Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Entity Information | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'FITB | ' |
Entity Registrant Name | 'FIFTH THIRD BANCORP | ' |
Entity Central Index Key | '0000035527 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 882,835,548 |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and due from banks | $2,887 | [1] | $2,441 | [1] |
Available-for-sale and other securities | 18,080 | [2] | 15,207 | [2] |
Held-to-maturity securities | 265 | [3] | 284 | [3] |
Trading securities | 246 | 207 | ||
Other short-term investments | 2,622 | 2,421 | ||
Loans held for sale | 1,330 | [4] | 2,939 | [4] |
Portfolio loans and leases: | ' | ' | ||
Commercial and industrial loans | 38,253 | 36,038 | ||
Commercial mortgage loans | 8,052 | [1] | 9,103 | [1] |
Commercial construction loans | 875 | 698 | ||
Commercial leases | 3,572 | 3,549 | ||
Residential mortgage loans | 12,534 | [5] | 12,017 | [5] |
Home equity | 9,356 | 10,018 | ||
Automobile loans | 12,072 | [1] | 11,972 | [1] |
Credit card | 2,157 | 2,097 | ||
Other consumer loans and leases | 360 | 290 | ||
Portfolio loans and leases | 87,231 | 85,782 | ||
Allowance for loan and lease losses | -1,677 | [1] | -1,854 | [1] |
Portfolio loans and leases, net | 85,554 | 83,928 | ||
Bank premises and equipment | 2,528 | 2,542 | ||
Operating lease equipment | 707 | 581 | ||
Goodwill | 2,416 | 2,416 | ||
Intangible assets | 21 | 27 | ||
Servicing rights | 919 | 697 | ||
Other assets | 8,098 | [1] | 8,204 | [1] |
Total Assets | 125,673 | 121,894 | ||
Liabilities | ' | ' | ||
Demand | 30,153 | 30,023 | ||
Interest checking | 23,527 | 24,477 | ||
Savings | 17,583 | 19,879 | ||
Money market | 10,433 | 6,875 | ||
Other time | 3,524 | 4,015 | ||
Certificates - $100,000 and over | 7,497 | 3,284 | ||
Foreign office and other | 1,409 | 964 | ||
Total deposits | 94,126 | 89,517 | ||
Federal funds purchased | 225 | 901 | ||
Other short-term borrowings | 3,487 | 6,280 | ||
Accrued taxes, interest and expenses | 1,692 | 1,708 | ||
Other liabilities | 3,365 | [1] | 2,639 | [1] |
Long-term debt | 8,098 | [1] | 7,085 | [1] |
Total liabilities | 110,993 | 108,130 | ||
Equity | ' | ' | ||
Common stock | 2,051 | [6] | 2,051 | [6] |
Preferred stock | 593 | [7] | 398 | [7] |
Capital surplus | 2,565 | 2,758 | ||
Retained earnings | 9,876 | 8,768 | ||
Accumulated other comprehensive income | 218 | 375 | ||
Treasury stock | -662 | [6] | -634 | [6] |
Bancorp Shareholders' Equity | 14,641 | 13,716 | ||
Noncontrolling interests | 39 | 48 | ||
Total Equity | 14,680 | 13,764 | ||
Total Liabilities and Equity | $125,673 | $121,894 | ||
[1] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. | |||
[2] | Amortized cost of $17,665 and $14,571 at September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Fair value of $265 and $284 at September 30, 2013 and December 31, 2012, respectively. | |||
[4] | Includes $1,298 and $2,856 of residential mortgage loans held for sale measured at fair value at September 30, 2013 and December 31, 2012, respectively. | |||
[5] | Includes $89 and $76 of residential mortgage loans measured at fair value at September 30, 2013 and December 31, 2012, respectively. | |||
[6] | Common shares: Stated value $2.22 per share; authorized 2,000,000,000; outstanding at September 30, 2013 – 887,029,539 (excludes 36,863,042 treasury shares), December 31, 2012 – 882,152,057 (excludes 41,740,524 treasury shares). | |||
[7] | 476,000 shares of undesignated no par value preferred stock are authorized and unissued at September 30, 2013; fixed-to-floating rate non-cumulative Series H perpetual preferred stock with a $25,000 liquidation preference: 24,000 authorized, issued and outstanding at September 30, 2013 and 8.5% non-cumulative Series G convertible (into 2,159.8272 common shares) perpetual preferred stock with a $25,000 liquidation preference: 46,000 authorized and 16,450 issued and outstanding at December 31, 2012. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, except Share data, unless otherwise specified | ||||
Cash and due from banks | $2,887 | [1] | $2,441 | [1] |
Commercial mortgage loans | 8,052 | [1] | 9,103 | [1] |
Automobile loans | 12,072 | [1] | 11,972 | [1] |
Allowance for loan and lease losses | -1,677 | [1] | -1,854 | [1] |
Other assets | 8,098 | [1] | 8,204 | [1] |
Other liabilities | 3,365 | [1] | 2,639 | [1] |
Long-term debt | 8,098 | [1] | 7,085 | [1] |
Available-for-sale and other securities, amortized cost | 17,665 | 14,571 | ||
Held-to-maturity securities, fair value | 265 | 284 | ||
Residential mortgage loans held for sale | 1,298 | 2,856 | ||
Residential mortgage loans measured at fair value | 89 | 76 | ||
Common stock, stated value | $2.22 | $2.22 | ||
Common stock, authorized | 2,000,000,000 | 2,000,000,000 | ||
Common stock, outstanding | 887,029,539 | 882,152,057 | ||
Common stock, treasury shares | 36,863,042 | 41,740,524 | ||
Variable Interest Entities | ' | ' | ||
Cash and due from banks | 53 | 0 | ||
Commercial mortgage loans | 50 | 50 | ||
Automobile loans | 1,145 | 0 | ||
Allowance for loan and lease losses | -16 | -5 | ||
Other assets | 12 | 3 | ||
Other liabilities | 2 | 0 | ||
Long-term debt | $1,198 | $0 | ||
Preferred Stock | ' | ' | ||
Preferred stock, authorized | 476,000 | 454,000 | ||
Preferred stock Series G | ' | ' | ||
Preferred stock, Convertible | ' | 2,159.83 | ||
Preferred stock, liquidation preference | ' | $25,000 | ||
Preferred stock, authorized | ' | 46,000 | ||
Preferred stock, issued | ' | 16,450 | ||
Preferred stock, outstanding | ' | 16,450 | ||
Preferred stock Series H | ' | ' | ||
Preferred stock, liquidation preference | $25,000 | ' | ||
Preferred stock, authorized | 24,000 | ' | ||
Preferred stock, issued | 24,000 | ' | ||
Preferred stock, outstanding | 24,000 | ' | ||
[1] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME Unaudited (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Income | ' | ' | ' | ' |
Interest and fees on loans and leases | $857 | $893 | $2,603 | $2,683 |
Interest on securities | 134 | 129 | 365 | 405 |
Interest on other short-term investments | 1 | 1 | 3 | 3 |
Total interest income | 992 | 1,023 | 2,971 | 3,091 |
Interest Expense | ' | ' | ' | ' |
Interest on deposits | 51 | 52 | 154 | 165 |
Interest on other short-term borrowings | 1 | 3 | 5 | 6 |
Interest on long-term debt | 47 | 65 | 151 | 224 |
Total interest expense | 99 | 120 | 310 | 395 |
Net Interest Income | 893 | 903 | 2,661 | 2,696 |
Provision for loan and lease losses | 51 | 65 | 176 | 227 |
Net Interest Income After Provision for Loan and Lease Losses | 842 | 838 | 2,485 | 2,469 |
Noninterest Income | ' | ' | ' | ' |
Mortgage banking net revenue | 121 | 200 | 574 | 588 |
Service charges on deposits | 140 | 128 | 407 | 387 |
Investment advisory revenue | 97 | 92 | 295 | 281 |
Corporate banking revenue | 102 | 101 | 307 | 299 |
Card and processing revenue | 69 | 65 | 201 | 187 |
Other noninterest income | 185 | 78 | 708 | 359 |
Securities gains, net | 2 | 2 | 19 | 13 |
Securities gains, net - non-qualifying hedges on mortgage servicing rights | 5 | 5 | 13 | 5 |
Total noninterest income | 721 | 671 | 2,524 | 2,119 |
Noninterest Expense | ' | ' | ' | ' |
Salaries, wages and incentives | 389 | 399 | 1,193 | 1,191 |
Employee benefits | 83 | 79 | 280 | 274 |
Net occupancy expense | 75 | 76 | 230 | 227 |
Technology and communications | 52 | 49 | 151 | 144 |
Card and processing expense | 33 | 30 | 97 | 90 |
Equipment expense | 29 | 28 | 85 | 82 |
Other noninterest expense | 298 | 345 | 936 | 910 |
Total noninterest expense | 959 | 1,006 | 2,972 | 2,918 |
Income (Loss) Before Income Taxes | 604 | 503 | 2,037 | 1,670 |
Applicable income tax expense | 183 | 139 | 613 | 491 |
Net Income (Loss) | 421 | 364 | 1,424 | 1,179 |
Less: Net income attributable to noncontrolling interests | ' | 1 | -9 | 1 |
Net income attributable to Bancorp | 421 | 363 | 1,433 | 1,178 |
Dividends on preferred stock | ' | 9 | 18 | 26 |
Net income (loss) available to common shareholders | $421 | $354 | $1,415 | $1,152 |
Earnings Per Share | $0.47 | $0.39 | $1.62 | $1.26 |
Earnings Per Diluted Share | $0.47 | $0.38 | $1.58 | $1.23 |
Average common shares - basic | 880,182,513 | 904,474,989 | 869,930,016 | 911,056,331 |
Average common shares - diluted | 888,111,269 | 944,820,608 | 900,541,471 | 952,258,953 |
Cash dividends declared per share | $0.12 | $0.10 | $0.35 | $0.26 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Unaudited (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other Comprehensive Income | ' | ' | ' | ' |
Net income (loss) | $421 | $364 | $1,424 | $1,179 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | ' | ' | ' |
Unrealized holding gains (losses) on available-for-sale securities arising during period | 69 | 22 | -178 | 19 |
Reclassification adjustment for net gains included in net income | -4 | -4 | 34 | -10 |
Unrealized holding (losses) gains on cash flow hedge derivatives arising during period | 6 | 8 | 5 | 23 |
Reclassification adjustment for net (gains) losses on cash flow hedge derivatives included in net income | -4 | -14 | -24 | -41 |
Net actuarial loss | 2 | 2 | 6 | 7 |
Other comprehensive income (loss), Net of Tax | 69 | 14 | -157 | -2 |
Comprehensive income | 490 | 378 | 1,267 | 1,177 |
Comprehensive income attributable to noncontrolling interests | ' | 1 | -9 | 1 |
Comprehensive income attributable to Bancorp | $490 | $377 | $1,276 | $1,176 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited (USD $) | Total | Common Stock | Preferred Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income(Loss) | Treasury Stock | Total Bancorp Shareholders' Equity | Non- Controlling Interest |
In Millions, unless otherwise specified | |||||||||
Beginning Balance at Dec. 31, 2011 | $13,251 | $2,051 | $398 | $2,792 | $7,554 | $470 | ($64) | $13,201 | $50 |
Net income (loss) | 1,179 | ' | ' | ' | 1,178 | ' | ' | 1,178 | 1 |
Other comprehensive income (loss), Net of Tax | -2 | ' | ' | ' | ' | -2 | ' | -2 | ' |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock at $0.35 in 2013 and $0.26 in 2012 per share | -237 | ' | ' | ' | -237 | ' | ' | -237 | ' |
Preferred stock | -26 | ' | ' | ' | -26 | ' | ' | -26 | ' |
Shares acquired for treasury | 425 | ' | ' | 34 | ' | ' | 391 | 425 | ' |
Impact of stock transactions under stock compensation plans, net | 27 | ' | ' | -26 | ' | ' | 53 | 27 | ' |
Other | 2 | ' | ' | 1 | -3 | ' | 4 | 2 | ' |
Ending Balance at Sep. 30, 2012 | 13,769 | 2,051 | 398 | 2,733 | 8,466 | 468 | -398 | 13,718 | 51 |
Beginning Balance at Dec. 31, 2012 | 13,764 | 2,051 | 398 | 2,758 | 8,768 | 375 | -634 | 13,716 | 48 |
Net income (loss) | 1,424 | ' | ' | ' | 1,433 | ' | ' | 1,433 | -9 |
Other comprehensive income (loss), Net of Tax | -157 | ' | ' | ' | ' | -157 | ' | -157 | ' |
Cash dividends declared: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock at $0.35 in 2013 and $0.26 in 2012 per share | -305 | ' | ' | ' | -305 | ' | ' | -305 | ' |
Preferred stock | -18 | ' | ' | ' | -18 | ' | ' | -18 | ' |
Shares acquired for treasury | 664 | ' | ' | 58 | ' | ' | 606 | 664 | ' |
Issuance of preferred stock | 593 | ' | 593 | ' | ' | ' | ' | 593 | ' |
Redemption of preferred stock | ' | ' | -398 | -142 | ' | ' | 540 | ' | ' |
Impact of stock transactions under stock compensation plans, net | 42 | ' | ' | 7 | ' | ' | 35 | 42 | ' |
Other | 1 | ' | ' | ' | -2 | ' | 3 | 1 | ' |
Ending Balance at Sep. 30, 2013 | $14,680 | $2,051 | $593 | $2,565 | $9,876 | $218 | ($662) | $14,641 | $39 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Unaudited (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity | ' | ' | ' | ' |
Common stock, per share | $0.12 | $0.10 | $0.35 | $0.26 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
Operating Activities | ' | ' | |
Net income attributable to Bancorp | $1,424 | $1,179 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Provision for loan and lease losses | 176 | 227 | |
Depreciation, amortization and accretion | 410 | 388 | |
Stock-based compensation expense | 60 | 54 | |
Provision for deferred income taxes | 195 | 133 | |
Securities gains | -152 | -50 | |
Securities gains - non-qualifying hedges on mortgage servicing rights | -13 | -10 | |
Securities losses | 133 | 37 | |
Securities losses - non-qualifying hedges on mortgage servicing rights | ' | 5 | |
(Recovery of) provision for MSR impairment (Mortgage banking net revenue) | -150 | 122 | |
Net gains on sales of loans and fair value adjustments on loans held for sale | -391 | -164 | |
Bank premises and equipment impairment | 2 | 19 | |
Capitalized servicing rights | -217 | -254 | |
Loss on extinguishment on TruPS redemptions | ' | 26 | |
Proceeds from sales of loans held for sale | 19,615 | 16,955 | |
Loans originated for sale, net of repayments | -16,991 | -15,469 | |
Dividends representing return on equity method investments | 37 | 27 | |
Gain on sale of Vantiv, Inc. shares and Vantiv, Inc. IPO | -327 | -115 | |
Net change in: | ' | ' | |
Trading securities | -35 | -26 | |
Other assets | -288 | -203 | |
Accrued taxes, interest and expenses | -117 | 8 | |
Other liabilities | 456 | -153 | |
Net Cash Provided by (Used in) Operating Activities | 3,827 | 2,736 | |
Sales: | ' | ' | |
Available-for-sale securities | 7,146 | 2,282 | |
Loans | 619 | 209 | |
Disposal of bank premises and equipment | 27 | 5 | |
Repayments / maturities: | ' | ' | |
Available-for-sale securities | 2,657 | 3,111 | |
Held-to-maturity securities | 18 | 33 | |
Purchases: | ' | ' | |
Available-for-sale securities | -12,780 | -5,291 | |
Bank premises and equipment | -198 | -271 | |
Proceeds from sale and dividends representing return of equity method investments | 644 | 116 | |
Net change in: | ' | ' | |
Other short-term investments | -201 | 496 | |
Loans and leases | -3,125 | -2,925 | |
Operating lease equipment | -167 | -76 | |
Net Cash (Used in) Provided by Investing Activities | -5,360 | -2,311 | |
Net change in: | ' | ' | |
Core deposits | 475 | -992 | |
Certificates - $100,000 and over, including foreign office and other | 4,134 | -29 | |
Federal funds purchased | -676 | 340 | |
Other short-term borrowings | -2,793 | 2,264 | |
Dividends paid on common shares | -286 | -221 | |
Dividends paid on preferred shares | -18 | -17 | |
Proceeds from issuance of long-term debt | 2,548 | 516 | |
Repayment of long-term debt | -1,317 | -2,015 | |
Shares acquired for treasury | 664 | 425 | |
Issuance of preferred shares | 593 | ' | |
Other | -17 | -19 | |
Net Cash Provided by (Used in) Financing Activities | 1,979 | -598 | |
Increase (Decrease) in Cash and Due from Banks | 446 | -173 | |
Cash and Due from Banks at Beginning of Period | 2,441 | [1] | 2,663 |
Cash and Due from Banks at End of Period | $2,887 | [1] | $2,490 |
[1] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation | ' |
Summary of Significant Accounting and Reporting Policies | ' |
1. 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 the lower of cost or fair value. Intercompany transactions and balances have been eliminated. | |
In the opinion of management, the unaudited Condensed Consolidated Financial Statements include all adjustments, which consist of normal recurring accruals, necessary to present fairly the results for the periods presented. In accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial information, these statements do not include certain information and footnote disclosures required for complete annual financial statements and it is suggested that these Condensed Consolidated Financial Statements be read in conjunction with the latest annual financial statements. The results of operations and comprehensive income for the three and nine months ended September 30, 2013 and 2012 and the cash flows and changes in equity for the nine months ended September 30, 2013 and 2012 are not necessarily indicative of the results to be expected for the full year. Financial information as of December 31, 2012 has been derived from the annual audited Consolidated Financial Statements of the Bancorp. | |
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_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Supplemental Cash Flow | ' | |||
Supplemental Cash Flow Information | ' | |||
2. Supplemental Cash Flow Information | ||||
Cash payments related to interest and income taxes in addition to noncash investing and financing activities are presented in the following table for the nine months ended September 30: | ||||
($ in millions) | 2013 | 2012 | ||
Cash payments: | ||||
Interest | $ | 343 | 417 | |
Income taxes | 386 | 262 | ||
Transfers: | ||||
Portfolio loans to loans held for sale | 603 | 29 | ||
Loans held for sale to portfolio loans | 36 | 72 | ||
Portfolio loans to OREO | 167 | 219 | ||
Loans held for sale to OREO | 4 | 23 | ||
Accounting_and_Reporting_Devel
Accounting and Reporting Developments | 9 Months Ended |
Sep. 30, 2013 | |
Accounting and Reporting Developments | ' |
Accounting and Reporting Developments | ' |
3. Accounting and Reporting Developments | |
Disclosures about Offsetting Assets and Liabilities | |
In December 2011, and clarified in January 2013, the FASB issued amended guidance related to disclosures about offsetting assets and liabilities. The amended guidance requires the Bancorp to disclose both gross information and net information about financial instruments, including derivatives, and transactions eligible for offset in the Condensed Consolidated Balance Sheets as well as financial instruments and transactions subject to agreements similar to a master netting arrangement. The amended guidance is required to be applied retrospectively and is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The amended guidance was adopted by the Bancorp on January 1, 2013 and the required disclosures are included in Note 12. | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | |
In February 2013, the FASB issued amended guidance related to amounts reclassified out of AOCI. The amended guidance requires the Bancorp to present, either on the face of the Condensed Consolidated Statements of Income or in the Notes to Condensed Consolidated Financial Statements, significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety, the Bancorp is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amended guidance is effective prospectively for reporting periods beginning after December 15, 2012 and was adopted by the Bancorp on January 1, 2013. The required disclosures are included in Note 19. | |
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date | |
In February 2013, the FASB issued amended guidance relating to the measurement of obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. For the total amount of an obligation under an arrangement to be considered fixed at the reporting date, there can be no measurement uncertainty relating to the total amount of the obligation. The obligation resulting from joint and several liability arrangements would be measured initially as the sum of 1) the amount the Bancorp has agreed to pay on the basis of its arrangement among its co-obligors and 2) any additional amount the Bancorp expects to pay on behalf of its co-obligors. The amended guidance also would require the Bancorp to disclose the nature and amount of the obligation as well as information about the risks that such obligations pose to future cash flows. The amended guidance is effective for reporting periods beginning after December 15, 2013 and will be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements that exist at the beginning of the fiscal year of adoption. The Bancorp is currently in the process of evaluating the impact of adopting the amended guidance, but does not expect the impact to be material to the Bancorp's Condensed Consolidated Financial Statements. | |
Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes | |
In July 2013, the FASB issued amended guidance which permits the OIS to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to UST and LIBOR. The amended guidance also removed a previous scope reference that required the same benchmark interest rate be used for similar hedges and that using different rates be rare and justified. The amended guidance is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013 (i.e., the issuance date). The Bancorp's adoption of the amended guidance in the third quarter of 2013 did not have a material impact on the Bancorp's Condensed Consolidated Financial Statements. | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the FASB issued amended guidance to clarify that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amended guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, with early adoption permitted. The Bancorp will adopt the amended guidance on January 1, 2014 and the adoption of the amended guidance is not expected to have a material impact on the presentation of the Bancorp's Condensed Consolidated Financial Statements. |
Securities
Securities | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Securities | ' | |||||||||||||
Securities | ' | |||||||||||||
4. Securities | ||||||||||||||
The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity securities portfolios as of: | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
September 30, 2013 ($ in millions) | Cost | Gains | Losses | Value | ||||||||||
Available-for-sale and other: | ||||||||||||||
U.S. Treasury and government agencies | $ | 26 | - | - | 26 | |||||||||
U.S. Government sponsored agencies | 1,524 | 129 | - | 1,653 | ||||||||||
Obligations of states and political subdivisions | 201 | 4 | - | 205 | ||||||||||
Agency mortgage-backed securities(a) | 11,149 | 229 | -25 | 11,353 | ||||||||||
Other bonds, notes and debentures | 3,773 | 82 | -16 | 3,839 | ||||||||||
Other securities(b) | 992 | 13 | -1 | 1,004 | ||||||||||
Total | $ | 17,665 | 457 | -42 | 18,080 | |||||||||
Held-to-maturity: | ||||||||||||||
Obligations of states and political subdivisions | $ | 264 | - | - | 264 | |||||||||
Other debt securities | 1 | - | - | 1 | ||||||||||
Total | $ | 265 | - | - | 265 | |||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
December 31, 2012 ($ in millions) | Cost | Gains | Losses | Value | ||||||||||
Available-for-sale and other: | ||||||||||||||
U.S. Treasury and government agencies | $ | 41 | - | - | 41 | |||||||||
U.S. Government sponsored agencies | 1,730 | 181 | - | 1,911 | ||||||||||
Obligations of states and political subdivisions | 203 | 9 | - | 212 | ||||||||||
Agency mortgage-backed securities(a) | 8,403 | 345 | -18 | 8,730 | ||||||||||
Other bonds, notes and debentures | 3,161 | 119 | -3 | 3,277 | ||||||||||
Other securities(b) | 1,033 | 3 | - | 1,036 | ||||||||||
Total | $ | 14,571 | 657 | -21 | 15,207 | |||||||||
Held-to-maturity: | ||||||||||||||
Obligations of states and political subdivisions | $ | 282 | - | - | 282 | |||||||||
Other debt securities | 2 | - | - | 2 | ||||||||||
Total | $ | 284 | - | - | 284 | |||||||||
Includes interest-only mortgage backed securities of $279 and $408 as of September 30, 2013 and December 31, 2012, respectively, recorded at fair value with fair value changes recorded in securities gains, net and securities gains, net-non-qualifying hedges on mortgage servicing rights in the Condensed Consolidated Statements of Income. | ||||||||||||||
Other securities consist of FHLB and FRB restricted stock holdings of $497 and $349, respectively, at September 30, 2013 and $497 and $347, respectively, at December 31, 2012, that are carried at cost, and certain mutual fund and equity security holdings. | ||||||||||||||
The following table presents realized gains and losses that were recognized in income from available-for-sale securities: | ||||||||||||||
For the three months | For the nine months | |||||||||||||
ended September 30, | ended September 30, | |||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Realized gains | $ | 14 | 29 | 54 | 57 | |||||||||
Realized losses | -4 | - | -90 | -2 | ||||||||||
OTTI | -45 | -23 | -57 | -39 | ||||||||||
Net realized (losses) gains(a) | $ | -35 | 6 | -93 | 16 | |||||||||
Excludes net gains on interest-only mortgage-backed securities of $40 for the three months ended September 30, 2013 and net gains on interest-only mortgage backed securities of $121 for the nine months ended September 30, 2013, respectively. | ||||||||||||||
Trading securities totaled $246 million as of September 30, 2013, compared to $207 million at December 31, 2012. Gross realized gains were immaterial for the three months ended September 30, 2013 and 2012, respectively, and were $1 million for the nine months ended September 30, 2013 and 2012, respectively. Gross realized losses on trading securities were immaterial for the three and nine months ended September 30, 2013 and 2012, respectively. Net unrealized gains on trading securities were $2 million and immaterial for the three months ended September 30, 2013 and 2012, respectively, and $3 million and $1 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
At September 30, 2013 and December 31, 2012, securities with a fair value of $8.9 billion and $12.6 billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law. | ||||||||||||||
The expected maturity distribution of the Bancorp’s agency mortgage-backed securities and the contractual maturity distribution of the Bancorp’s available-for-sale and other and held-to-maturity securities as of September 30, 2013 are shown in the following table: | ||||||||||||||
Available-for-Sale & Other | Held-to-Maturity | |||||||||||||
($ in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||
Debt securities:(a) | ||||||||||||||
Under 1 year | $ | 282 | 291 | 72 | 72 | |||||||||
1-5 years | 4,984 | 5,215 | 174 | 174 | ||||||||||
5-10 years | 7,806 | 7,906 | 18 | 18 | ||||||||||
Over 10 years | 3,601 | 3,664 | 1 | 1 | ||||||||||
Other securities | 992 | 1,004 | - | - | ||||||||||
Total | $ | 17,665 | 18,080 | 265 | 265 | |||||||||
Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||
The following table provides the fair value and gross unrealized losses on available-for-sale 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 | ||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||
($ in millions) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||
30-Sep-13 | ||||||||||||||
Obligations of states and political subdivisions | $ | 31 | - | - | - | 31 | - | |||||||
Agency mortgage-backed securities | 2,276 | -25 | 2 | - | 2,278 | -25 | ||||||||
Other bonds, notes and debentures | 1,048 | -13 | 100 | -3 | 1,148 | -16 | ||||||||
Other securities | 37 | -1 | - | - | 37 | -1 | ||||||||
Total | $ | 3,392 | -39 | 102 | -3 | 3,494 | -42 | |||||||
31-Dec-12 | ||||||||||||||
Agency mortgage-backed securities | $ | 1,784 | -18 | - | - | 1,784 | -18 | |||||||
Other bonds, notes and debentures | 454 | -3 | - | - | 454 | -3 | ||||||||
Other securities | 1 | - | - | - | 1 | - | ||||||||
Total | $ | 2,239 | -21 | - | - | 2,239 | -21 | |||||||
Other-Than-Temporary Impairments | ||||||||||||||
The Bancorp recognized $45 million and $57 million in OTTI, included in securities gains, net, in the Bancorp's Condensed Consolidated Statements of Income, on its available-for-sale and other debt securities for the three and nine months ended September 30, 2013. During the three and nine months ended September 30, 2012, the Bancorp recognized $23 million and $39 million of OTTI on its available-for-sale and other debt securities. The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or held-to-maturity debt securities during the three and nine months ended September 30, 2013 and 2012. Less than one percent of unrealized losses in the available-for-sale securities portfolio were represented by non-rated securities at September 30, 2013 and December 31, 2012. |
Loans_and_Leases
Loans and Leases | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Loans And Leases | ' | |||||||||||
Loans and Leases | ' | |||||||||||
5. Loans and Leases | ||||||||||||
The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. Lending activities are concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the United States. The Bancorp's commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfolio. For further information on credit quality and the ALLL, see Note 6. | ||||||||||||
The following table provides a summary of the total loans and leases classified by primary purpose as of: | ||||||||||||
September 30, | December 31, | |||||||||||
($ in millions) | 2013 | 2012 | ||||||||||
Loans and leases held for sale: | ||||||||||||
Commercial and industrial loans | $ | 7 | 39 | |||||||||
Commercial mortgage loans | 6 | 13 | ||||||||||
Commercial construction loans | 4 | 9 | ||||||||||
Residential mortgage loans | 1,298 | 2,856 | ||||||||||
Other consumer loans and leases | 15 | 22 | ||||||||||
Total loans and leases held for sale | $ | 1,330 | 2,939 | |||||||||
Portfolio loans and leases: | ||||||||||||
Commercial and industrial loans | $ | 38,253 | 36,038 | |||||||||
Commercial mortgage loans | 8,052 | 9,103 | ||||||||||
Commercial construction loans | 875 | 698 | ||||||||||
Commercial leases | 3,572 | 3,549 | ||||||||||
Total commercial loans and leases | 50,752 | 49,388 | ||||||||||
Residential mortgage loans | 12,534 | 12,017 | ||||||||||
Home equity | 9,356 | 10,018 | ||||||||||
Automobile loans | 12,072 | 11,972 | ||||||||||
Credit card | 2,157 | 2,097 | ||||||||||
Other consumer loans and leases | 360 | 290 | ||||||||||
Total consumer loans and leases | 36,479 | 36,394 | ||||||||||
Total portfolio loans and leases | $ | 87,231 | 85,782 | |||||||||
Total portfolio loans and leases are recorded net of unearned income, which totaled $711 million as of September 30, 2013 and $758 million as of December 31, 2012. Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments (associated with acquired loans or loans designated at fair value upon origination) which totaled a net premium of $111 million and $73 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||
The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $11.2 billion and $12.7 billion at September 30, 2013 and December 31, 2012, respectively, pledged at the FHLB, and loans of $33.0 billion and $30.9 billion at September 30, 2013 and December 31, 2012, respectively, pledged at the FRB. | ||||||||||||
The following table presents a summary of the total loans and leases owned by the Bancorp as of: | ||||||||||||
90 Days Past Due | ||||||||||||
Balance | and Still Accruing | |||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||
Commercial and industrial loans | $ | 38,260 | 36,077 | $ | 3 | 1 | ||||||
Commercial mortgage loans | 8,058 | 9,116 | - | 22 | ||||||||
Commercial construction loans | 879 | 707 | - | 1 | ||||||||
Commercial leases | 3,572 | 3,549 | - | - | ||||||||
Residential mortgage loans | 13,832 | 14,873 | 73 | 75 | ||||||||
Home equity | 9,356 | 10,018 | 46 | 58 | ||||||||
Automobile loans | 12,072 | 11,972 | 8 | 8 | ||||||||
Credit card | 2,157 | 2,097 | 26 | 30 | ||||||||
Other consumer loans and leases | 375 | 312 | - | - | ||||||||
Total loans and leases | $ | 88,561 | 88,721 | $ | 156 | 195 | ||||||
Less: Loans held for sale | $ | 1,330 | 2,939 | |||||||||
Total portfolio loans and leases | $ | 87,231 | 85,782 | |||||||||
The following table presents a summary of net charge-offs: | ||||||||||||
For the nine months | ||||||||||||
ended September 30, | ||||||||||||
($ in millions) | 2013 | 2012 | ||||||||||
Commercial and industrial loans | $ | 102 | 129 | |||||||||
Commercial mortgage loans | 39 | 83 | ||||||||||
Commercial construction loans | 1 | 22 | ||||||||||
Commercial leases | 1 | 8 | ||||||||||
Residential mortgage loans | 47 | 99 | ||||||||||
Home equity | 71 | 122 | ||||||||||
Automobile loans | 15 | 23 | ||||||||||
Credit card | 57 | 56 | ||||||||||
Other consumer loans and leases | 20 | 15 | ||||||||||
Total | $ | 353 | 557 |
Credit_Quality_and_the_Allowan
Credit Quality and the Allowance for Loan and Lease Losses | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Credit Quality and the Allowance for Loan and Leases Losses | ' | ||||||||||||||
Credit Quality and the Allowance for Loan and Lease Losses | ' | ||||||||||||||
6. 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. | |||||||||||||||
The following tables summarize transactions in the ALLL by portfolio segment: | |||||||||||||||
For the three months ended September 30, 2013 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,183 | 201 | 247 | 104 | 1,735 | |||||||||
Losses charged off | -61 | -15 | -65 | - | -141 | ||||||||||
Recoveries of losses previously charged off | 17 | 3 | 12 | - | 32 | ||||||||||
Provision for loan and lease losses | 8 | 5 | 41 | -3 | 51 | ||||||||||
Balance, end of period | $ | 1,147 | 194 | 235 | 101 | 1,677 | |||||||||
For the three months ended September 30, 2012 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,347 | 232 | 316 | 121 | 2,016 | |||||||||
Losses charged off | -76 | -28 | -84 | - | -188 | ||||||||||
Recoveries of losses previously charged off | 14 | 2 | 16 | - | 32 | ||||||||||
Provision for loan and lease losses | 2 | 26 | 42 | -5 | 65 | ||||||||||
Balance, end of period | $ | 1,287 | 232 | 290 | 116 | 1,925 | |||||||||
For the nine months ended September 30, 2013 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,236 | 229 | 278 | 111 | 1,854 | |||||||||
Losses charged off | -189 | -55 | -210 | - | -454 | ||||||||||
Recoveries of losses previously charged off | 46 | 8 | 47 | - | 101 | ||||||||||
Provision for loan and lease losses | 54 | 12 | 120 | -10 | 176 | ||||||||||
Balance, end of period | $ | 1,147 | 194 | 235 | 101 | 1,677 | |||||||||
For the nine months ended September 30, 2012 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,527 | 227 | 365 | 136 | 2,255 | |||||||||
Losses charged off | -289 | -104 | -267 | - | -660 | ||||||||||
Recoveries of losses previously charged off | 47 | 5 | 51 | - | 103 | ||||||||||
Provision for loan and lease losses | 2 | 104 | 141 | -20 | 227 | ||||||||||
Balance, end of period | $ | 1,287 | 232 | 290 | 116 | 1,925 | |||||||||
The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment: | |||||||||||||||
Residential | |||||||||||||||
As of September 30, 2013 ($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
ALLL:(a) | |||||||||||||||
Individually evaluated for impairment | $ | 164 | (c) | 135 | 54 | - | 353 | ||||||||
Collectively evaluated for impairment | 983 | 59 | 181 | - | 1,223 | ||||||||||
Loans acquired with deteriorated credit quality | - | - | - | - | - | ||||||||||
Unallocated | - | - | - | 101 | 101 | ||||||||||
Total ALLL | $ | 1,147 | 194 | 235 | 101 | 1,677 | |||||||||
Loans and leases:(b) | |||||||||||||||
Individually evaluated for impairment | $ | 1,396 | (c) | 1,316 | 516 | - | 3,228 | ||||||||
Collectively evaluated for impairment | 49,356 | 11,124 | 23,429 | - | 83,909 | ||||||||||
Loans acquired with deteriorated credit quality | - | 5 | - | - | 5 | ||||||||||
Total portfolio loans and leases | $ | 50,752 | 12,445 | 23,945 | - | 87,142 | |||||||||
Includes $10 related to leveraged leases. | |||||||||||||||
Excludes $89 of residential mortgage loans measured at fair value, and includes $875 of leveraged leases, net of unearned income. | |||||||||||||||
Includes five restructured nonaccrual loans at September 30, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $29 and an allowance of $11. | |||||||||||||||
Residential | |||||||||||||||
As of December 31, 2012 ($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
ALLL:(a) | |||||||||||||||
Individually evaluated for impairment | $ | 95 | 137 | 62 | - | 294 | |||||||||
Collectively evaluated for impairment | 1,140 | 91 | 216 | - | 1,447 | ||||||||||
Loans acquired with deteriorated credit quality | 1 | 1 | - | - | 2 | ||||||||||
Unallocated | - | - | - | 111 | 111 | ||||||||||
Total ALLL | $ | 1,236 | 229 | 278 | 111 | 1,854 | |||||||||
Loans and leases:(b) | |||||||||||||||
Individually evaluated for impairment | $ | 980 | 1,298 | 544 | - | 2,822 | |||||||||
Collectively evaluated for impairment | 48,407 | 10,637 | 23,833 | - | 82,877 | ||||||||||
Loans acquired with deteriorated credit quality | 1 | 6 | - | - | 7 | ||||||||||
Total portfolio loans and leases | $ | 49,388 | 11,941 | 24,377 | - | 85,706 | |||||||||
Includes $11 related to leveraged leases. | |||||||||||||||
Excludes $76 of residential mortgage loans measured at fair value, and includes $862 of leveraged leases, net of unearned income. | |||||||||||||||
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 non-owner occupied, commercial construction and commercial leasing. | |||||||||||||||
To facilitate the monitoring of credit quality within the commercial portfolio segment, and for purposes of analyzing historical loss rates used in the determination of the ALLL for the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful or 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 periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. | |||||||||||||||
The Bancorp assigns a special mention rating to loans and leases that have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp's credit position. | |||||||||||||||
The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected. | |||||||||||||||
The Bancorp assigns a doubtful rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. | |||||||||||||||
Loans and leases classified as loss are considered uncollectible and are charged off in the period in which they are determined to be uncollectible. Because loans and leases in this category are fully charged down, they are not included in the following tables. | |||||||||||||||
The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class: | |||||||||||||||
Special | |||||||||||||||
As of September 30, 2013 ($ in millions) | Pass | Mention | Substandard | Doubtful | Total | ||||||||||
Commercial and industrial loans | $ | 35,499 | 903 | 1,828 | 23 | 38,253 | |||||||||
Commercial mortgage owner occupied loans | 3,889 | 214 | 469 | - | 4,572 | ||||||||||
Commercial mortgage non-owner occupied loans | 2,693 | 268 | 519 | - | 3,480 | ||||||||||
Commercial construction loans | 678 | 35 | 162 | - | 875 | ||||||||||
Commercial leases | 3,480 | 50 | 42 | - | 3,572 | ||||||||||
Total | $ | 46,239 | 1,470 | 3,020 | 23 | 50,752 | |||||||||
Special | |||||||||||||||
As of December 31, 2012 ($ in millions) | Pass | Mention | Substandard | Doubtful | Total | ||||||||||
Commercial and industrial loans | $ | 33,521 | 1,113 | 1,379 | 25 | 36,038 | |||||||||
Commercial mortgage owner occupied loans | 3,934 | 338 | 603 | 1 | 4,876 | ||||||||||
Commercial mortgage non-owner occupied loans | 2,958 | 449 | 815 | 5 | 4,227 | ||||||||||
Commercial construction loans | 444 | 59 | 195 | - | 698 | ||||||||||
Commercial leases | 3,483 | 48 | 18 | - | 3,549 | ||||||||||
Total | $ | 44,340 | 2,007 | 3,010 | 31 | 49,388 | |||||||||
Consumer Portfolio Segment | |||||||||||||||
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, automobile loans, credit card, and other consumer loans and leases. 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 is presented by class in the age analysis section below while the performing versus nonperforming status is presented in the table below. Residential mortgage loans that have principal and interest payments that have become past due 150 days and home equity loans with principal and interest payments that have become past due 180 days are classified as nonperforming unless such loans are both well secured and in the process of collection. Residential mortgage, home equity, automobile, and other consumer loans and leases that have been modified in a TDR and subsequently become past due 90 days are classified as nonperforming unless the loan is both well secured and in the process of collection. Credit card loans that have been modified in a TDR are classified as nonperforming unless such loans have a sustained repayment performance of six months or greater and are reasonably assured of repayment in accordance with the restructured terms. Well secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance. | |||||||||||||||
The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments disaggregated into performing versus nonperforming status as of: | |||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||
($ in millions) | Performing | Nonperforming | Performing | Nonperforming | |||||||||||
Residential mortgage loans(a) | $ | 12,279 | 166 | 11,704 | 237 | ||||||||||
Home equity | 9,308 | 48 | 9,965 | 53 | |||||||||||
Automobile loans | 12,071 | 1 | 11,970 | 2 | |||||||||||
Credit card | 2,123 | 34 | 2,058 | 39 | |||||||||||
Other consumer loans and leases | 360 | - | 289 | 1 | |||||||||||
Total | $ | 36,141 | 249 | 35,986 | 332 | ||||||||||
Excludes $89 and $76 of loans measured at fair value at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||
Age Analysis of Past Due Loans and Leases | |||||||||||||||
The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases by age and class: | |||||||||||||||
Past Due | |||||||||||||||
Current | 90 Days | 90 Days Past | |||||||||||||
As of September 30, 2013 | Loans and | 30-89 | and | Total | Total Loans | Due and Still | |||||||||
($ in millions) | Leases(c) | Days(c) | Greater(c) | Past Due | and Leases | Accruing | |||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 38,083 | 36 | 134 | 170 | 38,253 | 3 | ||||||||
Commercial mortgage owner occupied loans | 4,492 | 8 | 72 | 80 | 4,572 | - | |||||||||
Commercial mortgage non-owner occupied loans | 3,423 | 11 | 46 | 57 | 3,480 | - | |||||||||
Commercial construction loans | 844 | - | 31 | 31 | 875 | - | |||||||||
Commercial leases | 3,571 | - | 1 | 1 | 3,572 | - | |||||||||
Residential mortgage loans(a) (b) | 12,142 | 69 | 234 | 303 | 12,445 | 73 | |||||||||
Consumer: | |||||||||||||||
Home equity | 9,166 | 96 | 94 | 190 | 9,356 | 46 | |||||||||
Automobile loans | 12,016 | 47 | 9 | 56 | 12,072 | 8 | |||||||||
Credit card | 2,092 | 35 | 30 | 65 | 2,157 | 26 | |||||||||
Other consumer loans and leases | 358 | 2 | - | 2 | 360 | - | |||||||||
Total portfolio loans and leases(a) | $ | 86,187 | 304 | 651 | 955 | 87,142 | 156 | ||||||||
Excludes $89 of loans measured at fair value. | |||||||||||||||
Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of September 30, 2013, $83 of these loans were 30-89 days past due and $379 were 90 days or more past due. The Bancorp recognized $1 and $2 of losses during the three and nine months ended September 30, 2013, respectively, due to claim denials and curtailments associated with these advances. | |||||||||||||||
Includes accrual and nonaccrual loans and leases. | |||||||||||||||
Past Due | |||||||||||||||
Current | 90 Days | 90 Days Past | |||||||||||||
As of December 31, 2012 | Loans and | 30-89 | and | Total | Total Loans | Due and Still | |||||||||
($ in millions) | Leases(c) | Days(c) | Greater(c) | Past Due | and Leases | Accruing | |||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 35,826 | 46 | 166 | 212 | 36,038 | 1 | ||||||||
Commercial mortgage owner occupied loans | 4,752 | 29 | 95 | 124 | 4,876 | 22 | |||||||||
Commercial mortgage non-owner occupied loans | 4,094 | 21 | 112 | 133 | 4,227 | - | |||||||||
Commercial construction loans | 622 | - | 76 | 76 | 698 | 1 | |||||||||
Commercial leases | 3,546 | 2 | 1 | 3 | 3,549 | - | |||||||||
Residential mortgage loans(a) (b) | 11,547 | 87 | 307 | 394 | 11,941 | 75 | |||||||||
Consumer: | |||||||||||||||
Home equity | 9,782 | 126 | 110 | 236 | 10,018 | 58 | |||||||||
Automobile loans | 11,900 | 62 | 10 | 72 | 11,972 | 8 | |||||||||
Credit card | 2,025 | 38 | 34 | 72 | 2,097 | 30 | |||||||||
Other consumer loans and leases | 287 | 2 | 1 | 3 | 290 | - | |||||||||
Total portfolio loans and leases(a) (d) | $ | 84,381 | 413 | 912 | 1,325 | 85,706 | 195 | ||||||||
Excludes $76 of loans measured at fair value. | |||||||||||||||
Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2012, $80 of these loans were 30-89 days past due and $414 were 90 days or more past due. The Bancorp recognized $2 of losses for the year ended December 31, 2012 due to claim denials and curtailments associated with these advances. | |||||||||||||||
Includes accrual and nonaccrual loans and leases. | |||||||||||||||
Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | |||||||||||||||
Impaired Loans and Leases | |||||||||||||||
Larger commercial loans and leases included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans and leases that are restructured in a troubled debt restructuring. The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure, and other factors when evaluating whether an individual loan or lease is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower, and the Bancorp's evaluation of the borrower's management. Smaller-balance homogenous loans or leases that are collectively evaluated for impairment are not included in the following tables. | |||||||||||||||
The following tables summarize the Bancorp’s impaired loans and leases (by class) that were subject to individual review, which includes all loans and leases restructured in a troubled debt restructuring: | |||||||||||||||
Unpaid | |||||||||||||||
As of September 30, 2013 | Principal | Recorded | |||||||||||||
($ in millions) | Balance | Investment | Allowance | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 675 | 578 | 122 | |||||||||||
Commercial mortgage owner occupied loans(b) | 71 | 59 | 11 | ||||||||||||
Commercial mortgage non-owner occupied loans | 117 | 86 | 13 | ||||||||||||
Commercial construction loans | 59 | 47 | 7 | ||||||||||||
Commercial leases | 1 | 1 | - | ||||||||||||
Restructured residential mortgage loans | 1,079 | 1,047 | 135 | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 390 | 386 | 41 | ||||||||||||
Automobile loans | 24 | 24 | 3 | ||||||||||||
Credit card | 63 | 63 | 10 | ||||||||||||
Other consumer loans and leases | 2 | 2 | - | ||||||||||||
Total impaired loans and leases with a related allowance | $ | 2,481 | 2,293 | 342 | |||||||||||
With no related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 261 | 207 | - | |||||||||||
Commercial mortgage owner occupied loans | 107 | 97 | - | ||||||||||||
Commercial mortgage non-owner occupied loans | 268 | 243 | - | ||||||||||||
Commercial construction loans | 74 | 46 | - | ||||||||||||
Commercial leases | 3 | 3 | - | ||||||||||||
Restructured residential mortgage loans | 311 | 269 | - | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 42 | 38 | - | ||||||||||||
Automobile loans | 3 | 3 | - | ||||||||||||
Total impaired loans and leases with no related allowance | 1,069 | 906 | - | ||||||||||||
Total impaired loans and leases | $ | 3,550 | 3,199 | (a) | 342 | ||||||||||
Includes $499, $1,233 and $461, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $241, $83 and $55, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||||||||||||
Excludes five restructured nonaccrual loans at September 30, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $29, a recorded investment of $29, and an allowance of $11. | |||||||||||||||
Unpaid | |||||||||||||||
As of December 31, 2012 | Principal | Recorded | |||||||||||||
($ in millions) | Balance | Investment | Allowance | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 263 | 194 | 65 | |||||||||||
Commercial mortgage owner occupied loans | 54 | 43 | 5 | ||||||||||||
Commercial mortgage non-owner occupied loans | 215 | 160 | 16 | ||||||||||||
Commercial construction loans | 48 | 37 | 5 | ||||||||||||
Commercial leases | 8 | 8 | 5 | ||||||||||||
Restructured residential mortgage loans | 1,067 | 1,023 | 137 | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 400 | 396 | 46 | ||||||||||||
Automobile loans | 31 | 30 | 4 | ||||||||||||
Credit card | 74 | 74 | 12 | ||||||||||||
Other consumer loans and leases | 2 | 2 | - | ||||||||||||
Total impaired loans and leases with a related allowance | $ | 2,162 | 1,967 | 295 | |||||||||||
With no related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 207 | 169 | - | |||||||||||
Commercial mortgage owner occupied loans | 107 | 99 | - | ||||||||||||
Commercial mortgage non-owner occupied loans | 209 | 199 | - | ||||||||||||
Commercial construction loans | 109 | 67 | - | ||||||||||||
Commercial leases | 5 | 5 | - | ||||||||||||
Restructured residential mortgage loans | 326 | 275 | - | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 40 | 39 | - | ||||||||||||
Automobile loans | 3 | 3 | - | ||||||||||||
Total impaired loans and leases with no related allowance | 1,006 | 856 | - | ||||||||||||
Total impaired loans and leases | $ | 3,168 | 2,823 | (a) | 295 | ||||||||||
Includes $431, $1,175 and $480, respectively, of commercial, residential mortgage and consumer TDRs on accrual status;$177, $123 and $64, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||||||||||||
The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class: | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||
Average | Interest | Average | Interest | ||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||
($ in millions) | Investment | Recognized | Investment | Recognized | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 553 | 7 | $ | 403 | 11 | |||||||||
Commercial mortgage owner occupied loans(a) | 145 | 1 | 140 | 3 | |||||||||||
Commercial mortgage non-owner occupied loans | 322 | 2 | 326 | 6 | |||||||||||
Commercial construction loans | 103 | 1 | 109 | 3 | |||||||||||
Commercial leases | 8 | - | 10 | - | |||||||||||
Restructured residential mortgage loans | 1,311 | 13 | 1,308 | 39 | |||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 426 | 6 | 433 | 17 | |||||||||||
Automobile loans | 27 | 1 | 29 | 1 | |||||||||||
Credit card | 66 | 1 | 69 | 3 | |||||||||||
Other consumer loans and leases | 2 | - | 2 | - | |||||||||||
Total impaired loans and leases | $ | 2,963 | 32 | $ | 2,829 | 83 | |||||||||
Excludes five restructured nonaccrual loans, associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $29 and $30 and an immaterial amount of interest income recognized for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
30-Sep-12 | 30-Sep-12 | ||||||||||||||
Average | Interest | Average | Interest | ||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||
($ in millions) | Investment | Recognized | Investment | Recognized | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 439 | 1 | $ | 467 | 3 | |||||||||
Commercial mortgage owner occupied loans | 168 | 1 | 157 | 3 | |||||||||||
Commercial mortgage non-owner occupied loans | 387 | 3 | 356 | 7 | |||||||||||
Commercial construction loans | 149 | - | 176 | 2 | |||||||||||
Commercial leases | 10 | - | 10 | - | |||||||||||
Restructured residential mortgage loans | 1,276 | 13 | 1,269 | 38 | |||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 438 | 19 | 440 | 37 | |||||||||||
Automobile loans | 37 | 1 | 39 | 2 | |||||||||||
Credit card | 78 | 1 | 81 | 3 | |||||||||||
Other consumer loans and leases | 2 | - | 2 | - | |||||||||||
Total impaired loans and leases | $ | 2,984 | 39 | $ | 2,997 | 95 | |||||||||
Nonperforming Assets | |||||||||||||||
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table summarizes the Bancorp’s nonperforming loans and leases, by class, as of: | |||||||||||||||
September 30, | December 31, | ||||||||||||||
($ in millions) | 2013 | 2012 | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 308 | 330 | ||||||||||||
Commercial mortgage owner occupied loans(a) | 112 | 125 | |||||||||||||
Commercial mortgage non-owner occupied loans | 70 | 157 | |||||||||||||
Commercial construction loans | 30 | 76 | |||||||||||||
Commercial leases | 1 | 9 | |||||||||||||
Total commercial loans and leases | 521 | 697 | |||||||||||||
Residential mortgage loans | 166 | 237 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 48 | 53 | |||||||||||||
Automobile loans | 1 | 2 | |||||||||||||
Credit card | 34 | 39 | |||||||||||||
Other consumer loans and leases | - | 1 | |||||||||||||
Total consumer loans and leases | 83 | 95 | |||||||||||||
Total nonperforming loans and leases(b) (c) | $ | 770 | 1,029 | ||||||||||||
OREO and other repossessed property(d) | 244 | 257 | |||||||||||||
Troubled Debt Restructurings | |||||||||||||||
If a borrower is experiencing financial difficulty, the Bancorp may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due. Within each of the Bancorp's loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension of the loan's maturity date(s) with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan's accrued interest. Modifying the terms of loans may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measure the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before or at the time of modification. Refer to the ALLL section of Note 1 in the Bancorp's Form 10-K for the year ended December 31, 2012 for information on the Bancorp's ALLL methodology. Upon modification of a loan, the Bancorp measures the related impairment as the difference between the estimated future cash flows, discounted at the original effective yield of the loan, expected to be collected on the modified loan and the carrying value of the loan. The resulting measurement may result in the need for minimal or no valuation allowance because it is probable that all cash flows will be collected under the modified terms of the loan. In addition, if the stated interest rate was increased in a TDR, the cash flows on the modified loan, using the pre-modification interest rate as the discount rate, often exceed the recorded investment of the loan. Conversely, the Bancorp often recognizes an impairment loss as an increase to the ALLL upon a modification that reduces the stated interest rate on a loan. | |||||||||||||||
If a TDR involves a reduction of the principal balance of the loan or the loan's accrued interest, that amount is charged off to the ALLL. As of September 30, 2013 and December 31, 2012, the Bancorp had $41 million and $28 million in line of credit commitments and $23 million and $25 million in letter of credit commitments, respectively, to lend additional funds to borrowers whose terms have been modified in a TDR. | |||||||||||||||
The following table provides a summary of loans modified in a TDR by the Bancorp during the three months ended: | |||||||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
September 30, 2013 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 56 | $ | 79 | -13 | - | ||||||||||
Commercial mortgage owner occupied loans(c) | 32 | 7 | - | - | |||||||||||
Commercial mortgage non-owner occupied loans | 16 | 11 | -2 | - | |||||||||||
Commercial construction loans | 1 | 9 | - | - | |||||||||||
Residential mortgage loans | 452 | 65 | 8 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 117 | 6 | - | - | |||||||||||
Automobile loans | 115 | 2 | - | - | |||||||||||
Credit card | 1,950 | 12 | 2 | - | |||||||||||
Total portfolio loans and leases | 2,739 | $ | 191 | -5 | - | ||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
September 30, 2012 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 20 | $ | 20 | - | 5 | ||||||||||
Commercial mortgage owner occupied loans | 16 | 29 | -3 | 2 | |||||||||||
Commercial mortgage non-owner occupied loans | 12 | 11 | -3 | - | |||||||||||
Commercial construction loans | 3 | - | - | - | |||||||||||
Commercial leases | 6 | 3 | - | - | |||||||||||
Residential mortgage loans | 505 | 90 | 7 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 364 | 21 | 1 | - | |||||||||||
Automobile loans | 213 | 3 | - | - | |||||||||||
Credit card | 2,231 | 13 | 2 | - | |||||||||||
Total portfolio loans and leases | 3,370 | $ | 190 | 4 | 7 | ||||||||||
The following table provides a summary of loans modified in a TDR by the Bancorp during the nine months ended: | |||||||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
September 30, 2013 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 119 | $ | 201 | -13 | 1 | ||||||||||
Commercial mortgage owner-occupied loans(c) | 56 | 16 | -1 | - | |||||||||||
Commercial mortgage nonowner-occupied loans | 50 | 65 | -7 | - | |||||||||||
Commercial construction loans | 3 | 16 | -1 | - | |||||||||||
Residential mortgage loans | 1,266 | 194 | 24 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 621 | 33 | - | - | |||||||||||
Automobile loans | 363 | 11 | 1 | - | |||||||||||
Credit card | 6,442 | 39 | 5 | - | |||||||||||
Total portfolio loans and leases | 8,920 | $ | 575 | 8 | 1 | ||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
September 30, 2012 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 61 | $ | 45 | -10 | 5 | ||||||||||
Commercial mortgage owner-occupied loans | 52 | 45 | -6 | 2 | |||||||||||
Commercial mortgage nonowner-occupied loans | 52 | 78 | -8 | - | |||||||||||
Commercial construction loans | 14 | 36 | -4 | - | |||||||||||
Commercial leases | 6 | 3 | - | - | |||||||||||
Residential mortgage loans | 1,542 | 259 | 22 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 1,034 | 63 | 3 | - | |||||||||||
Automobile loans | 774 | 12 | 2 | - | |||||||||||
Credit card | 7,963 | 51 | 7 | - | |||||||||||
Total portfolio loans and leases | 11,498 | $ | 592 | 6 | 7 | ||||||||||
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||
Represents number of loans post-modification. | |||||||||||||||
Excludes five loans modified in a TDR during the nine months ended September 30, 2013 associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR has a recorded investment of $29, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon modification. | |||||||||||||||
The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual review for impairment, the historical loss rates that are applied to such commercial loans for purposes of determining the allowance include historical losses associated with subsequent defaults on loans previously modified in a TDR. For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted consumer losses over the projected loss emergence period (the forecasted losses include the impact of subsequent defaults of consumer TDRs). When a residential mortgage, home equity, auto or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the potential impairment loss is generally limited to the expected net proceeds from the sale of the loan's underlying collateral and any resulting impairment loss is reflected as a charge-off or an increase in ALLL. When a credit card loan that has been modified in a TDR subsequently defaults, the calculation of the impairment loss is consistent with the Bancorp's calculation for other credit card loans that have become 90 days or more past due. | |||||||||||||||
The following table provides a summary of subsequent defaults of TDRs that occurred during the three months ended September 30, 2013 and 2012 and within 12 months of the restructuring date: | |||||||||||||||
Number of | Recorded | ||||||||||||||
September 30, 2013 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 1 | $ | 5 | ||||||||||||
Commercial mortgage owner-occupied loans | 2 | - | |||||||||||||
Residential mortgage loans | 78 | 11 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 21 | 1 | |||||||||||||
Credit card | 380 | 2 | |||||||||||||
Total portfolio loans and leases | 482 | $ | 19 | ||||||||||||
Number of | Recorded | ||||||||||||||
September 30, 2012 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial mortgage owner-occupied loans | 1 | $ | 1 | ||||||||||||
Residential mortgage loans | 98 | 16 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 19 | 2 | |||||||||||||
Automobile loans | 15 | - | |||||||||||||
Credit card | 376 | 3 | |||||||||||||
Total portfolio loans and leases | 509 | $ | 22 | ||||||||||||
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||
The following table provides a summary of subsequent defaults that occurred during the nine months ended September 30, 2013 and 2012 and within 12 months of the restructuring date: | |||||||||||||||
Number of | Recorded | ||||||||||||||
September 30, 2013 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 3 | $ | 6 | ||||||||||||
Commercial mortgage owner-occupied loans | 6 | 1 | |||||||||||||
Residential mortgage loans | 304 | 47 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 55 | 3 | |||||||||||||
Automobile loans | 3 | - | |||||||||||||
Credit card | 1,306 | 8 | |||||||||||||
Total portfolio loans and leases | 1,677 | $ | 65 | ||||||||||||
Number of | Recorded | ||||||||||||||
September 30, 2012 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial mortgage owner-occupied loans | 3 | $ | 2 | ||||||||||||
Commercial mortgage nonowner-occupied loans | 2 | 1 | |||||||||||||
Commercial construction loans | 2 | 3 | |||||||||||||
Residential mortgage loans | 224 | 41 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 67 | 5 | |||||||||||||
Automobile loans | 36 | - | |||||||||||||
Credit card | 1,385 | 10 | |||||||||||||
Total portfolio loans and leases | 1,719 | $ | 62 | ||||||||||||
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||
Goodwill
Goodwill | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Intangible Assets | ' | ||||||
Goodwill | ' | ||||||
7. Goodwill | |||||||
Business combinations entered into by the Bancorp typically include the acquisition of goodwill. Acquisition activity includes acquisitions in the respective period, in addition to purchase accounting adjustments related to previous acquisitions. During the fourth quarter of 2008, the Bancorp determined that the Commercial Banking and Consumer Lending segments' goodwill carrying amounts exceeded their associated implied fair values by $750 million and $215 million, respectively. The resulting $965 million goodwill impairment charge was recorded in the fourth quarter of 2008 and represents the total amount of accumulated impairment losses as of September 30, 2013. | |||||||
Changes in the net carrying amount of goodwill, by reporting unit, for the nine months ended September 30, 2013 and 2012 were as follows: | |||||||
Commercial | Branch | Consumer | Investment | ||||
($ in millions) | Banking | Banking | Lending | Advisors | Total | ||
Net carrying value as of December 31, 2012 | $ | 613 | 1,655 | - | 148 | 2,416 | |
Acquisition activity | - | - | - | - | - | ||
Net carrying value as of September 30, 2013 | $ | 613 | 1,655 | - | 148 | 2,416 | |
Net carrying value as of December 31, 2011 | 613 | 1,656 | - | 148 | 2,417 | ||
Acquisition activity | - | - | - | - | - | ||
Net carrying value as of September 30, 2012 | $ | 613 | 1,656 | - | 148 | 2,417 | |
The Bancorp evaluates goodwill at the business segment level for impairment as the Bancorp's segments have been determined to be reporting units under U.S. GAAP. The Bancorp conducts its evaluation of goodwill impairment as of September 30th each year, and more frequently if events or circumstances indicate that there may be impairment. At September 30, 2013, the Bancorp performed a qualitative assessment of goodwill at the reporting unit level to determine whether any indicators of impairment existed. In performing this qualitative assessment, the Bancorp evaluated events and circumstances since the date of the last quantitative impairment test including the results of that test, macroeconomic conditions, banking industry and market conditions, key financial metrics of the Bancorp as well as segment and overall Bancorp financial performance. After assessing the totality of the events and circumstances, the Bancorp determined that it was not more likely than not that the fair value of each of its reporting units was less than their carrying amounts and, therefore, the first and second steps of the quantitative goodwill impairment test were deemed unnecessary. |
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Intangible Assets | ' | ||||||||||
Intangible Assets | ' | ||||||||||
8. Intangible Assets | |||||||||||
Intangible assets consist of servicing rights, core deposit intangibles, customer lists, non-compete agreements and cardholder relationships. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. Intangible assets, excluding servicing rights, have an estimated remaining weighted-average life at September 30, 2013 of 4.1 years. The Bancorp reviews intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. For more information on servicing rights, see Note 10. | |||||||||||
The details of the Bancorp’s intangible assets are shown in the following table: | |||||||||||
Gross Carrying | Accumulated | Valuation | Net Carrying | ||||||||
($ in millions) | Amount | Amortization | Allowance | Amount | |||||||
As of September 30, 2013 | |||||||||||
Mortgage servicing rights | $ | 3,036 | -1,610 | -511 | 915 | ||||||
Automobile servicing rights | 6 | -2 | - | 4 | |||||||
Core deposit intangibles | 154 | -139 | - | 15 | |||||||
Other | 45 | -39 | - | 6 | |||||||
Total intangible assets | $ | 3,241 | -1,790 | -511 | 940 | ||||||
As of December 31, 2012 | |||||||||||
Mortgage servicing rights | $ | 2,825 | -1,467 | -661 | 697 | ||||||
Core deposit intangibles | 180 | -160 | - | 20 | |||||||
Other | 44 | -37 | - | 7 | |||||||
Total intangible assets | $ | 3,049 | -1,664 | -661 | 724 | ||||||
As of September 30, 2013, all of the Bancorp's intangible assets were being amortized. Amortization expense recognized on intangible assets, including servicing rights, for the three months ended September 30, 2013 and 2012 was $42 million and $51 million, respectively. For the nine months ended September 30, 2013 and 2012, amortization expense was $152 million and $145 million, respectively. | |||||||||||
The Bancorp's projections of amortization expense shown below are based on existing asset balances as of September 30, 2013. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2013 through 2017 is as follows: | |||||||||||
Servicing | Other | ||||||||||
($ in millions) | Rights | Intangible Assets | Total | ||||||||
Remainder of 2013 | $ | 29 | 2 | 31 | |||||||
2014 | 110 | 5 | 115 | ||||||||
2015 | 101 | 2 | 103 | ||||||||
2016 | 92 | 2 | 94 | ||||||||
2017 | 85 | 2 | 87 |
VIE
VIE | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Variable Interest Entities | ' | |||||||
Variable Interest Entities | ' | |||||||
9. 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 to finance their activities, or the equity investors of the entities as a group lack any of the characteristics of a controlling interest. The primary beneficiary of a VIE is generally the enterprise that has both the power to direct the activities most significant to the economic performance of the VIE and the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. For certain investment funds, the primary beneficiary is the enterprise that will absorb a majority of the fund's expected losses or receive a majority of the fund's expected residual returns. The Bancorp evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Bancorp is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that requires a reconsideration. If the Bancorp is determined to be the primary beneficiary of a VIE, it must account for the VIE as a consolidated subsidiary. If the Bancorp is determined not to be the primary beneficiary of a VIE but holds a variable interest in the entity, such variable interests are accounted for under the equity method of accounting or other accounting standards as appropriate. | ||||||||
Consolidated VIEs | ||||||||
The following table provides a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Bancorp’s Condensed Consolidated Balance Sheets as of: | ||||||||
Automobile Loan | CDC | |||||||
September 30, 2013 ($ in millions) | Securitization | Investments | Total | |||||
Assets: | ||||||||
Cash and due from banks | $ | 53 | - | 53 | ||||
Commercial mortgage loans | - | 50 | 50 | |||||
Automobile loans(a) | 1,145 | - | 1,145 | |||||
ALLL | -3 | -13 | -16 | |||||
Other assets | 10 | 2 | 12 | |||||
Total assets | 1,205 | 39 | 1,244 | |||||
Liabilities: | ||||||||
Other liabilities | $ | 2 | - | 2 | ||||
Long-term debt | 1,198 | - | 1,198 | |||||
Total liabilities | $ | 1,200 | - | 1,200 | ||||
Noncontrolling interests | - | 39 | 39 | |||||
Net of $56 of unamortized fees and discounts. | ||||||||
CDC | ||||||||
December 31, 2012 ($ in millions) | Investments | Total | ||||||
Assets: | ||||||||
Commercial mortgage loans | $ | 50 | 50 | |||||
ALLL | -5 | -5 | ||||||
Other assets | 3 | 3 | ||||||
Total assets | 48 | 48 | ||||||
Noncontrolling interests | 48 | 48 | ||||||
Automobile Loan Securitization | ||||||||
In August of 2013, the Bancorp transferred approximately $1.3 billion in fixed-rate consumer automobile loans to a bankruptcy remote trust which was deemed to be a VIE. The primary purposes for which the VIE was created were to issue asset-backed securities with varying levels of credit subordination and payment priority, as well as residual interests, and to provide the Bancorp with access to liquidity for its originated loans. The Bancorp retained residual interests in the VIE and, therefore, has an obligation to absorb losses and a right to receive benefits from the VIE that could potentially be significant to the VIE. In addition, the Bancorp retained servicing rights for the underlying loans and, therefore, holds the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE. As a result, the Bancorp concluded that it is the primary beneficiary of the VIE and, therefore, has consolidated this VIE. The assets of the VIE are restricted to the settlement of the notes and other obligations of the VIE. Third-party holders of the notes do not have recourse to the general assets of the Bancorp. | ||||||||
The economic performance of the VIE is most significantly impacted by the performance of the underlying loans. The principal risks to which the VIE are exposed include credit risk and prepayment risk. The credit and prepayment risks are managed through credit enhancements in the form of reserve accounts, overcollateralization, excess interest on the loans and the subordination of certain classes of asset-backed securities to other classes. | ||||||||
CDC Investments | ||||||||
CDC, a wholly-owned indirect subsidiary of the Bancorp, was created to invest in projects to create affordable housing, revitalize business and residential areas, and preserve historic landmarks. CDC generally co-invests with other unrelated companies and/or individuals and typically makes investments in a separate legal entity that owns the property under development. The entities are usually formed as limited partnerships and LLCs, and CDC typically invests as a limited partner/investor member in the form of equity contributions. The economic performance of the VIEs is driven by the performance of their underlying investment projects as well as the VIEs' ability to operate in compliance with the rules and regulations necessary for the qualification of tax credits generated by equity investments. Typically, the general partner or managing member will be the party that has the right to make decisions that will most significantly impact the economic performance of the entity. The Bancorp's subsidiaries serve as the managing member of certain LLCs invested in business revitalization projects. The Bancorp has provided an indemnification guarantee to the investor member of these LLCs related to the qualification of tax credits generated by the investor member's investment. Accordingly, the Bancorp concluded that it is the primary beneficiary and, therefore, has consolidated these VIEs. As a result, the investor members' interests in these VIEs are presented as noncontrolling interests in the Bancorp's Condensed Consolidated Financial Statements. This presentation includes reporting separately the equity attributable to the noncontrolling interests in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Equity and reporting separately the comprehensive income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Comprehensive Income and the net income attributable to the noncontrolling interests in the Condensed Consolidated Statements of Income. The Bancorp's maximum exposure related to these indemnifications at September 30, 2013 and December 31, 2012 was $20 million and $18 million, respectively, which is based on an amount required to meet the investor member's defined target rate of return. | ||||||||
Non-consolidated VIEs | ||||||||
The following tables provide a summary of assets and liabilities carried on the Bancorp’s Condensed Consolidated Balance Sheets related to non-consolidated VIEs for which the Bancorp holds an interest, but is not the primary beneficiary of the VIE, as well as the Bancorp’s maximum exposure to losses associated with its interests in the entities: | ||||||||
Total | Total | Maximum | ||||||
As of September 30, 2013 ($ in millions) | Assets | Liabilities | Exposure | |||||
CDC investments | $ | 1,420 | 421 | 1,420 | ||||
Private equity investments | 207 | - | 303 | |||||
Loans provided to VIEs | 1,837 | - | 3,783 | |||||
Automobile loan securitization | 4 | - | 4 | |||||
Restructured loans | 1 | - | 1 | |||||
Total | Total | Maximum | ||||||
As of December 31, 2012 ($ in millions) | Assets | Liabilities | Exposure | |||||
CDC investments | $ | 1,442 | 394 | 1,442 | ||||
Private equity investments | 189 | - | 310 | |||||
Loans provided to VIEs | 1,622 | - | 2,465 | |||||
Restructured loans | 2 | - | 2 | |||||
CDC Investments | ||||||||
As noted previously, CDC typically invests in VIEs as a limited partner or investor member in the form of equity contributions. 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 general partners/managing members who exercise full and exclusive control of the operations of the VIEs. Accordingly, the Bancorp accounts for these investments under the equity method of accounting. | ||||||||
The Bancorp's funding requirements are limited to its invested capital and any additional unfunded commitments for future equity contributions. The Bancorp's maximum exposure to loss as a result of its involvement with the VIEs is limited to the carrying amounts of the investments, including the unfunded commitments. The carrying amounts of these investments, which are included in other assets in the Condensed Consolidated Balance Sheets, and the liabilities related to the unfunded commitments, which are included in other liabilities in the Condensed Consolidated Balance Sheets, are included in the previous tables for all periods presented. The Bancorp has no other liquidity arrangements or obligations to purchase assets of the VIEs that would expose the Bancorp to a loss. In certain arrangements, the general partner/managing member of the VIE has guaranteed a level of projected tax credits to be received by the limited partners/investor members, thereby minimizing a portion of the Bancorp's risk. | ||||||||
Private Equity Investments | ||||||||
The Bancorp invests as a limited partner in private equity funds which provide the Bancorp an opportunity to obtain higher rates of return on invested capital, while also creating cross-selling opportunities for the Bancorp's commercial products. Each of the limited partnerships has an unrelated third-party general partner responsible for appointing the fund manager. The Bancorp has not been appointed fund manager for any of these private equity funds. The funds finance primarily all of their activities from the partners' capital contributions and investment returns. Under the VIE consolidation guidance still applicable to the funds, the Bancorp has determined that it is not the primary beneficiary of the funds because it does not absorb a majority of the funds' expected losses or receive a majority of the funds' expected residual returns. 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 negative performance of the underlying investments in the private equity 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 included in the above tables. Also, as of September 30, 2013 and December 31, 2012, the unfunded commitment amounts to the funds were $96 million and $121 million, respectively. The Bancorp made capital contributions of $11 million to private equity funds during the three months ended September 30, 2013 and 2012. The Bancorp made capital contributions of $25 million and $35 million, respectively, to private equity funds during the nine months ended September 30, 2013 and 2012. | ||||||||
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 most significant to 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, included in commercial loans in the Condensed Consolidated Balance Sheets, are included in the previous tables for all periods presented. Also, as of September 30, 2013 and December 31, 2012 the Bancorp's unfunded commitments to these entities were $1.9 billion and $843 million, 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. | ||||||||
Automobile Loan Securitization | ||||||||
In March of 2013, the Bancorp recognized an immaterial loss on the securitization and sale of certain automobile loans with a carrying amount of approximately $509 million. The securitization and the resulting sale of all underlying securities qualified for sale accounting. The Bancorp has concluded that it is not the primary beneficiary of the trust because it has neither the obligation to absorb losses of the entity that could potentially be significant to the VIE nor the right to receive benefits from the entity that could potentially be significant to the VIE. The Bancorp is not required to provide any additional financial support to the trust. Investors and creditors only have recourse to the assets held by the trust. The interest the Bancorp holds in the VIE relates to servicing rights which are included in the Bancorp's Condensed Consolidated Balance Sheets. The maximum exposure to loss is equal to the carrying value of the servicing asset. | ||||||||
Restructured Loans | ||||||||
As part of loan restructuring efforts, the Bancorp received equity capital from certain borrowers to facilitate the restructuring of the borrower's debt. These borrowers meet the definition of a VIE because the Bancorp was involved in their refinancing and because their equity capital is insufficient to fund ongoing operations. These restructurings were intended to provide the VIEs with serviceable debt levels while providing the Bancorp an opportunity to maximize the recovery of the loans. The VIEs finance their operations from earned income, capital contributions, and through restructured debt agreements. Assets of the VIEs are used to settle their specific obligations, including loan payments due to the Bancorp. The Bancorp continues to maintain its relationship with these VIEs as a lender and minority shareholder; however, it is not involved in management decisions and does not have sufficient voting rights to control the membership of the respective boards. Therefore, the Bancorp accounts for its equity investments in these VIEs under the equity method or cost method based on its percentage of ownership and ability to exercise significant influence. | ||||||||
The Bancorp's maximum exposure to loss as a result of its involvement with these VIEs is limited to the equity investments, the principal and accrued interest on the outstanding loans, and any unfunded commitments. Due to the VIEs' short-term cash deficit projections at the restructuring dates, the Bancorp determined that the initial fair value of its equity investments in these VIEs was zero. As of September 30, 2013 and December 31, 2012, the Bancorp's carrying value of these equity investments was immaterial to the Bancorp's Condensed Consolidated Balance Sheets. Additionally, the Bancorp had outstanding loans to these VIEs, included in commercial loans in the Condensed Consolidated Balance Sheets, which are included in the above tables for all periods presented. The Bancorp had no unfunded loan commitments to these VIEs as of September 30, 2013 and December 31, 2012. The loans to these VIEs are included in the Bancorp's overall analysis of the ALLL. The Bancorp does not provide any implicit or explicit liquidity guarantees or principal value guarantees to these VIEs. |
Sales_of_Receivables_and_Servi
Sales of Receivables and Servicing Rights | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Sales of Receivables and Servicing Rights | ' | |||||||||||||||||||||||
Sales of Receivables and Servicing Rights | ' | |||||||||||||||||||||||
10. Sales of Receivables and Servicing Rights | ||||||||||||||||||||||||
Automobile Loan Securitization | ||||||||||||||||||||||||
In March of 2013, the Bancorp recognized an immaterial loss on the securitization and sale of certain automobile loans with a carrying amount of approximately $509 million. The Bancorp utilized a securitization trust to facilitate the securitization process. The trust issued asset-backed securities in the form of notes and equity certificates, with varying levels of credit subordination and payment priority. The Bancorp does not hold any of the notes or equity certificates issued by the trust, and the investors in these securities have no credit recourse to the Bancorp's assets for failure of debtors to pay when due. As part of the sale, the Bancorp obtained servicing responsibilities and recognized a servicing asset with an initial fair value of $6 million. | ||||||||||||||||||||||||
Residential Mortgage Loan Sales | ||||||||||||||||||||||||
The Bancorp sold fixed and adjustable rate residential mortgage loans during the three and nine months ended September 30, 2013 and 2012. In those sales, the Bancorp obtained servicing responsibilities and the investors have no recourse to the Bancorp's other assets for failure of debtors to pay when due. The Bancorp receives annual servicing fees based on a percentage of the outstanding balance. The Bancorp identifies classes of servicing assets based on financial asset type and interest rates. | ||||||||||||||||||||||||
Information related to residential mortgage loan sales and the Bancorp’s mortgage banking activity, which is included in mortgage banking net revenue in the Condensed Consolidated Statements of Income, is as follows: | ||||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Residential mortgage loan sales | $ | 5,105 | 5,002 | $ | 19,115 | 16,650 | ||||||||||||||||||
Origination fees and gains on loan sales | 74 | 226 | 393 | 583 | ||||||||||||||||||||
Servicing fees | 63 | 62 | 187 | 186 | ||||||||||||||||||||
Servicing Assets | ||||||||||||||||||||||||
The following table presents changes in the servicing assets related to residential mortgage and automobile loans for the nine months ended September 30: | ||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | ||||||||||||||||||||||
Carrying amount before valuation allowance as of the beginning of the period | $ | 1,358 | 1,239 | |||||||||||||||||||||
Servicing rights that result from the transfer of residential mortgage loans | 211 | 254 | ||||||||||||||||||||||
Servicing rights that result from the transfer of automobile loans | 6 | - | ||||||||||||||||||||||
Amortization | -145 | -134 | ||||||||||||||||||||||
Carrying amount before valuation allowance | 1,430 | 1,359 | ||||||||||||||||||||||
Valuation allowance for servicing assets: | ||||||||||||||||||||||||
Beginning balance | -661 | -558 | ||||||||||||||||||||||
Recovery of (provision for) MSR impairment | 150 | -122 | ||||||||||||||||||||||
Ending balance | -511 | -680 | ||||||||||||||||||||||
Carrying amount as of the end of the period | $ | 919 | 679 | |||||||||||||||||||||
Temporary impairment or impairment recovery, affected through a change in the MSR valuation allowance, was captured as a component of mortgage banking net revenue in the Condensed Consolidated Statements of Income. 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 includes the purchase of free-standing derivatives and various available-for-sale 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 discount rates, 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 displays the beginning and ending fair value of the servicing assets for the nine months ended September 30: | ||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | ||||||||||||||||||||||
Fixed rate residential mortgage loans: | ||||||||||||||||||||||||
Beginning balance | $ | 664 | 649 | |||||||||||||||||||||
Ending balance | 876 | 645 | ||||||||||||||||||||||
Adjustable rate residential mortgage loans: | ||||||||||||||||||||||||
Beginning balance | 33 | 32 | ||||||||||||||||||||||
Ending balance | 39 | 34 | ||||||||||||||||||||||
Fixed rate automobile loans: | ||||||||||||||||||||||||
Beginning balance | - | - | ||||||||||||||||||||||
Ending balance | 4 | - | ||||||||||||||||||||||
The following table presents activity related to valuations of the MSR portfolio and the impact of the non-qualifying hedging strategy, which is included in the Condensed Consolidated Statements of Income: | ||||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Securities gains, net - non-qualifying hedges on MSRs | $ | 5 | 5 | 13 | 5 | |||||||||||||||||||
Changes in fair value and settlement of free-standing derivatives purchased | ||||||||||||||||||||||||
to economically hedge the MSR portfolio (Mortgage banking net revenue) | 24 | 32 | -13 | 75 | ||||||||||||||||||||
(Provision for) recovery of MSR impairment (Mortgage banking net revenue) | -1 | -72 | 150 | -122 | ||||||||||||||||||||
As of September 30, 2013 and 2012, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the three months ended: | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||
Rate | Weighted-Average Life (in years) | Prepayment Speed (annual) | Discount Rate (annual) | Weighted-Average Default rate | Weighted-Average Life (in years) | Prepayment Speed (annual) | Discount Rate (annual) | Weighted-Average Default rate | ||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||
Servicing assets | Fixed | 7.7 | 8.5 | % | 10.2 | % | N/A | 6.3 | 11 | % | 10.3 | % | N/A | |||||||||||
Servicing assets | Adjustable | 3.7 | 22.4 | 11.5 | N/A | 3.8 | 21.7 | 11.4 | N/A | |||||||||||||||
Based on historical credit experience, expected credit losses for residential mortgage loan servicing assets have been deemed immaterial, as the Bancorp sold the majority of the underlying loans without recourse. At September 30, 2013 and December 31, 2012, the Bancorp serviced $69.0 billion and $62.5 billion, respectively, of residential mortgage loans for other investors. The value of MSRs that continue to be held by the Bancorp is subject to credit, prepayment and interest rate risks on the sold financial assets. | ||||||||||||||||||||||||
At September 30, 2013, the sensitivity of the current fair value of residual cash flows to immediate 10%, 20% and 50% adverse changes in prepayment speed assumptions and immediate 10% and 20% adverse changes in other assumptions are as follows: | ||||||||||||||||||||||||
Prepayment | Residual Servicing | |||||||||||||||||||||||
Speed Assumption | Cash Flows | |||||||||||||||||||||||
Fair | Weighted-Average Life (in | Impact of Adverse Change on Fair Value | Discount | Impact of Adverse Change on Fair Value | ||||||||||||||||||||
($ in millions)(a) | Rate | Value | years) | Rate | 10% | 20% | 50% | Rate | 10% | 20% | ||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||
Servicing assets | Fixed | $ | 876 | 6.4 | 11.4 | % | $ | -36 | -70 | -158 | 10.4 | % | $ | -34 | -65 | |||||||||
Servicing assets | Adjustable | 39 | 3.2 | 25.7 | -2 | -3 | -7 | 11.6 | -1 | -2 | ||||||||||||||
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 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_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
11. 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, options and swaptions. 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, TBAs 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. TBAs 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 may economically hedge significant exposures related to these free-standing derivatives by entering into offsetting third-party contracts with approved, reputable 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 Bancorp's derivative assets include certain contractual features in which the Bancorp requires the counterparties to provide collateral in the form of cash and securities to offset changes in the fair value of the derivatives, including changes in the fair value due to credit risk of the counterparty. As of September 30, 2013 and December 31, 2012, the balance of collateral held by the Bancorp for derivative assets was $534 million and $927 million, respectively. The credit component negatively impacting the fair value of derivative assets associated with customer accommodation contracts as of September 30, 2013 and December 31, 2012 was $16 million and $18 million, respectively. | |||||||||||||
In measuring the fair value of derivative liabilities, the Bancorp considers its own credit risk, taking into consideration collateral maintenance requirements of certain derivative counterparties and the duration of instruments with counterparties that do not require collateral maintenance. When necessary, the Bancorp posts collateral primarily in the form of cash and securities to offset changes in fair value of the derivatives, including changes in fair value due to the Bancorp's credit risk. As of September 30, 2013 and December 31, 2012, the balance of collateral posted by the Bancorp for derivative liabilities was $648 million and $785 million, respectively. 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 September 30, 2013, 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 not material 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 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. For further information on offsetting derivatives, see Note 12 of the Notes to Condensed Consolidated Financial Statements. | |||||||||||||
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 | |||||||||||||
Notional | Derivative | Derivative | |||||||||||
September 30, 2013 ($ in millions) | Amount | Assets | Liabilities | ||||||||||
Qualifying hedging instruments | |||||||||||||
Fair value hedges: | |||||||||||||
Interest rate swaps related to long-term debt | $ | 3,205 | 345 | 11 | |||||||||
Total fair value hedges | 345 | 11 | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate swaps related to C&I loans | 1,000 | 45 | - | ||||||||||
Total cash flow hedges | 45 | - | |||||||||||
Total derivatives designated as qualifying hedging instruments | 390 | 11 | |||||||||||
Derivatives not designated as qualifying hedging instruments | |||||||||||||
Free-standing derivatives - risk management and other business purposes | |||||||||||||
Interest rate contracts related to MSRs | 2,992 | 147 | 8 | ||||||||||
Forward contracts related to held for sale mortgage loans | 4,068 | 12 | 44 | ||||||||||
Stock warrants associated with Vantiv Holding, LLC | 569 | 293 | - | ||||||||||
Swap associated with the sale of Visa, Inc. Class B shares | 812 | - | 35 | ||||||||||
Total free-standing derivatives - risk management and other business purposes | 452 | 87 | |||||||||||
Free-standing derivatives - customer accommodation: | |||||||||||||
Interest rate contracts for customers | 29,128 | 399 | 412 | ||||||||||
Interest rate lock commitments | 1,433 | 25 | 1 | ||||||||||
Commodity contracts | 3,330 | 83 | 82 | ||||||||||
Foreign exchange contracts | 18,299 | 237 | 214 | ||||||||||
Total free-standing derivatives - customer accommodation | 744 | 709 | |||||||||||
Total derivatives not designated as qualifying hedging instruments | 1,196 | 796 | |||||||||||
Total | $ | 1,586 | 807 | ||||||||||
Fair Value | |||||||||||||
Notional | Derivative | Derivative | |||||||||||
December 31, 2012 ($ in millions) | Amount | Assets | Liabilities | ||||||||||
Qualifying hedging instruments | |||||||||||||
Fair value hedges: | |||||||||||||
Interest rate swaps related to long-term debt | $ | 2,880 | 558 | - | |||||||||
Total fair value hedges | 558 | - | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate floors related to C&I loans | 1,500 | 22 | - | ||||||||||
Interest rate swaps related to C&I loans | 1,000 | 60 | - | ||||||||||
Interest rate caps related to long-term debt | 500 | - | - | ||||||||||
Interest rate swaps related to long-term debt | 250 | - | 1 | ||||||||||
Total cash flow hedges | 82 | 1 | |||||||||||
Total derivatives designated as qualifying hedging instruments | 640 | 1 | |||||||||||
Derivatives not designated as qualifying hedging instruments | |||||||||||||
Free-standing derivatives - risk management and other business purposes | |||||||||||||
Interest rate contracts related to MSRs | 10,177 | 219 | - | ||||||||||
Forward contracts related to held for sale mortgage loans | 5,322 | 2 | 14 | ||||||||||
Stock warrants associated with Vantiv Holding, LLC | 416 | 177 | - | ||||||||||
Swap associated with the sale of Visa, Inc. Class B shares | 644 | - | 33 | ||||||||||
Total free-standing derivatives - risk management and other business purposes | 398 | 47 | |||||||||||
Free-standing derivatives - customer accommodation: | |||||||||||||
Interest rate contracts for customers | 27,354 | 586 | 602 | ||||||||||
Interest rate lock commitments | 4,894 | 60 | - | ||||||||||
Commodity contracts | 3,084 | 87 | 82 | ||||||||||
Foreign exchange contracts | 17,297 | 201 | 183 | ||||||||||
Derivative instruments related to equity linked CDs | 5 | - | - | ||||||||||
Total free-standing derivatives - customer accommodation | 934 | 867 | |||||||||||
Total derivatives not designated as qualifying hedging instruments | 1,332 | 914 | |||||||||||
Total | $ | 1,972 | 915 | ||||||||||
Fair Value Hedges | |||||||||||||
The Bancorp may enter into interest rate swaps to convert its fixed-rate funding to floating-rate. Decisions to convert fixed-rate funding to floating are made primarily through consideration of the asset/liability mix of the Bancorp, the desired asset/liability sensitivity and interest rate levels. As of September 30, 2013 and December 31, 2012, certain interest rate swaps met the criteria required to qualify for the shortcut method of accounting. Based on this shortcut method of accounting treatment, no ineffectiveness is assumed. For interest rate swaps that do not meet the shortcut requirements, an assessment of hedge effectiveness using regression analysis was performed and such swaps were accounted for using the “long-haul” method. The long-haul method requires a quarterly assessment of hedge effectiveness and measurement of ineffectiveness. For interest rate swaps accounted for as a fair value hedge using the long-haul method, ineffectiveness is the difference between the changes in the fair value of the interest rate swap and changes in fair value of the related hedged item attributable to the risk being hedged. The ineffectiveness on interest rate swaps hedging fixed-rate funding is reported within interest expense in the Condensed Consolidated Statements of Income. | |||||||||||||
The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income: | |||||||||||||
Condensed Consolidated | For the three months | For the nine months | |||||||||||
Statements of | ended September 30, | ended September 30, | |||||||||||
($ in millions) | Income Caption | 2013 | 2012 | 2013 | 2012 | ||||||||
Interest rate contracts: | |||||||||||||
Change in fair value of interest rate swaps hedging long-term debt | Interest on long-term debt | $ | -30 | -35 | -223 | -56 | |||||||
Change in fair value of hedged long-term debt attributable to the risk being hedged | Interest on long-term debt | 30 | 44 | 220 | 59 | ||||||||
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. The assets or liabilities may be grouped in circumstances where they share the same risk exposure for which the Bancorp desires to hedge. The Bancorp may also enter into interest rate caps and floors to limit cash flow variability of floating rate assets and liabilities. As of September 30, 2013, all hedges designated as cash flow hedges were assessed for effectiveness using regression analysis. Ineffectiveness is generally measured as the amount by which the cumulative change in the fair value of the hedging instrument exceeds the present value of the cumulative change in the hedged item's expected cash flows attributable to the risk being hedged. Ineffectiveness is reported within other noninterest income in the Condensed Consolidated Statements of Income. The effective portion of the cumulative gains or losses on cash flow hedges are reported within accumulated other comprehensive income and are reclassified from accumulated other comprehensive income to current period earnings when the forecasted transaction affects earnings. As of September 30, 2013, the maximum length of time over which the Bancorp is hedging its exposure to the variability in future cash flows is 29 months. | |||||||||||||
Reclassified gains and losses on interest rate contracts related to commercial and industrial loans are recorded within interest income while reclassified gains and losses on interest rate contracts related to long-term debt are recorded within interest expense in the Condensed Consolidated Statements of Income. As of September 30, 2013 and December 31, 2012, $31 million and $50 million, respectively, of deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income in the Condensed Consolidated Balance Sheets. As of September 30, 2013, approximately $18 million of net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to September 30, 2013. | |||||||||||||
During the three and nine months ended September 30, 2013 and 2012, there were no gains or losses reclassified from accumulated other comprehensive income into earnings associated with the discontinuance of cash flow hedges because it was probable that the original forecasted transaction would not occur by the end of the originally specified time period or within the additional period of time as defined by U.S. GAAP. | |||||||||||||
The following table presents the net gains recorded in the Condensed Consolidated Statements of Income and accumulated other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: | |||||||||||||
For the three months | For the nine months | ||||||||||||
ended September 30, | ended September 30, | ||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||
Amount of net gains recognized in OCI | $ | 9 | 10 | 8 | 35 | ||||||||
Amount of net gains reclassified from OCI into net income | 6 | 22 | 37 | 63 | |||||||||
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, TBAs and interest rate swaps) to economically hedge changes in fair value of its largely fixed-rate MSR portfolio. Principal-only swaps hedge the mortgage-LIBOR spread because these swaps appreciate in value as a result of tightening spreads. Principal-only swaps also provide prepayment protection by increasing in value when prepayment speeds increase, as opposed to MSRs that lose value in a faster prepayment environment. Receive fixed/pay floating interest rate swaps and swaptions increase in value when interest rates do not increase as quickly as expected. | |||||||||||||
The Bancorp enters into forward contracts and mortgage options to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. Interest rate lock commitments 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. | |||||||||||||
Additionally, as part of the Bancorp's overall risk management strategy with respect to minimizing significant fluctuations in earnings and cash flows caused by interest rate and prepayment volatility, the Bancorp may enter into free-standing derivative instruments (options, swaptions and interest rate swaps). The gains and losses on these derivative contracts are recorded within other noninterest income in the Condensed Consolidated Statements of Income. | |||||||||||||
In conjunction with the sale of the Bancorp's 51% interest in Vantiv Holding, LLC, the Bancorp received warrants and issued put options, which are accounted for as free-standing derivatives. The put options expired as a result of the Vantiv, Inc. initial public offering in March of 2012. Refer to Note 21 for further discussion of significant inputs and assumptions used in the valuation of the warrants. | |||||||||||||
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. See Note 21 for further discussion of significant inputs and assumptions used in the valuation of this instrument. | |||||||||||||
The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: | |||||||||||||
Condensed Consolidated | For the three months | For the nine months | |||||||||||
Statements of | ended September 30, | ended September 30, | |||||||||||
($ in millions) | Income Caption | 2013 | 2012 | 2013 | 2012 | ||||||||
Interest rate contracts: | |||||||||||||
Forward contracts related to mortgage loans held for sale | Mortgage banking net revenue | $ | -191 | -59 | -20 | -42 | |||||||
Interest rate contracts related to MSR portfolio | Mortgage banking net revenue | 24 | 32 | -13 | 75 | ||||||||
Interest rate swaps related to long-term debt | Other noninterest income | - | 1 | - | 2 | ||||||||
Foreign exchange contracts: | |||||||||||||
Foreign exchange contracts for trading purposes | Other noninterest income | -2 | -1 | 3 | -1 | ||||||||
Equity contracts: | |||||||||||||
Stock warrants associated with Vantiv Holding, LLC | Other noninterest income | 6 | -16 | 116 | 85 | ||||||||
Put options associated with sale of the processing business | Other noninterest income | - | - | - | 1 | ||||||||
Swap associated with sale of Visa, Inc. Class B shares | Other noninterest income | -2 | -1 | -13 | -30 | ||||||||
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 Bancorp's Condensed Consolidated Balance Sheets or to forecasted transactions and, therefore, do not qualify for hedge accounting. These instruments include foreign exchange derivative contracts entered into for the benefit of commercial customers involved in international trade to hedge their exposure to foreign currency fluctuations and commodity contracts to hedge such items as natural gas and various other derivative contracts. The Bancorp may economically hedge significant exposures related to these derivative contracts entered into for the benefit of customers by entering into offsetting contracts with approved, reputable, independent counterparties with substantially matching terms. The Bancorp hedges its interest rate exposure on commercial customer transactions by executing offsetting swap agreements with primary dealers. Revaluation gains and losses on interest rate, foreign exchange, commodity and other commercial customer derivative contracts are recorded as a component of corporate banking revenue in the Condensed Consolidated Statements of Income. | |||||||||||||
The Bancorp enters into risk participation agreements, under which the Bancorp assumes credit exposure relating to certain underlying interest rate derivative contracts. The Bancorp only enters into these risk participation agreements in instances in which the Bancorp has participated in the loan that the underlying interest rate derivative contract was designed to hedge. The Bancorp will make payments under these agreements if a customer defaults on its obligation to perform under the terms of the underlying interest rate derivative contract. As of September 30, 2013 and December 31, 2012, the total notional amount of the risk participation agreements was $1.2 billion and $1.0 billion, respectively, and the fair value was a liability of $3 million at September 30, 2013 and $2 million at December 31, 2012, respectively, which is included in interest rate contracts for customers. As of September 30, 2013, the risk participation agreements had an average remaining life of 3.9 years. | |||||||||||||
The Bancorp's maximum exposure in the risk participation agreements is contingent on the fair value of the underlying interest rate derivative contracts in an asset position at the time of default. The Bancorp monitors the credit risk associated with the underlying customers in the risk participation agreements through the same risk grading system currently utilized for establishing loss reserves in its loan and lease portfolio. | |||||||||||||
Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table: | |||||||||||||
September 30, | December 31, | ||||||||||||
As of ($ in millions) | 2013 | 2012 | |||||||||||
Pass | $ | 1,157 | 993 | ||||||||||
Special mention | 37 | - | |||||||||||
Substandard | 13 | 13 | |||||||||||
Doubtful | - | - | |||||||||||
Total | $ | 1,207 | 1,006 | ||||||||||
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: | |||||||||||||
For the three months | For the nine months | ||||||||||||
Condensed Consolidated | ended September 30, | ended September 30, | |||||||||||
($ in millions) | Statements of Income Caption | 2013 | 2012 | 2013 | 2012 | ||||||||
Interest rate contracts: | |||||||||||||
Interest rate contracts for customers (contract revenue) | Corporate banking revenue | $ | 8 | 7 | 22 | 20 | |||||||
Interest rate contracts for customers (credit losses) | Other noninterest expense | - | -1 | -3 | -2 | ||||||||
Interest rate contracts for customers (credit portion of | |||||||||||||
fair value adjustment) | Other noninterest expense | - | 2 | 4 | 5 | ||||||||
Interest rate lock commitments | Mortgage banking net revenue | 43 | 166 | 41 | 341 | ||||||||
Commodity contracts: | |||||||||||||
Commodity contracts for customers (contract revenue) | Corporate banking revenue | 1 | 1 | 5 | 6 | ||||||||
Commodity contracts for customers (credit portion of | |||||||||||||
fair value adjustment) | Other noninterest expense | - | 1 | - | 1 | ||||||||
Foreign exchange contracts: | |||||||||||||
Foreign exchange contracts - customers (contract revenue) | Corporate banking revenue | 14 | 16 | 52 | 49 | ||||||||
Foreign exchange contracts - customers (credit portion of | |||||||||||||
fair value adjustment) | Other noninterest expense | - | 1 | -2 | 2 |
Offsetting_Derivative_Financia
Offsetting Derivative Financial Instruments | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Offsetting Derivative Financial Instruments | ' | ||||||||||||
Offsetting Derivative Financial Instruments | ' | ||||||||||||
12. 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. | |||||||||||||
Collateral amounts included in the table below consist primarily of cash and highly-rated government-backed securities. | |||||||||||||
Amount | Gross Amounts Not Offset in the | ||||||||||||
Recognized in the | Condensed Consolidated Balance Sheet | ||||||||||||
September 30, 2013 ($ in millions) | Condensed Consolidated Balance Sheet(a) | Derivatives | Collateral(b) | Net Amount | |||||||||
Assets | |||||||||||||
Derivatives | $ | 1,268 | -322 | -430 | $ | 516 | |||||||
Total assets | 1,268 | -322 | -430 | 516 | |||||||||
Liabilities | |||||||||||||
Derivatives | 806 | -322 | -360 | 124 | |||||||||
Total liabilities | $ | 806 | -322 | -360 | $ | 124 | |||||||
Amount | Gross Amounts Not Offset in the | ||||||||||||
Recognized in the | Condensed Consolidated Balance Sheet | ||||||||||||
December 31, 2012 ($ in millions) | Condensed Consolidated Balance Sheet(a) | Derivatives | Collateral(b) | Net Amount | |||||||||
Assets | |||||||||||||
Derivatives | $ | 1,735 | -291 | -794 | $ | 650 | |||||||
Total assets | 1,735 | -291 | -794 | 650 | |||||||||
Liabilities | |||||||||||||
Derivatives | 915 | -291 | -505 | 119 | |||||||||
Total liabilities | $ | 915 | -291 | -505 | $ | 119 | |||||||
Amount does not include stock warrants associated with Vantiv Holding, LLC and interest rate lock commitments because these instruments are not subject to master netting or similar arrangement. | |||||||||||||
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 | |||||||||||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2013 | |
Long-Term Debt | ' |
Long-Term Debt | ' |
13. Long-Term Debt | |
On February 25, 2013, the Bancorp's banking subsidiary updated and amended its existing global bank note program. The amended global bank note program increased the Bank's capacity to issue its senior and subordinated unsecured bank notes from $20 billion to $25 billion. Additionally, on February 28, 2013, the Bank issued and sold, under its amended bank notes program, $1.3 billion in aggregate principal amount of unsecured senior bank notes. The bank notes consisted of: $600 million of 1.45% senior fixed rate notes, with a maturity of five years, due on February 28, 2018; $400 million of 0.90% senior fixed rate notes with a maturity of three years, due on February 26, 2016; and $300 million of senior floating rate notes with a maturity of three years, due on February 26, 2016. Interest on the floating rate notes is 3-month LIBOR plus 41 basis points. These bank notes will be redeemable by the Bank, in whole or in part, on or after the date that is 30 days prior to the maturity date at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest through the redemption date. | |
As previously discussed in Note 9, the Bancorp was determined to be the primary beneficiary of a VIE associated with an automobile loan securitization completed in the third quarter of 2013. As such, $1.2 billion of long-term debt related to this VIE was consolidated in the Bancorp's Condensed Consolidated Financial Statements as of September 30, 2013. Third-party holders of this debt do not have recourse to the general assets of the Bancorp. |
Capital_Actions
Capital Actions | 9 Months Ended |
Sep. 30, 2013 | |
Capital Actions | ' |
Capital Actions | ' |
14. Capital Actions | |
Accelerated Share Repurchase Transactions | |
On November 6, 2012, the Bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the Bancorp purchased 7,710,761 shares, or approximately $125 million, of its outstanding common stock on November 9, 2012. The Bancorp repurchased the shares of its common stock as part of its 100 million share repurchase program announced in August of 2012. As part of this transaction and all subsequent accelerated share repurchases, the Bancorp entered into a forward contract in which the final number of shares to be delivered at settlement of the accelerated share repurchase transaction will be based generally on a discount to the average daily volume-weighted average price of the Bancorp's common stock during the term of the Repurchase Agreement. The accelerated share repurchase was treated as two separate transactions (i) the acquisition of treasury shares on the acquisition date and (ii) a forward contract indexed to the Bancorp's stock. At settlement of the forward contract on February 12, 2013, the Bancorp received an additional 657,914 shares which were recorded as an adjustment to the basis in the treasury shares purchased on the acquisition date. | |
Following the sale of a portion of the Bancorp's shares of Class A Vantiv, Inc. common stock, the Bancorp entered into an accelerated share repurchase transaction on December 14, 2012 with a counterparty pursuant to which the Bancorp purchased 6,267,410 shares or approximately $100 million of its outstanding common stock on December 19, 2012. The Bancorp repurchased the shares of its common stock as part of its previously announced 100 million share repurchase program. At settlement of the forward contract on February 27, 2013, the Bancorp received an additional 127,760 shares which were recorded as an adjustment to the basis in the treasury shares purchased on the acquisition date. | |
On January 28, 2013, the Bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the Bancorp purchased 6,953,028 shares or approximately $125 million of its outstanding common stock on January 31, 2013. The Bancorp repurchased the shares of its common stock as part of its previously announced Board approved 100 million share repurchase program. This repurchase transaction concluded the $600 million of common share repurchases not objected to by the FRB in the 2012 CCAR process. At settlement of the forward contract on April 5, 2013, the Bancorp received an additional 849,037 shares which were recorded as an adjustment to the basis in the treasury shares purchased on the acquisition date. | |
On March 19, 2013, the Bancorp's Board of Directors authorized the Bancorp to repurchase up to 100 million shares of its outstanding common stock in the open market or in privately negotiated transactions, and to utilize any derivative or similar instrument to effect share repurchase transactions (including without limitation, accelerated share repurchase contracts, equity forward transactions, equity option transactions, equity swap transactions, cap transactions, collar transactions, floor transactions or other similar transactions or any combination of the foregoing transactions). This share repurchase authorization replaces the Board's previous authorization from August of 2012. | |
On May 21, 2013, the Bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the Bancorp purchased 25,035,519 shares, or approximately $539 million, of its outstanding common stock on May 24, 2013. The Bancorp repurchased the shares of its common stock as part of its 100 million share repurchase program previously announced on March 19, 2013. At settlement of the forward contract on October 1, 2013, the Bancorp received an additional 4,270,250 shares which were recorded in the fourth quarter of 2013 as an adjustment to the basis in the treasury shares purchased on the acquisition date. | |
Preferred Stock Offering and Conversion | |
On May 13, 2013, the Bancorp issued in a registered public offering 600,000 depositary shares, representing 24,000 shares of 5.10% fixed-to-floating rate non-cumulative Series H perpetual preferred stock, for net proceeds of $593 million. Each preferred share has a $25,000 liquidation preference. The preferred stock accrues dividends, on a non-cumulative, semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating rate dividend of three-month LIBOR plus 3.033%. Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and following a regulatory capital event at any time prior to June 30, 2023. The Series H preferred shares are not convertible into Bancorp common shares or any other securities. Under the 2013 CCAR, the Bancorp has $450 million of remaining preferred stock available for issuance as of September 30, 2013. | |
On June 11, 2013, the Bancorp's Board of Directors authorized the conversion into common stock, no par value, of all outstanding shares of the Bancorp's 8.50% non-cumulative convertible perpetual preferred stock, Series G, which shares are represented by depositary shares each representing 1/250th of a share of Series G preferred stock, pursuant to the Amended Articles of Incorporation. The Articles grant the Bancorp the right, at its option, to convert all outstanding shares of Series G preferred stock if the closing price of common stock exceeded 130% of the applicable conversion price for 20 trading days within any period of 30 consecutive trading days. The closing price of shares of common stock satisfied such threshold for the 30 trading days ended June 10, 2013, and the Bancorp gave the required notice of its exercise of its conversion right. | |
On July 1, 2013, the Bancorp converted the remaining 16,442 outstanding shares of Series G preferred stock, which represented 4,110,500 depositary shares, into shares of Fifth Third's common stock. Each share of Series G preferred stock was converted into 2,159.8272 shares of common stock, representing a total of 35,511,740 issued shares. The common shares issued in the conversion are exempt securities pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended, as the securities exchanged were exclusively with the Bancorp's existing security holders where no commission or other remuneration was paid. Upon conversion, the depositary shares were delisted from the NASDAQ Global Select Market and withdrawn from the Exchange. |
Commitments_Contingent_Liabili
Commitments, Contingent Liabilities and Guarantees | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Commitments, Contingent Liabilities and Guarantees | ' | ||||||||||
Commitments, Contingent Liabilities and Guarantees | ' | ||||||||||
15. 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 Bancorp's 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 further detail below: | |||||||||||
Commitments | |||||||||||
The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: | |||||||||||
September 30, | December 31, | ||||||||||
($ in millions) | 2013 | 2012 | |||||||||
Commitments to extend credit | $ | 59,411 | 53,403 | ||||||||
Forward contracts to sell mortgage loans | 4,068 | 5,322 | |||||||||
Letters of credit | 4,019 | 4,281 | |||||||||
Noncancelable lease obligations | 742 | 769 | |||||||||
Capital commitments for private equity investments | 96 | 121 | |||||||||
Purchase obligations | 89 | 87 | |||||||||
Capital expenditures | 38 | 29 | |||||||||
Capital lease obligations | 19 | 24 | |||||||||
Commitments to extend credit | |||||||||||
Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Since many of the commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. The Bancorp is exposed to credit risk in the event of nonperformance by the counterparty for the amount of the contract. Fixed-rate commitments are also subject to market risk resulting from fluctuations in interest rates and the Bancorp's exposure is limited to the replacement value of those commitments. As of September 30, 2013 and December 31, 2012, the Bancorp had a reserve for unfunded commitments, including letters of credit, totaling $167 million and $179 million, respectively, included in other liabilities in the Condensed Consolidated Balance Sheets. The Bancorp monitors the credit risk associated with commitments to extend credit using the same risk rating system utilized within its loan and lease portfolio. | |||||||||||
Risk ratings under this risk rating system are summarized in the following table: | |||||||||||
September 30, | December 31, | ||||||||||
($ in millions) | 2013 | 2012 | |||||||||
Pass | $ | 58,752 | 52,812 | ||||||||
Special mention | 304 | 370 | |||||||||
Substandard | 350 | 221 | |||||||||
Doubtful | 5 | - | |||||||||
Total | $ | 59,411 | 53,403 | ||||||||
Forward contracts to sell mortgage loans | |||||||||||
The Bancorp enters into forward contracts to economically hedge the change in fair value of certain residential mortgage loans held for sale due to changes in interest rates. The outstanding notional amounts of these forward contracts are included in the summary of significant commitments table above for all periods presented. | |||||||||||
Letters of credit | |||||||||||
Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of: | |||||||||||
September 30, | |||||||||||
($ in millions) | 2013 | ||||||||||
Less than 1 year(a) | $ | 1,795 | |||||||||
1 - 5 years(a) | 2,172 | ||||||||||
Over 5 years | 52 | ||||||||||
Total | $ | 4,019 | |||||||||
Includes $67 and $6 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than one year and between one and five years, respectively. | |||||||||||
Standby letters of credit accounted for 98% of total letters of credit at September 30, 2013 compared to 99% at December 31, 2012 and are considered guarantees in accordance with U.S. GAAP. Approximately 46% and 49% of the total standby letters of credit were fully secured as of September 30, 2013 and December 31, 2012, 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 $2 million at September 30, 2013 and $4 million at December 31, 2012. The Bancorp monitors the credit risk associated with letters of credit using the same risk rating system utilized within its loan and lease portfolio. | |||||||||||
Risk ratings under this risk rating system are summarized in the following table: | |||||||||||
September 30, | December 31, | ||||||||||
($ in millions) | 2013 | 2012 | |||||||||
Pass | $ | 3,515 | 3,902 | ||||||||
Special mention | 137 | 129 | |||||||||
Substandard | 343 | 223 | |||||||||
Doubtful | 24 | 27 | |||||||||
Total | $ | 4,019 | 4,281 | ||||||||
At September 30, 2013 and December 31, 2012, the Bancorp had outstanding letters of credit that were supporting certain securities issued as VRDNs. The Bancorp facilitates financing for its commercial customers, which consist of companies and municipalities, by marketing the VRDNs to investors. The VRDNs pay interest to holders at a rate of interest that fluctuates based upon market demand. The VRDNs generally have long-term maturity dates, but can be tendered by the holder for purchase at par value upon proper advance notice. When the VRDNs are tendered, a remarketing agent generally finds another investor to purchase the VRDNs to keep the securities outstanding in the market. As of September 30, 2013 and December 31, 2012, total VRDNs were $2.3 billion and $2.8 billion of which FTS acted as the remarketing agent to issuers on $2.0 billion and $2.5 billion, respectively. As remarketing agent, FTS is responsible for finding purchasers for VRDNs that are put by investors. The Bancorp issued letters of credit, as a credit enhancement, on $1.7 billion and $2.0 billion to the VRDNs remarketed by FTS, in addition to $299 million and $345 million in VRDNs remarketed by third parties at September 30, 2013 and December 31, 2012, respectively. These letters of credit are included in the total letters of credit balance provided in the previous table. | |||||||||||
Noncancelable lease obligations and other commitments | |||||||||||
The Bancorp's subsidiaries have entered into a number of noncancelable lease agreements. The minimum rental commitments under noncancelable lease agreements are shown in the summary of significant commitments table. The Bancorp has also entered into a limited number of agreements for work related to banking center construction and to purchase goods or services. | |||||||||||
Contingent Liabilities | |||||||||||
Private mortgage reinsurance | |||||||||||
For certain mortgage loans originated by the Bancorp, borrowers may be required to obtain PMI provided by third-party insurers. In some instances, these insurers cede a portion of the PMI premiums to the Bancorp, and the Bancorp provides reinsurance coverage within a specified range of the total PMI coverage. The Bancorp's reinsurance coverage typically ranges from 5% to 10% of the total PMI coverage. The Bancorp's maximum exposure in the event of nonperformance by the underlying borrowers is equivalent to the Bancorp's total outstanding reinsurance coverage, which was $40 million at September 30, 2013 and $58 million at December 31, 2012. As of September 30, 2013 and December 31, 2012, the Bancorp maintained a reserve of $13 million and $18 million, respectively, related to exposures within the reinsurance portfolio which was included in other liabilities in the Condensed Consolidated Balance Sheets. During 2009, the Bancorp suspended the practice of providing reinsurance of private mortgage insurance for newly originated mortgage loans. | |||||||||||
Legal claims | |||||||||||
There are legal claims pending against the Bancorp and its subsidiaries that have arisen in the normal course of business. See Note 16 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 (make whole) the investor or insurer for which the representation or warranty of the Bancorp proves to be inaccurate, incomplete or misleading. | |||||||||||
The Bancorp establishes a residential mortgage repurchase reserve related to various representations and warranties that reflects management's estimate of losses based on a combination of factors. The Bancorp's estimation process requires management to make subjective and complex judgments about matters that are inherently uncertain, such as, future demand expectations, economic factors and the specific characteristics of the loans subject to repurchase. Such factors incorporate historical investor audit and repurchase demand rates, appeals success rates, historical loss severity, and any additional information obtained from the GSEs regarding future mortgage repurchase and file request criteria. At the time of a loan sale, the Bancorp records a representation and warranty reserve at the estimated fair value of the Bancorp's guarantee and continually updates the reserve during the life of the loan as losses in excess of the reserve become probable and reasonably estimable. The provision for the estimated fair value of the representation and warranty guarantee arising from the loan sales is recorded as an adjustment to the gain on sale, which is included in noninterest income at the time of sale. Updates to the reserve are recorded in other noninterest expense. | |||||||||||
The Bancorp maintained reserves related to these loans sold with representation and warranty provisions, which were included in other liabilities on the Condensed Consolidated Balance Sheets, totaling $103 million and $110 million as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||
The Bancorp uses the best information available to it in estimating its mortgage representation and warranty reserve; however, the estimation process is inherently uncertain and imprecise and, accordingly, losses in excess of the amounts reserved as of September 30, 2013, 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 $61 million in excess of amounts reserved. This estimate was derived by modifying the key assumptions discussed above to reflect management's judgment regarding reasonably possible adverse changes to those assumptions. The actual repurchase losses could vary significantly from the recorded mortgage representation and warranty reserve or this estimate of reasonably possibly losses, depending on the outcome of various factors, including those noted above. | |||||||||||
The following table summarizes activity in the reserve for representation and warranty provisions: | |||||||||||
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | |||||||
Balance, beginning of period | $ | 117 | 57 | 110 | 55 | ||||||
(Recovery of) provision for representation and warranty expense | -3 | 37 | 34 | 66 | |||||||
Losses charged against the reserve | -11 | -13 | -41 | -40 | |||||||
Balance, end of period | $ | 103 | 81 | 103 | 81 | ||||||
The following table provides a rollforward of unresolved demands by claimant type for the nine months ended September 30, 2013: | |||||||||||
GSE | Private Label | ||||||||||
($ in millions) | Units | Dollars | Units | Dollars | |||||||
Balance, beginning of period | 294 | $ | 48 | 124 | $ | 19 | |||||
New demands | 1,409 | 189 | 223 | 2 | |||||||
Loan paydowns/payoffs | -11 | -2 | -6 | -1 | |||||||
Resolved demands | -1,397 | -190 | -311 | -16 | |||||||
Balance, end of period | 295 | $ | 45 | 30 | $ | 4 | |||||
The following table provides a rollforward of unresolved demands by claimant type for the nine months ended September 30, 2012: | |||||||||||
GSE | Private Label | ||||||||||
($ in millions) | Units | Dollars | Units | Dollars | |||||||
Balance, beginning of period | 328 | $ | 47 | 109 | $ | 19 | |||||
New demands | 2,116 | 274 | 173 | 6 | |||||||
Loan paydowns/payoffs | -34 | -5 | -1 | - | |||||||
Resolved demands | -2,092 | -261 | -157 | -6 | |||||||
Balance, end of period | 318 | $ | 55 | 124 | $ | 19 | |||||
Residential mortgage loans sold with credit recourse | |||||||||||
The Bancorp sold certain residential mortgage loans in the secondary market with credit recourse. In the event of any customer default, pursuant to the credit recourse provided, the Bancorp is required to reimburse the third party. The maximum amount of credit risk in the event of nonperformance by the underlying borrowers is equivalent to the total outstanding balance. In the event of nonperformance, the Bancorp has rights to the underlying collateral value securing the loan. The outstanding balances on these loans sold with credit recourse were $589 million and $662 million at September 30, 2013 and December 31, 2012, respectively, and the delinquency rates were 4.6% and 5.9% at September 30, 2013 and December 31, 2012, respectively. The Bancorp maintained an estimated credit loss reserve on these loans sold with credit recourse of $18 million and $20 million at September 30, 2013 and December 31, 2012, respectively, recorded in other liabilities in the Condensed Consolidated Balance Sheets. To determine the credit loss reserve, the Bancorp used an approach that is consistent with its overall approach in estimating credit losses for various categories of residential mortgage loans held in its loan portfolio. | |||||||||||
Margin accounts | |||||||||||
FTS, a 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 balance held by the brokerage clearing agent was $11 million and $17 million at September 30, 2013 and December 31, 2012, respectively. In the event of any customer default, FTS has rights to the underlying collateral provided. Given the existence of the underlying collateral provided and negligible historical credit losses, the Bancorp does not maintain a loss reserve related to the margin accounts. | |||||||||||
Long-term borrowing obligations | |||||||||||
The Bancorp had certain fully and unconditionally guaranteed long-term borrowing obligations issued by wholly-owned issuing trust entities of $812 million at September 30, 2013. | |||||||||||
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 in 2008, had certain indemnification obligations pursuant to Visa's certificate of incorporation and by-laws and in accordance with their membership agreements. In accordance with Visa's by-laws 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 litigation (the “Covered Litigation”) as of the date of the restructuring. This modification triggered a requirement to recognize a $3 million liability for the year ended December 31, 2007 equal to the fair value of the indemnification obligation. Additionally during 2007, the Bancorp recorded $169 million for its share of litigation formally settled by Visa and for probable future litigation settlements. In conjunction with the IPO, the Bancorp received 10.1 million of Visa's Class B shares based on the Bancorp's membership percentage in Visa prior to the IPO. The Class B shares are not transferable (other than to another member bank) until the later of the third anniversary of the IPO closing or the date 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. If Visa's litigation committee determines that the escrow account is insufficient, then Visa will issue additional Class A shares and deposit the proceeds from the sale of the shares into the litigation escrow account. When Visa funds the litigation escrow account, the Class B shares are subject to dilution through an adjustment in the conversion rate of Class B shares into Class A shares. During 2008, the Bancorp recorded additional reserves of $71 million for probable future settlements related to the Covered Litigation and recorded its proportional share of $169 million of the Visa escrow account net against the Bancorp's litigation reserve. | |||||||||||
During 2009, Visa announced it had deposited an additional $700 million into the litigation escrow account. As a result of this funding, the Bancorp recorded its proportional share of $29 million of these additional funds as a reduction to its net Visa litigation reserve liability and a reduction to noninterest expense. Later in 2009, the Bancorp completed the sale of Visa, Inc. Class B shares for proceeds of $300 million. As part of this transaction 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. The swap terminates on the later of the third anniversary of Visa's IPO or the date on which the Covered Litigation is settled. The Bancorp calculates the fair value of the swap based on its estimate of the probability and timing of certain Covered Litigation settlement scenarios and the resulting payments related to 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 Visa Class B shares and through September 30, 2013, 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 with an initial fair value of $55 million. The sale of the Class B shares, recognition of the derivative liability and reversal of the net litigation reserve liability resulted in a pre-tax benefit of $288 million ($187 million after-tax) recognized by the Bancorp for the year ended December 31, 2009. In the second and fourth quarters of 2010, Visa funded an additional $500 million and $800 million, respectively, into the litigation escrow account which resulted in further dilution in the conversion of Class B shares into Class A shares and required the Bancorp to make cash payments of $20 million and $35 million, respectively, (each of which reduced the swap liability) to the swap counterparty. In the second quarter of 2011, Visa funded an additional $400 million into the litigation escrow account. Upon Visa's funding of the litigation escrow account in the second quarter of 2011, along with additional terms of the total return swap, the Bancorp made a $19 million cash payment (which reduced the swap liability) to the swap counterparty. During the fourth quarter of 2011, Visa announced it decided to fund an additional $1.565 billion into the litigation escrow account which increased the swap liability approximately $54 million. Upon Visa's funding of the litigation escrow account in the first quarter of 2012, along with additional terms of the total return swap, the Bancorp made a $75 million cash payment (which reduced the swap liability) to the swap counterparty. On July 24, 2012, Visa funded an additional $150 million into the litigation escrow account which resulted in further dilution in the conversion of Class B shares into Class A shares and required the Bancorp to make a $6 million cash payment (which reduced the swap liability) to the swap counterparty during the quarter ended September 30, 2012. The fair value of the swap liability was $35 million and $33 million at September 30, 2013 and December 31, 2012, respectively. Refer to Note 16 for further information. |
Legal_and_Regulatory_Proceedin
Legal and Regulatory Proceedings | 9 Months Ended |
Sep. 30, 2013 | |
Legal And Regulatory Proceedings | ' |
Legal and Regulatory Proceedings | ' |
16. Legal and Regulatory Proceedings | |
During 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. The plaintiffs, merchants operating commercial businesses throughout the U.S. and trade associations, claim that the interchange fees charged by card-issuing banks are unreasonable and seek injunctive relief and unspecified damages. In addition to being a named defendant, the Bancorp is also subject to a possible indemnification obligation of Visa as discussed in Note 15 and has also entered into judgment and loss sharing agreements with Visa, MasterCard and certain other named defendants. On October 19, 2012, the parties to the litigation entered into a settlement agreement. The court entered a Class Settlement Preliminary Approval Order on November 27, 2012. Pursuant to the terms of the settlement agreement, the Bancorp paid $46 million into a class settlement escrow account. Previously, the Bancorp paid an additional $4 million in another settlement escrow in connection with the settlement of claims from plaintiffs not included in the class action. More than 7,900 merchants have requested exclusion from the class settlement. Pursuant to the terms of the settlement agreement, 25% of the funds paid into the class settlement escrow account will be returned to the control of the defendants through Class Exclusion Takedown Payments. A number of the merchants who requested exclusion from the class have filed separate federal lawsuits against Visa, MasterCard and certain other defendants alleging similar antitrust violations. The federal lawsuits have been tentatively transferred to the United States District Court for the Eastern District of New York. The Bancorp was not named as a defendant in any of the federal lawsuits, but may have obligations pursuant to indemnification arrangements and/or the judgment or loss sharing agreements noted above. In addition, one merchant filed a separate state court lawsuit against Visa, MasterCard and certain other defendants, including the Bancorp, alleging similar antitrust violations. Refer to Note 15 for further information. | |
In September 2007, Ronald A. Katz Technology Licensing, L.P. (Katz) filed a suit in the United States District Court for the Southern District of Ohio against the Bancorp and its Ohio banking subsidiary. In the suit, Katz alleges that the Bancorp and its Ohio bank are infringing on Katz's patents for interactive call processing technology by offering certain automated telephone banking and other services. This lawsuit is one of many related patent infringement suits brought by Katz in various courts against numerous other defendants. Katz is seeking unspecified monetary damages and penalties as well as injunctive relief in the suit. Management believes there are substantial defenses to these claims and intends to defend them vigorously. The impact of the final disposition of this lawsuit cannot be assessed at this time. | |
For the year ended December 31, 2008, five putative securities class action complaints were filed against the Bancorp and its Chief Executive Officer, among other parties. The five cases have been consolidated under the caption Local 295/Local 851 IBT Employer Group Pension Trust and Welfare Fund v. Fifth Third Bancorp. et al., Case No. 1:08CV00421, and are currently pending in the United States District Court for the Southern District of Ohio. On December 18, 2012, the Bancorp entered into a settlement agreement to resolve these cases. The settlement is subject to court approval, which process is ongoing. Under the terms of the settlement, the Bancorp and its insurer will pay a total of $16 million to a fund to settle all the claims of the class members. In the settlement the Bancorp has denied any liability and has agreed to the settlement in order to avoid potential future litigation costs and uncertainty. The Bancorp does not consider the impact of the settlement to be material to its financial condition or results of operations. In addition to the foregoing, two cases were filed in the United States District Court for the Southern District of Ohio against the Bancorp and certain officers alleging violations of ERISA based on allegations similar to those set forth in the securities class action cases filed during the same period of time. The two cases alleging violations of ERISA were dismissed by the trial court, but the Sixth Circuit Court of Appeals reversed the trial court decision. The Bancorp petitioned the United States Supreme Court to review and reverse the Sixth Circuit decision and sought a stay of proceedings in the trial court pending appeal. On March 25, 2013, the Supreme Court issued an order directing the Solicitor General to file a brief stating the view of the United States on the issues raised in the Bancorp's petition. The motion to stay remains pending. The impact of the final disposition of the ERISA lawsuits cannot be assessed at this time. | |
The Bancorp and its subsidiaries are not parties to any other material litigation. However, there are other litigation matters that arise in the normal course of business. While it is impossible to ascertain the ultimate resolution or range of financial liability with respect to these contingent matters, management believes any resulting liability from these other actions would not have a material effect upon the Bancorp's consolidated financial position, results of operations or cash flows. | |
The Bancorp and/or its affiliates are involved in information-gathering requests, reviews, investigations and proceedings (both formal and informal) by various governmental regulatory agencies and law enforcement authorities, as well as self-regulatory bodies regarding their respective businesses. Additional matters will likely arise from time to time. Any of these matters may result in material adverse consequences 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 authorities such as the Department of Justice or a United States Attorney. Among other matters, the Bancorp has been cooperating with the Department of Justice and the Office of the Inspector General for the Department of Housing and Urban Development in a civil investigation regarding compliance with requirements relating to certain Federal Housing Agency-insured loans originated by affiliates of the Bancorp. The investigation is ongoing, and no demand or claim has been made of the Bancorp. The investigation could lead to a demand under the federal False Claims Act and the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989, which allow up to treble and other special damages substantially in excess of actual losses. | |
As previously disclosed, the SEC has been investigating the Bancorp's historical accounting and reporting with respect to certain commercial loans that were sold or reclassified as held-for-sale in the fourth quarter of 2008. At dispute in the matter is whether certain of those loans should have been moved to held for sale in the third quarter of that year. The Bancorp is in discussions with the SEC staff concerning a proposed settlement of that investigation, pursuant to which the Bancorp, without admitting or denying any factual allegations, would consent to the SEC's issuance of an administrative order finding that the Bancorp did not properly account for a portion of its commercial real estate loan portfolio in its Form 10-Q for the third quarter of 2008 in violation of certain provisions of the securities laws, including Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 and Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. The proposed settlement would also order the Bancorp to cease and desist from committing or causing any such violations in the future and to pay a civil money penalty. Daniel T. Poston, the Bancorp's interim chief financial officer during the relevant time, is in separate settlement discussions with the SEC staff concerning a settlement pursuant to which Mr. Poston, without admitting or denying any factual allegations, would consent to similar findings and charges against him, a cease and desist order, a separate civil money penalty, and a one-year ban from practicing before the SEC. The proposed settlement is subject to approval by the Commissioners of the SEC. There can be no assurance that the Commissioners will approve a settlement on the terms described above. Refer to the Bancorp's Current Report on Form 8-K filed with the SEC on November 5, 2013 for additional information regarding this proposed settlement and related actions. | |
The Bancorp is party to numerous claims and lawsuits concerning matters arising from the conduct of its business activities. The outcome of litigation and the timing of ultimate resolution are inherently difficult to predict. The following factors, among others, contribute to this lack of predictability: plaintiff 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. A reserve 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 reserve 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 reserved. 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 proceedings including the matters discussed above in an aggregate amount up to approximately $116 million in excess of amounts reserved, 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 reserve that cannot be estimated. Based on information currently available, advice of counsel, available insurance coverage and established reserves, 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. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
17. Related Party Transactions | |
The Bancorp's ownership position in Vantiv Holding, LLC was reduced in the second quarter of 2013 when the Bancorp sold an approximate five percent interest and recognized a $242 million gain. The Bancorp's ownership percentage was further reduced in the third quarter of 2013 when the Bancorp sold an approximate three percent interest and recognized a $85 million gain. The Bancorp's remaining approximate 25% ownership in Vantiv Holding, LLC was accounted for as an equity method investment in the Bancorp's Condensed Consolidated Financial Statements and had a carrying value of $415 million as of September 30, 2013. | |
As of September 30, 2013, the Bancorp continued to hold approximately 48.8 million Class B units of Vantiv Holding, LLC and a warrant to purchase approximately 20.4 million Class C non-voting units of Vantiv Holding, LLC, both of which may be exchanged for Class A Common Stock of Vantiv, Inc. on a one for one basis or at Vantiv, Inc.'s option for cash. In addition, the Bancorp holds approximately 48.8 million Class B common shares of Vantiv, Inc. The Class B common shares give the Bancorp voting rights, but no economic interest in Vantiv, Inc. The voting rights attributable to the Class B common shares are limited to 18.5% of the voting power in Vantiv, Inc. at any time other than in connection with a stockholder vote with respect to a change in control in Vantiv, Inc. These securities are subject to certain terms and restrictions. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
18. Income Taxes | |
The Bancorp's provision for income taxes was $183 million and $139 million for the three months ended September 30, 2013 and 2012, respectively. The provision for income taxes was $613 million and $491 million for the nine months ended September 30, 2013 and 2012, respectively. The effective tax rates for the three months ended September 30, 2013 and 2012 were 30.3% and 27.7%, respectively. The effective tax rates for the nine months ended September 30, 2013 and 2012 were 30.1% and 29.4%, respectively. The increase in the effective tax rate for the three months ended September 30, 2013 from the three months ended September 30, 2012 was primarily due to an increase in projected annual pre-tax income and anticipated increases in non-deductible expenses and decreases in non-taxable income from the prior period. | |
The Bancorp's unrecognized tax benefits as of September 30, 2013 were $6 million. While it is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of the Bancorp's uncertain tax positions could increase or decrease during the next 12 months, the Bancorp believes it is unlikely that its unrecognized tax benefits will change by a material amount during the next 12 months. | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||
19. Accumulated Other Comprehensive Income | |||||||||||||||
The activity of the components of other comprehensive income and accumulated other comprehensive income for the three months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
30-Sep-13 | |||||||||||||||
Unrealized holding gains on available-for-sale securities arising | |||||||||||||||
during period | $ | 106 | -37 | 69 | |||||||||||
Reclassification adjustment for net gains included in net income | -5 | 1 | -4 | ||||||||||||
Net unrealized gains on available-for-sale securities | 101 | -36 | 65 | 203 | 65 | 268 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 9 | -3 | 6 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -6 | 2 | -4 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | 3 | -1 | 2 | 29 | 2 | 31 | |||||||||
Defined benefit plans: | |||||||||||||||
Net actuarial loss | 3 | -1 | 2 | ||||||||||||
Defined benefit plans, net | 3 | -1 | 2 | -83 | 2 | -81 | |||||||||
Total | $ | 107 | -38 | 69 | 149 | 69 | 218 | ||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
30-Sep-12 | |||||||||||||||
Unrealized holding gains on available-for-sale securities arising | |||||||||||||||
during period | $ | 33 | -11 | 22 | |||||||||||
Reclassification adjustment for net gains included in net income | -6 | 2 | -4 | ||||||||||||
Net unrealized gains on available-for-sale securities | 27 | -9 | 18 | 476 | 18 | 494 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 10 | -2 | 8 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -22 | 8 | -14 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | -12 | 6 | -6 | 68 | -6 | 62 | |||||||||
Defined benefit plans: | |||||||||||||||
Net actuarial loss | 3 | -1 | 2 | ||||||||||||
Defined benefit plans, net | 3 | -1 | 2 | -90 | 2 | -88 | |||||||||
Total | $ | 18 | -4 | 14 | 454 | 14 | 468 | ||||||||
The activity of the components of other comprehensive income and accumulated other comprehensive income for the nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
30-Sep-13 | |||||||||||||||
Unrealized holding losses on available-for-sale securities arising | |||||||||||||||
during period | $ | -274 | 96 | -178 | |||||||||||
Reclassification adjustment for net losses included in net income | 53 | -19 | 34 | ||||||||||||
Net unrealized gains on available-for-sale securities | -221 | 77 | -144 | 412 | -144 | 268 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 8 | -3 | 5 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -37 | 13 | -24 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | -29 | 10 | -19 | 50 | -19 | 31 | |||||||||
Defined benefit plans: | |||||||||||||||
Net actuarial loss | 9 | -3 | 6 | ||||||||||||
Defined benefit plans, net | 9 | -3 | 6 | -87 | 6 | -81 | |||||||||
Total | $ | -241 | 84 | -157 | 375 | -157 | 218 | ||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
30-Sep-12 | |||||||||||||||
Unrealized holding gains on available-for-sale securities arising | |||||||||||||||
during period | $ | 29 | -10 | 19 | |||||||||||
Reclassification adjustment for net gains included in net income | -16 | 6 | -10 | ||||||||||||
Net unrealized gains on available-for-sale securities | 13 | -4 | 9 | 485 | 9 | 494 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 35 | -12 | 23 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -63 | 22 | -41 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | -28 | 10 | -18 | 80 | -18 | 62 | |||||||||
Defined benefit plans: | |||||||||||||||
Net actuarial loss | 11 | -4 | 7 | ||||||||||||
Defined benefit plans, net | 11 | -4 | 7 | -95 | 7 | -88 | |||||||||
Total | $ | -4 | 2 | -2 | 470 | -2 | 468 | ||||||||
The table below presents reclassifications out of accumulated other comprehensive income for the three months ended September 30, 2013: | |||||||||||||||
Amount Reclassified | Affected Line Item in the Condensed | ||||||||||||||
Components of AOCI: ($ in millions) | from AOCI(b) | Consolidated Statements of Income | |||||||||||||
Net unrealized gains on available-for-sale securities | |||||||||||||||
Net gains included in net income | $ | 5 | Securities gains, net | ||||||||||||
5 | Income before income taxes | ||||||||||||||
-1 | Applicable income tax expense | ||||||||||||||
4 | Net income | ||||||||||||||
Net unrealized gains on cash flow hedge derivatives | |||||||||||||||
Interest rate contracts related to C&I loans | 6 | Interest and fees on loans and leases | |||||||||||||
6 | Income before income taxes | ||||||||||||||
-2 | Applicable income tax expense | ||||||||||||||
4 | Net income | ||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||
Net actuarial loss | -3 | (a) | |||||||||||||
-3 | Income before income taxes | ||||||||||||||
1 | Applicable income tax expense | ||||||||||||||
-2 | Net income | ||||||||||||||
Total reclassifications for the period | $ | 6 | Net income | ||||||||||||
The table below presents reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2013: | |||||||||||||||
Amount Reclassified | Affected Line Item in the Condensed | ||||||||||||||
Components of AOCI: ($ in millions) | from AOCI(b) | Consolidated Statements of Income | |||||||||||||
Net unrealized gains on available-for-sale securities | |||||||||||||||
Net losses included in net income | $ | -53 | Securities gains, net | ||||||||||||
-53 | Income before income taxes | ||||||||||||||
19 | Applicable income tax expense | ||||||||||||||
-34 | Net income | ||||||||||||||
Net unrealized gains on cash flow hedge derivatives | |||||||||||||||
Interest rate contracts related to C&I loans | 38 | Interest and fees on loans and leases | |||||||||||||
Interest rate contracts related to long-term debt | -1 | Interest on long-term debt | |||||||||||||
37 | Income before income taxes | ||||||||||||||
-13 | Applicable income tax expense | ||||||||||||||
24 | Net income | ||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||
Net actuarial loss | -9 | (a) | |||||||||||||
-9 | Income before income taxes | ||||||||||||||
3 | Applicable income tax expense | ||||||||||||||
-6 | Net income | ||||||||||||||
Total reclassifications for the period | $ | -16 | Net income | ||||||||||||
This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 20 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2012 for information on the computation of net periodic benefit cost. | |||||||||||||||
Amounts in parentheses indicate reductions to net income | |||||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share | ' | ||||||||
Earnings Per Share | ' | ||||||||
20. Earnings Per Share | |||||||||
The calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share were as follows: | |||||||||
2013 | 2012 | ||||||||
For the three months ended September 30, | Average | Per Share | Average | Per Share | |||||
(in millions, except per share data) | Income | Shares | Amount | Income | Shares | Amount | |||
Earnings per share: | |||||||||
Net income attributable to Bancorp | $ | 421 | 363 | ||||||
Dividends on preferred stock | - | 9 | |||||||
Net income available to common shareholders | 421 | 354 | |||||||
Less: Income allocated to participating securities | 3 | 2 | |||||||
Net income allocated to common shareholders | $ | 418 | 880 | 0.47 | 352 | 904 | 0.39 | ||
Earnings per diluted share: | |||||||||
Net income available to common shareholders | $ | 421 | 354 | ||||||
Effect of dilutive securities: | |||||||||
Stock-based awards | - | 8 | - | - | 5 | - | |||
Series G convertible preferred stock | - | - | - | 9 | 36 | -0.01 | |||
Net income available to common shareholders | 421 | 363 | |||||||
plus assumed conversions | |||||||||
Less: Income allocated to participating securities | 3 | 2 | |||||||
Net income allocated to common shareholders | |||||||||
plus assumed conversions | $ | 418 | 888 | 0.47 | 361 | 945 | 0.38 | ||
2013 | 2012 | ||||||||
For the nine months ended September 30, | Average | Per Share | Average | Per Share | |||||
(in millions, except per share data) | Income | Shares | Amount | Income | Shares | Amount | |||
Earnings per share: | |||||||||
Net income attributable to Bancorp | $ | 1,433 | 1,178 | ||||||
Dividends on preferred stock | 18 | 26 | |||||||
Net income available to common shareholders | 1,415 | 1,152 | |||||||
Less: Income allocated to participating securities | 10 | 7 | |||||||
Net income allocated to common shareholders | $ | 1,405 | 870 | 1.62 | 1,145 | 911 | 1.26 | ||
Earnings per diluted share: | |||||||||
Net income available to common shareholders | $ | 1,415 | 1,152 | ||||||
Effect of dilutive securities: | |||||||||
Stock-based awards | - | 7 | - | - | 5 | - | |||
Series G convertible preferred stock | 18 | 24 | -0.04 | 26 | 36 | -0.03 | |||
Net income available to common shareholders | 1,433 | 1,178 | |||||||
plus assumed conversions | |||||||||
Less: Income allocated to participating securities | 10 | 7 | |||||||
Net income allocated to common shareholders | |||||||||
plus assumed conversions | $ | 1,423 | 901 | 1.58 | 1,171 | 952 | 1.23 | ||
Shares are excluded from the computation of net income per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the three and nine months ended September 30, 2013 excludes 24 million and 25 million, respectively, of stock appreciation rights and an immaterial amount of stock options for the three months ended September 30, 2013 and 1 million of stock options for the nine months ended September 30, 2013. The diluted earnings per share computation for the three and nine months ended September 30, 2012 excludes 39 million and 36 million, respectively, of stock appreciation rights and 3 million and 5 million, respectively, of stock options. | |||||||||
The diluted earnings per share computation for the three and nine months ended September 30, 2013 excludes the impact of the forward contract related to the May 21, 2013 share repurchase agreement. Based on the average daily volume-weighted average price of the Bancorp's common stock during the third quarter of 2013, the counterparty to the transaction would have been required to deliver approximately 4 million shares as of September 30, 2013, and thus the impact of the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. The diluted earnings per share computation for the three and nine months ended September 30, 2012 excluded the impact of the forward contract related to the August 23, 2012 accelerated share repurchase transaction because, based upon the average daily volume-weighted average price of the Bancorp's common stock during the third quarter of 2012, the counterparty would have been required to deliver approximately 2 million shares as of September 30, 2012, and thus the impact would have been anti-dilutive to earnings per share. | |||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Measurements | ' | ||||||||||||||
Fair Value Measurements | ' | ||||||||||||||
21. 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, see Note 1 in the Bancorp's Form 10-K for the year ended December 31, 2012. | |||||||||||||||
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, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of: | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
September 30, 2013 ($ in millions) | Level 1(c) | Level 2(c) | Level 3 | Total Fair Value | |||||||||||
Assets: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
U.S. Treasury and government agencies | $ | 26 | - | - | 26 | ||||||||||
U.S. Government sponsored agencies | - | 1,653 | - | 1,653 | |||||||||||
Obligations of states and political subdivisions | - | 205 | - | 205 | |||||||||||
Agency mortgage-backed securities | - | 11,353 | - | 11,353 | |||||||||||
Other bonds, notes and debentures | - | 3,839 | - | 3,839 | |||||||||||
Other securities(a) | 92 | 66 | - | 158 | |||||||||||
Available-for-sale securities(a) | 118 | 17,116 | - | 17,234 | |||||||||||
Trading securities: | |||||||||||||||
U.S. Treasury and government agencies | 1 | - | - | 1 | |||||||||||
U.S. Government sponsored agencies | - | 20 | - | 20 | |||||||||||
Obligations of states and political subdivisions | - | 20 | 1 | 21 | |||||||||||
Agency mortgage-backed securities | - | 1 | - | 1 | |||||||||||
Other bonds, notes and debentures | - | 9 | - | 9 | |||||||||||
Other securities | 194 | - | - | 194 | |||||||||||
Trading securities | 195 | 50 | 1 | 246 | |||||||||||
Residential mortgage loans held for sale | - | 1,298 | - | 1,298 | |||||||||||
Residential mortgage loans(b) | - | - | 89 | 89 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | 12 | 936 | 25 | 973 | |||||||||||
Foreign exchange contracts | - | 237 | - | 237 | |||||||||||
Equity contracts | - | - | 293 | 293 | |||||||||||
Commodity contracts | 9 | 74 | - | 83 | |||||||||||
Derivative assets | 21 | 1,247 | 318 | 1,586 | |||||||||||
Total assets | $ | 334 | 19,711 | 408 | 20,453 | ||||||||||
Liabilities: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | $ | 44 | 428 | 4 | 476 | ||||||||||
Foreign exchange contracts | - | 214 | - | 214 | |||||||||||
Equity contracts | - | - | 35 | 35 | |||||||||||
Commodity contracts | 14 | 68 | - | 82 | |||||||||||
Derivative liabilities | 58 | 710 | 39 | 807 | |||||||||||
Short positions | 17 | 2 | - | 19 | |||||||||||
Total liabilities | $ | 75 | 712 | 39 | 826 | ||||||||||
Fair Value Measurements Using | |||||||||||||||
December 31, 2012 ($ in millions) | Level 1(c) | Level 2(c) | Level 3 | Total Fair Value | |||||||||||
Assets: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
U.S. Treasury and Government agencies | $ | 41 | - | - | 41 | ||||||||||
U.S. Government sponsored agencies | - | 1,911 | - | 1,911 | |||||||||||
Obligations of states and political subdivisions | - | 212 | - | 212 | |||||||||||
Agency mortgage-backed securities | - | 8,730 | - | 8,730 | |||||||||||
Other bonds, notes and debentures | - | 3,277 | - | 3,277 | |||||||||||
Other securities(a) | 79 | 113 | - | 192 | |||||||||||
Available-for-sale securities(a) | 120 | 14,243 | - | 14,363 | |||||||||||
Trading securities: | |||||||||||||||
U.S. Treasury and Government agencies | 1 | - | - | 1 | |||||||||||
U.S. Government sponsored agencies | - | 6 | - | 6 | |||||||||||
Obligations of states and political subdivisions | - | 16 | 1 | 17 | |||||||||||
Agency mortgage-backed securities | - | 7 | - | 7 | |||||||||||
Other bonds, notes and debentures | - | 15 | - | 15 | |||||||||||
Other securities | 161 | - | - | 161 | |||||||||||
Trading securities | 162 | 44 | 1 | 207 | |||||||||||
Residential mortgage loans held for sale | - | 2,856 | - | 2,856 | |||||||||||
Residential mortgage loans(b) | - | - | 76 | 76 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | 2 | 1,445 | 60 | 1,507 | |||||||||||
Foreign exchange contracts | - | 201 | - | 201 | |||||||||||
Equity contracts | - | - | 177 | 177 | |||||||||||
Commodity contracts | - | 87 | - | 87 | |||||||||||
Derivative assets | 2 | 1,733 | 237 | 1,972 | |||||||||||
Total assets | $ | 284 | 18,876 | 314 | 19,474 | ||||||||||
Liabilities: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | $ | 14 | 600 | 3 | 617 | ||||||||||
Foreign exchange contracts | - | 183 | - | 183 | |||||||||||
Equity contracts | - | - | 33 | 33 | |||||||||||
Commodity contracts | - | 82 | - | 82 | |||||||||||
Derivative liabilities | 14 | 865 | 36 | 915 | |||||||||||
Short positions | 8 | 2 | - | 10 | |||||||||||
Total liabilities | $ | 22 | 867 | 36 | 925 | ||||||||||
Excludes FHLB and FRB restricted stock totaling $497 and $349, respectively, at September 30, 2013 and $497 and $347, respectively, at December 31, 2012. | |||||||||||||||
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | |||||||||||||||
During the three and nine months ended September 30, 2013 and for the year ended December 31, 2012, no assets or liabilities were transferred between Level 1 and Level 2. | |||||||||||||||
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 and trading securities | |||||||||||||||
Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include government bonds and exchange traded equities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include agency and non-agency mortgage-backed securities, other asset-backed securities, obligations of U.S. Government sponsored agencies, and corporate and municipal bonds. Corporate bonds are included in other bonds, notes and debentures in the previous table. Agency mortgage-backed securities, obligations of U.S. Government sponsored agencies, and corporate and municipal bonds are generally valued using a market approach based on observable prices of securities with similar characteristics. | |||||||||||||||
Non-agency mortgage-backed securities and other asset-backed securities, which are included in other bonds, notes and debentures, are generally valued using an income approach based on discounted cash flows, incorporating prepayment speeds, performance of underlying collateral and specific tranche-level attributes. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. | |||||||||||||||
Residential mortgage loans held for sale | |||||||||||||||
For residential mortgage loans held for sale, fair value is estimated based upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale that are valued based on mortgage backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also classified within Level 2 of the valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities market rates and observable discount rates. | |||||||||||||||
Residential mortgage loans | |||||||||||||||
Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. It is the Bancorp's policy to value any transfers between levels of the fair value hierarchy based on end of period fair values. | |||||||||||||||
For residential mortgage loans reclassified from held for sale to held for investment, the fair value estimation is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Therefore, these loans are classified within Level 3 of the valuation hierarchy. An adverse change in the loss rate or severity assumption would result in a decrease in fair value of the related loan. The Secondary Marketing Department, which reports to the Bancorp's Chief Operating Officer, in conjunction with the Consumer Credit Risk Department, which reports to the Bancorp's Chief Risk and Credit Officer, are responsible for determining the valuation methodology for residential mortgage loans held for investment. The Secondary Marketing Department reviews loss severity assumptions quarterly to determine if adjustments are necessary based on decreases in observable housing market data. This group also reviews trades in comparable benchmark securities and adjusts the values of loans as necessary. Consumer Credit Risk is responsible for the credit component of the fair value which is based on internally developed loss rate models that take into account historical loss rates and loss severities based on underlying collateral values. | |||||||||||||||
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 discounted cash flow 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 swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At September 30, 2013 and December 31, 2012, derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of warrants associated with the initial sale of the Bancorp's 51% interest in Vantiv Holding, LLC to Advent International and a total return swap associated with the Bancorp's sale of Visa, Inc. Class B shares. Level 3 derivatives also include interest rate lock commitments, which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process. | |||||||||||||||
The warrants allow the Bancorp to purchase approximately 20 million incremental nonvoting units in Vantiv Holding, LLC under certain defined conditions involving change of control. The fair value of the warrants is calculated in conjunction with a third party valuation provider by applying Black-Scholes option valuation models using probability weighted scenarios which contain the following inputs: Vantiv, Inc. stock price, strike price per the Warrant Agreement and several unobservable inputs, such as expected term, expected volatility and expected dividend rate. | |||||||||||||||
For the warrants, an increase in the expected term (years) and the expected volatility assumptions would result in an increase in the fair value; correspondingly, a decrease in these assumptions would result in a decrease in the fair value. The Accounting and Treasury Departments, both of which report to the Bancorp's Chief Financial Officer, determined the valuation methodology for the warrants. Accounting and Treasury review changes in fair value on a quarterly basis for reasonableness based on changes in historical and implied volatilities, expected terms, probability weightings of the related scenarios, and other assumptions. | |||||||||||||||
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 discounted cash flow 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 fair value; correspondingly, a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in fair value. The Accounting and Treasury Departments determined the valuation methodology for the total return swap. Accounting and Treasury review the changes in fair value on a quarterly basis for reasonableness based on Visa stock price changes, litigation contingencies, and escrow funding. | |||||||||||||||
The net fair value asset of the interest rate lock commitments at September 30, 2013 was $24 million. Immediate decreases in current interest rates of 25 bps and 50 bps would result in increases in the fair value of the interest rate lock commitments of approximately $10 million and $19 million, respectively. Immediate increases of current interest rates of 25 bps and 50 bps would result in decreases in the fair value of the interest rate lock commitments of approximately $12 million and $25 million, respectively. The decrease in fair value of interest rate lock commitments due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximately $2 million and $5 million, respectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $2 million and $5 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear. | |||||||||||||||
The Secondary Marketing Department and the Consumer Line of Business Finance Department, which reports to the Bancorp's Chief Financial Officer, are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third party valuation provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data. | |||||||||||||||
The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Residential | Interest Rate | Equity | |||||||||||||
For the three months ended September 30, 2013 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||||
Beginning balance | $ | 1 | 83 | -30 | 250 | 304 | |||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||
Included in earnings | - | - | 43 | 5 | 48 | ||||||||||
Purchases | - | - | -1 | - | -1 | ||||||||||
Settlements | - | -5 | 9 | 3 | 7 | ||||||||||
Transfers into Level 3(b) | - | 11 | - | - | 11 | ||||||||||
Ending balance | $ | 1 | 89 | 21 | 258 | 369 | |||||||||
The amount of total gains or losses for the period | |||||||||||||||
included in earnings attributable to the change in | |||||||||||||||
unrealized gains or losses relating to assets | |||||||||||||||
still held at September 30, 2013(c) | $ | - | - | 22 | 5 | 27 | |||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Residential | Interest Rate | Equity | |||||||||||||
For the three months ended September 30, 2012 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||||
Beginning balance | $ | 1 | 76 | 54 | 184 | 315 | |||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||
Included in earnings | - | 1 | 163 | -17 | 147 | ||||||||||
Settlements | - | -5 | -118 | 9 | -114 | ||||||||||
Transfers into Level 3(b) | - | 4 | - | - | 4 | ||||||||||
Ending balance | $ | 1 | 76 | 99 | 176 | 352 | |||||||||
The amount of total gains or losses for the period | |||||||||||||||
included in earnings attributable to the change in | |||||||||||||||
unrealized gains or losses relating to assets | |||||||||||||||
still held at September 30, 2012(c) | $ | - | 1 | 101 | -17 | 85 | |||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Residential | Interest Rate | Equity | |||||||||||||
For the nine months ended September 30, 2013 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||||
Beginning balance | $ | 1 | 76 | 57 | 144 | 278 | |||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||
Included in earnings | - | -1 | 42 | 102 | 143 | ||||||||||
Purchases | - | - | -1 | - | -1 | ||||||||||
Settlements | - | -12 | -77 | 12 | -77 | ||||||||||
Transfers into Level 3(b) | - | 26 | - | - | 26 | ||||||||||
Ending balance | $ | 1 | 89 | 21 | 258 | 369 | |||||||||
The amount of total gains or losses for the period | |||||||||||||||
included in earnings attributable to the change in | |||||||||||||||
unrealized gains or losses relating to assets | |||||||||||||||
still held at September 30, 2013(c) | $ | - | -1 | 45 | 102 | 146 | |||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Residential | Interest Rate | Equity | |||||||||||||
For the nine months ended September 30, 2012 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||||
Beginning balance | $ | 1 | 65 | 32 | 32 | $ | 130 | ||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||
Included in earnings | - | - | 338 | 57 | 395 | ||||||||||
Settlements | - | -10 | -271 | 87 | -194 | ||||||||||
Transfers into Level 3(b) | - | 21 | - | - | 21 | ||||||||||
Ending balance | $ | 1 | 76 | 99 | 176 | $ | 352 | ||||||||
The amount of total gains or losses for the period | |||||||||||||||
included in earnings attributable to the change in | |||||||||||||||
unrealized gains or losses relating to assets | |||||||||||||||
still held at September 30, 2012(c) | $ | - | - | 173 | 57 | $ | 230 | ||||||||
Net interest rate derivatives include derivative assets and liabilities of $25 and $4, respectively, as of September 30, 2013 and $102 and $3, respectively, as of September 30, 2012. Net equity derivatives include derivative assets and liabilities of $293 and $35, respectively, as of September 30, 2013, and $198 and $22, respectively, as of September 30, 2012. | |||||||||||||||
Includes residential mortgage loans held for sale that were transferred to held for investment. | |||||||||||||||
Includes interest income and expense. | |||||||||||||||
The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: | |||||||||||||||
For the three months | For the nine months | ||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Mortgage banking net revenue | $ | 43 | 165 | 40 | 339 | ||||||||||
Corporate banking revenue | - | - | 1 | - | |||||||||||
Other noninterest income | 5 | -18 | 102 | 56 | |||||||||||
Total gains | $ | 48 | 147 | 143 | 395 | ||||||||||
The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at September 30, 2013 and 2012 were recorded in the Condensed Consolidated Statements of Income as follows: | |||||||||||||||
For the three months | For the nine months | ||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Mortgage banking net revenue | $ | 22 | 103 | 43 | 174 | ||||||||||
Corporate banking revenue | - | - | 1 | - | |||||||||||
Other noninterest income | 5 | -18 | 102 | 56 | |||||||||||
Total gains | $ | 27 | 85 | 146 | 230 | ||||||||||
The following tables present information as of September 30, 2013 and 2012 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a recurring basis: | |||||||||||||||
As of September 30, 2013 ($ in millions) | |||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||||
Residential mortgage loans | $ | 89 | Loss rate model | Interest rate risk factor | (19.9) - 12.2% | 3.50% | |||||||||
Credit risk factor | 0 - 56.4% | 3.30% | |||||||||||||
IRLCs, net | 24 | Discounted cash flow | Loan closing rates | 3.1 - 97.2% | 66.40% | ||||||||||
Stock warrants associated with Vantiv | 293 | Black-Scholes option | Expected term (years) | 2.00 - 15.8 | 5.1 | ||||||||||
Holding, LLC | valuation model | Expected volatility(a) | 21.0 - 33.4% | 27.80% | |||||||||||
Expected dividend rate | - | - | |||||||||||||
Swap associated with the sale of Visa, Inc. | -35 | Discounted cash flow | Timing of the resolution | 3/31/2014 - | NM | ||||||||||
Class B shares | of the Covered Litigation | 3/31/17 | |||||||||||||
As of September 30, 2012 ($ in millions) | |||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||||
Residential mortgage loans | $ | 76 | Loss rate model | Interest rate risk factor | (91.0) - 16.6% | 6.50% | |||||||||
Credit risk factor | 2.3 - 68.4% | 4.60% | |||||||||||||
IRLCs, net | 102 | Discounted cash flow | Loan closing rates | 9.8 - 95.0% | 60.10% | ||||||||||
Stock warrants associated with Vantiv | 197 | Black-Scholes option | Expected term (years) | 2.00 - 16.75 | 6.2 | ||||||||||
Holding, LLC | valuation model | Expected volatility(a) | 27.7 - 40.6% | 34.20% | |||||||||||
Expected dividend rate | 0 | 0 | |||||||||||||
Swap associated with the sale of Visa, Inc. | -21 | Discounted cash flow | Timing of the resolution | 6/30/13 - | NM | ||||||||||
Class B shares | of the Covered Litigation | 6/30/15 | |||||||||||||
Based on historical and implied volatilities of comparable companies assuming similar expected terms. | |||||||||||||||
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 represent those assets that were subject to fair value adjustments during the three and nine months ended September 30, 2013 and 2012 and still held as of the end of the period, and the related 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 | Total Losses | |||||||||||||
For the three months | For the nine months | ||||||||||||||
As of September 30, 2013 ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ended September 30, 2013 | ended September 30, 2013 | |||||||||
Commercial loans held for sale(a) | $ | - | - | - | - | - | -5 | ||||||||
Commercial and industrial loans | - | - | 431 | 431 | -103 | -134 | |||||||||
Commercial mortgage loans | - | - | 63 | 63 | -9 | -34 | |||||||||
Commercial construction loans | - | - | 3 | 3 | -4 | -6 | |||||||||
Commercial leases | - | - | 1 | 1 | - | - | |||||||||
MSRs | - | - | 915 | 915 | -1 | 150 | |||||||||
OREO | - | - | 109 | 109 | -8 | -37 | |||||||||
Total | $ | - | - | 1,522 | 1,522 | -125 | -66 | ||||||||
Fair Value Measurements Using | Total Losses | Total Losses | |||||||||||||
For the three months | For the nine months | ||||||||||||||
As of September 30, 2012 ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ended September 30, 2012 | ended September 30, 2012 | |||||||||
Commercial loans held for sale(a) | $ | - | - | 13 | 13 | -4 | -10 | ||||||||
Commercial and industrial loans | - | - | 79 | 79 | -31 | -86 | |||||||||
Commercial mortgage loans | - | - | 59 | 59 | -11 | -40 | |||||||||
Commercial construction loans | - | - | 8 | 8 | -5 | -21 | |||||||||
MSRs | - | - | 679 | 679 | -72 | -122 | |||||||||
OREO | - | - | 114 | 114 | -16 | -60 | |||||||||
Total | $ | - | - | 952 | 952 | -139 | -339 | ||||||||
Includes commercial nonaccrual loans held for sale. | |||||||||||||||
The following tables present information as of September 30, 2013 and 2012 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: | |||||||||||||||
As of September 30, 2013 ($ in millions) | |||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||||
Commercial loans held for sale | $ | 0 | Appraised value | Appraised value | NM | NM | |||||||||
Cost to sell | NM | 10.00% | |||||||||||||
Commercial and industrial loans | 431 | Appraised value | Collateral value | NM | NM | ||||||||||
Commercial mortgage loans | 63 | Appraised value | Collateral value | NM | NM | ||||||||||
Commercial construction loans | 3 | Appraised value | Collateral value | NM | NM | ||||||||||
Commercial leases | 1 | Appraised value | Collateral value | NM | NM | ||||||||||
MSRs | 915 | Discounted cash flow | Prepayment speed | 0 - 100% | (Fixed) 11.4% (Adjustable) 25.7% | ||||||||||
Discount rates | 9.4 - 18.0% | (Fixed) 10.4% (Adjustable) 11.6% | |||||||||||||
OREO | 109 | Appraised value | Appraised value | NM | NM | ||||||||||
As of September 30, 2012 ($ in millions) | |||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||||
Commercial loans held for sale | $ | 13 | Appraised value | Appraised value | NM | NM | |||||||||
Cost to sell | NM | 10.00% | |||||||||||||
Commercial and industrial loans | 79 | Appraised value | Default rates | 100% | NM | ||||||||||
Collateral value | NM | NM | |||||||||||||
Commercial mortgage loans | 59 | Appraised value | Default rates | 100% | NM | ||||||||||
Collateral value | NM | NM | |||||||||||||
Commercial construction loans | 8 | Appraised value | Default rates | 100% | NM | ||||||||||
Collateral value | NM | NM | |||||||||||||
MSRs | 679 | Discounted cash flow | Prepayment speed | 0 - 100% | (Fixed) 16.9% (Adjustable) 27.1% | ||||||||||
Discount rates | 9.4 - 18.0% | (Fixed) 10.6% (Adjustable) 11.7% | |||||||||||||
OREO | 114 | Appraised value | Appraised value | NM | NM | ||||||||||
Commercial loans held for sale | |||||||||||||||
The Bancorp transferred $5 million of commercial loans from the portfolio to loans held for sale that upon transfer were measured at fair value during the nine months ended September 30, 2013 and no loans were transferred from the portfolio to loans held for sale during the three months ended September 30, 2013. These loans had no fair value adjustments during the three months ended September 30, 2013 and $4 million during the nine months ended September 30, 2013 and were generally based on appraisals of the underlying collateral. Additionally, fair value adjustments on existing loans held for sale were immaterial for the three months ended September 30, 2013 and $1 million for the nine months ended September 30, 2013. The fair value adjustments were also based on appraisals of the underlying collateral and were therefore classified within Level 3 of the valuation hierarchy. An adverse change in the fair value of the underlying collateral would result in a decrease in the fair value measurement. The Accounting Department determines the procedures for valuation of commercial HFS loans which may include a comparison to recently executed transactions of similar type loans. A monthly review of the portfolio is performed for reasonableness. Quarterly, appraisals approaching a year-old are updated and the Real Estate Valuation group, which reports to the Chief Risk and Credit Officer, in conjunction with the Commercial Line of Business review the third party appraisals for reasonableness. Additionally, the Commercial Line of Business Finance Department, which reports to the Bancorp Chief Financial Officer, in conjunction with Accounting review all loan appraisal values, carry values and vintages. | |||||||||||||||
Commercial loans held for investment | |||||||||||||||
During the three and nine months ended September 30, 2013 and 2012, the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial, commercial mortgage, commercial construction loans and commercial leases held for investment. Larger commercial loans included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp considers the current value of collateral, credit quality of any guarantees, the guarantor's liquidity and willingness to cooperate, the loan structure and other factors when evaluating whether an individual loan is impaired. When the loan is collateral dependent, the fair value of the loan is generally based on the fair value of the underlying collateral supporting the loan and therefore these loans were classified within Level 3 of the valuation hierarchy. An adverse change in the fair value of the underlying collateral would result in a decrease in the fair value measurement. In cases where the carrying value exceeds the fair value, an impairment loss is recognized. The fair values and recognized impairment losses are reflected in the previous table. Commercial Credit Risk, which reports to the Chief Risk and Credit Officer, is responsible for preparing and reviewing the fair value estimates for commercial loans held for investment. | |||||||||||||||
MSRs | |||||||||||||||
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 discounted cash flow models with certain unobservable inputs, primarily prepayment speed assumptions, discount rates and weighted average lives, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 10 for further information on the assumptions used in the valuation of the Bancorp's MSRs. The Secondary Marketing Department and Treasury Department are responsible for determining the valuation methodology for MSRs. Representatives from Secondary Marketing, Treasury, Accounting and Risk Management are responsible for reviewing key assumptions used in the internal discounted cash flow model. Two external valuations of the MSR portfolio are obtained from third parties that use valuation models in order to assess the reasonableness of the internal discounted cash flow model. Additionally, the Bancorp participates in peer surveys that provide additional confirmation of the reasonableness of key assumptions utilized in the MSR valuation process and the resulting MSR prices. | |||||||||||||||
OREO | |||||||||||||||
During the three and nine months ended September 30, 2013 and 2012, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value. These nonrecurring losses are primarily due to declines in real estate values of the properties recorded in OREO. These losses include $3 million and $17 million in losses, recorded as charge-offs, on new OREO properties transferred from loans during the three and nine months ended September 30, 2013, respectively, and $4 million and $13 million for the three and nine months ended September 30, 2012, respectively. These losses also include $5 million and $20 million in losses for the three and nine months ended September 30, 2013, respectively, and $12 million and $47 million in losses for the three and nine months ended September 30, 2012, respectively, recorded in other noninterest income, attributable to fair value adjustments on OREO properties subsequent to their transfer from loans. As discussed in the following paragraphs, the fair value amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. The previous tables reflect the fair value measurements of the properties before deducting the estimated costs to sell. | |||||||||||||||
The Real Estate Valuation department, which reports to the Chief Risk and Credit Officer, is solely responsible for managing the appraisal process and evaluating the appraisal for all for commercial properties transferred to OREO. All appraisals on commercial OREO properties are updated on at least an annual basis. | |||||||||||||||
The Real Estate Valuation department reviews the BPO data and internal market information to determine the initial charge-off on residential real estate loans transferred to OREO. Once the foreclosure process is completed, the Bancorp performs an interior inspection to update the initial fair value of the property. These properties are reviewed at least every 30 days after the initial interior inspections are completed. The Asset Manager receives a monthly status report for each property which includes the number of showings, recently sold properties, current comparable listings and overall market conditions. | |||||||||||||||
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 the three and nine months ended September 30, 2013 for instruments held at September 30, 2013 for which the fair value option was elected as well as the changes in fair value of the underlying IRLCs, included gains of $56 million. Additionally, fair value changes recognized in earnings for the three and nine months ended September 30, 2013 for instruments for which the fair value option was elected but are no longer held by the Bancorp at September 30, 2013 included gains of $110 million and $406 million, respectively. Fair value changes recognized in earnings for the three and nine months ended September 30, 2012 for instruments held at September 30, 2012 for which the fair value option was elected as well as the changes in fair value of the underlying IRLCs included gains of $122 million. Additionally, fair value changes recognized in earnings for the three and nine months ended September 30, 2012 for instruments for which the fair value option was elected but are no longer held by the Bancorp at September 30, 2012 included gains of $138 million and $556 million, respectively. These gains are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income. | |||||||||||||||
Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by $3 million at September 30, 2013 and December 31, 2012. Interest on residential mortgage loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income. | |||||||||||||||
The following table summarizes the difference between the fair value and the principal balance for residential mortgage loans measured at fair value as of: | |||||||||||||||
Aggregate | Aggregate Unpaid | ||||||||||||||
($ in millions) | Fair Value | Principal Balance | Difference | ||||||||||||
30-Sep-13 | |||||||||||||||
Residential mortgage loans measured at fair value | $ | 1,387 | 1,331 | 56 | |||||||||||
Past due loans of 90 days or more | 2 | 3 | -1 | ||||||||||||
Nonaccrual loans | 1 | 1 | - | ||||||||||||
31-Dec-12 | |||||||||||||||
Residential mortgage loans measured at fair value | 2,932 | 2,775 | 157 | ||||||||||||
Past due loans of 90 days or more | 3 | 4 | -1 | ||||||||||||
Nonaccrual loans | - | 1 | -1 | ||||||||||||
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 September 30, 2013 ($ in millions) | Amount | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||
Financial assets: | |||||||||||||||
Cash and due from banks | $ | 2,887 | 2,887 | - | - | 2,887 | |||||||||
Other securities | 846 | - | 846 | - | 846 | ||||||||||
Held-to-maturity securities | 265 | - | - | 265 | 265 | ||||||||||
Other short-term investments | 2,622 | 2,622 | - | - | 2,622 | ||||||||||
Loans held for sale | 32 | - | - | 32 | 32 | ||||||||||
Portfolio loans and leases: | |||||||||||||||
Commercial and industrial loans | 37,440 | - | - | 38,987 | 38,987 | ||||||||||
Commercial mortgage loans | 7,813 | - | - | 7,309 | 7,309 | ||||||||||
Commercial construction loans | 843 | - | - | 699 | 699 | ||||||||||
Commercial leases | 3,509 | - | - | 3,248 | 3,248 | ||||||||||
Residential mortgage loans(a) | 12,251 | - | - | 11,635 | 11,635 | ||||||||||
Home equity | 9,251 | - | - | 9,179 | 9,179 | ||||||||||
Automobile loans | 12,046 | - | - | 11,879 | 11,879 | ||||||||||
Credit card | 2,070 | - | - | 2,230 | 2,230 | ||||||||||
Other consumer loans and leases | 343 | - | - | 357 | 357 | ||||||||||
Unallocated allowance for loan and lease losses | -101 | - | - | - | - | ||||||||||
Total portfolio loans and leases, net(a) | $ | 85,465 | - | - | 85,523 | 85,523 | |||||||||
Financial liabilities: | |||||||||||||||
Deposits | 94,126 | - | 94,157 | - | 94,157 | ||||||||||
Federal funds purchased | 225 | 225 | - | - | 225 | ||||||||||
Other short-term borrowings | 3,487 | - | 3,487 | - | 3,487 | ||||||||||
Long-term debt | 8,098 | 7,943 | 635 | - | 8,578 | ||||||||||
Excludes $89 of residential mortgage loans measured at fair value on a recurring basis. | |||||||||||||||
Net Carrying | Fair Value Measurements Using | ||||||||||||||
As of December 31, 2012 ($ in millions) | Amount | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||
Financial assets: | |||||||||||||||
Cash and due from banks | $ | 2,441 | 2,441 | - | - | 2,441 | |||||||||
Other securities | 844 | - | 844 | - | 844 | ||||||||||
Held-to-maturity securities | 284 | - | - | 284 | 284 | ||||||||||
Other short-term investments | 2,421 | 2,421 | - | - | 2,421 | ||||||||||
Loans held for sale | 83 | - | - | 83 | 83 | ||||||||||
Portfolio loans and leases: | |||||||||||||||
Commercial and industrial loans | 35,236 | - | - | 36,496 | 36,496 | ||||||||||
Commercial mortgage loans | 8,770 | - | - | 8,020 | 8,020 | ||||||||||
Commercial construction loans | 665 | - | - | 505 | 505 | ||||||||||
Commercial leases | 3,481 | - | - | 3,310 | 3,310 | ||||||||||
Residential mortgage loans(a) | 11,712 | - | - | 11,532 | 11,532 | ||||||||||
Home equity | 9,875 | - | - | 9,798 | 9,798 | ||||||||||
Automobile loans | 11,944 | - | - | 12,076 | 12,076 | ||||||||||
Credit card | 2,010 | - | - | 2,139 | 2,139 | ||||||||||
Other consumer loans and leases | 270 | - | - | 288 | 288 | ||||||||||
Unallocated allowance for loan and lease losses | -111 | - | - | - | - | ||||||||||
Total portfolio loans and leases, net(a) | $ | 83,852 | - | - | 84,164 | 84,164 | |||||||||
Financial liabilities: | |||||||||||||||
Deposits | 89,517 | - | 89,592 | - | 89,592 | ||||||||||
Federal funds purchased | 901 | 901 | - | - | 901 | ||||||||||
Other short-term borrowings | 6,280 | - | 6,280 | - | 6,280 | ||||||||||
Long-term debt | 7,085 | 6,925 | 884 | - | 7,809 | ||||||||||
Excludes $76 of residential mortgage loans measured at fair value on a recurring basis. | |||||||||||||||
Cash and due from banks, other securities, other short-term investments, deposits, federal funds purchased and other short-term borrowings | |||||||||||||||
For financial instruments with a short-term or no stated maturity, prevailing market rates and limited credit risk, carrying amounts approximate fair value. Those financial instruments include cash and due from banks, FHLB and FRB restricted stock, other short-term investments, certain deposits (demand, interest checking, savings, money market and foreign office deposits), and federal funds purchased. Fair values for other time deposits, certificates of deposit $100,000 and over and other short-term borrowings were estimated using a discounted cash flow calculation that applied prevailing LIBOR/swap interest rates for the same maturities. | |||||||||||||||
Held-to-maturity securities | |||||||||||||||
The Bancorp's held-to-maturity securities are primarily composed of instruments that provide income tax credits as the economic return on the investment. The fair value of these instruments is estimated based on current U.S. Treasury tax credit rates. | |||||||||||||||
Loans held for sale | |||||||||||||||
Fair values for commercial loans held for sale were valued based on executable bids when available, or on discounted cash flow models incorporating appraisals of the underlying collateral, as well as assumptions about investor return requirements and amounts and timing of expected cash flows. Fair values for other consumer loans held for sale are based on contractual values upon which the loans may be sold to a third party, and approximate their carrying value. | |||||||||||||||
Portfolio loans and leases, net | |||||||||||||||
Fair values were estimated by discounting future cash flows using the current market rates of loans to borrowers with similar credit characteristics and similar remaining maturities. | |||||||||||||||
Long-term debt | |||||||||||||||
Fair value of long-term debt was based on quoted market prices, when available, or a discounted cash flow calculation using LIBOR/swap interest rates and, in some cases, a spread for new issuances with similar terms. |
Business_Segments
Business Segments | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Segments | ' | ||||||||
Business Segments | ' | ||||||||
22. Business Segments | |||||||||
The Bancorp reports on four business segments: Commercial Banking, Branch Banking, Consumer Lending and Investment Advisors. 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 are improved and businesses change. | |||||||||
The Bancorp manages interest rate risk centrally at the corporate level by employing an FTP methodology. This methodology insulates the business segments from interest rate volatility, enabling them to focus on serving customers through loan originations and deposit taking. The FTP system assigns charge rates and credit rates to classes of assets and liabilities, respectively, based on expected duration and the U.S. swap curve. Matching duration allocates interest income and interest expense to each segment so its resulting net interest income is insulated from interest rate risk. In a rising rate environment, the Bancorp benefits from the widening spread between deposit costs and wholesale funding costs. However, the Bancorp's FTP system credits this benefit to deposit-providing businesses, such as Branch Banking and Investment Advisors, on a duration-adjusted basis. The net impact of the FTP methodology is captured in General Corporate and Other. | |||||||||
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 the estimated durations for the indeterminate-lived deposits. The credit rate provided for demand deposit accounts is reviewed annually based upon the account type, its estimated duration and the corresponding fed funds, U.S. swap curve or swap rate. The credit rates for several deposit products were reset January 1, 2013 to reflect the current market rates and updated market assumptions. These rates were generally higher than those in place during 2012, thus net interest income for deposit providing businesses was positively impacted during 2013. | |||||||||
The business segments are charged provision expense based on the actual net charge-offs experienced by the loans and leases owned by each segment. Provision expense attributable to loan and leases growth and changes in ALLL factors are captured in General Corporate and Other. The financial results of the business segments include allocations for shared services and headquarters expenses. Even with these allocations, the financial results are not necessarily indicative of the business segments' financial condition and results of operations as if they existed as independent entities. Additionally, the business segments form synergies by taking advantage of cross-sell opportunities and when funding operations, by accessing the capital markets as a collective unit. | |||||||||
Results of operations and assets by segment for the three and nine months ended September 30, 2013 and 2012 are: | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Three months ended September 30, 2013 | |||||||||
Net interest income | $ | 374 | 374 | 76 | 38 | 31 | - | 893 | |
Provision for loan and lease losses | 37 | 52 | 20 | - | -58 | - | 51 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 337 | 322 | 56 | 38 | 89 | - | 842 | ||
Noninterest income: | |||||||||
Mortgage banking net revenue | - | 3 | 118 | - | - | - | 121 | ||
Service charges on deposits | 61 | 78 | - | 1 | - | - | 140 | ||
Corporate banking revenue | 98 | 4 | - | 1 | -1 | - | 102 | ||
Investment advisory revenue | 1 | 36 | - | 95 | - | (35)(a) | 97 | ||
Card and processing revenue | 13 | 74 | - | 1 | -19 | - | 69 | ||
Other noninterest income | 32 | 22 | 11 | 1 | 119 | - | 185 | ||
Securities gains, net | - | - | 2 | - | - | - | 2 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 5 | - | - | - | 5 | ||
Total noninterest income | 205 | 217 | 136 | 99 | 99 | -35 | 721 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 55 | 114 | 40 | 33 | 147 | - | 389 | ||
Employee benefits | 8 | 32 | 9 | 6 | 28 | - | 83 | ||
Net occupancy expense | 6 | 46 | 2 | 2 | 19 | - | 75 | ||
Technology and communications | 3 | 1 | - | - | 48 | - | 52 | ||
Card and processing expense | 2 | 31 | - | - | - | - | 33 | ||
Equipment expense | 1 | 15 | - | - | 13 | - | 29 | ||
Other noninterest expense | 212 | 191 | 117 | 66 | -253 | -35 | 298 | ||
Total noninterest expense | 287 | 430 | 168 | 107 | 2 | -35 | 959 | ||
Income before income taxes | 255 | 109 | 24 | 30 | 186 | - | 604 | ||
Applicable income tax expense | 49 | 38 | 9 | 10 | 77 | - | 183 | ||
Net income | 206 | 71 | 15 | 20 | 109 | - | 421 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | - | - | - | ||
Net income attributable to Bancorp | 206 | 71 | 15 | 20 | 109 | - | 421 | ||
Dividends on preferred stock | - | - | - | - | - | - | - | ||
Net income available to common shareholders | $ | 206 | 71 | 15 | 20 | 109 | - | 421 | |
Total goodwill | $ | 613 | 1,655 | - | 148 | - | - | 2,416 | |
Total assets | $ | 50,438 | 49,282 | 23,015 | 9,182 | -6,244 | - | 125,673 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Three months ended September 30, 2012 | |||||||||
Net interest income | $ | 354 | 344 | 77 | 30 | 98 | - | 903 | |
Provision for loan and lease losses | 45 | 71 | 38 | 3 | -92 | - | 65 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 309 | 273 | 39 | 27 | 190 | - | 838 | ||
Noninterest income: | |||||||||
Mortgage banking net revenue | - | 3 | 197 | - | - | - | 200 | ||
Service charges on deposits | 57 | 70 | - | 1 | - | - | 128 | ||
Corporate banking revenue | 96 | 4 | - | 1 | - | - | 101 | ||
Investment advisory revenue | 1 | 33 | - | 90 | - | (32)(a) | 92 | ||
Card and processing revenue | 11 | 72 | - | 1 | -19 | - | 65 | ||
Other noninterest income | 18 | 21 | 10 | 14 | 15 | - | 78 | ||
Securities gains, net | - | - | - | - | 2 | - | 2 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 5 | - | - | - | 5 | ||
Total noninterest income | 183 | 203 | 212 | 107 | -2 | -32 | 671 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 53 | 111 | 49 | 33 | 153 | - | 399 | ||
Employee benefits | 7 | 31 | 9 | 6 | 26 | - | 79 | ||
Net occupancy expense | 5 | 47 | 2 | 3 | 19 | - | 76 | ||
Technology and communications | 3 | 1 | - | - | 45 | - | 49 | ||
Card and processing expense | 1 | 29 | - | - | - | - | 30 | ||
Equipment expense | 1 | 14 | - | - | 13 | - | 28 | ||
Other noninterest expense | 201 | 172 | 107 | 67 | -170 | -32 | 345 | ||
Total noninterest expense | 271 | 405 | 167 | 109 | 86 | -32 | 1,006 | ||
Income before income taxes | 221 | 71 | 84 | 25 | 102 | - | 503 | ||
Applicable income tax expense | 39 | 25 | 30 | 9 | 36 | - | 139 | ||
Net income | 182 | 46 | 54 | 16 | 66 | - | 364 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | 1 | - | 1 | ||
Net income attributable to Bancorp | 182 | 46 | 54 | 16 | 65 | - | 363 | ||
Dividends on preferred stock | - | - | - | - | 9 | - | 9 | ||
Net income available to common shareholders | $ | 182 | 46 | 54 | 16 | 56 | - | 354 | |
Total goodwill | $ | 613 | 1,656 | - | 148 | - | - | 2,417 | |
Total assets | $ | 47,495 | 48,003 | 23,640 | 8,024 | -9,679 | - | 117,483 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Nine months ended September 30, 2013 | |||||||||
Net interest income | $ | 1,095 | 1,079 | 246 | 109 | 132 | - | 2,661 | |
Provision for loan and lease losses | 116 | 162 | 71 | 1 | -174 | - | 176 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 979 | 917 | 175 | 108 | 306 | - | 2,485 | ||
Noninterest income: | |||||||||
Mortgage banking net revenue | - | 10 | 563 | 1 | - | - | 574 | ||
Service charges on deposits | 179 | 226 | - | 2 | - | - | 407 | ||
Corporate banking revenue | 295 | 10 | - | 2 | - | - | 307 | ||
Investment advisory revenue | 4 | 110 | - | 289 | - | (108)(a) | 295 | ||
Card and processing revenue | 39 | 215 | - | 3 | -56 | - | 201 | ||
Other noninterest income | 72 | 65 | 37 | 8 | 526 | - | 708 | ||
Securities gains, net | - | - | 2 | - | 17 | - | 19 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 13 | - | - | - | 13 | ||
Total noninterest income | 589 | 636 | 615 | 305 | 487 | -108 | 2,524 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 174 | 342 | 148 | 100 | 429 | - | 1,193 | ||
Employee benefits | 33 | 100 | 34 | 20 | 93 | - | 280 | ||
Net occupancy expense | 17 | 139 | 6 | 7 | 61 | - | 230 | ||
Technology and communications | 8 | 3 | 1 | - | 139 | - | 151 | ||
Card and processing expense | 6 | 91 | - | - | - | - | 97 | ||
Equipment expense | 3 | 43 | 1 | - | 38 | - | 85 | ||
Other noninterest expense | 603 | 557 | 366 | 217 | -699 | -108 | 936 | ||
Total noninterest expense | 844 | 1,275 | 556 | 344 | 61 | -108 | 2,972 | ||
Income before income taxes | 724 | 278 | 234 | 69 | 732 | - | 2,037 | ||
Applicable income tax expense | 133 | 98 | 83 | 24 | 275 | - | 613 | ||
Net income | 591 | 180 | 151 | 45 | 457 | - | 1,424 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | -9 | - | -9 | ||
Net income attributable to Bancorp | 591 | 180 | 151 | 45 | 466 | - | 1,433 | ||
Dividends on preferred stock | - | - | - | - | 18 | - | 18 | ||
Net income available to common shareholders | $ | 591 | 180 | 151 | 45 | 448 | - | 1,415 | |
Total goodwill | $ | 613 | 1,655 | - | 148 | - | - | 2,416 | |
Total assets | $ | 50,438 | 49,282 | 23,015 | 9,182 | -6,244 | - | 125,673 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Nine months ended September 30, 2012 | |||||||||
Net interest income | $ | 1,049 | 1,021 | 234 | 87 | 305 | - | 2,696 | |
Provision for loan and lease losses | 181 | 226 | 140 | 9 | -329 | - | 227 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 868 | 795 | 94 | 78 | 634 | - | 2,469 | ||
Noninterest income: | |||||||||
Mortgage banking net revenue | - | 10 | 577 | 1 | - | - | 588 | ||
Service charges on deposits | 166 | 219 | - | 2 | - | - | 387 | ||
Corporate banking revenue | 286 | 11 | - | 2 | - | - | 299 | ||
Investment advisory revenue | 5 | 96 | - | 275 | - | (95)(a) | 281 | ||
Card and processing revenue | 35 | 202 | - | 3 | -53 | - | 187 | ||
Other noninterest income | 45 | 60 | 30 | 19 | 205 | - | 359 | ||
Securities gains, net | - | - | - | - | 13 | - | 13 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 5 | - | - | - | 5 | ||
Total noninterest income | 537 | 598 | 612 | 302 | 165 | -95 | 2,119 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 166 | 337 | 139 | 103 | 446 | - | 1,191 | ||
Employee benefits | 32 | 98 | 30 | 20 | 94 | - | 274 | ||
Net occupancy expense | 16 | 140 | 6 | 8 | 57 | - | 227 | ||
Technology and communications | 7 | 3 | 1 | - | 133 | - | 144 | ||
Card and processing expense | 3 | 86 | - | - | 1 | - | 90 | ||
Equipment expense | 2 | 40 | 1 | 1 | 38 | - | 82 | ||
Other noninterest expense | 603 | 496 | 319 | 199 | -612 | -95 | 910 | ||
Total noninterest expense | 829 | 1,200 | 496 | 331 | 157 | -95 | 2,918 | ||
Income before income taxes | 576 | 193 | 210 | 49 | 642 | - | 1,670 | ||
Applicable income tax expense | 90 | 68 | 74 | 17 | 242 | - | 491 | ||
Net income | 486 | 125 | 136 | 32 | 400 | - | 1,179 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | 1 | - | 1 | ||
Net income attributable to Bancorp | 486 | 125 | 136 | 32 | 399 | - | 1,178 | ||
Dividends on preferred stock | - | - | - | - | 26 | - | 26 | ||
Net income available to common shareholders | $ | 486 | 125 | 136 | 32 | 373 | - | 1,152 | |
Total goodwill | $ | 613 | 1,656 | - | 148 | - | - | 2,417 | |
Total assets | $ | 47,495 | 48,003 | 23,640 | 8,024 | -9,679 | - | 117,483 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Supplemental Cash Flow | ' | |||
Noncash Investing and Financing Activities | ' | |||
Cash payments related to interest and income taxes in addition to noncash investing and financing activities are presented in the following table for the nine months ended September 30: | ||||
($ in millions) | 2013 | 2012 | ||
Cash payments: | ||||
Interest | $ | 343 | 417 | |
Income taxes | 386 | 262 | ||
Transfers: | ||||
Portfolio loans to loans held for sale | 603 | 29 | ||
Loans held for sale to portfolio loans | 36 | 72 | ||
Portfolio loans to OREO | 167 | 219 | ||
Loans held for sale to OREO | 4 | 23 | ||
Securities_Tables
Securities (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Securities | ' | |||||||||||||
Available-for-Sale and Other and Held-to-Maturity Securities | ' | |||||||||||||
The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and other and held-to-maturity securities portfolios as of: | ||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
September 30, 2013 ($ in millions) | Cost | Gains | Losses | Value | ||||||||||
Available-for-sale and other: | ||||||||||||||
U.S. Treasury and government agencies | $ | 26 | - | - | 26 | |||||||||
U.S. Government sponsored agencies | 1,524 | 129 | - | 1,653 | ||||||||||
Obligations of states and political subdivisions | 201 | 4 | - | 205 | ||||||||||
Agency mortgage-backed securities(a) | 11,149 | 229 | -25 | 11,353 | ||||||||||
Other bonds, notes and debentures | 3,773 | 82 | -16 | 3,839 | ||||||||||
Other securities(b) | 992 | 13 | -1 | 1,004 | ||||||||||
Total | $ | 17,665 | 457 | -42 | 18,080 | |||||||||
Held-to-maturity: | ||||||||||||||
Obligations of states and political subdivisions | $ | 264 | - | - | 264 | |||||||||
Other debt securities | 1 | - | - | 1 | ||||||||||
Total | $ | 265 | - | - | 265 | |||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||
December 31, 2012 ($ in millions) | Cost | Gains | Losses | Value | ||||||||||
Available-for-sale and other: | ||||||||||||||
U.S. Treasury and government agencies | $ | 41 | - | - | 41 | |||||||||
U.S. Government sponsored agencies | 1,730 | 181 | - | 1,911 | ||||||||||
Obligations of states and political subdivisions | 203 | 9 | - | 212 | ||||||||||
Agency mortgage-backed securities(a) | 8,403 | 345 | -18 | 8,730 | ||||||||||
Other bonds, notes and debentures | 3,161 | 119 | -3 | 3,277 | ||||||||||
Other securities(b) | 1,033 | 3 | - | 1,036 | ||||||||||
Total | $ | 14,571 | 657 | -21 | 15,207 | |||||||||
Held-to-maturity: | ||||||||||||||
Obligations of states and political subdivisions | $ | 282 | - | - | 282 | |||||||||
Other debt securities | 2 | - | - | 2 | ||||||||||
Total | $ | 284 | - | - | 284 | |||||||||
Includes interest-only mortgage backed securities of $279 and $408 as of September 30, 2013 and December 31, 2012, respectively, recorded at fair value with fair value changes recorded in securities gains, net and securities gains, net-non-qualifying hedges on mortgage servicing rights in the Condensed Consolidated Statements of Income. | ||||||||||||||
Other securities consist of FHLB and FRB restricted stock holdings of $497 and $349, respectively, at September 30, 2013 and $497 and $347, respectively, at December 31, 2012, that are carried at cost, and certain mutual fund and equity security holdings. | ||||||||||||||
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities | ' | |||||||||||||
The following table presents realized gains and losses that were recognized in income from available-for-sale securities: | ||||||||||||||
For the three months | For the nine months | |||||||||||||
ended September 30, | ended September 30, | |||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Realized gains | $ | 14 | 29 | 54 | 57 | |||||||||
Realized losses | -4 | - | -90 | -2 | ||||||||||
OTTI | -45 | -23 | -57 | -39 | ||||||||||
Net realized (losses) gains(a) | $ | -35 | 6 | -93 | 16 | |||||||||
Excludes net gains on interest-only mortgage-backed securities of $40 for the three months ended September 30, 2013 and net gains on interest-only mortgage backed securities of $121 for the nine months ended September 30, 2013, respectively. | ||||||||||||||
Amortized Cost and Fair Value of Available-for-Sale and Other and Held-to-Maturity Securities | ' | |||||||||||||
The expected maturity distribution of the Bancorp’s agency mortgage-backed securities and the contractual maturity distribution of the Bancorp’s available-for-sale and other and held-to-maturity securities as of September 30, 2013 are shown in the following table: | ||||||||||||||
Available-for-Sale & Other | Held-to-Maturity | |||||||||||||
($ in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||
Debt securities:(a) | ||||||||||||||
Under 1 year | $ | 282 | 291 | 72 | 72 | |||||||||
1-5 years | 4,984 | 5,215 | 174 | 174 | ||||||||||
5-10 years | 7,806 | 7,906 | 18 | 18 | ||||||||||
Over 10 years | 3,601 | 3,664 | 1 | 1 | ||||||||||
Other securities | 992 | 1,004 | - | - | ||||||||||
Total | $ | 17,665 | 18,080 | 265 | 265 | |||||||||
Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations 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 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 | ||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||
($ in millions) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||
30-Sep-13 | ||||||||||||||
Obligations of states and political subdivisions | $ | 31 | - | - | - | 31 | - | |||||||
Agency mortgage-backed securities | 2,276 | -25 | 2 | - | 2,278 | -25 | ||||||||
Other bonds, notes and debentures | 1,048 | -13 | 100 | -3 | 1,148 | -16 | ||||||||
Other securities | 37 | -1 | - | - | 37 | -1 | ||||||||
Total | $ | 3,392 | -39 | 102 | -3 | 3,494 | -42 | |||||||
31-Dec-12 | ||||||||||||||
Agency mortgage-backed securities | $ | 1,784 | -18 | - | - | 1,784 | -18 | |||||||
Other bonds, notes and debentures | 454 | -3 | - | - | 454 | -3 | ||||||||
Other securities | 1 | - | - | - | 1 | - | ||||||||
Total | $ | 2,239 | -21 | - | - | 2,239 | -21 | |||||||
Loans_and_Leases_Tables
Loans and Leases (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Loans And Leases | ' | |||||||||||
Loans and Leases Classified by Primary Purpose | ' | |||||||||||
The following table provides a summary of the total loans and leases classified by primary purpose as of: | ||||||||||||
September 30, | December 31, | |||||||||||
($ in millions) | 2013 | 2012 | ||||||||||
Loans and leases held for sale: | ||||||||||||
Commercial and industrial loans | $ | 7 | 39 | |||||||||
Commercial mortgage loans | 6 | 13 | ||||||||||
Commercial construction loans | 4 | 9 | ||||||||||
Residential mortgage loans | 1,298 | 2,856 | ||||||||||
Other consumer loans and leases | 15 | 22 | ||||||||||
Total loans and leases held for sale | $ | 1,330 | 2,939 | |||||||||
Portfolio loans and leases: | ||||||||||||
Commercial and industrial loans | $ | 38,253 | 36,038 | |||||||||
Commercial mortgage loans | 8,052 | 9,103 | ||||||||||
Commercial construction loans | 875 | 698 | ||||||||||
Commercial leases | 3,572 | 3,549 | ||||||||||
Total commercial loans and leases | 50,752 | 49,388 | ||||||||||
Residential mortgage loans | 12,534 | 12,017 | ||||||||||
Home equity | 9,356 | 10,018 | ||||||||||
Automobile loans | 12,072 | 11,972 | ||||||||||
Credit card | 2,157 | 2,097 | ||||||||||
Other consumer loans and leases | 360 | 290 | ||||||||||
Total consumer loans and leases | 36,479 | 36,394 | ||||||||||
Total portfolio loans and leases | $ | 87,231 | 85,782 | |||||||||
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: | ||||||||||||
90 Days Past Due | ||||||||||||
Balance | and Still Accruing | |||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||
Commercial and industrial loans | $ | 38,260 | 36,077 | $ | 3 | 1 | ||||||
Commercial mortgage loans | 8,058 | 9,116 | - | 22 | ||||||||
Commercial construction loans | 879 | 707 | - | 1 | ||||||||
Commercial leases | 3,572 | 3,549 | - | - | ||||||||
Residential mortgage loans | 13,832 | 14,873 | 73 | 75 | ||||||||
Home equity | 9,356 | 10,018 | 46 | 58 | ||||||||
Automobile loans | 12,072 | 11,972 | 8 | 8 | ||||||||
Credit card | 2,157 | 2,097 | 26 | 30 | ||||||||
Other consumer loans and leases | 375 | 312 | - | - | ||||||||
Total loans and leases | $ | 88,561 | 88,721 | $ | 156 | 195 | ||||||
Less: Loans held for sale | $ | 1,330 | 2,939 | |||||||||
Total portfolio loans and leases | $ | 87,231 | 85,782 | |||||||||
The following table presents a summary of net charge-offs: | ||||||||||||
For the nine months | ||||||||||||
ended September 30, | ||||||||||||
($ in millions) | 2013 | 2012 | ||||||||||
Commercial and industrial loans | $ | 102 | 129 | |||||||||
Commercial mortgage loans | 39 | 83 | ||||||||||
Commercial construction loans | 1 | 22 | ||||||||||
Commercial leases | 1 | 8 | ||||||||||
Residential mortgage loans | 47 | 99 | ||||||||||
Home equity | 71 | 122 | ||||||||||
Automobile loans | 15 | 23 | ||||||||||
Credit card | 57 | 56 | ||||||||||
Other consumer loans and leases | 20 | 15 | ||||||||||
Total | $ | 353 | 557 |
Credit_Quality_and_the_Allowan1
Credit Quality and the Allowance for Loan and Lease Losses (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Credit Quality and the Allowance for Loan and Leases Losses | ' | ||||||||||||||
Summary of Transactions in the ALLL | ' | ||||||||||||||
The following tables summarize transactions in the ALLL by portfolio segment: | |||||||||||||||
For the three months ended September 30, 2013 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,183 | 201 | 247 | 104 | 1,735 | |||||||||
Losses charged off | -61 | -15 | -65 | - | -141 | ||||||||||
Recoveries of losses previously charged off | 17 | 3 | 12 | - | 32 | ||||||||||
Provision for loan and lease losses | 8 | 5 | 41 | -3 | 51 | ||||||||||
Balance, end of period | $ | 1,147 | 194 | 235 | 101 | 1,677 | |||||||||
For the three months ended September 30, 2012 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,347 | 232 | 316 | 121 | 2,016 | |||||||||
Losses charged off | -76 | -28 | -84 | - | -188 | ||||||||||
Recoveries of losses previously charged off | 14 | 2 | 16 | - | 32 | ||||||||||
Provision for loan and lease losses | 2 | 26 | 42 | -5 | 65 | ||||||||||
Balance, end of period | $ | 1,287 | 232 | 290 | 116 | 1,925 | |||||||||
For the nine months ended September 30, 2013 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,236 | 229 | 278 | 111 | 1,854 | |||||||||
Losses charged off | -189 | -55 | -210 | - | -454 | ||||||||||
Recoveries of losses previously charged off | 46 | 8 | 47 | - | 101 | ||||||||||
Provision for loan and lease losses | 54 | 12 | 120 | -10 | 176 | ||||||||||
Balance, end of period | $ | 1,147 | 194 | 235 | 101 | 1,677 | |||||||||
For the nine months ended September 30, 2012 | Residential | ||||||||||||||
($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
Transactions in the ALLL: | |||||||||||||||
Balance, beginning of period | $ | 1,527 | 227 | 365 | 136 | 2,255 | |||||||||
Losses charged off | -289 | -104 | -267 | - | -660 | ||||||||||
Recoveries of losses previously charged off | 47 | 5 | 51 | - | 103 | ||||||||||
Provision for loan and lease losses | 2 | 104 | 141 | -20 | 227 | ||||||||||
Balance, end of period | $ | 1,287 | 232 | 290 | 116 | 1,925 | |||||||||
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: | |||||||||||||||
Residential | |||||||||||||||
As of September 30, 2013 ($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
ALLL:(a) | |||||||||||||||
Individually evaluated for impairment | $ | 164 | (c) | 135 | 54 | - | 353 | ||||||||
Collectively evaluated for impairment | 983 | 59 | 181 | - | 1,223 | ||||||||||
Loans acquired with deteriorated credit quality | - | - | - | - | - | ||||||||||
Unallocated | - | - | - | 101 | 101 | ||||||||||
Total ALLL | $ | 1,147 | 194 | 235 | 101 | 1,677 | |||||||||
Loans and leases:(b) | |||||||||||||||
Individually evaluated for impairment | $ | 1,396 | (c) | 1,316 | 516 | - | 3,228 | ||||||||
Collectively evaluated for impairment | 49,356 | 11,124 | 23,429 | - | 83,909 | ||||||||||
Loans acquired with deteriorated credit quality | - | 5 | - | - | 5 | ||||||||||
Total portfolio loans and leases | $ | 50,752 | 12,445 | 23,945 | - | 87,142 | |||||||||
Includes $10 related to leveraged leases. | |||||||||||||||
Excludes $89 of residential mortgage loans measured at fair value, and includes $875 of leveraged leases, net of unearned income. | |||||||||||||||
Includes five restructured nonaccrual loans at September 30, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $29 and an allowance of $11. | |||||||||||||||
Residential | |||||||||||||||
As of December 31, 2012 ($ in millions) | Commercial | Mortgage | Consumer | Unallocated | Total | ||||||||||
ALLL:(a) | |||||||||||||||
Individually evaluated for impairment | $ | 95 | 137 | 62 | - | 294 | |||||||||
Collectively evaluated for impairment | 1,140 | 91 | 216 | - | 1,447 | ||||||||||
Loans acquired with deteriorated credit quality | 1 | 1 | - | - | 2 | ||||||||||
Unallocated | - | - | - | 111 | 111 | ||||||||||
Total ALLL | $ | 1,236 | 229 | 278 | 111 | 1,854 | |||||||||
Loans and leases:(b) | |||||||||||||||
Individually evaluated for impairment | $ | 980 | 1,298 | 544 | - | 2,822 | |||||||||
Collectively evaluated for impairment | 48,407 | 10,637 | 23,833 | - | 82,877 | ||||||||||
Loans acquired with deteriorated credit quality | 1 | 6 | - | - | 7 | ||||||||||
Total portfolio loans and leases | $ | 49,388 | 11,941 | 24,377 | - | 85,706 | |||||||||
Includes $11 related to leveraged leases. | |||||||||||||||
Excludes $76 of residential mortgage loans measured at fair value, and includes $862 of leveraged leases, net of unearned income. | |||||||||||||||
Loan and leases balances by credit quality indicator | ' | ||||||||||||||
The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class: | |||||||||||||||
Special | |||||||||||||||
As of September 30, 2013 ($ in millions) | Pass | Mention | Substandard | Doubtful | Total | ||||||||||
Commercial and industrial loans | $ | 35,499 | 903 | 1,828 | 23 | 38,253 | |||||||||
Commercial mortgage owner occupied loans | 3,889 | 214 | 469 | - | 4,572 | ||||||||||
Commercial mortgage non-owner occupied loans | 2,693 | 268 | 519 | - | 3,480 | ||||||||||
Commercial construction loans | 678 | 35 | 162 | - | 875 | ||||||||||
Commercial leases | 3,480 | 50 | 42 | - | 3,572 | ||||||||||
Total | $ | 46,239 | 1,470 | 3,020 | 23 | 50,752 | |||||||||
Special | |||||||||||||||
As of December 31, 2012 ($ in millions) | Pass | Mention | Substandard | Doubtful | Total | ||||||||||
Commercial and industrial loans | $ | 33,521 | 1,113 | 1,379 | 25 | 36,038 | |||||||||
Commercial mortgage owner occupied loans | 3,934 | 338 | 603 | 1 | 4,876 | ||||||||||
Commercial mortgage non-owner occupied loans | 2,958 | 449 | 815 | 5 | 4,227 | ||||||||||
Commercial construction loans | 444 | 59 | 195 | - | 698 | ||||||||||
Commercial leases | 3,483 | 48 | 18 | - | 3,549 | ||||||||||
Total | $ | 44,340 | 2,007 | 3,010 | 31 | 49,388 | |||||||||
The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments disaggregated into performing versus nonperforming status as of: | |||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||
($ in millions) | Performing | Nonperforming | Performing | Nonperforming | |||||||||||
Residential mortgage loans(a) | $ | 12,279 | 166 | 11,704 | 237 | ||||||||||
Home equity | 9,308 | 48 | 9,965 | 53 | |||||||||||
Automobile loans | 12,071 | 1 | 11,970 | 2 | |||||||||||
Credit card | 2,123 | 34 | 2,058 | 39 | |||||||||||
Other consumer loans and leases | 360 | - | 289 | 1 | |||||||||||
Total | $ | 36,141 | 249 | 35,986 | 332 | ||||||||||
Excludes $89 and $76 of loans measured at fair value at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||
Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases | ' | ||||||||||||||
Age Analysis of Past Due Loans and Leases | |||||||||||||||
The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases by age and class: | |||||||||||||||
Past Due | |||||||||||||||
Current | 90 Days | 90 Days Past | |||||||||||||
As of September 30, 2013 | Loans and | 30-89 | and | Total | Total Loans | Due and Still | |||||||||
($ in millions) | Leases(c) | Days(c) | Greater(c) | Past Due | and Leases | Accruing | |||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 38,083 | 36 | 134 | 170 | 38,253 | 3 | ||||||||
Commercial mortgage owner occupied loans | 4,492 | 8 | 72 | 80 | 4,572 | - | |||||||||
Commercial mortgage non-owner occupied loans | 3,423 | 11 | 46 | 57 | 3,480 | - | |||||||||
Commercial construction loans | 844 | - | 31 | 31 | 875 | - | |||||||||
Commercial leases | 3,571 | - | 1 | 1 | 3,572 | - | |||||||||
Residential mortgage loans(a) (b) | 12,142 | 69 | 234 | 303 | 12,445 | 73 | |||||||||
Consumer: | |||||||||||||||
Home equity | 9,166 | 96 | 94 | 190 | 9,356 | 46 | |||||||||
Automobile loans | 12,016 | 47 | 9 | 56 | 12,072 | 8 | |||||||||
Credit card | 2,092 | 35 | 30 | 65 | 2,157 | 26 | |||||||||
Other consumer loans and leases | 358 | 2 | - | 2 | 360 | - | |||||||||
Total portfolio loans and leases(a) | $ | 86,187 | 304 | 651 | 955 | 87,142 | 156 | ||||||||
Excludes $89 of loans measured at fair value. | |||||||||||||||
Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of September 30, 2013, $83 of these loans were 30-89 days past due and $379 were 90 days or more past due. The Bancorp recognized $1 and $2 of losses during the three and nine months ended September 30, 2013, respectively, due to claim denials and curtailments associated with these advances. | |||||||||||||||
Includes accrual and nonaccrual loans and leases. | |||||||||||||||
Past Due | |||||||||||||||
Current | 90 Days | 90 Days Past | |||||||||||||
As of December 31, 2012 | Loans and | 30-89 | and | Total | Total Loans | Due and Still | |||||||||
($ in millions) | Leases(c) | Days(c) | Greater(c) | Past Due | and Leases | Accruing | |||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 35,826 | 46 | 166 | 212 | 36,038 | 1 | ||||||||
Commercial mortgage owner occupied loans | 4,752 | 29 | 95 | 124 | 4,876 | 22 | |||||||||
Commercial mortgage non-owner occupied loans | 4,094 | 21 | 112 | 133 | 4,227 | - | |||||||||
Commercial construction loans | 622 | - | 76 | 76 | 698 | 1 | |||||||||
Commercial leases | 3,546 | 2 | 1 | 3 | 3,549 | - | |||||||||
Residential mortgage loans(a) (b) | 11,547 | 87 | 307 | 394 | 11,941 | 75 | |||||||||
Consumer: | |||||||||||||||
Home equity | 9,782 | 126 | 110 | 236 | 10,018 | 58 | |||||||||
Automobile loans | 11,900 | 62 | 10 | 72 | 11,972 | 8 | |||||||||
Credit card | 2,025 | 38 | 34 | 72 | 2,097 | 30 | |||||||||
Other consumer loans and leases | 287 | 2 | 1 | 3 | 290 | - | |||||||||
Total portfolio loans and leases(a) (d) | $ | 84,381 | 413 | 912 | 1,325 | 85,706 | 195 | ||||||||
Excludes $76 of loans measured at fair value. | |||||||||||||||
Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2012, $80 of these loans were 30-89 days past due and $414 were 90 days or more past due. The Bancorp recognized $2 of losses for the year ended December 31, 2012 due to claim denials and curtailments associated with these advances. | |||||||||||||||
Includes accrual and nonaccrual loans and leases. | |||||||||||||||
Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | |||||||||||||||
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class | ' | ||||||||||||||
The following tables summarize the Bancorp’s impaired loans and leases (by class) that were subject to individual review, which includes all loans and leases restructured in a troubled debt restructuring: | |||||||||||||||
Unpaid | |||||||||||||||
As of September 30, 2013 | Principal | Recorded | |||||||||||||
($ in millions) | Balance | Investment | Allowance | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 675 | 578 | 122 | |||||||||||
Commercial mortgage owner occupied loans(b) | 71 | 59 | 11 | ||||||||||||
Commercial mortgage non-owner occupied loans | 117 | 86 | 13 | ||||||||||||
Commercial construction loans | 59 | 47 | 7 | ||||||||||||
Commercial leases | 1 | 1 | - | ||||||||||||
Restructured residential mortgage loans | 1,079 | 1,047 | 135 | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 390 | 386 | 41 | ||||||||||||
Automobile loans | 24 | 24 | 3 | ||||||||||||
Credit card | 63 | 63 | 10 | ||||||||||||
Other consumer loans and leases | 2 | 2 | - | ||||||||||||
Total impaired loans and leases with a related allowance | $ | 2,481 | 2,293 | 342 | |||||||||||
With no related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 261 | 207 | - | |||||||||||
Commercial mortgage owner occupied loans | 107 | 97 | - | ||||||||||||
Commercial mortgage non-owner occupied loans | 268 | 243 | - | ||||||||||||
Commercial construction loans | 74 | 46 | - | ||||||||||||
Commercial leases | 3 | 3 | - | ||||||||||||
Restructured residential mortgage loans | 311 | 269 | - | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 42 | 38 | - | ||||||||||||
Automobile loans | 3 | 3 | - | ||||||||||||
Total impaired loans and leases with no related allowance | 1,069 | 906 | - | ||||||||||||
Total impaired loans and leases | $ | 3,550 | 3,199 | (a) | 342 | ||||||||||
Includes $499, $1,233 and $461, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $241, $83 and $55, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||||||||||||
Excludes five restructured nonaccrual loans at September 30, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $29, a recorded investment of $29, and an allowance of $11. | |||||||||||||||
Unpaid | |||||||||||||||
As of December 31, 2012 | Principal | Recorded | |||||||||||||
($ in millions) | Balance | Investment | Allowance | ||||||||||||
With a related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 263 | 194 | 65 | |||||||||||
Commercial mortgage owner occupied loans | 54 | 43 | 5 | ||||||||||||
Commercial mortgage non-owner occupied loans | 215 | 160 | 16 | ||||||||||||
Commercial construction loans | 48 | 37 | 5 | ||||||||||||
Commercial leases | 8 | 8 | 5 | ||||||||||||
Restructured residential mortgage loans | 1,067 | 1,023 | 137 | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 400 | 396 | 46 | ||||||||||||
Automobile loans | 31 | 30 | 4 | ||||||||||||
Credit card | 74 | 74 | 12 | ||||||||||||
Other consumer loans and leases | 2 | 2 | - | ||||||||||||
Total impaired loans and leases with a related allowance | $ | 2,162 | 1,967 | 295 | |||||||||||
With no related allowance recorded: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 207 | 169 | - | |||||||||||
Commercial mortgage owner occupied loans | 107 | 99 | - | ||||||||||||
Commercial mortgage non-owner occupied loans | 209 | 199 | - | ||||||||||||
Commercial construction loans | 109 | 67 | - | ||||||||||||
Commercial leases | 5 | 5 | - | ||||||||||||
Restructured residential mortgage loans | 326 | 275 | - | ||||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 40 | 39 | - | ||||||||||||
Automobile loans | 3 | 3 | - | ||||||||||||
Total impaired loans and leases with no related allowance | 1,006 | 856 | - | ||||||||||||
Total impaired loans and leases | $ | 3,168 | 2,823 | (a) | 295 | ||||||||||
Includes $431, $1,175 and $480, respectively, of commercial, residential mortgage and consumer TDRs on accrual status;$177, $123 and $64, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||||||||||||||
The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class: | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
30-Sep-13 | 30-Sep-13 | ||||||||||||||
Average | Interest | Average | Interest | ||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||
($ in millions) | Investment | Recognized | Investment | Recognized | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 553 | 7 | $ | 403 | 11 | |||||||||
Commercial mortgage owner occupied loans(a) | 145 | 1 | 140 | 3 | |||||||||||
Commercial mortgage non-owner occupied loans | 322 | 2 | 326 | 6 | |||||||||||
Commercial construction loans | 103 | 1 | 109 | 3 | |||||||||||
Commercial leases | 8 | - | 10 | - | |||||||||||
Restructured residential mortgage loans | 1,311 | 13 | 1,308 | 39 | |||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 426 | 6 | 433 | 17 | |||||||||||
Automobile loans | 27 | 1 | 29 | 1 | |||||||||||
Credit card | 66 | 1 | 69 | 3 | |||||||||||
Other consumer loans and leases | 2 | - | 2 | - | |||||||||||
Total impaired loans and leases | $ | 2,963 | 32 | $ | 2,829 | 83 | |||||||||
Excludes five restructured nonaccrual loans, associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $29 and $30 and an immaterial amount of interest income recognized for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
30-Sep-12 | 30-Sep-12 | ||||||||||||||
Average | Interest | Average | Interest | ||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||
($ in millions) | Investment | Recognized | Investment | Recognized | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 439 | 1 | $ | 467 | 3 | |||||||||
Commercial mortgage owner occupied loans | 168 | 1 | 157 | 3 | |||||||||||
Commercial mortgage non-owner occupied loans | 387 | 3 | 356 | 7 | |||||||||||
Commercial construction loans | 149 | - | 176 | 2 | |||||||||||
Commercial leases | 10 | - | 10 | - | |||||||||||
Restructured residential mortgage loans | 1,276 | 13 | 1,269 | 38 | |||||||||||
Restructured consumer: | |||||||||||||||
Home equity | 438 | 19 | 440 | 37 | |||||||||||
Automobile loans | 37 | 1 | 39 | 2 | |||||||||||
Credit card | 78 | 1 | 81 | 3 | |||||||||||
Other consumer loans and leases | 2 | - | 2 | - | |||||||||||
Total impaired loans and leases | $ | 2,984 | 39 | $ | 2,997 | 95 | |||||||||
Summary of the Bancorp's Nonperforming Loans and Leases by Class | ' | ||||||||||||||
Nonperforming Assets | |||||||||||||||
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table summarizes the Bancorp’s nonperforming loans and leases, by class, as of: | |||||||||||||||
September 30, | December 31, | ||||||||||||||
($ in millions) | 2013 | 2012 | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | $ | 308 | 330 | ||||||||||||
Commercial mortgage owner occupied loans(a) | 112 | 125 | |||||||||||||
Commercial mortgage non-owner occupied loans | 70 | 157 | |||||||||||||
Commercial construction loans | 30 | 76 | |||||||||||||
Commercial leases | 1 | 9 | |||||||||||||
Total commercial loans and leases | 521 | 697 | |||||||||||||
Residential mortgage loans | 166 | 237 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 48 | 53 | |||||||||||||
Automobile loans | 1 | 2 | |||||||||||||
Credit card | 34 | 39 | |||||||||||||
Other consumer loans and leases | - | 1 | |||||||||||||
Total consumer loans and leases | 83 | 95 | |||||||||||||
Total nonperforming loans and leases(b) (c) | $ | 770 | 1,029 | ||||||||||||
OREO and other repossessed property(d) | 244 | 257 | |||||||||||||
Summary of Loans Modified in a TDR | ' | ||||||||||||||
The following table provides a summary of loans modified in a TDR by the Bancorp during the three months ended: | |||||||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
September 30, 2013 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 56 | $ | 79 | -13 | - | ||||||||||
Commercial mortgage owner occupied loans(c) | 32 | 7 | - | - | |||||||||||
Commercial mortgage non-owner occupied loans | 16 | 11 | -2 | - | |||||||||||
Commercial construction loans | 1 | 9 | - | - | |||||||||||
Residential mortgage loans | 452 | 65 | 8 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 117 | 6 | - | - | |||||||||||
Automobile loans | 115 | 2 | - | - | |||||||||||
Credit card | 1,950 | 12 | 2 | - | |||||||||||
Total portfolio loans and leases | 2,739 | $ | 191 | -5 | - | ||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
September 30, 2012 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 20 | $ | 20 | - | 5 | ||||||||||
Commercial mortgage owner occupied loans | 16 | 29 | -3 | 2 | |||||||||||
Commercial mortgage non-owner occupied loans | 12 | 11 | -3 | - | |||||||||||
Commercial construction loans | 3 | - | - | - | |||||||||||
Commercial leases | 6 | 3 | - | - | |||||||||||
Residential mortgage loans | 505 | 90 | 7 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 364 | 21 | 1 | - | |||||||||||
Automobile loans | 213 | 3 | - | - | |||||||||||
Credit card | 2,231 | 13 | 2 | - | |||||||||||
Total portfolio loans and leases | 3,370 | $ | 190 | 4 | 7 | ||||||||||
The following table provides a summary of loans modified in a TDR by the Bancorp during the nine months ended: | |||||||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
September 30, 2013 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 119 | $ | 201 | -13 | 1 | ||||||||||
Commercial mortgage owner-occupied loans(c) | 56 | 16 | -1 | - | |||||||||||
Commercial mortgage nonowner-occupied loans | 50 | 65 | -7 | - | |||||||||||
Commercial construction loans | 3 | 16 | -1 | - | |||||||||||
Residential mortgage loans | 1,266 | 194 | 24 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 621 | 33 | - | - | |||||||||||
Automobile loans | 363 | 11 | 1 | - | |||||||||||
Credit card | 6,442 | 39 | 5 | - | |||||||||||
Total portfolio loans and leases | 8,920 | $ | 575 | 8 | 1 | ||||||||||
Recorded investment | Increase | ||||||||||||||
Number of loans | in loans modified | (Decrease) | Charge-offs | ||||||||||||
modified in a TDR | in a TDR | to ALLL upon | recognized upon | ||||||||||||
September 30, 2012 ($ in millions)(a) | during the period(b) | during the period | modification | modification | |||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 61 | $ | 45 | -10 | 5 | ||||||||||
Commercial mortgage owner-occupied loans | 52 | 45 | -6 | 2 | |||||||||||
Commercial mortgage nonowner-occupied loans | 52 | 78 | -8 | - | |||||||||||
Commercial construction loans | 14 | 36 | -4 | - | |||||||||||
Commercial leases | 6 | 3 | - | - | |||||||||||
Residential mortgage loans | 1,542 | 259 | 22 | - | |||||||||||
Consumer: | |||||||||||||||
Home equity | 1,034 | 63 | 3 | - | |||||||||||
Automobile loans | 774 | 12 | 2 | - | |||||||||||
Credit card | 7,963 | 51 | 7 | - | |||||||||||
Total portfolio loans and leases | 11,498 | $ | 592 | 6 | 7 | ||||||||||
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||
Represents number of loans post-modification. | |||||||||||||||
Excludes five loans modified in a TDR during the nine months ended September 30, 2013 associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR has a recorded investment of $29, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon modification | |||||||||||||||
Summary of Subsequent Defaults | ' | ||||||||||||||
The following table provides a summary of subsequent defaults of TDRs that occurred during the three months ended September 30, 2013 and 2012 and within 12 months of the restructuring date: | |||||||||||||||
Number of | Recorded | ||||||||||||||
September 30, 2013 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 1 | $ | 5 | ||||||||||||
Commercial mortgage owner-occupied loans | 2 | - | |||||||||||||
Residential mortgage loans | 78 | 11 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 21 | 1 | |||||||||||||
Credit card | 380 | 2 | |||||||||||||
Total portfolio loans and leases | 482 | $ | 19 | ||||||||||||
Number of | Recorded | ||||||||||||||
September 30, 2012 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial mortgage owner-occupied loans | 1 | $ | 1 | ||||||||||||
Residential mortgage loans | 98 | 16 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 19 | 2 | |||||||||||||
Automobile loans | 15 | - | |||||||||||||
Credit card | 376 | 3 | |||||||||||||
Total portfolio loans and leases | 509 | $ | 22 | ||||||||||||
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||
The following table provides a summary of subsequent defaults that occurred during the nine months ended September 30, 2013 and 2012 and within 12 months of the restructuring date: | |||||||||||||||
Number of | Recorded | ||||||||||||||
September 30, 2013 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial loans | 3 | $ | 6 | ||||||||||||
Commercial mortgage owner-occupied loans | 6 | 1 | |||||||||||||
Residential mortgage loans | 304 | 47 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 55 | 3 | |||||||||||||
Automobile loans | 3 | - | |||||||||||||
Credit card | 1,306 | 8 | |||||||||||||
Total portfolio loans and leases | 1,677 | $ | 65 | ||||||||||||
Number of | Recorded | ||||||||||||||
September 30, 2012 ($ in millions)(a) | Contracts | Investment | |||||||||||||
Commercial: | |||||||||||||||
Commercial mortgage owner-occupied loans | 3 | $ | 2 | ||||||||||||
Commercial mortgage nonowner-occupied loans | 2 | 1 | |||||||||||||
Commercial construction loans | 2 | 3 | |||||||||||||
Residential mortgage loans | 224 | 41 | |||||||||||||
Consumer: | |||||||||||||||
Home equity | 67 | 5 | |||||||||||||
Automobile loans | 36 | - | |||||||||||||
Credit card | 1,385 | 10 | |||||||||||||
Total portfolio loans and leases | 1,719 | $ | 62 | ||||||||||||
Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Intangible Assets | ' | ||||||
Changes in the Net Carrying Amount of Goodwill by Reporting Segment | ' | ||||||
Changes in the net carrying amount of goodwill, by reporting unit, for the nine months ended September 30, 2013 and 2012 were as follows: | |||||||
Commercial | Branch | Consumer | Investment | ||||
($ in millions) | Banking | Banking | Lending | Advisors | Total | ||
Net carrying value as of December 31, 2012 | $ | 613 | 1,655 | - | 148 | 2,416 | |
Acquisition activity | - | - | - | - | - | ||
Net carrying value as of September 30, 2013 | $ | 613 | 1,655 | - | 148 | 2,416 | |
Net carrying value as of December 31, 2011 | 613 | 1,656 | - | 148 | 2,417 | ||
Acquisition activity | - | - | - | - | - | ||
Net carrying value as of September 30, 2012 | $ | 613 | 1,656 | - | 148 | 2,417 | |
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Intangible Assets | ' | ||||||||||
Intangible Assets | ' | ||||||||||
The details of the Bancorp’s intangible assets are shown in the following table: | |||||||||||
Gross Carrying | Accumulated | Valuation | Net Carrying | ||||||||
($ in millions) | Amount | Amortization | Allowance | Amount | |||||||
As of September 30, 2013 | |||||||||||
Mortgage servicing rights | $ | 3,036 | -1,610 | -511 | 915 | ||||||
Automobile servicing rights | 6 | -2 | - | 4 | |||||||
Core deposit intangibles | 154 | -139 | - | 15 | |||||||
Other | 45 | -39 | - | 6 | |||||||
Total intangible assets | $ | 3,241 | -1,790 | -511 | 940 | ||||||
As of December 31, 2012 | |||||||||||
Mortgage servicing rights | $ | 2,825 | -1,467 | -661 | 697 | ||||||
Core deposit intangibles | 180 | -160 | - | 20 | |||||||
Other | 44 | -37 | - | 7 | |||||||
Total intangible assets | $ | 3,049 | -1,664 | -661 | 724 | ||||||
Estimated Amortization Expense | ' | ||||||||||
The Bancorp's projections of amortization expense shown below are based on existing asset balances as of September 30, 2013. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2013 through 2017 is as follows: | |||||||||||
Servicing | Other | ||||||||||
($ in millions) | Rights | Intangible Assets | Total | ||||||||
Remainder of 2013 | $ | 29 | 2 | 31 | |||||||
2014 | 110 | 5 | 115 | ||||||||
2015 | 101 | 2 | 103 | ||||||||
2016 | 92 | 2 | 94 | ||||||||
2017 | 85 | 2 | 87 |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Variable Interest Entities | ' | |||||||
Consolidation of Variable Interest Entities Disclosure | ' | |||||||
The following table provides a summary of the classifications of consolidated VIE assets, liabilities and noncontrolling interests included in the Bancorp’s Condensed Consolidated Balance Sheets as of: | ||||||||
Automobile Loan | CDC | |||||||
September 30, 2013 ($ in millions) | Securitization | Investments | Total | |||||
Assets: | ||||||||
Cash and due from banks | $ | 53 | - | 53 | ||||
Commercial mortgage loans | - | 50 | 50 | |||||
Automobile loans(a) | 1,145 | - | 1,145 | |||||
ALLL | -3 | -13 | -16 | |||||
Other assets | 10 | 2 | 12 | |||||
Total assets | 1,205 | 39 | 1,244 | |||||
Liabilities: | ||||||||
Other liabilities | $ | 2 | - | 2 | ||||
Long-term debt | 1,198 | - | 1,198 | |||||
Total liabilities | $ | 1,200 | - | 1,200 | ||||
Noncontrolling interests | - | 39 | 39 | |||||
Net of $56 of unamortized fees and discounts. | ||||||||
CDC | ||||||||
December 31, 2012 ($ in millions) | Investments | Total | ||||||
Assets: | ||||||||
Commercial mortgage loans | $ | 50 | 50 | |||||
ALLL | -5 | -5 | ||||||
Other assets | 3 | 3 | ||||||
Total assets | 48 | 48 | ||||||
Noncontrolling interests | 48 | 48 | ||||||
Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses | ' | |||||||
Non-consolidated VIEs | ||||||||
The following tables provide a summary of assets and liabilities carried on the Bancorp’s 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: | ||||||||
Total | Total | Maximum | ||||||
As of September 30, 2013 ($ in millions) | Assets | Liabilities | Exposure | |||||
CDC investments | $ | 1,420 | 421 | 1,420 | ||||
Private equity investments | 207 | - | 303 | |||||
Loans provided to VIEs | 1,837 | - | 3,783 | |||||
Automobile loan securitization | 4 | - | 4 | |||||
Restructured loans | 1 | - | 1 | |||||
Total | Total | Maximum | ||||||
As of December 31, 2012 ($ in millions) | Assets | Liabilities | Exposure | |||||
CDC investments | $ | 1,442 | 394 | 1,442 | ||||
Private equity investments | 189 | - | 310 | |||||
Loans provided to VIEs | 1,622 | - | 2,465 | |||||
Restructured loans | 2 | - | 2 | |||||
Sales_of_Receivables_and_Servi1
Sales of Receivables and Servicing Rights (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Sales of Receivables and Servicing Rights | ' | |||||||||||||||||||||||
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 | For the nine months | |||||||||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Residential mortgage loan sales | $ | 5,105 | 5,002 | $ | 19,115 | 16,650 | ||||||||||||||||||
Origination fees and gains on loan sales | 74 | 226 | 393 | 583 | ||||||||||||||||||||
Servicing fees | 63 | 62 | 187 | 186 | ||||||||||||||||||||
Changes in the Servicing Assets | ' | |||||||||||||||||||||||
Servicing Assets | ||||||||||||||||||||||||
The following table presents changes in the servicing assets related to residential mortgage and automobile loans for the nine months ended September 30: | ||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | ||||||||||||||||||||||
Carrying amount before valuation allowance as of the beginning of the period | $ | 1,358 | 1,239 | |||||||||||||||||||||
Servicing rights that result from the transfer of residential mortgage loans | 211 | 254 | ||||||||||||||||||||||
Servicing rights that result from the transfer of automobile loans | 6 | - | ||||||||||||||||||||||
Amortization | -145 | -134 | ||||||||||||||||||||||
Carrying amount before valuation allowance | 1,430 | 1,359 | ||||||||||||||||||||||
Valuation allowance for servicing assets: | ||||||||||||||||||||||||
Beginning balance | -661 | -558 | ||||||||||||||||||||||
Recovery of (provision for) MSR impairment | 150 | -122 | ||||||||||||||||||||||
Ending balance | -511 | -680 | ||||||||||||||||||||||
Carrying amount as of the end of the period | $ | 919 | 679 | |||||||||||||||||||||
Fair Value of the Servicing Assets | ' | |||||||||||||||||||||||
The following table displays the beginning and ending fair value of the servicing assets for the nine months ended September 30: | ||||||||||||||||||||||||
($ in millions) | 2013 | 2012 | ||||||||||||||||||||||
Fixed rate residential mortgage loans: | ||||||||||||||||||||||||
Beginning balance | $ | 664 | 649 | |||||||||||||||||||||
Ending balance | 876 | 645 | ||||||||||||||||||||||
Adjustable rate residential mortgage loans: | ||||||||||||||||||||||||
Beginning balance | 33 | 32 | ||||||||||||||||||||||
Ending balance | 39 | 34 | ||||||||||||||||||||||
Fixed rate automobile loans: | ||||||||||||||||||||||||
Beginning balance | - | - | ||||||||||||||||||||||
Ending balance | 4 | - | ||||||||||||||||||||||
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, which is included in the Condensed Consolidated Statements of Income: | ||||||||||||||||||||||||
For the three months | For the nine months | |||||||||||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Securities gains, net - non-qualifying hedges on MSRs | $ | 5 | 5 | 13 | 5 | |||||||||||||||||||
Changes in fair value and settlement of free-standing derivatives purchased | ||||||||||||||||||||||||
to economically hedge the MSR portfolio (Mortgage banking net revenue) | 24 | 32 | -13 | 75 | ||||||||||||||||||||
(Provision for) recovery of MSR impairment (Mortgage banking net revenue) | -1 | -72 | 150 | -122 | ||||||||||||||||||||
Servicing Assets and Residual Interests Economic Assumptions | ' | |||||||||||||||||||||||
As of September 30, 2013 and 2012, the key economic assumptions used in measuring the interests in residential mortgage loans that continued to be held by the Bancorp at the date of sale or securitization resulting from transactions completed during the three months ended: | ||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||
Rate | Weighted-Average Life (in years) | Prepayment Speed (annual) | Discount Rate (annual) | Weighted-Average Default rate | Weighted-Average Life (in years) | Prepayment Speed (annual) | Discount Rate (annual) | Weighted-Average Default rate | ||||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||
Servicing assets | Fixed | 7.7 | 8.5 | % | 10.2 | % | N/A | 6.3 | 11 | % | 10.3 | % | N/A | |||||||||||
Servicing assets | Adjustable | 3.7 | 22.4 | 11.5 | N/A | 3.8 | 21.7 | 11.4 | N/A | |||||||||||||||
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions | ' | |||||||||||||||||||||||
At September 30, 2013, 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 other assumptions are as follows: | ||||||||||||||||||||||||
Prepayment | Residual Servicing | |||||||||||||||||||||||
Speed Assumption | Cash Flows | |||||||||||||||||||||||
Fair | Weighted-Average Life (in | Impact of Adverse Change on Fair Value | Discount | Impact of Adverse Change on Fair Value | ||||||||||||||||||||
($ in millions)(a) | Rate | Value | years) | Rate | 10% | 20% | 50% | Rate | 10% | 20% | ||||||||||||||
Residential mortgage loans: | ||||||||||||||||||||||||
Servicing assets | Fixed | $ | 876 | 6.4 | 11.4 | % | $ | -36 | -70 | -158 | 10.4 | % | $ | -34 | -65 | |||||||||
Servicing assets | Adjustable | 39 | 3.2 | 25.7 | -2 | -3 | -7 | 11.6 | -1 | -2 | ||||||||||||||
The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial. | ||||||||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets | ' | ||||||||||||
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 | |||||||||||||
Notional | Derivative | Derivative | |||||||||||
September 30, 2013 ($ in millions) | Amount | Assets | Liabilities | ||||||||||
Qualifying hedging instruments | |||||||||||||
Fair value hedges: | |||||||||||||
Interest rate swaps related to long-term debt | $ | 3,205 | 345 | 11 | |||||||||
Total fair value hedges | 345 | 11 | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate swaps related to C&I loans | 1,000 | 45 | - | ||||||||||
Total cash flow hedges | 45 | - | |||||||||||
Total derivatives designated as qualifying hedging instruments | 390 | 11 | |||||||||||
Derivatives not designated as qualifying hedging instruments | |||||||||||||
Free-standing derivatives - risk management and other business purposes | |||||||||||||
Interest rate contracts related to MSRs | 2,992 | 147 | 8 | ||||||||||
Forward contracts related to held for sale mortgage loans | 4,068 | 12 | 44 | ||||||||||
Stock warrants associated with Vantiv Holding, LLC | 569 | 293 | - | ||||||||||
Swap associated with the sale of Visa, Inc. Class B shares | 812 | - | 35 | ||||||||||
Total free-standing derivatives - risk management and other business purposes | 452 | 87 | |||||||||||
Free-standing derivatives - customer accommodation: | |||||||||||||
Interest rate contracts for customers | 29,128 | 399 | 412 | ||||||||||
Interest rate lock commitments | 1,433 | 25 | 1 | ||||||||||
Commodity contracts | 3,330 | 83 | 82 | ||||||||||
Foreign exchange contracts | 18,299 | 237 | 214 | ||||||||||
Total free-standing derivatives - customer accommodation | 744 | 709 | |||||||||||
Total derivatives not designated as qualifying hedging instruments | 1,196 | 796 | |||||||||||
Total | $ | 1,586 | 807 | ||||||||||
Fair Value | |||||||||||||
Notional | Derivative | Derivative | |||||||||||
December 31, 2012 ($ in millions) | Amount | Assets | Liabilities | ||||||||||
Qualifying hedging instruments | |||||||||||||
Fair value hedges: | |||||||||||||
Interest rate swaps related to long-term debt | $ | 2,880 | 558 | - | |||||||||
Total fair value hedges | 558 | - | |||||||||||
Cash flow hedges: | |||||||||||||
Interest rate floors related to C&I loans | 1,500 | 22 | - | ||||||||||
Interest rate swaps related to C&I loans | 1,000 | 60 | - | ||||||||||
Interest rate caps related to long-term debt | 500 | - | - | ||||||||||
Interest rate swaps related to long-term debt | 250 | - | 1 | ||||||||||
Total cash flow hedges | 82 | 1 | |||||||||||
Total derivatives designated as qualifying hedging instruments | 640 | 1 | |||||||||||
Derivatives not designated as qualifying hedging instruments | |||||||||||||
Free-standing derivatives - risk management and other business purposes | |||||||||||||
Interest rate contracts related to MSRs | 10,177 | 219 | - | ||||||||||
Forward contracts related to held for sale mortgage loans | 5,322 | 2 | 14 | ||||||||||
Stock warrants associated with Vantiv Holding, LLC | 416 | 177 | - | ||||||||||
Swap associated with the sale of Visa, Inc. Class B shares | 644 | - | 33 | ||||||||||
Total free-standing derivatives - risk management and other business purposes | 398 | 47 | |||||||||||
Free-standing derivatives - customer accommodation: | |||||||||||||
Interest rate contracts for customers | 27,354 | 586 | 602 | ||||||||||
Interest rate lock commitments | 4,894 | 60 | - | ||||||||||
Commodity contracts | 3,084 | 87 | 82 | ||||||||||
Foreign exchange contracts | 17,297 | 201 | 183 | ||||||||||
Derivative instruments related to equity linked CDs | 5 | - | - | ||||||||||
Total free-standing derivatives - customer accommodation | 934 | 867 | |||||||||||
Total derivatives not designated as qualifying hedging instruments | 1,332 | 914 | |||||||||||
Total | $ | 1,972 | 915 | ||||||||||
Net Gains (Losses) Recognized in the Income Statement Related to Derivatives in Fair Value Hedging Relationships | ' | ||||||||||||
The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income: | |||||||||||||
Condensed Consolidated | For the three months | For the nine months | |||||||||||
Statements of | ended September 30, | ended September 30, | |||||||||||
($ in millions) | Income Caption | 2013 | 2012 | 2013 | 2012 | ||||||||
Interest rate contracts: | |||||||||||||
Change in fair value of interest rate swaps hedging long-term debt | Interest on long-term debt | $ | -30 | -35 | -223 | -56 | |||||||
Change in fair value of hedged long-term debt attributable to the risk being hedged | Interest on long-term debt | 30 | 44 | 220 | 59 | ||||||||
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges | ' | ||||||||||||
The following table presents the net gains recorded in the Condensed Consolidated Statements of Income and accumulated other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges: | |||||||||||||
For the three months | For the nine months | ||||||||||||
ended September 30, | ended September 30, | ||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||
Amount of net gains recognized in OCI | $ | 9 | 10 | 8 | 35 | ||||||||
Amount of net gains reclassified from OCI into net income | 6 | 22 | 37 | 63 | |||||||||
Schedule of Price Risk Derivatives | ' | ||||||||||||
The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table: | |||||||||||||
Condensed Consolidated | For the three months | For the nine months | |||||||||||
Statements of | ended September 30, | ended September 30, | |||||||||||
($ in millions) | Income Caption | 2013 | 2012 | 2013 | 2012 | ||||||||
Interest rate contracts: | |||||||||||||
Forward contracts related to mortgage loans held for sale | Mortgage banking net revenue | $ | -191 | -59 | -20 | -42 | |||||||
Interest rate contracts related to MSR portfolio | Mortgage banking net revenue | 24 | 32 | -13 | 75 | ||||||||
Interest rate swaps related to long-term debt | Other noninterest income | - | 1 | - | 2 | ||||||||
Foreign exchange contracts: | |||||||||||||
Foreign exchange contracts for trading purposes | Other noninterest income | -2 | -1 | 3 | -1 | ||||||||
Equity contracts: | |||||||||||||
Stock warrants associated with Vantiv Holding, LLC | Other noninterest income | 6 | -16 | 116 | 85 | ||||||||
Put options associated with sale of the processing business | Other noninterest income | - | - | - | 1 | ||||||||
Swap associated with sale of Visa, Inc. Class B shares | Other noninterest income | -2 | -1 | -13 | -30 | ||||||||
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: | |||||||||||||
September 30, | December 31, | ||||||||||||
As of ($ in millions) | 2013 | 2012 | |||||||||||
Pass | $ | 1,157 | 993 | ||||||||||
Special mention | 37 | - | |||||||||||
Substandard | 13 | 13 | |||||||||||
Doubtful | - | - | |||||||||||
Total | $ | 1,207 | 1,006 | ||||||||||
Net Gains (Losses) Recognized in the Income Statement Related to Free-Standing Derivative Instruments Used For Customer Accomodation | ' | ||||||||||||
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: | |||||||||||||
For the three months | For the nine months | ||||||||||||
Condensed Consolidated | ended September 30, | ended September 30, | |||||||||||
($ in millions) | Statements of Income Caption | 2013 | 2012 | 2013 | 2012 | ||||||||
Interest rate contracts: | |||||||||||||
Interest rate contracts for customers (contract revenue) | Corporate banking revenue | $ | 8 | 7 | 22 | 20 | |||||||
Interest rate contracts for customers (credit losses) | Other noninterest expense | - | -1 | -3 | -2 | ||||||||
Interest rate contracts for customers (credit portion of | |||||||||||||
fair value adjustment) | Other noninterest expense | - | 2 | 4 | 5 | ||||||||
Interest rate lock commitments | Mortgage banking net revenue | 43 | 166 | 41 | 341 | ||||||||
Commodity contracts: | |||||||||||||
Commodity contracts for customers (contract revenue) | Corporate banking revenue | 1 | 1 | 5 | 6 | ||||||||
Commodity contracts for customers (credit portion of | |||||||||||||
fair value adjustment) | Other noninterest expense | - | 1 | - | 1 | ||||||||
Foreign exchange contracts: | |||||||||||||
Foreign exchange contracts - customers (contract revenue) | Corporate banking revenue | 14 | 16 | 52 | 49 | ||||||||
Foreign exchange contracts - customers (credit portion of | |||||||||||||
fair value adjustment) | Other noninterest expense | - | 1 | -2 | 2 |
Offsetting_Derivative_Financia1
Offsetting Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Offsetting Derivative Financial Instruments | ' | ||||||||||||
Offsetting Derivative Financial Instruments | ' | ||||||||||||
Amount | Gross Amounts Not Offset in the | ||||||||||||
Recognized in the | Condensed Consolidated Balance Sheet | ||||||||||||
September 30, 2013 ($ in millions) | Condensed Consolidated Balance Sheet(a) | Derivatives | Collateral(b) | Net Amount | |||||||||
Assets | |||||||||||||
Derivatives | $ | 1,268 | -322 | -430 | $ | 516 | |||||||
Total assets | 1,268 | -322 | -430 | 516 | |||||||||
Liabilities | |||||||||||||
Derivatives | 806 | -322 | -360 | 124 | |||||||||
Total liabilities | $ | 806 | -322 | -360 | $ | 124 | |||||||
Amount | Gross Amounts Not Offset in the | ||||||||||||
Recognized in the | Condensed Consolidated Balance Sheet | ||||||||||||
December 31, 2012 ($ in millions) | Condensed Consolidated Balance Sheet(a) | Derivatives | Collateral(b) | Net Amount | |||||||||
Assets | |||||||||||||
Derivatives | $ | 1,735 | -291 | -794 | $ | 650 | |||||||
Total assets | 1,735 | -291 | -794 | 650 | |||||||||
Liabilities | |||||||||||||
Derivatives | 915 | -291 | -505 | 119 | |||||||||
Total liabilities | $ | 915 | -291 | -505 | $ | 119 | |||||||
Amount does not include stock warrants associated with Vantiv Holding, LLC and interest rate lock commitments because these instruments are not subject to master netting or similar arrangement. | |||||||||||||
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 | |||||||||||||
Commitments_Contingent_Liabili1
Commitments, Contingent Liabilities and Guarantees (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Commitments, Contingent Liabilities and Guarantees | ' | ||||||||||
Summary of Significant Commitments | ' | ||||||||||
Commitments | |||||||||||
The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of: | |||||||||||
September 30, | December 31, | ||||||||||
($ in millions) | 2013 | 2012 | |||||||||
Commitments to extend credit | $ | 59,411 | 53,403 | ||||||||
Forward contracts to sell mortgage loans | 4,068 | 5,322 | |||||||||
Letters of credit | 4,019 | 4,281 | |||||||||
Noncancelable lease obligations | 742 | 769 | |||||||||
Capital commitments for private equity investments | 96 | 121 | |||||||||
Purchase obligations | 89 | 87 | |||||||||
Capital expenditures | 38 | 29 | |||||||||
Capital lease obligations | 19 | 24 | |||||||||
Credit Risk Associated With Commitments | ' | ||||||||||
Risk ratings under this risk rating system are summarized in the following table: | |||||||||||
September 30, | December 31, | ||||||||||
($ in millions) | 2013 | 2012 | |||||||||
Pass | $ | 58,752 | 52,812 | ||||||||
Special mention | 304 | 370 | |||||||||
Substandard | 350 | 221 | |||||||||
Doubtful | 5 | - | |||||||||
Total | $ | 59,411 | 53,403 | ||||||||
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party | ' | ||||||||||
Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of: | |||||||||||
September 30, | |||||||||||
($ in millions) | 2013 | ||||||||||
Less than 1 year(a) | $ | 1,795 | |||||||||
1 - 5 years(a) | 2,172 | ||||||||||
Over 5 years | 52 | ||||||||||
Total | $ | 4,019 | |||||||||
Includes $67 and $6 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than one year and between one and five years, respectively. | |||||||||||
Credit Risk associated with Letters of Credit | ' | ||||||||||
Risk ratings under this risk rating system are summarized in the following table: | |||||||||||
September 30, | December 31, | ||||||||||
($ in millions) | 2013 | 2012 | |||||||||
Pass | $ | 3,515 | 3,902 | ||||||||
Special mention | 137 | 129 | |||||||||
Substandard | 343 | 223 | |||||||||
Doubtful | 24 | 27 | |||||||||
Total | $ | 4,019 | 4,281 | ||||||||
Activity in Reserve for Representation and Warranty Provisions | ' | ||||||||||
The following table summarizes activity in the reserve for representation and warranty provisions: | |||||||||||
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | |||||||
Balance, beginning of period | $ | 117 | 57 | 110 | 55 | ||||||
(Recovery of) provision for representation and warranty expense | -3 | 37 | 34 | 66 | |||||||
Losses charged against the reserve | -11 | -13 | -41 | -40 | |||||||
Balance, end of period | $ | 103 | 81 | 103 | 81 | ||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | ' | ||||||||||
The following table provides a rollforward of unresolved demands by claimant type for the nine months ended September 30, 2013: | |||||||||||
GSE | Private Label | ||||||||||
($ in millions) | Units | Dollars | Units | Dollars | |||||||
Balance, beginning of period | 294 | $ | 48 | 124 | $ | 19 | |||||
New demands | 1,409 | 189 | 223 | 2 | |||||||
Loan paydowns/payoffs | -11 | -2 | -6 | -1 | |||||||
Resolved demands | -1,397 | -190 | -311 | -16 | |||||||
Balance, end of period | 295 | $ | 45 | 30 | $ | 4 | |||||
The following table provides a rollforward of unresolved demands by claimant type for the nine months ended September 30, 2012: | |||||||||||
GSE | Private Label | ||||||||||
($ in millions) | Units | Dollars | Units | Dollars | |||||||
Balance, beginning of period | 328 | $ | 47 | 109 | $ | 19 | |||||
New demands | 2,116 | 274 | 173 | 6 | |||||||
Loan paydowns/payoffs | -34 | -5 | -1 | - | |||||||
Resolved demands | -2,092 | -261 | -157 | -6 | |||||||
Balance, end of period | 318 | $ | 55 | 124 | $ | 19 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income | ' | ||||||||||||||
The activity of the components of other comprehensive income and accumulated other comprehensive income for the three months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
30-Sep-13 | |||||||||||||||
Unrealized holding gains on available-for-sale securities arising | |||||||||||||||
during period | $ | 106 | -37 | 69 | |||||||||||
Reclassification adjustment for net gains included in net income | -5 | 1 | -4 | ||||||||||||
Net unrealized gains on available-for-sale securities | 101 | -36 | 65 | 203 | 65 | 268 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 9 | -3 | 6 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -6 | 2 | -4 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | 3 | -1 | 2 | 29 | 2 | 31 | |||||||||
Defined benefit plans: | |||||||||||||||
Net actuarial loss | 3 | -1 | 2 | ||||||||||||
Defined benefit plans, net | 3 | -1 | 2 | -83 | 2 | -81 | |||||||||
Total | $ | 107 | -38 | 69 | 149 | 69 | 218 | ||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
30-Sep-12 | |||||||||||||||
Unrealized holding gains on available-for-sale securities arising | |||||||||||||||
during period | $ | 33 | -11 | 22 | |||||||||||
Reclassification adjustment for net gains included in net income | -6 | 2 | -4 | ||||||||||||
Net unrealized gains on available-for-sale securities | 27 | -9 | 18 | 476 | 18 | 494 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 10 | -2 | 8 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -22 | 8 | -14 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | -12 | 6 | -6 | 68 | -6 | 62 | |||||||||
Defined benefit plans: | |||||||||||||||
Net actuarial loss | 3 | -1 | 2 | ||||||||||||
Defined benefit plans, net | 3 | -1 | 2 | -90 | 2 | -88 | |||||||||
Total | $ | 18 | -4 | 14 | 454 | 14 | 468 | ||||||||
The activity of the components of other comprehensive income and accumulated other comprehensive income for the nine months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
30-Sep-13 | |||||||||||||||
Unrealized holding losses on available-for-sale securities arising | |||||||||||||||
during period | $ | -274 | 96 | -178 | |||||||||||
Reclassification adjustment for net losses included in net income | 53 | -19 | 34 | ||||||||||||
Net unrealized gains on available-for-sale securities | -221 | 77 | -144 | 412 | -144 | 268 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 8 | -3 | 5 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -37 | 13 | -24 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | -29 | 10 | -19 | 50 | -19 | 31 | |||||||||
Defined benefit plans: | |||||||||||||||
Net actuarial loss | 9 | -3 | 6 | ||||||||||||
Defined benefit plans, net | 9 | -3 | 6 | -87 | 6 | -81 | |||||||||
Total | $ | -241 | 84 | -157 | 375 | -157 | 218 | ||||||||
Total Other | Total Accumulated Other | ||||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||||
Pretax | Tax | Net | Beginning | Net | Ending | ||||||||||
($ in millions) | Activity | Effect | Activity | Balance | Activity | Balance | |||||||||
30-Sep-12 | |||||||||||||||
Unrealized holding gains on available-for-sale securities arising | |||||||||||||||
during period | $ | 29 | -10 | 19 | |||||||||||
Reclassification adjustment for net gains included in net income | -16 | 6 | -10 | ||||||||||||
Net unrealized gains on available-for-sale securities | 13 | -4 | 9 | 485 | 9 | 494 | |||||||||
Unrealized holding gains on cash flow hedge derivatives arising | |||||||||||||||
during period | 35 | -12 | 23 | ||||||||||||
Reclassification adjustment for net gains on cash flow | |||||||||||||||
hedge derivatives included in net income | -63 | 22 | -41 | ||||||||||||
Net unrealized gains on cash flow hedge derivatives | -28 | 10 | -18 | 80 | -18 | 62 | |||||||||
Defined benefit plans: | |||||||||||||||
Net actuarial loss | 11 | -4 | 7 | ||||||||||||
Defined benefit plans, net | 11 | -4 | 7 | -95 | 7 | -88 | |||||||||
Total | $ | -4 | 2 | -2 | 470 | -2 | 468 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income to Net Income | ' | ||||||||||||||
The table below presents reclassifications out of accumulated other comprehensive income for the three months ended September 30, 2013: | |||||||||||||||
Amount Reclassified | Affected Line Item in the Condensed | ||||||||||||||
Components of AOCI: ($ in millions) | from AOCI(b) | Consolidated Statements of Income | |||||||||||||
Net unrealized gains on available-for-sale securities | |||||||||||||||
Net gains included in net income | $ | 5 | Securities gains, net | ||||||||||||
5 | Income before income taxes | ||||||||||||||
-1 | Applicable income tax expense | ||||||||||||||
4 | Net income | ||||||||||||||
Net unrealized gains on cash flow hedge derivatives | |||||||||||||||
Interest rate contracts related to C&I loans | 6 | Interest and fees on loans and leases | |||||||||||||
6 | Income before income taxes | ||||||||||||||
-2 | Applicable income tax expense | ||||||||||||||
4 | Net income | ||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||
Net actuarial loss | -3 | (a) | |||||||||||||
-3 | Income before income taxes | ||||||||||||||
1 | Applicable income tax expense | ||||||||||||||
-2 | Net income | ||||||||||||||
Total reclassifications for the period | $ | 6 | Net income | ||||||||||||
The table below presents reclassifications out of accumulated other comprehensive income for the nine months ended September 30, 2013: | |||||||||||||||
Amount Reclassified | Affected Line Item in the Condensed | ||||||||||||||
Components of AOCI: ($ in millions) | from AOCI(b) | Consolidated Statements of Income | |||||||||||||
Net unrealized gains on available-for-sale securities | |||||||||||||||
Net losses included in net income | $ | -53 | Securities gains, net | ||||||||||||
-53 | Income before income taxes | ||||||||||||||
19 | Applicable income tax expense | ||||||||||||||
-34 | Net income | ||||||||||||||
Net unrealized gains on cash flow hedge derivatives | |||||||||||||||
Interest rate contracts related to C&I loans | 38 | Interest and fees on loans and leases | |||||||||||||
Interest rate contracts related to long-term debt | -1 | Interest on long-term debt | |||||||||||||
37 | Income before income taxes | ||||||||||||||
-13 | Applicable income tax expense | ||||||||||||||
24 | Net income | ||||||||||||||
Amortization of defined benefit pension items | |||||||||||||||
Net actuarial loss | -9 | (a) | |||||||||||||
-9 | Income before income taxes | ||||||||||||||
3 | Applicable income tax expense | ||||||||||||||
-6 | Net income | ||||||||||||||
Total reclassifications for the period | $ | -16 | Net income | ||||||||||||
This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 20 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2012 for information on the computation of net periodic benefit cost. | |||||||||||||||
Amounts in parentheses indicate reductions to net income | |||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share | ' | ||||||||
Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share | ' | ||||||||
The calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share were as follows: | |||||||||
2013 | 2012 | ||||||||
For the three months ended September 30, | Average | Per Share | Average | Per Share | |||||
(in millions, except per share data) | Income | Shares | Amount | Income | Shares | Amount | |||
Earnings per share: | |||||||||
Net income attributable to Bancorp | $ | 421 | 363 | ||||||
Dividends on preferred stock | - | 9 | |||||||
Net income available to common shareholders | 421 | 354 | |||||||
Less: Income allocated to participating securities | 3 | 2 | |||||||
Net income allocated to common shareholders | $ | 418 | 880 | 0.47 | 352 | 904 | 0.39 | ||
Earnings per diluted share: | |||||||||
Net income available to common shareholders | $ | 421 | 354 | ||||||
Effect of dilutive securities: | |||||||||
Stock-based awards | - | 8 | - | - | 5 | - | |||
Series G convertible preferred stock | - | - | - | 9 | 36 | -0.01 | |||
Net income available to common shareholders | 421 | 363 | |||||||
plus assumed conversions | |||||||||
Less: Income allocated to participating securities | 3 | 2 | |||||||
Net income allocated to common shareholders | |||||||||
plus assumed conversions | $ | 418 | 888 | 0.47 | 361 | 945 | 0.38 | ||
2013 | 2012 | ||||||||
For the nine months ended September 30, | Average | Per Share | Average | Per Share | |||||
(in millions, except per share data) | Income | Shares | Amount | Income | Shares | Amount | |||
Earnings per share: | |||||||||
Net income attributable to Bancorp | $ | 1,433 | 1,178 | ||||||
Dividends on preferred stock | 18 | 26 | |||||||
Net income available to common shareholders | 1,415 | 1,152 | |||||||
Less: Income allocated to participating securities | 10 | 7 | |||||||
Net income allocated to common shareholders | $ | 1,405 | 870 | 1.62 | 1,145 | 911 | 1.26 | ||
Earnings per diluted share: | |||||||||
Net income available to common shareholders | $ | 1,415 | 1,152 | ||||||
Effect of dilutive securities: | |||||||||
Stock-based awards | - | 7 | - | - | 5 | - | |||
Series G convertible preferred stock | 18 | 24 | -0.04 | 26 | 36 | -0.03 | |||
Net income available to common shareholders | 1,433 | 1,178 | |||||||
plus assumed conversions | |||||||||
Less: Income allocated to participating securities | 10 | 7 | |||||||
Net income allocated to common shareholders | |||||||||
plus assumed conversions | $ | 1,423 | 901 | 1.58 | 1,171 | 952 | 1.23 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Measurements | ' | ||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||
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, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of: | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
September 30, 2013 ($ in millions) | Level 1(c) | Level 2(c) | Level 3 | Total Fair Value | |||||||||||
Assets: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
U.S. Treasury and government agencies | $ | 26 | - | - | 26 | ||||||||||
U.S. Government sponsored agencies | - | 1,653 | - | 1,653 | |||||||||||
Obligations of states and political subdivisions | - | 205 | - | 205 | |||||||||||
Agency mortgage-backed securities | - | 11,353 | - | 11,353 | |||||||||||
Other bonds, notes and debentures | - | 3,839 | - | 3,839 | |||||||||||
Other securities(a) | 92 | 66 | - | 158 | |||||||||||
Available-for-sale securities(a) | 118 | 17,116 | - | 17,234 | |||||||||||
Trading securities: | |||||||||||||||
U.S. Treasury and government agencies | 1 | - | - | 1 | |||||||||||
U.S. Government sponsored agencies | - | 20 | - | 20 | |||||||||||
Obligations of states and political subdivisions | - | 20 | 1 | 21 | |||||||||||
Agency mortgage-backed securities | - | 1 | - | 1 | |||||||||||
Other bonds, notes and debentures | - | 9 | - | 9 | |||||||||||
Other securities | 194 | - | - | 194 | |||||||||||
Trading securities | 195 | 50 | 1 | 246 | |||||||||||
Residential mortgage loans held for sale | - | 1,298 | - | 1,298 | |||||||||||
Residential mortgage loans(b) | - | - | 89 | 89 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | 12 | 936 | 25 | 973 | |||||||||||
Foreign exchange contracts | - | 237 | - | 237 | |||||||||||
Equity contracts | - | - | 293 | 293 | |||||||||||
Commodity contracts | 9 | 74 | - | 83 | |||||||||||
Derivative assets | 21 | 1,247 | 318 | 1,586 | |||||||||||
Total assets | $ | 334 | 19,711 | 408 | 20,453 | ||||||||||
Liabilities: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | $ | 44 | 428 | 4 | 476 | ||||||||||
Foreign exchange contracts | - | 214 | - | 214 | |||||||||||
Equity contracts | - | - | 35 | 35 | |||||||||||
Commodity contracts | 14 | 68 | - | 82 | |||||||||||
Derivative liabilities | 58 | 710 | 39 | 807 | |||||||||||
Short positions | 17 | 2 | - | 19 | |||||||||||
Total liabilities | $ | 75 | 712 | 39 | 826 | ||||||||||
Fair Value Measurements Using | |||||||||||||||
December 31, 2012 ($ in millions) | Level 1(c) | Level 2(c) | Level 3 | Total Fair Value | |||||||||||
Assets: | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
U.S. Treasury and Government agencies | $ | 41 | - | - | 41 | ||||||||||
U.S. Government sponsored agencies | - | 1,911 | - | 1,911 | |||||||||||
Obligations of states and political subdivisions | - | 212 | - | 212 | |||||||||||
Agency mortgage-backed securities | - | 8,730 | - | 8,730 | |||||||||||
Other bonds, notes and debentures | - | 3,277 | - | 3,277 | |||||||||||
Other securities(a) | 79 | 113 | - | 192 | |||||||||||
Available-for-sale securities(a) | 120 | 14,243 | - | 14,363 | |||||||||||
Trading securities: | |||||||||||||||
U.S. Treasury and Government agencies | 1 | - | - | 1 | |||||||||||
U.S. Government sponsored agencies | - | 6 | - | 6 | |||||||||||
Obligations of states and political subdivisions | - | 16 | 1 | 17 | |||||||||||
Agency mortgage-backed securities | - | 7 | - | 7 | |||||||||||
Other bonds, notes and debentures | - | 15 | - | 15 | |||||||||||
Other securities | 161 | - | - | 161 | |||||||||||
Trading securities | 162 | 44 | 1 | 207 | |||||||||||
Residential mortgage loans held for sale | - | 2,856 | - | 2,856 | |||||||||||
Residential mortgage loans(b) | - | - | 76 | 76 | |||||||||||
Derivative assets: | |||||||||||||||
Interest rate contracts | 2 | 1,445 | 60 | 1,507 | |||||||||||
Foreign exchange contracts | - | 201 | - | 201 | |||||||||||
Equity contracts | - | - | 177 | 177 | |||||||||||
Commodity contracts | - | 87 | - | 87 | |||||||||||
Derivative assets | 2 | 1,733 | 237 | 1,972 | |||||||||||
Total assets | $ | 284 | 18,876 | 314 | 19,474 | ||||||||||
Liabilities: | |||||||||||||||
Derivative liabilities: | |||||||||||||||
Interest rate contracts | $ | 14 | 600 | 3 | 617 | ||||||||||
Foreign exchange contracts | - | 183 | - | 183 | |||||||||||
Equity contracts | - | - | 33 | 33 | |||||||||||
Commodity contracts | - | 82 | - | 82 | |||||||||||
Derivative liabilities | 14 | 865 | 36 | 915 | |||||||||||
Short positions | 8 | 2 | - | 10 | |||||||||||
Total liabilities | $ | 22 | 867 | 36 | 925 | ||||||||||
Excludes FHLB and FRB restricted stock totaling $497 and $349, respectively, at September 30, 2013 and $497 and $347, respectively, at December 31, 2012. | |||||||||||||||
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | |||||||||||||||
During the three and nine months ended September 30, 2013 and for the year ended December 31, 2012, no assets or liabilities were transferred between Level 1 and Level 2 | |||||||||||||||
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||
The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Residential | Interest Rate | Equity | |||||||||||||
For the three months ended September 30, 2013 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||||
Beginning balance | $ | 1 | 83 | -30 | 250 | 304 | |||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||
Included in earnings | - | - | 43 | 5 | 48 | ||||||||||
Purchases | - | - | -1 | - | -1 | ||||||||||
Settlements | - | -5 | 9 | 3 | 7 | ||||||||||
Transfers into Level 3(b) | - | 11 | - | - | 11 | ||||||||||
Ending balance | $ | 1 | 89 | 21 | 258 | 369 | |||||||||
The amount of total gains or losses for the period | |||||||||||||||
included in earnings attributable to the change in | |||||||||||||||
unrealized gains or losses relating to assets | |||||||||||||||
still held at September 30, 2013(c) | $ | - | - | 22 | 5 | 27 | |||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Residential | Interest Rate | Equity | |||||||||||||
For the three months ended September 30, 2012 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||||
Beginning balance | $ | 1 | 76 | 54 | 184 | 315 | |||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||
Included in earnings | - | 1 | 163 | -17 | 147 | ||||||||||
Settlements | - | -5 | -118 | 9 | -114 | ||||||||||
Transfers into Level 3(b) | - | 4 | - | - | 4 | ||||||||||
Ending balance | $ | 1 | 76 | 99 | 176 | 352 | |||||||||
The amount of total gains or losses for the period | |||||||||||||||
included in earnings attributable to the change in | |||||||||||||||
unrealized gains or losses relating to assets | |||||||||||||||
still held at September 30, 2012(c) | $ | - | 1 | 101 | -17 | 85 | |||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Residential | Interest Rate | Equity | |||||||||||||
For the nine months ended September 30, 2013 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||||
Beginning balance | $ | 1 | 76 | 57 | 144 | 278 | |||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||
Included in earnings | - | -1 | 42 | 102 | 143 | ||||||||||
Purchases | - | - | -1 | - | -1 | ||||||||||
Settlements | - | -12 | -77 | 12 | -77 | ||||||||||
Transfers into Level 3(b) | - | 26 | - | - | 26 | ||||||||||
Ending balance | $ | 1 | 89 | 21 | 258 | 369 | |||||||||
The amount of total gains or losses for the period | |||||||||||||||
included in earnings attributable to the change in | |||||||||||||||
unrealized gains or losses relating to assets | |||||||||||||||
still held at September 30, 2013(c) | $ | - | -1 | 45 | 102 | 146 | |||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Residential | Interest Rate | Equity | |||||||||||||
For the nine months ended September 30, 2012 | Trading | Mortgage | Derivatives, | Derivatives, | Total | ||||||||||
($ in millions) | Securities | Loans | Net(a) | Net(a) | Fair Value | ||||||||||
Beginning balance | $ | 1 | 65 | 32 | 32 | $ | 130 | ||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||
Included in earnings | - | - | 338 | 57 | 395 | ||||||||||
Settlements | - | -10 | -271 | 87 | -194 | ||||||||||
Transfers into Level 3(b) | - | 21 | - | - | 21 | ||||||||||
Ending balance | $ | 1 | 76 | 99 | 176 | $ | 352 | ||||||||
The amount of total gains or losses for the period | |||||||||||||||
included in earnings attributable to the change in | |||||||||||||||
unrealized gains or losses relating to assets | |||||||||||||||
still held at September 30, 2012(c) | $ | - | - | 173 | 57 | $ | 230 | ||||||||
Net interest rate derivatives include derivative assets and liabilities of $25 and $4, respectively, as of September 30, 2013 and $102 and $3, respectively, as of September 30, 2012. Net equity derivatives include derivative assets and liabilities of $293 and $35, respectively, as of September 30, 2013, and $198 and $22, respectively, as of September 30, 2012. | |||||||||||||||
Includes residential mortgage loans held for sale that were transferred to held for investment. | |||||||||||||||
Includes interest income and expense. | |||||||||||||||
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||
The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows: | |||||||||||||||
For the three months | For the nine months | ||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Mortgage banking net revenue | $ | 43 | 165 | 40 | 339 | ||||||||||
Corporate banking revenue | - | - | 1 | - | |||||||||||
Other noninterest income | 5 | -18 | 102 | 56 | |||||||||||
Total gains | $ | 48 | 147 | 143 | 395 | ||||||||||
The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at September 30, 2013 and 2012 were recorded in the Condensed Consolidated Statements of Income as follows: | |||||||||||||||
For the three months | For the nine months | ||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||
($ in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Mortgage banking net revenue | $ | 22 | 103 | 43 | 174 | ||||||||||
Corporate banking revenue | - | - | 1 | - | |||||||||||
Other noninterest income | 5 | -18 | 102 | 56 | |||||||||||
Total gains | $ | 27 | 85 | 146 | 230 | ||||||||||
Quantitative information about significant unobservable level 3 fair value measurement inputs | ' | ||||||||||||||
The following tables present information as of September 30, 2013 and 2012 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a recurring basis: | |||||||||||||||
As of September 30, 2013 ($ in millions) | |||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||||
Residential mortgage loans | $ | 89 | Loss rate model | Interest rate risk factor | (19.9) - 12.2% | 3.50% | |||||||||
Credit risk factor | 0 - 56.4% | 3.30% | |||||||||||||
IRLCs, net | 24 | Discounted cash flow | Loan closing rates | 3.1 - 97.2% | 66.40% | ||||||||||
Stock warrants associated with Vantiv | 293 | Black-Scholes option | Expected term (years) | 2.00 - 15.8 | 5.1 | ||||||||||
Holding, LLC | valuation model | Expected volatility(a) | 21.0 - 33.4% | 27.80% | |||||||||||
Expected dividend rate | - | - | |||||||||||||
Swap associated with the sale of Visa, Inc. | -35 | Discounted cash flow | Timing of the resolution | 3/31/2014 - | NM | ||||||||||
Class B shares | of the Covered Litigation | 3/31/17 | |||||||||||||
As of September 30, 2012 ($ in millions) | |||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||||
Residential mortgage loans | $ | 76 | Loss rate model | Interest rate risk factor | (91.0) - 16.6% | 6.50% | |||||||||
Credit risk factor | 2.3 - 68.4% | 4.60% | |||||||||||||
IRLCs, net | 102 | Discounted cash flow | Loan closing rates | 9.8 - 95.0% | 60.10% | ||||||||||
Stock warrants associated with Vantiv | 197 | Black-Scholes option | Expected term (years) | 2.00 - 16.75 | 6.2 | ||||||||||
Holding, LLC | valuation model | Expected volatility(a) | 27.7 - 40.6% | 34.20% | |||||||||||
Expected dividend rate | 0 | 0 | |||||||||||||
Swap associated with the sale of Visa, Inc. | -21 | Discounted cash flow | Timing of the resolution | 6/30/13 - | NM | ||||||||||
Class B shares | of the Covered Litigation | 6/30/15 | |||||||||||||
Based on historical and implied volatilities of comparable companies assuming similar expected terms. | |||||||||||||||
The following tables present information as of September 30, 2013 and 2012 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis: | |||||||||||||||
As of September 30, 2013 ($ in millions) | |||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||||
Commercial loans held for sale | $ | 0 | Appraised value | Appraised value | NM | NM | |||||||||
Cost to sell | NM | 10.00% | |||||||||||||
Commercial and industrial loans | 431 | Appraised value | Collateral value | NM | NM | ||||||||||
Commercial mortgage loans | 63 | Appraised value | Collateral value | NM | NM | ||||||||||
Commercial construction loans | 3 | Appraised value | Collateral value | NM | NM | ||||||||||
Commercial leases | 1 | Appraised value | Collateral value | NM | NM | ||||||||||
MSRs | 915 | Discounted cash flow | Prepayment speed | 0 - 100% | (Fixed) 11.4% (Adjustable) 25.7% | ||||||||||
Discount rates | 9.4 - 18.0% | (Fixed) 10.4% (Adjustable) 11.6% | |||||||||||||
OREO | 109 | Appraised value | Appraised value | NM | NM | ||||||||||
As of September 30, 2012 ($ in millions) | |||||||||||||||
Financial Instrument | Fair Value | Valuation Technique | Significant Unobservable Inputs | Ranges of Inputs | Weighted-Average | ||||||||||
Commercial loans held for sale | $ | 13 | Appraised value | Appraised value | NM | NM | |||||||||
Cost to sell | NM | 10.00% | |||||||||||||
Commercial and industrial loans | 79 | Appraised value | Default rates | 100% | NM | ||||||||||
Collateral value | NM | NM | |||||||||||||
Commercial mortgage loans | 59 | Appraised value | Default rates | 100% | NM | ||||||||||
Collateral value | NM | NM | |||||||||||||
Commercial construction loans | 8 | Appraised value | Default rates | 100% | NM | ||||||||||
Collateral value | NM | NM | |||||||||||||
MSRs | 679 | Discounted cash flow | Prepayment speed | 0 - 100% | (Fixed) 16.9% (Adjustable) 27.1% | ||||||||||
Discount rates | 9.4 - 18.0% | (Fixed) 10.6% (Adjustable) 11.7% | |||||||||||||
OREO | 114 | Appraised value | Appraised value | NM | NM | ||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ' | ||||||||||||||
The following tables represent those assets that were subject to fair value adjustments during the three and nine months ended September 30, 2013 and 2012 and still held as of the end of the period, and the related 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 | Total Losses | |||||||||||||
For the three months | For the nine months | ||||||||||||||
As of September 30, 2013 ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ended September 30, 2013 | ended September 30, 2013 | |||||||||
Commercial loans held for sale(a) | $ | - | - | - | - | - | -5 | ||||||||
Commercial and industrial loans | - | - | 431 | 431 | -103 | -134 | |||||||||
Commercial mortgage loans | - | - | 63 | 63 | -9 | -34 | |||||||||
Commercial construction loans | - | - | 3 | 3 | -4 | -6 | |||||||||
Commercial leases | - | - | 1 | 1 | - | - | |||||||||
MSRs | - | - | 915 | 915 | -1 | 150 | |||||||||
OREO | - | - | 109 | 109 | -8 | -37 | |||||||||
Total | $ | - | - | 1,522 | 1,522 | -125 | -66 | ||||||||
Fair Value Measurements Using | Total Losses | Total Losses | |||||||||||||
For the three months | For the nine months | ||||||||||||||
As of September 30, 2012 ($ in millions) | Level 1 | Level 2 | Level 3 | Total | ended September 30, 2012 | ended September 30, 2012 | |||||||||
Commercial loans held for sale(a) | $ | - | - | 13 | 13 | -4 | -10 | ||||||||
Commercial and industrial loans | - | - | 79 | 79 | -31 | -86 | |||||||||
Commercial mortgage loans | - | - | 59 | 59 | -11 | -40 | |||||||||
Commercial construction loans | - | - | 8 | 8 | -5 | -21 | |||||||||
MSRs | - | - | 679 | 679 | -72 | -122 | |||||||||
OREO | - | - | 114 | 114 | -16 | -60 | |||||||||
Total | $ | - | - | 952 | 952 | -139 | -339 | ||||||||
Includes commercial nonaccrual loans held for sale. | |||||||||||||||
Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value | ' | ||||||||||||||
The following table summarizes the difference between the fair value and the principal balance for residential mortgage loans measured at fair value as of: | |||||||||||||||
Aggregate | Aggregate Unpaid | ||||||||||||||
($ in millions) | Fair Value | Principal Balance | Difference | ||||||||||||
30-Sep-13 | |||||||||||||||
Residential mortgage loans measured at fair value | $ | 1,387 | 1,331 | 56 | |||||||||||
Past due loans of 90 days or more | 2 | 3 | -1 | ||||||||||||
Nonaccrual loans | 1 | 1 | - | ||||||||||||
31-Dec-12 | |||||||||||||||
Residential mortgage loans measured at fair value | 2,932 | 2,775 | 157 | ||||||||||||
Past due loans of 90 days or more | 3 | 4 | -1 | ||||||||||||
Nonaccrual loans | - | 1 | -1 | ||||||||||||
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments | ' | ||||||||||||||
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 September 30, 2013 ($ in millions) | Amount | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||
Financial assets: | |||||||||||||||
Cash and due from banks | $ | 2,887 | 2,887 | - | - | 2,887 | |||||||||
Other securities | 846 | - | 846 | - | 846 | ||||||||||
Held-to-maturity securities | 265 | - | - | 265 | 265 | ||||||||||
Other short-term investments | 2,622 | 2,622 | - | - | 2,622 | ||||||||||
Loans held for sale | 32 | - | - | 32 | 32 | ||||||||||
Portfolio loans and leases: | |||||||||||||||
Commercial and industrial loans | 37,440 | - | - | 38,987 | 38,987 | ||||||||||
Commercial mortgage loans | 7,813 | - | - | 7,309 | 7,309 | ||||||||||
Commercial construction loans | 843 | - | - | 699 | 699 | ||||||||||
Commercial leases | 3,509 | - | - | 3,248 | 3,248 | ||||||||||
Residential mortgage loans(a) | 12,251 | - | - | 11,635 | 11,635 | ||||||||||
Home equity | 9,251 | - | - | 9,179 | 9,179 | ||||||||||
Automobile loans | 12,046 | - | - | 11,879 | 11,879 | ||||||||||
Credit card | 2,070 | - | - | 2,230 | 2,230 | ||||||||||
Other consumer loans and leases | 343 | - | - | 357 | 357 | ||||||||||
Unallocated allowance for loan and lease losses | -101 | - | - | - | - | ||||||||||
Total portfolio loans and leases, net(a) | $ | 85,465 | - | - | 85,523 | 85,523 | |||||||||
Financial liabilities: | |||||||||||||||
Deposits | 94,126 | - | 94,157 | - | 94,157 | ||||||||||
Federal funds purchased | 225 | 225 | - | - | 225 | ||||||||||
Other short-term borrowings | 3,487 | - | 3,487 | - | 3,487 | ||||||||||
Long-term debt | 8,098 | 7,943 | 635 | - | 8,578 | ||||||||||
Excludes $89 of residential mortgage loans measured at fair value on a recurring basis. | |||||||||||||||
Net Carrying | Fair Value Measurements Using | ||||||||||||||
As of December 31, 2012 ($ in millions) | Amount | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||
Financial assets: | |||||||||||||||
Cash and due from banks | $ | 2,441 | 2,441 | - | - | 2,441 | |||||||||
Other securities | 844 | - | 844 | - | 844 | ||||||||||
Held-to-maturity securities | 284 | - | - | 284 | 284 | ||||||||||
Other short-term investments | 2,421 | 2,421 | - | - | 2,421 | ||||||||||
Loans held for sale | 83 | - | - | 83 | 83 | ||||||||||
Portfolio loans and leases: | |||||||||||||||
Commercial and industrial loans | 35,236 | - | - | 36,496 | 36,496 | ||||||||||
Commercial mortgage loans | 8,770 | - | - | 8,020 | 8,020 | ||||||||||
Commercial construction loans | 665 | - | - | 505 | 505 | ||||||||||
Commercial leases | 3,481 | - | - | 3,310 | 3,310 | ||||||||||
Residential mortgage loans(a) | 11,712 | - | - | 11,532 | 11,532 | ||||||||||
Home equity | 9,875 | - | - | 9,798 | 9,798 | ||||||||||
Automobile loans | 11,944 | - | - | 12,076 | 12,076 | ||||||||||
Credit card | 2,010 | - | - | 2,139 | 2,139 | ||||||||||
Other consumer loans and leases | 270 | - | - | 288 | 288 | ||||||||||
Unallocated allowance for loan and lease losses | -111 | - | - | - | - | ||||||||||
Total portfolio loans and leases, net(a) | $ | 83,852 | - | - | 84,164 | 84,164 | |||||||||
Financial liabilities: | |||||||||||||||
Deposits | 89,517 | - | 89,592 | - | 89,592 | ||||||||||
Federal funds purchased | 901 | 901 | - | - | 901 | ||||||||||
Other short-term borrowings | 6,280 | - | 6,280 | - | 6,280 | ||||||||||
Long-term debt | 7,085 | 6,925 | 884 | - | 7,809 | ||||||||||
Excludes $76 of residential mortgage loans measured at fair value on a recurring basis. | |||||||||||||||
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Business Segments | ' | ||||||||
Results of Operations and Average Assets by Segment | ' | ||||||||
Results of operations and assets by segment for the three and nine months ended September 30, 2013 and 2012 are: | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Three months ended September 30, 2013 | |||||||||
Net interest income | $ | 374 | 374 | 76 | 38 | 31 | - | 893 | |
Provision for loan and lease losses | 37 | 52 | 20 | - | -58 | - | 51 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 337 | 322 | 56 | 38 | 89 | - | 842 | ||
Noninterest income: | |||||||||
Mortgage banking net revenue | - | 3 | 118 | - | - | - | 121 | ||
Service charges on deposits | 61 | 78 | - | 1 | - | - | 140 | ||
Corporate banking revenue | 98 | 4 | - | 1 | -1 | - | 102 | ||
Investment advisory revenue | 1 | 36 | - | 95 | - | (35)(a) | 97 | ||
Card and processing revenue | 13 | 74 | - | 1 | -19 | - | 69 | ||
Other noninterest income | 32 | 22 | 11 | 1 | 119 | - | 185 | ||
Securities gains, net | - | - | 2 | - | - | - | 2 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 5 | - | - | - | 5 | ||
Total noninterest income | 205 | 217 | 136 | 99 | 99 | -35 | 721 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 55 | 114 | 40 | 33 | 147 | - | 389 | ||
Employee benefits | 8 | 32 | 9 | 6 | 28 | - | 83 | ||
Net occupancy expense | 6 | 46 | 2 | 2 | 19 | - | 75 | ||
Technology and communications | 3 | 1 | - | - | 48 | - | 52 | ||
Card and processing expense | 2 | 31 | - | - | - | - | 33 | ||
Equipment expense | 1 | 15 | - | - | 13 | - | 29 | ||
Other noninterest expense | 212 | 191 | 117 | 66 | -253 | -35 | 298 | ||
Total noninterest expense | 287 | 430 | 168 | 107 | 2 | -35 | 959 | ||
Income before income taxes | 255 | 109 | 24 | 30 | 186 | - | 604 | ||
Applicable income tax expense | 49 | 38 | 9 | 10 | 77 | - | 183 | ||
Net income | 206 | 71 | 15 | 20 | 109 | - | 421 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | - | - | - | ||
Net income attributable to Bancorp | 206 | 71 | 15 | 20 | 109 | - | 421 | ||
Dividends on preferred stock | - | - | - | - | - | - | - | ||
Net income available to common shareholders | $ | 206 | 71 | 15 | 20 | 109 | - | 421 | |
Total goodwill | $ | 613 | 1,655 | - | 148 | - | - | 2,416 | |
Total assets | $ | 50,438 | 49,282 | 23,015 | 9,182 | -6,244 | - | 125,673 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Three months ended September 30, 2012 | |||||||||
Net interest income | $ | 354 | 344 | 77 | 30 | 98 | - | 903 | |
Provision for loan and lease losses | 45 | 71 | 38 | 3 | -92 | - | 65 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 309 | 273 | 39 | 27 | 190 | - | 838 | ||
Noninterest income: | |||||||||
Mortgage banking net revenue | - | 3 | 197 | - | - | - | 200 | ||
Service charges on deposits | 57 | 70 | - | 1 | - | - | 128 | ||
Corporate banking revenue | 96 | 4 | - | 1 | - | - | 101 | ||
Investment advisory revenue | 1 | 33 | - | 90 | - | (32)(a) | 92 | ||
Card and processing revenue | 11 | 72 | - | 1 | -19 | - | 65 | ||
Other noninterest income | 18 | 21 | 10 | 14 | 15 | - | 78 | ||
Securities gains, net | - | - | - | - | 2 | - | 2 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 5 | - | - | - | 5 | ||
Total noninterest income | 183 | 203 | 212 | 107 | -2 | -32 | 671 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 53 | 111 | 49 | 33 | 153 | - | 399 | ||
Employee benefits | 7 | 31 | 9 | 6 | 26 | - | 79 | ||
Net occupancy expense | 5 | 47 | 2 | 3 | 19 | - | 76 | ||
Technology and communications | 3 | 1 | - | - | 45 | - | 49 | ||
Card and processing expense | 1 | 29 | - | - | - | - | 30 | ||
Equipment expense | 1 | 14 | - | - | 13 | - | 28 | ||
Other noninterest expense | 201 | 172 | 107 | 67 | -170 | -32 | 345 | ||
Total noninterest expense | 271 | 405 | 167 | 109 | 86 | -32 | 1,006 | ||
Income before income taxes | 221 | 71 | 84 | 25 | 102 | - | 503 | ||
Applicable income tax expense | 39 | 25 | 30 | 9 | 36 | - | 139 | ||
Net income | 182 | 46 | 54 | 16 | 66 | - | 364 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | 1 | - | 1 | ||
Net income attributable to Bancorp | 182 | 46 | 54 | 16 | 65 | - | 363 | ||
Dividends on preferred stock | - | - | - | - | 9 | - | 9 | ||
Net income available to common shareholders | $ | 182 | 46 | 54 | 16 | 56 | - | 354 | |
Total goodwill | $ | 613 | 1,656 | - | 148 | - | - | 2,417 | |
Total assets | $ | 47,495 | 48,003 | 23,640 | 8,024 | -9,679 | - | 117,483 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Nine months ended September 30, 2013 | |||||||||
Net interest income | $ | 1,095 | 1,079 | 246 | 109 | 132 | - | 2,661 | |
Provision for loan and lease losses | 116 | 162 | 71 | 1 | -174 | - | 176 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 979 | 917 | 175 | 108 | 306 | - | 2,485 | ||
Noninterest income: | |||||||||
Mortgage banking net revenue | - | 10 | 563 | 1 | - | - | 574 | ||
Service charges on deposits | 179 | 226 | - | 2 | - | - | 407 | ||
Corporate banking revenue | 295 | 10 | - | 2 | - | - | 307 | ||
Investment advisory revenue | 4 | 110 | - | 289 | - | (108)(a) | 295 | ||
Card and processing revenue | 39 | 215 | - | 3 | -56 | - | 201 | ||
Other noninterest income | 72 | 65 | 37 | 8 | 526 | - | 708 | ||
Securities gains, net | - | - | 2 | - | 17 | - | 19 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 13 | - | - | - | 13 | ||
Total noninterest income | 589 | 636 | 615 | 305 | 487 | -108 | 2,524 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 174 | 342 | 148 | 100 | 429 | - | 1,193 | ||
Employee benefits | 33 | 100 | 34 | 20 | 93 | - | 280 | ||
Net occupancy expense | 17 | 139 | 6 | 7 | 61 | - | 230 | ||
Technology and communications | 8 | 3 | 1 | - | 139 | - | 151 | ||
Card and processing expense | 6 | 91 | - | - | - | - | 97 | ||
Equipment expense | 3 | 43 | 1 | - | 38 | - | 85 | ||
Other noninterest expense | 603 | 557 | 366 | 217 | -699 | -108 | 936 | ||
Total noninterest expense | 844 | 1,275 | 556 | 344 | 61 | -108 | 2,972 | ||
Income before income taxes | 724 | 278 | 234 | 69 | 732 | - | 2,037 | ||
Applicable income tax expense | 133 | 98 | 83 | 24 | 275 | - | 613 | ||
Net income | 591 | 180 | 151 | 45 | 457 | - | 1,424 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | -9 | - | -9 | ||
Net income attributable to Bancorp | 591 | 180 | 151 | 45 | 466 | - | 1,433 | ||
Dividends on preferred stock | - | - | - | - | 18 | - | 18 | ||
Net income available to common shareholders | $ | 591 | 180 | 151 | 45 | 448 | - | 1,415 | |
Total goodwill | $ | 613 | 1,655 | - | 148 | - | - | 2,416 | |
Total assets | $ | 50,438 | 49,282 | 23,015 | 9,182 | -6,244 | - | 125,673 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
General | |||||||||
Commercial | Branch | Consumer | Investment | Corporate | |||||
($ in millions) | Banking | Banking | Lending | Advisors | and Other | Eliminations | Total | ||
Nine months ended September 30, 2012 | |||||||||
Net interest income | $ | 1,049 | 1,021 | 234 | 87 | 305 | - | 2,696 | |
Provision for loan and lease losses | 181 | 226 | 140 | 9 | -329 | - | 227 | ||
Net interest income after provision for loan | |||||||||
and lease losses | 868 | 795 | 94 | 78 | 634 | - | 2,469 | ||
Noninterest income: | |||||||||
Mortgage banking net revenue | - | 10 | 577 | 1 | - | - | 588 | ||
Service charges on deposits | 166 | 219 | - | 2 | - | - | 387 | ||
Corporate banking revenue | 286 | 11 | - | 2 | - | - | 299 | ||
Investment advisory revenue | 5 | 96 | - | 275 | - | (95)(a) | 281 | ||
Card and processing revenue | 35 | 202 | - | 3 | -53 | - | 187 | ||
Other noninterest income | 45 | 60 | 30 | 19 | 205 | - | 359 | ||
Securities gains, net | - | - | - | - | 13 | - | 13 | ||
Securities gains, net - non-qualifying hedges on | |||||||||
mortgage servicing rights | - | - | 5 | - | - | - | 5 | ||
Total noninterest income | 537 | 598 | 612 | 302 | 165 | -95 | 2,119 | ||
Noninterest expense: | |||||||||
Salaries, wages and incentives | 166 | 337 | 139 | 103 | 446 | - | 1,191 | ||
Employee benefits | 32 | 98 | 30 | 20 | 94 | - | 274 | ||
Net occupancy expense | 16 | 140 | 6 | 8 | 57 | - | 227 | ||
Technology and communications | 7 | 3 | 1 | - | 133 | - | 144 | ||
Card and processing expense | 3 | 86 | - | - | 1 | - | 90 | ||
Equipment expense | 2 | 40 | 1 | 1 | 38 | - | 82 | ||
Other noninterest expense | 603 | 496 | 319 | 199 | -612 | -95 | 910 | ||
Total noninterest expense | 829 | 1,200 | 496 | 331 | 157 | -95 | 2,918 | ||
Income before income taxes | 576 | 193 | 210 | 49 | 642 | - | 1,670 | ||
Applicable income tax expense | 90 | 68 | 74 | 17 | 242 | - | 491 | ||
Net income | 486 | 125 | 136 | 32 | 400 | - | 1,179 | ||
Less: Net income attributable to noncontrolling interests | - | - | - | - | 1 | - | 1 | ||
Net income attributable to Bancorp | 486 | 125 | 136 | 32 | 399 | - | 1,178 | ||
Dividends on preferred stock | - | - | - | - | 26 | - | 26 | ||
Net income available to common shareholders | $ | 486 | 125 | 136 | 32 | 373 | - | 1,152 | |
Total goodwill | $ | 613 | 1,656 | - | 148 | - | - | 2,417 | |
Total assets | $ | 47,495 | 48,003 | 23,640 | 8,024 | -9,679 | - | 117,483 | |
Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. | |||||||||
Noncash_Investing_and_Financin
Noncash Investing and Financing Activities (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Payments: | ' | ' |
Interest | $343 | $417 |
Income Taxes Paid | 386 | 262 |
Transfers: | ' | ' |
Portfolio loans to loans held for sale | 603 | 29 |
Held for sale loans to portfolio loans | 36 | 72 |
Portfolio loans to OREO | 167 | 219 |
Loans held for sale to OREO | $4 | $23 |
AvailableforSale_and_HeldtoMat
Available-for-Sale and Held-to-Maturity Securities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Investment Holdings | ' | ' | ||
Amortized Cost | $17,665 | $14,571 | ||
Total Unrealized Losses | -42 | -21 | ||
Available for sale securities | 18,080 | [1] | 15,207 | [1] |
Amortized Cost | 265 | [2] | 284 | [2] |
Held-to-maturity securities | 265 | 284 | ||
Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 17,665 | 14,571 | ||
Unrealized Gains | 457 | 657 | ||
Total Unrealized Losses | -42 | -21 | ||
Available for sale securities | 18,080 | 15,207 | ||
Held-to-maturity Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 265 | 284 | ||
Held-to-maturity securities | 265 | 284 | ||
US Treasury and Government | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 26 | 41 | ||
Available for sale securities | 26 | 41 | ||
US Government-sponsored Enterprises Debt Securities | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 1,524 | 1,730 | ||
Unrealized Gains | 129 | 181 | ||
Available for sale securities | 1,653 | 1,911 | ||
US States and Political Subdivisions Debt Securities | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 201 | 203 | ||
Unrealized Gains | 4 | 9 | ||
Available for sale securities | 205 | 212 | ||
US States and Political Subdivisions Debt Securities | Held-to-maturity Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 264 | 282 | ||
Held-to-maturity securities | 264 | 282 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ' | ' | ||
Investment Holdings | ' | ' | ||
Total Unrealized Losses | -25 | -18 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 11,149 | [3] | 8,403 | [3] |
Unrealized Gains | 229 | [3] | 345 | [3] |
Total Unrealized Losses | -25 | [3] | -18 | [3] |
Available for sale securities | 11,353 | [3] | 8,730 | [3] |
Other Debt Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Total Unrealized Losses | -16 | -3 | ||
Other Debt Securities | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 3,773 | 3,161 | ||
Unrealized Gains | 82 | 119 | ||
Total Unrealized Losses | -16 | -3 | ||
Available for sale securities | 3,839 | 3,277 | ||
Other Debt Securities | Held-to-maturity Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 1 | 2 | ||
Held-to-maturity securities | 1 | 2 | ||
Other Debt And Equity Securities [Member] | ' | ' | ||
Investment Holdings | ' | ' | ||
Total Unrealized Losses | -1 | ' | ||
Other Debt And Equity Securities [Member] | Available-for-sale Securities | ' | ' | ||
Investment Holdings | ' | ' | ||
Amortized Cost | 992 | [4] | 1,033 | [4] |
Unrealized Gains | 13 | [4] | 3 | [4] |
Total Unrealized Losses | -1 | [4] | ' | |
Available for sale securities | $1,004 | [4] | $1,036 | [4] |
[1] | Amortized cost of $17,665 and $14,571 at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Fair value of $265 and $284 at September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Includes interest-only mortgage backed securities of $279 and $408 as of September 30, 2013 and December 31, 2012, respectively, recorded at fair value with fair value changes recorded in securities gains, net and securities gains, net-non-qualifying hedges on mortgage servicing rights in the Condensed Consolidated Statements of Income. | |||
[4] | Other securities consist of FHLB and FRB restricted stock holdings of $497 and $349, respectively, at September 30, 2013 and $497 and $347, respectively, at December 31, 2012, that are carried at cost, and certain mutual fund and equity security holdings. |
AvailableforSale_and_HeldtoMat1
Available-for-Sale and Held-to-Maturity Securities (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Investment Holdings | ' | ' | ||
FHLB, restricted stock holdings | $497 | $497 | ||
Federal Reserve Bank, restricted stock holdings | 349 | 347 | ||
Available-for-sale and other securities | 18,080 | [1] | 15,207 | [1] |
Interest-Only-Strip [Member] | ' | ' | ||
Investment Holdings | ' | ' | ||
Available-for-sale and other securities | $279 | $408 | ||
[1] | Amortized cost of $17,665 and $14,571 at September 30, 2013 and December 31, 2012, respectively. |
Realized_Gains_and_Losses_Reco
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Gain (loss) on investments | ' | ' | ' | ' | ||||
Realized gains | $14 | $29 | $54 | $57 | ||||
Realized losses | -4 | ' | -90 | -2 | ||||
OTTI | 45 | 23 | 57 | 39 | ||||
Net realized gains (losses) | ($35) | [1] | $6 | [1] | ($93) | [1] | $16 | [1] |
[1] | Excludes net gains on interest-only mortgage-backed securities of $40 for the three months ended September 30, 2013 and net gains on interest-only mortgage backed securities of $121 for the nine months ended September 30, 2013, respectively. |
Realized_Gains_and_Losses_Reco1
Realized Gains and Losses Recognized in Income from Available-for-Sale Securities (Parenthetical) (Detail) (Interest-Only-Strip [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Interest-Only-Strip [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Net Unrealized Gain (Loss) on Available for Sale Securities | $40 | $121 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investment Holdings | ' | ' | ' | ' | ' |
Trading securities | $246,000,000 | ' | $246,000,000 | ' | $207,000,000 |
Securities with a fair value, pledged as collateral | 8,900,000,000 | ' | 8,900,000,000 | ' | 12,600,000,000 |
Gross realized gains on trading securities | ' | ' | 1,000,000 | 1,000,000 | ' |
Marketable Securities, Realized Loss, Other than Temporary Impairments, Amount | 45,000,000 | 23,000,000 | 57,000,000 | 39,000,000 | ' |
Net Unrealized Gain(Loss) on Trading Securities | 2,000,000 | ' | 3,000,000 | 1,000,000 | ' |
Available-for-sale Securities | ' | ' | ' | ' | ' |
Investment Holdings | ' | ' | ' | ' | ' |
Marketable Securities, Realized Loss, Other than Temporary Impairments, Amount | $45,000,000 | $23,000,000 | $57,000,000 | $39,000,000 | ' |
Amortized_Cost_and_Fair_Value_
Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Debt securities: | ' | ' | ||
Total | $17,665 | $14,571 | ||
Debt securities: | ' | ' | ||
Fair Value | 18,080 | [1] | 15,207 | [1] |
Debt securities: | ' | ' | ||
Total | 265 | [2] | 284 | [2] |
Debt securities: | ' | ' | ||
Fair Value | 265 | 284 | ||
Available-for-sale Securities | ' | ' | ||
Debt securities: | ' | ' | ||
Under 1 year | 282 | ' | ||
1-5 years | 4,984 | ' | ||
5-10 years | 7,806 | ' | ||
Over 10 years | 3,601 | ' | ||
Other securities | 992 | ' | ||
Total | 17,665 | 14,571 | ||
Debt securities: | ' | ' | ||
Under 1 year | 291 | ' | ||
1-5 years | 5,215 | ' | ||
5-10 years | 7,906 | ' | ||
Over 10 years | 3,664 | ' | ||
Other securities | 1,004 | ' | ||
Fair Value | 18,080 | 15,207 | ||
Held-to-maturity Securities [Member] | ' | ' | ||
Debt securities: | ' | ' | ||
Under 1 year | 72 | ' | ||
1-5 years | 174 | ' | ||
5-10 years | 18 | ' | ||
Over 10 years | 1 | ' | ||
Total | 265 | 284 | ||
Debt securities: | ' | ' | ||
Under 1 year | 72 | ' | ||
1-5 years | 174 | ' | ||
5-10 years | 18 | ' | ||
Over 10 years | 1 | ' | ||
Fair Value | $265 | $284 | ||
[1] | Amortized cost of $17,665 and $14,571 at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Fair value of $265 and $284 at September 30, 2013 and December 31, 2012, respectively. |
Fair_Value_and_Gross_Unrealize
Fair Value and Gross Unrealized Losses on Available-for-Sale Securities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | $3,392 | $2,239 |
Less than 12 months Unrealized Losses | -39 | -21 |
12 months or more Fair Value | 102 | ' |
12 months or more Unrealized Losses | -3 | ' |
Total Fair Value | 3,494 | 2,239 |
Total Unrealized Losses | -42 | -21 |
US States and Political Subdivisions Debt Securities | ' | ' |
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | 31 | ' |
Total Fair Value | 31 | ' |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ' | ' |
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | 2,276 | 1,784 |
Less than 12 months Unrealized Losses | -25 | -18 |
12 months or more Fair Value | 2 | ' |
Total Fair Value | 2,278 | 1,784 |
Total Unrealized Losses | -25 | -18 |
Other Debt Securities | ' | ' |
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | 1,048 | 454 |
Less than 12 months Unrealized Losses | -13 | -3 |
12 months or more Fair Value | 100 | ' |
12 months or more Unrealized Losses | -3 | ' |
Total Fair Value | 1,148 | 454 |
Total Unrealized Losses | -16 | -3 |
Other Debt And Equity Securities [Member] | ' | ' |
Investments, Unrealized Loss Position | ' | ' |
Less than 12 months Fair Value | 37 | 1 |
Less than 12 months Unrealized Losses | -1 | ' |
Total Fair Value | 37 | 1 |
Total Unrealized Losses | ($1) | ' |
Loans_and_Leases_Classified_by
Loans and Leases Classified by Primary Purpose (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Loans and leases held for sale: | ' | ' | ||
Commercial and industrial loans | $7 | $39 | ||
Commercial mortgage loans | 6 | 13 | ||
Commercial construction loans | 4 | 9 | ||
Residential mortgage loans | 1,298 | 2,856 | ||
Other consumer loans and leases | 15 | 22 | ||
Total loans and leases held for sale | 1,330 | [1] | 2,939 | [1] |
Portfolio loans and leases: | ' | ' | ||
Commercial and industrial loans | 38,253 | 36,038 | ||
Commercial mortgage loans | 8,052 | [2] | 9,103 | [2] |
Commercial construction loans | 875 | 698 | ||
Commercial leases | 3,572 | 3,549 | ||
Total commercial loans and leases | 50,752 | 49,388 | ||
Residential mortgage loans | 12,534 | [3] | 12,017 | [3] |
Home equity | 9,356 | 10,018 | ||
Automobile loans | 12,072 | [2] | 11,972 | [2] |
Credit card | 2,157 | 2,097 | ||
Other consumer loans and leases | 360 | 290 | ||
Total consumer loans and leases | 36,479 | 36,394 | ||
Portfolio loans and leases | $87,231 | $85,782 | ||
[1] | Includes $1,298 and $2,856 of residential mortgage loans held for sale measured at fair value at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. | |||
[3] | Includes $89 and $76 of residential mortgage loans measured at fair value at September 30, 2013 and December 31, 2012, respectively. |
Loans_and_Leases_Additional_In
Loans and Leases - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable | ' | ' |
Unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments | $111,000,000 | $73,000,000 |
Loans and Leases Net of Unearned Income | 711,000,000 | 758,000,000 |
Loans pledged at the FHLB | 11,200,000,000 | 12,700,000,000 |
Loans pledged at the FRB | $33,000,000,000 | $30,900,000,000 |
Total_Loans_And_Leases_Managed
Total Loans And Leases Managed By The Bancorp (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | $87,231 | ' | $85,782 |
Commercial and Industrial Loans | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 38,260 | ' | 36,077 |
Balance of Loans 90 days or More Past Due | 3 | ' | 1 |
Net Credit Losses | 102 | 129 | ' |
Commercial Mortgage Loans | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 8,058 | ' | 9,116 |
Balance of Loans 90 days or More Past Due | ' | ' | 22 |
Net Credit Losses | 39 | 83 | ' |
Commercial Construction | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 879 | ' | 707 |
Balance of Loans 90 days or More Past Due | ' | ' | 1 |
Net Credit Losses | 1 | 22 | ' |
Commercial Leases | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 3,572 | ' | 3,549 |
Net Credit Losses | 1 | 8 | ' |
Residential Mortgage | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 13,832 | ' | 14,873 |
Balance of Loans 90 days or More Past Due | 73 | ' | 75 |
Net Credit Losses | 47 | 99 | ' |
Home Equity | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 9,356 | ' | 10,018 |
Balance of Loans 90 days or More Past Due | 46 | ' | 58 |
Net Credit Losses | 71 | 122 | ' |
Automobile Loan | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 12,072 | ' | 11,972 |
Balance of Loans 90 days or More Past Due | 8 | ' | 8 |
Net Credit Losses | 15 | 23 | ' |
Credit Card | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 2,157 | ' | 2,097 |
Balance of Loans 90 days or More Past Due | 26 | ' | 30 |
Net Credit Losses | 57 | 56 | ' |
Other Consumer Loans and Leases | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 375 | ' | 312 |
Net Credit Losses | 20 | 15 | ' |
Loans Held-for-Sale | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 1,330 | ' | 2,939 |
Loans and Leases Managed and Securitized | ' | ' | ' |
Assets that Continue to be Recognized, Securitized or Asset-backed Financing Arrangement Assets and any Other Financial Assets Managed Together | ' | ' | ' |
Balance | 88,561 | ' | 88,721 |
Balance of Loans 90 days or More Past Due | 156 | ' | 195 |
Net Credit Losses | $353 | $557 | ' |
Summary_of_Transactions_in_the
Summary of Transactions in the ALLL by Portfolio segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Beginning Balance | $1,735 | $2,016 | $1,854 | [1] | $2,255 | |
Losses charged off | -141 | -188 | -454 | -660 | ||
Recoveries of losses previously charged off | -32 | -32 | -101 | -103 | ||
Provision for loan and lease losses | 51 | 65 | 176 | 227 | ||
Ending Balance | 1,677 | [1] | 1,925 | 1,677 | [1] | 1,925 |
Commercial Portfolio Segment | ' | ' | ' | ' | ||
Beginning Balance | 1,183 | 1,347 | 1,236 | [2] | 1,527 | |
Losses charged off | -61 | -76 | -189 | -289 | ||
Recoveries of losses previously charged off | -17 | -14 | -46 | -47 | ||
Provision for loan and lease losses | 8 | 2 | 54 | 2 | ||
Ending Balance | 1,147 | [3] | 1,287 | 1,147 | [3] | 1,287 |
Residential Mortgage Loans | ' | ' | ' | ' | ||
Beginning Balance | 201 | 232 | 229 | [2] | 227 | |
Losses charged off | -15 | -28 | -55 | -104 | ||
Recoveries of losses previously charged off | -3 | -2 | -8 | -5 | ||
Provision for loan and lease losses | 5 | 26 | 12 | 104 | ||
Ending Balance | 194 | [3] | 232 | 194 | [3] | 232 |
Consumer Portfolio Segment | ' | ' | ' | ' | ||
Beginning Balance | 247 | 316 | 278 | [2] | 365 | |
Losses charged off | -65 | -84 | -210 | -267 | ||
Recoveries of losses previously charged off | -12 | -16 | -47 | -51 | ||
Provision for loan and lease losses | 41 | 42 | 120 | 141 | ||
Ending Balance | 235 | [3] | 290 | 235 | [3] | 290 |
Unallocated | ' | ' | ' | ' | ||
Beginning Balance | 104 | 121 | 111 | [2] | 136 | |
Provision for loan and lease losses | -3 | -5 | -10 | -20 | ||
Ending Balance | $101 | [3] | $116 | $101 | [3] | $116 |
[1] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. | |||||
[2] | Includes $11 related to leveraged leases. | |||||
[3] | Includes $10 related to leveraged leases. |
Summary_of_the_ALLL_and_Relate
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | $353 | [1] | ' | $294 | [2] | ' | ' | ' |
Collectively evaluated for impairment | 1,223 | [1] | ' | 1,447 | [2] | ' | ' | ' |
Loans acquired with deteriorated credit quality | ' | ' | 2 | [2] | ' | ' | ' | |
Unallocated | 101 | [1] | ' | 111 | [2] | ' | ' | ' |
Total allowance for loan and lease losses | 1,677 | [3] | 1,735 | 1,854 | [3] | 1,925 | 2,016 | 2,255 |
Individually evaluated for impairment | 3,228 | [4] | ' | 2,822 | [5] | ' | ' | ' |
Collectively evaluated for impairment | 83,909 | [4] | ' | 82,877 | [5] | ' | ' | ' |
Loans acquired with deteriorated credit quality | 5 | [4] | ' | 7 | [5] | ' | ' | ' |
Total Loans and Leases | 87,142 | [6] | ' | 85,706 | [7],[8] | ' | ' | ' |
Commercial Portfolio Segment | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 164 | [1],[9] | ' | 95 | [2] | ' | ' | ' |
Collectively evaluated for impairment | 983 | [1] | ' | 1,140 | [2] | ' | ' | ' |
Loans acquired with deteriorated credit quality | ' | ' | 1 | [2] | ' | ' | ' | |
Total allowance for loan and lease losses | 1,147 | [1] | 1,183 | 1,236 | [2] | 1,287 | 1,347 | 1,527 |
Individually evaluated for impairment | 1,396 | [4],[9] | ' | 980 | [5] | ' | ' | ' |
Collectively evaluated for impairment | 49,356 | [4] | ' | 48,407 | [5] | ' | ' | ' |
Loans acquired with deteriorated credit quality | ' | ' | 1 | [5] | ' | ' | ' | |
Total Loans and Leases | 50,752 | [4] | ' | 49,388 | [5] | ' | ' | ' |
Residential Mortgage Loans | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 135 | [1] | ' | 137 | [2] | ' | ' | ' |
Collectively evaluated for impairment | 59 | [1] | ' | 91 | [2] | ' | ' | ' |
Loans acquired with deteriorated credit quality | ' | ' | 1 | [2] | ' | ' | ' | |
Total allowance for loan and lease losses | 194 | [1] | 201 | 229 | [2] | 232 | 232 | 227 |
Individually evaluated for impairment | 1,316 | [4] | ' | 1,298 | [5] | ' | ' | ' |
Collectively evaluated for impairment | 11,124 | [4] | ' | 10,637 | [5] | ' | ' | ' |
Loans acquired with deteriorated credit quality | 5 | [4] | ' | 6 | [5] | ' | ' | ' |
Total Loans and Leases | 12,445 | [4] | ' | 11,941 | [5] | ' | ' | ' |
Consumer Portfolio Segment | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | ||
Individually evaluated for impairment | 54 | [1] | ' | 62 | [2] | ' | ' | ' |
Collectively evaluated for impairment | 181 | [1] | ' | 216 | [2] | ' | ' | ' |
Total allowance for loan and lease losses | 235 | [1] | 247 | 278 | [2] | 290 | 316 | 365 |
Individually evaluated for impairment | 516 | [4] | ' | 544 | [5] | ' | ' | ' |
Collectively evaluated for impairment | 23,429 | [4] | ' | 23,833 | [5] | ' | ' | ' |
Total Loans and Leases | 23,945 | [4] | ' | 24,377 | [5] | ' | ' | ' |
Unallocated | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | ||
Unallocated | 101 | [1] | ' | 111 | [2] | ' | ' | ' |
Total allowance for loan and lease losses | $101 | [1] | $104 | $111 | [2] | $116 | $121 | $136 |
[1] | Includes $10 related to leveraged leases. | |||||||
[2] | Includes $11 related to leveraged leases. | |||||||
[3] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. | |||||||
[4] | Excludes $89 of residential mortgage loans measured at fair value, and includes $875 of leveraged leases, net of unearned income. | |||||||
[5] | Excludes $76 of residential mortgage loans measured at fair value, and includes $862 of leveraged leases, net of unearned income. | |||||||
[6] | Excludes $89 of loans measured at fair value. | |||||||
[7] | Excludes $76 of loans measured at fair value. | |||||||
[8] | Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | |||||||
[9] | Includes five restructured nonaccrual loans at September 30, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $29 and an allowance of $11. |
Summary_of_the_ALLL_and_Relate1
Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment (Parenthetical) (Detail) (USD $) | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | |||
Allowance for loan and lease losses | $1,677 | [1] | $1,925 | $1,735 | $1,854 | [1] | $2,016 | $2,255 | |
Portfolio loans and leases | 87,142 | [2] | ' | ' | 85,706 | [3],[4] | ' | ' | |
Number of Contracts | 8,920 | [5],[6] | 11,498 | [5],[6] | ' | ' | ' | ' | |
Recorded Investment | 3,199 | [7] | ' | ' | 2,823 | [8] | ' | ' | |
Leveraged Leases | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | |||
Allowance for loan and lease losses | 10 | ' | ' | 11 | ' | ' | |||
Portfolio loans and leases | 875 | ' | ' | 862 | ' | ' | |||
Residential Mortgage Loans | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | |||
Portfolio loans and leases at fair value | 89 | ' | ' | 76 | ' | ' | |||
Variable Interest Entity, Primary Beneficiary | ' | ' | ' | ' | ' | ' | |||
Financing Receivable, Allowance for Credit Losses | ' | ' | ' | ' | ' | ' | |||
Allowance for loan and lease losses | 11 | ' | ' | ' | ' | ' | |||
Number of Contracts | 5 | ' | ' | ' | ' | ' | |||
Recorded Investment | $29 | ' | ' | ' | ' | ' | |||
[1] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. | ||||||||
[2] | Excludes $89 of loans measured at fair value. | ||||||||
[3] | Excludes $76 of loans measured at fair value. | ||||||||
[4] | Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | ||||||||
[5] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | ||||||||
[6] | Represents number of loans post-modification. | ||||||||
[7] | Includes $499, $1,233 and $461, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $241, $83 and $55, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | ||||||||
[8] | Includes $431, $1,175 and $480, respectively, of commercial, residential mortgage and consumer TDRs on accrual status;$177, $123 and $64, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. |
Summary_of_the_Credit_Risk_Pro
Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | $87,142 | [1] | $85,706 | [2],[3] |
Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 50,752 | [4] | 49,388 | [5] |
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 38,253 | 36,038 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 4,572 | 4,876 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,480 | 4,227 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 875 | 698 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,572 | 3,549 | ||
Pass | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 46,239 | 44,340 | ||
Pass | Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 35,499 | 33,521 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,889 | 3,934 | ||
Pass | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 2,693 | 2,958 | ||
Pass | Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 678 | 444 | ||
Pass | Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,480 | 3,483 | ||
Special Mention | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 1,470 | 2,007 | ||
Special Mention | Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 903 | 1,113 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 214 | 338 | ||
Special Mention | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 268 | 449 | ||
Special Mention | Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 35 | 59 | ||
Special Mention | Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 50 | 48 | ||
Risk Level, Substandard | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 3,020 | 3,010 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 1,828 | 1,379 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 469 | 603 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 519 | 815 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 162 | 195 | ||
Risk Level, Substandard | Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 42 | 18 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 23 | 31 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | 23 | 25 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | ' | 1 | ||
Risk Level, Doubtful | Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Total loans and leases | ' | $5 | ||
[1] | Excludes $89 of loans measured at fair value. | |||
[2] | Excludes $76 of loans measured at fair value. | |||
[3] | Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | |||
[4] | Excludes $89 of residential mortgage loans measured at fair value, and includes $875 of leveraged leases, net of unearned income. | |||
[5] | Excludes $76 of residential mortgage loans measured at fair value, and includes $862 of leveraged leases, net of unearned income. |
Summary_of_the_Credit_Risk_Pro1
Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Total loans and leases | $87,142 | [1] | $85,706 | [2],[3] |
Residential Mortgage Loans | ' | ' | ||
Total loans and leases | 12,445 | [4] | 11,941 | [5] |
Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 23,945 | [4] | 24,377 | [5] |
Home Equity | Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 9,356 | 10,018 | ||
Automobile Loans | Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 12,072 | 11,972 | ||
Credit Card | Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 2,157 | 2,097 | ||
Consumer Other Financing Receivable | Consumer Portfolio Segment | ' | ' | ||
Total loans and leases | 360 | 290 | ||
Performing Financing Receivable | ' | ' | ||
Total loans and leases | 36,141 | 35,986 | ||
Performing Financing Receivable | Residential Mortgage | ' | ' | ||
Total loans and leases | 12,279 | [6] | 11,704 | [6] |
Performing Financing Receivable | Home Equity | ' | ' | ||
Total loans and leases | 9,308 | 9,965 | ||
Performing Financing Receivable | Automobile Loans | ' | ' | ||
Total loans and leases | 12,071 | 11,970 | ||
Performing Financing Receivable | Credit Card | ' | ' | ||
Total loans and leases | 2,123 | 2,058 | ||
Performing Financing Receivable | Consumer Other Financing Receivable | ' | ' | ||
Total loans and leases | 360 | 289 | ||
Nonperforming Financing Receivable | ' | ' | ||
Total loans and leases | 249 | 332 | ||
Nonperforming Financing Receivable | Residential Mortgage | ' | ' | ||
Total loans and leases | 166 | [6] | 237 | [6] |
Nonperforming Financing Receivable | Home Equity | ' | ' | ||
Total loans and leases | 48 | 53 | ||
Nonperforming Financing Receivable | Automobile Loans | ' | ' | ||
Total loans and leases | 1 | 2 | ||
Nonperforming Financing Receivable | Credit Card | ' | ' | ||
Total loans and leases | 34 | 39 | ||
Nonperforming Financing Receivable | Consumer Other Financing Receivable | ' | ' | ||
Total loans and leases | ' | $1 | ||
[1] | Excludes $89 of loans measured at fair value. | |||
[2] | Excludes $76 of loans measured at fair value. | |||
[3] | Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | |||
[4] | Excludes $89 of residential mortgage loans measured at fair value, and includes $875 of leveraged leases, net of unearned income. | |||
[5] | Excludes $76 of residential mortgage loans measured at fair value, and includes $862 of leveraged leases, net of unearned income. | |||
[6] | Excludes $89 and $76 of loans measured at fair value at September 30, 2013 and December 31, 2012, respectively. |
Summary_of_the_Credit_Risk_Pro2
Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class (Parenthetical) (Detail) (Residential Mortgage, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Residential Mortgage | ' | ' |
Portfolio loans and leases at fair value | $89 | $76 |
Summarizes_the_Bancorps_Record
Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | $86,187 | [1],[2] | $84,381 | [1],[3],[4] |
30-89 Days Past Due | 304 | [1],[2] | 413 | [1],[3],[4] |
90 Days and Greater | 651 | [1],[2] | 912 | [1],[3],[4] |
Total Past Due | 955 | [2] | 1,325 | [3],[4] |
Total Loans and Leases | 87,142 | [2] | 85,706 | [3],[4] |
90-Days past Due and Still Accruing | 156 | [2] | 195 | [3],[4] |
Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Total Loans and Leases | 50,752 | [5] | 49,388 | [6] |
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 38,083 | [1] | 35,826 | [1] |
30-89 Days Past Due | 36 | [1] | 46 | [1] |
90 Days and Greater | 134 | [1] | 166 | [1] |
Total Past Due | 170 | 212 | ||
Total Loans and Leases | 38,253 | 36,038 | ||
90-Days past Due and Still Accruing | 3 | 1 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 4,492 | [1] | 4,752 | [1] |
30-89 Days Past Due | 8 | [1] | 29 | [1] |
90 Days and Greater | 72 | [1] | 95 | [1] |
Total Past Due | 80 | 124 | ||
Total Loans and Leases | 4,572 | 4,876 | ||
90-Days past Due and Still Accruing | ' | 22 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 3,423 | [1] | 4,094 | [1] |
30-89 Days Past Due | 11 | [1] | 21 | [1] |
90 Days and Greater | 46 | [1] | 112 | [1] |
Total Past Due | 57 | 133 | ||
Total Loans and Leases | 3,480 | 4,227 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 844 | [1] | 622 | [1] |
90 Days and Greater | 31 | [1] | 76 | [1] |
Total Past Due | 31 | 76 | ||
Total Loans and Leases | 875 | 698 | ||
90-Days past Due and Still Accruing | ' | 1 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 3,571 | [1] | 3,546 | [1] |
30-89 Days Past Due | ' | 2 | [1] | |
90 Days and Greater | 1 | [1] | 1 | [1] |
Total Past Due | 1 | 3 | ||
Total Loans and Leases | 3,572 | 3,549 | ||
Residential Mortgage | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 12,142 | [1],[2],[7] | 11,547 | [1],[3],[8] |
30-89 Days Past Due | 69 | [1],[2],[7] | 87 | [1],[3],[8] |
90 Days and Greater | 234 | [1],[2],[7] | 307 | [1],[3],[8] |
Total Past Due | 303 | [2],[7] | 394 | [3],[8] |
Total Loans and Leases | 12,445 | [2],[7] | 11,941 | [3],[8] |
90-Days past Due and Still Accruing | 73 | [2],[7] | 75 | [3],[8] |
Consumer Portfolio Segment | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Total Loans and Leases | 23,945 | [5] | 24,377 | [6] |
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 9,166 | [1] | 9,782 | [1] |
30-89 Days Past Due | 96 | [1] | 126 | [1] |
90 Days and Greater | 94 | [1] | 110 | [1] |
Total Past Due | 190 | 236 | ||
Total Loans and Leases | 9,356 | 10,018 | ||
90-Days past Due and Still Accruing | 46 | 58 | ||
Consumer Portfolio Segment | Automobile Loans | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 12,016 | [1] | 11,900 | [1] |
30-89 Days Past Due | 47 | [1] | 62 | [1] |
90 Days and Greater | 9 | [1] | 10 | [1] |
Total Past Due | 56 | 72 | ||
Total Loans and Leases | 12,072 | 11,972 | ||
90-Days past Due and Still Accruing | 8 | 8 | ||
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 2,092 | [1] | 2,025 | [1] |
30-89 Days Past Due | 35 | [1] | 38 | [1] |
90 Days and Greater | 30 | [1] | 34 | [1] |
Total Past Due | 65 | 72 | ||
Total Loans and Leases | 2,157 | 2,097 | ||
90-Days past Due and Still Accruing | 26 | 30 | ||
Consumer Portfolio Segment | Consumer Other Financing Receivable | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ||
Current Loans and Leases | 358 | [1] | 287 | [1] |
30-89 Days Past Due | 2 | [1] | 2 | [1] |
90 Days and Greater | ' | 1 | [1] | |
Total Past Due | 2 | 3 | ||
Total Loans and Leases | $360 | $290 | ||
[1] | Includes accrual and nonaccrual loans and leases. | |||
[2] | Excludes $89 of loans measured at fair value. | |||
[3] | Excludes $76 of loans measured at fair value. | |||
[4] | Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | |||
[5] | Excludes $89 of residential mortgage loans measured at fair value, and includes $875 of leveraged leases, net of unearned income. | |||
[6] | Excludes $76 of residential mortgage loans measured at fair value, and includes $862 of leveraged leases, net of unearned income. | |||
[7] | Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of September 30, 2013, $83 of these loans were 30-89 days past due and $379 were 90 days or more past due. The Bancorp recognized $1 and $2 of losses during the three and nine months ended September 30, 2013, respectively, due to claim denials and curtailments associated with these advances. | |||
[8] | Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2012, $80 of these loans were 30-89 days past due and $414 were 90 days or more past due. The Bancorp recognized $2 of losses for the year ended December 31, 2012 due to claim denials and curtailments associated with these advances. |
Summarizes_the_Bancorps_Record1
Summarizes the Bancorp's Recorded Investment in Portfolio Loans and Leases by Age and Class (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ' | |||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | $304 | [1],[2] | $304 | [1],[2] | $413 | [1],[3],[4] |
Past Due 90 Days and Greater | 651 | [1],[2] | 651 | [1],[2] | 912 | [1],[3],[4] |
Residential Mortgage | ' | ' | ' | |||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ' | |||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 69 | [1],[2],[5] | 69 | [1],[2],[5] | 87 | [1],[3],[6] |
Past Due 90 Days and Greater | 234 | [1],[2],[5] | 234 | [1],[2],[5] | 307 | [1],[3],[6] |
Residential Mortgage Loans | ' | ' | ' | |||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ' | |||
Portfolio loans and leases at fair value | 89 | 89 | 76 | |||
Residential Mortgage Loans | Federal Housing Administration Loan | ' | ' | ' | |||
Financing Receivable, Recorded Investment, Past Due | ' | ' | ' | |||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 83 | 83 | 80 | |||
Past Due 90 Days and Greater | 379 | 379 | 414 | |||
Losses Due To Claim Denials And Curtailments | $1 | $2 | $2 | |||
[1] | Includes accrual and nonaccrual loans and leases. | |||||
[2] | Excludes $89 of loans measured at fair value. | |||||
[3] | Excludes $76 of loans measured at fair value. | |||||
[4] | Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | |||||
[5] | Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of September 30, 2013, $83 of these loans were 30-89 days past due and $379 were 90 days or more past due. The Bancorp recognized $1 and $2 of losses during the three and nine months ended September 30, 2013, respectively, due to claim denials and curtailments associated with these advances. | |||||
[6] | Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2012, $80 of these loans were 30-89 days past due and $414 were 90 days or more past due. The Bancorp recognized $2 of losses for the year ended December 31, 2012 due to claim denials and curtailments associated with these advances. |
Summarizes_the_Bancorps_Record2
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | $2,481 | $2,162 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 1,069 | 1,006 | ||
Unpaid Principal Balance | 3,550 | 3,168 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 2,293 | 1,967 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 906 | 856 | ||
Recorded Investment | 3,199 | [1] | 2,823 | [2] |
Allowance | 342 | 295 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 675 | 263 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 261 | 207 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 578 | 194 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 207 | 169 | ||
Allowance | 122 | 65 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 71 | [3] | 54 | |
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 107 | 107 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 59 | [3] | 43 | |
Impaired Financing Receivable With No Related Allowance Recorded Investment | 97 | 99 | ||
Allowance | 11 | [3] | 5 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 117 | 215 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 268 | 209 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 86 | 160 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 243 | 199 | ||
Allowance | 13 | 16 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 59 | 48 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 74 | 109 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 47 | 37 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 46 | 67 | ||
Allowance | 7 | 5 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 1 | 8 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 3 | 5 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1 | 8 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 3 | 5 | ||
Allowance | ' | 5 | ||
Residential Mortgage Loans | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 1,079 | 1,067 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 311 | 326 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 1,047 | 1,023 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 269 | 275 | ||
Allowance | 135 | 137 | ||
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 390 | 400 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 42 | 40 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 386 | 396 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 38 | 39 | ||
Allowance | 41 | 46 | ||
Consumer Portfolio Segment | Automobile Loans | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 24 | 31 | ||
Impaired Financing Receivable With No Related Allowance Unpaid Principal Balance | 3 | 3 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 24 | 30 | ||
Impaired Financing Receivable With No Related Allowance Recorded Investment | 3 | 3 | ||
Allowance | 3 | 4 | ||
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 63 | 74 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | 63 | 74 | ||
Allowance | 10 | 12 | ||
Consumer Portfolio Segment | Consumer Other Financing Receivable | ' | ' | ||
Impaired Financing Receivable Unpaid Principal Balance | ' | ' | ||
Impaired Financing Receivable With Related Allowance Unpaid Principal Balance | 2 | 2 | ||
Impaired Financing Receivable Recorded Investment Abstract | ' | ' | ||
Impaired Financing Receivable With Related Allowance Recorded Investment | $2 | $2 | ||
[1] | Includes $499, $1,233 and $461, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $241, $83 and $55, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||
[2] | Includes $431, $1,175 and $480, respectively, of commercial, residential mortgage and consumer TDRs on accrual status;$177, $123 and $64, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||
[3] | Excludes five restructured nonaccrual loans at September 30, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $29, a recorded investment of $29, and an allowance of $11. |
Summarizes_the_Bancorps_Record3
Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Impaired | ' | ' | ||
Unpaid Principal Balance | $3,550 | $3,168 | ||
Recorded Investment | 3,199 | [1] | 2,823 | [2] |
Allowance | 342 | 295 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Allowance | 122 | 65 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Allowance | 11 | [3] | 5 | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Allowance | 13 | 16 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 499 | 431 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 241 | 177 | ||
Commercial Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | Commercial Mortgage Loans, Owner Occupied | Variable Interest Entity, Primary Beneficiary | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Unpaid Principal Balance | 29 | ' | ||
Recorded Investment | 29 | ' | ||
Allowance | 11 | ' | ||
Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Allowance | 135 | 137 | ||
Residential Mortgage Loans | Troubled Debt Restructuring On Accrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 1,233 | 1,175 | ||
Residential Mortgage Loans | Troubled Debt Restructuring On Nonaccrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 83 | 123 | ||
Consumer Portfolio Segment | Troubled Debt Restructuring On Accrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | 461 | 480 | ||
Consumer Portfolio Segment | Troubled Debt Restructuring On Nonaccrual Status | ' | ' | ||
Financing Receivable, Impaired | ' | ' | ||
Recorded Investment | $55 | $64 | ||
[1] | Includes $499, $1,233 and $461, respectively, of commercial, residential mortgage and consumer TDRs on accrual status; $241, $83 and $55, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||
[2] | Includes $431, $1,175 and $480, respectively, of commercial, residential mortgage and consumer TDRs on accrual status;$177, $123 and $64, respectively, of commercial, residential mortgage and consumer TDRs on nonaccrual status. | |||
[3] | Excludes five restructured nonaccrual loans at September 30, 2013 associated with a consolidated variable interest entity, in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $29, a recorded investment of $29, and an allowance of $11. |
Summary_of_Average_Impaired_Lo
Summary of Average Impaired Loans and Leases and Interest Income by Class (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Average Recorded Investment | $2,963 | $2,984 | $2,829 | $2,997 | ||
Interest Income Recognized | 32 | 39 | 83 | 95 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ' | ' | ||
Average Recorded Investment | 553 | 439 | 403 | 467 | ||
Interest Income Recognized | 7 | 1 | 11 | 3 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ' | ' | ||
Average Recorded Investment | 145 | [1] | 168 | 140 | [1] | 157 |
Interest Income Recognized | 1 | [1] | 1 | 3 | [1] | 3 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ' | ' | ||
Average Recorded Investment | 322 | 387 | 326 | 356 | ||
Interest Income Recognized | 2 | 3 | 6 | 7 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ' | ' | ||
Average Recorded Investment | 103 | 149 | 109 | 176 | ||
Interest Income Recognized | 1 | ' | 3 | 2 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ' | ' | ||
Average Recorded Investment | 8 | 10 | 10 | 10 | ||
Residential Mortgage Loans | ' | ' | ' | ' | ||
Average Recorded Investment | 1,311 | 1,276 | 1,308 | 1,269 | ||
Interest Income Recognized | 13 | 13 | 39 | 38 | ||
Consumer Portfolio Segment | Home Equity | ' | ' | ' | ' | ||
Average Recorded Investment | 426 | 438 | 433 | 440 | ||
Interest Income Recognized | 6 | 19 | 17 | 37 | ||
Consumer Portfolio Segment | Automobile Loan | ' | ' | ' | ' | ||
Average Recorded Investment | 27 | 37 | 29 | 39 | ||
Interest Income Recognized | 1 | 1 | 1 | 2 | ||
Consumer Portfolio Segment | Credit Card | ' | ' | ' | ' | ||
Average Recorded Investment | 66 | 78 | 69 | 81 | ||
Interest Income Recognized | 1 | 1 | 3 | 3 | ||
Consumer Portfolio Segment | Consumer Other Financing Receivable | ' | ' | ' | ' | ||
Average Recorded Investment | $2 | $2 | $2 | $2 | ||
[1] | Excludes five restructured nonaccrual loans, associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $29 and $30 and an immaterial amount of interest income recognized for the three and nine months ended September 30, 2013, respectively. |
Summary_of_Average_Impaired_Lo1
Summary of Average Impaired Loans and Leases and Interest Income by Class (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Average impaired loans | $2,963 | $2,984 | $2,829 | $2,997 | ||
Interest Income Recognized | 32 | 39 | 83 | 95 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ' | ' | ||
Average impaired loans | 145 | [1] | 168 | 140 | [1] | 157 |
Interest Income Recognized | 1 | [1] | 1 | 3 | [1] | 3 |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | Variable Interest Entity, Primary Beneficiary | ' | ' | ' | ' | ||
Average impaired loans | $29 | ' | $30 | ' | ||
[1] | Excludes five restructured nonaccrual loans, associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $29 and $30 and an immaterial amount of interest income recognized for the three and nine months ended September 30, 2013, respectively. |
Summary_of_the_Bancorps_Nonper
Summary of the Bancorp's Nonperforming Loans and Leases by Class (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | $770 | [1],[2] | $1,029 | [1],[2] |
OREO and other repossessed property | 244 | [3] | 257 | [3] |
Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 521 | 697 | ||
Commercial Portfolio Segment | Commercial and Industrial Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 308 | 330 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 112 | [4] | 125 | [4] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Non Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 70 | 157 | ||
Commercial Portfolio Segment | Commercial Construction | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 30 | 76 | ||
Commercial Portfolio Segment | Commercial Leases | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 1 | 9 | ||
Residential Mortgage Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 166 | 237 | ||
Consumer Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 83 | 95 | ||
Consumer Portfolio Segment | Home Equity | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 48 | 53 | ||
Consumer Portfolio Segment | Automobile Loans | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 1 | 2 | ||
Consumer Portfolio Segment | Credit Card | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | 34 | 39 | ||
Consumer Portfolio Segment | Consumer Other Financing Receivable | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Nonperforming Loans and Leases | ' | $1 | ||
[1] | Excludes $11 and $29 of nonaccrual loans held for sale at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Includes $11 and $10 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at September 30, 2013 and December 31, 2012, respectively, and $2 and $1 of restructured nonaccrual government insured commercial loans at September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Excludes $75 and $72 of OREO related to government insured loans at September 30, 2013 and December 31, 2012, respectively. | |||
[4] | Excludes $22 of restructured nonaccrual loans at September 30, 2013 associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. |
Summary_of_the_Bancorps_Nonper1
Summary of the Bancorp's Nonperforming Loans and Leases by Class (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Modifications | ' | ' | ||
Loans held for sale | $1,330 | [1] | $2,939 | [1] |
OREO and other repossessed property | 244 | [2] | 257 | [2] |
Portfolio loans and leases | 87,142 | [3] | 85,706 | [4],[5] |
Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Portfolio loans and leases | 50,752 | [6] | 49,388 | [7] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Portfolio loans and leases | 4,572 | 4,876 | ||
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | Variable Interest Entity, Primary Beneficiary | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Restructured nonaccrual loans and leases | 22 | ' | ||
Government Insured | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
OREO and other repossessed property | 75 | 72 | ||
Nonperforming Financing Receivable | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Loans held for sale | 11 | 29 | ||
Portfolio loans and leases | 249 | 332 | ||
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Restructured nonaccrual loans and leases | 2 | 1 | ||
Nonperforming Financing Receivable | Government Insured | Commercial Portfolio Segment | Small Business Administration | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Portfolio loans and leases | $11 | $10 | ||
[1] | Includes $1,298 and $2,856 of residential mortgage loans held for sale measured at fair value at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Excludes $75 and $72 of OREO related to government insured loans at September 30, 2013 and December 31, 2012, respectively. | |||
[3] | Excludes $89 of loans measured at fair value. | |||
[4] | Excludes $76 of loans measured at fair value. | |||
[5] | Includes an immaterial amount of government insured commercial loans 30-89 and 90 days past due and accruing whose repayments are insured by the SBA at December 31, 2012. | |||
[6] | Excludes $89 of residential mortgage loans measured at fair value, and includes $875 of leveraged leases, net of unearned income. | |||
[7] | Excludes $76 of residential mortgage loans measured at fair value, and includes $862 of leveraged leases, net of unearned income. |
Troubled_Debt_Restructuring_Ad
Troubled Debt Restructuring Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Troubled Debt Restructuring | ' | ' |
Line of credit commitments for modified troubled debt restructurings | $41 | $28 |
Letter of credit commitments for modified troubled debt restructurings | $23 | $25 |
Summary_of_Loans_Modified_in_a
Summary of Loans Modified in a TDR (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||||||||||||||||||||||||||||||
Quarterly | Quarterly | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Residential Mortgage Loans | Residential Mortgage Loans | Residential Mortgage Loans | Residential Mortgage Loans | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | |||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial Loans | Commercial and Industrial Loans | Commercial and Industrial Loans | Commercial and Industrial Loans | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Non Owner Occupied | Commercial Mortgage Loans, Non Owner Occupied | Commercial Mortgage Loans, Non Owner Occupied | Commercial Mortgage Loans, Non Owner Occupied | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Leases | Commercial Leases | Quarterly | Quarterly | Home Equity | Home Equity | Home Equity | Home Equity | Automobile Loans | Automobile Loans | Automobile Loans | Automobile Loans | Credit Card | Credit Card | Credit Card | Credit Card | |||||||||||||||||||||||||||||||||||||||||||||
Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Modifications | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||
Number of Loans Modified in a TDR During the Period | 8,920 | [1],[2] | 11,498 | [1],[2] | 2,739 | [1],[2] | 3,370 | [1],[2] | 119 | [1],[2] | 61 | [1],[2] | 56 | [1],[2] | 20 | [1],[2] | 56 | [1],[2],[3] | 52 | [1],[2] | 32 | [1],[2] | 16 | [1],[2] | 50 | [1],[2] | 52 | [1],[2] | 16 | [1],[2] | 12 | [1],[2] | 3 | [1],[2] | 14 | [1],[2] | 1 | [1],[2] | 3 | [1],[2] | 6 | [1],[2] | 6 | [1],[2] | 1,266 | [1],[2] | 1,542 | [1],[2] | 452 | [1],[2] | 505 | [1],[2] | 621 | [1],[2] | 1,034 | [1],[2] | 117 | [1],[2] | 364 | [1],[2] | 363 | [1],[2] | 774 | [1],[2] | 115 | [1],[2] | 213 | [1],[2] | 6,442 | [1],[2] | 7,963 | [1],[2] | 1,950 | [1],[2] | 2,231 | [1],[2] |
Recorded Investment in Loans Modified in a TDR During the Period | $575 | [1] | $592 | [1] | $191 | [1] | $190 | [1] | $201 | [1] | $45 | [1] | $79 | [1] | $20 | [1] | $16 | [1],[3] | $45 | [1] | $7 | [1] | $29 | [1] | $65 | [1] | $78 | [1] | $11 | [1] | $11 | [1] | $16 | [1] | $36 | [1] | $9 | [1] | ' | $3 | [1] | $3 | [1] | $194 | [1] | $259 | [1] | $65 | [1] | $90 | [1] | $33 | [1] | $63 | [1] | $6 | [1] | $21 | [1] | $11 | [1] | $12 | [1] | $2 | [1] | $3 | [1] | $39 | [1] | $51 | [1] | $12 | [1] | $13 | [1] | |
Increase (Decrease) to ALLL Upon Modification | 8 | [1] | 6 | [1] | -5 | [1] | 4 | [1] | -13 | [1] | -10 | [1] | -13 | [1] | ' | -1 | [1],[3] | -6 | [1] | ' | -3 | [1] | -7 | [1] | -8 | [1] | -2 | [1] | -3 | [1] | -1 | [1] | -4 | [1] | ' | ' | ' | ' | 24 | [1] | 22 | [1] | 8 | [1] | 7 | [1] | ' | 3 | [1] | ' | 1 | [1] | 1 | [1] | 2 | [1] | ' | ' | 5 | [1] | 7 | [1] | 2 | [1] | 2 | [1] | ||||||||||
Charge-offs Recognized Upon Modification | $1 | [1] | $7 | [1] | ' | $7 | [1] | $1 | [1] | $5 | [1] | ' | $5 | [1] | ' | $2 | [1] | ' | $2 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||
[1] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Represents number of loans post-modification. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Excludes five loans modified in a TDR during the nine months ended September 30, 2013 associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR has a recorded investment of $29, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon modification. |
Summary_of_Loans_Modified_in_a1
Summary of Loans Modified in a TDR (Parenthetical) (Detail) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Financing Receivable, Modifications | ' | ' | ||
Financing Receivable, Modifications, Number of Contracts | 8,920 | [1],[2] | 11,498 | [1],[2] |
Financing Receivable Modifications Post Modification Recorded Investment | $575 | [1] | $592 | [1] |
Allowance for Loan and Lease Losses, Adjustments, Net | 8 | [1] | 6 | [1] |
Allowance for Loan and Lease Losses, Write-offs | 1 | [1] | 7 | [1] |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Financing Receivable, Modifications, Number of Contracts | 56 | [1],[2],[3] | 52 | [1],[2] |
Financing Receivable Modifications Post Modification Recorded Investment | 16 | [1],[3] | 45 | [1] |
Allowance for Loan and Lease Losses, Adjustments, Net | -1 | [1],[3] | -6 | [1] |
Allowance for Loan and Lease Losses, Write-offs | ' | 2 | [1] | |
Commercial Portfolio Segment | Commercial Mortgage Loans, Owner Occupied | Consolidated Variable Interest Entity | ' | ' | ||
Financing Receivable, Modifications | ' | ' | ||
Financing Receivable, Modifications, Number of Contracts | 5 | ' | ||
Financing Receivable Modifications Post Modification Recorded Investment | 29 | ' | ||
Allowance for Loan and Lease Losses, Adjustments, Net | 7 | ' | ||
Allowance for Loan and Lease Losses, Write-offs | $2 | ' | ||
[1] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||
[2] | Represents number of loans post-modification. | |||
[3] | Excludes five loans modified in a TDR during the nine months ended September 30, 2013 associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party. The TDR has a recorded investment of $29, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon modification. |
Summary_of_Subsequent_Defaults
Summary of Subsequent Defaults (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||||||||||||||||||||||||
Quarter to date | Quarter to date | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Commercial Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Consumer Portfolio Segment | Residential Mortgage Loans | Residential Mortgage Loans | Residential Mortgage Loans | Residential Mortgage Loans | ||||||||||||||||||||||||||||||
Commercial and Industrial Loans | Commercial and Industrial Loans | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Owner Occupied | Commercial Mortgage Loans, Non Owner Occupied | Commercial Construction | Home Equity | Home Equity | Home Equity | Home Equity | Automobile Loans | Automobile Loans | Automobile Loans | Credit Card | Credit Card | Credit Card | Credit Card | Quarter to date | Quarter to date | ||||||||||||||||||||||||||||||||||
Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | |||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Modifications | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||
Number of contracts | 1,677 | [1] | 1,719 | [1] | 482 | [2] | 509 | [2] | 3 | [1] | 1 | [2] | 6 | [1] | 3 | [1] | 2 | [2] | 1 | [2] | 2 | [1] | 2 | [1] | 55 | [1] | 67 | [1] | 21 | [2] | 19 | [2] | 3 | [1] | 36 | [1] | 15 | [2] | 1,306 | [1] | 1,385 | [1] | 380 | [2] | 376 | [2] | 304 | [1] | 224 | [1] | 78 | [2] | 98 | [2] |
Recorded Investment in Loans Modified in a TDR During the Period | $65 | [1] | $62 | [1] | $19 | [2] | $22 | [2] | $6 | [1] | $5 | [2] | $1 | [1] | $2 | [1] | ' | $1 | [2] | $1 | [1] | $3 | [1] | $3 | [1] | $5 | [1] | $1 | [2] | $2 | [2] | ' | ' | ' | $8 | [1] | $10 | [1] | $2 | [2] | $3 | [2] | $47 | [1] | $41 | [1] | $11 | [2] | $16 | [2] | ||||
[1] | Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Â Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality. |
Changes_in_the_Net_Carrying_Am
Changes in the Net Carrying Amount of Goodwill by Reporting Segment (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
GoodwillRollForward | ' | ' | ' | ' |
Net carrying value, beginning of period: | $2,416 | $2,416 | $2,417 | $2,417 |
Net carrying value, end of period: | 2,416 | 2,416 | 2,417 | 2,417 |
Commercial Banking [Member] | ' | ' | ' | ' |
GoodwillRollForward | ' | ' | ' | ' |
Net carrying value, beginning of period: | 613 | 613 | 613 | 613 |
Net carrying value, end of period: | 613 | 613 | 613 | 613 |
Branch Banking [Member] | ' | ' | ' | ' |
GoodwillRollForward | ' | ' | ' | ' |
Net carrying value, beginning of period: | 1,655 | 1,655 | 1,656 | 1,656 |
Net carrying value, end of period: | 1,655 | 1,655 | 1,656 | 1,656 |
Investment Advisors [Member] | ' | ' | ' | ' |
GoodwillRollForward | ' | ' | ' | ' |
Net carrying value, beginning of period: | 148 | 148 | 148 | 148 |
Net carrying value, end of period: | $148 | $148 | $148 | $148 |
Goodwill_Additional_Informatio
Goodwill Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2008 |
Goodwill [Line Items] | ' |
Goodwill impairment | $965 |
Commercial Banking [Member] | ' |
Goodwill [Line Items] | ' |
Goodwill impairment | 750 |
Consumer Lending [Member] | ' |
Goodwill [Line Items] | ' |
Goodwill impairment | $215 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Intangible Assets by Major Class | ' | ' | ' | ' |
Estimated weighted-average life (in years) | ' | ' | '4 years 1 month 6 days | ' |
Amortization of Intangible Assets | $42 | $51 | $152 | $145 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | $3,241 | $3,049 |
Accumulated Amortization | -1,790 | -1,664 |
Valuation Allowance | -511 | -661 |
Net Carrying Amount | 940 | 724 |
Mortgage Servicing Rights | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 3,036 | 2,825 |
Accumulated Amortization | -1,610 | -1,467 |
Valuation Allowance | -511 | -661 |
Net Carrying Amount | 915 | 697 |
Automobile Servicing Rights | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 6 | ' |
Accumulated Amortization | -2 | ' |
Net Carrying Amount | 4 | ' |
Core Deposits | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 154 | 180 |
Accumulated Amortization | -139 | -160 |
Net Carrying Amount | 15 | 20 |
Other Intangible Assets | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross Carrying Amount | 45 | 44 |
Accumulated Amortization | -39 | -37 |
Net Carrying Amount | $6 | $7 |
Estimated_Amortization_Expense
Estimated Amortization Expense (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Expected Amortization Expense | ' |
Future Amortization Expense, Year One | $31 |
Future Amortization Expense, Year Two | 115 |
Future Amortization Expense, Year Three | 103 |
Future Amortization Expense, Year Four | 94 |
Future Amortization Expense, Year Five | 87 |
Servicing Rights | ' |
Expected Amortization Expense | ' |
Future Amortization Expense, Year One | 29 |
Future Amortization Expense, Year Two | 110 |
Future Amortization Expense, Year Three | 101 |
Future Amortization Expense, Year Four | 92 |
Future Amortization Expense, Year Five | 85 |
Other Intangible Assets | ' |
Expected Amortization Expense | ' |
Future Amortization Expense, Year One | 2 |
Future Amortization Expense, Year Two | 5 |
Future Amortization Expense, Year Three | 2 |
Future Amortization Expense, Year Four | 2 |
Future Amortization Expense, Year Five | $2 |
Classifications_of_Consolidate
Classifications of Consolidated VIE Assets, Liabilities and Noncontrolling Interest Included in the Bancorp's Consolidated Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||||
Assets | ' | ' | ' | ' | ' | ' | ||
Cash and due from banks | $2,887 | [1] | ' | $2,441 | [1] | $2,490 | ' | $2,663 |
Commercial mortgage loans | 8,052 | [1] | ' | 9,103 | [1] | ' | ' | ' |
Automobile loans | 12,072 | [1] | ' | 11,972 | [1] | ' | ' | ' |
Allowance for loan and lease losses | -1,677 | [1] | -1,735 | -1,854 | [1] | -1,925 | -2,016 | -2,255 |
Other assets | 8,098 | [1] | ' | 8,204 | [1] | ' | ' | ' |
Total Assets | 125,673 | ' | 121,894 | 117,483 | ' | ' | ||
Liabilities | ' | ' | ' | ' | ' | ' | ||
Other liabilities | 3,365 | [1] | ' | 2,639 | [1] | ' | ' | ' |
Long-term debt | 8,098 | [1] | ' | 7,085 | [1] | ' | ' | ' |
Total Liabilities | 110,993 | ' | 108,130 | ' | ' | ' | ||
Noncontrolling interests | 39 | ' | 48 | ' | ' | ' | ||
Variable Interest Entity, Primary Beneficiary | ' | ' | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ' | ' | ||
Cash and due from banks | 53 | ' | ' | ' | ' | ' | ||
Commercial mortgage loans | 50 | ' | 50 | ' | ' | ' | ||
Automobile loans | 1,145 | [2] | ' | ' | ' | ' | ' | |
Allowance for loan and lease losses | -16 | ' | -5 | ' | ' | ' | ||
Other assets | 12 | ' | 3 | ' | ' | ' | ||
Total Assets | 1,244 | ' | 48 | ' | ' | ' | ||
Liabilities | ' | ' | ' | ' | ' | ' | ||
Other liabilities | 2 | ' | ' | ' | ' | ' | ||
Long-term debt | 1,198 | ' | ' | ' | ' | ' | ||
Total Liabilities | 1,200 | ' | ' | ' | ' | ' | ||
Noncontrolling interests | 39 | ' | 48 | ' | ' | ' | ||
Variable Interest Entity, Primary Beneficiary | Automobile Loan | ' | ' | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ' | ' | ||
Cash and due from banks | 53 | ' | ' | ' | ' | ' | ||
Automobile loans | 1,145 | [2] | ' | ' | ' | ' | ' | |
Allowance for loan and lease losses | -3 | ' | ' | ' | ' | ' | ||
Other assets | 10 | ' | ' | ' | ' | ' | ||
Total Assets | 1,205 | ' | ' | ' | ' | ' | ||
Liabilities | ' | ' | ' | ' | ' | ' | ||
Other liabilities | 2 | ' | ' | ' | ' | ' | ||
Long-term debt | 1,198 | ' | ' | ' | ' | ' | ||
Total Liabilities | 1,200 | ' | ' | ' | ' | ' | ||
Variable Interest Entity, Primary Beneficiary | Fifth Third Community Development Corporation Investments | ' | ' | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ' | ' | ||
Commercial mortgage loans | 50 | ' | 50 | ' | ' | ' | ||
Allowance for loan and lease losses | -13 | ' | -5 | ' | ' | ' | ||
Other assets | 2 | ' | 3 | ' | ' | ' | ||
Total Assets | 39 | ' | 48 | ' | ' | ' | ||
Liabilities | ' | ' | ' | ' | ' | ' | ||
Noncontrolling interests | $39 | ' | $48 | ' | ' | ' | ||
[1] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. | |||||||
[2] | Net of $56 of unamortized fees and discounts. |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | Variable Interest Entity, Not Primary Beneficiary | ||
Automobile Loan | Fifth Third Community Development Corporation Investments | Fifth Third Community Development Corporation Investments | Loans Receivable | Loans Receivable | Automobile Loan | Fifth Third Community Development Corporation Investments | Fifth Third Community Development Corporation Investments | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Private Equity Funds | Restructured Loans | Restructured Loans | ||
Variable Interest Entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carry Value Of Loans Leases Or Lines Of Credit Securitized | $509 | $1,300 | ' | ' | ' | ' | $509 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of seperate transactions in which the Bancorp previously sold loans to an isolated trust and conduits | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Exposure | ' | ' | 20 | 18 | ' | ' | ' | 1,420 | 1,442 | 303 | ' | 303 | ' | 310 | 1 | 2 |
Unfunded commitment amounts | ' | ' | ' | ' | 1,900 | 843 | ' | ' | ' | 96 | ' | 96 | ' | 121 | ' | ' |
Capital Contribution To Private Equity Funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11 | $11 | $25 | $35 | ' | ' | ' |
Assets_and_Liabilities_Related
Assets and Liabilities Related to Non-consolidated VIEs and Maximum Exposure to Losses (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Variable Interest Entity | ' | ' | ' |
Total Assets | $125,673 | $121,894 | $117,483 |
Total Liabilities | 110,993 | 108,130 | ' |
Variable Interest Entity, Not Primary Beneficiary | Fifth Third Community Development Corporation Investments | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 1,420 | 1,442 | ' |
Total Liabilities | 421 | 394 | ' |
Maximum Exposure | 1,420 | 1,442 | ' |
Variable Interest Entity, Not Primary Beneficiary | Private Equity Funds | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 207 | 189 | ' |
Maximum Exposure | 303 | 310 | ' |
Variable Interest Entity, Not Primary Beneficiary | Loans Receivable | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 1,837 | 1,622 | ' |
Maximum Exposure | 3,783 | 2,465 | ' |
Variable Interest Entity, Not Primary Beneficiary | Automobile Loan Securitizations | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 4 | ' | ' |
Maximum Exposure | 4 | ' | ' |
Variable Interest Entity, Not Primary Beneficiary | Restructured Loans | ' | ' | ' |
Variable Interest Entity | ' | ' | ' |
Total Assets | 1 | 2 | ' |
Maximum Exposure | $1 | $2 | ' |
Activity_Related_to_Mortgage_B
Activity Related to Mortgage Banking Net Revenue (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | ' | ' | ' | ' |
Residential mortgage loan sales | $5,105 | $5,002 | $19,115 | $16,650 |
Origination fees and gains on loan sales | 74 | 226 | 393 | 583 |
Servicing fees | $63 | $62 | $187 | $186 |
Changes_in_the_Servicing_Asset
Changes in the Servicing Assets (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Servicing Assets at Fair Value | ' | ' |
Carrying amount as of the beginning of the period | $1,358 | $1,239 |
Servicing Obligations From Transfers | 211 | 254 |
Servicing Asset At Amortized Value Amortization | -145 | -134 |
Carrying amount before valuation allowance | 1,430 | 1,359 |
Valuation allowance for servicing assets: | ' | ' |
Beginning balance | -661 | -558 |
Servicing impairment | 150 | -122 |
Ending balance | -511 | -680 |
Carrying amount as of the end of the period | 919 | 679 |
Automobile Loan Securitizations | ' | ' |
Servicing Assets at Fair Value | ' | ' |
Servicing Obligations From Transfers | $6 | ' |
Fair_Value_of_the_Servicing_As
Fair Value of the Servicing Assets (Detail) (USD $) | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Fixed Rate Residential Mortgage | Fixed Rate Residential Mortgage | Fixed Rate Residential Mortgage | Fixed Rate Residential Mortgage | Adjustable Rate Residential Mortgage | Adjustable Rate Residential Mortgage | Adjustable Rate Residential Mortgage | Adjustable Rate Residential Mortgage | Fixed Rate Automobile Loans | |
Servicing Assets at Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value at beginning of period | $6 | $876 | $664 | $645 | $649 | $39 | $33 | $34 | $32 | $4 |
Fair value at end of period | $6 | $876 | $664 | $645 | $649 | $39 | $33 | $34 | $32 | $4 |
Activity_Related_to_the_MSR_Po
Activity Related to the MSR Portfolio (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Servicing Assets at Fair Value | ' | ' | ' | ' |
Securities gains, net - non-qualifying hedges on MSRs | $5 | $5 | $13 | $5 |
Changes in fair value and settlement of free-standing derivatives purchased to economically hedge the MSR portfolio (Mortgage banking net revenue) | 24 | 32 | -13 | 75 |
Recovery of (provision for) MSR impairment (Mortgage banking net revenue) | ($1) | ($72) | $150 | ($122) |
Servicing_Assets_and_Residual_
Servicing Assets and Residual Interests Economic Assumptions (Detail) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Fixed Rate Residential Mortgage | ' | ' |
Servicing Assets at Amortized Value | ' | ' |
Weighted- Average Life (in years) | '7 years 8 months 12 days | '6 years 3 months 18 days |
Prepayment Speed (annual) | 8.50% | 11.00% |
Discount Rate (annual) | 10.20% | 10.30% |
Adjustable Rate Residential Mortgage | ' | ' |
Servicing Assets at Amortized Value | ' | ' |
Weighted- Average Life (in years) | '3 years 8 months 12 days | '3 years 9 months 18 days |
Prepayment Speed (annual) | 22.40% | 21.70% |
Discount Rate (annual) | 11.50% | 11.40% |
Sales_of_Receivables_and_Servi2
Sales of Receivables and Servicing Rights - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale | ' | ' | ' |
Sevicing of residential mortgage loans for other investors | ' | $69,000,000,000 | $62,500,000,000 |
Carry Value Of Loans Leases Or Lines Of Credit Securitized | 509,000,000 | ' | ' |
Fair value of automobile loan securitization servicing asset | $6,000,000 | ' | ' |
Sensitivity_of_the_Current_Fai
Sensitivity of the Current Fair Value of Residual Cash Flows to Immediate 10%, 20% and 50% Adverse Changes in Assumptions (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | |
Fixed Rate Residential Mortgage | ' | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ' | |
Fair Value | $876 | [1] |
Weighted- Average Life (in years) | '6 years 4 months 24 days | [1] |
Prepayment Speed (annual) | 11.40% | [1] |
Impact of Adverse Change on Fair Value 10% | -36 | [1] |
Impact of Adverse Change on Fair Value 20% | -70 | [1] |
Impact of Adverse Change on Fair Value 50% | -158 | [1] |
Discount Rate (annual) | 10.40% | [1] |
Impact of Adverse Change on Fair Value 10% | -34 | [1] |
Impact of Adverse Change on Fair Value 20% | -65 | [1] |
Adjustable Rate Residential Mortgage | ' | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption | ' | |
Fair Value | 39 | [1] |
Weighted- Average Life (in years) | '3 years 2 months 12 days | [1] |
Prepayment Speed (annual) | 25.70% | [1] |
Impact of Adverse Change on Fair Value 10% | -2 | [1] |
Impact of Adverse Change on Fair Value 20% | -3 | [1] |
Impact of Adverse Change on Fair Value 50% | -7 | [1] |
Discount Rate (annual) | 11.60% | [1] |
Impact of Adverse Change on Fair Value 10% | -1 | [1] |
Impact of Adverse Change on Fair Value 20% | ($2) | [1] |
[1] | The impact of the weighted-average default rate on the current fair value of residual cash flows for all scenarios is immaterial. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2009 |
Derivative | ' | ' | ' |
Valuation adjustments related to the credit risk associated with counterparties of customer accomodation derivative contracts | $16 | $18 | ' |
Maximum length of time hedged in cash flow hedge | '2 years 5 months | ' | ' |
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | ' | ' | 51.00% |
Interest Rate Contract | ' | ' | ' |
Derivative | ' | ' | ' |
Notional amount of the risk participation agreements | 1,207 | 1,006 | ' |
Credit Risk Derivatives Average Remaining Life | '3 years 10 months 24 days | ' | ' |
Fair value of risk participation agreements | 3 | 2 | ' |
Interest Rate Contract | Cash Flow Hedging | ' | ' | ' |
Derivative | ' | ' | ' |
Deferred gains, net of tax, on cash flow hedges were recorded in accumulated other comprehensive income | 31 | 50 | ' |
Net deferred gains, net of tax, recorded in accumulated other comprehensive income are expected to be reclassified into earnings during the next twelve months | 18 | ' | ' |
Total collateral (up to and exceeding 100% of the net position) | ' | ' | ' |
Derivative | ' | ' | ' |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 534 | 927 | ' |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $648 | $785 | ' |
Notional_Amounts_and_Fair_Valu
Notional Amounts and Fair Values for All Derivative Instruments Included in the Consolidated Balance Sheets (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | $1,586 | $1,972 |
Fair value - Derivative Liabilities | 807 | 915 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 390 | 640 |
Fair value - Derivative Liabilities | 11 | 1 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 345 | 558 |
Fair value - Derivative Liabilities | 11 | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Fair Value Hedging | Interest Rate Swap | Long-Term Debt | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 3,205 | 2,880 |
Fair value - Derivative Assets | 345 | 558 |
Fair value - Derivative Liabilities | 11 | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 45 | 82 |
Fair value - Derivative Liabilities | ' | 1 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Long-Term Debt | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | ' | 250 |
Fair value - Derivative Liabilities | ' | 1 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Swap | Commercial and Industrial Loans | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 1,000 | 1,000 |
Fair value - Derivative Assets | 45 | 60 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Floor | Commercial and Industrial Loans | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | ' | 1,500 |
Fair value - Derivative Assets | ' | 22 |
Accumulated Net Gain (Loss) from Designated or Qualifying Hedges | Cash Flow Hedging | Interest Rate Cap | Long-Term Debt | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | ' | 500 |
Nondesignated | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 1,196 | 1,332 |
Fair value - Derivative Liabilities | 796 | 914 |
Nondesignated | Risk Management and Other Business Purposes | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 452 | 398 |
Fair value - Derivative Liabilities | 87 | 47 |
Nondesignated | Risk Management and Other Business Purposes | Interest Rate Contract | Servicing Rights | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 2,992 | 10,177 |
Fair value - Derivative Assets | 147 | 219 |
Fair value - Derivative Liabilities | 8 | ' |
Nondesignated | Risk Management and Other Business Purposes | Forward Contracts | Assets Held-for-sale | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 4,068 | 5,322 |
Fair value - Derivative Assets | 12 | 2 |
Fair value - Derivative Liabilities | 44 | 14 |
Nondesignated | Risk Management and Other Business Purposes | Warrant | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 569 | 416 |
Fair value - Derivative Assets | 293 | 177 |
Nondesignated | Risk Management and Other Business Purposes | Swap | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 812 | 644 |
Fair value - Derivative Liabilities | 35 | 33 |
Nondesignated | Customer Accommodation | ' | ' |
Derivatives, Fair Value | ' | ' |
Fair value - Derivative Assets | 744 | 934 |
Fair value - Derivative Liabilities | 709 | 867 |
Nondesignated | Customer Accommodation | Interest Rate Contract | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 29,128 | 27,354 |
Fair value - Derivative Assets | 399 | 586 |
Fair value - Derivative Liabilities | 412 | 602 |
Nondesignated | Customer Accommodation | Foreign Exchange Contract | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 18,299 | 17,297 |
Fair value - Derivative Assets | 237 | 201 |
Fair value - Derivative Liabilities | 214 | 183 |
Nondesignated | Customer Accommodation | Interest Rate Lock Commitments | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 1,433 | 4,894 |
Fair value - Derivative Assets | 25 | 60 |
Fair value - Derivative Liabilities | 1 | ' |
Nondesignated | Customer Accommodation | Commodity Contract | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | 3,330 | 3,084 |
Fair value - Derivative Assets | 83 | 87 |
Fair value - Derivative Liabilities | 82 | 82 |
Nondesignated | Customer Accommodation | Derivative | Certificates of Deposit | ' | ' |
Derivatives, Fair Value | ' | ' |
Notional amount | ' | $5 |
Change_in_the_Fair_Value_for_I
Change in the Fair Value for Interest Rate Contracts and the Related Hedged Items (Detail) (Fair Value Hedging, Interest Rate Contract, Interest Expense, Long-Term Debt, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value Hedging | Interest Rate Contract | Interest Expense, Long-Term Debt | ' | ' | ' | ' |
Derivatives, Fair Value | ' | ' | ' | ' |
Change in fair value of interest rate swaps hedging long-term debt | ($30) | ($35) | ($223) | ($56) |
Change in fair value of hedged long-term debt | $30 | $44 | $220 | $59 |
Net_Gains_Losses_Relating_to_D
Net Gains (Losses) Relating to Derivative Instruments Designated as Cash Flow Hedges (Detail) (Cash Flow Hedging, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of gain recognized in OCI | $9 | $10 | $8 | $35 |
Interest Income (Expense) Net | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Amount of gain reclassified from OCI into net interest income | $6 | $22 | $37 | $63 |
Net_Gains_Losses_Recorded_in_t
Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Risk Management (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Rate Contract | Forward Contracts | Mortgage Banking Revenue | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | ($191) | ($59) | ($20) | ($42) |
Interest Rate Contract | Servicing Rights | Mortgage Banking Revenue | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | 24 | 32 | -13 | 75 |
Interest Rate Contract | Interest Rate Swap | Other Noninterest Income | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | ' | 1 | ' | 2 |
Foreign Exchange Contract | Forward Contracts | Other Noninterest Income | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | -2 | -1 | 3 | -1 |
Equity Contract | Warrant | Other Noninterest Income | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | 6 | -16 | 116 | 85 |
Equity Contract | Put Option | Other Noninterest Income | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | ' | ' | ' | 1 |
Equity Contract | Swap | Other Noninterest Income | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | ($2) | ($1) | ($13) | ($30) |
Risk_Ratings_of_the_Notional_A
Risk Ratings of the Notional Amount of Risk Participation Agreements (Detail) (Interest Rate Contract, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Notional amount of the risk participation agreements | $1,207 | $1,006 |
Lender Concentration Risk | Pass | ' | ' |
Notional amount of the risk participation agreements | 1,157 | 993 |
Lender Concentration Risk | Risk Level, Special Mention | ' | ' |
Notional amount of the risk participation agreements | 37 | ' |
Lender Concentration Risk | Risk Level, Substandard | ' | ' |
Notional amount of the risk participation agreements | $13 | $13 |
Net_Gains_Losses_Recorded_in_t1
Net Gains (Losses) Recorded in the Consolidated Statements of Income Relating to Free-Standing Derivative Instruments Used For Customer Accommodation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Rate Contract | Customer Contracts | Corporate Banking Revenue | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | $8 | $7 | $22 | $20 |
Interest Rate Contract | Customer Contracts | Other Noninterest Expense | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | ' | -1 | -3 | -2 |
Interest Rate Contract | Fair Value Adjustments on Hedges and Derivative Contracts 1 [Member] | Other Noninterest Expense | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | ' | 2 | 4 | 5 |
Interest Rate Contract | Interest Rate Lock Commitments | Mortgage Banking Revenue | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | 43 | 166 | 41 | 341 |
Commodity Contract | Customer Contracts | Corporate Banking Revenue | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | 1 | 1 | 5 | 6 |
Commodity Contract | Fair Value Adjustments on Hedges and Derivative Contracts 1 [Member] | Other Noninterest Expense | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | ' | 1 | ' | 1 |
Foreign Exchange Contract | Customer Contracts | Corporate Banking Revenue | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | 14 | 16 | 52 | 49 |
Foreign Exchange Contract | Fair Value Adjustments on Hedges and Derivative Contracts 1 [Member] | Other Noninterest Expense | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) | ' | ' | ' | ' |
Net gains (losses) recorded in earnings | ' | $1 | ($2) | $2 |
Offsetting_Derivative_Financia2
Offsetting Derivative Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ' | ' | ||
Gross amount recognized in the balance sheet | $1,268 | [1] | $1,735 | [1] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | -322 | -291 | ||
Derivative, Collateral, Obligation to Return Cash | -430 | [2] | -794 | [2] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 516 | 650 | ||
Liability | ' | ' | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ' | ' | ||
Gross amount recognized in the balance sheet | 806 | [1] | 915 | [1] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | -322 | -291 | ||
Derivative, Collateral, Right to Reclaim Cash | -360 | [2] | -505 | [2] |
Derivative Fair Value Amount Offset Against Collateral Net | 124 | 119 | ||
Derivative | Assets | ' | ' | ||
Derivative Fair Value Gross Amount Assets Not Offset Against Collateral Net | ' | ' | ||
Gross amount recognized in the balance sheet | 1,268 | [1] | 1,735 | [1] |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | -322 | -291 | ||
Derivative, Collateral, Obligation to Return Cash | -430 | [2] | -794 | [2] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 516 | 650 | ||
Derivative | Liability | ' | ' | ||
Derivative Fair Value Gross Amount Liabilities Not Offset Against Collateral Net | ' | ' | ||
Gross amount recognized in the balance sheet | 806 | [1] | 915 | [1] |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | -322 | -291 | ||
Derivative, Collateral, Right to Reclaim Cash | -360 | [2] | -505 | [2] |
Derivative Fair Value Amount Offset Against Collateral Net | $124 | $119 | ||
[1] | Amount does not include stock warrants associated with Vantiv Holding, LLC and interest rate lock commitments because these instruments are not subject to master netting or similar arrangement. | |||
[2] | 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. |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | |
Beginning Amount | Ending Amount | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company | Parent company | |||
Senior Debt Obligations | Senior Debt Obligations | Senior Debt Obligations | Senior Debt Obligations | Senior Debt Obligations | Senior Debt Obligations | Variable Interest Entity, Primary Beneficiary | |||||
Fixed Rate 1.45 Percent Notes Due 2018 | Fixed Rate 1.45 Percent Notes Due 2018 | Fixed Rate .90 Percent Notes Due 2016 | Fixed Rate .90 Percent Notes Due 2016 | Floating Rate Notes Due 2016 | Floating Rate Notes Due 2016 | Automobile Loan | |||||
Three Month LIBOR | Three Month LIBOR | ||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Global Bank Note Program | ' | ' | $20,000,000,000 | $25,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Issue of senior notes to third party investors | ' | 1,300,000,000 | ' | ' | ' | 600,000,000 | ' | 400,000,000 | ' | 300,000,000 | ' |
Other Long Term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,200,000,000 |
Debt Instrument, Interest Rate Terms | '3-month LIBOR plus 41 basis points | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date(s) Start | ' | ' | ' | ' | 28-Feb-13 | ' | 28-Feb-13 | ' | 28-Feb-13 | ' | ' |
Maturity date(s) End | ' | ' | ' | ' | 28-Feb-18 | ' | 26-Feb-16 | ' | 26-Feb-16 | ' | ' |
Capital_Actions_Additional_Inf
Capital Actions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Preferred stock Series G | Preferred stock Series G | Preferred stock Series G | 5.10% fixed-to-floating rate non-cumulative Series H perpetual preferred stock | 5.10% fixed-to-floating rate non-cumulative Series H perpetual preferred stock | November 6, 2012 ASR | November 6, 2012 ASR | December 14, 2012 ASR | December 14, 2012 ASR | January 28, 2013 ASR | May 21, 2013 ASR | August 2012 Repurchase Program [Member] | March 2013 Repurchase Program [Member] | ||||
Capital Actions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,710,761 | ' | 6,267,410 | 6,953,028 | 25,035,519 | ' | ' |
Shares acquired for treasury | $600 | ($664) | ($425) | ' | ' | ' | ' | ' | ' | $125 | ' | $100 | $125 | $539 | ' | ' |
Incremental common shares | ' | ' | ' | ' | ' | ' | ' | ' | 657,914 | ' | 127,760 | ' | 849,037 | 4,270,250 | ' | ' |
Repurchase Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 100,000,000 |
Redemption date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9-Nov-12 | ' | 19-Dec-12 | 31-Jan-13 | ' | ' | ' |
Forward contract redemption date | ' | ' | ' | ' | ' | ' | ' | ' | 12-Feb-13 | ' | 27-Feb-13 | ' | 5-Apr-13 | 1-Oct-13 | ' | ' |
Depository shares | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock Issuance | ' | ' | ' | ' | ' | ' | ' | 24,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of preferred shares | ' | 593 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of preferred stock available for issuance | ' | $450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, liquidation preference | ' | ' | ' | ' | ' | $25,000 | $25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Dividend Payment Terms | ' | 'The preferred stock accrues dividends, on a non-cumulative, semi-annual basis, at an annual rate of 5.10% through but excluding June 30, 2023, at which time it converts to a quarterly floating rate dividend of three-month LIBOR plus 3.033% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Redemption Terms | ' | 'Subject to any required regulatory approval, the Bancorp may redeem the Series H preferred shares at its option in whole or in part, at any time on or after June 30, 2023 and following a regulatory capital event at any time prior to June 30, 2023 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock Conversion Date | ' | ' | ' | ' | 1-Jul-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock Conversion | ' | ' | ' | 16,442 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, outstanding | ' | ' | ' | ' | ' | 16,450 | 24,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depository Shares | ' | ' | ' | 4,110,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fifth Third Bank Common Stock Conversion Factor | ' | 2,159.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Issued | ' | 35,511,740 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Commitm
Summary of Significant Commitments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Long-term Purchase Commitment | ' | ' |
Commitments | $4,019 | ' |
Commitments to Extend Credit | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 59,411 | 53,403 |
Financial Standby Letter of Credit | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 4,019 | 4,281 |
Forward Contracts | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 4,068 | 5,322 |
Noncancelable Lease Obligations | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 742 | 769 |
Private Equity Funds | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 96 | 121 |
Purchase Commitment | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 89 | 87 |
Capital Additions | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | 38 | 29 |
Capital Lease Obligations | ' | ' |
Long-term Purchase Commitment | ' | ' |
Commitments | $19 | $24 |
Risk_Rating_Under_the_Risk_Rat
Risk Rating Under the Risk Rating System (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | $59,411 | $53,403 |
Pass | ' | ' |
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | 58,752 | 52,812 |
Risk Level, Special Mention | ' | ' |
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | 304 | 370 |
Risk Level, Substandard | ' | ' |
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | 350 | 221 |
Risk Level, Doubtful | ' | ' |
Credit Risk Associated With Commitments To Extend Credit | ' | ' |
Commitments To Extend Credit | $5 | ' |
Commitments_Contingent_Liabili2
Commitments, Contingent Liabilities and Guarantees - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2011 | Jun. 30, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | Dec. 31, 2009 | Dec. 31, 2008 | ||
Share data in Millions, unless otherwise specified | Residential Mortgage | Residential Mortgage | Residential Mortgage | Residential Mortgage | Residential Mortgage | Residential Mortgage | Standby Letters of Credit | Standby Letters of Credit | Standby Letters of Credit | Standby Letters of Credit | Variable Rate Demand Note | Variable Rate Demand Note | Other Liabilities | Other Liabilities | Other Liabilities | Other Liabilities | Private Mortgage Reinsurance | Private Mortgage Reinsurance | Private Mortgage Reinsurance | Private Mortgage Reinsurance | Visa Litigation | Visa Litigation | Visa Litigation | Visa Litigation | Visa Litigation | Visa Litigation | Visa Litigation | Visa Litigation | Visa Litigation | Visa Litigation | Visa Litigation | Visa | Visa | ||||||||
Secured Debt | Secured Debt | Residential Mortgage | Residential Mortgage | Lower Limit | Upper Limit | ||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reserve for unfunded commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000,000 | $4,000,000 | ' | ' | ' | ' | $167,000,000 | $179,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percentage of the total standby letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | 99.00% | 46.00% | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fifth Third Securities, Inc. (FTS) acted as the remarketing agent to issuers of VRDNs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | 2,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Letters of credit | 4,019,000,000 | ' | 4,281,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 299,000,000 | 345,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total Variable Rate Demand Notes | 2,300,000,000 | ' | 2,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Letters of credit issued by the Bancorp related to variable rate demand notes | 1,700,000,000 | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total outstanding reinsurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | 58,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Approximate reserve related to exposures within the reinsurance portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Margin account balance held by the brokerage clearing agent | 11,000,000 | ' | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fully and unconditionally guaranteed certain long-term borrowing obligations issued by wholly-owned issuing trust entities | 812,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Reinsurance coverage ranges of the total PMI coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Increase Decrease In Maximum Exposure To Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding balances on residential mortgage loans sold with representation and warranty provisions | 511,000,000 | ' | 661,000,000 | ' | ' | ' | 103,000,000 | 117,000,000 | 110,000,000 | 81,000,000 | 57,000,000 | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 103,000,000 | 110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding balances on residential mortgage loans sold with credit recourse | ' | ' | ' | ' | ' | ' | 589,000,000 | ' | 662,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Delinquency Rates | ' | ' | ' | ' | ' | ' | 4.60% | ' | 5.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Credit loss reserve | 1,677,000,000 | [1] | 1,735,000,000 | 1,854,000,000 | [1] | 1,925,000,000 | 2,016,000,000 | 2,255,000,000 | 18,000,000 | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized liability equal to the fair value of the indemnification obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ||
Recorded share of litigation formally settled by Visa and for probable future litigation settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,000,000 | 71,000,000 | 35,000,000 | 33,000,000 | 169,000,000 | ' | ' | ||
Visa IPO, shares of Visa's Class B common stock received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.1 | ||
Received Class B common shares, carryover basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ||
Sale of the Class B shares, recognition of the derivative liability and reversal of the net litigation reserve liability resulted in a pre-tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 288,000,000 | ' | ' | ' | ' | ' | ' | ||
Sale of the Class B shares, recognition of the derivative liability and reversal of the net litigation reserve liability resulted in an after-tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187,000,000 | ' | ' | ' | ' | ' | ' | ||
Free-standing derivative liability initial fair value with reversal of net Visa litigation reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ||
Visa deposited into the litigation escrow account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | 400,000,000 | 500,000,000 | 1,565,000,000 | 800,000,000 | 700,000,000 | 3,000,000,000 | ' | ' | ' | ' | ' | ||
Reduction of liability in cash to the swap counterparty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 75,000,000 | 19,000,000 | 20,000,000 | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Share of the Visa escrow account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 169,000,000 | ' | ' | ' | ' | ' | ||
Cash Proceeds Sale Of Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ||
Maximum Reasonably Possible Loss Related To Mortgage Representation And Warranty Provisions In Excess Of Reserve | ' | ' | ' | ' | ' | ' | $61,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. |
Standby_and_Commercial_Letters
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party (Detail) (USD $) | Sep. 30, 2013 | |
In Millions, unless otherwise specified | ||
Line of Credit Facility | ' | |
Commitments | $4,019 | |
Less Than One Year From The Balance Sheet Date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | 1,795 | [1] |
More than One and within Five Years from Balance Sheet Date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | 2,172 | [1] |
More than five years from balance sheet date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | $52 | |
[1] | Includes $67 and $6 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than one year and between one and five years, respectively. |
Standby_and_Commercial_Letters1
Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | |
In Millions, unless otherwise specified | ||
Line of Credit Facility | ' | |
Commitments | $4,019 | |
Less Than One Year From The Balance Sheet Date | Commercial | ' | |
Line of Credit Facility | ' | |
Commitments | 67 | |
Less Than One Year From The Balance Sheet Date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | 1,795 | [1] |
More than One and within Five Years from Balance Sheet Date | Commercial | ' | |
Line of Credit Facility | ' | |
Commitments | 6 | |
More than One and within Five Years from Balance Sheet Date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | 2,172 | [1] |
More than five years from balance sheet date | Financial Standby Letter of Credit | ' | |
Line of Credit Facility | ' | |
Commitments | $52 | |
[1] | Includes $67 and $6 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than one year and between one and five years, respectively. |
Letters_of_Credit_Detail
Letters of Credit (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | $4,019 | $4,281 |
Pass | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | 3,515 | 3,902 |
Risk Level, Special Mention | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | 137 | 129 |
Risk Level, Substandard | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | 343 | 223 |
Risk Level, Doubtful | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information | ' | ' |
Letters of credit | $24 | $27 |
Activity_in_Reserve_for_Repres
Activity in Reserve for Representation and Warranty Provisions (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | Residential Mortgage | Residential Mortgage | Residential Mortgage | Residential Mortgage | ||
Balance, beginning of period | $511 | $661 | $117 | $57 | $110 | $55 |
Net additions to the reserve | ' | ' | -3 | 37 | 34 | 66 |
Losses charged against the reserve | ' | ' | -11 | -13 | -41 | -40 |
Balance, end of period | $511 | $661 | $103 | $81 | $103 | $81 |
Unresolved_Claims_by_Claimant_
Unresolved Claims by Claimant (Detail) (USD $) | 12 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
GSE | GSE | Private Label | Private Label | ||
number | number | number | number | ||
Loss Contingencies Dollars | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | $48 | $47 | $19 | $19 |
New demands | ' | 189 | 274 | 2 | 6 |
Loan paydowns/payoffs | ' | 2 | 5 | 1 | ' |
Resolved claims | ' | -190 | -261 | -16 | -6 |
Balance, end of period | ' | $45 | $55 | $4 | $19 |
Loss Contingencies Units | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | 294,000,000 | 328,000,000 | 124,000,000 | 109,000,000 |
New demands | 2 | 1,409,000,000 | 2,116,000,000 | 223,000,000 | 173,000,000 |
Loan paydowns/payoffs | ' | -11,000,000 | -34,000,000 | -6,000,000 | -1,000,000 |
Resolved claims | ' | -1,397,000,000 | -2,092,000,000 | -311,000,000 | -157,000,000 |
Balance, end of period | ' | 295,000,000 | 318,000,000 | 30,000,000 | 124,000,000 |
Legal_and_Regulatory_Proceedin1
Legal and Regulatory Proceedings - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2009 | Sep. 30, 2013 | |
Commitments and Contingencies Disclosure | ' | ' | ' |
Number of putative securities class action complaints | ' | $5 | ' |
Number of cases that have been consolidated | ' | 5 | ' |
Number of additional lawsuit filed | ' | 2 | ' |
Number of alleging violations of ERISA that were dismissed | ' | 2 | ' |
Amount in excess of amounts reserved | ' | ' | 116,000,000 |
Payments for Legal Settlements | 16,000,000 | ' | ' |
Class Settlement Escrow | 46,000,000 | ' | ' |
Non Class Action Escrow | $4,000,000 | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | Vantiv Holding, LLC | Vantiv Holding, LLC | Vantiv Holding, LLC | Vantiv Holding, LLC | Vantiv, Inc. | ||
Class B Units | Class C Units | Class B Units | |||||
Related Party Transaction | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 25.00% | ' | ' | ' | ' |
Percentage Of Vantiv Holding, LLC sold | ' | ' | 3.00% | 5.00% | ' | ' | ' |
Equity investments, carrying value | ' | ' | $415 | ' | ' | ' | ' |
Gain on sale of shares | $85 | $242 | ' | ' | ' | ' | ' |
Units of Vantiv Holding LLC Held | ' | ' | ' | ' | 48,800,000 | 20,400,000 | ' |
Voting power in Vantiv | ' | ' | ' | ' | ' | ' | 18.50% |
Shares Held Vantiv Inc | ' | ' | ' | ' | ' | ' | 48,800,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes | ' | ' | ' | ' |
Provision for income tax | $183 | $139 | $613 | $491 |
Effective tax rate | 30.30% | 27.70% | 30.10% | 29.40% |
Unrecognized Tax Benefits | $6 | ' | $6 | ' |
Activity_of_the_Components_of_
Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | ' | ' | ' | ' |
Unrealized holding gains (losses) on available-for-sale securities arising during period | $69 | $22 | ($178) | $19 |
Reclassification adjustment for net gains included in net income | -4 | -4 | 34 | -10 |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ' | ' | ' | ' |
Unrealized holding (losses) gains on cash flow hedge derivatives arising during period | 6 | 8 | 5 | 23 |
Reclassification adjustment for net (gains) losses on cash flow hedge derivatives included in net income | -4 | -14 | -24 | -41 |
Net activity for defined benefit plans, net | ' | ' | ' | ' |
Net actuarial loss | 2 | 2 | 6 | 7 |
Total Other Comprehensive Activity | ' | ' | ' | ' |
Pre-tax activity total | 107 | 18 | -241 | -4 |
Total, Tax | -38 | -4 | 84 | 2 |
Other comprehensive income (loss), Net of Tax | 69 | 14 | -157 | -2 |
Total Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Total Accumulated Other Comprehensive Income - Beginning Balance | 149 | 454 | 375 | 470 |
Other comprehensive income (loss), Net of Tax | 69 | 14 | -157 | -2 |
Total Accumulated Other Comprehensive Income - Ending Balance | 218 | 468 | 218 | 468 |
Accumulated Net Unrealized Investment Gain (Loss) | ' | ' | ' | ' |
Pre-tax activity for accumulated net unrealized gain (loss) on available-for-sale securities | ' | ' | ' | ' |
Unrealized holding gains on available-for-sale securities arising during period | 106 | 33 | -274 | 29 |
Reclassification adjustment for net losses (gains) included in net income | -5 | -6 | 53 | -16 |
Net unrealized gains on available-for-sale securities | 101 | 27 | -221 | 13 |
Tax effect for accumulated net unrealized gain (loss) on available-for-sale securities | ' | ' | ' | ' |
Unrealized holding losses on available-for-sale securities arising during period | -37 | -11 | 96 | -10 |
Reclassification adjustment for net losses (gains) included in net income | 1 | 2 | -19 | 6 |
Net unrealized gains on available-for-sale securities | -36 | -9 | 77 | -4 |
Net activity for accumulated net unrealized gain (loss) on available-for-sale securities | ' | ' | ' | ' |
Unrealized holding gains (losses) on available-for-sale securities arising during period | 69 | 22 | -178 | 19 |
Reclassification adjustment for net gains included in net income | -4 | -4 | 34 | -10 |
Net unrealized gains on available-for-sale securities | 65 | 18 | -144 | 9 |
Total Other Comprehensive Activity | ' | ' | ' | ' |
Other comprehensive income (loss), Net of Tax | 65 | 18 | -144 | 9 |
Total Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Total Accumulated Other Comprehensive Income - Beginning Balance | 203 | 476 | 412 | 485 |
Other comprehensive income (loss), Net of Tax | 65 | 18 | -144 | 9 |
Total Accumulated Other Comprehensive Income - Ending Balance | 268 | 494 | 268 | 494 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' | ' |
Pre-tax activity for net unrealized gain (loss) on cash flow hedge derivatives | ' | ' | ' | ' |
Unrealized holding gains on cash flow hedge derivatives arising during period | 9 | 10 | 8 | 35 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | -6 | -22 | -37 | -63 |
Net unrealized gains on cash flow hedge derivatives | 3 | -12 | -29 | -28 |
Tax effect for net unrealized gain (loss) on cash flow hedge derivatives | ' | ' | ' | ' |
Unrealized holding gains (losses) on cash flow hedge derivatives arising during period | -3 | -2 | -3 | -12 |
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 2 | 8 | 13 | 22 |
Net unrealized gains on cash flow hedge derivatives | -1 | 6 | 10 | 10 |
Net activity for net unrealized gain (loss) on cash flow hedge derivatives | ' | ' | ' | ' |
Unrealized holding (losses) gains on cash flow hedge derivatives arising during period | 6 | 8 | 5 | 23 |
Reclassification adjustment for net (gains) losses on cash flow hedge derivatives included in net income | -4 | -14 | -24 | -41 |
Net unrealized gains on cash flow hedge derivatives | 2 | -6 | -19 | -18 |
Total Other Comprehensive Activity | ' | ' | ' | ' |
Other comprehensive income (loss), Net of Tax | 2 | -6 | -19 | -18 |
Total Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Total Accumulated Other Comprehensive Income - Beginning Balance | 29 | -68 | 50 | 80 |
Other comprehensive income (loss), Net of Tax | 2 | -6 | -19 | -18 |
Total Accumulated Other Comprehensive Income - Ending Balance | 31 | -62 | 31 | -62 |
Accumulated Defined Benefit Plans Adjustment | ' | ' | ' | ' |
Pre-tax activity for defined benefit plans, net | ' | ' | ' | ' |
Net actuarial loss | 3 | 3 | 9 | 11 |
Defined benefit plans, net | 3 | 3 | 9 | 11 |
Tax effect for defined benefit plans, net | ' | ' | ' | ' |
Net actuarial loss | -1 | -1 | -3 | -4 |
Defined benefit plans, net | 1 | 1 | 3 | 4 |
Net activity for defined benefit plans, net | ' | ' | ' | ' |
Net actuarial loss | 2 | 2 | 6 | 7 |
Defined benefit plans, net | -2 | -2 | -6 | -7 |
Total Other Comprehensive Activity | ' | ' | ' | ' |
Other comprehensive income (loss), Net of Tax | 2 | 2 | 6 | 7 |
Total Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Total Accumulated Other Comprehensive Income - Beginning Balance | -83 | -90 | -87 | -95 |
Other comprehensive income (loss), Net of Tax | 2 | 2 | 6 | 7 |
Total Accumulated Other Comprehensive Income - Ending Balance | ($81) | ($88) | ($81) | ($88) |
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Income Before Income Taxes | $604 | $503 | $2,037 | $1,670 | ||
Applicable income tax expense | 183 | 139 | 613 | 491 | ||
Net income | 421 | 363 | 1,433 | 1,178 | ||
Net Unrealized Gains On Available For Sale Securities | Net Losses Included In Net Income | ' | ' | ' | ' | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Reclassification adjustment for net losses (gains) included in net income | 5 | [1] | ' | -53 | [1] | ' |
Income Before Income Taxes | 5 | [1] | ' | -53 | [1] | ' |
Applicable income tax expense | -1 | [1] | ' | 19 | [1] | ' |
Net income | 4 | [1] | ' | -34 | [1] | ' |
Net Unrealized Gains On Cash Flow Hedge Activities | ' | ' | ' | ' | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Income Before Income Taxes | 6 | [1] | ' | 37 | [1] | ' |
Applicable income tax expense | -2 | [1] | ' | -13 | [1] | ' |
Net income | 4 | [1] | ' | 24 | [1] | ' |
Net Unrealized Gains On Cash Flow Hedge Activities | Interest Rate Contracts Related To C&I Loans | ' | ' | ' | ' | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | 6 | [1] | ' | 38 | [1] | ' |
Net Unrealized Gains On Cash Flow Hedge Activities | Interest Rate Contracts Related To Long-Term Debt | ' | ' | ' | ' | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | ' | ' | -1 | [1] | ' | |
Amortization Of Defined Benefit Pension Items | Net Actuarial Loss | ' | ' | ' | ' | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Net periodic pension cost | -3 | [1],[2] | ' | -9 | [1],[2] | ' |
Income Before Income Taxes | -3 | [1] | ' | -9 | [1] | ' |
Applicable income tax expense | 1 | [1] | ' | 3 | [1] | ' |
Net income | -2 | [1] | ' | -6 | [1] | ' |
Total Reclassifications For The Period | ' | ' | ' | ' | ||
Reclassifications Out Of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Net income | $6 | [1] | ' | ($16) | [1] | ' |
[1] | Amounts in parentheses indicate reductions to net income | |||||
[2] | This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 20 in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2012 for information on the computation of net periodic benefit cost. |
Calculation_of_Earnings_Per_Sh
Calculation of Earnings Per Share and the Reconciliation of Earnings Per Share to Earnings Per Diluted Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings per share: | ' | ' | ' | ' |
Net income attributable to Bancorp | $421 | $363 | $1,433 | $1,178 |
Dividends on preferred stock | ' | 9 | 18 | 26 |
Net income (loss) available to common shareholders | 421 | 354 | 1,415 | 1,152 |
Less: Income allocated to participating securities | 3 | 2 | 10 | 7 |
Net income allocated to common shareholders | 418 | 352 | 1,405 | 1,145 |
Earnings per diluted share: | ' | ' | ' | ' |
Net income available to common shareholders | 421 | 354 | 1,415 | 1,152 |
Series G convertible preferred stock | ' | 9 | 18 | 26 |
Net income available to common shareholders plus assumed conversions | 421 | 363 | 1,433 | 1,178 |
Less: Income allocated to participating securities | 3 | 2 | 10 | 7 |
Net income allocated to common shareholders plus assumed conversions | $418 | $361 | $1,423 | $1,171 |
Earnings per share: | ' | ' | ' | ' |
Net income allocated to common shareholders | 880,000,000 | 904,000,000 | 870,000,000 | 911,000,000 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock-based awards | 8,000,000 | 5,000,000 | 7,000,000 | 5,000,000 |
Series G convertible preferred stock | ' | 36,000,000 | 24,000,000 | 36,000,000 |
Net income allocated to common shareholders plus assumed converstions | 888,000,000 | 945,000,000 | 901,000,000 | 952,000,000 |
Earnings per share: | ' | ' | ' | ' |
Net income allocated to common shareholders | $0.47 | $0.39 | $1.62 | $1.26 |
Effect of dilutive securities: | ' | ' | ' | ' |
Series G convertible preferred stock | ' | ($0.01) | ($0.04) | ($0.03) |
Net income allocated to common shareholders plus assumed conversions | $0.47 | $0.38 | $1.58 | $1.23 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Stock Appreciation Rights | ' | ' | ' | ' |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Anti-dilutive securities | 24 | 39 | 25 | 36 |
Stock Options | ' | ' | ' | ' |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Anti-dilutive securities | ' | 3 | 1 | 5 |
May 21, 2013 ASR | ' | ' | ' | ' |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Incremental Common Shares Attributable to Accelerated Share Repurchase Agreements | 4 | ' | ' | ' |
August 23, 2012 ASR | ' | ' | ' | ' |
Earnings Per Share Disclosure | ' | ' | ' | ' |
Incremental Common Shares Attributable to Accelerated Share Repurchase Agreements | ' | 2 | ' | ' |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ||
Available for sale securities | $18,080 | [1] | $15,207 | [1] |
Trading securities | 246 | 207 | ||
Residential mortgage loans held for sale | 89 | 76 | ||
Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 17,234 | [2] | 14,363 | [2] |
Trading securities | 246 | 207 | ||
Residential mortgage loans held for sale | 1,298 | 2,856 | ||
Residential mortgage loans | 89 | [3] | 76 | [3] |
Derivative assets | 1,586 | 1,972 | ||
Total assets | 20,453 | 19,474 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 807 | 915 | ||
Short positions | 19 | 10 | ||
Total liabilities | 826 | 925 | ||
Interest Rate Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 973 | 1,507 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 476 | 617 | ||
Foreign Exchange Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 237 | 201 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 214 | 183 | ||
Equity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 293 | 177 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 35 | 33 | ||
Commodity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 83 | 87 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 82 | 82 | ||
US Treasury and Government | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 26 | 41 | ||
Trading securities | 1 | 1 | ||
US Government Agencies Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 1,653 | 1,911 | ||
Trading securities | 20 | 6 | ||
US States and Political Subdivisions Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 205 | 212 | ||
Trading securities | 21 | 17 | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 11,353 | 8,730 | ||
Trading securities | 1 | 7 | ||
Other Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 3,839 | 3,277 | ||
Trading securities | 9 | 15 | ||
Other Debt And Equity Securities [Member] | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 158 | [2] | 192 | [2] |
Trading securities | 194 | 161 | ||
Fair Value, Inputs, Level 1 | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 118 | [2],[4] | 120 | [2],[4] |
Trading securities | 195 | [4] | 162 | [4] |
Derivative assets | 21 | [4] | 2 | [4] |
Total assets | 334 | [4] | 284 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 58 | [4] | 14 | [4] |
Short positions | 17 | [4] | 8 | [4] |
Total liabilities | 75 | [4] | 22 | [4] |
Fair Value, Inputs, Level 1 | Interest Rate Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 12 | [4] | 2 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 44 | [4] | 14 | [4] |
Fair Value, Inputs, Level 1 | Commodity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 9 | [4] | ' | |
Liabilities: | ' | ' | ||
Derivative liabilities | 14 | [4] | ' | |
Fair Value, Inputs, Level 1 | US Treasury and Government | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 26 | [4] | 41 | [4] |
Trading securities | 1 | [4] | 1 | [4] |
Fair Value, Inputs, Level 1 | Other Debt And Equity Securities [Member] | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 92 | [2],[4] | 79 | [2],[4] |
Trading securities | 194 | [4] | 161 | [4] |
Fair Value, Inputs, Level 2 | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 17,116 | [2],[4] | 14,243 | [2],[4] |
Trading securities | 50 | [4] | 44 | [4] |
Residential mortgage loans held for sale | 1,298 | [4] | 2,856 | [4] |
Derivative assets | 1,247 | [4] | 1,733 | [4] |
Total assets | 19,711 | [4] | 18,876 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 710 | [4] | 865 | [4] |
Short positions | 2 | [4] | 2 | [4] |
Total liabilities | 712 | [4] | 867 | [4] |
Fair Value, Inputs, Level 2 | Interest Rate Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 936 | [4] | 1,445 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 428 | [4] | 600 | [4] |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 237 | [4] | 201 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 214 | [4] | 183 | [4] |
Fair Value, Inputs, Level 2 | Commodity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 74 | [4] | 87 | [4] |
Liabilities: | ' | ' | ||
Derivative liabilities | 68 | [4] | 82 | [4] |
Fair Value, Inputs, Level 2 | US Government Agencies Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 1,653 | [4] | 1,911 | [4] |
Trading securities | 20 | [4] | 6 | [4] |
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 205 | [4] | 212 | [4] |
Trading securities | 20 | [4] | 16 | [4] |
Fair Value, Inputs, Level 2 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 11,353 | [4] | 8,730 | [4] |
Trading securities | 1 | [4] | 7 | [4] |
Fair Value, Inputs, Level 2 | Other Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 3,839 | [4] | 3,277 | [4] |
Trading securities | 9 | [4] | 15 | [4] |
Fair Value, Inputs, Level 2 | Other Debt And Equity Securities [Member] | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Available for sale securities | 66 | [2],[4] | 113 | [2],[4] |
Fair Value, Inputs, Level 3 | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Trading securities | 1 | 1 | ||
Residential mortgage loans | 89 | [3] | 76 | [3] |
Derivative assets | 318 | 237 | ||
Total assets | 408 | 314 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 39 | 36 | ||
Total liabilities | 39 | 36 | ||
Fair Value, Inputs, Level 3 | Interest Rate Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 25 | 60 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 4 | 3 | ||
Fair Value, Inputs, Level 3 | Equity Contract | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Derivative assets | 293 | 177 | ||
Liabilities: | ' | ' | ||
Derivative liabilities | 35 | 33 | ||
Fair Value, Inputs, Level 3 | US States and Political Subdivisions Debt Securities | Fair value, recurring | ' | ' | ||
Assets: | ' | ' | ||
Trading securities | $1 | $1 | ||
[1] | Amortized cost of $17,665 and $14,571 at September 30, 2013 and December 31, 2012, respectively. | |||
[2] | Excludes FHLB and FRB restricted stock totaling $497 and $349, respectively, at September 30, 2013 and $497 and $347, respectively, at December 31, 2012. | |||
[3] | Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment. | |||
[4] | During the three and nine months ended September 30, 2013 and for the year ended December 31, 2012, no assets or liabilities were transferred between Level 1 and Level 2. |
Assets_and_Liabilities_Measure1
Assets and Liabilities Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Federal Home Loan Bank Stock | $497 | $497 |
Federal Reserve Bank Stock | $349 | $347 |
Fair_Values_of_Assets_and_Liab
Fair Values of Assets and Liabilities (Significant Unobservable Level 3 Inputs) (Detail) (Fair Value, Inputs, Level 3, USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Commercial Loans Held For Sale | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | ' | 13 | ||
Commercial and Industrial Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 431 | 79 | ||
Commercial Mortgage Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 63 | 59 | ||
Commercial Construction Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 3 | 8 | ||
Commercial Leases | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 1 | ' | ||
Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 915 | 679 | ||
OREO Property | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Fair value measurements nonrecurring assets | 109 | 114 | ||
Residential mortgage loans | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Residential mortgage loans | 89 | 76 | ||
IRLCs, net | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Derivative instruments | 24 | 102 | ||
Stock warrants associated with Vantiv Holding, LLC | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Derivative instruments | 293 | 197 | ||
Swap associated with the sale of Visa, Inc. Class B shares | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Derivative instruments | -35 | -21 | ||
Minimum | Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Prepayment speed | 0.00% | 0.00% | ||
Discount rate | 9.40% | 9.40% | ||
Minimum | Residential mortgage loans | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Interest rate risk factor | -19.90% | -91.00% | ||
Credit risk factor | 0.00% | 2.30% | ||
Minimum | IRLCs, net | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Loan closing rates | 3.10% | 9.80% | ||
Minimum | Stock warrants associated with Vantiv Holding, LLC | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Expected term (years) | '2 years | '2 years | ||
Expected volatility | 21.00% | [1] | 27.70% | [1] |
Minimum | Swap associated with the sale of Visa, Inc. Class B shares | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Timing of the resolution of the covered litigation | '2014-03-31 | '2013-06-30 | ||
Maximum | Commercial and Industrial Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Default rates | ' | 100.00% | ||
Maximum | Commercial Mortgage Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Default rates | ' | 100.00% | ||
Maximum | Commercial Construction Loans | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Default rates | ' | 100.00% | ||
Maximum | Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Prepayment speed | 100.00% | 100.00% | ||
Discount rate | 18.00% | 18.00% | ||
Maximum | Residential mortgage loans | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Interest rate risk factor | 12.20% | 16.60% | ||
Credit risk factor | 56.40% | 68.40% | ||
Maximum | IRLCs, net | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Loan closing rates | 97.20% | 95.00% | ||
Maximum | Stock warrants associated with Vantiv Holding, LLC | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Expected term (years) | '15 years 9 months 18 days | '16 years 9 months | ||
Expected volatility | 33.40% | [1] | 40.60% | [1] |
Maximum | Swap associated with the sale of Visa, Inc. Class B shares | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Timing of the resolution of the covered litigation | '2017-03-31 | '2015-06-30 | ||
Weighted average | Commercial Loans Held For Sale | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Cost to sell | 10.00% | 10.00% | ||
Weighted average | Residential mortgage loans | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Interest rate risk factor | 3.50% | 6.50% | ||
Credit risk factor | 3.30% | 4.60% | ||
Weighted average | IRLCs, net | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Loan closing rates | 66.40% | 60.10% | ||
Weighted average | Stock warrants associated with Vantiv Holding, LLC | Fair value, recurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Expected term (years) | '5 years 1 month 6 days | '6 years 2 months 12 days | ||
Expected volatility | 27.80% | [1] | 34.20% | [1] |
Fixed | Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Prepayment speed | 11.40% | 16.90% | ||
Discount rate | 10.40% | 10.60% | ||
Adjustable | Servicing Rights | Fair value, nonrecurring | ' | ' | ||
Quantitative information about level 3 fair value measurements | ' | ' | ||
Prepayment speed | 25.70% | 27.10% | ||
Discount rate | 11.60% | 11.70% | ||
[1] | Based on historical and implied volatilities of comparable companies assuming similar expected terms. |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Residential Mortgage Loans | Residential Mortgage Loans | Interest Rate Lock Commitments | Fair Value Option | Fair Value Option | Fair Value Option | Fair Value Option | Other Real Estate Owned | Other Real Estate Owned | Other Real Estate Owned | Other Real Estate Owned | Commercial Loans Held For Sale | Commercial Loans HFS transferred from portfolio in the current quarter | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net fair value of the interest rate lock commitments | ' | ' | ' | ' | ' | ' | $24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 25 bp | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in the fair value of the interest rate lock commitments, due to decrease in current interest rates of 50 bp | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 25 bp | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in the fair value of the interest rate lock commitments, due to increase in current interest rates of 50 bp | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of interest rate lock commitments, due to 10% adverse changes in the assumed loan closing rates | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of interest rate lock commitments, due to 20% adverse changes in the assumed loan closing rates | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of interest rate lock commitments, due to 10% favorable changes in the assumed loan closing rates | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of interest rate lock commitments, due to 20% favorable changes in the assumed loan closing rates | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial loans transferred from the portfolio to loans held for sale | 603 | 29 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Existing loans held for sale, further adjusted | 1,298 | ' | 2,856 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' |
Net impact related to fair value adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 12 | 20 | 47 | ' | ' |
Fair value changes included in earnings for instruments for which the fair value option was elected | ' | ' | ' | ' | ' | ' | ' | 56 | 122 | 56 | 122 | ' | ' | ' | ' | ' | ' |
The fair value of loans | ' | ' | ' | ' | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Nonrecurring Losses Included As Charge-Offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 4 | 17 | 13 | ' | ' |
Incremental Unit Purchase Option | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Changes Included In Earnings For Instruments No Longer Held | ' | ' | ' | ' | ' | ' | ' | $110 | $138 | $406 | $556 | ' | ' | ' | ' | ' | ' |
Percentage of Vantiv Holding, LLC sold to Advent for cash and warrants | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation_of_Assets_and_L
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||||||||||||||
Quarter to date | Quarter to date | Trading Securities | Trading Securities | Trading Securities | Trading Securities | Trading Securities | Trading Securities | Trading Securities | Trading Securities | Residential Mortgage | Residential Mortgage | Residential Mortgage | Residential Mortgage | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Equity Contract | Equity Contract | Equity Contract | Equity Contract | |||||||||||||||||||
Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | Quarter to date | |||||||||||||||||||||||||||||||
FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationCalculationRollforward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||
Beginning Balance | $278 | $130 | $304 | $315 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $1 | $76 | $65 | $83 | $76 | $57 | [1] | $32 | [1] | ($30) | [1] | $54 | [1] | $144 | [1] | $32 | [1] | $250 | [1] | $184 | [1] | ||||||||
Included in earnings | 143 | 395 | 48 | 147 | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | 1 | 42 | [1] | 338 | [1] | 43 | [1] | 163 | [1] | 102 | [1] | 57 | [1] | 5 | [1] | -17 | [1] | ||||||||
Purchases | -1 | ' | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | [1] | ' | -1 | [1] | ' | ' | ' | ' | ' | ||||||||||||||
Settlements | -77 | -194 | 7 | -114 | ' | ' | ' | ' | ' | ' | ' | ' | -12 | -10 | -5 | -5 | -77 | [1] | -271 | [1] | 9 | [1] | -118 | [1] | 12 | [1] | 87 | [1] | 3 | [1] | 9 | [1] | ||||||||
Transfers Into Level 3 | 26 | [2] | 21 | [2] | 11 | [2] | 4 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | 26 | [2] | 21 | [2] | 11 | [2] | 4 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Ending Balance | 369 | 352 | 369 | 352 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 89 | 76 | 89 | 76 | 21 | [1] | 99 | [1] | 21 | [1] | 99 | [1] | 258 | [1] | 176 | [1] | 258 | [1] | 176 | [1] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Relating To Assets | $146 | [3] | $230 | [3] | $27 | [3] | $85 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ($1) | [3] | ' | ' | $1 | [3] | $45 | [1],[3] | $173 | [1],[3] | $22 | [1],[3] | $101 | [1],[3] | $102 | [1],[3] | $57 | [1],[3] | $5 | [1],[3] | ($17) | [1],[3] | ||
[1] | Net interest rate derivatives include derivative assets and liabilities of $25 and $4, respectively, as of September 30, 2013 and $102 and $3, respectively, as of September 30, 2012. Net equity derivatives include derivative assets and liabilities of $293 and $35, respectively, as of September 30, 2013, and $198 and $22, respectively, as of September 30, 2012. | |||||||||||||||||||||||||||||||||||||||
[2] | Includes residential mortgage loans held for sale that were transferred to held for investment. | |||||||||||||||||||||||||||||||||||||||
[3] | Includes interest income and expense. |
Reconciliation_of_Assets_and_L1
Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Derivative assets | $369 | $278 | $352 | $130 |
Interest Rates | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Derivative assets | 25 | ' | 102 | ' |
Derivative liabilities | 4 | ' | 3 | ' |
Equity Contract | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Derivative assets | 293 | ' | 198 | ' |
Derivative liabilities | $35 | ' | $22 | ' |
Total_Gains_and_Losses_Include
Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) (Fair Value, Inputs, Level 3, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Gains and losses included in earnings | $48 | $147 | $143 | $395 |
Mortgage Banking Revenue | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Gains and losses included in earnings | 43 | 165 | 40 | 339 |
Other Noninterest Income | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Gains and losses included in earnings | 5 | -18 | 102 | 56 |
Corporate Banking Revenue | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Gains and losses included in earnings | ' | ' | $1 | ' |
Total_Gains_and_Losses_Include1
Total Gains and Losses Included in Earning Attributable to Changes in Unrealized Gains and Losses Related to Level 3 Assets and Liabilites Still Held at Year End (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | $27 | $85 | $146 | $230 |
Mortgage Banking Revenue | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | 22 | 103 | 43 | 174 |
Corporate Banking Revenue | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | ' | ' | 1 | ' |
Other Noninterest Income | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' | ' | ' |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset And Liabilities Change In Unrealized Gains Losses Included In Earnings | $5 | ($18) | $102 | $56 |
Assets_and_Liabilities_Measure2
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | $1,522 | $952 | $1,522 | $952 | |||
Fair Value Measured On Nonrecurring Basis Gains Losses | -125 | -139 | -66 | -339 | |||
Loans Held-for-Sale | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | ' | 13 | [1] | ' | 13 | [1] | |
Fair Value Measured On Nonrecurring Basis Gains Losses | ' | -4 | [1] | -5 | [1] | -10 | [1] |
Commercial and Industrial Loans | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 431 | 79 | 431 | 79 | |||
Fair Value Measured On Nonrecurring Basis Gains Losses | -103 | -31 | -134 | -86 | |||
Commercial Mortgage Loans | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 63 | 59 | 63 | 59 | |||
Fair Value Measured On Nonrecurring Basis Gains Losses | -9 | -11 | -34 | -40 | |||
Commercial Construction | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 3 | 8 | 3 | 8 | |||
Fair Value Measured On Nonrecurring Basis Gains Losses | -4 | -5 | -6 | -21 | |||
Commercial Leases | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 1 | ' | 1 | ' | |||
Servicing Rights | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 915 | 679 | 915 | 679 | |||
Fair Value Measured On Nonrecurring Basis Gains Losses | -1 | -72 | 150 | -122 | |||
Other Real Estate Owned | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 109 | 114 | 109 | 114 | |||
Fair Value Measured On Nonrecurring Basis Gains Losses | -8 | -16 | -37 | -60 | |||
Fair Value, Inputs, Level 3 | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 1,522 | 952 | 1,522 | 952 | |||
Fair Value, Inputs, Level 3 | Loans Held-for-Sale | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | ' | 13 | [1] | ' | 13 | [1] | |
Fair Value, Inputs, Level 3 | Commercial and Industrial Loans | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 431 | 79 | 431 | 79 | |||
Fair Value, Inputs, Level 3 | Commercial Mortgage Loans | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 63 | 59 | 63 | 59 | |||
Fair Value, Inputs, Level 3 | Commercial Construction | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 3 | 8 | 3 | 8 | |||
Fair Value, Inputs, Level 3 | Commercial Leases | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 1 | ' | 1 | ' | |||
Fair Value, Inputs, Level 3 | Servicing Rights | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | 915 | 679 | 915 | 679 | |||
Fair Value, Inputs, Level 3 | Other Real Estate Owned | ' | ' | ' | ' | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | |||
Fair Value Measurements | $109 | $114 | $109 | $114 | |||
[1] | Â Includes commercial nonaccrual loans held for sale |
Difference_Between_the_Aggrega
Difference Between the Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Residential Mortgage Loans Measured at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Aggregate fair value | ' | ' |
Residential mortgage loans measured at fair value | $89 | $76 |
Residential mortgage loans | ' | ' |
Aggregate fair value | ' | ' |
Residential mortgage loans measured at fair value | 1,387 | 2,932 |
Past due loans of 90 days or more | 2 | 3 |
Nonaccrual loans | 1 | ' |
Aggregate unpaid principal balance | ' | ' |
Residential mortgage loans measured at fair value | 1,331 | 2,775 |
Past due loans of 90 days or more | 3 | 4 |
Nonaccrual loans | 1 | 1 |
Difference | ' | ' |
Residential mortgage loans measured at fair value | 56 | 157 |
Past due loans of 90 days or more | -1 | -1 |
Nonaccrual loans | ' | ($1) |
Carrying_Amounts_and_Estimated
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||
Financial assets: | ' | ' | ' | ' | ||
Cash and due from banks | $2,887 | [1] | $2,441 | [1] | $2,490 | $2,663 |
Held-to-maturity securities | 265 | [2] | 284 | [2] | ' | ' |
Other short-term investments | 2,622 | 2,421 | ' | ' | ||
Loans held for sale | 1,330 | [3] | 2,939 | [3] | ' | ' |
Portfolio loans and leases, net | 85,554 | 83,928 | ' | ' | ||
Other securities, fair value | 18,080 | [4] | 15,207 | [4] | ' | ' |
Held-to-maturity securities, fair value | 265 | 284 | ' | ' | ||
Loans held for sale | 1,298 | 2,856 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Deposits | 94,126 | 89,517 | ' | ' | ||
Federal funds purchased | 225 | 901 | ' | ' | ||
Other short-term borrowings | 3,487 | 6,280 | ' | ' | ||
Long-term debt | 8,098 | [1] | 7,085 | [1] | ' | ' |
Carrying (Reported) Amount, Fair Value Disclosure | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Cash and due from banks | 2,887 | 2,441 | ' | ' | ||
Held-to-maturity securities | 265 | 284 | ' | ' | ||
Other short-term investments | 2,622 | 2,421 | ' | ' | ||
Unallocated Allowance For Loan And Lease Losses | -101 | -111 | ' | ' | ||
Portfolio loans and leases at fair value | 85,465 | [5] | 83,852 | [6] | ' | ' |
Financial liabilities: | ' | ' | ' | ' | ||
Deposits | 94,126 | 89,517 | ' | ' | ||
Federal funds purchased | 225 | 901 | ' | ' | ||
Other short-term borrowings | 3,487 | 6,280 | ' | ' | ||
Long-term debt | 8,098 | 7,085 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Non Fair Value Option Held For Sale Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Loans held for sale | 32 | 83 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | FHLB and FRB restricted stock holdings | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Other securities | 846 | 844 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial And Industrial Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 37,440 | 35,236 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Mortgage Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 7,813 | 8,770 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Construction | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 843 | 665 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Commercial Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 3,509 | 3,481 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Residential Mortgage | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 12,251 | [5] | 11,712 | [6] | ' | ' |
Carrying (Reported) Amount, Fair Value Disclosure | Home Equity | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 9,251 | 9,875 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Automobile Loan | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 12,046 | 11,944 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Credit Card Loan [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 2,070 | 2,010 | ' | ' | ||
Carrying (Reported) Amount, Fair Value Disclosure | Other Consumer Loans And Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases, net | 343 | 270 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Cash and due from banks, fair value | 2,887 | 2,441 | ' | ' | ||
Held-to-maturity securities, fair value | 265 | 284 | ' | ' | ||
Other short term investments, fair value | 2,622 | 2,421 | ' | ' | ||
Portfolio loans and leases at fair value | 85,523 | [5] | 84,164 | [6] | ' | ' |
Financial liabilities: | ' | ' | ' | ' | ||
Deposits, fair value | 94,157 | 89,592 | ' | ' | ||
Federal funds purchased, fair value | 225 | 901 | ' | ' | ||
Other short-term borrowings, fair value | 3,487 | 6,280 | ' | ' | ||
Long term debt, fair value | 8,578 | 7,809 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Non Fair Value Option Held For Sale Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Loans held for sale | 32 | 83 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | FHLB and FRB restricted stock holdings | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Other securities | 846 | ' | ' | ' | ||
Other securities, fair value | ' | 844 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Commercial And Industrial Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 38,987 | 36,496 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Commercial Mortgage Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 7,309 | 8,020 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Commercial Construction | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 699 | 505 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Commercial Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 3,248 | 3,310 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Residential Mortgage | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 11,635 | [5] | 11,532 | [6] | ' | ' |
Portion at Fair Value, Fair Value Disclosure | Home Equity | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 9,179 | 9,798 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Automobile Loan | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 11,879 | 12,076 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Credit Card Loan [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 2,230 | 2,139 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Other Consumer Loans And Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 357 | 288 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 1 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Cash and due from banks, fair value | 2,887 | 2,441 | ' | ' | ||
Other short term investments, fair value | 2,622 | 2,421 | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Federal funds purchased, fair value | 225 | 901 | ' | ' | ||
Long term debt, fair value | 7,943 | 6,925 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | ' | ' | ' | ' | ||
Financial liabilities: | ' | ' | ' | ' | ||
Deposits, fair value | 94,157 | 89,592 | ' | ' | ||
Other short-term borrowings, fair value | 3,487 | 6,280 | ' | ' | ||
Long term debt, fair value | 635 | 884 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2 | FHLB and FRB restricted stock holdings | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Other securities, fair value | 846 | 844 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Held-to-maturity securities, fair value | 265 | 284 | ' | ' | ||
Portfolio loans and leases at fair value | 85,523 | [5] | 84,164 | [6] | ' | ' |
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Non Fair Value Option Held For Sale Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Loans held for sale | 32 | 83 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Commercial And Industrial Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 38,987 | 36,496 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Commercial Mortgage Loans [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 7,309 | 8,020 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Commercial Construction | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 699 | 505 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Commercial Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 3,248 | 3,310 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Residential Mortgage | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 11,635 | [5] | 11,532 | [6] | ' | ' |
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Home Equity | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 9,179 | 9,798 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Automobile Loan | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 11,879 | 12,076 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Credit Card Loan [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | 2,230 | 2,139 | ' | ' | ||
Portion at Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 3 | Other Consumer Loans And Leases [Member] | ' | ' | ' | ' | ||
Financial assets: | ' | ' | ' | ' | ||
Portfolio loans and leases at fair value | $357 | $288 | ' | ' | ||
[1] | Includes $53 and $0 of cash and due from banks, $50 and $50 of commercial mortgage loans, $1,145 and $0 of automobile loans, $(16) and $(5) of ALLL, $12 and $3 of other assets, $2 and $0 of other liabilities, and $1,198 and $0 of long-term debt from consolidated VIEs that are included in their respective captions above at September 30, 2013 and December 31, 2012, respectively. See Note 9. | |||||
[2] | Fair value of $265 and $284 at September 30, 2013 and December 31, 2012, respectively. | |||||
[3] | Includes $1,298 and $2,856 of residential mortgage loans held for sale measured at fair value at September 30, 2013 and December 31, 2012, respectively. | |||||
[4] | Amortized cost of $17,665 and $14,571 at September 30, 2013 and December 31, 2012, respectively. | |||||
[5] | Excludes $89 of residential mortgage loans measured at fair value on a recurring basis | |||||
[6] | Excludes $76 of residential mortgage loans measured at fair value on a recurring basis. |
Carrying_Amounts_and_Estimated1
Carrying Amounts and Estimated Fair Values for Certain Financial Instruments (Parenthetical) (Detail) (Residential Mortgage Loans, USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Residential Mortgage Loans | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ' | ' |
Loans measured at fair value on a recurring basis | $89 | $76 |
Results_of_Operations_and_Aver
Results of Operations and Average Assets by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ||||
Net interest income | $893 | $903 | $2,661 | $2,696 | ' | ' | ||||
Provision for loan and lease losses | 51 | 65 | 176 | 227 | ' | ' | ||||
Net interest income (loss) after provision for loan and lease losses | 842 | 838 | 2,485 | 2,469 | ' | ' | ||||
Noninterest income: | ' | ' | ' | ' | ' | ' | ||||
Mortgage banking net revenue | 121 | 200 | 574 | 588 | ' | ' | ||||
Service charges on deposits | 140 | 128 | 407 | 387 | ' | ' | ||||
Corporate banking revenue | 102 | 101 | 307 | 299 | ' | ' | ||||
Investment advisory revenue | 97 | 92 | 295 | 281 | ' | ' | ||||
Card and processing revenue | 69 | 65 | 201 | 187 | ' | ' | ||||
Other noninterest income | 185 | 78 | 708 | 359 | ' | ' | ||||
Securities gains, net | 2 | 2 | 19 | 13 | ' | ' | ||||
Securities gains, net - non-qualifying hedges on mortgage servicing rights | 5 | 5 | 13 | 5 | ' | ' | ||||
Total noninterest income | 721 | 671 | 2,524 | 2,119 | ' | ' | ||||
Noninterest expense: | ' | ' | ' | ' | ' | ' | ||||
Salaries, wages and incentives | 389 | 399 | 1,193 | 1,191 | ' | ' | ||||
Employee benefits | 83 | 79 | 280 | 274 | ' | ' | ||||
Net occupancy expense | 75 | 76 | 230 | 227 | ' | ' | ||||
Technology and communications | 52 | 49 | 151 | 144 | ' | ' | ||||
Card and processing expense | 33 | 30 | 97 | 90 | ' | ' | ||||
Equipment expense | 29 | 28 | 85 | 82 | ' | ' | ||||
Other noninterest expense | 298 | 345 | 936 | 910 | ' | ' | ||||
Total noninterest expense | 959 | 1,006 | 2,972 | 2,918 | ' | ' | ||||
Income (loss) before income taxes | 604 | 503 | 2,037 | 1,670 | ' | ' | ||||
Income Tax Expense (Benefit) | 183 | 139 | 613 | 491 | ' | ' | ||||
Net income (loss) | 421 | 364 | 1,424 | 1,179 | ' | ' | ||||
Less: Net income attributable to noncontrolling interests | ' | -1 | 9 | -1 | ' | ' | ||||
Net income attributable to Bancorp | 421 | 363 | 1,433 | 1,178 | ' | ' | ||||
Dividends on preferred stock | ' | 9 | 18 | 26 | ' | ' | ||||
Net income available to common shareholders | 421 | 354 | 1,415 | 1,152 | ' | ' | ||||
Total goodwill | 2,416 | 2,417 | 2,416 | 2,417 | 2,416 | 2,417 | ||||
Total Assets | 125,673 | 117,483 | 125,673 | 117,483 | 121,894 | ' | ||||
Commercial Banking | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ||||
Net interest income | 374 | 354 | 1,095 | 1,049 | ' | ' | ||||
Provision for loan and lease losses | 37 | 45 | 116 | 181 | ' | ' | ||||
Net interest income (loss) after provision for loan and lease losses | 337 | 309 | 979 | 868 | ' | ' | ||||
Noninterest income: | ' | ' | ' | ' | ' | ' | ||||
Service charges on deposits | 61 | 57 | 179 | 166 | ' | ' | ||||
Corporate banking revenue | 98 | 96 | 295 | 286 | ' | ' | ||||
Investment advisory revenue | 1 | 1 | 4 | 5 | ' | ' | ||||
Card and processing revenue | 13 | 11 | 39 | 35 | ' | ' | ||||
Other noninterest income | 32 | 18 | 72 | 45 | ' | ' | ||||
Total noninterest income | 205 | 183 | 589 | 537 | ' | ' | ||||
Noninterest expense: | ' | ' | ' | ' | ' | ' | ||||
Salaries, wages and incentives | 55 | 53 | 174 | 166 | ' | ' | ||||
Employee benefits | 8 | 7 | 33 | 32 | ' | ' | ||||
Net occupancy expense | 6 | 5 | 17 | 16 | ' | ' | ||||
Technology and communications | 3 | 3 | 8 | 7 | ' | ' | ||||
Card and processing expense | 2 | 1 | 6 | 3 | ' | ' | ||||
Equipment expense | 1 | 1 | 3 | 2 | ' | ' | ||||
Other noninterest expense | 212 | 201 | 603 | 603 | ' | ' | ||||
Total noninterest expense | 287 | 271 | 844 | 829 | ' | ' | ||||
Income (loss) before income taxes | 255 | 221 | 724 | 576 | ' | ' | ||||
Income Tax Expense (Benefit) | 49 | 39 | 133 | 90 | ' | ' | ||||
Net income (loss) | 206 | 182 | 591 | 486 | ' | ' | ||||
Net income attributable to Bancorp | 206 | 182 | 591 | 486 | ' | ' | ||||
Net income available to common shareholders | 206 | 182 | 591 | 486 | ' | ' | ||||
Total goodwill | 613 | 613 | 613 | 613 | 613 | 613 | ||||
Total Assets | 50,438 | 47,495 | 50,438 | 47,495 | ' | ' | ||||
Branch Banking | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ||||
Net interest income | 374 | 344 | 1,079 | 1,021 | ' | ' | ||||
Provision for loan and lease losses | 52 | 71 | 162 | 226 | ' | ' | ||||
Net interest income (loss) after provision for loan and lease losses | 322 | 273 | 917 | 795 | ' | ' | ||||
Noninterest income: | ' | ' | ' | ' | ' | ' | ||||
Mortgage banking net revenue | 3 | 3 | 10 | 10 | ' | ' | ||||
Service charges on deposits | 78 | 70 | 226 | 219 | ' | ' | ||||
Corporate banking revenue | 4 | 4 | 10 | 11 | ' | ' | ||||
Investment advisory revenue | 36 | 33 | 110 | 96 | ' | ' | ||||
Card and processing revenue | 74 | 72 | 215 | 202 | ' | ' | ||||
Other noninterest income | 22 | 21 | 65 | 60 | ' | ' | ||||
Total noninterest income | 217 | 203 | 636 | 598 | ' | ' | ||||
Noninterest expense: | ' | ' | ' | ' | ' | ' | ||||
Salaries, wages and incentives | 114 | 111 | 342 | 337 | ' | ' | ||||
Employee benefits | 32 | 31 | 100 | 98 | ' | ' | ||||
Net occupancy expense | 46 | 47 | 139 | 140 | ' | ' | ||||
Technology and communications | 1 | 1 | 3 | 3 | ' | ' | ||||
Card and processing expense | 31 | 29 | 91 | 86 | ' | ' | ||||
Equipment expense | 15 | 14 | 43 | 40 | ' | ' | ||||
Other noninterest expense | 191 | 172 | 557 | 496 | ' | ' | ||||
Total noninterest expense | 430 | 405 | 1,275 | 1,200 | ' | ' | ||||
Income (loss) before income taxes | 109 | 71 | 278 | 193 | ' | ' | ||||
Income Tax Expense (Benefit) | 38 | 25 | 98 | 68 | ' | ' | ||||
Net income (loss) | 71 | 46 | 180 | 125 | ' | ' | ||||
Net income attributable to Bancorp | 71 | 46 | 180 | 125 | ' | ' | ||||
Net income available to common shareholders | 71 | 46 | 180 | 125 | ' | ' | ||||
Total goodwill | 1,655 | 1,656 | 1,655 | 1,656 | 1,655 | 1,656 | ||||
Total Assets | 49,282 | 48,003 | 49,282 | 48,003 | ' | ' | ||||
Consumer Lending | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ||||
Net interest income | 76 | 77 | 246 | 234 | ' | ' | ||||
Provision for loan and lease losses | 20 | 38 | 71 | 140 | ' | ' | ||||
Net interest income (loss) after provision for loan and lease losses | 56 | 39 | 175 | 94 | ' | ' | ||||
Noninterest income: | ' | ' | ' | ' | ' | ' | ||||
Mortgage banking net revenue | 118 | 197 | 563 | 577 | ' | ' | ||||
Other noninterest income | 11 | 10 | 37 | 30 | ' | ' | ||||
Securities gains, net | 2 | ' | 2 | ' | ' | ' | ||||
Securities gains, net - non-qualifying hedges on mortgage servicing rights | 5 | 5 | 13 | 5 | ' | ' | ||||
Total noninterest income | 136 | 212 | 615 | 612 | ' | ' | ||||
Noninterest expense: | ' | ' | ' | ' | ' | ' | ||||
Salaries, wages and incentives | 40 | 49 | 148 | 139 | ' | ' | ||||
Employee benefits | 9 | 9 | 34 | 30 | ' | ' | ||||
Net occupancy expense | 2 | 2 | 6 | 6 | ' | ' | ||||
Technology and communications | ' | ' | 1 | 1 | ' | ' | ||||
Equipment expense | ' | ' | 1 | 1 | ' | ' | ||||
Other noninterest expense | 117 | 107 | 366 | 319 | ' | ' | ||||
Total noninterest expense | 168 | 167 | 556 | 496 | ' | ' | ||||
Income (loss) before income taxes | 24 | 84 | 234 | 210 | ' | ' | ||||
Income Tax Expense (Benefit) | 9 | 30 | 83 | 74 | ' | ' | ||||
Net income (loss) | 15 | 54 | 151 | 136 | ' | ' | ||||
Net income attributable to Bancorp | 15 | 54 | 151 | 136 | ' | ' | ||||
Net income available to common shareholders | 15 | 54 | 151 | 136 | ' | ' | ||||
Total Assets | 23,015 | 23,640 | 23,015 | 23,640 | ' | ' | ||||
Investment Advisors | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ||||
Net interest income | 38 | 30 | 109 | 87 | ' | ' | ||||
Provision for loan and lease losses | ' | 3 | 1 | 9 | ' | ' | ||||
Net interest income (loss) after provision for loan and lease losses | 38 | 27 | 108 | 78 | ' | ' | ||||
Noninterest income: | ' | ' | ' | ' | ' | ' | ||||
Mortgage banking net revenue | ' | ' | 1 | 1 | ' | ' | ||||
Service charges on deposits | 1 | 1 | 2 | 2 | ' | ' | ||||
Corporate banking revenue | 1 | 1 | 2 | 2 | ' | ' | ||||
Investment advisory revenue | 95 | 90 | 289 | 275 | ' | ' | ||||
Card and processing revenue | 1 | 1 | 3 | 3 | ' | ' | ||||
Other noninterest income | 1 | 14 | 8 | 19 | ' | ' | ||||
Total noninterest income | 99 | 107 | 305 | 302 | ' | ' | ||||
Noninterest expense: | ' | ' | ' | ' | ' | ' | ||||
Salaries, wages and incentives | 33 | 33 | 100 | 103 | ' | ' | ||||
Employee benefits | 6 | 6 | 20 | 20 | ' | ' | ||||
Net occupancy expense | 2 | 3 | 7 | 8 | ' | ' | ||||
Equipment expense | ' | ' | ' | 1 | ' | ' | ||||
Other noninterest expense | 66 | 67 | 217 | 199 | ' | ' | ||||
Total noninterest expense | 107 | 109 | 344 | 331 | ' | ' | ||||
Income (loss) before income taxes | 30 | 25 | 69 | 49 | ' | ' | ||||
Income Tax Expense (Benefit) | 10 | 9 | 24 | 17 | ' | ' | ||||
Net income (loss) | 20 | 16 | 45 | 32 | ' | ' | ||||
Net income attributable to Bancorp | 20 | 16 | 45 | 32 | ' | ' | ||||
Net income available to common shareholders | 20 | 16 | 45 | 32 | ' | ' | ||||
Total goodwill | 148 | 148 | 148 | 148 | 148 | 148 | ||||
Total Assets | 9,182 | 8,024 | 9,182 | 8,024 | ' | ' | ||||
General Corporate and Other | ' | ' | ' | ' | ' | ' | ||||
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ||||
Net interest income | 31 | 98 | 132 | 305 | ' | ' | ||||
Provision for loan and lease losses | -58 | -92 | -174 | -329 | ' | ' | ||||
Net interest income (loss) after provision for loan and lease losses | 89 | 190 | 306 | 634 | ' | ' | ||||
Noninterest income: | ' | ' | ' | ' | ' | ' | ||||
Corporate banking revenue | -1 | ' | ' | ' | ' | ' | ||||
Card and processing revenue | -19 | -19 | -56 | -53 | ' | ' | ||||
Other noninterest income | 119 | 15 | 526 | 205 | ' | ' | ||||
Securities gains, net | ' | 2 | 17 | 13 | ' | ' | ||||
Total noninterest income | 99 | -2 | 487 | 165 | ' | ' | ||||
Noninterest expense: | ' | ' | ' | ' | ' | ' | ||||
Salaries, wages and incentives | 147 | 153 | 429 | 446 | ' | ' | ||||
Employee benefits | 28 | 26 | 93 | 94 | ' | ' | ||||
Net occupancy expense | 19 | 19 | 61 | 57 | ' | ' | ||||
Technology and communications | 48 | 45 | 139 | 133 | ' | ' | ||||
Card and processing expense | ' | ' | ' | 1 | ' | ' | ||||
Equipment expense | 13 | 13 | 38 | 38 | ' | ' | ||||
Other noninterest expense | -253 | -170 | -699 | -612 | ' | ' | ||||
Total noninterest expense | 2 | 86 | 61 | 157 | ' | ' | ||||
Income (loss) before income taxes | 186 | 102 | 732 | 642 | ' | ' | ||||
Income Tax Expense (Benefit) | 77 | 36 | 275 | 242 | ' | ' | ||||
Net income (loss) | 109 | 66 | 457 | 400 | ' | ' | ||||
Less: Net income attributable to noncontrolling interests | ' | -1 | 9 | -1 | ' | ' | ||||
Net income attributable to Bancorp | 109 | 65 | 466 | 399 | ' | ' | ||||
Dividends on preferred stock | ' | 9 | 18 | 26 | ' | ' | ||||
Net income available to common shareholders | 109 | 56 | 448 | 373 | ' | ' | ||||
Total Assets | -6,244 | -9,679 | -6,244 | -9,679 | ' | ' | ||||
Intersegment Elimination | ' | ' | ' | ' | ' | ' | ||||
Noninterest income: | ' | ' | ' | ' | ' | ' | ||||
Investment advisory revenue | -35 | [1] | -32 | [1] | -108 | [1] | -95 | [1] | ' | ' |
Total noninterest income | -35 | -32 | -108 | -95 | ' | ' | ||||
Noninterest expense: | ' | ' | ' | ' | ' | ' | ||||
Other noninterest expense | -35 | -32 | -108 | -95 | ' | ' | ||||
Total noninterest expense | ($35) | ($32) | ($108) | ($95) | ' | ' | ||||
[1] | Revenue sharing agreements between Investment Advisors and Branch Banking are eliminated in the Condensed Consolidated Statements of Income. |