income | 37 | 74 | 88 | 97 | |||
Securities gains (losses), net | 3 | 7 | 13 | 11 | |||
Total noninterest income | 695 | 726 | 1,406 | 1,422 | |||
Noninterest Expense | |||||||
Compensation and benefits | 656 | 650 | 1,409 | 1,407 | |||
Technology and communications | 114 | 114 | 231 | 232 | |||
Net occupancy expense | 83 | 83 | 170 | 164 | |||
Equipment expense | 38 | 36 | 76 | 73 | |||
Leasing business expense | 34 | 31 | 66 | 60 | |||
Marketing expense | 22 | 31 | 48 | 65 | |||
Card and processing expense | 21 | 20 | 41 | 42 | |||
Other noninterest expense | 253 | 266 | 521 | 519 | |||
Total noninterest expense | 1,221 | 1,231 | 2,562 | 2,562 | |||
Income (loss) before income taxes | 764 | 775 | 1,424 | 1,493 | |||
Applicable income tax expense (benefit) | 163 | 174 | 302 | 334 | |||
Net Income | 601 | 601 | 1,122 | 1,159 | |||
Total goodwill | 4,918 | 4,919 | 4,918 | 4,919 | $ 4,919 | ||
Total assets | 213,262 | 207,276 | 213,262 | 207,276 | |||
Bank premises and equipment held for sale | 16 | 16 | 19 | ||||
Impairment losses on bank premises | 0 | 0 | 0 | 1 | |||
Impairment losses and termination charges | 0 | 0 | 0 | 1 | |||
Operating Segments | Commercial Banking | |||||||
Segment Reporting Information | |||||||
Net interest income | 656 | 1,021 | 1,342 | 1,997 | |||
Provision for (benefit from) credit losses | 137 | (9) | 208 | 37 | |||
Net Interest Income After Provision for Credit Losses | 519 | 1,030 | 1,134 | 1,960 | |||
Noninterest Income | |||||||
Wealth and asset management revenue | 1 | 0 | 2 | 1 | |||
Service charges on deposits | 104 | 92 | 203 | 180 | |||
Commercial banking revenue | 142 | 147 | 285 | 305 | |||
Card and processing revenue | 28 | 23 | 53 | 45 | |||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||
Leasing business revenue | 38 | 47 | 77 | 104 | |||
Other noninterest income | 17 | 28 | 34 | 44 | |||
Securities gains (losses), net | (7) | (1) | (6) | (8) | |||
Total noninterest income | 323 | 336 | 648 | 671 | |||
Noninterest Expense | |||||||
Compensation and benefits | 156 | 153 | 345 | 343 | |||
Technology and communications | 3 | 3 | 8 | 5 | |||
Net occupancy expense | 9 | 10 | 18 | 20 | |||
Equipment expense | 7 | 7 | 14 | 14 | |||
Leasing business expense | 1 | 1 | 1 | 1 | |||
Marketing expense | 22 | 31 | 48 | 65 | |||
Card and processing expense | 2 | 2 | 4 | 5 | |||
Other noninterest expense | 257 | 279 | 520 | 583 | |||
Total noninterest expense | 457 | 486 | 958 | 1,036 | |||
Income (loss) before income taxes | 385 | 880 | 824 | 1,595 | |||
Applicable income tax expense (benefit) | 65 | 169 | 136 | 305 | |||
Net Income | 320 | 711 | 688 | 1,290 | |||
Total goodwill | 2,324 | 2,324 | 2,324 | 2,324 | |||
Total assets | 77,123 | 83,238 | 77,123 | 83,238 | |||
Operating Segments | Consumer and Small Business Banking | |||||||
Segment Reporting Information | |||||||
Net interest income | 1,055 | 1,370 | 2,180 | 2,628 | |||
Provision for (benefit from) credit losses | 70 | 65 | 154 | 116 | |||
Net Interest Income After Provision for Credit Losses | 985 | 1,305 | 2,026 | 2,512 | |||
Noninterest Income | |||||||
Wealth and asset management revenue | 62 | 52 | 121 | 106 | |||
Service charges on deposits | 52 | 53 | 103 | 103 | |||
Commercial banking revenue | 1 | 1 | 3 | 2 | |||
Card and processing revenue | 79 | 79 | 154 | 155 | |||
Mortgage banking net revenue | 50 | 59 | 104 | 127 | |||
Leasing business revenue | 0 | 0 | 0 | 0 | |||
Other noninterest income | 28 | 27 | 55 | 52 | |||
Securities gains (losses), net | 0 | 0 | 0 | 0 | |||
Total noninterest income | 272 | 271 | 540 | 545 | |||
Noninterest Expense | |||||||
Compensation and benefits | 226 | 222 | 460 | 446 | |||
Technology and communications | 8 | 6 | 14 | 13 | |||
Net occupancy expense | 53 | 52 | 107 | 104 | |||
Equipment expense | 13 | 10 | 26 | 21 | |||
Leasing business expense | 19 | 18 | 42 | 35 | |||
Marketing expense | 0 | 0 | 0 | 0 | |||
Card and processing expense | 19 | 19 | 37 | 38 | |||
Other noninterest expense | 288 | 305 | 581 | 619 | |||
Total noninterest expense | 626 | 632 | 1,267 | 1,276 | |||
Income (loss) before income taxes | 631 | 944 | 1,299 | 1,781 | |||
Applicable income tax expense (benefit) | 132 | 198 | 273 | 373 | |||
Net Income | 499 | 746 | 1,026 | 1,408 | |||
Total goodwill | 2,369 | 2,369 | 2,369 | 2,369 | |||
Total assets | 90,242 | 85,755 | 90,242 | 85,755 | |||
Impairment losses on bank premises | 1 | ||||||
Operating Segments | Wealth and Asset Management | |||||||
Segment Reporting Information | |||||||
Net interest income | 54 | 95 | 112 | 196 | |||
Provision for (benefit from) credit losses | 0 | 0 | 0 | 0 | |||
Net Interest Income After Provision for Credit Losses | 54 | 95 | 112 | 196 | |||
Noninterest Income | |||||||
Wealth and asset management revenue | 96 | 89 | 197 | 182 | |||
Service charges on deposits | 0 | 0 | 0 | 0 | |||
Commercial banking revenue | 1 | 0 | 1 | 0 | |||
Card and processing revenue | 1 | 1 | 1 | 1 | |||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||
Leasing business revenue | 0 | 0 | 0 | 0 | |||
Other noninterest income | 0 | 1 | 1 | 0 | |||
Securities gains (losses), net | 0 | 0 | 0 | 0 | |||
Total noninterest income | 98 | 91 | 200 | 183 | |||
Noninterest Expense | |||||||
Compensation and benefits | 52 | 55 | 114 | 116 | |||
Technology and communications | 0 | 0 | 0 | 0 | |||
Net occupancy expense | 3 | 3 | 6 | 6 | |||
Equipment expense | 0 | 0 | 0 | 0 | |||
Leasing business expense | 0 | 0 | 0 | 1 | |||
Marketing expense | 0 | 0 | 0 | 0 | |||
Card and processing expense | 0 | 0 | 1 | 0 | |||
Other noninterest expense | 38 | 35 | 74 | 71 | |||
Total noninterest expense | 93 | 93 | 195 | 194 | |||
Income (loss) before income taxes | 59 | 93 | 117 | 185 | |||
Applicable income tax expense (benefit) | 12 | 20 | 25 | 39 | |||
Net Income | 47 | 73 | 92 | 146 | |||
Total goodwill | 225 | 226 | 225 | 226 | |||
Total assets | 10,480 | 10,691 | 10,480 | 10,691 | |||
Operating Segments | Wealth and Asset Management | Revision of Prior Period, Adjustment | |||||||
Noninterest Income | |||||||
Wealth and asset management revenue | (186) | $ (177) | $ (180) | ||||
Noninterest Expense | |||||||
Other noninterest expense | $ (186) | $ (177) | $ (180) | ||||
General Corporate and Other | |||||||
Segment Reporting Information | |||||||
Net interest income | (378) | (1,029) | (863) | (1,847) | |||
Provision for (benefit from) credit losses | (110) | 121 | (171) | 188 | |||
Net Interest Income After Provision for Credit Losses | (268) | (1,150) | (692) | (2,035) | |||
Noninterest Income | |||||||
Wealth and asset management revenue | 0 | 2 | 0 | 0 | |||
Service charges on deposits | 0 | (1) | 0 | (2) | |||
Commercial banking revenue | 0 | (2) | (1) | 0 | |||
Card and processing revenue | 0 | 3 | 2 | 5 | |||
Mortgage banking net revenue | 0 | 0 | 0 | 0 | |||
Leasing business revenue | 0 | 0 | 0 | 0 | |||
Other noninterest income | (8) | 18 | (2) | 1 | |||
Securities gains (losses), net | 10 | 8 | 19 | 19 | |||
Total noninterest income | 2 | 28 | 18 | 23 | |||
Noninterest Expense | |||||||
Compensation and benefits | 222 | 220 | 490 | 502 | |||
Technology and communications | 103 | 105 | 209 | 214 | |||
Net occupancy expense | 18 | 18 | 39 | 34 | |||
Equipment expense | 18 | 19 | 36 | 38 | |||
Leasing business expense | 14 | 12 | 23 | 23 | |||
Marketing expense | 0 | 0 | 0 | 0 | |||
Card and processing expense | 0 | (1) | (1) | (1) | |||
Other noninterest expense | (330) | (353) | (654) | (754) | |||
Total noninterest expense | 45 | 20 | 142 | 56 | |||
Income (loss) before income taxes | (311) | (1,142) | (816) | (2,068) | |||
Applicable income tax expense (benefit) | (46) | (213) | (132) | (383) | |||
Net Income | (265) | (929) | (684) | (1,685) | |||
Total goodwill | 0 | 0 | 0 | 0 | |||
Total assets | 35,417 | 27,592 | 35,417 | 27,592 | |||
Bank premises and equipment held for sale | $ 16 | $ 22 | $ 16 | $ 22 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 23, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 18, 2019 | |
Subsequent Event [Line Items] | |||||
Value of shares repurchased | $ 125 | $ 125 | $ 201 | ||
Share repurchased program, authorized amount (in shares) | 100 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Value of shares repurchased | $ 200 |
Subsequent Events - Summary of
Subsequent Events - Summary of Accelerated Share Repurchase Transaction (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 23, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Subsequent Event [Line Items] | ||||
Value of shares repurchased | $ 125 | $ 125 | $ 201 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Value of shares repurchased | $ 200 | |||
July 23, 2024 ASR | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Value of shares repurchased | $ 200 | |||
Shares Repurchased on Repurchase Date (in shares) | 4,160,548 | |||
Shares Received from Forward Contract Settlement (in shares) | 713,340 | |||
Total Shares Repurchased (in shares) | 4,873,888 |